1. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 1 Cisco Global Relocation Program – Focus on Policies Shauna Page – Global Relocation Engagement Manager - Emerging and European Markets

2. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 2 Agenda  Policy types  International Assignment – components and rationale  International Transfer Policies  Q&A

3. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 3 Relocation Types  IA (International Assignment) – On Company’s Request – Follow Home Benefit Plan – International Medical Insurance –Temporary in Nature Short Term (STIA) – 4 to 18 months Long Term (LTIA) – 2 to 5 years  IT (International Transfer) – Long Term Career Plan in the New Location – Follow Benefit, Payroll in the New Location IT Lump Sum IT Managed Move IT Local Plus IT Returnee IT Personal

4. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 4 International Assignment  A long term international assignment is normally leveraged to fill a role with leadership talent to meet a long term business need that requires continuity of 2 to 5 years in the role to meet the objectives.  Business Drivers  Start-up of a function or the start up of a new location/new legal entity  A critical long term business initiative  Business turnaround  Relationship building with government  Talent Considerations  Establish or build a presence in a new location  Start or build a function in a new or existing location  Identify and develop local talent to be a successor  Gain needed experience and development to be positioned as a global leader

5. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 5 International Assignment Benefit Aligned with home payroll and retirement plan. Global medical coverage.  Relocation Assistance – Visa Assistance – Destination Service Househunting Trip Settling Assistance – Household Goods Shipment – Storage at Home location – Temporary Housing (60 days) – Tax Assistance – Repatriation Assistance  Assignment Related Allowances – Host Housing Allowance – Education Allowance – Transportation Allowance – Annual Home Leave Allowance – Utility Allowance – G&S Differential – Miscellaneous Relocation Allowance (Equivalent to purchasing Power of USD 15,000) **Average Cost for a Tier (1) 2-year LTIA – USD 1,500,000

6. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 6 IT Personal Move Features  This is an employee- initiated move for personal reasons.  Employee is responsible for all expenses related to the transfer. Benefits  Visa Services  Tax Services *** Estimated cost for IT Personal Move – USD 6,000 to USD10,000

7. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 7 IT Lump Sum Move Features  Employee manages all other assignment related costs not included in the benefit  Lump sum relocation allowance provided to offset costs incurred while moving  Allowance amount is a factor of family size and base salary of new position. Benefits  Tax Services  Visa Services  Enroute Travel Optional (If approved)  Destination Service (house hunting trip)  Temporary Living up to 30 days Family SizeAllowance 3 or less3 X new monthly base salary 4 or more3.5 X new monthly base salary ***Average cost – USD 12,000 to USD 25,000 + lump sum

8. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 8 IT Managed Move Features  More expensive option than IT Personal Move or IT Lump Sum  A company managed move  Extended benefits & reduced relocation allowance Benefits  Destination Services including look- see trip  House lease cancellation reimbursement (Home Location)  Loss from sale of automobile in Home Location  Shipment – Air & Surface  Temporary living up to 60 days  Enroute Travel  Tax Services  Visa Services  Relocation Allowance of USD 7,500 ***Average Cost – USD 100,000

9. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 9 IT Returnee Features  Used for returning citizens  Have been away from origin country for at least 3 years  Long term career plan in host location  Transition support  Declining allowances for 2 years (100%-50% of allowance base) Benefits  Allowance base: 50% of IA Housing, Utilities & Education  Housing and Vehicle assistance in current location  Shipment – Air & Surface  Pet shipment allowance (subject to approval and local regulation)  Destination Services  Temporary Living up to 60 days  Relocation Allowance of USD15,000 (1 payment)  Enroute Travel  Tax Services  Visa Services ***Average Cost – USD 350,000 to USD 450,000

10. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 10 Localisation Policy  Only applicable to employees currently on assignment  Phased approach to provide financial support from assignee to local status.  Employee transfers onto local payroll and benefits.  2 year localisation – 100% of assignment allowances in Year one/50% in year two.  3 Year localisation – 100% of assignment allowances in Year one/66% in Year two and 33% in year three ***Average Cost – USD 750,000/1,200,000

11. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 11 IT Local Plus Features  Used for Employees who are Non-citizens hired or transferred, on permanent basis  Provide transition support  On going Allowance for 3 Years Benefits  Allowance Base – 50% of IA Housing, Utilities & Education, Home Leave  Housing and Vehicle assistance in current location  Shipment – Air & Surface  Pet shipment allowance (subject to approval and local regulation)  Destination Services  Temporary Living up to 60 days  Relocation Allowance – 2 payments of USD 15,000 on starting and 3 rd anniversary day  Enroute Travel  Tax Services  Visa Services ***Average Cost – USD 750,000

12. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 12 Relocation Policy Exception Process  Core benefits should not be removed or decreased (i.e. shipment of HHG’s, temp housing, lump sum allowance)  Cash in lieu of benefits is not authorized  Exception request: direct to Relocation Leader for approval/denial

13. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 13