Document:

EXISTING DIRECTOR COMPENSATION PACKAGE

Summary of Unitrin, Inc. 

NON-EMPLOYEE DIRECTOR COMPENSATION 

 

Cash Compensation

Board -- annual retainer and attendance fees/reimbursement of expenses:

	$30,000
	$1,500 for each board meeting attended
	reimbursement of travel expenses incurred in connection with attending any board of director or committee meetings

Executive Committee -- annual retainer fees:

	$8,000
	Chairman -- additional $8,000

Audit Committee -- annual retainer and attendance fees:

	$12,000
	Chairman -- additional $12,000
	$1,000 meeting fee for each Committee meeting attended on a day other than a day when Board meets

Compensation Committee -- annual retainer fees:

	$5,000
	Chairman -- additional $5,000

Nominating & Corporate Governance Committee -- annual retainer fees:

	$5,000
	Chairman -- additional $10,000

Equity Compensation

Pursuant to the 1995 Non-Employee Director Stock Option Plan, each eligible non-employee director receives a stock option grant for 4,000 shares of the Company's common stock (i) initially upon becoming a director; and (ii) annually following the Company's Annual Meeting of Shareholders.

 

February 1, 2006Exhibit 10.1

    
      

    

     

    

      Exhibit
        10.1

      

      FORM
        OF AMENDMENT NO 1. TO 

      CONVERTIBLE
        PROMISSORY NOTE

      

      AMENDMENT
        NO. 1 TO CONVERTIBLE PROMISSORY NOTE (this “Amendment”), dated as of
        ________________, by and among Verilink Corporation, a Delaware corporation,
        with headquarters located at 11551 E. Arapahoe Rd., Suite 150, Centennial,
        Colorado 80112 (the “Company”) and ______________ (the “Holder”).

      

      RECITALS:

       

      A.    The
        Company has issued to the Holder that certain Convertible Promissory Note
        dated
        February 5, 2004 in the original principal amount of $___________ (the “Note”)
        of which $__________ in principal amount remains outstanding, together with
        unpaid interest on such outstanding balance accruing since November 15,
        2005.

      

      B.    The
        Company and the Holder desire to enter into this Amendment pursuant to which
        the
        Note shall be amended to revise certain terms set forth therein.

      

      C.    Capitalized
        terms used herein and not otherwise defined herein shall have the respective
        meanings ascribed to them in the Note.

      

      NOW,
        THEREFORE, in consideration of the foregoing recitals and the mutual promises
        hereinafter set forth, the Company and the Investors hereby agree as
        follows:

      

      1.    AMENDMENT
        TO CONVERTIBLE PROMISSORY NOTE.

      

      (a)    Effective
        as of February 5, 2006, the annual rate of interest referenced in the first
        paragraph of the Note is hereby amended to read “ten percent (10%)” rather than
        the “seven percent (7%)” as currently set forth in such paragraph.

      

      (b)    Section
        3
        of the Convertible Promissory Note is hereby amended and restated to read
        in its
        entirety as follows:

      

      “Maker
        shall pay all accrued and unpaid interest under this Note on each May 15,
        August
        15, November 15 and February 15 until the Principal Commencement Date. Beginning
        with the Principal Commencement Date and for so long as the indebtedness
        evidenced by this Note shall remain outstanding, Maker shall pay, on the
        fifteenth day of each month monthly installment payments in the amount of
        1/12th
        of the
        outstanding principal amount as of the Principal Commencement Date plus accrued
        and unpaid interest to such installment payment date. For purposes of this
        Note,
“Principal Commencement Date” shall mean the fifteenth day of the month
        following the date on which the Maker’s Senior Subordinated Convertible Notes
        are paid, converted, or redeemed in full and are no longer outstanding. To
        the
        extent not previously paid or converted as provided herein, the principal
        under
        this Note shall be due and payable on the earlier of (i) the date that is
        the
        first anniversary of the Principal Commencement 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Date
        and
        (ii) February 6, 2009 (the earlier of such dates being referred to as the
        “Maturity Date”).
        Principal
        and interest shall be payable to Holder when due in lawful money of the United
        States of America in immediately available funds at such place as Holder
        may
        from time to time notify the Maker in writing. The Maker may prepay this
        Note,
        in whole or in part, at any time, by giving Holder thirty (30) days’ written
        notice of its election to so prepay. After notice of such prepayment has
        been
        given to Holder, but prior to actual prepayment by Maker, Holder shall continue
        to have the conversion privilege set forth in Section 5 hereof.”

