Document:

Prepared by MerrillDirect

TERAGLOBAL COMUNICATIONS
CORPORATION

SHAREHOLDERS' AGREEMENT

 

THIS
SHAREHOLDERS' AGREEMENT(this “Agreement”) is dated as of
June 28, 2001, by and among TERAGLOBAL COMMUNICATIONS CORP., a Delaware
corporation (the “Company”), WALLERSUTTON 2000, L.P., a Delaware limited
partnership (“WallerSutton”), Robert E. Randall (“Randall”), James A.
Mercer III, (“Mercer”), Grant Holcomb (“Holcomb”) and Paul Cox (“Cox”).
(Randall, Mercer, Holcomb and Cox are sometimes referred to as  “Shareholder” and collectively, the “Shareholders”).

BACKGROUND

             WHEREAS the Company and
WallerSutton have entered into a Series ‘A’ Preferred Stock and Warrant
Purchase Agreement dated June 28, 2001, pursuant to which WallerSutton has
agreed to purchase certain Preferred Stock and Warrants from the Company; and

             WHEREAS
in connection with the transaction, and in consideration of WallerSutton
purchasing the Preferred Stock, the
Shareholders have agreed to restrict transferability of equity interests, and
provide for certain other matters relating to the Company, all as is more fully
described in this Agreement.

             NOW THEREFORE, the Company,
WallerSutton and the Shareholders, in consideration of the foregoing premises
and the mutual covenants contained herein, and intending to be legally bound hereby,
agree as follows:

             SECTION 1.  Definitions

             Capitalized terms used herein and
not otherwise defined shall have the meanings given to such terms herein below:

             (a)         “Affiliate”
means any Person controlling, controlled by, or under common control with another
Person.

             (b)        “Common
Stock” means the Company's Common Stock, par value $.001 per share,
and shares of stock or other securities of any class resulting from the
reclassification, split, combination, or other change thereof, dividends of
securities paid thereon, and securities of any other issuer received in
exchange for such Common Stock in connection with any merger, consolidation,
reorganization, or acquisition involving the Company.

             (c)         “Disinterested
Board” means a majority of the directors of the Company who are not
named as a proposed transferee in a Notice of Offer (as defined in Section
3.1), or any Affiliate of any Shareholder named as a proposed transferee in a
Notice of Offer, serving as directors of the Company.

             

(d)        “Disposition” means any sale,
transfer, encumbrance, gift, donation, assignment, pledge, hypothecation,
issuance or other disposition of any Securities or any interest therein,
whether voluntary or involuntary, including, but not limited to, any
Disposition by operation of law, by court order, by judicial process, or by
foreclosure, levy or attachment. “Dispose” means to engage in a Disposition.

(f)         “Permitted Disposition” means any
Disposition of Common Stock by a Shareholder with respect to the following:

             (i)          A
Disposition by a Shareholder to such Shareholder’s spouse, child or grandchild
or to a testamentary or inter vivos trust for the benefit of such Shareholder
or such Shareholder’s spouse, child or grandchild;

             (ii)         A Disposition of the community property interest of a
Shareholder's spouse in all or any part of the Securities to such Shareholder
upon the death of such spouse or in connection with the termination of the
marital relationship of the Shareholder and such Shareholder's spouse;

              (iii)       A Disposition to
an entity that is controlled, directly or indirectly by the Shareholder,
provided that such entity agrees to be bound by the terms of this Agreement
with respect to any Securities it holds; and

             (iv)       A Disposition of Securities to the Company.

             (g)        “Person”
means any individual, corporation, limited liability company, partnership,
joint venture, association, joint-stock company, unincorporated organization or
government (or any agency or political subdivision thereof).

             (h)        “Preferred
Stock” means the Company's Series A Preferred Stock, par value $.001
per share, and shares of stock or other securities of any class resulting from
the reclassification, split, combination, or other change thereof, dividends of
securities paid thereon, and securities of any other issuer received in
exchange for such Preferred Stock in connection with any merger, consolidation,
reorganization, or acquisition involving the Company.

