Document:

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THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

                [TeraGlobal(TM) COMMUNICATIONS CORPORATION LOGO]

                        WARRANT TO PURCHASE COMMON STOCK

                      (Void After 5 P.M. December __, 2001)

      For value received, _______________________________, or its assigns (the
"Holder"), is entitled to purchase _______________ (________) fully paid and
non-assessable shares (the "Shares") of Common Stock of TERAGLOBAL
COMMUNICATIONS CORP., a Delaware corporation ("TeraGlobal"), subject to the
terms and conditions set forth in this Warrant.

1. Terms of Warrant.

      1.1 Term. This Warrant is being issued effective on June ___, 2000. The
term of this Warrant is eighteen (18) months, and must be exercised, if at all,
no later than 5:00 P.M., December ___, 2001.

      1.2 Exercise Price. The exercise price shall be $4.00 per Share ("Exercise
Price") subject to any adjustments made pursuant to Section 2 of this Warrant.

      1.3 Method of Exercise. At any time during the term of this Warrant, the
Holder purchase all or any part (but not for a fraction of a share) of the
Shares of Common Stock by surrendering: (i) this Warrant, (ii) an executed
Subscription Agreement (in the form attached hereto), and (iii) payment in cash
or by check of the aggregate Excercise Price for the number of Shares for which
this Warrant is being exercised to TeraGlobal at its principal office. The
Shares purchased under this Warrant shall be deemed to be issued to the Holder
as of the close of business on the date on which this Warrant is properly
exercised.

      1.4 Delivery of Certificate and New Warrant. TeraGlobal will promptly
issue to the Holder certificates for the Shares of Common Stock purchased by
exercise of this Warrant. Each stock certificate so delivered shall be in such
denominations of Common Stock as may be requested by the Holder hereof and shall
be registered in the name of such Holder. If the Warrant is exercised for less
than all the Shares represented by this Warrant, TeraGlobal will cancel this
Warrant and execute and deliver a new Warrant of like tenor for the balance of
the Shares.

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      1.5 Redemption of Warrants. If at any time while a Registration Statement
covering the transfer of the Shares is in effect and the closing bid price for
the Common Stock as reflected on the Nasdaq National Market (or any other
exchange on which the Common Stock is listed), exceeds $7.00 per share for 20
consecutive trading days, then TeraGlobal shall have the option to redeem this
Warrant, at a price of $0.01 per Share (the "Redemption Price"). To effect a
redemption TeraGlobal will send a written notice of its election to redeem the
Warrants at least thirty (30) days prior to a specified redemption. On the
redemption date, the holders of record of redeemed Warrants shall be entitled to
payment of the Redemption Price upon surrender of such redeemed Warrants to
TeraGlobal at the principal office of TeraGlobal. From and after the redemption
date, all of the Holder's rights (except the right to receive the Redemption
Price) shall terminate.

      1.6 Taxes. The Holder shall not be responsible for any taxes arising out
of the issuance of the Shares (other than any applicable income taxes) issued
upon the exercise of the Warrant. TeraGlobal shall not be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the then Holder of the
Warrant being exercised.

      1.7 Lost Warrants. Upon receipt of evidence reasonably satisfactory to
TeraGlobal of the loss, theft, destruction, or mutilation of this Warrant upon
receipt of an indemnity reasonably satisfactory to TeraGlobal, or in the case of
any such mutilation upon surrender and cancellation of such Warrant, TeraGlobal,
at its expense, will make and deliver a new Warrant, of like tenor, in lieu of
the lost, stolen, destroyed or mutilated Warrant.

      1.8 Fractional Shares. No fractional shares shall be issued upon exercise
of this Warrant. TeraGlobal shall, in lieu of issuing any fractional share, pay
the holder entitled to such fraction a sum in cash equal to such fraction
multiplied by the then effective Exercise Price.

      1.9 No Voting or Dividend Rights. The Holder shall not be deemed a
stockholders and shall not have the right to receive dividends, vote or consent,
or any other rights as a stockholder unless and until this Warrant has been
exercised.

2. Adjustments to the Shares.

      2.1 Stock Splits. If TeraGlobal subdivides its outstanding shares of
Common Stock into a greater number of shares during the term of this Warrant,
the Exercise Price in effect immediately prior to such subdivision shall be
proportionately reduced. Conversely, if TeraGlobal combines its outstanding
shares into a smaller number of shares, the Exercise Price in effect immediately
prior to such combination shall be proportionately increased. Any adjustment
under this subsection 2.1 shall become effective at the close of business on the
date the subdivision or combination becomes effective.

