Document:

QuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 4.3  

SR TELECOM INC.

— and — 

DDJ CAPITAL MANAGEMENT, LLC.

CANADIAN REGISTRATION RIGHTS AGREEMENT

DATED AS OF THE 22nd DAY OF AUGUST, 2005

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	 ARTICLE I	 	INTERPRETATION	 	1
	 	 1.1	 	Definitions	 	1
	 ARTICLE II	 	REGISTRATION RIGHTS	 	2
	 	 2.1	 	Demand Registrations	 	2
	 	 2.2	 	Piggy-Back Registration Rights	 	2
	 	 2.3	 	Registration Expenses	 	3
	 	 2.4	 	Short-Form Registrations	 	3
	 	 2.5	 	Restrictions on Demand Registrations	 	3
	 	 2.6	 	Selection of Underwriters	 	4
	 ARTICLE III	 	REGISTRATION PROCEDURES	 	4
	 	 3.1	 	Procedures	 	4
	 	 3.2	 	Other Sales	 	6
	 	 3.3	 	Obligations of Holder	 	6
	 ARTICLE IV	 	DUE DILIGENCE, INDEMNIFICATION	 	6
	 	 4.1	 	Preparation; Reasonable Investigation	 	6
	 	 4.2	 	Indemnification	 	6
	 ARTICLE V	 	GENERAL	 	8
	 	 5.1	 	No Inconsistent Agreements	 	8
	 	 5.2	 	Remedies	 	8
	 	 5.3	 	Amendments	 	8
	 	 5.4	 	Assignment	 	8
	 	 5.5	 	Counterparts	 	8
	 	 5.6	 	Severability	 	9
	 	 5.7	 	Delays or Omissions	 	9
	 	 5.8	 	Descriptive Headings	 	9
	 	 5.9	 	Governing Law	 	9
	 	 5.10	 	Notices	 	9
	 	 5.11	 	Termination	 	9

i

 
 

REGISTRATION RIGHTS AGREEMENT    
    

THIS AGREEMENT is dated as of the 22nd day of August, 2005. 

BETWEEN 

SR TELECOM INC., a corporation incorporated under the laws of Canada (the "Company"). 

        — and —

DDJ CAPITAL MANAGEMENT, LLC, a Massachusetts limited liability company. 

RECITALS:  

        WHEREAS contemporaneously with the execution of this agreement, the Company has completed a restructuring pursuant
to which certain funds and/or accounts that DDJ Capital Management, LLC manages or exercises control or direction over (collectively, "DDJ") will
receive approximately $25,203,525 10% secured convertible debentures due October 15, 2011 (the "Debentures"); and 

        WHEREAS the Debentures are convertible into common shares of the Company ("Common
Shares"); and 

        WHEREAS following the mandatory conversion of the Debentures contemplated under the terms of the Debentures, DDJ will hold approximately
24.25% of the Common Shares on an undiluted basis and approximately 22.75% of the Common Shares on a fully diluted basis; and 

        WHEREAS the Company has agreed to provide DDJ with the rights set out in this agreement as a result of DDJ's agreement to restructure the
Company's debt obligations; and 

        WHEREAS the Company and DDJ hereby agree that this Agreement shall govern the rights of DDJ to cause the Company to qualify for
distribution the Debentures and the Common Shares that would be held by DDJ upon its conversion of the Debentures; 

        NOW THEREFORE in consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties hereto agree as follows: 

 
 

ARTICLE I
  
    INTERPRETATION  
    

1.1   Definitions.

In
this Agreement, the following terms shall have the meanings set out below. 

"Commissions" means the securities commissions or other securities authorities in each of the provinces of Canada. 

"Demand Registration" shall have the meaning set out in Section 2.1. 

"Fully Diluted Common Shares" means collectively, Common Shares which are issued and outstanding and unissued Common Shares issuable upon the exercise
of any conversion or acquisition rights attached to securities of the Company ("convertible securities"). 

"Holder" means those funds and/or accounts which DDJ Capital Management, LLC manages or exercises control or direction over that are holders of
Debentures. 

"Person" means an individual, partnership, joint venture, trust, unincorporated association, unincorporated syndicate, corporation or a government or
any department or agency thereof. 

"Piggy-Back Registration" shall have the meaning set out in Section 2.2. 

"Registrable Securities" means: 

	(a)
	the
Debentures;

	(b)
	any
Common Shares; and 

 

	(c)
	any
securities of the Company issued in exchange for or in replacement of the Debentures or the Common Shares 

owned
by the Holder at the date hereof or thereafter. 

"Registration" means the qualification of Registrable Securities under any of the Securities Acts for distribution in any or all of the provinces of
Canada. 

"Registration Expenses" means all expenses (other than fees or commissions payable to an underwriter, investment banker, manager or agent in connection
with the distribution of the Registrable Securities) in connection with any Demand Registration or Piggy-Back Registration pursuant to this Agreement including, without limitation, the
following: 

	(a)
	all
fees, disbursements and expenses of counsel and auditors to the Company and the Holder;

	(b)
	all
expenses in connection with the preparation, translation, printing and filing of any preliminary prospectus, prospectus or any other offering document and any amendments and
supplements thereto and the mailing and delivering of copies thereof to any underwriters and dealers;

	(c)
	all
filing fees of any Commission;

	(d)
	all
transfer agents', depositaries' and registrars' fees and the fees of any other agent appointed by the Company in connection with the Demand Registration;

	(e)
	all
expenses relating to the preparation of certificates for the Registrable Securities; and

	(f)
	all
fees and expenses payable in connection with the listing of any Registrable Securities on each securities exchange or over the counter market on which the Common Shares are then
listed. 

"Securities Acts" means the applicable securities legislation of each of the provinces of Canada and all published regulations, policy statements,
orders, rules, rulings, communiqués and interpretation notes issued thereunder or in relation thereto, as the same may hereafter be amended or replaced. 

 
 

ARTICLE II
  
    REGISTRATION RIGHTS  
    

2.1   Demand Registrations.

At
any time and from time to time, the Holder may require the Company to effect a qualification under the Securities Acts of all or part of the Registrable Securities owned or over which the Holder
exercises control or direction for their distribution in any or all of the provinces of Canada, provided that the reasonably anticipated aggregate gross proceeds to be raised (before any underwriting
discounts and commissions) would be equal to or exceed $1,000,000 (such qualification being hereinafter referred to as a "Demand Registration"). Any
such request shall be in writing and shall specify the number and the class or classes of Registrable Securities to be sold (the "Designated Registrable
Securities"), the intended method of disposition and the jurisdictions in which the qualification is to be effected. 

2.2   Piggy-Back Registration Rights.

If
the Company proposes to effect a Registration of Common Shares, the Company will, at that time, give the Holder prompt written notice of the proposed Registration. Upon the written request of the
Holder given within three (3) Business Days after receipt of notice from the Company of the proposed Registration, the Company will use reasonable commercial efforts to, in conjunction with the
proposed Registration, cause to be included in such Registration all of the Common Shares held by the Holder that the Holder has requested to be included in such distribution pursuant to the
Securities Acts (such qualification of the Common Shares held by the Holder being hereinafter referred to as a "Piggy-Back Registration").
If any offering pursuant to this Section 2.2 involves an underwritten offering and the lead underwriter or underwriters advise the Company in writing that, in their opinion, acting reasonably,
the number of Common Shares requested by the Holder to be included in such offering either exceeds the number that can be sold in such offering within a price range acceptable to the 

2

 

Company
(the "Sale Number") or may materially and adversely affect the success of the offering, the Company will include in such offering: 

	(a)
	all
Common Shares that the Company proposes to qualify for its own account (the "New Common Shares"); and

	(b)
	to
the extent the number of New Common Shares is less than the Sale Number, such number of Common Shares requested to be included by the holder as is equal to the difference
between the number of New Common Shares and the Sale Number. 

2.3   Registration Expenses.

The
Company will pay all Registration Expenses in connection with a Demand Registration and/or a Piggy-Back Registration, provided that, in connection with any one Demand Registration or
any one Piggy-Back Registration, the Company shall not be liable for any of the Holder's legal fees in excess of $25,000. 

2.4   Short-Form Registrations.

If
at the time a Demand Registration is delivered or at the time that notice a Piggy-Back Registration is given, the Company has in force a receipt for its Annual Information Form from the
Commissions in all of the jurisdictions in which the Demand Registration is to be effected and meets the eligibility criteria to file a prospectus pursuant to the requirements of National
Instrument 44-101 or any successor, rule, regulation or similar instrument established from time to time by Commissions in Canada
("NI 44-101"), the Company will effect such Demand Registration or Piggy-Back Registration by way of a
short-form prospectus prepared pursuant to the NI 44-101. 

2.5   Restrictions on Demand Registrations.

	(a)
	The
Company shall not be obligated to effect more than two Demand Registrations hereunder while it does not meet the eligibility criteria set out in
NI 44-101 to file a short- form prospectus. There shall be no restriction on the number of Demand Registrations that may be requested at a time in which the Company
meets the eligibility requirements for a short-form prospectus filing pursuant to NI 44-101. Notwithstanding the foregoing, the Company shall not be obligated to effect
a Demand Registration by way of short-form prospectus more than once in any given six (6) month period. For the purposes of this subsection, a Demand Registration will not be
considered as having been effected until a final receipt has been issued in all jurisdictions for the prospectus pursuant to which the Registrable Securities are to be sold.

	(b)
	Notwithstanding
Section 2.1, the Company is not obligated to comply with a Holder's request for a Demand Registration for a period
(the "Standstill Period") ending on the earlier of:

	(i)
	90 days
following the date on which the Company gave notice (a "Standstill Notice") to the Holder that the
Company is in the course of offering Common Shares (or securities convertible into or carrying the right to acquire Common Shares), or that it intends to do so within 30 days of such
notice;

	(ii)
	45 days
following completion of the offering described in clause (i); and

	(iii)
	45 days
after the giving of the Standstill Notice if (1) in the case of an offering by way of prospectus, no preliminary prospectus has been filed by the
end of the 45 day period; and (2) in the case of an offering by way of private placement, binding subscription agreements have not been entered into by the end of the 45 day
period or an offering memorandum has not been distributed to potential purchasers by the end of the 45 day period; 

if,
in the opinion of the Company's investment dealer acting reasonably (with a copy of such written opinion to be supplied by the Company to the Holder), the sale of Registrable Securities pursuant
to such Demand Registration at the time and on the terms requested would materially and adversely affect the offering of Common Shares (or securities convertible into or carrying the right to
acquire Common Shares) undertaken or to be undertaken by the Company. The Company may not deliver a 

3

 

Standstill
Notice after receipt by the Company of a Demand Registration and may not give a Standstill Notice to the Holder for a period of 60 days following the termination of any Standstill
Period. 

2.6   Selection of Underwriters.  

Subject
to the approval of the Company, which approval shall not be unreasonably withheld, the Holder will have the sole right to select the investment banker(s) and manager(s) to
administer the offering in connection with the Demand Registration. 

2.7   Limitations on Registrations

Notwithstanding
any other provision of this Article 2, the Company shall not be required to effect a Demand Registration or a Piggy-Back Registration if the Company furnishes to the
Holder an opinion of independent counsel (acceptable to the Holder, acting reasonably) that the sale or disposition of the securities by the Holder to be included in a Demand Registration or a
Piggy-Back Registration would not be a distribution within the meaning of the Securities Acts applicable to such sale or disposition. 