             (i)          “Pro Rata
Part” means, in any particular instance, the proportion which the
number of Securities owned by a Shareholder bears to the aggregate number of
Securities owned by all Shareholders electing to purchase or sell Securities.

             (j)          “Securities”
means: (i) the Common Stock; (ii) the Preferred Stock; (iii) any other
securities of the Company which generally entitle the holder thereof to vote
for the election of directors at a meeting of stockholders, whether now or
hereafter authorized; and (iv) any rights, warrants, options, convertible
securities or indebtedness, exchangeable securities or indebtedness, or other
rights, which are exercisable for or convertible or exchangeable into, directly
or indirectly, any of the foregoing.

             (k)         “Securities
Act” means the Securities Act of 1933, together with any amendments
thereto and all rules and regulations thereunder and any similar federal
statute, rule or regulation in force in the future.

             (l)          “Subsidiary”
when used in reference to any other Person shall mean any corporation of which
outstanding securities having ordinary voting power to elect a majority of the
Board of Directors of such corporation are owned directly or indirectly by such
other Person.

             SECTION 2.    Restrictions on Transfer of Securities.

             2.1        Restrictions
for Randall.  Except for Permitted
Dispositions, Mr. Randall shall not Dispose of any of his Securities prior to
December 31, 2001. During each of the calendar years 2002 and 2003, Mr. Randall
may Dispose of up to 10% of the Securities that he held as of January 1 of such
year. During each of the calendar years 2004 and 2005, Mr. Randall may Dispose
of up to 50% of the Securities that he held as of January 1 of such year.
During each of the calendar years 2006 through 2008, Mr. Randall may Dispose of
up to 10% of the Securities that he held as of January 1 of such year. Except
for Permitted Dispositions, in the event that Mr. Randall intends to enter into
a transaction or series of related transactions involving the Disposition of
more than 500,000 shares of Common Stock, or Securities exercisable or
convertible into 500,000 shares of Common Stock, to a single purchaser or
related group of purchasers, he will first make the securities available to the
Company, WallerSutton and the other Shareholders pursuant to Section 3
below.  Mr. Randall agrees not to create
or permit to exist any lien, restriction, encumbrance or limitation with
respect to any Securities owned by him.

             2.2        Restrictions
for Mercer.  Except for Permitted
Dispositions, Mr. Mercer shall not Dispose of any of his Securities prior to
December 31, 2001. During each calendar year thereafter, Mr. Mercer may Dispose
of up to 10% of the Securities that he held as of January 1 of such year.  Except for Permitted Dispositions, in the
event that Mr. Mercer intends to enter into a transaction or series of related
transactions involving the Disposition of more than 500,000 shares of Common
Stock, or Securities exercisable or convertible into 500,000 shares of Common
Stock, to a single purchaser or related group of purchasers, he will first make
the securities available to the Company, WallerSutton and the other
Shareholders pursuant to Section 3 below. 
Mr. Mercer agrees not to create or permit to exist any lien,
restriction, encumbrance or limitation with respect to any Securities owned by
him.

             2.3        Restrictions
for Holcomb.  Except for Permitted
Dispositions and up to 10,000 shares of Mr. Holcomb's common stock which he may
dispose of at any time, Mr. Holcomb shall not Dispose of any of his Securities
prior to December 31, 2001. During each calendar year thereafter, Mr. Holcomb
may Dispose of up to 10% of the Securities that he held as of January 1 of such
year.  Except for Permitted
Dispositions, in the event that Mr. Holcomb intends to enter into a transaction
or series of related transactions involving the Disposition of more than
500,000 shares of Common Stock, or Securities exercisable or convertible into
500,000 shares of Common Stock, to a single purchaser or related group of
purchasers, he will first make the securities available to the Company,
WallerSutton and the other Shareholders pursuant to Section 3 below.  Mr. Holcomb agrees not to create or permit
to exist any lien, restriction, encumbrance or limitation with respect to any
Securities owned by him.

