Document:

EXHIBIT 4.2

THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE BEEN
ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i) A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii)
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES ACT IS NOT REQUIRED
IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH TRANSFER IN VIOLATION OF
ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY
NOTE ISSUED IN EXCHANGE FOR THIS NOTE OR ANY SECURITIES ISSUABLE UPON CONVERSION
OF THIS NOTE.

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE COMPANY AND PAYEE HEREUNDER ARE
SUBJECT TO THE SUBORDINATION PROVISIONS SET FORTH IN SECTION 2 HEREOF. IN THE
EVENT OF A CONFLICT BETWEEN ANY TERMS OF THIS NOTE AND THE TERMS OF SUCH SECTION
2, THE TERMS OF SECTION 2 SHALL GOVERN.

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                               COMDIAL CORPORATION

No.                                                          $
September 27, 2002

                  SENIOR SUBORDINATED SECURED CONVERTIBLE NOTE

      Comdial Corporation, a Delaware corporation (the "Company"), for value
received, hereby promises to pay to the order of ______________(the "Payee") at
the offices of the Company on the earlier of (the "Maturity Date"): (i)
September 27, 2005; (ii) a merger or combination of the Company in which the
shareholders of the Company prior to the transaction own less than a majority of
the outstanding shares of the surviving or combined entity after such
transaction; (iii) the sale of all or substantially all of the assets of the
Company to one or more third parties; or (iv) the purchase by a single entity or
person or group of affiliated entities or persons of issued and outstanding
shares of the Company representing more than 50% of the voting power; the
principal sum of ____________ ($________) or such lesser principal amount as
shall at such time be outstanding hereunder (the "Principal Amount"). The
Maturity Date set forth in clause (i) may be extended by the Company for up to
one year (the "Extension Option") upon notice to the Payee, subject to the
provisions of Section 3B hereof. Each payment by the Company pursuant to this
Note shall be made without set-off or counterclaim and shall be made in lawful
currency of the United States of America and in immediately available funds.

      Interest on this Note shall accrue on the Principal Amount outstanding
from time to time at a rate per annum computed in accordance with Section 3
hereof and shall be payable quarterly in arrears on each March 31, June 30,
September 30 and December 31 commencing December 31, 2002 (each, an "Interest
Payment Date") or earlier upon conversion of this Note pursuant to the
provisions of Sections 6A or 6B hereof. All payments by the Company hereunder
shall be applied first to pay any interest which is due, but unpaid, then to
reduce the Principal Amount.

      The Company (i) waives presentment, demand, protest or notice of any kind
in connection with this Note and (ii) agrees to pay to the Payee, on demand, all
costs and expenses

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(including reasonable legal fees and expenses) incurred in connection with the
enforcement and collection or this Note.

      This Note is issued in connection with a private placement (the
"Placement") through Commonwealth Associates, L.P. ("Commonwealth") of identical
notes (together with this Note, the "Notes") pursuant to a subscription
agreement (the "Subscription Agreement") between the Company and the Payee,
copies of which are available for inspection at the Company's principal office.
Notwithstanding any provision to the contrary contained herein, this Note is
subject and entitled to those terms, conditions, covenants and agreements
contained in the Subscription Agreement that are expressly applicable to the
Notes. Any transferee of this Note, by its acceptance hereof, assumes the
obligations of the Payee in the Subscription Agreement with respect to the
conditions and procedures for transfer of this Note. Reference to the
Subscription Agreement shall in no way impair the absolute and unconditional
obligation of the Company to pay both principal hereof and interest hereon as
provided herein.

      The Company is issuing to Winfield Capital Corp. 12% senior subordinated
secured convertible promissory notes (the "Senior Notes") in connection with a
private placement through Commonwealth as placement agent. The Senior Notes
shall be senior in right of security and payment to the Notes.

      The obligations of the Company under the Notes are secured by a junior
lien on substantially all of the Company's assets, including its intellectual
property rights, as set forth in and pursuant to a General Security Agreement
(the "Security Agreement") of even date herewith.

      1. Prepayment. Subject to the subordination provisions of Section 2
hereof, this Note may be prepaid in whole or in part at any time upon fifteen
(15) days' prior written notice to the Payee; provided, however, that any such
prepayment must be pro rata among the Notes. Subject to the subordination
provisions of Section 2 hereof, this Note must be prepaid on a pro rata basis to
the extent of (i) not less than fifty percent (50%) of the amount of any net
proceeds in excess of five million dollars (after payment of commissions)
received from the sale of securities by the Company in any financing transaction
resulting in gross proceeds of at least five million dollars and (ii) commencing
September 27, 2004, not less than fifty percent (50%) of Excess Cash Flow.
"Excess Cash Flow" shall mean as of the applicable Interest Payment Date, (i)
the Company's operating cash flow for the quarterly period ending the calendar
month immediately preceding such Interest Payment Date (the "Relevant Quarter"),
minus (without duplication of deductions) (ii) the sum of: (a) the Company's
debt service for the Relevant Quarter (exclusive of mandatory prepayments made
pursuant to this Section 1); (b) aggregate capital expenditures incurred by the
Company during the Relevant Quarter; (c) optional prepayments made pursuant to
this Section 1 during the Relevant Quarter; and (d) taxes paid by the Company
during the Relevant Quarter.

      2. Subordination. The Company, for itself, its successors and assigns,
covenants and agrees, and the Payee and each successive holder of this Note, by
its acceptance of this Note, likewise covenants and agrees (expressly for the
benefit of the present and future holders of the Senior Debt (as hereinafter
defined)), that the payment of principal of, and interest on, this Note is
hereby expressly subordinated in right of payment to the prior payment in full
of the principal of, premium (if any) and interest on, all Senior Debt of the
Company (other than the Notes), hereafter incurred or created. "Senior Debt"
means, collectively, (i) all Indebtedness for

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Borrowed Money (and all renewals, extensions, refundings, amendments and
modifications of any such Indebtedness for Borrowed Money); (ii) all payment
obligations of the Company pursuant to any capitalized lease with an entity that
is not an affiliate of the Company, unless by the terms of the instrument
creating or evidencing any such indebtedness it is expressly provided that such
indebtedness is not superior in right of payment to the Notes; and (iii) all
secured payment obligations of the Company to Winfield Capital Corp. arising
from a loan in the aggregate principal amount of up to $2,000,000.

      "Indebtedness for Borrowed Money" means (i) all secured payment
obligations of the Company to a bank, insurance company, finance company or
other institutional lender or other entity regularly engaged in the business of
extending credit in the form of borrowed money, in respect of extensions of
credit to the Company (or to a subsidiary of the Company to the extent such
obligations are guaranteed by the Company pursuant to a written guarantee
executed by the appropriate officers of the Company) or any pledgor or guarantor
of letters of credit posted on behalf of the Company and (ii) all obligations,
contingent or otherwise, relative to the face amount of all asset-based letters
of credit, whether or not drawn, and banker's acceptances, in each case issued
for the account of the Company (other than such as may be for the benefit of an
affiliate of the Company).

      The provisions of this Section 2 are not for the benefit of the Company,
but are solely for the purpose of defining the relative rights of the holders of
the Senior Debt, on the one hand, and the holders of the Notes, on the other
hand. Nothing contained herein (i) shall impair, as between the Company and the
holder of this Note, the obligations of the Company, which are absolute and
unconditional, to pay to the holder hereof all amounts payable in respect of
this Note as and when the same shall become due and payable in accordance with
the terms hereof or (ii) is intended to or shall affect the relative rights of
the holder of this Note and the creditors of the Company, or (iii) shall prevent
the holder of this Note from exercising all rights, powers and remedies
otherwise permitted by applicable law or upon a default or Event of Default
under this Note as set forth in these subordination provisions.

