2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2 3 24 25 26 27 28 LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS LL P WILLIAM S . LERACH ( 68581) KEITH F . PARK (54275 ) SPENCER A . BURKHOLZ (147029) DANIEL S . DROSMAN (200643) JONAH H . GOLDSTEIN (193777) MATTHEW P . MONTGOMERY ( 180196 ) JESSICA T . SHINNEFIELD (234432) 655 West Broadway , Suite 190 0 San Diego, CA 92101 Telephone : 619/231-1058 619/231-7423 (fax) Bi11L@lerachlaw.com SpenceB@Ierachlaw.com DanD @ lerachlaw .com JonahG@Ierachlaw .com Matt M @lerachlaw.com JessicaS@Ierachlaw .com - and - PATRICK J . COUGHLIN (111070) LESLEY E . WEAVER (191305) 100 Pine Street , Suite 260 0 San Francisco , CA 94111 Telephone : 415/288-4545 415/288-4534 (fax) PatC@ lerachlaw .com LesleyW@lerachlaw.com Co-Lead Counsel for Plaintiffs LEVIN, PAPANTONIO, THOMAS, MITCHELL, ECHSNER & PROCTOR, P .A . TIMOTHY M . O'BRIEN (pro hac vice) 316 South Baylen Street , Suite 600 Pensacola , FL 3250 1 Telephone : 850/435-7000 850/497-7057 (fax ) UNITED STATES DISTRICT COUR T NORTHERN DISTRICT OF CALIFORNI A SAN JOSE DIVISION In re CISCO SYSTEMS , INC . SECURITIES ) LITIGATION ) This Document Relates To : ) ALL ACTIONS . ) Master File No . C-01-20418-JW(PVT) CLASS ACTION DECLARATION OF ALBERT ROSSI, C .P .A . DATE : December 5, 2006 TIME : 9 : 00 a .m . COURTROOM : The Honorable James Ware
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LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLPsecurities.stanford.edu/filings-documents/1018/CSCO01/20061120_r20d_0120418.pdf3 review of the thousands of documents produced by Defendants
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LERACH COUGHLIN STOIA GELLERRUDMAN & ROBBINS LLP
WILLIAM S. LERACH (68581)KEITH F. PARK (54275)SPENCER A. BURKHOLZ (147029)DANIEL S . DROSMAN (200643)JONAH H . GOLDSTEIN (193777)MATTHEW P . MONTGOMERY ( 180196)JESSICA T. SHINNEFIELD (234432)655 West Broadway , Suite 1900San Diego, CA 92101Telephone : 619/231-1058619/231-7423 (fax)[email protected]@Ierachlaw.comDanD@ lerachlaw [email protected]@lerachlaw.comJessicaS@Ierachlaw .com
- and -PATRICK J . COUGHLIN (111070)LESLEY E . WEAVER (191305)100 Pine Street , Suite 260 0San Francisco , CA 94111Telephone : 415/288-4545415/288-4534 (fax)PatC@ [email protected]
Co-Lead Counsel for Plaintiffs
LEVIN, PAPANTONIO, THOMAS, MITCHELL,ECHSNER & PROCTOR, P .A .
TIMOTHY M. O'BRIEN (pro hac vice)316 South Baylen Street, Suite 600Pensacola , FL 3250 1Telephone : 850/435-7000850/497-7057 (fax )
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNI A
SAN JOSE DIVISION
In re CISCO SYSTEMS , INC. SECURITIES )LITIGATION )
This Document Relates To : )
ALL ACTIONS. )
Master File No. C-01-20418-JW(PVT)
CLASS ACTION
DECLARATION OF ALBERT ROSSI,C .P.A .
DATE : December 5, 2006TIME: 9:00 a .m.COURTROOM : The Honorable James Ware
1 I, ALBERT ROSSI, C .P .A ., declare and state :
2 I . QUALIFICATIONS
3 1. I am a certified public accountant licensed to practice
4 in the State of California . I am the managing partner of Rossi ,
5 Doskocil & Finkelstein LLP, ("RDF") Certified Publi c
6 Accountants, which was founded in 1984 . RDF, located in Long
7 Beach, California, is a full-service CPA and consulting firm
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which provides a full range of auditing, accounting, tax,
management consulting and forensic accounting services to a
diverse group of clients . RDF is a registered firm with the
Public Company Accounting Oversight Board ("PCAOB") and a member
of the Private Company Practice Sections of the American
Institute of Certified Public Accountants ("AICPA") . I have more
than 29 years experience as an auditor and accountant, providing
services to closely-held and publicly-held companies . Moreover,
I have more than 25 years of experience providing expert
forensic accounting services for both plaintiffs and defendants
in complex litigation matters . I have been qualified as an
expert on Generally Accepted Accounting Principles ("GAAP") and
Generally Accepted Auditing Standards ("GARS") in various
federal district courts and California superior courts . I have
attached a copy of RDF's resume, as well as, the Curriculu m
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1 Vitae's of the primary senior personnel involved in the Cisco
2 engagement as Exhibit 1 hereto .
3
4 II . ENGAGEMENT PHASE I
5 2. RDF was retained by counsel for Plaintiffs in In Re
6 Cisco Systems, Inc . Securities Litigation, hereinafter referred
7 to as the Cisco Securities Litigation, to assist and provid e
8 expert consultation with respect to numerous accounting ,
9 financial reporting and disclosure, and auditing issues involve d
10 in the litigation . I served as the lead forensic accountin g
11 engagement partner on the Cisco Systems, Inc . ("Cisco" or the
12 "Company") litigation matter for RDF .
13 3. RDF's engagement commenced on approximately September
14 1, 2001 when we were retained by Lead Counsel for Plaintiffs t o
15 provide expert consultation in the formulation of accounting,
16 financial reporting and auditing allegations set forth in
17 Plaintiffs' Consolidated Complaint for Violations of the Federal
18 Securities Laws dated May 14, 2002 ("Consolidated Complaint") .
19 The Consolidated Complaint alleged that Cisco's financial
20 statements issued during the Class Period (August 10, 1999
21 through February 6, 2001) for the financial reporting period s
22 commencing with the fourth quarter and fiscal year ended Jul y
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1 31, 1999 and ending with the financial statements for the secon d
2 quarter ended January 27, 2001 were materially false and
3 misleading and failed to comply with GAAP . Furthermore, the
4 Consolidated Complaint alleged that Cisco's independent auditor,
5 PricewaterhouseCoopers LLP ("PwC"), failed to comply with GAAS
6 in the issuance of its audit reports on the fiscal year ended
7 July 31, 1999 and July 29, 2000 financial statements of Cisco .
8 3 . This first phase of our engagement involved a
9 comprehensive review and analysis of Cisco' s financia l
10 statements and related exhibits as filed with the Securities and
11 Exchange Commi ssion ( "SEC") on Forms 10-K for the years ended
12 July 31, 2002, 2001, 2000 and 1999 ; and Forms 10-Q for quarter s
13 ended during fiscal years 1999 to 2002 and for the interim
14 fiscal year 2003 quarterly periods . Additionally, we reviewed
15 various press releases and analyst reports issued during the
16 Class Period . The information learned during this first phas e
17 included the identification of numerous counterparties tha t
18 entered into equipment loan and lease transactions with Cisco
19 Systems Capital Corporation ("Cisco Capital"), a wholly owned
20 subsidiary of Cisco that provided financing to customer s
21 primarily for the purchase of Cisco products . We performed
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extensive searches and review of counterparty financial
information .
4 . After our review of the aforementioned material, we
consulted certain authoritative accounting literature,
including, but not limited to :
■ Statement of Financial Accounting Standards Board No . 13
(SFAS No . 13"), Accounting for Leases .
■ SEC Staff Accounting Bulletin No . 101 ("SAB No . 101"),
Revenue Recognition .
■ SEC Staff Accounting Bulletin No . 99 ("SAB No . 99"),
Materiality.
• SFAS No . 16, Prior Period Adjustments .
■ Accounting Principles Board Opinion No . 20 ("APB No . 20"),
Accounting Changes .
• SFAS No . 5, Accounting for Contingencies .
■ Accounting Research Bulletin No . 43 ("ARB No . 43"), Chapter
4, Inventory Pricing-
• SFAS No . 48, Revenue Recognition When a Right of return
Exists .
■ APB No . 28, Interim Financial Reporting .
■ AICPA Statement of Position No . 94-6 ("'SOP 94-6"),
Disclosure of Certain Significant Risks and Uncertainties .
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■ AICPA Audit Risk Alert, High Technology Industry .
5 . As a result of our work we prepared an extensive report
dated February 6, 2002 outlining major customer transactions,
accounting issues and analysis . Our analysis included, the
following counterparty transactions, ICG Communications, Inc .,
The following is the list of attorneys who are not on the list to receive e-mail notices for this case(who therefore require manual noticing) . You may wish to use your mouse to select and copythis list into your word processing program in order to create notices or labels for thes erecipients .
J . Erik Connolly
Winston & Strawn LLP
West Wacker Drive
Chicago, IL 60601-9703
Christopher Alan Garcia
Attorney at Law
Dell, Inc1 Dell Way-Legal
Round Rock, TX 78682
Frederick W. Gerkens, II I
Wechsler Harwood Halebian & Feffer, LLP
488 Madison Avenue, 8th Floo r
New York_ NY 10022
Corey D . Holzer
Holzer Holzer & Cannon LLC
1117 Perimeter Center West
Suite E-107
Atlanta, GA 30338
Peter Lawrence Kaufman
Levin Papantonio Thomas Mitchell Echsner
316 South Baylen Street, Suite 600
Pensacola, FL 3250 2
Frederick T . Kuykendal l
Levin Papantonio Thomas Mitchell Echsner
316 South Baylen Street, Suite 600
Pensacola, Fl 3250 1
Christopher R . Leclerc
Heller Ehrman LL P
275 Middlefield Road
Menlo Park, Ca 94025-3506
Fredric G . Levin
Levin PapantonioThomas Mitchell Echsner
316 South Baylen Street, Suite 600
Pensacola, fL 3250 1
Timothy M . O'Brien
Levin Papantonio Thomas Mitcgell Echsner
316 South Baylen Street, Suite 600
Pensacola, Fl 3250 1
J . Papantonio Papantoni o
Levin, Papantonio, Thomas, Mitchell, Ech316 South Baylen Street, Suite 600
Pensacola_ Fl 3250 1
Joe Scarborough
Levin, Papantonio, Thomas, Mitchell, Ech
316 South Baylen Street, Suite 600
Pensacola_ Fl 3250 1
Robert E . Smith, JR
Levin Papantonio thomas Mitchell Echsner
316 South Baylen St ., Ste 40 0
Pensacola, FL 3250 2
Melvyn I . Weiss
Attorney at Law
One Pennsylvania Plaza
New York, NY 10119-1063
Manual Service List (cont . )In re Cisco Systems, Inc. Sec. Litig.Master File No . C-01-20418-JW(PVT)
Stephen B . Morris, APCMORRIS and ASSOCIATES401 West "A" Street, Suite 2200San Diego, CA 92101Telephone : 619/239-130 0
Wayne Schneider , General CounselNEW YORK STATE TEACHERS' RETIREMENT SYSTEM10 Corporate Woods DriveAlbany, NY 12211-2395Telephone : 800/356-312 8
Richard P . Bosson2703 Montague Court EastClearwater, FL 3376 1
Charles W. Morgan2220 Calle Opal oSan Clemente , CA 92673Telephone : 949/498-8296
John P . DillmanTara L . Grundemeier1301 Travis, Suite 300Houston , TX 77002Telephone : 713/844-343 6
John R. Ihms19149 Sierra Estates DriveNewhall, CA 91321-227 2
Lee M . Cassidy1503 No rth Colonial CourtArlington , VA 2220 9
Steven L . Moldane3309 142nd Place NEBellevue, WA 98007-3249Telephone : 425/376-2830
EXHIBIT 1
Rossi DOSKOCIL & FINKELSTEIN
LLPCERTIFIED PUBLIC ACCOUNTANTS & CONSULTANT S
r'J'"IheWe are a growing local Southern California CPA firm (listed as one ofThe 50`h largest CPA firms in L.A. County by theLos Angeles Business Journal) recognized forkv,omnan
Y providing quality service to our clients' specialneeds in an efficient and timely manner . These services are offered at a reasonable cost inan environment where creative, people-oriented professionals can grow with our clients .Firm success has been achieved through a strong commitment to helping our clients besuccessful.
