Document:

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                                                                    Exhibit 10.9

                              QUANTUM CORPORATION

                         EMPLOYEE STOCK PURCHASE PLAN

                           (As Amended May 29, 2001)

     The following constitute the provisions of the Employee Stock Purchase Plan
(herein called the "Plan") of Quantum Corporation (herein called the "Company").

     1.   Purpose. The purpose of the Plan is to provide employees of the
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Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan shall, accordingly, be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

     2.   Definitions.
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          (a)  "Board" shall mean the Board of Directors of the Company.
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          (b)  "Code" shall mean the Internal Revenue Code of 1986, as amended.
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          (c)  "Common Stock" shall mean the common stock of the Company.
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          (d)  "Company" shall mean Quantum Corporation, a Delaware corporation.
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          (e)  "Compensation" shall mean all regular straight time earnings,
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payments for overtime, shift premium, incentive compensation, incentive
payments, bonuses and commissions (except to the extent that the exclusion of
any such items for all participants is specifically directed by the Board or its
committee).

          (f)  "Continuous Status as an Employee" shall mean the absence of any
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interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of: (i) a leave of
absence agreed to in writing by the Company, provided that such leave is for a
period of not more than 90 days or re-employment upon the expiration of such
leave is guaranteed by contract or statute; or (ii) notification by the Company
of termination under a reduction-in-force. Termination in the case of a
reduction-in-force shall be considered to have occurred at the end of the
employee's continuation period.

          (g)  "Designated Subsidiaries" shall mean the Subsidiaries which have
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been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

          (h)  "Employee" means any person, including an officer, who is
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customarily employed for at least twenty (20) hours per week by the Company or
one of its Designated Subsidiaries.

          (i)  "Enrollment Date" shall mean the first day of each Offering
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Period.
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          (j)  "Exercise Date" shall mean the date one day prior to the date six
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months, twelve months, eighteen months, or twenty-four months after the
Enrollment Date of an Offering Period.

          (k)  "Exercise Period" shall mean a period commencing on an Enrollment
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Date or on the day after an Exercise Date and terminating one day prior to the
date six (6) months later.

          (l)  "Fair Market Value" means, as of any date, the closing sales
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price of the Common Stock (or the closing bid, if no sales were reported) as
quoted on the stock exchange with the greatest volume of trading in Common Stock
on the last market trading day prior to the date of grant, as reported in The
Wall Street Journal or such other source as the Administrator deems reliable.

          (m)  "Offering Period" shall mean a period of twenty-four (24) months
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consisting of four six-month Exercise Periods, or as otherwise set forth in
Section 4 hereof.

          (n)  "Plan" shall mean this Employee Stock Purchase Plan.
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          (o)  "Subsidiary" shall mean a corporation, domestic or foreign, of
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which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

     3.   Eligibility.
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          (a)  Any Employee (as defined in Section 2) who shall be employed by
the Company on the date his or her participation in the Plan is effective shall
be eligible to participate in the Plan, subject to limitations imposed by
Section 423(b) of the Code.

          (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) if, immediately, after
the grant, such Employee (or any other person whose stock would be attributed to
such Employee pursuant to Section 425(d) of the Code) would own shares and/or
hold outstanding options to purchase stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company or of any subsidiary of the Company, or (ii) which permits his rights to
purchase shares under all employee stock plans of the Company and its
subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of the fair market value of the shares (determined at the time such
option is granted) for each calendar year in which such stock option is
outstanding at any time.

     4.   Offering Dates. The Plan shall be implemented by consecutive Offering
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Periods with a new Offering Period commencing on or about January 25 and July 25
of each year, and shall continue thereafter until terminated in accordance with
Section 20 or 24 hereof. The Board of Directors of the Company shall have the
power to change the duration of Offering Periods and Exercise Periods with
respect to future offerings without stockholder approval if such change is
announced at least fifteen (15) days prior to the scheduled beginning of the
first Offering Period to be affected. In no event shall the duration of an
Offering Period exceed twenty-seven (27) months. Notwithstanding the foregoing,
no offers hereunder shall be made until compliance with all applicable
securities law has been obtained.

     5.   Participation.
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          (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deduction on the form
provided by the Company and filing it with the Company's payroll office prior to
the applicable Enrollment Date, unless a later time for filing the subscription
agreement is set by the Board for all eligible Employees with respect to a given
Offering Period.

          (b)  Payroll deductions for a participant shall commence on the first
payroll following the Enrollment Date and shall end on the last payroll date in
the Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 11.

     6.   Payroll Deductions.
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          (a)  At the time a participant files his subscription agreement, he
shall elect to have payroll deductions made on each payday during the Offering
Period at a rate not exceeding ten percent (10%) of the Compensation which he
received on such payday, and the aggregate of such payroll deductions pursuant
to the Plan during the Offering Period shall not exceed ten percent (10%) of his
aggregate Compensation during said Offering Period.

          (b)  All payroll deductions made for a participant shall be credited
to his account under the Plan. A participant may not make any additional
payments into such account.

          (c)  A participant may discontinue participation in the Plan as
provided in Section 11, or may change the rate of payroll deductions by giving
written notice to the Company authorizing a change in the participant's payroll
deduction rate. The change rate shall be effective (i) in the case of a decrease
in rate, with the first payroll period following the Company's receipt of the
notice of rate change, and (ii) in the case of an increase in rate at the
beginning of the next Exercise Period following the Company's receipt of the
notice of rate change.

     7.   Grant of Option.
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          (a)  On the Enrollment Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Exercise Date during such Offering Period up to a number of
shares of the Company's Common Stock determined by dividing such Employee's
payroll deductions accumulated during the Exercise Period ending on such
Exercise Date by the lower of (i) eighty-five percent (85%) of the Fair Market
Value of a share of the Company's Common Stock on the Enrollment Date, or (ii)
eighty-five (85%) of the Fair Market Value of a share of the Company's Common
Stock on the Exercise Date; provided that in no event shall an Employee be
permitted to purchase during each 24-month Offering Period more than a number of
shares determined by dividing $50,000 by the Fair Market Value of a share of the
Company's Common Stock on the Enrollment Date, and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 13
hereof. The option shall be automatically exercised on the Exercise Dates during
the Offering Period, unless the participant has withdrawn pursuant to Section
11, and shall expire on the last day of the Offering Period.

          (b)  The option price per share of the shares offered in a given
offering Period shall be the lower of: (i) 85% of the Fair Market Value of a
share of the Common Stock of the Company on the Enrollment Date; or (ii) 85% of
the Fair Market Value of a share of the Common Stock of the Company on the
Exercise Date.

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          (c)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) herein, a participant's
payroll deductions may be decreased to 0% at such time during any Exercise
Period which is scheduled to end during the current calendar year that the
aggregate of all payroll deductions accumulated with respect to such Exercise
Period and any other Exercise Period ending within the same calendar year equal
$21,250. Payroll deductions shall recommence at the rate provided in such
participant's subscription scheduled to end in the following calendar year,
unless terminated by the participant as provided in Section 11.

     8.   Exercise of Option. The participant's option for the purchase of
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shares will be exercised automatically on each Exercise Date of each Offering
Period and the maximum number of full shares subject to option will be purchased
for such participant at the applicable option price with the accumulated payroll
deductions in his or her account unless prior to such Exercise Date the
participant has withdrawn from the Offering Period as provided in Section 11.
During a participant's lifetime, a participant's option to purchase shares
hereunder is exercisable only by the participant. No fractional shares shall be
purchased; any payroll deductions accumulated in a participant's account which
are not sufficient to purchase a full share shall be retained in the
participant's account for the subsequent Exercise Period or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10
hereof. Any other monies left over in a participant's account after the Exercise
Date shall be returned to the participant.

     9.   Delivery. As promptly as practicable after each Exercise Date, the
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Company shall arrange the delivery to each participant, as appropriate, the
shares of Common Stock purchased upon exercise of the option.

     10.  Automatic Transfer to Low Price Offering Period. If the Fair Market
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Value of the Company's Common Stock on the first day of an Offering Period then
in progress exceeds the Fair Market Value of the Company's Common Stock on any
Exercise Date within such Offering Period in progress, then each participant in
such Offering Period shall be deemed to have withdrawn from the Offering Period
in progress immediately following the exercise of his or her option on such
Exercise Date and to have enrolled in a subsequent Offering Period as of such
Exercise Date.

     11.  Withdrawal; Termination of Employment.
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          (a)  A participant may withdraw all but not less than all the payroll
deductions credited to his account under the Plan at any time prior to the end
of the Offering Period by giving written notice to the Company. All of the
participant's payroll deductions credited to his account will be paid to him
promptly after receipt of his notice of withdrawal and his option for the
current Offering Period will be automatically terminated, and no further payroll
deductions for the purchase of shares will be made during the Offering Period.
If a participant withdraws from an Offering Period, payroll deductions will not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

          (b)  Upon termination of the participant's employment prior to the end
of the Offering Period for any reason, including retirement or death, the
payroll deductions credited to his account will be returned to him or, in the
case of his death, to the person or persons entitled thereto under Section 15,
and his option will be automatically terminated.

          (c)  In the event a participant fails to remain in continuous Status
as an Employee of the Company for at least twenty (20) hours per week during the
Offering Period in which the employee is a participant, the participant will be
deemed to have elected to

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withdraw from the Plan and the payroll deductions credited to his account will
be returned to such participant and such participant's option terminated;
provided that

               (i)   if an Employee shall take a leave of absence approved by
the Company in accordance with Section 2(f) of this Plan during an Offering
Period in which the Employee is a participant, the participant will be deemed to
have his or her payroll deductions reduced to 0% during such leave of absence,
but he shall continue to be a participant in the applicable Offering Period and
upon his return to full-time employment with the Company shall be eligible to
participate fully in any remaining portion of the applicable Offering Period. If
the participant fails to return to full-time employment with the Company at the
end of such authorized leave of absence, or if his employment is otherwise
terminated earlier, he shall be deemed to have withdrawn from participation in
the Plan; and

               (ii)  if an Employee begins working part-time (fewer than twenty
(20) hours per week) with the intent of returning to full-time employment before
the end of the Offering Period in which he is currently participating, the
participant will be deemed to have withdrawn from the applicable Exercise
Period, the payroll deductions credited to his account will be returned to him,
and the rate of his payroll deductions shall be reduced to 0% during such part-
time employment, but he shall continue to be a participant in the applicable
Offering Period, and upon his return to full-time employment with the Company he
shall be eligible to participate fully in any remaining portion of the
applicable Offering Period. If the participant fails to return to full-time
employment with the Company before the end of the applicable Offering Period, or
if his employment with the Company is otherwise terminated earlier, he shall be
deemed to have withdrawn from participation in the Plan.

