From XYLAN SEC FILING :
In October 1996, Steve Kim and Yuri Pikover, executive officers and members of the Board of Directors
of the Company, entered into a program of periodic sales of shares of their Xylan Common Stock
through a blind trust for the purpose of diversifying their personal holdings. At the beginning of each
calendar quarter, Steve Kim and Yuri Pikover will deliver 125,000 and 55,000 shares, respectively, to
their blind trust for sale within the quarter, provided, however, the amount of shares to be delivered by
Mr. Kim was reduced to 80,000 shares commencing with the second quarter of 1998. Furthermore, the
trust for Steve Kim's children will sell 25,000 shares and Yuri Pikover's trusts will sell 20,000 shares
within each quarter. In addition, certain of the venture capital partnerships that invested in the Company
have distributed their holdings to their general and limited partners, who in turn have begun to resell such
shares on the open market. Any such sales by insiders or distributions by large investors may also have
an adverse effect on the market price of the Company's Common Stock. In addition, recent changes in
the rules regarding resales of restricted securities pursuant to Rule 144 of the Securities Act of 1933, as
amended, may result in a greater number of shares of the Company's Stock becoming available for resale
sooner than anticipated, and could have an adverse effect on the market price of the Company's Stock. |