Founded in 1984, we saw an opportunity to provide professional accounting, tax,consulting and forensic accounting services to a wide variety of clients . Our goalwas to render quality service, provide a personalized yet objective approach and
take a genuine interest in the prosperity and success of our firm's client .
Today, Rossi Doskocil & Finkelstein LLP continues to grow as a full-service firm . Whilemost of our clients are located in Southern California ; we service numerous clients inNorthern California, the Inland Empire and San Diego County. Since our founding, wehave believed that it is not enough just to stress quality within our firm - we also need totest that quality and report the results of those tests to you, our client . To that end, thefirm is a member of the AICPA Center for Public Company Audit Firms and AICPAPrivate Companies Practice Section and as such, is subject to an outside peer review ofthe quality control system for our accounting and auditing practice . The Firm hasreceived an unqualified ("clean") opinion with no letter of comments on its most recentpeer review .
We offer our clients a full range of auditing, accounting, tax, management consulting,joint defense fund accounting and litigation support services .
400 Oceangate, Suite 1000 %+ Long Beach, California 90802Telephone (562) 495-3325 -***Fax, (562) 495-3425 + website . www.rossillp.com
Rossi DosKoc L & FINKELSTEIN LLP
SERVICES AND QUALIFICATIONS -
PAGE - 2 -
Audit, Review and CompilationWe work hard to gain knowledge of your business and are available year round
for management consultation . Our firm is structured to ensure partner andmanager involvement with your work . Our most talented, experienced
professionals combine their skills with knowledge of your business to assist you withmanagement decisions directly benefiting you . Because users of financial statements donot always need the same degree of assurance, we offer three distinct services involvingfinancial statements : audit, review and compilation . These services are keyed to meet ourclients' different needs .
- Auditing Services -
A certified audit is the highest degree ofassurance regarding financial statementsthat we, as Certified Public Accountants,can offer. Third parties such as bankers,credit grantors and bonding companiesoften require an audit. The Securities andExchange Commission requires auditedfinancial statements for publicly tradedcompanies. Thus, an audit requiressignificant testing of the entity'sunderlying financial transactions and astudy of the system of its internalcontrols. It includes confirmation withoutside parties, physical inspection andobservation, tracing transactions tosupporting documents, risk and fraudassessment as a brief overview.
Our audits are performed in accordancewith auditing standards generallyaccepted in the United States of America .We then express our opinion, based onthe results of our work, as to whether thestatements are fairly presented inconformity with generally acceptedaccounting principle s
- Review Services -
In many instances, a review is sufficientfor a client company and its creditors .We perform a review of the financialstatements in accordance with standardsestablished by the American Institute ofCertified Public Accountants .
Rossi DosKocIL & FINKELSTEIN LLP
- SERVICES AND QUALIFICATIONS -
PAGE - 3 -
-Review Services -(Continued)
In performing review engagements, weare required to have a workingknowledge of your industry and keyaspects of your business . We makeinquiries relating to the financialstatements and then apply analyticalprocedures to identify unusual items ortrends that may need explanation. Areview is designed to see whether thefinancial statements conform to generallyaccepted accounting principles, withoutapplying audit-type tests .
- Compilation Services -
As with review services, compilationservices are performed in accordancewith standards established by theAmerican Institute of Certified PublicAccountants.
A compilation involves taking financialinformation provided by a company andcompiling it in financial statementformat. A compilation carries no degreeof assurance, yet it is adequate for certainpurposes .
We must first familiarize ourselves withaccounting practices common to yourindustry, and then acquire a generalunderstanding of your company'stransactions and how they are recorded.
We then compile the financial statementsand give them a professional secondlook, without applying audit-typeprocedures.
Throughout these practice areas, thefirm's approach is one of understandingthe business problem. Our goal is to notjust be financial historians but rather befinancial planners for our clients . Weoffer services for the entrepreneurstarting a new company or the maturecompany looking for new ideas .
- SEC Compliance -
Our team of professionals' experiencewith filings under the SecuritiesExchange Acts of 1933 and 1934 ensuresthat your publicly-held company receivesthe highest quality advice concerningaccounting matters . As a registered firmwith the PCAOB we are able to performan audit in accordance with PCAOBaudit standards and issue a reportthereon. We believe that there is a needfor the middle market sized publicly-heldcompany to receive the same level ofservice as that provided by theinternational accounting firms, but at alower cost structure .
We are also experienced with the filingand audit requirements of the InvestmentAdvisors Act of 1940 .
Rossi DosKoc L & FINKELSTEIN LLP- SERVICES AND QUALIFICATIONS -
PAGE-4-
Tax Services
E ssential in today's complex environment is tax planning and compliance to ensurea business's or individual's financial success . Whether your tax needs are simpleor complex, compliance or consulting, personal or business, our Firm can help .
We are experienced and knowledgeable in the tax laws and interpretations of those laws,and we keep up to date through continuing education about new developments .
Preparation of- Federal and State Tax Returns -
We assist many businesses andindividuals in meeting their tax filingrequirements each year. Our complianceservices include, trusts, non-profitorganizations, limited liability companies("LLC"), partnerships, corporations and"S" corps.
- Tax Planning -
We proactively address tax issues beforethey become tax problems . Our clientsturn to us for such concerns as :
❖ Analyzing the tax benefits ofinvestment opportunities in realestate, oil and gas, and otherrisk capital ventures .
Most of our returns are computerized forboth speed and accuracy, and our internalsystem of processing returns assurestimeliness and efficiency.
❖ Designing compensation, fringebenefit and retirement plans fo ra company.
❖ Planning for a change in acorporation's accountingmethods.
❖ Obtaining advance rulings fromthe IRS on the taxconsequences of proposedtransactions .
Rossi DosKocIL & FINKELSTEIN LLP- SERVICES AND QUALIFICATIONS -
PAGE - 5 -
❖ Analyzing the tax consequencesof buying /selling a business .
Business Tax- Planning and Assistance -
Personal Tax- Planning and Assistance -
Whatever your personal financial goalsare, taxes will play a significant role. Ourtax planning professionals can assist youin developing personal planningstrategies with beneficial taximplications. Our tax planning servicesinclude :
Almost every business decision carriestax implications. No major decision-especially regarding businessorganization or structure - should bemade without first consulting a CPA. Wehave advised hundreds of businesses onorganizational planning, as well as on thetax pros and cons of purchasing, sellingor merging their concerns. We've alsohelped them establish, report, andmonitor their pension and profit-sharingplans .
- Sound Advice -
Our firm, with experienced professionalsspecifically trained to offer sound advice,can help you and your companyminimize taxes and achieve yourfinancial goals .
Representation- Before Regulatory Bodies -
Should the tax implications of youraffairs come under the scrutiny ofregulatory bodies, we are available torepresent or to accompany you tomeetings with those organizations .
Rossi DosxocIL & FnvKELSTEnv LLP- SERVICES AND QUALIFICATIONS -
PAGE- 6
Management Consulting Services
Business growth does not always equal success . That comes with planning-planning that develops information systems, evaluates and forecasts, improvesprofitability, and improves organizational responsiveness . Our management
advisory services help you to do just that.
- Personalized Service -
As your consultant, we get to know yourorganization , operations , and finances ;your personnel and tax situations ; andyour data processing and managementinformation system needs . Using this as abase, we help you put your business onthe steady track to success .
❖ Accounting software trainin g
❖ Financial forecasts andprojections
❖ Cash flow forecasts
❖ Credit facilities and financingalternatives
- Automated InformationServices -
We have assisted numerous companieswith software application selection andimplementation .
The following services are among thoseavailable:
❖ Micro-computer softwareselection and implementation
❖ Accounting system review s
❖ Cost accounting systems
❖ Cost control studie s
❖ Management informationreporting
❖ Recruitment of accountingpersonnel
❖ Budgeting
Rossi DosKociL & FINKELSTEIN LLP
- SERVICES AND QUALIFICATIONS -
PAGE-7-
Litigation Support
What are the financial facts relevant to a legal claim or case? Whether the claiminvolves insurance, contract disputes, valuations or business interruption,complex litigation often requires the skills and experience that only
knowledgeable CPAs can provide .
- Expert Testimony -
The firm has been retained to act as bothconsulting and testifying experts inhundreds of multi-million dollar cases .We have significant experience inreviewing, developing and provingallegations relating to financial statementconformity with generally acceptedaccounting principles and auditorcompliance with generally acceptedauditing standards .
We can assist by advising attorneys onall matters relevant to the financialaspects of a case. Though each case isdifferent, our professionals can :
❖ Establish and identify financialissues and facts
~:• Develop a discovery plan withdocument management services
❖ Work closely with counsel toensure that important andnecessary financial informationis obtained
❖ Review and assist in thepreparation of discovery andsummary judgment motions
❖ Assist in case management andstrategies
❖ Determine financialconsequences of claims, lossesand settlement s
❖ Assist in examining or cross-examining witnesses onfinancial matters
❖ Participate in settlementnegotiations
❖ Serve as expert witnesses,including expert reports andtestimony
As knowledgeable and independentCPAs, we can provide you with the kindof litigation support that meets yourneeds and wins cases .
