Document:

Exhibit 4.13

 

 

 

HOVNANIAN
ENTERPRISES, INC.

 

and

 

[WARRANT
AGENT]

As Warrant Agent

 

 

Warrant
Agreement — [Common Stock] 

[Preferred Stock] [Depositary Shares](1)

 

Dated as of
                      

 

 

 

(1)          Options represented by bracketed or blank sections herein shall be
determined in conformity with the applicable prospectus supplement or
supplements.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  

  ISSUANCE OF WARRANTS AND EXECUTION AND

  DELIVERY OF WARRANT CERTIFICATES

  
	
   

  	
   

  	
   

  
	
  SECTION 1.1.

  	
  Issuance of Warrants

  	
   

  
	
  SECTION 1.2.

  	
  Execution
  and Delivery of Warrant Certificates

  	
   

  
	
  SECTION 1.3.

  	
  Issuance of Warrant
  Certificates

  	
   

  
	
  SECTION 1.4.

  	
  Temporary Warrant
  Certificate

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  

  WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

  
	
   

  	
   

  	
   

  
	
  SECTION 2.1.

  	
  Warrant Price

  	
   

  
	
  SECTION 2.2.

  	
  Duration and Exercise
  of Warrants

  	
   

  
	
  SECTION 2.3.

  	
  No Fractional Shares
  to Be Issued

  	
   

  
	
  SECTION 2.4.

  	
  Covenant
  to Reserve Shares for Issuance on Exercise

  	
   

  
	
  SECTION 2.5.

  	
  Share Record Date

  	
   

  
	
  SECTION 2.6.

  	
  Rights Upon
  Dissolution or Liquidation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  

  ADJUSTMENT OF WARRANT PRICE AND

  SHARES OF [COMMON STOCK] [PREFERRED STOCK]

  [DEPOSITARY SHARES] PURCHASABLE

  
	
   

  	
   

  	
   

  
	
  SECTION 3.1.

  	
  Adjustment of Warrant Price

  	
   

  
	
  SECTION 3.2.

  	
  [Adjustment
  of shares of [Common Stock] [Preferred Stock] [Depositary Shares] Purchasable
  Upon Exercise of Warrants

  	
   

  
	
  SECTION 3.3.

  	
  Statements on Warrants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  

  OTHER PROVISIONS RELATING TO RIGHTS

  OF HOLDERS OF WARRANT CERTIFICATES

  
	
   

  	
   

  	
   

  
	
  SECTION 4.1.

  	
  No
  Rights as Warrant Securityholder Conferred by Warrants or Warrant
  Certificates

  	
   

  
	
  SECTION 4.2.

  	
  Lost,
  Stolen, Mutilated or Destroyed Warrant Certificates

  	
   

  
	
  SECTION 4.3.

  	
  Holder
  of Warrant Certificate May Enforce Rights

  	
   

  
	
  SECTION 4.4.

  	
  Reclassification,
  Consolidation, Merger, Share Exchange, Sale or Conveyance

  	
   

  

 

i

 

	
  ARTICLE V.

  

  EXCHANGE AND TRANSFER

  OF WARRANT CERTIFICATES

  
	
   

  	
   

  	
   

  
	
  SECTION 5.1.

  	
  Exchange
  and Transfer of Warrant Certificates

  	
   

  
	
  SECTION 5.2.

  	
  Treatment
  of Holders of Warrant Certificates

  	
   

  
	
  SECTION 5.3.

  	
  Cancellation of
  Warrant Certificates

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  

  CONCERNING THE WARRANT AGENT

  
	
   

  	
   

  	
   

  
	
  SECTION 6.1.

  	
  Warrant Agent

  	
   

  
	
  SECTION 6.2.

  	
  Conditions of
  Warrant Agent’s Obligations

  	
   

  
	
   

  	
  (a)

  	
  Compensation and
  Indemnification

  	
   

  
	
   

  	
  (b)

  	
  Agent for the Company

  	
   

  
	
   

  	
  (c)

  	
  Counsel

  	
   

  
	
   

  	
  (d)

  	
  Documents

  	
   

  
	
   

  	
  (e)

  	
  Certain Transactions

  	
   

  
	
   

  	
  (f)

  	
  No Liability for Interest

  	
   

  
	
   

  	
  (g)

  	
  No Liability for Invalidity

  	
   

  
	
   

  	
  (h)

  	
  No Responsibility
  for Representations

  	
   

  
	
   

  	
  (i)

  	
  No Implied Obligations

  	
   

  
	
  SECTION 6.3.

  	
  Resignation
  and Appointment of Successor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  

  [REDEMPTION;] [ACCELERATED SHARE CONVERSION

  DATE AND] [CONVERSION OF WARRANTS INTO SHARES]

  
	
   

  	
   

  	
   

  
	
  SECTION 7.1.

  	
  [Redemption

  	
   

  
	
  SECTION 7.2.

  	
  [Accelerated Share
  Conversion Date

  	
   

  
	
  SECTION 7.3.

  	
  [Conversion of
  Warrants into Shares

  	
   

  
	
  SECTION 7.4.

  	
  Notice of Proposed Actions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  

  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  SECTION 8.1.

  	
  Amendment

  	
   

  
	
  SECTION 8.2.

  	
  Notices
  and Demands to the Company and Warrant Agent

  	
   

  
	
  SECTION 8.3.

  	
  Addresses

  	
   

  
	
  SECTION 8.4.

  	
  Applicable Law

  	
   

  
	
  SECTION 8.5.

  	
  Delivery of Prospectus

  	
   

  
	
  SECTION 8.6.

  	
  Obtaining of
  Governmental Approvals

  	
   

  
	
  SECTION 8.7.

  	
  Persons
  Having Rights under Warrant Agreement

  	
   

  

 

ii

 

	
  SECTION 8.8.

  	
  Headings

  	
   

  
	
  SECTION 8.9.

  	
  Counterparts

  	
   

  
	
  SECTION 8.10.

  	
  Inspection
  of Agreement

  	
   

  

 

iii

 

HOVNANIAN ENTERPRISES, INC.

Form of [Common Stock] [Preferred Stock] [Depositary Shares]

Warrant Agreement

 

THIS WARRANT
AGREEMENT dated as of
                         
between Hovnanian Enterprises, Inc., a Delaware corporation (the “Company”),
and [Warrant Agent], as Warrant Agent (herein called the “Warrant Agent”).

 

WHEREAS, the
Company proposes to sell [if Warrants are sold with Debt Securities or
Depositary Shares or Preferred Stock — [title of Debt Securities or Depositary
Shares or Preferred Stock being offered] (the “Offered Securities”) with]
warrant certificates evidencing one or more warrants (the “Warrants” or
individually a “Warrant”) representing the right to purchase
[   ] shares of the Company’s Class A common stock, par
value $.01 per share (the “Common Stock”), [   ] shares of the
Company’s depositary shares, each representing one
            of a share
of Preferred Stock (as defined below) (the “Depositary Shares”),
[   ] shares of the Company’s preferred stock, par value $.01
per share (the “Preferred Stock,” collectively with the Common Stock and the
Depositary Shares, 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 in connection
with the issuance, exchange, exercise and replacement of the Warrant
Certificates, and in this Agreement wishes to set forth, 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 of the mutual agreements herein contained,
the parties hereto agree as follows:

 

ARTICLE I.

ISSUANCE OF WARRANTS AND EXECUTION AND

DELIVERY OF WARRANT CERTIFICATES

 

SECTION 1.1.                       Issuance
of Warrants.  [If Warrants alone —
Upon issuance, each Warrant Certificate shall evidence one or more
Warrants.]  [If Offered Securities and
Warrants — 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] and 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                    
Warrant Securities.  [If Offered
Securities and Warrants — 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
                  
shares of Offered Securities included in such unit.]

 

SECTION 1.2.                       Execution
and Delivery of Warrant Certificates. 
Each Warrant Certificate, whenever issued, shall be in registered form
substantially in the form set forth in Exhibit A hereto, shall be dated
                  
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 Warrants
may be listed, or to conform to usage. 
The Warrant Certificates shall be executed on behalf of the Company by
[its Chairman of the Board, the President, any Executive or Senior Vice
President, or any Vice President and by the Secretary or any Assistant
Secretary].  Such signatures may be
manual or facsimile signatures of such authorized officers and may be imprinted
or otherwise reproduced in the Warrant Certificates.

 

No Warrant
Certificates shall be valid for any purpose, and no Warrant evidenced thereby
shall be exercisable, until such Warrant Certificate has been countersigned by
the manual signature of 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.

 

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 may be countersigned and
delivered notwithstanding that the person who signed such Warrant Certificates
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.

 

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 and Warrants are not immediately detachable — or upon the register
of the Offered Securities prior to the Detachable Date.  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 1.3.                       Issuance
of Warrant Certificates.  Warrant
Certificates evidencing the right to purchase an aggregate total number not
exceeding
                  
Warrant Securities (except as provided in Sections 1.4, 3.1 and 4.2) 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 up
to                      Warrant Securities and shall deliver such
Warrant Certificates to or upon the order of the Company.  Subsequent to such issuance of the Warrant
Certificates, the Warrant Agent shall countersign a Warrant Certificate only if
the Warrant Certificate is issued in

 

2

 

exchange or substitution for one or more previously
countersigned Warrant Certificates or in connection with their transfer, as
hereinafter provided or as provided in Section 2.3(c).

 

SECTION 1.4.                       Temporary
Warrant Certificate.  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 Certificate 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.

 

ARTICLE II.

WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS

 

SECTION 2.1.                       Warrant
Price.  (a) During the period
from              ,
through and including 
                  ,
the exercise price of each Warrant will be                   .  During the period from
                  ,
through and including
                  ,
the exercise price of each Warrant will be
                  .  Such purchase price of Warrant Securities is
referred to in this Warrant Agreement as the “Warrant Price.” No adjustment
shall be made for any dividends on any Warrant Securities issuable upon
exercise of any Warrants.

 

(b)                                 Warrants
may be exercised by the holders thereof at any time, at the Warrant Price then
in effect, when the Warrant Securities are registered pursuant to an effective
registration statement under the Securities Act.  Warrants shall in no event be exercisable for
the purchase of Warrant Securities at any time when such Warrant Securities are
not registered pursuant to an effective registration statement under the
Securities Act.

 

The Company
shall be required to register the Warrant Securities only as provided in Section 8.6,
and holders will have such other rights only as provided herein.

 

The Company
shall promptly give all holders notice of the effectiveness of a registration
statement in respect of Warrant Securities and of any subsequent lapses in the
effectiveness of such registration statement.

 

3

 

SECTION 2.2.                       Duration
and Exercise of Warrants.  (a)  The
registered holder of any Warrant Certificate may exercise the Warrants
evidenced thereby in whole or in part at any time after                        ,
upon surrender of the Warrant Certificate with the form of election to purchase
on the reverse side thereof duly executed, to the Warrant Agent at the
principal office of the Warrant Agent [in the Borough of Manhattan, City and
State of New York,] together with payment of the Warrant Price for each share
of [Common Stock] [Preferred Stock] [Depositary Shares] as to which the
Warrants are exercised, at or prior to 5:00 P.M.  ([New York time]) on [the earliest of
(i), (the “Scheduled Share Conversion Date”), (ii) the Accelerated
Share Conversion Date as defined in Section 7.2 hereof, or (iii) the
business day immediately preceding the Redemption Date as defined in Section 7.1
hereof]
[                  
[or such later date as the Company may designate, by notice to the Warrant
Agent and the holders of the Warrant Certificates mailed to their addresses as
set forth in the record books of the Warrant Agent] (the “Expiration Date”).  Each Warrant not exercised at or before 5:00 P.M.
[New York City time], on the Expiration Date shall become void, and all rights
of the holder of the Warrant Certificate evidencing such Warrant under this
Agreement shall cease].

 

(b)                                 The
Warrant Price for each share of [Common Stock] [Preferred Stock] [Depositary
Shares] pursuant to the exercise of a Warrant shall initially be                    ,
shall be subject to adjustment as provided in Article III and Article VII
hereof, and shall be payable in lawful money of the United States of America.

