Document:

Prepared by MerrillDirect

EMPLOYMENT
AGREEMENT

             THIS EMPLOYMENT AGREEMENT
("Agreement") is effective as of January 29, 2001, by and between
TeraGlobal Communications Corp., a Delaware corporation
("TeraGlobal") and Robert E. Randall ("Randall") with
respect to the following facts.

             A.         TeraGlobal
is engaged primarily in the development, production and sale of networking
software for the delivery of integrated voice, video and data over common
broadband networks.

             B.          TeraGlobal
desires to engage Randall as its Chief Executive Officer and Randall desires to
accept such engagement to provide such services to TeraGlobal all on the terms
set forth in this Agreement.

             NOW THEREFORE, in consideration of
the foregoing premises and the mutual agreements set forth herein, the parties
hereto agree as follows:

             1.          Employment.  TeraGlobal engages Randall to serve as Chief
Executive Officer and Randall hereby accepts such engagement upon the terms and
conditions set forth in this Agreement.

             2.          Duties.  Randall will devote his full business time,
knowledge and skill to the performance of the duties and responsibilities as
Chief Executive Officer Officer of TeraGlobal. 
Randall shall perform the duties typically attendant in the role of
Chief Executive Officer, including oversight of all operating aspects of the
company. Randall shall report directly to the Board of Directors of TeraGlobal,
and shall perform such other duties as the Board of Directors reasonably may
require from time to time. 

             3.          Conflict
of Interest. Randall may act as a consultant for other companies,
non-profit trade organizations engaged in the telecommunications industry, and
may act as a member of the Board of Directors for such companies or
organizations.  This Agreement shall not
prohibit Randall from undertaking any such activities.  Randall understands that as an officer and
director of TeraGlobal he has a fiduciary duty of loyalty to TeraGlobal and
will not provide such services to any entity that directly competes with
TeraGlobal. 

             4.          Term
and Termination.  

                           4.1        Term.  The term of this
Agreement shall be for a period of two years,
subject to annual renewal by the parties prior to the anniversary of this
Agreement. 

                           4.2        Termination. 
Notwithstanding the foregoing, this
Agreement shall terminate immediately, effective upon the occurrence of any one
of the following events:

                                       
(a)         Randall's conviction of a felony or
other crime involving moral turpitude;

             

                                        (b)  
      Randall's continuing material breach of
or failure to perform his obligations hereunder, after reasonable written
notice, warning and opportunity to cure, or his continuing failure to abide by,
conform with or otherwise observe any material written TeraGlobal policy, or
the continuing failure to conform to the reasonable directives of the Board of
Directors;

                                       
(c)         Randall's death;

                                       
(d)        Randall's disability.  Randall shall be deemed disabled if he
becomes incapacitated by reason of sickness, accident or other physical or
mental disability and is unable to perform his normal duties under this Agreement
for a period of sixty (60) consecutive days, with or without reasonable
accommodation by TeraGlobal.

In the event that TeraGlobal terminates
Randall's employment pursuant to Sections 4.2 (a), (b), (c) or (d), TeraGlobal
shall promptly pay to Randall (or in the event that such termination is
pursuant to Section 4.2 (c), to Employee's estate or other legal
representative) the annual base salary provided for in Section 5.1 accrued to
the date of termination and not yet paid. 
Randall's rights and benefits under TeraGlobal's benefit plans and
programs shall be determined in accordance with the terms of such plans and
programs.

                           4.3        Severance Compensation. 
 If TeraGlobal terminates Randall's  employment other than pursuant to Sections
4.2(a), 4.2(b), or 4.2(c), then TeraGlobal shall continue to pay to Randall his
annual base salary, and contributions to medical, dental and life insurance
premiums, in the same periodic installments provided for in Section 5.1 hereof,
for a period equal to one month for each two months of service, up to a maximum
of twelve months (the "Severance Period").  If Randall is terminated under Section 4.2(d) any severance
compensation for base salary will be integrated with any disability insurance
proceeds paid to Randall during the Severance Period so that he receives no
more than an amount equal to 100% of his annual base salary under Section 5.1
during the Severance Period.  