             2.4        Restrictions for Cox.  Except for Permitted Dispositions, Mr. Cox
shall not to Dispose of more than2,200,000 shares of Common Stock on or before
June 28, 2002; more than an aggregate 4,400,000 shares of Common Stock on or
before June 28, 2003; or more than an aggregate of 6,600,000 shares of Common
Stock on or before June 28, 2004. 
Except for Permitted Dispositions, in the event that Mr. Cox intends to
enter into a transaction or series of related transactions involving the sale
of more than 500,000 shares of Common Stock, or Securities exercisable or
convertible into 500,000 shares of Common Stock, to a single purchaser or
related group of purchasers, he will first make the securities available to the
Company, WallerSutton and the other Shareholders pursuant to Section 3
below.  Mr. Cox agrees not to create or
permit to exist any lien, restriction, encumbrance or limitation with respect
to any Securities whose transfer is restricted by this Section 2.2; provided,
however, that he may pledge shares of Common Stock to secure tax obligations,
and Merrill Lynch's existing lien on approximately 330,000 shares of Common
Stock shall not constitute a Disposition.

             2.5        Permitted
Pledge to Financial Institutions. 
Notwithstanding any other provision in this Agreement, any Shareholder
may pledge any or all of the Company’s Securities held by such Shareholder to a
bank as security for any liabilities of the Company to such bank.  None of the terms, conditions, restrictions
or provisions of this Agreement shall apply to such pledge or to any
Disposition of any of the Company’s Securities by such bank, or by such bank’s
successors or assigns.

             SECTION 3.    First Refusal Rights.

             In the event that a Shareholder
wishes to sell more than 500,000 Securities to a single purchaser or related
group of purchasers other than as provided for as a Permitted Transaction, the
Shareholder shall sell or otherwise transfer Securities in compliance with the
provisions of this Section 3.

             3.1        A
Shareholder desiring to sell or otherwise transfer Securities in compliance
with this Section (a “Selling Shareholder”) shall first deliver written
notice to the Company (the “Notice of Offer”) specifying (i) the number
of shares of Securities owned by the Selling Shareholder which such Selling
Shareholder wishes to sell (the “Offered Securities”); (ii) the proposed
consideration per share being offered for the Offered Securities (the “Offer
Price”); (iii) the intended purchaser, who must be a bona fide purchaser,
of the Offered Securities and (iv) all other terms and conditions of the
offer.  The Notice of Offer shall
constitute an irrevocable offer by the Selling Shareholder to sell to the
Company, WallerSutton and the other Shareholders the Offered Securities at the
Offer Price.  Within five business days
of its receipt of the Notice of Offer, the Company shall send a copy of the
Notice of Offer to WallerSutton and to each Shareholder.

             3.2        Within
30 days following its receipt of the Notice of Offer, the Company shall notify
the Selling Shareholder, WallerSutton and the other Shareholders as to the
number of the Offered Securities, if any, which the Company is electing to
purchase (such notification shall be referred to hereinafter as the “Company
Acceptance”).  The election to
purchase Offered Securities shall be made only to the extent permitted by
applicable law and approved by the Disinterested Board.  The Company Acceptance shall be deemed to be
an irrevocable commitment of the Company to purchase from the Selling
Shareholder the number of the Offered Securities that the Company has elected
to purchase pursuant to the Company Acceptance.

