exh34

EX-3 2 exh34.htm EXHIBIT 3.4 exh34 Certificate of Designation
of
Powers, Preferences, Rights, Qualifications, Limitations and Restrictions
of
Series G Convertible Preferred Stock
of
Exabyte Corporation

Designation of Series G Preferred

1. Designation. Exabyte Corporation, a Delaware corporation (the "Corporation"), hereby certifies that One Million Five Hundred Thousand (1,500,000) of authorized shares of Preferred Stock are hereby designated "Series G Preferred Stock" (the "Series G Preferred"). The rights, preferences, privileges, restrictions and other matters relating to the Series G Preferred are as follows:

2. Dividend Rights.

(a) Preferential Dividends. Holders of the outstanding shares of Series G Preferred (the "Holders") will be entitled to receive, when, as and if declared by the Board of Directors, out of legally available funds, dividends on the Series G Preferred in an amount (the "Dividend Payment Amount") calculated at a compound annual rate of nine percent (9.0%) (the "Dividend Rate") on the Original Series G Issue Price for shares of Series G Preferred outstanding as of the 16th day of April, commencing April 16, 2002 and on April 16 of each year thereafter that any shares of Series G Preferred remain outstanding (each, a "Dividend Payment Date"), payable in cash or through the issuance of shares of Common Stock, as determined by Section 2(d). All dividends will be cumulative, whether or not declared, from the Original Series G Issue Date and will be payable annually in arrears with respect to shares outstanding on each Dividend Payment Date, commencing on April 30, 2002 and on April 30 of each year thereafter following each Payment Dividend Date, to Holders of record on such Dividend Payment Date immediately preceding. The amount of such dividend payment to be paid in shares of Common Stock will be satisfied and paid by the delivery to such Holders of record a number of shares of Common Stock calculated as follows (the "In-Kind Dividend Payment Amount"):

Dividend Payment Amount / Original Series G Issuance Price

If the full Dividend Payment Amount or In-Kind Dividend Payment Amount is not declared or paid with respect to any Dividend Payment Date, then the undeclared portion shall be compounded and thereafter accrue at the Dividend Rate.

The Company will not be required to issue any fractional share of Common Stock to which any Holder of Series G Preferred may become entitled pursuant to this Section. The Board of Directors may elect to settle any final fraction of a share of Common Stock which a Holder of one or more shares of Series G Preferred would otherwise be entitled to receive pursuant to this Section by having the Company pay to such Holder, in lieu of issuing such fractional share, cash in an amount (rounded upward to the nearest whole cent) equal to the equivalent fraction of the In-Kind Dividend Payment Amount in effect for the dividend payment with respect to which such shares of Series G Common Stock are being delivered. Such election, if made, will be made as to all holders of Series G Preferred who would otherwise be entitled to receive a fractional share of Series G Preferred on the date fixed for the payment of such dividend. Payment of such dividends as provided herein will be deemed to have been made when shares of Common Stock have been issued to the record Holders of the Series G Preferred entitled to receive the same.

(b) Participation Rights. Holders of Series G Preferred, in preference to the holders of Common Stock and any other stock of the Corporation that is not by its terms expressly senior to in right of payment to the Series G Preferred (collectively, "Junior Stock"), shall be entitled to receive dividends, when and as declared by the Board of Directors, but only out of funds that are legally available therefor. After payment of the preferential dividend (including all arrearage and deficiency of the preferential dividends) to the holders of the Series G Preferred, dividends may be declared and paid upon shares of Common Stock or any other Junior Stock in any fiscal year of the Corporation, but only if dividends are also concurrently declared and paid on the Series G Preferred in an amount per share equal to: (a) in the case of a dividend declared on the Common Stock, the product of the Series G Conversion Rate and the amount per share declared on each such share of Common Stock, (b) in the case of a dividend declared on junior preferred stock convertible into Common Stock, the amount determined by dividing (i) the product of the Series G Conversion Rate and the aggregate amount of the dividend declared and paid on all outstanding shares of such junior preferred stock, (ii) by the number of shares of Common Stock which such outstanding shares of junior preferred stock are convertible into as of the record date for such dividend, and (c) in the case of junior preferred stock that is not convertible into Common Stock, in an amount determined by the Board of Directors in good faith such that the holders of Series G Preferred receive an equivalent dividend in such circumstances. The record date for any such dividend shall be the same record date as set for holders of Common Stock or junior preferred stock, as the case may be.