 

(c)                                  Upon
receipt of a Warrant Certificate, with the form of election to purchase on the
reverse side thereof, duly executed, accompanied by payment of the Warrant
Price for the shares to be purchased and an amount equal to any applicable
transfer tax in cash, or by check, bank draft or postal or express money order
payable to the order of the Company, the Warrant Agent shall thereupon promptly
(i) requisition from any transfer agent of the [Common Stock] [Preferred
Stock] [Depositary Shares] of the Company certificates for the number of whole
shares of [Common Stock] [Preferred Stock] [Depositary Shares] to be purchased
and, when appropriate, for the number of fractional shares to be sold by the
Warrant Agent, and the Company hereby irrevocably authorizes its transfer agent
to comply with all such requests, (ii) when appropriate, requisition from
the Company the amount of cash to be paid in lieu of issuance of fractional
shares or Warrants, and (iii) promptly after receipt of such certificates
cause the same to be delivered to or upon the order of the registered holder of
such Warrant Certificate, registered in such name or names as may be designated
by such holder, and, when appropriate, after receipt promptly deliver such cash
to or upon the order of the registered holder of such Warrant Certificate.

 

(d)                                 In
case the registered holder of any Warrant Certificate shall exercise less than
all the Warrants evidenced thereby, a new Warrant Certificate evidencing
Warrants equivalent to the Warrants remaining unexercised shall be issued by
the Warrant Agent to the registered holder of such Warrant Certificate or to
his duly authorized assigns, subject to the provisions of Section 2.3
hereof.

 

(e)                                  The
Warrant Agent shall account promptly to the Company with respect to Warrants
exercised and concurrently pay to the Company all monies received for the
purchase of shares of [Common Stock] [Preferred Stock] [Depositary Shares]
through the exercise of Warrants.

 

4

 

SECTION 2.3.                       No
Fractional Shares to Be Issued.  (a) 
Notwithstanding anything to the contrary contained in this Agreement, if the
number of shares of [Common Stock] [Preferred Stock] [Depositary Shares]
purchasable on the exercise of each Warrant is not a whole number, the Company
shall not be required to issue any fraction of a share of [Common Stock]
[Preferred Stock] [Depositary Shares] or to distribute stock certificates that
evidence fractional shares of [Common Stock] [Preferred Stock] [Depositary
Shares] or to issue a Warrant Certificate representing a fractional Warrant
upon exercise of any Warrants.  If
Warrant Certificates evidencing more than one Warrant shall be surrendered for
exercise at one time by the same holder, the number of full shares which shall
be issuable upon exercise thereof shall be computed on the basis of the
aggregate number of Warrants so surrendered. 
[If any fraction of a share of [Common Stock] [Preferred Stock]
[Depositary Shares] would, except for the provisions of this Section 2.3,
be issuable on the exercise of any Warrant or Warrants, the Company shall
purchase such fraction for an amount in cash equal to such fraction of the then
current market price of a share of [Common Stock] [Preferred Stock] [Depositary
Shares].  The Warrant holders, by their
acceptance of the Warrant Certificates, expressly waive their right to receive
any fraction of a share of [Common Stock] [Preferred Stock] [Depositary Shares]
or a stock certificate representing a fraction of a share of [Common Stock]
[Preferred Stock] [Depositary Shares].

 

(b)                                 If
the number of shares purchasable upon the exercise of each Warrant is adjusted
pursuant to Section 3.1(l), the Company shall nonetheless not be required
to issue fractions of shares upon exercise of the Warrants or to distribute
share certificates which evidence fractional shares, nor shall the Company be
required to make any cash adjustment in respect of a fractional interest in a
share, but the fractional interest to which any person is entitled shall be
sold in the manner set forth in subsection (c) of this Section 2.3
by the Warrant Agent, acting as agent for the person entitled to such
fractional interest, except as otherwise provided in such subsection.

 

(c)                                  The
Warrant Agent shall remit to such person the proceeds of the sale of any such
fractional interest sold by it as such agent. 
Fractional interests shall be non-transferable except by or to the
Warrant Agent acting as herein authorized. 
The Warrant Agent may sell fractional interests on the basis of market
prices of the Warrants or shares of [Common Stock] [Preferred Stock]
[Depositary Shares] as determined by the Warrant Agent in its sole
discretion.  In lieu of making an actual
sale of a fractional interest, the Company may authorize the Warrant Agent to
value fractional interests without actual sale on the basis of the current
market price of the Warrants or shares of [Common Stock] [Preferred Stock]
[Depositary Shares] as determined by the Warrant Agent in its sole discretion.

 

SECTION 2.4.                       Covenant
to Reserve Shares for Issuance on Exercise. 
The Company covenants that it will at all times reserve and keep
available out of its authorized but unissued Warrant Securities or its
authorized and issued Warrant Securities held in its Treasury, solely for the
purpose of issue upon exercise of Warrants, the full number of Warrant
Securities, if any, then issuable if all outstanding Warrants then exercisable
were to be exercised.  The Company
covenants that, subject to payment of the Warrant Price, all shares of [Common
Stock] [Preferred Stock] [Depositary Shares] which shall be so issuable shall
be duly and validly issued and fully paid and nonassessable.

 

5

 

[The Company
hereby authorizes and directs its current and future transfer agents for the
shares of [Common Stock] [Preferred Stock] [Depositary Shares] and for any
shares of the Company’s capital stock issuable upon the exercise of any of the
Warrants at all times to reserve such number of authorized shares as shall be
requisite for such purpose.  The Company
will supply such transfer agents with duly executed stock certificates for such
purposes and will provide or otherwise make available any cash which may be
payable as provided in this Article II.]

 

The Company
covenants that if any shares of [Common Stock] [Preferred Stock] [Depositary
Shares] required to be reserved for purposes of exercise of Warrants require,
under any federal or state law or rule or regulation of any national
securities exchange, registration with or approval of any governmental
authority, or listing on any national securities exchange before such shares
may be issued upon exercise, the Company will in good faith and as
expeditiously as possible endeavor to cause such shares to be duly registered,
approved or listed on the relevant national securities exchange, as the case
may be; provided, however, that in no event shall such shares of [Common Stock]
[Preferred Stock] [Depositary Shares] be issued, and the Company is hereby
authorized to suspend the exercise of all Warrants, for the period during which
such registration, approval or listing is required but not in effect.

 

The Company
further covenants and agrees that it will pay when due and payable any and all
Federal and state transfer taxes and charges which may be payable in respect of
the issuance or delivery of the Warrant Certificates or of any shares of
[Common Stock] [Preferred Stock] [Depositary Shares] upon the exercise or
conversion of Warrants.  The Company
shall not, however, be required to pay any transfer tax which may be payable in
respect of any transfer involved in the transfer or delivery of Warrant
Certificates or the issuance or conversion or delivery of Certificates for
shares of [Common Stock] [Preferred Stock] [Depositary Shares] in a name other
than that of the registered holder of the Warrant Certificate evidencing
Warrants surrendered for exercise or to issue or deliver any certificates for
shares of [Common Stock] [Preferred Stock] [Depositary Shares] upon the
exercise or conversion of any Warrants until any such tax shall have been paid
(any such tax being payable by the holder of such Warrant Certificate at the
time of surrender) or until it has been established to the Company’s
satisfaction that no such tax is due.

 

SECTION 2.5.                       Share
Record Date.  Each person in whose
name any certificate for shares of [Common Stock] [Preferred Stock] [Depositary
Shares] is issued upon the exercise of Warrants shall for all purposes be
deemed to have become the holder of record of the shares of [Common Stock]
[Preferred Stock] [Depositary Shares] represented thereby on, and such
certificate shall be dated, the date upon which the Warrant Certificate
evidencing such Warrants was duly surrendered and payment of the Warrant Price
(and any applicable transfer taxes) was made; provided, however, that if the
date of such surrender and payment is a date upon which the [Common Stock]
[Preferred Stock] [Depositary Shares] transfer books of the Company are closed,
such person shall be deemed to have become the record holder of such shares on,
and such certificate shall be dated, the next succeeding business day on which
the [Common Stock] [Preferred Stock] [Depositary Shares] transfer books of the
Company are open.  Prior to the exercise
of the Warrants evidenced thereby, the holder of a [Common Stock] [Preferred
Stock] [Depositary Shares] Warrant Certificate shall not be entitled to any
rights of a shareholder of the Company with respect to shares for which the
Warrants shall be exercisable, including, without

 

6

 

limitation, the right to vote, to receive dividends or
other distributions or to exercise any preemptive rights, and shall not be
entitled to receive any notice of any proceedings of the Company, except as
provided herein.

 

SECTION 2.6.                       Rights
Upon Dissolution or Liquidation.  Notwithstanding
any other provision of this Agreement relating to the rights of holders of
Warrant Certificates, in the event that, at any time after the date hereof,
there shall be a voluntary or involuntary dissolution, liquidation or winding
up of the Company, then the Company shall give notice by first-class mail to
each holder of an outstanding Warrant at such holder’s address as it appears on
the Warrant Register at the earliest practicable time (and, in any event, not
less than twenty days before any date set for definitive action), of the date
on which such dissolution, liquidation or winding up shall take place, as the
case may be.  Such notice shall also
specify the date as of which the holders of record of [Common Stock] [Preferred
Stock] [Depositary Shares] or other securities, if any, underlying the Warrants
shall be entitled to exchange their shares for securities, money or other
property deliverable upon such dissolution, liquidation or winding up, as the
case may be, on which date each holder of outstanding Warrants shall receive
cash or other property (taking into account the Warrant Price then if effect)
which it would have been entitled to receive had the Warrants been exercisable
and exercised immediately prior to such dissolution, liquidation or winding up
and the rights to exercise the Warrants shall terminate.

 

ARTICLE III.

ADJUSTMENT OF WARRANT PRICE AND

SHARES OF [COMMON STOCK] [PREFERRED STOCK]

[DEPOSITARY SHARES] PURCHASABLE

 

SECTION 3.1.                       Adjustment
of Warrant Price.  The Warrant Price
specified in Section 2.1 shall be subject to adjustment from time to time
as follows:

 

(a)                                  In
case the Company shall (i) pay a dividend or make a distribution on the
Warrant Securities in shares of its [Common Stock] [Preferred Stock]
[Depositary Shares], (ii) subdivide the outstanding Warrant Securities
into a greater number of shares, (iii) combine the outstanding Warrant
Securities into a smaller number of shares or (iv) issue any shares of its
capital stock in a reclassification of the shares of [Common Stock] [Preferred
Stock] [Depositary Shares] (including any such reclassification in connection
with a consolidation, merger or share exchange in which the Company is the
continuing corporation), the Warrant Price in effect at such time shall be
adjusted so that the holder of any Warrant thereafter surrendered for exercise shall
be entitled to receive the number of shares of [Common Stock] [Preferred Stock]
[Depositary Shares] which he would have owned or have been entitled to receive
after the happening of any of the events described above had such Warrant been
exercised immediately prior to the record date in the case of a dividend or the
effective date in the case of a subdivision or combination.  An adjustment made pursuant to this
subparagraph (a) shall become effective immediately after the record
date in the case of a dividend, except as provided in subparagraph (h) below,
and shall become effective immediately after the effective date in the case of
a subdivision or combination.

 

7

 

(b)                                 In
case the Company shall issue rights or warrants to all holders of [Common
Stock] [Preferred Stock] [Depositary Shares] entitling them (for a period
expiring within 45 days after the record date mentioned below) to subscribe for
or purchase shares of [Common Stock] [Preferred Stock] [Depositary Shares] at a
price per share less than the current market price per share of [Common Stock]
[Preferred Stock] [Depositary Shares] (as defined for purposes of this
subparagraph (b) in subparagraph (e) below), at the record
date for the determination of stockholders entitled to receive such rights or
warrants, the Warrant Price in effect after such record date shall be
determined by multiplying such Warrant Price by a fraction, the numerator of
which shall be the number of shares of [Common Stock] [Preferred Stock]
[Depositary Shares] outstanding at the close of business on the record date for
issuance of such rights or warrants plus the number of shares of [Common Stock]
[Preferred Stock] [Depositary Shares] which the aggregate offering price of the
total number of shares of [Common Stock] [Preferred Stock] [Depositary Shares]
so offered would purchase at such current market price, and the denominator of
which shall be the number of shares of [Common Stock] [Preferred Stock]
[Depositary Shares] outstanding at the close of business on the record date for
issuance of such rights or warrants plus the number of additional shares of
[Common Stock] [Preferred Stock] [Depositary Shares] receivable upon exercise
of such rights or warrants.  Such
adjustment shall be made successively whenever any such rights or warrants are
issued, and shall become effective immediately, except as provided in
subparagraph (h) below, after such record date.  In case such subscription price may be paid
in a consideration part or all of which shall be in a form other than cash, the
value of such consideration shall be as determined by the Board of Directors of
the Company, whose determination shall be conclusive, and described in a
statement filed with the Warrant Agent. 
Shares of [Common Stock] [Preferred Stock] [Depositary Shares] owned by
or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation.  Such
adjustment shall be made successively whenever such a record date is fixed; and
in the event that such rights or warrants are not so issued, the Warrant Price
shall again be adjusted to be the Warrant Price which would then be in effect
if such record date had not been fixed.

