Document:

Prepared by R.R. Donnelley Financial -- Executive Benefit Substitution Agreement

  
 EXHIBIT 10.17 
  
 STATE OF GEORGIA 
  
 COUNTY OF GWINNETT 
  
 EXECUTIVE BENEFIT SUBSTITUTION AGREEMENT 
  
 This agreement is entered into as of the 27th day of April, 2001, by and between Scientific-Atlanta, Inc. (the “Company”) and James F. McDonald (the “Participant”). 

 
 WITNESSETH: 
  
 WHEREAS, Participant is employed in an executive position with the Company; and 
  
 WHEREAS,
the Board of Directors of the Company has adopted that certain Scientific-Atlanta Supplemental Executive Retirement Plan (the “SERP”) pursuant to an amended and restated plan document dated June 14, 2000; and 
  
 WHEREAS, the Participant and the Company have determined and hereby acknowledge that as of December 31, 2000, Participant had accrued
under the SERP the right to receive a retirement benefit payable according to various options set forth in the SERP including, without limitation, a single lump sum payment in the amount of Six Million and no/100 Dollars ($6,000,000.00) (the
“Accrued SERP Benefit”); and 
  
 WHEREAS, the Participant and the Company desire for the Company to provide
certain assistance to The McDonald Family Insurance Trust under agreement dated April 20, 2001 (the “Owner”) in purchasing certain life insurance policies insuring the lives of Participant and his spouse, in substitution for
Participant’s Accrued SERP Benefit; and 
  
 WHEREAS, the Company and the Owner have entered into that certain
“Split Dollar Agreement” of even date herewith for the purchase of certain life insurance policies identified therein (the “Policies”). 
  
 NOW, THEREFORE, in consideration of the premises, the promises herein contained, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the
parties hereto, intending to be legally bound, agree as follows: 
  
 1.    The Company shall
remit the scheduled premiums on the Policies as set forth in the Split Dollar Agreement. Upon the payment by the Company of each life insurance premium pursuant to the Split Dollar Agreement, Participant will be deemed to have
 

 
waived and released a portion of the Accrued SERP Benefit, and the Accrued SERP Benefit shall be reduced by an amount equal to 
  

	•
	 
	the total premiums paid by the Company, plus 
 

  

	•
	 
	interest on all premiums paid at the rate of five percent (5.00%) per annum, compounded annually from the date of the premium payment, less 

  

	•
	 
	the cash surrender value of the Policies on the date of such premium payment, less 
 

  

	•
	 
	the aggregate amount of SERP reductions pursuant to this agreement prior to the date of such premium payment. 
 

  
 2.    In the event that the Split Dollar Agreement is terminated prior to the earlier of (a) the payment of the last
scheduled premium under the Split Dollar Agreement or (b) Participant’s retirement (as defined in the SERP), the Participant will be deemed to have waived and released a portion of the Accrued SERP Benefit, determined as follows: 

 

	•
	 
	the total premiums paid by the Company, plus 
 

  

	•
	 
	interest on all premiums paid at the rate of five percent (5.00%) per annum, compounded annually from the date of the premium payment, less 

  

	•
	 
	the cash actually received by the Company as a result of the termination of the Split Dollar Agreement, less 
 

  

	•
	 
	the aggregate amount of SERP reductions pursuant to this agreement prior to the date of such termination. 
 

  
 Thereafter, neither party to this agreement shall have any further obligation hereunder. 
  
 3.    If the Split Dollar Agreement is not terminated as set forth above, then Participant will be deemed to have waived and released the entirety of
the Accrued SERP Benefit, and the Accrued SERP Benefit shall be reduced to zero, upon the earliest to occur of: (a) an agreement between the Company and the Owner to change the premium payment schedule under the Split Dollar Agreement in any way
that results in the last scheduled premium being paid earlier than as currently set forth in the Split Dollar Agreement; (b) the payment of the last scheduled premium under the Split Dollar Agreement or (c) Participant’s retirement (as defined
in the SERP). 
  
 4.    Participant reserves his rights to, and this agreement shall neither
reduce nor otherwise have any effect upon, any benefits accrued or accruing to the benefit of Participant under the SERP other than the Accrued SERP Benefit including, without limitation, any benefit accruing on or after January 1, 2001.

  
 5.    This agreement may not be amended, altered or modified, except by a written instrument
signed by the parties hereto, or their respective successors or assigns, and may not otherwise be terminated except as provided herein. 
  
 6.    This agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns, and to Participant, his heirs, successors and assigns. 