             3.3        If the Company does not deliver a
Company Acceptance within 30 days following its receipt of the Notice of Offer
or if the Company Acceptance does not provide for the purchase by the Company
of all of the Offered Securities, then, within 15 days following the expiration
of such 30-day notice period or the Company Acceptance, whichever is earlier,
Waller Sutton and each other Shareholder shall notify the Company and the
Selling Shareholder as to the maximum number of Offered Securities they desire
to purchase (such notification is hereinafter referred to as the “Shareholder's
Acceptance”).  If the Company does
not receive a Shareholder's Acceptance from WallerSutton or any of the
Shareholders within such 15-day period, they shall be deemed to have declined
to purchase any of the Offered Securities. 
A Shareholder's Acceptance shall be deemed to be an irrevocable
commitment of WallerSutton or a Shareholder to purchase from the Selling
Shareholder the number of Offered Securities which WallerSutton or such
Shareholder has elected to purchase pursuant to the Shareholder's Acceptance,
subject to allocation of Offered Securities among Waller Sutton and the
Shareholders accepting the Notice of Offer as hereinafter provided.

             3.4        If
the Company, WallerSutton and one or more of the Shareholders elect to purchase
a number of Offered Securities which in the aggregate exceeds the total number
of Offered Securities, the Company shall be entitled to purchase the number of
Offered Securities set forth in the Company Acceptance and the remainder of the
Offered Securities shall be allocated among WallerSutton and those Shareholders
accepting the Selling Shareholder's offer (the “Accepting Shareholders”)
so that each Accepting Shareholder shall be entitled to purchase its Pro Rata
Part of the remainder of the Offered Securities; provided, however,
that no Accepting Shareholder shall be required or entitled to purchase a
number of Offered Securities greater than the number set forth in its
Shareholder's Acceptance.  The Company
shall promptly notify each such Accepting Shareholder of the number of shares
allocated to such Shareholder, and each such Accepting Shareholder shall be
obligated to purchase such Offered Securities allocated to such Shareholder at
the Offer Price for such shares at a closing as set forth in Section 3.6 below.

             3.5        If
the Company and the Accepting Shareholders do not elect to purchase all of the
Offered Securities available for purchase under this Section 3, the Selling
Shareholder (a) shall be under no obligation to sell any of the Offered
Securities to the Company or any Accepting Shareholder, unless the Selling
Shareholder so elects, but (b) may, within a period of four months from the
date of the Notice of Offer, sell such Offered Securities to the intended
purchaser named in the Notice of Offer (the “Third Party Transferee”),
at a price per share not less than the Offer Price and on such other terms and
conditions as are not materially more favorable to the proposed Third Party
Transferee than those specified in the Notice of Offer. If the Selling
Shareholder does not complete the sale of the Offered Securities within such
four-month period, the provisions of this Section 3 shall again apply, and no
sale of Securities of the Selling Shareholder shall be made otherwise than in
accordance with the terms of this Agreement.

             3.6        The closing of purchases of Offered
Securities by the Company, WallerSutton and/or the Shareholders pursuant to
this Section 3 shall take place within 30 days after the delivery of the
Company Acceptance or 60 days after the date of the Notice of Offer, whichever
is later, at 11:00 A.M. local time at the principal office of the Company, or
at such other date, time or place as the parties to the sale may agree.  At such closing, the Selling Shareholder
shall sell, convey, transfer and deliver to each purchaser full right, title
and interest in and to the Offered Securities so purchased, free and clear of
all liens, security interests or adverse claims of any kind and nature (except
as otherwise set forth in this Agreement or in the Notice of Offer), and, if
such purchaser requests that the Offered Securities be certificated, shall
deliver to each purchaser a certificate or certificates representing the
Offered Securities sold, in each case duly endorsed for transfer or accompanied
by appropriate stock transfer powers duly endorsed.  Each purchaser of the Offered Securities shall deliver to the
Selling Shareholder, in full payment of the purchase price of the Offered
Securities being purchased, a certified or bank check payable to the order of
the Selling Shareholder in an amount equal to the aggregate purchase price of
the Offered Securities being acquired by such purchaser.

             SECTION 4.    Tag-Along Right.

