Document:

<PAGE>

                                                                    EXHIBIT 4.05

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT") AND ARE "RESTRICTED SECURITIES" AS DEFINED IN RULE 144
PROMULGATED UNDER THE ACT. THE SECURITIES MAY NOT BE SOLD OR
OFFERED FOR SALE OR OTHERWISE DISTRIBUTED EXCEPT (i) IN
CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SHARES UNDER THE ACT OR (ii) IN COMPLIANCE WITH RULE 144, OR
(iii) PURSUANT TO AN OPINION OF COUNSEL, SATISFACTORY TO THE
COMPANY, THAT SUCH REGISTRATION OR COMPLIANCE IS NOT REQUIRED AS
TO SAID SALE, OFFER OR DISTRIBUTION.

                                                        Warrant No. ____________

                              WARRANT TO PURCHASE

                       108,434 SHARES OF COMMON STOCK OF
                                OPTIVISION, INC.
                        (Void after September 18, 2003)

     This certifies that VENTURE LENDING & LEASING, INC., a Maryland
corporation, or assigns (the "Holder"), for value received, is entitled to
purchase from OPTIVISION, INC., a California corporation (the "Company"), One
Hundred Eight Thousand Four Hundred Thirty-four (108,434) fully paid and
nonassessable shares of the Company's Common Stock ("Common Stock") at a price
of Two and 75/1000 Dollars ($2.075) per share (the "Stock Purchase Price") at
any time or from time to time up to and including 5:00 p.m. (Pacific time) on
September 18, 2003 (the "Expiration Date"), upon surrender to the Company at its
principal office at 3450 Hillview Avenue, Palo Alto, California 94304 (or at
such other location as the company may advise Holder in writing) of this Warrant
properly endorsed with the Form of Subscription attached hereto duly filled in
and signed and upon payment in cash or by check of the aggregate Stock Purchase
Price for the number of shares for which this Warrant is being exercised
determined in accordance with the provisions hereof.  The Stock Purchase Price
and the number of shares purchasable hereunder are subject to adjustment as
provided in Section 4 of this Warrant.  This Warrant is issued in replacement of
the Warrant issued to the Holder dated September 19, 1996.

     This Warrant is subject to the following terms and conditions:

     1.   Exercise: Issuance of Certificates: Payment for Share.
          -----------------------------------------------------

          (a) Unless an election is made pursuant to clause (b) of this Section
1, this Warrant shall be exercisable at the option of the Holder, at any time or
from time to time prior to

<PAGE>

the earlier of: (i) 30 days prior to the effectiveness of the Company's first
registration statement filed with the securities and Exchange Commission
pursuant to the Securities Act of 1933, or (ii) the Expiration Date, for all or
any portion of the shares of Common Stock (but not for a fraction of a share)
which may be purchased hereunder for the Stock Purchase Price multiplied by the
number of shares to be purchased. The Company agrees that the shares of Common
Stock purchased under this Warrant shall be and are deemed to be issued to the
holder hereof as the record owner of such shares as of the close of business on
the date on which this Warrant shall have been surrendered and payment made for
such shares. Subject to the provisions of Section 2, certificates for the shares
of Common Stock so purchased, together with any other securities or property to
which the Holder hereof is entitled upon such exercise, shall be delivered to
the Holder hereof by the Company at the Company's expense within a reasonable
time after the rights represented by this Warrant have been so exercised. Except
as provided in cause (b) of this Section 1, in case of a purchase of less than
all the shares which may be purchased under this Warrant, the Company shall
cancel this Warrant and execute and deliver to the Holder hereof within a
reasonable time a new Warrant or Warrants of like tenor for the balance of the
shares purchasable under the Warrant surrendered upon such purchase. 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 or such other name as shall be designated by such Holder, subject to the
limitations contained in Section 2.

          (b) The Holder, in lieu of exercising this Warrant by the payment of
the Stock Purchase Price pursuant to clause (a) of this Section 1, may elect, at
any time on or before the Expiration Date, to receive, through conversion of
this Warrant or any portion hereof into that number of shares of Common Stock
equal to the quotient of: (i) the difference between (A) the Per Share Price (as
hereinafter defined) of the Common Stock, less (B) the Stock Purchase Price then
in effect, multiplied by the number of shares of Common Stock the Holder would
otherwise have been entitled to purchase hereunder pursuant to clause (a) of
this Section 1 (or such lesser number of shares as the Holder may designate in
the case of a partial exercise of this Warrant); over (ii) the Per Share Price.

          (c) For purposes of clause (b) of this Section 1, "Per Share Price"
means: (i) if the Company's Common Stock is then listed or admitted to trading
on any national securities exchange or traded on any national market system, the
average of the closing bid and asked prices of the Company's Common Stock as
reported on such exchange or market system for the ten (10) consecutive trading
days prior to the date of the Holder's election to convert hereunder; (ii) if
this warrant is being converted in conjunction with a public offering of stock,
the
                                       2
<PAGE>

price to the public per share pursuant to the offering; or (iii) if no
shares of the Company's Common Stock are listed or admitted to trading on any
national securities exchange or traded on any national market system, the price
per share which the Company would obtain from a willing buyer for shares sold by
the Company from authorized but unissued shares as such price shall be agreed
upon by the Holder and the Company or, if agreement cannot be reached within ten
(10) business days of the Holder's election hereunder, as such price shall be
determined by a panel of three (3) appraisers, one (1) to be chosen by the
Company, one (1) to be chosen by the Holder and the third to be chosen by the
first two (2) appraisers.  If the appraisers cannot reach agreement within 30
days of the Holder's election hereunder, then each appraiser shall deliver its
appraisal and the appraisal which is neither the highest nor the lowest shall
constitute the Per Share Price.

In the event either party fails to choose an appraiser within 30 days of the
Holder's election hereunder, then the appraisal of the sole appraiser shall
constitute the Per Share Price. Each party shall bear the cost of the appraiser
selected by such party and the cost of the third appraiser shall be borne one-
half by each party. In the event either party fails to choose an appraiser, the
cost of the sole appraiser shall be borne one-half by each party.

     2.   Limitation on Transfer.
          ----------------------

          (a) This Warrant and the Common Stock shall not be transferable except
upon the conditions specified in this Section 2, which conditions are intended
to insure compliance with the provisions of the Securities Act.  Each holder of
this Warrant or the Common Stock issuable hereunder will cause any proposed
transferee of the Warrant or Common Stock to agree to take and hold such
securities subject to the provisions and upon the conditions specified in this
Section 2.

          (b) Each certificate representing this Warrant or the Common Stock
shall (unless otherwise permitted by the provisions of this Section 2 or unless
such securities have been registered under the Securities Act or sold under Rule
144) be stamped or otherwise imprinted with a legend substantially in the form
set forth on the face of this Warrant.

