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Exhibit 10.1

EXECUTIVE AGREEMENT

This Agreement is made as of this
xx of xxx, 200x, by and between Tellabs,
Inc., a Delaware corporation (the Corporation) and
[       ] (the Executive).

WITNESSETH:

WHEREAS, the Corporation wishes to attract and retain well-qualified executive
and key personnel and to assure both itself and the Executive of continuity of
management in the event of any actual or threatened Change in Control (as
defined in Paragraph 2) or Change in Management (as defined in Paragraph 3) of
the Corporation; and

WHEREAS, to achieve this purpose, the Board of Directors of the Corporation
considered and approved this agreement to be entered into with the Executive as
being in the best interests of the Corporation and its shareholders;

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth
herein, the parties hereto agree as follows:



|1. |  | Operation of Agreement                                                                                                                                                                                                                                                                                                                                                                 
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | The effective date of this Agreement shall be the date on which the
first to occur of a Change in Control or Change in Management occurs, and this Agreement
shall not have any force or effect whatsoever prior to that
date. This Agreement shall supersede, in its entirety, any previously
existing Change in Control Employment Agreement between Executive and the
Corporation.
|  
|2. |  | Change in Control                                                                                                                                                                                                                                                                                                                                                                      

For the purposes of this Agreement, a Change in Control means the first of
the following events to occur:



| | (a) |  | Any person (as defined in Section 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the Exchange Act)),
excluding for this purpose, the Corporation or any subsidiary of the
Corporation, or any employee benefit plan of the Corporation or any
subsidiary of the Corporation, or any person or entity organized,
appointed or established by the Corporation for or pursuant to the
terms of any such plan which acquires beneficial ownership of voting
securities of the Corporation, is or becomes the beneficial owner
(as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly of securities of the Corporation representing 20% or more
of the combined voting power of the Corporations then outstanding
securities; provided, however, that no Change in
Control will be deemed to have occurred as a result of a change in
ownership percentage resulting solely from an acquisition of
securities by the Corporation; and provided further that no Change in
Control will be deemed to have occurred if a person inadvertently
acquires an ownership interest of 20% or more but then promptly
reduces that ownership interest below 20%;
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | During any two consecutive years, individuals who at the
beginning of such two-year period constitute the Board and any new
director (except for a director designated by a person who has
entered into an agreement with the Corporation to effect a
transaction described elsewhere in this definition of Change in
Control) whose election by the Board or nomination for election by
the Corporations stockholders was approved by a vote of at least
two-thirds of the directors then still in office who either were
directors at the beginning of the period or whose election or
nomination for election was previously so approved (such individuals
and any such new director, the Incumbent Board) cease for any
reason to constitute at least a majority of the Board;                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (c) |  | Consummation of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets
of the Corporation (a Business Combination), in each case, unless,
following such Business Combination,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i) |  | all or substantially all of the individuals and
entities who were the beneficial owners of outstanding voting
securities of the Corporation immediately prior to such Business
Combination beneficially own, directly or indirectly, more than
50% of the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from
such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the
Corporation or all or substantially all of the Corporations
assets either directly or through one or more subsidiaries) (the
Resulting Corporation) in substantially the same proportions
as their ownership, immediately prior to such Business
Combination of the outstanding voting securities of the
Corporation;





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|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(ii)  |  | no person (as defined in Section 13(d) and 14(d) of
the Exchange Act)(other than the Corporation, the Resulting
Corporation or any employee benefit plan (or related trust) of
the Corporation or such Resulting Corporation) beneficially
owns, directly or indirectly, 20% or more of, respectively, the
then combined voting power of the then outstanding voting
securities of the Resulting Corporation, except to the extent
that such ownership resulted solely from ownership of securities
of the Corporation prior to the Business Combination; and
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(iii) |  | at least a majority of the members of the board of
directors of the Resulting Corporation were members of the
Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such
Business Combination;                                                                                                                                                                                                                                                                                                 



| | (d) |  | Approval by the stockholders of the Corporation of a complete
liquidation or dissolution of the Corporation; or                                                                                                                                                                                                      
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (e) |  | A tender offer (for which a filing has been made with the
Securities and Exchange Commission SEC) which purports to comply
with the requirements of Section 14(d) of the Securities Exchange Act
of 1934 and the corresponding SEC rules) is made for the stock of the
Corporation, and then the first to occur of:

