Document:

Exhibit 10.25

 Exhibit 10.25 

GLOBAL DEFENSE TECHNOLOGY & SYSTEMS, INC. 

AMENDED AND RESTATED 

SPECIAL SECURITY AGREEMENT 

 GLOBAL DEFENSE TECHNOLOGY & SYSTEMS, INC. 

AMENDED AND RESTATED SPECIAL SECURITY AGREEMENT 

This Amended and Restated Special Security Agreement (the “Agreement”) is made this
22nd day of February, 2010, by and between Global
Strategies Group Holding SA, a Luxembourg company (“GSGH”); Kende Holding Vagyonkezelo kft, a Hungarian company (“Kende”); Contego Systems LLC, a Delaware limited liability company (“Contego”); Global Defense
Technology & Systems, Inc., a Delaware corporation (the “Corporation”); and the United States Department of Defense (DoD), all of the above collectively the “Parties”. This Agreement shall become effective
(“Effective Date”) on the later of 1) the date on which the registration statement on Form S-1 (File No. 333-161719) of the Corporation is declared effective by the Securities and Exchange Commission, or 2) the date on which the
Defense Security Service (“DSS”) signs the Agreement. 
 RECITALS 

WHEREAS, the Corporation is duly organized and existing under the laws of the State of Delaware and has an authorized capital of
100,000,000 shares, consisting of 90,000,000 shares of Common Stock, par value $0.01 per share, and 10,000,000 shares of Preferred Stock, par value $0.01 per share, and of which 9,036,432 shares of Common Stock are issued and outstanding; and

 WHEREAS, GSGH owns 100 percent of the outstanding voting interests of Kende, .002 percent of which is owned indirectly
via a holding company; and 
 WHEREAS, Kende owns all the outstanding voting interests of Contego; and 

WHEREAS, immediately prior to the Effective Date, Contego owns approximately 88 percent of the issued and outstanding shares of
the Corporation; and 
 WHEREAS, immediately following the closing of the Corporation’s initial public offering of
its Common Stock, which is expected to occur shortly following the Effective Date, Contego will own approximately 40% of the issued and outstanding shares and voting interest of the Corporation with the remaining 60% owned by other public
shareholders (collectively, the “Shareholders”); and 
 WHEREAS, the Corporation’s
business consists of providing, directly or through subsidiaries, defense and defense related items for various Departments and
Agencies1 of the 

United States Government, including, without limitation, the DoD, and require the Corporation to have a facility security clearance; and

  
  

	1
	 The Office of the Secretary of Defense (including all boards, councils, staffs, and commands), DoD agencies, and the Departments of Army, Navy, and Air
Force (including all of their activities); Department of Commerce, General Services Administration, Department of State, Small Business Administration, National Science Foundation, Department of the Treasury, Department of Transportation, Department
of the Interior, Department of Agriculture, Department of Labor, Environmental Protection Agency, Department of Justice, Federal Reserve System, Government Accountability Office, United States Trade Representative, United States International Trade
Commission, United States Agency for International Development, National Aeronautics and Space Administration, Nuclear Regulatory Commission, Department of Education, Department of Health and Human Services, Department of Homeland Security and
Federal Communications Commission (the “User Agencies”). 

  

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 WHEREAS, the offices of the Corporation and, possibly, its wholly
owned subsidiaries, require facility security clearances2
issued under the National Industrial Security Program (“NISP”) and the NISP requires that a corporation maintaining a facility security clearance be effectively insulated from foreign ownership, control or influence (“FOCI”); and

 WHEREAS, the Under Secretary of Defense for Intelligence has determined that the provisions of this Agreement are
necessary to enable the United States to protect itself against the unauthorized disclosure of information relating to the national security; and 

WHEREAS, the DoD has agreed to grant or continue the facility security clearance(s) of the Corporation and its
wholly owned subsidiaries from and after the Effective Date of this Agreement in consideration of, inter alia, the Parties’ execution and compliance with the provisions of the Agreement, the purpose of which is to reasonably and effectively
deny GSGH and all entities (other than the Corporation and its wholly owned subsidiaries) that GSGH either controls, or is controlled by, hereinafter sometimes referred to collectively, including GSGH, as the “Affiliates,” from
unauthorized access to classified3 and controlled
unclassified information4 and influence over the
Corporation’s business or management in a manner which could result in the compromise of classified information or could adversely affect the performance of classified contracts; and 

WHEREAS, the Corporation has agreed to establish a formal organizational structure and procedures to ensure the protection of
classified information and controlled unclassified information entrusted to it and to place the responsibility therefore with a committee of its Board of Directors to be known as the Government Security Committee, all as hereinafter provided; and

 WHEREAS, the Parties agree that the business and affairs of the Corporation shall be managed by or under the direction
of the Board of Directors of the Corporation, which shall be elected by the Shareholders of the Corporation; and 
  

 

	2
	 An administrative determination that a facility is eligible for access to classified information of a certain category. 

	3
	 Any information that has been determined pursuant to Executive Order 12958 or any predecessor order to require protection against unauthorized
disclosure and is so designated. The classifications TOP SECRET, SECRET, and CONFIDENTIAL are used to designate such information. 

	4
	 Unclassified information, the export of which is controlled by the International Traffic in Arms Regulations (“ITAR”) and/or the Export
Administration Regulations (“EAR”). The export of technical data, which is inherently military in nature, is controlled by the ITAR. The export of technical data, which has both military and commercial uses, is controlled by the EAR.

  

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 WHEREAS, a company under FOCI is not normally authorized to have access to the
following classified information: 
 a. TOP SECRET information; 

b. RESTRICTED DATA as defined in the United States Atomic Energy Act of 1954, as amended; 

c. Communications Security (“COMSEC”) information, except classified keys used for data transfers; 

d. Special Access Program information; and 

e. Sensitive Compartmented Information; and 

WHEREAS, all parties hereto have agreed that management control of the defense and technology security affairs
and classified contracts of the Corporation and its subsidiaries should be vested in resident citizens of the United States who have DoD personnel security
clearances5; and 

WHEREAS, GSGH, by its authorized representative, hereby affirms on its own behalf and on behalf of the Affiliates that
(a) neither GSGH nor the Affiliates will seek access to or accept U.S. Government classified information or controlled unclassified information entrusted to the Corporation, except as permissible under the NISP and applicable United States
Government laws and regulations; and (b) neither GSGH nor the Affiliates will attempt to control or adversely influence the performance by the Corporation or its subsidiaries of classified contracts and participation in classified programs; and
(c) except as expressly authorized by the Agreement, GSGH’s and the Affiliates’ involvement (individually and collectively) in the business affairs of the Corporation and its subsidiaries shall be limited to participation in the
deliberation and decisions of the Corporation’s Board of Directors and authorized committees thereof; and 

WHEREAS, in order to meet DoD’s national security objectives in the matter of the Corporation’s facility security
clearance(s) and to further the Corporation’s business objectives, the Parties intend to be bound by the provisions of the Agreement. 
  

