Document:

<PAGE>   1
                                                                     EXHIBIT 4.1

[BANK ONE LOGO]

                                PROMISSORY NOTE

<TABLE>
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<CAPTION>
  Principal      Loan Date      Maturity     Loan No    Call    Collateral     Account     Officer    Initials
<S>              <C>           <C>           <C>        <C>     <C>          <C>           <C>        <C>
$4,500,000.00    06-01-2001    05-31-2002                          123        0961515929    03025
--------------------------------------------------------------------------------------------------------------
     References in the shaded area are for Lender's use only and do not limit the applicability of this
document to any particular loan or item.
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</TABLE>

<Table>
<S>                                                    <C>
BORROWER:  TERAFORCE TECHNOLOGY CORPORATION            LENDER:  BANK ONE, NA WITH ITS MAIN OFFICE IN CHICAGO, ILLINOIS
           1240 E. CAMPBELL ROAD                                DALLAS COMMERCIAL - DALLAS
           RICHARDSON, TX 75081                                 1717 MAIN STREET
                                                                DALLAS, TX 75201

</Table>

================================================================================

PRINCIPAL AMOUNT:  $4,500,000.00                      DATE OF NOTE: JUNE 1, 2001

PROMISE TO PAY. FOR VALUE RECEIVED, TERAFORCE TECHNOLOGY CORPORATION
("BORROWER") PROMISES TO PAY TO BANK ONE, NA WITH ITS MAIN OFFICE IN CHICAGO,
ILLINOIS ("LENDER"), OR ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF AMERICA,
THE PRINCIPAL AMOUNT OF FOUR MILLION FIVE HUNDRED THOUSAND & 00/100 DOLLARS
($4,500,000.00) ("TOTAL PRINCIPAL AMOUNT") OR SO MUCH AS MAY BE OUTSTANDING,
TOGETHER WITH INTEREST ON THE UNPAID OUTSTANDING PRINCIPAL BALANCE FROM THE
DATE ADVANCED UNTIL PAID IN FULL.

PAYMENT. THIS NOTE SHALL BE PAYABLE AS FOLLOWS: INTEREST SHALL BE DUE AND
PAYABLE MONTHLY AS IT ACCRUES, COMMENCING ON JULY 1, 2001 AND CONTINUING ON THE
SAME DAY OF EACH MONTH THEREAFTER DURING THE TERM OF THIS NOTE, AND THE
OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE, TOGETHER WITH ALL ACCRUED BUT UNPAID
INTEREST, SHALL BE DUE AND PAYABLE ON MAY 31, 2002. The annual interest rate for
this Note is computed on a 365/360 basis; that is, by applying the ratio of the
annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance
is outstanding, unless such calculation would result in a usurious rate, in
which case interest shall be calculated on a per diem basis of a year of 365 or
366 days, as the case may be. Borrower will pay Lender at the address designated
by Lender from time to time in writing. If any payment of principal of or
interest on this Note shall become due on a day which is not a Business Day,
such payment shall be made on the next succeeding Business Day. As used herein,
the term "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or any
other day on which national banking associations are authorized to be closed.
Unless otherwise agreed to, in writing, or otherwise required by applicable law,
payments will be applied first to accrued, unpaid interest, then to principal,
and any remaining amount to any unpaid collection costs, late charges and other
charges, provided, however, upon delinquency or other default, Lender reserves
the right to apply payments among principal, interest, late charges, collection
costs and other charges at its discretion. Notwithstanding any other provision
of this Note, Lender will not charge interest on any undisbursed loan proceeds.
No scheduled payment, whether of principal or interest or both, will be due
unless sufficient loan funds have been disbursed by the scheduled payment date
to justify the payment. The books and records of Lender shall be prima facie
evidence of all outstanding principal of and accrued but unpaid interest on this
Note. If this Note is governed by or is executed in connection with a loan
agreement, this Note is subject to the terms and provisions thereof.

