CUSTOMER ALLEGES MISREPRESENTATIONS, UNSUITABILITY AND OVER-CONCENTRATION REGARDING LIMITED PARTNERSHIP INVESTMENTS TOTALLING $50,000 FROM 1/10/89 - 8/30/89 INCLUDING: 1/10/89 PEGASUS $10,000; 1/23/89 GEODYNE 2B $3,000; 3/13/89 GEODYNE 2B $27,000 AND 8/30/89 PEGASUS II $10,000.

$50,000.00

$33,000.00

PAINEWEBBER AGREED TO PAY CLIENT $33,000 IN EXCHANGE FOR A RELEASE OF ALL CLAIMS WITHOUT ADMITTING LIABILITY AS TO THE ALLEGATIONS. WE BELIEVE CLIENT WAS SOLICITED BY GOODMAN & NEKVASIL TO ASSERT CLAIM, THAT THIS FIRM HAS OBTAINED MANY OF OUR LP LISTS AND SOLICITED PW CLIENTS AROUND THE COUNTRY AND THAT NEITHER PW NOR THE BROKER BELIEVE THAT ANY MISREPRESENTATIONS WERE MADE TO THE CLIENT.

CUSTOMER ALLEGE MISREPRESENTATIONS, UNSUITABILITY AND OVER-CONCENTRATION REGARDING LIMITED PARTNERSHIP INVESTMENTS AND MUTUAL FUND INVESTMENTS TOTALLING $129,992 INCLUDING: GEODYNE IE 10/10/89 $5,000;GEODYNE 1F 9/15/86 $10,000;GEODYNE 2E 9/28/88 $10,000;GEODYNE 2B 1/21/89 $35,000; PEGASUS II 4/6/90 $20,000 AND 3/20/87 PW OPTION FUND $49,992.

$129,992.00

$40,000.00

PAINEWEBBER AGREED TO PAY CLIENT $40,000 IN EXCHANGE FOR A RELEASE OF ALL CLAIMS WITHOUT ADMITTING LIABILITY AS TO THE ALLEGATIONS. WE BELIEVE CLIENT WAS SOLICITED BY GOODMAN & NEKVASIL TO ASSERT CLAIM, THAT THIS FIRM OBTAINED MANY OF OUR LP LISTS AND SOLICITED PW CLIENTS AROUND THE COUNTRY AND THAT NEITHER PW NOR THE BROKER BELIVED THAT ANY MISREPRESENTATIONS WERE MADE TO THE CLIENT. FURTHER, THESE PURCHASES WERE NOT ALL MADE BY OR THROUGH THIS BROKER. ALL INVESTMENTS WRE SUITABLE BASED UPON INVESTMENT OBJECTIVES AND FINANCIAL SITUATION AS CONVEYED TO BROKER AT THE RELEVANT TIME.