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Date
Rule
801.1(b)
Staff
Michael Verne
Response/Comments
The entire 15% ownership of LLC B is attributed to the 52% member, I would assume that if the 15% was sold to a third party the considerations would be divided among all of the members of LLC A.

Question

From:(redacted)

Sent:Monday, April 10, 2006 7:09 PM

To:Verne, B. Michael

Subject:Control Question

HiMike,

Ihope you are well. Here is a question to which I believe I know the answer, butI just want to confirm.

Ifa member controls LLC A by having the right to 52% of the profits and LLC Aholds 15% of LLC B, is the entire 15% ownership of LLC B attributed to themember or 52% of 15%?

Then, if the 15% ownership in LLC B were acquired bya third party for $30 million, would the member be deemed to receive the entire$30 million or 52% of $30 million?

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