THE CLIENT'S ATTORNEY ALLEGED UNSUITABLE INVESTMENTS - 09/2005-02/2008.

$20,000.00

$9,900.00

THE CUSTOMER ALLEGED THAT HER ASSET ALLOCATION OF EQUITY AND FIXED INCOME INVESTMENTS WERE UNSUITABLE.

$35,637.00

$8,700.00

TO AVOID THE COSTS AND UNCERTAINTIES OF LITIGATION, MERRILL LYNCH MADE A BUSINESS DECISION TO SETTLE THIS MATTER FOR $8,700.00.

THE ABOVE CLIENT(S) SUBMITTED CLAIM FORM(S) TO THE CLAIMS RESOLUTION PROCCESS RELATING TO LIMITED PARTNERSHIP PURCHASE(S)DURING THE PERIOD 6/87 - 3/89. THE ABOVE MENTIONED REGISTERED REP. WAS THE BROKER OF RECORD AT THE TIME OF THE PURCHASE (S) NO DAMAGES WERE ALLEGED BUT THE AMOUNT(S) ACTUAL LOSS IA APPROXIMATELY $58,740.

$58,740.00

$36,283.00

SETTLEMENT(S)WITH THE ABOVE CLIENT(S)HAVE BEEN REACHED IN THE CLAIMS RESOLUTIONH PROCESS. THE DOLLAR AMOUNT(S)OF THE SETTLEMENT(S)ARE APPROX. $36,283.00. THIS MATTER RESULTED FROM THE UNPRECEDENTED, UNSOLICITED MAILING OF CLAIM FORMS BY PSI TO OVER 340,000 INVESTORS WHO PURCHASED LIMITED PARTNERSHIPS THROUGH PSI FROM JAN 1, 1989-JAN 1, 1991. THE ABOVE REFERENCED CLIENT(S)SUBMITTED CLAIM FORMS IN RESPONSE TO THIS MAILING. THE CLAIM FORMS WERE EVALUATED BY PSI IN ACCORDANCE WITH THE STANDARDS ESTABLISHED UNDER THE SETTLEMENT BETWEEN PSI, THE SEC, NASD AND THE STATE SECURITIES ADMINISTRATORS. THE REPORTED SETTLEMENT AROSE OUT OF THIS UNIQUE PROCESS.