Rossi DosKoc L & FINKELSTEIN LLP
- SERVICES AND QUALIFICATIONS -
PAGE-8-
Types of Clients
0
ur past and present clients include a diverse mix of companies operating in thefollowing industries, among others :
- Manufacturing - -Real Estate -
❖ Commercial wash systems ❖ General contractors❖ Job machine shops ❖ Development❖ Electronic assembly ❖ Property management❖ Aircraft brakes ❖ Commercial rental propertie s❖ Iron fabrication ❖ Sales and leasing❖ Apparel ❖ Mortgage brokers
- Retail - - High Technology -
❖ Building supplies ❖ Software development❖ Clothing & sporting goods ❖ Computer manufacturers❖ Food products ❖ Telecommunications chip desig n❖ Computers and accessories & manufacture•:• Furniture ❖ Computer peripheral equipment❖ Mail order and internet distribution
❖ Vehicle monitoring firmware and- Distribution - location tracking system s
❖ Building supplies - Non-Profit Organizations -❖ Fasteners❖ Machine parts ❖ Hospital medical services group❖ Computer equipment ❖ Drug rehabilitation❖ Agricultural supplies ❖ Charitable organizations❖ Plumbing supplies ❖ ERISA plans
❖ Single Audit Act❖ Federal Transit Administration
Section 15 Report Organization s❖ Museums
Rossi Dosxocw & FnvKELSTEIN LLP- SERVICES AND QUALIFICATIONS -
PAGE-9-
- Services and Other -
❖ Health care organizations❖ Franchising❖ Automotive❖ Hotel Services❖ Design and copying services❖ Business management an d
Rossi Doskocil & Finkelstein LLP Charges for its services on an hourly basis . The hourlyrate charged is dependent upon the experience and skill of the individual assigned toperform the services required by the engagement . The firm attempts to staff itsengagements so that the client receives the highest quality service available while, at thesame time, matching the level of work required to provide the service at the lowest costavailable. When billing for professional services we always review the invoices prior tomailing, keeping in mind the value of the services rendered to the client .
- Highest Quality Service -
By selecting Rossi Doskocil &Finkelstein LLP as your Certified PublicAccountants, you are choosing anorganization that takes a great deal ofpride in offering the highest possiblelevel of professionalism to our clients .
That translates to our clients receivingservices tailored to their specific needsand requirements in an efficient manner .
Our current standard hourly billing ratesare available upon request .
ALBERT RossiCERTIFIED PUBLIC ACCOUNTAN T
FIRM POSITION
Al is Managing Partner of Rossi Doskocil & Finkelstein LLP certified public accountants and consultants . He is in charge of theFirm's auditing and accounting, and litigation service departments . Over 30 years of experience in public accounting, with anemphasis in auditing, accounting services and litigation support services Extensive experience with both publicly and privately-held businesses in a variety of industries . Rossi Doskocil & Finkelstein LLP is a registered accounting firm of the Public CompanyAccounting Oversight Board ("PCAOB"), a member of the Private Companies Practice Sections of the American Institute ofCertified Public Accountants ("AICPA") and a member of the Center for Public Company Audit Firms . As such, the firm hasundergone firm-on-firm peer reviews and received unqualified opinions as a result .
CLIENT SERVICE EXPERIENCE
Client Service and industry experience has included:
♦ Audit; review and compilation se rvices ♦ Extensive litigation suppo rt se rvices , including expertwitness testimony . Experience in multi-mi llion dollar
♦ Cash flow and financial forecasting and analysis lawsuits involving complex financial, accounting anddamage issues
♦ Accounting systems review, design and implementation
♦ Review of credit facilities and debt restructurin g
♦ Management information system reviews
♦ Acquisition reviews
♦ Inventory cost systems
♦ Management consulting including purchase/saletransactions, restructuring, financial reporting, etc .
♦ S .E .C . compliance filings, including Forms 10-K, 10-Qand 8-K, among others
♦ Industry experience in manufacturing, distribution, hightechnology, transportation, real estate development,entertainment construction, service, health care services,franchising, retailing, and not-for-profits, among others
♦ Qualified to perform OMB Circular A-133 Audit s
♦ Previously qualified as a team captain for AICPA peerreviews of SEC Practice Section accounting firms
SUMMARY OF EXPERT WITNESS AND CONSULTANT ENGAGEMENTS
The following sample listing of litigation matters provides an overview of the broad nature and types of litigation/forensicaccounting engagements in which I have been involved over the past 23 years :
♦ B . Rosen, et al. v. Macromedia, Inc. et al . Myfirm and I were retained by Kaplan Fox LLP andMilberg Weiss Bershad Hynes and Lerach LLP toprovide expert consultation on financial reportingand accounting issues relating to plaintiffs' claimsof financial reporting fraud . Our engagement beganprior to a complaint being filed and we consulted anassisted counsel for plaintiffs in virtually everyfacet of the litigation, including, assistance withaccounting allegations in the complaint,comprehensive discovery plan, document review,deposition preparation and assistance, andsettlement presentations . Our engagement includeddetailed analysis of the accounting transactionaldocuments, and assembly of supporting documentsin working files . The accounting issues in thelitigation included revenue recognition (softwarelicensing and shrink wrap product), product returnreserves, co-op advertising accruals, inventoryreserves and manipulation of various other reserves .
♦ In re TriTeal Corporation Securities Litigation.My firm and I were retained by Milberg, Weiss,Bershad, Hynes & Lerach LLP to provided expertadvice on auditing, accounting and financialreporting issues . Firm prepared report onaccounting, auditing and financial reporting claims .Preparation of expert declaration in support ofplaintiffs' motion to freeze assets. Assistance withplaintiffs' claims alleging violation of GenerallyAccepted Auditing Standards ("GAAS") byTriTeal's auditor, Ernst &Young, LLP .
♦ Benson v. Kwikset Corporation, et . al. My firmand I were retained by Cuneo Waldman & GilbertLLP Law Group to provide expert consultation andtestimony regarding plaintiffs claim of defendant'sviolation of Section 17200 of the Business &Professions Code. Our analysis was focused onforeign and domestic product cost components, t rialsuppo rt services, and expert testimony in theSuperior Court of California in Orange County .
♦ In re Gupta Corporation Securities Litigation.My firm and I were retained by Kaplan Fox LLP,Milberg Weiss Bershad Hynes & Lerach LLP, andProngay & Mikolajczyk to provide expert advice onaccounting and financial reporting issues relating toplaintiffs' claims of financial reporting fraud . Myfirm and I assisted in all aspects of discover,providing assistance to plaintiffs' counsel ondocument requests, document analysis and review,depositions and expert declarations . The matter wassettled, but as a result of plaintiffs' work, Gupta'sauditors, Arthur Andersen & Co . withdrew its auditopinions on the financial statements of Gupta andresigned. The financial statements at issue duringthe Class Period were restated by Gupta .
♦ In re Community Psychiatric Centers SecuritiesLitigation . My firm and I were retained byMilberg Weiss Bershad Hynes & Lerach LLP ;Weiss & Yourman; and Wolf, Popper, Ross, Wolf& Jones to provide consultation and expert advicerelating to plaintiffs' numerous auditing, accountingand financial reporting issues involved in thelitigation . My firm and I provided assistance inplaintiffs' discovery plan, document analysis andreview, creation of a large database to analyzepatient files and data, preparation for depositions,and expert declarations . Additionally, we assisted inplaintiffs' allegations and claims against Ernst &Young, LLP, CPC's auditor. The case resulted insignificant settlements from all defendants .
♦ In re Tokos Medical Corporation SecuritiesLitigation. My firm and I were retained byMilberg Weiss Bershad Hynes & Lerach LLP,counsel for plaintiffs, to provide expert witnesstestimony on accounting and financial reportingissues involving the timely and adequaterecordation of its allowance for contractual,administrative and bad debt reserves . We preparedan expert's report in compliance with Federal Rulesof Civil Procedure as well a preparation ofdeclarations in opposition to defendants' motion forsummary judgment.
M. Cancelosi vs. Sterling HealthcareCorporation. This was an arbitration involvingallegations of severance benefits due Cancelosifrom Sterling. My firm and I were retained bydefendant Sterling Healthcare Corporation andworked with the law firm of Hagens Berman SobulShapiro LLP, located in Seattle, Washington, inconducting an investigation into and experttestimony on behalf of Sterling as to improperaccounting practices undertaken while Cancelosiwas CEO and the damages to Sterling resultingfrom breach of fiduciary duties andmismanagement.
♦ Birman, et al. vs. Loeb, et al . My firm and I wereretained by the law firm of Baker & Hostetler fordefendant Loeb to ascertain damages resulting fro m
2
a defaulted note receivable and to prepare an expe rtdeclaration, resulting in the Court favorablychanging its ruling as to damages .
♦ Farmers Group, Inc . et al. vs. State Street BankY Trust, et al. My firm and I were retained byFarmers Group, Inc . and worked with the law firmof Manatt, Phelps & Phillips in conducting aninvestigation into financial damages and improperpractices in the handling of trust funds, as well asproviding expert testimony at trial . The trialresulted in a damage award against State StreetBank & Trust in excess of $5 .8 million .
♦ In re Pacific Enterprises Securities Litigation.My firm and I were retained by counsel forplaintiffs, including Milberg Weiss Bershad Hynes& Lerach LLP, Barrack, Rodos and Bacine ; andWolf Popper Ross Wolf & Jones to provide expertservices regarding alleged improper accounting,auditing and financial reporting practices, includingthe establishment of restructuring reserves,impairment of assets and financial statementdisclosures .
♦ Alpha Photo Corporation v. San FranciscoGiants Corporation , et al. My firm and I wereretained by Low, Ball & Lynch, counsel fordefendant San Francisco Giants Corporation toreview and analyze certain accounting and internalcontrol issues relating to plaintiffs' claim againstdefendant San Francisco Giants Corporation.
♦ In re Immunex Securities Lititation. Thislitigation involved alleged improper revenuerecognition practices and other accounting andfinancial reporting issues related to Immunexcorporation, an entity engaged in pharmaceuticalmanufacturing and distribution. My firm and I wereretained by counsel for plaintiffs, which includedKaplan Fox LLP, as well as the firm of HagensBerman Sobul Shapiro LLP.
♦ In re L.A. Gear Securities Litigations I, II . andIII. These lawsuits involved three separatesecurities class actions against L.A. Gear, Inc ., andcertain of its various directors and offices . L.A .Gear, an international company with $1 billion insales, was engaged in the design, manufacture anddistribution of footwear, apparel, and accessories.The allegations in the litigation involved numerousaccounting and financial reporting issues, including,but not limited to, improper revenue recognition,improper deferral of expenses, overstatement ofinventories, and failure to disclose adverse trends inthe business . My firm and I were retained bycounsel for plaintiffs to provide expert witnesstestimony and consultation regarding the
accounting and financial reporting issues involvedin the litigation .