 
 

ARTICLE III
  
    REGISTRATION PROCEDURES    
    

3.1   Procedures.

Upon
receipt of a request from the Holder pursuant to Section 2.1, the Company will effect a Demand Registration as requested. In particular, the Company will as expeditiously as possible: 

	(a)
	prepare
and file (in any event within 60 days after the request for Demand Registration has been delivered to the Company) in the English and, if required, French
languages, a preliminary prospectus under and in compliance with the Securities Acts in each jurisdiction in which the Demand Registration is to be effected and such other related documents as may be
necessary to be filed in connection with any such preliminary prospectus and shall, as soon as possible after any comments of the Commissions have been satisfied with respect thereto, prepare and file
under and in compliance with the Securities Acts a prospectus in the English and, if required, French languages, and receive receipts therefor and use its best efforts to cause a receipt to be issued
for such prospectus as soon as possible and shall take all other steps and proceedings that may be necessary in order to qualify the Designated Registrable Securities under the applicable Securities
Acts for distribution by registrants who comply with the relevant provisions of the Securities Acts (provided that, before filing all such documents referred to in this
Section 3.1(a), the Company will furnish to the counsel to the Holder copies thereof and otherwise comply with Section 4.1 hereof);

	(b)
	prepare
and file with the applicable Commissions in the jurisdictions in which the Demand Registration is to be effected such amendments and supplements to such preliminary prospectus
and prospectus as may be necessary to comply with the provisions of the applicable Securities Acts with respect to the distribution of Designated Registrable Securities, and to take such steps as are
necessary to maintain the qualification of such prospectus until the earlier of (i) the time at which the distribution of the Designated Registrable Securities is completed and (ii) six
months after the receipt for such prospectus has been issued by each of the applicable Commissions (provided that, before filing such documents, the Company will furnish to the counsel to the Holder
copies thereof and otherwise comply with Section 4.1 hereof);

	(c)
	furnish
to the Holder such number of copies of such preliminary prospectus, prospectus, and any amendment and supplement thereto (including any documents incorporated therein by
reference) and such other relevant documents as such Holder may reasonably request in order to facilitate the disposition of the Designated Registrable Securities owned by the Holder; 

4

 

	(d)
	cause
to be furnished to the Holder, the underwriter or underwriters of any offering and such other persons as the Holder may reasonably specify:

	(i)
	an
opinion of counsel to the Company addressed to such Holder and the underwriter or underwriters of such offering and dated the closing date of the offering as to the
Company's legal status and capacity, the Company's authorized share capital, the validity of the Designated Registrable Securities, the "eligibility for investment" of the Designated Registrable
Securities, the enforceability of any underwriting agreement to which the Company is a party, and the qualification of the Registrable Securities for sale;

	(ii)
	a
non-statutory "comfort" letter addressed to the underwriter or underwriters dated the date of the preliminary prospectus, the prospectus and the closing
date of the offering signed by the auditors of the Company and providing comfort in relation to financial information contained in the prospectus;

	(iii)
	if
the prospectus is filed in Quebec, opinions of Quebec counsel to the Company and the auditors of the Company addressed to such Holder and relating to the
translation of the preliminary prospectus and the prospectus, such opinions being dated the dates of the preliminary prospectus, prospectus and closing; and

	(iv)
	such
corporate certificates as are customarily furnished in securities offerings, and, in each case, covering substantially the same matters as are customarily covered
in such documents in the relevant jurisdictions and such other matters as such Holder may reasonably request;

	(e)
	immediately
notify the Holder of the happening of any event during the period in Section 3.1(b) as a result of which the preliminary prospectus or the prospectus, as
then in effect, would include an untrue statement of material fact or would omit any fact that is required to be stated or that is necessary to make any statement therein not misleading in light of
the circumstances in which it was made (other than facts or statements provided by the Holder or any underwriters);

	(f)
	otherwise
use its best efforts to comply with all applicable published instruments, policies, rules and regulations of the applicable Commissions and any stock exchange, automated
quotation system, and over the counter market on which the Designated Registrable Securities are then listed or quoted;

	(g)
	cause
all such Designated Registrable Securities to be listed on each securities exchange, automated quotation system, or over the counter market on which similar securities issued by
the Company are then listed;

	(h)
	provide
a transfer agent and registrar for such Designated Registrable Securities no later than the closing date of the offering;

	(i)
	enter
into an underwriting agreement with the underwriters for the offering, such agreement to contain such representations and warranties by the Company and such other terms and
provisions as are customarily contained in underwriting agreements with respect to secondary distributions and indemnification agreements consistent with Section 4.2 and such other
documents on such terms and conditions as are customary in secondary offerings and take all such other actions as permitted by law as the Holder or the underwriters, if any, reasonably request in
order to expedite or facilitate the disposition of the Designated Registrable Securities by the Holder; and

	(j)
	in
the event of the issuance of any order or ruling suspending the effectiveness of a prospectus receipt or of any order suspending or preventing the use of any prospectus or
suspending the qualification of any of the Designated Registrable Securities qualified by such prospectus for sale in any applicable Canadian provinces, the Company will notify the Holder of such
event and use its best efforts promptly to obtain the withdrawal of such order or ruling. 

The
Holder will not (until further notice) effect sales of Designated Registrable Securities or deliver any prospectus in respect of such sale after notification by the Company of any order or ruling
suspending the effectiveness of the prospectus or after notification by the Company under paragraph (e) hereof. 

5

 

3.2   Other Sales.

After
receipt by the Company of a Demand Registration, the Company will not without the prior written consent of the Holder, which will not be unreasonably withheld, authorize, issue or sell Common
Shares or securities convertible or exchangeable into or exercisable for such securities in any jurisdiction or agree to do so or publicly announce any intention to do so (except for securities issued
pursuant to any legal obligation in effect prior to the delivery of the Demand Registration) until a period of at least 90 days has elapsed from the date receipts are issued under all
Securities Acts applicable to the prospectus or 7.5 months after the date of the request for a Demand Registration, whichever shall first occur. 

3.3   Obligations of Holder.

In
connection with any Demand Registration, the Holder shall: 

	(a)
	provide
such information with respect to itself and the number of securities of the Company held by the Holder as may be reasonably required by the Company to comply with the
applicable Securities Acts in each jurisdiction in which the Demand Registration is to be effected;

	(b)
	if
required under applicable Securities Acts, execute any certificate forming part of a preliminary prospectus, prospectus or similar document to be filed with the applicable
Commissions;

	(c)
	immediately
notify the Company of the happening of any event during the period in Section 3.1(b), as a result of which the preliminary prospectus or the prospectus, as
in effect, would include an untrue statement of material fact or would omit any fact that is required to be stated or is necessary to make any statement therein not misleading in light of the
circumstances in which it was made insofar as such facts or statements relate to or were provided by the Holder; and

	(d)
	otherwise
use its best efforts not to breach all applicable published instruments, policies, rules and regulations of the applicable Commissions and any stock exchange, automated
quotation system, and over-the-counter market on which the Designated Registrable Securities are then listed or quoted. 

 
 

ARTICLE IV
  
    DUE DILIGENCE, INDEMNIFICATION    
    

4.1   Preparation; Reasonable Investigation.

In
connection with the preparation and filing of any preliminary prospectus or prospectus as herein contemplated, the Company will give the Holder and its underwriters, if any, and their respective
counsel, auditors and other representatives, the opportunity to participate in the preparation of such documents and each amendment thereof or supplement thereto, and shall insert therein such
material, furnished to the Company in writing, which in the reasonable judgment of the Holder and its counsel should be included, and will give each of them such reasonable and customary access to the
Company's books and records and such reasonable and customary opportunities to discuss the business of the Company with its officers and auditors as shall be necessary in the opinion of any such
Holder, such underwriters and their respective counsel, and to conduct all reasonable and customary due diligence which any such Holder, such underwriters and their respective counsel may reasonably
require in order to conduct a reasonable investigation for purposes of establishing a due diligence defence as contemplated by the Securities Acts and in order to enable such underwriters to execute
the certificate required to be executed by them in Canada for inclusion in each such document. 

4.2   Indemnification.

	(a)
	By
Company.    The Company agrees to indemnify, to the extent permitted by law, the Holder and each Person, if any, who participates as an
underwriter in the offering or sale of the Designated Registrable Securities, their respective officers and directors and each Person who controls such Holder or underwriter (within the meaning of any
applicable Securities Act) against all losses (excluding loss of profits), claims, damages, liabilities and expenses arising out of or based upon (i) any information or statement contained in
the preliminary prospectus, the prospectus or any amendment thereto which at the time and in light of the circumstances under which it was made contains a misrepresentation 

6

 

(as defined
in the applicable Securities Act); (ii) any omission to state in the preliminary prospectus or the prospectus any fact that was required to be stated in such document or
necessary to make any statement in such document not misleading in light of the circumstances under which it was made; (iii) any order made or inquiry, investigation or proceedings commenced or
threatened by any applicable Commission, court or other competent authority based upon any untrue statement or omission or any misrepresentation in the preliminary prospectus, the prospectus or any
amendment thereto or based upon any failure to comply with applicable securities laws (other than any failure by the Holder or the underwriters) preventing or restricting the trading in or the sale
and distribution of the Designated Registrable Securities pursuant to a Demand Registration; and (iv) non-compliance by the Company with any of the Securities Acts in connection
with a Demand Registration and the distribution effected thereunder, except insofar as (v) any information or statement referred to in clause (i), (ii) or (iii) of
this Section 4.2(a) has been furnished in writing to the Company by the Holder pursuant to Section 4.2(b) or the underwriters expressly for use therein or
(vi) caused by such Holder's or any underwriter's failure to deliver to a purchaser of Designated Registrable Securities a copy of the prospectus or any amendments or supplements thereto after
the Company has furnished such Holder with a sufficient number of copies of the same. 

	(b)
	By
Holder.    In connection with any Registration of Designated Registrable Securities, the Holder will indemnify the Company, its directors and
officers and each Person who controls the Company (within the meaning of any Securities Act) against any losses (excluding loss of profits), claims, damages, liabilities and expenses arising out of or
based upon (i) any untrue statement of material fact contained in the prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein
or necessary to make any statement therein not misleading, but only to the extent that such untrue statement, or omission is contained in any information so furnished in writing by such Holder,
pursuant to this Section 4.2(b), or (ii) any default by the Holder in respect of its obligations under Section 3.3 hereof.

	(c)
	Procedure.    Any
Person entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim
with respect to which it seeks indemnification and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist
with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel satisfactory to the indemnified party, acting reasonably. If such defense is assumed, the
indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An
indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by
such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim. No indemnifying party, without the express written consent of an indemnified party, may settle any claims.

	(d)
	Survival:    The
indemnification provided for under this Agreement will survive the expiry of this Agreement and will remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive any transfer of
securities pursuant thereto.

	(e)
	Contribution.    If
the indemnity and reimbursement obligation provided for in any paragraph of this Section is unavailable or insufficient to
hold harmless an indemnified party in respect of any losses (or actions or proceedings in respect thereof) referred to therein, then the indemnifying party shall contribute to the amount paid
or payable by the indemnified party as a result of such losses (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party or the other hand in connection with the statements or omissions which resulted in such losses, as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the indemnifying party or the indemnified party and 

7

 

the
parties' relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The parties hereto agree that it would not be just and equitable
if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to in the first sentence of this paragraph. The amount paid by an indemnified party as a result of the losses referred to in the first sentence of this paragraph shall be deemed to include
any legal and other expenses reasonable incurred by such indemnified party in connection with investigating or defending any Loss which is the subject of this paragraph. 

No
indemnified party guilty of fraudulent misrepresentation shall be entitled to contribution from the indemnifying party if the indemnifying party was not guilty of such fraudulent misrepresentation.
No contribution shall be made by an indemnifying party under circumstances where such party would not have been liable for indemnification under Section 4.2. Moreover, contribution by a Holder
of Designated Registrable Securities shall be limited in amount to the net amount of proceeds received by such Holder from the sale of such Designated Registrable Securities pursuant to such
prospectus. The provisions of this Section 4.2(e) shall remain in full force and effect, regardless of the investigation made by or on behalf of the beneficiaries of this
Section 4.2(e) and shall survive the transfer of Designated Registrable Securities by the Holders pursuant to Section 5.4 of this Agreement. 

 
 

ARTICLE V
  
    GENERAL    
    

5.1   No Inconsistent Agreements.  

        The Company represents and warrants to the Holder that it has not, and covenants with the Holder that it will not, enter into any agreement with respect to its
securities that is inconsistent with or violates the rights granted to the Holder pursuant to this Agreement. 

5.2   Remedies.  

        Any Person having rights under any provision of this Agreement will be entitled to enforce such rights specifically to recover damages caused by reason of any
breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or other security) for specific
performance and for other injunctive relief in order to enforce or prevent violation of the provisions of this Agreement. 

