Document:

Agreement, dated as of April 5, 2012

 Exhibit 10.1 
 AGREEMENT 
 THIS AGREEMENT (“Agreement”), dated as
of April 5, 2012, is made by and among Tellabs, Inc., a Delaware corporation (the “Company”), and the other entities and natural persons listed on the signature pages hereto (collectively, the “Dialectic
Group”) (each of the Company and the Dialectic Group, a “Party” to this Agreement, and collectively, the “Parties”). 
 WHEREAS, the Dialectic Group may be deemed to beneficially own shares of common stock of the Company (the “Common Stock”) totaling, in the aggregate, 6,508,420 shares, or
approximately 1.78% of the Common Stock issued and outstanding on the date hereof; 
 WHEREAS, the Company from time to
time holds discussions with certain of its stockholders relating to governance matters, including with respect to preferences relating to the composition of the Company’s board of directors (the “Board”); 

WHEREAS, the Dialectic Group has provided notice to the Company of its intention to nominate new candidates to the Board at its
2012 annual meeting of stockholders (the “2012 Annual Meeting”) and to communicate with stockholders of the Company in connection with the election of directors of the Company at the Annual Meeting; 

WHEREAS, Linda Wells Kahangi (a Class III Director) (“Kahangi”) and William Souders (a Class I Director)
(“Souders”) have advised the Company of their willingness to retire from the Board, immediately upon the completion of the 2012 Annual Meeting; 
 WHEREAS, it is considered desirable to appoint one of the nominees identified by the Dialectic Group to fill the Class III vacancy and a separate candidate to fill the Class I vacancy, which
candidate was identified after consultation by the Company with certain of the Company’s other stockholders, as more fully described below; and 
 WHEREAS, the Company and the Dialectic Group have agreed that it is in their mutual interests to enter into this Agreement to set forth, among other things, the parties’ mutual understanding
relating to the 2012 Annual Meeting. 
 NOW, THEREFORE, in consideration of the premises and the representations,
warranties, and agreements contained herein, and other good and valuable consideration, the Parties mutually agree as follows: 

1. Representations and Warranties of the Dialectic Group. The Dialectic Group represents and warrants to the Company that
(a) this Agreement has been duly authorized, executed and delivered by each member of the Dialectic Group, and is a valid and binding obligation of each member of the Dialectic Group, enforceable against each member of the Dialectic Group in
accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity
principles; and (b) the execution of this Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof,

 
will not conflict with, or result in a breach or violation of, any law, or any order of any court or other agency of government, applicable to any member of the Dialectic Group or to which any
member of the Dialectic Group is a party, or the organizational documents of any member of the Dialectic Group. 
 2.
Representations and Warranties of the Company. The Company hereby represents and warrants to the Dialectic Group that (a) this Agreement has been duly authorized, executed and delivered by the Company, and is a valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally
affecting the rights of creditors and subject to general equity principles; and (b) the execution of this Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in
accordance with the terms hereof, will not conflict with, or result in a breach or violation of, any law, any order of any court or other agency of government, the Company’s Certificate of Incorporation or Bylaws, each as amended to date, or
any agreement applicable to the Company or to which the Company is a party or is bound, nor trigger any “change of control” provision in any agreement or employee benefit plan to which the Company is a party or is bound. 

3. Director Appointments and Annual Meeting. 

(a) Each of Kahangi and Souders has executed and delivered to the Company a resignation letter pursuant to which he or she
is retiring from the Board effective upon the completion of the 2012 Annual Meeting. Subject to the agreement of the 2012 Appointees (defined below) to comply with the Company’s governance policies, in order to fill the vacancies created by
such resignations, the Company has taken all actions necessary and appropriate to have its Board appoint, effective upon the completion of the 2012 Annual Meeting, (i) Gregory J. Rossmann as a Class III Director with a term expiring at the
Company’s 2013 annual meeting of stockholders (the “2013 Annual Meeting”), and (ii) Vincent D. Kelly as a Class I Director with a term expiring at the Company’s 2014 annual meeting of stockholders (the “2014
Annual Meeting”). Mr. Rossmann is referred to herein as the “Dialectic Appointee,” and Mr. Rossmann and Mr. Kelly are collectively referred to as the “2012 Appointees.” The 2012 Appointees
shall be invited to attend all meetings of the Board in the capacity of observers (subject to providing customary confidentiality undertakings in the same manner as a director of the Company) pending the effectiveness of their appointments to the
Board. The Company shall provide to each 2012 Appointee, in his capacity as an observer, copies of all notices, minutes, consents and other materials, financial and otherwise, as and when provided to the Board. 

