VERILINK CORP
EX-10.2 FIRST MODIFICAITON OF COMMERCIAL PROMISSORY NOTE
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>g92053exv10w2.htm
<DESCRIPTION>EX-10.2 FIRST MODIFICAITON OF COMMERCIAL PROMISSORY NOTE
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<P align="right" style="font-size: 10pt">Exhibit&nbsp;10.2



<P align="left" style="font-size: 10pt">Customer No. <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><br>
Loan No. <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>RBC Centura</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>FIRST MODIFICATION OF COMMERCIAL </B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
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    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>PROMISSORY NOTE </B></TD>
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST MODIFICATION OF COMMERCIAL PROMISSORY NOTE (&#147;Modification&#148;) is
made as of November&nbsp;15, 2004, by and among VERILINK CORPORATION, a Delaware
corporation (&#147;Verilink&#148;) and LARSCOM INCORPORATED, a Delaware corporation
(&#147;Larscom&#148;; Verilink and Larscom are collectively referred to herein as
&#147;Borrower&#148;) and RBC CENTURA BANK (&#147;Bank&#148;).


<P align="center" style="font-size: 10pt">W I T N E S S E T H:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Verilink executed that certain Commercial Promissory Note, dated
April&nbsp;8, 2004 (the &#147;Note&#148;) payable to Bank in the principal amount of
$5,000,000.00;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in connection with the Note, Verilink entered into that certain
Loan and Security Agreement, dated April&nbsp;8, 2004 (the &#147;Loan Agreement&#148;), by and
among Verilink, V-X Acquisition Company, XEL Communications, Inc. and Bank;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Loan Agreement has been amended as of even date hereof
pursuant to that certain Waiver and First Amendment to Loan Agreement (the
&#147;Waiver and First Amendment&#148;) by and among Verilink, Larscom and Bank;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to the Waiver and First Amendment, Bank has reduced the
Committed Revolving Line from $5,000,000 to $3,500,000; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Borrower and Bank have agreed to modify the Note to set forth
herein and effectuate hereby their agreement in connection with the reduction
in the Committed Revolving Line.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrower and Bank, intending to
be mutually bound do hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The principal amount of the Note is hereby changed from the original
amount of $5,000,000.00 specified in the Note to the principal amount of
$3,500,000.00.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Larscom hereby agrees to be bound by the Note as a &#147;Borrower&#148; (as such
term is defined therein), and shall be deemed to be a party to, and subject to
and bound by, the terms and conditions of the Note.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Except as specifically modified herein, all of the terms, conditions,
provisions and obligations as set forth in the Note, as hereby amended, remain
unchanged and Borrower hereby adopts, reaffirms and ratifies the Note as
modified hereby.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;This Modification is not intended to be &#151; nor shall it be deemed or
construed to be  &#151; a novation or release of any indebtedness of Borrower, or a
release of the property securing the Note. Moreover, this Modification shall
not be construed as a release of Borrower from any liability under the Note or
any other documents evidencing or securing the indebtedness of Borrower to
Bank. Borrower hereby expressly acknowledges and affirms Borrower&#146;s liability
under the Note, as amended previously and hereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Borrower represents and warrants to Bank that Borrower has no defenses
or rights of set-off to the payment of the indebtedness evidenced by the Note
and Borrower does hereby waive, release and forever abandon any such defenses
or rights of set-off existing on the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;This Modification shall be binding upon and shall inure to the benefit
of the heirs, successors, successors-in-title or assigns of the parties hereto.


<P align="center" style="font-size: 10pt">&#091;SIGNATURES APPEAR ON FOLLOWING PAGE&#093;



<P align="center" style="font-size: 10pt">-2-
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Borrower and Bank have caused this Modification to be
executed under seal by their respective representatives duly authorized
thereunto, all as of the date first above written.

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">VERILINK CORPORATION
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Witness:</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ C. W. Smith
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ A. Tucker</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade width="80%" align="left">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="80%" align="left"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name: C. W. Smith
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Print Name: A. Tucker</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title: Vice President and CFO</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LARSCOM INCORPORATED</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ C. W. Smith
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Witness:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade width="80%" align="left">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="80%" align="left"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name: C. W. Smith
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Print Name: A. Tucker</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title: Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">RBC CENTURA BANK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ Joseph Singer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade width="80%" align="left"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name: Joseph Singer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title: Vice President &#150; Georgia Markets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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