(c) Participation with Common. If any dividend or other distribution payable in property other than cash is declared on the Common Stock (excluding any dividend or other distribution for which adjustment to the Conversion Price is provided by Section 6), each holder of Series G Preferred on the record date for such dividend or distribution shall be entitled to receive on the date of payment or distribution of such dividend or other distribution the same property that such holder would have received if on such record date such holder was the holder of record of the number (including for purposes of this Section 2 any fraction) of shares of Common Stock into which the shares of Series G Preferred then held by such holder are convertible.

(d) Limits upon Cash Dividends and Stock Dividends. Without otherwise limiting the dividend rights set forth in this Section 2 or elsewhere in this Certificate, the Corporation shall not declare or pay any cash dividends for so long as it is contractually or otherwise limited from doing so under any agreements dated before or entered into by the Company before the Original Series G Issue Date, including but not limited to that certain $25,000,000 Accounts Receivable Line of Credit by and between the Corporation and Congress Financial Corporation (Southwest), as amended and supplemented from time to time (collectively, the "Existing Agreements"). Also, the Corporation must pay dividends in cash if it is not prohibited from doing so under any of such Existing Agreements on any applicable Dividend Payment Date.

3. Voting Rights. Except as otherwise provided herein or as required by law, the Series G Preferred shall vote with the shares of the Common Stock of the Corporation (and not as a separate class) at any annual or special meeting of stockholders of the Corporation, and may act by written consent in the same manner as the Common Stock, in either case upon the following basis: each holder of shares of Series G Preferred shall be entitled to such number of votes as shall be equal to the whole number of shares of Common Stock into which such holder's aggregate number of shares of Series G Preferred are convertible (pursuant to Section 6 below) immediately after the close of business on the record date fixed for such meeting or the effective date of such written consent. Following the conversion of any Series G Preferred into Common Stock pursuant to Section 6, the Common Stock so issued shall be voting Common Stock as set forth in Article Fourth of the Restated Certificate of Incorporation, as amended to date.

4. Liquidation Rights.

(a) Liquidation Value. Upon any liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, before any distribution or payment shall be made to the holders of any Junior Stock, the holders of Series G Preferred shall be entitled to be paid out of the assets of the Corporation an amount with respect to each then outstanding share of Series G Preferred equal to the sum of (i) the Original Series G Issue Price plus (ii) all accrued but unpaid dividends thereon at the Dividend Rate (the "Series G Liquidation Value").

(b) Proportionate Payments. If, upon any liquidation, dissolution or winding up, the assets of the Corporation shall be insufficient to make payment in full to all holders of Series G Preferred, then such assets shall be distributed among the holders of Series G Preferred at the time outstanding, ratably in proportion to the full amounts to which they would otherwise be respectively entitled.

(c) Participation Rights. After the payment of the full liquidation preference of the Series G Preferred as set forth in Section 4(a) above, the remaining funds and other assets of the Corporation legally available for distribution, if any, shall be distributed pro rata among the holders of the Common Stock and the Series G Preferred on an as-converted basis.

5. Redemption Rights.

(a) Optional Redemptions. Commencing on the second annual anniversary of the Original Series G Issue Date, the Corporation shall have the right but not the obligation to redeem some or all shares of the then-outstanding Series G Preferred at a price per share equal to the Series G Liquidation Value; provided, however, that the Closing Price of the Common Stock on each of the 30 consecutive trading days prior to the date that the Corporation delivers notice of a redemption pursuant to Section 5(c) below, shall be greater than the Series G Conversion Price (defined below).

(b) Redemption Payments. For each share of Series G Preferred which is to be redeemed hereunder, the Corporation shall be obligated on the Scheduled Redemption Date (as defined below) to pay to the holder thereof (upon surrender by such holder at the Corporation's principal office of the certificate representing such share) an amount in cash equal to the Series G Liquidation Value.