  
 7.    Any notice, consent, or demand required or permitted to
be given under the provisions of this agreement must be in writing, and must be signed by the party giving or making the same. if such notice, consent or demand is mailed to a party hereto, it shall be sent by united states certified mail, postage
prepaid, addressed to such party’s last known address. the date of such mailing shall be deemed the date of notice, consent, or demand. 
  
 8.    This agreement, and the rights of the parties hereunder, shall be governed by and construed in accordance with the laws of the state of Georgia. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this agreement, in duplicate, as of the day and year first above written.

  
 
	 Company:
  
 SCIENTIFIC-ATLANTA, INC.
 
	 
	 By:
 	 	 /S/    BRIAN C.
KOENIG        
 

	  	 	 Brian C. Koenig
 Senior Vice
President
 Human Resources
  
 
	 Participant:
 
	 
	  	 	 /S/    JAMES F. MCDONALD        
 

	  	 	 James F. McDonaldPrepared by R.R. Donnelley Financial -- Letter of Assignment

  
 EXHIBIT 10.18 
  
 Letter of Assignment 
  
 December 14, 2001 

 
 Mr. Conrad Wredberg 
 1235 Bay Pointe Terrace 
 Alpharetta, GA 30005 
  
 Dear Conrad: 
  

This letter confirms our mutual understanding of the terms and conditions applying to your assignment with Scientific-Atlanta as Executive Vice President,
International Markets based in Brussels, Belgium reporting to Jim McDonald. The anticipated duration of this assignment is 24 months, but the duration of this assignment may be decreased or extended depending on business requirements. Such
employment is subject, of course, to medical clearances, foreign government entry documents or visas, and your acceptance of the terms and conditions outlined in this letter. The effective date of this assignment will be in the early January 2002
time frame. Your point of origin has been designated as Atlanta, Georgia. 
  
 Your compensation and benefits package
is designed to provide you with a level of income and benefits that is comparable to those you would have received in the United States. We have also taken into consideration the additional costs that you may reasonably anticipate as a result of
living in Belgium. 
  
 The terms and conditions outlined in this letter will be in effect only for the period of this
international assignment. At the end of this assignment, if you are still employed by the Company, you will return to the Company at the location designated by the Company, at your base salary in effect at that time, and will stop receiving
premiums, allowances, and differentials provided under the Company’s Expatriate Compensation Program. 
  
 Base Salary & Benefits 
  
 Your base salary will be $510,000 per year. 

 
 You will remain on the US payroll and continue to be eligible to participate in the Scientific-Atlanta benefits plan, including
medical, dental, and life insurance, paid vacation, paid holidays, participation in the 401 (k) plan, the company pension plan, the deferred compensation plan, the Supplemental Executive Retirement Plan, and the Severance Protection Agreement in the
event of a change of control. However, the medical and dental plan that you will participate in while on this assignment is specially designed for employees and their families on international assignment. You will receive information describing the
benefits provided in this plan soon. 
  
 The company will be providing you with a company paid vehicle for you while
you are on this assignment. 

 Taxes 
  
 The policy regarding taxes is that your tax obligation will be equalized so you are paying approximately the same taxes you would have paid had you remained in the US at the same salary, with a
hypothetical US income tax will be deducted from your total salary. 
  
 The accounting firm of Arthur Andersen will
assist in the determination of your hypothetical withholding, as well as the preparation and filing of your US and Belgium income tax returns while on this assignment. 
  
 International Service Premium 
  
 While on this assignment in Belgium, you will receive an International Service Allowance equal to 15% of your base salary as an incentive to undertake this international assignment. The premium will be payable at the same time as
regular base pay as a separate element of compensation. 
  
 Hardship Allowance (if applicable) 

 
 Conditions in Belgium do not warrant your receiving a hardship allowance. 
  

Housing and Goods & Service Allowance 
  
 The Company will pay directly the actual cost of your housing in Brussels up to a maximum of $2,500 US per month. There will not be a monthly housing deduction made from your pay. 
  
 A goods and services differential will be paid to compensate you for the higher costs of goods and services in Brussels as compared to the
United States. At present, the goods and services index assigned to Brussels is 138.7587. The amount that an American at your salary level would normally spend on goods and services in the United States (often called spendable income) would be
$11,555 per month. Thus, your monthly goods and services differential, if the same index is still in effect when your differential commences, will be $4,478 as outlined below: 
  
 
	 Spendable Income
 	  	 $
 	 11,555
 	  
 
	 Goods and Services Index
 	  	  
 	 138.7587
 	  
 
	 Monthly Goods and Services Differential
 	  	 $
 	 4,478
 	  (see below)
 

 
  
 Note: Differential = (index-100/100) x Spendable Income 

 
 The Goods & Service Allowance includes transportation costs. Since the company will be providing you with a company paid
vehicle for you while you are on this assignment, your Goods & Service Allowance will be reduced by 13.7%, to $3,865 per month. 
  