      2.2 Stock Dividend and Distributions. If TeraGlobal declares a dividend or
other distribution payable in shares of Common Stock, or rights or shares of any
other securities which are at any time directly or indirectly convertible into
or exchangeable for Common Stock, during the term of this Warrant, then Holder,
upon exercise of this Warrant after the record date for the determination of
holders of Common Stock entitled to

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receive such dividend, shall be entitled to receive upon exercise of this
Warrant, in addition to the number of Shares of Common Stock as to which this
Warrant is exercised, such additional shares of Common Stock as such Holder
would have received had this Warrant been exercised immediately prior to such
record date and the Exercise Price will be proportionately adjusted.

      2.3 Notices of Changes. TeraGlobal will give the Holder at least ten (10)
days' prior written notice of the date on which a record will be taken if it at
any time proposes to (i) declare any dividend or distribution upon its Common
Stock, whether in cash, property, stock or other securities and whether or not a
regular cash dividend; (ii) offer for subscription pro rata to the holders of
any class or series of its stock any additional shares of stock of any class or
series or other rights; (iii) to effect any reclassification or recapitalization
of Common Stock; or (iv) to merge or consolidate with or into any other
corporation, or sell, lease, license, or convey all or substantially all of its
assets, or (v) to liquidate, dissolve or wind up.

      2.4 Exercise Price Adjusted. No such adjustment under this Article 2 shall
be made unless such adjustment would change the Exercise Price at the time by
$.01 or more; provided, however, that all adjustments not so made shall be
deferred and made when the aggregate thereof would change the Exercise Price at
the time by $.01 or more. No adjustment made pursuant to any provision of this
Article 2 shall have the net effect of increasing the Exercise Price in relation
to the split adjusted and distribution adjusted price of the Common Stock. The
number of Shares of Common Stock subject hereto shall increase proportionately
with each decrease in the Exercise Price.

      2.5 Adjustments: Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment made pursuant to this Article 2,
Holder shall, upon exercise of this Warrant, become entitled to receive shares
and/or other securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to Shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Article 2.

      2.6 Observance of Duties. TeraGlobal shall not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid its observance or performance of any of
the terms of this Warrant, but shall at all times in good faith assist in the
carrying out of all the provisions of this Article 2 and in the taking of all
such action as may be necessary or appropriate in order to protect the Holder's
rights under this Article against dilution or other impairment.

3. TeraGlobal's Representations and Warranties.

      3.1 Shares Fully Paid. TeraGlobal represents and warrants that all Shares
of Common Stock which may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be duly authorized, validly issued, fully
paid and non-assessable and free from all preemptive rights of any stockholder
and free of all taxes, liens and charges with respect to the issue thereof.

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      3.2 Shares Reserved. TeraGlobal further represents and warrants that,
during the term of this Warrant, it will at all times have authorized and
reserved, for the purpose of issue or transfer upon exercise of the subscription
rights evidenced by this Warrant, a sufficient number of shares of authorized
but unissued Common Stock, or other securities and property, when and as
required to provide for the exercise of the rights represented by this Warrant.
TeraGlobal will take all such action as may be necessary to assure that such
Shares of Common Stock may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any domestic securities
exchange upon which the Common Stock may be listed. TeraGlobal will not take any
action which would result in any adjustment of the Exercise Price (as set forth
in Article 2 hereof) if the total number of Shares of Common Stock issuable
after such action upon exercise of all outstanding warrants, together with all
shares of Common Stock then outstanding and all shares of Common Stock then
issuable upon exercise of all options and upon the conversion of all convertible
securities then outstanding, would exceed the total number of shares of Common
Stock then authorized by the TeraGlobal's Certificate of Incorporation.

4. The Holder's Representations and Warranties.

      4.1 Purchase for Own Account. The Holder represents that it is acquiring
this Warrant and the Common Stock issuable upon exercise of this Warrant
(collectively, the "Securities") solely for its own account and beneficial
interest for investment and not for sale or with a view to distribution of the
Securities or any part thereof, has no present intention of selling (in
connection with a distribution or otherwise), granting any participation in, or
otherwise distributing the same, and does not presently have reason to
anticipate a change in such intention.

