X0101 42003-05-280001052303TERAYON COMMUNICATION SYSTEMS TERN0001140407TAYLOR ARTHUR T 0100SVP, CFONon-Qualified Stock Option (right to buy)2.452003-05-284A01250002.45A2004-05-282013-05-28Common Stock125000125000DOption granted under the 1997 Option Plan on 05/28/2003, with 50% vesting on 05/28/2004 and 50% vesting on 05/28/2005/s/ Arthur T. Taylor2003-05-30