invents · 2019. 9. 29. · 450 7th avenue suite #1107 new york, ny 10123 212-620-2629 october 1,...

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450 7th

Avenue Suite #1107

New York, NY 10123

212-620-2629

www.invents.com

October 1, 2011

Roger Bailin 721 Medina Court Atlanta, GA 30316 Re: The IT Multi-Tool

Enclosed is an original copy of your New Product Marketing Agreement, counter-signed by a representative of Invents Company, LLC. Additional copies of the Agreement, or of this Customized Marketing Matrix Itinerary may be downloaded in PDF format at any time through the secure Client Web Portal (the details of which are explained below in further detail).

Customized Marketing Matrix Itinerary

Introduction: Below is a detailed time-line which outlines the specific steps we plan to take during the course of implementing the Customized Marketing Matrix for your invention concept. Please keep in mind that this is a customized marketing effort, and thus we may need to deviate from the specific timing or order of the written schedule (below) if circumstances require. Furthermore, virtually every step requires your input, authorization and approval. Accordingly, timing of the overall process may vary in relation to the speed with which each step is approved. Please recognize that we implement the Customized Marketing Matrix in a very precise and methodical manner, it is optimized for quality not for speed. Everything done throughout the process is done for a specific reason, in a specific order and at a specific point in time. Our goal is to have the project wind its way through each department such that each is able to build upon what was done by the previous department, and generate the optimal work product. Once the final product (Custom Television Commercial) is complete your patent attorney/agent will obtain patent-pending status for the invention so that we may then

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disclose to the public all of the various promotional materials that we have prepared. In other words, at that point it is “off to the races”- airing of the television commercial, launching of your Personalized Product Web Page, posting of your Virtual Model at the Invents Company web site, distributing your Invention Brochure (along with links to your web site and video) to potentially interested manufacturers, and sending your Media Press Releases to various media outlets. Since the culmination of all of this occurs roughly one year into the process, our strategy is to wait until that point to have your patent attorney/agent obtain patent pending status. Since the clock starts “ticking” on the life of your patent from the date it is filed (patents are valid for 20 years from the date of filing) we prefer to avoid starting that clock until it is absolutely necessary (just prior to airing your Custom Television Commercial and bringing the entire project public). We also prefer to wait as long as possible so that if any significant modifications are made to the invention concept during the Customized Marketing Matrix process, they can be incorporated into your patent application by your patent attorney/agent. You may, at any time, check the status of the progress of the project by logging into to your secure personalized Client Web Portal at www.invents.com. There you will find real-time updates detailing the status of the project as it moves through our many departments. Please note that your user name is rbailin and your password is 649PKD28. If you have any problems logging in to the Client Web Portal, please call client relations at 212-620-2629. Our agents are available to assist you from 9:00 AM to 5:00PM EST. Please note that for security and confidentiality purposes, we prefer that all document correspondence during the course of the Customized Marketing Matrix take place through the secure Client Web Portal. This is a much more secure means than mailing private and confidential invention documents through the US Postal System or via a freight carrier like FedEx or UPS where documents can get lost/misplaced and possibly viewed by third parties. Accordingly, all artwork, renderings, brochures, television commercial productions, press releases and the like will be viewable/downloadable securely by you through your Client Web Portal. All correspondence relating to modifications or approvals of work being performed will be conducted through the Client Web Portal or via email, thus please ensure that we have on file a valid email address for you. We advise that you restrict access to your Client Web Portal so that no one other than you may view it. We also advise that you take steps to protect any files which you choose to download from the Client Web Portal onto your local computer, and that you securely store any hard-copy printouts you make of these documents/files. Until such time that your invention is patent-pending, it is imperative that all details be kept in the strictest confidence. Step 1: Establishment of confidential invention file and review by all departments. Immediately upon mailing the counter-signed New Product Marketing Agreement and this Itinerary to you, a confidential invention file will be created at our corporate headquarters here in New York. This file will contain details about your invention concept and will be forwarded to and circulated throughout each of our departments for review and comments. Your file will be forwarded to our 3D Graphic Modeling Department, our Brochure Department, our Media Department, our Web Design Department, our Television Commercial Production Department and finally our Licensing Department. After review by each individual department, a group meeting will be conducted wherein the entire invention concept will be thoroughly discussed and analyzed. This initial inter-department analysis and group brainstorming enables us to identify significant positive attributes of the invention that may have been overlooked previously, so that we may be certain to concentrate on such attributes as the process of the Customized Marketing Matrix progresses. This entire

