TELLABS, INC. 

DEFERRED INCOME PLAN

 

 

Effective as of September 2, 2001

 

 

 

TABLE OF CONTENTS
 Page
**Purpose**1**ARTICLE I****Definitions**1**ARTICLE 2****Selection, Enrollment, Eligibility**8         2.1Selection by Committee8         2.2Enrollment Requirements8         2.3Eligibility; Commencement of Participation8         2.4Termination of Participation and/or Deferrals8**ARTICLE 3****Deferral Commitments/Credit to Accounts/Vesting/Measurement Funds/Taxes**9         3.1Minimum Deferrals9         3.2Maximum Deferrals9         3.3Election to Defer; Effect of Election Form10         3.4Withholding of Annual Deferral Amounts11         3.5Annual Company Contribution Amount11         3.6Annual Restricted Stock Amount11         3.7Annual Restoration Contribution Amount11         3.8Annual Stock Option Gain Amount12         3.9Annual Vacation Rollover Contribution Amount12         3.10Investment of Trust Assets12         3.11Sources of Stock13         3.12Vesting13         3.13Crediting/Debiting of Account Balances13         3.14FICA and Other Taxes15         3.15Distributions16**ARTICLE 4****In-Service Benefits; Unforeseeable Financial Emergencies; Withdrawal Election**16         4.1In-Service Benefit16         4.2Payment of In-Service Benefit16         4.3Other Benefits Take Precedence Over In-Service16         4.4Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies16         4.5Withdrawal Election17**ARTICLE 5****Retirement Benefit**17         5.1Retirement Benefit17         5.2Payment of Retirement Benefit17         5.3Settlement in Stock18         5.4Death Prior to Completion of Retirement Benefit18**ARTICLE 6****Pre-Retirement Survivor Benefit**18         6.1Pre-Retirement Survivor Benefit18**ARTICLE 7****Termination Benefit**18         7.1Termination Benefit18         7.2Payment of Termination Benefit18**ARTICLE 8****Disability Waiver and Benefit**18         8.1Disability Waiver18         8.2Disability Benefit; Continued Eligibility19**ARTICLE 9****Beneficiary Designation**19         9.1Beneficiary19         9.3Acknowledgement19         9.4No Beneficiary Designation19         9.5Doubt as to Beneficiary19         9.6Discharge of Obligations19**ARTICLE 10****Leave of Absence**20         10.1Paid Leave of Absence20         10.1Unpaid Leave of Absence20**ARTICLE 11****Termination, Amendment or Modification**20         11.1Termination20         11.2Amendment21         11.3Effect of Change in Control21         11.4Plan Agreement21         11.5Effect of Payment21**ARTICLE 12****Administration**22         12.1Committee Duties22         12.3Agents22         12.4Binding Effect of Decisions22         12.5Indemnity of Committee22         12.6Employer Information22**ARTICLE 13****Other Benefits and Agreements**22         13.1Coordination with Other Benefits22**ARTICLE 14****Claims Procedures**23         14.1Presentation of Claim23         14.2Notification of Decision23         14.3Review of a Denied Claim23         14.4Decision of Review23         14.5Legal Action24**ARTICLE 15****Trust**24         15.1Establishment of the Trust24         15.2Interrelationship of the Plan and the Trust24         15.3Distributions From the Trust24**ARTICLE 16****Miscellaneous**24         16.1Status of Plan24         16.2Unsecured General Creditor24         16.3Employer’s Liability24         16.4Nonassignability25         16.5Not a Contract of Employment25         16.6Furnishing Information25         16.7Terms25         16.8Captions25         16.9Governing Law25         16.10Notice25         16.11Successors26         16.12Spouse’s Interest26         16.13Validity26         16.14Incompetent26         16.15Court Order24         16.16Distribution in the Event of Taxation26         16.17Insurance27         16.18Legal Fees To Enforce Rights After Change in Control27
**TELLABS DEFERRED INCOME PLAN

Effective as of September 2, 2001

Purpose

The purpose of this Plan is to provide specified benefits to a select group of management and highly compensated Employees and Directors who contribute materially to the continued growth, development and future business success of Tellabs, Inc., a Delaware corporation, its subsidiary, Tellabs Operations, Inc., and its other subsidiaries, if any, that sponsor this Plan.  This Plan shall be unfunded for tax purposes and for other purposes of Title I of ERISA.  This Plan shall supersede in its entirety the Tellabs Operations, Inc. Deferred Income Plan, dated April 1, 1992, as amended.  Any and all balances accrued by a Participant under such predecessor plan shall be subject to the terms and conditions of this Plan and shall be referred to as the “Initial Account Balances.”
**ARTICLE 1****