<PAGE> 1
<TABLE>
<S> <C>
-------------------------------
UNITED STATES OMB APPROVAL
SECURITIES AND EXCHANGE COMMISSION -------------------------------
WASHINGTON, D.C. 20549 OMB Number: 3235-0145
Expires: August 31, 1999
Estimated average burden hours
per response . . . . . 14.90
-------------------------------
</TABLE>
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)*
Yurie Systems, Inc.
- -------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.01 par value
- -------------------------------------------------------------------------------
(Title of Class of Securities)
98871Q102
-----------------------------------
(CUSIP Number)
John J. McDonnell, Esq.
Secretary and General Counsel
Yurie Systems, Inc.
8301 Professional Place
Landover, MD 20785
(301) 352-4600
- -------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
Copies to:
James H. Schropp, Esq.
Fried, Frank, Harris, Shriver & Jacobson
1001 Pennsylvania Avenue, N.W., Suite 800
Washington, D.C. 20004-2505
(202) 639-7120
May 11, 1998
-----------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7 for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
<PAGE> 2
SCHEDULE 13D
<TABLE>
<CAPTION>
----------------------------------------------- ----------------------------------------------------
CUSIP NO. 98871Q102 PAGE 2 OF 9 PAGES
------------------------------ --------------- ---------------
----------------------------------------------- ----------------------------------------------------
<S> <C> <C>
----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Harry J. Carr
----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
----------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,000,000
SHARES
BENEFICIALLY
OWNED BY --------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING -0-
PERSON
WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,000,000
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,000,000
----------------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Approximately 3.8% of the shares outstanding as of April 24, 1998
----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Exhibit Index on Page 9
<PAGE> 3
SCHEDULE 13D
<TABLE>
<CAPTION>
----------------------------------------------- ----------------------------------------------------
CUSIP NO. 98871Q102 PAGE 3 OF 9 PAGES
------------------------------ --------------- ---------------
----------------------------------------------- ----------------------------------------------------
<S> <C> <C>
----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jeong H. Kim
----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
----------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 13,187,600*
SHARES
BENEFICIALLY
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING -0-
PERSON
WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
12,500,200*
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
687,400
----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
13,187,600*
----------------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Approximately 51.7% of the shares outstanding as of April 24, 1998
----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Includes 200 shares of common stock owned by Mr. Kim's spouse, Cynthia Kim,
as to which he disclaims beneficial ownership.
Exhibit Index on Page 9
<PAGE> 4
SCHEDULE 13D
<TABLE>
<CAPTION>
----------------------------------------------- ----------------------------------------------------
CUSIP NO. 98871Q102 PAGE 4 OF 9 PAGES
------------------------------ --------------- ---------------
----------------------------------------------- ----------------------------------------------------
<S> <C>
----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Kwok L. & Felice Li
----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
----------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 3,120,000*
SHARES
BENEFICIALLY
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING -0-
PERSON
WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
3,120,000*
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,120,000*
----------------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Approximately 12.2% of the shares outstanding as of April 24, 1998
----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Includes 900,000 shares of common stock owned by Mr. Li's spouse, Felice
Li, as to which Mr. Li disclaims beneficial ownership. Also, includes
2,200,000 shares of common stock held of record by Linsang Partners LLC, of
which Mr. Li holds a controlling interest.