♦ In re FPI/Agretech Securities Litigation . Thislitigation involved a limited partnership syndicator,a tropical plant grower and various limitedpartnerships engaged in the growing anddistribution of tropical plants . I was engaged byLieff Cabraser Heimann & Bernstein LLP, as wellas Paul, Johnson , Alston & Hunt , counsel forplaintiffs , to provide expert witness testimonyregarding various accounting, auditing and financialreporting issues. I was qualified and providedexpert witness testimony in the Federal DistrictCourt of Hawaii regarding financial statementcompliance with Generally Accepted AccountingPrinciples ("GAAP") and the independent auditor's,Arthur Young & Company, compliance withGASS . The trial resulted in a judgment againstArthur Young & Company, in an amount in excessof $18 million .
♦ In re Technical Equities Securities Litigation.This lawsuit involved Technical EquitiesCorporation, an entity engaged in the real estateindustry and in the operation of variousmanufacturing businesses. My firm and I wereretained by the firms of Gold & Bennett, and LieffCabraser Heimann & Bernstein LLP, counsel forplaintiffs, to provide expert witness testimony onaccounting, auditing and financial reporting issues .The accounting issues involved improperrecognition of revenue on sales of real estate,improper deferral of expenses, and failure todisclose related party transactions . Additionally, thelawsuit involved allegations regarding failure ofTechnical Equities Corporation's independentauditors to comply with GAAS . I provided expertwitness testimony in the Federal District Court ofNorthern California .
♦ In re Delaurentiis Entertainment Group, Inc.Securities Litigation. My firm and I were retainedby the firms of Milberg Weiss Bershad Hynes &Lerach LLP; Greenfield & Chimicles ; and BarrackRodos & Bacine , counsel for plaintiffs, to provideexpert testimony with respect to numerousaccounting, auditing and financial reporting issues,including, but not limited to, the disclosure ofpredecessor companies, improper deferral ofexpenses, failure to disclose related partytransactions, and failure to record timely writedowns of assets. Furthermore, the lawsuit involvedallegations regarding failure of DelaurentiisEntertainment Group, Inc .'s independent auditors tocomply with GAAS .
3
♦ The Cannon Group, Inc . My firm and I wereretained by Wilmer Cutler & Pickering, as specialcounsel to The Cannon Group, Inc . (PatheCommunications), a motion picture production anddistribution company listed on the New York StockExchange, to provide expert consultation onaccounting and financial reporting issues, as a resultof an SEC inquiry . During the course of ourengagement we reviewed the Company'saccumulation of film costs for its library and therelated amortization of those film costs . As part ofour engagement we interacted with the AuditCommittee of the Board of Directors, the ChiefExecutive Officer, the Chief Operating Officer, theChief Financial Officer, and the Controller of theCompany. Additionally, we assisted the Companywith respect to financial reporting disclosure issues.
♦ Klein vs. King. This lawsuit was a securities classaction against Informix Corporation and certain ofits directors, officers and underwriters . My firm andI were retained by the firms of Milberg WeissBershad Hynes & Lerach LLP, Barrack Rodos &Bacine, and Kaplan Fox LLP, counsel for plaintiffs,to provide expert testimony regarding numerousaccounting and financial reporting issues. Theallegations involved improper recognition ofrevenue on the sale of software and failure todisclose loss contingencies.
♦ CMA vs. Glazer, et al. Retained by counsel fordefendants in a lawsuit filed by creditors againstPlatt Music Corporation ("Platt") and certain of itsdirectors and officers. Accounting consultation wasprovided to the firms of Parker, Milliken, Clark,O'Hara & Samuelian ; Shapiro, Posell & Close;Latham & Watkins ; and Gibson, Dunn & Crutcher.Platt was engaged in retail sales of electronic
merchandise . The lawsuit involved allegations ofimproper accounting practices and misleadingfinancial statements issued by Platt.
♦ In re Software Toolworks. This lawsuit involvedallegations of improper revenue recognition, failureto accrue for product price protection, returns andinventory obsolescence by Software Toolworks, acompany engaged in software sales and hightechnology toy sales . Additionally, the lawsuitinvolved allegations regarding failure of SoftwareToolworks' independent auditors to comply withGAAS. I provided expert declarations in support ofplaintiffs' motions on both GAAP and GAASissues.
♦ In re Informix II Securities Litigation. Retainedby Kaplan Fox LLP and Milberg Weiss BershadHynes & Lerach LLP in a securities class actionagainst Informix Corporation . The matter involvedallegations of improper revenue recognition onsoftware transactions during the Class Period. Ourfirm provided consulting services at thecommencement of the litigation and during thediscovery process.
♦ Union Chemicar America, Inc., etc . vs. AccurateRibbon, Inc. etc., et al. Retained by Tachikawa,Yasui & Nishizawa and Petillon & Hansen toprovide expert testimony. The lawsuit involvefinancial matters, including valuation of a privately-held distribution business and alter ego claims .
PROFESSIONAL ACTIVITIES
Member of the American Institute of Certified Public Accountants, California Society of Certified Public Accountants .
Team Captain of Peer Review of public accounting firms for the AICPA .
Author of 1993 Supplement of Fraud, Window Dressing and Negligence in Financial Statements, published byShepard's/McGraw-Hill.
EDUCATIO N
Bachelor of Science degree in Accounting from California State University, Long Beach in 1976 .
Bachelor of Arts degree in Psychology from California State University, San Diego in 1974 .
4
LEWIS R. FINKELSTEINCERTIFIED PUBLIC ACCOUNTANT
Firm Position
Lew is a Partner in the firm's accounting and auditing practices with more than 24 years of experience inpublic accounting . In addition, Lew has worked on numerous litigation support engagements .
Litigation Support Services Experience
• Services provided include discovery under hostile and friendly conditions, consulting with counselas to possible additional causes of action or cross complaints, research of specialized industryfinancial data, assistance with deposition of witnesses, the discovery process, business valuationsand expert testimony rendered in a variety of cases involving many diverse issues.
Case experience includes cases involving allegations of lost profits and breach of contract;interpretation of management contracts ; class action securities cases, San Bernardino CountyCourt specially appointed master for settlement of dispute among parties ; interpretation ofinsurance contracts ; business interruption ; amounts alleged to be due pursuant to contractualagreements; construction contracts; partnership and business disputes and dissolutions, fraudinvestigations; issues involving marital dissolution, including business valuation ; .
Financial Reporting and Consulting Experience
• Industry experience includes health care, manufacturing, wholesaling, not-for-profits, softwaredevelopment companies, service companies, high tech industries, real estate, construction andothers .
• Perform, supervise and managefinancial statement audits, reviews and compilations, includingextensive research into application of generally accepted accounting principles to specificindustries and situations .
• Implement financial reporting systems thatprovide meaningful financial statements and analyticalreports to business owners in accordance with generally accepted accounting principles relevantto their respective industry.
• Consultation and strategic planning with business clients regarding financial and income taxissues , including analysis of the financial attributes that materially affect the client profits.
• Assist and advise in the search for improved banking and credit relationships .
Business planning services in special situations such as cash flow planning, developingflnancialforecasts, income tax planning, assistance with the sale of a business and real estate holdings andanalysis of prospective business acquisitions .
• Performance of various agreed upon procedures engagements which focus on specific criteria thatthe client is interested in analyzing, including construction cost analyses, real estate developmentactivity analysis, specific financial statement elements and cash receipts and disbursementsanalysis .
• Team captain and team member on several peer reviews of other CPA firms .
Career History
• Rossi, Doskocil & Finkelstein LLP, (Long Beach, California) 12/95 to present• R. Lawrence Friend & Associates, (Irvine, California) 7/95 -11/95• Little, Skorheim, Trank & Kaylor, (Irvine, California) 11/93 - 6/95• Lesley, Thomas, Schwarz & Postma, Inc. (Newport Beach, California) 1/88 -10/93• Moss Adams & Company (Costa Mesa, California) 8/86 -12/8 7• Laventhol & Horwath (San Francisco, California) 1/84 - 7/86• Arthur Young & Company (Chicago, Illinois) 7/82 -12/83
Professional Activities
• Member of the American Institute of Certified Public Accountants• The California Society of Certified Public Accountants• The Litigation Services Committee of the California Society of Certified Public Accountants
Community Activities
Treasurer - Psi Upsilon International Fraternity Foundatio nAdvisory Board member - National Multiple Sclerosis Society, Orange County ChapterPresident of the University of Illinois Alumni Club of Orange CountyCo-founder and past chairman of the Fall Carnival with the Big Ten Alumni Clubs of Orange CountyBoard member, Psi Upsilon Fraternity Chapter at the University of IllinoisPast President - Vagabonds Golf Group
Education
Bachelor of Science degree in Accounting from University of Illinois, Urbana . - May 1982
2
CRAIG H. SUENCERTIFIED PUBLIC ACCOUNTANT
Firm Position
Craig is a Partner in the firm's accounting and auditing practice with over 19 years of experience inpublic accounting . In addition, Craig has extensive experience in litigation support engagements .
Client Experienc e
Craig started his career in public accounting with a regional firm in their accounting and auditingdepartment. Craig joined the firm as a senior accountant in May 1992, was promoted to manager inJanuary 1994, senior manager in 2001 and then to Partner in 2005 . During his career in publicaccounting, Craig's service and industry experience have included the following :
Service experience has included : Audit, review and compilation services; accounting systemsreview and evaluation ; cash flow/financial forecasting and analysis; CPA peer reviewengagements; agreed upon procedures engagements including review and evaluation ofinternal accounting control systems , attestation engagements , income tax preparation forcorporations, partnerships, individuals, and fiduciaries, including tax planning.
Industry experience in: Manufacturing, distribution, real estate, apparel, healthcare, not-for-profit, including OMB Circular A-133 audits, and employee benefit plans, among others .
Experience in litigation consulting engagements in numerous cases involving accounting andauditing and fraud matters, including application of Generally Accepted Accounting Principlesand Generally AcceptedAuditing Standards.
Servicing clients with annual revenues ranging from start-up to $120 million .
Professional Activities
Member of the American Institute of Certified Public Accountants and the California Society ofCertified Public Accountants .
Education
Bachelor of Arts degree in Economics , University of California, Los Angeles .
DAVID J. HAYGOODCERTIFIED PUBLIC ACCOUNTANT
Firm Position
David is a Senior Manager in the Firm 's accounting and audit practice with 17 years of experience in bothpublic accounting and private industry.
