Zhone Reaches Agreement with Former Tellium Executives

Zhone Technologies reached an agreement with three former Tellium executives regarding their separation from the company. Zhone forgave the outstanding restricted stock loans of approximately $21.6 million held by the former executives, and will make a payment of approximately $15.5 million to the appropriate taxing authorities on their behalf to satisfy the tax liability associated with the forgiveness. The individuals involved are former Chairman and CEO Harry Carr, former Chief Financial Officer, Secretary and Treasurer Michael J. Losch, and former Chief Technical Officer Krishna Bala. Each of those individuals has resigned from Zhone Technologies, and has executed a general release relating to his employment.


On November 13, Zhone Technologies completed its merger with Tellium.
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