 

(c)                                  In
case the Company shall distribute to all holders of shares of [Common Stock]
[Preferred Stock] [Depositary Shares] (including any such distribution made in
connection with a consolidation, merger or share exchange in which the Company
is the continuing corporation) any shares of capital stock of the Company
(other than shares of [Common Stock] [Preferred Stock] [Depositary Shares]) or
evidences of its indebtedness or assets (excluding cash dividends or
distributions paid from retained earnings of the Company or from any surplus
legally available for dividends under the laws of the state of incorporation of
the Company and dividends payable in shares of [Common Stock] [Preferred Stock]
[Depositary Shares]) or rights or warrants to subscribe for or purchase any of
its securities (excluding those rights or warrants referred to in
subparagraph (b) above) (any of the foregoing being hereinafter in
this subparagraph (c) called the “Securities”), then, in each such
case, unless the Company elects to reserve such Securities (or, at the option
of the Company, pay cash as provided below) for distribution to the holders of
the Warrants upon the exercise of the Warrants so that any such holder
exercising Warrants will receive such exercise, in addition to the Shares of
[Common Stock] [Preferred Stock] [Depositary Shares] to which such holder is
entitled, the amount and kind of such Securities which such holder would have
received if such holder had, immediately prior to the record date for the
distribution of the Securities, exercised its Warrants into Warrant Securities
(or, at the option of the Company, a sum equal to the value thereof at the time
of

 

8

 

distribution as determined by
the Company’s Board of Directors in its sole discretion), the Warrant Price
shall be adjusted so that the same shall equal the price determined by
multiplying the Warrant Price in effect immediately prior to the date of such
distribution by a fraction the numerator of which shall be the current market
price per share (as defined for purposes of this subparagraph (c) in
subparagraph (e) below) of the shares of [Common Stock] [Preferred
Stock] [Depositary Shares] on the record date mentioned above less the then
fair market value (as determined by the Board of Directors of the Company,
whose determination shall be conclusive) of the portion of the Securities so
distributed allocable to one share of [Common Stock] [Preferred Stock]
[Depositary Shares], and the denominator of which shall be the current market
price per share (determined as provided in subparagraph (e) below) of
the shares of [Common Stock] [Preferred Stock] [Depositary Shares].  Such adjustment shall become effective
immediately prior to the opening of business on the day following the record
date for the determination of shareholders entitled to receive such
distribution.  In the event that such
distribution is not so made, the Warrant Price shall again be adjusted to be
the Warrant Price which would then be in effect if such date fixed for the determination
of shareholders entitled to receive such distribution had not been fixed.

 

(d)                                 If,
pursuant to subparagraph (b) or (c) above, the number of shares
of Warrant Securities into which a Warrant is convertible shall have been
adjusted because the Company has declared a dividend, or made a distribution,
on the outstanding shares of Warrant Securities in the form of any right or
warrant to purchase securities of the Company, or the Company has issued any
such right or warrant, then, upon the expiration of any such unexercised right
or unexercised warrant, the Warrant Price shall forthwith be adjusted to equal
the Warrant Price that would have applied had such right or warrant never been
declared, distributed or issued.

 

(e)                                  For
the purposes of any computation under subparagraph (b) above, the current
market price per share of [Common Stock] [Preferred Stock] [Depositary Shares]
or of any other security (herein collectively referred to as a “security”) at
the date herein specified shall be deemed to be the average of the reported
last sales prices for the [thirty consecutive Trading Days (as defined below)
commencing forty-five Trading Days (as defined below) before the date in
question] [ten consecutive Trading Days (as defined below) selected by the
Company commencing not less than twenty nor more than thirty days before the
date in question].  For the purpose of
any computation under subparagraph (c) above, the current market
price per security on any date shall be deemed to be the average of the
reported last sales prices for the ten consecutive Trading Days before the date
in question.  The reported last sales
price for each day (whether for purposes of subparagraph (b) or
subparagraph (c)) shall be the reported last sales price, regular way, or,
in case no sale takes place on such day, the average of the reported closing
bid and asked prices, regular way, in either case as reported on the New York
Stock Exchange Composite Tape or, if such security is not listed or admitted to
trading on the New York Stock Exchange at such time, on the principal national
securities exchange on which such security is listed or admitted to trading or,
if not listed or admitted to trading on any national securities exchange, on
the National Market System of the National Association of Securities Dealers, Inc.
Automated Quotations System (“NASDAQ”) or, if such security is not quoted on
such National Market System, the average of the closing bid and asked prices on
such day in the over-the-counter market as reported by NASDAQ or, if bid and
asked prices for the security on each such day shall not have been reported
through NASDAQ, the average of the bid and asked prices for 

 

9

 

such date as furnished by any
New York Stock Exchange member firm regularly making a market in such security
selected for such purpose by the Board of Directors of the Company or a
committee thereof or, if no such quotations are available, the fair market
value of such security as determined by a New York Stock Exchange member firm
regularly making a market in the shares of [Common Stock] [Preferred Stock]
[Depositary Shares] selected for such purpose by the Board of Directors of the
Company or a committee thereof.  As used
herein, the term “Trading Day” with respect to a security means (x) if
such security is listed or admitted for trading on the New York Stock Exchange
or another national securities exchange, a day on which the New York Stock
Exchange or such other national securities exchange is open for business or
(y) if such security is quoted on the National Market System of the
NASDAQ, a day on which trades may be made on such National Market System or
(z) otherwise, any day other than a Saturday or Sunday or a day on which
banking institutions in the State of New York are authorized or obligated by
law or executive order to close.

 

(f)                                    No
adjustment in the Warrant Price shall be required unless such adjustment would
require an increase or decrease of at least [1%] in such Warrant Price;
provided, however, that any adjustments which by reason of this paragraph (f) are
not required to be made shall be carried forward and taken into account in any
subsequent adjustment.  All calculations
under this Article III shall be made to the nearest cent or to the nearest
..01 of a share, as the case may be, with one-half cent and .005 of a share,
respectively, being rounded upward. 
Anything in this Article III to the contrary notwithstanding, the
Company shall be entitled to make such reductions in the Warrant Price, in
addition to those required by this paragraph (f), as it in its discretion
shall determine to be advisable in order that any stock dividend, subdivision
of shares, distribution of rights or warrants to purchase stock or securities,
or distribution of other assets (other than cash dividends) hereafter made by
the Company to its stockholders shall not be taxable.

 

(g)                                 Whenever
the Warrant Price is adjusted as herein provided, the Company shall file with
the transfer agent a certificate, signed by [the Chairman of the Board, the
President, any Executive or Senior Vice President, or any Vice President] of
the Company, setting forth the Warrant Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment, which
certificate shall be conclusive evidence of the correctness of such adjustment;
provided, however, that the failure of the Company to file such officers’
certificate shall not invalidate any corporate action by the Company.

 

(h)                                 In
any case in which this Article III provides that an adjustment shall become
effective immediately after a record date for an event, the Company may defer
until the occurrence of such event (y) issuing to the holder of any
Warrant converted after such record date and before the occurrence of such
event the additional shares of Warrant Securities or other assets issuable upon
such exercise by reason of the adjustment required by such event over and above
the Warrant Securities or other assets issuable upon such exercise before
giving effect to such adjustment and (z) paying to such holder any amount
of cash in lieu of any fractional share; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment.

 

10

 

(i)                                     Whenever
the Warrant Price is adjusted as provided in Article III, the Company
shall cause to be mailed to each holder of Warrants at its then registered
address by first-class mail, postage prepaid, a notice of such adjustment of
the Warrant Price setting forth such adjusted Exercise Price and the effective
date of such adjusted Exercise Price; provided, however, that the failure of
the Company to give such notice shall not invalidate any corporate action by
the Company.

 

(j)                                     In
the event that at any time, as a result of an adjustment made pursuant to Section 3.1,
the holder of any Warrant thereafter exercised shall become entitled to receive
any shares of capital stock of the Company other than shares of [Common Stock]
[Preferred Stock] [Depositary Shares], thereafter the number of such other
shares so receivable upon exercise of any Warrant shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the shares contained in Section 3.1(a) through
(c), inclusive, and the provisions of Sections 2.3, 2.4 and 2.5 with respect to
the shares of [Common Stock] [Preferred Stock] [Depositary Shares] shall apply
on like terms to any such other shares.

 

(k)                                  All
Warrants originally issued by the Company subsequent to any adjustment made to
the Warrant Price hereunder shall evidence the right to purchase, at the
adjusted Warrant Price, the number of shares of [Common Stock] [Preferred
Stock] [Depositary Shares] purchasable from time to time hereunder upon
exercise of the Warrants, all subject to further adjustment as provided herein.

 

(l)                                     Unless
the Company shall have exercised its election as provided in Section 3.1(m),
upon each adjustment of the Warrant Price as a result of the calculations made
in Section 3.1(a), (b) or (c), each Warrant outstanding immediately
prior to the making of such adjustment shall thereafter evidence the right to
purchase, at the adjusted Warrant Price, that number of shares (calculated to
the nearest hundredth) obtained by (i) multiplying the number of shares
covered by a Warrant immediately prior to this adjustment of the number of
shares by the Warrant Price in effect immediately prior to such adjustment of
the Warrant Price and (ii) dividing the product so obtained by the Warrant
Price in effect immediately after such adjustment of the Warrant Price.

 

(m)                               The
Company may elect on or after the date of any adjustment of the Warrant Price
to adjust the number of Warrants, in substitution for any adjustment in the
number of shares of [Common Stock] [Preferred Stock] [Depositary Shares]
purchasable upon the exercise of a Warrant as provided in Section 3.2.  Each of the Warrants outstanding after such
adjustment of the number of Warrants shall be exercisable for one share of
[Common Stock] [Preferred Stock] [Depositary Shares].  Each Warrant held of record prior to such
adjustment of the number of Warrants shall become that number of Warrants
(calculated to the nearest hundredth) obtained by dividing the Warrant Price in
effect prior to adjustment of the Warrant Price by the Warrant Price in effect
after adjustment of the Warrant Price. 
The Company shall make a public announcement of its election to adjust
the number of Warrants, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made.  This record date may be the date on which the
Warrant Price is adjusted or any day thereafter, but shall be at least 10 days
later than the date of the public announcement. 
Upon each adjustment of the number of Warrants pursuant to this subsection (l)
the Company shall, as

 

11

 

promptly as practicable, cause
to be distributed to holders of record of Warrant Certificates on such record
date Warrant Certificates evidencing, subject to Section 2.3, the
additional Warrants to which such holders shall be entitled as a result of such
adjustment, or, at the option of the Company, shall cause to be distributed to
such holders of record in substitution and replacement for the Warrant
Certificates held by such holders prior to the date of adjustment, and upon
surrender thereof, if required by the Company, new Warrant Certificates
evidencing all the Warrants to which such holders shall be entitled after such
adjustment.  Warrant Certificates so to
be distributed shall be issued, executed and countersigned in the manner
provided for herein (and may bear, at the option of the Company, the adjusted
Warrant Price) and shall be registered in the names of the holders of record of
Warrant Certificates on the record date specified in the public announcement.

 

(n)                                 Irrespective
of any adjustment or change in the Warrant Price or the number of shares of
[Common Stock] [Preferred Stock] [Depositary Shares] issuable upon the exercise
of the Warrants, the Warrant Certificates theretofore and thereafter issued may
continue to express the Warrant Price per share and the number of shares which
were expressed upon the initial Warrant Certificates issued hereunder.

 

(o)                                 Anything
in this Article III to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Warrant Price, in addition to those
adjustments required by this Article III, as it in its sole discretion
shall determine to be advisable in order that any consolidation or subdivision
of the shares of [Common Stock] [Preferred Stock] [Depositary Shares], issuance
wholly for cash of any shares of [Common Stock] [Preferred Stock] [Depositary
Shares] at less than the current market price, issuance wholly for cash of
shares of [Common Stock] [Preferred Stock] [Depositary Shares] or securities
which by their terms are convertible into or exchangeable for Common Stock,
stock dividend, issuance of rights, options or warrants referred to hereinabove
in this Article III, or other event referred to hereinabove in this Article III
treated for Federal income tax purposes as a dividend of stock or stock rights,
hereinafter made by the Company to its common shareholders, shall not be
taxable to the recipients.

