LINCOLN FINANCIAL ADVISORS/LINCOLN LIFE

Permitted to Resign

BUSINESS PRACTICES NOT CONSISTENT WITH COMPANY POLICY

IN FALL OF 1997, COMPANY HAD AN AUDIT OF OUR BRANCH OFFICE IN REDDING. ABOUT 2 WEEKS LATER I WAS INTERVIEWED AT OFFICE IN SAN RAMON BY MANAGEMENT. ABOUT A MONTH LATER, I WAS CALLED AND ADVISED THERE WAS A MANDATORY MEETING IN REDDING OFFICE. AT THE MANDATORY MEETING IN REDDING ON 11/10/1997 I WAS GIVEN A PREPARED LETTER OF RESIGNATION. I WAS ADVISED BY LINCOLN MANAGEMENT TO SIGN THE FORM OR I WOULD BE SUBJECT TO FURTHER INVESTIGATION. I THOUGHT ABOUT MY SITUATION AND DECIDED TO SIGN THE LETTER OF RESIGNATION EVEN THOUGH I DID NOT UNDERSTAND THE SITUATION. HOWEVER, I NO LONGER WANTED TO WORK WITH THIS ORGANIZATION CONSIDERING THE CURRENT SITUATION. THE FORM U-5 FILED BY LINCOLN AT THAT TIME INDICATED I WAS NOT INVOLVED IN ANY INVESTIGATIONS OR INTERNAL REVIEWS. ON 3-6-98, LINCOLN FILED AN AMENDED U-5 STATING I WAS NOW UNDER INTERNAL REVIEW/INVESTIGATION. THE DRP-5 ALLEGES USE OF LINCOLN FORMS AFTER TERMINATION, WORKING WITH LINCOLN CUSTOMERS AFTER TERMINATION, AND THAT I HAD SIGNED CUSTOMER FORMS. THESE ALLEGATIONS WERE MADE AFTER MANY CUSTOMERS MOVED THEIR ACCOUNTS TO MY NEW BROKER/DEALER, SUNAMERICA SECURITIES. TO THIS DATE, NOR PRIOR TO 11/10/1997, THERE WERE NO CUSTOMER COMPLAINTS ABOUT MY ACTIVITIES, BUSINESS PRACTICES, SERVICES.