 The differential, affected by inflation in the host location and in the United States, and by exchange rates, will be reviewed periodically. 

 Vaccinations and Inoculations (if applicable) 
  
 In the event it is necessary for you and members of your family to have vaccinations and inoculations which are required by law and as specified by your medical doctor
prior to departing from Atlanta, these will be provided at Company expense. 
  
 Relocation to Begin the
International Assignment 
  
 Scientific Atlanta will provide you with the following relocation assistance to
Belgium: 
  

	 	•
	 
	We will pay or reimburse you for the actual costs associated with moving required household goods and personal effects from Atlanta to Brussels, as well as the
travel costs to Brussels for you and Norma to begin this assignment. 
 

  

	 	•
	 
	We will pay or reimburse you for the closing costs and the real estate commission incurred (at the locally prevailing rate but not to exceed seven percent)
related to the sale of your house in Atlanta. In the event your house in Atlanta does not sell within 120 days of your transfer date, Scientific-Atlanta will offer to purchase your home through a third party relocation firm under contract to
Scientific-Atlanta. The offer to purchase your home will be based on the fair market value of your home, as determined by the average of two independent appraisals obtained by the third party relocation firm. 
 

 

	 	•
	 
	Actual and reasonable temporary living expenses in Brussels for up to a maximum of 60 days, if necessary. 
 

  

	 	•
	 
	In the event you elect to sell your personal automobile(s), the Company will protect you on the loss, if any, resulting from the forced sale prior to your
expatriation for up to two personal automobiles. The Company will pay the difference between the actual sales price and the official Kelly Blue Book or the N.A.D.A. Used Car Guide retail price (less reconditioning) for the make, model
and year of car. You are expected to secure the most favorable price; reasonable advertising costs will be reimbursed. 
 

  

	 	•
	 
	All taxable relocations assistance will be grossed-up for tax purposes. 
 

  
 In addition, you will receive a miscellaneous relocation payment of one month’s base salary, less appropriate taxes and withholdings. This allowance is designed to aid
in the payment of relocation expenses such as the purchase of luggage, small electrical appliances, hardware, and other incidental expenses related to your move. 
  
 Relocation back to the US at the end of the International Assignment 
  
 Scientific Atlanta will provide you with the following relocation assistance from Belgium back to the US at the end of your international assignment: 
  

	 	•
	 
	We will pay or reimburse you for the actual costs associated with returning your household goods and personal effects from Brussels to Atlanta, or a mutually
agreed upon alternative location, as well as the travel costs to this location for you and Norma. 
 

  

	 	•
	 
	We will pay or reimburse you for reasonable and actual home purchase closing costs in Atlanta or a mutually agreed upon alternative location, provided it is
within one year of 
 

	 	
the effective date of transfer back from your assignment (does not include normal ongoing homeowners expenses required to be paid in advance at closing such as property taxes, prorated interest,
mortgage insurance and hazard insurance). 
 

  

	 	•
	 
	Actual and reasonable temporary living expenses in Atlanta or a mutually agreed upon alternative location for up to a maximum of 30 days, if necessary.

 

  
 Home Leave 
  
 You will be eligible for two annual home leave trips (actual and reasonable round trip airfare for you and Norma) per year to the U.S. or other mutually agreed upon
location while on this assignment in Brussels. 
  
 Rest & Relaxation Leave 
  
 Current conditions in Brussels do not warrant a Rest & Relaxation leave while on this assignment. 
  
 Letter of Assignment 
  
 In the event any provision of this letter shall be held invalid or unenforceable by reason of law, such invalidity or unenforceability shall attach only to such provisions and shall not affect or render invalid or
unenforceable any other provision of this letter. This letter sets forth the entire agreement of the parties including any prior agreements or representations. This agreement can only be modified by an agreement in writing signed by the employee and
an authorized representative of the Company. 
  
 Conrad, please let me know if you have any questions, or need
additional information. 
  
 Sincerely, 
  
 /s/ BRIAN KOENIG 
  
 Brian Koenig 
 Senior Vice President 
 Human Resources 
  
 I hereby agree and accept
this assignment as outlined above. 
  
 /s/      CONRAD
WREDBERG         
 
                Conrad Wredberg

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