|     |  |                                                                                                                                                                                                                                                                                                          
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  |  | Any time during the offer when the person making the
offer owns or has accepted for payment stock of the Corporation
with 25% or more of the total voting power of the Corporations
securities, or                                                                                                      
|     |  |                                                                                                                                                                                                                                                                                                          
|(ii) |  | Three business days before the offer is to terminate
unless the offer is withdrawn first if the person making the
offer could own, by the terms of the offer plus any shares owned
by the person, stock with 50% or more of total voting power of
the Corporations securities when the offer terminates.



|3. |  | Change in Management
|-- |  | --------------------

For purposes of this Agreement, a Change in Management shall occur in the
event that (a) Michael J. Birck is not for any reason the Chief Executive
Officer of the Corporation, or (b) if a Business Combination which is not a
Change in Control shall occur, Michael J. Birck is not for any reason the Chief
Executive Officer of the Resulting Corporation.



|4. |  | Employment
|-- |  | ----------

The Corporation hereby agrees to continue the Executive in its employ and/or
the employ of one or more of its subsidiaries and the Executive hereby agrees
to remain in the employ of the Corporation and/or such subsidiaries, for the
period commencing on the effective date of this Agreement and ending on the
second anniversary of such date (the employment period), to exercise such
authority and perform such executive duties as are commensurate with the
authority being exercised and duties being performed by
the Executive immediately prior to the effective date of this Agreement, which
services shall be performed at a location within the metropolitan area in which
the Executive was employed immediately prior to the effective date of this
Agreement or such other location as the Corporation may reasonably request.
The Executive agrees that during the employment period he/she shall devote
his/her full business time exclusively to his/her executive duties and shall
perform such duties faithfully and efficiently.



|5. |  | Compensation, Compensation Plans, Benefits and Perquisites                  
|-- |  | ----------------------------------------------------------------------------
|  
|   |  | During the employment period, the Executive shall be compensated as
follows:



| | (a) |  | He/she shall receive an annual salary at a rate which is not
less than his/her rate of annual salary immediately prior to the
effective date of this Agreement, with the opportunity for increases
from time to time thereafter which are in accordance with the
Corporations regular practices; provided, however, that such annual
salary shall be subject to reduction to the extent there is a general
reduction in the base salaries of executives with comparable duties.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | He/she shall be eligible to participate on a reasonable basis
in the Corporations stock option plans, the annual incentive bonus
program and any other bonus and incentive compensation plans (whether
now or hereinafter in effect) in which executives with comparable
duties are eligible to participate, which plans must provide                                                                                                                                          





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| |     |  | opportunities to receive compensation which are at least as great as
the opportunities under the plans in which the Executive was
participating immediately prior to the effective date of this
Agreement.                                                                                                                                                                                                                                                                                                                                 
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | He/she shall be entitled to receive employee benefits and
perquisites which are the greater of the employee benefits and
perquisites provided by the Corporation to executives with comparable
duties or the employee benefits and perquisites to which he/she was
entitled immediately prior to the effective date of this Agreement.
Such benefits and perquisites shall include, but not be limited to,
the benefits and perquisites included under the Tellabs Advantage
Program, and the Tellabs, Inc. Employee Welfare Benefits Plan.



|6. |  | Termination Following Change in Control or Change in Management
|-- |  | ---------------------------------------------------------------



| | (a) |  | For purposes of this Agreement, the term termination shall
mean (i) termination by the Corporation of the employment of the
Executive with the Corporation and all of its subsidiaries for any
reason other than death, disability or cause (as defined below), or
(ii) resignation of the Executive for good reason (as defined
below).
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The term good reason shall mean:                                                                                                                                                                                                                                                                                                            

