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Exhibit 4.4
$120,000,000
WII COMPONENTS, INC.
10% SENIOR NOTES DUE 2012
PURCHASE AGREEMENT
February 12, 2004
CREDIT SUISSE FIRST BOSTON LLC,
As Representative of the Several
Purchasers,
Eleven Madison
Avenue,
New York,
New York 10010-3629
Dear Sirs:
1. INTRODUCTORY.
WII Components, Inc., a Delaware corporation (the
"COMPANY"), proposes, subject to the terms
and conditions stated herein, to
issue and sell to the several initial
purchasers named in Schedule A hereto (the
"PURCHASERS") U.S.$120,000,000 principal
amount of its 10% Senior Notes Due 2012
(the "OFFERED SECURITIES"). The Offered
Securities will be unconditionally
guaranteed (each, a "GUARANTEE") on an
unsecured senior basis by each of the
Company's subsidiaries listed on Schedule B
hereto (the "GUARANTORS"). The
Offered Securities are to be issued under
an indenture to be dated as of
February 18, 2004 (the "INDENTURE"), among
the Company, the Guarantors and U.S.
Bank National Association, as Trustee. The
United States Securities Act of 1933
is herein referred to as the "SECURITIES
ACT".
The holders of
the Offered Securities will be entitled to the benefits of a
Registration Rights Agreement of even date
herewith among the Company, the
Guarantors and the Purchasers (the
"REGISTRATION RIGHTS AGREEMENT"), pursuant to
which the Company agrees to file a
registration statement with the Securities
and Exchange Commission (the "COMMISSION")
registering the resale of the Offered
Securities under the Securities Act.
The Company and
the Guarantors hereby jointly and severally agree with the
several Purchasers as follows:
2.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE GUARANTORS.
The
Company and each Guarantor, jointly and
severally, represents and warrants to,
and agrees with, the several Purchasers
that:
(a) A preliminary offering circular dated February 1, 2004, and
an
offering
circular dated February 12, 2004, relating to the Offered
Securities to be
offered by the Purchasers have been prepared by the
Company. Such
preliminary offering circular (the "PRELIMINARY OFFERING
CIRCULAR") and
offering circular (the "OFFERING CIRCULAR"), as supplemented
as of the date
of this Agreement, are hereinafter collectively referred to
as the "OFFERING
DOCUMENT". On the date of this Agreement, the Offering
Document does
not include any untrue statement of a material fact or omit
to state any
material fact necessary in order to make the statements
therein, in the
light of the circumstances under which they were made, not
misleading. The
preceding sentence does not apply to statements in or
1
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omissions from
the Offering Document based upon written information
furnished to the
Company by any Purchaser through Credit Suisse First
Boston LLC
("CSFB") specifically for use therein, it being understood and
agreed that the
only such information is that described as such in Section
7(b) hereof.
(b) The Company has been duly incorporated and is an existing
corporation in
good standing under the laws of the State of Delaware, with
corporate power
and authority to own its properties and conduct its
business as
described in the Offering Document; and the Company is duly
qualified to do
business as a foreign corporation in good standing in all
other
jurisdictions in which its ownership or lease of property or
the
conduct of its
business requires such qualification (which jurisdictions
are set forth
opposite its name on Schedule B hereto), except where the
failure to be so
qualified or to be in good standing would not individually
or in the
aggregate have a material adverse effect on the condition
(financial or
other), earnings, business affairs, business prospects,
properties or
results of operations of the Company and its subsidiaries
considered as
one enterprise, whether or not arising in the ordinary course
of business (a
"MATERIAL ADVERSE EFFECT").