          (c) The Holder of this Warrant and each person to whom this Warrant is
subsequently transferred represents and warrants to the Company (by acceptance
of such transfer) that it will not transfer the Warrant (or securities issuable
upon exercise hereof unless a registration statement under the Securities Act
was in effect with respect to such securities at the time of issuance thereof)
except pursuant to (i) an effective registration statement under the Securities
Act; (ii) Rule 144 under the Securities Act (or any similar rule under the
Securities Act relating to the disposition of securities), or (iii) an opinion

                                       3
<PAGE>

of counsel, reasonably satisfactory to counsel for the Company, that an
exemption from such registration is available.

     3.   Sharps to be Fully Paid: Reservation of Shares.  The Company covenants
          ----------------------------------------------
and agrees 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 nonassessable and free from all pre-
emptive rights of any shareholder and free of all taxes, liens and charges with
respect to the issue thereof.  The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be
exercised, the Company 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.  The Company 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.  The Company will not take any action
which would result in any adjustment of the Stock Purchase Price (as defined in
Section 4 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 Company's Articles of Incorporation.

     4.   Adjustment of Stock Purchase Price, Number of Shares.  The Stock
          ----------------------------------------------------
Purchase Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence of
certain events described in this Section 4.  Upon each adjustment of the Stock
Purchase Price, the Holder of this Warrant shall thereafter be entitled to
purchase, at the Stock Purchase Price resulting from such, adjustment, the
number of shares obtained by multiplying the Stock Purchase Price in effect
immediately prior to such adjustment by the number of shares purchasable
pursuant hereto immediately prior to such adjustment, and dividing the product
thereof by the Stock Purchase Price resulting from such adjustment.

          4.1  Subdivision or Combination of Stock.  In case the Company shall
               -----------------------------------
at any time subdivide its outstanding shares of Common Stock into a greater
number of shares, the Stock Purchase Price in effect immediately prior to such
subdivision shall be proportionately reduced, and conversely, in case the
outstanding
                                       4
<PAGE>

shares of Common Stock of the Company shall be combined into a smaller number of
shares, the Stock Purchase Price in effect immediately prior to such combination
shall be proportionately increased.

          4.2  Dividends in Preferred Stock, Other Stock, Property,
               ----------------------------------------------------
Reclassification.  If at any time or from time to time the holders of Common
----------------
Stock (or any shares of stock or other securities at the time receivable upon
the exercise of this Warrant) shall have received or become entitled to receive,
without payment therefor,

          (a) by way of dividend or other distribution, any shares of stock or
other securities, whether or not such securities are at any time directly or
indirectly convertible into or exchangeable for Common Stock, or any rights or
options to subscribe for, purchase or otherwise acquire any of the foregoing, or

          (b) any cash paid or payable otherwise than as a cash dividend, or

          (c) additional stock or other securities or property (including cash)
by way of spin-off, split-up, reclassification, combination of shares or similar
corporate rearrangement, (other than shares of Common Stock issued as a stock
split, adjustments in respect of which shall be covered by the terms of Section
4.1 above),

then and in each such case, the Holder hereof shall, upon the exercise of this
Warrant, be entitled to receive, in addition to the number of shares of Common
Stock receivable thereupon, and without payment of any additional consideration
therefore, the amount of stock and other securities and property (including cash
in the cases referred to in clauses (b) and (c) above) which such Holder would
hold on the date of such exercise had he been the holder of record of such
Common Stock as of the date on which holders of Common Stock received or became
entitled to receive such shares and/or all other additional stock and other,
securities and property.

          4.3  Reorganization, Reclassification, Consolidation, Merger or Sale.
               ---------------------------------------------------------------
If any capital reorganization of the capital stock of the Company, or any
consolidation or merger of the Company with another corporation, or other
reorganization, or the sale of all or substantially all of its assets to another
corporation shall be effected in such a way that holders of Common Stock
shall be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, lawful and adequate provisions
shall be made whereby the holder hereof shall thereafter have the

                                       5
<PAGE>

right to purchase and receive (in lieu of the shares of the Common Stock of the
Company immediately theretofore purchasable and receivable upon the exercise of
the rights represented hereby) such shares of stock, securities or assets as may
be issued or payable with respect to or in exchange for a number of outstanding
shares of such Common Stock equal to the number of shares of such stock
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby. In any such case, appropriate provision shall be made
with respect to the rights and interests of the holder of this Warrant to the
end that the provisions hereof (including, without limitation, provisions for
adjustments of the Stock Purchase Price and of the number of shares purchasable
and receivable upon the exercise of this Warrant) shall thereafter be
applicable, as nearly as may be possible, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof.

          4.4  Sale or Issuance Below Purchase Price.  If the Company shall at
               -------------------------------------
any time or from time to time issue or sell any of its Common Stock, Preferred
Stock, options to acquire (or rights to acquire such options), or any other
securities convertible into or exercisable for Common Stock, for a consideration
per share less than the Stock Purchase Price in effect immediately prior to the
time of such issue or sale, the Stock Purchase Price then in effect and then
applicable for any subsequent period or periods shall be adjusted to a price
determined by dividing (i) an amount equal to the sum of (x) the number of
shares of Common Stock outstanding immediately prior to such issue or sale
multiplied by the Stock Purchase Price then in effect and (y) the consideration,
if any, received by the Company upon such issue or sale, by (ii) the total
number of shares of Common Stock outstanding immediately after such issue or
sale.  For purposes of this Section 4.4, all shares of Common Stock issuable
upon the exercise and/or conversion of all outstanding warrants (including this
Warrant), options and convertible securities shall be deemed to be outstanding.
The foregoing notwithstanding, no adjustment shall be made pursuant to this
Section 4.4 on account of a given sale to the extent that (a) the Stock Purchase
Price is adjusted pursuant to any other Section of., this Warrant or (b) the
conversion price of the Preferred Stock is decreased pursuant to the terms
thereof.

          4.5  Notice of Adjustment.  Upon any adjustment of the Stock Purchase
               --------------------
Price, and/or any increase or decrease in the number of shares purchasable upon
the exercise of this Warrant the Company shall give written notice thereof, by
first class mail, postage prepaid, addressed to the registered holder of this
Warrant at the address of such holder as shown on-the books of the Company.  The
notice shall be signed by the Company's chief financial officer and shall state
the Stock Purchase Price resulting from such adjustment and the increase or
decrease, if
                                       6
<PAGE>

any, in the number of shares purchasable at such price upon the exercise of this
Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.