(b) So long as the Dialectic Group certifies in writing to the Company that, on December 31, 2012, it is the
beneficial owner of not less than 1% of the outstanding shares of the Common Stock, the Company agrees to take all actions necessary and appropriate to (i) nominate the Dialectic Appointee for election at the 2013 Annual Meeting as a Class III
Director of the Board, (ii) recommend, and to reflect such recommendation in the Company’s definitive proxy statement in connection with the 2013 Annual Meeting, that the stockholders of the Company vote to elect the Dialectic Appointee as
a Class III Director of the Board at the 2013 Annual Meeting, and (iii) support and solicit proxies for the Dialectic Appointee’s election as a Class III Director of the Board, all in the same manner as for the Company’s other
nominees who 

 
are up for election at the 2013 Annual Meeting. The Company agrees that if, for any reason, the Dialectic Appointee is unable to stand for reelection as a Class III Director at the 2013 Annual
Meeting, the Dialectic Group shall have the opportunity to recommend a substitute nominee, who shall qualify as “independent” pursuant to NASDAQ listing standards and who has relevant financial and business experience, subject to the
approval of the Nominating and Governance Committee of the Board in good faith after exercising its fiduciary duties, which approval shall not be unreasonably withheld. In the event the Nominating and Governance Committee of the Board does not
accept the substitute nominee recommended by the Dialectic Group, the Dialectic Group will have the right to recommend one or more additional substitute nominees for consideration by the Nominating and Governance Committee. Upon the acceptance of a
substitute director nominee by the Nominating and Governance Committee, the Company will take all action set forth in the first sentence of this clause (b) with respect to such substitute director nominee. The foregoing provisions in this
subsection 3(b) with respect to the Dialectic Appointee shall also apply mutatis mutandis with respect to the Mutual Appointee (defined below) if and only if the Mutual Appointee is appointed to a Class III directorship. For the avoidance of
doubt, any reference in this Agreement to the “Dialectic Appointee” and “Mutual Appointee” shall include any such replacement nominee selected in accordance with the provisions of this clause (b). 

(c) So long as the Dialectic Group certifies in writing to the Company that it is the beneficial owner of not less than 1%
of the outstanding shares of the Common Stock at the applicable time, the Company agrees to take all actions necessary and appropriate to cause a candidate mutually agreeable to the Company and the Dialectic Group (or J.C. Huang, if the Company and
the Dialectic Group are unable to agree on such other candidate) to be appointed to the Board not later than December 31, 2012 (J.C. Huang or such mutually agreeable candidate being referred to as the “Mutual Appointee”). To
the extent necessary, the Company may increase the size of the Board to 11 to effectuate the foregoing. 
 (d)
Each of the Dialectic Appointee and the Mutual Appointee shall agree to resign from the Board if the Dialectic Group at any time is the beneficial owner of less than 1% of the shares of the outstanding Common Stock. The Dialectic Group will notify
the Company promptly after becoming aware of such occurrence. 
 (e) The Dialectic Group hereby irrevocably
withdraws its letter to the Company dated February 3, 2012 (the “Dialectic Nomination Letter”). 
 (f) At the 2012 Annual Meeting and the 2013 Annual Meeting, and at each special meeting of stockholders of the Company prior to the 2013 Annual Meeting, so long as either of the Dialectic Appointee or the
Mutual Appointee is serving as a director, the Dialectic Group agrees to vote, and cause their respective Affiliates and Associates within their control to vote, all of the shares of Common Stock beneficially owned by them or over which it has or
shares (with any other member of the Dialectic Group or any such Affiliate or Associate) voting power in accordance with the recommendation of the Board as set out in the related proxy statement solely with respect to matters not requiring the
Company to file a preliminary proxy statement with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, or the rules or regulations thereunder (the “Exchange Act”), provided that
Institutional Shareholder Services has recommended in favor thereof. 

 (g) The Company agrees that during the Standstill Period (as defined below),
it shall not, and shall cause the Board not to, take any action to increase the number of members on the Board to more than 10 directors, except as provided for in subsection 3(c) above. 

(h) The Company agrees that it shall hold the 2012 Annual Meeting no later than May 15, 2012. 

4. Standstill. Each member of the Dialectic Group agrees that, from the date of this Agreement through the earlier of (x) the
date that is eighteen months from the date of this Agreement, and (y) the date that is 10 days prior to the deadline for stockholders to nominate director candidates for election to the Board at the 2014 Annual Meeting (the “Standstill
Period”): 
 (a) neither it nor any of its Affiliates or Associates under its control or direction will,
and it will cause each of its Affiliates and Associates under its control not to, directly or indirectly, in any manner: 
 (i) engage in any solicitation of proxies or consents or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) of proxies or
consents (including, without limitation, any solicitation of consents to call a special meeting of stockholders, action by written consent of stockholders or any other solicitation or nomination), in each case, with respect to securities of the
Company; 
 (ii) seek to advise, encourage, support, cooperate with, or influence any person with respect to the
voting or disposition of any securities of the Company at annual or special meetings of stockholders; 
 (iii)
form, join or in any way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a “group” that includes all or some lesser number of the persons
identified herein as part of the Dialectic Group); 
 (iv) at any time be the beneficial owner, in the aggregate,
of more than 5% of the outstanding shares of the Common Stock; 
 (v) deposit any Common Stock in any voting
trust or subject any Common Stock to any arrangement or agreement with respect to the voting of any Common Stock, other than any such voting trust, arrangement or agreement solely among the Dialectic Group; 

(vi) control, influence or seek to control or influence the Board other than through the Dialectic Appointee and/or the
Mutual Appointee, other than through non public communications with the officers and directors of the Company; 

(vii) seek or encourage any person to submit nominations in furtherance of a “contested solicitation” for the
election or removal of directors with respect to the Company or any other solicitation or nomination; 

 (viii) (1) make any proposal for consideration by stockholders at any
annual or special meeting of stockholders or (2) make any offer or proposal (with or without conditions) with respect to a merger, acquisition, disposition or other business combination involving the Dialectic Group and the Company; 