VARIABLE INTEREST RATE. THE INTEREST RATE ON THIS NOTE IS SUBJECT TO FLUCTUATION
BASED UPON THE LIBOR RATE OF INTEREST IN EFFECT FROM TIME TO TIME (THE "INDEX").
"LIBOR RATE" SHALL MEAN WITH RESPECT TO EACH INTEREST PERIOD, THE OFFERED RATE
FOR U.S. DOLLAR DEPOSITS OF NOT LESS THAN $1,000,000.00 AS OF 11:00 A.M. CITY OF
LONDON, ENGLAND TIME TWO LONDON BUSINESS DAYS PRIOR TO THE FIRST DATE OF EACH
INTEREST PERIOD OF THIS NOTE AS SHOWN ON THE DISPLAY DESIGNATED AS "BRITISH
BANKERS ASSOC. INTEREST SETTLEMENT RATES" ON THE TELERATE SYSTEM ("TELERATE"),
PAGE 3750 OR PAGE 3740, OR SUCH OTHER PAGE OR PAGES AS MAY REPLACE SUCH PAGES ON
TELERATE FOR THE PURPOSE OF DISPLAYING SUCH RATE. PROVIDED, HOWEVER, THAT IF
SUCH RATE IS NOT AVAILABLE ON TELERATE THEN SUCH OFFERED RATE SHALL BE OTHERWISE
INDEPENDENTLY DETERMINED BY LENDER FROM AN ALTERNATE, SUBSTANTIALLY SIMILAR
INDEPENDENT SOURCE AVAILABLE TO LENDER OR SHALL BE CALCULATED BY LENDER BY A
SUBSTANTIALLY SIMILAR METHODOLOGY AS THAT THERETOFORE USED TO DETERMINE SUCH
OFFERED RATE IN TELERATE. "LONDON BUSINESS DAY" MEANS ANY DAY OTHER THAN A
SATURDAY, SUNDAY OR A DAY ON WHICH BANKING INSTITUTIONS ARE GENERALLY AUTHORIZED
OR OBLIGATED BY LAW OR EXECUTIVE ORDER TO CLOSE IN THE CITY OF LONDON, ENGLAND.
EACH CHANGE IN THE RATE TO BE CHARGED ON THIS NOTE WILL BECOME EFFECTIVE WITHOUT
NOTICE ON THE COMMENCEMENT OF EACH INTEREST PERIOD BASED UPON THE INDEX THEN IN
EFFECT. "INTEREST PERIOD" MEANS EACH CONSECUTIVE ONE MONTH PERIOD (THE FIRST OF
WHICH SHALL COMMENCE ON THE DATE OF THIS NOTE) EFFECTIVE AS OF THE FIRST DAY OF
EACH INTEREST PERIOD AND ENDING ON THE LAST DAY OF EACH INTEREST PERIOD,
PROVIDED THAT IF ANY INTEREST PERIOD IS SCHEDULED TO END ON A DATE FOR WHICH
THERE IS NO NUMERICAL EQUIVALENT TO THE DATE ON WHICH THE INTEREST PERIOD
COMMENCED, THEN IT SHALL END INSTEAD ON THE LAST DAY OF SUCH CALENDAR MONTH.
"BORROWER" MAY PREPAY ALL OR ANY PORTION OF THE PRINCIPAL AMOUNT OF THIS NOTE
BEARING INTEREST AT A LIBOR RATE, PROVIDED THAT IF BORROWER MAKES ANY SUCH
PREPAYMENT OTHER THAN ON THE LAST DAY OF AN INTEREST PERIOD, BORROWER SHALL PAY
ALL ACCRUED INTEREST ON THE PRINCIPAL AMOUNT PREPAID WITH SUCH PREPAYMENT AND,
ON DEMAND, SHALL REIMBURSE LENDER AND HOLD LENDER HARMLESS FROM ALL LOSSES AND
EXPENSES INCURRED BY LENDER AS A RESULT OF SUCH PREPAYMENT, INCLUDING, WITHOUT
LIMITATION, ANY LOSSES AND EXPENSES ARISING FROM THE LIQUIDATION OR REEMPLOYMENT
OF DEPOSITS ACQUIRED TO FUND OR MAINTAIN THE PRINCIPAL AMOUNT PREPAID. SUCH
REIMBURSEMENT SHALL BE CALCULATED AS THOUGH LENDER FUNDED THE PRINCIPAL AMOUNT
PREPAID THROUGH THE PURCHASE OF U.S. DOLLAR DEPOSITS IN THE LONDON, ENGLAND
INTERBANK MARKET HAVING A MATURITY CORRESPONDING TO SUCH INTEREST PERIOD AND
BEARING AN INTEREST RATE EQUAL TO THE LIBOR RATE FOR SUCH INTEREST PERIOD,
WHETHER IN FACT THAT IS THE CASE OR NOT. LENDER'S DETERMINATION OF THE AMOUNT OF
SUCH REIMBURSEMENT SHALL BE CONCLUSIVE IN THE ABSENCE OF MANIFEST ERROR. EXCEPT
AS OTHERWISE PROVIDED HEREIN, THE UNPAID PRINCIPAL BALANCE OF THIS NOTE WILL
ACCRUE INTEREST AT A RATE PER ANNUM WHICH WILL FROM TIME TO TIME BE EQUAL TO THE
SUM OF THE INDEX, PLUS 1.750%. NOTICE: UNDER NO CIRCUMSTANCES WILL THE INTEREST
RATE ON THIS NOTE BE MORE THAN THE MAXIMUM RATE ALLOWED BY APPLICABLE LAW. IF AT
ANY TIME ANY INTEREST RATE TO BE CHARGED HEREUNDER THAT IS BASED ON THE INDEX IS
GREATER THAN THE MAXIMUM RATE ALLOWED BY APPLICABLE LAW, THEREBY CAUSING THE
INTEREST RATE ON THIS NOTE TO BE LIMITED TO THE MAXIMUM RATE ALLOWED BY
APPLICABLE LAW, ANY SUBSEQUENT REDUCTION IN THE INDEX WILL NOT REDUCE THE RATE
OF INTEREST ON THIS NOTE BELOW THE MAXIMUM RATE ALLOWED BY APPLICABLE LAW UNTIL
THE TOTAL AMOUNT OF INTEREST ACCRUED ON THIS NOTE EQUALS THE AMOUNT OF INTEREST
THAT WOULD HAVE ACCRUED ON THIS NOTE IF THE INTEREST RATE BASED ON THE INDEX HAD
AT ALL TIMES BEEN IN EFFECT. FOR PURPOSES OF THIS NOTE, THE "MAXIMUM RATE
ALLOWED BY APPLICABLE LAW" MEANS THE GREATER OF (a) THE MAXIMUM RATE OF INTEREST
PERMITTED UNDER FEDERAL OR OTHER LAW APPLICABLE TO THE INDEBTEDNESS EVIDENCED BY
THIS NOTE, OR (b) THE "WEEKLY RATE CEILING" AS REFERRED TO IN SECTION 303.201 OF
THE TEXAS FINANCE CODE, AS SUPPLEMENTED BY THE TEXAS CREDIT TITLE.