          (d)  A participant's withdrawal from an Offering Period will not have
any effect upon his eligibility to participate in any similar plan which may
hereafter be adopted by the Company or in succeeding Offering Periods.

     12.  Interest. No interest shall accrue on the payroll deductions of a
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participant in the Plan.

     13.  Stock.
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          (a)  The maximum number of shares of the Company's Common Stock which
shall be made available for sale under the Plan shall be made available for sale
under the Plan shall be 6,514,795, plus an increase to be added on April 1 of
each year beginning on April 1, 2002 and ending on and including April 1, 2005
equal to the lesser of (i) 5,000,000 shares, (ii) 2% of the outstanding shares
on such date or (iii) a lesser amount determined by the Board, subject to
adjustment upon changes in capitalization of the Company as provided in Section
19. If the total number of shares which would otherwise be subject to options
granted pursuant to Section 7(a) hereof at the beginning of an Offering Period
exceeds the number of shares then available under the Plan (after deduction of
all shares for which options have been exercised or are then outstanding), the
Company shall make a pro rata allocation of the shares remaining available for
option grant in as uniform a manner as shall be practicable and as it shall
determine to be equitable. In such event, the Company shall give written notice
of such reduction of the number of shares subject to the option to each Employee
affected thereby and shall similarly reduce the rate of payroll deductions, if
necessary.

          (b)  The participant will have no interest or voting right in shares
covered by his option until such option has been exercised.

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          (c)  Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or in the name of the participant and
his spouse, or as otherwise directed by the participant.

     14.  Administration. The Plan shall be administered by the Board of
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Directors of the Company or a committee appointed by the Board.  The
administration, interpretation or application of the Plan by the Board or its
committee shall be final, conclusive and binding upon all participants.  Members
of the Board who are eligible Employees are permitted to participate in the
Plan, provided that:

          (a)  Members of the Board who are eligible to participate in the Plan
may not vote on any matter affecting the administration of the Plan or the grant
of any option pursuant to the Plan.

          (b)  If a committee is established by the Board to administer the
Plan, no member of the Board who is eligible to participate in the Plan may be a
member of the committee.

     15.  Designation of Beneficiary.
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          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to the end of the
Offering Period but prior to delivery to him of such shares and cash.  In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under the Plan in the event
of such participant's death prior to the end of the Offering Period.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion , may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

     16.  Transferability. Neither payroll deductions credited to a
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participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds in accordance with Section 11.

     17.  Use of Funds. All payroll deductions received or held by the Company
          ------------
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

     18.  Reports. Individual accounts will be maintained for each participant
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in the Plan. Statements of account will be given to participating Employees at
least annually promptly following the Exercise Date, which statements will set
forth the amounts of payroll deductions, the per share purchase price, the
number of shares purchased and the remaining cash balance, if any.

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     19.  Adjustments Upon Changes in Capitalization. Subject to any required
          ------------------------------------------
action by the stockholders of the Company, the number of shares of Common Stock
covered by each option under the Plan which has not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but have not yet been placed under option (collectively, the
"Reserves"), as well as the price per share of Common Stock covered by each
option under the Plan which has not yet been exercised, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split or the payment of a stock dividend (but only
on the Common Stock) or any other increase or decrease in the number of shares
of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no
issue by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to the number or price of shares of Common
Stock subject to an Option.

     The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the price per share
of Common Stock covered by each outstanding option, in the event that the
Company effects one or more reorganizations, recapitalizations, rights offerings
or other increases or reductions of shares of its outstanding Common Stock, and
in the event of the Company being consolidated with or merged into any other
corporation.

     20.  Amendment or Termination.
          ------------------------

          (a)  The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in Section 19 hereof, no
such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise Date
if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its shareholders. Except as provided
in Section 19 and this Section 20 hereof, no amendment may make any change in
any option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any successor rule or provision or any other applicable law, regulation or stock
exchange rule), the Company shall obtain shareholder approval in such a manner
and to such a degree as required.

          (b)  Without shareholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

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<PAGE>

          (c)  Notwithstanding anything to the contrary in this Plan, in the
event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion
and, to the extent necessary or desirable, modify or amend the Plan to reduce or
eliminate such accounting consequence including, but not limited to:

               (i)   altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

               (ii)  shortening any Offering Period so that Offering Period ends
on a new Exercise Date, including an Offering Period underway at the time of the
Board action; and

               (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

     21.  Notices. All notices or other communications by a participant to the
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Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     22.  Stockholder Approval. If required by Section 20, any amendment to the
          --------------------
Plan shall be subject to approval by the stockholders of the Company within
twelve months before or after the date such amendment is adopted.  If such
stockholder approval is obtained at a duly held stockholders' meeting, it may be
obtained by the affirmative vote of the holders of a majority of the outstanding
shares of the Company present or represented and entitled to vote thereon, which
approval shall be:

          (a) (1)   solicited substantially in accordance with Section 14(a) of
the Securities Act of 1934 as amended (the "Act") and the rules and regulations
promulgated thereunder, or (2) solicited after the Company has furnished in
writing to the holders entitled to vote substantially the same information
concerning the Plan as that which would be required by the rules and regulations
in effect under Section 14(a) of the Act at the time such information is
furnished; and

          (b)  obtained at or prior to the first annual meeting of stockholders
held subsequent to the later of (i) the first registration of Common Stock under
Section 12 of the Act, or (ii) the acquisition of an equity security for which
exemption is claimed.

               In the case of approval by written consent, it must be obtained
in accordance with applicable state law.

     23.  Conditions Upon Issuance of Shares. Shares shall not be issued with
          ----------------------------------
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

          As a condition to the exercise of an option, the Company may require
the person exercising such option to represent and warrant at the time of any
such exercise that

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<PAGE>

the shares are being purchased only for investment and without any present
intention to sell or distribute such shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
applicable provisions of law.

     24.  Term of Plan. The Plan shall continue in effect for a term of twenty
          ------------
(20) years from the earlier to have occured of its adoption by the Board of
Directors or its appoval by the stockholders of the Company as described in
Section 22, unless sooner terminated under Section 20.

                                       9<PAGE>

                                                                   Exhibit 10.13

        This Second Supplemental Trust Indenture, dated as of August 4, 1999
(the "Supplemental Indenture"), between Quantum Corporation, a corporation duly
organized and existing under the laws of the State of Delaware (the "Company"),
and LaSalle National Bank, a national banking association organized and existing
under the laws of the United States of America, as Trustee (the "Trustee"),
supplementing that certain Indenture, dated as of August 1, 1997, between the
Company and the Trustee as supplemented by the Supplemental Indenture dated as
of August 1, 1997 (the "First Supplemental Indenture, and such Indenture, as
supplemented by the First Supplemental Indenture and this Supplemental
Indenture, being referred to herein as the "Indenture").

                                   Recitals

        A.   The Company has duly authorized the execution and delivery of the
Indenture heretofore executed and delivered to provide for the issuance from
time to time of its unsecured debentures, notes, or other evidences of
indebtedness to be issued in one or more series as provided for in the Indenture
heretofore executed and delivered.

        B.   The Company issued Securities denominated "7% Convertible
Subordinated Notes due 2004" (the "Notes") pursuant to the terms of the First
Supplemental Indenture.

        C.   Effective August 4, 1999, the Company entered into a restructuring
(the "Restructuring") of common stock, whereby the common stock of the Company
was exchanged for two classes of tracking stock called DLT & Storage Systems
group stock and Hard Disk Drive group stock.  In connection with the
Restructuring, each share of common stock was changed into one share of DLT &
Storage Systems group stock and 0.5 shares of Hard Disk Drive group stock.

        D.   Pursuant to Section 14.09 of the Indenture, the Company and the
Trustee are required to execute this Supplemental Indenture to make the Notes
convertible into both classes of tracking stock as further set forth herein.

                                  ARTICLE ONE
                                  AMENDMENTS

Section 101  Amendment to Section 101 of Indenture.  Section 101 of the
Indenture is hereby amended by adding the following definitions in appropriate
alphabetical order:

             "DSS Common Stock" shall mean the Company's Common Stock called DLT
        & Storage Systems group stock or shares of any class or classes
        resulting from any reclassification or reclassifications thereof and
        which have no preference in respect of dividends or of amounts payable
        in the event of any voluntary or involuntary liquidation, dissolution or
        winding-up of the Company and which are not subject to redemption by the
        Company; provided that if at any time there shall be more than one such
                 --------
        resulting class, the shares of each such class then so issuable shall be
        substantially in the proportion which the total number of shares of such
        class resulting from all such reclassifications bears to the total
        number of shares of all such classes resulting from all such
        reclassifications.
<PAGE>

             "HDD Common Stock" shall mean the Company's Common Stock called
     Hard Disk Drive group stock or shares of any class or classes resulting
     from any reclassification or reclassifications thereof and which have no
     preference in respect of dividends or of amounts payable in the event of
     any voluntary or involuntary liquidation, dissolution or winding-up of the
     Company and which are not subject to redemption by the Company; provided
                                                                     --------
     that if at any time there shall be more than one such resulting class, the
     shares of each such class then so issuable shall be substantially in the
     proportion which the total number of shares of such class resulting from
     all such reclassifications bears to the total number of shares of all such
     classes resulting from all such reclassifications.

Section 102  Amendments to Article Fourteen of Indenture.

     (a)     Each of Sections 1404, 1405, 1406 and 1407 of the Indenture is
hereby amended by replacing the phrase "Common Stock" with the phrase "DSS
Common Stock or HDD Common Stock" in each place where such phrase appears.