 

	5
	 An administrative determination that an individual is eligible for access to classified information of a certain category.

  

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 NOW THEREFORE, it is expressly agreed by and between the Parties that this Agreement
is hereby created and established, subject to the following terms and conditions, to which all of the Parties expressly assent and agree: 

ORGANIZATION 

ARTICLE I - Management of the Corporation’s Business 

1.01. Composition of the Corporation Board of Directors. 

The Board of Directors of the Corporation (the “Corporation Board”), shall be elected by the Shareholders and shall be
composed of: (i) a minimum of three individuals who have no prior relationship with the Corporation (the “Outside Directors”), except as otherwise allowed by DoD, (ii) at least one representative of the Affiliates (the
“Inside Director(s)”), and (iii) one or more cleared officer(s) of the Corporation (the “Officer/Director(s)”). The number of Inside Directors shall not exceed the combined total of Outside Directors and Officer/Directors.
Except as specifically provided herein, each member of the Corporation Board, however characterized by this Section 1.01, shall have all of the rights, powers, and responsibilities conferred or imposed upon directors of the Corporation by
applicable statutes and regulations, and by the Corporation’s Certificate of Incorporation and By-laws. The Chairman of the Corporation Board, as well as its key management
personnel,6 must be resident citizens of the United States
who have or who are eligible to possess DoD personnel security clearances at the level of the Corporation’s facility security clearances. In addition, the Chairman of the Corporation Board shall not be an Inside Director. All directors of the
Corporation shall satisfy the pertinent requirements established in Section 3.01 below. The Outside Directors may not be removed without prior notice to and written notice stating no objection from DSS. Appointments of new or replacement
Outside Directors shall not become final until approved by DSS. 
 1.02. Actions by the Corporation Board. 

a. No action may be taken by the Corporation Board or any committee thereof, in the absence of a quorum as defined below. 

b. A majority of the Corporation Board, including at least one Inside Director and one Outside Director, shall be necessary to constitute
a quorum. With respect to the Government Security Committee (see Section 7.01 below), a majority of the Committee shall be necessary to constitute a quorum. With respect to all other standing committees of the Corporation Board, including the
Compensation Committee (see Article VIII below), a majority of each such committee, including at least one Outside Director, shall be necessary to constitute a quorum. 
  

 

	6
	 For purposes of this Agreement, “key management personnel” shall have the meaning currently ascribed to it under paragraph 2-104 of the
National Industrial Security Program Operating Manual (“NISPOM”): The senior management official and the Facility Security Officer must always be cleared to the level of the facility security clearance. Other officials, as determined by
the Defense Security Service (“DSS”), must be granted a personnel security clearance or be excluded from access to classified information. 

 

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 ARTICLE II - Limitations on the Corporation Board 

2.01. The Corporation Board shall not be authorized to take any of the actions specified in subsections 2.01.a. through 2.01.c. below,
unless it shall have received, with respect to each such action, the approval of the Shareholders owning a majority of the shares at an annual or special meeting or as otherwise permitted under the Delaware General Corporation Law
(“DGCL”). 
 a. The sale, lease or other disposition of any of the property, assets or business of the Corporation, or
the purchase of any property or assets by the Corporation that is other than in the ordinary course of business, except as permitted under the DGCL; 

b. The merger, consolidation, reorganization, dissolution or liquidation of the Corporation, except as permitted under the DGCL; and

 c. The filing or making of any petition under the Federal Bankruptcy Code or any applicable bankruptcy law or other acts of
similar character. 
 ARTICLE III - Qualification, Appointment, and Removal of Directors; Board Vacancies 

3.01. During the period that the Agreement is in force, the Corporation Board shall be composed as provided in Section 1.01 hereof,
and its members shall meet the following additional requirements: 
 a. Officers/Directors and Outside Directors shall be
resident citizens of the United States and have or be eligible to have DoD personnel security clearances at the level of the Corporation’s facility security clearance. 

b. Outside Directors shall have been approved by DSS as satisfying the appropriate DoD personnel security requirements and the applicable
provisions of the Agreement. 
 c. The Inside Directors, in their capacity as Directors of the Corporation, shall not have DoD
personnel security clearances, regardless of citizenship, and they shall be formally excluded from access to classified information by resolution of the Corporation Board. 

3.02. The Shareholders may remove any member of the Corporation Board for any reason permitted under the DGCL or the Corporation’s
Certificate of Incorporation or By-Laws, provided that: 
 a. the removal of an Outside Director shall not become effective until
that Director, the Corporation, and DSS have been notified, DSS provides written notice stating no objection, and a successor who is qualified to become an Outside Director within the terms of the Agreement has been selected in accordance with the
Corporation’s By-laws and has been approved by DSS; 
  

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 b. notification to DSS of the removal of an Outside Director shall be the responsibility of
the Corporation Board through the Facility Security Officer (“FSO”) of the Corporation, and, except as noted in subsection 3.02.c below, must be given at least twenty days prior to the proposed removal date; 

c. notwithstanding the foregoing, however, if immediate removal of any Outside Director is deemed necessary to prevent actual or possible
violation of any statute or regulation or actual or possible damage to the Corporation, the Outside Director may be removed at once, although DSS shall be notified prior to or concurrently with such removal. 