             5.          Compensation
and Benefits.   

                           5.1        Base Salary.  As
compensation for all services rendered by
Randall under this Agreement, TeraGlobal shall pay Randall a base salary of Two
Hundred Twenty Five Thousand Dollars ($225,000.00) per annum.  This compensation shall be paid in
accordance with TeraGlobal's standard payroll procedures. 

                           5.2        Automobile Allowance. 
During the term of this Agreement, Randall
shall receive a $700 per month automobile allowance.

                           5.3        Bonus Salary.  Mr.
Randall shall be eligible to receive as
additional compensation for each year of this Agreement, a bonus payment equal
to 0-50% of his base salary, based on his performance.  The amount of any bonus salary, and the
timing of its payment, shall be determined by the Compensation Committee of the
Board of Directors in its sole discretion.       

             

                           5.4        Business Expenses.  During the term of
this Agreement, TeraGlobal
shall reimburse Randall for all reasonable and necessary out-of-pocket business
expenses of Randall related to Randall's duties hereunder in accordance with
the policies and procedures of TeraGlobal in effect from time to time.

                           5.5        Stock Options.  As
additional compensation for his duties as
Chief Executive Officer, Randall shall be granted 1,000,000 options to purchase
common stock of TeraGlobal pursuant to a separate nonqualified stock option
agreement and shall be eligible to receive additional option grants as
determined from time to time by the Compensation Committee of Board of
Directors of TeraGlobal.

                           5.6        Withholding.  All
compensation paid to Randall under this
Agreement shall be subject to customary withholding and employment taxes as
required by federal and state law.          

                           5.7        Vacation.  Randall
shall be entitled to three (3) weeks
annual paid vacation per year, subject to accrual and use in accordance with
written company policy in effect from time to time during the term of this
Agreement and applicable law.

             6.          Trade
Secrets.  

                           6.1        Trade Secrets In General
 .  During the course of Randall's employment,
Randall will have access to various trade secrets of TeraGlobal.  For purposes of this Agreement, "Trade
Secret" shall mean information that is not generally known to the public
and, as a result, is of economic benefit to TeraGlobal in the conduct of its
business.  Randall and TeraGlobal agree
that Trade Secrets shall include but not be limited to all information
developed or obtained by TeraGlobal and comprising the following items, whether
or not such items have been reduced to tangible form (e.g., physical writing):
all software code, methods, techniques, processes, ideas, trade names, service
marks, slogans, forms, customer lists, pricing structures, menus, business
plans, marketing programs and plans, layouts and designs, financial
information, operational methods and tactics, cost information, the identity of
or contractual arrangements with suppliers, the identity or buying habits of
customers, accounting procedures, and any document, record or other information
of TeraGlobal relating to the above. 
Trade Secrets include not only information belonging to TeraGlobal which
existed before the date of this Agreement, but also information developed by
Randall for TeraGlobal or its employees during the term of this Agreement.

                           6.2        Restriction on Use of Trade Secret
s.  Randall agrees that his use of Trade Secrets
is subject to the following restrictions during the term of the Agreement and
for an indefinite period thereafter so long as the Trade Secrets have not
become generally known to the public:

             

                                        (a)  
       Non-Disclosure.  Randall will not publish or disclose, or
allow to be published or disclosed, Trade Secrets to any person who is not an
employee of TeraGlobal unless such disclosure is necessary for the performance
of Randall's obligations under this Agreement. 

                                       
(b)        Use Restriction.  Randall shall use any Trade Secret only for
the limited purpose for which it was disclosed.  Randall shall not disclose any Trade Secret to any third party
other than in accordance with customary practices and existing agreements with
customers and shall disclose the Trade Secret only to other employees of
TeraGlobal or as provided under such agreements with customers having a need to
know.  Randall shall promptly notify
TeraGlobal of any Trade Secret disclosed other than in accordance herewith.

                                       
(c)        
Non-Removal.  Randall
will not remove any Trade Secrets from the offices of TeraGlobal or the
premises of any facility in which TeraGlobal is performing services, or allow
such removal, other than in accordance with customary practices and existing
agreements with customers.

