MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Voluntary Resignation

ALLEGATIONS THAT WITH RESPECT TO CERTAIN OPTIONS ORDERS ENTERED BY THE REPRESENTATIVE, THE REPRESENTATIVE DID NOT KEEP MEMORANDA THAT INCLUDED ALL REQUIRED INFORMATION. ALLEGATIONS THAT, FURTHERMORE, MEMORANDA WERE NOT MAINTAINED FOR UNEXECUTED TRANSACTIONS. ALLEGATIONS THAT DURING THE COURSE OF SOLICITING NEW OPTIONS TRANSACTIONS FROM CLIENTS, THE REPRESENTATIVE UTILIZED BOTH ELECTRONIC MAIL AND SPREADSHEETS TO SEND MARKETING MATERIALS THAT WERE NOT APPROVED BY MANAGEMENT.

FA STATES "IN SUPPORT OF OUR BUSINESS, MERRILL LYNCH MANAGEMENT NOTIFIED OUR TEAM OF A PROCEDURAL ERROR IN OUR BUSINESS PRACTICE. SPECIFICALLY, WE WERE INFORMED THAT IN CERTAIN INSTANCES OUR TEAM HAD NOT COMPLETED MANUAL ORDER TICKETS AFTER CALLING IN LARGE ORDERS TO THE TRADING DESK. WITH THE HELP AND ASSISTANCE OF MANAGEMENT, OUR TEAM PROMPTLY CORRECTED THE ISSUE AND WAS ALLOWED TO CONTINUE WITH OUR INVESTMENT STRATEGIES. WE WERE LATER INFORMED THAT THE MATTER HAD BEEN CONCLUDED AND THAT MANAGEMENT WOULD CONTINUE TO HELP AND SUPPORT THE FUTURE GROWTH OF OUR BUSINESS. OUR SUBSEQUENT AND COMPLETELY VOLUNTARY RESIGNATION FROM MERRILL LYNCH WAS BASED ON THE LEADERSHIP AND RESOURCES AVAILABLE TO OUR TEAM AND OUR CLIENTS AT MORGAN STANLEY PRIVATE WEALTH MANAGEMENT"