BY MS. POST: Q. Ms. Richardson, I'm handing you what's been marked for identification as Exhibit 35. Please take a minute to look through that. For the record, this exhibit is entitled "Linus Technology Corporation, Percentage of Float Held or Controlled by Reiter Securities and Others, June 24, 1996 through June 28, 1996." Ms. Richardson, is this one of the summaries that you prepared at the direction of counsel in this case? A. Yes. Q. Could you please describe for the Court how you prepared Exhibit 35? A. I prepared Exhibit 35 using data contained in the Depository Trust Company security position listing for Linus Technology Corporation from June 27, through July 3, 1996 and the Daymark & Company position update report from June 24th through June 28, 1996. MR. COOPER: I'm sorry, the second document was what? A. The Daymark & Company position update report from June 24 to June 28, 1996. Q. I'm sorry, please continue. A. On the exhibit there are various percentages under the columns Reiter Securities, Chase, Chemical and other firms. I computed those percentages by taking the firm's shares that are held at the Depository Trust Company in the stock of Linus, plus the green shoe, over the shares outstanding, less restricted stock plus the green shoe in Linus. Q. That was the first column, the Reiter Securities column? A. For each of the columns, that's how I computed. I took the individual firms, Reiter Securities, Chase, Chemical and then totalled the other firm's shares at the Depository Trust Company, plus the green shoe, over the shares outstanding, less the restricted stock, plus the green shoe. THE COURT: Excuse me, what is this term, "green shoe?" THE WITNESS: Green shoe is where the underwriter can purchase additional shares from the issuer to cover an over allotment. If more shares are sold than what is offered in the IPO, in the initial IPO. THE COURT: Proceed. BY MS. POST: Q. You just answered a question a minute ago about the green shoe. Is the green shoe also often called the overallotment option? A. Yes. Q. Just a couple of explanatory questions. The Depository Trust Company security position listing, please describe what that is? A. That is a listing that shows for a stock the number of shares held for a DTC participant, such as a broker dealer or a bank. Q. And the Daymark & Company position update, what is that? A. That is a report that shows a firm's share position in a stock. It shows the firm's opening share position for the day, it shows all the purchases and sales of shares in the stock, and it shows the firm's ending position or share position in the stock. Q. What was Daymark & Company? A. Daymark & Company cleared the transactions for Reiter Securities. They were their clearing firm. Q. They were Reiter Securities' clearing firm? A. Yes. Q. One last question, DVP accounts that are listed under the footnote in the numerical tables, what are DVP accounts? A. A DVP account is a delivery versus payment account. A customer who has this type of account would instruct a firm when it purchases shares to have that stock delivered to a certain account for payment. Q. The graphs that follow the first page of Exhibit 35, did you prepare those graphs also? A. Yes. Q. And where did the data reflected on those drafts come from? A. It comes from the first page of the exhibit. MS. POST: Your Honor, I move the admission into evidence of Exhibit 35. MR. COOPER: I'd like to voir dire the witness, your Honor. THE COURT: Go ahead. BY MR. COOPER: Q. Ms. Richardson, the information on the green shoe, there would be nothing on the green shoe in the Daymark position update, would there? A. The green shoe, you'll find it on the Daymark & Company position update at a different date. Q. Right, that's what I don't understand. The securities in the green shoe were not actually sold until July of 1996, is that your understanding? A. No. Q. And again, ma'am, I'm not trying to be argumentative with you. One of the exhibits in evidence is the Linus 1996 annual report, which states that the green shoe was sold in July of 1996. A. I don't understand. Q. Ms. Richardson, here's what I'm - here's where I'm coming up short. THE COURT: Is there a question in there? MR. COOPER: Yes, your Honor, I'm actually trying to expedite this, because if she and I are not having a legitimate communication gap, then I'll probably be through with the witness. BY MR. COOPER: Q. Were you attempting to do this summary in an accurate and impartial a fashion as possible? A. Yes. Q. Okay, and then can you just explain for me in layman's language, just explain, I'm confused. If the green shoe securities were not sold until July of '96, why are they included in your computation of the float? A. I don't know that they were sold in July. I know from the position update report as of June 24th, June 25th and June 26th, that additional shares were sold to customers in addition to the 2 million shares offered in the offering. Q. So that's what you're saying, is that the Daymark position update, which is done on a trade date basis, as opposed to the DTC, which is done on a settlement basis, the Daymark position update actually shows securities in the green shoe? A. It shows additional shares being sold to customers in addition to the 2 million offered in the IPO. Q. And then as we get to, for example, the 27th or 28th on the DTC security position listing, does the green shoe also begin to show up there? A. I don't believe so. Q. Would you explain that for me? A. I know the green shoe was delivered into Reiter Securities' position update report in July. The number of shares in July is shown as coming in. However, additional shares were sold to customers between June 24th and June 26th. The broker went to the issuer and bought shares to cover those shares. MR. COOPER: Judge, that's as much voir dire as I think I'm entitled to at this point. If they're offering the exhibit, I have no objection to it. THE COURT: Admitted.