Forms of Stock Assumption Agreement – Cisco
CISCO SYSTEMS, INC.
STOCK OPTION ASSUMPTION AGREEMENT
Dear [Field: Full Name]:
As you know, on November 14, 2011 (the “Closing Date”) Cisco Systems, Inc.
(“Cisco”) acquired Beaumaris Networks, Inc. (d/b/a BNI) (“BNI”) (the
“Acquisition”) pursuant to the Agreement and Plan of Merger by and among Cisco
Sytems, Inc., Boost Acquisition Corp., Beaumaris Networks, Inc. and the
Stockholders153 Agent dated as of October 19, 2011. On the Closing Date you held
one or more outstanding options to purchase shares of common stock granted to
you under the Beaumaris Networks, Inc. 2009 Stock Plan (the “Plan”). Pursuant to
the Merger Agreement, on the Closing Date, Cisco assumed all obligations of BNI
under your outstanding option (or options). This Stock Option Assumption
Agreement (the “Agreement”) evidences the terms of Cisco153s assumption of an
option (or options) to purchase BNI common stock granted to you under the Plan
(the “BNI Option(s)”), and documented by a stock option agreement (or stock
option agreements) and any amendment(s) and/or option assumption agreements
entered into by and between you and BNI (the “Option Agreement(s)”), including
the necessary adjustments for assumption of the BNI Option(s) that are required
by the Acquisition.
The table below summarizes your BNI Option(s) immediately before and after
the Acquisition:
Grant Details
| Employee ID | [Field: Employee ID] | |||
| Grant Date | [Field: Grant Date] | |||
| Type of Option | [Field: Grant Type] | |||
| Grant Number | [Field: Grant Number] | |||
| Cisco Number of Option Shares | [Field: Shares Granted] | |||
| Cisco Exercise Price Per Share | [Field: Option Price] | |||
| Original Number of Option Shares | [Field: Acquisition Shares] | |||
| Original Exercise Price Per Share | [Field: Acquisition Exercise Price] | |||
| Vesting Commencement Date | [Field: Vest Start Date] | |||
| Expiration Date | [Field: Expiration Date] |
The post-Acquisition adjustments are based on the Option Exchange Ratio of
0.3067180780 as determined in accordance with the terms of the Merger Agreement,
and are intended to: (i) assure that the total spread of your assumed BNI
Option(s) (i.e., the difference between the aggregate fair market value and the
aggregate exercise price) does not exceed the total spread that existed
immediately prior to the Acquisition; and (ii) to preserve, on a per share
basis, the ratio of exercise price to fair market value that existed immediately
prior to the Acquisition. The number of shares of Cisco common stock subject to
your assumed BNI Option(s) was determined by multiplying the Option Exchange
Ratio by the number of shares remaining subject to your BNI Option(s) on the
Closing Date and rounding the resulting product down to the next whole number of
shares of Cisco common stock. The exercise price per share of your assumed BNI
Option(s) was determined by dividing the exercise price per share of your BNI
Option(s) by the Option Exchange Ratio and rounding the resulting quotient up to
the next whole cent.
Unless the context otherwise requires, any references in the Plan or the
Option Agreement(s) to: (i) the “Company” or the “Corporation” means Cisco, (ii)
“Stock,” “Common Stock” or “Shares” means shares of Cisco common stock, (iii)
the “Board of Directors” or the “Board” means the Board of Directors of Cisco
and (iv) the “Committee” means the Compensation and Management Development
Committee of the Board of Directors of Cisco. All references in the Option
Agreement(s) and the Plan relating to your status as an employee or consultant
of BNI will now refer to your status as an employee or consultant of Cisco or
any present or future Cisco subsidiary.
The vesting commencement date, vesting schedule and expiration date of your
assumed BNI Option(s) remain the same as set forth in the Option Agreement(s)
(in this respect, please note that any discussion of option terms (including
vesting acceleration) in any employment offer letter (whether from Cisco, BNI or
any other related employer) is explanatory in nature and will not result in
duplication of benefits (including vesting) with respect to your assumed BNI
Option(s)) but with the number of shares subject to each vesting installment and
the exercise price per share adjusted to reflect the effect of the Acquisition.
Vesting of your assumed BNI Option(s) will be suspended during all leaves of
absence in accordance with Cisco153s policies and, the only permissible methods to
exercise your assumed BNI Option(s) are cash, check, wire transfer, or through a
cashless exercise program with a Cisco-designated broker. All other provisions
which govern either the exercise or the termination of your assumed BNI
Option(s) remain the same as set forth in the Option Agreement(s), and the
provisions of the Option Agreement(s) will govern and control your rights under
this Agreement to purchase shares of Cisco common stock, except (i) no assumed
BNI Option(s) may be “early exercised” (i.e., an assumed BNI Option(s) may be
exercised for shares of Cisco common stock only to the extent vested at the time
of exercise pursuant to the applicable vesting schedule) and (ii) as expressly
modified by this Agreement, the Merger Agreement or otherwise in connection with
the Acquisition. Upon termination of your employment with Cisco or any present
or future Cisco subsidiary, you will have the
applicable limited post-termination exercise period specified in your Option
Agreement(s) for your assumed BNI Option(s) to the extent vested and outstanding
at the time of termination after which time your assumed BNI Option(s) will
expire and NOT be exercisable for Cisco common stock.