 

SECTION 3.2.                       [Adjustment
of shares of [Common Stock] [Preferred Stock] [Depositary Shares] Purchasable
Upon Exercise of Warrants.  The
number of Warrant Securities that may be purchased upon exercise of a Warrant
shall be determined by multiplying the number of shares of [Common Stock]
[Preferred Stock] [Depositary Shares] which would otherwise (but for the
provisions of this Section 3.2) be issuable upon such exercise by a
fraction of which (a) the numerator is                   
and (b) the denominator is
$                  
minus deductions made from (and/or plus additions to) the Warrant Price
pursuant to Sections 3.1(a) or (c) hereof.  The Warrant Price per share of [Common Stock]
[Preferred Stock] [Depositary Shares] shall be adjusted and readjusted from
time to time as provided in this Article III and, as so adjusted or
readjusted, shall remain in effect until a further adjustment or readjustment
thereof is required by this Article III.]

 

SECTION 3.3.                       Statements
on Warrants.  The form of Warrant
Certificate need not be changed because of any adjustment made pursuant to this
Article III, and Warrant Certificates issued after such adjustment may state
the same Warrant Price and the same number of shares of [Common Stock]
[Preferred Stock] [Depositary Shares] as are stated in the Warrant

 

12

 

Certificates initially
issued pursuant to this Agreement.  The
Company, however, may at any time in its sole discretion (which shall be
conclusive) make any change in the form of Warrant Certificate that it may deem
appropriate and that does not affect the substance thereof, and any Warrant
Certificate thereafter issued or countersigned, whether in exchange or
substitution for an outstanding Warrant Certificate or otherwise, may be in the
form as so changed.

 

ARTICLE IV.

OTHER PROVISIONS RELATING TO RIGHTS 

OF HOLDERS OF WARRANT CERTIFICATES

 

SECTION 4.1.                       No
Rights as Warrant Securityholder Conferred by Warrants or Warrant Certificates.  No Warrant Certificates or Warrant evidenced
thereby shall entitle the holder thereof to any of the rights of a holder of
Warrant Securities, including, without limitation, the right to vote at, or to
receive notice of, any meeting of shareholders of the Company; the consent of
action or proceeding of the Company; no such holder, by reason of the ownership
or possession of a Warrant or the Warrant Certificate representing the same, either
at, before or after exercising such Warrant, shall have any right to receive
any cash dividends, stock dividends, allotments or rights, or other
distributions (except as specifically provided herein), paid, allotted or
distributed or distributable to the stockholders of the Company prior to the
date of the exercise of such Warrant; and no such holder shall have any right
not expressly conferred by the Warrant or Warrant Certificate that such holder
holds.

 

SECTION 4.2.                       Lost,
Stolen, Mutilated or Destroyed Warrant Certificates.  Upon receipt by the Warrant Agent of evidence
reasonably satisfactory to it and the Company of the ownership of and the loss,
theft, destruction or mutilation of any Warrant Certificate and of indemnity
reasonably satisfactory to the Warrant Agent and the Company, 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 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 4.3.                       Holder
of Warrant Certificate May Enforce Rights.  Notwithstanding any of the provisions of this
Agreement, any holder of a Warrant Certificate, without the consent of the
Warrant Agent, the Trustee, the holder of any Warrant Securities or

 

13

 

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 Warrants evidenced by his Warrant Certificate in the manner provided in his
Warrant Certificate and in this Agreement.

 

SECTION 4.4.                       Reclassification,
Consolidation, Merger, Share Exchange, Sale or Conveyance.  In case any of the following shall occur
while any Warrants are outstanding:  [(a) any
reclassification or change of the outstanding shares of Warrant Securities
(other than a change in par value, or from par value to no par value, or as a
result of a subdivision or combination of the Warrant Securities);] or (b) any
consolidation, merger, share exchange or combination of the Company with or
into another corporation (other than a merger or consolidation of the Company
in which the Company is the continuing corporation and which does not result in
any reclassification or change of outstanding shares of [Common Stock]
[Preferred Stock] [Depositary Shares]) as a result of which holders of Warrant
Securities shall be entitled to receive stock, securities or other property or
assets (including cash) with respect to or in exchange for such Warrant
Securities; or (c) any sale or conveyance of the property or assets of the
Company as, or substantially as, an entirety to any other entity as a result of
which holders of Warrant Securities shall be entitled to receive stock,
securities or other property or assets (including cash) with respect to or in
exchange for such Warrant Securities; then the Company, or such successor or
purchasing corporation, as the case may be, shall make appropriate provision by
amendment of this Agreement or otherwise so that the holders of the Warrants
then outstanding shall have the right at any time thereafter, upon exercise of
such Warrants, to receive the kind and amount of shares of stock and other
securities and property or assets receivable upon such reclassification,
change, consolidation, merger, share exchange, combination, sale or conveyance
[(or at the option of the Company, a sum equal to the value thereof at the time
of the distribution as determined by the Board of Directors in its sole
discretion)] as would be received by a holder of the number of shares of
Warrant Securities issuable upon exercise of such Warrant immediately prior to
such reclassification, change, consolidation, share exchange, merger, sale or
conveyance, and, in the case of a consolidation, merger, share exchange, sale
or conveyance the Company shall thereupon be relieved of any further obligation
hereunder or under the Warrants, and the Company as the predecessor corporation
may thereupon or at any time thereafter be dissolved, wound up or
liquidated.  Such successor or assuming
corporation thereupon may cause to be signed, and may issue either in its own name
or in the name of the Company, any or all of the Warrants issuable hereunder
which theretofore shall not have been signed by the Company, and may execute
and deliver Warrant Securities in its own name, in fulfillment of its
obligations to deliver Warrant Securities upon exercise of the Warrants.  All the Warrants so issued shall in all
respects have the same legal rank and benefit under this Agreement as the
Warrants theretofore or thereafter issued in accordance with the terms of this
Agreement as though all of such Warrants had been issued at the date of the
execution hereof.  In any case of any
such reclassification, change, consolidation, merger, sale or conveyance, such
changes in phraseology and form (but not in substance) may be made in the
Warrants thereafter to be issued as may be appropriate.

 

The Warrant
Agent may receive a written opinion of legal counsel as conclusive evidence
that any such reclassification, change, merger, share exchange, consolidation,
sale or conveyance complies with the provisions of this Section 4.4.

 

14

 

ARTICLE V.

EXCHANGE AND TRANSFER 

OF WARRANT CERTIFICATES

 

SECTION 5.1.                       Exchange
and Transfer of Warrant Certificates. 
[If Offered Securities with Warrants which are immediately detachable —
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 purpose of effecting or in
conjunction with an exchange or transfer of such Offered Security.  Prior to any 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 evidencing Warrants may be exchanged for Warrant Certificates
in other denominations evidencing such Warrants or the transfer thereof may be
registered in whole or in part; provided that such other Warrant Certificates
evidence the same aggregate number of Warrants as the Warrant Certificates so
surrendered.  The Warrant Agent shall
keep, at its corporate trust office [and at
                  ],
books in which, subject to such reasonable regulations as it may prescribe, it
shall register Warrant Certificates and exchanges and transfers of outstanding
Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant
Agent at its corporate trust office [or
                  ]
for exchange or registration of transfer, properly endorsed or accompanied by
appropriate instruments of registration 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 registration of 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 registration of transfer. 
Whenever any Warrant Certificates are so surrendered for exchange or
registration of transfer, an authorized officer of the Warrant Agent shall
manually 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 registration of 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 registration of transfer of Warrant Certificates shall be
the valid obligations of the Company, evidencing the same obligations, and
entitled to the same benefits under this Agreement, as the Warrant Certificate
surrendered for such exchange or registration of transfer.

 

SECTION 5.2.                       Treatment
of Holders of Warrant Certificates.  [If
Offered Securities and Warrants are not immediately detachable — Prior to the
Detachable Date, the Company, the Warrant Agent and all other persons may treat
the owner of the Offered Security as the owner of the Warrant Certificates
initially attached thereto for any purpose or as the person entitled to
exercise the rights represented by the Warrants evidenced by such Warrant
Certificates, any notice to the contrary notwithstanding.  After the Detachable Date, and] [P]rior to
due presentment of a Warrant Certificate for registration of transfer, the
Company, the Warrant Agent and all other persons may treat the holder of a Warrant
Certificate as the owner

 

15

 

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 5.3.                       Cancellation
of Warrant Certificates.  Any Warrant
Certificates surrendered for exchange, registration of 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 canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu
thereof.  The Warrant Agent shall deliver
to the Company from time to time or otherwise dispose of canceled Warrant
Certificates in a manner satisfactory to the Company.

 

ARTICLE VI.

CONCERNING THE WARRANT AGENT

 

SECTION 6.1.                       Warrant
Agent.  The Company hereby appoints
[Warrant Agent] 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 [Warrant Agent] 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 6.2.                       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 promptly to pay the Warrant Agent 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
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 Warrant Agent hereunder, as well as the costs and expenses
of defending against any claim of such liability.

 

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

 

(c)                                  Counsel.  The Warrant Agent may consult with counsel
satisfactory to it, and the written advice of such counsel shall be full and
complete authorization and protection in respect

 

16

 

of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the
advice of such counsel.

 

(d)                                 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 Certificate, 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.

 

(e)                                  Certain Transactions.  The Warrant Agent and its officers, directors
and employees may become the owner of, or acquire any interest in, 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 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 the Warrant Agreement shall be deemed to prevent the Warrant
Agent from acting as Trustee under any of the Indentures.

 

(f)                                    No Liability for Interest.  Unless otherwise agreed with the Company, the
Warrant Agent shall have no liability for interest on any monies at any time
received by it pursuant to any of the provisions of this Agreement or of the
Warrant Certificates.

 

(g)                                 No Liability for
Invalidity.  The Warrant
Agent shall have no liability with respect to any invalidity of this Agreement
or any of the Warrant Certificates (except as to the Warrant Agent’s
countersignature thereon).

 

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

 

(i)                                     No Implied Obligations.  The Warrant Agent shall be obligated to
perform only 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 7.2 hereof, to make any demand upon the Company.

 

17

 

SECTION 6.3.                       Resignation
and Appointment of Successor.  (a)  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 Warrants have been exercised or are no longer exercisable.

 

(b)                                 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 shall become effective; provided that such date shall not
be less than three months after the date on which such notice is given unless
the Company otherwise agrees.  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 to exercise corporate trust powers) and
the acceptance of such appointment by such successor Warrant Agent.  The obligation of the Company under Section 6.2(a) shall
continue to the extent set forth therein notwithstanding the resignation or
removal of the Warrant Agent.

 

(c)                                  In
case at any time the Warrant Agent shall resign, or shall be removed, or shall
become incapable of acting, or shall be adjudged as bankrupt or insolvent, or
shall commence a voluntary case under the Federal bankruptcy laws, as now or
hereafter constituted, or under any other applicable Federal or State
bankruptcy, insolvency or similar law, or shall consent to the appointment of
or taking possession by a receiver, custodian, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Warrant Agent or its property
or affairs, or shall make an assignment for the benefit of creditors, or shall
admit in writing its inability to pay its debts generally as they become due,
or shall take corporate action in furtherance of any such action, or a decree
or order for relief by a court having jurisdiction in the premises shall have
been entered in respect of the Warrant Agent in an involuntary case under the
Federal bankruptcy laws, as now or hereafter constituted, or any other
applicable Federal or State bankruptcy, insolvency or similar law, or a decree
or order by a court having jurisdiction in the premises shall have been entered
for the appointment of a receiver, custodian, liquidator, assignee, trustee,
sequestrator (or similar official) of the Warrant Agent or of its property or
affairs, or any public officer shall take charge or control of the Warrant
Agent or of its property or affairs for the purpose of rehabilitation,
conservation, winding up or liquidation, 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 shall cease to be Warrant Agent hereunder.

 

(d)                                 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 any
further act, deed or conveyance, shall become vested with all the authority,
rights, powers, trusts, immunities, duties and obligations of such predecessor
with like effect as if originally named 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

 

18

 

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.

 

(e)                                  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 substantially all
the assets and business of the Warrant Agent have been transferred, provided
that it shall be qualified as aforesaid, shall be the successor Warrant Agent
under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto.

 

ARTICLE VII.

