Lease Cancellation Agreement between Verilink Corporation and Industrial Properties of the South (January 19, 2001)

Summary

Verilink Corporation and Industrial Properties of the South have agreed to terminate their existing lease agreement early, effective February 28, 2001. Verilink will vacate and return the leased space in clean condition by that date. As part of the agreement, Verilink will pay rent for the second floor through May 2001, in exchange for being released from rent obligations for the remaining ten months of the lease, resulting in significant cost savings. Additional business terms are outlined in a separate letter agreement.

EX-10.56 2 g66908ex10-56.txt LEASE CANCELLATION AGREEMENT 1 EXHIBIT 10.56 January 19, 2001 Lease Cancellation Agreement Verilink Corporation (as Successor to TxPort, Inc.) as Lessee and Industrial Properties of the South as Lessor have a lease agreement dated June 1993, as amended (the "Lease") in which Verilink's space on the top, third floor, and first floor space expire as of February 28, 2001; but Verilink's lease on the second floor space runs through March 31, 2002. Lessee and Lessor hereby agree that the Lease is cancelled, terminated and no longer in effect as of February 28, 2001 and that Lessee will surrender the space empty in broom clean condition as of the same date. Other business terms regarding this cancellation are covered in a separate letter agreement of this same date. /s/ Charlene B. Graham 1/19/01 /s/ C. W. Smith 1/19/01 - -------------------------------------- -------------------------------- by: Lessor Date by: Lessee Date Industrial Properties of the South Verilink Corporation VP & Corporate Controller 2 January 19, 2001 Business Terms of Lease Cancellation Agreement Verilink agrees to pay Industrial Properties of the South rent on the second floor for March, April, and May of 2001 in order to receive a cancellation of rent due for the remaining ten (10) months of the lease. At $13,968.39 per month, this is a savings of $139,683.90 to Verilink. This consideration is necessary to recoup the discounted rate Verilink has had for the past two (2) years of $6.40 rather than $6.90 for the longer term lease. /s/ Charlene B. Graham 1/19/01 - ------------------------------------- Charlene B. Graham date /s/ C. W. Smith 1/19/01 --------------------------------------- by: Verilink Corporation date VP & Corporate Controller