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                                                                   Exhibit 10.1B
                                    Form of Option Award Agreement for Directors

                        NON-QUALIFIED STOCK OPTION AWARD
                      PURSUANT TO THE VERILINK CORPORATION
                            2004 STOCK INCENTIVE PLAN

      THIS AWARD is made as of the Grant Date by VERILINK CORPORATION (the
"Company") to ____________________________________ (the "Optionee").

      Upon and subject to the Terms and Conditions attached hereto and
incorporated herein by reference, the Company hereby awards as of the Grant Date
to Optionee an option (the "Option"), as described below, to purchase the Option
Shares.

      A.    Grant Date: ________________.

      B.    Type of Option: Non-Qualified Stock Option issued under the Verilink
            Corporation 2004 Stock Incentive Plan (the "Plan").

      C.    Plan under which granted: Verilink Corporation 2004 Stock Incentive
            Plan.

      D.    Option Shares: All or any part of __________ shares of the Company's
            common stock, $.01 par value per share (the "Stock"), subject to
            adjustment as provided in the attached Terms and Conditions.

      E.    Exercise Price: $______ per share, subject to adjustment as provided
            in the attached Terms and Conditions.

      F.    Option Period: The Option may be exercised only during the Option
            Period which commences on the Grant Date and ends on the earlier of
            (a) the tenth (10th) anniversary of the Grant Date; (b) the later of
            the date (i) three (3) months following the date the Optionee ceases
            to be a director of the Company for any reason other than due to
            death, Disability or a Change in Control; or (ii) twelve (12) months
            following the date the Optionee ceases to be a director of the
            Company due to death, Disability or a Change in Control; provided
            that the Option may be exercised as to no more than the vested
            Option Shares, determined pursuant to the Vesting Schedule. Note
            that other limitations to exercising the Option, as described in the
            attached Terms and Conditions, may apply.

      G.    Vesting Schedule: The Option Shares shall become vested in
            accordance with the attached Vesting Schedule. All or a portion of
            the Option Shares may become vested on an earlier date as provided
            in the attached Terms and Conditions.

      IN WITNESS WHEREOF, the Company has executed and sealed this Award as of
the Grant Date set forth above.

                                                    VERILINK CORPORATION

                                                    By: ________________________

                                                    Title: _____________________

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                              TERMS AND CONDITIONS
                                     TO THE
                        NON-QUALIFIED STOCK OPTION AWARD
                      PURSUANT TO THE VERILINK CORPORATION
                            2004 STOCK INCENTIVE PLAN

      1. Exercise of Option. Subject to the provisions of the Plan and the Award
which is made pursuant to the Verilink Corporation 2004 Stock Incentive Plan and
subject also to these Terms and Conditions, which are incorporated in and made a
part of the attached Award:

            (a) the Option may be exercised with respect to all or any portion
      of the Vested Option Shares at any time during the Option Period by the
      delivery to the Company, at its principal place of business, of a written
      notice of exercise in substantially the form attached hereto as Exhibit 1;
      and

            (b) payment to the Company of the Exercise Price multiplied by the
      number of Vested Option Shares being purchased (the "Purchase Price") as
      provided in Section 2.

Upon acceptance of such notice and receipt of payment in full of the Purchase
Price, the Company shall cause to be issued a certificate representing the
Vested Option Shares purchased.

      2. Purchase Price. Payment of the Purchase Price for all Vested Option
Shares purchased pursuant to the exercise of an Option shall be made

            (a) in cash or certified check;

            (b) by delivery to the Company of a number of shares of Stock which
      have been owned by the Optionee for at least six (6) months prior to the
      date of the Option's exercise having a fair market value, as determined
      under the Plan, on the date of exercise either equal to the Purchase Price
      or in combination with cash or a certified check to equal the Purchase
      Price;

            (c) by receipt of the Purchase Price in cash from a broker, dealer
      or other "creditor" as defined by Regulation T issued by the Board of
      Governors of the Federal Reserve System following delivery by the Optionee
      to the Committee of instructions in a form acceptable to the Committee
      regarding delivery to such broker, dealer or other creditor of that number
      of Option Shares with respect to which the Option is exercised; provided,
      however, that any such cashless exercise must be effected in a manner
      consistent with the restrictions of Section 13(k) of the Securities
      Exchange Act of 1934 (Section 402 of the Sarbanes-Oxley Act of 2002); or

            (d) or any combination of the foregoing.

