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UNITED STATES SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL
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- -------- Washington, D.C. 20549 OMB Number 3235-0287
FORM 4 Expires: December 31, 2001
- -------- STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Estimated average burden
hours per response. . . .0.5
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[ ] Check this box if no Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the
longer subject to Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
Section 16. Form 4 or
Form 5 obligations
may continue.
See Instruction 1(b).
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1. Name and Address of Reporting | 2. Issuer Name and Ticker or | 6. Relationship of Reporting Person(s) to Issuer
Person* | Trading Symbol | (Check all applicable)
| |
| | [X] Director [X] 10% Owner
Zwan Bryan J. | Digital Lightwave, Inc. (Nasdaq NM:DIGL) | [ ] Officer (give [ ] Other (specify
- ------------------------------------------------------------------------------| title below) below)
(Last) (First) (Middle) | 3. IRS or Social Security| 4. Statement for |
c/o Orrick, Herrington & | Number of Reporting | Month/Year | Senior Vice President, Business
Sutcliffe LLP | Person (Voluntary) | | Affair
Attn: Robert E. Freitas, Esq. | | 5/00 | ----------------------------------------
1020 Marsh Road | |-----------------------------------------------------------------------
- -------------------------------| | 5.If Amendment, | 7. Individual or Joint/Group Filing
(Street) | | Date of Original| (Check Applicable Line)
| | (Month/Year) | [ ] Form filed by One Reporting Person
Menlo Park California 94025 | | | [X] Filed by More than One Reporting Person
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(City) (State) Zip) | Table 1 - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
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1. Title of Security | 2. Trans-| 3. Trans- | 4. Securities Acquired | 5. Amount of | 6. Owner- |7. Nature
(Instr. 3) | action| action | (A) or Disposed of (D)| Securities | ship | of In-
| Date | Code | (Instr.3, 4 and 5) | Beneficially| Form: | direct
| (Month/| (Instr. 8)| | Owned at | Direct | Beneficial
| Day/ |-----------------------------------------| End of Month| (D) or | Owner-
| Year) | | | | (A) or | | | Indirect | ship
| | Code | V | Amount | (D) | Price| (Instr.3 | (I) |
| | | | | | | and 4) | (Instr.4)| (Instr.4)
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Common Stock | 5/11/00 | J(1) | | 475,000 | D(1) | (1) | | |
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Common Stock | | | | | | | 12,601,750 | I | (2)
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Common Stock | | | | | | | 2,840,000 | I | (3)
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Common Stock | | | | | | | 2,000,000 | D |
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Common Stock | | | | | | | 1,000,000 | D(4) |
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
*If the form is filed by more than oine reporting person, see Instruction 4(b)(v).
Notes (1)-(4) appear on page 3 of this Form 4. Page 1 of 4
(Over)
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FORM 4 (continued) Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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1.Title of |2.Conver- |3.Transac-|4.Transac-|5.Number |6. Date Exer-|7.Title and |8.Price |9.Number |10.Owner- |11.Nature
Derivative | sion or | tion | tion | of Der- | cisable | Amount of | of | of Deriv-| ship | of
Security | Exercise| Date | Code | ivative | and Exp- | Underlying | Deriv-| ative | Form of | Indirect
(Instr. 3) | Price of| | (Instr.8)| Securi- | iration | Securities | ative | Secur- | Deriv- | Benefi-
| Deriv- | (Month/ | | ities | Date | (Instr.3 | Secur-| ities | ative | cial
| ative | Day/ | | Acquired | (Month/ | and 4) | ity | Bene- | Security:| Owner-
| Security| Year) | | (A) or | Day/Year) | | (Instr.| ficially | Direct | ship
| | | | Disposed | | | 5) | Owned | (D) or | (Instr.4)
| | | | of(D) |-----------------------------| | at End | Indirect |
| | | | (Instr.3,|Date |Expir|Title|Amount or| | of | (I) |
| | | | 4 and 5):|Exer- |ation| |Number of| | Month | (Instr.4)|
| | |----------------------|cisable|Date | |Shares | | (Instr.4) | |
| | | Code | V | (A) | (D) | | | | | | | |
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/s/ Bryan J. Zwan June 12, 2000
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**Signature of Reporting Person Date