[REDEMPTION;] [ACCELERATED SHARE CONVERSION 

DATE AND] [CONVERSION OF WARRANTS INTO SHARES]

 

SECTION 7.1.                       [Redemption.  The Company may, at its option, at any time
from and after         ,            and at or prior to 5:00 p.m.,
[New York time], on the earlier of the Scheduled Share Conversion Date or the
Accelerated Share Conversion Date (as defined in Section 7.2, redeem all
but not less than all of the then outstanding Warrants at a redemption price of
$                  
per Warrant, subject to adjustment pursuant to the provisions of Section 7.3(b).  Such price, as the same may be from time to
time adjusted, is hereinafter referred to as the “Redemption Price.” If the
Company should desire to exercise such right to redeem all of the then
outstanding Warrants, it will give notice of such redemption to the holders
thereof as follows:

 

Notice of such
redemption to holders of Warrants shall be mailed to all such holders not less
than 30 nor more than 90 days prior to the date fixed for redemption to their
last addresses as they appear upon the registry books of the Warrant Agent.  Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the
notice.  Each such notice of redemption
will specify the date fixed for redemption (“Redemption Date”) and the
Redemption Price.  The notice will state
that payment of the Redemption Price will be made at the office or agency of
the Warrant Agent or at the option of the Company at a specified office of the
Company in the City of Red Bank, State of New Jersey, upon presentation and
surrender of such Warrants, and will also state that the right to exercise the
Warrants will terminate at the close of business on the business day
immediately preceding the Redemption Date.

 

On or before
the Redemption Date, the Company shall deposit with the Warrant Agent funds in
form satisfactory to the Warrant Agent sufficient to redeem the then
outstanding Warrants at the Redemption Price.]

 

SECTION 7.2.                       [Accelerated
Share Conversion Date.  If the price
of a share of [Common Stock] [Preferred Stock] [Depositary Shares] (as determined
pursuant to the second sentence of Section 3.1(e)) for each of 10
consecutive trading days is at least
$                  ,
subject to adjustment pursuant to the provisions of Section 7.3(b) (such
price, as the same may from time to time be adjusted, is hereinafter referred
to as the “Acceleration Price”), then the

 

19

 

Company may, at its
option, accelerate the date on which the Warrants shall be converted into
shares of [Common Stock] [Preferred Stock] [Depositary Shares] and cease to be
exercisable.  If the Company shall so
accelerate such date, it shall give notice of such acceleration within 30 days
after the end of any such 10 consecutive trading day period to the holders of
Warrants as follows:

 

Notice of such
acceleration shall be mailed to all holders of Warrants not less than 30 nor
more than 90 days prior to the date specified in such notice as the date on
which the Warrants shall be converted into shares of [Common Stock] [Preferred
Stock] [Depositary Shares] and cease to be exercisable (the “Accelerated Share
Conversion Date”) to their last addresses as they appear upon the registry
books of the Warrant Agent.  Any notice
which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice.  Each
such notice of acceleration will specify the Accelerated Share Conversion Date
and the Acceleration Price.]

 

SECTION 7.3.                       [Conversion
of Warrants into Shares.  (a)  To
the extent that any Warrant Certificates remain outstanding at the expiration
of the period during which the Warrants are exercisable, as set forth in Section 2.2(a) hereof,
the unexercised Warrants represented thereby shall be converted automatically
into shares of [Common Stock] [Preferred Stock] [Depositary Shares] at the rate
of [   ] share [s] of [Common Stock] [Preferred Stock]
[Depositary Shares] for each [   ] Warrants.  The registered holders of such Warrant
Certificates shall be deemed to have become holders of record of such share or
shares of [Common Stock] [Preferred Stock] [Depositary Shares] as of the date
of such conversion.  If the number of
shares of [Common Stock] [Preferred Stock] [Depositary Shares] purchasable upon
the exercise of each Warrant is adjusted pursuant to Section 3.2, the rate
at which shares of [Common Stock] [Preferred Stock] [Depositary Shares] are
issued upon such conversion of unexercised Warrants at the expiration of the
period during which the Warrants are exercisable shall be adjusted in order
that the total number of shares of [Common Stock] [Preferred Stock] [Depositary
Shares] issued for each [   ] unexercised Warrants at such
expiration equals the number of such shares purchasable upon the exercise of
each Warrant after such adjustment. 
Notwithstanding the foregoing provisions of this Section 7.3, no
fractional shares of [Common Stock] [Preferred Stock] [Depositary Shares] shall
be issuable upon such conversion.  In
lieu of fractional shares, there shall be paid to the registered holders of
Warrant Certificates at the time such Warrant Certificates are so converted an
amount in cash equal to the same fraction of the current market value of a
share of [Common Stock] [Preferred Stock] [Depositary Shares].  For the purposes of this Section 7.3,
the current market value of a share of [Common Stock] [Preferred Stock]
[Depositary Shares] shall be the closing price of a share of [Common Stock]
[Preferred Stock] [Depositary Shares] (as determined pursuant to the second
sentence of Section 3.1(e)) for the trading day immediately prior to the
date of such conversion.  After such
conversion of outstanding and unexercised Warrants into shares of [Common
Stock] [Preferred Stock] [Depositary Shares], the holder of any Warrant Certificate
representing such Warrants shall surrender the same to the Warrant Agent (or,
if this Agreement shall have been terminated, to the transfer agent for shares
of [Common Stock] [Preferred Stock] [Depositary Shares]) and such holder shall
be entitled, upon such surrender, to receive in exchange therefor a certificate
or certificates representing the number of whole shares of [Common Stock]
[Preferred Stock] [Depositary Shares] into which such Warrants shall have been
converted as aforesaid and payments as aforesaid for any fractional share
represented thereby (without interest). 
Unless and

 

20

 

until so surrendered,
such Warrant Certificates shall be deemed for all purposes (subject to the
further provisions of this paragraph) to evidence the ownership of the whole
number of shares of [Common Stock] [Preferred Stock] [Depositary Shares] into
which the Warrants evidenced thereby have been so converted.  Unless and until any such Warrant Certificate
shall be so surrendered, dividends or distributions payable to holders of
record of shares of [Common Stock] [Preferred Stock] [Depositary Shares] shall
not be paid to the holder of any such Warrant Certificate not surrendered, but
there shall be paid to the record holder of such Warrant Certificate, with
respect to the shares of [Common Stock] [Preferred Stock] [Depositary Shares]
issued upon such conversion therefor, (i) upon such surrender the amount
of the dividends or distributions which shall theretofore have become payable
thereon, but without interest, and (ii) after such surrender, the amount
of any dividend or distribution with a record date prior to surrender and the
payment date of which shall be subsequent to surrender, such amount to be paid
on such payment date.

 

(b)                                 Upon
each adjustment of the Warrant Price of the Warrants, the Redemption Price and
the Acceleration Price in effect immediately prior to the adjustment shall be
adjusted to be a price equal to the product of the Redemption Price or the
Acceleration Price, as the case may be, in effect immediately prior to the
adjustment of the Warrant Price multiplied by a fraction the numerator of which
is the Warrant Price which was in effect immediately after the adjustment of
the Warrant Price and the denominator of which is the Warrant Price immediately
prior to such adjustment.]

 

SECTION 7.4.                       Notice
of Proposed Actions.  In case the
Company shall propose (a) to pay any dividend payable in stock of any
class to the holders of its Common [or Preferred] Stock or to make any other
distribution to the holders of its Common [or Preferred] Stock (other than a
cash dividend), or (b) to offer to the holders of its Common Stock rights
or warrants to subscribe for or to purchase any additional Common Stock or
shares of stock of any class or any other securities, rights or options, or (c) to
effect any reclassification of its Common [or Preferred] Stock (other than a
reclassification involving only the subdivision or combination of outstanding
Common [or Preferred] Stock), or (d) to effect any consolidation, merger,
share exchange or sale, transfer or other disposition of all or substantially
all of the property, assets or business of the Company, or (e) to effect
the liquidation, dissolution or winding up of the Company, then, in each such
case, the Company shall give to each holder of a Warrant, in accordance with Section 8.2,
a notice of such proposed action, which shall specify the record date for the
purposes of such stock dividend, distribution or rights or warrants, or the
date on which such reclassification, consolidation, merger, sale, transfer,
disposition, liquidation, dissolution, or winding up is to take place and the
date of participation therein by the holders of Common Stock [, Preferred
Stock] [or Depositary Shares], if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (a) or (b) above
at least ten days prior to the record date for determining holders of the
Common Stock [or Preferred Stock] for purposes of such action, and in the case
of any such action, at least ten days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of Common
Stock [, Preferred Stock] [or Depositary Shares], whichever shall be the
earlier.  The failure to give notice
required by this Section 7.4 or any defect therein shall not affect the
legality or validity of the action taken by the Company or the vote upon any
such action.

 

21

 

ARTICLE VIII.

MISCELLANEOUS

 

SECTION 8.1.                       Amendment.  (a)  This Agreement and the Warrant
Certificates may be amended by the Company and the Warrant Agent, without the
consent of the registered holders of the Warrant Certificates or the Warrant
holders, for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained herein or
therein, for the purpose of appointing a successor Warrant Agent in accordance
with Section 6.3 or in any other manner which the Company may deem to be
necessary or desirable and which will not materially and adversely affect the
interests of the Warrant holders.

 

(b)                                 The
Company and the Warrant Agent may modify or amend this Agreement and the
Warrant Certificates, with the consent of the holders of not fewer than a
majority in number of the then outstanding unexercised Warrants affected by
such modification or amendment, for any purpose; provided, however, that no
such modification or amendment that decreases or increases the Warrant Price, shortens
the period of time during which the Warrants may be exercised, or otherwise
materially and adversely affects the exercise rights of the holders or reduces
the percentage of outstanding Warrants the consent of the holders of which is
required for modification or amendment of this Agreement or the Warrant
Certificates, may be made without the consent of each Warrant holder affected
thereby.

 

SECTION 8.2.                       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 or demand to the Company.

 

SECTION 8.3.                       Addresses.  Any communication from the Company to the
Warrant Agent with respect to this Agreement shall be addressed to [Warrant
Agent],
                                       ,
Attention: 
                                  ,
and any communication from the Warrant Agent to the Company with respect to
this Agreement shall be addressed to Hovnanian Enterprises, Inc., 10
Highway 35, P.O. Box 500, Red Bank, New Jersey 07701, Attention:  J. Larry Sorsby (or such other address
as shall be specified in writing by the Warrant Agent or by the Company).

 

SECTION 8.4.                       Applicable
Law.  The validity, interpretation
and performance of this Agreement and each Warrant Certificate issued hereunder
and of the respective terms and provisions thereof shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

SECTION 8.5.                       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 the 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

 

22

 

issued upon such
exercise, a Prospectus.  The Warrant
Agent shall not, by reason of any such delivery, assume any responsibility for
the accuracy or adequacy of such Prospectus.

 

SECTION 8.6.                       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, 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 Securities issued upon exercise of the
Warrant Certificates, the exercise of the Warrants, the issuance, sale,
transfer and delivery of the Warrants or upon the expiration of the period
during which the Warrants are exercisable.

 

SECTION 8.7.                       Persons
Having Rights under Warrant Agreement. 
Nothing in this Agreement shall give to any person other than the
Company, the Warrant Agent and the holders of the Warrant Certificates any
legal or equitable right, remedy or claim under or by reason of this Agreement.

 

SECTION 8.8.                       Headings.  The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the
provisions hereof.

 

SECTION 8.9.                       Counterparts.  This Agreement may be executed in any number
of counterparts, each of which as so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.

 

SECTION 8.10.                 Inspection of Agreement.  A copy of this 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.

 

23

 

IN WITNESS
WHEREOF, Hovnanian Enterprises, Inc. and [Warrant Agent] have caused this
Agreement to be signed by their respective duly authorized officers, all as of
the date first above written.

 

	
   

  	
  HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [WARRANT AGENT]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

FORM OF
WARRANT CERTIFICATE(1)

[Face of Warrant Certificate]

 

 

	
  [Form of Legend if Offered Securities
  with Warrants which are not immediately detachable.

  	
   

  	
  Prior
  to                            this
  Warrant Certificate cannot be transferred or exchanged unless attached to a
  [Title of Offered Securities].]

  
	
   

  	
   

  	
   

  
	
  [Form of Legend if Warrants are not immediately
  exercisable.

  	
   

  	
  Prior to                            ,
  Warrants evidence by this Warrant Certificate cannot be exercised.]

  

 

EXERCISABLE
ONLY IF COUNTERSIGNED BY THE WARRANT

AGENT AS PROVIDED HEREIN

 

HOVNANIAN
ENTERPRISES, INC. 

