<SEC-DOCUMENT>0001193125-12-139863.txt : 20120702
<SEC-HEADER>0001193125-12-139863.hdr.sgml : 20120702
<ACCEPTANCE-DATETIME>20120329162856
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-12-139863
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20120329

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ZWEIG FUND INC /MD/
		CENTRAL INDEX KEY:			0000812090
		IRS NUMBER:				133353326
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		100 MUNSON STREET
		CITY:			GREENFIELD
		STATE:			MA
		ZIP:			01301
		BUSINESS PHONE:		800-272-2700

	MAIL ADDRESS:	
		STREET 1:		100 MUNSON STREET
		CITY:			GREENFIELD
		STATE:			MA
		ZIP:			01301

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ZWEIG TOTAL RETURN FUND INC
		CENTRAL INDEX KEY:			0000836412
		IRS NUMBER:				133474242
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		100 MUNSON STREET
		CITY:			GREENFIELD
		STATE:			MA
		ZIP:			01301
		BUSINESS PHONE:		800-272-2700

	MAIL ADDRESS:	
		STREET 1:		100 MUNSON STREET
		CITY:			GREENFIELD
		STATE:			MA
		ZIP:			01301
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>&lt;![CDATA[Zweig Comment &amp; Response Letter]]&gt;</TITLE>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">1095 Avenue of the Americas</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">New York, NY 10036-6797</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">+1 212 698 3500
Main</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">+1 212 698 3599 Fax</FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">www.dechert.com</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>ALLISON M FUMAI</B></FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">allison.fumai@dechert.com</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">+1 212 698 3526 Direct</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">+212 698 3599 Fax</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March 29, 2012 </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>VIA EDGAR </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Bo Howell </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Investment Management </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">U.S.
Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street, N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Re:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Zweig Fund, Inc., File No.&nbsp;811-04739, and The Zweig Total Return Fund, Inc., 811-05620 (each a &#147;Registrant&#148; or &#147;Fund&#148;)
</FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Howell: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">We are writing in response to comments provided via telephone on March&nbsp;23, 2012 with respect to a preliminary proxy statement (the
&#147;Proxy&#148;) filed with the Securities and Exchange Commission (&#147;SEC&#148;) on March&nbsp;14, 2012 on behalf of each Registrant. The Registrants have considered your comments and have authorized us to make the responses and changes
discussed below to the Proxy on their behalf. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:0px;"><FONT STYLE="font-family:Times New Roman" SIZE="2">On behalf of the Registrants, set forth below in bold are the SEC
staff&#146;s comments along with our responses. </FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">1</SUP></FONT><FONT STYLE="font-family:Times New Roman" SIZE="2">
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 1</U>: Please consider including a table presenting each proposal consistent with Item&nbsp;22(a)(3)(ii) of Schedule 14A.
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: We respectfully acknowledge the comment, however, because the Proxy only relates to two Funds and most proposals affect
both Funds, we believe that the bullet point list of proposals in the Notice of Annual Meeting of Shareholders includes the substantive information required by Item&nbsp;22(a)(3)(ii) and clearly presents to shareholders of each Fund the proposals
relevant to each Fund. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:8px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000;width:10%">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"></FONT><FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">1</SUP>&nbsp;</FONT><FONT
STYLE="font-family:Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Capitalized terms have the same meaning as in the Proxy unless otherwise indicated. </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">US&nbsp;&nbsp;&nbsp;&nbsp;Austin&nbsp;&nbsp;&nbsp;&nbsp;Boston&nbsp;&nbsp;&nbsp;&nbsp;Charlotte&nbsp;&nbsp;&nbsp;&nbsp;Hartford&nbsp;&nbsp;&nbsp;&nbsp;
Los Angeles&nbsp;&nbsp;&nbsp;&nbsp;New York&nbsp;&nbsp;&nbsp;&nbsp;Orange County&nbsp;&nbsp;&nbsp;&nbsp;Philadelphia&nbsp;&nbsp;&nbsp;&nbsp;Princeton&nbsp;&nbsp;&nbsp;&nbsp;San Francisco </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Silicon&nbsp;Valley&nbsp;&nbsp;&nbsp;&nbsp;Washington&nbsp;DC&nbsp;&nbsp;&nbsp;&nbsp;EUROPE&nbsp;&nbsp;&nbsp;&nbsp;Brussels&nbsp;&nbsp;&nbsp;&nbsp;Dublin&nbsp;&nbsp;&nbsp;&nbsp;London&nbsp;&nbsp;&nbsp;
&nbsp;Luxembourg&nbsp;&nbsp;&nbsp;&nbsp;Moscow&nbsp;&nbsp;&nbsp;&nbsp;Munich&nbsp;&nbsp;&nbsp;&nbsp;Paris&nbsp;&nbsp;&nbsp;&nbsp;ASIA&nbsp;&nbsp;&nbsp;&nbsp; Beijing&nbsp;&nbsp;&nbsp;&nbsp;Hong Kong </FONT></P>

