Document:

Notice of Grant of Stock Option and Stock Option Agreement

 Exhibit 10.6 
  
 NOTICE OF GRANT OF STOCK OPTION 
  
 Notice is hereby given of the following option grant (the “Option”) to purchase shares of the Common Stock of
Cisco Systems, Inc. (the “Corporation”): 
  
 Optionee: John Chambers 
  
 Grant
Date: August 23, 2004 
  
 Exercise Price: $ 19.18 per
share 
  
 Number of Option Shares: 1,500,000 shares

  
 Expiration Date: August 23, 2013 
  
 Type of Option: Non-Statutory Stock Option 

 
 Exercise Schedule  
  
 The Option shall become exercisable with respect to all of the Option Shares upon the
earlier of: (i) the Optionee’s completion of seven (7) years of Service measured from the above option grant date or (ii) three (3) years after the Optionee ceases to serve as the Corporation’s President and Chief Executive Officer subject
to the requirements that (A) this option can not become exercisable due to this subsection (ii) any earlier than the fifth anniversary of the above option grant date and (B) Optionee must continue to render Service during the period after Optionee
is no longer President and Chief Executive Officer or (iii) the Optionee’s death or Permanent Disability. In no event shall the Option become exercisable for any additional Option Shares after Optionee’s cessation of Service. 

 
 Optionee understands and agrees that the Option is offered subject to and in accordance
with the terms of the Cisco Systems, Inc. 1996 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Stock Option Agreement attached hereto.

  
 No Employment or Service Contract. Nothing in this Notice or in
the attached Stock Option Agreement or in the Plan shall confer upon Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service at any time for any reason, with or without cause. 
  
 Definitions. All capitalized terms in this Notice shall have the meaning
assigned to them in this Notice or in the attached Stock Option Agreement. 

 STOCK OPTION AGREEMENT 
  
 Recitals 
  
 A. The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board or of the board of directors of any
Parent or Subsidiary and consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 
  
 B. Optionee is to render valuable services to the Corporation (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee. 
  
 C. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
  
 NOW, THEREFORE, it is hereby agreed as follows: 
  
 1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase up to the number of Option Shares specified in
the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price. 
  
 2. Option Term. This option shall have a maximum term of nine (9) years measured from the Grant Date and shall accordingly expire at the close of business
on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6.  
  
 3. Limited Transferability. This option may, in connection with the Optionee’s estate plan, be assigned in whole or in part during Optionee’s lifetime to one or more members of the
Optionee’s immediate family or to a trust established for the exclusive benefit of one or more such family members. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option
pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Corporation
may deem appropriate. Should the Optionee die while holding this option, then this option shall be transferred in accordance with Optionee’s will or the laws of descent and distribution. 
  
 4. Dates of Exercise. This option shall become exercisable for the Option
Shares in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate and the option shall remain exercisable for the accumulated installments until the
Expiration Date or sooner termination of the option term under Paragraph 5 or 6. As an administrative matter, the exercisable portion of this option may only be exercised until the close of the Nasdaq National Market (or Stock Exchange on which the
Common Stock is primarily traded if applicable) (4:00 p.m. ET) on the last trading day before the Expiration Date or earlier date of termination of the option term under Paragraph 5. Any later attempt to exercise this option will not be honored due
to the expiration of this option. 

 For example, if the Expiration Date is Monday, July 30, Optionee must exercise the exercisable portion of this option by
4:00 p.m. Eastern Time on Friday, July 27. Another example would be if Optionee ceases to remain in Service as provided in Paragraph 5(i) and the date three (3) months from the date of cessation is Monday, July 7, Optionee must exercise the
exercisable portion of this option by 4:00 p.m. Eastern Time on Thursday, July 3. This is because Friday, July 4 is a holiday on which the Nasdaq National Market is closed for trading. 
  