      4.2 Information and Sophistication. The Holder acknowledges that it has
received all the information it has requested from TeraGlobal and considers
necessary or appropriate for deciding whether to acquire this Warrant. The
Holder represents that it has had an opportunity to ask questions and receive
answers from TeraGlobal regarding the terms and conditions of the offering of
this Warrant and to obtain any additional information necessary to verify the
accuracy of the information given the Holder. The Holder further represents that
it has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risk of this investment.

      4.3 Limitations on Disposition. Without in any way limiting the
representations set forth above, Holder further agrees not to make any
disposition of all or any portion of the Securities unless and until: (i) there
is then in effect a Registration Statement under the Securities Act of 1933, as
amended ("1933 Act") covering such proposed disposition and such disposition is
made in accordance with such Registration Statement; or (ii) the Holder shall
have notified TeraGlobal of the proposed disposition and shall have furnished
TeraGlobal with an opinion of counsel, reasonably satisfactory to TeraGlobal,
that such disposition will not require registration under the 1933 Act.

      4.4 Legends. It is understood that the certificates evidencing the Common
Stock issuable upon exercise hereof (and the Common Stock issuable upon
conversion thereof) may bear the following legend and any legend imposed by
applicable state securities laws.

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      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
      OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
      REGISTERED UNDER THE ACT OR UNLESS THE ISSUER HAS RECEIVED AN OPINION OF
      COUNSEL SATISFACTORY TO THE ISSUER AND ITS COUNSEL THAT SUCH REGISTRATION
      IS NOT REQUIRED.

5. Transfer and Registration.

      5.1 Warrants Transferable. Subject to Article 4 above and compliance with
applicable federal and state securities laws, this Warrant and all rights
hereunder are transferable, in whole or in part, without charge to the holder
hereof (except for transfer taxes), upon surrender of this Warrant properly
endorsed along with a completed warrant assignment in the form attached hereto
as Exhibit B. TeraGlobal shall effect the assignment within ten (10) days, and
shall deliver to the assignee(s) designated by the Holder a Warrant or Warrants
of like tenor and terms for the appropriate number of shares. Each taker and
holder of this Warrant, by taking or holding the same, consents and agrees that
this Warrant, when endorsed in blank, shall be deemed negotiable, and that the
holder hereof, when this Warrant shall have been so endorsed, may be treated by
TeraGlobal, at TeraGlobal's option, and all other persons dealing with this
Warrant as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented by this Warrant, or to the transfer hereof on
the books of TeraGlobal any notice to the contrary notwithstanding; but until
such transfer on such books, TeraGlobal may treat the registered owner hereof as
the owner for all purposes.

      5.2 Registrable Securities. The Common Stock issuable upon the exercise of
this Warrant constitutes "Registrable Securities" under that certain
Registration Rights Agreement of even date between TeraGlobal and certain
investors and, accordingly, has the benefit of registration rights pursuant to
that Agreement.

6. General.

      6.1 Modification and Waiver. This Warrant may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of the same is sought.

      6.2 Notices. Except as otherwise provided in this Warrant, any requirement
for a notice, demand or request under this Warrant will be satisfied by a
writing (i) hand delivered with receipt; (ii) mailed by United States registered
or certified mail or Express Mail, return receipt requested, postage prepaid; or
(iii) sent by Federal Express or any other internationally recognized overnight
courier service, and addressed as follows: if to the Holder, at its address as
shown on the books of TeraGlobal, until another address is designated in writing
by Holder; and if to TeraGlobal, to the Attention: President, TeraGlobal
Communications Corp., 9171 Towne Centre Drive, 6th Floor, San Diego, California
92122. All notices that are sent in accordance with this Section 6.2 will be
deemed received by the Holder or TeraGlobal on the earliest of the following
applicable time periods: (i) the date the return receipt is executed; or (ii)
the date

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delivered as documented by the overnight courier service or the hand delivery
receipt. Either the Holder or TeraGlobal may designate a change of address by
written notice to the other party.

      6.3 Binding Effect on Successors. This Warrant shall be binding upon any
corporation succeeding TeraGlobal by merger, consolidation or acquisition of all
or substantially all of TeraGlobal's assets. All of the obligations of
TeraGlobal relating to the Common Stock issuable upon the exercise of this
Warrant (and the Common Stock issuable upon conversion thereof) shall survive
the exercise and termination of this Warrant. All of the covenants and
agreements of TeraGlobal shall inure to the benefit of the successors and
assigns of the holder hereof.

