Install the bonding enslave programs
Shutdown any active network interfaces you intend to use with bonding
apt-get install ifenslave
Comment out the ethernet configurations from /etc/network/interfaces
sudo -s ifdown eth0 ifdown eth1
Add in the bonding configuration into /etc/network/interfaces
#auto eth0 #iface eth0 inet dhcp
Bring up the interface
auto bond0 iface bond0 inet dhcp slaves all bond-mode 4 bond-miimon 100
Bonding modes: mode=0 (balance-rr) Round-robin policy: Transmit packets in sequential order from the first available slave through the last. This mode provides load balancing and fault tolerance.
sudo ifup bond0
mode=1 (active-backup) Active-backup policy: Only one slave in the bond is active. A different slave becomes active if, and only if, the active slave fails. The bond's MAC address is externally visible on only one port (network adapter) to avoid confusing the switch. This mode provides fault tolerance. The primary option affects the behavior of this mode.
mode=2 (balance-xor) XOR policy: Transmit based on [(source MAC address XOR'd with destination MAC address) modulo slave count]. This selects the same slave for each destination MAC address. This mode provides load balancing and fault tolerance.
mode=3 (broadcast) Broadcast policy: transmits everything on all slave interfaces. This mode provides fault tolerance.
mode=4 (802.3ad) IEEE 802.3ad Dynamic link aggregation. Creates aggregation groups that share the same speed and duplex settings. Utilizes all slaves in the active aggregator according to the 802.3ad specification.
Pre-requisites: Ethtool support in the base drivers for retrieving the speed and duplex of each slave. A switch that supports IEEE 802.3ad Dynamic link aggregation. Most switches will require some type of configuration to enable 802.3ad mode.
mode=5 (balance-tlb) Adaptive transmit load balancing: channel bonding that does not require any special switch support. The outgoing traffic is distributed according to the current load (computed relative to the speed) on each slave. Incoming traffic is received by the current slave. If the receiving slave fails, another slave takes over the MAC address of the failed receiving slave.
Pre-requisite: Ethtool support in the base drivers for retrieving the speed of each slave. mode=6 (balance-alb) Adaptive load balancing: includes balance-tlb plus receive load balancing (rlb) for IPV4 traffic, and does not require any special switch support. The receive load balancing is achieved by ARP negotiation. The bonding driver intercepts the ARP Replies sent by the local system on their way out and overwrites the source hardware address with the unique hardware address of one of the slaves in the bond such that different peers use different hardware addresses for the server.
Testing results - I ran a simple ping from another machine and then while running unplugged each NIC and plugged it in while leaving at least (1) NIC attached rotating through all of the NIC which proves it switched between them and ping never stopped. Then I felt brave and used a FTP client and transferred a 12GB file from a laptop to the server doing the same rotating of pulling NIC wires. All worked flawlessly. I also rebooted and checked it again running through everything to make sure it kept the settings.
Check this site out for more information: http://blog.brightbox.co.uk/posts/howto-do-ethernet-bonding-on-ubuntu-properly
UPDATED: I got a script for the Cisco Switches to get this working
enable configure terminal interface <intf name> <intf number> channel-group <group number> mode active no shut interface port-channel <group number> no shut end write