Client Experience
David started his career in public accounting with a large local firm in their accounting and auditingdepartment. Prior to joining Rossi, Doskocil & Finkelstein LLP, David was a Manager providing serviceto both auditing and tax clients with a large local CPA firm . David's service and industry experience haveincluded the following :
• Service experience has included : Audit, review and compilation services, accounting systemsreview, agreed upon procedures engagements, cash flow/financial forecasting and analysis, incometax compliance and planning for closely-held companies, partnerships, individuals, and fiduciaries .
• Industry experience in : Manufacturing, international import and export, textile, construction, realestate development, service companies, entertainment, employee benefit plans, and not-for-profit,including OMB Circular A-133 audits, among others .
• Experience in litigation consulting engagements involving accounting and auditing ma tters,including application of Generally Accepted Accounting Principles and Generally AcceptedAuditing Standards .
• Servicing clients with annual revenues ranging from $500,000 to $200 million .
Other Experience
David has also spent five years in private industry with a closely-held wholesaler/distributor of industrialair conditioning and refrigeration supplies with operations in 47 locations and 8 states . For this $85 millionper year Company, David served in the capacity of Assistant Controller, and as a Project Manager,redesigning and implementing its current information system .
Education
Bachelor of Science in Business Administration, with an emphasis in Accounting from the University ofthe Pacific .
EXHIBIT 2
Rossi DOSKOCIL & FINKELSTEIN
LLPCertified Public Accountants & Consultants
July 31, 2006
William S. Lerach, Esq .Patrick J. Coughlin, Esq.Spencer A. Burkholz, Esq.Lerach Coughlin Stoia Geller Rudman & Robbins LLP655 West Broadway, Suite 190 0San Diego, California 92101
400 Oceangate, Suite 1000Long Beach, California 90802
Telephone (562) 495-3325Fax (562) 495-3425
www.rossillp.com
Re: For professional services rendered in the matter ofIn re: Cisco Systems, Inc. ("Cisco ") Securities Litigation(herein referred to as the Class Action) .
This bill is summarized and organized by various fmancial reporting, accounting and case managementissues. Tab 1 contains a Firm Overview, and the individual Curriculum Vitae for the senior professionalpersonnel that worked on the engagement, including Albert Rossi CPA, Lewis Finkelstein CPA, CraigSuen CPA and David Haygood CPA. Attached hereto are various documents selected to berepresentative of the services performed in each phase .
Phase I.
Initial consultation on the Cisco matter commencing in September 2001 and continuing throughFebruary 2002. Review and analysis of Cisco's filings with the Securities and Exchange Commission("SEC") on Forms 10-K and 10-Q as of and for the periods ended July 28, 2001, July 29, 2000, April28, 2001, January 27, 2001, October 28, 2000, April 29, 2000, January 29, 2000, October 30, 1999 ;Review of and consultation on Consolidated Complaint for Violations of the Federal Securities Laws ;Review of and internet searches for press releases related to Cisco and its vendor financing program,review of identified customer SEC filings, preparation of binders for each finance customer includingSEC filings and/or disclosure, press releases, and articles, and review of certain investigative memos ;research and review of certain applicable accounting standards including but not limited to, SFASNo . 48, Revenue Recognition When Right ofReturn Exists, SFAS No. 13, Accounting for Leases, andARB No. 43, Restatement and Revision of Accounting Research Bulletins . Analysis of inventory andrelated reserve trends, analysis of lease reserves and financing trends, and analysis of salesadjustment trends. Preparation of comprehensive memorandum attached hereto in Tab 2 . Review andanalysis of Cisco's SEC filings for October 27, 2001 and January 26, 2002 . Consultation and researchfor First Amended Consolidated Complaint for violations of the Federal Securities Laws .
MEMBERAmerican Institute of Certified Public Accountants • California Society of Certified Public Accountants
PCPS : The AICPA Alliance for CPA Firms • Centerfor Public Company Audit Firms
Document production, numerous conferences with Plaintiffs counsel and Defense counsel i .e. meetand confers, preparation for Plaintiffs' 30(b)(6) depositions, and document requests of Cisco,PriceWaterhouse Coopers ("PWC") and Deloitte & Touche LLP ("DT") . This phase of ourengagement commenced in May 2003 and included consultation on the Document Requests andSubpoenas to PWC and DT; numerous telephone conferences and emails regarding the production ofdocuments from Cisco related to their financial reporting and accounting records ; preparation andattendance in San Francisco at the 30(b)(6) depositions of Pratt Blatt, James McCallum and MrinaliniIngram; Review and comments on Plaintiffs' first request of Cisco for production of documents ;review of Cisco document production of its general ledger in San Francisco ; Arthur Andersen LLPdocument request; and,preparation of numerous emails and memorandum regarding discovery issues .
This phase of our work commenced once defendants and third parties began producing documents inOctober, 2003 . Review of PWC audit workpapers for fiscal years ended July 31, 1999, July 29, 2000,and July 28, 2001 which consisted of approximately 31,000 pages in October, 2003 . Preparation ofspreadsheets/memos identifying PWC personnel from review of monthly invoices and time reports .Our review of PWC workpapers initially focused on identifying Cisco reporting policies andpractices, key financial personnel, periodic meetings and significant customers. Obtained anoverview of the PWC audit process, audit risk assessment and audit procedures . Prepared memorandaon reserves and Cisco Capital (vendor financing arm of Cisco Systems). Organized all workpapersinto binders . Obtained hard disk of Cisco produced documents . Commenced selected searches of theCisco document database to print a comprehensive set of Cisco monthly close binders ("BlackBook") . Identified missing Black Books . Prepared spreadsheets analyzing Cisco's reserves for leasesand structured loans . Prepared chronological recap of meetings and attendees from PWC workpapers .
This phase of our engagement was primarily focused on document review to ascertain missingreports, analysis and documents, and Cisco and PWC procedures, reports utilized to analyzesignificant financial transaction accounts, flow of Cisco reporting functions and drill-down offinancial reporting . This phase of our engagement continued through approximately June 30, 2004 .
This phase of our engagement centered on a comprehensive review and analysis of the PWC andCisco documents to identify accounting/financial reporting issues and to assimilate support forPlaintiffs' claims as set forth in the Complaint. We prepared a comprehensive analysis of CiscoCapital's lease transactions by customer including detail customer information by lease classification,by month and reserve amount as recorded by Cisco. Identification of Top 27 Lease Customers,including an analysis of Credit File Ratings for each customer. Detail spreadsheet of Top 27 LeaseCustomers for the period July 1999 through July 2001 of lease obligation and related reserves .Analysis of Cisco Capital's reported reserves by quarter by financing type, including graphicalinformation and reported lease revenue by quarter. Review of lease documentation to obtain contactinformation for counsel . Review of detail lease agreements, including all supporting equipment leaseschedules, and customer financial information, news articles, and customer credit ratings to ascertainbasis of credit extended and collectibility thereof . Analysis of Cisco's accounting for guaranteedleases . See Tab 3 .
Extensive document review of pre-funded inventory ("PFI") documents and preparation of detailaged PFI amounts by customer, by quarter that had to be prepared by reviewing thousands ofindividual PFI schedules that did not recap the information by customer, but rather only by leasenumber. Organization of PFI documents . Preparation of memorandum on PFI analysis . See Tab 4 .
Analysis of Cisco's excess and obsolete inventory, including review of documents evidencing thewrite off of inventory. See Tab 5 .
Comprehensive review of revenue recognition issues including RevTrak reports . Review and analysisof Cisco's methodology of defining revenue, RMA's non two-tier bad debts, two-tier reservesincluding distributor revenue deferrals, and attendance at document review focused on revenuerecognition issues. Extensive consultations with counsel on document requests and motions toproduce documents . See Tab 6 .
This phase of our engagement focused on assisting counsel with various depositions, ongoinganalysis and document review . We attended and assisted in the preparation for the followingdeponents :
We assisted in the preparation for, but not attend the following depositions :
Thomas CupplesMrinalini IngramSteve Meisel, PWC Audit PartnerPhuc T. Tran, PWCJamie Waylan, PWC
Analysis of various issues including lease revenue written off, as a result of deposition testimony .Consultation with counsel on Expert Reports, accounting and auditing literature research . Review ofDefendant Expert Reports . See Tab 8 .
The following is a summary of the professional time and expenses in this matter . See Tab 9 for copiesof the monthly time reports . See also Tab 10 for a selection of emails highlighting services performedand requested .
financial issues and preli mprep for meet and conferconf . with Pwc
0 7/29/03 Finkelstein LTGAT Ltgat LT125 teleconference with 2Spence B . regarding Pwcproduction and review o fmaterials provided
0 7/28/03 Finkelstein LTGAT Ltgat LT140 review of Al's 3 . 5correspondence , review o fnotes and Cisco do crequest,preparation of docrequest correspondence t oattys and review of Pwcengagement info provided
0 7/01 /03 Finkelstein LTGAT Ltgat LT125 discussions with attys 1 .25regarding schedul e
0 7/24/03 Finkelstein LTGAT Ltgat LT125 MEET AND CONFER 3WITH CISCO ATTYSAND DISCUSSION O FFOLLOWUPCORRESPONDENCE
0 7/02/03 Finkelstein LTGAT Ltgat LT134 review of complaint , filings 4 . 5and doc request for Pwc i nprep for meet and confe r
0 7/03/03 Finkelstein LTGAT Ltgat LT115 review of complaint . filings 6and doc request for pwc i nconnection meet an dconfer with Pwc
0 7/03 /03 Finkelstein LTGAT Ltgat LT125 communication and 0.5followup with attysregarding aborted mee tand confer with Pwc
0 7/08/03 Finkelstein LTGAT Ltgat LT125 meet and confer with Pwc 20 7/22/03 Finkelstein LTGAT Ltgat LT135 meet and confer followup 0.75
assistance to Al0 7/14/03 Finkelstein LTGAT Ltgat LT125 prep pa rticipate in meet 2
topics0 8/29/03 Finkelstein LTGAT Ltgat LT1 05 review of docs provide d0 8/28/03 Finkelstein LTGAT Ltgat LT110 meeting with attys and
review of docs produced0 8/27/03 Finkelstein LTGAT Ltgat LT110 review of documents
provided /discussion wit hAl regarding depo ,communication withattorney spence B.