PREPAYMENT. BORROWER MAY PAY WITHOUT premium or fee all or a portion of the
principal amount owed hereunder earlier than it is due. All prepayments shall be
applied to the indebtedness owing hereunder in such order and manner as Lender
may from time to time determine in its sole discretion.

LATE CHARGES. If a payment is 10 DAYS OR MORE LATE, BORROWER WILL BE CHARGED
5.000% OF THE REGULARLY SCHEDULED PAYMENT OR $25.00, WHICHEVER IS GREATER.

POST MATURITY RATE. The Post Maturity Rate on this Note is the lesser of the
maximum rate allowed by applicable law or 4.750 percentage points over the
Index. Borrower will pay interest on all sums due after final maturity, whether
by acceleration or otherwise, at that rate, with the exception of any amounts
added to the principal balance of this Note based on Lender's payment of
insurance premiums, which will continue to accrue interest at the pre-maturity
rate.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment of principal or interest when due under this
Note or any other indebtedness owing now or hereafter by Borrower to Lender; (b)
failure of Borrower or any other party to comply with or perform any term,
obligation, covenant or condition contained in this Note or in any other
promissory note, credit agreement, loan agreement, guaranty, security agreement,
mortgage, deed of trust or any other instrument, agreement or document, whether
now or hereafter existing, executed in connection with this Note (the Note and
all such other instruments, agreements, and documents shall be collectively
known herein as the "RELATED DOCUMENTS"); (c) Any representation or statement
made or furnished to Lender herein, in any of the Related Documents or in
connection with any of the foregoing is false or misleading in any material
respect; (d) Borrower or any other party liable for the payment of this Note,
whether as maker, endorser, guarantor, surety or otherwise, becomes insolvent or
bankrupt, has a receiver or trustee appointed for any part of its property,
makes an assignment for the benefit of its creditors, or any proceeding is
commenced either by any such party or against it under any bankruptcy or
insolvency laws; (e) the occurrence of any event of default specified in any of
the other Related Documents or in any other agreement now or hereafter arising
between Borrower and Lender; (f) the acceleration of the maturity of any
indebtedness owing now or hereafter by Borrower to any third party; or (g) the
liquidation, termination, dissolution, death or legal incapacity of Borrower or
any other party liable for the payment of this Note, whether as maker, endorser,
guarantor, surety, or otherwise.

LENDER'S RIGHTS. Upon default, Lender may at its option, without further notice
or demand (i) declare the entire indebtedness, including the unpaid principal
balance on this Note, all accrued unpaid interest, and all other amounts, costs
and expenses for which Borrower is responsible under this Note or any other
Related Document, immediately due, (ii) refuse to advance any additional amounts
under this Note, (iii) foreclose all liens securing payment hereof, (iv) pursue
any other rights, remedies and recourses available to the Lender, including
without limitation, any such rights, remedies or recourses under the Related
Documents, at law or in equity, or (v) pursue any combination of the foregoing.
The rights, remedies and recourses of Lender, as provided in this Note and in
the other Related Documents, shall be cumulative and concurrent and may be
pursued separately, successively or together as often as occasion therefore
shall arise, at the sole discretion of Lender. The acceptance by Lender of any
payment under this Note which is less than the payment in full of all amounts
due and payable at the time of such payment shall not (i) constitute a waiver of
or impair, reduce, release or extinguish any right, remedy or recourse of
Lender, or nullify any prior exercise of any such right, remedy or recourse, or
(ii) impair, reduce, release or extinguish the obligations of any party liable
under any of the Related Documents as originally provided herein or therein.
Lender may hire an attorney to help collect this Note if Borrower does not pay,
and
<PAGE>   2

06-01-2001                      PROMISSORY NOTE                           PAGE 2
LOAN NO                            (CONTINUED)

================================================================================

Borrower will pay Lender's reasonable attorneys' fees and all other costs of
collection. To the extent interest is not paid on or before the fifth day after
it becomes due and payable, Lender may, at its option, add such accrued but
unpaid interest to the principal balance of this Note. This Note has been
delivered to Lender and accepted by Lender in the State of Texas. Subject to
the provisions on arbitration, this Note shall be governed by and construed in
accordance with the laws of the State of Texas without regard to any conflict
of laws or provisions thereof.

PURPOSE. Borrower agrees that no advances under this Note shall be used for
personal, family, or household purposes and that all advances hereunder shall be
used solely for business, commercial, agricultural or other similar purposes.

JURY WAIVER. THE BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED UPON CONTRACT, TORT
OR OTHERWISE) BETWEEN OR AMONG THE BORROWER AND LENDER ARISING OUT OF OR IN ANY
WAY RELATED TO THIS NOTE, ANY OTHER RELATED DOCUMENT, OR ANY RELATIONSHIP
BETWEEN LENDER AND BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER
TO PROVIDE THE FINANCING EVIDENCED BY THIS NOTE.