             4.1        If WallerSutton or one or more
Shareholders (the "Sellers") propose to transfer to a Third
Party which is not a Shareholder or an Affiliate of a Shareholder (in a sale
consummated in a single transfer or a series of related transfers as part of a
single transaction or group of related transactions) Securities representing
10% or more of the then outstanding Securities (a “Transfer”), and
provided that the Transfer is not a Permitted Disposition, then WallerSutton
and each of the Shareholders other than the Sellers ("Tag-Along
Shareholders") shall have the right ("Tag-Along Right")
to require the proposed purchaser(s) of such Securities to purchase from such
Tag-Along Shareholder up to the number of whole Securities not to exceed the
number derived by multiplying the total number of Securities to be purchased by
the proposed purchaser(s) in such transaction(s) by a fraction, the numerator
of which is the total number of Securities owned by such Tag-Along Shareholder,
and the denominator of which is the total number of Securities owned by the
Sellers and all Tag-Along Shareholders. 
Any Securities purchased from Tag-Along Shareholders pursuant to this
Section 4 shall be paid for at the same price per share and upon the same terms
and conditions as such proposed Transfer by the Sellers ("Transfer
Terms").

             4.2        The Sellers shall promptly notify the
Tag-Along Shareholders in the event they propose to make a Transfer giving rise
to Tag-Along Rights, and shall furnish the Tag-Along Shareholders with the
Transfer Terms and a copy of any written offer or agreement pertaining
thereto.  The Tag-Along Right may be
exercised by any Tag-Along Shareholder by delivery of a written notice to each
Seller proposing to sell Securities ("Tag-Along Notice")
within 15 days following such Tag-Along Shareholder's receipt of such notice
from the Sellers.  The Tag-Along Notice
shall state the number of Securities that such Tag-Along Shareholder proposes
to include in such Transfer to the proposed purchaser (not to exceed the number
determined in accordance with Subsection (a) above).  In the event that the proposed purchaser does not purchase the
specified number of Securities from the Tag-Along Shareholders on the Transfer
Terms, then the Sellers shall not be permitted to sell any Securities to the
proposed purchaser in the proposed Transfer.

             SECTION 5.    Legend on Certificate.

             Certificates representing ownership
of Securities shall bear the following legends:

             “THIS CERTIFICATE IS HELD SUBJECT
TO AN AGREEMENT AMONG THE COMPANY AND CERTAIN OF ITS SHAREHOLDERS, AND THIS
CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE TRANSFERABLE ONLY IN
ACCORDANCE WITH THE TERMS, CONDITIONS AND RESTRICTIONS OF THAT AGREEMENT, A
COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.”

             “THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH SHARES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE
SECURITIES ACT OF 1933, UNLESS IN THE OPINION (WHICH SHALL BE IN THE FORM AND
SUBSTANCE SATISFACTORY TO THE COMPANY) OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.”

Each
Shareholder shall, within ten days after the date on which such Shareholder
executes this Agreement, surrender to the Company the certificates reflecting
his ownership of Securities that do not bear the foregoing legends so that such
legends, as applicable, may be placed on each such certificate.

             SECTION 6.    Transfers Invalid.

             Any attempted Disposition of
Securities, or any interest or right therein, made in violation of this
Agreement shall be null and void.  The
transferee of such Securities shall not be entitled to have such Securities
registered on the books of the Company, and no person shall be entitled to vote
such Securities or receive dividends thereon until such transfer is
rescinded.  In the event of an
involuntary Disposition of Securities which is or is held to be legally
enforceable notwithstanding the provisions of this Agreement, the Company,
WallerSutton and the remaining Shareholders shall have the right, but not the
obligation, to repurchase Securities so disposed, and the transferee in such
involuntary Disposition shall sell such Securities to the Company, WallerSutton
or the remaining Shareholders, as the case may be.  Any election to repurchase under this Section 6 shall be made by
the Company, WallerSutton or the Shareholders, at any time within 365 days of
becoming aware of such involuntary Disposition, in accordance with the
provisions of Section 3, including the right to purchase a Pro Rata Part of the
Securities.  Closing on such repurchase
shall occur within twelve months from the date of receipt of notice of such
involuntary Disposition.  If the Company
and the remaining Shareholders do not make the election to repurchase under
this Section 6, the Person to whom the Securities shall have been involuntarily
disposed immediately and without any affirmative action by any Person shall be
deemed to be a Shareholder hereunder.

