Common use of Accretion and Interest Clause in Contracts

Accretion and Interest. Pursuant to Section 2.14 of the Indenture, principal shall accrete on the principal amount of this Security (including the Original Principal Amount) at a rate equal to 3.9755% per annum (compounded semi-annually). The Accreted Principal Amount per $1,000 Original Principal Amount is set forth on Annex I attached hereto. The Securities shall bear interest on the Original Principal Amount thereof at a rate of 3.75% per year (“Interest”). The Company shall pay Interest as set forth in the Indenture. Interest shall be payable in cash semi-annually in arrears on each Interest Payment Date in respect of the Original Principal Amount to Holders at the close of business on the preceding Interest Record Date. Interest shall be computed on the basis of a 360-day year comprised of twelve 30 day months. The Company shall pay Interest in respect of the Original Principal Amount to the Securityholder of record on the Interest Record Date even if the Company elects to redeem, or Securityholders elect to require the Company to repurchase, the Securities on a date that is after an Interest Record Date but on or prior to the corresponding Interest Payment Date. In that instance, the Company shall pay accrued and unpaid Interest on the Securities in respect of the Original Principal Amount being redeemed to, but not including, the Redemption Date, the Repurchase Date or the Fundamental Change Repurchase Date, as the case may be, in cash to the Securityholder of record on the Interest Record Date. If the Accreted Principal Amount of any Security, or any accrued and unpaid Interest, are not paid when due (whether upon acceleration pursuant to Section 6.02 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 5 hereof, upon the date set for payment of the Repurchase Price or Fundamental Change Repurchase Price pursuant to Section 6 hereof, upon the Stated Maturity of the Securities or upon the Interest Payment Dates), then in each such case the overdue amount shall, to the extent permitted by law, bear cash interest at the rate of 3.75% per annum, compounded semi-annually, which interest shall accrue from the date such overdue amount was originally due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable in cash on demand but if not so demanded shall be paid quarterly to the Holders on the last day of each quarter.

Accretion and Interest. Pursuant to Section 2.14 2.12 of the Indenture, principal shall accrete on the principal amount of this Security (including the Original Principal Amount) Note, compounded semi-annually, at a rate equal to 3.97551.85% per annum (compounded semi-annually)annum. The Accreted Principal Amount per $1,000 Original Principal Amount is set forth on Annex I attached hereto. The Securities shall bear Ciena Corporation, a Delaware corporation (the “Company”), promises to pay interest on the Original Principal Amount thereof of this Note at a rate of 3.754.0% per year (“Interest”)annum from December 27, 2012 until Stated Maturity. The Company shall will pay Interest as set forth in the Indenture. Interest shall be payable in cash semi-annually in arrears on each Interest Payment Date interest in respect of the Original Principal Amount semi-annually in arrears on June 15 and December 15 of each year (subject to Holders limited exceptions if the Note is converted or purchased prior to such date), or if any such day is not a Business Day, on the immediately following Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue on the Original Principal Amount from the most recent date to which interest has been paid or, if no interest has been paid, from December 27, 2012; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated between a Regular Record Date (as defined below) and the next succeeding Interest Payment Date, interest shall accrue on the Original Principal Amount from such next succeeding Interest Payment Date; provided, further, that the first Interest Payment Date shall be June 15, 2013. The Company will pay interest on overdue principal from time to time on demand at the close rate then in effect to the extent lawful; it will pay interest on overdue installments of business interest, if any (without regard to any applicable grace periods), from time to time on demand at the preceding Interest Record Datesame rate to the extent lawful. Interest shall will be computed on the basis of a 360-day year comprised of twelve 30 30-day months. The Company shall pay Interest All references to “interest” in respect of the Original Principal Amount this Note are deemed to the Securityholder of record on the Interest Record Date even if the Company elects to redeem, or Securityholders elect to require the Company to repurchase, the Securities on a date that is after an Interest Record Date but on or prior to the corresponding Interest Payment Date. In that instance, the Company shall pay accrued and unpaid Interest on the Securities in respect of the Original Principal Amount being redeemed to, but not including, the Redemption Date, the Repurchase Date or the Fundamental Change Repurchase Date, as the case may be, in cash to the Securityholder of record on the Interest Record Date. If the Accreted Principal Amount of any Security, or any accrued and unpaid include Additional Interest, are not paid when due (whether upon acceleration if any, payable pursuant to Section 6.02 7.01 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 5 hereof, upon the date set for payment of the Repurchase Price or Fundamental Change Repurchase Price pursuant to Section 6 hereof, upon the Stated Maturity of the Securities or upon the Interest Payment Dates), then in each such case the overdue amount shall, to the extent permitted by law, bear cash interest at the rate of 3.75% per annum, compounded semi-annually, which interest shall accrue from the date such overdue amount was originally due to the date payment of such amount, including interest thereon, has been made or duly provided for. All such interest shall be payable in cash on demand but if not so demanded shall be paid quarterly to the Holders on the last day of each quarteras applicable.