(ix) seek, alone or in concert with others, representation on the Board, other than in accordance with Section 3(b);
or 
 (x) make any request to amend, waive or terminate any provision of this Agreement, other than through non
public communications with the officers and directors of the Company that do not trigger any disclosure obligation on the part of the Company or any member of the Dialectic Group; 
 provided, however, that, except as otherwise provided in Section 3, nothing herein will limit the ability of (1) any member of the Dialectic Group, or any of its respective Affiliates and
Associates, to vote its shares of Common Stock on any matter submitted to a vote of the stockholders of the Company in such manner as it may determine in its sole discretion; (2) the Dialectic Group to disclose, publicly or otherwise, how it
intends to vote or act with respect to, or to announce its opposition to, including, in any such case, the reasons therefor, any publicly-announced proposals, including, but not limited to, a merger, acquisition, disposition of all or substantially
all of the assets of the Company or other business combination or divestiture involving the Company; or (3) any member of the Dialectic Group, or any of its respective Affiliates and Associates from taking any action as, based on the advice of
counsel, is reasonably required to comply with applicable law (including any Federal or State securities laws, rules or regulations or the rules and regulations of any stock exchange or stock market). 

As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule
12b-2, and the term “beneficial owner” shall have the meaning set forth under Rule 13d-3, in each case promulgated by the SEC under the Exchange Act. 
 5. Public Announcement. The Company and the Dialectic Group shall promptly disclose the existence of this Agreement after its execution pursuant to a joint press release that is
mutually acceptable to the Parties, including a description of the material terms of this Agreement. Subject to applicable law, none of the Parties shall disclose the existence of this Agreement until the joint press release is issued. During the
Standstill Period, each Party agrees that it shall refrain from any disparagement, defamation, libel or slander with respect to any other Party and from publicly criticizing any other Party or a Party’s respective Affiliates and Associates.
Except as provided in Section 4, nothing in this Agreement shall prohibit or be construed to prohibit any Party or any of its Affiliates and Associates from commenting or presenting its views on any issue or matter that has been publicly
disclosed by the other Party and making any filings with the Securities and Exchange Commission which, based on the advice of counsel, any of the foregoing Parties is reasonably required to make in connection therewith. 

 6. Remedies. 

(a) Each of the Parties acknowledges and agrees that a breach or threatened breach by any Party may give rise to
irreparable injury inadequately compensable in damages, and accordingly each Party shall be entitled to seek injunctive relief to prevent a breach of the provisions hereof and to enforce specifically the terms and provisions hereof in any state or
federal court having jurisdiction, in addition to any other remedy to which such aggrieved Party may be entitled to at law or in equity, and without posting a bond or other security. 

(b) In the event a Party institutes any legal action to enforce such Party’s rights under, or recover damages for
breach of, this Agreement, the prevailing party or parties in such action shall be entitled to recover from the other party or parties all out-of-pocket costs and expenses, including but not limited to reasonable attorneys’ fees, court costs,
witness fees, disbursements and any other out-of-pocket expenses of litigation or negotiation, incurred by such prevailing party or parties in connection with such action. 
 7. Expenses. The Company shall reimburse the Dialectic Group for its reasonable, documented out-of-pocket fees and expenses incurred in connection with matters related to the 2012 Annual Meeting
and the negotiation and execution of this Agreement in the amount of $50,000 in the aggregate. 
 8. Releases.

 (a) The Dialectic Group hereby agrees for the benefit of the Company, and each controlling person, officer,
director, stockholder, agent, affiliate, employee, member, manager, partner, attorney, heir, assign, executor, administrator, predecessor and successor, past and present, of the Company (the Company and each such person being a “Company
Released Person”) as follows: 
 (i) The Dialectic Group, for themselves and for their members,
officers, directors, assigns, agents and successors, past and present, hereby agrees and confirms that, effective from and after the date of this Agreement, they hereby acknowledge full and complete satisfaction of, and covenant not to sue, and
forever fully release and discharge each Company Released Person of, and hold each Company Released Person harmless from, any and all rights, claims, warranties, demands, debts, obligations, liabilities, costs, attorneys’ fees, expenses, suits,
losses and causes of action of any nature whatsoever, whether known or unknown, suspected or unsuspected (collectively, “Claims”) and arising out of or related to the Company’s solicitation of nominees for directors and related
proxy solicitation in connection with the 2012 Annual Meeting (collectively, “Dialectic Claims”) that the Dialectic Group may have against the Company Released Persons, in each case with respect to events occurring prior to the date
of the execution of this Agreement. 
 (ii) The Dialectic Group understands and agrees that the Dialectic Claims
released by the Dialectic Group above include not only those Claims presently known but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would

 
otherwise come within the scope of the Dialectic Claims as described above. The Dialectic Group understands that they may hereafter discover facts different from or in addition to what they now
believe to be true, which if known, could have materially affected this release of Dialectic Claims, but they nevertheless waive any claims or rights based on different or additional facts. 