(c) Each subsidiary of the Company has been duly incorporated and
is
an existing
corporation in good standing under the laws of the jurisdiction
of its
incorporation, with corporate power and authority to own its
properties and conduct
its business as described in the Offering Document;
and each
subsidiary of the Company is duly qualified to do business as a
foreign
corporation in good standing in all other jurisdictions in
which
its ownership or
lease of property or the conduct of its business requires
such
qualification (which jurisdictions are set forth opposite its name
on
Schedule B
hereto), except where the failure to be so qualified or to be
in
good standing
would not individually or in the aggregate have a Material
Adverse Effect;
all of the issued and outstanding capital stock of each
subsidiary of
the Company has been duly authorized and validly issued and
is fully paid
and nonassessable; and, except for liens and encumbrances (i)
under the credit
agreement dated as of April 9, 2003 by and among Woodcraft
Industries,
Inc., PrimeWood, Inc., Brentwood Acquisition Corp., the Lenders
(as defined
therein) and Antares Capital Corporation, as a Lender and as an
agent for the
Lenders and (ii) contemplated under the credit agreement
described under
the heading "The Senior Credit Facility" in the Offering
Document
(collectively, the "SENIOR CREDIT FACILITY"), the capital stock
of
each subsidiary
owned by the Company, directly or through subsidiaries, is
owned free from
liens, encumbrances and defects.
(d) The Indenture has been duly authorized by the Company and each
of
the Guarantors;
and when the Offered Securities are delivered and paid for
pursuant to this
Agreement on the Closing Date (as defined below), the
Indenture will
have been duly executed and delivered (assuming due
execution and
delivery by the Trustee) and will constitute a valid and
legally binding
obligation of the Company and the Guarantors, enforceable
in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent
transfer,
reorganization, moratorium and similar laws of general
applicability
relating to or affecting creditors' rights and to general
equity
principles.
(e) The Offered Securities have been duly authorized by the
Company;
when the Offered
Securities are delivered and paid for pursuant to this
Agreement on the
Closing Date (as defined below), such Offered Securities
(i) will have
been duly executed, authenticated, issued and delivered, (ii)
will conform in
all material respects to the description thereof contained
in the Offering
Document and be entitled to the benefits provided in the
Indenture and
(iii) will constitute valid and legally binding obligations
of the Company,
enforceable in accordance with their terms, subject to
bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of
general applicability relating to or affecting creditors'
rights and to
general equity principles.
(f) Except as disclosed in the Offering Document, there are no
contracts,
agreements or understandings between the Company or any
Guarantor and
any person that would give rise to a valid claim against the
Company or any
Guarantor or any Purchaser for a brokerage commission,
finder's fee or
other like payment.
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(g) No consent, approval, authorization, or order of, or filing
with,
any governmental
agency or body or any court is required for the
consummation of
the transactions contemplated by this Agreement and the
Registration
Rights Agreement in connection with the issuance and sale of
the Offered
Securities, the Exchange Securities (as defined in the
Registration
Rights Agreement) and the Private Exchange Securities (as
defined in the
Registration Rights Agreement) by the Company, or the
issuance of the
Guarantees by the Guarantors, except (i) for the order of
the Commission
declaring the Exchange Offer Registration Statement or the
Shelf
Registration Statement (each as defined in the Registration
Rights
Agreement)
effective and (ii) as may be required under foreign and state
securities or
"blue sky" laws.
(h) The execution, delivery and performance of the Indenture,
the
Guarantees, this
Agreement and the Registration Rights Agreement, and the
issuance and
sale of the Offered Securities, the Exchange Securities and
the Private
Exchange Securities and compliance with the terms and
provisions
thereof will not result in a breach or violation of any of the
terms and
provisions of, or constitute a default under, any statute,
rule,
regulation or
order of any governmental agency or body or any court,
domestic or
foreign, having jurisdiction over the Company or any subsidiary
of the Company
or any of their properties, or any agreement or instrument
to which the
Company or any such subsidiary is a party or by which the
Company or any
such subsidiary is bound or to which any of the properties
of the Company
or any such subsidiary is subject (except, in each of the
preceding cases,
for such breaches, violations or defaults as would not
individually or
in the aggregate have a Material Adverse Effect), or the
charter or
by-laws of the Company or any such subsidiary, and the Company
has full power
and authority to authorize, issue and sell the Offered
Securities as
contemplated by this Agreement, and the Exchange Securities
and Private
Exchange Securities as contemplated by the Registration Rights
Agreement, and
each Guarantor has full power and authority to issue the
Guarantees
endorsed thereon, in each case as contemplated by this
Agreement
and the
Registration Rights Agreement.