(c) Notice of Redemption. The Corporation shall mail written notice of each redemption of Series G Preferred to each record holder thereof not more than 60 nor less than 30 days prior to the date fixed for such purpose (the "Scheduled Redemption Date"). The holders of Series G Preferred to be redeemed shall in any event have the right to convert their shares into Common Stock at any time prior to the close of business on the Scheduled Redemption Date. In case fewer than the total number of shares represented by any certificate are redeemed, a new certificate representing the number of unredeemed shares shall be issued to the holder thereof without cost to such holder within five business days after surrender of the certificate representing the redeemed shares.

(d) Determination of the Number of Shares to be Redeemed. The number of shares of Series G Preferred to be redeemed from each holder thereof in redemptions hereunder shall be the number of shares determined by multiplying the total number of shares of Series G Preferred to be redeemed by a fraction, the numerator of which shall be the total number of shares of Series G Preferred then held by such holder and the denominator of which shall be the total number of shares of Series G Preferred then outstanding.

6. Conversion Rights.

The holders of the Series G Preferred shall have the following rights with respect to the conversion of the Series G Preferred into shares of Common Stock:

(a) Optional Conversion. Except as may be limited by Section 6(k), subject to and in compliance with the provisions of this Section 6, any shares of Series G Preferred may, at the option of the holder, be converted at any time into fully-paid and nonassessable shares of Common Stock. The number of shares of Common Stock to which a holder of Series G Preferred shall be entitled upon conversion shall be the product obtained by multiplying the "Series G Conversion Rate" then in effect (determined as provided in Section 6(b)) by the number of shares of Series G Preferred being converted.

(b) Series G Conversion Rate. The conversion rate in effect at any time for conversion of the Series G Preferred (the "Series G Conversion Rate") shall be the quotient obtained by dividing the Original Series G Issue Price by the "Series G Conversion Price" calculated as provided in Section 6(c).

(c) Conversion Price. The conversion price for the Series G Preferred (the "Series G Conversion Price") shall initially be Two Dollars and Forty Cents ($2.40), as appropriately adjusted for any future stock splits, stock combinations, stock dividends or similar transactions affecting the Series G Preferred. Such initial Series G Conversion Price shall be adjusted from time to time in accordance with this Section 6. All references to the Series G Conversion Price herein shall mean the Series G Conversion Price as so adjusted.

For purposes of determining the adjusted Series G Conversion Price, the number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Corporation or any Subsidiary, and the disposition of any shares so owned or held shall be considered an issue or sale of Common Stock.

(d) Adjustment for Stock Splits and Combinations. If the Corporation shall at any time or from time to time after the Original Series G Issue Date effect a subdivision of the outstanding Common Stock, the Series G Conversion Price in effect immediately before that subdivision shall be proportionately decreased. Conversely, if the Corporation shall at any time or from time to time after the Original Series G Issue Date combine the outstanding shares of Common Stock into a smaller number of shares, the Series G Conversion Price in effect immediately before the combination shall be proportionately increased. Any adjustment under this Section 6(d) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(e) Adjustment for Common Stock Dividends and Distributions. If the Corporation at any time or from time to time after the Original Series G Issue Date makes, or fixes a record date for the determination of holders of Common Stock entitled to receive, a divided or other distribution payable in additional shares of Common Stock, in each such event the Series G Conversion Price that is then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Series G Conversion Price then in effect by a fraction (1) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and (2) the denominator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Series G Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Series G Conversion Price shall be adjusted pursuant to this Section 6(e) to reflect the actual payment of such dividend or distribution.

(e) Adjustment for Reclassification, Exchange and Substitution. If at any time or from time to time after the Original Series G Issue Date, the Common Stock issuable upon the conversion of the Series G Preferred is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets provided for elsewhere in this Section 6), in any such event each holder of Series G Preferred shall have the right thereafter to convert such stock into the kind and amount of stock and other securities and property receivable in connection with such recapitalization, reclassification or other change by holders of the maximum number of shares of Common Stock into which such shares of Series G Preferred could have been converted immediately prior to such recapitalization, reclassification or change, all subject to further adjustments as provided herein or with respect to such other securities or property by the terms thereof.

