Free Affidavit in Support of Motion - District Court of California - California

Case 5:07-cv-03001-RIVIW Document 35-3 Filed 08/17/2007 Page 1 of 4
SULLIVAN 8i CROMWELL LLP
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August 8, 2007
Wa Facsimile
Paul C. Gluckow, Esq.,
Simpson Thacher & Bartlett LLP,
425 Lexington Avenue,
New York, NY 10017-3954.
Re: Tax Protection Ageement Dispute
Dear Paul:
I write in reply to your letter of yesterday.
First and unfortunately, your letter omits to mention that, although you
have proposed that the parties use one of the Big Four accounting firms to preside over
the Tax Protection Agreement arbitration, you have since March ignored our requests for
information regarding your clients’ relationships to those firms. By your continued
refusal, you are simply reading out of the Tax Protection Agreement the word
"independent" from the requirement that a "nationally recognized independent public
accounting fimi" resolve the dispute. As we have repeatedly stated, it would be ill-
advised for us to advise our clients to retain an accounting firm without knowing the
degree of its independence from your clients or Blackstone. We filed our petition to
compel arbitration based on your clients’ unyielding insistence on using the Big Four
without disclosing any information regarding their potential conflicts, and in disregard of
the terms ofthe Tax Protection Agreement. We have learned, in conversations with each
of the Big Four firms, in combination with a review of your client’s public SEC filings,
that each of the Big Four provide extensive services to your clients.

Case 5:07-cv-03001-RIVIW Document 35-3 Filed 08/17/2007 Page 2 of 4
Paul C. Gluckow, Esq. -2-
Second, your letter states that you are not conditioning the provision of
information regarding the Big Four finns’ independence on the extension of your
deadline to oppose our petition, and that you are currently locating that information. If
my understanding of your letter is correct, we are willing to extend the opposition
deadlines in our federal and state actions by two weeks provided that, before the extended
deadlines, you agree to provide us with infonnation regarding your clients’ conflicts with
respect to the Big Four, Grant Thornton and Reznick Group. We would also like your
agreement that you will take no further action in the Illinois case you have filed during
that two-week period. Please let me know if this arrangement is acceptable to you, and if
so we will file the appropriate papers.
Third, in the interest of assisting you in determining the appropriate
accounting firm to arbitrate the dispute, I can advise you that none of our clients has, over
the past three years, had any business relationship with Grant Thornton or Reznick
Group.
Very truly urs,
einEerg E §
cc: Bruce D. Angiolillo, Esq.
(Simpson Thacher & Barlett LLP)

Case 5:07-cv-03001-RIVIW Document 35-3 Filed 08/17/2007 Page 3 of 4
Confirmation Report-Memory Send
Page : 001
Date & Time: 2007-Aus·08 11:30am
Line 1 : 310 712 8860
Line 2 : 310 712 8850
Machine ID : SULLIVAN 8 CROMWELL
Job number : 882
Date : Auz·08 11:29am
T0 : 1!9121245525D2
Number of pages : 003
Start time : Aug-08 11:29am
End time : Aus·08 11:30am
Pages sent : 003
Status : OK
mbmmu :%2 *** SENEISUCCESSFUL ***
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SULLIVAN 8: CR()1\/IVVELL LLP *“*“ FAX NUMBER
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Dato: August 8, 2007
FRQIVI; SENDER'S !~ll.HvlBER(S)
1\/llchael I-I. Steinbegg 5 $3102 712-6670

TO: COMPANY NUh/lBER(S)
l . Paul C- Cilueknvv, Esq. Slrnpscn 'Phuchcr 3: Bartlett LLP [5]] 212.455.25OZ
in- 2 12.455.265;+
2. ce: Bruce D. Anglollllo. Esq. Sitnpson Th ~ cltcr & Bartlett LLP [El 212.45S.2502
__ E 212.455.37ss
Jldcssaga:
Please see the attached-
.lVI.1~l.S.
`Nurnbcr nl' pugcs sent
(lhcludhtg covcr sl·•eat[_s]) 3
Iftlterc nrc any problcntn wlrh this fncslntlle, please anll Fax Dcpnrtvntcut nt tlxln nun-ther: (310) 712-6656.
Ccn11d¢ntInIlry Nate: '1"he infurrnntlon in this Fuusirrtll: rncssugc ("fnx") la nent by nn nuorncy cnr his/hcr Agent. ls lntcndcd to be contidentlal and
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Case 5:07-cv-03001 -F1l\/IW Document 35-3 Filed 08/17/2007 Page 4 of 4
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SULLIVAN & CROMWELL LLP FAX NUMBER
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Telephone: (310) 712-6600
Facsimile: (310) 712-8800
Date: August 8, 2007
FROM; SENDER’S NUMBER(S)
Michael H. Steinberg T (310) 712-6670
Tg; COMPANY NUMBER(s)
1. Paul C. Gluckow, Esq. Simpson Thacher & Bartlett LLP @1 212.455.2502
'E 212.455.2653
2. cc: Bruce D. Angiolillo, Esq. Simpson Thacher & Bartlett LLP QI 212.455.2502
E 212.455.3735
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M.H.S.
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Case 5:07-cv-03001-RMW

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