      3. Vested Option Shares. The Option Shares shall become vested in the
manner provided in the Vesting Schedule attached hereto. In the event of a
Change in Control, including a Change in Control approved by the Board of
Directors, the Option Shares shall become fully vested immediately prior to the
effective date of the Change in Control.

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      4. Rights as Shareholder. Until the stock certificates reflecting the
Option Shares accruing to the Optionee upon exercise of the Option are issued to
the Optionee, the Optionee shall have no rights as a shareholder with respect to
such Option Shares. The Company shall make no adjustment for any dividends or
distributions or other rights on or with respect to Option Shares for which the
record date is prior to the issuance of that stock certificate, except as the
Plan or the attached Award otherwise provides.

      5. Restriction on Transfer of Option and of Option Shares. Except as
otherwise expressly permitted by the Committee in writing, the Option evidenced
hereby is nontransferable other than by will or the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionee only
by the Optionee (or in the event of his/her disability, by his/her personal
representative) and after his/her death, only by his/her legatee or the executor
of his/her estate.

      6. Changes in Capitalization.

            (a) Except as provided in Subsection (b) below, if the number of
      shares of Stock shall be increased or decreased by reason of a subdivision
      or combination of shares of Stock, the payment of an ordinary stock
      dividend in shares of Stock or any other increase or decrease in the
      number of shares of Stock outstanding effected without receipt of
      consideration by the Company, an appropriate adjustment shall be made by
      the Committee, in a manner determined in its sole discretion, in the
      number and kind of Option Shares and in the Exercise Price.

            (b) In the event of a merger, consolidation, reorganization,
      extraordinary dividend or other change in the corporate structure of the
      Company, including a Change in Control, or tender offer for shares of
      Stock, the Company shall provide for an appropriate adjustment to the
      Option or provide for the substitution of a new option which adjustment or
      substitution shall be consistent with the event requiring the adjustment
      or substitution; provided, however, in the event the Company will not be
      the surviving entity as a result of the event and the surviving entity
      does not agree to the adjustment or substitution, the Committee may elect
      to terminate the Option Period as of the date of the Change in Control in
      consideration of the payment to the Optionee of the sum of the difference
      between the then Fair Market Value of the Stock and the Exercise Price for
      each Option Share as to which the Option has not been exercised as of the
      date of the Change in Control.

            (c) The existence of the Plan and the Option granted pursuant to
      this Agreement shall not affect in any way the right or power of the
      Company to make or authorize any adjustment, reclassification,
      reorganization or other change in its capital or business structure, any
      merger or consolidation of the Company, any issue of debt or equity
      securities having preferences or priorities as to the Stock or the rights
      thereof, the dissolution or liquidation of the Company, any sale or
      transfer of all or any part of its business or assets, or any other
      corporate act or proceeding. Any adjustment pursuant to this Section may
      provide, in the Committee's discretion, for the elimination without
      payment therefor of any fractional shares that might otherwise become
      subject to any Option.

      7. Special Limitation on Exercise. No purported exercise of the Option
shall be effective without the approval of the Committee, which may be withheld
to the extent that the exercise, either individually or in the aggregate
together with the exercise of other previously exercised stock options and/or
offers and sales pursuant to any prior or contemplated offering of

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securities, would, in the sole and absolute judgment of the Committee, require
the filing of a registration statement with the United States Securities and
Exchange Commission or with the securities commission of any state. If a
registration statement is not in effect under the Securities Act of 1933, or any
applicable state securities law with respect to shares of Stock purchasable or
otherwise deliverable under the Option, the Optionee (a) shall deliver to the
Company, prior to the exercise of the Option or as a condition to the delivery
of Stock pursuant to the exercise of an Option exercise, such information,
representations and warranties as the Company may reasonably request in order
for the Company to be able to satisfy itself that the Option Shares are being
acquired in accordance with the terms of an applicable exemption from the
securities registration requirements of applicable federal and state securities
laws and (b) shall agree that the shares of Stock so acquired will not be
disposed of except pursuant to an effective registration statement, unless the
Company shall have received an opinion of counsel that such disposition is
exempt from such requirement under the Securities Act of 1933 and any applicable
state securities law.