     (b)     Section 1409 of the Indenture is hereby amended by replacing it in
its entirety with the following:

     If any of the following events occur, namely (i) any reclassification or
     change of the outstanding shares of DSS Common Stock or HDD Common Stock
     (other than a subdivision or combination of DSS Common Stock or HDD Common
     Stock, as the case may be, to which Section 1404 applies), (ii) any
     consolidation, merger or combination of the Company with another
     corporation as a result of which holders of DSS Common Stock or HDD Common
     Stock shall be entitled to receive stock, securities or other property or
     assets (including cash) with respect to or in exchange for such DSS Common
     Stock or HDD Common Stock, as the case may be, or (iii) any sale or
     conveyance of the properties and assets of the Company as, or substantially
     as, an entirety to any other corporation as a result of which holders of
     DSS Common Stock or HDD Common Stock shall be entitled to receive stock,
     securities or other property or assets (including cash) with respect to or
     in exchange for such DSS Common Stock or HDD Common Stock, as the case may
     be, then the Company or the successor or purchasing corporation, as the
     case may be, shall execute with the Trustee a supplemental indenture (which
     shall comply with the Trust Indenture Act as in force at the date of
     execution of such supplemental indenture) providing that the Holder of each
     Security of a series then Outstanding that is convertible into DSS Common
     Stock or HDD Common Stock of the Company shall have the right thereafter to
     convert such Security into the kind and amount of shares of stock and other
     securities or property or assets (including cash) receivable upon such
     reclassification, change, consolidation, merger, combination, sale or
     conveyance by a holder of a number of shares of DSS Common Stock or HDD
     Common Stock  issuable upon conversion of such Securities (assuming, for
     such purposes, a sufficient number of authorized shares of DSS Common Stock
     or HDD Common Stock, as the case may be, available to convert all such
     Securities) immediately prior to such reclassification, change,
     consolidation, merger, combination, sale or conveyance assuming such holder
     of DSS Common Stock or HDD Common Stock, as the case may be, did not
     exercise his rights of election, if any, as to the kind or amount of
     securities, cash or other property receivable upon such consolidation,
     merger, statutory exchange, sale or conveyance (provided that, if

                                      -2-
<PAGE>

     the kind or amount of securities, cash or other property receivable upon
     such consolidation, merger, statutory exchange, sale or conveyance is not
     the same for each share of DSS Common Stock or HDD Common Stock, as the
     case may be, in respect of which such rights of election shall not have
     been exercised ("nonelecting share")), then for the purposes of this
     Section 1409 the kind and amount of securities, cash or other property
     receivable upon such consolidation, merger, statutory exchange, sale or
     conveyance for each non-electing share shall be deemed to be the kind and
     amount so receivable per share by a plurality of the non-electing shares.

             Such supplemental indenture shall provide for adjustments which,
     for events subsequent to the effective date of such supplemental indenture,
     shall be as nearly equivalent as may be practicable to the adjustments
     provided for in this Article or in accordance with the terms of the
     supplemental indenture or Board Resolutions setting forth the terms of such
     adjustments. The above provisions of this Section 1409 shall similarly
     apply to successive consolidations, mergers, conveyances, sales, transfers
     or leases. Notice of the execution of such a supplemental indenture shall
     be given by the Company to the Holder of each Security of a series that is
     convertible into DSS Common Stock or HDD Common Stock of the Company as
     provided in Section 106 promptly upon such execution.

             Neither the Trustee nor any conversion agent, if any, shall be
     under any responsibility to determine the correctness of any provisions
     contained in any such supplemental indenture relating either to the kind or
     amount of shares of stock or other securities or property or cash
     receivable by Holders of Securities of a series convertible into DSS Common
     Stock and HDD Common Stock of the Company upon the conversion of their
     Securities after any such consolidation, merger, conveyance, transfer, sale
     or lease or to any such adjustment, but may accept as conclusive evidence
     of the correctness of any such provisions, and shall be protected in
     relying upon, an Opinion of Counsel with respect thereto, which the Company
     shall cause to be furnished to the Trustee upon request.

Section 103  Amendments to Section 201 of First Supplemental Indenture.

     Section 201 of the Supplemental Indenture is hereby amended by adding the
following definitions in the appropriate alphabetized order:

             "DSS Conversion Price" has the meaning specified in Section 501 of
     this Supplemental Indenture.

             "HDD Conversion Price" shall have the meaning specified in Section
     501 of this Supplemental Indenture.

Section 104  Amendment to Section 401 of First Supplemental Indenture.

     Section 401 of the First Supplemental Indenture is hereby amended by
replacing the proviso beginning in the fourth line of the first paragraph of
Section 401 with the following:

     provided, however, that the Notes will not be redeemable following August
     --------  -------
     1, 1999, and before August 1, 2001, unless the fair market value of the DSS
     Common Stock

                                      -3-
<PAGE>

     and HDD Common Stock issuable upon the conversion of $1,000 of principal
     amount of Notes, based on the Closing Prices for at least 20 Trading Days
     within a period of 30 consecutive Trading Days ending within five Trading
     Days prior to the notice of redemption, exceeds $1,250 (using the same
     Trading Days for determining the Closing Prices of both the DSS Common
     Stock and the HDD Common Stock).

Section 105 Amendment to Article Five of First Supplemental Indenture.

     Article Five of the First Supplemental Indenture is hereby replaced in its
entirety with the following:

     Section 501  Conversion Right

             Subject to and upon compliance with the provisions of this Article,
     each Holder shall have the right to convert any $1000 of principal of Notes
     held by such holder into the number of DSS Common Stock obtained by
     dividing $666.67 by the DSS Conversion Price and into the number of HDD
     Common Stock obtained by dividing $333.33 by the HDD Conversion Price. Such
     conversion right shall commence on August 1, 1997 and expire at the close
     of business on August 1, 2004, subject, in the case of the conversion of
     any Global Security, to any applicable book-entry procedures of the
     Depositary therefor. In case a Note is called for redemption at the
     election of the Company, such conversion right in respect of the Note shall
     expire at the close of business on the Business Day next preceding the
     Redemption Date. A Note in respect of which a Holder is exercising its
     option to require redemption upon a Fundamental Change may be converted
     only if such Holder withdraws its election to exercise its option in
     accordance with Article Six of this Supplemental Indenture.

             The initial DSS Conversion Price shall be $30.883 and the initial
     HDD Conversion Price shall be $30.883, and each shall be adjusted in
     certain instances as provided in this Article Five.

     Section 502  Adjustment of DSS Conversion Price.

             The DSS Conversion Price shall be subject to adjustment from time
     to time as follows:

                  (a)  In case the Company shall hereafter pay a dividend or
     make a distribution to all holders of the outstanding DSS Common Stock in
     shares of DSS Common Stock, the DSS Conversion Price in effect at the
     opening of business on the date following the date fixed for the
     determination of stockholders entitled to receive such dividend or other
     distribution shall be reduced by multiplying such DSS Conversion Price by a
     fraction of which the numerator shall be the number of shares of DSS Common
     Stock outstanding at the close of business on the date fixed for such
     determination and the denominator shall be the sum of such number of shares
     and the total number of shares constituting such dividend or other
     distribution, such reduction

                                      -4-
<PAGE>

     to become effective immediately after the opening of business on the day
     following the date fixed for such determination. The Company will not pay
     any dividend or make any distribution on shares of DSS Common Stock held in
     the treasury of the Company. The Company will not pay any dividend or make
     any distribution on shares of DSS Common Stock held in the treasury of the
     Company. If any dividend or distribution of the type described in this
     Section 502(a) is declared but not so paid or made, the DSS Conversion
     Price shall again be adjusted to the DSS Conversion Price which would then
     be in effect if such dividend or distribution had not been declared.

               (b)  In case the Company shall issue rights or warrants to all
     holders of its outstanding shares of DSS Common Stock entitling them (for a
     period expiring within 45 days after the date fixed for determination of
     stockholders entitled to receive such rights or warrants) to subscribe for
     or purchase shares of DSS Common Stock at a price per share less than the
     Current Market Price (as defined below) on the date fixed for determination
     of stockholders entitled to receive such rights or warrants, the DSS
     Conversion Price shall be adjusted so that the same shall equal the price
     determined by multiplying the DSS Conversion Price in effect immediately
     prior to the date fixed for determination of stockholders entitled to
     receive such rights or warrants by a fraction of which the numerator shall
     be the number of shares of DSS Common Stock outstanding at the close of
     business on the date fixed for determination of stockholders entitled to
     receive such rights and warrants plus the number of shares which the
     aggregate offering price of the total number of shares so offered would
     purchase at such Current Market Price, and of which the denominator shall
     be the number of shares of DSS Common Stock outstanding on the date fixed
     for determination of stockholders entitled to receive such rights and
     warrants plus the total number of additional shares of DSS Common Stock
     offered for subscription or purchase. Such adjustment shall be successively
     made whenever any such rights and warrants are issued, and shall become
     effective immediately after the opening of business on the day following
     the date fixed for determination of stockholders entitled to receive such
     rights or warrants. To the extent that shares of DSS Common Stock are not
     delivered after the expiration of such rights or warrants, the DSS
     Conversion Price shall be readjusted to the DSS Conversion Price which
     would then be in effect had the adjustments made upon the issuance of such
     rights or warrants been made on the basis of delivery of only the number of
     shares of DSS Common Stock actually delivered. In the event that such
     rights or warrants are not so issued, the DSS Conversion Price shall again
     be adjusted to be the DSS Conversion Price which would then be in effect if
     such date fixed for the determination of stockholders entitled to receive
     such rights or warrants had not been fixed. In determining whether any
     rights or warrants entitle the holders to subscribe for or purchase shares
     of DSS Common Stock at less than such Current Market Price, and in
     determining the aggregate offering price of such shares of DSS Common
     Stock, there shall be taken into account any consideration received by the
     Company for such rights or warrants, the value of such consideration, if
     other than cash, to be determined by the Board of Directors.

                                      -5-
<PAGE>

          (c) In case outstanding shares of DSS Common Stock shall be subdivided
into a greater number of shares of DSS Common Stock, the DSS Conversion Price in
effect at the opening of business on the day following the day upon which such
subdivision becomes effective shall be proportionately reduced, and conversely,
in case outstanding shares of DSS Common Stock shall be combined into a smaller
number of shares of DSS Common Stock, the DSS Conversion Price in effect at the
opening of business on the day following the day upon which such combination
becomes effective shall be proportionately increased, such reduction or
increase, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or
combination becomes effective.

          (d) In case the Company shall, by dividend or otherwise, distribute to
all holders of its DSS Common Stock shares of any class of capital stock of the
Company (other than any dividends or distributions to which Section 502(a)
applies) or evidences of its indebtedness or assets (including securities, but
excluding any rights or warrants referred to in Section 502(b), and excluding
any dividend or distribution (x) paid exclusively in cash or (y) referred to in
Section 502(a) (any of the foregoing hereinafter in this Section 502(d) called
the "DSS Distribution Securities")), then, in each such case (unless the Company
elects to reserve such DSS Distribution Securities for distribution to the
Holders upon the conversion of the Notes so that any such Holder converting
Notes will receive upon such conversion, in addition to the shares of DSS Common
Stock to which such Holder is entitled, the amount and kind of such DSS
Distribution Securities which such Holder would have received if such Holder had
converted its Notes immediately prior to the Distribution Record Date (as
defined in Section 504(c) for such distribution of the DSS Distribution
Securities)), the DSS Conversion Price shall be reduced so that the same shall
be equal to the price determined by multiplying the DSS Conversion Price in
effect on the Distribution Record Date with respect to such distribution by a
fraction of which the numerator shall be the Current Market Price per share of
the DSS Common Stock on such Distribution Record Date less the fair market value
(as determined by the Board of Directors, whose determination shall be
conclusive, and described in a resolution of the Board of Directors) on the
Distribution Record Date of the portion of the Securities so distributed
applicable to one share of DSS Common Stock and the denominator shall be the
Current Market Price per share of the DSS Common Stock, such reduction to become
effective immediately prior to the opening of business on the day following such
Distribution Record Date; provided, however, that in the event the then fair
                          --------  -------
market value (as so determined) of the portion of the DSS Distribution
Securities so distributed applicable to one share of DSS Common Stock is equal
to or greater than the Current Market Price of the DSS Common Stock on the
Distribution Record Date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive upon
conversion the amount of DSS Distribution Securities such Holder would have
received had such Holder converted each Note on the Distribution Record Date.
In the event that such dividend or distribution is not so paid or made, the DSS
Conversion Price shall again be adjusted to be the DSS Conversion Price which

                                      -6-
<PAGE>

would then be in effect if such dividend or distribution had not been declared.
If the Board of Directors determines the fair market value of any distribution
for purposes of this Section 502(d) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price of
the DSS Common Stock.

