THE ALLEGATIONS WERE MADE AGAINST HOMANS, MCGRAW, TRULL, VALEO & CO., INC., SHAWMUT BANK, N.A., AND FIVE INDIVIDUAL RESPONDENTS, OF WHICH I WAS ONE. THE CLAIMS CONCERNED PURPORTED REPAYMENT AGREEMENTS AND CERTIFICATES OF PARTICIPATION IN A CERTAIN PURPORTED REPAYMENT AGREEMENT ORIGINATED BY MUNICIPAL INVESTOR SERVICE, INC. ALL PURPORTING TO OBLIGATE THE CITY OF ROOSEVELT CITY, AL. WHICH SINCE HAS BEEN ANNEXED TO THE CITY OF BIRMINGHAM, AL.

THIS CASE WAS CONSOLIDATED WITH ANOTHER (CITY OF BIRMINGHAM V. MUNICIPAL INVESTOR SERVICE, INC. ET. AL. ) FOR THE PURPOSE OF SETTLEMENT AND DISMISSAL. PURSUANT TO THE STIPULATION OF SETTLEMENT, THE TWO PROCEEDINGS WERE DISMISSED WITH PREJUDICE WITH NO FINDING OF PERSONAL LIABILITY ON MY PART. Not Provided

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Consent

Monetary/Fine

$10,000.00

Disgorgement/Restitution

Censure

PRIOR TO TII OFFERING, THE REGISTERED PRINCIPALS DID NOT EXPECT TII's COMMON TO TRADE AT PREMIUM. THE PRELIMINARY PROSPECTUS STATED THAT THE DEBENTURES AND COMMON STOCK COULD NOT BE SEPARATED AND THE DEBENTURES COULD NOT BE CONVERTED UNLESS THE MANAGING UNDERWRITER DECIDED OTHERWISE AND IT HAD EXPRESSED NO INTENTION TO DO SO. TII's COMMON SHARES HAD BEEN PUBLICLY TRADED SINCE 1981. ON THE FIRST DAY OF TRADING, DEALERS WERE REPORTING THE MARKET "ILLLIQUID" AND A "WORK-OUT". THIS TRADING PATTERN WAS CONSISTENT WITH THE REGISTERED PRINCIPALS' UNDERSTANDING THAT THE UNITS WERE NOT SEPARABLE OR CONVERTIBLE.