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process should be complete within one month of the date of your receipt of this Itinerary (we afford each department three to four business days to review the file). Subsequently, the project will move into the graphic design department for preparation of 2D depictions of the invention concept. Step 2: Design and Rendering of the Virtual Model. Utilizing the Invention Documentation Form that you completed previously, our 3D Graphic Modelers will produce a 3D Virtual Model of your invention concept. This Virtual Model will transform the rough idea of the invention concept into a life-like product. Once your Virtual Model is complete, one of our artists will notify you via email and will upload it to your Client Web Portal for your review and modification or approval. This should occur within two months of the Graphic Modeling Department receiving your project (approximately three months from the date of this mailing). Once your Virtual Model has been completed, it will not yet be made public- this will occur upon the filing of your patent application by your patent attorney/agent and the obtainment of your patent-pending serial number. You will however be able to view the virtual model via the Client Web Portal immediately after it is created. Once you receive patent-pending status the Virtual Model will be included on your Personalized Product Web Page for potential licensees to view. Step 3: Production of the Invention Brochure. Once your Virtual Model is complete, our Brochure Department will begin preparation of a full-color Invention Brochure which will become an essential selling tool in promoting your invention concept. This Invention Brochure will incorporate the Virtual Model and renderings, and combine them with customized copy that is written specifically to promote the invention concept’s uses, applications, benefits, unique features and potential end-users. This Invention Brochure will be downloadable from your Personalized Product Web page, and will be sent to the various manufacturers targeted by our licensing department as they compile your Prospective Licensee List (all described in greater detail below). Once the Invention Brochure is complete, our brochure department will notify you via email and will upload it to your Client Web Portal for your review and modification or approval. Completion of the Invention Brochure is expected to occur within one month of receipt by the Brochure Department of your approved file from the Graphic Modeling Department (approximately four months from the date of this mailing). If the Invention Brochure is to your satisfaction, then you may approve it through the Client Web Portal or by email to the artist who created it. If modifications are required, you can, as always, give us a call, or discuss any changes via email or the Client Web Portal. Once approved, your Invention Brochure will be available for download by you at any time through your personalized Client Web Portal. Please note that your Invention Brochure, like your Virtual Model, will not be made available to the public until the filing of your patent application by your patent attorney/agent and the obtainment of your patent-pending serial number. Step 4: Preparation of the Media Press Release. Once your Invention Brochure is complete and approved by you, our Media Department will begin preparation of your invention concept Media Press Release. This release will “announce” your invention concept to the world by highlighting the newsworthy aspects of the invention concept in a concise manner that is likely to be picked up and published to large audiences by the media outlets we distribute it to. The Media Press Release is yet another tool utilized by us to create further “buzz” about your invention concept. Once completed, our Media Department will notify you via email and upload your Media Press Release to your Client Web Portal. Completion of the Media