      3. Computation of Interest. All computations of interest hereunder shall
be made based on the actual number of days elapsed in a year of 365 days
(including the first day but excluding the last day during which any such
Principal Amount is outstanding).

         A. Base Interest Rate. Subject to Sections 3B and 3C below, the
outstanding Principal Amount shall bear interest at the rate of seven percent
(7%) per annum.

         B. Penalty Interest. In the event the Extension Option is exercised
by the Company or this Note is not otherwise repaid on the Maturity Date, the
rate of interest applicable to the unpaid Principal Amount shall be adjusted to
twelve percent (12%) per annum from the Maturity Date until repayment; provided,
that in no event shall the interest rate exceed the Maximum Rate provided in
Section 3C below.

         C. Maximum Rate. In the event that it is determined that, under the
laws relating to usury applicable to the Company or the indebtedness evidenced
by this Note ("Applicable Usury Laws"), the interest charges and fees payable by
the Company in connection herewith or in connection with any other document or
instrument executed and delivered in

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connection herewith cause the effective interest rate applicable to the
indebtedness evidenced by this Note to exceed the maximum rate allowed by law
(the "Maximum Rate"), then such interest shall be recalculated for the period in
question and any excess over the Maximum Rate paid with respect to such period
shall be credited, without further agreement or notice, to the Principal Amount
outstanding hereunder to reduce said balance by such amount with the same force
and effect as though the Company had specifically designated such extra sums to
be so applied to principal and the Payee had agreed to accept such extra
payment(s) as a premium-free prepayment. All such deemed prepayments shall be
applied to the principal balance payable at maturity. In no event shall any
agreed-to or actual exaction as consideration for this Note exceed the limits
imposed or provided by Applicable Usury Laws in the jurisdiction in which the
Company is resident applicable to the use or detention of money or to
forbearance in seeking its collection in the jurisdiction in which the Company
is resident.

      4. Covenants of Company.

         A. Affirmative Covenants. So long as this Note shall be outstanding,
the Company covenants and agrees to the following:

            (i) Taxes and Levies. The Company will promptly pay and discharge
all material taxes, assessments, and governmental charges or levies imposed upon
the Company or upon its income and profits, or upon any of its property, before
the same shall become delinquent, as well as all material claims for labor,
materials and supplies which, if unpaid, might become a lien or charge upon such
properties or any part thereof; provided, however, that the Company shall not be
required to pay and discharge any such tax, assessment, charge, levy or claim so
long as the validity thereof shall be contested in good faith by appropriate
proceedings and the Company shall set aside on its books adequate reserves in
accordance with generally accepted accounting principles ("GAAP") with respect
to any such tax, assessment, charge, levy or claim so contested.

            (ii) Maintenance of Existence. The Company will do or cause to be
done all things reasonably necessary to preserve and keep in full force and
effect its corporate existence, rights and franchises and comply with all laws
applicable to the Company, except where the failure to comply would not have a
material adverse effect on the Company or otherwise in connection with an
acquisition of the Company.

            (iii) Maintenance of Property. The Company will at all times
maintain, preserve, protect and keep its property used or useful in the conduct
of its business in good repair, working order and condition, and from time to
time make all needful and proper repairs, renewals, replacements and
improvements thereto as shall be reasonably required in the conduct of its
business.

            (iv) Books and Records. The Company will at all times keep true and
correct books, records and accounts reflecting all of its business affairs and
transactions in accordance with GAAP.

            (v) Notice of Certain Events. The Company will give prompt written
notice (with a description in reasonable detail) to the Payee of the occurrence
of any Event of

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Default or any event which, with the giving of notice or the lapse of time,
would constitute an Event of Default.

            (vi) Board Designee. The Company shall appoint one director to the
Board designated by the Required Holders (as defined in Section 7A hereof) or
Commonwealth on behalf of the Noteholders.

         B. Negative Covenants. So long as this Note shall be outstanding, the
Company covenants and agrees to the following:

            (i) Liquidation, Dissolution. The Company will not liquidate or
dissolve, consolidate with, or merge into or with, any corporation or entity,
except that (1) any wholly-owned subsidiary may merge with another wholly-owned
subsidiary or with the Company (so long as the Company is the surviving
corporation and no Event of Default shall occur as a result thereof) and (2) the
Company may complete a merger or consolidation if the surviving entity has cash
and cash equivalents and/or net assets which are either (a) equal to or greater
than the then outstanding Principal Amount and accrued interest on the Notes or
(b) equal to or greater than the Company's cash and cash equivalents and/or net
assets immediately prior to such merger or consolidation.

            (ii) Sales of Assets. The Company will not sell, transfer, lease or
otherwise dispose of, or grant options, warrants or other rights with respect
to, all or substantially all of its properties or assets to any person or entity
other than in connection with a transaction covered by clause (i) above unless
this Note is repaid in full prior to or in connection with such transaction;
provided that this clause (ii) shall not restrict any disposition made in the
ordinary course of business and consisting of

                 (a) capital goods which are obsolete or have no remaining
useful life; or

                 (b) finished goods inventories.

            (iii) Transactions with Affiliates. The Company will not enter into
any transaction, including, without limitation, the purchase, sale, lease or
exchange of property, real or personal, the purchase or sale of any security,
the borrowing or lending of any money, or the rendering of any service, with any
person or entity affiliated with the Company (including officers, directors and
shareholders owning 3% or more of the Company's outstanding capital stock),
except (a) transactions valued at less than $25,000 entered into in the ordinary
course of and pursuant to the reasonable requirements of its business and upon
fair and reasonable terms not less favorable than would be obtained in a
comparable arms-length transaction with any other person or entity not
affiliated with the Company, (b) transactions with Commonwealth or any of its
affiliates, or (c) transactions approved by a majority of the independent
members of the Board of Directors.

            (iv) Investments. The Company will not purchase, own, invest in or
otherwise acquire, directly or indirectly, any stock or other securities or make
or permit to exist any investment or capital contribution or acquire any
interest whatsoever in any other person or entity or permit to exist any loans
or advances for such purposes except for investments in direct

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obligations of the United States of America or any state thereof or any agency
thereof, obligations guaranteed by the United States of America or any state
thereof and certificates of deposit or other obligations of any bank or trust
company organized under the laws of the United States or any state thereof and
having capital and surplus of at least $500,000,000; provided, however, that
nothing contained in this clause (iv) shall preclude the Company from making
acquisitions, organizing and making advances to subsidiaries, and entering into
joint ventures or other business arrangements for the purpose of expanding its
business.

            (v) Proration of Payments. The Company shall not make or permit any
payment or other recovery (whether voluntary, involuntary, by application of
setoff or otherwise) on account of the Principal Amount or interest payable
hereunder in excess of the Payee's pro rata share of payments then being made in
respect of all Notes.

            (vi) Indebtedness. Except for the Senior Debt, the Company will not
create, incur, assume or suffer to exist, contingently or otherwise, any
indebtedness for borrowed money that is either (i) pari passu or senior in right
of payment to the Notes, (ii) subordinated in right of payment to the Notes if
such indebtedness is due and payable prior to the Maturity Date, or (iii) at the
time of incurrence would preclude the timely repayment of this Note or otherwise
render the Company unable to pay its debts as they become due.