DISHONORED CHECK CHARGE. Borrower will pay a processing fee of $25.00 if any
check given by Borrower to Lender as a payment on this loan is dishonored.

RIGHT OF SETOFF. Unless a lien would be prohibited by law or would render a
nontaxable account taxable, Borrower grants to Lender a contractual security
interest in, and hereby assigns, conveys, delivers, pledges, and transfers to
Lender all Borrower's right, title and interest in and to, Borrower's accounts
with Lender (whether checking, savings, or any other account), including
without limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on this Note
against any and all such accounts.

LINE OF CREDIT. This Note evidences a non-revolving line of credit. Once an
amount equal to the Total Principal Amount has been advanced hereunder,
Borrower is not entitled to further advances under this Note. Any request for
advances under this Note must be in writing, unless Lender, in its sole
discretion, accepts telephonic or other oral advance requests. Borrower agrees
to indemnify and hold Lender harmless from any loss or liability incurred in
connection with Lender honoring any telephonic or other oral advance request.
All communications, instructions, or directions by telephone or otherwise to
Lender are to be directed to Lender's office shown above.

ARBITRATION. Lender and Borrower agree that upon the written demand of either
party, whether made before or after the institution of any legal proceedings,
but prior to the rendering of any judgment in that proceeding, all disputes,
claims and controversies between them, whether individual, joint, or class in
nature, arising from this Note, any Related Document or otherwise, including
without limitation contract disputes and tort claims, shall be resolved by
binding arbitration pursuant to the Commercial Rules of the American Arbitration
Association ("AAA"). Any arbitration proceeding held pursuant to this
arbitration provision shall be conducted in the city nearest the Borrower's
address having an AAA regional office, or at any other place selected by mutual
agreement of the parties. No act to take or dispose of any collateral shall
constitute a waiver of this arbitration agreement or be prohibited by this
arbitration agreement. This arbitration provision shall not limit the right of
either party during any dispute, claim or controversy to seek, use, and employ
ancillary, or preliminary rights and/or remedies, judicial or otherwise, for the
purposes of realizing upon, preserving, protecting, foreclosing upon or
proceeding under forcible entry and detainer for possession of, any real or
personal property, and any such action shall not be deemed an election of
remedies. Such remedies include, without limitation, obtaining injunctive relief
or a temporary restraining order, invoking a power of sale under any deed of
trust or mortgage, obtaining a writ of attachment or imposition of a
receivership, or exercising any rights relating to personal property, including
exercising the right of set-off, or taking or disposing of such property with or
without judicial process pursuant to the Uniform Commercial Code. Any disputes,
claims, or controversies concerning the lawfulness or reasonableness of an act,
or exercise of any right or remedy, concerning any collateral, including any
claim to rescind, reform, or otherwise modify any agreement relating to the
collateral, shall also be arbitrated; provided, however that no arbitrator shall
have the right or the power to enjoin or restrain any act of either party.
Judgment upon any award rendered by any arbitrator may be entered in any court
having jurisdiction. The statute of limitations, estoppel, waiver, laches and
similar doctrines which would otherwise be applicable in an action brought by a
party shall be applicable in any arbitration proceeding, and the commencement of
an arbitration proceeding shall be deemed the commencement of any action for
these purposes. The Federal Arbitration Act (Title 9 of the United States Code)
shall apply to the construction, interpretation, and enforcement of this
arbitration provision.

ADDITIONAL PROVISION REGARDING LATE CHARGES. In the "Late Charge" provision set
forth above, the following language is hereby added after the word "greater":
"up to the maximum amount of One Thousand Five Hundred Dollars ($1500.00) per
late charge".

ADDITIONAL PROVISION - MANDATORY PRINCIPAL PAYMENTS. Borrower and Lender have
entered into a Business Loan Agreement of even date herewith ("Loan Agreement")
which governs the loan evidenced by this Note. Notwithstanding anything
contained in this Note to the contrary, prior to the maturity date of this
Note, Borrower shall be obligated to make payments of principal in accordance
with the paragraph "ADDITIONAL PROVISION - PRINCIPAL PAYMENTS ON NOTE" in the
Loan Agreement.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will
not affect the rest of the Note. In particular, this section means (among other
things) that Borrower does not agree or intend to pay, and Lender does not agree
or intend to contract for, charge, collect, take, reserve or receive
(collectively referred to herein as "charge or collect"), any amount in the
nature of interest or in the nature of a fee for this loan, which would in any
way or event (including demand, prepayment, or acceleration) cause Lender to
charge or collect more for this loan than the maximum Lender would be permitted
to charge or collect by federal law or the law of the State of Texas (as
applicable). Any such excess interest or unauthorized fee shall, instead of
anything stated to the contrary, be applied first to reduce the principal
balance of this loan, and when the principal has been paid in full, be refunded
to Borrower. The right to accelerate maturity of sums due under this Note does
not include the right to accelerate any interest which has not otherwise accrued
on the date of such acceleration, and Lender does not intend to charge or
collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to Lender for the use, forbearance or detention of sums due
hereunder shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the loan evidenced by
this Note until payment in full so that the rate or amount of interest on
account of the loan evidenced hereby does not exceed the applicable usury
ceiling. Lender may delay or forgo enforcing any of its rights or remedies under
this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, severally waive
presentment, demand for payment, protest, notice of protest, notice of dishonor,
notice of intent to accelerate the maturity of this Note, notice of acceleration
of the maturity of this Note, diligence in enforcement and indulgences of every
kind. Upon any change in the terms of this Note, and unless otherwise expressly
stated in writing, no party who signs this Note, whether as maker, guarantor,
accommodation maker or endorser, shall be released from liability. All such
parties agree that Lender may renew or extend (repeatedly and for any length of
time) this Note, or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender's security interest in the collateral
without the consent of or notice to anyone. All such parties also agree that
Lender may modify this Note without the consent of or notice to anyone other
than the party with whom the modification is made. Borrower agrees to provide to
Lender such further financial information with respect to Borrower as Lender may
reasonably request from time to time, including, without limitation, financial
statements in form and detail satisfactory to Lender.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