 5. Cessation of Service. The option term specified in Paragraph 2 shall terminate (and this option shall cease to be
outstanding) prior to the Expiration Date: (i) should Optionee’s Service be terminated for Misconduct or (ii) should Optionee otherwise engage in Misconduct while this option is outstanding or (iii) should Optionee become an employee of (or
render services to) any business enterprise which is then a current competitor of the Corporation (or a Parent or Subsidiary). 
  
 6. Special Acceleration of Option  
  
 (a) This option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable, shall automatically accelerate so that this option
shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option and may be exercised for any or all of those Option Shares as fully-vested shares of
Common Stock. No such acceleration of this option, however, shall occur if and to the extent: (i) this option is, in connection with the Corporate Transaction, either to be assumed by the successor corporation (or parent thereof) or to be replaced
with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing on
the unvested Option Shares at the time of the Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent pay-out in accordance with the
same option exercise/vesting schedule set forth in the Grant Notice. The determination of option comparability under clause (i) shall be made by the Plan Administrator, and such determination shall be final, binding and conclusive. 
  
 (b) Immediately following the Corporate Transaction, this option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 
  
 (c) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction,
to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall
also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. 
  
 (d) This option, to the extent outstanding at the time of a Change in Control but not otherwise fully exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of
the Change in Control, become exercisable for all of the Option Shares at the 
  

 2 

 time subject to this option and may be exercised for any or all of those Option Shares as fully-vested shares of Common
Stock. This option shall remain so exercisable until the Expiration Date or sooner termination of the option term. 
  
 (e) This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
  
 7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in
order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 
  
 8. Shareholder Rights. The holder of this option shall not have any shareholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and
become a holder of record of the purchased shares. 
  
 9. Manner of
Exercising Option.  
  
 (a) In order to exercise this option with respect
to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 
  
 (i) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 
  
 (A) cash or check made payable to the Corporation; 
  
 (B) to the extent the option is exercised for vested Option Shares, through
a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently provide irrevocable written instructions (I) to a Optionee-designated brokerage firm to effect the immediate
sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable taxes required to be
withheld by the Corporation by reason of such exercise and (II) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction; 
  
 (C) a promissory note payable to the Corporation, but only to the extent
authorized by the Plan Administrator in accordance with Paragraph 13; and 
  
 (D) shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to avoid a charge to the Corporation’s 
  

 3 

 earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date.

  
 (ii) Furnish to the Corporation appropriate documentation that the person or
persons exercising the option (if other than Optionee) have the right to exercise this option. 
  
 (iii) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all tax withholding requirements applicable to the option exercise.

  
 (b) As soon as practical after the Exercise Date, the Corporation shall issue
to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. 
  
 (c) In no event may this option be exercised for any fractional shares. 
  
 (d) Notwithstanding any other provisions of the Plan, this Agreement or any other agreement to the contrary, if at the time this option is
exercised, Optionee is indebted to the Corporation (or any Parent or Subsidiary) for any reason, the following actions shall be taken, as deemed appropriate by the Plan Administrator: 
  
 (i) any shares of Common Stock to be issued upon such exercise shall automatically be pledged against Optionee’s outstanding
indebtedness; and 
  
 (ii) if this option is exercised in accordance with
subparagraph 9(a)(i)(B) above, the after tax proceeds of the sale of Optionee’s stock shall automatically be applied to the outstanding balance of Optionee’s indebtedness. 
  
 10. Compliance with Laws and Regulations.  
  
 (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation
and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance. 
  
 (b) The inability of the Corporation to obtain approval
from any regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale
of the Common Stock as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 
  

11. Successors and Assigns. Except to the extent otherwise provided in Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and legatees of Optionee’s estate. 
  

 4 

 12. Notices. Any notice required to be given or delivered to the Corporation under the terms of this
Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s
signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 
  
 13. Financing. The Plan Administrator may, in its absolute discretion and
without any obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by delivering a full-recourse promissory note payable to the Corporation. The terms of any such promissory note (including the interest rate,
the requirements for collateral and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. 
  