          4.6  Other Notices.  If at any time:
               -------------

               (a) the Company shall declare any cash dividend upon any of its
stock;

               (b) the Company shall declare any dividend upon its stock payable
in stock, or make any special dividend or other distribution to the holders of
its stock;

               (c) the Company shall offer for subscription pro rata to the
holders of its Common Stock any additional shares of stock of any class or other
rights;

               (d) there shall be any capital reorganization or reclassification
of the capital stock of the Company, or consolidation or merger of the Company
with, or sale of all or substantially all of its assets to, another corporation;

               (e) there shall be a voluntary or involuntary dissolution,
liquidation or winding-up of the Company; or

               (f) the Company shall take or propose to take any other action,
notice of which is actually provided to holders of the Common Stock;

then, in any one or more of said cases, the Company shall give, by first class
mail, postage prepaid, addressed to the holder of this Warrant at the address of
such holder as shown on the books of the company, (i) at least twenty (20) days
prior written notice of the date on which the books of the Company shall close
or a record shall be taken for establishing the right to receive such dividend,
distribution or subscription rights, and (ii) with respect to any other action,
notice of which is given to holders of the Common Stock, at the same time such
notice as is actually provided to such holders.  Any notice given in accordance
with the foregoing clause (i) shall also specify, in the case of any such
dividend, distribution or subscription rights, the date on which the holders of
stock shall be entitled thereto.  Any notice given in accordance with the
foregoing clause (ii) shall, if applicable, also specify the date on which the
holders of Common Stock shall be entitled to exchange their Common Stock for
securities or other property deliverable upon any reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up, or other action as the case may be.

     5.   Issue Tax.  The issuance of certificates for shares of Preferred Stock
          ---------
upon the exercise of the Warrant shall be made

                                       7
<PAGE>

without charge to the Holder of the Warrant for any issue tax in respect
thereof; provided, however, that the Company 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.

     6.   Closing of Books.  The Company will at no time close its transfer
          ----------------
books against the transfer of any Warrant or of any shares of Common Stock
issued or issuable upon the exercise of any warrant in any manner which
interferes with the timely exercise of this Warrant.

     7.   No Voting or Dividend Rights; Limitation of Liability.  Nothing
          -----------------------------------------------------
contained in this Warrant shall be construed as conferring upon the Holder
hereof the right to vote or to consent as a shareholder in respect of meetings
of shareholders for the election of directors of the Company or any other
matters or any rights whatsoever as a shareholder of the Company.  No dividends
or interest shall be payable or accrued in respect of this Warrant or the
interest represented hereby or the shares purchasable hereunder until, and only
to the extent that, this Warrant shall have been exercised. No provisions
hereof, in the absence of affirmative action by the holder to purchase shares
of. Common Stock, and no mere enumeration herein of the rights or privileges of
the Holder hereof, shall give rise to any liability of such Holder for the Stock
Purchase Price or as a shareholder of the Company, whether such liability is
asserted by the Company or by its creditors.

     8.   Registration Rights.  The Company hereby grants to the Holder, with
          -------------------
respect to the shares of Common Stock issuable hereunder, the piggyback
registration rights identical to those set forth in that certain Registration
Rights Agreement dated as of July 27, 1995 among the Company and ADC.  The
Company shall take such action as may be reasonably necessary to assure that the
granting of such registration rights to the Holder does not violate or conflict
with the provisions of the aforementioned agreement, any of the Company's
charter documents, or the rights of prior grantees of registration rights.

     9.   Rights and obligations Survive Exercise of Warrant.  The rights and
          --------------------------------------------------
obligations of the Company, of the Holder of this Warrant and of the holder of
shares of Common Stock issued upon exercise of this Warrant, contained in
Sections 6, 8 and 9 shall survive the exercise of this Warrant.

     10.  Modification and Waiver.  This Warrant and any provision hereof 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.

                                       8
<PAGE>

     11.  Notices.  Any notice, request or other document required or permitted
          -------
to be given or delivered to the holder hereof or the Company shall be deemed to
have been given (i) upon receipt if delivered personally or by courier, (ii)
upon confirmation of receipt if by telecopy, or (iii) three business days after
deposit in the U.S. mail, with postage prepaid and certified or registered, to
each such holder at its address as shown on the books of the Company or to the
Company at the address indicated therefor in the first paragraph of this
Warrant.

     12.  Binding Effect on Successors.  This Warrant shall be binding upon any
          ----------------------------
corporation succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company's assets.  All of the obligations of the
Company relating to the Common Stock issuable upon the exercise of this Warrant
shall survive the exercise and termination of this Warrant.  All of the
covenants and agreements of the Company shall inure to the benefit of the
successors and assign of the holder hereof.  The Company will, at the time of
the exercise of this Warrant, in whole or in part, upon request of the Holder
hereof but at the Company's expense, acknowledge in writing its continuing
obligation to the Holder hereof in respect of any rights (including, without
limitation, any right to registration of the shares of Common Stock) to which
the holder hereof shall continue to be entitled after such exercise in
accordance with this Warrant; provided, that the failure of the holder hereof to
make any such request shall not affect the continuing obligation of the Company
to the Holder hereof in respect of such rights.

     13.  Descriptive Headings and Governing Law.  The descriptive 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.

     14.  Lost Warrants or Stock Certificates.  The Company represents and
          -----------------------------------
warrants to the Holder hereof that upon receipt of, evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of
any Warrant or stock certificate and, in the case of any such loss, theft or
destruction, upon receipt of an indemnity reasonably satisfactory to the
Company, or in the case of any such mutilation upon surrender and cancellation
of such Warrant or stock certificate, the Company at its expense will make and
deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost,
stolen, destroyed or mutilated Warrant or stock certificate.

     15.  Fractional Shares.  No fractional shares shall be issued upon exercise
          -----------------
of this Warrant.  The Company shall, in lieu

                                       9
<PAGE>

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 Stock Purchase
Price.

     17.  Representations of Holder.  With respect to this Warrant, Holder
          -------------------------
represents and warrants to the Company as follows:

          17.1 Experience.  It is experienced in evaluating and investing in
               ----------
companies engaged in businesses similar to that of the company; it understands
that investment in the Warrant involves substantial risks; it has made detailed
inquiries concerning the company, its business and services, its officers and
its personnel; the officers of the Company have made available to Holder any and
all written information it has requested; the officers of the Company have
answered to Holder's satisfaction all inquiries made by it; in making this
investment it has relied upon information made available to it by the Company;
and it has such knowledge and experience in financial and business matters that
it is capable of evaluating the merits and risks of investment in the Company
and it is able to bear the economic risk of that investment.

          17.2 Investment.  It is acquiring the Warrant for investment for its
               ----------
own account and not with a view to, or for resale in connection with, any
distribution thereof.  It understands that the Warrant, the shares of Common
Stock issuable upon exercise thereof, have not been registered under the
Securities Act of 1933, as amended, nor qualified under applicable state
securities laws.

          17.3 Rule 144.  It acknowledges that the Warrant and the Common Stock
               --------
must be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available.  It has been
advised or is aware of the provisions of Rule 144 promulgated under the
Securities Act.

          17.4 Access to Data.  It has had an opportunity to discuss the
               --------------
Company's business, management and financial affairs with the Company's
management and has had the opportunity to inspect the Company's facilities.