5.3   Amendments.  

        Except as otherwise provided herein, the provisions of this Agreement may only be amended with the prior written consent of the Company and the Holder. 

5.4   Assignment.  

        This Agreement and the rights and obligations of the parties hereto shall bind and enure to the benefit of each of the parties hereto. The Holder shall have the
right to transfer or assign any of its rights or obligations under this Agreement in connection with the transfer of all of its Debentures or Common Shares to a third party. 

5.5   Counterparts.  

        This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signature of more than one party, but all such
counterparts taken together will constitute one and the same Agreement. 

8

   5.6   Severability.  

        If one or more provisions of this Agreement are held to be unenforceable under applicable law, portions of such provisions or such provisions in their entirety,
to the extent necessary, shall be severed from this Agreement, and the balance of this Agreement shall be enforceable in accordance with its terms. 

5.7   Delays or Omissions.  

        No delay or omission to exercise any rights, power or remedy accruing to any party to this Agreement, upon the breach or default of the other party shall impair
any such rights, power or remedy of such non-breaching party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of the party of any provisions or conditions of this
Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to the
parties, shall be cumulative and not alternative. 

5.8   Descriptive Headings.  

        The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 

5.9   Governing Law.  

        All question concerning the construction, validity and interpretation of this Agreement and the exhibits and schedules hereto will be governed by the internal
law, and not the law of conflicts, of the Province of Ontario. 

5.10 Notices.  

        All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given when delivered personally or by facsimile transmission or mailed (registered or certified mail, postage prepaid). Such notices, demands and other communications will be
delivered to the parties at the respective addresses or facsimile numbers indicated below: 

	(a)   if to the Company:	 	SR Telecom Inc.

8150 TransCanada Highway

Montreal, Quebec

H4S 1M5
	
 	
 	

Attention: Chief Financial Officer

Facsimile: 514-956-4405
	
 	
 	

 
	(b)   if to DDJ, to:	 	DDJ Capital Management LLC

141 Linden Street, Suite S-4

Wellesley, MA 02482
	
 	
 	

Attention: Joshua L. McCarthy

Facsimile: (781) 283-8541

5.11 Termination.  

        This Agreement shall terminate on the date on which the Holder ceases to be a person described in paragraph (c) of the definition of "distribution"
in the Securities Act (Ontario). For the purposes of making a determination under this section, the Holder shall be deemed to have fully converted its
Debentures. 

9

 

        IN
WITNESS WHEREOF, the parties hereto have caused the agreement to be duly executed as of the date first above written. 

	 	 	SR TELECOM INC.
	
 	
 	

By:	

/s/  DAVID L. ADAMS      
 Name: David L. Adams

Title: Sr. VP Finance and CFO
	
 	
 	

 	

 
	 	 	DDJ CAPITAL MANAGEMENT, LLC, on behalf of certain funds and/or accounts that it manages and/or advises
	
 	
 	

By:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title: Member

10

QuickLinks

TABLE OF CONTENTS

REGISTRATION RIGHTS AGREEMENT

ARTICLE I INTERPRETATION

ARTICLE II REGISTRATION RIGHTS

ARTICLE III REGISTRATION PROCEDURES

ARTICLE IV DUE DILIGENCE, INDEMNIFICATION

ARTICLE V GENERALQuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 4.4  

Registration Rights Agreement

by and among

SR Telecom Inc.

and

The Parties Specified on

the Signature Pages Hereof

Dated as of August     , 2005

  

 
 

SR TELECOM INC.
  
    REGISTRATION RIGHTS AGREEMENT    
    

        This REGISTRATION RIGHTS AGREEMENT (this "Agreement") dated as of
August    , 2005 is made and entered into among SR Telecom Inc., a Canadian corporation (together with its successors and assigns, the
"Company"), and holders (collectively, the "Holders") of 10% Secured Convertible Debentures due
October 15, 2011 (the "Debentures") specified on the signature pages hereof. Capitalized terms, unless otherwise specifically identified,
have the meanings set forth in Section 12. 

        WHEREAS,
the Holders simultaneously as of the date hereof have or will have received the Debentures in exchange for 8.15% Debentures due August 31, 2005 pursuant to an exchange
offer and solicitation of consents launched by the Company on July 19, 2005 (the "Exchange"); and 

        WHEREAS,
in connection with the Exchange, the Company desires to grant the Holders certain registration rights with respect to the Debentures and the underlying common shares of the
Company into which the Debentures are convertible (the "Shares"). 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows: 

1.    SHELF REGISTRATION. 

        (a)   Filing
of Primary Shelf Registration Statement 

          (i)  (x) Subject
to clause (y) below, the Company shall comply with all the provisions of Sections 4(a) to 4(k) and shall
use reasonable best efforts to file with the Commission within thirty (30) days of the date hereof, and thereafter shall use reasonable best efforts to cause to be declared effective within one
hundred twenty (120) days of the date hereof, a Primary Shelf Registration Statement, covering all of the Primary Registrable Securities, and relating to the offer and sale of the Primary
Registrable Securities, by the holders of the Primary Registrable Securities from time to time in accordance with the methods of distribution determined by the Holders in their sole reasonable
discretion (but not including an underwritten offering) and set forth in the Primary Shelf Registration Statement. 

        (y)   Following
delivery of notice to all holders of Primary Registrable Securities, the Company may postpone for up to fifteen (15) Business days the effectiveness of
the Primary Shelf Registration Statement if in the good faith judgment of the board of directors of the Company, the effectiveness of the Primary Shelf Registration Statement or applicable securities
laws (A) would reasonably be expected to have a material adverse effect on any proposed financing or recapitalization of the Company or pending negotiations relating to a merger, consolidation,
acquisition or similar transaction or (B) would require the Company to disclose material non-public information ("Non-Public
Information") and the disclosure of such Non-Public Information would materially and adversely affect the business and operations of the Company;
provided, however, that immediately following such postponement, the Company shall request effectiveness of the Primary Shelf Registration
Statement. 

        (z)   The
Company shall name each Holder that delivers a properly completed and signed Notice and Questionnaire to the Company as a "selling shareholder" in the Primary Shelf
Registration Statement. A Holder of Primary Registrable Securities may include such securities in the Primary Shelf Registration Statement only if the Holder sends by first-class registered mail or by
courier with delivery confirmation (or, at the option of the Company, by facsimile), a properly completed Notice and Questionnaire attached hereto as Exhibit A to the Company on
or before the seventh Business Day prior to the initial effectiveness of the Primary Shelf Registration Statement. The Company shall distribute a Notice and Questionnaire to a Holder that is a
transferee of Primary Registrable Securities upon the request of such transferee Holder given in accordance with Section 13(a) hereof. 

        (I)   Following
the effectiveness of the Primary Shelf Registration Statement, upon receipt of a completed Notice and Questionnaire from a Holder, the Company will, as
promptly as practicable, but in any event within ten (10) Business Days after its receipt thereof, file any supplements to the related prospectus or file any post-effective
amendment to the Primary Shelf 

1

 

Registration
Statement that is required by applicable law to cause a Holder to be named as a selling shareholder in the Primary Shelf Registration Statement and permit such Holder to deliver the
prospectus to purchasers of Primary Registrable Securities. The Company shall use its reasonable best efforts to cause any such post-effective amendment to become effective under the
Securities Act as promptly as is practicable. 

        (II)  Each
Holder as to which the Primary Shelf Registration Statement is being effected shall furnish promptly to the Company (A) such other information as the
Company may reasonably request for use in connection with the Primary Shelf Registration Statement or prospectus or in any application to be filed with
or under state securities laws and (B) all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not misleading. 

         (ii)  (x) Subject
to clause (y) below, the Company shall keep the Primary Shelf Registration Statement continuously effective in order to permit any
prospectus forming part thereof to be used by the holders of the Primary Registrable Securities covered thereby for a period ending on the earlier of (A) the sale pursuant to the Primary Shelf
Registration Statement of all of the Primary Registrable Securities, (B) the expiration of the holding period applicable to the Primary Registrable Securities held by non-affiliates
of the Company under Rule 144(k) under the Securities Act, or any successor provision or (C) the sale to the public pursuant to Rule 144 (or any similar provision
then in force, but not Rule 144A) of all of the Primary Registrable Securities, such period being called the "Primary Shelf Registration Effectiveness
Period". 

        (y)   The
Company may, by notice given to all holders of all Primary Registrable Securities, require such holders not to make any sale of Primary Registrable Securities
pursuant to the Primary Shelf Registration Statement if, in the reasonable good faith judgment of the board of directors of the Company, (A) securities laws applicable to such sale would
require the Company to disclose Non-Public Information and (B) the disclosure of such Non-Public Information would reasonably be expected to have a material adverse
effect on the business or operations of the Company or any proposed financing or recapitalization of the Company or pending negotiations relating to a merger, consolidation, acquisition or similar
transaction. In the event that sales under the Primary Shelf Registration Statement are suspended because of the obligation to disclose Non-Public Information, the Company will notify the
holders of Primary Registrable Securities promptly upon such Non-Public Information being included by the Company in a filing with the Commission, being otherwise disclosed to the public
(other than through the actions of a holder of Primary Registrable Securities) or ceasing to be material to the Company, and upon such notice being given by the Company, the holders of Primary
Registrable Securities shall again be entitled to sell Primary Registrable Securities pursuant to the Primary Shelf Registration Statement. Notwithstanding the foregoing, the right of the Company
pursuant to this clause (y) to require the Holders to suspend sales under such Primary Shelf Registration Statement shall not extend for more than forty-five
(45) consecutive days and shall not exceed ninety (90) total days in any rolling period of twelve consecutive months during which the Primary Registrable Securities are saleable pursuant
to a registration statement; provided, however, that the period of time, if any, used by the Company pursuant to
Section 1(a)(i)(y) to delay the filing or effectiveness of the Primary Shelf Registration Statement shall be counted towards this ninety (90) day period. 

        (b)   Filing
of Secondary Shelf Registration Statement 

          (i)  (x) Subject
to clause (y) below, the Company shall comply with all the provisions of Sections 4(a) to 4(k) and shall
use reasonable best efforts to file with the Commission within forty-five (45) days of the date of issuance by the Company of PIK Debentures, and thereafter shall cause to be
declared effective within one hundred thirty-five (135) days of the date of issuance by the Company of such PIK Debentures, a Secondary Shelf Registration Statement, covering all of
the Secondary Registrable Securities relating to such issuance of PIK Debentures, and relating to the offer and sale of the Secondary Registrable Securities by the holders of the Secondary Registrable
Securities from time to time in accordance with the methods of distribution determined by the Holders in their sole reasonable discretion (but not including an underwritten offering) and set
forth in the Secondary Shelf Registration Statement. 

2

 

        (y)   Following
delivery of notice to all holders of Secondary Registrable Securities, the Company may postpone for up to thirty (30) Business Days the effectiveness of
a Secondary Shelf Registration Statement if in the good faith judgment of the board of directors of the Company, the effectiveness of a Secondary Shelf Registration Statement or applicable securities
laws (A) would reasonably be expected to have a material adverse effect on any proposed financing or recapitalization of the Company or pending negotiations relating to a merger, consolidation,
acquisition or similar transaction or (B) would require the Company to disclose material Non-Public Information and the disclosure of such Non-Public Information would
materially and adversely affect the business and operations of the Company; provided, however, that immediately following such postponement,
the Company shall request effectiveness of such Secondary Shelf Registration Statement. 

        (z)   The
Company shall name each Holder that delivers a properly completed and signed Notice and Questionnaire to the Company as a "selling shareholder" in the Secondary
Shelf Registration Statement. A Holder of Secondary Registrable Securities may include such securities in a Secondary Shelf Registration Statement only if the Holder sends by first-class registered
mail or by courier with delivery confirmation (or, at the option of the Company, by facsimile), a properly completed Notice and Questionnaire attached hereto as Exhibit A to the
Company on or before the seventh Business Day prior to the initial effectiveness of such Secondary Shelf Registration Statement. The Company shall distribute a Notice and Questionnaire to a Holder
that is a transferee of Secondary Registrable Securities upon the request of such transferee Holder given in accordance with Section 13(a) hereof. 