            (vii) Negative Pledge. The Company will not hereafter create, incur,
assume or suffer to exist any mortgage, pledge, hypothecation, assignment,
security interest, encumbrance, lien (statutory or other), preference, priority
or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement
and any financing lease) (each, a "Lien") upon any of its property, revenues or
assets, whether now owned or hereafter acquired, except:

                 (a) Liens granted to secure indebtedness incurred to finance
the acquisition (whether by purchase or capitalized lease) of tangible assets,
but only on the assets acquired with the proceeds of such indebtedness;

                 (b) Liens for taxes, assessments or other governmental charges
or levies not at the time delinquent or thereafter payable without penalty or
being contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books;

                 (c) Liens of carriers, warehousemen, mechanics, materialmen and
landlords incurred in the ordinary course of business for sums not overdue or
being contested in good faith by appropriate proceedings and for which adequate
reserves in accordance with GAAP shall have been set aside on its books;

                 (d) Liens (other than Liens arising under the Employee
Retirement Income Security Act of 1974, as amended, or Section 412(n) of the
Internal Revenue Code of 1986, as amended) incurred in the ordinary course of
business in connection with workers' compensation, unemployment insurance or
other forms of governmental insurance or benefits, or to secure performance of
tenders, statutory obligations, leases and contracts (other than for borrowed
money) entered into in the ordinary course of business or to secure obligations
on surety or appeal bonds;

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                 (e) judgment Liens in existence less than sixty (60) days after
the entry thereof or with respect to which execution has been stayed;

                 (f) rights of return granted by the Company to supply houses;
and

                 (g) any other Permitted Liens (as defined in the Security
Agreement).

            (viii) Dividends. The Company will not declare or pay any dividends
or distributions on its outstanding --------- capital stock other than as may be
provided for in any currently existing certificates of designation or
certificates of amendment with respect to shares of preferred stock.

            (ix) Acceleration of Payments. The Company shall not make any
accelerated payment under any agreement, lease, loan or any other similar
instrument, whether due to settlement, entry of judgment or otherwise, which
shall exceed $50,000 in any one instance or $100,000 in the aggregate.
Notwithstanding the preceding sentence, the Company shall be permitted to pay
the accounts payable reflected on the balance sheet of the Company contained in
the most recently filed Quarterly Report on Form 10-Q and other payables which
are incurred in the ordinary course of business.

            (x) Executive Compensation and Retention. Except as the Company may
be obligated to do pursuant to any existing employment agreement and except for
options and bonuses to be granted to executive officers as set forth on Schedule
2.3 to the Subscription Agreement, the Company shall not increase the cash or
non-cash compensation payable to Nickolas A. Branica, Paul K. Suijk, Ralph R.
Dyer, Kenneth W. Noack and Carla K. Luke, or hire any new senior executives
without the approval of the majority of the independent members of the Board.

            (xi) Issuance of Securities. Except as otherwise provided for
herein, the Company shall not, without the prior written consent of the Required
Holders, issue any securities that are redeemable or otherwise provide for cash
payments to the holders thereof if such payments can be made prior to the
Maturity Date.

      5. Events of Default.

         A. The term "Event of Default" shall mean any of the events set forth
in this Section 5A:

            (i) Non-Payment of Obligations. The Company shall default in the
payment of the Principal Amount when and as the same shall become due and
payable, whether by acceleration or otherwise, or shall default in the payment
of accrued interest on this Note which default shall not be cured within ten
(10) business days after the applicable Interest Payment Date.

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            (ii) Non-Performance of Affirmative Covenants. The Company shall
default in any material respect in the due observance or performance of any
covenant set forth in Section 4A, which default shall continue uncured for ten
(10) days.

            (iii) Non-Performance of Negative Covenants. The Company shall
default in any material respect in the due observance or performance of any
covenant set forth in Section 4B.

            (iv) Non-Performance of Other Obligations. The Company shall default
in the due observance or performance of any other material covenant or agreement
on the part of the Company to be observed or performed pursuant to the terms
hereof, which default shall continue uncured for five (5) days after such
default has been discovered by the Company.

            (v) Bankruptcy, etc. The Company shall:

                 (a) apply for, consent to, or acquiesce in, the appointment of
a trustee, receiver, sequestrator or other custodian for the Company or any of
its property, or make a general assignment for the benefit of creditors;

                 (b) in the absence of such application, consent or acquiesce
in, permit or suffer to exist the appointment of a trustee, receiver,
sequestrator or other custodian for the Company or for any part of its property;

                 (c) permit or suffer to exist the commencement of any
bankruptcy, reorganization, debt arrangement or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution, winding up or liquidation
proceeding, in respect of the Company and, if such case or proceeding is not
commenced by the Company or converted to a voluntary case, such case or
proceeding shall be consented to or acquiesced in by the Company or shall result
in the entry of an order for relief or shall remain for 60 days undismissed; or

                 (d) take any corporate or other action authorizing or in
furtherance of, any of the foregoing.

            (vi) Breach of Representations or Warranties. Any material
representation or warranty of the Company contained in the Subscription
Agreement or Warrants is or shall be incorrect in any material respect when
made.

            (vii) Cross-Acceleration. Any indebtedness for borrowed money of the
Company or any subsidiary in an aggregate principal amount exceeding $50,000 (1)
shall be duly declared to be or shall become due and payable prior to the stated
maturity thereof, or (2) shall not be paid as and when the same becomes due and
payable, including any applicable grace period.

            (viii) Cross-Default. The occurrence of an Event of Default under
the Senior Notes.

         B. Action if Bankruptcy. If any Event of Default described in clauses
(v)(a) through (c) of Section 5A shall occur, the outstanding Principal Amount
of this Note and all

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other obligations hereunder shall automatically be and become immediately due
and payable, without notice or demand.

         C. Action if Other Event of Default. If any Event of Default (other
than any Event of Default described in clauses (v)(a) through (c) of Section 5A)
shall occur for any reason, whether voluntary or involuntary, and be continuing,
the Holders may, upon notice to the Company, declare all or any portion of the
outstanding Principal Amount of this Note, together with interest accrued
thereon to be due and payable and any or all other obligations hereunder to be
due and payable, whereupon the full unpaid Principal Amount, such accrued
interest and any and all other such obligations which shall be so declared due
and payable shall be and become immediately due and payable, without further
notice, demand, or presentment.

         D. Remedies. Subject to the provisions of Section 5C and 7A hereof, in
case any Event of Default shall occur and be continuing, the holders of not less
than 25% of the outstanding aggregate Principal Amount of the Notes may proceed
to protect and enforce their rights by a proceeding seeking the specific
performance of any covenant or agreement contained in this Note or in aid of the
exercise of any power granted in this Note or may proceed to enforce the payment
of this Note or to enforce any other legal or equitable rights as such holders
shall determine.

      6. Conversion of Note.

         A. Automatic Conversion. The Company shall have the right, at its sole
discretion, to convert the outstanding Principal Amount into Common Stock at a
conversion price equal to $0.33 per share (the "Automatic Conversion Price"),
subject to adjustment pursuant to Section 6D, if: (i) the average closing price
per share of the Company's Common Stock equals or exceeds $1.00 for twenty (20)
consecutive trading days ending within five days of the notice to the Payee of
conversion pursuant to this Section 6B; (ii) the Common Stock is then trading on
the Nasdaq SmallCap Market, the Nasdaq National Market or a national securities
exchange; (iii) either a registration statement covering the resale of the
Conversion Shares has been declared effective by the Securities and Exchange
Commission and remains effective or Rule 144(k) is available for resale of the
Conversion Shares; and (iv) the Conversion Shares are not subject to any
contractual restrictions on transferability with the Company, its underwriter or
agent. Upon conversion of this Note pursuant to this Section 6B, all accrued and
unpaid interest shall be due and payable in cash. The shares of Common Stock
issuable upon conversion of this Note in accordance with Sections 6A and 6B
hereof are referred to herein as the "Conversion Shares."