Exhibit Index on Page 9
<PAGE> 5
SCHEDULE 13D
<TABLE>
<CAPTION>
----------------------------------------------- ----------------------------------------------------
CUSIP NO. 98871Q102 PAGE 5 OF 9 PAGES
------------------------------ --------------- ---------------
----------------------------------------------- ----------------------------------------------------
<S> <C> <C>
----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Linsang Partners LLC
----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
----------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 2,200,000
SHARES
BENEFICIALLY
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING -0-
PERSON
WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,200,000
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,200,000
----------------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Approximately 8.6% of the shares outstanding as of April 24, 1998
----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Exhibit Index on Page 9
<PAGE> 6
<TABLE>
<CAPTION>
----------------------------------------------- ----------------------------------------------------
CUSIP NO. 98871Q102 PAGE 6 OF 9 PAGES
------------------------------ --------------- ---------------
----------------------------------------------- ----------------------------------------------------
<S> <C> <C>
----------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barton Y. Shigemura
----------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
----------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
----------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
OO
----------------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
----------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 996,000
SHARES
BENEFICIALLY
OWNED BY --------------------------------------------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING -0-
PERSON
WITH --------------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
996,000
--------------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
----------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
996,000
----------------------------------------------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
----------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Approximately 3.8% of the shares outstanding as of April 24, 1998
----------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
----------------------------------------------------------------------------------------------------------------------
</TABLE>
Exhibit Index on Page 9
<PAGE> 7
This Amendment No. 1 ("Amendment No. 1") amends and supplements the
Schedule 13D filed on behalf of Harry J. Carr, Jeong H. Kim, Kwok L. & Felice
Li, Linsang Partners LLC ("Linsang") and Barton Y. Shigemura (each a "Reporting
Person" and collectively "Reporting Persons") on May 8, 1998 relating to the
Common Stock, par value $.01 per share, of the Yurie Systems, Inc., a Delaware
corporation (the "Company"), and is hereby filed on behalf of the Reporting
Persons. All capitalized terms used in this Amendment No. 1 and not otherwise
defined herein have the meanings previously ascribed to such terms in the
Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item No. 5(a) is hereby amended by deleting the last sentence and
replacing it with the following:
As a group, the Reporting Persons beneficially own 18,303,600 shares
of Common Stock, representing 66.5% of the outstanding Common Stock as of April
24, 1998
Item No. 5(c) is hereby amended by deleting that Item in its entirety
and replacing it with the following:
Other than as reported immediately below, none of the Reporting
Persons effected a transaction with respect to the Common Stock since the
filing of the Schedule 13D on May 8, 1998. On May 11, 1998, Mr. Kim
transferred 100,000 shares of Common Stock to the Jeong H. Kim Foundation as an
irrevocable gift. On May 11, 1998, Ms. Li transferred 50,000 shares of Common
Stock to Father John Sweeney as an irrevocable gift.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Item 6 is hereby amended and supplemented by inserting the following
paragraph immediately after the last paragraph thereof:
On May 11, 1998, Parent and the Purchaser entered into two separate
release agreements with Jeong H. Kim and Felice Li, releasing an aggregate of
150,000 Subject Shares from the Stockholders Agreement, in order to permit such
individuals to make certain charitable contributions.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item No. 7 is hereby amended and supplemented by inserting the
following exhibits immediately after the last exhibit appearing thereunder:
(10) Release Agreement, dated May 11, 1998, among Parent,
Purchaser and Jeong H. Kim.
(11) Release Agreement, dated May 11, 1998, among Parent,
Purchaser and Felice Li.
Page 7 of 9 Pages
Exhibit Index on Page 9
<PAGE> 8
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief,
each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
<TABLE>
<S> <C> <C>
Dated: May 14, 1998 HARRY J. CARR
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
Dated: May 14, 1998 JEONG H. KIM
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
Dated: May 14, 1998 FELICE LI
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
Dated: May 14, 1998 KWOK L. LI
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
Dated: May 14, 1998 LINSANG PARTNERS LLC
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
Dated: May 14, 1998 BARTON Y. SHIGEMURA
By: /s/ JAMES H. SCHROPP
-------------------------------------------
Name: James H. Schropp
Title: Attorney-in-Fact
</TABLE>
Page 8 of 9 Pages
Exhibit Index on Page 9
<PAGE> 9
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
-------
No. Exhibit
--- -------
<S> <C>
(10) Release Agreement, dated May 11, 1998, among Parent, Purchaser and Jeong H. Kim.
(11) Release Agreement, dated May 11, 1998, among Parent, Purchaser and Felice Li.
