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 
                            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 
                                 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.