(f) Reorganizations, Mergers, Consolidations or Sales of Assets. If at any time or from time to time after the Original Series G Issue Date, there is a capital reorganization of the Common Stock (other than a recapitalization, subdivision, combination, reclassification, exchange or substitution of shares provided for elsewhere in this Section 6) or, subject to Section 7(vi), in the case of any consolidation or merger of the Company with or into another corporation or business entity (other than a consolidation or merger (i) with a subsidiary in which the Company is the surviving corporation or (ii) which does not result in any reclassification, capital reorganization or other change of outstanding shares of Common Stock), as a part of such capital reorganization, provision shall be made so that the holders of the Series G Preferred shall thereafter be entitled to receive upon conversion of the Series G Preferred the number of shares of stock or other securities or property of the Corporation to which a holder of the maximum number of shares of Common Stock deliverable upon conversion would have been entitled in connection with such capital reorganization, subject to adjustment in respect of such stock or securities by the terms thereof. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 6 with respect to the rights of the holders of Series G Preferred after the capital reorganization to the end that the provisions of this Section 6 (including adjustment of the Series G Conversion Price then in effect and the number of shares issuable upon conversion of the Series G Preferred) shall be applicable after that event and be as nearly equivalent as practicable. Subject to Section 7(vi), in case of a consolidation or merger, the surviving or successor corporation or other entity shall duly execute and deliver to each Holder of the Series G Preferred a supplement hereto acknowledging such corporation's or entity's obligations under this Section 6(g). The foregoing provisions of this subsection 6(g) shall similarly apply to successive reclassifications, capital reorganizations and other changes, consolidations or merger.

(h) Certificate of Adjustment. In each case of an adjustment or readjustment of the Series G Conversion Price for the number of shares of Common Stock or other securities issuable upon conversion of the Series G Preferred, the Corporation, at its expense, shall compute such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate showing such adjustment or readjustment, and shall mail such certificate, by first class mail, postage prepaid, to each registered holder of Series G Preferred at the holder's address as shown in the Corporation's books. The certificate shall set forth such adjustment or readjustment, showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (1) the consideration received or deemed to be received by the Corporation for any additional shares of Common Stock issued or sold or deemed to have been issued or sold, (2) the Series G Conversion Price at the time in effect, (3) the number of additional shares of Common Stock issued or sold or deemed to have been issued or sold, and (4) the type and amount, if any, of other property which at the time would be received upon conversion of the Series G Preferred. The Company shall provide each Holder of the Series G Preferred with not less than 10 days prior written notice of any event, other than an Acquisition or Asset Transfer, resulting in an adjustment under Section 6. With respect to a proposed Acquisition or Asset Transfer, the Holders of the Series G Preferred shall be given sufficient notice of such event so that they will have a minimum of 30 days to consider whether or not to consent to such proposed Acquisition or Asset Transfer pursuant to Section 7.

(i) Mechanics of Conversion.

(i) Optional Conversion. Each holder of Series G Preferred who desires to convert the same into shares of Common Stock pursuant to this Section 6 shall surrender the certificate or certificates therefor, duly endorsed, at the office of the Corporation or any transfer agent for the Series G Preferred, and shall give written notice to the Corporation at such office that such holder elects to convert the same. Such notice shall state the number of shares of Series G Preferred being converted. Thereupon, the Corporation shall promptly issue and deliver at such office to such holder a certificate or certificates for the number of shares of Common Stock to which such holder is entitled and shall promptly pay in cash or, to the extent sufficient funds are not then legally available therefor, in Common Stock (at the Common Stock's fair market value determined by the Board of Directors as of the date of such conversion), any declared but unpaid dividends on the shares of Series G Preferred being converted. Such conversion shall be deemed to have been made at the close of business on the date of such surrender of the certificate representing the shares of Series G Preferred to be converted, and the person entitled to receive the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder of such shares of Common Stock on such date.