TERAFORCE TECHNOLOGY CORPORATION

BY: /s/ ROBERT P. CAPPS
    ---------------------------------------------
    AUTHORIZED SIGNER

================================================================================
Variable Rate. Line of Credit.            LASER PRO, Reg. U.S. Pat. & T.M. Off.,
                                       Ver. 3.27a (c) 2001 CFI ProServices, Inc.
              All rights reserved. [TX-D20 E3.27 F3.25 P3.27 CD006536.LN C9.OVL]<PAGE>   1
                                                                     EXHIBIT 4.2

     THE SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE
THEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND, ACCORDINGLY,
THE SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH ANY OTHER
APPLICABLE SECURITIES LAWS.

                                     WARRANT

                           to Purchase Common Stock of

                        TERAFORCE TECHNOLOGY CORPORATION

                            Expiring on May 31, 2004

         This Common Stock Purchase Warrant (the "Warrant") certifies that for
value received, [name of investor] (the "Holder") is entitled to subscribe for
and purchase from the Company (as hereinafter defined), in whole or in part, [ ]
shares of duly authorized, validly issued, fully paid and nonassessable shares
of Common Stock (as hereinafter defined) at the Exercise Price (as hereinafter
defined), subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. This Warrant and all rights hereunder shall expire at
5:00 p.m., Houston, Texas time, on May 31, 2004.

         As used herein, the following terms shall have the meanings set forth
below:

         "Company" shall mean TeraForce Technology Corporation, a Delaware
corporation, and shall also include any successor thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

         "Common Stock" shall mean and include the Company's Common Stock, par
value $0.01 per share, authorized on the date of the original issue of this
Warrant.

         "Exercise Price" shall mean $0.75 per share of Common Stock payable
upon exercise of the Warrant, as adjusted pursuant to the provisions hereof.

         "Market Price" for any day, when used with reference to Common Stock,
shall mean the price of said Common Stock determined as follows: (x) the last
reported sale price for the Common Stock on such day on the principal securities
exchange on which the Common Stock is listed or admitted to trading or if no
such sale takes place on such date, the average of the closing bid and asked
prices thereof as officially reported, or, if not so listed or admitted to
trading on any securities exchange, the last sale price for the Common Stock on
the National Association of Securities Dealers National Market on such date, or,
if there shall have been no trading on such date or if the Common Stock shall
not be listed on such system, the average of the closing bid and asked prices in
the over-the-counter market as furnished by any NASD member firm selected from
time to time by the Company for such purpose, in each such case, unless
otherwise provided herein, averaged over a period of ten (10) consecutive
Trading Days prior to the date as of which the determination is to be made; or
(y) if the Common Stock shall not be listed or admitted to trading as provided
in clause (x) above, the fair market value of the Common Stock as determined in
good faith by the Board of Directors of the Company.

<PAGE>   2

         "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time.

         "Trading Days" shall mean any days during the course of which the
principal securities exchange on which the Common Stock is listed or admitted to
trading is open for the exchange of securities.

         "Warrant Shares" shall mean the shares of Common Stock purchased or
purchasable by the Holder hereof upon the exercise of the Warrant.

                                       2
<PAGE>   3

                                    ARTICLE I

                               EXERCISE OF WARRANT

         I.1 Method of Exercise. The Warrant represented hereby may be exercised
by the Holder hereof, in whole or in part, at any time and from time to time on
or after the date hereof until 5:00 p.m., Houston, Texas time, on May 31, 2004.
To exercise the Warrant, the Holder hereof shall deliver to the Company (i) a
written notice in the form of the Subscription Notice attached as an exhibit
hereto, stating therein the election of such Holder to exercise the Warrant in
the manner provided in the Subscription Notice; and (ii) payment in full of the
Exercise Price in cash or by bank check for all Warrant Shares purchased
hereunder. The Warrant shall be deemed to be exercised on the date of receipt by
the Company of the Subscription Notice, accompanied by payment for the Warrant
Shares and surrender of this Warrant, as aforesaid, and such date is referred to
herein as the "Exercise Date". Upon such exercise, the Company shall, as
promptly as practicable and in any event within ten (10) business days, issue
and deliver to such Holder a certificate or certificates for the full number of
the Warrant Shares purchased by such Holder hereunder, and shall, unless the
Warrant has expired or has been redeemed, deliver to the Holder hereof a new
Warrant representing the portion, if any, that shall not have been exercised, in
all other respects identical to this Warrant. As permitted by applicable law,
the Person in whose name the certificates for Common Stock are to be issued
shall be deemed to have become a holder of record of such Common Stock on the
Exercise Date and shall be entitled to all of the benefits of such holder on the
Exercise Date, including without limitation the right to receive dividends and
other distributions for which the record date falls on or after the Exercise
Date and to exercise voting rights.