3.03. In the event of any vacancy on the Corporation Board, however occurring, the Corporation shall give prompt notice of such vacancy
to the Government Security Committee and DSS, through its FSO, and such vacancy shall be filled promptly in accordance with the Corporation’s By-laws and this Agreement. Such vacancy shall not exist for a period of more than 90 days after the
Outside Director’s resignation, death, disability or removal, or beyond the date of the next annual or special meeting of the Shareholders following the Outside Director’s resignation, death, disability or removal, whichever is greater,
unless DSS is notified of the delay. Notwithstanding the foregoing, subject to the Corporation Board composition provisions of Section 1.01 hereof, the Corporation Board may, in lieu of filling any vacancy, reduce the size of the Corporation
Board. 
 3.04. Except as provided by this paragraph, the obligation of an Outside Director to abide by and enforce this
Agreement shall terminate when the Director leaves office, but nothing herein shall relieve the departing Outside Director of any responsibility that the Director may have, pursuant to the laws and regulations of the United States, not to disclose
classified information or controlled unclassified information obtained during the course of the Director’s service on the Corporation Board, and such responsibility shall not terminate by virtue of the Outside Director leaving office. The
Corporation’s FSO shall advise the departing Outside Director of such responsibility when the Outside Director leaves office, but the failure of the Corporation to so advise the Outside Director shall not relieve the Outside Director of such
responsibility. 
 ARTICLE IV - Indemnification of Outside Directors 

4.01. The Outside Directors in their capacity as directors of the Corporation shall vote and act on all matters in
accordance with their best efforts.7 

 
  

	7
	 For purposes of the Agreement, the term “best efforts” means performance of duties, including fiduciary duties, reasonably and in good faith,
in the manner believed to be in the best interests of the Corporation and in accordance with Section 141 of the DGCL but consistent with the national security concerns of the United States, and with such care, including reasonable inquiry, as
an ordinarily prudent person in a like positions would use under similar circumstances. 

  

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 4.02. The Corporation shall indemnify and hold harmless, to the fullest extent permitted by
the DGCL as it presently exists or may hereafter be amended, each Outside Director who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or
investigative (a “Proceeding”) by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was an Outside Director, against all liability and loss suffered and expenses (including attorneys’
fees) reasonably incurred by such person in connection with any such Proceeding. 
 4.03. The Corporation shall to the fullest
extent not prohibited by applicable law pay the expenses (including attorneys’ fees) incurred by any Outside Director, in defending any Proceeding in advance of its final disposition; provided, however, that, to the extent required by law, such
payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the person to repay all amounts advanced if it should be ultimately determined that the person is not entitled to be
indemnified. 
 4.04. The Corporation may purchase and maintain insurance on behalf of any Outside Director against any
liability asserted against him or her and incurred by him or her in any such capacity, or arising out of his or her status as such, whether or not the Corporation would have the power to indemnify him or her against such liability under the
provisions of the DGCL. 
 ARTICLE V - Restrictions Binding on Subsidiaries of the Corporation 

5.01. The parties hereto agree that the provisions of this Agreement restricting unauthorized access to classified
information and controlled unclassified information entrusted to the Corporation by entities under FOCI, and all provisions of the Visitation Policy established in Article XI, below shall apply to and shall be made to be binding upon all present and
future subsidiaries8 of all companies controlled by the
Corporation. The Corporation hereby agrees to undertake any and all measures, and provide such authorizations, as may be necessary to effectuate this requirement. The sale of, or termination of the Corporation’s control over, any such
subsidiary or controlled company shall terminate the applicability to it of the provisions of this Agreement. 
 5.02. If the
Corporation proposes to form a new subsidiary, or to acquire ownership or control of another company, it shall give notice of such proposed action to DSS and shall advise DSS immediately upon consummation of such formation or acquisition.

 5.03. It shall be a condition of each such formation or acquisition that all provisions of the Visitation Policy established
in Article XI, below and all of the above-described restrictive provisions of the Agreement shall apply to each such company immediately upon consummation of such formation or acquisition, and that the Corporation and the subsidiary or controlled
company shall execute a document agreeing that such company shall be bound thereby; and a copy of the executed document shall be forwarded to DSS. 
  

 

	8
	 The term “subsidiaries” shall, for the purposes of this Agreement, include companies wholly owned by the Corporation or in which the
Corporation owns a controlling interest, either directly or through the Corporation’s ownership interest in intermediate companies. 

  

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 5.04. A document such as described in subsection 5.03 above, shall also be executed and
submitted with respect to each present subsidiary of the Corporation, and with respect to any other company, which the Corporation presently controls. 

5.05. Compliance with this Article V shall not be interpreted as conferring the benefits of this Agreement on subsidiaries of the
Corporation. Such subsidiaries shall not be entitled to receive a facility security clearance, nor shall they be entitled to access classified information, to perform classified contracts or to participate in classified programs pursuant to this
Agreement, solely by virtue of their legal relationship with the Corporation and their execution of the documents referred to in subsections 5.03 and 5.04 above. 

OPERATION 

ARTICLE VI - Operation of the Agreement 

6.01. The Corporation shall at all times maintain policies and practices to ensure the safeguarding of classified information and
controlled unclassified information entrusted to it and the performance of classified contracts and participation in classified programs for the User Agencies in accordance with the Security Agreement (DD Form 441 or its successor form), this
Agreement, appropriate contract provisions regarding security, United States export control laws, and the NISP. 
 a. The
following additional protections shall be established in the By-laws and/or resolutions of the Corporation Board and the managing member of Contego, acknowledged as provided in subsections 6.01.a.l. and 6.01.a.2. below, and shall control the actions
of the parties hereto during the term of this Agreement: 
 1. Pursuant to a resolution of the Corporation Board, which shall
not be repealed or amended without approval of DSS, the Corporation shall exclude the Affiliates and all members of the Board of Directors and all officers, employees, agents and other representatives of each of the Affiliates from access to
classified information and controlled unclassified information entrusted to the Corporation. The above exclusion shall not, however, preclude the exchange of classified information or controlled unclassified information between the Corporation and
any Affiliates when such exchange is permissible under the NISP and applicable United States laws and regulations. 
 2.
Pursuant to a resolution of Contego’s managing member, which shall not be repealed or amended without approval of DSS, Contego shall formally acknowledge and approve the Corporation’s resolution referred to in subsection 6.01.a.1. above,
and shall additionally resolve: 
 (i) to exclude itself, its managing member and all Affiliates and all officers, employees,
agents and other representatives of all of the foregoing, from access to classified information and controlled unclassified information entrusted to the Corporation, except as expressly permissible pursuant to subsection 6.01.a.1. above; and

  

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 (ii) shall resolve to grant the Corporation the independence to safeguard classified
information and controlled unclassified information entrusted to it; and 
 (iii) shall additionally resolve to refrain from
taking any action to control or influence the performance of the Corporation’s classified contracts or the Corporation’s participation in classified programs. 

b. GSGH shall formally acknowledge and approve the Corporation resolution referenced in 6.01.a.1 above, and the Contego resolutions
referenced in 6.01.a.2. above. 
 6.02. The GSC (as defined below) shall establish written policies and
procedures and maintain oversight to provide assurance to itself and DSS that electronic communications between the Corporation and its subsidiaries, on the one hand, and the Affiliates, on the other hand, do not disclose classified or export
controlled information without proper authorization.9
Policies and procedures will also provide assurance that electronic communications are not used by the Affiliates to exert influence or control over the Corporation’s business or management in a manner which could adversely affect the
performance of classified contracts. 
 ARTICLE VII - Government Security Committee 

