I RECEIVED FROM THE NASD, A NOTICE OF ARBITRATION ACTION BEING TAKEN AGAINST ME BY CUSTOMERS IN AMOUNT OF APPROX. $229,000 INCLUDING PUNITIVE DAMAGES WHILE EMPLOYED BY R. ROWLAND & COMPANY. THEY ALLEGED PRIMARILY, UNSUITABLE INVESTMENT ADVICE GIVEN BY ME 5 YEARS PRIOR TO THE DATE.

$229,000.00

$11,250.00

ON 12/31/90, RAY FAUPEL DELIVERED A CHECK PAYABLE TO CUSTOMER IN THE AMOUNT OF $11,250.00. CUSTOMER RELEASED AND FOREVER DISCHARGED RAYMOND M. FAUPEL, ROWLAND, SIMON & CO, LP, AND R. ROWLAND & CO, AND EACH OF THEIR RESPECTIVE OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS, AND ASSIGNS, FROM ANY AND ALL MANNER OF ACTIONS, CAUSES OF ACTIONS, SUITS, DEBTS, ACCOUNTS, UNDERSTANDINGS, CONTRACTS, AGREEMENTS, ARRANGEMENTS, CONTROVERSIES, JUDGEMENTS, DAMAGES, CLAIMS, LIABILITIES, AND DEMANDS OF ANY ACCOUNTS MAINTAINED BY THE TRUST OR THE TRANSACTIONS AND OCCURENCES SET FORTH IN THE ACTION FROM THE BEGINNING OF THE WORLD TO THE DATE OF THESE PRESENT. NOTICE OF ARBITRATION RECEIVED 5/88 OF ACTION BEING TAKEN BY CUSTOMERS IN THE AMOUNT OF $229,000 INCLUDING PUNITIVE DAMAGES WHILE EMPLOYED BY R. ROWLAND & CO. THEY ALLEGED, PRIMARILY, UNSUITABLE INVESTMENT ADVICE GIVEN FIVE YEARS PRIOR TO THIS DATE. AL PARTIES AGREED TO ARBITRATION. ORIGINAL 10/3/89 DATE POSTPONED BY CLAIMANTS' ATTORNEY. CLAIM WAS SETTLED OUT OF ARBITRATION ON MAY 10, 1990, JUST PRIOR TO THE RESCHEDULED ARBITRATION DATE. THE SETTLEMENT AMOUNT OF $11,250.00 WAS LESS THAN THE APPROXIMATE COST OF RAY'S LEGAL FEES FOR ARBITRATION AND CONSIDERABLY LESS THAN THE AMOUNT SOUGHT BY CLAIMANTS. THEIR CASE WAS SO WEAK THAT THEY AGREED TO A 95% REDUCTION IN THE AMOUNT OF THEIR ORIGINAL CLAIM.