      8. Legend on Stock Certificates. Certificates evidencing the Option
Shares, to the extent appropriate at the time, shall have noted conspicuously on
the certificates a legend intended to give all persons full notice of the
existence of the conditions, restrictions, rights and obligations set forth
herein and in the Plan.

      9. Governing Laws. This Award and the Terms and Conditions shall be
construed, administered and enforced according to the laws of the State of
Delaware; provided, however, the Option may not be exercised except in
compliance with exemptions available under applicable state securities laws of
the state in which the Optionee resides and/or any other applicable securities
laws.

      10. Successors. This Award and the Terms and Conditions shall be binding
upon and inure to the benefit of the heirs, legal representatives, successors
and permitted assigns of the Optionee and the Company.

      11. Notice. Except as otherwise specified herein, all notices and other
communications under this Award shall be in writing and shall be deemed to have
been given if personally delivered or if sent by registered or certified United
States mail, return receipt requested, postage prepaid, addressed to the
proposed recipient at the last known address of the recipient. Any party may
designate any other address to which notices shall be sent by giving notice of
the address to the other parties in the same manner as provided herein.

      12. Severability. In the event that any one or more of the provisions or
portion thereof contained in the Award and these Terms and Conditions shall for
any reason be held to be invalid, illegal or unenforceable in any respect, the
same shall not invalidate or otherwise affect any other provisions of the Award
and these Terms and Conditions, and the Award and these Terms and Conditions
shall be construed as if the invalid, illegal or unenforceable provision or
portion thereof had never been contained herein.

      13. Entire Agreement. Subject to the terms and conditions of the Plan, the
Award and the Terms and Conditions express the entire understanding of the
parties with respect to the Option.

      14. Violation. Any transfer, pledge, sale, assignment, or hypothecation of
the Option or any portion thereof shall be a violation of the terms of the Award
or these Terms and Conditions and shall be void and without effect.

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      15. Headings and Capitalized Terms. Section headings used herein are for
convenience of reference only and shall not be considered in construing the
Award or these Terms and Conditions. Capitalized terms used, but not defined, in
either the Award or the Terms and Conditions shall be given the meaning ascribed
to them in the Plan.

      16. Specific Performance. In the event of any actual or threatened default
in, or breach of, any of the terms, conditions and provisions of the Award and
these Terms and Conditions, the party or parties who are thereby aggrieved shall
have the right to specific performance and injunction in addition to any and all
other rights and remedies at law or in equity, and all such rights and remedies
shall be cumulative.

      17. No Right to Continued Service. Neither the establishment of the Plan
nor the award of Option Shares hereunder shall be construed as giving the
Optionee the right to continued service as a director of the Company or in any
other capacity.

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                                    EXHIBIT 1

                              NOTICE OF EXERCISE OF
                            STOCK OPTION TO PURCHASE
                                 COMMON STOCK OF
                              VERILINK CORPORATION

                                                    Name _______________________
                                                    Address ____________________
                                                    ____________________________
                                                    Date _______________________

Verilink Corporation
127 Jetplex Circle
Madison, Alabama  35758-8989

Attn: Corporate Secretary

Re: Exercise of Non-Qualified Stock Option

Gentlemen:

      Subject to acceptance hereof by Verilink Corporation (the "Company")
pursuant to the provisions of the Verilink Corporation 2004 Stock Incentive Plan
(the "Plan") I hereby give notice of my election to exercise options granted to
me to purchase ______________ shares of common stock $.01 par value ("Common
Stock"), of the Company under the Non-Qualified Stock Option Award (the "Award")
dated as of ____________. The purchase shall take place as of __________, 200__
(the "Exercise Date").