7.01. There shall be established a permanent committee of the Corporation Board, to be known as the Government Security Committee
(“GSC”), consisting of all Outside Directors and Officer/Directors to ensure that the Corporation maintains policies and procedures to safeguard classified information and controlled unclassified information in the possession of the
Corporation and to ensure that the Corporation complies with the DoD Security Agreement (DD Form 441 or its successor form), this Agreement, appropriate contract provisions regarding security, United States Government export control laws and the
NISP. The provisions of this Article VII shall be set forth in the Corporation’s By-Laws. 
 7.02. The GSC shall designate
one of the Outside Directors to serve as Chairman of the GSC. 
 7.03. The members of the GSC shall exercise their best efforts
to ensure the implementation within the Corporation of all procedures, organizational matters and other aspects pertaining to the security and safeguarding of classified and controlled unclassified information called for in this Agreement, including
the exercise of appropriate oversight and monitoring of the Corporation’s operations to ensure that the protective measures contained in this Agreement are effectively maintained and implemented throughout its duration. 

 
  

	9
	 For purposes of this Agreement, the term “electronic communications” means the transfer of information via, including but not limited to,
telephone conversations, facsimiles, teleconferences, video conferences or electronic mail. 

  

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 7.04. The Chairman of the GSC shall designate a member to be Secretary of the GSC. The
Secretary’s responsibility shall include ensuring that all records, journals and minutes of GSC meetings and other documents sent to or received by the GSC are prepared and retained for inspection by DSS. 

7.05. An FSO shall be appointed by the Corporation. The FSO shall report to the GSC as its principal advisor concerning the safeguarding
of classified information. The FSO’s responsibility includes the operational oversight of the Corporation’s compliance with the requirements of the NISP. The advice and consent of the Chairman of the GSC will be required to select the FSO.

 7.06. The members of the GSC shall exercise their best efforts to ensure that the Corporation develops and implements a
Technology Control Plan (“TCP”), which shall be subject to inspection by DSS. The GSC shall have authority to establish the policy for the Corporation’s TCP. The TCP shall prescribe measures to prevent unauthorized disclosure or
export of controlled unclassified information consistent with applicable United States laws. 
 7.07. A Technology Control
Officer (“TCO”) shall be appointed by the Corporation. The TCO shall report to the GSC as its principal advisor concerning the protection of controlled unclassified information. The TCO’s responsibilities shall include the
establishment and administration of all intracompany procedures to prevent unauthorized disclosure and export of controlled unclassified information and to ensure that the Corporation otherwise complies with the requirements of United States
Government export control laws. 
 7.08. Discussions of classified and controlled unclassified information by the GSC shall be
held in closed sessions and accurate minutes of such meetings shall be kept and shall be made available only to such authorized individuals as are so designated by the GSC. 

7.09. Upon taking office, the GSC members, the FSO and the TCO shall be briefed by a DSS representative on their responsibilities under
the NISP, United States Government export control laws and this Agreement. 
 7.10. Each member of the GSC, the FSO and the TCO
shall exercise his/her best efforts to ensure that all provisions of this Agreement are carried out; that the Corporation’s directors, officers, and employees comply with the provisions hereof; and that DSS is advised of any known violation of,
or known attempt to violate, any provision hereof, appropriate contract provisions regarding security, United States Government export control laws, and the NISP. 

7.11. Each member of the GSC shall execute, for delivery to DSS, upon accepting his/her appointment, and thereafter, at each annual
meeting of the GSC with DSS, as established by this Agreement, a certificate acknowledging the protective security measures taken by the Corporation to implement this Agreement. Each member of the GSC shall further acknowledge his/her agreement to
be bound by, and to accept his/her responsibilities hereunder and acknowledge that the United States Government has placed its reliance on him/her as a United States citizen and as the holder of a personnel security clearance to exercise his/her
best efforts to ensure compliance with the terms of this Agreement and the NISP. 
  

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 7.12. Obligations and Certification of Cleared Officers 

a. Each officer of the Corporation with a personnel security clearance shall exercise his best efforts to ensure that the terms and
conditions of the Agreement are complied with by the parties hereto. 
 b. Upon the Effective Date of the Agreement and annually
thereafter, each such officer shall execute, for delivery to DSS, a certificate (1) acknowledging the protective security measures taken by the Corporation to implement the Agreement; and (2) acknowledging the United States Government has
placed its reliance on him as a resident citizen of the United States, and as a holder of a personnel security clearance, to exercise his best efforts to ensure compliance with the terms and conditions of the Agreement by the parties hereto.

 7.13. Obligations and Certification of Inside Directors 

a. Inside Director(s) shall: 

1. not have access to classified information. Access to controlled unclassified information entrusted to the Corporation is prohibited
except as permissible under the NISP and applicable United States Government laws and regulations; and 
 2. refrain from
taking any action to control or influence the Corporation’s classified contracts, its participation in classified programs, or its corporate policies concerning the security of classified information and controlled unclassified information; and

 3. neither seek nor accept classified information or controlled unclassified information entrusted to the Corporation,
except as permissible under the NISP and applicable United States Government laws and regulations; and 
 4. advise the GSC
promptly upon becoming aware of (i) any violation or attempted violation of this Agreement or contract provisions regarding industrial security, export control, or (ii) actions inconsistent with the NISP or applicable United States
Government laws or regulations. 
 b. Upon accepting appointment, each Inside Director shall execute, for delivery to DSS, a
certificate affirming such Director’s agreement to be bound by, and acceptance of the responsibilities imposed by, the Agreement, and further acknowledging and affirming the obligations set forth in 7.13.a. above. 

ARTICLE VIII - Compensation Committee 

8.01. The Corporation Board shall establish a permanent committee of the Board, consisting of one or more Outside Directors, to be known
as the Compensation Committee. The Compensation Committee shall be responsible for reviewing and approving the Corporation Board recommendations for the annual compensation of the Corporation’s principal officers, as defined herein. 