WARRANTS TO PURCHASE 

[Title of Warrant Securities]

 

VOID AFTER
5:00 P.M., [NEW YORK CITY] TIME, ON 
                                  
OR EARLIER IF NOTICE OF REDEMPTION OR ACCELERATION IS GIVEN

 

	
  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 owner [if Offered Securities with
Warrants which are not immediately detachable — , subject to the registered
owner qualifying as a “holder” of this Warrant Certificate, as hereinafter
defined] to purchase, at any time [after 5:00 P.M., [New York City] time,
on
                                  
and] on or before [the earliest of (i)] 5:00 P.M. [New York City]
time on          ,
         , [(ii) the
Accelerated Share Conversion Date as defined in the Warrant Agreement (referred
to herein) or (iii) the business day immediately prior to the Redemption
Date as defined in the Warrant Agreement,] [Common Stock, par value $.01 per
share] [Preferred Stock, par value $.0l per share] [Depositary Shares, each
representing one
            of a share
of Preferred Stock] (the “Warrant Securities”), of Hovnanian Enterprises, Inc.
(the “Company”), issued and to be issued under the Warrant Agreement (as
hereinafter defined), on the following basis: 
during the period from
                                  ,
through and including
                                  ,
the exercise price of each Warrant will be
$                  
per share; during the period from
                                  ,
through and including
                                  ,
the exercise price of each Warrant will be
$                  
per share (the “Warrant Price”).  No
adjustment shall be made for any dividends on any Warrant Securities issuable
upon exercise of any Warrant.

 

(1)                                  Complete
or modify the provisions of this Form as appropriate to reflect the terms
of the Warrants, Warrant Securities and Offered Securities.

 

 

The holder may
exercise the Warrants evidenced hereby by providing certain information set
forth on the back hereof, including any applicable certifications if the
Warrant Securities are issuable in bearer form, and by paying in full in lawful
money of the United States of America [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 [Warrant Agent], or its successor as
warrant agent (the “Warrant Agent”), [or
                             ]
currently at the address specified on the reverse hereof, and upon compliance
with and subject to the conditions set forth herein and in the Warrant
Agreement (as hereinafter defined).

 

The term “holder”
as used herein shall mean [if Offered Securities with Warrants which are not
immediately detachable — , prior to 
                                  
(the “Detachable Date”), the registered owner of the Company’s [title of
Offered Securities] to which this Warrant Certificate is initially attached,
and after such Detachable Date,] the person in whose name at the time this
Warrant Certificate shall be registered upon the books to be maintained by the
Warrant Agent for that purpose pursuant to Section 5.1 of the Warrant
Agreement.

 

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.  Upon
any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the holder 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 holder 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
                                  ].

 

[If Offered
Securities with 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 Warrants which are immediately detachable — Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is 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 [or
                                  ]
for Warrant Certificates representing the same aggregate number of Warrants.

 

The Warrants
evidenced by this Certificate may be redeemed by the Company at its option at
any time from and after [   ] but before they are converted into
[Common Stock] [Preferred Stock] [Depositary Shares], at a redemption price of
[     ] per Warrant subject to adjustment, in
accordance with the terms of the Warrant Agreement.

 

If the price
of a share of [Common Stock] [Preferred Stock] [Depositary Shares] (determined
in accordance with the Warrant Agreement) for each of 10 consecutive trading
days is at least [   ] (subject to adjustment as provided in the
Warrant Agreement), the Company may, at its option, accelerate the date on
which the Warrants shall be converted into [Common Stock] [Preferred Stock]
[Depositary Shares] and cease to be exercisable.

 

If the Warrants
evidenced by this Warrant Certificate remain outstanding at the expiration of
the period during which Warrants are exercisable, as set forth in the first
paragraph of this Warrant Certificate, such Warrants shall thereupon be
converted into [   ] shares of [Common Stock] [Preferred Stock]
[Depositary Shares] for each [   ] unexercised Warrants
hereunder (subject to adjustments as provided in the Warrant Agreement).  After such conversion of outstanding Warrants
represented by this Warrant Certificate into shares of [Common Stock]
[Preferred Stock] [Depositary Shares], the holder of this Warrant Certificate
shall surrender the same to the Warrant Agent (or, if the Warrant Agreement
shall have been terminated, to the transfer agent for [Common Stock] [Preferred
Stock] [Depositary Shares]) and the holder shall be entitled, upon such
surrender, to receive in exchange therefor a certificate or certificates
representing the number of whole shares of [Common Stock] [Preferred Stock]
[Depositary Shares] into which such Warrants shall have been converted as
aforesaid.  Unless and until so
surrendered, this Warrant Certificate shall be deemed for all purposes (subject
to the further provisions of this paragraph) to evidence the ownership of the
whole number of shares of [Common Stock] [Preferred Stock] [Depositary Shares]
into which the Warrants evidenced thereby have been so converted.  Unless and until this Warrant Certificate
shall be so surrendered, dividends or distributions payable to holders of
record of Common Stock shall not be paid to the holder of this Warrant
Certificate, but there shall be paid to the record holder of this Warrant
Certificate, with respect to the [Common Stock] [Preferred Stock] [Depositary
Shares] issued upon such conversion therefor, (i) upon such surrender, the
amount of the dividends or distributions which shall theretofore have become
payable thereon, but without interest, and (ii) after such surrender, the
amount of any dividend or distribution with a record date prior to surrender
and the payment date of which shall be subsequent to surrender, such amount to
be paid on such payment date.

 

No holder of
this Warrant Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of [Common Stock] [Preferred Stock]
[Depositary Shares] or of any other securities of the Company which may at any
time be issuable on the exercise or conversion thereof, nor shall anything
contained in the Warrant Agreement or herein be construed to confer upon the
holder hereof, as such, any of the rights of a shareholder of the Company or
any right to vote upon any matter submitted to shareholders at any meeting
thereof, or to give or withhold consent to any corporate action (whether upon
any recapitalization, issue of stock, reclassification of stock, change of par
value, consolidation, share exchange, merger,

 

 

conveyance, or
otherwise) or, except as provided in the Warrant Agreement, to receive notice
of meetings, or to receive dividends or subscription rights or otherwise, until
the Warrant or Warrants evidenced by this Warrant Certificate shall have been
exercised or converted as provided in the Warrant Agreement.

 

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

 

Dated as
of              

 

 

	
   

  	
  HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Attest:

  
	
   

  
	
   

  	
   

  
	
   

  
	
  Countersigned:

  
	
   

  
	
  [WARRANT
  AGENT],

  
	
  As Warrant Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  
						

 

 

[Reverse of
Warrant Certificate]

Instructions for Exercise of Warrant

 

To exercise
the Warrants evidenced hereby, the holder must pay in [U.S.] Dollars [in cash
or by certified check or official bank check or by bank wire transfer] [by bank
wire transfer] [in immediately available funds] the Warrant Price in full for
Warrants exercised to [Warrant Agent], [corporate trust department] [insert
address of Warrant Agent], Attn. [or
                                  ],
which [payment] [wire transfer] must specify the name of the holder and the
number of Warrants exercised by such holder. 
In addition, the holder must complete the information required below,
including any applicable certifications if the Warrant Securities are issuable
in bearer form, and present this Warrant Certificate in person or by mail
(certified or registered mail is recommended) to the Warrant Agent at the
appropriate address set forth below. 
This Warrant Certificate, completed and duly executed, must be received
by the Warrant Agent within five business days of the [payment] [wire
transfer].

 

To Be Executed
Upon Exercise of Warrant

 

The
undersigned hereby irrevocably elects to exercise
                                  
Warrants, evidenced by this Warrant Certificate, to purchase [Title of Warrant
Securities] (the “Warrant Securities”) and represents that he has tendered
payment for such Warrant Securities in [U.S.] Dollars [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 to the order of Hovnanian Enterprises, Inc.,
c/o [insert name and address of Warrant Agent], in the amount of
                                  
in accordance with the terms hereof.  The
undersigned requests that said principal amount of Warrant Securities be in
fully registered form in the authorized denominations, registered in such names
and delivered all as specified in accordance with the instructions set forth
below.

 

If the number
of Warrants exercised is less than all of the Warrants evidenced hereby, the
undersigned requests that a new Warrant Certificate representing the remaining
Warrants evidenced hereby be issued and delivered to the undersigned unless
otherwise specified in the instructions below.

 

 

 

	
  Dated:

  	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
  (Insert Social Security or Other

  	
   

  	
   

  
	
  Identifying Number of Holder)

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to

  name of holder as specified on face of this

  Warrant Certificate and must bear a signature

  guarantee by an “Eligible Guarantor

  Institution” meeting the requirements of the

  Warrant Agent, all in accordance with the

  Securities Exchange Act of 1934, as amended)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
							

 

 

The Warrants
evidenced hereby may be exercised at the following addresses:

 

	
  By hand at

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By mail at

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

[Instructions
as to form and delivery of Warrant Securities and, if applicable, Warrant
Certificates evidencing unexercised Warrants —complete as appropriate.]

 

 

Assignment

 

[Form of
Assignment To Be Executed If Holder 

Desires To Transfer Warrants Evidenced Hereby]

 

FOR VALUE
RECEIVED
                                  
hereby sells, assigns and transfers unto 

 

	
   

  	
   

  	
   

  
	
  (Please print name)

  	
   

  	
  (Please insert social security or other

  identifying number)

  
	
   

  	
   

  	
   

  
	
  (Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (City, including zip code)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the Warrants represented by the within Warrant
  Certificate and does hereby irrevocably constitute and appoint                       
  Attorney, to transfer said Warrant Certificate on the Books of the Warrant
  Agent with full power of substitution in the premises.

  
	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to
  name of holder as specified on the face of this Warrant Certificate and must
  bear a signature guarantee by an “Eligible Guarantor Institution” meeting the
  requirements of the Warrant Agent, all in accordance with the Securities
  Exchange Act of 1934, as amended)

  
	
  Signature Guaranteed3

EXHIBIT 4.18

 

 

 

HOVNANIAN
ENTERPRISES, INC.,

 

                 ,
As Depositary

 

AND

 

THE HOLDERS
FROM TIME TO TIME OF

THE DEPOSITARY RECEIPTS DESCRIBED HEREIN

 

 

Deposit
Agreement

[Insert designation of preferred stock](1)

 

 

 

Dated                     

 

 

 

(1)   Options represented by
bracketed or blank sections herein shall be determined in conformity with the
applicable prospectus supplement or supplements.

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

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

  Redemption of Receipts

  
	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and
  Transfer of Receipts

  	
   

  
	
  SECTION 2.02.

  	
  Deposit
  of Stock; Execution and Delivery of Receipts in Respect Thereof

  	
   

  
	
  SECTION 2.03.

  	
  Redemption
  of Stock

  	
   

  
	
  SECTION 2.04.

  	
  Registration
  of Transfer of Receipts

  	
   

  
	
  SECTION 2.05.

  	
  Split-ups
  and Combinations of Receipts; Surrender of Receipts and Withdrawal of Stock

  	
   

  
	
  SECTION 2.06.

  	
  Limitations
  on Execution and Delivery, Transfer, Surrender and Exchange of Receipts

  	
   

  
	
  SECTION 2.07.

  	
  Lost
  Receipts, etc.

  	
   

  
	
  SECTION 2.08.

  	
  Cancellation
  and Destruction of Surrendered Receipts

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  
	
  Certain
  Obligations of Holders of Receipts and the Company

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Filing
  Proofs, Certificates and Other Information

  	
   

  
	
  SECTION 3.02.

  	
  Payment
  of Taxes or Other Governmental Charges

  	
   

  
	
  SECTION 3.03.

  	
  Warranty
  as to Stock

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  	
   

  
	
  The Deposited
  Securities; Notices

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Cash
  Distributions

  	
   

  
	
  SECTION 4.02.

  	
  Distributions
  Other than Cash, Rights, Preferences or Privileges

  	
   

  
	
  SECTION 4.03.

  	
  Subscription
  Rights, Preferences or Privileges

  	
   

  
	
  SECTION 4.04.

  	
  Notice
  of Dividends, etc.; Fixing of Record Date for Holders of Receipts

  	
   

  
	
  SECTION 4.05.

  	
  Voting
  Rights

  	
   

  
	
  SECTION 4.06.

  	
  Changes
  Affecting Deposited Securities and Reclassifications, Recapitalizations, etc.

  	
   

  
	
  SECTION 4.07.

  	
  Inspection
  of Reports

  	
   

  
	
  SECTION 4.08.

  	
  Lists
  of Record Holders of Receipts

  	
   

  

 

i

 

	
  ARTICLE V

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Maintenance
  of Offices, Agencies and Transfer Books by the Depositary; Registrar

  	
   

  
	
  SECTION 5.02.