 14. Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to
the terms of the Plan. All decisions of the Plan Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 
  
 15. Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
  
 16. Excess Shares. If the Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without
shareholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless shareholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is
obtained in accordance with the provisions of the Plan. 
  
 17. Further
Instruments. The parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement. 
  
 18. Authorization to Release Necessary Personal Information.  
  
 (a) Optionee hereby authorizes and directs Optionee’s employer to collect, use and
transfer in electronic or other form, any personal information (the “Data”) regarding Optionee’s employment, the nature and amount of Optionee’s compensation and the fact and conditions of Optionee’s participation in the
Plan (including, but not limited to, Optionee’s name, home address, telephone number, date of birth, social security number (or any other social or national identification number), salary, nationality, job title, number of shares of Common
Stock held and the details of all options or any other entitlement to shares of Common Stock awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing Optionee’s participation in
the Plan. Optionee understands that the Data may be transferred to the Corporation or any of its Subsidiaries, or to any third parties assisting in the 
  

 5 

 implementation, administration and management of the Plan, including any requisite transfer to a broker or other third
party assisting with the exercise of Options under the Plan or with whom shares of Common Stock acquired upon exercise of this option or cash from the sale of such shares may be deposited. Optionee acknowledges that recipients of the Data may be
located in different countries, and those countries may have data privacy laws and protections different from those in the country of Optionee’s residence. Furthermore, Optionee acknowledges and understands that the transfer of the Data to the
Corporation or any of its Subsidiaries, or to any third parties is necessary for Optionee’s participation in the Plan. 
  
 (b) Optionee may at any time withdraw the consents herein, by contacting Optionee’s local human resources representative in writing. Optionee further acknowledges
that withdrawal of consent may affect Optionee’s ability to exercise or realize benefits from the option, and Optionee’s ability to participate in the Plan. 
  
 19. No Entitlement or Claims for Compensation.  
  
 (a) The grant of options under the Plan is made at the discretion of the Plan Administrator, and the Plan may be suspended or terminated by
the Corporation at any time. The grant of an option in one year or at one time does not in any way entitle Optionee to an option grant in the future. The Plan is wholly discretionary in nature and is not to be considered part of Optionee’s
normal or expected compensation subject to severance, resignation, redundancy or similar compensation. The value of the option is an extraordinary item of compensation which is outside the scope of Optionee’s employment contract (if any).

  
 (b) Optionee shall have no rights to compensation or damages as a result of
Optionee’s cessation of Service for any reason whatsoever, whether or not in breach of contract, insofar as those rights arise or may arise from Optionee’s ceasing to have rights under or be entitled to exercise this option as a result of
such cessation or from the loss or diminution in value of such rights. If Optionee did acquire any such rights, Optionee is deemed to have waived them irrevocably by accepting the option. 
  

 6 

 Appendix 
  
 The following definitions shall be in effect under the Agreement: 
  
 A. Agreement shall mean this Stock Option Agreement. 
  
 B. Board shall mean the Corporation’s Board of Directors. 
  
 C. Change in Control shall mean a change in ownership or control of the Corporation effected through either of the following
transactions: 
  
 (i) the acquisition, directly or indirectly by any person or
related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than thirty-five percent (35%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board
does not recommend such shareholders to accept, or 
  
 (ii) a change in the
composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A)
have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in
office at the time the Board approved such election or nomination. 
  
 D.
Code shall mean the Internal Revenue Code of 1986, as amended. 
  
 E. Common Stock shall mean the Corporation’s common stock. 
  
 F. Corporate Transaction shall mean either of the following shareholder-approved transactions to which the Corporation is a party: 
  
 (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding
securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation.

  
 G. Corporation shall mean Cisco Systems, Inc., a California
corporation. 
  

 A-1 

 H. Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary),
subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
  
 I. Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement. 
  
