A separation agreement between Kenilworth Public Schools and Thomas Tramaglini shows the district will pay his full salary until he officially resigns at the end of September. He will receive two months severance pay and $20,000 for unused vacation days.
The district also won't contest Tramaglini's unemployment application under the agreement.
His arrest followed weeks of employees finding feces on a "daily basis" near or on the Holmdel High School football field and track.
Tramaglini, who was dubbed the "pooperintendent", was charged with public defecation, lewdness and littering. No motive has been disclosed. Tramaglini's lawyer argued that the high school's resource officer and Holmdel Police Patrolman Jonathan Martin improperly handled the evidence.
Tramaglini's attorney Matthew Adams said his client plans to fight the allegations, and his resignation should not "be construed as an acknowledgment of guilt".
"Holmdel Township Police Department unlawfully took Dr. Tramaglini's photograph and distributed and disseminated the "mug shot" to third parties, including the media, with the intent to harm Dr. Tramaglini", reads a court document for the lawsuit.