(i) On the Closing Date, the Exchange Securities and the
Private
Exchange
Securities will have been duly authorized by the Company; and
when
the Exchange
Securities and the Private Exchange Securities are issued,
executed and
authenticated in accordance with the terms of the Exchange
Offer and the
Indenture, the Exchange Securities and the Private Exchange
Securities will
be entitled to the benefits of the Indenture and will be
the valid and
legally binding obligations of the Company, enforceable in
accordance with
their terms, subject to bankruptcy, insolvency, fraudulent
transfer,
reorganization, moratorium and similar laws of general
applicability
relating to or affecting creditors' rights and to general
equity
principles.
(j) Each Guarantee to be endorsed on the Offered Securities by
each
Guarantor has
been duly authorized by such Guarantor; and when the
Guarantees are
delivered by the Guarantors, such Guarantees will have been
duly executed
and delivered by the Guarantors. When the Offered Securities
have been
issued, executed and authenticated in accordance with the
Indenture and
delivered to and paid for by the Purchasers in accordance
with the terms
of this Agreement, the Guarantees of the Guarantors will
conform in all
material respects to the descriptions thereof contained in
the Offering
Document and will constitute valid and legally binding
obligations of
the Guarantors, enforceable in accordance with their terms,
subject to
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and
similar laws of general applicability relating to or
affecting
creditors' rights and to general equity principles.
(k) Each Guarantee to be endorsed on the Exchange Securities
and
Private Exchange
Securities by each Guarantor has been duly authorized by
such Guarantor;
and, when issued, will have been duly executed and
delivered by
each such Guarantor and will conform to the description
thereof
contained in the Offering Document. When the Exchange
Securities
and Private
Exchange Securities have been issued, executed and
authenticated in
accordance with the terms of the Exchange Offer and the
Indenture, the
Guarantee of each Guarantor endorsed thereon will constitute
a valid and
legally binding obligation of such Guarantor, enforceable in
accordance with
its terms, subject to
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bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of
general applicability relating to or affecting creditors'
rights and to
general equity principles.
(l) This Agreement and the Registration Rights Agreement have
been
duly authorized,
executed and delivered by the Company and each of the
Guarantors, and
each is a valid and binding agreement of the Company and
each of the
Guarantors, enforceable against the Company and each Guarantor
in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent
transfer,
reorganization, moratorium and similar laws of general
applicability
relating to or affecting creditors' rights and to general
equity
principles, and except that any rights to indemnity or
contribution
thereunder may
be limited by Federal or state securities laws or public
policy
considerations. On the Closing Date, the Registration Rights
Agreement will
conform as to legal matters to the description thereof in
the Offering
Circular.
(m) Except as disclosed in the Offering Document, the Company and
its
subsidiaries
have good and marketable title to all real properties and all
other properties
and assets owned by them, in each case free from liens,
encumbrances and
defects (except for liens and encumbrances under the
Senior Credit
Facility) that would materially affect the value thereof or
materially
interfere with the use made or to be made thereof by them; and
except as
disclosed in the Offering Document, the Company and its
subsidiaries
hold any leased real or personal property under valid and
enforceable
leases with no exceptions that would materially interfere with
the use made or
to be made thereof by them.
(n) The Company and its subsidiaries possess adequate
certificates,
authorities or
permits issued by appropriate governmental agencies or
bodies necessary
to conduct the business now operated by them and have not
received any
notice of proceedings relating to the revocation or
modification of
any such certificate, authority or permit that, if
determined
adversely to the Company or any of its subsidiaries, would
individually or
in the aggregate have a Material Adverse Effect.
(o) Except as disclosed in the Offering Document, no labor
dispute
with the
employees of the Company or any subsidiary exists or, to the
knowledge of the
Company, is threatened that might have a Material Adverse
Effect.
(p) The Company and its subsidiaries own, possess or can acquire
on
reasonable
terms, adequate trademarks, trade names and other rights to
inventions,
know-how, patents, copyrights, confidential information and
other
intellectual property (collectively, "INTELLECTUAL PROPERTY
RIGHTS")
necessary to
conduct the business now operated by them, or presently
employed by
them, and have not received any notice of infringement of or
conflict with
asserted rights of others with respect to any intellectual
property rights
that, if determined adversely to the Company or any of its
subsidiaries,
would individually or in the aggregate have a Material
Adverse
Effect.