(b) During the Standstill Period, the Dialectic Group agrees that, except as counsel to the Dialectic Group or any of its
Affiliates or Associates reasonably determines is required in order for any member of the Dialectic Group to comply with its fiduciary duties to its investors, (i) no member of the Dialectic Group shall, without the consent of the Company,
instigate, solicit, assist, intervene in, or otherwise voluntarily participate in any litigation or arbitration in which the Company or any of its officers or directors are named as parties in a manner adverse to such parties; provided that the
foregoing shall not prevent any member of the Dialectic Group from responding to or complying with a validly issued legal process (including, without limitation, court order, deposition, interrogatories, requests for information or documents in
legal proceedings, subpoena, civil investigative demand or other similar process) and (ii) the Dialectic Group agrees to give the Company at least five business days notice of the receipt of any legal process prior to furnishing information
requested thereby regarding the Company or any of its officers or directors, to the extent that such notice is legally permissible. 
 (c) The Company hereby agrees for the benefit of the Dialectic Group, the 2012 Appointees, the Mutual Appointee and each controlling person, officer, director, stockholder, agent, affiliate, employee,
member, manager, partner, attorney, heir, assign, executor, administrator, predecessor and successor, past and present, of any member of the Dialectic Group or any 2012 Appointee or Mutual Appointee (the Dialectic Group, the 2012 Appointees, the
Mutual Appointee and each such person being a “Stockholder Released Person”) as follows: 
 (i)
The Company, for itself and for its affiliates, officers, directors, assigns, agents and successors, past and present, hereby agrees and confirms that, effective from and after the date of this Agreement, it hereby acknowledges full and complete
satisfaction of, and covenants not to sue, and forever fully releases and discharges each Stockholder Released Person of, and holds each Stockholder Released Person harmless from, any and all Claims of any nature whatsoever, whether known or
unknown, suspected or unsuspected and arising out of or related to the Dialectic Group’s notice to the Company of its intention to nominate new candidates to the Company’s Board at the 2012 Annual Meeting (collectively, the
“Company Claims”), that the Company may have against the Stockholder Released Persons, in each case with respect to events occurring prior to the date of the execution of this Agreement. 

(ii) The Company understands and agrees that the Company Claims released by the Company above include not only those
Claims presently known but also include all unknown or unanticipated claims, rights, demands, actions, obligations, liabilities, and causes of action of every kind and character that would otherwise come within the scope of the Company Claims as
described above. The Company understands that it may hereafter discover facts different from or in addition to what it now believes to be true, which if known, could have materially affected this release of the Company Claims, but it nevertheless
waives any claims or rights based on different or additional facts. 

 The Parties expressly acknowledge and agree that this Section 8 is also intended to
include in its effect, without limitation, all such claims which they do not know or suspect to exist at the time of the execution of this Agreement, and that this Agreement contemplates the extinguishment of those claims. 

(d) The Parties intend that the foregoing release be broad with respect to the matter released, provided, however, this
release of Dialectic Claims and Company Claims shall not include claims to enforce the terms of this Agreement; and provided further that nothing in the foregoing release shall be deemed or construed, now or hereafter, as limiting in any manner any
right of indemnification inuring to the benefit of any director or former director of the Company arising under the Company’s Certificate of Incorporation, Bylaws or otherwise. 

9. Notices. Any notice or other communication required or permitted to be given under this Agreement will be sufficient if
it is in writing, sent to the applicable address set forth below (or as otherwise specified by a Party by notice to the other Parties in accordance with this Section 9) and delivered personally or sent by recognized overnight courier, postage
prepaid, and will be deemed given (a) when so delivered personally, or (b) if sent by recognized overnight courier, one day after the date of sending. 
  

			
	If to the Company:	  	 Tellabs, Inc.
 One Tellabs
Center
 1415 West Diehl Road

Naperville, Illinois 60563
 Attention: James M.
Sheehan
 Telephone: (630) 798-8800

Facsimile: (630) 798-3231

		
	with a copy to:	  	 Vedder Price P.C.
 222 N.
LaSalle Street, Suite 2600
 Chicago, Illinois 60601
 Attention: Thomas P. Desmond or John T. Blatchford
 Telephone: (312) 609-7500

Facsimile: (312) 609-5005

		
	If to the Dialectic Group:	  	 Dialectic Capital Partners, LP

875 Third Avenue, 15th Floor
 New York, New York
10022
 Attention: John Fichthorn

Telephone: (212) 230-3220
 Facsimile:
(212) 980-2635

			
	with a copy to:	  	 Olshan Grundman Frome Rosenzweig & Wolosky LLP
 Park Avenue Tower
 65 East 55th Street
 New York, New York 10022
 Attention: Steve Wolosky, Esq.

Telephone: (212) 451-2333
 Facsimile:
(212) 451-2222

 10. Entire Agreement. This Agreement constitutes the entire agreement among the Parties
pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions of the Parties in connection with the subject matter hereof. 

11. Amendments; Severability; Counterparts; Facsimile. This Agreement may not be modified, amended, altered or supplemented
except upon the execution and delivery of a written agreement executed by all of the Parties. In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. This Agreement may be
executed in any number of counterparts and by the Parties in separate counterparts, and signature pages may be delivered by facsimile or electronic mail, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. 
 12. Governing Law; Jurisdiction. This Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to choice of law principles that would compel the application of the laws of any other jurisdiction. The Parties to this Agreement agree that
any suit, action or proceeding to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement may be brought only in a federal court located in Delaware or in any Delaware state court, and each of the
Parties irrevocably consents to the jurisdiction of such courts (and of the appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives any objection it may now or hereafter have to the laying of venue of any such suit,
action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. 
 13. Successors and Assigns. This Agreement shall not be assignable by any of the Parties. This Agreement, however, shall be binding on successors of the Parties. 