         B. Optional Conversion upon certain Event of Default. In the event that
the Company defaults in the payment of any Principal Amount under this Note when
due (at the Maturity Date, by acceleration or otherwise), the Payee shall have
the right, at its option, to convert all or any of the outstanding Principal
Amount and any accrued but unpaid interest into shares of Common Stock at a
conversion price per share equal to the lesser of (i) the Automatic Conversion
Price and (ii) 90% of the average closing price of the Common Stock for the five
trading days immediately prior to the date of the notice of conversion (or, if
the Common Stock has ceased trading, the average closing price for the last five
available trading days). Upon

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cancellation of this Note pursuant to this Section 6B, all accrued and unpaid
interest shall be due and payable in cash.

         C. Adjustment of Automatic Conversion Price. The Automatic Conversion
Price in effect at any time and the number and kind of securities issuable upon
conversion of the Notes shall be subject to adjustment from time to time upon
the happening of certain events as follows:

            (i) In case the Company shall hereafter (a) declare a dividend or
make a distribution on its outstanding shares of Common Stock in shares of
Common Stock, (b) subdivide or reclassify its outstanding shares of Common Stock
into a greater number of shares, or (c) combine or reclassify its outstanding
shares of Common Stock into a smaller number of shares, the Automatic Conversion
Price in effect at the time of such dividend or distribution or of the effective
date of such subdivision, combination or reclassification shall be adjusted so
that it shall equal the price determined by multiplying the Automatic Conversion
Price by a fraction, the denominator of which shall be the number of shares of
Common Stock outstanding after giving effect to such action, and the numerator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such action. Such adjustment shall be made successively whenever any
event listed above shall occur.

            (ii) In case the Company shall fix a record date for the issuance of
rights or warrants to all holders of its Common Stock entitling them to
subscribe for or purchase shares of Common Stock (or securities convertible into
Common Stock) at a price (the "Subscription Price") (or having a conversion
price per share) less than the Automatic Conversion Price on such record date,
the Automatic Conversion Price shall be adjusted so that the same shall equal
the price determined by multiplying the Automatic Conversion Price in effect
immediately prior to the date of such issuance by a fraction, the numerator of
which shall be the sum of (x) the number of Common Stock Equivalents Outstanding
(as defined below) on the record date mentioned below and (y) the number of
additional shares of Common Stock which the aggregate offering price of the
total number of shares of Common Stock so offered (plus the aggregate conversion
price of the convertible securities so offered) would purchase at the Automatic
Conversion Price in effect immediately prior to the issuance, and the
denominator of which shall be the sum of (x) the number of Common Stock
Equivalents Outstanding on such record date and (y) the number of additional
shares of Common Stock offered for subscription or purchase (or into which the
convertible securities so offered are convertible). For purposes of this Section
6C, "Common Stock Equivalents Outstanding" shall mean the number of shares of
Common Stock that is equal to the sum of (1) all shares of Common Stock of the
Company that are outstanding at the time in question, plus (2) all shares of
Common Stock of the Company issuable, directly or indirectly, upon conversion of
all shares of preferred stock or other stock or other securities convertible
into or exchangeable, directly or indirectly, for shares of Common Stock without
the payment of additional consideration ("Convertible Securities") that are
outstanding at the time in question. Such adjustment shall be made successively
whenever such rights or warrants are issued and shall become effective
immediately after the record date for the determination of shareholders entitled
to receive such rights or warrants; and to the extent that shares of Common
Stock are not delivered (or securities convertible into Common Stock are not
delivered) after the expiration of such rights or warrants the Automatic
Conversion Price shall be readjusted to the Automatic Conversion Price which
would then be in effect had the adjustments

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made upon the issuance of such rights or warrants been made upon the basis of
delivery of only the number of shares of Common Stock (or securities convertible
into Common Stock) actually delivered.

            (iii) In case the Company shall hereafter distribute to the holders
of its Common Stock evidences of its indebtedness or assets (excluding cash
dividends or distributions and dividends or distributions referred to in
Subsection (i) above) or subscription rights or warrants (excluding those
referred to in Subsection (ii) above), then in each such case the Automatic
Conversion Price in effect thereafter shall be determined by multiplying the
Automatic Conversion Price in effect immediately prior thereto by a fraction,
the numerator of which shall be (x) the total number of Common Stock Equivalents
Outstanding multiplied by the current market price per share of Common Stock,
less (y) the fair market value (as determined by the Company's Board of
Directors) of said assets or evidences of indebtedness so distributed or of such
rights or warrants, and the denominator of which shall be the total number of
Common Stock Equivalents Outstanding multiplied by such current market price per
share of Common Stock. Such adjustment shall be made successively whenever such
a record date is fixed. Such adjustment shall be made whenever any such
distribution is made and shall become effective immediately after the record
date for the determination of shareholders entitled to receive such
distribution.

            (iv) In case the Company shall hereafter issue shares of its Common
Stock (excluding shares (a) issued in any of the transactions described in
Subsections (i), (ii) or (v), (b) issued to shareholders of any corporation
which merges into the Company in proportion to their stock holdings of such
corporation immediately prior to such merger, upon such merger, (c) issued in a
bona fide public offering pursuant to a firm commitment underwriting, (d) issued
in connection with an acquisition of a business or technology which has been
approved by a majority of the Company's non-employee directors, (e) issued in
connection with the payment of interest or dividends with respect to any
securities issued to investors or Commonwealth and/or their designees in
connection with the Placement or upon conversion or exercise of such securities,
or (f) issued upon exercise of options, warrants, convertible securities and
convertible debentures) for a consideration per share (the "Offering Price")
less than the Automatic Conversion Price, the Automatic Conversion Price shall
be adjusted immediately thereafter so that it shall equal the price determined
by multiplying the Automatic Conversion Price in effect immediately prior
thereto by a fraction, the numerator of which shall be the sum of (x) the number
of Common Stock Equivalents Outstanding immediately prior to the issuance of
such additional shares and (y) the number of shares of Common Stock which the
aggregate consideration received for the issuance of such additional shares
would purchase at the Automatic Conversion Price in effect immediately prior to
the issuance, and the denominator of which shall be the number of Common Stock
Equivalents Outstanding immediately after the issuance of such additional
shares. Such adjustment shall be made successively whenever such an issuance is
made, and to the extent that shares of Common Stock (or securities convertible
into Common Stock), expire, are cancelled or are redeemed after their issuance,
the Automatic Conversion Price shall be readjusted to the Automatic Conversion
Price that would then be in effect had the adjustments made upon the issuance of
convertible securities been made upon the basis of delivery of only the number
of shares of Common Stock (or securities convertible into Common Stock) actually
issued.