     18.  Additional Representations and Covenants of the Company.  The Company
          -------------------------------------------------------
hereby represents, warrants and agrees as follows:

          18.1 Corporate Power.  The Company has all requisite corporate power
               ---------------
and corporate authority to issue this Warrant and to carry out and perform its
obligations hereunder.

                                       10
<PAGE>

          18.2 Authorization.  All corporate action on the part of the Company,
               -------------
its directors and shareholders necessary for the authorization, execution,
delivery and performance by the Company of this has been taken.  This Warrant is
a valid and binding obligation of the Company, enforceable in accordance with
its terms.

          18.3 Offering.  Subject in part to the truth and accuracy of Holder's
               --------
representations set forth in Section 17 hereof, the offer, issuance and sale of
the Warrant is, and the issuance of Common Stock upon exercise of the Warrant
will be exempt from the registration requirements of the Securities Act, and are
exempt from the qualification requirements of any applicable state securities
laws; and neither the Company nor anyone acting on its behalf will take any
action hereafter that would cause the loss of such exemptions.

          18.4 Stock Issuance.  Upon exercise of the warrant, the Company will
               --------------
use its best efforts to cause stock certificates representing the shares of
Common Stock purchased pursuant to the exercise to be issued in the individual
names of Holder, its nominees or assignees, as appropriate at the time of such
exercise.

          18.5 Articles and By-Laws.  The Company has provided Holder with true
               --------------------
and complete copies of the Company's Articles or Certificate of Incorporation,
By-Laws, and each Certificate of Determination or other charter document
setting, forth any rights, preferences and privileges of Company's capital
stock, each as amended and in effect on the date of issuance of this Warrant.

          18.6 Financial and Other Reports.  From time to time up to the earlier
               ---------------------------
of the Expiration Date or the complete exercise of this Warrant, the Company
shall furnish to Holder (i) within 120 days' after the close of each fiscal year
of the Company an audited balance sheet and statement of changes in financial
position at and as of the end of such fiscal year, together with an audited
statement of income for such fiscal year; (ii) within 45 days after the close of
each fiscal quarter of the Company, an unaudited balance sheet and statement of
cash flows at and as of the end of such quarter, together with an unaudited
statement of income for such quarter; and (iii) promptly after sending, copies
of all reports, proxy statements, and financial statements that the Company
sends to its shareholders.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
by its officers, thereunto duly, authorized as of this 30th day of January,
1997.

OPTIVISION, INC.

By: /s/ James S. Tyler
   ---------------------------
    James S. Tyler, President

                                      11
<PAGE>

                             FORM OF SUBSCRIPTION
                             --------------------

                 (To be signed only upon exercise of Warrant)

To: _______________________

     The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise the purchase right represented by such Warrant for, and to
purchase thereunder, _______________________________________ (_______) (1)
shares of Common stock of ________________________________________________ and
herewith makes payment of __________________________________ Dollars
($___________) therefor, and requests that the certificates for such shares be
issued in the name of, and delivered to, ___________________________________
whose address is_________________________________________.

     The undersigned represents that it is acquiring such Common Stock for its
own account for investment and not with a view to or for sale in connection with
any distribution thereof (subject, however, to any requirement of law that the
disposition thereof shall at all times be within its control.

     DATED:  _____________________________

                              __________________________________________________
                              (Signature must conform in all respects to name of
                              holder as specified on the face of the Warrant)

                              __________________________________________________

                              __________________________________________________
                                                    Address

_____________

(1)  Insert here the number of shares called for on the face of the Warrant (or,
     in the case of a partial exercise, the portion thereof as to which the
     Warrant is being exercised), in either case without making any adjustment
     for additional Common Stock or any other stock or other securities or
     property or cash which, pursuant to the adjustment provisions of the
     Warrant, may be deliverable upon exercise.

                                      12
<PAGE>

                                  ASSIGNMENT
                                  ----------

     FOR VALUE RECEIVED, the undersigned, the holder of the within Warrant,
hereby sells, assigns and transfers all of the rights of the undersigned under
the within Warrant, with respect to the number of shares of Common Stock covered
thereby set forth hereinbelow, unto:

Name of Assignee         Address                       No. of Shares
----------------         -------                       -------------

Dated: _________________________

                                    __________________________________________
                                    (Signature must conform in all respects to
                                    name of holder as specified on the face of
                                    the Warrant)

                                      13<PAGE>

                                                                    EXHIBIT 4.06

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL)
REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAWS.

                            WARRANT AGREEMENT NO. 1

             To Purchase Shares of the Series B Preferred Stock of

                         OPTICAL NETWORKS, INCORPORATED

              Dated as of February 10, 1999 (the "Effective Date")

          WHEREAS, Optical Networks, Incorporated, a California corporation (the
"Company") has entered into a Master Lease Agreement dated as of February 10,
1998, Equipment Schedule No. VL-1 and VL-2 dated as of February 10, 1998, and
related Summary Equipment Schedules (collectively, the "Leases") with Comdisco,
Inc., a Delaware corporation (the "Warrantholder"); and

          WHEREAS, the Company desires to grant to Warrantholder, in
consideration for such Leases, the right to purchase shares of its Series B
Preferred Stock;

          NOW, THEREFORE, in consideration of the Warrantholder executing and
delivering such Leases and in consideration of mutual covenants and agreements
contained herein, the Company and Warrantholder agree as follows:

1.   GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK
     ----------------------------------------------

     The Company hereby grants to the Warrantholder, and the Warrantholder is
entitled, upon the terms and subject to the conditions hereinafter set forth, to
subscribe to and purchase, from the Company, 51,046 fully paid and non-
assessable shares of the Company's Series B Preferred Stock ("Preferred Stock")
at a purchase price of $1.1754 per share (the "Exercise Price").  The number and
purchase price of such shares are subject to adjustment as provided in Section 8
hereof.

     If all of the Company's outstanding Preferred Stock is converted into
shares of Common Stock in connection with the registration of the Company's
Common Stock under the Securities Act of 1933, as amended, or otherwise in
accordance with the terms of the Company's Amended and Restated Articles of
Incorporation, then this Warrant shall automatically become exercisable for that
number of shares of Common Stock equal to the number of shares of Common Stock
that would have been received if this Warrant had been exercised in full and the
shares of Preferred Stock received thereupon had been simultaneously converted
into Common Stock immediately prior to such event, and the Exercise Price shall
be automatically adjusted to equal the amount obtained by dividing (1) the
aggregate Exercise Price of the shares of Preferred Stock for which this Warrant
was exercisable immediately prior to such conversion, by (ii) the number of
shares of Common Stock for which this Warrant is exercisable immediately after
such conversion. The shares of Preferred Stock or Common Stock subject to this
Warrant, as the case may be, are sometimes referred to herein as "Warrant
Stock."

2.   TERM OF THE WARRANT AGREEMENT.
     -----------------------------

     Except as otherwise provided for herein, the term of this Warrant Agreement
and the right to purchase Preferred Stock as granted herein shall commence on
the Effective Date and shall be exercisable for a period of (i) ten (10) years
or (ii) five (5) years from the effective date of the Company's initial public
offering, whichever is shorter.

