/s/ Rob LloydRob LloydHiring Manager

House Hunting Trip: Two trips totaling 10 days are allowed for employee, spouse and family.  Cartus will authorize roundtrip air (economy) travel, hotel and rental car to be arranged through the Cisco Travel Center. Reimbursement for meals up to $60.00 per day per person based upon actual receipts.  The amount of the benefit will be added to the employee’s W-2 as income.

Shipment of household goods from one primary residence by Graebel Move Management, including a maximum of two (max. 2) standard automobiles if distance is greater than 400 miles. Delivery to new location: packing, loading and unpacking of household items, servicing appliances only (washer, dryer, icemaker). If necessary, Storage in Transit (SIT) up to a maximum of 90 days for current homeowners of household goods in the new location. The shipment of goods and 30 days of storage benefit is excludable and will not be grossed up.

Final Travel: Air economy travel one-way if distance is greater than 400 miles or automobile travel reimbursement at the current mileage rate, maximum of 2 standard automobiles for employee, spouse and legal dependents. This is an excludable benefit (non-taxable) and will not be grossed up nor added to the employees W-2.

Corporate temporary housing accommodations up to a maximum of 90 consecutive days. Also included is a allowance of $150/single or married persons or $300/family will be provided if you are staying in a service/corporate apartment with an available kitchen, during your temporary living stay. The allowance is a supplement to assist you in setting up basic items for your stay

If necessary, rental of one compact automobile up to a maximum of fifteen (15) consecutive days, or until personal automobile arrives, whichever is sooner. The amount of this benefit will be added to the employee’s W-2 as income.

A miscellaneous relocation allowance of $20,000.00 (minus taxes) to be disbursed within 30 days after the effective date of your transfer. This sum is intended to cover non-receipted miscellaneous expenses such as pet vaccinations, utility hook-ups, auto registration, club membership, etc. This benefit is fully taxable, and taxes are deducted prior to payment.

Area orientation session with a Cisco approved vendor to include home finding tours for renters and homeowners, needs assessment performed by agent familiar with area. The area orientation to include information on communities, schools, recreation and special needs. The amount of this benefit will be added to the employee’s W-2 as income.

A Pet Shipment Allowance of up to $2,000 per pet, with a maximum of up to 4 pets will be provided by Cisco. It is the responsibility of the employee to research and determine if there are any restrictions at the new location residence for his/her pet(s) and to make all the necessary arrangements for transportation.  Costs associated with boarding and/or locating a new home for a pet, which will not be shipped, are not reimbursable expenses.  The pet shipment allowance is a reimbursable expense and not directly paid for by Cisco.  The amount of this benefit will be added to the employee’s W-2 as income.

Cisco will cover the cost of the airfare/mileage back to the old location, for the employee to complete any outstanding relocation details.  The employee must work with Cartus to make the air travel arrangements.  If the employee chooses to travel by automobile, the mileage will be reimbursed based on applicable mileage rates at the time.  The employee should coordinate the schedule of the trip with his/her manager and all those the employee will need to see at the old location.  The amount of the benefit will be added to the employee's W-2 as income.

Sales Incentive Bonus - – Cisco will pay the employee a 2% Sales Incentive Bonus based on the sales price of the primary residence in the old location as an active participant of the BVO program if an offer is obtained within the first 90 days of the home being listed. This sales incentive bonus is not tax assisted.

Home Purchase Assistance – Cisco will reimburse the following reasonable closing costs upon evaluation: Customary buyer costs; Transfer taxes normally paid by the buyer; Legal fees (if customary); Inspection fees customary for the area. The benefit is capped at $20,000.00. Home must be purchased within 12 months of the effective transfer date for eligibility. Direct billing of these costs can be arranged through one of Cisco’s preferred lenders. The amount of this benefit will be added to the employee’s W-2 as income.

Mortgage Subsidy - As a part of this offer, you are also eligible to participate in the Cisco Mortgage Subsidy Program.  This program provides a declining subsidy over five (5) years to aid in managing your relocation costs to the San Jose, CA area. In this program, your home mortgage interest rate will be subsidized by Cisco.  The subsidy represents the difference between the rate of interest at which you make your payments (subsidized rate) and the rate of the interest on the loan (mortgage note rate).  The subsidy will decline gradually until the beginning of the sixth year when you will be responsible for the full mortgage at the note rate reflected on the mortgage documents.  For your level, the mortgage subsidy is up to $300,000.00 over the 5 years and you have one (1) year from your effective date to activate this subsidy.   Cisco will pay this subsidy directly to one of Cisco’s preferred lenders on your behalf.   Also, please note that this benefit is fully taxable upon execution, and taxes will be deducted bi-monthly from your Cisco paycheck throughout the duration of the subsidy benefit period.    However, the mortgage Interest paid by you and Cisco may be tax deductible which can help reduce your overall income tax liability.  Also of note, the mortgage subsidy amount may only be applied to the interest portion of the mortgage payments due on the loan in the first five years (not the principal or any escrow portions).  If the benefit exceeds the interest due on the loan during the first five years, it may become necessary to extend the subsidy benefit for a 6th or 7th year or possibly longer. Subsidy dollars can only be applied to a mortgage and will not be disbursed to the employee as a lump sum.  Any leftover subsidy not applied to a mortgage will be returned to Cisco. You can obtain further details for your specific situation through one of Cisco’s preferred lenders or your Cisco relocation contact.

Relocation Payback Agreement.