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Date
Rule
Form Item 7(c)
Staff
Michael Vern
Response/Comments
Agree.

Question

From: (redacted)

Sent: Wednesday, February 01, 2006 10:57 AM

To: Verne, B. Michael

Subject:Item 7(c)(iii)

Dear Mike,

Item 7(c)(iii) requests thestates in which customers of the filing party are located for overlappingwholesale codes.

I have the followingquestion from my client and I can't find the answer out there:

Potentially we can sell toall 50 states in all codes. Did we actually have product in these categoriesship to all 50 states is a question we can not answer precisely without doing alittle more research. Also is the question who we sell to, where we ship it to,or where the product is actually sold to the consumer. For instance, we sell toX [a large nationwide company, though not certain whether there are stores inevery single state] whose offices are located in Arizona. We ship to a fewdistribution centers. X ships the product to their stores located in most ofthe 50 states. Please advise. Thanks.

It seems to me it would makesense to list the states in which direct customers are located only -- thus, Iwould list X's headquarters office and the states in which any distributioncenters are located and to which the client shipped product. I would not listeach state where X has a store. Please tell me if you agree.

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