      6.4 Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of California.

      6.5 Severability. In case any provision of this Agreement shall be
declared invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

      IN WITNESS WHEREOF, TeraGlobal has caused this Warrant to be duly executed
by its officers, there unto duly authorized this ______ day of June, 2000.

TERAGLOBAL COMMUNICATIONS CORP.,
 a Delaware corporation

By: ___________________________________
    David Fann, Chief Executive Officer

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                                    EXHIBIT A

                                SUBSCRIPTION FORM

                             Date: _________________

TERAGLOBAL COMMUNICATIONS CORP.
9171 Towne Centre Drive, 6th Floor
San Diego, California 92122-1234

Attn: ___________________________

Ladies and Gentlemen:

      We hereby exercise the warrant issued to us by TeraGlobal Communications
Corp. (the "Company") and dated June __, 2000 (the "Warrant") and to purchase
thereunder _______________ shares of TeraGlobal's Common Stock at the current
Exercise Price (as defined in the Warrant) for an aggregate purchase price of
______________ Dollars ($__________).

      Pursuant to the terms of the Warrant we are concurrently delivering the
Exercise Price herewith in full in cash or by certified check or wire transfer.
The undersigned also confirms the representations and agreements set forth in
Article 4 of the Warrant.

Very truly yours,

By:___________________________
Name: ________________________
<PAGE>

                                    EXHIBIT B

                               WARRANT ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
all of the rights of the undersigned in that number of shares specified below of
that certain Warrant or Warrants identified below to purchase that number of
shares of Common Stock of TeraGlobal Communications Corp., a Delaware
corporation, specified below and does hereby irrevocably constitute and appoint
______________________ as its Attorney to transfer said shares on the books of
said corporation with full power of substitution in the premises.

Dated: ___________, _____

                             SHARES OF COMMON STOCK

--------------------------------------------------------------------------------
Warrant Serial No.     Underlying Warrant      Number of Warrant       Name of
                      (The"Warrant Shares")    Shares Transferred    Transferee
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                         -------------------------------
                         (Print Name of Warrant Holder)

                         -------------------------------
                         (Authorized Signature)

                         -------------------------------
                         (Title, if applicable)<PAGE>

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

                [TeraGlobal(TM) COMMUNICATIONS CORPORATION LOGO]

                        WARRANT TO PURCHASE COMMON STOCK

                             Warrant Serial No. 00-3

                      (Void After 5 P.M. November 30, 2002)

      For value received, _____________, or its assigns (the "Holder"), is
entitled to purchase ____________________________(______) fully paid and
non-assessable shares (the "Shares") of Common Stock of TERAGLOBAL
COMMUNICATIONS CORP., a Delaware corporation ("TeraGlobal"), subject to the
terms and conditions set forth in this Warrant.

1. Terms of Warrant.

      1.1 Term. This Warrant is being issued effective on November 30, 2000. The
term of this Warrant is twenty-four (24) months, and must be exercised, if at
all, no later than 5:00 P.M., November 30, 2002.

      1.2 Exercise Price. The exercise price shall be $1.00 per Share ("Exercise
Price") subject to any adjustments made pursuant to Section 2 of this Warrant.

      1.3 Method of Exercise. At any time during the term of this Warrant, the
Holder may purchase all or any part (but not for a fraction of a share) of the
Shares of Common Stock by surrendering: (i) this Warrant, (ii) an executed
Subscription Agreement (in the form attached hereto), and (iii) payment in cash
or by check of the aggregate Exercise Price for the number of Shares for which
this Warrant is being exercised to TeraGlobal at its principal office. The
Shares purchased under this Warrant shall be deemed to be issued to the Holder
as of the close of business on the date on which this Warrant is properly
exercised.

      1.4 Delivery of Certificate and New Warrant. TeraGlobal will promptly
issue to the Holder certificates for the Shares of Common Stock purchased by
exercise of this Warrant. Each stock certificate so delivered shall be in such
denominations of Common Stock as may be requested by the Holder hereof and shall
be registered in the name of such Holder. If the Warrant is exercised for less
than all the Shares represented by this Warrant, TeraGlobal will cancel this
Warrant and execute and deliver a new Warrant of like tenor for the balance of
the Shares.