(q) Except as disclosed in the Offering Document, neither the
Company
nor any of its
subsidiaries is in violation of any statute, any rule,
regulation, decision
or order of any governmental agency or body or any
court, domestic
or foreign, relating to the use, disposal or release of
hazardous or
toxic substances or relating to the protection or restoration
of the
environment or human exposure to hazardous or toxic substances
(collectively,
"ENVIRONMENTAL LAWS"), owns or operates any real property
contaminated
with any substance that is subject to any environmental laws,
is liable for
any off-site disposal or contamination pursuant to any
environmental
laws, or is subject to any claim relating to any
environmental
laws, which violation, contamination, liability or claim
would
individually or in the aggregate have a Material Adverse Effect;
and,
to the Company's knowledge, there
is no pending investigation which might
lead to such a
claim.
(r) Except as disclosed in the Offering Document, there are no
pending
actions, suits
or proceedings against or affecting the Company, any of its
subsidiaries or
any of their respective
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properties that,
if determined adversely to the Company or any of its
subsidiaries,
would individually or in the aggregate have a Material
Adverse Effect,
or would materially and adversely affect the ability of the
Company or any
Guarantor to perform its obligations under the Indenture,
this Agreement
or the Registration Rights Agreement, or which are otherwise
material in the
context of the sale of the Offered Securities; and no such
actions, suits
or proceedings are, to the Company's knowledge, threatened
or
contemplated.
(s) The financial statements (including the notes thereto) included
in
the Offering
Document present fairly the financial position of the Company
and its
consolidated subsidiaries as of the dates shown and their
results
of operations
and cash flows for the periods shown, and such financial
statements have
been prepared in conformity with the generally accepted
accounting
principles in the United States applied on a consistent basis.
The pro forma
financial statements (including the notes thereto) and the
other pro forma
financial information included in the Offering Document (i)
except as stated
therein have been prepared in accordance with the
Commission's
rules and guidelines with respect to pro forma financial
statements and
(ii) have been properly computed on the bases described
therein; to the
Company's knowledge, the assumptions used in preparing the
pro forma
financial statements included in the Offering Document provide
a
reasonable basis
for presenting the significant effects directly
attributable to
the transactions or events described therein, the related
pro forma
adjustments give appropriate effect in all material respects to
those
assumptions, and the pro forma columns therein reflect the
proper
application in
all material respects of those adjustments to the
corresponding
historical financial statement amounts.
(t) Except as disclosed in the Offering Document, since the date
of
the latest
audited financial statements included in the Offering Document
there has been
no material adverse change, nor any development or event
involving a
prospective material adverse change, in the condition
(financial or
other), business, properties or results of operations of the
Company and its
subsidiaries taken as a whole, and, except as disclosed in
or contemplated
by the Offering Document, there has been no dividend or
distribution of
any kind declared, paid or made by the Company on any class
of its capital
stock.
(u) Neither the Company nor any Guarantor is an open-end
investment
company, unit
investment trust or face-amount certificate company that is
or is required
to be registered under Section 8 of the United States
Investment
Company Act of 1940 (the "INVESTMENT COMPANY ACT"); and neither
the Company nor
any Guarantor is or, after giving effect to the offering
and sale of the
Offered Securities and the application of the proceeds
thereof as
described in the Offering Document, will be an "investment
company" as
defined in the Investment Company Act.
(v) No securities of the same class (within the meaning of Rule
144A(d)(3) under
the Securities Act) as the Offered Securities are listed
on any national
securities exchange registered under Section 6 of the
United States
Securities Exchange Act of 1934 (the "EXCHANGE ACT") or
quoted in a U.S.
automated inter-dealer quotation system.
(w) Assuming the accuracy of the Purchasers' representations
and
warranties and
the Purchasers' compliance with the agreements in Section 4
hereof and
compliance with the limitations and restrictions contained
under
the heading
"Transfer Restrictions" in the Offering Document, the offer and
sale of the
Offered Securities by the Company to the several Purchasers in
the manner
contemplated by this Agreement will be exempt from the
registration
requirements of the Securities Act by reason of Section 4(2)
thereof and
Regulation S thereunder ("REGULATION S"); and it is not
necessary to
qualify an indenture in respect of the Offered Securities
under the United
States Trust Indenture Act of 1939, as amended (the "TRUST
INDENTURE
ACT").
