8-KOther Events

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Mar 28, 2011)

Filed March 28, 2011For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on March 28, 2011, reports on a pre-arranged stock trading plan adopted by board member Larry R. Carter. The plan, established on March 24, 2011, allows Mr. Carter to exercise stock options originally granted in 2003, which are set to expire in April 2012. He intends to sell up to 250,000 shares of Cisco stock acquired through this exercise, with the plan terminating in April 2012. This trading plan was established in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 and Cisco's internal policies. Rule 10b5-1 allows individuals to set up pre-scheduled stock transactions at a time when they do not possess material non-public information, facilitating diversification of their investment portfolios over time. The transactions will be publicly disclosed via Form 144 and Form 4 filings.

Key Highlights

  • 1Board member Larry R. Carter has adopted a pre-arranged stock trading plan.
  • 2The plan involves exercising Cisco stock options granted in 2003, expiring April 2012.
  • 3Mr. Carter plans to sell up to 250,000 shares of Cisco stock.
  • 4The trading plan was established on March 24, 2011, and will terminate in April 2012.
  • 5The plan complies with Rule 10b5-1, allowing trading without possession of material non-public information.
  • 6Transactions will be reported on SEC filings (Form 144 and Form 4).

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose that a member of Cisco's board of directors, Larry R. Carter, has adopted a pre-arranged stock trading plan to exercise and sell company stock.

Mr. Carter is selling Cisco stock as part of a pre-arranged trading plan to exercise stock options granted in 2003 that are set to expire in April 2012. This plan allows him to diversify his investment portfolio over time.

No, this trading plan does not inherently indicate negative news about Cisco. The plan is established under Rule 10b5-1, which is designed for individuals to trade company stock at a time when they do not possess material non-public information. It's a common practice for executives and directors to diversify their holdings.

Under the plan, Mr. Carter may sell up to 250,000 shares of Cisco stock. The plan is scheduled to terminate in April 2012, and specific transaction dates will be disclosed through subsequent SEC filings (Form 144 and Form 4).