     Notwithstanding the term of this Warrant Agreement as set forth above, the
right to purchase Preferred Stock as granted shall expire, if not previously
exercised, immediately upon the closing of (i) the issuance and sale of shares
of Common Stock of the Company in the Company's first public offering of
securities for its own account pursuant to an effective registration statement
under the Securities Act of 1933, as amended (the "Initial Public Offering"),
provided that the net proceeds to the Company exceed $10,000,000, and provided
further that the Warrantholder is afforded an opportunity to include Registrable
Securities issuable upon exercise hereof in such Initial Public Offering in
accordance with the terms of the Company's Investors' Rights Agreement or (ii) a
merger of consolidation of the Company with or into another corporation when the
Company is not the surviving corporation, or

                                       1
<PAGE>

the sale of all or substantially all of the Company's properties and assets to
any other person (the "Merger"), provided that the holders of Warrantholder
realizes a value for its shares of Preferred Stock issuable hereunder receive
consideration with a value equal to or greater than $2.35 per share in such
Merger. The Company shall notify the Warrantholder if the Initial Public
Offering is proposed within a reasonable period of time prior to the filing of a
registration statement and if the Company fails to deliver such written notice
within a reasonable period of time, anything to the contrary in this Warrant
Agreement notwithstanding, the rights to purchase will not expire until ten (10)
business days after the Company delivers such notice to the Warrantholder. Such
notice shall also contain such details of the proposed Initial Public Offering
or Merger as are reasonable in the circumstances and notice that this Warrant
Agreement is expected to expire upon closing thereof.

3.   EXERCISE OF THE PURCHASE RIGHTS.
     -------------------------------

     The purchase rights set forth in this Warrant Agreement are exercisable by
the Warrantholder, in whole or in part, at any time, or from time to time, prior
to the expiration of the term set forth in Section 2 above, by tendering to the
Company at its principal office a notice of exercise in the form attached hereto
as Exhibit I (the "Notice of Exercise"), duly completed and executed.  Promptly
upon receipt of the Notice of Exercise and the payment of the purchase price in
accordance with the terms set forth below, and in no event later than twenty-one
(21) days thereafter, the Company shall issue to the Warrantholder a certificate
for the number of shares of Preferred Stock purchased and shall execute the
acknowledgment of exercise in the form attached hereto as Exhibit II (the
"Acknowledgment of Exercise") indicating the number of shares which remain
subject to future purchases, if any.

     The Exercise Price may be paid at the Warrantholder's election either (i)
by cash or check, or (ii) by surrender of Warrants ("Net Issuance") as
determined below.  If the Warrantholder elects the Net Issuance method, the
Company will issue Warrant Stock in accordance with the following formula:

                                   X = Y(A-B)
                                       ------
                                          A

     Where:         X =  the number of shares of Warrant Stock to be issued to
                         the Warrantholder.

                    Y =  the number of shares of Warrant Stock requested to be
                         exercised under this Warrant Agreement.

                    A =  the fair market value of one (1) share of Warrant
                         Stock.

                    B =  the Exercise Price.

     For purposes of the above calculation, current fair market value of Warrant
Stock shall mean with respect to each share of Warrant Stock:

               (i)    if the exercise is in connection with an initial public
     offering of the Company's Common Stock, and if the Company's Registration
     Statement relating to such public offering has been declared effective by
     the SEC, then the fair market value per share shall be the product of (x)
     the initial "Price to Public" specified in the final prospectus with
     respect to the offering and (y) the number of shares of Common Stack into
     which each share of Preferred Stock is convertible at the time of such
     exercise;

               (ii)   if this Warrant is exercised after, and not in connection
     with the Company's initial public offering, and:

                      (a) if traded on a securities exchange, the fair market
          value shall be deemed to be the average of the closing prices over a
          twenty-one (21) day period ending three days before the day the
          current fair market value of the securities is being determined; or

                      (b) if actively traded over-the-counter, the fair market
          value shall be deemed to be the average of the closing bid and asked
          prices quoted on the NASDAQ system (or similar system) over the
          twenty-one (21) day period ending three days before the day the
          current fair market value of the securities is being determined;

               (iii)  if at any time the Common Stock is not listed on any
     securities exchange or quoted in the NASDAQ System or the over-the-counter
     market, the current fair market value of Warrant Stock shall be the highest
     price per share which the Company could obtain from a willing buyer (not a
     current employee or director) for shares of Warrant Stock sold by the
     Company, from authorized but unissued shares, as determined in good faith
     by its Board of Directors , unless the Company shall become subject to a
     merger, acquisition or other consolidation pursuant to which the Company is
     not the surviving party, in which case

                                       2
<PAGE>

     the fair market value of Warrant Stock shall be deemed to be the value
     received by the holders of such Warrant Stock on a common equivalent basis
     pursuant to such merger or acquisition.

     Upon partial exercise by either cash or Net Issuance, the Company shall
promptly issue an amended Warrant Agreement representing the remaining number of
shares purchasable hereunder.  All other terms and conditions of such amended
Warrant Agreement shall be identical to those contained herein, including, but
not limited to the Effective Date hereof.

4.   RESERVATION OF SHARES.
     ---------------------

     Authorization and Reservation of Shares.  During the term of this Warrant
     ---------------------------------------
Agreement, the Company will at all times have authorized and reserved a
sufficient number of shares of Warrant Stock to provide for the exercise of the
rights to purchase Warrant Stock as provided for herein.

5.   NO FRACTIONAL SHARES OR SCRIP.
     -----------------------------

     No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of the Warrant, but in lieu of such fractional shares
the Company shall make a cash payment therefor upon the basis of the Exercise
Price then in effect.

6.   NO RIGHTS AS SHAREHOLDER.
     ------------------------

     This Warrant Agreement does not entitle the Warrantholder to any voting
rights or other rights as a shareholder of the Company prior to the exercise of
the Warrant.

7.   WARRANTHOLDER REGISTRY.
     ----------------------

     The Company shall maintain a registry showing the name and address of the
registered holder of this Warrant Agreement.

8.   ADJUSTMENT RIGHTS.
     -----------------

     The purchase price per share and the number of shares of Preferred Stock
purchasable hereunder are subject to adjustment, as follows:

     (a) Mercer and Sale of Assets.  If at any time there shall be a capital
         -------------------------
reorganization of the shares of the Company's stock (other than a combination,
reclassification, exchange or subdivision of shares otherwise provided for
herein), or a merger or consolidation of the Company with or into another
corporation whether or not the Company is the surviving corporation, or the sale
of all or substantially all of the Company's properties and assets to any other
person, other than as defined in Section 2 hereof (hereinafter referred to as a
"Merger Event"), then as a part of such Merger Event, lawful provision shall be
made so that the Warrantholder shall thereafter be entitled to receive, upon
exercise of the Warrant, the number of shares of preferred stock or other
securities of the successor corporation resulting from such Merger Event,
equivalent in value to that which would have been issuable if Warrantholder had
exercised this Warrant immediately prior to the Merger Event. In any such case,
appropriate adjustment (as determined in good faith by the Company's Board of
Directors) shall be made in the application of the provisions of this Warrant
Agreement with respect to the rights and interest of the Warrantholder after the
Merger Event to the end that the provisions of this Warrant Agreement (including
adjustments of the Exercise Price and number of shares of Preferred Stock
purchasable) shall be applicable to the greatest extent possible.

