Document:

DIGITAL LIGHTWAVE EXHIBIT 10.105

Exhibit 10.105

SETTLEMENT AGREEMENT 

This SETTLEMENT AGREEMENT (the "Agreement") is made and entered into as of January 24, 2004 subject to satisfaction of the conditions set forth herein, by and between Digital Lightwave, Inc. ("Lightwave") and Arrow Electronics, Inc. ("Arrow"), on the following terms and conditions: 

RECITALS 

WHEREAS, as of the date of this Agreement, Lightwave owes Arrow $3,710,218.04 (the "Amount Due") in valid and undisputed charges for goods and services it purchased and has received from Arrow; 

WHEREAS, Digital has offered to settle its outstanding liabilities with its general unsecured creditors for ten percent (10%) of each of such creditors current outstanding liability; 

WHEREAS, Arrow and Lightwave wish to settle the Amount Due for $371,021.81 on the terms and conditions set forth herein. 

AGREEMENT 

NOW THEREFORE, for good and valuable consideration between the parties, including the premises and undertakings recited herein, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

	
Incorporation of Recitals: The Recitals are incorporated herein and are hereby made a part of this Agreement. 

	
Lightwave’s Settlement Obligations: Lightwave agrees to and shall deliver to Arrow payment in the amount of $371,021.81 (the "Payment Sum") in full settlement and satisfaction of the Amount Due. The Payment Sum shall be distributed to Arrow by check or wire transfer within three (3) business days of the date hereof. 

	
Mutual Release and Waiver: Upon receipt of the Payment Sum by Arrow, each party hereto, for itself and each and all of its respective subsidiaries, affiliates, successors, and assigns, hereby unconditionally and absolutely releases and discharges the other, and each and all of their respective affiliates, successors, assigns, present and former representatives, agents, employees, attorneys, shareholders, officers, and directors of and from any and all claims, demands, debts, payments, liabilities, accounts, reckonings, obligations, costs, expenses, liens, actions, and causes of action, of every kind and nature whatsoever arising directly or indirectly out of the Amount Due or the transactions that gave rise thereto (collectively, "Claims") existing as of the date hereof (hereinafter collectively referred to as the "Released Matters"); provided , however , nothing in this Section 3 shall be deemed in any way release, waive, discharge or affect (i) Lightwave’s obligations to Arrow provided for in any other provision of this Agreement, or (ii) any claims or rights that Arrow may have against TriQuint Semiconductor, Inc., a manufacturer of transponder products ("TriQuint"). The release set forth in this Section 3 shall be effective as a full and final accord and satisfaction and general release of and from all Released Matters. Each party expressly represents to the other that this Agreement and the releases contained in this Section 3 have been freely and voluntarily entered into by it after careful review and consultation with its counsel. 

	
Dismissal: Within five (5) business days following the date of Arrow’s receipt of the Payment Sum, Arrow shall dismiss all complaints and actions against Digital and any of its affiliates with prejudice. The dismissal shall indicate that each party is to bear its own costs and expenses. 

	
TriQuint: Digital shall use commercially reasonable efforts to cooperate with Arrow in connection with Arrow’s prosecution of its currently pending claims against TriQuint. Arrow shall reimburse Digital for any costs and expenses of Digital associated with such cooperation. 

	
Entire Agreement: This Agreement contains the entire Agreement of the parties with respect to these matters (and solely with respect to these matters) and may not be modified in any way except by writing executed by the authorized representatives of each of the parties hereto. 

	
Authorization: The individual signatories to this Agreement represent that they have been duly authorized to execute this Agreement on behalf of the parties they purport to represent herein. 

	
Execution in Counterparts: This Agreement may be executed in any number of counterparts and by the parties hereto on separate counterparts, each of which counterparts, when so executed and delivered (including by facsimile transmission), shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same agreement. 

	
Binding Agreement: This Agreement will bind and inure to the benefit of each of the party’s respective predecessors, successors, trustees, receivers, guardians, executors, administrators, heirs, distributees, partners, directors, officers, employees, shareholders, agents, beneficiaries and assignees whether so expressed or not. The provisions of Section 3 of this Agreement shall, subject to the terms and provisions of this Agreement, also inure to the benefit of the persons and parties released therein who are not signatories to this Agreement. 

	
Governing Law: Except to the extent that federal law should provide otherwise, the terms, conditions and provisions of this Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida, without giving consideration to such state’s conflict of law provisions. 