                                       
(d)        Surrender Upon Termination.  Upon termination of his employment with
TeraGlobal for any reason, Randall will surrender to TeraGlobal all documents
and materials in his possession or control that contain Trade Secrets.

                                       
(e)         Prohibition Against Unfair Competition. At any time
after the termination of his employment with TeraGlobal for any reason, Randall
will not engage in competition with TeraGlobal while making use of the Trade
Secrets of TeraGlobal.

             7.          Inventions.  Any and all inventions, innovations, or
improvements (“Inventions”) made, developed or created by the Randall (whether
at the request or suggestion of TeraGlobal or otherwise, whether alone or in
conjunction with others, and whether during regular hours of work or otherwise)
during the term hereof that may be directly or indirectly useful in, or relate
to, the business of TeraGlobal, shall be promptly and fully disclosed by
Randall to TeraGlobal and shall be TeraGlobal's exclusive property as against
Randall and Randall shall promptly deliver to an appropriate representative of
TeraGlobal all papers, drawings, models, data and other material relating to
any Inventions that he makes or creates. 
Randall shall, at the request of TeraGlobal, and without any payment
therefor, execute any documents necessary or advisable in the opinion of TeraGlobal's
counsel to direct issuance of patents or copyrights to TeraGlobal with respect
to such Inventions as are to be TeraGlobal's exclusive property as against
Randall or to vest in TeraGlobal title to such Inventions as against
Randall.  The expense of securing any
such patent or copyright shall be borne by TeraGlobal.  Notwithstanding the foregoing, the Agreement
does not require assignment of an Invention which qualifies fully for
protection under Section 2870 of the California Labor Code, a copy which is
attached as Exhibit A.

             8.          Non Solicitation.  During the term of employment of Randall and
until the expiration of twenty-four (24) months following the termination of
the employment of Randall, Randall shall not:

                                       
(a)         advise or in any way encourage any
person, firm or corporation who is, at the time of termination of employment of
Randall, or was at any time during the term of employment of Randall with
TeraGlobal, a customer or client of TeraGlobal, to breach any contract with
TeraGlobal;

                                       
(b)        recruit, hire, assist others in the
soliciting, recruiting or hiring, or discuss other employment with, any person
who is at the time of termination of the employment of Randall with TeraGlobal,
or was at anytime during the employment of Randall with TeraGlobal, an employee
of TeraGlobal, or induce or attempt to induce any such employee to terminate
his or her employment with TeraGlobal.

             9.          Unfair
Competition, Misappropriation of Trade Secrets and Violation of Solicitation
Clauses.  Randall acknowledges that
unfair competition, misappropriation of Trade Secrets or violation of any of
the provisions contained in Sections 7 and 8 would cause irreparable injury to
TeraGlobal, that the remedy at law for any violation or threatened violation
thereof would be inadequate, and that TeraGlobal shall be entitled to temporary
and permanent injunctive or other equitable relief without the necessity of
proving actual damages.  Randall agrees
that such relief shall be available in a court of law regardless of the
arbitration provisions contained in Section 12 of this Agreement.      

             10.        Survivorship.  The respective rights and obligations of
Randall and TeraGlobal hereunder shall survive any termination of this
Agreement to the extent necessary to the intended preservation of such rights
and obligations.

             11.        Construction.  The headings used in this Agreement are for
convenience or reference only and shall not affect the construction of, or be
taken into consideration in interpreting, any provision of this Agreement.   The terms of this Agreement shall be
interpreted in accordance with their plain meaning and shall not be construed
for or against a particular party.

             12.        Arbitration.  Except as provided in Section 9, any dispute
or claim that may arise out of the provisions of this Agreement which cannot be
resolved by agreement of the parties acting in good faith within a reasonable
time, including any interpretation or alleged breach hereof, shall be resolved
by arbitration in accordance with the then-effective employment arbitration
rules of the San Diego, California, Chapter of the American Arbitration
Association.  Except as otherwise set
forth in Section 9 hereof, the parties intend that litigation not be used to
settle any dispute or claim arising out of this Agreement.  The written determination and award of the arbitrator
or arbitrators, as applicable, shall be final, binding and conclusive, and such
determination may be entered in any court of competent jurisdiction with each
side to pay their own attorneys' fees and costs.