     (b) Reclassification of Shares.  If the Company at any time shall, by
         --------------------------
combination, reclassification, exchange or subdivision of securities or
otherwise, change any of the securities as to which purchase rights under this
Warrant Agreement exist into the same or a different number of securities of any
other class or classes, this Warrant Agreement shall thereafter represent the
right to acquire such number and kind of securities as would have been issuable
as the result of such change with respect to the securities which were subject
to the purchase rights under this Warrant Agreement immediately prior to such
combination, reclassification, exchange, subdivision or other change.

     (c) Subdivision or Combination of Shares.  If the Company at any time shall
         ------------------------------------
combine or subdivide its Warrant Stock, the Exercise Price shall be
proportionately decreased in the case of a subdivision, or proportionately
increased in the case of a combination.

     (d) Stock Dividends.  If the Company at any time shall pay a dividend
         ---------------
payable in, or make any other distribution (except any distribution specifically
provided for in the foregoing subsections (a) or (b)) of the Company's capital
stock to the holders of outstanding shares of the Company's Warrant Stock, then
the Warrantholder shall,

                                       3
<PAGE>

upon exercise of this Warrant, be entitled to receive, in addition to the number
of shares of Warrant Stock receivable thereupon, and without payment of any
additional consideration therefore, the amount of the Company's capital stock
which would have been issuable to such Warrantholder if Warrantholder had
exercised this Warrant immediately prior to the date on which holders of Warrant
Stock received such dividend or distribution of the Company's capital stock.

     (e) Right to Purchase Additional Stock.  If, the Warrantholder's total cost
         ----------------------------------
of equipment leased pursuant to the Leases exceeds $1,500,000.00, Warrantholder
shall have the right to purchase from the Company, at the Exercise Price
(adjusted as set forth herein), an additional number of shares, which number
shall be determined by (i) multiplying the amount by which the Warrantholder's
total equipment cost exceeds $1,500,000.00 by 4%, and (ii) dividing the product
thereof by the Exercise Price per share referenced above.

     (f) Antidilution Rights.  Shares of Preferred Stock issuable upon exercise
         -------------------
of this Warrant shall be entitled, with respect to such issuance or sale, to the
same antidilution benefits then applicable to other shares of the Preferred
Stock as set forth in its Company's Amended and Restated Articles of
Incorporation (the "Charter") as amended through the time of such issue or sale.
A copy of the Charter as currently in effect has been delivered to the
Warrantholder. The Company shall promptly provide the Warrantholder with any
restatement, amendment, modification or waiver of the Charter. Notwithstanding
anything herein to the contrary, no adjustment to the Exercise Price or the
number and character of securities issuable upon exercise of this Warrant shall
be made by virtue of this Section 8 to the extent that such adjustment is
effected (by adjusting the conversion price of the Preferred Stock or otherwise)
in accordance with the terms of the Charter. The Company will provide notice to
Warrantholder of any such adjustments in accordance with the terms of the
Charter (assuming, solely for purposes of such notice, that Warrantholder was
currently a holder of the shares of Warrant Stock then issuable upon an exercise
of this Warrant).

     (g) Notice of Adjustments.  If: (i) the Company shall declare any dividend
         ---------------------
or distribution upon its stock, whether in cash, property, stock or other
securities (excluding any dividend or distribution for which an adjustment will
be made pursuant to Section 8(d)); (ii) the Company shall offer for subscription
prorata to the holders of any class of its Preferred or other convertible stock
any additional shares of stock of any class or other rights; (iii) there shall
be any Merger Event; or (iv) there shall be any voluntary dissolution,
liquidation or winding up of the Company; then, in connection with each such
event, the Company shall send to the Warrantholder (A) at least twenty (20)
days' prior written notice of the date on which the books of the Company shall
close or a record shall be taken for such dividend, distribution, subscription
rights (specifying the date on which the holders of Preferred Stock shall be
entitled thereto) or for determining rights to vote in respect of such Merger
Event, dissolution, liquidation or winding up; (B) in the case of any such
Merger Event, dissolution, liquidation or winding up, at least twenty (20) days'
prior written notice of the date when the same shall take place (and specifying
the date on which the holders of Preferred Stock shall be entitled to exchange
their Preferred Stock for securities or other property deliverable upon such
Merger Event, dissolution, liquidation or winding up).

     Promptly following any adjustment to the Exercise Price or the number and
character of securities issuable upon exercise of this Warrant effected pursuant
to this Section 8, the Company shall provide written notice of such adjustment
to the Warrantholder.  Each such written notice shall set forth, in reasonable
detail, (i) the event requiring the adjustment, (ii) the amount of the
adjustment, (iii) the method by which such adjustment was calculated, (iv) the
Exercise Price, and (v) the number of shares subject to purchase hereunder after
giving effect to such adjustment, and shall be given by first class mail,
postage prepaid, addressed to the Warrantholder, at the address as shown on the
books of the Company.

     (h) Timely Notice.  Failure to timely provide such notice required by
         -------------
subsection (g) above shall entitle Warrantholder to retain the benefit of the
applicable notice period notwithstanding anything to the contrary contained in
any insufficient notice received by Warrantholder.  The notice period shall
begin on the date Warrantholder actually receives a written notice containing
all the information specified above.

9.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.
     --------------------------------------------------------

     (a) Reservation of Preferred Stock.  The Preferred Stock issuable upon
         ------------------------------
exercise of the Warrantholder's rights has been duly and validly reserved and,
when issued in accordance with the provisions of this Warrant Agreement, will be
validly issued, fully paid and non-assessable, and will be free of any taxes,
liens, charges or encumbrances of any nature whatsoever (other than any created
by Warrantholder); provided, however, that the Warrant Stock issuable pursuant
to this Warrant Agreement may be subject to restrictions on transfer under state
and/or Federal securities laws. The Company has made available to the
Warrantholder true, correct and complete copies of its Charter and Bylaws, as
amended. The issuance of certificates for shares of Warrant Stock upon exercise
of the Warrant Agreement shall be made without charge to the Warrantholder for
any issuance tax in respect thereof, or other cost incurred by the Company in
connection with such exercise and the related issuance of

                                       4
<PAGE>

shares of Warrant Stock. The Company shall not be required to pay any tax which
may be payable in respect of any transfer involved and the issuance and delivery
of any certificate in a name other than that of the Warrantholder.