                                       11

<PAGE>

            (v) In case the Company shall hereafter issue any securities
convertible into or exercisable or exchangeable for its Common Stock (excluding
(a) securities issued in transactions described in Subsections (ii), (iii) and
(iv)(a) through (f), (b) options granted to the Company's officers, directors,
employees and consultants under a plan or plans adopted by the Company's Board
of Directors, if such options would otherwise be included in this Subsection (v)
(but only to the extent that the aggregate number of shares issuable upon
exercise of the options excluded hereby and issued after the date hereof, shall
not exceed 10% of the Company's Common Stock outstanding, on a fully diluted
basis, at the time of any issuance unless such excess issuances are approved by
the non-employee members of the Company's Board of Directors or by a committee
comprised of a majority of non-employee directors) and (c) options, warrants,
convertible securities and convertible debentures outstanding as of the date
hereof or upon issuance, or subsequent exercise or conversion of, or in
connection with the payment of in kind interest or dividends with respect to,
any securities issued to investors or Commonwealth and/or their designees in
connection with the Placement, or upon conversion or exercise of such
securities) for a consideration per share of Common Stock (the "Exchange Price")
initially payable and thereafter deliverable upon conversion, exercise or
exchange of such securities (determined as provided in Subsection (vii) below)
less than the Automatic Conversion Price, the Automatic Conversion Price shall
be adjusted immediately thereafter so that it shall equal the price determined
by multiplying the Automatic Conversion Price in effect immediately prior
thereto by a fraction, the numerator of which shall be the sum of (x) the number
of Common Stock Equivalents Outstanding immediately prior to the issuance of
such securities and (y) the number of shares of Common Stock which the aggregate
consideration paid for such securities (plus the aggregate exercise price if
such convertible securities are options or warrants) would purchase the
Automatic Conversion Price and the denominator of which shall be the sum of (x)
the number of Common Stock Equivalents Outstanding immediately prior to such
issuance and (y) the maximum number of shares of Common Stock of the Company
deliverable upon conversion, exercise or exchange of such securities at the
initial Exchange Price. Such adjustment shall be made successively whenever such
an issuance is made; and to the extent that shares of Common Stock are not
delivered after the expiration of such securities the Automatic Conversion Price
shall be readjusted to the Automatic Conversion Price which would then be in
effect had the adjustments made upon the issuance of such securities been made
upon the basis of delivery of only the number of shares of Common Stock actually
delivered.

            (vi) No adjustment in the Automatic Conversion Price shall be
required unless such adjustment would require an increase or decrease of at
least two cents ($0.02) in such price; provided, however, that any adjustments
which by reason of this Section 6C are not required to be made shall be carried
forward and taken into account in any subsequent adjustment required to be made
hereunder.

            (vii) For purposes of any computation respecting consideration
received pursuant to Subsections (iv) and (v) above, the following shall apply:

                 (a) in the case of the issuance of shares of Common Stock for
cash, the consideration shall be the amount of such cash, provided that in no
case shall any deduction be made for any commissions, discounts or other
expenses incurred by the Company for any underwriting of the issue or otherwise
in connection therewith;

                                       12

<PAGE>

                 (b) in the case of the issuance of shares of Common Stock for a
consideration in whole or in part other than cash, the consideration other than
cash shall be deemed to be the fair market value thereof as determined in good
faith by the Board of Directors of the Company (irrespective of the accounting
treatment thereof), whose determination shall be conclusive; and

in the case of the issuance of securities convertible into or exchangeable for
shares of Common Stock, the aggregate consideration received therefor shall be
deemed to be the consideration received by the Company for the issuance of such
securities plus the additional minimum consideration, if any, to be received by
the Company upon the conversion or exchange thereof (the consideration in each
case to be determined in the same manner as provided in clauses (a) and (b) of
this Subsection (vii)).

            (viii) All calculations under this Section 6C shall be made to the
nearest cent or to the nearest one-hundredth of a share, as the case may be.
Anything in this Section 6C to the contrary notwithstanding, the Company shall
be entitled, but shall not be required, to make such changes in the conversion
price, in addition to those required by this Section 6C, as it shall determine,
in its sole discretion, to be advisable in order that any dividend or
distribution in shares of Common Stock, or any subdivision, reclassification or
combination of Common Stock, hereafter made by the Company shall not result in
any Federal Income tax liability to the holders of Common Stock or securities
convertible into Common Stock (including the Notes).

            (ix) In the event that at any time, as a result of an adjustment
made pursuant to Subsection (i) above, the Payee thereafter shall become
entitled to receive any shares of the Company, other than Common Stock,
thereafter the number of such other shares so receivable upon conversion of this
Note 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 Common
Stock contained in Subsections (i) to (viii), inclusive above.

         D. Mechanics of Conversion.

            (i) Optional Conversion. Before the Payee shall be entitled to
convert this Note into the Conversion Shares pursuant to Section 6C hereof, the
Payee shall surrender this Note, duly endorsed, at the office of the Company,
and shall give written notice to the Company at its principal corporate office,
of the election to convert some or all of the Principal Amount of the same and
shall state therein the name or names in which the certificate or certificates
for the Conversion Shares are to be issued. The Company shall, as soon as
practicable thereafter, issue and deliver to the Payee, a certificate or
certificates for the number of Conversion Shares to which such holder shall be
entitled as aforesaid. Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of the
Note to be converted, and the person or persons entitled to receive the
Conversion Shares issuable upon such conversion shall be treated for all
purposes as the record holder or holders of such securities as of such date. If
less than the entire Principal Amount is converted, the amount converted shall
be treated as a payment of the Principal Amount in the order of maturity.

                                       13

<PAGE>

            (ii) Automatic Conversion. Before the Company shall be entitled to
convert this Note into the Conversion Shares pursuant to Section 6A hereof, the
Company shall deliver to the Payee at its address appearing on the records of
the Company a written notice of the imminent conversion of this Note (the
"Conversion Notice"), requesting surrender of this Note for cancellation and
written instructions regarding the registration and delivery of certificates for
the Conversion Shares. In the event the Payee receives a Conversion Notice, the
Payee shall be required to surrender this Note for cancellation within five
business days of the Conversion Notice (the "Conversion Date"), but the failure
of the Payee so to surrender this Note shall not affect the conversion of the
outstanding Principal Amount into Conversion Shares, provided that if the Note
is not surrendered, an affidavit of lost note shall be provided. No holder of
this Note shall be entitled upon conversion of this Note to have the Conversion
Shares registered in the name of another person or entity without first
complying with all applicable restrictions on the transfer of this Note. In the
event the Payee does not provide the Company with written instructions regarding
the registration and delivery of certificates for the Conversion Shares, the
Company shall issue such shares in the name of the Payee and shall forward such
certificates to the Payee at its address appearing on the records of the
Company. The person entitled to receive the Conversion Shares shall be deemed to
have become the holder of record of such shares at the close of business on the
Conversion Date and the person entitled to receive share certificates for the
Conversion Shares shall be regarded for all corporate purposes after the
Conversion Date as the record holder of the number of Conversion Shares to which
it is entitled upon the conversion. The Company may rely on record ownership of
this Note for all corporate purposes, notwithstanding any contrary notice. After
the Conversion Date, this Note shall, until surrendered to the Company,
represent the right to receive the Conversion Shares; provided, however, that
the Company shall have no obligation to issue the Conversion Shares until the
Payee has delivered either this Note or an affidavit of loss.

         E. Cash Payments. No fractional shares (or scrip representing
fractional shares) of Common Stock shall be issued upon conversion of this Note.
In the event that the conversion of the Principal Amount of this Note would
result in the issuance of a fractional share of Common Stock the Company shall
pay a cash adjustment in lieu of such fractional share to the holder of this
Note based upon the applicable conversion price.

         F. Stamp Taxes, etc. The Company shall pay all documentary, stamp or
other transactional taxes attributable to the issuance or delivery of shares of
Common Stock upon conversion of this Note; provided, however, that the Company
shall not be required to pay any taxes which may be payable in respect of any
transfer involved in the issuance or delivery of any certificate for such shares
in a name other than that of the holder of this Note, and the Company shall not
be required to issue or deliver any such certificate unless and until the person
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the Company's satisfaction that such tax
has been paid.