 

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 ARTICLE IX - Annual Review and Certification 

9.01. Representatives of DSS, the Corporation’s Board, the Corporation’s Chief Executive Officer, the Corporation’s Chief
Financial Officer, the FSO, and the TCO shall meet annually to review the purpose and effectiveness of this Agreement and to establish a common understanding of the operating requirements and how they will be implemented. These meetings shall
include a discussion of the following: 
 a. whether this Agreement is working in a satisfactory manner; 

b. compliance or acts of noncompliance with this Agreement, NISP rules, or other applicable laws and regulations; 

c. necessary guidance or assistance regarding problems or impediments associated with the practical application or utility of the
Agreement; and 
 d. whether security controls, practices or procedures warrant adjustment. 

9.02. The Chief Executive Officer of the Corporation and the Chairman of the GSC shall submit to DSS one year from the Effective Date of
the Agreement and annually thereafter an implementation and compliance report which shall be executed by all members of the GSC. Such reports shall include the following information: 

a. a detailed description of the manner in which the Corporation is carrying out its obligations under the Agreement; 

b. a detailed description of changes to security procedures, implemented or proposed, and the reasons for those changes; 

c. a detailed description of any acts of noncompliance, whether inadvertent or intentional, with a discussion of what steps were taken to
prevent such acts from occurring in the future; 
 d. a description of any changes or impending changes, to any of the
Corporation’s top management including reasons for such changes; 
 e. a statement, as appropriate, that a review of the
records concerning all visits and communications between representatives of the Corporation and the Affiliates have been accomplished and the records are in order; 

f. a detailed chronological summary of all transfers of classified or controlled unclassified information, if any, from the Corporation
and its subsidiaries, on the one hand, to the Affiliates, on the other hand, complete with an explanation of the United States Governmental authorization relied upon to effect such transfers; 

g. copies of approved export licenses covering the reporting period; and 

 

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 h. a discussion of any other issues that could have a bearing on the effectiveness or
implementation of this Agreement. 
 ARTICLE X - Duty to Report Violations of the Agreement 

10.01. The Parties to this Agreement, except DoD, agree to report promptly to DSS all instances in which the terms and obligations of
this Agreement may have been violated. 
 CONTACTS AND VISITS 

ARTICLE XI - Visitation Policy 

11.01. The Chairman of the GSC shall designate at least one Outside Director who shall have authority to review,
approve, and disapprove requests for visits10 to the
Corporation by all personnel who represent the Affiliates (including all of the directors, officers, employees, representatives, and agents of each, except for the Inside Director(s)). The designated Outside Director shall have authority to review,
approve, and disapprove requests for proposed visits to the Affiliates by all personnel who represent the Corporation, (including all of its directors, employees, officers, representatives, and agents), as well as visits between or among such
personnel at other locations. Visits by Inside Directors must be approved by the Outside Director having responsibility for approving visits, unless the visits are necessary to attend Corporation Board Meetings or related Corporation Board
committee meetings. A record of all visit requests, including the decisions to approve or disapprove, and information regarding consummated visits, such as, date, place, personnel involved and summary of material discussion or communication,
shall be maintained by the designated Outside Director and shall be periodically reviewed by the GSC. 
 11.02. Except for
certain Routine Business Visits, as defined in Section 11.05 below, all visits must be approved in advance by the designated Outside Director. All requests for visits shall be submitted or communicated to the FSO for routing to the designated
Outside Director. Although strictly social visits at other locations between the Corporation personnel and personnel representing the Affiliates are not prohibited, written reports of such visits must be submitted after the fact to the FSO for
filing with, and review by, the designated Outside Director and the GSC 
  

 

	10
	 For purposes of this Agreement, the term “visits” includes meetings at any location within or outside the United States, including but not
limited to any facility owned or operated by the Corporation or any Affiliates. 

  

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 11.03. A written request for approval of a visit must be submitted to the FSO no less than
seven (7) calendar days prior to the date of the proposed visit. If a written request cannot be accomplished because of an unforeseen exigency, the request may be communicated via telephone to the FSO and immediately confirmed in writing;
however, the FSO may refuse to accept any request submitted less than seven (7) calendar days prior to the date of the proposed visit if the FSO determines that there is insufficient time to consider the request. The exact purpose and
justification for the visit must be set forth in detail sufficient to enable the designated Outside Director to make an informed decision concerning the proposed visit, and the FSO may refuse to accept any request that the FSO believes lacks
sufficient information. Each proposed visit must be individually justified and a separate approval request must be submitted for each. 

11.04. The FSO shall advise the designated Outside Director of a request for approval of a visit (other than a Routine Business Visit) as
soon as practicable after receipt of the written request. The designated Outside Director shall evaluate the request as soon as practicable after receiving it. The designated Outside Director may approve or disapprove the request, or disapprove the
request pending submittal of additional information by the requester. The designated Outside Director’s decision shall be communicated to the requester by any means and it shall be confirmed in writing, when practicable, at least one day prior
to the date of the proposed visit, but in no event later than six (6) calendar days after its receipt by the FSO. A chronological file of all documentation associated with meetings, visitations, and communications (contact reports), together
with records of approvals and disapprovals, shall be maintained by the FSO for inspection by DSS. At the time of each GSC meeting, the Outside Directors of the Corporation shall review such documentation filed since the last meeting to ensure
adherence to approved procedures by the requesters and the designated Outside Director and to verify that sufficient and proper justification has been furnished for approved visits. 

11.05. Routine Business Visits 

a. Routine Business Visits, as defined in 11.05.b. below, may be approved by the FSO, in the FSO’s discretion, without advance
approval by the designated Outside Director. Requests for Routine Business Visits must be submitted in advance, and in writing, to the FSO, and shall state the basis upon which the requester deems the visit to be a Routine Business Visit. Such
requests must include sufficient information to enable the FSO to make an informed decision concerning the proposed visit. The FSO, in the FSO’s discretion, may refuse to accept any request that the FSO believes lacks sufficient information and
may refer any request to the designated Outside Director for evaluation, notwithstanding its designation as a Routine Business Visit. Any request that the FSO believes is not properly characterized as a Routine Business Visit shall be referred to
the designated Outside Director, who shall evaluate the request in accordance with the terms of the Agreement. 
  

 15 

 b. Routine Business Visits are in general those that are made in connection with the regular
day-to-day business operations of the Corporation, do not involve the transfer or receipt of classified information or controlled unclassified information, and pertain only to the commercial aspects of the Corporation’s business. Routine
Business Visits include: 
 (i) Visits for the purpose of discussing or reviewing such commercial subjects as the following:
company performance versus plans or budgets; inventory, accounts receivable, accounting and financial controls; and implementation of business plans; and implementation of technical development programs; 

(ii) Visits of the kind made by commercial suppliers in general regarding the solicitation of orders, the quotation of prices, or the
provision of products and services on a commercial basis; 
 (iii) Visits concerning fiscal, financial, or legal matters
involving compliance with the requirements of any foreign or domestic governmental authority responsible for regulating or administering the public issuing of or transactions involving stocks and securities; and 

(iv) Visits concerning marketing and technical activities relating to the import or export of products requiring compliance with
regulations of United States departments or agencies, including but not limited to the Departments of Defense, Commerce, State, and Treasury. 

