____________________________________________________________________________________ National Association of Securities Dealers 9509 Key West Avenue Rockville, MD 20850 (800) 289-9999 October 12, 2005 NASD BROKERCHECK RESPONSE TO REQUEST FOR INFORMATION The Board of Governors of the National Association of Securities Dealers, Inc. (NASD) has adopted a public disclosure policy which permits certain types of disciplinary information on NASD member firms and their associated persons to be available to the general public. Section 15A(i) of the Securities Exchange Act of 1934, as amended, requires registered securities associations to respond to inquiries regarding disciplinary actions involving its members and their associated persons. NASD believes that the general public should have access to information which will help them in their determination whether to conduct or continue to conduct business with an NASD member or any of the member's associated persons. In that regard, enclosed please find the information that you have requested. A list of the terms and conditions of NASD BrokerCheck is as follows: NASD BrokerCheck Terms and Conditions 1. NASD collects, compiles, organizes, indexes, digitally converts and maintains regulatory information from registered persons, member firms, government agencies and other sources and maintains information in the proprietary Central Registration Depository ("CRD(r)") database and system. NASD releases such information through NASD BrokerCheck, which provides information from CRD system to the investing public. Your access to NASD BrokerCheck information provided through NASD's CRD database and system does not transfer any rights in CRD, NASD BrokerCheck or related technologies to you. 2. Your use of NASD BrokerCheck information is conditioned upon your acceptance, without modification, of all terms and conditions of this Agreement. Any information accessed, requested or provided through NASD BrokerCheck must be accessed, requested and used in accordance with the terms and conditions specified in this Agreement. NASD reserves any rights not expressly granted under these terms and conditions. Additionally, NASD reserves the right, at its sole discretion, to modify the terms and conditions for use of NASD BrokerCheck information at any time by changing this Agreement, and any changes are effective immediately. Such changes will be posted on the NASD BrokerCheck web site. 3. CRD and NASD BrokerCheck are proprietary databases and employ proprietary software, but NASD makes no exclusive proprietary claim to the information in the NASD BrokerCheck system that is not created by NASD. You are neither restricted nor prohibited by NASD from obtaining a copy of any original filing or information from a non-NASD source. 4. 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Provision of information by NASD pursuant to NASD BrokerCheck does not constitute a waiver of any of NASD's rights, privileges, or immunities with respect to the furnishing of disciplinary or registration information. 8. NASD does not charge for this service, which is offered pursuant to NASD's responsibilities as a self-regulatory organization, and, in particular, pursuant to Section 15A(i) of the Securities Exchange Act of 1934. In the provision of this service, NASD makes no warranties of any kind, and disclaims liability to any person for any actions taken or omitted in good faith with respect to this NASD BrokerCheck. NASD is not responsible for and cannot verify information from sources other than NASD, and does not warrant or guarantee the accuracy or completeness of the information requested. 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In certain limited circumstances, disclosure information may not be available through NASD BrokerCheck within the usual timeframe, but will be made available as soon as practicable. 10. Consistent with policies and procedures approved by the Securities and Exchange Commission (SEC), NASD will disclose information on individuals and brokerage firms, through NASD BrokerCheck, for two years after the termination of the individual's or brokerage firm's NASD registration. Disclosure information reported to NASD after an individual or brokerage firm has terminated may not have been reviewed by the brokerage firm or individual; in addition, brokerage firms and individuals who are no longer registered are not required to independently report such information. 11. NASD BrokerCheck includes only information provided to CRD. In substantially all cases, the information provided through NASD BrokerCheck represents the verbatim record as it was reported to NASD. However, in certain limited circumstances, NASD combined information about a single event that was reported by different sources (e.g., a record reporting information on an event that was submitted by a brokerage firm may contain information reported on the same event that was submitted by a regulator). This condition occurred when the data in the Legacy CRD system was converted (i.e., reformatted and transferred) to Web CRD, the Internet-based Central Registration Depository. This condition affects a small percentage of records reported to NASD prior to August 1999. These converted records contain information that was reported to NASD in accordance with appropriate reporting protocols applicable to the source filers (e.g., brokerage firms and regulators); however, because of the combination of information from different reporting sources, a record disclosed through NASD BrokerCheck may not reflect the actual filing submitted to NASD. 12. The "Individual Broker comments," "Brokerage Firm comments" and "Regulator comments" appear verbatim as they were provided to CRD via Forms U-4, U-5, and U-6. These comments were not written by NASD and have not been edited by NASD in any way. NASD reserves the right to redact customer names, confidential customer information, or offensive or potentially defamatory language from an NASD BrokerCheck Report consistent with policies and procedures approved by the SEC. TC 02.1 General Information About this Report This report has been generated because you have requested information about an NASD Member Firm through NASD BrokerCheck. The information contained within this report has been provided by NASD brokerage firm and securities regulators as part of the securities industry's registration and licensing process. An NASD BrokerCheck report for a Brokerage Firm consists of: 1) a Report Summary; 2) General Administrative Information, which includes the Types of Business the Brokerage Firm is engaged in, the Brokerage Firm's Legal Status, and the Brokerage Firm's Approved Registrations. The report also includes the Brokerage Firm's Disclosure Event information, if any. NASD BrokerCheck discloses the following information on brokerage firms: * the brokerage firm's name, CRD number, SEC identification number, "applicant name" or legal name, NASD district office which oversees the brokerage firm, and the brokerage firm's main and mailing addresses * the types of business in which the brokerage firm is currently engaged * details of the brokerage firm's legal status (i.e, corporation, partnership, etc.), state or country and date of formation, and its fiscal year end * all approved registrations * disclosure matters involving certain criminal charges and convictions, regulatory actions, civil judicial actions, and certain financial actions (e.g., bankruptcies, unsatisfied judgment/liens.) When evaluating this report, please keep in mind that a number of items may involve pending actions or allegations that may be contested and have not been resolved or proven. The items may, in the end, be withdrawn or dismissed, or resolved in favor of the brokerage firm, or concluded through a negotiated settlement with no admission or conclusion