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Press Release is expected to occur within one month of receipt by the Media Department of your approved file from the Brochure Department (approximately five months from the date of this mailing). If the Media Press Release is to your satisfaction, then you may approve it through the Client Web Portal or by email to the press agent who created it. If modifications are required, you can, as always, place a phone call to your press agent, or discuss any changes via email. Once approved, your finalized Media Press Release, like all other materials we prepare on your behalf, will be available for download by you at any time through your personalized Client Web Portal. Please note that, like your Virtual Model and Invention Brochure, the Media Press release will not be published at this point. Publication of these items will occur upon receipt of your patent-pending serial number from your patent attorney/agent. Step 5: Preparation of the Personalized Product Web Page. Our in-house web masters will combine all of the creative promotional elements, such as your Virtual Model, renderings, promotional copy from your Invention Brochure and any other relevant information, to design your Personalized Product Web Page. This web page will contain a full portfolio of information about your invention, all contained in one convenient location. Links to your Invention Brochure, your Virtual Model, your Media Press Release and your customized television commercial production (step 7 below) will allow potentially interested viewers to instantly download or view any of these items. Upon completion of the Personalized Product Web Page, a link to it will be provided to you via your personalized Client Web Portal. Completion of your Personalized Product Web Page is expected to occur within one month of receipt by the Web Design Department of your approved file from the Media Department (approximately six months from the date of this mailing). If the Personalized Product Web Page is not to your satisfaction and modifications are required, you can call us, or discuss any changes via email. Please note that, like your Virtual Model, Invention Brochure, and Media Press release, your Personalized Product Web Page will not be “published” (i.e. made public) at this point. Publication will occur upon receipt of your patent-pending serial number from your patent attorney/agent. Step 6: Production of the product television commercial. Perhaps the most exciting component of our Customized Marketing Matrix is the production of a high-definition custom television commercial for your invention/product. Utilizing your previously approved Virtual Model and renderings, our Television Production Department will animate the Virtual Model and create a custom commercial script. This script, describing and highlighting the unique features of your invention will be used to professionally “voice-over” and narrate the commercial. The commercial will also utilize toll-free telephone numbers provided by Invents Company for tracking purposes, with viewers of the commercial invited to call these numbers for further information or with purchase inquiries. When your commercial airs in a major metropolitan market, operators at our 24 hour call center will field all incoming calls and collect pertinent call data. Completion of your high-definition Custom Television Commercial is expected to occur within two months of receipt by the Television Production Department of your approved file from the Web Design Department (approximately eight months from the date of this mailing). Please note that the custom television commercial does not require your approval, since it consists simply of elements that you have previously approved (your invention concept renderings, promotional copy from your Invention Brochure, etc.). Once the assigned director within our Television Production Department has signed off on completion of the production, a link will be provided in your Personalized Client Web Portal whereby you can view the commercial. Step 7: Research and assembly of the Prospective Licensee List.

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After the Television Production Department has completed your Custom Television Commercial, your assigned Licensing Agent will compile a custom list of prospective companies who may have interest in licensing or manufacturing your invention. Compilation of this list will occur after careful research through proprietary databases and any other additional research which we may deem appropriate. We expect this research to be completed, and the Prospective Licensee List to be compiled within one month of your file reaching the Licensing Department (approximately nine months from the date of this mailing). This list will be posted to your Client Web Portal as soon as it is complete.

Step 8: Preparation of your patent application by your patent attorney. Once all of the various promotional items (Virtual Model, Invention Brochure, Media Press Release, Personalized Product Web Page, Custom Television Commercial) have been completed and approved by you, and you are confident that there will not be any changes to the overall invention concept, your patent attorney/agent will commence preparation of your patent application. If all has gone well up to this point, this should occur roughly ten months from the date of this mailing. Please correspond directly with your patent attorney- Invents Company can offer no advice, guidance or counsel in any way relating to your patent application- that is strictly the purview of your patent attorney. Indeed, Invents Company has no access to any correspondence between you and your patent attorney, and you should keep all correspondence completely confidential.

Step 9: Filing of the patent with the US PTO. Once you have signed off on your patent application (because you are the sole owner of the invention and Invents Company has no share of the invention concept itself, you alone will sign all patent-related paperwork) it will be filed by your patent attorney/agent with the United States Patent and Trademark Office and a patent-pending serial number will be assigned. The granting of your patent pending serial number by the United States Patent and Trademark Office should occur within twelve months from the date of this mailing. Please grant your patent attorney/agent express permission to share that patent-pending serial number with us if he/she requests you to. Once your patent pending serial number is received, it is “off to the races” as we begin to utilize and publish all of the promotional items we have been working on thus far.

Step 10: Publication of all materials. Once your patent-pending serial number filing receipt has been obtained, we will immediately publish your Personalized Product Web Page, your Virtual Model, your Invention Brochure and your Media Press Release at the Invents Company web site. You will be notified as to when these pages will go “live” on our hosted web site, and of the appropriate links, via the Client Web Portal. You should expect a go-live date approximately thirteen months from the date of this mailing.