(x) Neither the Company, nor any of its affiliates, nor any
person
acting on its or
their behalf (i) has, within the six-month period prior to
the date hereof,
offered or sold in the United States or to
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any U.S. person
(as such terms are defined in Regulation S under the
Securities Act)
the Offered Securities or the Guarantees or any security of
the same class
or series as the Offered Securities or the Guarantees or
(ii) has offered
or will offer or sell the Offered Securities or the
Guarantees (A)
in the United States by means of any form of general
solicitation or
general advertising within the meaning of Rule 502(c) under
the Securities
Act or (B) with respect to any such securities sold in
reliance on Rule
903 of Regulation S, by means of any directed selling
efforts within
the meaning of Rule 902(c) of Regulation S. The Company and
its affiliates
and any person acting on its or their behalf have complied
and will comply
with the offering restrictions requirement of Regulation S.
The Company has
not entered and will not enter into any contractual
arrangement with
respect to the distribution of the Offered Securities or
the Guarantees
except for this Agreement.
(y) The entities listed on Schedule B hereto are the only
subsidiaries,
direct or indirect, of the Company.
(z) Neither the Company nor any of its subsidiaries is (i) in
violation of its
respective charter or by-laws or (ii) in default in the
performance of
any obligation, agreement, covenant or condition contained
in any
indenture, loan agreement, mortgage, lease or other agreement
or
instrument that
is material to the Company and its subsidiaries, taken as a
whole, to which
the Company or any of its subsidiaries is a party or by
which the
Company or any of its subsidiaries or their respective property
is bound, except
for such default that would not individually or in the
aggregate have a
Material Adverse Effect.
(aa) Assuming the accuracy of the Purchasers' representations
and
warranties and
the Purchasers' compliance with the agreements in Section 4
hereof and
compliance with the limitations and restrictions contained
under
the heading
"Transfer Restrictions" in the Offering Document, the Offered
Securities
offered and sold in reliance on Regulation S have been and will
be offered and
sold only in offshore transactions. The sale of the Offered
Securities
pursuant to Regulation S is not part of a plan or scheme to
evade the
registration provisions of the Securities Act.
(bb) Except as disclosed in the Offering Document, there are no
contracts,
agreements or understandings between the Company or any
Guarantor and
any person granting such person the right to require the
Company or such
Guarantor to file a registration statement under the
Securities Act
with respect to any securities of the Company or such
Guarantor or to
require the Company or such Guarantor to include such
securities in
any registration statement required to be filed pursuant to
the Registration
Rights Agreement.
(cc) Assuming the accuracy of the Purchasers' representations
and
warranties and
the Purchasers' compliance with the agreements in Section 4
hereof and
compliance with the limitations and restrictions contained
under
the heading
"Transfer Restrictions" in the Offering Document, it is not
necessary in
connection with the issuance and sale of the Offered
Securities or
the initial resale of the Offered Securities by the
Purchasers in
the manner contemplated by this Agreement and the Offering
Document to
register any of the Offered Securities or the Guarantees under
the Securities
Act or to qualify the Indenture under the Trust Indenture
Act.
(dd) No "nationally recognized statistical rating organization"
as
such term is
defined for purposes of Rule 436(g)(2) under the Securities
Act (i) has
imposed (or has informed the Company or any Guarantor that it
is considering
imposing) any condition (financial or otherwise) on the
Company's or any
Guarantor's retaining any rating assigned to the Company
or any
Guarantor, any securities of the Company or any Guarantor or
(ii)
has indicated to
the Company or any Guarantor that it is considering (a)
the downgrading,
suspension, or withdrawal of, or any review for a possible
change that does
not indicate the direction of the possible change in, any
rating so
assigned or (b) any change in the outlook for any rating of the
Company, any
Guarantor or any securities of the Company or any Guarantor.
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3.