SECTION 7.  Termination

             This Agreement and all
restrictions, limitations, rights and obligations set out herein with respect
to the Securities shall terminate upon the occurrence of any of the following events
(i) the dissolution of the Company; (ii)the merger, combination or acquisition
of a controlling interest in the Company or the sale of substantially all of
the assets of the Company to a third party; (iii) the execution of a written
instrument terminating this Agreement by WallerSutton and the Company, or as to
any Shareholder between WallerSutton and the Shareholder; (iv) the seventh
anniversary of this Agreement, (v) the conversion or redemption of an aggregate
of 50% of the Preferred Stock, or (vi) with respect to any Shareholder, two
years following the termination of his employment or directorship with the
Company.  In addition, this Agreement
shall terminate with respect to any such Securities upon the Disposition
thereof, in accordance with the terms of this Agreement, to a Person who is not
a party to this Agreement.

SECTION 8.  Miscellaneous

             8.1        Successors
and Assigns.  This Agreement shall
be binding and inure to the benefit of the heirs, assigns, personal
representatives, guardians, custodians and successors-in-interest of the
parties hereto and of the trustees and beneficiaries of any trust to which
Securities have been transferred pursuant to this Agreement, the voting
trustees of any voting trust to which Securities are transferred and the
trustees of any other trust to which Securities are or have been transferred
(each of the foregoing is herein called a “Successor”).

             8.2        Injunctive
Relief.  It is acknowledged that it
will be impossible to measure in money the damages that would be suffered if
the parties fail to comply with any of the obligations imposed on them by this
Agreement and that, in the event of any such failure, an aggrieved Person will
be irreparably damaged and will not have an adequate remedy at law.  Any such Person shall, therefore, be
entitled to injunctive relief and/or specific performance to enforce such
obligations, and if any action should be brought in equity to enforce any of
the provisions of this Agreement, none of the parties hereto shall raise the
defense that there is an adequate remedy at law.

             8.3        Further
Assurances.  Each party hereto shall
do and perform or cause to be done and performed all such further acts and
things and shall execute and deliver all such other agreements, certificates,
instruments and documents as any other party hereto reasonably may request in
order to carry out the intent and accomplish the purposes of this Agreement and
the consummation of the transactions contemplated hereby.

             8.4        Governing
Law.  This Agreement and the rights
and obligations of the parties hereunder shall be governed by, and construed
and interpreted in accordance with, the laws of the State of New York, without
giving effect to the choice of law principles thereof.

             8.5        Arbitration.  Any dispute, controversy or claim arising
out of or relating to this Agreement or the Ancillary Documents shall be
resolved by confidential binding arbitration in New York City, New York
conducted in accordance with  JAMS'
Comprehensive Arbitration Rules and Procedures then in effect and shall be
submitted to arbitration with JAMS. 
Arbitration shall be initiated by written demand.  The determination of the arbitrator shall be
final and binding on the parties and not subject to further review.  Judgment upon the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof, and for purposes of
enforcing any award, the parties hereby consent to jurisdiction in any state or
federal court located within New York County. 
Each party shall bear its own attorneys’ fees and other costs of the
arbitration, and shall pay on a pro rata basis the arbitrator’s fees and
expenses.  The arbitrator shall have
discretion to award reasonable attorneys’ fees and expenses and the costs of the
arbitration, including the fees of the arbitrator, to the prevailing party only
upon an express determination by the arbitrator that the losing party has acted
in bad faith or in willful disregard of his or its obligations under this
Agreement.  The arbitrator shall have no
authority to award punitive damages. 
Notwithstanding anything to the contrary contained herein, the
provisions of this Section 8.5 shall not apply with regard to (i) any equitable
remedies to which any party may be entitled hereunder, (ii) any fraud claims,
or (iii) any disputes involving claims of third parties.