          Each share of DSS Common Stock upon conversion of Notes shall be
entitled to receive the appropriate number of Rights, if any, and the
certificates representing the DSS Common Stock issued upon such conversion shall
bear such legends, if any, in each case as provided by and subject to the terms
of the Rights Agreement as in effect at the time of such conversion.  If the
Rights are separated from the DSS Common Stock in accordance with the provisions
of the Rights Agreement such that the Holders would thereafter not be entitled
to receive any such Rights in respect to the DSS Common Stock, issuable upon
conversion of such Notes, the DSS Conversion Price will be adjusted as provided
in this Section 502(d) on the separation date;  provided that if such Rights
                                                --------
expire, terminate or are redeemed by the Company, the DSS Conversion Price shall
again be adjusted to be the DSS Conversion Price which would then be in effect
if such separation had not occurred.  In lieu of any such adjustment, the
Company may amend the Rights Agreement to provide that upon conversion of the
Notes the Holders will receive, in addition to the DSS Common Stock issuable
upon such conversion, the Rights which would have attached to such shares of DSS
Common Stock if the Rights had not become separated from the DSS Common Stock
pursuant to the provisions of the Rights Agreement.

          Rights or warrants distributed by the Company to all holders of DSS
Common Stock entitling the holders thereof to subscribe for or purchase shares
of the Company's capital stock (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a specified
event or events ("DSS Trigger Event"): (i) are deemed to be transferred with
such shares of DSS Common Stock; (ii) are not exercisable; and (iii) are also
issued in respect of future issuances of DSS Common Stock, shall be deemed not
to have been distributed for purposes of this Section 502 (and no adjustment to
the DSS Conversion Price under this Section 502 will be required) until the
occurrence of the earliest DSS Trigger Event, whereupon such rights and warrants
shall be deemed to have been distributed and an appropriate adjustment (if any
is required) to the DSS Conversion Price shall be made under this Section
502(d).  If any such right or warrant, including any such existing rights or
warrants distributed prior to the date of this Supplemental Indenture, are
subject to events, upon the occurrence of which such rights or warrants become
exercisable to purchase different securities, evidences of indebtedness or other
assets, then the date of the occurrence of any and each such event shall be
deemed to be the date of distribution and record date with respect to new rights
or warrants with such rights (and a termination or expiration of the existing
rights or warrants without exercise by any of the holders thereof).  In
addition, in the event of any distribution (or deemed distribution) of rights or
warrants, or any DSS Trigger Event or other event (of the type described in the
preceding sentence) with respect thereto that was counted for

                                      -7-
<PAGE>

purposes of calculating a distribution amount for which an adjustment to the DSS
Conversion Price under this Section 502 was made, (1) in the case of any such
rights or warrants which shall all have been redeemed or repurchased without
exercise by any holders thereof, the DSS Conversion Price shall be readjusted
upon such final redemption or repurchase to give effect to such distribution or
DSS Trigger Event, as the case may be, as though it were a cash distribution,
equal to the per share redemption or repurchase price received by a holder or
holders of DSS Common Stock with respect to such rights or warrants (assuming
such holder had retained such rights or warrants), made to all holders of DSS
Common Stock as of the date of such redemption or repurchase, and (2) in the
case of such rights or warrants which shall have expired or been terminated
without exercise by any holders thereof, the DSS Conversion Price shall be
readjusted as if such rights and warrants had not been issued.

     For purposes of this Section 502(d) and Sections 502(a) and (b), any
dividend or distribution to which this Section 502(d) is applicable that also
includes shares of DSS Common Stock, or rights or warrants to subscribe for or
purchase shares of DSS Common Stock (or both), shall be deemed instead to be (1)
a dividend or distribution of the evidences of indebtedness, assets or shares of
capital stock other than such shares of DSS Common Stock or rights or warrants
(and any DSS Conversion Price reduction required by this Section 502(d) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of DSS Common Stock or
such rights or warrants (and any further DSS Conversion Price reduction required
by Sections 502(a) and (b) with respect to such dividend or distribution shall
then be made), except (A) the Distribution Record Date of such dividend or
distribution shall be substituted as "the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution" and "the
date fixed for such determination" within the meaning of Sections 502(a) and (b)
and (B) any shares of DSS Common Stock included in such dividend or distribution
shall not be deemed "outstanding at the close of business on the date fixed for
such determination" within the meaning of Section 502(a).

          (e) In case the Company shall, by dividend or otherwise, distribute to
all holders of its DSS Common Stock cash (excluding (x) any quarterly cash
dividend on the DSS Common Stock to the extent the aggregate cash dividend per
share of DSS Common Stock in any fiscal quarter does not exceed the greater of
(A) the amount per share of DSS Common Stock of the next preceding quarterly
cash dividend on the DSS Common Stock to the extent that such preceding
quarterly dividend did not require any adjustment of the DSS Conversion Price
pursuant to this Section 502(e) (as adjusted to reflect subdivisions or
combinations of the DSS Common Stock), and (B) 3.75% of the arithmetic average
of the Closing Price (determined as set forth in Section 504(a)) during the ten
Trading Days (as defined in Section 504(e)) immediately prior to the date of
declaration of such dividend, and (y) any dividend or distribution in connection
with the liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary), then, in such case, the DSS Conversion Price shall be
reduced so that the same shall equal the price determined

                                      -8-
<PAGE>

by multiplying the DSS Conversion Price in effect immediately prior to the close
of business on such Distribution Record Date by a fraction of which the
numerator shall be the Current Market Price of the DSS Common Stock on the
Distribution Record Date less the amount of cash so distributed (and not
excluded as provided above) applicable to one share of DSS Common Stock and the
denominator shall be such Current Market Price of the DSS Common Stock, such
reduction to be effective immediately prior to the opening of business on the
day following the Distribution Record Date; provided, however, that in the event
                                            --------  -------
the portion of the cash so distributed applicable to one share of DSS Common
Stock is equal to or greater than the Current Market Price of the DSS Common
Stock on the Distribution Record Date, in lieu of the foregoing adjustment,
adequate provision shall be made so that each Holder shall have the right to
receive upon conversion the amount of cash such Holder would have received had
such Holder converted each Note on the Distribution Record Date. In the event
that such dividend or distribution is not so paid or made, the DSS Conversion
Price shall again be adjusted to be the DSS Conversion Price which would then be
in effect if such dividend or distribution had not been declared. If any
adjustment is required to be made as set forth in this Section 502(e) as a
result of a distribution that is a quarterly dividend, such adjustment shall be
based upon the amount by which such distribution exceeds the amount of the
quarterly cash dividend permitted to be excluded pursuant hereto. If an
adjustment is required to be made as set forth in this Section 502(e) above as a
result of a distribution that is not a quarterly dividend, such adjustment shall
be based upon the full amount of the distribution.

          (f) In case a tender or exchange offer made by the Company or any
Subsidiary of the Company for all or any portion of the DSS Common Stock shall
expire and such tender or exchange offer (as amended upon the expiration
thereof) shall require the payment to stockholders of consideration per share of
DSS Common Stock having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a resolution
of the Board if Directors) that as of the last time (the "DSS Expiration Time")
tenders or exchanges may be made pursuant to such tender or exchange offer (as
it may be amended) that exceeds the Current Market Price of the DSS Common Stock
on the Trading Day next succeeding the DSS Expiration Time, the DSS Conversion
Price shall be reduced so that the same shall equal the price determined by
multiplying the DSS Conversion Price in effect immediately prior to the DSS
Expiration Time by a fraction of which the numerator shall be the number of
shares of DSS Common Stock outstanding (including any tendered or exchanged
shares) on the DSS Expiration Time multiplied by the Current Market Price of the
DSS Common Stock on the Trading Day next succeeding the DSS Expiration Time and
the denominator shall be the sum of (x) the fair market value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender or exchange
offer) of all shares validly tendered or exchanged and not withdrawn as of the
DSS Expiration Time (the shares deemed so accepted, up to any such maximum,
being referred to as the "DSS Purchased Shares") and (y) the product of the
number of shares of DSS Common Stock outstanding (less any DSS Purchased Shares)
on the DSS Expiration Time and the Current Market

                                      -9-
<PAGE>

Price of the DSS Common Stock on the Trading Day next succeeding the DSS
Expiration Time, such reduction to become effective immediately prior to the
opening of business on the day following the DSS Expiration Time. In the event
that the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from
effecting any such purchases or all such purchases are rescinded, the DSS
Conversion Price shall again be adjusted to be the DSS Conversion Price which
would then be in effect if such tender or exchange offer had not been made.

          (g) In case of a tender or exchange offer made by a Person other than
the Company or any Subsidiary for an amount which increases the offeror's
ownership of DSS Common Stock and HDD Common Stock to more than 25% of the
aggregate amount of DSS Common Stock and HDD Common Stock outstanding and shall
involve the payment by such Person of consideration per share of DSS Common
Stock having a fair market value (as determined by the Board of Directors, whose
determination shall be conclusive, and described in a resolution of the Board of
Directors) at the last time (the "DSS Offer Expiration Time") tenders or
exchanges may be made pursuant to such tender or exchange offer (as it shall
have been amended) that exceeds the Current Market Price of the DSS Common Stock
on the Trading Day next succeeding the DSS Offer Expiration Time, and in which,
as of the DSS Offer Expiration Time the Board of Directors is not recommending
rejection of the offer, the DSS Conversion Price shall be reduced so that the
same shall equal the price determined by multiplying the DSS Conversion Price in
effect immediately prior to the DSS Offer Expiration Time by a fraction of which
the numerator shall be the number of shares of DSS Common Stock outstanding
(including any tendered or exchanged shares) on the DSS Offer Expiration Time
multiplied by the Current Market Price of the DSS Common Stock on the Trading
Day next succeeding the DSS Offer Expiration Time and the denominator shall be
the sum of (x) the fair market value (determined as aforesaid) of the aggregate
consideration payable to stockholders based on the acceptance (up to any maximum
specified in the terms of the tender or exchange offer) of all shares validly
tendered or exchanged and not withdrawn as of the DSS Offer Expiration Time (the
shares deemed so accepted, up to any such maximum, being referred to as the "DSS
Accepted Purchased Shares") and (y) the product of the number of shares of DSS
Common Stock outstanding (less any DSS Accepted Purchased Shares) on the DSS
Offer Expiration Time and the Current Market Price of the DSS Common Stock on
the Trading Day next succeeding the DSS Offer Expiration Time, such reduction to
become effective immediately prior to the opening of business on the day
following the DSS Offer Expiration Time.  In the event that such Person is
obligated to purchase shares pursuant to any such tender or exchange offer, but
such Person is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the DSS Conversion Price shall
again be adjusted to be the DSS Conversion Price which would then be in effect
if such tender or exchange offer had not been made.  Notwithstanding the
foregoing, the adjustment described in this Section 502(g) shall not be made if,
as of the DSS Offer Expiration Time, the offering documents with respect to such
offer

                                      -10-
<PAGE>

disclose a plan or intention to cause the Company to engage in any transaction
described in Article Eight of the Indenture.