0 8/26/03 Finkelstein LTGAT Ltgat LT160 depo of McCallu m0 8/25/03 Finkelstein LTGAT Ltgat LT295 travel to dep o0 8/24/03 Finkelstein LTGAT Ltgat LT160 prep for depo0 8/22/03 Finkelstein LTGAT Ltgat LT160 review of filings,and
determination ofsuggested issues to cove rat the dep o
0 8/18/03 Finkelstein LTGAT Ltgat LT110 review of document srelated to Cisco Capital i nprep for trip to Milberg on Aug 1 9
0 8/21/03 Finkelstein LTGAT Ltgat LT160 review of revised outlinesand prep for depoattendence on 8/26
0 8/20/03 Finkelstein LTGAT Ltgat LT125 followup with attysregarding production o fdocuments
0 8/19/03 Finkelstein LTGAT Ltgat LT110 travel to Sd to meet wit hatty Matt Montgomery toreview third party CiscoCapital docs produced ,review of D&T documentsand discussion and reviewof outline for depo on 8/2 6
0 8/15/03 Finkelstein LTGAT Ltgat LT110 prelim review of d&tproductio n
0 8/14/03 Finkelstein LTGAT Ltgat LT135 review of coorespondencere production . Discussionswith attys
0 8/12 /03 Finkelstein LTGAT Ltgat LT160 review of outlines/ filings0 8/11 /03 Finkelstein LTGAT Ltgat LT110 review of d& t engagemen t
lis t0 8/07/03 Finkelstein LTGAT Ltgat LT115 review of list of d& t
engagements to selectfrom, communicate wit hSpence
0 8/06/03 Finkelstein LTGAT Ltgat LT110 review /meet and confer redocument reques t
0 8/18/03 Rossi , Jr . LTGAT Ltgat LT115 30(b)60 8/15/03 Rossi , Jr . LTGAT Ltgat LT115 review of Clifford Chanc e
0 9/11 /03 Rossi , Jr. LTGAT Ltgat LT11 50 9/05/03 Rossi , Jr. LTGAT Ltgat LT11 00 9/25/03 Rossi , Jr . LTGAT Ltgat LT1370 9/03/03 Rossi , Jr . LTGAT Ltgat LT11 50 9/26/03 Rossi , Jr. LTGAT Ltgat LT1370 9/26/03 Rossi , Jr . LTGAT Ltgat LT105
Page 10
print out deposfax charge sAIR CISCO TO OAKLANDAM. EXPSTORAGEHOTEL AM EXPCAR, GAS, PARKINGAM. EXPcopyAIR CISCO TO OAKLANDAM . EXPPARKING 8/26organize documentsreview of PW productionreview of productionreview of D& T productionreview of documents
travel from depo in sfdepo of Bhatt prep andattendencetravel to doc request inSan frandoc review and meetingswith atty. Prep for depo on 9/19depo pre pdepo prepdepo pre preview of documentsreview of d &t documentsreview of d &t documentsreview of filingsTYPING NOTES FORLEW
copySTORAGEreview of doesanalysis/review of doesdiscussions/attorneryanalysis/review of doesanalysis/review of doesanalysis/review of doesdiscussions/attorneryanalysis/requestdocumentsanalysis/requestdocuments
0 7/29/04 Finkelstein LTGAT Ltgat LT11 00 7/01/04 Keen ADMIN ADMIN AD1000 7/19/04 Kim LTGAT Ltgat LT1050 7/14/04 Kim LTGAT Ltgat LT1050 7/30/04 Kim LTGAT Ltgat LT1050 7/21/04 Kim LTGAT Ltgat LT1050 7/16/04 Kim LTGAT Ltgat LT105
Page 23
copiesFAX CHGflags for projectflags (more)STORAGEanalysis of rev/bookingsreview of doesrev rec doesrev of doesreview of doesreview of doesreview of does in SanDiegoreview of doesreview of doesrev of doesassist with review ofcorrespondencereview of doestravel to san fran to meetwith lesley weavermeeting with lesley weaverto go over cisco doesreview ofdoes/correspondence withattysreview ofdoes/correspondence withattyreview of rev recdoes/prep of outlines formeetingreview of doesreview of rev rec doesreview of rev rec doesreview of rev rec doesreview and assistance withfollowup response todefendants re doesrequeste dattend all day meeting andreview of does in san diegoreview of doestype letter
1 .251 .51 .5
253.75
Hours
00000
4.5
22
4.52
4.5
25.75
32
56 .5
6
4
2.25
7.75
1 .757
4.7541
10
40.25
7 .58488
0 7/22/04 Kim LTGAT Ltgat LT1 050 7/15/04 Kim LTGAT Ltgat LT1050 7/26/04 Kim LTGAT Ltgat LT1050 7/13/04 Kim LTGAT Ltgat LT1050 7/28/04 Kim LTGAT Ltgat LT1 050 7/29/04 Kim LTGAT Ltgat LT1050 7/20/04 Kim LTGAT Ltgat LT1 050 7/23/04 Kim LTGAT Ltgat LT1050 7/08/04 Koenig LTGAT Ltgat LT166
0 7/07/04 Koenig LTGAT Ltgat LT1660 7/06/04 Rossi LTGAT Ltgat LT1670 7/13/04 Rossi LTGAT Ltgat LT1650 7/29/04 Rossi, Jr . LTGAT Ltgat LT11 50 7/26/04 Rossi, Jr . LTGAT Ltgat LT11 50 7/05/04 Rossi, Jr . LTGAT Ltgat LT11 00 7/14/04 Rossi, Jr . LTGAT Ltgat LT1700 7/13/04 Rossi, Jr . LTGAT Ltgat LT11 50 7/14/04 Rossi, Jr . LTGAT Ltgat LT11 50 7/12/04 Rossi, Jr . LTGAT Ltgat LT1 1 50 7/09/04 Rossi, Jr . LTGAT Ltgat LT11 00 7/01/04 Rossi, Jr . LTGAT Ltgat LT11 50 7/07/04 Rossi, Jr . LTGAT Ltgat LT11 00 7/06/04 Rossi, Jr . LTGAT Ltgat LT11 00 7/13/04 Rossi, Jr . LTGAT Ltgat LT1300 7/30/04 Rossi, Jr. LTGAT Ltgat LT1250 7/08/04 Rossi, Jr . LTGAT Ltgat LT11 00 7/30/04 Rossi, Jr. LTGAT Ltgat LT11 50 7/23/04 Rossi, Jr. LTGAT Ltgat LT11 50 7/22/04 Scuri LTGAT Ltgat LT11 0
TYPING SCHEDULE INEXCELTYPINGspreadsheetsphotcopying and organizingreview lease docs
lease and Revtrac issue s
MontgomeryBlack Books
Search for info onreserves .
Search boxes forquestionable customers .Search binders and copypertenent info for Lew .Seach Concordancedatabase for info onreservesSearch for Venture Leaseinfo .Search boxes and tagdocs regarding customersoperating at a loss .Search Concordancedatabase for info onreserves and build binder.Search for info onreserves - Pirell isearch for reservesinformationsearch boxes for clients inpoor financial conditionSearch Concordance forinfo on QualitativeSummary and conferencecalls . Build binder .
0 8/20/04 Finkelstein LTGAT Ltgat LT110 review of doe production 50 8/23/04 Finkelstein LTGAT Ltgat LT110 review of rev rec 6 . 5
production0 8/10/04 Finkelstein LTGAT Ltgat LT110 review of rev rec does 3 .250 8/24/04 Finkelstein LTGAT Ltgat LT1 10 review of rev rec does 6.250 8/25/04 Finkelstein LTGAT Ltgat LT110 review of rev trak binders 60 8/26/04 Finkelstein LTGAT Ltgat LT110 prep for meeting on Tues Aug 31 50 8/11 /04 Finkelstein LTGAT Ltgat LT110 review of does/corr . 20 8/28 /04 Finkelstein LTGAT Ltgat LT140 work on rev rec memo 30 8/31 /04 Finkelstein LTGAT Ltgat LT130 attend all hands meeting in 7
San Diego , doe review0 8/17/04 Finkelstein LTGAT Ltgat LT110 review of production 5.250 8/05 /04 Finkelstein LTGAT Ltgat LT110 doe review/review atty corr . 50 8/30 /04 Finkelstein LTGAT Ltgat LT140 review and update of 5
original rev recoutline/mem o
0 8/04/04 Finkelstein LTGAT Ltgat LT110 review of doe production 5.250 8/03/04 Finkelstein LTGAT Ltgat LT110 review of does 60 8/31/04 Finkelstein LTGAT Ltgat LT295 travel to San Diego for all 2
hands meeting0 8/02/04 Finkelstein LTGAT Ltgat LT110 review of doe production 5.250 8/23/04 Gales LTGAT Ltgat LT105 3. 50 8/10/04 Keen ADMIN ADMIN AD130 photo copying 10 8/05/04 Keen ADMIN ADMIN AD100 type up spreadsheet, 0 . 5
10/11 /04 Rossi , Jr. LTGAT Ltgat10/06/04 Rossi , Jr. LTGAT Ltgat10/07/04 Rossi , Jr. LTGAT Ltgat10/26/04 Rossi , Jr. LTGAT Ltgat10/29/04 Rossi , Jr. LTGAT Ltgat10/27/04 Rossi , Jr. LTGAT Ltgat
EX100EX200EX300LT165LT110
LT125LT110LT115LT115LT115LT115LTI1 5
LT11 5
LT110LT115LT11 0
LT110LT110LT110LT115LT125LT140
LT11 5
LT110LT166LT166AD11 5
LT110LT110LT110LT110LT110LT110
copiesmealSTORAGEcopies for ciscorevenue rec docs/invoiceregister selectionteleconference with lesleyreview of doesregister analysisreview of doescisco rev rec analysisreview of registersfollowup work on invoiceregisters for lesleyprep of analysis of invoiceselection sdoc reviewinvoice analysi sreview does/ trip to sd tomeet with attysreview of doesreview of invoice registersreview of does for lesleyinvoice register analysisphone conferenceprep of does selection forlesley w.reports on rev trak, invoiceregisterreviewed cisco doesMEMOSPEADSHEETDraft memo, made severalchanges .
Capital issues and closebinder questions fromSpenceM.Montgomery0 10/21 /04 Rossi , Jr. LTGAT Ltgat LT125
0 10/21 /04 Rossi , Jr. LTGAT Ltgat LT11 00 10/21 /04 Rossi , Jr. LTGAT Ltgat LT1050 10/21 /04 Rossi , Jr . LTGAT Ltgat LT1400 10/20 /04 Rossi , Jr . LTGAT Ltgat LT11 00 10/19/04 Rossi , Jr . LTGAT Ltgat LT11 00 10/04/04 Rossi , Jr . LTGAT Ltgat LT11 00 10/19/04 Rossi , Jr . LTGAT Ltgat LT140
to be sent to attorneys0 10/14/04 Tan ADMIN ADMIN AD125 cisco five box indices 2 . 50 10/13/04 Tan LTGAT Ltgat LT1 05 3.50 10/08/04 Tan LTGAT Ltgat LT105 4 . 50 10/06/04 Tan LTGAT Ltgat LT105 search through sales 3
register0 10/05/04 Tan LTGAT Ltgat LT105 SEARCH THROUGH 2
SALES REGISTE R0 10/04/04 Tan LTGAT Ltgat LT1 05 search through sales 4
register for sales > 5 Mil l0 10/07/04 Tan LTGAT Ltgat LT1 05 spreadsheet for sales 8 . 50 10/01/04 Tan LTGAT Ltgat LT105 search through sales 5 . 5
Analysis on ReserveCustomer Number 8,Digital Island , TickerSymbol ISLD
8
1 .25
15.5
1 .5
3 .5
2 .252
6.5
1
0.50 .5
43.53 .5
3222
4.53 .5
6.752
0
00
0
12/10 /04 Herman LTGAT Ltgat LT115 CIS-PPNPF ; Completed 8analaysis of Allied Riser ;examined other files anddocuments for importantinformation , and generall yjust found a copy of thelease agreements ; Didfinancial statementanalysis, determining th efinancial health of ExodusCommunications, LeaseReserve Custome rnumber 6; beganevaluating otherdocuments relating toCisco Systems' AccountsReceivable , and howthese transactions wererecorded .