Step 11: Debut airing of the Custom Television Commercial and product test marketing. Your high-definition Custom Television Commercial will air on four separate occasions in a major metropolitan market. Air time will be purchased by us at our expense and scheduled immediately upon the receipt of your patent-pending serial number, and the commercial will air immediately thereafter. You should expect the first commercial to run approximately fourteen months from the date of this mailing. Airings will likely be scheduled to run one per week for a period of four weeks. You will be notified via the Client Web Portal of the pending air dates of your commercial, and you may access all relevant test marketing information and results subsequent to

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the fourth and final commercial airing (we do not assemble the call data until all four spots have run).

Step 12: Dissemination of the Media Press release. Once all of the call data has been assembled from the Custom Television Commercial airing, your Media Press Release will be mass distributed to pertinent newspapers, magazines, trade journals, search engines (Google, Yahoo News, Bing, etc.) journalists/bloggers and opt-in news subscribers. If the results of the Custom Television Commercial airing were exceptionally impressive, the Media Press Release will be revised to include this fact. If results were average, the Media Press Release will be distributed in its original format that was approved by you. Any relevant statistics (such as what publications or web sites, if any, ran a story about your invention) will be available through the Client Web Portal. You should expect distribution of the original or revised Media Press Release approximately fifteen months from the date of this mailing.

Step 13: Soliciting the Prospective Licensee List. Every company on your compiled Prospective Licensee List will be presented with a comprehensive Inventor’s Package. The package includes your Invention Brochure, Virtual Model, press materials (Media Press Release and any resultant press coverage), a link to your Personalized Product Web Page and Custom Television Commercial, and any favorable Custom Television Commercial Test Marketing results. All companies receiving your Inventor’s Package will be invited to contact us for additional information. Details regarding this list as well as any status changes such as contact or correspondence are available in real-time via your Client Web Portal. Any correspondence between a potentially interested company and our Licensing Department (whether it be via email, letter or a telephone conversation) is documented and logged into your Client Web Portal for your immediate review. Detailed notes will be taken regarding the subject of the correspondence, with whom the correspondence took place, and the expected follow-up. Solicitation of the Prospective Licensee List should commence approximately fifteen months from the date of this mailing (commensurate with distribution of the Media Press Release).

Step 14: Follow-up of all companies on the Prospective Licensee List.

After an Inventor’s Package has been sent to every company on the Prospective Licensee List, your assigned licensing agent will conduct a follow-up campaign in an attempt to open up a line of communication with any company’s whom we have not yet had correspondence with. These follow-up campaigns will typically entail attempts by your Licensing Agent to personally reach an upper-level executive with new product decision making authority. Just as with the initial solicitation of your Prospective Licensee List, any communications resulting from the follow-up campaign will be documented and logged into your Client Web Portal for your immediate review. In the event that a significant communication occurs (i.e. one that might necessitate a meeting or conference call) your Licensing Agent will immediately contact you via telephone. Accordingly, please ensure that we have valid and current immediate-reach phone numbers on file for you. The follow-up campaign will commence within one month of completion of the initial solicitation of the Prospective Licensee List (approximately seventeen months from the date of this mailing).

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450 7th Avenue Suite #1107

New York, NY 10123

212- 620-2629

www.invents.com

ARTWORK AND RENDERING APPROVAL REQUEST

July 27, 2011

Roger Bailin 721 Medina Court Atlanta, GA 30316

Dear Mr. Bailin,

We are pleased to attach a first draft of the artwork and renderings for your new product- the IT

Multi-Tool. This artwork will be utilized in your Invention Brochure as well as throughout

production of your product television commercial. If you have already approved this artwork

draft via your Client Portal, please disregard this notice. Otherwise, please indicate your

approval by affixing your signature below. Make any changes or comments directly on the

attached draft sheet.

Approval signature: ______________________________

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New York, NY 10123

212- 620-2629

www.invents.com

INVENTION BROCHURE APPROVAL REQUEST

September 1, 2011


Dear Mr. Bailin,

We are pleased to attach a first draft of the Invention Brochure for your new product- the IT Multi-

Tool. This is part of the package that will be sent to any interested manufacturers and potential

licensees whom we decide to target. If you have already approved this brochure via your Client

Portal, please disregard this notice. Otherwise, please indicate your approval by affixing your

signature below. Make any changes or comments directly on the attached draft brochure.