     Section 503 Adjustment of HDD Conversion Price.

     The HDD Conversion Price shall be subject to adjustment from time to time
as follows:

          (a) In case the Company shall hereafter pay a dividend or make a
distribution to all holders of the outstanding HDD Common Stock in shares of HDD
Common Stock, the HDD Conversion Price in effect at the opening of business on
the date following the date fixed for the determination of stockholders entitled
to receive such dividend or other distribution shall be reduced by multiplying
such HDD Conversion Price by a fraction of which the numerator shall be the
number of shares of HDD Common Stock outstanding at the close of business on the
date fixed for such determination and the denominator shall be the sum of such
number of shares and the total number of shares constituting such dividend or
other distribution, such reduction to become effective immediately after the
opening of business on the day following the date fixed for such determination.
The Company will not pay any dividend or make any distribution on shares of HDD
Common Stock held in the treasury of the Company. The Company will not pay any
dividend or make any distribution on shares of HDD Common Stock held in the
treasury of the Company. If any dividend or distribution of the type described
in this Section 503(a) is declared but not so paid or made, the HDD Conversion
Price shall again be adjusted to the HDD Conversion Price which would then be in
effect if such dividend or distribution had not been declared.

          (b) In case the Company shall issue rights or warrants to all holders
of its outstanding shares of HDD Common Stock entitling them (for a period
expiring within 45 days after the date fixed for determination of stockholders
entitled to receive such rights or warrants) to subscribe for or purchase shares
of HDD Common Stock at a price per share less than the Current Market Price (as
defined below) on the date fixed for determination of stockholders entitled to
receive such rights or warrants, the HDD Conversion Price shall be adjusted so
that the same shall equal the price determined by multiplying the HDD Conversion
Price in effect immediately prior to the date fixed for determination of
stockholders entitled to receive such rights or warrants by a fraction of which
the numerator shall be the number of shares of HDD Common Stock outstanding at
the close of business on the date fixed for determination of stockholders
entitled to receive such rights and warrants plus the number of shares which the
aggregate offering price of the total number of shares so offered would purchase
at such Current Market Price, and of which the denominator shall be the number
of shares of HDD Common Stock outstanding on the date fixed for determination of
stockholders entitled to receive such rights and warrants plus the total number
of additional shares of HDD Common Stock offered for subscription or purchase.
Such adjustment shall be successively made whenever any such rights and warrants
are issued, and shall become effective

                                      -11-
<PAGE>

immediately after the opening of business on the day following the date fixed
for determination of stockholders entitled to receive such rights or warrants.
To the extent that shares of HDD Common Stock are not delivered after the
expiration of such rights or warrants, the HDD Conversion Price shall be
readjusted to the HDD Conversion Price which would then be in effect had the
adjustments made upon the issuance of such rights or warrants been made on the
basis of delivery of only the number of shares of HDD Common Stock actually
delivered. In the event that such rights or warrants are not so issued, the HDD
Conversion Price shall again be adjusted to be the HDD Conversion Price which
would then be in effect if such date fixed for the determination of stockholders
entitled to receive such rights or warrants had not been fixed. In determining
whether any rights or warrants entitle the holders to subscribe for or purchase
shares of HDD Common Stock at less than such Current Market Price, and in
determining the aggregate offering price of such shares of HDD Common Stock,
there shall be taken into account any consideration received by the Company for
such rights or warrants, the value of such consideration, if other than cash, to
be determined by the Board of Directors.

          (c) In case outstanding shares of HDD Common Stock shall be subdivided
into a greater number of shares of HDD Common Stock, the HDD Conversion Price in
effect at the opening of business on the day following the day upon which such
subdivision becomes effective shall be proportionately reduced, and conversely,
in case outstanding shares of HDD Common Stock shall be combined into a smaller
number of shares of HDD Common Stock, the HDD Conversion Price in effect at the
opening of business on the day following the day upon which such combination
becomes effective shall be proportionately increased, such reduction or
increase, as the case may be, to become effective immediately after the opening
of business on the day following the day upon which such subdivision or
combination becomes effective.

          (d) In case the Company shall, by dividend or otherwise, distribute to
all holders of its HDD Common Stock shares of any class of capital stock of the
Company (other than any dividends or distributions to which Section 503(a)
applies) or evidences of its indebtedness or assets (including securities, but
excluding any rights or warrants referred to in Section 503(b), and excluding
any dividend or distribution (x) paid exclusively in cash or (y) referred to in
Section 503(a) (any of the foregoing hereinafter in this Section 503(d) called
the "HDD Distribution Securities")), then, in each such case (unless the Company
elects to reserve such HDD Distribution Securities for distribution to the
Holders upon the conversion of the Notes so that any such Holder converting
Notes will receive upon such conversion, in addition to the shares of HDD Common
Stock to which such Holder is entitled, the amount and kind of such HDD
Distribution Securities which such Holder would have received if such Holder had
converted its Notes immediately prior to the Distribution Record Date (as
defined in Section 504(c) for such distribution of the HDD Distribution
Securities)), the HDD Conversion Price shall be reduced so that the same shall
be equal to the price determined by multiplying the HDD Conversion Price in
effect on the Distribution Record Date with respect to such distribution by a

                                      -12-
<PAGE>

fraction of which the numerator shall be the Current Market Price per share of
the HDD Common Stock on such Distribution Record Date less the fair market value
(as determined by the Board of Directors, whose determination shall be
conclusive, and described in a resolution of the Board of Directors) on the
Distribution Record Date of the portion of the Securities so distributed
applicable to one share of HDD Common Stock and the denominator shall be the
Current Market Price per share of the HDD Common Stock, such reduction to become
effective immediately prior to the opening of business on the day following such
Distribution Record Date; provided, however, that in the event the then fair
                          --------  -------
market value (as so determined) of the portion of the HDD Distribution
Securities so distributed applicable to one share of HDD Common Stock is equal
to or greater than the Current Market Price of the HDD Common Stock on the
Distribution Record Date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive upon
conversion the amount of HDD Distribution Securities such Holder would have
received had such Holder converted each Note on the Distribution Record Date.
In the event that such dividend or distribution is not so paid or made, the HDD
Conversion Price shall again be adjusted to be the HDD Conversion Price which
would then be in effect if such dividend or distribution had not been declared.
If the Board of Directors determines the fair market value of any distribution
for purposes of this Section 503(d) by reference to the actual or when issued
trading market for any securities, it must in doing so consider the prices in
such market over the same period used in computing the Current Market Price of
the HDD Common Stock.

     Each share of HDD Common Stock upon conversion of Notes shall be entitled
to receive the appropriate number of Rights, if any, and the certificates
representing the HDD Common Stock issued upon such conversion shall bear such
legends, if any, in each case as provided by and subject to the terms of the
Rights Agreement as in effect at the time of such conversion.  If the Rights are
separated from the HDD Common Stock in accordance with the provisions of the
Rights Agreement such that the Holders would thereafter not be entitled to
receive any such Rights in respect to the HDD Common Stock, issuable upon
conversion of such Notes, the HDD Conversion Price will be adjusted as provided
in this Section 503(d) on the separation date; provided that if such Rights
                                               --------
expire, terminate or are redeemed by the Company, the HDD Conversion Price shall
again be adjusted to be the HDD Conversion Price which would then be in effect
if such separation had not occurred.  In lieu of any such adjustment, the
Company may amend the Rights Agreement to provide that upon conversion of the
Notes the Holders will receive, in addition to the HDD Common Stock issuable
upon such conversion, the Rights which would have attached to such shares of HDD
Common Stock if the Rights had not become separated from the HDD Common Stock
pursuant to the provisions of the Rights Agreement.

     Rights or warrants distributed by the Company to all holders of HDD Common
Stock entitling the holders thereof to subscribe for or purchase shares of the
Company's capital stock (either initially or under certain circumstances), which
rights or warrants, until the occurrence of a specified event or events ("HDD
Trigger Event"): (i) are deemed to be transferred with such shares of HDD Common
Stock;

                                      -13-
<PAGE>

(ii) are not exercisable; and (iii) are also issued in respect of future
issuances of HDD Common Stock, shall be deemed not to have been distributed for
purposes of this Section 503 (and no adjustment to the HDD Conversion Price
under this Section 503 will be required) until the occurrence of the earliest
HDD Trigger Event, whereupon such rights and warrants shall be deemed to have
been distributed and an appropriate adjustment (if any is required) to the HDD
Conversion Price shall be made under this Section 503(d). If any such right or
warrant, including any such existing rights or warrants distributed prior to the
date of this Supplemental Indenture, are subject to events, upon the occurrence
of which such rights or warrants become exercisable to purchase different
securities, evidences of indebtedness or other assets, then the date of the
occurrence of any and each such event shall be deemed to be the date of
distribution and record date with respect to new rights or warrants with such
rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof). In addition, in the event of
any distribution (or deemed distribution) of rights or warrants, or any HDD
Trigger Event or other event (of the type described in the preceding sentence)
with respect thereto that was counted for purposes of calculating a distribution
amount for which an adjustment to the HDD Conversion Price under this Section
503 was made, (1) in the case of any such rights or warrants which shall all
have been redeemed or repurchased without exercise by any holders thereof, the
HDD Conversion Price shall be readjusted upon such final redemption or
repurchase to give effect to such distribution or HDD Trigger Event, as the case
may be, as though it were a cash distribution, equal to the per share redemption
or repurchase price received by a holder or holders of HDD Common Stock with
respect to such rights or warrants (assuming such holder had retained such
rights or warrants), made to all holders of HDD Common Stock as of the date of
such redemption or repurchase, and (2) in the case of such rights or warrants
which shall have expired or been terminated without exercise by any holders
thereof, the HDD Conversion Price shall be readjusted as if such rights and
warrants had not been issued.