 J. Exercise Price shall mean the exercise price per share as specified in the
Grant Notice. 
  
 K. Expiration Date shall mean the date on which
the option expires as specified in the Grant Notice. 
  
 L. Fair Market
Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 
  
 (i) If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on
the date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock on the date in question, then the Fair
Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
  
 (ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by
the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then
the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
  
 M. Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 
  
 N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Agreement, pursuant to which Optionee has been
informed of the basic terms of the option evidenced hereby. 
  
 O. Incentive
Option shall mean an option which satisfies the requirements of Code Section 422. 
  
 P. Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any other intentional misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not be
deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as grounds for the dismissal or discharge of Optionee or any other individual in the Service of the Corporation (or any Parent or
Subsidiary). 
  

 A-2 

 Q. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
  
 R. Non-Statutory Option shall mean an option not intended to satisfy the
requirements of Code Section 422. 
  
 S. Option Shares shall mean
the number of shares of Common Stock subject to the option as specified in the Grant Notice. 
  
 T. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 
  
 U. Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such
chain. 
  
 V. Permanent Disability shall mean the inability of
Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months
or more. 
  
 W. Plan shall mean the Corporation’s 1996 Stock
Incentive Plan. 
  
 X. Plan Administrator shall mean either the
Board or a committee of the Board acting in its administrative capacity under the Plan. 
  
 Y. Service shall mean the Optionee’s performance of services for the Corporation (or any Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent
advisor. For purposes of this option, Service shall not be considered terminated if Optionee is rendering services only to an accredited institution of higher education and/or a federal, state or local government agency or entity, in each case whose
conflict of interest rules prevent Optionee from continuing to render services to the Corporation (or any Parent or Subsidiary). 
  
 Z. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange. 
  
 AA. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain. 
  

 A-3Form of Officer Indemnification

 Exhibit 10.7 
  
 INDEMNIFICATION AGREEMENT 
  
 THIS AGREEMENT, made and entered into as of              day of
             between Cisco Systems, Inc., a California corporation (“Corporation”), and             
(“Officer”), 
  
 WITNESSETH THAT: 
  
 WHEREAS, Officer is an executive officer of Corporation, and in such
capacity performs a valuable service for Corporation; and 
  
 WHEREAS, in accordance with the authorization provided by Section 204(a)(11) of the California General Corporation Code, as amended (“Code”), Article V of the Restated Articles of Incorporation, as amended (the
“Articles”), authorizes Corporation to provide indemnification to its officers through agreements with such officers in excess of the indemnification otherwise permitted by Section 317 of the Code; and 
  
 WHEREAS, Corporation recognizes that the indemnification provided by this
Agreement is of great importance in attracting highly qualified individuals, such as Officer, to serve as executive officers of Corporation; and 
  
 WHEREAS, in order to induce Officer to continue to serve as an executive officer of Corporation, Corporation has determined and agreed to enter into this
Agreement with Officer for the purpose of fully implementing the provisions of Sections 204(a)(11) and 317 of the Code and Article V of the Articles; 
  
 NOW, THEREFORE, in consideration of Officer’s continued service as a Officer after the date hereof, the parties hereto agree as follows: 

 
 1. Indemnity of Officer. Corporation hereby agrees to hold
harmless and indemnify Officer to the fullest extent authorized by the provisions of Section 317 of the Code, as it may be amended from time to time. 
  
 2. Additional Indemnity. Subject only to the limitations set forth in Section 3 hereof, Corporation hereby further agrees to hold harmless and
indemnify Officer: 
  
 (a) against any and all expenses
(including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Officer in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (including an action by or in the right of Corporation) to which Officer is, was or at any time becomes a party, or is threatened to be made a party, by reason of the fact that Officer is, was or at any time becomes an officer,
employee or agent of Corporation, or is or was serving or at any time serves at the request of Corporation as an officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise; and 
  
 (b) otherwise to the fullest extent as indemnification may be provided to
Officer by Corporation under the provisions of Article V of the Articles and Sections 204(a)(11) and 317 of the Code. 