14. Further Action. Each Party agrees to execute such additional reasonable documents, and to do and perform such
reasonable acts and things necessary or proper to effectuate or further evidence the terms and provisions of this Agreement. 

[Signatures are on the following page.] 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year
first above written. 
  

			
	TELLABS, INC.
		
	By:	 	/s/ Robert W. Pullen
		 	Name: Robert W. Pullen
		 	Title: President, Chief Executive Officer and Director
	
	THE DIALECTIC GROUP:
	
	DIALECTIC CAPITAL PARTNERS, LP
		
	By:	 	/s/ John Fichthorn
		 	Dialectic Capital, LLC
		 	Its General Partner
	
	DIALECTIC OFFSHORE, L2, LTD.
		
	By:	 	/s/ John Fichthorn
		 	John Fichthorn, Director
	
	DIALECTIC ANTITHESIS OFFSHORE, LTD.
		
	By:	 	/s/ John Fichthorn
		 	John Fichthorn, Director
	
	DIALECTIC ANTITHESIS PARTNERS, LP
		
	By:	 	/s/ John Fichthorn
		 	 Dialectic Capital, LLC
 Its
General Partner

 
			
	DIALECTIC OFFSHORE, LTD.
		
	By:	 	/s/ John Fichthorn
		 	John Fichthorn, Director
	
	DIALECTIC CAPITAL MANAGEMENT, LLC
		
	By:	 	/s/ John Fichthorn
		 	 John Fichthorn
 Managing
Member, and Individually

		
	By:	 	/s/ Luke Fichthorn
		 	 Luke Fichthorn
 Managing
MemberInstrument Comprising A Guarantee in Favour of Willis Pension Trustees Limited

 Exhibit 10.1 

 
 

 
 DATED 30 MARCH 2012 
 THE COMPANIES LISTED IN SCHEDULE 1 
 AS GUARANTORS 

- AND - 
 WILLIS
PENSION TRUSTEES LIMITED, 
 AS TRUSTEE OF THE WILLIS PENSION SCHEME 

INSTRUMENT COMPRISING A GUARANTEE IN FAVOUR OF WILLIS 
 PENSION TRUSTEES LIMITED IN RESPECT OF THE WILLIS 
 PENSION SCHEME 

Travers Smith LLP 

10 Snow Hill London EC1A 2AL 
 www.traverssmith.com 

 THIS INSTRUMENT is made on 30 March 2012 

BY: 
  

	(1)	THE COMPANIES LISTED IN SCHEDULE 1 as guarantors (each a “Guarantor” and together, the “Guarantors”); and

  

	(2)	WILLIS PENSION TRUSTEES LIMITED (Company No: 543828) registered in England and Wales with registered number 543828 whose registered office is 51 Lime Street,
London EC3M 7DQ, as trustee of the Scheme (as defined below) (the “Trustee” and which term shall include any additional trustee(s) and/or successor trustee(s) of the Scheme). 

RECITALS 
  

	(A)	Willis Group Limited, a company registered in England and Wales with registered number 621757 whose registered office is 51 Lime Street, London EC3M 7DQ
(“Willis”), is principal employer of the Willis Pension Scheme (“Scheme”). 

  

	(B)	The participating employers from time to time of the Scheme are current or former members of the groups of companies now headed by Willis Group Holdings Public
Limited Company, a company incorporated in Ireland whose registered office is at Grand Mill Quay, Dublin 4, Ireland with registered number 475616 (the “Parent”). 

 

	(C)	The Trustee is the current trustee of the Scheme. 

  

	(D)	This Instrument may be executed in one or more counterparts, but shall not be deemed to be executed until each party has executed at least one counterpart. Each
such counterpart shall constitute an original of this Instrument, but all the counterparts shall together constitute one and the same instrument. 

  

	(E)	For the avoidance of doubt, this Guarantee is intended to replace, and does replace, the Guarantee dated 30 March 2012 and granted by the Guarantors in
favour of the Trustee (which was not validly executed by Willis Group Holdings Public Limited Company). 

 WHEREBY IT IS
AGREED as follows:- 
  

	1.	DEFINITIONS AND INTERPRETATION 

 Throughout this Instrument the following words and phrases shall have the following meanings:- 
 “Contribution Schedule” means the schedule of contributions adopted by the Trustee in accordance with Part 3 of the Pensions Act 2004, a copy of which is appended to this Instrument at
Appendix 1, as amended, varied, supplemented or replaced from time to time, as agreed by the Trustee and Willis, provided that any amendment, variation, supplement or replacement of the schedule of contributions shall not operate to extend the
Guarantee Term unless the parties to this Instrument so agree. 

  
 1 

 “Guarantee Term” means the period from the date and time this Instrument
becomes effective until midnight British Summer Time on 31 December 2017. 
 “Participating Employers”
means any member of the group of companies headed by the Parent, or successor of the Parent, that may formally participate in the Scheme from time to time. 
 “Principal Employer” means Willis and any successor as principal employer of the Scheme. 
 “Scheme” means the Willis Pension Scheme, a defined benefits occupational pension scheme which is governed by a Deed of Consolidation and Amendment dated 23 May 2008, as amended,
varied, supplemented or replaced from time to time. 
  