     For purposes of this Section 503(d) and Sections 503(a) and (b), any
dividend or distribution to which this Section 503(d) is applicable that also
includes shares of HDD Common Stock, or rights or warrants to subscribe for or
purchase shares of HDD Common Stock (or both), shall be deemed instead to be (1)
a dividend or distribution of the evidences of indebtedness, assets or shares of
capital stock other than such shares of HDD Common Stock or rights or warrants
(and any HDD Conversion Price reduction required by this Section 503(d) with
respect to such dividend or distribution shall then be made) immediately
followed by (2) a dividend or distribution of such shares of HDD Common Stock or
such rights or warrants (and any further HDD Conversion Price reduction required
by Sections 503(a) and (b) with respect to such dividend or distribution shall
then be made), except (A) the Distribution Record Date of such dividend or
distribution shall be substituted as "the date fixed for the determination of
stockholders entitled to receive such dividend or other distribution" and "the
date fixed for such determination" within the meaning of Sections 503(a) and (b)
and (B) any shares of HDD Common Stock included in such

                                      -14-
<PAGE>

dividend or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning of Section
503(a).

          (e) In case the Company shall, by dividend or otherwise, distribute to
all holders of its HDD Common Stock cash (excluding (x) any quarterly cash
dividend on the HDD Common Stock to the extent the aggregate cash dividend per
share of HDD Common Stock in any fiscal quarter does not exceed the greater of
(A) the amount per share of HDD Common Stock of the next preceding quarterly
cash dividend on the HDD Common Stock to the extent that such preceding
quarterly dividend did not require any adjustment of the HDD Conversion Price
pursuant to this Section 503(e) (as adjusted to reflect subdivisions or
combinations of the HDD Common Stock), and (B) 3.75% of the arithmetic average
of the Closing Price (determined as set forth in Section 504(a)) during the ten
Trading Days (as defined in Section 504(e)) immediately prior to the date of
declaration of such dividend, and (y) any dividend or distribution in connection
with the liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary), then, in such case, the HDD Conversion Price shall be
reduced so that the same shall equal the price determined by multiplying the HDD
Conversion Price in effect immediately prior to the close of business on such
Distribution Record Date by a fraction of which the numerator shall be the
Current Market Price of the HDD Common Stock on the Distribution Record Date
less the amount of cash so distributed (and not excluded as provided above)
applicable to one share of HDD Common Stock and the denominator shall be such
Current Market Price of the HDD Common Stock, such reduction to be effective
immediately prior to the opening of business on the day following the
Distribution Record Date; provided, however, that in the event the portion of
                          --------  -------
the cash so distributed applicable to one share of HDD Common Stock is equal to
or greater than the Current Market Price of the HDD Common Stock on the
Distribution Record Date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive upon
conversion the amount of cash such Holder would have received had such Holder
converted each Note on the Distribution Record Date.  In the event that such
dividend or distribution is not so paid or made, the HDD Conversion Price shall
again be adjusted to be the HDD Conversion Price which would then be in effect
if such dividend or distribution had not been declared.  If any adjustment is
required to be made as set forth in this Section 503(e) as a result of a
distribution that is a quarterly dividend, such adjustment shall be based upon
the amount by which such distribution exceeds the amount of the quarterly cash
dividend permitted to be excluded pursuant hereto.  If an adjustment is required
to be made as set forth in this Section 503(e) above as a result of a
distribution that is not a quarterly dividend, such adjustment shall be based
upon the full amount of the distribution.

          (f) In case a tender or exchange offer made by the Company or any
Subsidiary of the Company for all or any portion of the HDD Common Stock shall
expire and such tender or exchange offer (as amended upon the expiration
thereof) shall require the payment to stockholders of consideration per share of
HDD Common Stock having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a resolution
of the Board if

                                      -15-
<PAGE>

Directors) that as of the last time (the "HDD Expiration Time") tenders or
exchanges may be made pursuant to such tender or exchange offer (as it may be
amended) that exceeds the Current Market Price of the HDD Common Stock on the
Trading Day next succeeding the HDD Expiration Time, the HDD Conversion Price
shall be reduced so that the same shall equal the price determined by
multiplying the HDD Conversion Price in effect immediately prior to the HDD
Expiration Time by a fraction of which the numerator shall be the number of
shares of HDD Common Stock outstanding (including any tendered or exchanged
shares) on the HDD Expiration Time multiplied by the Current Market Price of the
HDD Common Stock on the Trading Day next succeeding the HDD Expiration Time and
the denominator shall be the sum of (x) the fair market value (determined as
aforesaid) of the aggregate consideration payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender or exchange
offer) of all shares validly tendered or exchanged and not withdrawn as of the
HDD Expiration Time (the shares deemed so accepted, up to any such maximum,
being referred to as the "HDD Purchased Shares") and (y) the product of the
number of shares of HDD Common Stock outstanding (less any HDD Purchased Shares)
on the HDD Expiration Time and the Current Market Price of the HDD Common Stock
on the Trading Day next succeeding the HDD Expiration Time, such reduction to
become effective immediately prior to the opening of business on the day
following the HDD Expiration Time. In the event that the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company
is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the HDD Conversion Price shall again be
adjusted to be the HDD Conversion Price which would then be in effect if such
tender or exchange offer had not been made.

          (g) In case of a tender or exchange offer made by a Person other than
the Company or any Subsidiary for an amount which increases the offeror's
ownership of HDD Common Stock and DSS Common Stock to more than 25% of the
aggregate HDD Common Stock and DSS Common Stock outstanding and shall involve
the payment by such Person of consideration per share of HDD Common Stock having
a fair market value (as determined by the Board of Directors, whose
determination shall be conclusive, and described in a resolution of the Board of
Directors) at the last time (the "DHH Offer Expiration Time") tenders or
exchanges may be made pursuant to such tender or exchange offer (as it shall
have been amended) that exceeds the Current Market Price of the HDD Common Stock
on the Trading Day next succeeding the DHH Offer Expiration Time, and in which,
as of the DHH Offer Expiration Time the Board of Directors is not recommending
rejection of the offer, the HDD Conversion Price shall be reduced so that the
same shall equal the price determined by multiplying the HDD Conversion Price in
effect immediately prior to the DHH Offer Expiration Time by a fraction of which
the numerator shall be the number of shares of HDD Common Stock outstanding
(including any tendered or exchanged shares) on the DHH Offer Expiration Time
multiplied by the Current Market Price of the HDD Common Stock on the Trading
Day next succeeding the DHH Offer Expiration Time and the denominator shall be
the sum of (x) the fair

                                      -16-
<PAGE>

market value (determined as aforesaid) of the aggregate consideration payable to
stockholders based on the acceptance (up to any maximum specified in the terms
of the tender or exchange offer) of all shares validly tendered or exchanged and
not withdrawn as of the DHH Offer Expiration Time (the shares deemed so
accepted, up to any such maximum, being referred to as the "DHH Accepted
Purchased Shares") and (y) the product of the number of shares of HDD Common
Stock outstanding (less any DHH Accepted Purchased Shares) on the DHH Offer
Expiration Time and the Current Market Price of the DSS Common Stock on the
Trading Day next succeeding the DHH Offer Expiration Time, such reduction to
become effective immediately prior to the opening of business on the day
following the DHH Offer Expiration Time. In the event that such Person is
obligated to purchase shares pursuant to any such tender or exchange offer, but
such Person is permanently prevented by applicable law from effecting any such
purchases or all such purchases are rescinded, the HDD Conversion Price shall
again be adjusted to be the HDD Conversion Price which would then be in effect
if such tender or exchange offer had not been made. Notwithstanding the
foregoing, the adjustment described in this Section 503(g) shall not be made if,
as of the DHH Offer Expiration Time, the offering documents with respect to such
offer disclose a plan or intention to cause the Company to engage in any
transaction described in Article Eight of the Indenture.

     504  Certain Definitions.  For purposes of this Article Five, the following
terms shall have the meaning indicated:

          (a) "Closing Price" with respect to any securities on any day shall
mean the closing sale price regular way on such day or, in case no such sale
takes place on such day, the average of the reported closing bid and asked
prices, regular way, in each case on the New York Stock Exchange, or, if such
security is not listed or admitted to trading on such Exchange, on the principal
national security exchange or quotation system on which such security is quoted
or listed or admitted to trading, or, if not quoted or listed or admitted to
trading on any national securities exchange or quotation system, the average of
the closing bid and asked prices of such security on the over-the-counter market
on the day in question as reported by the National Quotation Bureau
Incorporated, or a similar generally accepted reporting service, or if not so
available, in such manner as furnished by any New York Stock Exchange member
firm selected from time to time by the Board of Directors for that purpose, or a
price determined in good faith by the Board of Directors or, to the extent
permitted by applicable law, a duly authorized committee thereof, whose
determination shall be conclusive.

          (b) "Current Market Price" shall mean the average of the daily Closing
Prices per share of DSS Common Stock or HDD Common Stock for the ten consecutive
Trading Days immediately prior to the date in question; provided, however, that
                                                        --------  -------
(1) if the "ex" date (as hereinafter defined) for any event (other than the
issuance or distribution or Fundamental Change requiring such computation) that
requires an adjustment to the DSS Conversion Price or the HDD Conversion Price,
as the Case may be, pursuant to this Section 5.02 occurs during such ten
consecutive