 3. Limitations on Additional Indemnity. 
  
 (a) No indemnification pursuant to Section 2 hereof shall be paid by
Corporation for any of the following: 
  
 (i) to
the extent that Officer is or has been indemnified or reimbursed pursuant to Section 1 hereof or any Directors and Officers Liability Insurance (“D & O Insurance”) purchased and maintained by Corporation; 
  
 (ii) with respect to remuneration paid to Officer if it
shall be determined by a final judgment or other final adjudication that such remuneration was in violation of law; 
  
 (iii) on account of any suit pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended, and
amendments thereto or similar provisions of any federal, state or local statutory law in which judgment is rendered against Officer for an accounting of profits made from the purchase or sale by Officer of securities of Corporation; 
  
 (iv) if a final decision by a court having jurisdiction in
the matter shall determine that such indemnification is not lawful; or 
  
 (v) on account of any action, suit or proceeding (other than a proceeding referred to in Section 8(b) hereof) commenced by the Officer against Corporation or against any director, officer or shareholder of Corporation
unless authorized in the specific case by action of the Board of Directors; 
  
 (b) In addition to those limitations set forth above in paragraph (a) of this Section 3, no indemnification pursuant to Section 2 hereof in an action brought by or in the right of Corporation for breach of the
Officer’s duties to Corporation and its shareholders shall be paid by Corporation for any of the following: 
  
 (i) on account of Officer’s acts or omissions that involve intentional misconduct or a knowing and culpable violation of law;

  
 (ii) on account of acts or omissions that
Officer believes to be contrary to the best interests of Corporation or its shareholders or that involve the absence of good faith on the part of Officer; 
  
 (iii) with respect to any transaction from which Officer derived an improper personal benefit; 
  
 (iv) on account of acts or omissions that show a reckless
disregard for Officer’s duty to Corporation or its shareholders in circumstances in which Officer was aware, or should have been aware, in the ordinary course of performing a Officer’s duties, of a risk of serious injury to Corporation or
its shareholders; 
  

 2 

 (v) on account of acts or omissions that constitute an unexcused pattern of inattention
that amounts to an abdication of Officer’s duty to Corporation or its shareholders; 
  
 (vi) to the extent prohibited by Section 310 of the Code (contracts in which a director has material financial interest), if applicable;

  
 (vii) to the extent prohibited by Section 316
of the Code (corporate actions subjecting directors to joint and several liability for prohibited distributions, loans and guarantees), if applicable; or, 
  
 (viii) in any circumstances in which indemnity is expressly prohibited by Section 317 of the Code. 
  
 4. Contribution. If the indemnification provided in Sections 1 and 2
is unavailable and may not be paid to Officer for any reason other than those set forth in Section 3 (excluding subsections 3(b)(viii)), then in respect of any threatened, pending or completed action, suit or proceeding in which Corporation is
jointly liable with Officer (or would be if joined in such action, suit or proceeding), Corporation shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred and paid or payable by Officer in such proportion as is appropriate to reflect (i) the relative benefits received by Corporation on the one hand and Officer on the other hand from the transaction from which such action, suit or proceeding
arose, and (ii) the relative fault of Corporation on the one hand and of Officer on the other in connection with the events which resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable
considerations. The relative fault of Corporation on the one hand and of Officer on the other shall be determined by reference to, among other things, the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. Corporation agrees that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or any other
method of allocation that does not take account of the foregoing equitable considerations. 
  
 5. Continuation of Obligations. All agreements and obligations of Corporation contained herein shall continue during the period Officer is a director, officer, employee or agent of Corporation (or is or was
serving at the request of Corporation as an officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Officer shall be subject to any possible claim or
threatened, pending or completed action, suit or proceeding, whether civil, criminal or investigative, by reason of the fact that Officer was an officer of Corporation or serving in any other capacity referred to herein. 
  