11.06. Special Provision Concerning Subsidiaries 

Anything to the contrary notwithstanding, the notice and approval of visitation restrictions contemplated in the Agreement shall not apply
to visits between the Corporation and its subsidiaries. However, visits between the Corporation’s subsidiaries and any Affiliate shall be subject to the visitation approval procedures set forth herein. 

11.07. Discretion to Alter Notice or Approval Requirements 

Anything foregoing to the contrary notwithstanding, the GSC, in its reasonable business discretion and consistent with its obligation to
safeguard classified information and controlled unclassified information in the Corporation’s possession may, with the approval of DSS: 

a. designate specific categories of visit requests other than those enumerated above as “Routine Business Visits” not requiring
the advance approval of the designated Outside Director; or 
 b. determine that, due to extraordinary circumstances involving
the security of classified information and/or controlled unclassified information, certain specific types of visits which that might otherwise be considered “Routine Business Visits” under the terms of the Agreement are to be allowed only
if the approval of the designated Outside Director is obtained in advance. 
  

 16 

 11.08. Quarterly GSC Meetings. The Chairman of the GSC shall also provide, to the extent
authorized by this Agreement, for regular quarterly meetings among the GSC. At the discretion of the GSC, representatives of GSGH, Kende or Contego and the Corporation’s management personnel may be invited to attend. 

11.09. Maintenance of Records for DSS Review 

A chronological file of all visit requests, reports of visits, and contact reports, together with appropriate approvals or disapprovals
pursuant to the Agreement shall be maintained by the GSC for review by DSS. 
 REMEDIES 

ARTICLE XII - DoD Remedies 

12.01. DoD reserves the right to impose any security safeguard not expressly contained in this Agreement that it believes is necessary to
ensure that the Affiliates are denied unauthorized access to classified and controlled unclassified information. 

12.02. Nothing contained herein shall limit or affect the authority of the head of a United States Government agency
1
1 to deny, limit or revoke the Corporation’s access to classified and controlled unclassified information under
its jurisdiction if the national security requires such action. 
 12.03. The Parties hereby assent and agree that the United
States Government has the right, obligation and authority to impose any or all of the following remedies in the event of a material breach of any term hereof: 

a. the novation of the Corporation’s and/or its subsidiaries’ classified contracts to another contractor, the costs of which
shall be borne by the Corporation; 
 b. the termination of any classified contracts being performed by the Corporation and/or
its subsidiaries and the denial of new classified contracts for the Corporation; 
 c. the revocation of the Corporation’s
and/or its subsidiaries’ facility security clearance; 
 d. the suspension or debarment of the Corporation and/or its
subsidiaries from participation in all Federal government contracts, in accordance with the provisions of the Federal Acquisition Regulations; and 

e. the suspension or restriction of any or all visitation privileges. 

 
  

	11
	 The term “agency” has the meaning provided at 5 U.S.C. 552(f). 

 

 17 

 12.04. Nothing in the Agreement limits the right of the United States Government to pursue
criminal sanctions against the Corporation, its subsidiaries, or any of the Affiliates, or any director, officer, employee, representative, or agent of any of these companies, for violations of the criminal laws of the United States in connection
with their performance of any of the obligations imposed by this Agreement, including but not limited to any violations of the False Statements Act 18 U.S.C. 1001, or the False Claims Act 18 U.S.C. 287. 

ADMINISTRATION 

ARTICLE XIII - Notices 

13.01. All notices required or permitted to be given to the Parties hereto shall be given by mailing the same in a sealed postpaid
envelope, via registered or certified mail, or sending the same by courier or facsimile, addressed to the addresses shown below, or to such other addresses as the Parties may designate from time to time pursuant to this Section: 

 

			
	For the Corporation:	 	Global Defense Technologies & Systems, Inc.
		 	 Attn: Chief Executive Officer

1501 Farm Credit Drive
 Suite 2300

McLean, Virginia 22102

		 	Fax: (703) 883-4037
		
	For Contego:	 	Contego Systems LLC
		 	 Attn: President
 2200
Defense Highway
 Suite 406
 Crofton,
Maryland 21114

		 	Fax: (410) 451-5083
		
	For Kende:	 	Kende Holding Vagyonkezelo kft
		 	 Attn: Paul White
 Zichy
Jenö u 4
 1066 Budapest
 Hungary

		 	Fax: +44 20 7766 7209
		
	For GSGH:	 	Global Strategies Group Holding SA
		 	 Attn: Paul White
 15
Boulevard Roosevelt
 L-2450
 Luxembourg

		 	Fax: +44 20 7766 7209

  

 18 

			
	For DSS:	  	Defense Security Service
		  	 Director, Industrial Security

1340 Braddock Place
 Alexandria, VA 22314-1651

 ARTICLE XIV - Inconsistencies with Other Documents 

14.01. In the event that any resolution, regulation or bylaw of any of the Parties to the Agreement is found to be inconsistent with any
provision hereof, the terms of this Agreement shall control. 
 ARTICLE XV - Governing Law; Construction 

15.01. This Agreement shall be implemented so as to comply with all applicable United States laws and regulations. To the extent
consistent with the rights of the United States hereunder, the laws of the State of Delaware shall apply to questions concerning the rights, powers, and duties of the Shareholders, the Corporation, Contego, Kende, and GSGH under, or by virtue of,
this Agreement. 
 15.02. In all instances consistent with the context, nouns and pronouns of any gender shall be construed to
include the other gender. 
 TERMINATION 

ARTICLE XVI - Termination, Amendment and Interpretations of this Agreement 

16.01. This Agreement may only be terminated by DSS as follows: 

a. in the event of a sale of the business or all the shares to a company or person not under FOCI; 

b. when DSS determines that existence of this Agreement is no longer necessary to maintain a facility security clearance for the
Corporation and/or its subsidiaries; 
 c. when DSS determines that continuation of a facility security clearance for the
Corporation and/or its subsidiaries is no longer necessary; 
 d. when DoD determines that there has been a breach of this
Agreement that requires it to be terminated or when DoD otherwise determines that termination of this Agreement is in the national interest; or 

e. when the Corporation, for any reason and at any time, petitions DSS to terminate this Agreement. However, DSS has the right to receive
full disclosure of the reason or reasons therefor, and has the right to determine, in its sole discretion, whether such petition should be granted. 
  