                                      -17-
<PAGE>

Trading Days, the Closing Price for each Trading Day prior to the "ex" date for
such other event shall be adjusted by multiplying such Closing Price by the same
fraction by which the DSS Conversion Price or the HDD Conversion Price, as the
case may be is so required to be adjusted as a result of such other event, (2)
if the "ex" date for any event (other than the issuance, distribution or
Fundamental Change requiring such computation) that requires an adjustment to
the Conversion Price pursuant to this Section 5.02 occurs on or after the "ex"
date for the issuance or distribution requiring such computation and prior to
the day in question, the Closing Price for each Trading Day on and after the
"ex" date for such other event shall be adjusted by multiplying such Closing
Price by the reciprocal of the fraction by which the DSS Conversion Price or the
HDD Conversion Price, as the case may be, is so required to be adjusted as a
result of such other event, and (3) if the "ex" date for the issuance,
distribution or Fundamental Change requiring such computation is prior to the
day in question, after taking into account any adjustment required pursuant to
clause (1) or (2) of this proviso, the Closing Price for each Trading Day on or
after such "ex" date shall be adjusted by adding thereto the amount of any cash
and the fair market value (as determined by the Board of Directors or, to the
extent permitted by applicable law, a duly authorized committee thereof in a
manner consistent with any determination of such value for purposes of Section
502(d), (f) or (g), in the case of DSS Common Stock, or Section 5.03 (d), (f) or
(g), in the case of HDD Common Stock, whose determination shall be conclusive
and described in a resolution of the Board of Directors or such duly authorized
committee thereof, as the case may be) of the evidences of indebtedness, shares
of capital stock or assets being distributed applicable to one share of DSS
Common Stock or HDD Common Stock, as the case may be, as of the close of
business on the day before such "ex" date. For purposes of any computation under
Section 502(f) or (g) in the case of DSS Common Stock, or 503(f) or (g) in the
case of HDD Common Stock, the Current Market Price of the Common Stock on any
date shall be deemed to be the average of the daily Closing Prices per share of
DSS Common Stock or HDD Common stock, as the case may be, for such day and the
next two succeeding Trading Days; provided, however, that if the "ex"
                                  --------  -------
date for any event (other than the tender or exchange offer requiring such
computation) that requires an adjustment to the Conversion Price pursuant to
this Section 5.02 occurs on or after the DSS Expiration Time, HDD Expiration
Time, DSS Offer Expiration Time or DHH Offer Expiration Time, as the case may
be, for the tender or exchange offer requiring such computation and prior to the
day in question, the Closing Price for each Trading Day on and after the "ex"
date for such other event shall be adjusted by multiplying such Closing Price by
the reciprocal of the fraction by which the DSS Conversion Price or the HDD
Conversion Price, as the case may be, is so required to be adjusted as a result
of such other event. For purposes of this paragraph, the term "ex" date, (1)
when used with respect to any issuance or distribution, means the first date on
which the DSS Common Stock or HDD Common Stock, as the case may be, trades
regular way on the relevant exchange or in the relevant market from which the
Closing Price was obtained without the right to receive such issuance or
distribution, (2) when used with respect to any subdivision or combination of
shares of DSS Common Stock or HDD Common Stock, as the case

                                      -18-
<PAGE>

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

          (c) "Distribution Record Date" shall mean, with respect to any
dividend, distribution or other transaction or event in which the holders of DSS
Common Stock or HDD Common Stock, as the case may be, have the right to receive
any cash, securities or other property or in which such Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash,
securities or other property, the date fixed for determination of stockholders
entitled to receive such cash, securities or other property (whether such date
is fixed by the Board of Directors or by statute, contract or otherwise).

          (d) "fair market value" shall mean the amount which a willing buyer
would pay a willing seller in an arm's length transaction.

          (e) "Trading Day" shall mean (x) if the applicable security is listed
or admitted for trading on the New York Stock Exchange or another national
security exchange, a day on which the New York Stock Exchange or another
national security exchange is open for business or (y) if the applicable
security is quoted on the Nasdaq National Market, a day on which trades may be
made on thereon or (z) if the applicable security is not so listed, admitted for
trading or quoted, any day other than a Saturday or Sunday or a day on which
banking institutions in the State of New York are authorized or obligated by law
or executive order to close.

          505  General Conversion Provisions

          (a) No adjustment in the DSS Conversion Price or the HDD Conversion
Price shall be required unless such adjustment would require an increase or
decrease of at least 1% in either such price; provided, however, that any
                                              --------  -------
adjustments which by reason of this Section 505(a) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment of
the DSS Conversion Price or the HDD Conversion Price, as the case may be.  All
calculations under this Article Five shall be made by the Company and shall be
made to the nearest one tenth of a cent or to the nearest one hundredth of a
share, as the case may be.  No adjustment need be made for rights to purchase
Common Stock pursuant to a Company plan for reinvestment of dividends or
interest.  To the extent the Notes become convertible into cash, assets,
property or securities (other than capital stock of the Company), no adjustment
need be made thereafter as to the cash, assets, property or such securities.
Interest will not accrue on the cash.

                                      -19-
<PAGE>

          (b) Whenever the DSS Conversion Price or the HDD Conversion Price, as
the case may be, is adjusted as herein provided, the Company shall promptly file
with the Trustee and any conversion agent other than the Trustee an Officers'
Certificate setting forth the DSS Conversion Price and the HDD Conversion Price
after such adjustment and setting forth a brief statement of the facts requiring
such adjustment.  Promptly after delivery of such certificate, the Company shall
prepare a notice of such adjustment of the DSS Conversion Price or the HDD
Conversion Price, as the case may be, setting forth the adjusted DSS Conversion
Price or HDD Conversion Price, as the case may be, and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment to
the Holder of each Note at his last address appearing on the Security Register
within 20 days after execution thereof.  Failure to deliver such notice shall
not affect the legality or validity of any such adjustment.

          (c) In any case in which this Article Five provides that an adjustment
shall become effective immediately after a record date for an event, the Company
may defer until the occurrence of such event (i) issuing to the Holder of any
Note converted after such record date and before the occurrence of such event
the additional shares of DSS Common Stock or HDD Common Stock issuable upon such
conversion by reason of the adjustment required by such event over and above the
DSS Common Stock and HDD Common Stock issuable upon such conversion before
giving effect to such adjustment and (ii) paying to such holder any amount in
cash in lieu of any fraction pursuant to Section 1403 of the Indenture.

          (d) For purposes of this Article Five, the number of shares of DSS
Common Stock and HDD Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of DSS
Common Stock or HDD Common Stock.  The Company will not pay any dividend or make
any distribution on shares of DSS Common Stock or HDD Common Stock held in the
treasury of the Company.

          (e) The Company may make such reductions in the DSS Conversion Price
and HDD Conversion Price, in addition to those required by this Sections 502 or
503, as the Board of Directors considers to be advisable to avoid or diminish
any income tax to holders of DSS Common Stock or HDD Common Stock, respectively,
or rights to purchase DSS Common Stock or HDD Common Stock, as the case may be,
resulting from any dividend or distribution of stock (or rights to acquire
stock) or from any event treated as such for income tax purposes.

     To the extent permitted by applicable law, the Company from time to time
may reduce the DSS Conversion Price or the HDD Conversion Price by any amount
for any period of time if the period is at least twenty (20) days, the reduction
is irrevocable during the period and the Board of Directors shall have made a
determination that such reduction would be in the best interests of the Company,
which determination shall be conclusive.  Whenever the DSS Conversion Price or
the

                                      -20-
<PAGE>

     HDD Conversion Price, as the case may be, is reduced pursuant to the
     preceding sentence, the Company shall mail to holders of record of the
     Notes a notice of the reduction at least fifteen (15) days prior to the
     date the reduction takes effect, and such notice shall state the reduced
     DSS Conversion Price or HDD Conversion Price and the period during which it
     will be in effect.

Section 106  Amendment to Annex 1.

     Annex 1 of the First Supplemental Indenture is hereby replaced in its
entirety with Annex 1 hereto.

                                  ARTICLE TWO
                                 MISCELLANEOUS

Section 201   Reference to and Effect on the Indenture.

     This Supplemental Indenture shall be construed as supplemental to the
Indenture and all the terms and conditions of this Supplemental Indenture shall
be deemed to be part of the terms and conditions of the Indenture.  This
Supplemental Indenture is subject to the provisions of the Trust Indenture Act,
and shall, to the extent applicable, be governed by such provisions.

Section 202  Supplemental Indenture May be Executed In Counterparts.

     This instrument may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but
one and the same instrument.

Section 203  Effect of Headings.

     The Article and Section headings herein are for convenience only and shall
not affect the construction hereof.

Section 204  Separability.

     In case any one or more of the provisions contained in this Supplemental
Indenture or in the Notes shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not effect any other provisions of this Supplemental Indenture or of the
Notes, but this Supplemental Indenture and the Notes shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

Section 205  Governing Law.

     THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW
OF THE STATE OF NEW YORK.

                                      -21-
<PAGE>

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

                                      Quantum Corporation

                                      By: /s/ Richard L. Clemmer
                                          _____________________________________
                                          Richard L. Clemmer
                                          Executive Vice President, Finance and
                                          Chief Financial Officer

                                      LaSalle National Bank, as Trustee

                                      By: /s/ Estelita E. Tucker
                                          _____________________________________
                                          Estelita E. Tucker
                                          Assistant Vice President

                                      -22-
<PAGE>

                                    Annex 1
                          [Form of Face of Security]

[If the Security is a Global Security, insert -- THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER
OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

                              QUANTUM CORPORATION

                   7% Convertible Subordinated Note due 2004

No. __________                                           $ ____________
                                                    CUSIP: ____________

     Quantum Corporation, a corporation duly organized and existing under the
laws of Delaware (herein called the "Company," which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to ________________, or registered assigns, the principal sum of
___________________ Dollars on August 1, 2004 and to pay interest thereon from
August 1, 1997 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually on February 1 and August 1 in
each year, commencing February 1, 1998, at the rate of 7% per annum, until the
principal hereof is paid or made available for payment. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the January 15 or
July 15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.  Any such interest not so punctually paid or duly
provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or
one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.

     Payment of the principal of (and premium, if any) and any interest on this
Security will be made at the office or agency of the Company maintained for such
purpose in the Borough of Manhattan, The City of New York, or at the option of
the Holder of this Security, at the Corporate Trust Office, in such coin or
currency of the United States of America as at the time of payment is

                                      -23-
<PAGE>

legal tender for payment of public and private debts; provided, however, that at
                                                      --------  -------
the option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register; provided, further, that a Holder with an aggregate principle
                   --------  -------
amount in excess of $5,000,000 will be paid by wire transfer in immediately
available funds at the election of such Holder.

     Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be signed
manually or by facsimile by their duly authorized officers and by its corporate
seal to be affixed or imported hereon.

Dated:  ___________
                                                QUANTUM CORPORATION

                                                By: ___________________________
                                                    Title:
Attest:

By: ______________________________
    Title:

     The Trustee's certificates of authentication shall be in substantially the
following form:

     This is one of the Securities of the series designated herein referred to
in the within-mentioned Indenture.

                                                LASALLE NATIONAL BANK
                                                As Trustee

                                                By: ___________________________
                                                    Authorized Officer

                          Form of Reverse of Security

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or
more series under an Indenture, dated as of August 1, 1997 (herein called the
"Indenture," which term shall have the meaning assigned to it in such
instrument), between the Company and LaSalle National Bank, as Trustee (herein
called the "Trustee," which term includes any successor trustee under the
Indenture), and reference is hereby

                                      -24-
<PAGE>

made to the Indenture and all indentures supplemental thereto for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee, the holders of Senior Indebtedness and the Holders
of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof, limited in aggregate principal amount to $287,500,000, and is
issued pursuant to a Supplemental Trust Indenture supplementing the Indenture,
dated as of August 1, 1997, from the Company to Trustee relating to the issuance
of the "7% Convertible Notes due 2004" of this series (the "Supplemental
Indenture").