      On or before the Exercise Date, I will pay the applicable purchase price
as follows:

            [ ] by delivery of cash or a certified check for $___________ for
            the full purchase price payable to the order of Verilink
            Corporation.

            [ ] by delivery of cash or a certified check for $___________
            representing a portion of the purchase price with the balance to
            consist of shares of Common Stock that I have owned for at least six
            months and that are represented by a stock certificate I will
            surrender to the Company with my endorsement. If the number of
            shares of Common Stock represented by such stock certificate exceeds
            the number to be applied against the purchase price, I understand
            that a new stock certificate will be issued to me reflecting the
            excess number of shares.

            [ ] by delivery of a stock certificate representing shares of Common
            Stock that I have owned for at least six months which I will
            surrender to the Company with my endorsement as payment of the
            purchase price. If the number of shares of Common Stock represented
            by such certificate exceeds the number to be applied against the
            purchase price, I understand that a new certificate will be issued
            to me reflecting the excess number of shares.



                               Exhibit 1 - Page 1

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            [ ] by delivery of the purchase price by _________________________,
            a broker, dealer or other "creditor" as defined by Regulation T
            issued by the Board of Governors of the Federal Reserve System. I
            hereby authorize the Company to issue a stock certificate for the
            number of shares indicated above in the name of said broker, dealer
            or other creditor or its nominee pursuant to instructions received
            by the Company and to deliver said stock certificate directly to
            that broker, dealer or other creditor (or to such other party
            specified in the instructions received by the Company from the
            broker, dealer or other creditor) upon receipt of the purchase
            price.

      As soon as the stock certificate is registered in my name, please deliver
it to me at the above address.

      If the Common Stock being acquired is not registered for issuance to the
Optionee pursuant to an effective registration statement on Form S-8 (or
successor form) filed under the Securities Act of 1933, as amended (the "1933
Act"), I understand and agree that I may be required to make such additional
representations, warranties, covenants, and agreements with the Company as the
Company may reasonably request.

      I understand that the certificates representing the shares being purchased
by me in accordance with this notice shall bear a legend referring to the
foregoing covenants, representations and warranties and restrictions on
transfer, and I agree that a legend to that effect may be placed on any
certificate which may be issued to me as a substitute for the certificates being
acquired by me in accordance with this notice.

                                                    Very truly yours,
                                                    ____________________________

AGREED TO AND ACCEPTED:

VERILINK CORPORATION

By: ________________________________________

Title: _____________________________________

Number of Shares
Exercised: _________________________________

Number of Shares
Remaining: _________________________________        Date: ______________________

                               Exhibit 1 - Page 2

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                                   SCHEDULE I

                              VERILINK CORPORATION
                        NON-QUALIFIED STOCK OPTION AWARD

                                Vesting Schedule

      "Vested Option Shares" means only that percentage of the number of shares
of Stock subject to the Option as to which the Option becomes exercisable after
the Vesting Commencement Date following completion of a continuous period of
service indicated in the schedule below.

      The Option will vest as to thirty-three and one-third percent (33 1/3%) of
      the Option Shares on the first anniversary of the Vesting Commencement
      Date and then an additional 1/36th of the Option Shares shall become
      Vested Option Shares per month thereafter until the third anniversary of
      the Vesting Commencement Date at which point all Option Shares will be
      Vested Option Shares; provided, however, that the vesting of Option Shares
      shall continue only if the Optionee remains at all times in the continuous
      service of the Company as a director from and after the Vesting
      Commencement Date.

For purposes of this Vesting Schedule, the Vesting Commencement Date is
_______________.

      1.    Construction.

      The right of Optionee to vest in Option Shares shall cease upon the
termination of his or her service as a director of the Company, whether by
reason of death, Disability or otherwise and, thereafter, no further shares
shall become Vested Option Shares; and the Option shall be exercisable, only as
to Vested Option Shares determined as of the date of the termination of service,
during the remaining Option Period, as specified in the Award.