Zhone Forgives Exec Loans

OAKLAND, Calif. -- Zhone Technologies, Inc. (Nasdaq:ZHNE) announced that the company reached an agreement with three former Tellium executives regarding their separation from the company. In accordance with the agreements, the company 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. Zhone Technologies Inc. (Nasdaq: ZHNE)