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MEDIA PRESS RELEASE APPROVAL REQUEST

November 23, 2011


Dear Mr. Bailin,

We are pleased to attach the Media Press Release for your new product- the IT Multi-Tool. If you

have already approved this press release via your Client Portal, please disregard this notice.

Otherwise, please indicate your approval by affixing your signature below. Make any changes or

comments directly on the attached Media Press Release. Once approved, your product press

release will be distributed to all pertinent mass media.


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PERSONALIZED PRODUCT WEB PAGE

December 12, 2011


Dear Mr. Bailin,

By following the link www.invents/mutli-tool, you will be able to view the completed web site for

your new product- the IT Multi-Tool. As you can see, the site contains video from your product

television commercial, as well as cost data, a download link for your full-color Invention

Brochure, and a link for an interested manufacturer to connect with your assigned Licensing

Agent at Invents Company. Your Personalized Product Web Page will be hosted and maintained

by Invents Company.

Company Overview170 W. Tasman Dr.San Jose, CA 95134 United StatesPhone : 408-526-4000Fax : 408-526-4100800-553-6387http://www.cisco.com

Cisco Systems routes packets and routs competitors with equal efficiency. Dominating the market for Internetprotocol-based networking equipment, the company provides routers and switches used to direct data, voice, andvideo traffic. Other products include remote access servers, IP telephony equipment, optical networkingcomponents, Internet conferencing systems, set-top boxes, and network service and security systems. Thecompany sells its products primarily to large enterprises and telecommunications service providers, but it alsomarkets products designed for small businesses and consumers such as routers, modems, and home networkmanagement software. Cisco gets more than half of its sales in North America.

Key InformationDUNS Number 153804570Location Type HeadquartersSubsidiary Status NoManufacturer YesCompany Type PublicPlant/Facility Size (sq. ft.) 2,600,000.00Owns/Rents OwnsForeign Trade Imports / ExportsAccountant PricewaterhouseCoopers LLPTotal Employees 71,8251-Year Employee Growth 1.59%Employees At This Location 700Year of Founding or Change in Control 1984Primary Industry 1096:Routing & Switching Equipment ManufacturingPrimary SIC Code 35770000:Computer peripheral equipment, necPrimary NAICS Code 334119:Other Computer Peripheral EquipmentTradestyle CISCO SYSTEMSLatitude/Longitude 37.40974 / -121.953552

Key FinancialsFiscal Year-End JulySales ($ M) $43,218.00M1-Year Sales Growth 7.94%Net Income $6,490.00M1-Year Net Income Growth (16.44%)Total Assets $87,095.00MMarket Value $101,496.31MPrescreen Score Low Risk

Company Rankings62 in FORTUNE 500 (May 2011)S&P 500Dow Jones IndustrialsDow Jones Global Titans57 in FT Global 500 (June 2011)

62 in FORTUNE 1000 (May 2011)

Key PeopleName Title

Mr. John T. Chambers Chairman and CEOMr. Gary B. Moore EVP and COO

Mr. Frank Calderoni EVP and CFOMs. Rebecca J. Jacoby SVP and CIOMs. Padmasree Warrior CTO; SVP and General Manager, Enterprise, Commercial and

Small BusinessMs. Blair Christie Chief Marketing and Communications Officer Worldwide

Government AffairsMr. Wim Elfrink EVP Cisco Services and Chief Globalization OfficerMr. Ned Hooper SVP and Chief Strategy Officer

Mr. Robert Lloyd EVP Worldwide OperationsMr. Randy Pond EVP Operations, Processes, and Systems