     (b) Due Authority.  The execution and delivery by the Company of this
         -------------
Warrant Agreement and the performance of all obligations of the Company
hereunder, including the issuance to Warrantholder of the right to acquire the
shares of Warrant Stock, have been duly authorized by all necessary corporate
action on the part of the Company, and the Leases and this Warrant Agreement are
not inconsistent with the Company's Charter or Bylaws, do not contravene any law
or governmental rule, regulation or order applicable to it, do not and will not
contravene any provision of, or constitute a material default under, any
material indenture, mortgage, contract or other instrument to which it is a
party or by which it is bound, and the Leases and this Warrant Agreement
constitute legal, valid and binding agreements of the Company, enforceable in
accordance with their respective terms.

     (c) Consents and Approvals.  No consent or approval of, giving of notice
         ----------------------
to, registration with, or taking of any other action in respect of any state,
Federal or other governmental authority or agency is required with respect to
the execution, delivery and performance by the Company of its obligations under
this Warrant Agreement, except for the filing of notices pursuant to Regulation
D under the 1933 Act and any filing required by applicable state securities law,
which filings will be effective by the time required thereby.

     (d) Issued Securities.  All issued and outstanding shares of Common Stock,
         -----------------
Preferred Stock or any other securities of the Company have been duly authorized
and validly issued and are fully paid and nonassessable.  All outstanding shares
of Common Stock, Preferred Stock and any other securities were issued in full
compliance with all Federal and state securities laws.  In addition:

          (i) The authorized capital stock of the Company consists of (A)
     20,000,000 shares of Common Stock, of which 4,330,812 shares are issued and
     outstanding, and (B) 23,190,000 shares of Preferred Stock consisting of
     19,840,000 shares designated as Series B Preferred Stock, of which
     18,596,631 shares are issued and outstanding and are currently convertible
     into an aggregate of 6,198,876 shares of Common Stock, 2,050,000 shares
     designated as Series C Preferred Stock, all of which are issued and
     outstanding and are currently convertible into an aggregate of 683,334
     shares of Common Stock, 1,300,000 shares designated Series D Preferred
     Stock, of which 1,242,287 shares are issued and outstanding and are
     currently convertible into an aggregate of 1,242,287 shares of Common Stock
     and 6,850,000 shares designated Series E Preferred Stock, of which
     5,562,100 are issued and outstanding.

          (ii) The Company has reserved (A) 783,560 shares of Common Stock under
     its 1997 Stock Option Plan and (B) 2,601,901 shares of Common Stock under
     its 1998 Equity Incentive Plan.  Except for (i) 22,222 shares of Common
     Stock issuable to Venture Lending & Leasing, Inc. ("VLLI"), in respect of
     Section 4.2(c) of that certain warrant issued to VLLI on January 30, 1997
     and 36,144 shares of Common Stock issuable to VLLI in respect of Section
     4.2(c) of that certain warrant also issued to VLLI on January 30, 1997,
     (ii) the conversion privileges of the Series B Preferred, the Series C
     Preferred and the Series D Preferred, (iii) the shares of Common Stock
     reserved for issuance under the Company's 1997 Stock Option Plan and 1998
     Equity Incentive Plan, (iv) the right of first offer provided in Section 3
     of that certain Investors' Rights Agreement dated April 1, 1998 by and
     among the Company and the persons and entities listed on Exhibit A thereto,
     and (v) the right of first refusal in Section 8.7 of the Bylaws of the
     Company with respect to transfers of shares of the company's capital stock,
     there are no other options, warrants, conversion privileges, or preemptive
     or other rights or agreements presently outstanding to purchase or
     otherwise acquire any authorized but unissued shares of the capital stock
     or other securities of the Company.

     (e) Insurance.  The Company has in full force and effect insurance
         ---------
policies, with extended coverage, insuring the Company and its property and
business against such losses and risks, and in such amounts, as are customary
for corporations engaged in a similar business and similarly situated and as
otherwise may be required pursuant to the terms of any other contract or
agreement.

     (f) Other Commitments to Register Securities.  Except as set forth in the
         ----------------------------------------
Company's Investors' Rights Agreement as amended, a copy of which has been
provided to Warrantholder , the Company is not, pursuant to the terms of any
other agreement currently in existence, under any obligation to register under
the 1933 Act any of its presently outstanding securities or any of its
securities which may hereafter be issued.

     (g) Exempt Transaction.  Subject to the accuracy of the Warrantholder's
         ------------------
representations in Section 10 hereof, the issuance of the Preferred Stock upon
exercise of this Warrant will constitute a transaction exempt from (i) the
registration requirements of Section 5 of the 1933 Act, in reliance upon Section
4(2) thereof, and (ii) the qualification requirements of the applicable state
securities laws.

                                       5
<PAGE>

     (h) Compliance with Rule 144.  At the written request of the Warrantholder,
         ------------------------
who proposes to sell Preferred Stock issuable upon the exercise of the Warrant
in compliance with Rule 144 promulgated by the Securities and Exchange
Commission, the Company shall furnish to the Warrantholder, within ten days
after receipt of such request, a written statement confirming the Company's
compliance with the filing requirements of the Securities and Exchange
Commission as set forth in such Rule, as such Rule may be amended from time to
time.

10.  REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.
     --------------------------------------------------

     This Warrant Agreement has been entered into by the Company in reliance
upon the following representations and covenants of the Warrantholder:

     (a) Investment Purpose.  Each of the right to acquire the Warrant Stock
         ------------------
issuable upon exercise of the Warrantholder's rights contained herein, the
Warrant Stock and any securities issuable upon any conversion of the Warrant
Stock (collectively, the "Warrant Securities"), is and will be acquired for
investment for Warrantholder's own account and not with a view to the sale or
distribution of any part thereof.  The Warrantholder has no present intention of
selling or engaging in any public distribution of the same except pursuant to a
registration or exemption.

     (b) Private Issue.  The Warrantholder understands (i) that the Warrant
         -------------
Securities are not registered under the 1933 Act or qualified under applicable
state securities laws on the ground that the issuance contemplated by this
Warrant Agreement will be exempt from the registration and qualifications
requirements thereof, and (ii) that the Company's reliance on such exemption is
predicated on the representations set forth in this Section 10.  At no time was
Warrantholder presented with or solicited by any publicly issued or circulated
newspaper, mail, radio, television or other form of general advertising or
solicitation in connection with the offer, sale and purchase of the Warrant
Securities.

