Opinion ID: 214967
Heading Depth: 2
Heading Rank: 2

Heading: The Partners Vote to Approve the Transaction

Text: To help the partners determine how to vote on the sale, E&Y prepared a Partner Information Document (PID), which summarized the proposed transaction and discussed its tax implications. The PID stated that the sale is a taxable capital gains transaction, and that it has been agreed that Ernst & Young, its partners, and Cap Gemini will treat valuation and related issues consistently for U.S. federal income tax purposes. The PID further included hypothetical tax calculations that showed the gain from receiving the Restricted Shares was reportable in full in 2000. It was generally expected that the stock would appreciate in value, and this structure was designed to assure capital gains treatment, with all tax on the then-value of all of the stock being paid in 2000. At the conclusion of a meeting of partners in Atlanta on March 7 and 8, 2008, 95% of the consulting partners, including Fort, voted in favor of the transaction. Fort subsequently signed the Partner Agreement, making him a party to the Master Agreement.