             8.6        Entire
Agreement; Amendment; Waiver.  This
Agreement and the other related agreements referred to herein or therein (i)
contains the entire agreement among the parties hereto with respect to the
subject matter hereof, (ii) supersedes all prior written agreements and
negotiations and oral understandings, if any, with respect thereto, (iii) may
not be amended or supplemented except by an instrument or counterparts thereof
in writing signed by each of the parties to this Agreement and (iv) may not be
discharged except by such written instrument or by performance.

             8.7        Severability.
Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid, but if any provision of this
Agreement is held to be invalid or unenforceable in any respect, such
invalidity or unenforceability shall not render invalid or unenforceable any
other provision of this Agreement.

             8.8        Notice. All notices, requests,
consents and other communications hereunder to any party shall be deemed to be
sufficient if contained in a written instrument delivered in person or sent by
telecopy, nationally recognized overnight courier or first class registered or
certified mail, return receipt requested, postage prepaid, addressed to such
party at the address set forth below or such other address as may hereafter be
designated in writing by such party to the other parties:

(i)          if to the Company, to:

             TeraGlobal Communications
Corp.

             9171
Towne Centre Drive, 6th Floor

             San Diego, CA  92122

             Telecopy: (858) 404-5555

             Attention: Chief Executive
Officer

 (ii)        if
to WallerSutton, to:

             WallerSutton 2000, L.P.

             500 West Putnam Avenue

             Greenwich, CT 06830

             Telecopy: (203) 861-7515

             Attention: Jack Woodruff

with
a copy to:

             Cadwalader, Wickersham &
Taft

             100 Maiden Lane

             New York, New York  10038

             Telecopy:  (212) 504-6666

             Attention:  Jonathan M. Wainwright, Esq.

(iii)        if to a Shareholder, to the Shareholders
address as reflected on the books and records of the Company.  All such notices, requests, consents and
other communications shall be deemed to have been given when received.

             8.9        Headings.  The headings and captions contained herein
are for convenience only and shall not control or affect the meaning or
construction of any provision hereof.

             8.10      Counterparts. This Agreement may be executed in any
number of counterparts, and each such counterpart hereof shall be deemed to be
an original instrument, but all such counterparts together shall constitute but
one agreement.

 

             IN WITNESS WHEREOF, this
Agreement has been executed by or on behalf of each of the parties hereto as of
the date first above written.

 

	 	 	TERAGLOBAL COMMUNICATIONS CORP.	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	

	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 	 	 	 	 
	 	 	WALLERSUTTON 2000, L.P.	 
	 	 	 	 	 
	 	 	By: WALLERSUTTON 2000, L.L.C.	 
	 	 	 	 	 
	 	 	By:	/s/ HACK WOODRUFF	 
	 	 	 	

	 
	 	 	 	Jack Woodruff, Member	 
	 	 	 	 	 
	 	 	SHAREHOLDERS	 
	 	 	 	 	 
	 	 	/s/ ROBERT E. RANDALL	 
	 	 	

	 
	 	 	Robert E. Randall	 
	 	 	 	 	 
	 	 	/s/ JAMES A. MERCER III	 
	 	 	

	 
	 	 	James A. Mercer III	 
	 	 	 	 	 
	 	 	/s/ GRANT K. HOLCOMB	 
	 	 	

	 
	 	 	Grant K. Holcomb	 
	 	 	 	 	 
	 	 	/s/ PAUL COX	 
	 	 	

	 
	 	 	Paul CoxPrepared by MerrillDirect

EXHIBIT 10(n) – FIRST AMENDMENT
TO THE BRIDGE CREDIT AGREEMENT

BEMIS COMPANY, INC. AND
SUBSIDIARIES

FIRST AMENDMENT

             THIS
FIRST AMENDMENT dated as of August 7, 2001 (this “Amendment”) amends the Bridge
Credit Agreement dated as of January 12, 2001 (the “Credit Agreement”) among
BEMIS COMPANY, INC., various financial institutions and MORGAN GUARANTY TRUST
COMPANY OF NEW YORK, as Administrative Agent. 
Terms defined in the Credit Agreement are, unless otherwise defined
herein or the context otherwise requires, used herein as defined therein.