        (I)   Following
the effectiveness of a Secondary Shelf Registration Statement, upon receipt of a completed Notice and Questionnaire from a Holder, the Company will, as
promptly as practicable, but in any event within ten (10) Business Days after its receipt thereof, file any supplements to the related prospectus or file any post-effective
amendment to a Secondary Shelf Registration Statement that is required by applicable law to cause a Holder to be named as a selling shareholder in such Secondary Shelf Registration Statement and
permit such Holder to deliver the prospectus to purchasers of Secondary Registrable Securities. The Company shall use its reasonable best efforts to cause any such post-effective amendment
to become effective under the Securities Act as promptly as is practicable. 

        (II)  Each
Holder as to which a Secondary Shelf Registration Statement is being effected shall furnish promptly to the Company (A) such other information as the
Company may reasonably request for use in connection with such Secondary Shelf Registration Statement or prospectus or in any application to be filed
with or under state securities laws and (B) all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not misleading. 

         (ii)  (x) Subject
to clause (y) below, the Company shall keep such Secondary Shelf Registration Statement continuously effective in order to permit any
prospectus forming part thereof to be used by the holders of the Secondary Registrable Securities covered thereby for a period ending on the earlier of (A) the sale pursuant to such Secondary
Shelf Registration Statement of all of the Secondary Registrable Securities, (B) the expiration of the holding period applicable to the Secondary Registrable Securities held by
non-affiliates of the Company under Rule 144(k) under the Securities Act, or any successor provision or (C) the sale to the public pursuant to Rule 144
(or any similar provision then in force, but not Rule 144A) of all of the Secondary Registrable Securities, such period being called the "Secondary Shelf
Registration Effectiveness Period". 

        (y)   The
Company may, by notice given to all holders of all Secondary Registrable Securities, require such holders not to make any sale of Secondary Registrable Securities
pursuant to a Secondary Shelf Registration Statement if, in the reasonable good faith judgment of the board of directors of the Company, (A) securities laws applicable to such sale would
require the Company to disclose Non-Public Information and (B) the disclosure of such Non-Public Information would reasonably be expected to have a material adverse
effect on the business or operations of the Company or any proposed financing or recapitalization of the Company or pending negotiations relating to a merger, consolidation, acquisition or similar
transaction. In the event that sales under the Secondary Shelf Registration Statement are suspended because of the obligation to disclose Non-Public Information, 

3

 

the
Company will notify the holders of Secondary Registrable Securities promptly upon such Non-Public Information being included by the Company in a filing with the Commission, being
otherwise disclosed to the public (other than through the actions of a holder of Secondary Registrable Securities) or ceasing to be material to the Company, and upon such notice being given by the
Company, the holders of Secondary Registrable Securities shall again be entitled to sell Secondary Registrable Securities pursuant to such Secondary Shelf Registration Statement. Notwithstanding the
foregoing, the right of the Company pursuant to this clause (y) to require the Holders to suspend sales under such Secondary Shelf Registration Statement shall not extend for more
than forty-five (45) consecutive days and shall not exceed ninety (90) total days in any rolling period of twelve (12) consecutive months during which the Secondary
Registrable Securities are saleable pursuant to a registration statement; provided, however, that the period of time, if any, used by the
Company pursuant to Section 1(b)(i)(y) to delay the filing or effectiveness of the Secondary Shelf Registration Statement shall be counted towards this ninety (90) day
period. 

        (c)   Holder
Information.    Notwithstanding any other provisions hereof, the Company will ensure that (A) any Shelf Registration
Statement and any amendment thereto and any prospectus forming part thereof and any supplement thereto complies in all material respects with the Securities Act and the rules and regulations of the
Commission thereunder, (B) any Shelf Registration Statement and any amendment thereto, at the time each become effective (in either case, other than with respect to information included
therein in reliance upon or in conformity with information furnished in writing or confirmed in writing to the Company by or on behalf of the holder of such Registrable Securities specifically for use
therein (the "Holder Information")), does not contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and (C) any prospectus forming part of any Shelf Registration Statement, and any supplement to such prospectus
(in either case, other than with respect to Holder Information), as of the date of each, does not contain an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

        (d)   Expenses.    The
Company will pay all Registration Expenses incurred in connection with a Shelf Registration Statement effected
pursuant to Section 1(a) or Section 1.(b). 

        (e)   Registration
Statement Form.    A Shelf Registration Statement will be on such appropriate registration form promulgated by the
Commission as may be selected by the Company and will permit the disposition of such Registrable Securities in accordance with the intended method or methods specified in their request for such
registration. If, during the period in which the Company is obligated to maintain the Shelf Registration Statement in effect, the Company becomes qualified for registration on
Form F-3 or any comparable or successor form or forms for offers and sales by Holders, then, the Company may, in its discretion, terminate the Shelf Registration
Statement; provided, however, the Company may not terminate the Shelf Registration Statement until the
Form F-3 registration statement or any comparable or successor form or forms is in full force and effect. The obligations of the Company with respect to maintenance of such
registration statement and prospectus included therein are subject to the terms of this Agreement and such new registration statement will be deemed to be a "Shelf Registration Statement" for purposes
of this Agreement. 

2.    DEMAND REGISTRATION. 

        (a)   Request
by Holders.    If the Company receives at any time after the expiration of the Primary Shelf Registration Effectiveness
Period a written request from DDJ that the Company register Registrable Securities held by DDJ (a "Demand Request"), then the Company shall: 

          (i)  use
reasonable best efforts to cause to be filed or confidentially submitted, as soon as practicable, but in any case within forty-five (45) days of
the date of delivery to the Company of the Demand Request, a registration statement covering such Registrable Securities which the Company has been so requested to register by DDJ, providing for the
registration under the Securities Act of such Registrable Securities to the extent necessary to permit the disposition of such Registrable Securities in accordance with the intended method of
distribution specified in such Demand Request; and 

4

 

         (ii)  use
its reasonable best efforts to have such registration statement declared effective by the Commission as soon as practicable thereafter. 

        (iii)  Refrain
from filing any other registrations (other than a Secondary Shelf Registration Statement) with respect to any other securities of the Company until such date
which is forty-five (45) days following effectiveness of the registration statement filed in response to the Demand Request. 

        (b)   Postponements.    Following
delivery of a Demand Request, the Company may postpone for up to fifteen (15) Business days the
filing or effectiveness of a registration statement effected pursuant to this Section if in the good faith judgment of the board of directors of the Company, the filing or effectiveness of the
registration statement or applicable securities laws (A) would reasonably be expected to have a material adverse effect on any proposed financing or recapitalization of the Company or pending
negotiations relating to a merger, consolidation, acquisition or similar transaction or (B) would require the Company to disclose Non-Public Information and the disclosure of such
Non-Public Information would materially and adversely affect the business and operations of the Company; provided, however, that
immediately following such postponement, the Company shall file or request effectiveness of the registration statement effected pursuant to this Section. 

        (c)   Effective
Registration Statement.    A registration requested pursuant to this Section shall not be deemed to have been effected
(i) unless a registration statement with respect thereto has become effective (unless a substantial cause of the failure of such registration statement to become effective shall be attributable
to DDJ) and remained effective in compliance with the provisions of the Securities Act with respect to the disposition of all Primary Registrable Securities covered by such registration statement
until such time (not to exceed 270 days) as all of such Registrable Securities have been disposed of in accordance with the intended methods of disposition by DDJ set forth in such
registration statement; or (ii) if, after it has become effective, such registration is interfered with by any stop order, injunction or other order or requirement of the Commission or other
governmental agency or court for any reason not attributable to DDJ. 

        (d)   Limitations
on Demand Requests.    DDJ shall have the rights to make up to two (2) Demand Requests pursuant to this Section
to the Company. The Company shall not be required to comply with a Demand Request unless the reasonably anticipated aggregate gross proceeds (before any underwriting discounts and commissions) would
equal or exceed US$2,000,000. DDJ may not make a Demand Request if it is able to sell its Primary Registrable Securities pursuant to Rule 144(k) under the Securities Act, or any
successor provision, without any limitations. 

        (e)   Cancellation
of Registration.    DDJ shall have the right to cancel a proposed registration of Primary Registrable Securities
pursuant to this Section 2 when the request for cancellation is based upon material adverse information relating to the Company that is different from the information known by DDJ at the time
of the Demand Request. Such cancellation of a registration shall not be counted as one of the two (2) Demand Requests and notwithstanding anything to the contrary in this Agreement, the Company
shall be responsible for the expenses of DDJ incurred in connection with the registration prior to the time of cancellation. 

        (f)    Registration
Expenses.    The Company will pay all Registration Expenses incurred in connection with each registration effected in
accordance with this Section. 

        (g)   Suspension.    The
Company may, by notice given to DDJ, require DDJ not to make any sale of Registrable Securities pursuant to a
registration statement if, in the reasonable good faith judgment of the board of directors of the Company, (A) securities laws applicable to such sale would require the Company to disclose
Non-Public Information and (B) the disclosure of such Non-Public Information would reasonably be expected to have a material adverse effect on the business or operations
of the Company or any proposed financing or recapitalization of the Company or pending negotiations relating to a merger, consolidation, acquisition or similar transaction. In the event that sales
under the registration statement are suspended because of the obligation to disclose Non-Public Information, the Company will notify DDJ promptly upon such Non-Public
Information being included by the Company in a filing with the Commission, being otherwise disclosed to the public (other than through the actions of DDJ) or ceasing to be material to the Company, and
upon such notice being given by the Company, DDJ shall again be entitled to sell Registrable Securities pursuant to such registration statement. Notwithstanding the foregoing, the right of the Company
pursuant to this clause (g) to require DDJ to suspend sales under such registration statement shall not extend for more than 

5

 

forty-five
(45) consecutive days and shall not exceed ninety (90) total days in any rolling period of twelve (12) consecutive months during which the Registrable
Securities are saleable pursuant to a registration statement; provided, however, that the period of time, if any, used by the Company pursuant
to Section 2(b) to delay the filing or effectiveness of the registration statement shall be counted towards this ninety (90) day period. 

3.    FORM F-3 REGISTRATION. 

        (a)   Request
by DDJ.    After the expiration of the Primary Shelf Registration Effectiveness Period, DDJ may request at any time that
the Company file a registration statement under the Securities Act on Form F-3 (or similar or successor form) covering the sale or other distribution of all or any
portion of the Registrable Securities held by DDJ pursuant to Rule 415 under the Securities Act ("Form F-3 Demand") if
(i) the reasonably anticipated aggregate gross proceeds (before any underwriting discounts and commissions) would equal or exceed US$1,000,000, (ii) the Company is a registrant qualified
to use Form F-3 (or any similar or successor form) to register such Registrable Securities and (iii) the plan of distribution of the Registrable Securities is other
than pursuant to an underwritten public offering. If such conditions are met, the Company shall use its reasonable best efforts to register under the Securities Act on Form F-3
(or any similar or successor form) at the earliest practicable date, for sale in accordance with the method of disposition specified in the Form F-3 Demand, the number
of Registrable Securities specified in such Form F-3 Demand. In connection with a Form F-3 Demand, the Company agrees to include in the prospectus
included in any registration statement on Form F-3, such material describing the Company and intended to facilitate the sale of securities being so registered as is reasonably
requested for inclusion therein by DDJ, whether or not the rules applicable to preparation of Form F-3 require the inclusion of such information. 

        (b)   Postponements.    Following
delivery of a Form F-3 Demand by DDJ, the Company may postpone for up
to forty-five (45) days the filing or effectiveness of a registration statement effected pursuant to this Section if in the good faith judgment of the board of directors of the
Company, the filing or effectiveness of a registration statement or applicable securities laws (A) would reasonably be expected to have a material adverse effect on any proposed financing or
recapitalization of the Company or pending negotiations relating to a merger, consolidation, acquisition or similar transaction or (B) would require the Company to disclose
Non-Public Information and the disclosure of such Non-Public Information would materially and adversely affect the business and operations of the Company;
provided, however, that such right to delay or defer a Form F-3 demand shall be exercised by the Company not
more than twice in any twelve (12) month period and during such time the Company may not file a registration statement for securities to be issued and solely for its own account or for
that of any other holders. Upon the expiration of such forty-five (45) day period, or earlier upon such Non-Public Information being included by the Company in a filing
with the Commission, being otherwise disclosed to the public (other than through the actions of a holder of Registrable Securities) or ceasing to be material to the Company, the Company will as soon
as possible file or have declared effective such registration statement of Form F-3. Form F-3 Demands will not be deemed to be Demand Requests as described
in Section 2 hereof and DDJ shall have the right to request an unlimited number of Form F-3 Demands. Notwithstanding the foregoing, the Company shall not be obligated
to file more than one (1) registration statement on Form F-3 pursuant to this Section 3 in any given six (6) month period. 