  	
  Prevention
  of or Delay in Performance by the Depositary, the Depositary’s Agents, the
  Registrar, the Transfer Agent or the Company

  	
   

  
	
  SECTION 5.03.

  	
  Obligations
  of the Depositary, the Depositary’s Agents, the Registrar, the Transfer Agent
  and the Company

  	
   

  
	
  SECTION 5.04.

  	
  Resignation
  and Removal of the Depositary; Appointment of Successor Depositary

  	
   

  
	
  SECTION 5.05.

  	
  Corporate
  Notices and Reports

  	
   

  
	
  SECTION 5.06.

  	
  Indemnification
  by the Company

  	
   

  
	
  SECTION 5.07.

  	
  Charges
  and Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  
	
  Amendment and Termination

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Amendment

  	
   

  
	
  SECTION 6.02.

  	
  Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Counterparts

  	
   

  
	
  SECTION 7.02.

  	
  Exclusive
  Benefit of Parties

  	
   

  
	
  SECTION 7.03.

  	
  Invalidity
  of Provisions

  	
   

  
	
  SECTION 7.04.

  	
  Notices

  	
   

  
	
  SECTION 7.05.

  	
  Depositary’s
  Agents

  	
   

  
	
  SECTION 7.06.

  	
  Holders
  of Receipts Are Parties

  	
   

  
	
  SECTION 7.07.

  	
  GOVERNING
  LAW

  	
   

  
	
  SECTION 7.08.

  	
  Inspection
  of Deposit Agreement

  	
   

  
	
  SECTION 7.09.

  	
  Headings

  	
   

  

 

ii

 

DEPOSIT AGREEMENT dated as of                     ,
among HOVNANIAN ENTERPRISES, INC., a Delaware corporation,                       ,
a                       
corporation, and the holders from time to time of the Receipts described
herein.

 

WHEREAS it is desired to provide, as
hereinafter set forth in this Deposit Agreement, for the deposit of shares of
[insert designation of preferred stock], par value $.01 per share, of HOVNANIAN
ENTERPRISES, INC. with the Depositary for the purposes set forth in this
Deposit Agreement and for the issuance hereunder of Receipts evidencing
Depositary Shares in respect of the Stock so deposited; and

 

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

 

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

 

ARTICLE I

 

Definitions

 

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

 

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

 

“Company” shall mean Hovnanian Enterprises, Inc.,
a Delaware corporation, and its successors.

 

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

 

“Depositary” shall mean                       ,
and any successor as Depositary hereunder.

 

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

 

“Depositary’s Agent” shall mean an agent
appointed by the Depositary pursuant to Section 7.05.

 

“Depositary’s Office” shall mean the principal
office of the Depositary in [New York City], at which at any particular time
its depositary receipt business shall be administered.

 

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

 

 

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

 

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

 

“Stock” shall mean shares of the Company’s
[insert designation of preferred stock], par value $.01 per share.

 

“Transfer Agent” shall be as defined in Section 7.05.

 

ARTICLE II

 

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

 

SECTION 2.01.   Form and Transfer of Receipts.  Definitive Receipts
shall be [engraved or printed or lithographed on steel-engraved borders and
shall] be substantially in the form set forth in Exhibit A annexed to this
Deposit Agreement, with appropriate insertions, modifications and omissions, as
hereinafter provided.  [Pending the
preparation of definitive Receipts, the Depositary, upon the written order of
the Company or any holder of Stock, as the case may be, delivered in compliance
with Section 2.02, shall execute and deliver temporary Receipts which are
printed, lithographed, typewritten, mimeographed or otherwise substantially of
the tenor of the definitive Receipts in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the persons executing such Receipts may determine, as evidenced by their
execution of such Receipts.  If temporary
Receipts are issued, the Company and the Depositary will cause definitive
Receipts to be prepared without unreasonable delay.  After the preparation of definitive Receipts,
the temporary Receipts shall be exchangeable for definitive Receipts upon
surrender of the temporary Receipts at any office described in the third
paragraph of Section 2.02, without charge to the holder. Upon surrender
for cancellation of any one or more temporary Receipts, the Depositary shall
execute and deliver in exchange therefor definitive Receipts representing the
same number of Depositary Shares as represented by the surrendered temporary
Receipt or Receipts. Such exchange shall be made at the Company’s expense and
without any charge therefor.  Until so
exchanged, the temporary Receipts shall in all respects be entitled to the same
benefits under this Agreement, and with respect to the Stock, as definitive
Receipts.]

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

4

 

SECTION 2.04.  
Registration of Transfer of Receipts.  Subject to the terms and
conditions of this Deposit Agreement, the Depositary shall register on its
books from time to time transfers of Receipts upon any surrender thereof by the
holder in person or by duly authorized attorney, properly endorsed or
accompanied by a properly executed instrument of transfer. Thereupon the
Depositary and the Registrar shall execute a new Receipt or Receipts evidencing
the same aggregate number of Depositary Shares as those evidenced by the
Receipt or Receipts surrendered and deliver such new Receipt or Receipts to or
upon the order of the person entitled thereto.

 

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

 

Any holder of a Receipt or Receipts
representing any number of whole shares of Stock may withdraw the Stock by
surrendering such Receipt or Receipts, at the Depositary’s Office or at such
other offices as the Depositary may designate for such withdrawals. Thereafter,
without unreasonable delay, the Depositary shall deliver to such holder, or to
the person or persons designated by such holder as hereinafter provided, the
number of whole shares of Stock represented by the Receipt or Receipts so
surrendered for withdrawal, but holders of such whole shares of Stock will not
thereafter be entitled to deposit such Stock hereunder or to receive Depositary
Shares therefor; provided, however, that a record holder who withdraws Stock in
order to demand appraisal rights available under Delaware General Corporation
Law (“DGCL”), will, subject to certain conditions described below, be entitled
to redeposit such Stock with the Depositary and to receive Receipts evidencing
Depositary Shares therefor in the event (i) such record holder
subsequently withdraws such demand for appraisal pursuant to Section 262(e) of
the DGCL, (ii) appraisal rights are not available for such Stock pursuant
to Section 262 of the DGCL or (iii) such record holder loses or
otherwise fails to perfect his rights to appraisal. In order to redeposit Stock
with the Depositary, such a record holder must deliver the certificates for
such Stock, properly endorsed or accompanied, if required by the Depositary, by
a duly executed instrument of transfer or endorsement, in form satisfactory to
the Depositary, together with instructions that such Stock be so deposited, to
the Depositary’s office or to such other offices as the Depositary may
designate by not later than the 30th day after the earlier of (i) the
withdrawal of such demand for appraisal by such record holder, (ii) notice
by the Company that appraisal rights are not available for such Stock or (iii) the
date on which such record holder loses or otherwise fails to perfect his rights
to appraisal. The Company will notify any record holder of Receipts who so
withdraws Stock in the event appraisal rights in respect of Stock are not
available. Any shares so redeposited must be free and clear of any lien,
security interest or pledge and a holder may be required to provide
certification of the foregoing and such other certifications as may be required
by the Depositary in accordance with this Agreement. In addition, if required
by the Depositary, Stock presented for redeposit shall also be accompanied by (A) an
agreement or assignment, or other instrument satisfactory to the Depositary,
which will provide for the prompt transfer to the Depositary of any dividend or
right to subscribe for additional Stock or to receive other property which such
record holder may thereafter receive

 

5

 

upon or in respect of such redeposited Stock,
or in lieu thereof, such agreement of indemnity or other agreement as shall be
satisfactory to the Depositary, and (B) a proxy or proxies entitling the
Depositary to vote such redeposited Stock for any and all purposes until the
Stock is transferred and recorded on the register of stockholders of the
Company in the name of the Depositary or its nominee. If a Receipt delivered by
the holder to the Depositary in connection with such withdrawal shall evidence
a number of Depositary Shares in excess of the number of Depositary Shares
representing the number of whole shares of Stock to be so withdrawn, the Depositary
shall at the same time, in addition to such number of whole shares of Stock to
be so withdrawn, deliver to such holder a new Receipt evidencing such excess
number of Depositary Shares. Delivery of the Stock being withdrawn may be made
by the delivery of such certificates, documents of title and other instruments
as the Depositary may deem appropriate.

 

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

 

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

 

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

 

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

 

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

 

6

 

Depositary of evidence satisfactory to the Depositary of such
destruction or loss or theft of such Receipt, of the authenticity thereof and
of his or her ownership thereof and (ii) the furnishing of the Depositary
with reasonable indemnification satisfactory to it.

 

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

 

ARTICLE III

 

Certain Obligations of Holders of Receipts
and the Company

 

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

 

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

 

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

 

ARTICLE IV

 

The Deposited Securities; Notices

 

SECTION 4.01.   Cash Distributions.  Whenever the Depositary shall
receive any cash dividend or other cash distribution on Stock, the Depositary
shall, subject to Sections 3.01 and 3.02, distribute to record holders of
Receipts on the applicable record date fixed pursuant to Section 4.04 such
amounts of such dividend or distribution as are, as nearly as practicable, in proportion
to the respective numbers of Depositary Shares evidenced by the Receipts held
by such holders; 

 

7

 

provided, however, that
in case the Company or the Depositary shall be required to withhold and shall
withhold from any cash dividend or other cash distribution in respect of the
Stock an amount on account of taxes, the amount made available for distribution
or distributed in respect of Depositary Shares shall be reduced accordingly.
The Depositary shall distribute or make available for distribution, as the case
may be, only such amount, however, as can be distributed without attributing to
any holder of Depositary Shares a fraction of one cent, and any balance not so
distributable shall be held by the Depositary (without liability for interest
thereon) and shall be added to and be treated as part of the next sum received
by the Depositary for distribution to record holders of Receipts then
outstanding.

 

SECTION 4.02.  
Distributions Other than Cash, Rights, Preferences or Privileges.  Whenever the
Depositary shall receive any distribution other than cash and other than any
rights, preferences or privileges described in Section 4.03, upon Stock,
the Depositary shall, subject to Sections 3.01 and 3.02, distribute to record
holders of Receipts on the applicable record date fixed pursuant to Section 4.04
such amounts of the securities or property received by it as are, as nearly as
practicable, in proportion to the respective numbers of Depositary Shares
evidenced by the Receipts held by such record holders, in any manner that the
Depositary may deem equitable and practicable for accomplishing such distribution.
If in the opinion of the Depositary such distribution cannot be made
proportionately among such record holders, or if for any other reason
(including any requirement that the Company or the Depositary withhold an
amount on account of taxes) the Depositary deems, after consultation with the
Company, such distribution not to be feasible, the Depositary may, with the
approval of the Company, adopt such method as it deems equitable and
practicable for the purpose of effecting such distribution, including the sale
(at public or private sale) of the securities or property thus received, or any
part thereof, at such place or places and upon such terms as it may deem
proper. The net proceeds of any such sale shall be, subject to Sections 3.01
and 3.02, distributed or made available for distribution, as the case may be,
by the Depositary to record holders of Receipts as provided by Section 4.01
in the case of a distribution received in cash.

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

SECTION 4.05.  
Voting Rights.  Upon receipt of notice of any
meeting at which the record holders of Stock are entitled to vote, the
Depositary shall, as soon as practicable

 

9

 

thereafter, mail to the record holders of
Receipts a notice which shall contain (i) such information as is contained
in such notice of meeting and (ii) a statement that the record holders
may, subject to any applicable restrictions, instruct the Depositary as to the
exercise of the voting rights pertaining to the amount of Stock represented by
their respective Depositary Shares (including an express indication that
instructions may be given to the Depositary to give a discretionary proxy to a
person designated by the Company) and a brief statement as to the manner in
which such instructions may be given. Upon the written request of the record
holders of Receipts on the relevant record date, the Depositary shall endeavor
insofar as practicable to vote or cause to be voted, in accordance with the
instructions set forth in such requests, the maximum number of whole shares of
Stock represented by the Depositary Shares evidenced by all Receipts as to
which any particular voting instructions are received. The Company hereby
agrees to take all action which may be deemed necessary by the Depositary in
order to enable the Depositary to vote such Stock or cause such Stock to be
voted. In the absence of specific instructions from the record holder of a
Receipt, the Depositary will abstain from voting (but, at its discretion, not
from appearing at any meeting with respect to such Stock unless directed to the
contrary by the holders of all the Receipts) to the extent of the Stock
represented by the Depositary Shares evidenced by such Receipt.