</TABLE>
Page 9 of 9 Pages
Exhibit Index on Page 9
<PAGE> 1
EXHIBIT (c)(10)
CONFORMED COPY
RELEASE AGREEMENT dated as of May 11,
1998 (this "Agreement"), by and among LUCENT
TECHNOLOGIES INC., a Delaware corporation
("Parent"), REINDEER ACQUISITION, INC., a
Delaware corporation ("Sub") and JEONG H. KIM
(the "Transferor").
WHEREAS, Parent, Sub and the Transferor entered
into that certain Stockholders Agreement dated as of April 27, 1998 (the
"Stockholders Agreement"), among Parent, Sub, the Transferor and certain other
stockholders of Yurie Systems, Inc., a Delaware corporation (the "Company"), as
a condition to the willingness of Parent and Sub to enter into that certain
Agreement and Plan of Merger dated as of April 27, 1998, among Parent, Sub and
the Company;
WHEREAS, the Transferor is the owner of 13,287,400 shares
(the "Subject Shares") of common stock, par value $.01 per share of the Company
("Company Common Stock"), which Subject Shares are subject to certain
restrictions pursuant to the Stockholders Agreement;
WHEREAS, the Transferor desires to transfer, as a gift,
100,000 shares (the "Transfer Shares") of the Subject Shares to the Jeong H.
Kim Foundation (the "Transferee") (the "Transfer");
WHEREAS, the Transfer is prohibited under the terms of the
Stockholders Agreement, without the prior written consent of Parent and Sub;
and
WHEREAS, as a condition to the willingness of Parent and
Sub to consent to the Transfer, Parent and Sub have requested the Transferor to
enter into this Agreement.
NOW THEREFORE, to induce Parent and Sub to consent
to the Transfer, and in consideration of such consent, and in consideration of
the premises, representations, warranties and agreements contained herein, the
parties hereby agree as follows:
1. Consent to Transfer. Parent and Sub hereby
consent to the Transfer and agree that at the time of and following the Transfer
the Transfer Shares will not be subject to the terms and provisions of the
Stockholders Agreement.
2. The Transfer. The Transferor shall, promptly
upon the execution of this Agreement by all of the parties
<PAGE> 2
2
signatory hereto, transfer the Transfer Shares to the Transferee. The Transferor
shall effect the Transfer in a manner that does not violate the Securities Act
of 1933, as amended, and the rules and regulations promulgated thereunder.
3. Assignment. Neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by the
Transferor without the prior written consent of Parent, which consent may be
withheld in Parent's sole and absolute discretion. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of and be
enforceable by the Transferor and his respective successors and assigns.
4. Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of Delaware without regard
to any applicable conflicts of law principles.
5. Retention Agreement Unaffected. With reference to
that certain Retention Agreement dated as of April 27, 1998 (the "Retention
Agreement"), among Parent, Sub, the Company, The Bank of New York and the
Transferor, and notwithstanding anything herein to the contrary, nothing in
this Agreement shall be construed to decrease the number of shares of Company
Common Stock that the term "Shares" (as defined in the Retention Agreement)
represents, which number shall be the number of shares of Company Common Stock
set forth on Schedule A to the Retention Agreement, without giving effect to
the Transfer.
6. Further Assurances. The Transferor will, from
time to time, execute and deliver, or cause to be executed and delivered, such
additional or further transfers, assignments, endorsements, consents and other
instruments as Parent or Sub may request, in their sole and absolute discretion,
for the purpose of effectively carrying out the transactions contemplated by
this Agreement and the Stockholders Agreement.
7. Counterparts. This Agreement may be executed
in two or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when two or more counterparts have been
signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.
<PAGE> 3
3
8. No Other Modification. Except as expressly
set forth herein, and then only with respect to the Transferor and not any other
stockholder of the Company, all of the provisions of the Stockholders Agreement
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed as of the day and year first written above.