         G. Validity of Stock. All shares of Common Stock that may be issued
upon conversion of this Note will, upon issuance by the Company in accordance
with the terms of this Note, be validly issued, free from all taxes and liens
with respect to the issuance thereof (other than those created by the holders),
free from all pre-emptive or similar rights and fully paid and non-assessable.

                                       14

<PAGE>

         H. Reservation of Shares. The Company covenants and agrees that it
shall use its reasonable best efforts to file, within 60 days after the initial
issuance of the Notes, an amendment to its certificate of incorporation
increasing the authorized number of shares of Common Stock to not less than
500,000,000 and to thereafter reserve the maximum number of shares of Common
Stock available for issuance and/or delivery upon conversion of the Notes
(assuming a lowest possible default conversion price of $.05 per share) out of
its authorized but unissued shares.

         I. Notice of Certain Transactions. In case at any time:

            (i) The Company shall declare any dividend upon, or other
distribution in respect of, its Common Stock;

            (ii) The Company shall offer for subscription to the holders of its
Common Stock any additional shares of stock of any class or any other securities
convertible into shares of stock or any rights to subscribe thereto;

            (iii) There shall be any capital reorganization or reclassification
of the capital stock of the Company, or a sale of all or substantially all of
the assets of the Company, or a consolidation or merger of the Company with
another corporation (other than a merger with a subsidiary in which merger the
Company is the continuing corporation and which does not result in any
reclassification); or

            (iv) There shall be a voluntary or involuntary dissolution;
liquidation or winding up of the Company;

then, in any one or more of said cases, the Company shall cause to be mailed to
the Payee at the earliest practicable time (and, in any event not less than 10
days before any record date or other date set for definitive action), written
notice of the date on which the books of the Company shall close or a record
shall be taken for such dividend, distribution or subscription rights or such
reorganization, reclassification, sale, consolidation, merger or dissolution,
liquidation or winding-up shall take place, as the case may be. Such notice
shall also set forth such facts as shall indicate the effect of such action (to
the extent such effect may be known at the date of such notice) on the
applicable conversion price and the kind and amount of the shares of stock and
other securities and property deliverable upon the conversion of this Note. Such
notice shall also specify the date as of which the holders of the Common Stock
of record shall participate in said dividend, distribution or subscription
rights or shall be entitled to exchange their Common Stock for securities or
other property deliverable upon such reorganization, reclassification, sale,
consolidation, merger or dissolution, liquidation or winding-up, as the case may
be.

      Nothing herein shall be construed as the consent of the holder of this
Note to any action otherwise prohibited by the terms of this Note or as a waiver
of any such prohibition.

         J. Notice of Maturity Date. The Company shall give written notice to
the Payee not less than 10 business days prior to the occurrence of an event
described in clause (ii), (iii) or (iv) of the first paragraph of this Note
which is expected to result in the Maturity Date.

                                       15

<PAGE>

      7. Amendments and Waivers.

         A. The provisions of this Note, including, but not limited to, any
decision to convert the Note, any waiver of the restrictive covenants or
adjustment provision and any change to a conversion price, may from time to time
be amended, modified or waived, if such amendment, modification or waiver is in
writing and consented to by the Company and the Holders of not less than 50% in
Principal Amount of the Notes then outstanding (the "Required Holders");
provided, however, that no such amendment, modification or waiver which would
(i) modify this Section 7A, (ii) extend the Maturity Date for more than one
year, or (iii) reduce the Principal Amount or any amounts payable hereunder or
(iv) not be uniform and non-discriminatory as to any particular Note, shall be
made without the consent of the Payee of each Note so affected.

         B. Except as provided herein, no failure or delay on the part of the
Payee in exercising any power or right under this Note shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other
power or right. No notice to or demand on the Company in any case shall entitle
it to any notice or demand in similar or other circumstances. No waiver or
approval by the Payee shall, except as may be otherwise stated in such waiver or
approval, be applicable to subsequent transactions. No waiver or approval
hereunder shall require any similar or dissimilar waiver or approval thereafter
to be granted hereunder.

         C. To the extent that the Company makes a payment or payments to the
Payee, and such payment or payments or any part thereof are subsequently for any
reason invalidated, set aside and/or required to be repaid to a trustee,
receiver or any other party under any bankruptcy law, state or federal law,
common law or equitable cause, then to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all rights
and remedies therefor, shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or setoff had not
occurred.

         D. After any waiver, amendment or supplement under this section becomes
effective, the Company shall mail to the Payee a copy thereof.

      8. Miscellaneous

         A. Registered Holder. The Company may consider and treat the person in
whose name this Note shall be registered as the absolute owner thereof for all
purposes whatsoever (whether or not this Note shall be overdue) and the Company
shall not be affected by any notice to the contrary. In case of transfer of this
Note by operation of law, the transferee agrees to notify the Company of such
transfer and of its address, and to submit appropriate evidence regarding such
transfer so that this Note may be registered in the name of the transferee. This
Note is transferable only on the books of the Company by the Holder hereof, in
person or by attorney, on the surrender hereof, duly endorsed. Communications
sent to any registered owner shall be effective as against all Holders or
transferees of the Note not registered at the time of sending the communication.

         B. Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of New York. Sections 5-1401 and 5-1402 of
the General Obligations Law of the State of New York shall apply to this Note
and the Company hereby

                                       16

<PAGE>

waives any right to stay or dismiss on the basis of forum non conveniens any
action or proceeding brought before the courts of the State of New York sitting
in New York County or of United States of America for the Southern District of
New York and hereby submits to the jurisdiction of such courts.

         C. Notices. Unless otherwise provided, all notices required or
permitted under this Note shall be in writing and shall be deemed effectively
given (i) upon personal delivery to the party to be notified, (ii) upon
confirmed delivery by Federal Express or other nationally recognized courier
service providing next-business-day delivery, or (iii) three business days after
deposit with the United States Postal Service, by registered or certified mail,
postage prepaid and addressed to the party to be notified, in each case at the
address set forth below, or at such other address as such party may designate by
written notice to the other party (provided that notice of change of address
shall be effective upon receipt by the party to whom such notice is addressed).

            If sent to Payee, notices shall be sent to the address set forth in
the Subscription Agreement.

            If sent to the Company, notices shall be sent to the following
address:

                           Comdial Corporation
                           106 Cattlemen Road
                           Sarasota, Florida 34232
                           Attention:  Paul Suijk

         D. Parties in Interest. All covenants, agreements and undertakings in
this Note binding upon the Company or the Payee shall bind and inure to the
benefit of the successors and permitted assigns of the Company and the Payee,
respectively, whether so expressed or not.

         E. Waiver of Jury Trial. THE PAYEE AND THE COMPANY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS NOTE OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND
DELIVERED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE PAYEE OR THE COMPANY.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE'S PURCHASE OF THIS NOTE.

      IN WITNESS WHEREOF, the Company has caused this Note to be signed in its
name by its duly authorized officer.

                                   COMDIAL CORPORATION

                                   By
                                     -------------------------------------------
                                   Name:   Nickolas A. Branica
                                   Title:  President and Chief Executive OfficerEXHIBIT 4.3

     THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT
THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES
ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH
TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL
BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT OR ANY SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT.