        (c)   Registration
Expenses.    The Company will pay all Registration Expenses incurred in connection with each registration effected in
accordance with this Section. 

4.    REGISTRATION PROCEDURES. 

        If
and whenever the Company is required to effect the registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company will use its reasonable
best efforts to effect the
registration and sale of such Registrable Securities in accordance with the intended method of disposition thereof. Without limiting the foregoing, the Company in each such case will: 

        (a)   As
far in advance as reasonably practical before filing a registration statement or any amendment thereto, the Company will furnish to the holders of the Registrable
Securities included in such registration statement copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits), 

6

 

and
any such holder shall have three Business Days to object to any Holder Information contained therein and the Company will make the corrections reasonably requested by such Holder with respect to
such information; 

        (b)   Subject
to Section 1(a)(ii), 1(b)(ii) and paragraph (f) below, use its reasonable best efforts to prepare and file with the Commission such
amendments and supplements to such registration statement and any prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration statement and to comply
with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such registration statement, in accordance with the intended methods of disposition
thereof or until the Shelf Registration Effectiveness Period has ended; 

        (c)   promptly
notify each holder of Registrable Securities included on a registration statement (and the underwriters, if any): 

          (i)  when
such registration statement or any prospectus used in connection therewith, or any amendment or supplement thereto, has been filed and, with respect to such
registration statement or any post-effective amendment thereto, when the same has become effective; 

         (ii)  of
the notification to the Company by the Commission of the issuance of any stop order suspending the effectiveness of such registration statement, or of any order
preventing or suspending the use of any preliminary prospectus; and 

        (iii)  of
the receipt by the Company of any notification with respect to the suspension of the qualification or the exemption from qualification of any Registrable Securities
for sale under the applicable securities or blue sky laws of any jurisdiction or the initiation of any proceeding for such purpose; 

        (d)   furnish
to each holder of Registrable Securities covered by such registration statement, not later than two (2) Business Days after filing with the Commission,
such number of copies of the prospectus contained in such registration statement (including any summary prospectus and prospectus supplements) that has been declared effective and any other prospectus
filed under Rule 424 promulgated under the Securities Act relating to such holder's Registrable Securities as such seller may reasonably request to facilitate the disposition of its Registrable
Securities; 

        (e)   use
its reasonable best efforts to register or qualify all Registrable Securities covered by such registration statement under such other securities or blue sky laws of
such jurisdictions as each holder thereof may reasonably request, to keep such registration or qualification in effect for so long as such registration statement remains in effect, and to take any
other action which may be reasonably necessary or advisable to enable such holder to consummate the disposition in such jurisdictions of the Registrable Securities owned by such holder, except that
the Company shall not for any such purpose be required (i) to qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this
paragraph (e) be obligated to be so qualified, (ii) to subject itself to taxation in any such jurisdiction or (iii) to consent to general service of process in any
jurisdiction unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act or applicable rules or regulations thereunder; 

        (f)    promptly
notify each holder of Registrable Securities covered by such registration statement, at any time when a prospectus relating thereto is required to be delivered
under the Securities Act, of the happening of any event, the existence of any condition or any information becoming known as a result of which any prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and at the request of any such holder promptly prepare and furnish to such holder a reasonable number of copies of a supplement to or an
amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus shall not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, the Company shall not be required to furnish such supplement or amendment at any time that sales of Registrable Securities
are suspended under the circumstances described in Section 1(a)(ii)(y), 1(b)(ii)(y) or 2(g) for as long as such sales are suspended; 

7

 

        (g)   otherwise
use its reasonable best efforts to comply with all applicable rules and regulations of the Commission, and make available to its securityholders, as soon as
reasonably practicable, an earnings statement of the Company which complies with the provisions of Rule 158 of the Securities Act; 

        (h)   make
available for inspection by any Holder and any attorney, accountant or other agent retained by any such Holder (collectively, the
"Inspectors"), all financial and other records, pertinent corporate documents and properties of the Company (collectively, the
"Records") as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company's officers, directors,
employees and its counsel and its subsidiaries to supply all information reasonably requested by any such Inspector in connection with such registration statement; provided that nothing in this
Agreement will require the waiver of any privilege or the disclosure of any information that would result in any such waiver. Records which the Company determines, in good faith, to be confidential
and which it notifies the Inspectors are confidential will not be disclosed by the Inspectors unless (i) the release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction, or (ii) the information in such Records has been made generally available to the public; provided,
however, that prior notice will be provided as promptly as practicable to the Company of the potential disclosure of any information by such Inspector pursuant to
clause (i) of this sentence in order to permit the Company to obtain a protective order (or to waive the provisions of this paragraph). The Company may request the Inspectors
enter into a standard confidentiality agreement to this effect prior to furnishing any confidential information. The seller of Registrable Securities agrees that it will, upon learning that disclosure
of such Records is sought in a court of competent jurisdiction, give notice to the Company and allow the Company, at the Company's expense, to undertake appropriate action to prevent disclosure of the
Records deemed confidential; 

        (i)    provide
a transfer agent and a registrar for all Registrable Securities covered by such registration statement not later than the effective date of such registration
statement; 

        (j)    provide
a CUSIP number for all Registrable Securities not later than the effective date on which a registration pursuant to this Agreement is effected; and 

        (k)   in
the case of an Underwritten Offering, enter into an underwriting agreement and take all such other actions in connection therewith in order to expedite and facilitate
the disposition of such Registrable Securities, in each case as the underwriters determine is reasonable and customary in transactions of this kind, and in connection therewith: (1) make such
representations and warranties to the underwriters in form, substance and scope as are customarily made by issuers to underwriters in secondary underwritten offerings; (2) obtain opinions of
counsel to the Company (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the underwriters of such Registrable Securities and shall cover the matters
customarily covered in opinions requested in secondary underwritten offerings); (3) obtain "cold comfort" letters from the independent public accountants of the Company addressed to the
underwriters, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with secondary underwritten offerings; and
(4) deliver such documents and certificates as may be reasonably requested by the managing underwriters to evidence compliance with clause (1) above and with any customary
conditions contained in the underwriting agreement or other agreement entered into by the Company in respect of the relevant offering. 

        The
Company may require each holder of Registrable Securities as to which any registration is being effected to, and each such holder, as a condition to including Registrable Securities
in such registration, shall, furnish the Company with such information and affidavits regarding such holder and the distribution of such securities as the Company may from time to time reasonably
request in writing in connection with such registration. 

        Each
holder of Registrable Securities agrees that upon receipt of any notice from the Company of the happening of any event of the kind described in paragraph (f), such
holder will forthwith discontinue such holder's disposition of Registrable Securities pursuant to the registration statement relating to such Registrable Securities until such holder's receipt of the
copies of the supplemented or amended prospectus contemplated by paragraph (f) and, if so directed by the Company, will deliver to the Company or destroy all copies, other than permanent
file copies, then in such holder's possession of the prospectus relating to such Registrable Securities current at the time of receipt of such notice. 

8

 

5.    UNDERWRITTEN OFFERINGS. 

        (a)   If
the Company at any time proposes to register any of its securities in a registration pursuant to which such securities are to be distributed by or through one or more
underwriters (other than in the case of the Primary Shelf Registration Statement or a Secondary Shelf Registration Statement), the Company will, subject to the provisions of
Section 5(b), use its reasonable best efforts, if requested by any holder of Registrable Securities, to arrange for such underwriters to include the Registrable Securities to be offered
and sold by Holders among the securities to be distributed by such underwriters, and such holders shall be obligated to sell their Registrable Securities in such registration through such underwriters
on the same terms and conditions as apply to the other securities to be sold by such underwriters in connection with such registration. The holders of Registrable Securities to be distributed by such
underwriters shall be parties to a customary underwriting agreement between the Company and such underwriter or underwriters and shall make customary representations and warranties regarding such
holder, its ownership of securities being registered on its behalf, its ability to consummate the transaction and any other representations required by law; provided,
however that no holder of Registrable Securities shall be required to make any representations or warranties with respect to the Company or any other holder. No Holder may
participate in any Underwritten Offering unless such holder (i) agrees to sell its Registrable Securities on the basis reasonably provided in any underwriting arrangements approved by the
Company; and (ii) completes and executes all questionnaires, powers of attorney, reasonable and customary indemnities, lock-up agreements and other documents reasonably required
under the terms of such underwriting arrangements. If any Holder disapproves of the terms of an underwriting, such holder may elect to withdraw therefrom and from such registration by notice to the
Company and the Managing Underwriter, and each of the remaining Holders of the Company and any other holder shall be entitled to increase proportionately the number of Registrable Securities being
registered. 

        (b)   Priority
in Cutback Registrations.    If a registration effected in accordance with this Section becomes a Cutback Registration,
the Company will include in such registration, to the extent of the amount or kind of securities which the Managing Underwriter advises the Company can be sold in such offering, (1) first, the
securities proposed by the Company or the other holders, as the case may be, to be sold for its or their respective account and then (2) any Registrable Securities requested to be included in
such registration by the Holders hereunder (or their successors or assigns), in the case of clause (1), pro rata on the basis of the number of securities proposed by the
Company or other holders, as the case may be, to be sold for its or their respective account and in the case of clause (2), pro rata on the basis of the number of Registrable
Securities requested to be included by the Holders hereunder (or their successors or assigns). 

6.    HOLDBACK AGREEMENTS. 

        If
and to the extent requested by the Managing Underwriter (such request to be made at least five (5) Business Days in advance of the beginning of the holdback period), each
holder of Registrable Securities agrees, to the extent permitted by law, not to effect any public sale or distribution (including a sale under Rule 144) of Registrable Securities, or securities
convertible into or exchangeable or exercisable for Registrable Securities, during the 90 days after the effective date of any registration statement filed by the Company in connection with an
Underwritten Offering of common shares (or securities convertible into or exercisable or exchangeable for common shares) on behalf of the Company (or for such shorter period of time as
is sufficient and appropriate, in the opinion of the Managing Underwriter, in order to complete the sale and distribution of the securities included in such registration), except as part of such
registration statement, whether or not such holder participates in such registration and each such holder of Registrable Securities shall sign a customary agreement with the Managing Underwriter with
respect to the matters set forth above to the extent requested by the Managing Underwriter. These restrictions in this Section shall only apply to the holders of Registrable Securities in connection
with any registration statement filed by the Company in connection with a primary offering of common stock on behalf of the Company and only to the extent that all other holders of Registrable
Securities, executive officers of the Company, directors of the Company, all shareholders that are an Affiliate of a director of the Company and all beneficial holders of 10% or more of the Company's
outstanding common shares agree to or are bound by the same restrictions. 