of wrongdoing. Also remember that the information in this report is not the only resource you should consult. It is recommended that you learn as much as possible about the brokerage firm from other sources. Ask for references. Ask family members or friends who already have established investment business relationships. Get in touch with local consumer and investors groups. Should you have any questions concerning information contained within this report, call (800) 289-9999 - a toll-free NASD BrokerCheck hot-line operated by NASD - or visit NASD Web Site at www.nasd.com. When calling or visiting the NASD Web Site, the information you will need includes the brokerage firm's name or CRD number. For definition of terms contained within this report or answers to Frequently Asked Questions, visit the Glossary or FAQs sections of NASD BrokerCheck at www.nasd.com. NASD BrokerCheck Report Printing Instructions The report contained below can be printed as is. However, unless the following steps are taken, the report may not print with the headers aligned or the text may run off the page. For the following report to be printed correctly, the following formatting steps must be completed: 1) Copy the text of the report into a text editor. 2) Delete these instructions down to and including the first dashed line. 3) Set the Font for the entire report to Courier, 8 point. 4) Set the left and right margins to 0. 5) Set the top and bottom margins to 0. Because every printer allows a different number of lines per page, the margins may have to be adjusted differently to get the headers to line up at the top of each page. The document is formatted to print 90 lines per page at the specified font. 6) Print the report. -------------------------------------------------------------------------------- NASD BrokerCheck October 12, 2005 Page 1 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 ******************************************************************************** REPORT SUMMARY ******************************************************************************** ************************************************************ Administrative Information: ************************************************************ Admin Information: Information that is required to be reported to NASD by brokerage firms via Form BD (Uniform Application for Broker-Dealer Registration). The administrative information contained in this report includes: (a) types of business the brokerage firm is engaged in; (b) legal status (e.g., corporation, partnership, sole proprietorship, limited liability company, etc.), state/country of formation unless legal status is sole proprietorship, date of formation, and month in which the brokerage firm's fiscal year ends; and (c) all approved registrations with the SEC, NASD and state securities commissions. Types of Business: 14 Legal Status: 1 Registrations: 64 ************************************************************ Disclosure Events: Yes ************************************************************ Disclosure Event: Information that is required to be reported to NASD by individual brokers via Form U-4 (Uniform Application for Securities Industry Registration or Transfer) and brokerage firms via Form BD (Uniform Application for Broker-Dealer Registration). Some disclosure events may have multiple reporting sources. For example, some information required to be reported by an individual broker via Form U-4 may also be reported on the individual broker's record by a brokerage firm via Form U-5 (Uniform Termination Notice for Securities Industry Registration) and/or by a regulator via Form U-6 (Uniform Disciplinary Action Reporting Form). If a disclosure event is reported by multiple sources, all versions of the reported event will be disclosed on the individual broker's NASD BrokerCheck report. Similarly, some information required to be reported by a brokerage firm via Form BD may also be reported on the brokerage firm's record via Form U-6. If a disclosure event is reported by multiple sources, all versions of the reported event will be disclosed on the brokerage firm's NASD BrokerCheck report. Criminal Actions: 0 Regulatory Actions: 93 Civil Judicial Actions: 0 Arbitrations: 5 Bonds: 0 Bankruptcies: 0 Judgment/Liens: 0 NASD BrokerCheck October 12, 2005 Page 2 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 ******************************************************************************** ADDRESS/GENERAL INFORMATION ******************************************************************************** This section provides the brokerage firm's name, CRD number, SEC number, Applicant Name on Form BD, NASD District where the brokerage firm is located, and the brokerage firm's main and mailing addresses. Applicant Name on Form BD: GOLDMAN SACHS EXECUTION & CLEARING, L.P. SEC Number: 8-000526 Prior Business Names: SPEAR, LEEDS & KELLOGG SPEAR, LEEDS & KELLOGG, L.P. Business Phone Number: 212-902-1000 Main Office Address Located in NASD District: 9-Woodbridge 30 HUDSON STREET JERSEY CITY, NJ 07302-4699 Mailing Address 30 HUDSON STREET 27TH FLOOR JERSEY CITY, NJ 07302-4699 ******************************************************************************** TYPES OF BUSINESS ******************************************************************************** This section lists the type(s) of business that the brokerage firm is currently engaged in as reported on the Form BD. Broker or dealer selling corporate debt securities Broker or dealer retailing corporate equity securities over-the-counter Exchange member engaged in exchange commission business other than floor activities Exchange member engaged in floor activities Government securities broker Government securities dealer Broker or dealer making inter-dealer markets in corporate securities over-the-counter Mutual fund retailer Municipal securities broker Municipal securities dealer Put and call broker or dealer or option writer Trading securities for own account Underwriter or selling group participant (corporate securities other than mutual funds) Effects transactions in commodity futures, commodities, commodity options as broker for others or dealer for own account ******************************************************************************** LEGAL STATUS ******************************************************************************** This section details the brokerage firm's legal status (i.e, corporation, limited partnership, etc.), state or country where formed, date of formation, and the month the brokerage firm's fiscal year ends. Legal Status: PARTNERSHIP State/Country of Formation: NY Date of Formation: 01/31/1931 Fiscal Year End: NOV ******************************************************************************** REGISTRATIONS ******************************************************************************** This section provides the jurisdictions in which the brokerage firm is registered or licensed to do business, the category of each registration, and the date on which the registration was granted. Jurisdiction/SRO Category Status As Of Date AK Broker Dealer Approved 10/07/1998 AL Broker Dealer Approved 12/02/1998 AMEX Broker Dealer Approved 02/25/1988 AR Broker Dealer Approved 02/07/1994 AZ Broker Dealer Approved 07/22/1996 BSE Broker Dealer Approved 02/19/1993 CA Broker Dealer Approved 02/05/1988 CBOE Broker Dealer Approved 06/17/1981 CHX Broker Dealer Approved 06/25/2004 NASD BrokerCheck October 12, 2005 Page 3 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGISTRATIONS(cont.) Jurisdiction/SRO Category Status As Of Date CO Broker Dealer Approved 01/15/1988 CT Broker Dealer Approved 03/23/1988 DC Broker Dealer Approved 02/18/1988 DE Broker Dealer Approved 03/08/1994 FL Broker Dealer Approved 04/27/1983 GA Broker Dealer Approved 01/29/1988 HI Broker Dealer Approved 07/13/2000 IA Broker Dealer