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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">March&nbsp;29,&nbsp;2012</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Page
2</FONT></P></TD></TR></TABLE> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 2</U>: With respect to the presentation of information regarding the Directors and
officers of each Fund: </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>a.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please present the biographical information required by Item&nbsp;22(b)(1) in tabular form. </B></FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>b.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please supplement the disclosure regarding each Director&#146;s qualifications for service on the Board consistent with Item&nbsp;22(b)(3)(ii) of Schedule 14A.
</B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>c.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please state whether, and if so how, the Nominating Committee considers diversity in identifying nominees for Director, as required by Item&nbsp;407(c)(2)(vi) of
Regulation S-K, which is incorporated into Item&nbsp;22(b)(15) of Schedule 14A. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: With respect to part (a),
we respectfully acknowledge the comment; however, we believe that the biographical information presented in the Proxy about each Director and officer satisfies the requirements of Item&nbsp;22(b)(1) and is more easily understood by a shareholder in
its current form than in tabular form. With respect to part (b), the Proxy has been revised accordingly. With respect to part (c), the Proxy states that, in selecting nominees to the Boards, each Fund&#146;s Nominating Committee considers
&#147;whether the candidate&#146;s background, skills and experience will complement the background, skills and experience of other nominees and <U>contribute to the diversity of the Board</U>.&#148; We believe this satisfies the requirements of
Schedule 14A. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 3</U>: If the changes to the Funds&#146; strategies and objectives disclosed in connection with Proposal 2.A will
subject the Funds to additional risks, please disclose such risks. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: The Proxy has been revised accordingly. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 4</U>: If Proposal 2.B is approved by shareholders and each Fund&#146;s investment objective is reclassified as
&#147;non-fundamental,&#148; please disclose what notice, if any, shareholders will receive if a Board changes a Fund&#146;s investment objective in the future. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: The Proxy currently states: &#147;Each Fund&#146;s shareholders would receive notice &#150; prior to its implementation &#150; of any change to a Fund&#146;s investment objective that has
been approved by the Board.&#148; </FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 5</U>: With respect to Proposal 3.B, please disclose the types of senior securities a Fund
may issue if the Proposal is approved by shareholders. Please disclose any new risks to which the Funds will be subject as a result of the issuance of senior securities. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: With respect to Proposals 3.A &#150; 3.K, we note that approval of the Proposals by shareholders does not imply that a Fund will necessarily engage in the activity permitted under the
revised fundamental investment restrictions. While Proposal 3.B will permit the issuance of senior securities to a greater extent, the Funds currently have no intention to do so; however, if Proposal 3.B is approved, each Fund does not anticipate
issuing senior securities other than possibly margin debt, credit facilities, dollar rolls, reverse repurchase agreements and preferred shares. We have enhanced the disclosure relating to the risks of issuing senior securities in the event that a
Fund does so in the future. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 6</U>: We note that the discussion of Proposal 3.C states that the Proposal would permit each Fund
to invest in derivatives to the extent permitted by the 1940 Act. In that regard: </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>a.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please explain supplementally how each Fund would value derivatives. Please confirm that the Funds will not use a derivative&#146;s notional value when valuing
derivatives. </B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>b.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please disclose any new risks to which the Funds will be subjected as a result of the issuance of derivatives. </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: With respect to part (a), listed derivatives, such as options, that are actively traded are valued based on quoted prices from the
exchange and are categorized as Level 1 in the hierarchy, as defined in each Fund&#146;s shareholder reports. Over the counter derivative contracts, which include forward currency contracts and equity linked instruments, are valued based on inputs
observed from actively quoted markets and are categorized as Level 2 in the hierarchy, as defined in each Fund&#146;s shareholder reports. The Fund will not use the notional value of a derivative in valuing the derivative. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">With respect to part (b), while Proposal 3.C will permit the Funds to invest in derivatives to a greater extent, the Funds currently have no intention to
do so; however, we have enhanced the disclosure relating to the risks of issuing derivatives in the event that a Fund does so in the future. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 7</U>: Under the Amended Agreement, the Adviser would receive an annual fee as a percentage of &#147;managed assets,&#148; defined as total
assets of a Fund, including any form of investment leverage, minus accrued liabilities of each Fund (other than borrowings or indebtedness constituting financial leverage).</B></FONT></P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>a.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please state supplementally whether a Fund&#146;s derivative investments are included in the calculation of &#147;managed assets,&#148; and, if so, how those
derivatives will be valued for that purpose.</B></FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>b.)</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Please provide an all inclusive list of the types of leverage a Fund may use that would be included in the Fund&#146;s &#147;managed assets.&#148;
</B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: With respect to part (a), derivatives would be included in the assets/liabilities of a Fund and would
therefore be taken into account in calculating managed assets.&nbsp;Each Fund intends that derivatives will be valued for purposes of calculating managed assets as discussed in the response to Comment 6 above. With respect to part (b), the types of
leverage that a Fund may use that would be included in the Fund&#146;s definition of &#147;managed assets&#148; would include margin debt, credit facilities, dollar rolls, reverse repurchase agreements and preferred shares. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 8</U>: Please provide a table showing each Fund&#146;s fees under the Current Agreement and pro forma fees under the Amended Agreement.
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: The Proxy has been revised accordingly; however, we note that neither Fund intends to use leverage on a going forward
basis and, therefore, the current and pro forma fees are identical. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 9</U>: Please provide the amount the Adviser would have
received during the last fiscal year from each Fund had the proposed fee been in effect. If a Fund did not use leverage during the last fiscal year, please base the fees that the Adviser would have received under the proposed fee on estimated
borrowings on a going forward basis. </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: The Proxy has been revised accordingly; however, we note that the Funds did not use
leverage during the fiscal year ended December&nbsp;31, 2011, and do not intend to use leverage going forward and, therefore, the fees paid to the Adviser would not have been different under the Amended Agreement. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Comment 10</U>: Please provide more detail regarding the factors considered by each Fund&#146;s Board in approving the Amended Agreements. In
particular, please provide more detail regarding how each Fund compares with its peer Funds with respect to performance and expenses paid. </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: The Proxy has been revised accordingly. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Please do not hesitate to contact the undersigned at (212)&nbsp;698-3526 or Christopher P. Harvey at (617)&nbsp;728-7167 if you wish to discuss this
correspondence further. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Allison M. Fumai</FONT></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Allison M. Fumai</FONT></TD></TR>
</TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

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