         I.2 Reservation of Shares. The Company shall reserve at all times so
long as the Warrant remains outstanding, free from preemptive rights, out of its
treasury Common Stock or its authorized but unissued shares of Common Stock, or
both, solely for the purpose of effecting the exercise of the Warrant, a
sufficient number of shares of Common Stock to provide for the exercise of the
Warrant.

         I.3 Valid Issuance. All shares of Common Stock that may be issued upon
exercise of the Warrants will, upon issuance by the Company, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issuance thereof.

         I.4 No Fractional Shares. The Company shall not be required to issue
fractional shares of Common Stock on the exercise of this Warrant. If any
fraction of a share of Common Stock would be issuable on the exercise of this
Warrant, the Company shall pay an amount in cash calculated by it to be equal to
the Market Price of one share of Common Stock at the time of such exercise
multiplied by such fraction computed to the nearest whole cent.

         I.5 Reimbursement Agreement. The Warrant Shares represented hereby are
issued pursuant to that certain Reimbursement Agreement (the "Reimbursement
Agreement") dated as of the date hereof between the Company, the Holder hereof
and the other persons listed therein. The Holder hereof shall be entitled to
registration under the Securities Act and any applicable state securities or
blue sky laws only to the extent set forth in that certain Registration Rights
Agreement, of even date herewith, attached to the Reimbursement Agreement and
incorporated therein (the "Registration Rights Agreement"). Notwithstanding the
foregoing, in the event of any conflict between the provisions of the
Reimbursement Agreement and of this Warrant, the provisions of this Warrant
shall control.

                                       3
<PAGE>   4

                                   ARTICLE II

                                    TRANSFER

         II.1 Ownership of Warrant. The Company may deem and treat the Person in
whose name the Warrant is registered as the Holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary unless agreed to in writing by the Company.

         II.2 Restrictions on Transfer of Warrants. The Holder of the Warrant
agrees that the Warrant is not transferrable without the prior written consent
of the Company and any such transfer without such consent shall be void and
without effect. Subject to the restrictions on transfer of the Warrant in this
Section 2.2, the Company, from time to time, shall register the transfer of the
Warrant in such books upon surrender of this Warrant at the Company's principal
office, properly endorsed or accompanied by appropriate instruments of transfer
and written instructions for transfer satisfactory to the Company. Upon any such
transfer and upon payment by the Holder or its transferee of any applicable
transfer taxes, a new Warrant shall be issued to the transferee and the
transferor (as their respective interests may appear) and the surrendered
Warrant shall be canceled by the Company. The Holder shall pay all taxes and all
other expenses and charges payable in connection with the transfer of the
Warrant pursuant to this Section 2.2.

         II.3 Compliance with Securities Laws. Subject to the terms of the
Registration Rights Agreement and notwithstanding any other provisions contained
in this Warrant, the Holder hereof understands and agrees that the following
restrictions and limitations shall be applicable to all Warrant Shares and to
all resales or other transfers thereof pursuant to the Securities Act, and that
as a condition to the exercise of such warrant that the following are and will
be true and correct:

                  (A) The Holder hereof agrees that the Warrant Shares shall not
         be sold or otherwise transferred unless the Warrant Shares are
         registered under the Securities Act and applicable state securities or
         blue sky laws or are exempt therefrom.

                  (B) A legend in substantially the following form will be
         placed on the certificate(s) evidencing the Warrant Shares:

                           "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
                  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED (THE "SECURITIES ACT"), OR ANY OTHER APPLICABLE
                  SECURITIES LAW AND, ACCORDINGLY, THE SECURITIES REPRESENTED BY
                  THIS CERTIFICATE MAY NOT BE RESOLD, PLEDGED, OR OTHERWISE
                  TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER, OR UPON RECEIPT OF AN OPINION OF COUNSEL
                  REASONABLY ACCEPTABLE TO THE COMPANY PURSUANT TO A TRANSACTION
                  EXEMPT FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN
                  ACCORDANCE WITH ANY OTHER APPLICABLE SECURITIES LAWS."

                                       4
<PAGE>   5

                  (C) Stop transfer instructions will be imposed with respect to
         the Warrant Shares so as to restrict resale or other transfer thereof,
         subject to this Section 2.3.