To exercise your assumed BNI Option(s), you must utilize one of Cisco153s
preferred brokers, the Charles Schwab Corporation (telephone number is ) or
Morgan Stanley Smith Barney (telephone number is ).
Nothing in this Agreement or the Option Agreement(s) interferes in any way
with your right and your employer153s right, which rights are expressly reserved,
to terminate your employment at any time for any reason. Future options, if any,
you may receive from Cisco will be governed by the terms of the Cisco stock
option plan under which such options are granted, and such terms may be
different from the terms of your assumed BNI Option(s), including, but not
limited to, the time period in which you have to exercise vested options after
your termination of employment.
Until Cisco153s Stock Administration Department is in receipt of your
understanding and acceptance of this Agreement (which can be accomplished
electronically by following the instructions under the heading of Acknowledgment
below) your Cisco account will not be activated and your assumed BNI Option(s)
will not be exercisable.
If you have any questions regarding this Agreement or your assumed BNI
Option(s), please contact at .
CISCO SYSTEMS, INC.
By: /s/ Mark Chandler
Mark Chandler
Corporate Secretary
ACKNOWLEDGMENT
[Field: Full Name] acknowledges that clicking on the I Agree button
constitutes acceptance and agreement to be bound by the terms of this Agreement,
as well as understanding and agreement that all rights and liabilities with
respect to the assumed BNI Option(s) listed on the table above are hereby
assumed by Cisco and are as set forth in the Option Agreement(s) for such
assumed BNI Option(s), the Plan and this Stock Option Assumption Agreement.
ATTACHMENTS
Exhibit A – Form S-8 Prospectus
CISCO SYSTEMS, INC.
NON-U.S. STOCK OPTION ASSUMPTION AGREEMENT
Dear [Field: Full Name]:
As you know, on November 14, 2011 (the “Closing Date”) Cisco Systems, Inc.
(“Cisco”) acquired Beaumaris Networks, Inc. (d/b/a BNI) (“BNI”), (the
“Acquisition”) pursuant to the Agreement and Plan of Merger by and among Cisco
Systems, Inc., Boost Acquisition Corp., Beaumaris Networks, Inc. and the
Stockholders153 Agent dated as of October 19, 2011 (the “Merger Agreement”). On
the Closing Date, you held one or more outstanding options to purchase shares of
BNI common stock granted to you under the Beaumaris Networks, Inc. 2009 Stock
Plan (the “Plan”). Pursuant to the Merger Agreement, on the Closing Date, Cisco
assumed all obligations of BNI under your outstanding option (or options). This
Non-U.S. Stock Option Assumption Agreement (the “Agreement”) evidences the terms
of Cisco153s assumption of an option (or options) to purchase BNI common stock
granted to you under the Plan (the “BNI Option(s)”), and documented by a stock
option agreement (or stock option agreements) and any amendment(s) and/or option
assumption agreements entered into by and between you and BNI (the “Option
Agreement(s)”), including the necessary adjustments for assumption of the BNI
Option(s) that are required by the Acquisition.
The table below summarizes your BNI Option(s) immediately before and after
the Acquisition:
Grant Details
| Employee ID | [Field: Employee ID] | |||
| Grant Date | [Field: Grant Date] | |||
| Type of Option | [Field: Grant Type] | |||
| Grant Number | [Field: Grant Number] | |||
| Cisco Number of Option Shares | [Field: Shares Granted] | |||
| Cisco Exercise Price Per Share | [Field: Option Price] | |||
| Original Number of Option Shares | [Field: Acquisition Shares] | |||
| Original Exercise Price Per Share | [Field: Acquisition Exercise Price] | |||
| Vesting Commencement Date | [Field: Vest Start Date] | |||
| Expiration Date | [Field: Expiration Date] | |||
The post-Acquisition adjustments are based on the Option Exchange Ratio of
0.3067180780, as determined in accordance with the terms of the Merger
Agreement, and are intended to: (i) assure that the total spread of your assumed
BNI Option(s) (i.e., the difference between the aggregate fair market value and
the aggregate exercise price) does not exceed the total spread that existed
immediately prior to the Acquisition; and (ii) to preserve, on a per share
basis, the ratio of exercise price to fair market value that existed immediately
prior to the Acquisition. The number of shares of Cisco
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