CLIENT ALLEGES THAT THE FA DID NOT DISCLOSE COMMISSIONS ON HER INVESTMENTS AT ANY GIVEN TIME. CLIENT DOES NOT MAKE A SPECIFIC CLAIM; HOWEVER, COMMISSIONS TOTAL APPROXIMATELY $6,700 FILING REQUIRED.

$5,000.00

$2,225.00

ACCORDING TO OUR RECORDS, THE CLIENT'S ACCOUNT WAS ESTABLISHED IN AUGUST 2010. FOR EACH TRANSACTION COMPLETED IN THE ACCOUNT (BUY/SELL), THE CLIENT HAS RECEIVED A TRADE CONFIRMATION. FOR STOCK TRADES, THE COMMISSION IS SPECIFICALLY NOTED ON THE TRADE CONFIRMATION. HOWEVER FOR BOND TRADES, THE COMMISSION IS INCLUDED IN THE TOTAL PRICE AND NOT LISTED AS A SEPERATE LINE ITEM ON THE TRADE CONFIRMATION. AS A RESULT OF OUR REVIEW, WE BELIEVE IT IS POSSIBLE THE COMMISSIONS ASSOCIATED WITH THE BOND TRADES MAY NOT HAVE BEEN FULLY DISCLOSED. AS A RESULT, WE ARE EXTENDING AN OFFER TO THE CLIENT IN THE AMOUNT OF $2,225 WHICH REPRESENTS THE COMMISSIONS ASSOCIATED WITH THE BOND TRADES. CLIENT HAS THIRTY DAYS IN WHICH TO RESPOND TO OUR OFFER. CLIENT HAS ACCEPTED OUR OFFER. ARRANGEMENTS HAVE BEEN MADE TO CREDIT THE ACCOUNT.

CLIENTS ALLEGING THAT THEY WERE UNKNOWINGLY CHARGED OVER $7,000 IN FEES AND COMMISSIONS IN THE PAST TWELVE MONTHS. CLIENT STATES THEY TRUSTED THE FA WITH THEIR LIFE'S SAVINGS AND THEY ARE VERY DISAPPOINTED. FILING REQUIRED.

$5,000.00

$1,220.00

IN THE CLIENTS' CORRESPONDENCE, THEY HAVE INDICATED THEY PAID OVER $7,000 IN COMMISSION CHARGES DURING THE LAST TWELVE MONTHS. THE CLIENTS' LETTER WAS DATED AUGUST 22, 2011 AND WAS RECEIVED ON AUGUST 26, 2011. BASED ON THE INFORMAITON PROVIDED, WE HAVE REVIEWED ACTIVITY IN THE ACCOUNTS FROM AUGUST 2010 THROUGH AUGUST 2011. COMMISSIONS FOR STOCK TRANSACTIONS WERE DETAILED ON THE CONFIRMATIONS THE CLIENTS RECEIVED AT THE TIME THE TRADES WERE PLACED. A LINCOLN NATIONAL CHOICEPLUS ANNUITY WAS PURCHASED IN THE JOINT REGISTRATION ACCOUNT ON JUNE 10, 2011. ON MAY 31, 2011, THE CLIENTS' SIGNED A TRANSFER OF ASSETS: ANNUITY TO VARIABLE ANNUITY ACKNOWLEDGEMENT LETTER IN WHICH THEY ACKNOWLEDGED THE FINANCIAL ADVISOR HAD EXPLAINED THE TOTAL COST OF THE TRANSACTION TO THE CLIENTS' SATISFACTION. IN ADDITION, ON JUNE 15, 2011, THE CLIENTS SIGNED AN ANNUITY DELIVERY RECEIPT WHICH MEANS THEY RECEIVED THE ANNUITY CONTRACT (WHICH DETAILS THE SALES CHARGE). INFORMATION ABOUT THE SALES CHARGE WOULD HAVE ALSO BEEN INCLUDED IN THE PROSPECTUS. AS A RESULT OF OUR REVIEW, WE BELIEVE IT IS POSSIBLE THE SPECIFIC COMMISSIONS ASSOCIATED WITH THE BOND TRADES MAY NOT HAVE BEEN FULLY DISCLOSED. WE ARE EXTENDING SETTLEMENT OFFERS TO YOU FOR THE BOND COMMISSIONS PAID IN EACH OF THE CLIENTS' ACCOUNTS FOR A TOTAL OF $1,220. CLIENTS HAVE THIRTY DAYS IN WHICH TO RESPOND TO OUR OFFER. CLIENTS' HAVE ACCEPTED OUR OFFER AND ACCOUNTS HAVE BEEN CREDITED.

CLIENT CLAIMS THAT THE FA DID NOT DISCLOSE THE COMMISSION CHARGES ON THE 6/21/11 TRANSACTIONS. CLIENT IS WANTING THE COMMISSIONS REIMBURSED. FILING REQUIRED LOSSES EXCEED $5,000

$9,000.00

$4,000.00

WE HAVE REVIEWED THE ACCOUNT AND IT IS OUR UNDERSTANDING BASED UPON THE CLIENT'S AUGUST 26, 2011 LETTER THAT HE WAS AWARE OF THE ACCOUNT ACTIVITY IN THE IRA ACCOUNT. IN ADDITION, AT THE TIME THE TRADES WERE PLACED THE CLIENT WOULD HAVE RECEIVED TRADE CONFIRMATIONS DISCLOSING THE COMMISSION CHARGES. WHILE WE WERE NOT PRIVY TO THE CONVERSATION BETWEEN THE CLIENT AND FORMER FINANCIAL ADVISOR, EDWARD JONES HAS AGREED TO REIMBURSE THE CLIENT $4,000 IN COMMISSION CHARGES. WE BELIEVE THIS TO BE A FAIR AND EQUITABLE SETTLEMENT AS THIS MATTER COULD HAVE BEEN BROUGHT TO THE FIRM'S ATTENTION IN A TIMELY MANNER.