                  (D) The Holder is an "accredited investor" within the meaning
         of Rule 501 of Regulation D as promulgated under the Securities Act,
         and will be so as a condition of purchasing any of the Warrant Shares.
         The Holder will acquire the Warrant, and if exercised, any Warrant
         Shares for its own account for investment purposes and not with a view
         towards distribution. The Holder must bear the economic risk of the
         investment for an indefinite period of time because the Warrant and
         Warrant Shares have not been registered under the Securities Act and
         therefore cannot be sold unless they are subsequently registered under
         the Securities Act or an exemption from such registration is available.
         The Holder has received and carefully reviewed copies of all documents
         filed by the Company with the Securities and Exchange Commission as of
         the date hereof, and will do so before each exercise of the Warrant. No
         representations or warranties have been made to the Holder by the
         Company, the officers or directors of the Company, or any agent,
         employee or affiliate of any of them. The Holder is aware that the
         Warrant and any purchase of the Warrant Shares involves a high degree
         of risk and that it may sustain, and has the financial ability to
         sustain, the loss of its entire investment. The Holder has had the
         opportunity to ask questions of, and receive answers, satisfactory to
         it from the Company's management regarding the Company. The Holder
         understands that no Federal or State governmental authority has made
         any finding or determination relating to the fairness of an investment
         in the Warrant or Warrant Shares and that no Federal or State
         governmental authority has recommended or endorsed, or will recommend
         or endorse, the investment herein. The Holder, in making the decision
         to acquire the Warrant, and if it is exercised, the purchase of the
         Warrant Shares subscribed for, has relied upon independent
         investigations made by it and has not relied on any information or
         representations made by third parties. The Holder has significant
         assets, and upon consummation of the purchase of the Warrant Shares,
         will continue to have significant assets exclusive of the Warrant
         Shares. The Holder understands that the Warrant, and if exercised, the
         Warrant Shares are being offered and sold to it in reliance on specific
         provisions of Federal and State securities laws and that the Company is
         relying upon the truth and accuracy of the representations, warranties,
         agreements, acknowledgments and understandings of the Holder set forth
         herein in order to determine the applicability of such provisions. The
         Holder, in making the decision to purchase the Warrant, and if
         exercised, the Warrant Shares subscribed for, has relied upon
         independent investigations made by it and has not relied on any
         information or representations made by third parties.

                                       5
<PAGE>   6

                                   ARTICLE III

                                  ANTI-DILUTION

         III.1 Anti-Dilution Provisions. If the outstanding shares of the
Company's Common Stock shall be subdivided into a greater number of shares or a
dividend in Common Stock shall be paid in respect of Common Stock, the Exercise
Price in effect immediately prior to such subdivision or at the record date of
such dividend shall simultaneously with the effectiveness of such subdivision or
immediately after the record date of such dividend be proportionately reduced.
If outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased. When any adjustment is required to be made in the
Exercise Price, the number of Warrant Shares purchasable upon the exercise of
this Warrant shall be changed to the number determined by dividing (i) an amount
equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately in effect prior to such adjustment, by (ii) the Exercise Price in
effect immediately after such adjustment.

         III.2 Reorganizations and Asset Sales. If any capital reorganization or
reclassification of the capital stock of the Company, or any consolidation,
merger or share exchange of the Company with another Person, or the sale,
transfer or other disposition of all or substantially all of its assets to
another Person shall be effected in such a way that a holder of Common Stock of
the Company shall be entitled to receive capital stock, securities or assets
with respect to or in exchange for their shares, then as part of any such
reorganization, reclassification, consolidation, merger or sale, as the case may
be, lawful provision shall be made so that the Holder of this Warrant shall have
the right thereafter to receive upon exercise hereof the kind and amount of
shares of stock or other securities or property which such Holder would have
been entitled to receive if, immediately prior to any such reorganization,
reclassification, consolidation, merger or sale, as the case may be, such Holder
had held the number of shares of Common Stock which were the purchasable upon
the exercise of this Warrant. In any such case, appropriate adjustment (as
reasonably determined in good faith by the Board of Directors of the Company)
shall be made in the application of the provisions set forth herein with respect
to the rights and interests thereafter of the Holder of this Warrant, such that
the provisions set forth herein (including provisions with respect to adjustment
of the Exercise Price) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.

         III.3 Notice of Adjustment. Whenever the Exercise Price or the number
of Warrant Shares issuable upon the exercise of the Warrant shall be adjusted as
herein provided, or the rights of the Holder hereof shall change by reason of
other events specified herein, the Company shall compute the adjusted Exercise
Price and the adjusted number of Warrant Shares in accordance with the
provisions hereof and shall prepare a notice setting forth the adjusted Exercise
Price and the adjusted number of Warrant Shares issuable upon the exercise of
the Warrant or specifying the other shares of stock, securities or assets
receivable as a result of such change in rights, and showing in reasonable
detail the facts and calculations upon which such adjustments or other changes
are based. The Company shall cause to be mailed to the Holder hereof copies of
such notice stating that the Exercise Price and the number of Warrant Shares
purchasable upon exercise of the Warrant have been adjusted and setting forth
the adjusted Exercise Price and the adjusted number of Warrant Shares
purchasable upon the exercise of the Warrant.

                                       6
<PAGE>   7

                                   ARTICLE IV

                                  MISCELLANEOUS

         IV.1 Entire Agreement. This Warrant, together with the Reimbursement
Agreement and the Registration Rights Agreement, contain the entire agreement
between the Holder hereof and the Company with respect to the Warrant Shares
purchasable upon exercise hereof and the related transactions and supersedes all
prior arrangements or understandings with respect thereto.

         IV.2 Governing Law; Venue. This warrant shall be governed by and
construed in accordance with the laws of the State of Texas. Venue for any
dispute arising under this Warrant shall lie in the state or federal courts of
Harris County, Texas.