Explanation of Responses:
**Intentional misstatements or omissions of facts constitute
Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
Page 2 of 4
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NOTES
(1) On May 11, 2000, ZG Nevada Limited Partnership ("ZG Partnership") entered into a binding term sheet outlining the terms
of, and which obligated ZG Partnership to enter into forward sale arrangements with respect to up to 1,000,000 shares of
Common Stock. Dr. Bryan J. Zwan ("Zwan") is the sole shareholder and executive officer of ZG Nevada, Inc., the sole General
Partner of ZG Partnership. Zwan is also the sole limited partner of ZG Partnership. It is anticipated that on or about
June 13, 2000, ZG Partnership will enter into a forward sale agreement ("Agreement IV") relating to up to 475,000 shares
(the "Base Amount") of Common Stock. ZG Partnership's obligation to enter into forward sale arrangements with respect to an
additional 525,000 shares has terminated. Agreement IV provides that ZG Partnership will deliver on the fourth anniversary
of the execution of Agreement IV (the "Maturity Date") a number of shares of Common Stock (or, at the option of ZG Partnership,
the cash equivalent of such shares) equal to the product of (i) the Base Amount and (ii) the Exchange Rate, which will be
determined as follows:
(a) If the average closing price (the "Maturity Price") of the Common Stock on the 20 trading days beginning 30 trading days
prior to the Maturity Date is less than or equal to $64.5697 (the "Issue Price"), the
Exchange Rate will be one;
(b) If the Maturity Price is greater than the Issue Price but less than $77.4837 (the "Threshold Price"), the Exchange Rate will
be equal to the Issue Price divided by the Maturity Price; and
(c) If the Maturity Price is equal to or greater than the Threshold Price, the Exchange Rate will be .8333.
In consideration therefor, ZG Partnership will receive a purchase price of $24,094,001.
(2) These 12,601,750 shares of Common Stock were owned by ZG Partnership as of the end of May, 2000.
(3) Upon execution of Agreement IV, 2,840,000 shares of Common Stock beneficially owned by ZG Partnership will be subject to
forward sale agreements, of which 475,000 shares will be subject to Agreement IV. See note (1). The remaining 2,365,000
shares are subject to forward sale agreements which were previously reported on the Reporting Person's Form 4 for the month
ending February, 2000.
(4) On December 8, 1999, Zwan entered into a forward sale agreement (the "Zwan Agreement") relating to up to 1,000,000
shares (the "Base Amount") of Common Stock. The Zwan Agreement provides that Zwan will deliver on December 8, 2004 (the
"Maturity Date") a number of shares of Common Stock (or, at the option of Zwan, the cash equivalent of such shares) equal to
the product of (i) the Base Amount and (ii) the Exchange Rate, which will be determined as follows:
(a) If the average closing price (the "Maturity Price") of the Common Stock on the 20 trading days beginning 30 trading days
prior to the Maturity Date is less than or equal to $31.5505 (the "Issue Price"), the Exchange
Rate will be one;
(b) If the Maturity Price is greater than the Issue Price but less than $37.8606 (the "Threshold Price"), the Exchange Rate will
be equal to the Issue Price divided by the Maturity Price; and
(c) If the Maturity Price is equal to or greater than the Threshold Price, the Exchange Rate will be .8333.
In consideration therefor, Zwan received a purchase price of $23,790,580.
Designated Filer : Bryan J. Zwan
Issuer Name and Trading Symbol : Digital Lightwave, Inc. (Nasdaq NM: DIGL)
Statement for Month/Year : 5/00
Page 3 of 4
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Additional Reporting Persons
ZG Nevada Limited Partnership
Suite 850
101 Convention Center Drive
Las Vegas, Nevada 89019
IRS No.: 88-0358571
ZG Nevada Limited Partnership Dated: June 12, 2000
By: ZG Nevada, Inc.,
as General Partner
By: /s/ Bryan J. Zwan
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Name: Bryan J. Zwan
Title: President
ZG Nevada, Inc.
Suite 850
101 Convention Center Drive
Las Vegas, Nevada 89109
IRS No.: 88-0355430
ZG Nevada, Inc. Dated: June 12, 2000
By: /s/ Bryan J. Zwan
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Name: Bryan J. Zwan
Title: President
Designated Filer : Bryan J. Zwan
Issuer Name and Trading Symbol : Digital Lightwave, Inc. (Nasdaq NM: DIGL)
Statement for Month/Year : 5/00
Page 4 of 4
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