Company DescriptionWhile Cisco's product sales were up 6% in 2011 and sales of services rose by more than twice that amount, thecompany's profit margin declined for the year (after a boost in 2010) due in part to more than $900 million inrestructuring charges associated with an effort to bring down operating expenses and reduce sales costs in thelong term.In response to declining profits and stock prices in 2011 caused by global competition, reduced spending by publicsector and consumer customer segments in particular, and a decline in the performance of the switching productsegment due to product transitions, the company divested or exited non-core product areas to focus on its centralrouting and switching products and related services. Restructuring efforts included implementing a voluntary earlyretirement program, elimination of some jobs, and simplification of its geographic reporting structure.Cisco also streamlined its sprawling organization around key customer segments -- enterprise, service provider,and partners. The company announced that it would discontinue consumer products such as the popular Flipvideo camcorder, and its high-end umi consumer videoconferencing product, which will be folded into its businesstelepresence division.Bright spots for 2011 were Cisco's emerging markets and the new products segments which each experienced a14% increase in sales. Looking ahead the company is focusing on maintaining its hold on the routing and switchingmarkets while continuing to invest in new or adjacent markets, particularly with the video, collaboration, datacenter virtualization, and cloud computing sectors.With the global economic climate somewhat improved, Cisco got back into the M&A game in a big way in 2010 withits purchase of TANDBERG, a Norwegian competitor in the videoconferencing market. The $3.4 billion cash dealsupplemented Cisco's high-end TelePresence systems with TANDBERG's lower-end line, which ranged from PC-based conferencing capabilities to more sophisticated gear, less expensive than Cisco's offerings. Cisco formed itsTelePresence Technology Group around the former TANDBERG operations.On a smaller scale that year, Cisco bought CoreOptics, a German-American developer of integrated circuits andoptical network transponders capable of delivering high-speed data transmission rates, for about $99 million. Withglobal IP traffic projected to grow 40% per year due to high demand for cloud computing services, mobile dataservices, and video streaming, Cisco can find plenty of applications for the CoreOptics technology. The deal alsoboosted Cisco's presence in Europe.In another move to expand beyond its traditional networking role in 2010, Cisco bought ExtendMedia, a maker ofcontent management systems (CMS) software used to create and deliver video content to computers and mobiledevices; its customers include AT&T and Paramount Pictures. The CMS software complements Cisco's own IP videoproduct line, particularly its next-generation video platform for service providers known as Videoscape. Asconsumers move away from simply watching cable or TV, they expect to be able to watch high-quality video contentfrom any source on multiple devices. Toward the end of the year, Cisco acquired Inlet Technologies, a maker ofdigital media processing and delivery hardware and software systems.To expand its Smart Grid business unit in 2010, Cisco bought Arch Rock, a developer of wireless technology for IP-based metering infrastructure systems. Late that year the company acquired LineSider, a maker of networkmanagement software used in cloud computing infrastructure applications, to supplement its network provisioningdevelopment efforts.In 2011 Cisco acquired California-based Pari Networks in a move to improve its ability to provide customizednetwork services to its clients. Pari Networks specializes in security risk and policy compliance managementsoftware tools that enable businesses and communications service providers manage the setup of their networksystems. Also that year the company paid $95 million in cash to buy North Carolina-based digital media processingspecialist Inlet Technologies. The deal added adaptive bit rate technology to its Videoscape TV product, enablingthe platform to throttle the quality of streaming video to a variety of devices in real time depending on the capacityof the data connection.Cisco continued its 2011 acquisition spree when it bought privately held newScale, a developer of software thatprovides a service catalog and self-service portal to IT organizations that want to select and manage cloudservices within their business. The deal supplements Cisco's existing software delivering cloud computing services.Also that year, it acquired the UK-based AXIOSS service management business from Comptel for $31 million.AXIOSS contributes to Cisco's Prime network services management products with ordering and fulfillmentautomation.Cisco additionally announced the acquisition of San Francisco-based software startup Versly in 2011. Versly'sapplication is designed to enable more integrated collaboration between users of Microsoft Office products as theywork collectively on projects that require the group to stay updated on everyone's progress. Cisco intends Versly'stechnology to act as a bridge between the Office suite and its own platform to extend functionality for its existingusers, improve its appeal to new customers, and better compete with Microsoft.Late in the year, Cisco bought Massachusetts-based video delivery software company BNI Video, which augmentsCisco's Videoscape TV platform. BNI's software also helps video service providers, such as cable, telco, and