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i) the material reduction or material adverse modification of
Executives authority or duties, such as a substantial diminution or
adverse modification in Executives title, status, or
responsibilities;                                                                                                                                                                                                                
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (ii) any reduction in Executives Base Salary (other than as may be
permitted under Paragraph 5(a));                                                                                                                                                                                                                                                                                                                       
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (iii) any failure to provide to Executive the opportunities to
receive compensation as required to be provided under Paragraph 5(b);                                                                                                                                                                                                                                                                                       
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (iv) any failure to pay or provide the benefits and perquisites
required to be provided under Paragraph 5(c);                                                                                                                                                                                                                                                                                                              
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (v) any requirement that Executive relocate his principal place of
employment by more than a 50-mile radius from its location
immediately prior to the effective date of this Agreement, excluding,
if a Change in Control has not occurred, a move to the Corporations
headquarters, or if the Executives position is that of a functional
head for a region or a division, the headquarters of such region or
division;
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (vi) any material breach of this Agreement by the Corporation; or                                                                                                                                                                                                                                                                                                                                                          
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (vii) if a Change in Control has occurred, a reasonable determination
by the Executive that, as a result of a Change in Control and a
change in circumstances thereafter significantly affecting his/her
position, he/she is unable to exercise the authorities, powers,
function or duties attached to his/her position and contemplated by
Paragraph 4 of the Agreement.                                                 
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Notwithstanding the foregoing, any of the circumstances described in
this Paragraph 6(b) may not serve as a basis for resignation for
good reason by Executive unless the Executive has provided written
notice to the Corporation that such circumstance exists and the
Corporation has failed to cure such circumstance within 15 days
following such notice.                                                          



| | (c) |  | The term cause means (i) the willful and continued failure by
the Executive to substantially perform his/her duties with the
Corporation and/or, if applicable, one or more of its subsidiaries
(other than any such failure resulting from his/her incapacity due to
physical or mental illness) after a demand for substantial
performance is delivered to him/her by the Board of Directors of the
Corporation which specifically identifies the manner in which the
Board believes the Executive has not substantially performed his/her
duties, (ii) the willful engaging by the Executive in gross
misconduct materially and demonstrably injurious to the property or
business of the Corporation or any of its subsidiaries, or (iii)
fraud, misappropriation or commission of a felony. For purposes of
this paragraph, no act or failure to act on the Executives part will
be considered willful unless done, or omitted to be done, by
him/her in bad faith and without reasonable belief that his/her
action or omission was in the interests of the Corporation or not
opposed to the interests of the Corporation.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|7. |  | Confidentiality                                                                                                                                                                                                                                                                             
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | The Executive agrees that during and after the employment period, he/she
shall retain in confidence any confidential information known to him/her
concerning the Corporation and its subsidiaries and their respective
businesses for as long as such information is not publicly disclosed.





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|8. |  | No Obligation to Mitigate Damages                                                                                                                                                                                                                                                                      
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | The Executive shall not be obligated to seek other employment in
mitigation of amounts payable or arrangements made under the provisions of
this Agreement and the obtaining of any such other employment shall in no
event effect any reduction of the Corporations obligations under this
Agreement.
|  
|9. |  | Severance Allowance                                                                                                                                                                                                                                                                                    



| | (a) |  | In the event of termination of the Executive during the
employment period, the Executive shall be entitled to receive a lump
sum severance allowance within five days of such termination, in an
amount which is equal to the sum of the following:
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  |  | The amount equivalent to salary payments for 24 (12,
if a Change in Control has not occurred) calendar months, at the
rate required by Paragraph 5(a) and in effect immediately prior
to termination (or, if greater, at the highest rate in effect
under Paragraph 5(a) at any time during the period commencing on
the effective date of this Agreement and ending on the
termination date), plus a pro rata share of the estimated amount
of any bonus which would have been payable for the bonus period
which includes the termination date; and
|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|(ii) |  | In the event of a Change in Control the amount
equivalent to 24 calendar months of bonus at the target rate for
the year which includes his/her termination date.                                                                                                                                                                                                                                                                                                                                                                                    