             13.        Entire
Agreement.  This Agreement and any
agreements referred to in this Agreement, sets forth the entire understanding
and agreement between the parties with respect to the subject matter hereof and
supersedes all other oral or written representations and understandings. This
Agreement may only be modified by a writing signed by Randall and TeraGlobal.

             14.        Severability.  The parties agree that this Agreement is
severable and that in the event any provision of this Agreement is held to be
illegal, invalid or unenforceable, the legality, validity and enforceability of
the remaining provisions will not be affected or impaired.  Additionally, the parties expressly grant to
any court or other entity interpreting this Agreement the power and authority to
modify the terms of this Agreement to extent necessary to allow enforcement of
this Agreement to the fullest extent allowed by law, consistent with the intent
of the parties as evidenced by this Agreement.

             15.        Successors
and Assigns.  This Agreement shall
be binding upon, and inure to the benefit of TeraGlobal and its successors and
assigns.  The services called for under
this Agreement are personal to Randall, and Randall may not assign any of his
rights or obligations under this Agreement without TeraGlobal's prior written
consent.

             16.        Waivers.  No waiver of any of the provisions of this
Agreement shall be deemed to be or shall constitute a waiver of any other
provision of this Agreement, whether or not similar, nor shall any waiver
constitute a continuing waiver.  No
waiver of any provision of this Agreement shall be binding on the parties
hereto unless it is executed in writing by the party making the waiver.

             17.        Counterparts.  This Agreement may be executed in one or
more counterpart copies, each of which shall be deemed to be an original and
all of which taken together shall be deemed one and the same instrument.

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

	 	TeraGlobal
  Communications Corp.
	 	 
	 	 
	 	By: JOHN F.A.V. CECIL

	 	John F.A.V. Cecil, Chairman
	 	 
	 	 
	 	 
	 	ROBERT E. RANDALL

	 	Robert E. Randall

 

EXHIBIT
A

SECTION
2870

CALIFORNIA LABOR CODE

             (a)         Any provision in an employment
agreement which provides that an employee shall assign, or offer to assign, any
of his or her rights in an invention to his or her employer shall not apply to
an invention that the employee developed entirely on his or her own time
without using the employer's equipment, supplies, facilities, or trade secret
information except for those inventions that either:

             (1)         Relate
at the time of conception or reduction to practice of the invention to the
employer's business, or actual or demonstrably anticipated research or
development of the employer; or

             (2)         Result
from any work performed by the employee for the employer.

             (b)        To
the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable.Prepared by MerrillDirect

NON-QUALIFIED STOCK
OPTION AGREEMENT

             THIS NON-QUALIFIED STOCK OPTION
AGREEMENT ("Agreement") is made by and between TeraGlobal
Communications Corp., a Delaware corporation ("TeraGlobal"), and
Robert E. Randall ("Randall").

             NOW, THEREFORE, in consideration of
the mutual benefit to be derived herefrom, TeraGlobal and Randall agree as
follows:

             1.          Grant
of Option.  TeraGlobal hereby grants
to Randall, the right, privilege and option ("Option") to purchase
1,000,000 shares of its common stock ("Stock") at $0.56 per share,
the closing  bid price on the first date
of his employment, as provided for in this Agreement.

             2.          Time
of Exercise of Option.  The Option
shall vest and may be exercised by Randall on the following schedule:

             Base Options:  Base options vest automatically provided
that Randall remains employed with TeraGlobal through the vesting date.

