CLIENT PURCHASED A VARIABLE LIFE INSURANCE POLICY IN 2005 AND ALLEGES THAT THE RR FAILED TO DISCLOSE THE SURRENDER FEE.

THE REPRESENTATIVE DENIES ALL THE CLIENT ALLEGATIONS IN LIGHT OF THE SIGNED CLIENT DOCUMENTS AND DISCLOSURES.

CLIENTS ALLEGE MISREPRESENTATION AND POOR SERVICE IN THEIR FEE-IN-LIEU OF COMMISSION BROKERAGE ACCOUNT FROM APRIL 2004 - FEB. 2005; REQUEST ALL ACCOUNT FEES BE RETURNED TO THEM. CLIENTS DO NOT SPECIFY A DAMAGE AMOUNT, BUT THE FIRM CANNOT MAKE A GOOD FAITH ESTIMATE THAT ALLEGED DAMAGES WOULD NOT EXCEED $5000.

CLIENT ALLEGES EXTREMELY POOR MANAGEMENT.

$20,000.00

FROM 1/1998 TO 12/2000, CLAIMANT ALLEGES THAT THE FA PURCHASED UNSUITABLE INVESTMENTS ON MARGIN, ALLEGEDLY COMMITTED COMMON LAW AND CONSTRUCTIVE FRAUD, AS WELL AS BREACH OF CONTRACT

$500,000.00

$16,500.00

CLIENT MADE UNSOLICITED PURCHASES OF AMAZON NATURAL TREASURES (AZNT) BETWEEN APRIL 26, 1999 THROUGH MARCH 6, 2000 AND IS SEEKING REIMBURSEMENT OF LOSSES CONTENDING THAT SUCH LOSSES WOULD HAVE BEEN AVOIDED IF THE FIRM HAD CONDUCTED SUFFICIENT DUE DILIGENCE ON AZNT. MR. THOMPSON'S RESPONSE WAS THAT ALL PURCHASES WERE UNSOLICITED. CLIENT SUBSEQUENTLY WITHDREW COMPLAINT.

$42,401.12

ALLEGATION- CLIENT ALLEGED I SOLD SECURITIES WITHOUT HIS PERMISSION. CUSTOMER NEVER STATED DAMAGES.

THE NATURE OF THIS INVESTMENT INSTRUMENT (COVERED CALL) DICTATED THAT THE STOCK COULD BE CALLED AWAY ANY TIME, THERE-BY NEGATING THE CLAIM OF UNAUTHORIZED SALE. CLIENT & ATTORNEY WERE AWARE OF THIS POSSIBILITY AND AUTHORIZED SUCH.

CLIENT CLAIMED UNAUTHORIZED TRADING-ALLEGED LOSSES OF $215,000.

$215,000.00

$33,000.00

CUSTOMER WITHDREW COMPLAINT AGAINST ME REGARDING THIS MATTER.CLIENT FALSELY ACCUSED ME OF WRONGFUL TRADING IN HIS ACCOUNT. ACCUSATIONS WERE LATER WITHDRAWN. MARK THOMPSON WAS WITHDRAWN FROM THE COMPLAINT PRIOR TO SETTLEMENT.

TENNESSEE

Consent

Cease and Desist/Injunction

ALL OF THE EMPLOYEES AT FIRST FINANCIAL SECURITIES, INC. WERE NAMED IN THIS FILING.