| | (b) |  | In addition to such amount under Paragraph 9(a) above, the
Executive shall also receive in cash the value of the incentive
compensation (including, but not limited to, employer contributions
to the Tellabs Advantage Program and the right to receive stock
awards and to exercise stock options and other bonus and similar
incentive compensation benefits) to which he/she would have been
entitled under all incentive compensation plans maintained by the
Corporation if he/she had remained in the employ of the Corporation
for 24 (12, if a Change in Control has not occurred) months after
such termination. The amount of such payment shall be determined as
of the date of termination and shall be paid as promptly as
practicable and in no event later than 30 days after such
termination.                                                                                                                                                                                                                                                                     
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | The Corporation shall maintain in full force and effect for the
Executives continued benefit (and, to the extent applicable, the
continued benefit of his dependents) all of the employee benefits
(including, but not limited to, coverage under any medical and
insurance plans, programs or arrangements) to which he/she would have
been entitled under all employee benefit plans, programs or
arrangements maintained by the Corporation if he/she had remained in
the employ of the Corporation for 24 (12, if a Change in Control has
not occurred) calendar months after his/her termination, or if such
continuation is not possible under the terms and provisions of such
plans, programs or arrangements, the Corporation shall arrange to
provide benefits substantially similar to those which the Executive
(and, to the extent applicable, his/her dependents) would have been
entitled to receive if the Executive had remained a participant in
such plans, programs or arrangements for such 24-month (or, if
applicable, 12-month) period, as the case may be.



|10. |  | Adjustments in Case of
Excess Parachute Payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    |  | If any payments or benefits received or to be received by the Executive in
connection with the Executives employment (whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement with the
Corporation, or any person affiliated with the Corporation) (the
Payments), will be subject to the tax (the Excise Tax) imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended (the Code)
(or any similar tax that may hereafter be imposed), the Corporation shall
pay at the time specified below, an additional amount (the Gross-Up
Payment) such that the net amount
retained by the Executive, after deduction of any Excise Tax on the
Payments and any federal, state and local income or other applicable tax
and Excise Tax upon the payment provided for by this paragraph, shall be
equal to the Payments. For purposes of determining the amount of the
Gross-Up Payment, the Executive shall be deemed to pay federal income
taxes at the Executives highest marginal rate of federal income taxation
in the calendar year in which the Gross-Up Payment is to be made and state
and local income taxes at the Executives highest marginal rate of
taxation in the state and locality of the Executives residence on the
date on which the Excise Tax is determined, net of the maximum reduction
in federal income





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|    |  | taxes which could be obtained from deduction of such
state and local taxes. The computations required by this paragraph shall
be made by the independent public accountants not then regularly retained
by the Corporation, in consultation with tax counsel selected by them and
acceptable to the Executive. The Corporation shall provide the Executive
with sufficient tax and compensation data to enable the Executive or
his/her tax advisor to verify such computations and shall reimburse the
Executive for reasonable fees and expenses incurred with respect thereto.
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder, the Executive shall repay to
the Corporation at the time that the amount of such reduction in Excise
Tax is finally determined the portion of the Gross-Up Payment attributable
to such reduction (plus the portion of the Gross-Up Payment attributable
to the Excise Tax and federal and state and local income tax imposed on
the Gross-Up Payment being repaid by the Executive) plus interest on the
amount of such repayment from the date the Gross-Up Payment was initially
made to the date of repayment at the rate provided in Section
1274(b)(2)(B) of the Code (the Applicable Rate). In the event that the
Excise Tax is determined by the Internal Revenue Service or by such
independent public accountants to exceed the amount taken into account
hereunder (including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-Up Payment), the
Corporation shall make an additional Gross-Up Payment in respect of such
excess (plus any interest, penalties, fines or additions to tax payable
with respect to such excess) at the time that the amount of such excess if
finally determined. Any payment to be made under this paragraph shall be
payable within five (5) days of the determination of the accountants that
such a payment is required hereunder and, if applicable, within five (5)
days of such determination that the Excise Tax is greater or less than
initially calculated but, in no event, later than thirty (30) days after
the Executives receipt of the Payments resulting in such Excise Tax.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|11. |  | Interest; Indemnification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               



| | (a) |  | In the event any payment to Executive under this Agreement is
not paid within five business days after it is due, such payment
shall thereafter bear interest at the prime rate from time to time as
published in The Wall Street Journal, Midwest Edition.                                                                                                
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The Corporation hereby indemnifies the Executive for all legal
fees and expenses incurred by Executive in contesting any action of
the Corporation with respect to this Agreement, including the
termination of Executives employment hereunder, or incurred by
Executive in seeking to obtain or enforce any right or benefit
provided by this Agreement.



|12. |  | Notices
|--- |  | -------

Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and if sent by registered or
certified mail to the Executive at the last address he/she has filed in writing
with the Corporation or, in the case of the Corporation, at its principal
executive offices.