	
Headings: The use in this Agreement of headings is for the convenience of reference only. Such headings are not and shall not be considered part of this Agreement nor shall such headings control the construction and interpretation of the terms and conditions hereof. 

IN WITNESS WHEREOF, each of the parties hereto have caused this instrument to be signed by themselves or their duly authorized agents as of the date set forth in the first paragraph of this Agreement. 

 

	DIGITAL LIGHTWAVE, INC.	ARROW ELECTRONICS, INC.
	 	 
	By: /s/ James R. Green	By: /s/ Wayne Brody
	 	 
	Its: Chief Executive Officer	Its: Vice President Legal AffairsDIGITAL LIGHTWAVE EXHIBIT 10.107

Exhibit 10.107

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNEC­TION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBU­TION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

SECURED PROMISSORY NOTE 

	$500,000.00 	
June 12, 2003

	 	
 Clearwater, Florida

For value received, Digital Lightwave, Inc., a Delaware corporation (the " Company "), promises to pay to Optel, LLC (the " Holder "), the principal sum of Five Hundred Thousand Dollars ($500,000.00). Interest shall accrue from the date of this Note on the unpaid principal amount at a rate equal to 10.0% per annum, compounded annually. This Note is subject to the following terms and conditions.

 

1.    Maturity . Principal and any accrued but unpaid interest under this Note shall be due and payable upon demand by the Holder at any time after July 31, 2004 (the " Maturity Date "). Notwithstanding the foregoing, the entire unpaid principal sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable immediately prior to the earlier to occur of (a) a Change of Control (as defined below), (b) the insolvency of the Company, (c) the commission of any act of bankruptcy by the Company, (d) the execution by the Company of a general assignment for the benefit of creditors, (e) the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition without dismissal for a period of 90 days or more, or (f) the appointment of a receiver or trustee to take possession of the property or assets of the Company. For purposes of this Note a "Change of Control" shall mean a sale of all or substantially all of the Company’s assets, or any merger or consolidation of the Company with or into another corporation; other than a merger or consolidation in which the holders of more than 50% of the shares of capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by the voting securities remaining outstanding or by their being converted into voting securities of the surviving entity) more than 50% of the total voting power represented by the voting securities of the Company, or such surviving entity, outstanding immediately after such transaction. 

2.    Payment; Prepayment . All payments shall be made in lawful money of the United States of America at such place as the Holder hereof may from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable and the remainder applied to principal. Prepayment of this Note may be made at any time without penalty. 

3.    Transfer; Successors and Assigns . The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. This Note may be transferred only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, a new note for the same principal amount and interest will be issued to, and registered in the name of, the transferee. Interest and principal are payable only to the registered holder of this Note. 

4.    Governing Law . This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Florida, without giving effect to principles of conflicts of law. 

5.    Notices . Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address or facsimile number as set forth below or as subsequently modified by written notice. 

6.    Amendments and Waivers . Any term of this Note may be amended only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 6 shall be binding upon the Company, each Holder and each transferee of any Note. 

8.     Officers and Directors Not Liable . In no event shall any, officer or director of the Company be liable for any amounts due or payable pursuant to this Note. 

9.    Security Interest . This Note is secured by all of the assets of the Company in accordance with a separate security agreement originally dated as of February 14, 2003 and amended and restated as of the date hereof (the " Security Agreement "), between the Company and the Holder. In case of an Event of Default (as defined in the Security Agreement), the Holder shall have the rights set forth in the Security Agreement. 

10.    Counterparts . This Note may be executed in any number of counterparts, each of which will be deemed to be an original and all of which together will constitute a single agreement. 

11.    Action to Collect on Note . If action is instituted to collect on this Note, the Company promises to pay all costs and expenses, including reasonable attorney’s fees, incurred in connection with such action. 

12.    Loss of Note . Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note or any Note exchanged for it, and indemnity satisfactory to the Company (in case of loss, theft or destruction) or surrender and cancellation of such Note (in the case of mutilation), the Company will make and deliver in lieu of such Note a new Note of like tenor.

 

This Note was entered into as of the date set forth above. 

 

	 	 COMPANY:
	 	 DIGITAL LIGHTWAVE, INC.
	 	 
	 	
 By: /s/ James R. Green

	 	

	 	
 Name: James R. Green

	
 
	
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 Title: CEO

	 	 
	 	 
	 	 AGREED TO AND ACCEPTED:
	 	 OPTEL CAPITAL, LLC
	 	 
	 	 By: /s/ Chris Phillips
	 	

	 	 Name: Chris Phillips
	 	
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	 	 Title: CFO

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