EXHIBIT 10.26
SETTLEMENT OF EMPLOYMENT TERMS AND EMPLOYMENT LETTERS
JANUARY 28, 2002
Whereas Xxxxxx X. Xxxx ("Executive") and Digital Lightwave, Inc. ("Company")
entered into the following agreements:
{circle}Employment terms dated April 13, 1998;
{circle}Addendum to employment letters dated February 9, 1999;
{circle}Addendum to employment letters dated October 18, 1999; and
{circle}Letter dated February 27, 2001.
Whereas the parties have agreed to terminate these agreements.
The parties have agreed to the following settlement:
1. For the period January 29, 2002 to August 15, 2002, Executive will serve
in the role of Executive Consultant.
2. Executive's compensation during this period is $8,833.33 per month, paid
semi-monthly.
3. On August 15, 2002, Executive will receive an additional payment of
$42,584.
4. On January 15, 2003, Executive will receive a payment of $100,000.
5. On January 15, 2004, Executive will receive a payment of $100,000.
6. Executive will receive Company paid life, disability, accident and group
medical and dental insurance benefits substantially similar to those
benefits that Executive received immediately prior to this Settlement.
7. All stock options, warrants, right and other Company stock-related awards
granted to Executive by the Company, to the extent vested as of August
15, 2002, shall remain exercisable for the lesser of a one (1) year
period and the maximum period permissible under the accounting
regulations governing business combinations following the date of August
15, 2002.
8. Company is not responsible for any outplacement benefits.
9. Company is not responsible for automobile allowance after January 28,
2002.
Executive and Company knowingly and voluntarily mutually release and forever
discharge Executive and Company with respect to any and all claims, rights, and
causes of actions, whether currently known or unknown, that now has, has ever
had, or may ever have arising from or related to any act, omission, or thing
occurring at any time up to an including the date on which Executive and
Company sign this Settlement.
For the Executive: For the Company:
\s\ XXXXXX X XXXX \s\ XXXXXX X XXXX
Xxxxxx X. Xxxx Xx. Xxxxx X. Xxxx
Executive Consultant Chairman, President & CEO
January 28, 2002 January 28, 2002