	2.	GUARANTEE, INDEMNITY AND DEFAULT INTEREST 

  

	2.1	In this Instrument “Obligations” means all moneys, obligations and liabilities (whether present or future, actual or contingent) to be paid,
performed or discharged by the Participating Employers to the Trustee and/or the Scheme under or pursuant to the terms of the Contribution Schedule. 

  

	2.2	Each Guarantor unconditionally and irrevocably jointly and severally guarantees to the Trustee the due and punctual payment, performance and discharge of the
Obligations. If and whenever the Participating Employers shall default in the due payment, performance or discharge of the Obligations each Guarantor shall pay, perform or discharge the Obligations in respect of which such default has been made
within 14 days of receiving a written demand from the Trustee to do so. 

  

	2.3	Each Guarantor agrees to indemnify and hold harmless the Trustee and/or the Scheme on demand from and against any loss incurred by the Trustee as a result of the
Obligations being or becoming void, voidable or unenforceable for any reason whatsoever, whether known to the Trustee or not. The amount of such loss shall be the amount which the Trustee and/or the Scheme would otherwise have been entitled to
recover from the Participating Employers if the Obligations had been enforceable in accordance with the terms of the Contribution Schedule, under statute or otherwise. 

 

	2.4	Each Guarantor shall from time to time on demand of the Trustee reimburse the Trustee for all costs and expenses (including legal fees) together with VAT thereon
incurred in or in connection with the preservation and/or enforcement of any of the rights of the Trustee and/or the Scheme under this Instrument. 

  

	2.5	Interest may be added by the Trustee to any Obligations which remain unpaid on the due date for payment, from such date until payment (whether before, on or at
any time after demand or judgment or the liquidation of the relevant Guarantor) at the rate of 2 per cent. per annum above the base lending rate for the time being of Barclays Bank PLC which interest may be compounded (whether before, on or at
any time after demand or judgment or the liquidation of the relevant Guarantor) by the Trustee with quarterly rests to the extent that it shall remain unpaid. 

  
 2 

	3.	NATURE OF THE GUARANTEE 

This Instrument is a continuing security and shall remain in force until all of the Obligations have been satisfied in full. The
obligations of each Guarantor under this Instrument shall not be (nor be construed so as to be) satisfied by any intermediate discharge or payment of or on account of the Obligations. No Guarantor shall be released or discharged from any of its
obligations under this Instrument, nor shall any of its obligations be diminished, prejudiced or affected by: 
  

	3.1	any variation, waiver or release of any of the Obligations; and/or 

  

	3.2	the release of any other Guarantor or any other person under the terms of any composition or arrangement with any relevant creditor; and/or

  

	3.3	any of the Obligations becoming unenforceable for any reason; and/or 

 

	3.4	any failure by the Trustee to take or enforce any security in respect of the Obligations; and/or 

 

	3.5	any time or indulgence given by the Trustee to (or any composition or other arrangement made with or accepted from) any person in respect of the Obligations;
and/or 

  

	3.6	any incapacity or change in the constitution of any Guarantor; and/or 

 

	3.7	any change to the rules of the Scheme or the trust deed governing the Scheme; and/or 

 

	3.8	any change to the identity of the Trustee and/or the Principal or Participating Employers; and/or 

 

	3.9	the Principal or Participating Employers or any Guarantor being wound up, entering administration or examination or receivership or liquidation or dissolution or
making any composition or arrangement with its creditors (whether or not sanctioned by the court and whether or not the Trustee has agreed to such compromise or arrangement) or undergoing a merger or amalgamation or change in its constitution;
and/or 

  

	3.10	a winding-up of the Scheme being commenced or triggered, whether under the rules of the Scheme or by the Pensions Regulator or otherwise; and/or

  

	3.11	any other act, event or omission which, but for this clause, would or might operate to impair (or offer a defence for) any Guarantor’s obligations under
this Instrument 

 and the Trustee may enforce the obligations of each Guarantor contained in this Instrument
without first taking any steps or proceedings against the Participating Employers or any other person or first making or filing any claim or proof in a winding-up or dissolution of the Participating Employers or any other person. This Instrument may
not be terminated by any Guarantor. 

  
 3 

	4.	RENEGOTIATION OF GUARANTEE 

No less than six months before the expiry of the Guarantee Term, the Guarantors will use their best endeavours to agree with the Trustee
terms for a replacement guarantee to be put in place for the benefit of the Trustee and the Scheme with effect from the end of the Guarantee Term, such replacement guarantee to be on substantially the same terms (save as to duration) as are set out
in this Instrument. 
  

	5.	REPRESENTATIONS AND WARRANTIES 

 Each Guarantor represents and warrants that: 
  

	5.1	it has full power and authority to enter into and perform this Instrument, has taken all necessary corporate or other action to authorise the execution, delivery
and performance of this Instrument and its obligations under this Instrument are valid, legally binding and enforceable; and 

  

	5.2	it has not taken from the Principal or Participating Employers any encumbrance, guarantee or other assurance in respect of or in connection with its obligations
under this Instrument. 

  

	6.	COVENANTS 

  

	6.1	The undertakings in this Clause 6 shall remain in force from and after the date of this Instrument and so long as any Obligation is outstanding or any amount is
outstanding under this Instrument. 