                        WARRANT TO PURCHASE COMMON STOCK

                                       OF

                               COMDIAL CORPORATION

PW-1A

     This is to Certify That, FOR VALUE RECEIVED, _______________ or assigns
("Holder"), is entitled to purchase, subject to the provisions of this Warrant,
from Comdial Corporation, a Delaware corporation (the "Company"),
________________________ (_________) fully paid, validly issued and
nonassessable shares of the common stock of the Company ("Common Stock") at a
price of $.01 per share at any time or from time to time during the period from
September 27, 2002 through September 27, 2004 (the "Exercise Period"). The
number of shares of Common Stock to be received upon the exercise of this
Warrant and the price to be paid for each share of Common Stock may be adjusted
from time to time as hereinafter set forth. The shares of Common Stock
deliverable upon such exercise, and as adjusted from time to time, are
hereinafter sometimes referred to as "Warrant Shares" and the exercise price of
a share Common Stock in effect at any time and as adjusted from time to time is
hereinafter sometimes referred to as the "Exercise Price." This Warrant,
together with warrants of like tenor, constituting in the aggregate warrants
(the "Warrants") to purchase up to a maximum of 56,000,000 shares of Common
Stock, is being issued in connection with a private placement of the Company's
securities through Commonwealth Associates, L.P., as placement agent.

     (a) EXERCISE OF WARRANT.

          (1) This Warrant may be exercised in whole or in part at any time or
from time to time during the Exercise Period; provided, however, that (i) if
such day is a day on which banking institutions in the State of New York are
authorized by law to close, then on the next succeeding day which shall not be
such a day, and (ii) in the event of any merger, consolidation or sale of
substantially all the assets of the Company as an entirety, resulting in any
distribution to the Company's stockholders, prior to termination of the Exercise
Period, the Holder shall have the right to exercise this Warrant commencing at
such time through the termination of the Exercise Period into the kind and
amount of shares of stock and other securities and property (including cash)
receivable by a holder of the number of shares of Common Stock into which this
Warrant might have been exercisable immediately prior thereto. This Warrant may
be exercised by presentation and surrender hereof to the Company at its

<PAGE>

principal office with the Purchase Form annexed hereto duly executed and
accompanied by payment of the Exercise Price for the number of Warrant Shares
specified in such form. As soon as practicable after each such exercise of this
Warrant, following the receipt of good and available funds, the Company shall
issue and deliver to the Holder a certificate or certificates for the Warrant
Shares issuable upon such exercise, registered in the name of the Holder or its
designee and bearing a restrictive legend substantially similar to the one set
forth on the front page of this Warrant. If this Warrant should be exercised in
part only, the Company shall, upon surrender of this Warrant for cancellation,
execute and deliver a new Warrant evidencing the rights of the Holder thereof to
purchase the balance of the Warrant Shares purchasable thereunder. As of the end
of business on the date of receipt by the Company of this Warrant at its office
in proper form for exercise, the Holder shall be deemed to be the holder of
record of the shares of Common Stock issuable upon such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such shares shall not then be
physically delivered to the Holder.

          (2) At any time during the Exercise Period, the Holder may, at its
option, exercise this Warrant on a cashless basis by exchanging this Warrant, in
whole or in part (a "Warrant Exchange"), into the number of Warrant Shares
determined in accordance with this Section (a)(2), by surrendering this Warrant
at the principal office of the Company or at the office of its stock transfer
agent, accompanied by a properly prepared notice stating such Holder's intent to
effect such exchange, the number of Warrant Shares to be exchanged and the date
on which the Holder requests that such Warrant Exchange occur (the "Notice of
Exchange"). The Warrant Exchange shall take place on the date specified in the
Notice of Exchange or, if later, the date the Notice of Exchange is received by
the Company (the "Exchange Date"). Certificates for the shares issuable upon
such Warrant Exchange and, if applicable, a new warrant of like tenor evidencing
the balance of the shares remaining subject to this Warrant, shall be issued as
of the Exchange Date and delivered to the Holder as soon as practicable
following the Exchange Date and, if deemed appropriate by the Company, bearing a
restrictive legend substantially similar to the one set forth on the front page
of this Warrant. In connection with any Warrant Exchange, this Warrant shall
represent the right to subscribe for and acquire the number of Warrant Shares
equal to (i) the number of Warrant Shares specified by the Holder in its Notice
of Exchange (the "Total Number") less (ii) the number of Warrant Shares equal to
the quotient obtained by dividing (A) the product of the Total Number and the
existing Exercise Price by (B) the current market value of a share of Common
Stock. Current market value shall have the meaning set forth in Section (c)
below, except that for purposes hereof, it shall mean the highest price for the
five days immediately preceding the date of the Notice of Exchange.

     (b) RESERVATION OF SHARES. The Company shall at all times reserve for
issuance and/or delivery upon exercise of the Warrants such number of shares of
Common Stock as shall be required for issuance and delivery upon exercise of the
Warrants.

     (c) FRACTIONAL SHARES. No fractional shares or scrips representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share

                                       2
<PAGE>

called for upon any exercise hereof, the Company shall pay to the Holder an
amount in cash equal to such fraction multiplied by the current market value of
a share, determined as follows:

          (1) If the Common Stock is listed on a national securities exchange or
admitted to unlisted trading privileges on such exchange or listed for trading
on the Nasdaq Stock Market, the current market value shall be the last reported
sale price of the Common Stock on such exchange or market on such trading day or
if no such sale is made on such day, the average closing bid and asked prices
for such day on such exchange or market; or

          (2) If the Common Stock is not so listed or admitted to unlisted
trading privileges, but are traded in the over-the-counter market, the current
market value shall be the mean of the average of the last reported bid and asked
prices reported by the National Quotation Bureau, Inc. for such trading day; or

          (3) If the Common Stock is not so listed or admitted to unlisted
trading privileges and bid and asked prices are not so reported, the current
market value shall be an amount, not less than book value thereof as at the end
of the most recent fiscal year of the Company ending prior to such business day,
determined in such reasonable manner as may be prescribed by the Board of
Directors of the Company.

     (d) EXCHANGE, TRANSFER, ASSIGNMENT OR LOSS OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other warrants of different denominations entitling the
holder thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder. Upon surrender of this Warrant to the Company at
its principal office or at the office of its stock transfer agent, if any, with
the Assignment Form annexed hereto duly executed by the Holder and funds
sufficient to pay any transfer tax delivered by the Holder, the Company shall,
without charge, subject to the Holder's compliance with the restrictive legend
set forth on the front page of this Warrant, execute and deliver a new Warrant
in the name of the assignee named in such instrument of assignment and this
Warrant shall promptly be cancelled. This Warrant may be divided or combined
with other warrants that carry the same rights upon presentation hereof at the
principal office of the Company or at the office of its stock transfer agent, if
any, together with a written notice specifying the denominations in which new
warrants are to be issued to the Holder and signed by the Holder hereof. The
term "Warrants" as used herein includes any warrants into which this Warrant may
be divided or exchanged. Upon receipt by the Company of evidence satisfactory to
it of the loss, theft, destruction or mutilation of this Warrant, and (in the
case of loss, theft or destruction) of reasonably satisfactory indemnification,
and upon surrender and cancellation of this Warrant, if mutilated, the Company
will execute and deliver a new Warrant of like tenor and date. Any such new
Warrant executed and delivered shall constitute an additional contractual
obligation on the part of the Company, whether or not this Warrant so lost,
stolen, destroyed, or mutilated shall be at any time enforceable by anyone.