Company HistoryCisco Systems was founded by Stanford University husband-and-wife team Leonard Bosack and Sandra Lerner andthree colleagues in 1984. Bosack developed technology to link his computer lab's network with his wife's network inthe graduate business school. Anticipating a market for networking devices, Bosack and Lerner mortgaged theirhouse, bought a used mainframe, put it in their garage, and got friends and relatives to work for deferred pay. Theysold their first network router in 1986. Originally targeting universities, the aerospace industry, and thegovernment, the company in 1988 expanded its marketing to include large corporations. Short of cash, Cisco turnedto venture capitalist Donald Valentine of Sequoia Capital, who bought a controlling stake and became chairman. Hehired John Morgridge of laptop maker GRiD Systems as president and CEO.Cisco, whose products had a proven track record, had a head start as the market for network routers opened up inthe late 1980s. Sales leapt from $1.5 million in 1987 to $28 million in 1989.The company went public in 1990. That year Morgridge fired Lerner, with whom he had clashed, and Bosack quit.The couple sold their stock for about $200 million, giving most to favorite causes, including animal charities anda Harvard professor looking for extraterrestrials.With competition increasing, Cisco began expanding through acquisitions. Purchases included networking companyCrescendo Communications (1993) and Ethernet switch maker Kalpana (1994). Cisco also surpassed the $1 billionrevenue mark in 1994. In 1995 EVP John Chambers succeeded Morgridge as president and CEO; Morgridge becamechairman (and Valentine vice chairman).Cisco entered the service provider market in 1996, when it introduced a line of customer premises equipment (CPE)products. The following year the company broke into the FORTUNE 500.Cisco acquired several niche players in 1998, such as Precept Software (video transmission software) and AmericanInternet Corporation (software for set-top boxes and cable modems). That year Cisco's market capitalization passedthe $100 billion milestone, a landmark accomplishment for a company its age.In 1999 Cisco launched a new business line aimed at bringing high-speed Internet access to the consumer market. Inits largest acquisition to date, Cisco bought Cerent (fiber-optic network equipment) for $7 billion.The company continued its acquisitive ways in 2000, snatching up more than 20 companies, including wirelessnetwork equipment maker Aironet. With a market capitalization exceeding $500 billion, Cisco also enjoyed a turn asthe world's most valuable company that year.The company's heavy investment in Internet protocol-based telecommunications equipment proved costly when anindustry-wide downturn slowed spending among telecom service providers in 2001. Chambers guided Cisco throughsignificant rebuilding measures, including job cuts and a reorganization that aligned its operations around coretechnologies rather than customer segments.Entering yet another market, Cisco acquired storage networking switch maker Andiamo Systems in 2002 (the dealclosed in 2004). Key acquisitions over the next few years included home networking specialist Linksys (2003),conferencing systems provider Latitude Communications (2004), and router developer Procket Networks (2004).The acquisition of Procket Networks bolstered Cisco's internal router development. In 2004 the companyintroduced the CRS-1, a new router designed to compete with high-end offerings from challengers such as JuniperNetworks. Featuring an overhauled version of Cisco's Internetwork Operating System (IOS), the CRS-1 resulted fromfour years of development and an investment of $500 million. Cisco purchased wireless networkingvendor Airespace in 2005. The acquisition provided Cisco with wireless LAN equipment for the enterprise andgovernment sectors.The company's acquisition of cable set-top box leader Scientific-Atlanta for approximately $6.9 billion also countedamong its most ambitious moves. That deal, which closed in 2006, was the second-largest purchase in its history.(Cisco had paid $7 billion for optical networking equipment maker Cerent in 1999.) Cisco had long been an advocateof the convergence of technology behind data, voice, and television networks, and the acquisition of Scientific-Atlanta made it one of the leading providers of the set-top boxes that cable service providers use to deliveradvanced features such as movies-on-demand.Cisco spent more than $1 billion over three years to expand its operations in India, and in 2007 it unveiled a $16billion expansion plan for China, including investments in manufacturing, education programs, and venture capital.Among its most significant purchases, the company acquired WebEx Communications (now known as CiscoWebEx), a leading provider of Internet conferencing systems, for approximately $3.2 billion in 2007. It alsobought network security specialist IronPort Systems (now Cisco IronPort Systems) for around $830 million thatyear.Cisco purchased Pure Networks, a developer of management software for home networks, in 2008. It also acquirede-mail and calendar software maker PostPath that year.In 2009 Cisco acquired Starent Networks for about $2.9 billion in cash. Starent specialized in systems and softwarefor wireless networks, helping satisfy global demand for more mobile access to the Internet.

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