1. 2011 Enhanced Early Retirement Program U.S. & Canada
Program Overview for Eligible Employees
April 2011

2. Contents Business Objectives Program Overview Program Benefits
Program Timeline
Support Resources
Talking Points
There are a number of topics that we’ll cover during the session and we’ll also leave time for questions.
The information we’ll provide is based on the role we’re asking of HR, which is to answer basic questions employees or leaders may have regarding the program.

3. Key Drivers of the Enhanced Early Retirement Offering
Part of key, targeted moves across the company as we align operations in support of Cisco's network- centric platform strategy
These moves will include business decisions as we assess our portfolio strategy, simplify operations, and pursue expense management efforts.
2009 program was very well-received by employees, and requests have been made to consider offering a similar opportunity.
The program is completely voluntary, and designed to provide a level of security to those who choose to take advantage of it.

4. EER Program Eligibility
U.S.- & Canada-based employees
Director-level and below
Excluded positions: VP and above (grade 900 and above), Distinguished Engineers, Fellows, and Sales’ Chairman’s Club winners from FY07 through FY10
Minimum age of 50 with the combination of age and service totaling at least 60 as of July 8, 2011
There are no exceptions to eligibility criteria
No benefits are payable unless the eligible employee timely executes and delivers the General Release and it becomes irrevocable

5. EER Program Benefits Element Description Severance US Employees:
Non-commission incentive employees: One year’s regular base pay plus annual incentive target amount (i.e., one year’s total target cash)
Commission incentive employees: 80% of one year’s regular base pay, plus 80% of annual target commissions (i.e., 80% of one year’s total target cash)
Taxed at the Federal supplemental tax rate; not grossed up
Canada Employees:
In addition to the above, for employees with more than 12 full years of service, an additional 0.5 month of base salary plus 0.5 month of annual incentive target amount for each full year of service above 12 years of service as of July 8, 2011; to be calculated at 80% for commissionable employees
Health Benefits
Lump sum payment equivalent to 24 months of current medical, dental, and vision coverage
Amount is determined for each participant based upon current coverage elections; provided on a grossed-up tax basis
This slide represents the benefits that will be provided to employees who accept the program.
Severance:
This will include a 12 months of base salary for non-commissioned employees and 12 months at 80% total target cash for Sales employees. This will be paid as a lump sum when the employee exits Cisco.
Participants will also be paid in a lump sum any accrued and unused PTO through their exit date.
Health Benefits:
Participants will receive a lump sum payment which is the equivalent of 24 months of their current medical, dental and vision coverage. This will be based on the premium costs for the employee at the beginning of the election period and will be different for each employee.
The lump sum will be provided on a grossed-up tax basis
401K:
Participants will receive a one time 401k offset payment that equals 2 years of company match. This contribution will not be grossed-up for taxes and will be paid on a taxable basis.
Stock:
Participants will have a 24 month window to exercise any vested options that are under water at exit.
There will not be an extended vesting period for restricted stock as it has immediate value, nor will there be an acceleration of vesting for any equity awards.
Outplacement
Participants will receive 6 months of outplacement service and counseling. They must begin the counseling within 60 days after their termination from Cisco.

6. EER Program Benefits Element Description 401(k)
One-time payment equal to approximately 2 years of company matching contributions, paid as a lump sum outside of the 401(k) Plan
Up to $245K total target cash (base plus target commission) * 4.5% match * 2
Calculated at 6% vs. 4.5% for certain former Scientific-Atlanta employees
Similar calculation, different limits, for Canada’s RRSP
The 401(k) payment will not be grossed-up for taxes. Taxed at the U.S. Federal supplemental tax rate
Stock
24-month window after termination (or until expiration date of grant less than 24 months) to exercise any vested options that are underwater at termination.
No extended vesting period for restricted stock
No acceleration of vesting for any equity-based programs.
Vested “in-the-money” stock options are exercisable pursuant to the terms of the stock option documents (i.e., no extension).
This slide represents the benefits that will be provided to employees who accept the program.
Severance:
This will include a 12 months of base salary for non-commissioned employees and 12 months at 80% total target cash for Sales employees. This will be paid as a lump sum when the employee exits Cisco.
Participants will also be paid in a lump sum any accrued and unused PTO through their exit date.
Health Benefits:
Participants will receive a lump sum payment which is the equivalent of 24 months of their current medical, dental and vision coverage. This will be based on the premium costs for the employee at the beginning of the election period and will be different for each employee.
The lump sum will be provided on a grossed-up tax basis
401K:
Participants will receive a one time 401k offset payment that equals 2 years of company match. This contribution will not be grossed-up for taxes and will be paid on a taxable basis.
Stock:
Participants will have a 24 month window to exercise any vested options that are under water at exit.
There will not be an extended vesting period for restricted stock as it has immediate value, nor will there be an acceleration of vesting for any equity awards.
Outplacement
Participants will receive 6 months of outplacement service and counseling. They must begin the counseling within 60 days after their termination from Cisco.

7. EER Program Benefits Element Description Outplacement
6 months of outplacement service & counseling to begin within 60 days of date of termination.
No payment in lieu of participation.
This slide represents the benefits that will be provided to employees who accept the program.
Severance:
This will include a 12 months of base salary for non-commissioned employees and 12 months at 80% total target cash for Sales employees. This will be paid as a lump sum when the employee exits Cisco.
Participants will also be paid in a lump sum any accrued and unused PTO through their exit date.
Health Benefits:
Participants will receive a lump sum payment which is the equivalent of 24 months of their current medical, dental and vision coverage. This will be based on the premium costs for the employee at the beginning of the election period and will be different for each employee.
The lump sum will be provided on a grossed-up tax basis
401K:
Participants will receive a one time 401k offset payment that equals 2 years of company match. This contribution will not be grossed-up for taxes and will be paid on a taxable basis.
Stock:
Participants will have a 24 month window to exercise any vested options that are under water at exit.
There will not be an extended vesting period for restricted stock as it has immediate value, nor will there be an acceleration of vesting for any equity awards.
Outplacement
Participants will receive 6 months of outplacement service and counseling. They must begin the counseling within 60 days after their termination from Cisco.

8. Other Key Program Details
Decision Window: One-time consideration period to participate in the program; the decision period: May 10 to June 24, 2011
Future Offering: The company does not foresee using this EER program or voluntary programs of a similar nature, or providing the same benefits provided in this EER program in the future, although the company reserves the right to do so should business conditions require
Two-Year Rehire Restriction: A condition of receiving the EER benefits is that employees will be ineligible to return to Cisco as a regular employee, contractor, or consultant for a minimum time period of two years after termination; payments under the EER program will be subject to forfeiture if an employees accepts a position in any capacity before the two-year period

9. Program Timeline Date Activity
April 26
Program announcement to eligible employees
EER Website launch
May 10
Eligible employees begin to receive individual packages, which will include the General Release document
May 11
Employee WebEx informational Sessions begin. Spouse or partner invited.
25 sessions offered through May 25
June 24
Employee decision deadline; the General Release must be sent via a traceable overnight delivery service or traceable overnight express mail and postmarked on June 24, 2011
June 28
Transition training will be offered to employees who elect the program; manager training will also be offered.
July 8
Employee last day
We’ve highlighted a number of key events over the course of the program.
It is important that managers not try to extend employees, or bring them back on contract. This will terminate the employees benefits under the program.