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2011 Enhanced Early Retirement ProgramU.S. & CanadaProgram Overview for Eligible Employees

April 2011

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Contents

• Business Objectives• Program Overview• Program Benefits• Program Timeline• Support Resources

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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.

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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

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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

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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).

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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.

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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

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Program Timeline

Date Activity

April 26 Program announcement e-mail 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

Thank you.