     The Securities will not be subject to redemption prior to August 1, 1999
and will be redeemable on and after such date at the option of the Company, in
whole or in part, upon not less than 15 nor more than 60 days' notice to the
Holders, at the Redemption Prices (expressed as a percentage of principal
amount) set forth below; provided, however, that the Securities will not be
                         --------  -------
redeemable following August 1, 1999, and before August 1, 2001, unless the fair
market value of the DSS Common Stock and HDD Common Stock issuable upon the
conversion of $1,000 of principal amount of Notes, based on the Closing Prices
for at least 20 Trading Days within a period of 30 consecutive Trading Days
ending within five Trading Days prior to the notice of redemption, exceeds
$1,250  (using the same Trading Days for determining the Closing Prices of both
the DSS Common Stock and the HDD Common Stock).

     The Redemption Price (expressed as a percentage of principal amount) is as
follows for the 12 month periods beginning on August 1 of the following years:

      Year                                   Redemption Price
      ----                                   ----------------

      1999.............................           105%
      2000.............................           104%
      2001.............................           103%
      2002.............................           102%
      2003.............................           101%

and 100% at August 1, 2004, in each case together with accrued and unpaid
interest to, but excluding, the Redemption Date; provided, however, that
                                                 --------  -------
interest installments whose Stated Maturity is on such Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates
referred to on the face hereof, all as provided in the Indenture.

     The Securities are not subject to redemption through operation of any
sinking fund.

     In the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.

     If a Fundamental Change (as defined in the Supplemental Indenture) occurs
at any time prior to August 1, 2004, the Securities will be redeemable on the
30th day after notice thereof at the option of the Holder.  Such payment shall
be made at the following prices (expressed as a percentage of

                                      -25-
<PAGE>

principal amount) in the event of a Fundamental Change occurring during the 12
month period beginning August 1 of the following years:

     Year                   Percentage          Year                Percentage
     ----                   ----------          ----                ----------
     1997 .............        107%             2001 ..............     103%
     1998 .............        106              2002 ..............     102
     1999 .............        105              2003 ..............     101
     2000 .............        104

and 100% at August 1, 2004; provided in each case that if the Applicable Price
(as defined in the Supplemental Indenture) is less than the Reference Market
Price (as defined in the Supplemental Indenture), the Company shall redeem such
Securities at a price equal to the foregoing redemption price multiplied by the
fraction obtained by dividing the Applicable Price by the Reference Market
Price.  In each case, the Company shall also pay accrued interest, if any, on
such Securities to, but excluding, the Repurchase Date; provided, however, that
                                                        --------  -------
interest installments whose Stated Maturity is on such Repurchase Date will be
paid to the Holders of such Securities, or one or more Predecessor Securities,
of record at the close of business on the relevant Record Dates referred to on
the face hereof, all as provided in the Supplemental Indenture.  The Company
shall mail to all Holders a notice of the occurrence of a Fundamental Change and
of the redemption right arising as a result thereof on or before the 10th day
after the occurrence of such Fundamental Change.  For a Security to be so repaid
at the option of the Holder, the Company must receive at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, the City of
New York, or, at the option of the Holder, the Corporate Trust Office of the
Trustee, such Security with the form entitled "Option to Elect Redemption Upon a
Fundamental Change" on the reverse thereof duly completed, together with such
Securities duly endorsed for transfer, on or before the 30th day after the date
of such notice (or if such 30th day is not a Business Day, the immediately
succeeding Business Day).

     The indebtedness evidenced by this Security is, to the extent and in the
manner provided in the Indenture, subordinate and subject in right of payment to
the prior payment in full of all Senior Indebtedness of the Company, and this
Security is issued subject to such provisions of the Indenture with respect
thereto.  Each Holder of this Security, by accepting the same, (a) agrees to and
shall be bound by such provisions, (b) authorizes and directs the Trustee on his
or her behalf to take such action as may be necessary or appropriate to
effectuate the subordination so provided and (c) appoints the Trustee as his or
her attorney-in-fact for any and all such purposes.

     The Indenture contains provisions for defeasance at any time of the entire
indebtedness of this Security or certain restrictive covenants and Events of
Default with respect to this Security, in each case upon compliance with certain
conditions set forth in the Indenture, except that the Company will not be able
to defease the right of the Holders to convert this Security pursuant to Article
Fourteen of the Indenture.

     Subject to the provisions of the Indenture, the Holder of this Security is
entitled, at its option, at any time on or before August 1, 2004 (except that,
in case this Security or any portion hereof shall be redeemed, such right shall
terminate with respect to this Security or portion hereof, as the case

                                      -26-
<PAGE>

may be, so redeemed at the close of business on the first Business Day next
preceding the date fixed for redemption as provided in the Indenture, unless the
Company defaults in making the payment due upon redemption or except as
otherwise provided in the Indenture), to convert any $1000 of principal of Notes
held by such holder into the number of DSS Common Stock obtained by dividing
$666.67 by the DSS Conversion Price (initially $30.833) and into the number of
HDD Common Stock obtained by dividing $333.33 by the HDD Conversion Price
(initially $30.833), as the HDD Conversion Price and the DSS Conversion Price
may be adjusted from time to time, upon surrender of this Security, together
with the conversion notice hereon duly executed, to be accompanied (if so
required by the Company) by instruments of transfer, in form satisfactory to the
Company and to the Trustee, duly executed by the Holder or by its duly
authorized attorney in writing. Such surrender shall, if made during any period
beginning at the close of business on a Regular Record Date and ending at the
opening of business on the Interest Payment Date next following such Regular
Record Date (unless this Security or the portion being converted shall have been
called for redemption on a Redemption Date during the period beginning at the
close of business on a Regular Record Date and ending at the opening of business
on the first Business Day after the next succeeding Interest Payment Date, or if
such Interest Payment Date is not a Business Day, the second such Business Day),
also be accompanied by payment in funds acceptable to the Company of an amount
equal to the interest payable on such Interest Payment Date on the principal
amount of this Security then being converted. Subject to the aforesaid
requirement for payment and, in the case of a conversion after the Regular
Record Date next preceding any Interest Payment Date and on or before such
Interest Payment Date, to the right of the Holder of this Security (or any
Predecessor Security) of record at such Regular Record Date to receive an
installment of interest (with certain exceptions provided in the Indenture), no
adjustment is to be made on conversion for interest accrued hereon or for
dividends on shares of Common Stock issued on conversion. The Company is not
required to issue fractional shares upon any such conversion, but shall make
adjustment therefor as provided in the Indenture. Each of the DSS Conversion
Price and the HDD Conversion Price is subject to adjustment as provided in the
Indenture. In the event of conversion of this Security in part only, a new
Security or Securities for the unconverted portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.

     If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of more than 50% in principal amount of the Securities at
the time Outstanding of each series to be affected.  The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

                                      -27-
<PAGE>

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and any premium and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or its attorney duly
authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof.  As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

     Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

     All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                      -28-
<PAGE>

                                 Abbreviations

     The following abbreviations, when used in the inscription of the face of
this Security, shall be construed as though they were written out in full
according to applicable laws or regulations:

     TEN COM - as tenants in common             UNIF GIFT MIN ACT
     TEN ENT - as tenants  by the entireties
               (Cust)
     JT TEN  - as joint tenants with right of   Custodian_________under Uniform
               survivorship and not as tenants            (Minor)
               in common                        Gifts to Minors Act ___________
                                                                      (State)

    Additional abbreviations may also be used though not in the above list.

                               Conversion Notice

     To Quantum Corporation:

     The undersigned owner of this Security hereby irrevocably exercises the
option to convert this Security, or portion hereof (which is $1,000 or an
integral multiple thereof) below designated, into shares of DSS Common Stock and
HDD Common Stock of the Company in accordance with the terms of the Indenture
referred to in this Security, and directs that the shares issuable and
deliverable upon the conversion, together with any check in payment for
fractional shares and any Securities representing any unconverted principal
amount hereof, be issued and delivered to the registered Holder hereof unless a
different name has been indicated below. If this Notice is being delivered on a
date after the close of business on a Regular Record Date and prior to the
opening of business on the related Interest Payment Date (unless this Security
or the portion thereof being converted has been called for redemption on a
Redemption Date after the close of business on a Regular Record Date and prior
to the opening of business on the first Business Day after the next succeeding
Interest Payment Date, or if such Interest Payment Date is not a Business Day,
the next such Business Day), this Notice is accompanied by payment, in funds
acceptable to the Company, of an amount equal to the interest payable on such
Interest Payment Date of the principal of this Security to be converted. If
shares are to be issued in the name of a person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect hereto. Any amount
required to be paid by the undersigned on account of interest accompanies this
Security.

                                      -29-
<PAGE>

        Principal Amount to be Converted
  (in an integral multiple of $1,000, if less
                   than all)
               $ __________

Dated:___________

                                                   _____________________________
                                                   _____________________________

                                                   Signature(s) must be
                                                   guaranteed by a qualified
                                                   guarantor institution with
                                                   membership in an approved
                                                   signature guarantee program
                                                   pursuant to Rule 17Ad-15
                                                   under the Securities Exchange
                                                   Act of 1934 if shares of DSS
                                                   Common Stock and HDD Common
                                                   Stock are to be delivered, or
                                                   Securities to be issued,
                                                   other than to and in the name
                                                   of the registered owner.

                                                   _____________________________
                                                   Signature Guaranty

     Fill in for registration of shares of DSS Common Stock, HDD Common Stock
and Security if to be issued otherwise than to the registered Holder.

_______________________________                _________________________________
(Name)                                         Social Security or Other Taxpayer
                                               Identification Number

_______________________________
(Address)

_______________________________

                                      -30-
<PAGE>

                          OPTION TO ELECT REDEMPTION
                           UPON A FUNDAMENTAL CHANGE

To:  Quantum Corporation

     The undersigned registered owner of this Security hereby irrevocably
acknowledges receipt of a notice from Quantum Corporation (the "Company") as to
the occurrence of a Fundamental Change with respect to the Company and requests
and instructs the Company to redeem the entire principal amount of this
Security, or the portion thereof (which is $1,000 or an integral multiple
thereof) below designated, in accordance with the terms of the Indenture
referred to in this Security at the redemption price, together with accrued
interest to, but excluding, such date, to the registered Holder hereof.

Dated: _______________                        _______________________________

                                              _______________________________
                                              Signature(s)

                                              Signature(s) must be guaranteed by
                                              a qualified guarantor institution
                                              with membership in an __ approved
                                              signature guarantee program
                                              pursuant to Rule 17Ad-15 under the
                                              Securities Exchange Act of 1934.

                                              _______________________________
                                              Signature Guaranty

Principal amount to be redeemed
(in an integral multiple of $1,000, if less than all):

_____________________________________________

NOTICE:  The signature to the foregoing Election must correspond to the Name as
written upon the face of this Security in every particular, without alteration
or any change whatsoever.

                                      -31-

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