12/09/04 Herman LTGAT Ltgat LT115 CIS-PPNPF : Completed 8analysis for CTCCommunications andAllied Riser Corporation .
12/21/04 Herman LTGAT Ltgat LT105 0.2512/16/04 Herman LTGAT Ltgat LT115 Examining planning files of 3
PWC, searching fo rdocumentation related toaccounts receivable ,revenue recognition an dlease reserves . Also ,found documentatio nrelated to PWC's analysi sof inherrent risk related toCisco Systems' indust ry,and where and to whatextent PWC recognizedinherrent risks in the auditof Cisco Systems .
12/30/04 Herman LTGAT Ltgat LT115 Continuing analysis and 8write up of PWC workpapers for the CiscoSystems audits betwee nFY 1999 to 2001 . Analysisand write up concentrate dprimarily on PWC workpapers related to Account sReceivable, leases, leas ereserves , revenuerecognition and relate dissues .
12/29 /04 Herman LTGAT Ltgat LT115 An examination of and a 8written analysis of thePriceWaterhouseCooper(PwC) audit work papersfrom the Cisco System saudits . Work papersexamined and provide dwritten analysis of weregenerally limited to
Page 36
accounts receivable ,leasing revenu erecognition , and simila rdocumentation .
0 12/15/04 Herman LTGAT Ltgat LT115 Review of binders 6containing PWC wor kpapers prinicipally relatedto accounts receivable ,revenue recognition, leas ereserves and major leas ecustomers .
0 12/20/04 Herman LTGAT Ltgat LT100 0.250 12/08/04 Herman LTGAT Ltgat LT115 CSCO-PPNPF ; completed 7 . 5
analysis on Digital Island(ISLD), which is numbe reight on the reserve list ;started working on CTCCommunications, which i snumber seven on thereserve list .
0 12/14/04 Herman LTGAT Ltgat LT115 Examing files for PWC 7work papers and simila rdocuments , primaril ysearching for informatio nrelated to Revenu erecognition, account sreceivable, leasin greserves , and the audittesting by PWC for th eleases and the leas ereserves .
0 12/17/04 Herman LTGAT Ltgat LT115 File organization and 1similar procedure s
0 12/22/04 Herman LTGAT Ltgat LT105 0 .250 12/13/04 Herman LTGAT Ltgat LT115 PWC work papers and 7 . 5
search for work papersand other documentsrelated to AccountsReceivable , High-Risk (o rmajor) customers ,Revenue Recgonition an dFunded lease reserves .
0 1/06/05 Finkelstein LTGAT Ltgat LT115 rev trak analysis 5. 50 1/03/05 Finkelstein LTGAT Ltgat LT110 review of does 60 1/31/05 Finkelstein LTGAT Ltgat LT115 work on Lesley's list 4. 5
,supervise David h . andKeria
0 1/17/05 Finkelstein LTGAT Ltgat LT110 review of rev trak does 60 1/21/05 Finkelstein LTGAT Ltgat LT160 review does for Cupples 5
depo/send to Lesley0 1/14/05 Finkelstein LTGAT Ltgat LT160 review/ search for Cupples 4
does
0 1/19/05 Finkelstein LTGAT Ltgat LT160 review of emails for 3Guppies depo
0 1/19/05 Finkelstein LTGAT Ltgat LT110 review of does 30 1/18/05 Finkelstein LTGAT Ltgat LT110 review of rev trak 4
productio n0 1/31/05 Herman LTGAT Ltgat LT115 Gathering information from 5. 5
RevTrak Books (thre evolumes), and analysis ofCisco Systems accoun treceivables and reserve sfrom August of 1998 toMay of 2001 .
0 1/13/05 Herman LTGAT Ltgat LT115 Analysis of PWC work Ipapers related to audittests of Cisco Systems 'revnue recognition, majorlease customers, leasereserves and relatedissues .
0 1/04/05 Herman LTGAT Ltgat LT115 Examined Litigation Article 6file and compared thi sinformation to theinformation collected fromthe PWC audit wor kpapers; wrote up a workpaper describing what wasfound in the Litigatio nArticle file, and madereferences to the PWCwork papers
0 1/06/05 Herman LTGAT Ltgat LT115 More work search for 6 . 5PWC work papers relate dto testing of revenue ,revenue recognition and
related accounts .0 1/12/05 Herman LTGAT Ltgat LT115 PWC audit work paper 2 .5
review of Revenuerecognition, major leasecustomers, lease reservesand related issues .
0 1/05/05 Herman LTGAT Ltgat LT115 Search for and review of 6PWC documents relatedto the Cisco System saudits betwee n1999-2001 ; Documentsincluded work papersrelated to the testing o frevenue and revenuerecognition . Thesedocuments often start witha PWC reference of 600 0-- 6000 series documents .
0 1/27/05 Herman LTGAT Ltgat LT1 15 PWC work paper analysis 4 . 5of Leasing and incom erelated issue s
0 1/11/05 Herman LTGAT Ltgat LT115 Analyis of PWC work 7papers related to CiscoSystems Revenu eRecognition, major leas ecustomers, lease reserve sand similar accounts .
0 1/21/05 Herman LTGAT Ltgat LT105 Work related to major 4 . 5lease customers .
0 1/07/05 Herman LTGAT Ltgat LT115 Search of PWC work 6papers related to revenu erecognition and majo rlease customers . Includedwritten analysis work .
0 1/10/05 Herman LTGAT Ltgat LT115 PWC audit work paper 4review for audit work o nrevenues, revenuerecognition, and audittests in this area andsimilar areas .
0 1/19/05 Herman LTGAT Ltgat LT115 Search for company 4 . 5information on the websitewww.bankrupt .com/TCR
-P
ublic for major leas ecustomers for the perio dbetween June 2000 toDecember 31, 2000 .
0 1/20/05 Herman LTGAT Ltgat LT105 Work for major lease 4.25customers -- primarily th esmaller one in the group .
0 2/11/05 Herman LTGAT Ltgat LT115 Finished preparing the 2.25spreadsheet on Account sReceivable and Reserves .E-mailed a copy to Lew .
0 2/01 /05 Herman LTGAT Ltgat LT115 Spreadsheet for Accounts 8Receivable Reserveaccounts .
0 2/09/05 Herman LTGAT Ltgat LT1 15 More work on the 6spreadsheet of receivables
0 2/02 /05 Herman LTGAT Ltgat LT1 15 Finished spreadsheet on 6accounts receivable an drelated bad debt an dreserve account .Reconciled gros saccounts receivable to netaccounts receivable b yanalyzing the variou sreserve accounts . Source :The monthly "Blac kBooks " from Cisc oSystems that containedmonth-end closin ginformation .
0 2/12/05 Herman LTGAT Ltgat LT115 Polish the AIR and 7 . 5Reserves spreadshee tand organized files base dupon Cisco System'smonth-end closingscontained in the "BlackBooks . "
0 2/28/05 Herman LTGAT Ltgat LT115 Prefunded Reserves 1 . 5Analysis for FY 2000
0 2/16/05 Herman LTGAT Ltgat LTI 15 Overhall of the A/R and 4Reserves Spreadsheet
0 2/03/05 Herman LTGAT Ltgat LT115 Additional work on 4Accounts Receivable an dreserves .
0 2/04 /05 Herman LTGAT Ltgat LT115 Additional work for Lou 5 .25concerning the Account sReceivable Spread Sheetand tying out the amount son the spread sheet to th eamount shown in CiscoSystems' SEC 1OQsand/or 1OKs .
0 2/14/05 Herman LTGAT Ltgat LT115 30 2/28/05 Herman LTGAT Ltgat LT1 05 Organize a binder of 1
0 3/19/05 Herman LTGAT Ltgat LTI 1 50 3/18/05 Herman LTGAT Ltgat LT11 5
0 3/31/05 Herman LTGAT Ltgat LT11 50 3/09/05 Herman LTGAT Ltgat LTI 1 5
0 3/23 /05 Herman LTGAT Ltgat0 3/10/05 Herman LTGAT Ltga t
0 3/16/05 Herman LTGAT Ltgat
0 3/24/05 Herman LTGAT Ltgat
0 3/15/05 Herman LTGAT0 3/25/05 Herman LTGAT
LtgatLtgat
LT115LT11 5
LT115
LT11 5
LT115LT167
0 3/26 /05 Herman LTGAT Ltgat LT1 150 3/28/05 Herman LTGAT Ltgat LT1150 3/29/05 Herman LTGAT Ltgat LT1 15
PFI schedule workPFI Analysi sAnalysis of September2000 PFI Report of majorlease customers of CiscoSystemsPFI Inventory AnalysisMonthly PFI ReportanalysisPFI analysisWork related toPriceWaterhouseCoopers'audit tests of CiscoSystems Pre-FundedInventory .PFI scheduleSummary of documents(categorized by BatesNumbers) for informationrelated to PWC's auditwork and auditdocumentation related tothe internal controls forCisco System's reservesand Pre-Funded Inventory .Assisted Lou in locatingand polishing a schedulefor Cisco System'sInventory . Performed workrelated to the monthly PFIReports, breaking downthe PFI balances my majorcustomers.PFI aging schedule for thefollowing companies : ICGEquipment, Verio, (Basis,Inc. and PSINet.PFI Inventory workPFI spreadsheetpreparation for September2000 for the followingcompanies : ICGEquipment, Verio, IBASISand PSI NetPFI Box content evaluationPFIPFI balances of major
67.75
42.585
3.58
2.58
3.253
33
8
6
2.258
32 .5
8
lease customers for dec-000 3/30/05 Herman LTGAT Ltgat LT115 PFI report for December,2000 50 3/14/05 Herman LTGAT Ltgat LT115 Evaluation of new boxes 2 . 5
of Pre-Funded Inventory ;other analysis related toPFI .
0 3/02/05 Herman LTGAT Ltgat LT115 Pre-Funded Inventory 8analysis work .