      

      (c)    Section
        7
        of the Convertible Promissory Note is hereby amended by adding a new sub-section
        7(b) as follows:

      

      “(b)
        Without the consent of the Holder and so long as the Indebtedness represented
        by
        this Note remains outstanding, Maker shall not incur any indebtedness ranking
        senior in right of payment to or on parity with this Note, other than (i)
        Maker’s obligations with respect to its 7% Senior Secured Convertible
        Notes and associated warrants and related transaction documents (the “Senior
        Notes”), including
        any amendments, restructurings, refinancings or other modifications
        thereof, provided, however, that with regard to any such amendments,
        restructurings, refinancings or modifications, the average life to maturity
        of
        such new Indebtedness is less than or equal to that of the Senior Notes,
        and the
        principal amount of such new Indebtedness is less than or equal to the principal
        amount plus accrued and unpaid interest and other charges outstanding under
        the
        Senior Notes, at the time of such amendment, restructuring refinancing or
        modification,  (ii) other Indebtedness as of the date hereof, including any
        modifications, extensions, amendments or renewals thereof and (iii) Indebtedness
        incurred in the ordinary course of business, including but not limited to
        purchase money indebtedness and capital lease obligations incurred to acquire
        property in the ordinary course of business. For purposes of this Note,
“Indebtedness” shall mean indebtedness for borrowed money.” 

      

      (d)    Section
        7
        of the Convertible Promissory Note is hereby amended by adding a new sub-section
        7(c) as follows:

      

      “(c)
        Without the consent of the Holder and so long as the indebtedness represented
        by
        this Note remains outstanding, Maker shall not create or incur or assume
        any
        consensual liens upon any of its property or assets that secure indebtedness,
        other than (i) liens securing indebtedness or obligations permitted under
        Section 7(b), including any new Indebtedness permitted under subsection (i)
        thereof; (ii) if the validity or amount thereof is being contested in good
        faith
        by appropriate and lawful proceedings: (a) liens for taxes, assessments or
        charges due and payable and subject to interest or penalty; (b) liens upon,
        and
        defects of title to, real or personal property, including any attachment
        of
        personal or real property or other legal process prior to adjudication of
        a
        dispute on the merits; (c) liens of mechanics, materialmen, warehousemen,
        carriers, or other like liens; and (d) adverse judgments on appeal; (iii)
        pledges or deposits made in the ordinary course of business, including but
        not
        limited to purchase money security interests granted in the ordinary course
        of
        business; and (iv) easements arising by reason of zoning restrictions,
        easements, licenses, reservations, covenants, rights-of-way, utility easements,
        building restrictions and other similar encumbrances on the use of real property
        which do not materially detract from the value of such real property or
        interfere with the ordinary conduct of the business conducted and proposed
        to be
        conducted at such real property.”

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      2.    DISCLOSURE
        OF AMENDMENT.

      

      The
        Company shall promptly file a Current Report on Form 8-K describing the terms
        of
        this Amendment and attaching a copy of the form of this Amendment.

      

      3.    REPRESENTATIONS
        AND WARRANTIES OF MAKER.

      

      (a)    Authority.
        This
        Amendment constitutes the legal, valid, and binding obligation of the Company,
        enforceable against the Company in accordance with its terms. The Company
        has
        the requisite corporate power, and authority to execute and deliver this
        Amendment and to perform its obligations under the Note as amended by this
        Amendment.