Approved 08/24/1998 ID Broker Dealer Approved 12/07/1993 IL Broker Dealer Approved 02/19/1988 IN Broker Dealer Approved 03/10/1988 ISE Broker Dealer Approved 05/01/2000 KS Broker Dealer Approved 11/08/1993 KY Broker Dealer Approved 02/28/1991 LA Broker Dealer Approved 12/20/1993 MA Broker Dealer Approved 03/29/1988 MD Broker Dealer Approved 02/05/1988 ME Broker Dealer Approved 04/28/2000 MI Broker Dealer Approved 03/25/1998 MN Broker Dealer Approved 07/15/1982 MO Broker Dealer Approved 04/25/1997 MS Broker Dealer Approved 12/17/1993 MT Broker Dealer Approved 12/22/1993 NASD Broker Dealer Approved 03/31/1948 NC Broker Dealer Approved 04/29/1997 ND Broker Dealer Approved 10/05/1998 NE Broker Dealer Approved 01/20/1994 NH Broker Dealer Approved 09/08/1994 NJ Broker Dealer Approved 07/18/1983 NM Broker Dealer Approved 03/15/1988 NSX Broker Dealer Approved 06/29/1999 NV Broker Dealer Approved 12/07/1993 NY Broker Dealer Approved 01/04/1984 NYSE Broker Dealer Approved 11/17/1982 NqLX Broker Dealer Approved 11/08/2002 OH Broker Dealer Approved 02/23/1996 OK Broker Dealer Approved 11/22/1993 OR Broker Dealer Approved 03/14/1988 PA Broker Dealer Approved 03/03/1988 PCX Broker Dealer Approved 05/24/1988 PHLX Broker Dealer Approved 03/23/1948 PR Broker Dealer Approved 02/15/1994 RI Broker Dealer Approved 01/14/1994 SC Broker Dealer Approved 10/19/1993 SD Broker Dealer Approved 10/27/1993 SEC Broker Dealer Approved 03/23/1948 TN Broker Dealer Approved 02/02/1984 TX Broker Dealer Approved 02/10/1988 UT Broker Dealer Approved 12/07/1993 VA Broker Dealer Approved 02/05/1988 VT Broker Dealer Approved 04/01/1994 WA Broker Dealer Approved 02/04/1994 WI Broker Dealer Approved 06/20/1994 WV Broker Dealer Approved 10/15/1993 WY Broker Dealer Approved 10/25/1993 NASD BrokerCheck October 12, 2005 Page 4 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 ******************************************************************************** REGULATORY ACTIONS ******************************************************************************** DISCLOSURE INFORMATION This section lists regulatory actions that were reported to CRD and are disclosable through NASD BrokerCheck. Disclosable regulatory actions include formal proceedings initiated by a regulatory authority (i.e., a state securities agency, NASD, New York Stock Exchange, foreign regulatory body, etc.) for a violation of investment-related rules or regulations. In addition, revocations or suspensions of an individual broker's authority to act as an attorney, accountant or federal contractor will appear here. Some of the fields in this section of the report may be blank if the information was not provided to CRD. ** OCCURRENCE COUNTS ** 93 Record(s) ******************************************************************************** ** FIELD DEFINITIONS ** * Reporting Source: The form through which details of the regulatory action was reported to CRD. * Date Reported: The date the regulatory action was reported to CRD. * Initiated By: The name of the securities regulator that initiated the regulatory action (e.g., regulator, foreign financial regulatory authority, self-regulatory organization, federal agency such as SEC, state, etc.). * Date Initiated: Date the regulatory action was initiated. * Docket/Case Number: Docket or case number of the regulatory action. * Employing Brokerage Firm: Brokerage Firm where individual broker was employed when activity occurred that led to the regulatory action. * Allegations: Allegations made against the individual broker leading to the regulatory action. * Current Status: The current status of the regulatory action (i.e., pending, on appeal or final). * Resolution: The resolution of the regulatory action (e.g., acceptance, waiver and consent; decision; decision and order of offer of settlement; order; settled; etc.). * Resolution Date: The date the regulatory action was resolved. * Sanction Details: Additional details regarding any sanctions ordered. * Summary: A summary of the details related to the regulatory action. ******************************************************************************** ******** REGULATORY ACTION (1 of 93) ******** Reporting Source: Brokerage Firm (Form BD) Date Reported: 09/08/2005 Initiated By: CHICAGO BOARD OF TRADE "CBOT" Date initiated: 07/15/2005 Docket/ Case Number: 05-RMS-011 Allegations: CBOT ALLEGED THAT, FOR REVIEW PERIOD JANUARY TO MARCH 2005, GOLDMAN SACHS EXECUTION & CLEARING, L.P. ("GSEC") ENTERED CERTAIN ORDERS INTO THE E-CBOT SYSTEM WITHOUT THE REQUIRED UNIQUE, EXCHANGE-ASSIGNED, REGISTERED E-CBOT USER ID, AND GSEC ALLOWED CERTAIN ORDERS TO BE ENTERED INTO E-CBOT WITH AN INCORRECT CTI CODE, IN VIOLATION OF CBOT REGULATIONS 9B.06 AND 9B.11, RESPECTIVELY. Current Status: Final Resolution: Decision NASD BrokerCheck October 12, 2005 Page 5 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution Date: 08/12/2005 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: GSEC PAID A MONETARY FINE OF $3000. Summary: ON OR ABOUT JULY 18, 2005, GSEC RECEIVED A LETTER FROM CBOT THAT ALLEGED VIOLATION OF REGULATIONS 9B.06 AND 9B.11. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, GSEC PAID A $3000 FINE. ******** REGULATORY ACTION (2 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 03/23/2005 Initiated By: NASD Date initiated: 03/01/2005 Docket/ Case Number: CE2050002 Allegations: NASD RULE 2110 - MEMBER FIRM IMPLEMENTED AND USED AN INTERNAL SYSTEM TO CIRCUMVENT THE DEPOSITORY TRUST CORPORATION'S (DTC) IPO TRACKING SYSTEM AND PREVENT DTC FROM DETECTING SALES OF IPO SHARES AT RESPONDENT FIRM. THE FIRM NEVER INFORMED DTC THAT IT HAD IMPLEMENTED THIS INTERNAL SYSTEM AND AS A RESULT OF FIRM'S ACTIVITIES, REPORTS GENERATED BY THE IPO TRACKING SYSTEM ON NUMEROUS OCCASSIONS FAILED TO REFLECT SALES OF IPO SHARES THAT HAD OCCURRED IN ACCOUNTS AT RESPONDENT FIRM. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/01/2005 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $1,000,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SPEAR LEEDS CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE THE FIRM IS CENSURED AND FINED $1,000,000. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 04/21/2005 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. ("NASD") Date initiated: 01/15/2004 Docket/ Case Number: CE2050002 Allegations: THE NASD ALLEGED THAT SPEAR, LEEDS & KELLOGG, L.P. (NOW KNOWN AS GOLDMAN SACHS EXECUTION & CLEARING, L.P.) VIOLATED JUST AND EQUITABLE PRINCIPLES OF TRADE AND ENGAGED IN ACTIVITY THAT WAS NOT CONSISTENT WITH HIGH STANDARDS OF COMMERCIAL HONOR, IN VIOLATION OF NASD CONDUCT RULE 2110, BY IMPLEMENTING AN INTERNAL SYSTEM, FROM APPROXIMATELY AUGUST 1997 THROUGH THE BEGINNING OF 2001, THAT PREVENTED CLIENT SALES OF SECURITIES ISSUED IN INITIAL PUBLIC OFFERINGS DURING CERTAIN "TRACKING" PERIODS FROM APPEARING ON REPORTS GENERATED BY THE DEPOSITORY TRUST CORPORATION'S "IPO TRACKING SYSTEM". Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/22/2005 NASD BrokerCheck October 12, 2005 Page 6 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $1,000,000.00 Resolution Details: THE $1,000,000 (ONE MILLION DOLLARS) WAS PAID ON MARCH 11, 2005. Summary: SPEAR, LEEDS & KELLOGG, L.P., WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT, WHICH WAS ACCEPTED BY THE NASD. ******** REGULATORY ACTION (3 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 03/18/2005 Initiated By: NASD Date initiated: 03/02/2005 Docket/ Case Number: CLG050017 Allegations: NASD MARKETPLACE RULE 6955(A) AND NASD CONDUCT RULE 2110- FIRM FAILED TO TIMELY REPORT TO OATS REPORTABLE ORDER EVENTS. ("ROES"), AND TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE, OR IMPROPERLY FORMATTED DATA Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/02/2005 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $10,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $10,000. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 08/16/2005 Initiated By: NASD Date initiated: 03/02/2005 Docket/ Case Number: CLG050017 Allegations: NASD ALLEGED THAT, FOR REVIEW PERIOD JANUARY 2002 THROUGH MARCH 2002, GOLDMAN SACHS EXECUTION & CLEARING, L.P. ("GSEC") (F/K/A SPEAR, LEEDS & KELLOGG, L.P.) FAILED TO TIMELY AND/OR ACCURATELY REPORT TO NASD'S OATS CERTAIN TRANSACTIONS AND DATA IN VIOLATION OF NASD RULES 6955(A) AND NASD CONDUCT RULE 2110. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/02/2005 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $10,000.00 Resolution Details: GSEC PAID A MONETARY FINE OF $10,000. Summary: GSEC SUBMITTED AN ACCEPTANCE, WAIVER AND CONSENT TO NASD, WHICH WAS ACCEPTED. WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, NASD BrokerCheck October 12, 2005 Page 7 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) GSEC AGREED TO A $10,000 FINE AND TO BE CENSURED. ******** REGULATORY ACTION (4 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 12/17/2004 Initiated By: NASD Date initiated: 12/02/2004 Docket/ Case Number: CMS040191 Allegations: NASD RULES 2110, 6130(B) - SPEAR, LEEDS & KELLOGG, L.P. FAILED TO ACCEPT OR DECLINE IN ACT TRANSACTIONS IN ELIGIBLE SECURITIES WITHIN 20 MINUTES AFTER EXECUTION THAT THE FIRM HAD AN OBLIGATION TO ACCEPT OR DECLINE IN ACT AS THE ORDER ENTRY FIRM. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 12/02/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $8,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SPEAR, LEEDS & KELLOGG CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED AND FINED $8,000. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 05/05/2005 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD) Date initiated: 12/02/2004 Docket/ Case Number: CMS040191 Allegations: THE NASD ALLEGED VIOLATIONS OF NASD MARKETPLACE RULE 6130(B) AND NASD CONDUCT RULE 2110 BASED UPON GOLDMAN SACHS EXECUTION & CLEARING, L.P.'S ("THE FIRM") ALLEGED FAILURE TO ACCEPT OR DECLINE IN THE AUTOMATED CONFIRMATION TRANSACTION SERVICE (ACT) CERTAIN TRANSACTIONS FOR WHICH THE FIRM SERVED AS ORDER ENTRY FIRM DURING THE PERIOD OF APRIL 1, 2003 THROUGH JUNE 30, 2003. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 12/02/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $8,000.00 Resolution Details: THE $8,000 FINE WAS PAID ON JANUARY 11, 2005. Summary: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OR FINDINGS, THE FIRM ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT WHICH RESULTED IN THE IMPOSITION OF A CENSURE AND A FINE OF $8,000 FOR VIOLATIONS OF NASD MARKETPLACE RULE 6130(B) AND A VIOLATION OF NASD CONDUCT RULE 2110. ******** REGULATORY ACTION (5 of 93) ******** NASD BrokerCheck October 12, 2005 Page 8 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Reporting Source: Regulator (Form U-6) Date Reported: 09/24/2004 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 04/30/2004 Docket/ Case Number: 03-43A Allegations: SPEAR, LEEDS & KELLOGG VIOLATED RULE 17A-4 OF THE SECURITIES EXCHANGE ACT OF 1934, MADE APPLICABLE THROUGH EXCHANGE RULE 324, IN THAT THE FIRM FAILED TO MAINTAIN ACCURATE BOOKS AND RECORDS RELATED TO THE SUBMISSION, AND SUBSEQUENT CANCELLATION, OF CONTRARY EXERCISE ADVICE INSTRUCTIONS FROM A CUSTOMER. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 09/07/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $4,000.00 Other Sanctions: NO SANCTIONS OTHER THAN THOSE PREVIOUSLY ARTICULATED WERE ORDERED. Resolution Details: NO OTHER SANCTIONS DETAIL. Summary: PLEASE CONTACT THE ENFORCEMENT DEPARTMENT OF THE NASD'S AMEX REGULATION DIVISION FOR FURTHER DETAILS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 11/26/2004 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 04/30/2004 Docket/ Case Number: 03-43A Allegations: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SPEAR, LEADS & KELLOGG, L.P. CONSENTED TO THE FINDING THAT IT VIOLATED AMEX RULE 324 IN THAT THE FIRM DID NOT MAINTAIN ACCURATE BOOKS AND RECORDS RELATED TO THE SUBMISSION, AND SUBSEQUENT CANCELLATION OF A CERTAIN CONTRARY OPTION EXERCISE INSTRUCTION. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 09/07/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $4,000.00 Resolution Details: SEE ABOVE. Summary: ******** REGULATORY ACTION (6 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 09/20/2004 Initiated By: NASD Date initiated: 08/26/2004 Docket/ Case Number: CMS040136 NASD BrokerCheck October 12, 2005 Page 9 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Allegations: NASD MARKETPLACE RULE 6955(A) AND NASD CONDUCT RULE 2110 - SPEAR, LEEDS & KELLOGG, L.P. FAILED TO TIMELY REPORT TO ORDER AUDIT TRAIL SYSTEM (?OATS?) 2,776,263 REPORTABLE ORDER EVENTS (?ROES?). THESE LATE ROES REPRESENTED EIGHT PERCENT OF ALL ROES SUBMITTED BY THE FIRM TO OATS DURING THE PERIOD JANUARY 1, 2003 THROUGH MARCH 31, 2003 (?REVIEW PERIOD?). THE FIRM ALSO SUBMITTED TO OATS 205,784 REPORTS WITH RESPECT TO EQUITY SECURITIES TRADED ON THE NASDAQ STOCK MARKET (THE ?SUBJECT REPORTS?) THAT WERE NOT IN THE ELECTRONIC FORM PRESCRIBED BY NASD AND WERE REPAIRABLE. THE FIRM DID NOT CORRECT OR REPLACE ANY OF THE SUBJECT REPORTS, RESULTING IN AN INACCURATE AND/OR INCOMPLETE AUDIT TRAIL. SPEAR, LEEDS & KELLOGG, L.P. ALSO FAILED TO TIMELY REPORT TO OATS 7,096,075 ROES ON BEHALF OF TWO REPORTING MEMBERS DURING THE REVIEW PERIOD. THE FIRM SUBMITTED TO OATS AND 1,389,227 REPORTS ON BEHALF OF TWO REPORTING MEMBERS WITH RESPECT TO EQUITY SECURITIES TRADED ON NASDAQ THAT WERE NOT IN THE ELECTRONIC FORM PRESCRIBED BY NASD AND WERE REPAIRABLE. THE UNCORRECTED SUBJECT REPORTS RESULTED IN AN INACCURATE AND INCOMPLETE AUDIT TRAIL. MOREOVER, THE FIRM FAILED TO TIMELY REPORT TO OATS 156,168 ROES ON BEHALF OF NINE REPORTING MEMBERS DURING THE PERIOD OCTOBER 1, 2002 THROUGH DECEMBER 31, 2002. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/26/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $75,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SPEAR, LEEDS & KELLOGG, L.P. CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED IN THE AMOUNT $75,000. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/07/2005 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS ("NASD") Date initiated: 07/24/2003 Docket/ Case Number: CMS040136 (AWC) Allegations: THE NASD ALLEGED THAT SPEAR, LEEDS & KELLOGG, L.P. (NOW KNOWN AS GOLDMAN SACHS EXECUTION & CLEARING, L.P.) DID NOT TIMELY REPORT TO THE ORDER AUDIT TRAIL SYSTEM ("OATS") CERTAIN REPORTABLE ORDER EVENTS "ROES") AND DID NOT ADEQUATELY CORRECT OR REPLACE CERTAIN ROES THAT WERE REJECTED DURING THE PERIOD JANUARY 1, 2003 THROUGH MARCH 31, 2003. IN ADDITION, THE NASD ALLEGED THAT THE FIRM DID NOT TIMELY REPORT TO OATS ON BEHALF OF CERTAIN REPORTING MEMBERS DURING THE PERIOD OF OCTOBER 1, 2002 THROUGH DECEMBER 31, 2002. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 09/02/2004 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $75,000.00 Resolution Details: THE FIRM PAID THE $75,000 FINE BY CHECK DATED OCTOBER 14, 2004. Summary: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS OR FINDINGS, SPEAR, LEEDS & KELLOGG, L.P. (NOW KNOWN AS GOLDMAN SACHS EXECUTION & CLEARING, L.P.), ENTERED INTO A LETTER OF ACCEPTANCE, WAIVER AND CONSENT ("AWC") WITH THE NASD AND ACCEPTED A CENSURE AND A $75,000 FINE RELATING TO CERTAIN ALLEGED ORDER AUDIT TRAIL SYSTEM ("OATS") REPORTING DEFICIENCIES DURING THE FOURTH QUARTER OF 2002 AND THE FIRST QUARTER OF 2003, AS MORE FULLY DESCRIBED ABOVE. NASD BrokerCheck October 12, 2005 Page 10 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ******** REGULATORY ACTION (7 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 11/13/2003 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 01/27/2003 Docket/ Case Number: 99-18, 00-06, 00-07, 00-11, 00-12 ET. AL Allegations: SPEAR, LEEDS & KELLOGG, L.P., VIOLATED: (I) EXCHANGE RULE 155 BY SELLING SHARES FOR ITS PROPRIETARY ACCOUNT AHEAD OF A CUSTOMER ORDER AT THE SAME PRICE THAT HAD PREVIOUSLY BEEN ENTRUSTED TO THE UNIT; (II) EXCHANGE RULE 100 FOR TRANSMITTING TWO COMMITMENTS TO PURCHASE STOCK THROUGH ITS AFTER THE CLOSE OF AMEX TRADING; (III) EXCHANGE RULE 7 FOR SELLING SHARES SHORT FOR ITS PROPRIETARY ACCOUNT ON A STRAIGHT MINUS TICK ON THREE OCCASIONS; (IV) EXCHANGE RULE 100 BY TRANSMITTING THREE COMMITMENTS TO PURCHASE SHARES OF A DEPOSITARY RECEIPT THROUGH ITS AFTER THE CLOSE OF AMEX TRADING; (V) ARTICLE V, SECTION 4(H) OF THE EXCHANGE CONSTITUTION IN THAT A CLERK'S ERROR WHILE UTILIZING A PROPRIETARY SYSTEM RESULTED IN THE UNINTENDED ENTRY OF 50% LIQUIDATION ORDERS IN 87 OF THE SPECIALIST UNIT'S STOCKS PRIOR TO THE OPENING OF TRADING; (VI) SEC RULE 11AC1-1 IN THAT THE SPECIALIST UNIT FAILED TO EXECUTE 152 CUSTOMER ORDERS AT THE AVAILABLE PRICE REFLECTED IN THE QUOTED MARKET; (VII) EXCHANGE RULE 126 BY EXECUTING CUSTOMER ORDERS OUT OF SEQUENCE ON FOUR DIFFERENT TRADING DATES; (VIII) EXCHANGE RULE 155 BY TRADING AHEAD OF 12 CUSTOMER ORDERS FOR THE FIRM'S PROPRIETARY ACCOUNT; (IX) EXCHANGE RULE 131(Q) FOR IMPROPERLY EXECUTING STOP ORDERS WITHOUT AN ELECTING SALE; (X) EXCHANGE RULE 155 FOR FAILING TO USE DUE DILIGENCE IN EXECUTING A LIMIT ORDER IN A STOCK AT THE BEST PRICE AVAILABLE UNDER THE PUBLISHED MARKET PROCEDURES OF THE EXCHANGE; (XI) SEC RULE 11AC1-4 BY FAILING TO REFLECT 31 SUPERIOR CUSTOMER LIMIT ORDERS IN A TIMELY FASHION; (XII) EXCHANGE RULE 934(A), RULE 1000 COMMENTARY .04(A), RULE 1000A COMMENTARY .05(A), AND RULE 1200 COMMENTARY .03(A) IN THAT THE FIRM FAILED TO DEVELOP, MAINTAIN, AND ENFORCE SYSTEMS AND CONTROLS REASONABLY DESIGNED TO DETECT AND ADDRESS UPSTAIRS MARKET MAKING BY ITS CUSTOMERS AND CUSTOMERS OF OTHER BROKER-DEALERS USING THE FIRM'S PROPRIETARY SYSTEM; AND (XIII) EXCHANGE RULE 320(C) FOR FAILURE TO SUPERVISE. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 03/19/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $285,000.00 Resolution Details: IN ADDITION TO THE SANCTIONS REFERENCED ABOVE, THE FIRM'S ON-FLOOR SUPERVISOR (PETER DONOHUE) AND THREE OF THE UNIT'S SPECIALISTS (ROSARIO INGALLINERA, FABIAN CACERES, AND ANTHONY PERGOLA) WERE ALSO SANCTIONED FOR THE AFOREMENTIONED AND RELATED CONDUCT. Summary: PLEASE CONTACT ERIC BROWN, SENIOR ATTORNEY IN THE ENFORCEMENT DEPARTMENT OF THE AMERICAN STOCK EXCHANGE, FOR FURTHER DETAILS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/16/2003 Initiated By: AMERICAN STOCK EXCHANGE("AMEX") Date initiated: 01/23/2002 Docket/ Case Number: 99-18, 00-06, 00-07, 00-11-CONT. IN 13 Allegations: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SLK CONSENTED TO FINDINGS THAT IT VIOLATED CERTAIN RULES RELATING TO CERTAIN OF THE FIRM'S BUSINESSES ON THE AMEX FLOOR AND THE FIRM'S NASD BrokerCheck October 12, 2005 Page 11 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ELECTRONIC ORDER ROUTING BUSINESS AND FAILED TO ADEQUATELY SUPERVISE OR DEVELOP, MAINTAIN AND ENFORCE REASONABLE SUPERVISORY PROCEDURES IN RESPECT TO SUCH BUSINESSES SO AS TO PREVENT SUCH VIOLATIONS. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 05/01/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $285,000.00 Resolution Details: A $285,000.00 FINE WAS PAID BY THE FIRM ON APRIL 25, 2003. Summary: CONT FROM 4-00-12,00-19,00-22,00-25,00-26,01-05,01-32, 02-05, 02-16, 02-21, 02-22, 02-23, 02-24, 02-40. THE STIPULATION OF FACTS AND CONSENT TO PENALTY WAS ACCEPTED BY THE EXCHANGE'S DISCIPLINARY PANEL, AND THE PANEL'S DECISION BECAME EFFECTIVE ON 3/31/2003. SEE RESPONSE TO 7 AND 11 FOR ADDITIONAL INFORMATION. ******** REGULATORY ACTION (8 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 07/24/2003 Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION Date initiated: 07/21/2003 Docket/ Case Number: FILE NO. 3-11189 Allegations: SEC ADMINISTRATIVE RELEASE NO. 34-48199, FILE NO. 3-11189, DATED JULY 21, 2003; SLK FAILED REASONABLY TO SUPERVISE CERTAIN EMPLOYEES WITH A VIEW TO PREVENTING THEM FROM AIDING AND ABETTING A DIRECT ACCESS CLIENT IN UNLAWFUL "MARKING THE CLOSE" TRADES ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE ("NYSE") IN 1999. "MARKING THE CLOSE" REFERS TO THE MANIPULATIVE PRACTICE OF ATTEMPTING TO INFLUENCE THE CLOSING PRICE OF A STOCK BY EXECUTING PURCHASE OR SALE ORDERS AT OR NEAR THE CLOSE OF THE MARKET. DURING THE RELEVANT PERIOD, SLK LACKED ADEQUATE PROCEDURES SPECIFICALLY TO DETECT AND PREVENT MARKING THE CLOSE. FOR EXAMPLE, SLK DID NOT CONDUCT A PERIODIC REVIEW OF TRADES AT AND NEAR THE END OF THE DAY TO DETECT PATTERNS OF MARKING THE CLOSE BY ITS CLIENTS. INSTEAD, SLK'S PROCEDURES MERELY CONTAINED A PROSCRIPTION AGAINST MARKING THE CLOSE AND REQUIRED EMPLOYEES TO NOTIFY SLK'S COMPLIANCE DEPARTMENT OF SUSPICIOUS TRADING AT OR NEAR THE CLOSE. SLK'S PROCEDURES FOR SUPERVISION OF ITS BUSINESS ON THE NYSE FLOOR WERE ALSO CIRCULAR BECAUSE THE SUPERVISOR RESPONSIBLE FOR REVIEWING ORDER TICKETS AND DAILY ACTIVITY REPORTS WAS ALSO ONE OF THE FLOOR BROKERS EXECUTING CERTAIN OF THE CLIENT'S ORDERS. BASED ON THE FOREGOING, THE COMMISSION FINDS THAT SLK FAILED REASONABLY TO SUPERVISE EMPLOYEES WITH A VIEW TO PREVENTING THE EMPLOYEES FROM AIDING AND ABETTING THE VIOLATION OF SECTION 15(C)(1)(A) OF THE EXCHANGE ACT. Current Status: Final Resolution: Order Resolution Date: 07/21/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $450,000.00 Other Sanctions: UNDERTAKING: WITHIN 30 DAYS OF THE DATE OF THIS ORDER, SLK SHALL EMPLOY AN INDEPENDENT CONSULTANT ("INDEPENDENT CONSULTANT") ACCEPTABLE TO THE COMMISSION STAFF AND KNOWLEDGEABLE IN ALL ASPECTS OF BROKER-DEALER OPERATIONS, INCLUDING, BUT NOT LIMITED TO, THE ORDER EXECUTION RULES PROMULGATED UNDER THE EXCHANGE ACT, TO CONDUCT A COMPREHENSIVE REVIEW OF AND MAKE FINDINGS REGARDING SLK'S INTERNAL CONTROLS, POLICIES, PRACTICES, AND PROCEDURES DESIGNED TO DETECT AND PREVENT MARKING THE CLOSE. SUCH INDEPENDENT CONSULTANT WILL ALSO RECOMMEND ANY REVISED OR ADDITIONAL INTERNAL CONTROLS, POLICIES, OR PROCEDURES WHICH THE INDEPENDENT CONSULTANT NASD BrokerCheck October 12, 2005 Page 12 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) BELIEVES ARE NECESSARY TO PROVIDE REASONABLE ASSURANCE THAT SLK WILL BE IN COMPLIANCE WITH THE ABOVE MENTIONED REQUIREMENTS RELATED TO PREVENTING AND DETECTING MARKING THE CLOSE. Resolution Details: ACCORDINGLY, IT IS HEREBY ORDERED THAT: PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGE ACT, RESPONDENT SLK IS CENSURED. RESPONDENT SLK SHALL, WITHIN 20 DAYS OF THE ENTRY OF THIS ORDER, PAY THE AMOUNT OF $450,000. RESPONDENT SHALL MAKE PAYMENT AS FOLLOWS: (I) A CIVIL MONEY PENALTY IN THE AMOUNT OF $225,000 TO THE UNITED STATES TREASURY; AND (II) PURSUANT TO RESPONDENT'S AGREEMENT WITH THE NYSE IN RELATED PROCEEDINGS, RESPONDENT SHALL PAY A FINE OF $225,000 TO THE NYSE. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 07/30/2004 Initiated By: U.S. SECURITIES AND EXCHANGE COMMISSION Date initiated: 07/21/2003 Docket/ Case Number: 3-11189 Allegations: SEE RESPONSE TO QUESTION 13. Current Status: Final Resolution: Consent Resolution Date: 07/21/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $225,000.00 Other Sanctions: THE FIRM CONSENTED TO AN UNDERTAKING TO RETAIN AN INDEPENDENT CONSULTANT TO REVIEW AND PREPARE A REPORT CONCERNING THE FIRM'S POLICIES AND PROCEDURES DESIGNED TO DETECT AND PREVENT MARKING THE CLOSE, AND TO MAKE ANY APPROPRIATE RECOMMENDATIONS CONCERNING SAME. Resolution Details: $225,000 FINE WAS PAID TO THE SEC ON AUGUST 8, 2003. $225,000 FINE WAS PAID TO THE NYSE ON AUGUST 8, 2003. Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM MADE AN OFFER OF SETTLEMENT DATED 5/27/2003, WHICH WAS ACCEPTED BY THE COMMISSION BY WAY OF AN ORDER, DATED 7/21/2003, CONCERNING CERTAIN TRADING ACTIVITY BY A DIRECT ACCESS CUSTOMER. THE FIRM CONSENTED TO FINDINGS THAT IT LACKED ADEQUATE PROCEDURES TO DETECT AND PREVENT MARKING THE CLOSE BY DIRECT ACCESS CUSTOMERS AND DID NOT REASONABLY SUPERVISE EMPLOYEES WITH A VIEW TOWARD DETECTING AND PREVENTING MARKING THE CLOSE. THE FIRM CONSENTED TO A FINE AND AN UNDERTAKING TO RETAIN AN INDEPENDENT CONSULTANT TO REVIEW THE FIRM?S POLICIES AND PROCEDURES DESIGNED TO DETECT AND PREVENT MARKING THE CLOSE. ******** REGULATORY ACTION (9 of 93) ******** Reporting Source: Regulator (Form U-6) Date Reported: 07/29/2003 Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT Date initiated: 05/30/2003 Docket/ Case Number: HPD#: 03-108 Allegations: **5/30/03**STIPULATION AND CONSENT TO PENALTY FILED BY NYSE DIVISION OF ENFORCEMENT AND PENDING CONSENTED TO FINDINGS: FINDINGS BY THE HEARING PANEL THAT THE FIRM VIOLATED EXCHANGE RULE 342 IN THAT, DURING THE PERIOD OCTOBER, NOVEMBER 1999, THE FIRM FAILED TO ESTABLISH AND MAINTAIN REASONABLE PROCEDURES AND SYSTEMS TO PREVENT CERTAIN OF ITS EMPLOYEES FROM AIDING AND ABETTING THE VIOLATION OF SECTION 15(C)(1)(A) NASD BrokerCheck October 12, 2005 Page 13 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) OF THE SECURITIES EXCHANGE ACT OF 1934 BY A NON-MEMBER FIRM DIRECT ACCESS CUSTOMER THAT MANIPULATED THE PRICE OF A LISTED SECURITY.STIPULATED SANCTION: CENSURE; A FINE OF $450,000 (THE AMOUNT TO BE PAID TO THE EXCHANGE BY THE FIRM TO BE REDUCED BY THE AMOUNT PAID BY THE FIRM PURSUANT TO AN AGREEMENT TO PAY A CIVIL MONETARY PENALTY OF $225,000 TO THE UNITED STATES TREASURY IN RELATED PROCEEDINGS BY THE SECURITIES AND EXCHANGE COMMISSION); AND AN UNDERTAKING THAT THE FIRM SHALL RETAIN AN INDEPENDENT CONSULTANT, NOT UNACCEPTABLE TO THE EXCHANGE, TO REVIEW AND PREPARE A REPORT OF THE FIRMS SYSTEMS AND PROCEDURES, INCLUDING RECOMMENDATIONS FOR ADDITIONAL SYSTEMS AND PROCEDURES, IF NECESSARY, REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH FEDERAL SECURITIES LAWS AND EXCHANGE RULES AND TO PREVENT RECURRENCE OF THE VIOLATIONS DESCRIBED IN THE STIPULATION OF FACTS AND CONSENT TO PENALTY. THE FIRM MAY SATISFY THE EXCHANGES REQUIREMENT IN THIS UNDERTAKING BY COMPLYING WITH THE REVIEW CONDUCTED AND THE REPORT PREPARED BY AN INDEPENDENT CONSULTANT IN ACCORDANCE WITH THE TERMS SET FORTH BY THE SECURITIES AND EXCHANGE COMMISSION IN RELATED PROCEEDINGS. Current Status: Final Resolution: Decision Resolution Date: 07/11/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $450,000.00 Other Sanctions: CONSENT TO CENSURE, $450,000 FINE AND AN UNDERTAKING. Resolution Details: **6/9/03**DECISION 03-108 ISSUED BY NYSE HEARING PANEL DECISION: THE FIRM VIOLATED EXCHANGE RULE 342 IN THAT, DURING THE PERIOD OCTOBER AND NOVEMBER 1999, THE FIRM FAILED TO ESTABLISH AND MAINTAIN REASONABLE PROCEDURES AND SYSTEMS TO PREVENT CERTAIN OF ITS EMPLOYEES FROM AIDING AND ABETTING THE VIOLATION OF SECTION 15(C)(1)(A) OF THE SECURITIES EXCHANGE ACT OF 1934 BY A NON-MEMBER FIRM DIRECT ACCESS CUSTOMER THAT MANIPULATED THE PRICE OF A LISTED SECURITY,CONSENT TO CENSURE, $450,000 FINE (THE AMOUNT TO BE PAID TO THE EXCHANGE BY THE FIRM TO BE REDUCED BY THE AMOUNT PAID BY THE FIRM PURSUANT TO AN AGREEMENT TO PAY A CIVIL MONETARY PENALTY OF $225,000 TO THE UNITED STATES TREASURY IN RELATED PROCEEDINGS BY THE SECURITIES AND EXCHANGE COMMISSION); AND AN UNDERTAKING THAT THE FIRM SHALL RETAIN AN INDEPENDENT CONSULTANT, NOT UNACCEPTABLE TO THE EXCHANGE, TO REVIEW AND PREPARE A REPORT OF THE FIRMS SYSTEMS AND PROCEDURES, INCLUDING RECOMMENDATIONS FOR ADDITIONAL SYSTEMS AND PROCEDURES, IF NECESSARY, REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH FEDERAL SECURITIES LAWS AND EXCHANGE RULES AND TO PREVENT RECURRENCE OF THE VIOLATIONS DESCRIBED IN THE HEARING PANEL DECISION. THE FIRM MAY SATISFY THE EXCHANGES REQUIREMENT IN THIS UNDERTAKING BY COMPLYING WITH THE REVIEW CONDUCTED AND THE REPORT PREPARED BY AN INDEPENDENT CONSULTANT IN ACCORDANCE WITH THE TERMS SET FORTH BY THE SECURITIES AND EXCHANGE COMMISSION IN RELATED PROCEEDINGS. Summary: **7/11/03**THE DECISION IS NOW FINAL AND EFFECTIVE IMMEDIATLY.CONTACT:EVELYN PENA 212-656-5211. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 11/25/2003 Initiated By: NEW YORK STOCK EXCHANGE Date initiated: 05/30/2003 Docket/ Case Number: HPD 03-108 Allegations: SEE RESPONSE TO QUESTION 13. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 07/11/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $225,000.00 NASD BrokerCheck October 12, 2005 Page 14 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Other Sanctions: THE FIRM CONSENTED TO AN UNDERTAKING TO RETAIN AN INDEPENDENT CONSULTANT TO REVIEW AND PREPARE A REPORT CONCERNING THE FIRM'S POLICIES AND PROCEDURES DESIGNED TO DETECT AND PREVENT MARKING THE CLOSE, AND TO MAKE APPROPRIATE RECOMMENDATIONS CONCERNING SAME. Resolution Details: $225,000 FINE WAS PAID TO THE NYSE ON AUGUST 8, 2003. Summary: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM ENTERED INTO A STIPULATION OF FACTS AND CONSENT TO PENALTY WITH THE NYSE CONCERNING CERTAIN TRADING ACTIVITY BY A DIRECT ACCESS CUSTOMER. THE FIRM CONSENTED TO FINDINGS THAT IT LACKED ADEQUATE PROCEDURES TO DETECT AND PREVENT MARKING THE CLOSE AND DID NOT REASONABLY SUPERVISE EMPLOYEES WITH A VIEW TOWARD DETECTING AND PREVENTING MARKING THE CLOSE. THE FIRM CONSENTED TO A CENSURE, A FINE AND AN UNDERTAKING TO RETAIN AN INDEPENDENT CONSULTANT TO REVIEW THE FIRM?S POLICIES AND PROCEDURES DESIGNED TO DETECT AND PREVENT MARKING THE CLOSE. ******* REGULATORY ACTION (10 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 04/03/2003 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 03/26/2003 Docket/ Case Number: CMS030059 Allegations: NASD CONDUCT RULE 3370 AND MARKETPLACE RULE 4632(A)(9) - RESPONDENT MEMEBER SPEAR, LEEDS & KELLOGG, L.P., EXECUTED SALE ORDERS IN CERTAIN SECURITIES AND FAILED TO MAKE AFFIRMATIVE DETERMINATION PRIOR TO EXECUTING SUCH TRANSACTIONS. RESPONDENT MEMEBER DESIGNATED AS "P.R.P" THROUGH ACT LAST SALE REPORTS OF TRANSACTIONS IN NNM SECURITIES. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/26/2003 Sanctions Ordered: Monetary/Fine Monetary Amount: $4,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT SPEAR, LEEDS & KELLOGG, L.P. CONSENTED TO THE FINDING OF THE ALLEGATIONS AND TO THE FOLLOWING SANCTIONS: FINED $4,000.00. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/16/2003 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. ("NASD") Date initiated: 02/05/2003 Docket/ Case Number: CMS030059AWC Allegations: SPEAR, LEEDS & KELLOGG, LP ("SLK")ALLEGEDLY VIOLATED NASD CONDUCT RULE 3370 BY FAILING TO MAKE AN AFFIRMATIVE DETERMINATION PRIOR TO EXECUTING 4 SHORT SALES IN CERTAIN SECURITIES AND SLK ALLEGEDLY VIOLATED NASD MARKEPLACE RULE 4632(A)(9) BY INCORRECTLY DESIGNATING AS "PRP" THROUGH ACT 21 SALE REPORTS IN TRANSACTIONS OF NNM SECURITIES. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/27/2003 NASD BrokerCheck October 12, 2005 Page 15 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Sanctions Ordered: Monetary/Fine Monetary Amount: $4,000.00 Resolution Details: SLK WAS FINED A TOTAL OF $4000.00(COMPRISED OF A $2000.00 FINE FOR A VIOLATION OF THE TRANSACTION REPORTING RULES A ND A $2000.00 FINE FOR THE VIOLATION OF NASD CONDUCT RULE 3370) Summary: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SLK SIGNED AN AWC AND PAID A FINE OF $4000.00 ******* REGULATORY ACTION (11 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 03/20/2003 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 03/13/2003 Docket/ Case Number: CMS030042 Allegations: NASD CONDUCT RULES 2110 AND MARKETPLACE RULES 6955, 6955(A) - THE RESPONDENT MEMBER ("FIRM") TRANSMITTED TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE, OR IMPROPERLY FORMATED DATA. SPECIFICALLY, THE REPORTS CONTAINED AN INACCURATE MARKET PARTICIPANT IDENTIFICATION ("MPID"). THE FIRM ALSO FAILED TO REPORT ALL APPLICABLE ORDER INFORMATION REQUIRED TO BE RECORDED UNDER NASD MARKETPALCE RULE 6954 TO OATS, AND FAILED TO REPORT TO OATS, BY THE DEADLINE, REPORTABLE ORDER EVENTS. THE FIRM TRANSMITTED TO OATS NEW ORDER REPORTS CONTAINING INACCURATE DATA AS TO: LIMIT ORDER DISPLAY INDICATOR; METHOD OF RECEIPT; AND THE PROGRAM TRADING AND ARBITRAGE CODES. THE FIRM TRANSMITTED TO OATS NEW ORDER REPORTS THAT OMITTING: DATA AS TO ACCOUNT TYPE; AND THE RECEIVING TERMINAL ID AND/OR THE RECEIVING DEPARTMENT ID FOR ORDERS RECEIVED DIRECTLY FROM A CUSTOMER AND CAPTURED ELECTRONICALLY. THE FIRM IMPROPERLY TRANSMITTED EXECUTION REPORTS TO OATS FOR ORDERS ENTERED DIRECTLY INTO FIRM'S PROPRIETARY ORDER MANAGEMENT SYSTEM BY OTHER MEMBER FIRMS. THE FIRM FAILED TO TRANSMIT TO OATS ROUTE REPORTS FOR ORDERS ENTERED DIRECTLY INTO ITS PROPRIETARY ORDER MANAGEMENT SYSTEM BY OTHER MEMBER FIRM. THE FIRM TRANSMITTED TO OATS NEW ORDER REPORTS CONTAINING INACCURATE ROUTING FIRM MPID FOR ORDERS ENTERED DIRECTLY INTO ITS PROPRIETARY ORDER MANAGEMENT SYSTEM BY OTHER MEMBER FIRMS. THE FIRM ALSO FAILED TO TRANSMIT TO OATS THE ROUTING FIRM MIPDS FOR ORDERS RECEIVED FROM OTHER MEMBERS. THE FIRM TRANSMITTED TO OATS NEW ORDER REPORTS CONTAINING INACCURATE OR OMITTED RECEIVING FIRM MPIDS FOR ORDERS ENTERED DIRECTLY INTO ITS PROPRIETARY ORDER MANAGEMENT SYSTEM BY OTHER MEMBER FIRMS. THE FIRM FAILED TO TRANSMIT TO OATS CANCEL/REPLACE REPORTS ON 107 CONSECUTIVE BUSINESS DAYS. THE FIRM ENTERED INTO AN AGREEMENT WITH ANOTHER FIRM ("MEMBER FIRM") AND AGREED TO FULFILL MEMBER FIRM'S OBLIGATIONS UNDER NASD MARKETPLACE RULE. (SEE ITEM #13) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/13/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $67,500.00 Other Sanctions: UNDERTAKING. Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED, FINED $67,500, AND REQUIRED TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING OATS WITHIN 30 BUSINESS DAYS. Summary: THE FIRM, ON BEHALF OF MEMBER FIRM, FAILED TO REPORT TO OATS, BY THE DEADLINE, REPORTABLE ORDER EVENTS THAT MEMBER FIRM WAS REQUIRED TO REPORT TO OATS. THE FIRM'S SUPERVISORY SYSTEM, AND IT RELATED TO ITS AGREEMENT WITH ANOTHER MEMBER FIRM, DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND NASD BrokerCheck October 12, 2005 Page 16 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) REGULATIONS CONCERNING OATS. SPECIFICALLY, THE FIRM'S SUPERVISORY SYSTEM DID NOT INCLUDE WRITTEN SUPERVISORY PROCEDURES PROVIDING FOR (I) THE IDENTIFICATION OF THE PERSON(S) RESPONSIBLE AT THE FIRM TO ENSURE COMPLIANCE WITH THE APPLICABLE RULES; (II) A STATEMENT OF THE STEP(S) THAT SUCH PERSON(S) SHOULD TAKE TO ENSURE COMPLIANCE THEREWITH; (III) A STATEMENT AS TO HOW OFTEN SUCH PERSON(S) SHOULD TAKE SUCH STEP(S); AND (IV) A STATEMENT AS TO HOW ENFORCEMENT OF SUCH WRITTEN SUPERVISORY PROCEDURES SHOULD BE DOCUMENTED AS THE FIRM. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/16/2003 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. ("NASD") Date initiated: 01/15/2003 Docket/ Case Number: CMS030042AWC Allegations: SPEAR, LEEDS & KELLOGG LP("SLK")ALLEGEDLY VIOLATED NASD RULES 2110 AND MARKETPLACE RULES 6955(A) BY TRANSMITTING TO OATS REPORTS THAT CONTAINED INACCURATE, INCOMPLETE OR IMPROPERLY FORMATTED DATA. SLK ALSO FAILED TO REPORT ALL APPLICABLE ORDER INFORMATION REQUIRED TO BE REPORTED UNDER NASD MARKETPLACE RULE 6954. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 03/13/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $67,500.00 Resolution Details: SLK WAS CENSURED AND FINED $67 500.00 (COMPROSED OF A $15000.00 FINE FOR THE SUPERVISION VIOLATIONS AND A $52500.00 FINE FOR THE OATS VIOLATION). Summary: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, SLK SIGNED AN AWC AND PAID A FINE OF $67500.00 ******* REGULATORY ACTION (12 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 01/17/2003 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/03/2003 Docket/ Case Number: CMS020252 Allegations: NASD CONDUCT RULE 3350 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT MEMBER CONSENTED TO THE ENTRY OF FINDINGS THAT IT EXECUTED SHORT SALE TRANSACTIONS IN NASDAQ NATIONAL MARKET SECURITIES AT OR BELOW THE CURRENT INSIDE BID WHEN THE CURRENT INSIDE BID WAS BELOW THE PRECEDING INSIDE BID IN THE SECURITY. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/03/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: A CENSURE AND A $7,500 FINE. Summary: NASD BrokerCheck October 12, 2005 Page 17 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 01/15/2003 Initiated By: NASD Date initiated: 10/25/2002 Docket/ Case Number: CMS020252 AWC Allegations: DURING THE PERIOD OF 3/1/2001 THROUGH 6/30/2001, SILK EXECUTED 50 SHORT SALE TRANSACTIONS IN CERTAIN SECURITIES, ALL OF WHICH WERE NASDAQ NATIONAL MARKET SECURITIES, AT OR BELOW THE CURRENT INSIDE BID WHEN THE CURRENT INSIDE BID WAS BELOW THE PRECEDING INSIDE BIG IN THE SECURITIY. THIS CONDUCT IS A VIOLATION OF NASD CONDUCT RULE 3350. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/06/2003 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: SEE ABOVE Summary: SEE ABOVE ******* REGULATORY ACTION (13 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/19/2002 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/08/2002 Docket/ Case Number: CMS020124 Allegations: NASD RULES 2110, 3010, 3320, 3340, 3370, 4613(B)&(B)(2), 4613(E)&(E)(1)(C) AND SEC RULES 11AC1-1 & 4 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT CONSENTED TO THE ENTRY OF FINDINGS THAT IT FAILED TO DISPLAY IMMEDIATELY THE CUSTOMER LIMIT ORDERS IN NASDAQ SECURITIES IN ITS PUBLIC QUOTATION, WHEN EACH SUCH ORDER WAS AT A PRICE THAT WOULD HAVE IMPROVED THE FIRM'S BID OR OFFER IN EACH SUCH SECURITY; OR WHEN THE ORDER WAS PRICED EQUAL TO THE FIRM'S BID OR OFFER AND THE NATIONAL BEST BID OR OFFER IN SUCH SECURITY, AND THE SIZE OF THE ORDER REPRESENTED MORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZE ASSOCIATED WITH ITS BID OR OFFER IN EACH SUCH SECURITY. FIRM, A NON-MARKET MAKER, EXECUTED SHORT SALE TRANSACTIONS ON A RISKLESS PRINCIPAL BASIS AND FAILED TO MAKE AN AFFIRMATIVE DETERMINATIONS PRIOR TO EXECUTING SUCH TRANSACTIONS. FIRM, A MARKET MAKER IN SECURITIES, WITHOUT MAKING REASONABLE EFFORTS TO AVOID A LOCKED OR CROSSED MARKET BY EXECUTING TRANSACTIONS WITH ALL MARKET MAKERS WHOSE QUOTATIONS WOULD BE LOCKED/CROSSED, ENTERED BID OR ASKED QUOTATIONS IN THE NASDAQ STOCK MARKET, WHICH CAUSED A LOCKED OR CROSSED MARKET CONDITION TO OCCUR IN EACH INSTANCE. FIRM ALSO CAUSED A LOCKED/CROSSED MARKET CONDITION PRIOR TO THE MARKET OPENING BY, ENTERING A BID (ASK) QUOTATION THAT LOCKED/CROSSED ANOTHER MARKET MAKER'S QUOTATIONS WITHOUT IMMEDIATELY THEREAFTER SENDING THROUGH SELECTNET TO THE MARKET MAKER(S) WHOSE QUOTES IT LOCKED/CROSSED A TRADE-OR-MOVE MESSAGE THAT WAS AT THE RECEIVING MARKET MAKER'S QUOTED PRICE AND WHOSE AGGREGATE SIZE WAS AT LEAST 5,000 SHARES. FIRM RECEIVED AN ORDER TO BUY OR SELL THROUGH SELECTNET FOR AT LEAST ONE NORMAL UNIT OF TRADING GREATER THAN ITS PUBLISHED QUOTATION SIZE AT THE TIME OF RECEIPT OF SUCH ORDER, EXECUTED A TRANSACTION IN AN AMOUNT OF SHARES LESS THAN THE SIZE OF THE ORDER, AND, AFTER SUCH EXECUTION, FAILED TO IMMEDIATELY DISPLAY A REVISED QUOTATION AT A PRICE - [SEE ITEM NO. 13 FOR FURTHER ALLEGTION]. NASD BrokerCheck October 12, 2005 Page 18 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 07/08/2002 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $156,000.00 Resolution Details: A CENSURE AND A $156,000 FINE (COMPOSED OF A $10,000 FINE FOR THE VIOLATIONS OF THE TRADE-OR-FADE RULE, A $10,000 FINE FOR THE VIOLATIONS OF THE SEC'S AND NASD'S FIRM QUOTE RULES, A $5,000 FINE FOR TRADING DURING A TRADING HALT, A $10,000 FINE FOR THE SUPERVISION VIOLATIONS, A $60,000 FINE FOR THE VIOLATIONS OF THE LOCKED/CROSSED MARKET RULE, A $50,000 FOR THE VIOLATIONS OF TRADE-OR-MOVE