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|13.                                                                                                                                                                                                                                               |  | Arbitration of Disputes and Reimbursements of Legal Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                  |  | Any controversy or claim arising out of or relating to this Agreement (or the
breach thereof) shall be settled by final, binding and non-appealable
arbitration in Chicago, Illinois by three arbitrators. Subject to the
following provisions, the arbitration shall be conducted in accordance with
the rules of the American Arbitration Association (the Association) then in
effect. One of the arbitrators shall be appointed by the Corporation, one
shall be appointed by the Executive, and the third shall be appointed by the
first two arbitrators. If the first two arbitrators cannot agree on the
third arbitrator within 30 days of the appointment of the second arbitrator,
then the third arbitrator shall be appointed by the Association and shall be
experienced in the resolution of disputes under employment agreements for
executives of major corporations. Any award entered by the arbitrators shall
be final, binding and non-appealable and judgment may be entered thereon by
either party in accordance with applicable law in any court of competent
jurisdiction. This arbitration provision shall be specifically enforceable.
The arbitrators shall have no authority to modify any provision of this
Agreement or to award a remedy for a dispute involving this Agreement other
than a benefit specifically provided under or by virtue of the Agreement. If
the Executive prevails on any material issue which is the subject of such
arbitration or lawsuit, the Corporation shall be responsible for all of the
fees of the American Arbitration Association and the arbitrators and any
expenses relating to the conduct of the arbitration (including the
Corporations and the Executives reasonable attorneys fees and expenses).
Otherwise, each party shall be responsible for its own expenses relating to
the conduct of the arbitration (including reasonable attorneys fees and
expenses) and shall share the fees of the American Arbitration Association
equally.
|                                                                                                                                                                                                                                                 
|14.                                                                                                                                                                                                                                               |  | Non-Alienation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                  |  | The Executive shall not have any right to pledge, hypothecate, anticipate
or in any way create a lien upon any amounts provided under this
Agreement; and no benefits payable hereunder shall be assignable in
anticipation of payment either by voluntary or involuntary acts, or by
operation of law, except by will or the laws of descent and distribution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                 
|15.                                                                                                                                                                                                                                               |  | Governing Law                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                  |  | The provisions of this Agreement shall be construed in accordance with the
laws of the State of Illinois.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                 
|16.                                                                                                                                                                                                                                               |  | Amendment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                  |  | This Agreement may be amended or canceled by mutual agreement of the
parties in writing without the consent of any other person and, so long as
the Executive lives, no person, other than the parties hereto, shall have
any rights under or interest in this Agreement or the subject matter
hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                 
|17.                                                                                                                                                                                                                                               |  | Successor to the Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                  |  | This Agreement shall be binding upon and inure to the benefit of the
Corporation and the Executive and their respective successors, heirs (in
the case of the Executive) and assigns (subject, in the case of the
Executive, to Paragraph 14 above) and any successor of the Corporation.
The Corporation shall require any successor to expressly assume the
liabilities, obligations and duties of the Corporation hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                 
|18.                                                                                                                                                                                                                                               |  | Severability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                 
|In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, the remaining
provisions of this Agreement shall be unaffected thereby and shall remain in
full force and effect.





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IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to
the authorization from its Board of Directors, the Corporation has caused this
Agreement to be executed in its name on its behalf, and its corporate seal to
be hereunto affixed and attested by its Secretary, all as of the day and year
first above written.

| |                                       |                        
| | ------------------------------------- | -----------------------
| |                                      
| | Executive                            
| |                                       |                        
| | TELLABS, INC.,
a Delaware corporation
| |                                       |                        
| | By:                                   |                        
| |                                       |                        
| |                                       | Chief Executive Officer

ATTEST:

Secretary

(Seal)