             WHEREAS,
the Borrower, the Banks and the Administrative Agent have entered into the
Credit Agreement; and

             WHEREAS,
the parties hereto desire to amend the Credit Agreement as set forth herein;

             NOW,
THEREFORE, the parties hereto agree as follows:

             SECTION
1  Amendments.  Subject to the effectiveness hereof pursuant
to Section 3, the Credit Agreement is amended as follows:

	 	1.1 
  Addition of New Definition. 
  the following new definition is added to Section 1.1 in appropriate
  alphabetical order:
	 	 
	 	  
  “2001 Senior Notes” means the senior notes issued by the Borrower in
  the third quarter of 2001 in an amount not 
	 	exceeding $250,000,000.
			

             1.2  Amendment of Definition of Reduction
Event.  Clause (c) of the definition of “Reduction Event”
is amended by (a) deleting the word “or” at the end of clause (iii) and
inserting a comma in its place, (b) adding the word “or” at the end of clause
(iv) and (c) inserting the following new clause (v): “(v) the 2001 Senior
Notes”.

             SECTION
2  Representations and Warranties.  The Borrower represents and warrants to the
Banks and the Agent that (a) each of the representations and warranties set
forth in Section 5 of the Credit Agreement is true and correct as of the date
hereof, with the same effect as if made on such date (except to the extent such
representations and warranties expressly refer to an earlier date, in which
case they were true and correct as of such earlier date), (b) the execution and
delivery hereof by the Borrower and the performance by the Borrower of its
obligations under the Credit Agreement, as amended hereby (as so amended, the
“Amended Credit Agreement”), (i) are within the corporate powers of the
Borrower, (ii) have been duly authorized by all necessary action on the part of
the Borrower, (iii) have received all necessary governmental approval and (iv)
do not and will not contravene or conflict with (x) any provision of applicable
law or the certificate of incorporation or by-laws or other organizational
documents of the Borrower or (y) any agreement, judgment, injunction, order,
decree or other instrument binding upon the Borrower and (c) the Amended Credit
Agreement is a legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency or similar laws of general application
affecting the enforcement of creditors’ rights or by general principles of
equity limiting the availability of equitable remedies.

             SECTION
3  Effectiveness.  The amendments set forth in Section 1
above shall become effective when the Administrative Agent shall have received
(by facimile or otherwise) counterparts of this Amendment executed by the
Company and the Required Banks.

             SECTION
4  Miscellaneous.

             4.1  Counterparts.  This Amendment may be executed in any number
of counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original but all such counterparts
shall together constitute one and the same Amendment.

             4.2  Expenses.  The Borrower agrees to pay all reasonable expenses of the
Administrative Agent, including reasonable fees and charges of special counsel
to the Administrative Agent, in connection with the preparation, execution and
delivery of this Amendment.

             4.3  Governing Law.  This Amendment shall be construed in
accordance with and governed by the law of the State of New York.

             4.4  Successors and Assigns.  This Amendment shall be binding upon the
Borrower, the Banks and the Administrative Agent and their respective
successors and assigns, and shall inure to the benefit of the Borrower, the
Banks and the Administrative Agent and the respective successors and assigns of
the Banks and the Administrative Agent.

             IN
WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year
first above written.

 

	 	 	BEMIS COMPANY, INC.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	MORGAN GUARANTY TRUST COMPANY OF NEW
	 	 	YORK, as Administrative Agent
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	BANK ONE, NA (Main Office Chicago)
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	WACHOVIA BANK, N.A.
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	BBL INTERNATIONAL (U.K.) LIMITED
	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]