(ii) Dividends. Upon conversion of any shares of Series G Preferred (the "Converted Shares"), any accrued but unpaid dividends on the Converted Shares shall be paid in cash or in shares of Common Stock pursuant to Section 2(d) in an amount determined in accordance with this Section 6(i)(ii). The amount of any dividend paid in cash (the "Pro Rata Dividend Amount") shall be equal to the aggregate amount of accrued but unpaid dividends, if any, through the Dividend Payment Date immediately preceding the date of conversion plus the product of the (A) the Dividend Payment Amount that would otherwise accrue and be payable solely with respect to the Converted Shares on the Dividend Payment Date immediately following the date of conversion if the Converted Shares were outstanding on such Dividend Payment Date and (B) a fraction, the numerator of which is the number of days that have elapsed since the last Dividend Payment Date, or the Original Series G Issue Date, whichever is later, and (ii) the denominator of which is the total number of days between the Dividend Payment Date immediately preceding the date of conversion and the Dividend Payment Date immediately following the date of conversion. In the event Section 2(d) requires that the accrued dividends on the Converted Shares be paid in shares of Common Stock, the number of shares to be issued shall be equal to the product of the Pro Rata Dividend Amount divided by the Original Series G Issue Price. Except as may be prohibited by Section 2(d), any cumulative and unpaid dividends accrued from the Original Series G Issue Date to and including the last Dividend Payment Date before the date of conversion shall be paid in cash.

(j) Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of Series G Preferred. All shares of Common Stock (including fractions thereof) issuable upon conversion of more than one share of Series G Preferred by a holder thereof shall be aggregated for purposes of determination whether the conversion would result in the issuance of any fractional share. If, after the aforementioned aggregation, the conversion would result in the issuance of any fractional share, the Corporation shall, in lieu of issuing any fractional share, pay cash equal to the product of such fraction multiplied by the Common Stock's fair market value (as determined by the Board) on the date of conversion.

(k) Limits on Conversion. In the event that the aggregate shares of Common Stock issued or issuable to any Holder upon all conversions of Series G Preferred pursuant to this Section 6, together with any shares issued as dividends thereon, exceeds the lesser of (i) 20% or more of the total voting power of the Corporation or (ii) 20% or more of the total Common Stock outstanding immediately prior to the Original Series G Issue Date, then the aggregate number of shares of Common Stock issuable upon all conversions of Series G Preferred by such Holder will not exceed the lesser of (i) 19.9% of the aggregate voting power or (ii) 19.9% of the total Common Stock of the Corporation outstanding immediately prior to the Original Series G Issue Date. The Corporation will pay to the Holder of the balance of the shares that would otherwise be converted an amount equal to the product of the number of unconverted shares multiplied by the Closing Price of the Common Stock on the last business day prior to the date as of which the conversion is effective.

7. Protective Provisions. In addition to any other rights provided by law or in the Restated Certificate of Incorporation, so long as any shares of Series G Preferred shall be outstanding, the Corporation shall not, without first obtaining the affirmative vote or written consent of the holders of not less than 100% of the outstanding shares of the Series G Preferred Stock, which consent in each case shall not be unreasonably withheld or delayed (provided that the Holders are given not less than 30 days to consider such proposed actions), take any of the following actions:

(i) any amendment or change of the rights, preferences, privileges or powers of, or the restrictions provided for the benefit of, the Series G Preferred that adversely affects such rights, preferences, privileges or powers of the Series G Preferred;

(ii) any action that authorizes, creates or issues shares of any class of stock having preferences superior to the Series G Preferred;

(iii) any action that reclassifies any outstanding shares into shares having preferences or priority as to dividends or assets senior to the preference of the Series G Preferred Stock;

(iv) any amendment of the Company's Restated Certificate of Incorporation that adversely affects the rights of the Series G Preferred;

(v) the declaration or payment of a dividend on the Common Stock other than a dividend payable solely in shares of Common Stock, and except when paid in accordance with Section 2; or

(vi) any Acquisition or Asset Transfer.

8. Certain Definitions.

"Acquisition" means any merger, consolidation, business combination, reorganization or recapitalization of the Corporation (including, without limitation, pursuant to a tender offer) in any single transaction or series of related transactions in any such case in which the stockholders of the Corporation immediately prior to such transaction own capital stock representing less than fifty percent (50%) of the Corporation's voting power immediately after such transaction, or any transaction or series of related transactions in which capital stock representing in excess of fifty percent (50%) of the Corporation's voting power is transferred.

"Asset Transfer" means any sale, lease or other disposition of all or substantially all of the assets of the Corporation.

"Closing Price" means the closing bid price of the Common Stock on the principal United States securities exchange or trading market on which such security is listed or traded as reported by Nasdaq, or if the foregoing does not apply, the last reported bid price of such security in the over-the-counter market on the electronic bulletin board for such security.