9

   7.    INDEMNIFICATION. 

        (a)   Indemnification
by the Company.    The Company shall, to the full extent permitted by law, indemnify and hold harmless each Holder
of Registrable Securities included in any registration statement filed in connection with this Agreement, its directors, officers, members, partners, trust beneficiaries and shareholders, and each
other Person, if any, who controls any such Holder within the meaning of the Securities Act, against any losses, claims, damages, expenses or liabilities (as actions or proceedings in respect
thereof), joint or several (together, "Losses"), to which such Holder or any such director, officer, member, partner or controlling Person may become
subject under the Securities Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any such registration statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a
prospectus, in the light of the circumstances under which they were made) not misleading and the Company will reimburse such Holder and each such director, officer, member, partner and controlling
Person for any legal or any other expenses reasonably incurred by them in connection with investigating or defending against any such Loss (or action or proceeding in respect thereof);
provided, however, that the Company shall not be liable in any such case to the extent that any such Loss (or action or proceeding in
respect thereof) (i) is caused by or contained in any information relating to such Holder furnished in writing to the Company by such Holder expressly for use in such registration statement,
preliminary, final or summary prospectus contained therein, or any amendment or supplement thereto, (ii) is caused by such Holder's failure to deliver a copy of the current prospectus
simultaneously with or prior to such sale after the Company has furnished such Holder with a sufficient number of copies of such prospectus correcting such material misstatement or omission, or
(iii) arises in respect of any offers to sell or sales made during any period when a Holder is required to discontinue sales under
Sections 1(a)(ii)(y), 1(b)(ii)(y), 2(g), 4(c)(ii) or (iii) or 4(f) (and after such Holder has received notice as contemplated by any of such
Sections). Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any such director, officer, member, partner, trust beneficiaries,
shareholders or controlling Person, and shall survive the transfer of such securities by such Holder pursuant to Section 13(g) of this Agreement. 

        (b)   Indemnification
by the Holders.    Each holder of Registrable Securities which are included or are to be included in any
registration statement filed in connection with this Agreement, as a condition to including Registrable Securities in such registration statement, shall, to the full extent permitted by law, severally
and not jointly, indemnify and hold harmless the Company, its directors and officers, and each other Person, if any, who controls the Company within the meaning of the Securities Act, against any
Losses to which the Company or any such director or officer or controlling Person may become subject under the Securities Act or otherwise, insofar as such Losses (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any such registration statement,
any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in the light of the circumstances under which they were made) not misleading, if such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information furnished or confirmed in writing to the Company;
provided, however, that in no event shall any indemnity provided by a Holder under this Section 7(b) exceed the net proceeds
from the offering received by such Holder. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any such director, officer,
member, partner, trust beneficiaries, shareholder or controlling Person and shall survive the transfer of such securities by such Holder pursuant to Section 13(g) of this Agreement. 

        (c)   Notices
of Claims, Etc.    Promptly after receipt by an Indemnified Party of notice of the commencement of any action or
proceeding involving a claim referred to in the preceding paragraph (a) or (b) of this Section 7, such Indemnified Party will, if a claim in respect thereof is to be
made against an Indemnifying Party pursuant to such paragraphs, give written notice to the latter of the commencement of such action, provided that the failure of any Indemnified Party to give notice
as provided 

10

 

herein
shall not relieve the Indemnifying Party of its obligations under the preceding paragraphs of this Section, except to the extent that the Indemnifying Party is actually prejudiced by such
failure to give notice. In case any such action is brought against an Indemnified Party, the Indemnifying Party shall be entitled to participate in and to assume the defense thereof, jointly with any
other Indemnifying Party similarly notified to the extent that it may wish, and after notice from the Indemnifying Party to such Indemnified Party of its election so to assume the defense thereof, the
Indemnifying Party shall not be liable to such Indemnified Party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs
of investigation; provided that the Indemnified Party may participate in such defense at the Indemnified Party's expense; and provided further that the Indemnified Party (or Indemnified
Parties) shall have the right to employ one counsel and one local counsel to represent it (or them, collectively) if, in the reasonable judgment of the Indemnified Party or Indemnified Parties,
it is advisable for it (or them) to be represented by separate counsel by reason of having legal defenses which are different from or in addition to those available to the Indemnifying Party,
and in that event the reasonable fees and expenses of such counsel shall be paid by the Indemnifying Party; provided further, however, that if certain Indemnified Party (or Indemnified Parties)
shall have reasonably concluded, after consultation with counsel, that there may be defenses available to it (or them) that are different from, additional to, or in conflict with those
available to one or all of the Indemnified Parties such Indemnified Party (or Indemnified Parties) shall have the right to employ separately one counsel and one local counsel to represent it
(or them, collectively), and in that event the reasonable fees and expenses of such one counsel, shall also be paid by the Indemnified Party. If the Indemnifying Party is not entitled to, or
elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel for the Indemnified Parties with respect to such claim. No Indemnifying
Party shall consent to entry of any judgment or enter into any settlement without the consent of the Indemnified Party which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability in respect of such claim or litigation. No Indemnifying Party shall be subject to any liability for any settlement made
without its consent, which consent shall not be unreasonably withheld. 

        (d)   Contribution.    If
the indemnity and reimbursement obligation provided for in any paragraph of this Section is unavailable or
insufficient to hold harmless an Indemnified Party in respect of any Losses (or actions or proceedings in respect thereof) referred to therein, then the Indemnifying Party shall contribute to
the amount paid or payable by the Indemnified Party as a result of such Losses (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative fault
of the Indemnifying Party on the one hand and the Indemnified Party on the other hand in connection with the statements or omissions which resulted in such Losses, as well as any other relevant
equitable considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Indemnifying Party or the Indemnified Party and the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by
pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the first sentence of this paragraph. The amount paid by an
Indemnified Party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any Loss which is the subject of this paragraph. 

        No
Indemnified Party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from the
Indemnifying Party if the Indemnifying Party was not guilty of such fraudulent misrepresentation. No contribution shall be made by an Indemnifying Party under circumstances where such Party would not
have been liable for indemnification under the fault standards of Section 7. Moreover, contribution by a Holder of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such Holder from the sale of such Registrable Securities pursuant to such Shelf Registration Statement. The provisions of this Section 7(d) shall remain in full
force and effect, regardless of the investigation made by or on behalf of the beneficiaries of this Section 7(d) and shall survive the transfer of Registrable Securities by the
Holders pursuant to Section 13(g) of this Agreement. 

11

 

        (e)   Indemnification
Payments.    The indemnification required by this Section 7 shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, as and when bills are received or Losses are incurred, provided that each Indemnified Party shall repay such payments if and to the
extent it shall be determined by a court of competent jurisdiction that such recipient is not entitled to such payment. 

8.    LISTING REQUIREMENT. 

        To
the extent the Company then has such class of common shares listed on a U.S. national securities exchange or quoted on a U.S. national automated inderdealer quotation
system, the Company will use its commercially reasonable best efforts to list the common shares included in a Shelf Registration Statement on such U.S. national securities exchange or to have
the common shares included in a Shelf Registration Statement quoted on such U.S. national automated interdealer quotation system as promptly as practicable following the declaration of
effectiveness of any Shelf Registration Statement contemplated hereby. 

9.    RULE 144 

        As
long as any Holder owns Registrable Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all
reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder owns Registrable Securities,
if the Company is not required to file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and make publicly
available in accordance with Rule 144(c) promulgated under the Securities Act annual financial statements, together with a discussion and analysis of such financial statements in form
and substance substantially similar to those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as
any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act. The Company further covenants that it will take such
further action as any Holder may reasonably request, all to
the extent required from time to time to enable such Person to sell Registrable Securities without registration under the Securities Act. Upon the request of any Holder, the Company shall deliver to
such Holder a written certification of a duly authorized office as to whether it has complied with such requirements. 

10.    OTHER REGISTRATION RIGHTS. 

        Except
for the registration rights granted to DDJ under the separate registration rights agreement dated as of the date hereof, the Company represents and warrants to the Holders that
there is not in effect on the date hereof any agreement by the Company (other than this Agreement) pursuant to which any holders of securities of the Company have a right to cause the Company to
register or qualify such securities under the Securities Act or any securities or blue sky laws of any jurisdiction. The Company agrees that, for so long as any Holder is entitled to registration
rights under this Agreement, the Company shall not enter into any agreement granting registration rights with respect to the Company's capital stock that conflict with or impair, or have any priority
over, the registration rights granted hereby. 

11.    LIQUIDATED DAMAGES. 

        The
Company and the Holders agree that the Holders of Registrable Securities will suffer damages if the Company fails to fulfill its obligations under this Agreement and that it would
not be feasible to ascertain the extent of such damages with precision. Accordingly, the Company agrees to pay liquidated damages on the Registrable Securities ("Liquidated
Damages") under the circumstances and to the extent set forth below (each of which shall be given independent effect; each a "Registration
Default"): 

        (a)   if
the Corporation does not file the Primary Shelf Registration Statement with the Commission within thirty (30) days after the date of issuance of the 10%
Convertible Debentures, Liquidated Damages shall accrue on the Primary Registrable Securities at a rate of 2% per annum on the Amount of Registrable Securities; 

        (b)   subject
to Section 1(a)(ii)(y), if the Corporation fails to keep the Primary Shelf Registration Statement effective with the Commission until the
termination of the Primary Shelf Registration Effectiveness Period, 

12

 

Liquidated
Damages shall accrue on the Primary Registrable Securities at a rate of 2% per annum on the Amount of Registrable Securities; 

        (c)   subject
to Section 1(a)(i)(y), if the Primary Shelf Registration Statement is not declared effective by the Commission within one hundred twenty
(120) days after the date of issuance of the 10% Convertible Debentures: 

          (i)  Liquidated
Damages shall accrue on the Primary Registrable Securities at a rate of 0.5% per annum on the Amount of Registrable Securities for the thirty (30) day
period following the 120th day after the date of issuance of the 10% Convertible Debentures; 

         (ii)  Liquidated
Damages shall accrue on the Primary Registrable Securities at a rate of 1% per annum on the Amount of Registrable Securities for the thirty
(30) period following the 150th day after the date of issuance of the 10% Convertible Debentures; 

        (iii)  Liquidated
Damages shall accrue on the Primary Registrable Securities at a rate of 1.5% per annum on the Amount of Registrable Securities for the thirty
(30) period following the 180th day after the date of issuance of the 10% Convertible Debentures; and 

        (iv)  Liquidated
Damages shall accrue on the Primary Registrable Securities at a rate of 2% per annum on the Amount of Registrable Securities for the period following the
210th day after the date of issuance of the 10% Convertible Debentures; 

        (d)   if
the Corporation does not file a Secondary Shelf Registration Statement with the Commission within forty-five (45) days after the date of
issuance of PIK Debentures, Liquidated Damages shall accrue on the Secondary Registrable Securities at a rate of 2% per annum on the Amount of Registrable Securities that are Secondary Registrable
Securities; 

        (e)   subject
to Section 1(b)(ii)(y), if the Corporation fails to keep a Secondary Shelf Registration Statement effective with the Commission until the
termination of the Secondary Shelf Registration Effectiveness Period, Liquidated Damages shall accrue on the Secondary Registrable Securities at a rate of 2% per annum on the Amount of Registrable
Securities that are Secondary Registrable Securities; 

        (f)    subject
to Section 1(b)(i)(y), if the Secondary Shelf Registration Statement is not declared effective by the Commission within one hundred
thirty-five (135) days after the date of issuance of the PIK Debentures: 

          (i)  Liquidated
Damages shall accrue on the Secondary Registrable Securities at a rate of 0.5% per annum on the Amount of Registrable Securities for the thirty
(30) day period following the 135th day after the date of issuance of the PIK Debentures to which the Secondary Shelf Registration Statement relates; 

         (ii)  Liquidated
Damages shall accrue on the Secondary Registrable Securities at a rate of 1% per annum on the Amount of Registrable Securities for the thirty (30) day
period following the 165th day after the date of issuance of the PIK Debentures to which the Secondary Shelf Registration Statement relates; 

        (iii)  Liquidated
Damages shall accrue on the Secondary Registrable Securities at a rate of 1.5% per annum on the Amount of Registrable Securities for the thirty
(30) day period following the 195th day after the date of issuance of the PIK Debentures to which the Secondary Shelf Registration Statement relates; and 

        (iv)  Liquidated
Damages shall accrue on the Secondary Registrable Securities at a rate of 2% per annum on the Amount of Registrable Securities for the period following the
225th day after the date of issuance of the PIK Debentures to which the Secondary Shelf Registration Statement relates; 

provided,
however, that upon cure of the circumstance giving rise to Liquidated Damages, Liquidated Damages on the Registrable Securities as a
result of such clause (or the relevant subclause thereof), as the case may be, shall cease to accrue. 