0 3/07/05 Herman LTGAT Ltgat LT115 Additional work on the 8Pre-Funded Inventoryspreadsheets, verifyin gthe Bates Numbers liste don the spreadsheet . Also ,analysis of the April 30 ,2001 PFI Report ,searching for informatio nconcerning Digita lBroadband Networks ; noinformation for DigitalBroadband Networks wasfound. E-mailed a briefmemo to Al Ross iconcerning the results ofthis analysis .
0 3/03/05 Herman LTGAT Ltgat LT115 Pre-Funded Reserves and 5other spreadsheet workrelated to the reserves .
0 3/04/05 Herman LTGAT Ltgat LT167 Work on RMA Reserves, 8General Reserves ,Returns and AllowancesReserves and Pre-FundedInventory.
0 3/08/05 Herman LTGAT Ltgat LTI 15 Analysis of the April 30, 0 . 52001 PFI report.
0 3/05/05 Herman LTGAT Ltgat LT167 Work done for Returns & 5Allowance Reserves, RMAReserves, Genera lReserves and Pre-Funde dInventory .
0 3/01/05 Herman LTGAT Ltgat LT115 Pre-Funded Inventory work 5.250 3/19/05 Koenig LTGAT Ltgat LT166 TRANSMITTAL LETTER 0 . 5
0 3/18/05 Tan LTGAT Ltgat LTI20 search through 3.75Concordance for inventorywrite-down ofmanufactures Solectron ,Celectica
0 3/17/05 Tan LTGAT Ltgat LT120 search in Concordance for 4Frank Atter and exces sinventory charge
0 3/29/05 Tan LTGAT Ltgat LT120 search through PWC 1 .5workpapers binders andConcordance for PF Iinventory
0 3/16/05 Tan LTGAT Ltgat LTI20 search in Corcordance for 2.25Frank Atter and inventorywrite-down
0 3/25/05 Tan ADMIN ADMIN AD150 searching for documents 1 .25and and orgnanize leasecustomer binders
0 3/07/05 Tan LTGAT Ltgat LT1 10 search through 3 . 5Concordance for exhibits
0 3/05/05 Tan ADMIN ADMIN AD130 make copies 1 . 50 3/14/05 Tan LTGAT Ltgat LT120 research inventory letter 0 .750 3/01/05 Tan LTGAT Ltgat LT120 research through 2
Concondance fo rRoadrunner documents
0 3/22/05 Tan LTGAT Ltgat LT120 search through 3 . 5Concordance for excessinventory documents
0 3/08/05 Tan LTGAT Ltgat LTI40 exhibit preparation for 3memo - highlight and sav einto pdf file
0 3/04/05 Tan LTGAT Ltgat LT120 search through 1concordance for RMAOpen Report
0 3/21/05 Tan LTGAT Ltgat LT120 research through 3 . 5Concordance for emails ,documents related toinventory write-down
0 3/14/05 Tan ADMIN ADMIN AD130 print out inventory material 0 . 5from Cisco black books
0 5/06/05 Finkelstein LTGAT Ltgat LT110 inventory document s0 5/27/05 Finkelstein LTGAT Ltgat LT110 search for docs / meet with
Craig0 5/02/05 Finkelstein LTGAT Ltgat LT115 review of rev. rec
correspondence0 5/26/05 Finkelstein LTGAT Ltgat LT110 search for relevant doc s0 5/18/05 Finkelstein LTGAT Ltgat LT110 pwc wps0 5/23/05 Finkelstein LTGAT Ltgat LT135 review of infante 's orde r
/search for docs0 5/25 /05 Finkelstein LTGAT Ltgat LT110 search for docs/ meet wit h
Craig0 5/31/05 Herman LTGAT Ltgat LT1050 5/27/05 Herman LTGAT Ltgat LT1050 5/19/05 Herman LTGAT Ltgat LT105 E & Y work paper
organization of Invento ry,Reserves , Cisco Capital ,etc.
0 5/24/05 Herman LTGAT Ltgat LT1050 5/25/05 Herman LTGAT Ltgat LT1050 5/26 /05 Lipio ADMIN ADMIN AD100 cover letter for binders0 5/31 /05 Rossi , Jr . LTGAT Ltgat LT137 meet w/ Herman re
receivable/revenue files ofPWC
0 5/25/05 Rossi , Jr . LTGAT Ltgat LT1370 5/23/05 Rossi , Jr . LTGAT Ltgat LT135 Infante Orde r0 5/24/05 Rossi, Jr. LTGAT Ltgat LT1370 5/11 /05 Rossi , Jr. LTGAT Ltgat LT1050 5/23 /05 Rossi , Jr . LTGAT Ltgat LT125 Lesley re revenue docs
Hours
25112000000000002
11 .5
2
10 .5
2
0.75
2 . 56
4 .5
7.57 .5
0.251 .75
2.750.752.5
1 .250.5
0 5/20/05 Rossi, Jr . LTGAT Ltgat LT137 1 .250 5/19/05 Rossi, Jr . LTGAT Ltgat LT137 supervise herman on 0 .7 5
PWC wp org0 5/18/05 Rossi, Jr . LTGAT Ltgat LT105 organize & categorize 1 .75
loose doc s0 5/16/05 Rossi, Jr . LTGAT Ltgat LT105 1 .250 5/13/05 Rossi, Jr . LTGAT Ltgat LT137 3 . 50 5/12/05 Rossi, Jr . LTGAT Ltgat LT110 clean up loose 2.75
docs/overnight binder toJonah
0 5/09/05 Rossi, Jr . LTGAT Ltgat LT137 review various wp binders 1 . 5and PWC spreadsheet forPWC deponents .
0 6/02/05 Finkelstein LTGAT Ltgat LT1 15 prep time gathering docs, 6correspondence, timespent with Craig toprepare him for the do creview of rev . rec. docs
0 6/01/05 Finkelstei n LTGAT Ltgat LT1 15 gathering documents, 5review of information, preptime with craig for docsearch
0 6/01/05 Herman LTGAT Ltgat LT105 Sent additional binders to 6the attorneys .
0 6/07/05 Jones LTGAT Ltgat LT120 Searched for reserve % 3. 5structured loan clients inConcordance ,PriceWaterhouseCooper'sWorkpapers, Client Folders
0 6/14/05 Jones LTGAT Ltgat LT167 Change structured loan 0 .75spreadsheet for Al .
0 6/15/05 Jones LTGAT Ltgat LT120 Make binder of structured 0.75loan exposures withsupporting documents .
0 6/28/05 Jones LTGAT Ltgat LT120 Research Review 3Clearance Meetings for Alon Concordance
0 6/22/05 Jones LTGAT Ltgat LT1 67 Create spreadsheet for 3revenue recognition for 3different months for Al,hard to read documents
0 6/08/05 Jones LTGAT Ltgat LT120 Researched credit ratings 4for clients of Cisco FY200 1
0 6/06/05 Jones LTGAT Ltgat LT120 Searched through 1 . 5Concordance fo rnon-equipment structuredloan customers andreserve percentages .
0 6/07/05 Jones LTGAT Ltgat LTI20 Make spreadsheet of 2 .5structured loans and fin dreserve percentages .Research and find creditratings for clients of Cisco .
0 6/30/05 Jones LTGAT Ltgat LT165 Print review clearance 1meetings for Al to PDF file s
0 7/21/05 Finkelstein LTGAT Ltgat LT160 review/ assist Craig with Idocs for PWC depos
0 7/21/05 Finkelstein LTGAT Ltgat LT160 pull review documents for 2Rma dep o
0 7/19/05 Finkelstein LTGAT Ltgat LT160 work with Criag on doc 2pulling for PWC depos
0 7/21/05 Finkelstein LTGAT Ltgat LT160 initial review of docs for 2Chadwick depo
0 7/22/05 Finkelstein LTGAT Ltgat LT160 review of Al's memos and 6 . 5docs, supervise staff i ngathering documents i nconnection with prep fo rChadwick depo
0 7/25/05 Finkelstein LTGAT Ltgat LT160 review of memo's, 8 . 5gathering of documents,
supervise staf in gatherin gdocs, prep for Chadwickdepo
0 7/26/05 Finkelstein LTGAT Ltgat LT160 prep for Chadwick depo by 8 .5reviewing memo's filing sand related documents .Supervise staff in pullingand organizing documents
0 7/27/05 Finkelstein LTGAT Ltgat LT160 review of materials and 5meet with atty's to discus sand review materials an dexhibits for the Chadwic kdepo and to discuss Rm adepo with Luke and Lesley
0 7/27/05 Finkelstein LTGAT Ltgat LT160 prep of memo and review 2of materials in connectio nwith RMA depo for attyLuke Olts
0 7/27/05 Finkelstein LTGAT Ltgat LT295 travel to san fran for 4 . 5Chadwick dep o
0 7/28/05 Finkelstein LTGAT Ltgat LT160 depo attendence and 12prep time before and afte rdepo session
0 7/29/05 Finkelstein LTGAT Ltgat LT160 discussions with Luke and 0 . 5Lesley re : Rma 30b6 depo
0 12/01 /05 Rossi, Jr. LTGAT Ltgat LT1550 12/02 /05 Rossi, Jr. LTGAT Ltgat LTI 550 12/04 /05 Rossi , Jr. LTGAT Ltgat LT1550 12/05 /05 Rossi , Jr . LTGAT Ltgat LT1550 12/05/05 Rossi , Jr . LTGAT Ltgat LTI 1 50 12/05/05 Rossi , Jr . LTGAT Ltgat LT1250 12/08/05 Rossi , Jr . LTGAT Ltgat LTI 1 50 12/09/05 Rossi , Jr . LTGAT Ltgat LT1550 12/09/05 Rossi , Jr . LTGAT Ltgat LT110
copy'sSTORAGEreview of various expertreportsreview of various expertreportsreview of various expertreportsdiscussion with atty re :expert responsereview of expert reports formeeting with atty sreview of expert reportsreview of expert responsesreview of reply responsesreview of reply responsesto expe rt repo rtsread Pike & Weil
Spence & Matt
Capital info
Hours
004
1
2.25
0.5
2.5
0.52.52 .5
4
2.252 .751 .251 .75
30.751 .753.250.75
0 12/11/05 Rossi , Jr . LTGAT Ltgat LT155 2. 50 12/12105 Rossi , Jr . LTGAT Ltgat LT155 6.50 12/13/05 Rossi, Jr . LTGAT Ltgat LT155 3.750 12/14/05 Rossi , Jr . LTGAT Ltgat LT155 3. 50 12/15/05 Rossi , Jr . LTGAT Ltgat LT155 40 12/16/05 Rossi , Jr . LTGAT Ltgat LT155 3. 5
Totals: 61
Invoice #9408 for CISCO ( LIT2001012) Jan-06 40 . 4