"Common Stock" means the Company's authorized common stock, $.001 par value per share.

"Common Stock Deemed Outstanding" means, at any given time, the number of shares of Common Stock actually outstanding at such time, plus (a) the number of shares of Common Stock which would be issued upon exercise of all of the Corporation's outstanding Options and (b) the number of shares of Common Stock which would be issued upon conversion or exchange of all of the Corporation's outstanding Convertible Securities (including Convertible Securities issuable upon exercise of Options).

"Convertible Securities" means any stock or securities directly or indirectly convertible into or exchangeable for Common Stock.

"Options" means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

"Original Series G Issue Date" means April 16, 2001.

"Original Series G Issue Price" means Two Dollars ($2.00) per share.

"Permitted Issuance" means any issuance of Reserved Employee Stock or shares of Common Stock issued in connection with any Acquisition or Asset Transfer.

"Reserved Employee Stock" means shares of Common Stock issuable to employees, directors or consultants of the Corporation and its Subsidiaries pursuant to the Corporation's stock option or stock purchase plans.

"Subsidiary" means any corporation of which the shares of outstanding capital stock possessing the voting power (under ordinary circumstances) in electing the board of directors are, at the time as of which any determination is being made, owned by the Corporation either directly or indirectly through Subsidiaries.

9. Amendment and Waiver.

No amendment, modification or waiver of any of the terms or provisions of the Series G Preferred shall be binding or effective without the prior written consent of the holders of a majority of the then outstanding shares of Series G Preferred (the "Required Holders"). Any amendment, modification or waiver of any of the terms or provisions of the Series G Preferred by the Required Holders, whether prospective or retroactively effective, shall be binding upon all holders of Series G Preferred Stock.

10. General Provisions.

(a) Registration of Transfer. The Corporation shall keep at its principal office a register for the registration of the Series G Preferred. Upon the surrender of any certificate representing Series G Preferred at such place, the Corporation shall, at the request of the record holder of such certificate, execute and deliver (at the Corporation's expense) a new certificate or certificates in exchange therefor representing in the aggregate the number of shares represented by the surrendered certificate. Each such new certificate shall be registered in such name and shall represent such number of shares as is requested by the holder of the surrendered certificate and shall be substantially identical in form to the surrendered certificate.

(b) Replacement. Upon receipt of evidence reasonably satisfactory to the Corporation (an affidavit of the registered holder shall be satisfactory) of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing shares of Series G Preferred, and in the case of any such loss, theft or destruction, upon receipt of indemnity reasonably satisfactory to the Corporation (provided that if the holder is a financial institution or other institutional investor its own agreement shall be satisfactory), or in the case of any such mutilation upon surrender of such certificate, the Corporation shall (at its expense) execute and deliver in lieu of such certificate a new certificate of like kind representing the number of shares of such class represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate.

(c) Reservation of Common Stock Issuable Upon Conversion. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the shares of the Series G Preferred, such number of its shares of Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of the Series G Preferred. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then-outstanding shares of the Series G Preferred, the Corporation will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.

(d) Notices. Any notice required by the provisions of this Certificate of Designation shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All notices to stockholders shall be addressed to each holder of record at the address of such holder appearing on the books of the Corporation.

(e) Payment of Taxes. The Corporation will pay all taxes (other than taxes based upon income) and other governmental charges that may be imposed with respect to the issue or delivery of shares of Common Stock upon conversion of shares of Series G Preferred, excluding any tax or other charge imposed in connection with any transfer involved in the issue and delivery of shares of Common Stock in a name other than that in which the shares of Series G Preferred so converted were registered.

(f) No Dilution or Impairment. The Corporation shall not amend its Restated Certificate of Incorporation or participate in any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, for the purpose of avoiding or seeking to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Corporation .

(g) No Reissuance of Series G Preferred. No share or shares of Series G Preferred acquired by the Corporation by reason of redemption, purchase, conversion or otherwise shall be reissued.

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The Corporation has caused this Certificate of Designation to be duly executed in its corporate name on this 12th day of April, 2001

Exabyte Corporation

By:

Name: Stephen F. Smith

Title: Vice President,

Chief Financial Officer, General Counsel and Secretary