        So
long as Debentures remain outstanding, the Company shall notify the Trustees within two Business Days after each and every date on which an event occurs in respect of which Liquidated
Damages is required to be paid. Any amounts of Liquidated Damages due pursuant to this Section will be payable in cash semi-annually on each April 15 and October 15 (each, a
"Damages Payment Date"), commencing with the first such date occurring 

13

 

after
any such Liquidated Damages commences to accrue, to Holders to whom regular interest or PIK Debentures is payable on such Damages Payment Date, with respect to securities that are Registrable
Securities that are the subject of the applicable Liquidation Default, and to Persons that are registered Holders on the April 15 or October 15 immediately prior to a Damages Payment
Date with respect to Shares or common shares of the Company that are Registrable Securities that are the subject of the applicable Liquidation Default. The amount of Liquidated Damages for Registrable
Securities will be determined by multiplying the applicable rate of Liquidated Damages by the Amount of Registrable Securities that are the subject of the applicable Liquidation Default outstanding on
the Damages Payment Date following such Registration Default in the case of the first such payment of Liquidated Damages with respect to a Registration Default (and thereafter at the next
succeeding Damages Payment Date until the cure of such Registration Default), multiplied by a fraction, the numerator of which is the number of days such Liquidated Damages rate was applicable during
such period (determined on the basis of a 360-day year comprised of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed), and the
denominator of which is 360. 

12.    DEFINITIONS. 

        Except
as otherwise specifically indicated, the following terms will have the following meanings for all purposes of this Agreement: 

        "Affiliate" means, with respect to any Person, (i) any other Person of which securities or other ownership interests representing
more than fifty percent (50%) of the voting interests are, at the time such determination is being made, owned, Controlled or held, directly or indirectly, by such Person or (ii) any other
Person which, at the time such determination is being made, is Controlling, Controlled by or under common Control with, such Person. As used herein,
"Control", whether used as a noun or verb, refers to the possession, directly or indirectly, of the power to direct, or cause the direction of, the
management or policies of a Person, whether through the ownership of voting securities or otherwise. 

        "Agreement" means this Registration Rights Agreement, as the same shall be amended or modified from time to time. 

        "Amount of Registrable Securities" means (a) with respect to Debentures constituting Registrable Securities, the aggregate
principal amount of all such Debentures outstanding, (b) with respect to Shares constituting Registrable Securities, the aggregate number of such Shares outstanding multiplied by the Conversion
Price (as defined in the Trust Indenture relating to the Debentures upon the conversion of which such Shares were issued) in effect at the time of computing the Amount of Registrable Securities
or, if no such Debentures are then outstanding, the last Conversion Price that was in effect under such Trust Indenture when any such Debentures were last outstanding (appropriately adjusted for any
stock split, reverse split, consolidation or similar event), (c) with respect to PIK Debentures constituting Registrable Securities, the aggregate principal amount of all such PIK Debentures
outstanding, (b) with respect to common shares of the Company to which PIK Debentures are convertible and which constitute Registrable Securities, the aggregate number of such shares
outstanding multiplied by the Conversion Price in effect at the time of computing the Amount of Registrable Securities or, if no such PIK Debentures are then outstanding, the last Conversion Price
that was in effect under such Trust Indenture when any such Debentures were last outstanding (appropriately adjusted for any stock split, reverse split, consolidation or similar event), and
(e) with respect to combinations thereof, the sum of (a) and (b) or the sum of (c) and (d), as the case may be, for the relevant Registrable Securities. 

        "Business Day" means a day other than Saturday, Sunday or any other day on which banks located in the State of New York are
authorized or obligated to close. 

        "Commission" means the United States Securities and Exchange Commission, or any successor governmental agency or authority. 

        "Company" has the meaning ascribed to it in the preamble. 

        "Cutback Registration" means any registration to be effected as an underwritten Public Offering in which the Managing Underwriter with
respect thereto advises the Company in writing that, in its opinion, the number of securities requested to be included in such registration (including securities of the Company which are not
Registrable Securities) exceed the number which can be sold in such offering or which can be sold without a 

14

 

material
reduction in the selling price anticipated to be received for the securities to be sold in such Public Offering, or which can be sold without otherwise adversely affecting the success of such
offering. 

        "Damages Payment Date" has the meaning ascribed to it in Section 11. 

        "DDJ" means DDJ Capital management, LLC, a Massachusetts limited liability company, its Affiliates and the funds and accounts
managed or advised by DDJ Capital Management, LLC. 

        "Debentures" has the meaning ascribed to it in the preamble. 

        "Demand Request" has the meaning ascribed to it in Section 2(a). 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

        "Form F-3" means Form F-3 promulgated by the Commission under the Securities Act, or any
successor or similar (including a Form F-10, if available) registration statement. 

        "Form F-3 Demand" has the meaning ascribed to it in Section 3(a). 

        "Holder" has the meaning ascribed to it in the preamble. 

        "Holder Information" has the meaning ascribed to it in Section 1(a)(iii). 

        "Indemnified Party" means a party entitled to indemnity in accordance with Section 7. 

        "Indemnifying Party" means a party obligated to provide indemnity in accordance with Section 7. 

        "Inspectors" has the meaning ascribed to it in Section 4(h). 

        "Institutional Investor" shall mean any insurance company, pension fund, mutual fund, hedge fund, investment company, qualified
institutional buyer (as that term is defined in Rule 144A under the Securities Act), commercial bank, savings bank, savings and loan association, investment banking company, trust
company or any finance or credit company, or any portfolio or investment fund managed by any of the foregoing. 

        "Liquidated Damages" has the meaning ascribed to it in Section 11. 

        "Losses" has the meaning ascribed to it in Section 7(a). 

        "Managing Underwriter" means, with respect to any Public Offering, the underwriter or underwriters managing such Public Offering. 

        "NASD" means the National Association of Securities Dealers, Inc. 

        "Non-Public Information" has the meaning ascribed to it in Section 1(a)(i)(y). 

        "Notice and Questionnaire" means the notice and questionnaire to be delivered by the Company to the Holders in accordance with
Section 1(a)(i)(z), substantially in the form of Exhibit A. 

        "Person" means any natural person, corporation, general partnership, limited partnership, limited liability company, proprietorship, other
business organization, trust, union or association. 

        "PIK Debentures" has the meaning assign to such term in the Trust Indenture. 

        "Primary Registrable Securities" means (i) the Debentures received by the Holders upon consummation of the Exchange,
(ii) the Shares and (iii) any additional securities issued or issuable with respect to (i) and (ii) above by virtue of any stock split, combination, stock dividend, merger,
consolidation or other similar event. As to any particular Primary Registrable Security, such security shall cease to be Primary Registrable Securities when (i) a registration statement with
respect to the sale of such securities shall have become effective under
the Securities Act and such Primary Registrable Securities shall have been disposed of in accordance with such registration statement, (ii) they shall have been sold pursuant to
Rule 144, (iii) the holding period applicable to such Primary Registrable Security held by non-affiliates of the Company under Rule 144(k) under the Securities
Act, or any successor provision, shall have expired or (iv) they shall have ceased to be outstanding. 

15

   
        "Primary Shelf Registration Effectiveness Period" has the meaning ascribed to it in Section 1(a)(ii)(x). 

        "Primary Shelf Registration Statement" means a registration statement of the Company in compliance with the provisions of
Section 1(a) of this Agreement which registers the continuous offer and sale of all of the Registrable Securities on an appropriate form under Rule 415 under the Securities Act or
any similar or successor rule that may be adopted by the Commission, and all amendments to such registration statement, including post-effective amendments, in each case including any
prospectus contained therein and any supplement to any such prospectus, all exhibits thereto and all information incorporated by reference therein. 

        "Public Offering" means any offering of the Company's common shares to the public, either on behalf of the Company or any of its
securityholders, pursuant to an effective registration statement under the Securities Act. 

        "Records" has the meaning ascribed to it in Section 4(h). 

        "Registrable Securities" means, collectively, the Primary Registrable Securities and the Secondary Registrable Securities. 

        "Registration Default" has the meaning ascribed to it in Section 11. 

        "Registration Expenses" means all expenses incident to the Company's performance of or compliance with its obligations under this
Agreement to effect and maintain the registration of Registrable Securities in accordance with Section 1, 2 or 3, including, without limitation, all registration, filing, securities
exchange listing and NASD fees (including Nasdaq fees, if applicable), all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws (including fees
of counsel retained by the holders of a majority of Registrable Securities being registered to advise the holders with respect to all of the foregoing matters, not to exceed $25,000 in respect of any
one Registration Statement, all word processing, duplicating and printing expenses, messenger and delivery expenses, the fees and disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits or "cold comfort" letters required by or incident to such performance and compliance in connection with an underwritten offering and any fees
and disbursements of underwriters customarily paid by issuers or holders of securities, but excluding underwriting discounts and commissions, brokers' fees or fees of similar securities
professionals and transfer taxes, if any, in respect of Registrable Securities, which shall be payable by each holder thereof. 

        "Rule 144" means Rule 144 promulgated by the Commission under the Securities Act, and any successor provision thereto. 

        "Secondary Registrable Securities" means (i) the PIK Debentures, (ii) the common shares of the Company into which the PIK
Debentures are convertible and (iii) any additional securities issued or issuable with respect to (i) and (ii) above by virtue of stock split, stock dividend, merger,
consolidation or other similar event. As to any particular Secondary Registrable Security, such security shall cease to be Secondary Registrable Securities when (i) a registration statement
with respect to the sale of such securities shall have become effective under the Securities Act and such Secondary Registrable Securities shall have been disposed of in accordance with such
registration statement, (ii) they shall have been sold pursuant to Rule 144, (iii) the holding period applicable to such Secondary Registrable Security held by
non-affiliates of the Company under Rule 144(k) under the Securities Act, or any successor provision, shall have expired or (iv) they shall have ceased to be
outstanding. 

        "Secondary Shelf Registration Statement" means a registration statement of the Company in compliance with the provisions of
Section 1(b) of this Agreement which registers the continuous offer and sale of Secondary Registrable Securities on an appropriate form under Rule 415 under the Securities Act or
any similar or successor rule that may be adopted by the Commission, and all amendments to such registration statement, including post-effective amendments, in each case including any
prospectus contained therein and any supplement to any such prospectus, all exhibits thereto and all information incorporated by reference therein. 

        "Secondary Shelf Registration Effectiveness Period" has the meaning ascribed to it in Section 1(b)(ii)(x). 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

        "Shares" has the meaning ascribed to it in the preamble. 

16

 

        "Shelf Registration Statement" means, collectively, the Primary Shelf Registration Statement and any Secondary Shelf Registration
Statement. 

        "Trust Indenture" means the Trust Indenture, dated as of August    , 2005, among the
Company, Computershare Trust Company of Canada and Manufacturer and Traders Trust Company. 

        "Trustees" means Computershare Trust Company of Canada, a trust company having its principal office in the City of Montreal, in the
Province of Quebec and Manufacturer and Traders Trust Company, a trust company having its principal office in the City of Baltimore, in the State of Maryland. 

        "Underwritten Offering" means a registered offering in which securities are sold to one or more underwriters on a firm commitment basis
for reoffering to the public. 

13.    MISCELLANEOUS. 

        (a)   Notices.    All
notices, requests and other communications hereunder must be in writing and will be deemed to have been duly given
only if delivered personally or by facsimile transmission or mailed (registered or certified mail, postage prepaid) to the parties at the following addresses or facsimile numbers: 

        If
to Holder, to the addresses set forth on the signature pages hereof. 

        If
to the Company, to: 

SR
Telecom Inc.

8150 Trans-Canada Hwy

Montreal, QC H45 1M5

Canada

Attn: Chief Financial Officer

Telephone No.: 514-335-1210

Facsimile No.: 514-335- 

        With
a copy to: 

Pillsbury
Winthrop Shaw Pittman LLP

1540 Broadway

New York, NY 10036

USA

Attn: Ronald A. Fleming

Telephone No.: 212-858-1143

Facsimile No.: 212-858-1500 

        With
respect to any other holder of Registrable Securities, such notices, requests and other communications shall be sent to the addresses set forth in the stock transfer records
regularly maintained by the Company. All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section, be deemed given upon
delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section, be deemed given when sent by confirmed facsimile if sent during normal business hours
of the recipient, if not, then on the next Business Day, and (iii) if delivered by mail in the manner described above to the address as provided in this Section, be deemed given five days after
deposit with the United States Post Office (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice
is to be delivered pursuant to this Section). Any party from time to time may change its address, facsimile number or other information for the purpose of notices to that party by giving notice
specifying such change to the other parties hereto. 