	January
  23, 2001	166,667
  Options
	January
  23, 2002	166,667
  Options
	January
  23, 2003	166,666
  Options

             Performance  Options: 
Performance options vest annually on the date of this Agreement, if and
only if TeraGlobal achieves the performance targets for the fiscal years set
forth below

	Fiscal
  Year 2001	166,667
  Options	 
	 	Performance Target: See attached
  Schedule A.	 
	Fiscal
  Year 2002	166,667
  Options	 
	 	Performance Target: To be determined by
  July 1, 2001	 
	Fiscal
  Year 2003	166,666
  Options
	 	Performance Target: To be determined by
  December 31, 2001
						

             3.          Method of Exercise.  Randall shall exercise the option in the
following manner:

                           3.1        Exercise Notice. 
Randall may exercise the Option, in whole or
in part by written notice to TeraGlobal in the form attached hereto as Exhibit
A (the "Exercise Notice"), stating the number of shares into which
the Option is being exercised.  Any exer­cise
may be with respect to any part or all of the shares then exercisable pursuant
to the Option. In the event the Option becomes exercisable by any person other
than Randall, the required notice under this Subsection 3.1 shall be
accompanied by appropriate proof of the right of such person to exercise the
Option.

                           3.2        Delivery of Shares. 
TeraGlobal will deliver a certificate for
the shares to Randall, subject to the terms of this Agreement and against
delivery to TeraGlobal of the Exercise Price as set forth in Subsection 3.3
below, at TeraGlobal's principal offices, or such other appropriate place as
may be mutually agreed upon.  The shares
will be issued out of previously authorized but unissued shares of Stock or
acquired or reacquired shares of Stock, as TeraGlobal may elect.  TeraGlobal shall not be required to issue
fractional shares.

             

                           3.3        Medium and Time of Payment.  The
Exercise Price shall be payable in full
upon any exercise of the Option by (i) a certified or bank cashier's check,
(ii) a promissory note (as described below), (iii) shares of Stock having a
fair market value on the Exercise Date in an amount equal to the Exercise
Price, or (iv) a combination of a certified or bank cashier's check, a
promissory note and shares of Stock having a fair market value on the Exercise
Date in an amount equal to the balance of the Exercise Price.

                           3.4        Fair Market Value.  The
fair market value of a share of Stock on
any relevant date (and for all other valuation purposes under this Agreement)
shall be determined in accordance with the following provisions:

                                       
3.4.1     Over-the-Counter Stock.  If the Stock is not at the time listed or
admitted to trading on any stock exchange but is traded in the over-the-counter
market, the fair market value shall be the mean between the highest bid and
lowest asked prices (or, if such information is available, the closing selling
price) of one share of Stock on the date in question in the over-the-counter
market, as such prices are reported by the National Association of Securities
Dealers through its NASDAQ system, or any successor system.  If there are no reported bid and asked
prices (or closing selling price) for the Stock on the date in question, then
the mean between the highest bid price and lowest asked price (or the closing
selling price) on the last preceding date for which such quotations exist shall
be determinative of fair market value.

                                       
3.4.2     Stock Exchange Traded Stock.  If the Stock is at the time listed or
admitted to trading on any stock exchange, then the fair market value shall be
the closing selling price of one share of Stock on the date in question on the
stock exchange determined by TeraGlobal's Board of Directors
("Board") to be the primary market for the Stock, as such price is
officially quoted in the composite tape of transactions on such exchange.  If there is no reported sale of Stock on
such exchange on the date in question, then the fair market value shall be the
closing selling price on the exchange on the last preceding date for which such
quotation exists.

                           3.5        Promissory Note. 
Subject to the requirements of applicable
state or Federal law or margin requirements, payment of all or part of the
purchase price of the Stock may be made by delivery of a full recourse
promissory note ("Promissory Note"). 
The Promissory Note shall be executed by Randall, made payable to
TeraGlobal and bear interest at such rate as the Board of Directors shall
determine, but in no case less than the minimum rate under the Internal Revenue
Code for the imputation of interest or original issue discount.  Unless otherwise determined by the Board,
interest on the Promissory Note shall be payable in quarterly installments on
March 31, June 30, September 30 and December 31 of each year.  A Promissory Note shall contain such other
terms and conditions as may be determined by the Board of Directors; provided,
however, that the full principal amount of the Promissory Note and all unpaid
interest accrued thereon shall be due not later than five years from the date
of exercise.  TeraGlobal may obtain from
Randall a security interest in the shares of Stock issued to Randall for the
purpose of securing payment of the Promissory Note and shall retain possession
of the stock certificates representing such shares in order to perfect its
security interest.