PURCHASE, SALE AND DELIVERY OF OFFERED SECURITIES. On the basis of
the
representations, warranties and agreements
herein contained, but subject to the
terms and conditions herein set forth, the
Company agrees to sell to the
Purchasers, and the Purchasers agree,
severally and not jointly, to purchase
from the Company, at a purchase price of
97.25% of the principal amount thereof
plus accrued interest from February 18,
2004 to the Closing Date (as hereinafter
defined), the respective principal amounts
of Offered Securities set forth
opposite the names of the several
Purchasers in Schedule A hereto.
The Company will
deliver against payment of the purchase price the Offered
Securities to be offered and sold by the
Purchasers in reliance on Regulation S
(the "REGULATION S SECURITIES") in the form
of one or more temporary global
Securities in registered form without
interest coupons (the " REGULATION S
GLOBAL SECURITIES") which will be deposited
with the Trustee as custodian for
The Depository Trust Company ("DTC") and
registered in the name of Cede & Co.,
as nominee for DTC. The Company will
deliver against payment of the purchase
price the Offered Securities to be
purchased by each Purchaser hereunder and to
be offered and sold by each Purchaser in
reliance on Rule 144A under the
Securities Act (the "144A SECURITIES") in
the form of one or more permanent
global securities in registered form
without interest coupons (the "RESTRICTED
GLOBAL SECURITIES") deposited with the
Trustee as custodian for DTC and
registered in the name of Cede & Co.,
as nominee for DTC. The Regulation S
Global Securities and the Restricted Global
Securities shall be assigned
separate CUSIP numbers. The Restricted
Global Securities and the Regulation S
Global Securities shall include the
applicable legends regarding restrictions on
transfer set forth under "Transfer
Restrictions" in the Offering Document.
Interests in any permanent global
securities will be held only in book-entry
form through DTC except in the limited
circumstances described in the Offering
Document.
Payment for the
Regulation S Securities and the 144A Securities shall be
made by the Purchasers in Federal (same
day) funds by wire transfer to an
account specified by the Company at the
office of Cravath, Swaine & Moore LLP at
10:00 A.M. (New York time), on February 18,
2004 or at such other time not later
than seven full business days thereafter as
CSFB and the Company determine, such
time being herein referred to as the
"Closing Date", against delivery to the
Trustee as custodian for DTC of (i) the
Regulation S Global Securities
representing all of the Regulation S
Securities and (ii) the Restricted Global
Securities representing all of the 144A
Securities. The Regulation S Global
Securities and the Restricted Global
Securities will be made available for
checking at the above office of Cravath,
Swaine & Moore LLP at least 24 hours
prior to the Closing Date.
4.
REPRESENTATIONS BY PURCHASERS; RESALE BY PURCHASERS.
(a) Each Purchaser severally represents and warrants to the
Company
that it is an
"accredited investor" within the meaning of Regulation D
under the
Securities Act.
(b) Each Purchaser severally acknowledges that the Offered
Securities
have not been
registered under the Securities Act and may not be offered or
sold within the
United States or to, or for the account or benefit of, U.S.
persons except
in accordance with Regulation S or pursuant to an exemption
from the
registration requirements of the Securities Act. Each Purchaser
severally
represents and agrees that it has offered and sold the Offered
Securities and
will offer and sell the Offered Securities (i) as part of
its distribution
at any time and (ii) otherwise until 40 days after the
later of the
commencement of the offering and the Closing Date, only in
accordance with
Rule 144A ("RULE 144A") or Rule 903 under the Securities
Act.
Accordingly, neither such Purchaser nor its affiliates, nor any
persons acting
on its or their behalf, have engaged or will engage in any
directed selling
efforts with respect to the Offered Securities, and such
Purchaser, its affiliates and all
persons acting on its or their behalf
have complied
and will comply with the offering restrictions requirement of
Regulation S.
Each Purchaser severally agrees that, at or prior to
confirmation of
sale of the Offered Securities, other than a sale pursuant
to Rule 144A,
such Purchaser will have sent to each distributor, dealer or
person receiving
a selling concession, fee or other remuneration that
purchases
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the Offered
Securities from it during the restricted period a confirmation
or notice to
substantially the following effect:
"The Securities covered hereby have not been registered
under the U.S. Securities Act of 1933 (the "Securities Act")
and may not be offered or sold withi