 19 

 16.02. Unless it is terminated earlier under the provisions of paragraph 16.01, this
Agreement shall expire ten (10) years from the date of execution without any action being required of any of the parties to the agreement. However, if the Corporation requests that DSS continue the agreement past the expiration date, DSS may
extend the term of the Agreement while a new agreement is being negotiated. Any request to extend the term of the Agreement made under this paragraph shall be submitted to DSS no later than ninety (90) days prior to the expiration date of the
agreement. 
 16.03. If DoD determines that this Agreement should be terminated for any reason, DSS shall provide the
Corporation with thirty (30) days written advance notice of its intent and the reasons therefor. 
 16.04. DoD is expressly
prohibited from causing a continuation or discontinuation of this Agreement for any reason other than the national security of the United States. 

16.05. This Agreement may be amended by an agreement in writing executed by all the Parties. 

16.06. The Parties agree that with respect to any questions concerning interpretations of this Agreement, or whether a proposed activity
is permitted hereunder, shall be referred to DSS and DoD shall serve as final arbiter/interpreter of such matters. 
  

 20 

 ARTICLE XVII - Place of Filing 

17.01. Until the termination of the Agreement, one original counterpart shall be filed at the office of the Corporation, located in
McLean, Virginia, and such counterpart shall be open to the inspection of the Affiliates and the Shareholders during normal business hours. 

EXECUTION 
 This
Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of such counterparts shall together constitute but one and the same instrument. 

IN WITNESS WHEREOF, the Parties hereto have duly executed the Agreement, which shall not become effective until the Effective Date. 

 

					
	 Erin Bruce, 2/22/10
 Signature
of Witness/Date
	 	 By
	 	 /s/ John Hillen

Signature
 John F. Hillen, President & CEO

 Name Printed or Typed and Title

Global Defense Technology & Systems, Inc.

			
	 Erin Bruce, 2/22/10
 Signature
of Witness/Date
	 	 By
	 	 /s/ Damian Perl

Signature
 Damian Perl, Director

Name Printed or Typed and Title
 Global
Strategies Group Holding SA

			
	 Erin Bruce, 2/22/10
 Signature
of Witness/Date
	 	 By
	 	 /s/ Mezei Zsofia

Signature
 Mezei Zsofia, Director

Name Printed or Typed and Title
 Kende
Holding Vagyonkezelo kft

			
	 Erin Bruce, 2/22/10
 Signature
of Witness/Date
	 	 By
	 	 /s/ Ronald C. Jones

Signature
 Ronald C. Jones, President

Name Printed or Typed and Title
 Contego
Systems LLC

			
	 February 22, 2010
 Date

	 	 By
	 	 /s/ Drew R. Winneberger

Drew R. Winneberger
 Director, Industrial
Security Policy and Programs
 (For the Department of Defense, Defense Security Service)

 

 212010 Form of Performance Units Award Statement and Terms

 Exhibit 10.35 

TELLABS, INC. 2010 Executive Performance Stock Units Award Statement for: 

Congratulations! You were granted a 2010 Executive Performance Stock Units (PSU) Award on March 8, 2010 as authorized by the Compensation Committee
of the Tellabs, Inc. (the “Company”) Board of Directors. The following summarizes your PSU Award: [NAME] 
 PERFORMANCE STOCK UNITS
AWARD 
  

			
	PSUs Awarded:	    	[NUMBER] PSUs (subject to the vesting and payout terms provided in the Terms of the 2010 Executive Performance Stock Units Award Agreement attached to this PSU
statement).

 PERFORMANCE TARGETS/PAYOUT/VESTING: 

 

			
	Performance Targets:	    	There are two (2) independent equally-weighted performance targets (a) 2010 operating earnings, and (b) completion of strategic goals, as detailed in the Terms of the 2010
Executive Performance Stock Units Award Agreement attached to this PSU Statement.
		
	Payout Range:	    	Up to two (2) shares of Tellabs common stock may be earned for each PSU based upon the level of 2010 operating earnings achieved and strategic goals completed, as detailed in the
Terms of the 2010 Executive Performance Stock Units Agreement attached to this PSU Statement.
		
	Vesting and Payout Dates:	    	Except in limited circumstances, earned shares will vest and be issued to you in equal annual installments in March 2011, March 2012 and March 2013, if you are
continually employed by the Company or its subsidiaries through those vesting dates. The vesting and payment provisions are detailed in the Terms of the 2010 Executive Performance Stock Units Award Agreement attached to this PSU
Statement.

 This PSU Award is issued under the Amended and Restated Tellabs, Inc. 2004 Incentive Compensation Plan
(“Plan”) in consideration of you remaining an employee of the Company and/or one of its subsidiaries. If you accept the terms of this PSU Award, you consent to be bound by all of the terms and conditions of this PSU Award Statement, which
includes the accompanying Terms of the 2010 Executive Performance Stock Units Award Agreement, and the Plan. You also acknowledge that you have been given access to the summary description of the Plan and a copy of the Plan. Payment under both
portions of the PSUs is determined by the Compensation Committee based on an assessment of performance relative to goals. The number of PSUs awarded is subject to the discretion of the Compensation Committee. 

To the extent not otherwise defined herein, capitalized terms shall have the meaning ascribed to them in the Plan. 

This Award Statement, including the accompanying Terms of the 2010 Executive Performance Stock Units Award Agreement, constitutes part of a
prospectus covering securities that have been registered under the Securities Act of 1933, as amended. 

 TELLABS, INC. Terms of the 2010 Executive Performance Stock Units Award Agreement 

  

			
	Type of Award:	  	Performance Stock Units (“PSUs”), representing an opportunity to earn shares of common stock of Tellabs, Inc. (the “Company” or
“Tellabs”).
		
		  	The number of shares, if any, earned with respect to the PSUs will depend upon the Company’s certified financial results during the 2010 fiscal year as compared to the
performance targets described below and the Company’s certified achievement of strategic goals as compared to the strategic goals targets described below, and, except as provided below, your right to receive any shares earned will depend on
your continued employment through the vesting dates.
		
