Kenilworth Public Schools will pay Thomas Tramaglini's full salary until he officially resigns at the end of September, according to a separation agreement signed in July.
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He'll also get two months severance pay and more than $20,000 for unused vacation days.
The district also won't contest Tramaglini's unemployment application.
Police said staff members who had been monitoring surveillance video to see who was leaving human feces at Holmdel High School spotted Tramaglini in April.
He was charged with public defecation, lewdness and littering. No motive has been disclosed.
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."
Adams also said Tramaglini plans to sue Holmdel police over the mug shot taken after his arrest.
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He argues Tramaglini should not have been photographed at police headquarters because his charges are low-level offenses.
A janitor has since taped over the original footage that allegedly captured Tramaglini, according to Adams.
He said during a court hearing Monday that was akin to police using a hose to wash down "a bloody murder scene" before it is processed.
Prosecutors said police saved the pertinent video footage.
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