         IV.3 Waiver and Amendment. Any term or provision of this Warrant may be
waived at any time by the party which is entitled to the benefits thereof and
any term or provision of this Warrant may be amended or supplemented at any time
by agreement of the Holder hereof and the Company, except that any waiver of any
term or condition, or any amendment or supplementation, of this Warrant shall be
in writing. A waiver of any breach or failure to enforce any of the terms or
conditions of this Warrant shall not in any way effect, limit or waive a party's
rights hereunder at any time to enforce strict compliance thereafter with every
term or condition of this Warrant.

         IV.4 Illegality. In the event that any one or more of the provisions
contained in this Warrant shall be determined to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the
benefit of the provision exists, be in any way impaired.

         IV.5 Copy of Warrant. A copy of this Warrant shall be filed among the
records of the Company.

         IV.6 Notice. Any notice or other document required or permitted to be
given or delivered to the Holder or the Company hereof shall be in writing and
will deemed to have been delivered: (i) upon receipt, when delivered personally;
(ii) upon receipt, when sent by facsimile (provided a confirmation of
transmission is mechanically generated and kept on file by the sending party);
or (iii) one (1) day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be: any
notice or other document required or permitted to be given or delivered to the
Company shall be sent to the offices of the Company at 1240 East Campbell Road,
Richardson, Texas 75081, Attn: Chief Executive Officer, Telecopy No. (469)
330-4972 or such other address as shall have been furnished in writing by the
Company to the Holder of this Warrant, with a copy to Michael T. Larkin, Esq.,
Bisk & Fitch, L.L.P., 24 Greenway Plaza, Suite 750, Houston, Texas 77046,
Telecopy No. (713) 871-0721. Any notice sent or required to be sent hereunder to
the Holder shall be sent to the address of the Holder as contained in the
corporate records of the Company or such other address as shall have been
furnished in writing by the Holder to the Company.

         IV.7 Limitation of Liability; Not Stockholders. No provision of this
Warrant shall be construed as conferring upon the Holder hereof the right to
vote, consent, receive dividends or receive notices (other than as herein
expressly provided) in respect of meetings of stockholders for the election of
directors of the Company or any other matter whatsoever as a stockholder of the
Company. No provision hereof, in the absence of affirmative action by the Holder
hereof to purchase shares of Common Stock, and no mere

                                       7
<PAGE>   8

enumeration herein of the rights or privileges of the Holder hereof, shall give
rise to any liability of such Holder for the purchase price of any shares of
Common Stock or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

         IV.8 Exchange, Loss, Destruction, etc. of Warrant. Upon receipt of
evidence satisfactory to the Company of the loss, theft, mutilation or
destruction of this Warrant, and in the case of any such loss, theft or
destruction upon delivery of a bond of indemnity or such other security in such
form and amount as shall be reasonably satisfactory to the Company, or in the
event of such mutilation upon surrender and cancellation of this Warrant, the
Company will make and deliver a new Warrant of like tenor, in lieu of such lost,
stolen, destroyed or mutilated Warrant. Any Warrant issued under the provisions
of this Section 4.8 in lieu of any Warrant alleged to be lost, destroyed or
stolen, or in lieu of any mutilated Warrant, shall constitute an original
contractual obligation on the part of the Company. This Warrant shall be
promptly canceled by the Company upon the surrender hereof in connection with
any exchange or replacement. The Company shall pay all taxes (other than
securities transfer taxes or income taxes) and all other expenses and charges
payable in connection with the preparation, execution and delivery of Warrants
pursuant to this Section 4.8.

         IV.9 Registration Rights. The Warrant Shares shall be entitled to such
registration rights under the Securities Act and under applicable state
securities laws as are specified in the Registration Rights Agreement.

         4.10 Headings. The Article and Section and other headings herein are
for convenience only and are not a part of this Warrant and shall not affect the
interpretation thereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name.

Dated: June 1, 2001.

                                   TERAFORCE TECHNOLOGY CORPORATION

                                   By: /s/ Herman M. Frietsch
                                      ------------------------------------------
                                   Name:    Herman M. Frietsch
                                   Title:   Chairman and Chief Executive Officer

                                       8
<PAGE>   9

                               SUBSCRIPTION NOTICE

         The undersigned, the Holder of the foregoing Warrant, hereby elects to
exercise purchase rights represented thereby for and to purchase thereunder,
________ shares of the Common Stock covered by such Warrant, and hereby
represents and warrants that the representations and warranties of the Holder in
Section 2.3(D) of the Warrant are true and correct as of the date hereof, and
herewith makes payment in full for such shares pursuant to Section 1.1 of such
Warrant, and requests (a) that certificates for such shares (and any other
securities or other property issuable upon such exercise) be issued in the name
of, and delivered to _____________________________________ and (b), if such
shares shall not include all of the shares issuable as provided in such Warrant,
that a new Warrant of like tenor and date for the balance of the shares issuable
thereunder be delivered to the undersigned.

                                             -----------------------------------
Date:
     -------------------------------

                                       9
<PAGE>   10

                                   ASSIGNMENT

         For value received, _______________________, hereby sells, assigns, and
transfers unto _________________________ the within Warrant, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint ________________________ attorney, to transfer such Warrant on the books
of the Company, with full power of substitution.

                                             -----------------------------------
Date:
     -------------------------------

                                       10

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