     (c) Disposition of Warrantholder's Rights.  In no event will the
         -------------------------------------
Warrantholder make a disposition of any of the Warrant Securities unless and
until (i) it shall have notified the Company of the proposed disposition, and
(ii) if requested by the Company, it shall have furnished the Company with an
opinion of counsel (which counsel may either be inside or outside counsel to the
Warrantholder) satisfactory to the Company and its counsel to the effect that
(A) appropriate action necessary for compliance with the 1933 Act has been
taken, or (B) an exemption from the registration requirements of the 1933 Act is
available.  Notwithstanding the foregoing, the restrictions imposed upon the
Warrant Securities do not apply to transfers from the beneficial owner of any of
the aforementioned securities to its nominee or from such nominee to its
beneficial owner, and shall terminate as to any particular Warrant Security when
(1) such security shall have been effectively registered under the 1933 Act and
sold by the holder thereof in accordance with such registration or (2) such
security shall have been sold without registration in compliance with Rule 144
under the 1933 Act, or (3) a letter shall have been issued to the Warrantholder
at its request by the staff of the Securities and Exchange Commission or a
ruling shall have been issued to the Warrantholder at its request by such
Commission stating that no action shall be recommended by such staff or taken by
such Commission, as the case may be, if such security is transferred without
registration under the 1933 Act in accordance with the conditions set forth in
such letter or ruling and such letter or ruling specifies that no subsequent
restrictions on transfer are required.  Whenever the restrictions imposed
hereunder shall terminate, as hereinabove provided, the Warrantholder or holder
of Warrant Securities then outstanding as to which such restrictions have
terminated shall be entitled to receive from the Company, without expense to
such holder, one or more new certificates for the Warrant or Warrant Securities
not bearing any restrictive legend.

     (d) Financial Risk.  The Warrantholder has such knowledge and experience in
         --------------
financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its
investment, and has the capacity to protect its own interests in connection with
the purchase of the Warrant Securities.

     (e) Risk of No Registration.  The Warrantholder understands that if the
         -----------------------
Company does not register with the Securities and Exchange Commission pursuant
to Section 12 of the

                                       6
<PAGE>

1934 Act (the "1934 Act"), or file reports pursuant to Section 15(d), of the
1934 Act, or if a registration statement covering the securities under the 1933
Act is not in effect when it desires to sell Warrant Securities, it may be
required to hold such securities for an indefinite period. The Warrantholder
also understands that any sale of Warrant Securities which might be made by it
in reliance upon Rule 144 under the 1933 Act may be made only in accordance with
the terms and conditions of that Rule.

     (f) Accredited Investor.  Warrantholder is an "accredited investor" within
         -------------------
the meaning of the Securities and Exchange Rule 501 of Regulation D, as
presently in effect.

11.  REQUESTS FOR REGISTRATION.
     -------------------------

     The Company and the initial Warrantholder will enter into an Amendment to
Investors' Rights Agreement in the form attached hereto as Exhibit IV to provide
the initial Warrantholder with certain registration rights in accordance with
the terms of the Company's existing Investors' Rights Agreement.

12.  TRANSFERS.
     ---------

     Subject to the terms and conditions contained in Section 10 hereof, this
Warrant Agreement and all rights hereunder are transferable in whole or in part
by the Warrantholder and any successor transferee, provided, however, in no
event shall the number of transfers of the rights and interests in all of the
Warrants exceed three (3) transfers.  The transfer shall be recorded on the
books of the Company upon receipt by the Company of a notice of transfer in the
form attached hereto as Exhibit III (the "Transfer Notice") together with
representations to the Company from the transferee in form reasonably acceptable
to the Company and in substance similar to the representations made by
Warrantholder in Section 10, at its principal offices and the payment to the
Company of all transfer taxes and other governmental charges imposed on such
transfer.

13.  MISCELLANEOUS.
     -------------

     (a) Effective Date.  The provisions of this Warrant Agreement shall be
         --------------
construed and shall be given effect in all respects as if it had been executed
and delivered by the Company on the date hereof.  This Warrant Agreement shall
be binding upon any successors or assigns of the Company.

     (b) Attorney's Fees.  In any litigation, arbitration or court proceeding
         ---------------
between the Company and the Warrantholder relating hereto, the prevailing party
shall be entitled to attorneys' fees and expenses and all costs of proceedings
incurred in enforcing this Warrant Agreement.

     (c) Governing Law.  This Warrant Agreement shall be governed by and
         -------------
construed for all purposes under and in accordance with the laws of the State of
California.

     (d) Counterparts.  This Warrant Agreement may be executed in two or more
         ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     (e) Notices.  Any notice required or permitted hereunder shall be given in
         -------
writing and shall be deemed effectively given upon personal delivery, facsimile
transmission (provided that the original is sent by personal delivery or mail as
hereinafter set forth) or seven (7) days after deposit in the United States
mail, by registered or certified mail, addressed (i) to the Warrantholder at
6111 North River Road, Rosemont, Illinois 60018, Attention: Venture Lease
Administration, cc: Legal Department, Attention: General Counsel, (and/or, if by
facsimile, (847) 518 5465 and (847) 518-5088) and (ii) to the Company at 166-B
Baypointe Parkway, San Jose, California 95134, Attention: Chief Financial
Officer, cc: Mark C. Stevens, Esq., Fenwick & West LLP, Two Palo Alto Square,
Palo Alto, California 94306 (and/or if by facsimile, (408) 965-2665 and (650)
494-1417 or at such other address as any such party may subsequently designate
by written notice to the other party.

     (f) Remedies.  In the event of any default hereunder, the non-defaulting
         --------
party may proceed to protect and enforce its rights either by suit in equity
and/or by action at law, including but not limited to an action for damages as a
result of any such default, and/or an action for specific performance for any
default where Warrantholder will not have an adequate remedy at law and where
damages will not be readily ascertainable.

     (g) No Impairment of Rights.  The Company will not avoid or seek to avoid
         -----------------------
the observance or performance of any of the terms of this Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate in order to
protect the rights of the Warrantholder against impairment.

     (h) Survival.  The representations, warranties, covenants and conditions of
         --------
the respective parties contained herein or made pursuant to this Warrant
Agreement shall survive the execution and delivery of this Warrant Agreement

     (i) Severability.  In the event any one or more of the provisions of this
         ------------
Warrant Agreement shall for any reason be held invalid, illegal or
unenforceable, the remaining provisions of this Warrant Agreement shall be
unimpaired, and the invalid, illegal or unenforceable provision shall be
replaced by a mutually acceptable valid, legal and enforceable provision, which
comes closest to the intention of the parties underlying the invalid, illegal or
unenforceable provision.

                                       7
<PAGE>

     (j) Amendments.  Any provision of this Warrant Agreement may be amended by
         ----------
a written instrument signed by the Company and by the Warrantholder.

   IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement to
be executed by its officers thereunto duly authorized as of the Effective Date.

      Company:                     OPTICAL NETWORKS, INCORPORATED

                                   By:   /s/ Terrence J. Schmid
                                       ----------------------------
                                   Title:       CFO
                                          -------------------------

      Warrantholder:               COMDISCO, INC.

                                   By:  /s/ James P. Labe
                                       ----------------------------
                                   Title: President, Comdisco Ventures Division

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]