this is what happens when you cross subnets host1 is trying to contact host4.
An application generates an IP packet for Host4, a machine on
a different subnet
Packet for Host 4 is passed to the LAN Driver
Host1 is not aware that Host4 is on a different subnet, it
assumes that Host4 is on the same physical network. Thus it
sends out an ARP Request for Host4. This broadcast is received
by the Router
Router realizes that Host 1 thinks that Host 4 is on the same
physical network. (That's why it is attempting to use ARP).
Router recognizes the Host 4 machine as connected to Subnet2.
Thus it sends an ARP Reply indicating that its own MAC
address should be used to send packets to Host 4
An application generates another IP packet for Host4
As a result of the ARP reply, the ARP Cache maps Host 4 IP
address to Routers MAC address. Thus the packet is forwarded
to the Router
Router routes the packet to Host 4 on a different subnet
from
http://www.eventhelix.com/RealTimeMantra/Networking/Arp.pdf proxy arp section