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                                                                   EXHIBIT 10.26

                                PROMISSORY NOTE

                                                                 January 1, 1999

      FOR VALUE RECEIVED, the undersigned hereby promises to pay to Verilink
Corporation ("Verilink") at San Jose, California, the principal amount of the
advances set forth on Schedule 1, plus interest thereon at the rate of six
percent (6%) per annum, compounded monthly, commencing on the dates that the
advances were made to the undersigned, as set forth on Schedule 1. Advances
hereunder shall not exceed the principal sum of $1,000,000.

      All principal and accrued interest due under this Note shall be paid on or
before December 31, 1999. Principal and interest are payable in lawful money of
the United State.

      Each payment shall be credited first to the interest and the remainder to
principal, and interest shall thereupon cease upon principal so credited.

      This Note may be prepaid at any time, in whole or in part, without premium
or penalty.

      If action should be instituted on this Note, the undersigned agrees to pay
the holder, in addition to such amounts owed pursuant to this Note, all costs of
collection, including a reasonable sum of attorneys' fees.

      This Promissory Note shall be governed by the laws of the State of
California.

      This Promissory Note supersedes the Promissory Note between the
undersigned and Verilink dated September 1, 1998.


                                          /s/ LEIGH S. BELDEN
                                       --------------------------------------
                                              Leigh S. Belden