  

	6.2	Each Guarantor shall from time to time on the request of the Trustee, furnish the Trustee (or procure that the Trustee shall be furnished) with such information
about the business, operations and financial condition of the relevant Guarantor and the Principal or Participating Employers as the Trustee may reasonably require (for the avoidance of doubt this may include audited yearly and half yearly
accounts). 

  

	6.3	Each Guarantor undertakes that until all the Obligations have been satisfied in full, that Guarantor shall not exercise any right of subrogation, indemnity, set
off or counterclaim against the Participating Employers, nor claim payment of moneys for the time being due to it by the Participating Employers by reason of the performance of it of its obligations under this Instrument, nor claim or prove in a
winding-up or dissolution of the Participating Employers in respect of any such sum in competition with the Trustee and/or the Scheme. 

  

	7.	PAYMENTS 

 All payments to
be made to the Trustee under this Instrument shall be made free and clear of and without any deduction for or on account of any tax, withholding, charges, set-off or counterclaim and shall be made in pounds sterling. If a Guarantor is required by
law to make 

  
 4 

 
a deduction or withholding from any payment made hereunder then the sum payable by the relevant Guarantor in respect of which such deduction or withholding is required to be made shall be
increased to the extent necessary to ensure that, after the making of such deduction or withholding, the Trustee receives and retains (free from any liability in respect of any such deduction or withholding) a net sum equal to the sum which they
would have received and so retained had no such deduction or withholding been made or been required to be made. If a Guarantor makes any payment under this Instrument in respect of which it is required by law to make any deduction or withholding it
shall pay the full amount to be deducted or withheld to the relevant taxation or other authority within the time allowed for such payment under applicable law and shall deliver to the Trustee within thirty days after it has made such payment to the
applicable authority an original receipt or other appropriate evidence issued by such authority evidencing the payment to such authority of all amounts so required to be deducted or withheld from such payment. 

 

	8.	EVIDENCE OF DEBT 

 A
certificate by the Trustee as to any sum payable to it under this Instrument shall, in the absence of manifest error, be conclusive for the purposes of this Instrument and prima facie evidence in any legal action or proceedings arising out of or in
connection with this Instrument. 
  

	9.	NO WAIVER 

 No failure or
delay by the Trustee in exercising any right or remedy shall operate as a waiver thereof, nor shall any single or any partial exercise or waiver of any right or remedy preclude its further exercise or the exercise of any other right or remedy as
though no waiver had been made and no relaxation or indulgence granted. 
  

	10.	BENEFIT OF GUARANTEE 

This Instrument enures to the benefit of the Trustee and its lawful successors as trustees of the Scheme. 

 

	11.	SETTLEMENTS 

 Any
settlement or discharge under this Instrument between the Trustee and/or the Scheme and any Guarantor shall be conditional upon no security or payment to the Trustee and/or the Scheme by the relevant Guarantor or any other person being avoided or
set aside or ordered to be refunded or reduced by or pursuant to any applicable law or regulation and, if such condition is not satisfied, the Trustee and/or the Scheme shall be entitled to recover from the Guarantors and demand the value of such
security or the amount of any such payment as if such settlement or discharge had not occurred. 
  

	12.	NOTICES 

 Any demand,
notice or other communication to be made on or delivered to a Guarantor shall 

  
 5 

 
be marked for the attention of the Company Secretary thereof (or, if there is no Company Secretary, any other officer thereof) and made by fax or otherwise in writing to the registered office
address for the relevant Guarantor given in Schedule 1. 
  

	13.	NO THIRD PARTY RIGHTS 

Without prejudice to Clause 10, no term of this Instrument shall be enforceable by a third party under the Contracts (Rights of Third
Parties) Act 1999. 
  

	14.	SERVICE OF PROCESS 

  

	 	14.1.1	Each Guarantor (which is not incorporated in England and Wales) irrevocably appoints Willis Group Limited (for the attention of the Company Secretary) as its
agent under this Instrument for service of process in any proceedings before the English courts. 

  

	 	14.1.2	If any person appointed as process agent is unable for any reason to act as agent for service of process, the relevant Guarantor must promptly appoint another
agent on terms acceptable to the Trustee. Failing this, the Trustee may appoint another agent for this purpose. 

  

	 	14.1.3	Each Guarantor agrees that failure by a process agent to notify it of any process will not invalidate the relevant proceedings. 

 

	 	14.1.4	This Clause does not affect any other method of service allowed by law. 

 

	15.	LAW AND JURISDICTION 

  

	15.1	This Instrument and the rights and obligations of the parties hereto shall be governed by and construed in accordance with English law. 

 

	15.2	Each Guarantor agrees for the benefit of the Trustee that the courts of England shall have exclusive jurisdiction to hear and determine any suit, action or
proceeding, and to settle any dispute, which may arise out of or in connection with this Instrument and, for such purposes, irrevocably submits to the exclusive jurisdiction of such courts. 

 

	15.3	Each Guarantor irrevocably waives any objection which it might now or hereafter have to the courts referred to in Clause 15.2 being the forum to hear and
determine any suit, action or proceeding, and to settle any dispute, which may arise out of or in connection with this Instrument and agrees not to claim that any such court is not a convenient or appropriate forum. 

 

	15.4	Each Guarantor hereby consents generally in respect of any legal action or proceeding arising out of or in connection with this Instrument to the giving of any
relief or the issue of any process in connection with such action or proceeding including, without limitation, the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment
which may be made or given in such action or proceeding. 

