8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (May 18, 2006)

Filed May 18, 2006For Securities:CSCO

Summary

This Form 8-K filing from Cisco Systems, Inc. (CSCO) reports on a pre-arranged stock trading plan adopted by Richard J. Justice, Senior Vice President of Worldwide Field Operations. The plan, established under Rule 10b5-1, allows Mr. Justice to exercise stock options and sell the acquired shares over a period extending from June 2006 to May 2007. This plan is designed for asset diversification and liquidity, and its adoption is in compliance with securities regulations and company policy. Investors should note that these trades will be publicly disclosed through subsequent SEC filings (Forms 144 and 4). The primary purpose of this disclosure is to inform the market about planned insider transactions, providing transparency regarding executive compensation and portfolio management strategies.

Key Highlights

  • 1Richard J. Justice, SVP of Worldwide Field Operations, adopted a pre-arranged stock trading plan.
  • 2The plan involves exercising Cisco stock options and selling the acquired shares.
  • 3The trading plan was established under Rule 10b5-1 of the Securities Exchange Act of 1934.
  • 4Up to 2,462,917 shares of Cisco stock may be sold under the plan.
  • 5The plan is set to commence in June 2006 and conclude in May 2007.
  • 6Transactions under the plan will be publicly reported via Form 144 and Form 4 filings.
  • 7The stated purpose of the plan is for asset diversification and liquidity for Mr. Justice.

Frequently Asked Questions

The main purpose of this filing is to disclose that Richard J. Justice, a Senior Vice President at Cisco, has adopted a pre-arranged trading plan for his company stock options. This plan allows him to exercise and sell shares in a structured manner over a specific period.

Rule 10b5-1 is a rule from the Securities Exchange Act of 1934 that provides an affirmative defense against allegations of insider trading. It allows company insiders to adopt pre-arranged trading plans for company stock when they do not possess material, non-public information, enabling them to diversify their holdings or raise liquidity in a compliant way.

Under the plan, Mr. Justice may sell up to 2,462,917 shares of Cisco stock. The plan is scheduled to begin in June 2006 and will terminate in May 2007.

Yes, all transactions conducted under this plan will be publicly disclosed through subsequent filings with the Securities and Exchange Commission, specifically Form 144 and Form 4 filings.