             4.          Restrictions on Exercise and
Delivery.  The exercise of each
Option shall be subject to the condition that, if at any time the Board of
Directors shall determine, in its sole and absolute discretion,

(a)         the satisfaction of any withholding tax
or other withholding liabilities, is necessary or desirable as a condition of,
or in connection with, such exercise or the delivery or purchase of Stock
pursuant thereto,

(b)        the listing, registration, or
qualification of any shares deliverable upon such exercise is desirable or
necessary, under any state or federal law, as a condition of, or in connection
with, such exercise or the delivery or purchase of shares pursuant thereto, or

(c)         the consent or approval of any
regulatory body is necessary or desirable as a condition of, or in connection
with, such exercise or the delivery or purchase of shares pursuant thereto,

then
in any such event, such exercise shall not be effective unless such with­holding,
listing, registration, qualification, consent or approval shall have been effected
or obtained free of any conditions not acceptable to the Board.  Randall shall execute such documents and
take such other actions as are required by the Board to enable it to effect or
obtain such withholding, listing, registration, qualification, consent or
approval.  Neither TeraGlobal nor any
officer or director, or member of the Board, shall have any liability with
respect to the non-issuance  of the
shares or Randall's inability to sell shares as the result of any suspensions
imposed pursuant to this Section.

             5.          Termination
of Option.  Except as otherwise
provided in this Agreement, to the extent not previously exercised, the Option
shall terminate upon the first to occur of any of the following events:

(a)         TeraGlobal's dissolution or liquidation;

(b)        10 years from the date of this
Agreement;

(c)         the breach by Randall of any provision
of this Agreement;

(d)        90 days after termination of Randall's
participation as an employee or director with TeraGlobal;

(e)         six months after Randall's death, in which
event the person or persons to whom the rights of Randall hereunder shall pass
may exercise such Option to the extent that Randall, had Randall lived, would
have been entitled to exercise such Option on the date of Randall's death; or

(f)         as more fully set forth in Section
10.2, in the event of a Capital Transaction.

             6.          Nonassignability.  Options may not be sold, pledged, assigned
or transferred in any manner other than by will or by the laws of intestate
succession, and may be exercised during the Randall's lifetime only by
him.  Any transfer by Randall of any
Option granted under the Plan or this Agreement shall void such Option and
TeraGlobal shall have no further obligation with respect to such Option.  No Option shall be pledged or hypothecated
in any way, nor shall any Option be subject to execution, attachment or similar
process.

             7.          Restrictions
on Transfer of Shares Acquired. 
Randall represents and warrants to TeraGlobal that Randall understands
that, as of the date of this Agreement, (a) the Stock issuable upon exercise of
the Option has not been registered under the Securities Act of 1933, as amended
(the "Act") or qualified under any applicable state securities laws
and the Stock must be held indefinitely unless subsequently registered and qualified
thereunder or an exemption from registration and qualification is available,
and (b) TeraGlobal has made no agreements, covenants or undertakings whatsoever
(i) to register under the Act or any applicable securities laws the Stock
issuable upon exercise of this Option, or (ii) about the availability of any
exemption under the Act (including Rule 144 of the Act) or applicable state
securities.  Randall further represents
and warrants to TeraGlobal that he will not transfer the Stock in violation of the
provisions of any applicable securities statute or regulation.

             8.          Restrictive
Legends.  Each certificate
evidencing the shares of Stock acquired under this Agreement, including any
certificate issued to any transferee thereof, shall be imprinted with the
following legend, as well as any legend required by applicable state securities
laws:

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED OR TRANSFERRED IN A
TRANSACTION WHICH WAS NOT REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, IN RELIANCE UPON AN EXEMPTION AFFORDED BY SUCH ACT.  NO SALE OR TRANSFER OF THESE SHARES SHALL BE
MADE, NO ATTEMPTED SALE OR TRANSFER SHALL BE VALID, AND THE ISSUER SHALL NOT BE
REQUIRED TO GIVE ANY EFFECT TO ANY SUCH TRANSACTION UNLESS (A) SUCH TRANSACTION
SHALL HAVE BEEN DULY REGISTERED UNDER THE ACT OR (B) THE ISSUER SHALL HAVE
FIRST RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH REGISTRATION
IS NOT REQUIRED.