 6. Notification and Defense of Claim. Promptly after receipt by
Officer of notice of the commencement of any action, suit or proceeding, Officer will, if a claim in respect thereof is to be made against Corporation under this Agreement, notify Corporation of the commencement thereof; but the omission so to
notify Corporation will not relieve it from any liability which it may have to Officer otherwise than under this Agreement. With respect to any 
  

 3 

 such action, suit or proceeding as to which Officer notifies Corporation of the commencement thereof: 
  
 (a) Corporation will be entitled to participate therein at its own expense;

  
 (b) Except as otherwise provided below, to the extent that it
may wish, Corporation jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel satisfactory to Officer (such consent not to be unreasonably withheld). After notice from Corporation to
Officer of its election to assume the defense thereof, Corporation will not be liable to Officer under this Agreement for any legal or other expenses subsequently incurred by Officer in connection with the defense thereof other than reasonable costs
of investigation or as otherwise provided below. Officer shall have the right to employ counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from Corporation of its assumption of the defense
thereof shall be at the expense of Officer unless (i) the employment of counsel by Officer has been authorized by Corporation, (ii) Officer shall have reasonably concluded that there may be a conflict of interest between Corporation and Officer in
the conduct of the defense of such action, or (iii) Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of Corporation. Corporation
shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of Corporation or as to which Officer shall have made the conclusion provided for in (ii) above; and 
  
 (c) Corporation shall not be liable to indemnify Officer under this Agreement
for any amounts paid in settlement of any action or claim effected without its written consent. Corporation shall not settle any action or claim in any manner that would impose any penalty or limitation on Officer without Officer’s written
consent. Neither Corporation nor Officer will unreasonably withhold its consent to any proposed settlement. 
  
 7. Advancement and Repayment of Expenses. 
  
 (a) In the event that Officer employs his or her own counsel pursuant to Section 6(b)(i) through (iii) above, Corporation shall advance to Officer, prior
to any final disposition of any threatened or pending action, suit or proceeding, whether civil, criminal, administrative or investigative, any and all reasonable expenses (including legal fees and expenses) incurred in investigating or defending
any such action, suit or proceeding within ten (10) days after receiving copies of invoices presented to Officer for such expenses; and 
  
 (b) Officer agrees that Officer will reimburse Corporation for all reasonable expenses paid by Corporation in defending any civil or criminal action, suit
or proceeding against Officer in the event and only to the extent it shall be ultimately determined by a final judicial decision (from which there is no right of appeal) that Officer is not entitled, under applicable law, the Articles or Bylaws,
this Agreement or otherwise, to be indemnified by Corporation for such expenses. 
  
 8. Enforcement. 
  

 4 

 (a) Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the
obligations imposed on Corporation hereby in order to induce Officer to serve as a Officer of Corporation, and acknowledges that Officer is relying upon this Agreement in serving in such capacity. 
  
 (b) In the event Officer is required to bring any action to enforce rights or
to collect moneys due under this Agreement and is successful in such action, Corporation shall reimburse Officer for all of Officer’s reasonable fees and expenses in bringing and pursuing such action. 
  
 9. Separability. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the
other provisions hereof. 
  
 10. Governing Law. This
Agreement shall be interpreted and enforced in accordance with the laws of the State of California. 
  
 11. Binding Effect. This Agreement shall be binding upon Officer and upon Corporation, and their respective successors and assigns, and shall inure
to the benefit of Officer, his or her heirs, personal representatives and assigns and to the benefit of Corporation, its successors and assigns. 
  
 12. Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing
signed by both parties hereto. 
  
 13. Subrogation. In the
event of payment under this Agreement, Corporation shall be subrogated to the extent of such payment to any right Officer may have for recovery of the amounts so paid from any third party. Officer agrees to execute all documents required and do all
other acts necessary to effect the foregoing provisions and permit Corporation to enforce the rights so subrogated. 
  

 5 

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

			
	 CISCO SYSTEMS, INC.

		
	 By:
	 	  
                                       
                                        
                 

	
	OFFICER
	
	                                       
                                        
                         

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]