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CSCO > SEC Filings for CSCO > Form 8-K on 10-Sep-2009All Recent SEC Filings

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Form 8-K for CISCO SYSTEMS INC


10-Sep-2009

Change in Directors or Principal Officers


Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 9, 2009, Cisco Systems, Inc. ("Cisco") appointed Arun Sarin, former CEO of Vodafone Group Plc, to its Board of Directors (the "Board"). It has not yet been determined on which Board committees Mr. Sarin will serve. Mr. Sarin previously served on Cisco's Board from September 1998 to July 2003.

In connection with his service as a director, Mr. Sarin will receive Cisco's standard non-employee director cash and equity compensation. Mr. Sarin will receive a pro rata portion of the $75,000 annual retainer for his service through the remaining portion of the year ending at Cisco's 2009 annual meeting of shareholders. Once appointed to serve on any committees of the Board, he also would receive fees of $2,000 per committee meeting attended. Upon his appointment, pursuant to the Board's equity grant policy for non-employee directors, Mr. Sarin automatically received an initial non-employee director restricted stock unit award under the 2005 Stock Incentive Plan covering 16,666 shares. The shares subject to this restricted stock unit award vest in two equal annual installments upon completion of each year of board service, and vest immediately in full upon certain changes in control or ownership of Cisco or upon his death or disability while a member of the Board. Non-employee directors may elect to defer receipt of the restricted stock units such that, to the extent the restricted stock units are vested, the units would be settled in shares after the non-employee director left the board.

In connection with his appointment, Mr. Sarin and Cisco entered into Cisco's standard form of director Indemnification Agreement. Pursuant to this agreement, subject to the exceptions and limitations provided therein, Cisco has agreed to hold harmless and indemnify Mr. Sarin to the fullest extent authorized by Cisco's articles of incorporation and California law, and against any and all expenses, judgments, fines and settlement amounts actually and reasonably incurred by him in connection with any threatened, pending or completed action, suit or proceeding arising out of his services as a director. The foregoing description is qualified in its entirety by the full text of the form of Indemnification Agreement, which was filed as Exhibit 10.8 to Cisco's Form 10-K filed on September 20, 2004 and is incorporated by reference herein.


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