     (e) RIGHTS OF THE HOLDER. The Holder shall not, by virtue hereof, be
entitled to any rights of a shareholder in the Company, either at law or equity,

                                       3
<PAGE>

and the rights of the Holder are limited to those expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

     (f) ADJUSTMENT PROVISIONS. The Exercise Price in effect at any time and the
number and kind of securities purchasable upon the exercise of the Warrants
shall be subject to adjustment from time to time upon the happening of certain
events as follows:

          (1) In case the Company shall hereafter (i) declare a dividend or make
a distribution on its outstanding Common Stock in shares of Common Stock, (ii)
subdivide or reclassify its outstanding Common Stock into a greater number of
shares, or (iii) combine or reclassify its outstanding Common Stock into a
smaller number of shares, the Exercise Price in effect at the time of the record
date for such dividend or distribution or of the effective date of such
subdivision, combination or reclassification shall be adjusted so that it shall
equal the price determined by multiplying the Exercise Price by a fraction, the
denominator of which shall be the number of shares of Common Stock outstanding
after giving effect to such action, and the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to such action.
Such adjustment shall be made successively whenever any event listed above shall
occur.

          (2) Whenever the Exercise Price payable upon exercise of each Warrant
is adjusted pursuant to Subsection (1), the number of Warrant Shares purchasable
upon exercise of this Warrant shall simultaneously be adjusted to the number of
Warrant Shares resulting from multiplying the number of Warrant Shares initially
issuable upon exercise of this Warrant by the Exercise Price in effect
immediately prior to such adjustment and dividing the product so obtained by the
Exercise Price, as adjusted.

          (3) In the event that at any time, as a result of an adjustment
similar to any adjustment made pursuant to Subsection (1) above, the Holder of
this Warrant thereafter shall become entitled to receive any shares of the
Company, other than Common Stock, thereafter the number of such other shares so
receivable upon exercise of this 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 Common Stock contained in Subsection (1) above.

          (4) Irrespective of any adjustments in the Exercise Price or the
number or kind of shares purchasable upon exercise of this Warrant, Warrants
theretofore issued may continue to express the same price and number and kind of
shares as are stated in the similar Warrants initially issuable pursuant to this
Warrant.

     (g) NOTICES TO WARRANT HOLDERS. So long as this Warrant shall be
outstanding, (i) if the Company shall pay any dividend or make any distribution
upon the Common Stock or (ii) if the Company shall offer to the holders of
Common Stock for subscription or purchase by them any share of any class or any
other rights or (iii) if any capital reorganization of the Company,
reclassification of the capital stock of the Company, consolidation or merger of
the Company with or into another corporation, sale, lease or transfer of all or
substantially all of the property and assets of the Company to another
corporation, or voluntary or involuntary dissolution, liquidation or winding up
of the Company shall be effected, then in any such case, the Company shall cause
to be mailed by certified mail to the Holder, at least fifteen days prior the

                                       4
<PAGE>

date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger, conveyance,
lease, dissolution, liquidation or winding up is to take place and the date, if
any is to be fixed, as of which the holders of Common Stock or other securities
shall receive cash or other property deliverable upon such reclassification,
reorganization, consolidation, merger, conveyance, dissolution, liquidation or
winding up.

     (h) RECLASSIFICATION, REORGANIZATION OR MERGER. In case of any
reclassification, capital reorganization or other change of outstanding Common
Stock of the Company, or in case of any consolidation or merger of the Company
with or into another corporation (other than a merger with a subsidiary in which
merger the Company is the continuing corporation and which does not result in
any reclassification, capital reorganization or other change of outstanding
Common Stock of the class issuable upon exercise of this Warrant) or in case of
any sale, lease or conveyance to another corporation of the property of the
Company as an entirety, the Company shall, as a condition precedent to such
transaction and to the extent reasonably deemed necessary, cause effective
provisions to be made so that the Holder shall have the right thereafter by
exercising this Warrant at any time prior to the expiration of the Warrant, to
purchase the kind and amount of shares of stock and other securities and
property receivable upon such reclassification, capital reorganization and other
change, consolidation, merger, sale or conveyance by a holder of the number of
shares of Common Stock that might have been purchased upon exercise of this
Warrant immediately prior to such reclassification, change, consolidation,
merger, sale or conveyance. Any such provision shall include provision for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Warrant. The foregoing provisions of this
Section (h) shall similarly apply to successive reclassifications, capital
reorganizations and changes of Common Stock and to successive consolidations,
mergers, sales or conveyances. In the event that in connection with any such
capital reorganization or reclassification, consolidation, merger, sale or
conveyance, additional shares of Common Stock shall be issued in exchange,
conversion, substitution or payment, in whole or in part, for a security of the
Company other than Common Stock, any such issue shall be treated as an issue of
Common Stock covered by the provisions of Subsection (1) of Section (f) hereof.

     (i) REGISTRATION UNDER THE SECURITIES ACT OF 1933. The holders of the
Warrants and the Warrant Shares or their transferees (other than a transferee
who acquires shares pursuant to Rule 144 or an effective registration statement)
shall be entitled to the registration rights set forth in the Private Placement
Subscription Agreement (the "Subscription Agreement") dated the date hereof
between the Company and the Holder. The provisions of Article V of the
Subscription Agreement are incorporated herein by reference as if fully set
forth herein.

     (j) MODIFICATION OF AGREEMENT. The provisions of this Warrant may from time
to time be amended, modified or waived, if such amendment, modification or
waiver is applicable to all of the Warrants and is in writing and consented to
by the Company and the holders of at least a majority of the outstanding
Warrants and Warrant Shares and such amendment, modification or waiver shall be

                                       5
<PAGE>

binding upon the holder of this Warrant (and any assignee thereof) regardless of
whether the holder consented to such amendment, modification or waiver; provided
that nothing shall prevent the Company and a Registered Holder from consenting
to modifications to this Warrant which affect or are applicable to such
Registered Holder only.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in its
name by its duly authorized officer.

                                    COMDIAL CORPORATION

                                    By:
                                       --------------------------------------
                                       Nickolas A. Branica, President and Chief
                                       Executive Officer

Dated: September 27, 2002

                                       6
<PAGE>

                                  PURCHASE FORM
                                  -------------

                                                     Dated
                                                           --------------------

(1) The undersigned hereby irrevocably elects to exercise the within Warrant to
the extent of purchasing ________ shares of Common Stock of Comdial Corporation
(or such number of shares of Common Stock or other securities or property to
which the undersigned is entitled in lieu thereof or in addition thereto under
the provisions of the Warrant).

(2) The undersigned elects to exercise the within Warrant on a cashless basis
pursuant to the provisions of Section (a)(2) of the Warrant by checking below:

                   _______ check if cashless exercise; or

(3) The undersigned encloses herewith a bank draft, certified check or money
order payable to the Company in payment of the exercise price determined under,
and on the terms specified in, the Warrant.

(4) The undersigned hereby irrevocably directs that the said shares be issued
and delivered as follows:

Name(s) in Full        Address(es)      Number of Shares          S.S. or IRS #

-----------------------------
Signature of Subscriber

-----------------------------
Print Name

                                       7
<PAGE>

                                 ASSIGNMENT FORM
                                 ---------------

     FOR VALUE RECEIVED, hereby sells, assigns and transfers unto

Name
     ----------------------------------
(Please typewrite or print in block letters)

Address
        -------------------------------

the right to purchase Common Stock represented by this Warrant to the extent of
_____ shares as to which such right is exercisable and does hereby irrevocably
constitute and appoint ____________ Attorney, to transfer the same on the
books of the Company with full power of substitution in the premises.

Date
     ---------------------------
Signature
           ---------------------

                                       8

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