LUCENT TECHNOLOGIES INC.
by /s/ William T. O'Shea
-------------------------
Name:
Title:
REINDEER ACQUISITION, INC.
by /s/ Paul D. Diczok
-------------------------
Name:
Title:
JEONG H. KIM
/s/ Jeong H. Kim
---------------------------
<PAGE> 1
EXHIBIT (c)(11)
CONFORMED COPY
RELEASE AGREEMENT dated as of May 11,
1998 (this "Agreement"), by and among LUCENT
TECHNOLOGIES INC., a Delaware corporation
("Parent"), REINDEER ACQUISITION, INC., a
Delaware corporation ("Sub") and FELICE LI (the
"Transferor").
WHEREAS, Parent, Sub and the Transferor entered into that
certain Stockholders Agreement dated as of April 27, 1998 (the "Stockholders
Agreement"), among Parent, Sub, the Transferor and certain other stockholders
of Yurie Systems, Inc., a Delaware corporation (the "Company"), as a condition
to the willingness of Parent and Sub to enter into that certain Agreement and
Plan of Merger dated as of April 27, 1998, among Parent, Sub and the Company;
WHEREAS, the Transferor, together with its affiliates, is
the owner of 3,170,000 shares (the "Subject Shares") of common stock, par value
$.01 per share of the Company ("Company Common Stock"), which Subject Shares are
subject to certain restrictions pursuant to the Stockholders Agreement;
WHEREAS, the Transferor desires to transfer, as a gift,
50,000 shares (the "Transfer Shares") of the Subject Shares to Father John
Sweeney (the "Transferee") (the "Transfer");
WHEREAS, the Transfer is prohibited under the terms of the
Stockholders Agreement, without the prior written consent of Parent and Sub; and
WHEREAS, as a condition to the willingness of Parent and
Sub to consent to the Transfer, Parent and Sub have requested the Transferor to
enter into this Agreement.
NOW THEREFORE, to induce Parent and Sub to consent to the
Transfer, and in consideration of such consent, and in consideration of the
premises, representations, warranties and agreements contained herein, the
parties hereby agree as follows:
1. Consent to Transfer. Parent and Sub hereby consent to
the Transfer and agree that at the time of and following the Transfer the
Transfer Shares will not be subject to the terms and provisions of the
Stockholders Agreement.
<PAGE> 2
2
2. The Transfer. The Transferor shall, promptly
upon the execution of this Agreement by all of the parties signatory hereto,
transfer the Transfer Shares to the Transferee. The Transferor shall effect the
Transfer in a manner that does not violate the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.
3. Assignment. Neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by the
Transferor without the prior written consent of Parent, which consent may be
withheld in Parent's sole and absolute discretion. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of and be
enforceable by the Transferor and her respective successors and assigns.
4. Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of Delaware without regard
to any applicable conflicts of law principles.
5. Retention Agreement Unaffected. With reference to
that certain Retention Agreement dated as of April 27, 1998 (the "Retention
Agreement"), among Parent, Sub, the Company, The Bank of New York and Kwok L.
Li, and notwithstanding anything herein to the contrary, nothing in this
Agreement shall be construed to decrease the number of shares of Company Common
Stock that the term "Shares" (as defined in the Retention Agreement)
represents, which number shall be the number of shares of Company Common Stock
set forth on Schedule A to the Retention Agreement, without giving effect to
the Transfer.
6. Further Assurances. The Transferor will, from time to
time, execute and deliver, or cause to be executed and delivered, such
additional or further transfers, assignments, endorsements, consents and other
instruments as Parent or Sub may request, in their sole and absolute
discretion, for the purpose of effectively carrying out the transactions
contemplated by this Agreement and the Stockholders Agreement.
7. Counterparts. This Agreement may be executed in two
or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when two or more counterparts have been
signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart.
<PAGE> 3
3
8. No Other Modification. Except as expressly
set forth herein, and then only with respect to the Transferor and not any other
stockholder of the Company, all of the provisions of the Stockholders Agreement
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed as of the day and year first written above.
LUCENT TECHNOLOGIES INC.
by /s/ William T. O'Shea
-------------------------
Name:
Title:
REINDEER ACQUISITION, INC.
by /s/ Paul D. Diczok
-------------------------
Name:
Title:
FELICE LI
/s/ Felice Li
---------------------------