	Performance Targets:	  	The operating earnings performance targets and scores are as follows:
		
		  	 1)       operating earnings of $[NUMBER ] million score 0.25x of PSUs;

		
		  	 2)       operating earnings between $[NUMBER ] million and $[NUMBER ] million score up to 0.5x
of PSUs;

		
		  	 3)       operating earnings between $[NUMBER ] and $[NUMBER ] million score up to 1.0x of
PSUs; and

		
		  	 4)       operating earnings at or above $[NUMBER ] million score 1.0x of
PSUs.

		
		  	“Operating earnings” for the measurement period and the resulting 2010 operating earnings shall be the amount certified by the Company’s Compensation Committee based
upon the Company’s published financial results for 2010 determined on a GAAP basis, with operating earnings adjusted to exclude the effects of (a) purchased intangible asset amortization, (b) acquisition-related charges,
(c) equity-based compensation award expenses under ASC 718, and (d) restructuring charges and certain asset impairment charges. The amount as certified is referred to below as “2010 Operating Earnings”. The financial statements
contained in the Company’s Form 10-K filed with the United States Securities and Exchange Commission for the Company’s 2010 fiscal year shall qualify as certified financial results for the Company’s Compensation Committee to certify
PSUs earned. The Compensation Committee shall have final authority over the interpretations of any item not covered in this definition.
		
		  	The strategic goal performance targets and scores are as follows:
		
		  	 1)       completion of [NUMBER ] strategic goals score 0.25x of PSUs;

		
		  	 2)       completion of [NUMBER ] strategic goals score 0.5x of PSUs; and

		
		  	 3)       completion of [NUMBER ] strategic goals score 1.0x of PSUs

		
		  	Strategic goals are defined as [GOALS]

			
	Payout Range:	  	The number of shares of Tellabs stock earned with respect to each PSU granted is based in part on the certified levels of 2010 Operating Earnings achieved, and the
payout score set forth in the following table (with straight line extrapolation between performance levels):
		
		  	[TABLE]
		
		  	The “payout rate” reflects the number of shares earned per PSU as a result of the corresponding financial performance achieved. The maximum payout rate based on Operating
Earnings performance is 1.0x, or one (1) share per PSU.
		
		  	The number of shares of Tellabs stock earned with respect to each PSU granted is based in part on the number of strategic goals achieved. The following table shows the payout
corresponding to each achievement level. Payout for each strategic goal is binary (e.g., all or nothing).
		
		  	[TABLE]
		
		  	For example, if 2010 Operating Earnings is $[NUMBER] million, then the “payout rate” based on operating earnings will be 0.5x, or 0.5 shares of common stock for each PSU.
If [NUMBER] strategic goals are achieved the “payout rate” based on achieving strategic goals will be 0.25x or 0.25 shares of common stock for each PSU. This will result in a total combined payout of 0.75 or 0.75 shares of common stock for
each PSU.
		
	Vesting and Payout Dates:	  	Subject to the provisions below relating to termination of employment or Change in Control, your right to receive any earned shares will vest as follows, provided you remain
continuously employed by Tellabs through the applicable vesting date:
		
		  	 •     One-third will vest on March 8, 2011;

		
		  	 •     One-third will vest on March 8, 2012; and

		
		  	 •     One-third will vest on March 8, 2013

		
		  	Once vested, the earned shares of Tellabs stock will be issued to you no later than March 15th following the vesting date. Once vested, those shares are no longer at risk of
forfeiture.
		
	Effect of Termination of Employment and Change in Control:	  	All PSUs held by you and your right to receive unvested earned shares will be forfeited and/or cancelled if you cease to be an employee of the Company and/or one of its subsidiaries
for any reason.

			
		
		  	In the event of a Change in Control prior to certification by the Compensation Committee of the number of shares earned based on certified 2010 Operating Earnings and certified
strategic goals achieved, shares of Tellabs stock will be deemed to be earned with respect to the outstanding PSUs at a payout rate of 1.0 shares for each PSU or, if greater, the payout rate determined by the Compensation Committee based on the
Committee’s assessment of the Company’s financial performance and performance against strategic goals as of the Change of Control taking into account the Performance Target as of such Change of Control, but in no event greater than the
maximum payout rate, and such earned shares shall be fully vested as of the date of the Change of Control.
		
		  	In the event of a Change in Control after the number of shares earned has been certified, all unvested earned shares shall be fully vested as of the date of the Change in Control.

		
		  	Earned shares that become vested due to a Change in Control shall be issued on or as promptly as practicable, and in no event later than thirty (30) days after the date of the
Change of Control.
		
	No Voting or Dividend Rights; Adjustments:	  	Since PSUs and unvested earned shares do not represent actual shares, you do not have any voting rights or dividend rights under the PSUs or with respect to any
unvested earned shares.
		
		  	The number of PSUs and/or number of shares of stock issuable with respect to a PSU or unvested earned shares shall be adjusted in the event of a stock dividend, split or other
corporate event as more fully set forth in the Plan.
		
	Tax Considerations:	  	Refer to the accompanying Summary of Tax Considerations.
		
	Transferability:	  	No PSUs or unvested earned shares granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, otherwise than by will or by the laws
of descent and distribution.

 TELLABS, INC. 

Summary of Tax Considerations 

Relating to Executive Performance Stock Units Awards under the Plan 

Set forth below is a summary of certain tax consequences relating to the Executive Performance Stock Units Awards (“PSUs) and unvested earned shares
relating thereto, under the Amended and Restated Tellabs, Inc. 2004 Incentive Compensation Plan. This discussion does not purport to be complete and does not cover, among other things, state, provincial and local tax treatment, and should not be
considered tax advice by the Company. This summary is provided merely to inform you of certain potential tax consequences. The taxes applicable to you may vary depending on your personal situation, and the Company strongly recommends that you
consult with your own tax advisors regarding the actual tax consequences to you. 

 UNITED STATES 

Federal Income Tax Considerations: No income is recognized upon receipt of an award of PSUs or the determination of the number of
earned shares relating to the PSU award. At the time vested earned shares are issued, income equal to the then fair market value of stock issued is recognized. The capital gain or loss holding period for any stock begins when ordinary income is
recognized. Any subsequent capital gain or loss is measured by the difference between the fair market value of the stock upon which the ordinary income recognized was based and the amount received upon sale or exchange of the shares. 

Tax Withholding: Any income or other tax withholding which applies at the time shares are issued will be satisfied by the Company
withholding from the shares of stock issuable, a number of shares of stock then having a fair market value equal to the amount sufficient to satisfy the minimum statutory Federal, state and local tax (including the FICA and Medicare tax obligation)
withholding required by law.

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