      

      (b)    No
        Default.
        The
        execution and delivery of this Amendment by the Company will not give any
        individual, corporation (including any non-profit corporation), general or
        limited partnership, limited liability company, joint venture, estate, trust,
        association, organization, labor union, or other entity or governmental body
        (a
“Person”) the right to prevent, delay, or otherwise interfere with any of the
        obligations of the Company under the Note as amended by this Amendment
        or:

      

      (i)         
        contravene,
        conflict with, or result in a violation of (A) any provision of the Certificate
        of Incorporation or Bylaws of the Company, or (B) any resolution adopted
        by the
        board of directors or the stockholders of the Company;

      

      (ii)        
        contravene,
        conflict
        with, or
        result in a violation of, or give any Person the right to challenge this
        Amendment or to exercise any remedy or obtain any relief under, any legal
        requirement or any order to which the Company, or any of the assets owned
        or
        used by the Company, may be subject;

      

      (iii)       
        contravene,
        conflict with, or result in a violation or breach of any provision of, or
        give
        any Person the right to declare a default or exercise any remedy under, or
        to
        accelerate the maturity or performance of, or to cancel, terminate, or modify,
        any agreement, contract, debt, obligation, promise, or undertaking (whether
        written or oral and whether express or implied) that is legally binding to
        which
        the Company is a party or by which the Company or any of its properties may
        be
        bound.

      

      (c)    Third
        Party Consents.
        Except
        for such Consents (as defined below) as have been obtained by the Company
        in
        writing and delivered in writing to Holder, the Company is not and will not
        be
        required to obtain any approval, consent, ratification, waiver, or other
        authorization (“Consent”) from any Person, including, but not limited to, any
        lender, creditor or shareholder of the Company in connection with the execution
        and delivery of this Amendment or the performance of the obligations of the
        Company under the Note as amended by this Amendment.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      4.    MISCELLANEOUS.

      

      (a)    Counterparts.
        This
        Amendment maybe executed in two or more identical counterparts, all
        of
        which shall be considered one and the same agreement and shall become effective
        when counterparts have been signed by each party and delivered to the other
        party; provided that a facsimile signature shall be considered due execution
        and
        shall be binding upon the signatory thereto with the same force and effect
        as if
        the signature were an original, not a facsimile signature.

      

      (b)    Headings.
        The
        headings of this Amendment are for convenience of reference and shall not
        form
        part of, or affect the interpretation of, this Amendment.

      

      (c)    Severability.
        If any
        provision of this Amendment shall be invalid or unenforceable in any
        jurisdiction, such invalidity or unenforceability shall not affect the validity
        or enforceability of the remainder of this Amendment in that jurisdiction
        or the
        validity or enforceability of any provision of this Amendment in any other
        jurisdiction.

      

      (d)    No
        Third Party Beneficiaries.
        This
        Amendment is intended for the benefit of the parties hereto and their respective
        permitted successors and assigns, and is not for the benefit of, nor may
        any
        provision hereof be enforced by, any other Person.

      

      (e)    Further
        Assurances.
        Each
        party shall do and perform, or cause to be done and performed, all such further
        acts and things, and shall execute and deliver all such other agreements,
        certificates, instruments and documents, as the other party may reasonably
        request in order to carry out the intent and accomplish the purposes of this
        Amendment
        and the consummation of the transactions contemplated hereby.

      

      (f)    No
        Strict Construction.
        The
        language used in this Amendment will be deemed to be the language chosen
        by the
        parties to express their mutual intent, and no rules of strict construction
        will
        be applied against any party.

      

      (g)    Reaffirmation.
        The
        Company hereby confirms and agrees that the Note is, and shall continue to
        be,
        in full force and effect and is hereby ratified and confirmed in all respects
        as
        amended by this Amendment.

      

      

      [SIGNATURE
        PAGE FOLLOWS]

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Company and Holder have caused this Amendment to be
        duly
        executed as of the date first written above.

       

      
 

      
        	 	
                COMPANY:

                

                VERILINK
                  CORPORATION, 

                a
                  Delaware corporation

                

                

                By: 
                  ________________________

                Name:
                  

                Title:
                  

                

                

                

                HOLDER:

                

                _____________________________

                 

                 

                By: 
__________________________   

                Name:
                  

                Title:
                  

              

      

      

      
 

       

       

       

       

      5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]