 

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

 

SECTION 4.07.   Inspection of Reports.  The Depositary shall
make available for inspection by record holders of Receipts at the Depositary’s
Office, and at such other places as it

 

10

 

may from time to time
deem advisable, any reports and communications received from the Company which
are received by the Depositary as the holder of Stock.

 

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

 

ARTICLE V

 

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

 

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

 

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

 

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

 

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

 

SECTION 5.02.  
Prevention of or Delay in Performance by the Depositary, the Depositary’s
Agents, the Registrar, the Transfer Agent or the Company.  Neither the
Depositary nor any Depositary’s Agent nor any Registrar nor any Transfer Agent
nor the Company shall incur any liability to any holder of any Receipt if by
reason of any provision of

 

11

 

any present or future law, or regulation
thereunder, of the United States of America or of any other governmental
authority or, in the case of the Depositary, the Depositary’s Agent or the
Registrar, by reason of any provision, present or future, of the Company’s
Certificate of Incorporation (including the Certificate) or by reason of any
act of God or war or other circumstance beyond the control of the relevant
party, the Depositary, the Depositary’s Agent, the Registrar, the Transfer
Agent or the Company shall be prevented or forbidden from, or subjected to any
penalty on account of, doing or performing any act or thing which the terms of
this Deposit Agreement provide shall be done or performed; nor shall the
Depositary, any Depositary’s Agent, any Registrar, any Transfer Agent or the
Company incur any liability to any holder of a Receipt (i) by reason of
any nonperformance or delay, caused as aforesaid, in the performance of any act
or thing which the terms of this Deposit Agreement provide shall or may be done
or performed, or (ii) by reason of any exercise of, or failure to
exercise, any discretion provided for in this Deposit Agreement except, in case
of any such exercise or failure to exercise discretion not caused as aforesaid,
if caused by the negligence or willful misconduct of the party charged with
such exercise or failure to exercise.

 

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

 

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

 

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

 

The Depositary and any Depositary’s Agent
shall not be responsible for any failure to carry out any instruction to vote
any of the shares of Stock or for the manner or effect of any such vote made,
as long as any such action or non-action is in good faith. The Depositary
undertakes, and any Registrar and Transfer Agent shall be required to
undertake, to perform such duties and only such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Depositary, any Registrar or any Transfer
Agent. The Depositary will indemnify the Company against any liability which
may arise out of acts performed or omitted by the Depositary or its agents due
to its or their negligence or bad faith. The Depositary, the Depositary’s
Agents, any Registrar and any Transfer Agent may own and deal in any class of
securities of the Company and its affiliates and in

 

12

 

Receipts. The Depositary may also act as
transfer agent or registrar of any of the securities of the Company and its
affiliates.

 

The Depositary undertakes not to (i) issue
any Receipt other than to evidence the Depositary Shares then on deposit with
it and (ii) sell (except as provided herein), pledge or lend Depositary Shares
held by it as Depositary.

 

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

 

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

 

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

 

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

 

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

 

SECTION 5.06.   Indemnification by the Company.  The Company shall
indemnify the Depositary, any Depositary’s Agent, any Registrar and any
Transfer Agent against, and hold

 

13

 

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

 

SECTION 5.07.  
Charges and Expenses.  The Company shall pay all transfer
and other taxes and governmental charges arising solely from the existence of
the depositary arrangements. The Company shall pay all charges of the
Depositary in connection with the initial deposit of the Stock and the initial
issuance of the Depositary Shares and any redemption of the Stock at the option
of the Company. All other transfer and other taxes and governmental charges and
fees for the withdrawal of Stock upon surrender of Receipts shall be at the
expense of holders of Depositary Shares. The Depositary’s fee for the
withdrawal of Stock shall be at the rate of $          
per 100 Depositary Receipts. If, at the request of a holder of Receipts, the
Depositary incurs charges or expenses for which it is not otherwise liable
hereunder, such holder will be liable for such charges and expenses. All other
charges and expenses of the Depositary and any Depositary’s Agent hereunder and
of any Registrar and Transfer Agent (including, in each case, fees and expenses
of counsel) incident to the performance of their respective obligations hereunder
will be paid upon consultation and agreement between the Depositary and the
Company as to the amount and nature of such charges and expenses. The
Depositary shall present its statement for charges and expenses to the Company
once every three months or at such other intervals as the Company and the
Depositary may agree.

 

ARTICLE VI

 

Amendment and Termination

 

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

 

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

 

14

 

distribution shall have
been distributed to the holders of Depositary Shares pursuant to Section 4.01
or 4.02, as applicable.

 

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

 

ARTICLE VII

 

Miscellaneous

 

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

 

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

 

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

 

SECTION 7.04.   Notices.  Any and all notices to be given to
the Company hereunder or under the Receipts shall be in writing and shall be
deemed to have been duly given if personally delivered or sent by mail or
telegram or telex confirmed by letter, addressed to the Company at 10 Highway
35, P.O. Box 500, Red Bank, New Jersey 07701, to the attention of the
General Counsel, or at any other address of which the Company shall have
notified the Depositary in writing.

 

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

 

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

 

Delivery of a notice sent by mail or by
telegram or telex shall be deemed to be effected at the time when a duly
addressed letter containing the same (or a confirmation thereof in the case of
a telegram or telex message) is deposited, postage prepaid, in a post office
letter box. The

 

15

 

Depositary or the Company may, however, act
upon any telegram or telex message received by it from the other or from any
holder of a Receipt, notwithstanding that such telegram or telex message shall
not subsequently be confirmed by letter or as aforesaid.

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

	
   

  	
  HOVNANIAN ENTERPRISES, INC.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  , as Depositary,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
						

 

17

 

EXHIBIT A

 

[FORM OF
DEPOSITARY RECEIPT]

 

DEPOSITARY
RECEIPT

FOR

DEPOSITARY SHARES

EACH REPRESENTING A ONE-      INTEREST

(SUBJECT TO ADJUSTMENT) IN A SHARE OF

                      ,
par value $.01 per share

OF

HOVNANIAN ENTERPRISES, INC.

(Incorporated under the laws of the State of Delaware)

 

 

	
  No. 

  	
   

  	
  EACH
  DEPOSITARY SHARE REPRESENTS A
  ONE-            
  INTEREST (SUBJECT TO ADJUSTMENT) IN A SHARE
  OF                         ,

   

   

  

 

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

 

2.                                       THE
DEPOSIT AGREEMENT.  Depositary Receipts
(the “Receipts”), of which this Receipt is one, are made available upon the
terms and conditions set forth in the Deposit Agreement, dated as of                
(the “Deposit Agreement”), among the Company, the Depositary and all holders
from time to time of Receipts. The Deposit Agreement (copies of which are on
file at the Depositary’s Office) sets forth the rights of holders of Receipts
and the rights and duties of the Depositary in respect of the Stock deposited,
and any and all money and other property from time to time held thereunder. The
statements made in this Receipt are summaries of certain provisions of the
Deposit Agreement and are subject to the detailed provisions thereof, to which
reference is hereby made. The holder of this Receipt from time to time shall be
deemed to be a party to the Deposit Agreement and shall be bound by, and
entitled to all of the rights and benefits under, all the terms and conditions
hereof and of the Deposit

 

 

Agreement by
acceptance of delivery of this Receipt. Unless otherwise expressly herein
provided, all defined terms shall have the meanings ascribed thereto in the
Deposit Agreement.

 

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

 

4.                                       TRANSFERS,
SPLIT-UPS, COMBINATIONS.  This Receipt is
transferable on the books of the Depositary upon surrender of this Receipt to
the Depositary, properly endorsed or accompanied by a properly executed
instrument of transfer, and upon such transfer the Depositary shall execute a
new Receipt to or upon the order of the person entitled thereto, as provided in
the Deposit Agreement. This Receipt may be split into other Receipts or
combined with other Receipts into one Receipt, representing the same aggregate
number of Depositary Shares as the Receipt or Receipts surrendered.

 

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

 

6.                                       PAYMENT
OF TAXES OR OTHER GOVERNMENTAL CHARGES. 
If any tax or other government charge shall become payable by or on
behalf of the Depositary with respect to this Receipt, such tax (including
transfer taxes, if any) or governmental charge shall be payable by the holder
hereof or as set forth in paragraph 9. Transfer of this Receipt may be refused
until such payment is

 

2

 

made, and any
dividends, interest payments or other distributions may be withheld or any part
of or all the Stock or other property represented by this Receipt and not
theretofore sold may be sold for the account of the holder thereof (after
attempting by reasonable means to notify such holder prior to such sale), and
such dividends, interest payments or other distributions or the proceeds of any
such sale may be applied to any payment of such tax or charge, the holder of
this Receipt remaining liable for any deficiency.

 

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

 

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

 

9.                                       CHARGES
OF DEPOSITARY.  The Company will pay all
transfer and other taxes and governmental charges arising solely from the
existence of the depositary arrangements, and all charges of the Depositary in
connection with the initial deposit of the Stock and the initial issuance of
the Depositary Shares and redemption of the Stock at the option of the Company.
All other transfer and other taxes and other governmental charges shall be at
the expense of holders of Depositary Shares. All other charges and expenses of
the Depositary and any agent of the Depositary will be paid in consultation and
agreement between the Depositary and the Company.

 

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

 

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

 

3

 

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

 

13.                                 VOTING
RIGHTS.  Upon receipt of notice of any
meeting at which holders of Stock are entitled to vote, the Depositary shall,
as soon as practicable thereafter, mail to the record holders of Receipts a
notice which shall contain (i) such information as is contained in such
notice of meeting and (ii) a statement informing holders of Receipts that
they may instruct the Depositary as to the exercise of the voting rights
pertaining to the amount of Stock represented by their respective Depositary
Shares and a brief statement as to the manner in which such instructions may be
given. Upon the written request of a holder of a Receipt on such record date,
the Depositary shall endeavor insofar as practicable to vote or cause to be
voted the amount of Stock represented by such Receipt in accordance with the
instructions set forth in such request. In the absence of specific instructions
from the holder of a Receipt, the Depositary will abstain from voting (but, at
its discretion, not from appearing at any meeting with respect to such Stock
unless directed to the contrary by the holders of Receipts) to the extent of
the Stock represented by the Depositary Shares evidenced by such Receipt.

 

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

 

15.                                 LIABILITY
AND OBLIGATIONS OF THE DEPOSITARY, THE DEPOSITARY’S AGENTS OR THE COMPANY.
Neither the Depositary nor any Depositary’s Agent nor any Registrar nor the
Company assumes any obligation or shall be subject to any liability under this
Deposit Agreement to any holder of any Receipt, other than for its gross
negligence or willful misconduct. Neither the Depositary nor any Depositary’s
Agent nor any Registrar nor the Company shall incur any liability to any holder
of any Receipt if by reason of any provision of any present or future law or
regulation thereunder of the United States of 

 

4

 

America or any
other governmental authority or, in the case of the Depositary, the Depositary’s
Agent or the Registrar, by reason of any provision, present or future, of the
Company’s Certificate of Incorporation (including the Certificate) or by reason
of any act of God or war or other circumstances beyond their control, the
Depositary, the Depositary’s Agent, the Registrar or the Company shall be
prevented or forbidden from doing or performing any act or thing which the
terms of this Deposit Agreement provide shall be done or performed; nor shall
the Depositary, any Depositary’s Agent, any Registrar or the Company incur any
liability to any holder of a Receipt by reason of nonperformance or delay,
caused as aforesaid, in performance of any act or thing which by the terms of
the Deposit Agreement it is provided shall or may be done or performed, or by
reason of any exercise of, or failure to exercise, any discretion provided for
in the Deposit Agreement, other than for its gross negligence or willful
misconduct. Neither the Depositary nor any Depositary’s Agent nor the Company
assumes any obligation or shall be subject to any liability under the Deposit
Agreement to holders of Receipts other than to use its best judgment and good
faith in the performance of such duties as are specifically set forth in the
Deposit Agreement. Neither the Depositary nor any Depositary’s Agent nor any
Registrar nor the Company shall be under any obligation to appear in, prosecute
or defend any action, suit or other proceeding in respect of the Stock, the
Depositary Shares or the Receipts, which in its opinion may involve it in
expense or liability, unless indemnity satisfactory to it against all expense
and liability be furnished. The Deposit Agreement contains various other
exculpancy, indemnification and related provisions, to which reference is
hereby made.

 

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

 

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

 

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

 

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

 

5

 

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

 

 

	
  Dated:

  	
   

  	
  ,

  
	
   

  	
  as
  Depositary and Registrar

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  

 

6

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