8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Feb 22, 2006)

Filed February 22, 2006For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc. (CSCO) on February 22, 2006, reports on a pre-arranged stock trading plan adopted by board member Steven M. West. The plan allows Mr. West to exercise stock options that are nearing expiration and sell the acquired shares, beginning in February 2006 and concluding in November 2006. This action is positioned as part of his personal strategy for asset diversification and liquidity, and it adheres to Rule 10b5-1 of the Securities Exchange Act, ensuring that transactions occur without the board member possessing material non-public information at the time the plan is initiated. Investors will be kept informed of these transactions through subsequent Form 144 and Form 4 filings.

Key Highlights

  • 1Board member Steven M. West has adopted a pre-arranged stock trading plan.
  • 2The plan is for exercising stock options set to expire within a year and selling the resulting shares.
  • 3Transactions under the plan can begin in February 2006 and will conclude by November 2006.
  • 4Mr. West aims for asset diversification and liquidity through this plan.
  • 5The plan complies with Rule 10b5-1 of the Securities Exchange Act, designed to prevent insider trading.
  • 6Trades executed under this plan will be publicly disclosed via Form 144 and Form 4 filings.
  • 7The total number of shares potentially sold by Mr. West under this plan is up to 55,000.

Frequently Asked Questions

The main purpose is to disclose that Cisco board member Steven M. West has implemented a pre-arranged stock trading plan. This plan outlines the future exercise of his stock options and the subsequent sale of Cisco shares.

Mr. West is selling his Cisco stock as part of his individual long-term strategy for asset diversification and to gain liquidity. This is a personal financial planning measure.

No, the filing explicitly states that the plan was adopted in accordance with Rule 10b5-1 of the Securities Exchange Act. This rule allows individuals to sell company stock through pre-arranged plans when they do not possess material, non-public information at the time the plan is established, thereby preventing accusations of insider trading.

Mr. West may sell up to 55,000 shares of Cisco stock. The plan begins in February 2006 and is scheduled to terminate in November 2006. The exact timing and number of shares sold will depend on market conditions and the terms of the plan.