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      1.5 Redemption of Warrants. If at any time while a Registration Statement
covering the transfer of the Shares is in effect and the closing bid price for
the Common Stock as reflected on the Nasdaq National Market (or any other
exchange on which the Common Stock is listed), exceeds $7.00 per share for 20
consecutive trading days, then TeraGlobal shall have the option to redeem this
Warrant, at a price of $0.01 per Share (the "Redemption Price"). To effect a
redemption TeraGlobal will send a written notice of its election to redeem the
Warrants at least thirty (30) days prior to a specified redemption. On the
redemption date, the holders of record of redeemed Warrants shall be entitled to
payment of the Redemption Price upon surrender of such redeemed Warrants to
TeraGlobal at the principal office of TeraGlobal. From and after the redemption
date, all of the Holder's rights (except the right to receive the Redemption
Price) shall terminate.

      1.6 Taxes. The Holder shall not be responsible for any taxes arising out
of the issuance of the Shares (other than any applicable income taxes) issued
upon the exercise of the Warrant. TeraGlobal shall not be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the then Holder of the
Warrant being exercised.

      1.7 Lost Warrants. Upon receipt of evidence reasonably satisfactory to
TeraGlobal of the loss, theft, destruction, or mutilation of this Warrant upon
receipt of an indemnity reasonably satisfactory to TeraGlobal, or in the case of
any such mutilation upon surrender and cancellation of such Warrant, TeraGlobal,
at its expense, will make and deliver a new Warrant, of like tenor, in lieu of
the lost, stolen, destroyed or mutilated Warrant.

      1.8 Fractional Shares. No fractional shares shall be issued upon exercise
of this Warrant. TeraGlobal shall, in lieu of issuing any fractional share, pay
the holder entitled to such fraction a sum in cash equal to such fraction
multiplied by the then effective Exercise Price.

      1.9 No Voting or Dividend Rights. The Holder shall not be deemed a
stockholder and shall not have the right to receive dividends, vote or consent,
or any other rights as a stockholder unless and until this Warrant has been
exercised.

2. Adjustments to the Shares.

      2.1 Stock Splits. If TeraGlobal subdivides its outstanding shares of
Common Stock into a greater number of shares during the term of this Warrant,
the Exercise Price in effect immediately prior to such subdivision shall be
proportionately reduced. Conversely, if TeraGlobal combines its outstanding
shares into a smaller number of shares, the Exercise Price in effect immediately
prior to such combination shall be proportionately increased. Any adjustment
under this subsection 2.1 shall become effective at the close of business on the
date the subdivision or combination becomes effective.

      2.2 Stock Dividend and Distributions. If TeraGlobal declares a dividend or
other distribution payable in shares of Common Stock, or rights or shares of any
other securities which are at any time directly or indirectly convertible into
or exchangeable for Common Stock, during the term of this Warrant, then Holder,
upon exercise of this Warrant after the record date for the

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determination of holders of Common Stock entitled to receive such dividend,
shall be entitled to receive upon exercise of this Warrant, in addition to the
number of Shares of Common Stock as to which this Warrant is exercised, such
additional shares of Common Stock as such Holder would have received had this
Warrant been exercised immediately prior to such record date and the Exercise
Price will be proportionately adjusted.

      2.3 Notices of Changes. TeraGlobal will give the Holder at least ten (10)
days' prior written notice of the date on which a record will be taken if it at
any time proposes to (i) declare any dividend or distribution upon its Common
Stock, whether in cash, property, stock or other securities and whether or not a
regular cash dividend; (ii) offer for subscription pro rata to the holders of
any class or series of its stock any additional shares of stock of any class or
series or other rights; (iii) to effect any reclassification or recapitalization
of Common Stock; or (iv) to merge or consolidate with or into any other
corporation, or sell, lease, license, or convey all or substantially all of its
assets, or (v) to liquidate, dissolve or wind up.

      2.4 Exercise Price Adjusted. No such adjustment under this Article 2 shall
be made unless such adjustment would change the Exercise Price at the time by
$.01 or more; provided, however, that all adjustments not so made shall be
deferred and made when the aggregate thereof would change the Exercise Price at
the time by $.01 or more. No adjustment made pursuant to any provision of this
Article 2 shall have the net effect of increasing the Exercise Price in relation
to the split adjusted and distribution adjusted price of the Common Stock. The
number of Shares of Common Stock subject hereto shall increase proportionately
with each decrease in the Exercise Price.