        (b)   Entire
Agreement.    This Agreement supersedes all prior discussions and agreements between the parties with respect to the
subject matter hereof, and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof. 

        (c)   Amendment.    This
Agreement may be amended, supplemented or modified only by a written instrument (which may be executed in any
number of counterparts) duly executed by or on behalf of each of the 

17

 

Company
and Holders owning more than fifty percent (50%) of the Registrable Securities, provided, however, that any amendment or modification
affecting Section 2 or Section 3 shall hereof require only the prior written consent of DDJ and the Company. 

        (d)   Waiver.    Subject
to paragraph (e) of this Section, any term or condition of this Agreement may be waived at any
time by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the party waiving such term
or condition. No waiver by any party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same term or condition of this
Agreement on any future occasion. 

        (e)   Consents
and Waivers by Holders of Registrable Securities.    Any consent of the holders of Registrable Securities pursuant to
this Agreement, and any waiver by such holders of any provision of this Agreement, shall be in writing (which may be executed in any number of counterparts) and may be given or taken by Holders owning
more than fifty percent (50%) of the Registrable Securities and any such consent or waiver so given or taken will be binding on all the holders of Registrable Securities;
provided, however, that any amendment or modification affecting Section 2 or Section 3 hereof shall require only the prior
written consent of DDJ and the Company. 

        (f)    No
Third Party Beneficiary.    The terms and provisions of this Agreement are intended solely for the benefit of each party hereto
and their respective successors or assigns. It is not the intention of the parties to confer third-party beneficiary rights upon any other Person other than any Person entitled to indemnity under
Section 7. 

        (g)   Successors
and Assigns.    This Agreement is binding upon, inures to the benefit of and is enforceable by the Company and
the Holders (or the Person or Persons for which a Holder is acting as fiduciary or agent, as the case may be) and their respective successors and assigns; provided,
however, that this Agreement shall not inure to the benefit of or be binding upon a successor or assign unless and except to the extent such successor and assign holds
Registrable Securities and has provided a written instrument to the Company notifying the Company of such transfer and assignment and agreeing in writing to be bound by this Agreement;
provided, further, that nothing herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in
violation of the terms hereof, the Securities Act or any securities or blue sky laws of any jurisdiction. 

        (h)   Headings.    The
headings used in this Agreement have been inserted for convenience of reference only and do not define or limit
the provisions hereof. 

        (i)    Invalid
Provisions.    If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or
future law, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby, (i) such provision will be fully severable,
(ii) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof and (iii) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. 

        (j)    Remedies.    Except
as otherwise expressly provided for herein, no remedy conferred by any of the specific provisions of this
Agreement is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at
law or in equity or by statute or otherwise. The election of any one or more remedies by any party hereto shall not constitute a waiver by any such party of the right to pursue any other available
remedies. 

        Damages
in the event of breach of this Agreement by a party hereto or any other holder of Registrable Securities would be difficult, if not impossible, to ascertain, and it is therefore
agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof and the Company and each holder of Registrable Securities, by its acquisition of such Registrable
Securities, hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief. The existence of this
right will not preclude any such Person from pursuing any other rights and remedies at law or in equity which such Person may have. 

18

 

        (k)   Governing
Law.    THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 

        (l)    Counterparts.    This
Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all
of which together will constitute one and the same instrument. 

[Signatures on next page.]

19

   
        IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officer of each party hereto as of the date first above written. 

	 	 	SR TELECOM INC.
	
 	
 	

By:	

/s/  DAVID L. ADAMS      
 Name: David L. Adams

Title: Sr. VP Finance and CFO

A-1

 
[Signature
Page to the Registration Rights Agreement] 

	 	 	B IV CAPITAL PARTNERS, L.P

    By: GP Capital IV, LLC, its General Partner

    By: DDJ Capital Management, LLC, Manager
	
 	
 	

By:	

 Name:

Title:
	

 	
 	

 	

Address: c/o DDJ Capital Management, LLC,

141 Linden Street, Suite S-4, Wellesley, MA 02482

Phone number: (781) 283-8500

Facsimile number: (781) 283-8541

Attention: Joshua L. McCarthy

A-2

 
[Signature
Page to the Registration Rights Agreement] 

	 	 	GMAM INVESTMENT FUNDS TRUST II

    By: DDJ Capital Management, LLC, as investment manager
	
 	
 	

By:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title: Member
	

 	
 	

 	

Address: c/o DDJ Capital Management, LLC,

141 Linden Street, Suite S-4, Wellesley, MA 02482

Phone number: (781) 283-8500

Facsimile number: (781) 283-8541

Attention: Joshua L. McCarthy

A-3

 
[Signature
Page to the Registration Rights Agreement] 

	 	 	DDJ CANADIAN HIGH YIELD FUND

    By: DDJ Capital Management, LLC, its attorney-in-fact
	
 	
 	

By:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title: Member
	

 	
 	

 	

Address: c/o DDJ Capital Management, LLC,

141 Linden Street, Suite S-4, Wellesley, MA 02482

Phone number: (781) 283-8500

Facsimile number: (781) 283-8541

Attention: Joshua L. McCarthy

A-4

 
[Signature
Page to the Registration Rights Agreement] 

	 	 	THE OCTOBER FUND LIMITED PARTNERSHIP

    By: October G.P., LLC, its General Partner

    By: DDJ Capital Management, LLC, its Manager
	
 	
 	

By:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title: Member
	

 	
 	

 	

Address: c/o DDJ Capital Management, LLC,

141 Linden Street, Suite S-4, Wellesley, MA 02482

Phone number: (781) 283-8500

Facsimile number: (781) 283-8541

Attention: Joshua L. McCarthy

A-5

 
[Signature
Page to the Registration Rights Agreement] 

	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA
	
 	
 	

By:	

/s/  CHARLES ERIC GAUTHIER      
 Name: Charles Eric Gauthier

Title: Manager, Corporate Trust
	
 	
 	

By:	

/s/  RANNY SAUND      
 Name: Ranny Saund

Title: Administrator
	

 	
 	

 	

Address: 1500 University Street, Suite 1500,

Montreal, QC H3A 3S8

Phone number: 514-982-7888

Facsimile number: 514-982-7677
	
 	
 	
MANUFACTURERS AND TRADERS TRUST COMPANY
	
 	
 	

By:	

/s/  JAY SMITH      
 Name: Jay Smith

Title: Vice-President
	
 	
 	

By:	

/s/  ROBERT D. BROWN      
 Name: Robert D. Brown

Title: Vice-President
	

 	
 	

 	

Address:

Phone number: 410-244-4223

Facsimile number: 410-244-4236

Attention:

A-6

  

 
 

EXHIBIT A  
    

 
 

NOTICE AND QUESTIONNAIRE(1)    
    

	1.
	(a)   Full
Legal Name of Selling Shareholder: 

	(b)
	Full
Legal Name of Investor (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held: 

	2.
	Address
for Notices to Selling Shareholder: 

Telephone: 

Fax: 

Contact
Person: 

	3.
	Beneficial
Ownership of Registrable Securities:

	(a)
	Type
and Principal Amount or number of Registrable Securities beneficially owned: 

	(b)
	CUSIP
No(s). of such Registrable Securities beneficially owned: 

	4.
	Beneficial
Ownership of Other Securities of the Company Owned by the Selling Shareholder. 

Except as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.

	(a)
	Type
and Amount of Other Securities beneficially owned by the Selling Shareholder: 

	(b)
	CUSIP
No(s). of such Other Securities beneficially owned: 

	5.
	Relationships
with the Company: 

Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of more than 5% of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three
years.

State
any exceptions here: 

	(1)
	Capitalized
terms not defined herein shall have the meaning ascribed to in the Registration Rights Agreement, dated             , 2005, by and among SR
Telecom Inc. and the holders identified in the signature pages. 

A-1

 
	6.
	Broker-Dealers
and their Affiliates

	(a)
	Is
the Selling Shareholder a broker-dealer or an affiliate of a broker-dealer: 

        Yes
                                        
 No             
 

        If
so, please answer the remaining question in this section. 

	(i)
	Please
advise whether the Registrable Securities were received by the Selling Shareholder as compensation for investment banking services or as investment shares, and if
so please describe the circumstances. 

Note that in general we may be required to identify any registered broker-dealer as an underwriter in the prospectus.

	(ii)
	Except
as set forth below, if the Selling Shareholder is a registered broker-dealer, the Selling Shareholder does not plan to make a market in the Registrable
Securities. If the Selling Shareholder plans to make a market in the Registrable Securities, please indicate whether the Selling Shareholder plans to use the prospectus relating to the Registrable
Securities as a market-making prospectus.

	(b)
	Affiliation
with Broker-Dealers 

Is
the Selling Shareholder an affiliate(2) of a registered broker-dealer? 

        Yes
                                        
 No              

        If
so, please answer the remaining question in this section. 

	(i)
	Please
describe the affiliation between the Selling Shareholder and any registered broker-dealer.

	(ii)
	If
the Registrable Securities were purchased by the Selling Shareholder other than in the ordinary course of business, please describe the circumstances.

	(iii)
	Please
advise whether the Registrable Securities were received by the Selling Shareholder as compensation for investment banking services or as investment shares, and
if so please describe the circumstances.

	(iv)
	If
the Selling Shareholder, at the time of its purchase of Registrable Securities, had any agreements or understandings, directly or indirectly, with any person to
distribute the Registrable Securities, please describe such agreements or undertakings. 

Note that if the Selling Shareholder is an affiliate of a broker-dealer and did not purchase its Registrable Securities in the ordinary course of business or at the time of the
purchase had any agreements or understandings, directly or indirectly, to distribute the securities, we may be required to identify the Selling Shareholder as an underwriter in the
prospectus.

	(c)
	Beneficial
Ownership by Natural Persons: 

If
the Selling Shareholder is an entity, does any natural person have voting or investing power over the Registrable Securities held by the Selling Shareholder?(3) 

If
so, please state the person's or persons' name(s): 

	(2)
	An
"affiliate" of a specified person or entity means a person or entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under
common control with, the person or entity specified. For purposes of this definition, "control", refers to the possession, directly or indirectly, of the power to direct, or cause the direction of,
the management or policies of a person, whether through the ownership of voting securities or otherwise.

	(3)
	Please
answer "Yes" if any natural person, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (a) voting power
which includes the power to vote, or to direct the voting of, such security; and/or, (b) investment power which includes the power to dispose, or to direct the disposition of, the Registrable
Securities held by the Selling Shareholder. 

A-2

 
	7.
	Beneficial
Ownership by Natural Persons or by a Board or Committee 

Is
the Selling Shareholder a reporting entity with the Securities and Exchange Commission? 

If
the Selling Shareholder is a majority owned subsidiary of a reporting entity, identify the majority stockholder that is a reporting entity. 

        Yes
                                        
 No              

If
No, please answer the remaining questions in this section. 

	(i)
	Please
name the natural person or person(s) having voting and/or investment control over the Selling Shareholder.(4)

	(ii)
	If
the voting and/or investment control over the Selling Shareholder is held by board or committee, please state the name of the natural person or person(s) on
such board or committee. 

	(4)
	Please
include any natural person that, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (a) voting power
which includes the power to vote, or to direct the voting of, such security; and/or, (b) investment power which includes the power to dispose, or to direct the disposition of, the Registrable
Securities held by the Selling Shareholder. 

A-3

 

        IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent. 

	Dated:
	 	Beneficial Owner:

	 	 	By:

	 	 	Name:

	 	 	Title:

A-4

 
PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND

QUESTIONNAIRE TO SR TELECOM INC.

SR
Telecom Inc.

8150 Trans-Canada Hwy

Montreal, QC H45 1M5

Canada

Telephone: 514-335-1210

Attention: 

A-5

QuickLinks

SR TELECOM INC. REGISTRATION RIGHTS AGREEMENT

EXHIBIT A

NOTICE AND QUESTIONNAIRE(1)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]