          

          9.          Rights as Shareholder.  Neither Randall nor his executor,
administrator, heirs or legatees, shall have any rights or privileges of a
shareholder of TeraGlobal in respect of the Stock unless and until certificates
representing such Stock shall have been issued in Randall's name.

             10.        Adjustments Upon Changes In
Capitalization.

                           10.1      Subdivisions or Consolidations. 
Subject to any required action by
TeraGlobal's shareholders, the number of Shares covered by any unexercised and
outstanding portion of the Option, and the Exercise Price in respect thereof,
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Stock resulting from a subdivision or consolidation of shares
of Stock or the payment of a Stock dividend (but only on all outstanding shares
of Stock) or any other increase or decrease in the number of such shares of
Stock effected without receipt of consideration by TeraGlobal.  Any fraction of a Share that would otherwise
result from an adjustment pursuant to this Subsection shall be rounded downward
to the next full number of Shares without other compensation or consideration.

                           10.2      Capital Transactions.  Upon a sale
of all or substantially all of
the assets of TeraGlobal, a merger or consolidation in which TeraGlobal is not
the surviving corporation, or any other similar transaction (all of the
foregoing shall be referred to as a "Capital Transaction"), if the
exercisability of the unexercised and outstanding portion of the Option is not
accelerated by the Board (as set forth below), and the acquiring corporation,
to the extent applicable, assumes TeraGlobal's obligations under the
unexercised and outstanding portion of the Option, then Randall shall be
entitled thereafter to purchase shares of Stock and other securities and
property in the kind and amount, and at the price, which Randall would have
been entitled had the unexercised and outstanding portion of the Option been
exercised prior to such event.

                           10.3      Board Discretion.  To the extent
that the foregoing adjustments
relate to Stock or securities of TeraGlobal, such adjustments shall be made by
the Board in its reasonable discretion. 
The grant of the Option shall not affect in any way the right or power
of TeraGlobal to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge or to consolidate or
to dissolve, liquidate or sell, or transfer all or any part of its business or
assets.  Whenever TeraGlobal shall take
any action resulting in any adjustment provided for in this Section TeraGlobal
shall forthwith deliver notice of such action to Randall, which notice shall
set forth the number of Shares subject to the unexercised and outstanding
portion of the Option and the Exercise Price in respect thereof resulting from
such adjustment.

                           10.4
     Acceleration of Vesting.  In the event of a Capital Transaction and to
the extent the Option is not yet fully vested in Randall, Randall shall have
the right immediately prior to such sale of assets, merger or consolidation, or
public offering or similar transaction, to exercise the Option in whole or in
part.

             11.        No Right of Employment.  Neither the grant nor exercise of any Option
nor anything in the Plan or this Agreement shall impose upon TeraGlobal or any
other corporation any obligation to employ or continue to employ any Randall.  The right of TeraGlobal and any other
corporation to terminate any employee shall not be diminished or affected
because an Option has been granted to such employee.

             12.        Notices.  Any notice to be given under the terms of
this Agreement shall be addressed to TeraGlobal in care of its Secretary at its
principal office, and any notice to be given to Randall shall be addressed to
such Randall at the address maintained by TeraGlobal for such person or at such
other address as Randall may specify in writing to TeraGlobal.

             13.        Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of Randall, his heirs and successors, and
of TeraGlobal, its successors and assigns.

             14.        Governing
Law.  This Agreement shall be
governed by the laws of the State of California.

             15.        Descriptive
Headings.  Titles to Sections are
solely for information purposes.

             IN WITNESS WHEREOF, this Agreement
is effective as of, and the date of grant shall be, January 29, 2001.

	 	 	TERAGLOBAL COMMUNICATIONS CORP.,
	 	 	 
	 	 	 
	 	 	By:JOHN
  F.A.V. CECIL

	 	 	John F.A.V. Cecil, Chairman
	 	 	 
	 	 	 
	 	 	 
	 	 	ROBERT E. RANDALL

	 	 	Robert E. Randall

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]