      2.5 Adjustments: Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment made pursuant to this Article 2,
Holder shall, upon exercise of this Warrant, become entitled to receive shares
and/or other securities or assets (other than Common Stock) then, wherever
appropriate, all references herein to Shares of Common Stock shall be deemed to
refer to and include such shares and/or other securities or assets; and
thereafter the number of such shares and/or other securities or assets shall be
subject to adjustment from time to time in a manner and upon terms as nearly
equivalent as practicable to the provisions of this Article 2.

      2.6 Observance of Duties. TeraGlobal shall not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid its observance or performance of any of
the terms of this Warrant, but shall at all times in good faith assist in the
carrying out of all the provisions of this Article 2 and in the taking of all
such action as may be necessary or appropriate in order to protect the Holder's
rights under this Article against dilution or other impairment.

3. TeraGlobal's Representations and Warranties.

      3.1 Shares Fully Paid. TeraGlobal represents and warrants that all Shares
of Common Stock which may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be duly authorized, validly issued, fully
paid and non-assessable and free

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from all preemptive rights of any stockholder and free of all taxes, liens and
charges with respect to the issue thereof.

      3.2 Shares Reserved. TeraGlobal further represents and warrants that,
during the term of this Warrant, it will at all times have authorized and
reserved, for the purpose of issue or transfer upon exercise of the subscription
rights evidenced by this Warrant, a sufficient number of shares of authorized
but unissued Common Stock, or other securities and property, when and as
required to provide for the exercise of the rights represented by this Warrant.
TeraGlobal will take all such action as may be necessary to assure that such
Shares of Common Stock may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any domestic securities
exchange upon which the Common Stock may be listed. TeraGlobal will not take any
action which would result in any adjustment of the Exercise Price (as set forth
in Article 2 hereof) if the total number of Shares of Common Stock issuable
after such action upon exercise of all outstanding warrants, together with all
shares of Common Stock then outstanding and all shares of Common Stock then
issuable upon exercise of all options and upon the conversion of all convertible
securities then outstanding, would exceed the total number of shares of Common
Stock then authorized by the TeraGlobal's Certificate of Incorporation.

4. The Holder's Representations and Warranties.

      4.1 Purchase for Own Account. The Holder represents that it is acquiring
this Warrant and the Common Stock issuable upon exercise of this Warrant
(collectively, the "Securities") solely for its own account and beneficial
interest for investment and not for sale or with a view to distribution of the
Securities or any part thereof, has no present intention of selling (in
connection with a distribution or otherwise), granting any participation in, or
otherwise distributing the same, and does not presently have reason to
anticipate a change in such intention.

      4.2 Information and Sophistication. The Holder acknowledges that it has
received all the information it has requested from TeraGlobal and considers
necessary or appropriate for deciding whether to acquire this Warrant. The
Holder represents that it has had an opportunity to ask questions and receive
answers from TeraGlobal regarding the terms and conditions of the offering of
this Warrant and to obtain any additional information necessary to verify the
accuracy of the information given the Holder. The Holder further represents that
it has such knowledge and experience in financial and business matters that it
is capable of evaluating the merits and risk of this investment.

      4.3 Limitations on Disposition. Without in any way limiting the
representations set forth above, Holder further agrees not to make any
disposition of all or any portion of the Securities unless and until: (i) there
is then in effect a Registration Statement under the Securities Act of 1933, as
amended ("1933 Act") covering such proposed disposition and such disposition is
made in accordance with such Registration Statement; or (ii) the Holder shall
have notified TeraGlobal of the proposed disposition and shall have furnished
TeraGlobal with an opinion of counsel, reasonably satisfactory to TeraGlobal,
that such disposition will not require registration under the 1933 Act.

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<PAGE>

      4.4 Legends. It is understood that the certificates evidencing the Common
Stock issuable upon exercise hereof (and the Common Stock issuable upon
conversion thereof) may bear the following legend and any legend imposed by
applicable state securities laws.

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
      OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
      REGISTERED UNDER THE ACT OR UNLESS THE ISSUER HAS RECEIVED AN OPINION OF
      COUNSEL SATISFACTORY TO THE ISSUER AND ITS COUNSEL THAT SUCH REGISTRATION
      IS NOT REQUIRED.

