So the above conditionals in human language would read:
Devices that are:
1)Cisco and have name 'swi'
2)Any equipment type that is not CME
3)Any system name that is not *fw, *FW, *vpn, *.VPN
So, a netgear device with the name of Netgear01 would match (rule #2 and #3)
A F5 named F5Device would match (Rule #2 and Rule #3)
A Cisco switch named Switch 1 would match (Rule #1, Rule #2 and Rule#3)
A Cisco Firewall named FW-1 would match (Rule #2)
Now, I am basing this on "Equipment Type" being a Cisco, Netgear, F5, etc. But I think you get the idea. Anything that matches even one rule gets in. The only "dual condition" rule is the first one.