  
 6 

	15.5	Each party waives any right it may have to a jury trial of any claim or cause of action in connection with this Instrument or any transaction contemplated by
this Instrument. This Instrument may be filed as a written consent to trial by court. 

  

	16.	LIMITATION 

Notwithstanding any term or provision of this Instrument to the contrary, the maximum aggregate amount for which Willis North America Inc.
(“Willis-NA”) shall be liable hereunder shall not exceed the maximum amount for which Willis-NA can be liable without rendering this Instrument, as it relates to Willis-NA, subject to avoidance under applicable law relating to
fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent Transfer Act of the State of Delaware and Section 548 of title 11 of the United States Code or any applicable provisions of comparable law). 

IN WITNESS whereof each Guarantor and the Trustee have duly executed this Instrument as a deed and intend to deliver and hereby delivers the same
on the date written above. 

  
 7 

 SCHEDULE 1 
 Guarantors 
  

							
	 Company
	  	 Jurisdiction of
 incorporation
	  	 Registered number
	  	 Registered address

	 Willis Group Holdings Public Limited Company
	  	Ireland	  	475616	  	 Grand Mill Quay
 Barrow
Street
 Dublin 4

Ireland

				
	 Trinity Acquisition plc
	  	England and Wales	  	03588435	  	 51 Lime Street

London
 EC3M 7DQ

				
	 TA I Limited
	  	England and Wales	  	03588080	  	 51 Lime Street

London
 EC3M 7DQ

				
	 Willis Group Limited
	  	England and Wales	  	0621757	  	 51 Lime Street

London
 EC3M 7DQ

				
	 Willis Investment UK Holdings Limited
	  	England and Wales	  	06677275	  	 51 Lime Street

London
 EC3M 7DQ

				
	 Willis North America Inc.
	  	Delaware	  	0249202	  	 26 Century Blvd
 Nashville, TN
37214
 USA

				
	 Willis Netherlands Holdings B.V.
	  	The Netherlands	  	3437289	  	 Centerpoint
 1 Hoogoorddreef
60
 1101 BE Amsterdam Zuidoost, Netherlands

  
 8 

 SIGNATURES 

 

			
	THE GUARANTORS	  	
		
	Given under the Common Seal of	  	)
	WILLIS GROUP HOLDINGS	  	)
	PUBLIC LIMITED COMPANY	  	)
	and delivered as a deed by:	  	)
		
		  	/s/ Michael Neborak
		  	Chief Financial Officer
		
		  	/s/Adam Ciongoli
		  	Director/Secretary
		
	EXECUTED as a deed by	  	)
	TRINITY ACQUISITION PLC	  	)
	acting by	  	)
		
	Director	  	/s/ S.E. Wood
		  	S.E. Wood
		
	Witness signature	  	/s/ Helen Mangan
		
	Witness name	  	Helen Mangan
		
	Witness address	  	51 Lime Street, London EC3M 7DQ
		
	EXECUTED as a deed by	  	)
	TA I LIMITED	  	)
	acting by	  	)
		
	Director	  	/s/ S.E. Wood
		  	S.E. Wood
		
	Witness signature	  	/s/ Helen Mangan
		
	Witness name	  	Helen Mangan
		
	Witness address	  	51 Lime Street, London EC3M 7DQ

  
 9 

			
	EXECUTED as a deed by	  	)
	WILLIS GROUP LIMITED	  	)
	acting by	  	)
		
	Director	  	/s/ S.E. Wood
		  	S.E. Wood
		
	Witness signature	  	/s/ Helen Mangan
		
	Witness name	  	Helen Mangan
		
	Witness address	  	51 Lime Street, London EC3M 7DQ
		
	EXECUTED as a deed by	  	)
	WILLIS INVESTMENT UK HOLDINGS	  	)
	LIMITED	  	)
	acting by	  	)
		
	Director	  	/s/ S.E. Wood
		  	S.E. Wood
		
	Witness signature	  	/s/ Helen Mangan
		
	Witness name	  	Helen Mangan
		
	Witness address	  	51 Lime Street, London EC3M 7DQ
		
	EXECUTED as a deed by	  	)
	WILLIS NORTH AMERICA INC.	  	)
	acting by	  	)
		
	Authorised Signatory	  	/s/ Adam Ciongoli
		
	Witness signature	  	/s/ Faith Swennes
		
	Witness name	  	Faith Swennes
		
	Witness address	  	One World Financial Center, 200 Liberty Street, New York, NY 10281

  
 10 

			
	EXECUTED as a deed by	  	)
	WILLIS NETHERLANDS HOLDINGS B.V.	  	)
	acting by	  	) /s/ P.C.G. Van Duuren
		
	Authorised Signatory	  	P.C.G. Van Duuren
		
	Witness signature	  	/s/ Stefanie van der Duijis
		
	Witness name	  	Stefanie van der Duijis
		
	Witness address	  	1100 AS Amsterdam Zuidoost

 THE TRUSTEE 
 EXECUTED as a DEED by 
 WILLIS PENSION TRUSTEES LIMITED 

acting by a Director and its Secretary: 
  

	
	/s/ K. Abbott
	Director
	
	/s/ Alistair Peel
	Director/Secretary
	For and on behalf of
	Willis Corporate Secretarial Services Limited

  
 11 

 APPENDIX 1 
 Contribution Schedule 

  
 12

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