5. Warrants Transferable. Subject to Article 4 above and compliance with
applicable federal and state securities laws, this Warrant and all rights
hereunder are transferable, in whole or in part, without charge to the holder
hereof (except for transfer taxes), upon surrender of this Warrant properly
endorsed along with a completed warrant assignment in the form attached hereto
as Exhibit B. TeraGlobal shall effect the assignment within ten (10) days, and
shall deliver to the assignee(s) designated by the Holder a Warrant or Warrants
of like tenor and terms for the appropriate number of shares. Each taker and
holder of this Warrant, by taking or holding the same, consents and agrees that
this Warrant, when endorsed in blank, shall be deemed negotiable, and that the
holder hereof, when this Warrant shall have been so endorsed, may be treated by
TeraGlobal, at TeraGlobal's option, and all other persons dealing with this
Warrant as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented by this Warrant, or to the transfer hereof on
the books of TeraGlobal any notice to the contrary notwithstanding; but until
such transfer on such books, TeraGlobal may treat the registered owner hereof as
the owner for all purposes.

6. General.

      6.1 Modification and Waiver. This Warrant may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of the same is sought.

      6.2 Notices. Except as otherwise provided in this Warrant, any requirement
for a notice, demand or request under this Warrant will be satisfied by a
writing (i) hand delivered with receipt; (ii) mailed by United States registered
or certified mail or Express Mail, return receipt requested, postage prepaid; or
(iii) sent by Federal Express or any other internationally recognized overnight
courier service, and addressed as follows: if to the Holder, at its address as
shown on the books of TeraGlobal, until another address is designated in writing
by Holder; and if to TeraGlobal, to the Attention: President, TeraGlobal
Communications Corp., 9171 Towne Centre Drive, 6th Floor, San Diego, California
92122. All notices that are sent in accordance with this Section 6.2 will be
deemed received by the Holder or TeraGlobal on the earliest of the following
applicable time periods: (i) the date the return receipt is executed; or (ii)
the date delivered as documented by the overnight courier service or the hand
delivery receipt. Either the Holder or TeraGlobal may designate a change of
address by written notice to the other party.

                                       5
<PAGE>

      6.3 Binding Effect on Successors. This Warrant shall be binding upon any
corporation succeeding TeraGlobal by merger, consolidation or acquisition of all
or substantially all of TeraGlobal's assets. All of the obligations of
TeraGlobal relating to the Common Stock issuable upon the exercise of this
Warrant (and the Common Stock issuable upon conversion thereof) shall survive
the exercise and termination of this Warrant. All of the covenants and
agreements of TeraGlobal shall inure to the benefit of the successors and
assigns of the holder hereof.

      6.4 Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of California.

      6.5 Severability. In case any provision of this Agreement shall be
declared invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

      IN WITNESS WHEREOF, TeraGlobal has caused this Warrant to be duly executed
by its officers, there unto duly authorized this 31 day of January, 2001.

TERAGLOBAL COMMUNICATIONS CORP.,
 a Delaware corporation

By: _____________________________
    Paul Cox, President

                                       6
<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                             Date: _________________

TERAGLOBAL COMMUNICATIONS CORP.
9171 Towne Centre Drive, 6th Floor
San Diego, California 92122-1234

Attn: ___________________________

Ladies and Gentlemen:

      We hereby exercise the warrant issued to us by TeraGlobal Communications
Corp. (the "Company") and dated ________________________(the "Warrant") and to
purchase thereunder _______________ shares of TeraGlobal's Common Stock at the
current Exercise Price (as defined in the Warrant) for an aggregate purchase
price of ______________ Dollars ($__________).

      Pursuant to the terms of the Warrant we are concurrently delivering the
Exercise Price herewith in full in cash or by certified check or wire transfer.
The undersigned also confirms the representations and agreements set forth in
Article 4 of the Warrant.

Very truly yours,

By:___________________________
Name: ________________________
<PAGE>

                                    EXHIBIT B

                               WARRANT ASSIGNMENT

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers all of the rights of the undersigned in that number of shares
specified below of that certain Warrant or Warrants identified below to purchase
that number of shares of Common Stock of TeraGlobal Communications Corp., a
Delaware corporation, specified below and does hereby irrevocably constitute and
appoint ______________________ as its Attorney to transfer said shares on the
books of said corporation with full power of substitution in the premises.

Dated: ___________, _____

                             SHARES OF COMMON STOCK

--------------------------------------------------------------------------------
Warrant Serial No.     Underlying Warrant      Number of Warrant       Name of
                      (The"Warrant Shares")    Shares Transferred    Transferee
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

                         -------------------------------
                         (Print Name of Warrant Holder)

                         -------------------------------
                         (Authorized Signature)

                         -------------------------------
                         (Title, if applicable)

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