RULE, A $10,000 FINE FOR THE VIOLATIONS OF SEC RULE 11AC1-4, AND A $1,000 FINE FOR THE VIOLATIONS OF NASD CONDUCT RULE 3370). WITHIN 30 BUSINESS DAYS OF ACCEPTANCE OF THIS AWC BY THE NASD, A REGISTERED PRINCIPAL OF THE RESPONDENT SHALL SUBMIT TO NASD, A SIGNED, DATED LETTER, PROVIDING THE FOLLOWING INFORMATION: (1) A REFERENCE TO THIS MATTER; (2) A REPRESENTATION THAT THE FIRM HAS REVISED ITS WRITTEN SUPERVISORY PROCEDURES; AND, (3) THE DATE THE REVISED PROCEDURES WERE IMPLEMENTED. Summary: THAT WAS INFERIOR TO ITS PREVIOUS PUBLISHED QUOTATION. FIRM FAILED TO EXECUTE THE ORDERS UPON PRESENTMENT AND THEREBY FAILED TO HONOR ITS PUBLISHED QUOTATION. FIRM EFFECTED TRANSACTIONS IN SECURITIES LISTED ON THE NASDAQ STOCK MARKET WHILE A TRADING HALT WAS IN EFFECT WITH RESPECT TO SUCH SECURITIES. FIRM WAS A PARTY TO A LOCKED OR CROSSED MARKET CONDITION PRIOR TO THE MARKET OPENING AND RECEIVED A TRADE-OR-MOVE MESSAGE IN EACH INSTANCE THROUGH SELECTNET. FIRM, WITHIN 30 SECONDS OF RECEIVING SUCH MESSAGE, FAILED TO FILL THE INCOMING TRADE-OR-MOVE MESSAGE FOR THE FULL SIZE OF THE MESSAGE OR MOVE ITS BID DOWN (OFFER UP) BY A QUOTATION INCREMENT THAT WOULD HAVE UNLOCKED/UNCROSSED THE MARKET. THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO THE APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING THE DESIGNATION OF SUPERVISORY PERSONAL, ACT COMPLIANCE, THE DUTY OF BEST EXECUTION, LIMIT ORDER PROTECTION, ORDER HANDLING RULES, ONE PERCENT RULE, REGISTRATION OF TRADERS AND SUPERVISORS, TRANSACTION REPORTING, SOES, RECORD KEEPING, LOCKED/CROSSED MARKETS, ANTI-COMPETITIVE PRACTICES, INFORMATION BARRIERS, SHORT SALES, AND THE OBLIGATION TO REGULARLY AND RIGOROUSLY ASSESS THE QUALITY OF COMPETING MARKETS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 07/24/2002 Initiated By: NASD REGULATION, INC. Date initiated: 04/15/2002 Docket/ Case Number: CMS-020124 AWC Allegations: A CENSURE AND A $156,000 FINE (COMPOSED OF A $10,000 FINE FOR THE VIOLATIONS OF THE TRADE-OR-FADE RULE, A $10,000 FINE FOR THE VIOLATIONS OF THE SEC'S AND NASD'S FIRM QUOTE RULES, A $5,000 FINE FOR THE TRADING DURING A TRADING HALT, A $10,000 FINE FOR THE SUPERVISION VIOLATIONS, A $60,000 FINE FOR THE VIOLATIONS OF THE LOCKED/CROSSED MARKET RULE, A $50,000 FINE FOR THE VIOLATIONS OF THE TRADE-OR-MOVE RULE, A $10,000 FINE FOR THE VIOLATIONS OF SEC RULE 11AC1-4, AND A $1,000 FINE FOR THE VIOLATIONS OF NASD CONDUCT RULE 3370). Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 07/08/2002 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $156,000.00 Other Sanctions: SEE ABOVE Resolution NASD BrokerCheck October 12, 2005 Page 19 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Details: SEE ABOVE Summary: SEE ABOVE. ******* REGULATORY ACTION (14 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 05/08/2002 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 04/29/2002 Docket/ Case Number: CMS020074 Allegations: NASD RULES 2110, 3010, 6955(A) AND 6955(B)(2) - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT CONSENTED TO THE ENTRY OF FINDINGS THAT IT FAILED TO TRANSMIT TO OATS REPORTS CONTAINING EACH APPLICABLE ITEM OF ORDER INFORMATION IDENTIFIED IN NASD MARKETPLACE RULE 6954. SPECIFICALLY, RESPONDENT FIRM DID NOT INCLUDE A ROUTED ORDER ID IN NEW ORDER REPORTS FOR ORDERS RECEIVED ELECTRONICALLY FROM OTHER MEMBERS. RESPONDENT FIRM TRANSMITTED TO OATS NEW ORDER REPORTS CONTAINING INACCURATE DATE AS TO METHOD OR RECEIPT AND ACCOUNT TYPE. THE RESPONDENT FIRM ALSO FAILED TO TRANSMIT TO OATS ROUTE REPORTS FOR ORDERS ROUTED TO OTHER MEMBERS. THE RESPONDENT FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TO APPLICABLE SECURITIES LAWS AND REGULATIONS CONCERNING THE OATS RULES. SPECIFICALLY, THE FIRM?S SUPERVISORY SYSTEM DID NOT INCLUDE WRITTEN SUPERVISORY PROCEDURES PROVIDING FOR THE IDENTIFICATION OF THE PERSON RESPONSIBLE AT THE FIRM TO ENSURE COMPLIANCE WITH THE APPLICABLE RULES; A STATEMENT OF THE STEPS THAT SUCH PERSON SHOULD TAKE TO ENSURE COMPLIANCE; A STATEMENT AS TO HOW OFTEN SUCH PERSON SHOULD TAKE SUCH STEPS; AND A STATEMENT AS TO HOW ENFORCEMENT OF SUCH WRITTEN SUPERVISORY PROCEDURES SHOULD BE DOCUMENTED AT THE FIRM. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 04/29/2002 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $70,000.00 Other Sanctions: UNDERTAKING. Resolution Details: A CENSURE AND A $70,000 FINE (COMPOSED OF A $30,000 FINE FOR THE OATS VIOLATIONS AND A $40,000 FINE FOR THE SUPERVISION VIOLATIONS). WITHIN 30 DAYS OF ACCEPTANCE OF THIS AWC BY NASD, A REGISTERED PRINCIPAL OF RESPONDENT FIRM SHALL SUBMIT TO THE NASD, A SIGNED, DATED LETTER, PROVIDING THE FOLLOWING INFORMATION: (1) A REFERENCE TO THIS MATTER; (2) A REPRESENTATION THAT THE RESPONDENT FIRM HAS REVISED ITS WRITTEN SUPERVISORY PROCEDURES; AND (3) THE DATE THE REVISED PROCEDURES WERE IMPLEMENTED. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 05/14/2002 Initiated By: NASD REGULATION, INC. Date initiated: 01/25/2002 Docket/ Case Number: CMS020074 AWC Allegations: VIOLATION OF NASD MARKETPLACE RULE 6955(A). VIOLATION OF NASD MARKETPLACE RULE 6955(B)(2). VIOLATION OF NASD CONDUCT RULES 2110 AND 3010. Current Status: Final NASD BrokerCheck October 12, 2005 Page 20 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 04/29/2002 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $70,000.00 Resolution Details: A CESURE AND A $70,000.00 FINE (COMPOSED OF A $30,000 FINE FOR THE OATS VIOLATIONS AND A $40,000 FINE FOR THE SUERVISION VIOLATION. Summary: FROM 05/05/1999 THROUGH 10/18/2000, SLKC FAILED TO TRANSMIT TO OATS REPORTS CONTAINING EACH APPLICABLE ITEM OF ORDER INFORMATION IDENTIFIED IN NASD MARKETPLACE RULE 6954. SPECIFICALLY SLKC DID NOT INCLUDE A ROUTED ORDER ID IN NEW ORDER REPROTS FOR ORDERS RECEIVED ELECTRONICALLY FROM OTHER MEMBERS DURING THAT PERIOD. DURING THAT PERIOD OF TIME, MOST OF SLKC'S ORDERS FOR NASDAQ SECURITIES WERE RECEIVED ELECTRONICALLY. FROM 05/05/1999 TO 02/01/2000, SLKC TRANSMITTED TO OATS NEW ORDER REPORTS CONTAINING INACCURATE DATA AS TO METHOD OF RECEIPT AND ACCOUNT TYPE.(VIOLATION OF NASD MARKETPLACE RULE 6955(A)). FROM 11/16/1999 TO 12/31/1999 SLKC FAILED TO TRANSMIT TO OATS ROUTE REPROTS FOR ORDERS ROUTED TO OTHER MEMBERS DURING THAT PERIOD. (VIOLATION OF NASD MARKETPLACE RULE 6955(B)(2)). FROM 07/01/1999 THROUGH 10/31/2000, NO ONE INDIVIDUAL AT SLKC HAD DIRECT SUPERVISORY RESPONSIBILITY WITH RESPECT TO COMPLIANCE WITH THE OATS REPORTING RULES. (VIOLATION OF NASD CONDUCT RULES 2110 & 3010). ******* REGULATORY ACTION (15 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 01/03/2002 Initiated By: NYSE DIVISION OF ENFORCEMENT Date initiated: 08/13/2001 Docket/ Case Number: HPD#: 01-199 Allegations: **8/13/2001**EXECUTION OF STIPULATION AND CONSENT THE DIVISION OF ENFORCEMENT OF THE NEW YORK STOCK EXCHANGE AND SPEAR, LEEDS & KELLOGG, L.P. ("THE FIRM") ENTERED INTO A STIPULATION AND CONSENT.WITHOUT ADMITTING OR DENYING GUILT, THE FIRM STIPULATES THAT IT:1.VIOLATED EXCHANGE RULE 431(F)(8) BY EMPLOYING AN INCORRECT FORMULA TO DETERMINE DAY TRADING MARGIN CALLS AND ISSUING DEFICIENT MARGIN CALL IN CERTAIN DAY TRADING ACCOUNTS;2.VIOLATED SECTION 220.6(C) OF REGULATION T PROMULGATED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BY FAILING TO REQUIRE ADEQUATE FUNDS IN PRIME BROKERAGE ACCOUNTS;3.VIOLATED EXCHANGE RULE 342 BY NOT MAINTAINING APPROPRIATE PROCEDURES FOR SUPERVISION AND CONTROL OF ITS MARGIN DEPARTMENT. PURSUANT TO THIS STIPULATION, THE FIRM AGREES TO THE IMPOSITION BY THE EXCHANGE OF THE PENALTY OF: 1.A CENSURE; AND 2.A FINE IN THE AMOUNT OF $175,000. Current Status: Final Resolution: Decision Resolution Date: 12/20/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $175,000.00 Resolution Details: **11/20/2001**DECISION #01-199 ISSUED BY THE NYSE HEARING BOARD ON 11/07/01 THE DIVISION OF ENFORCEMENT OF THE NEW YORK STOCK EXCHANGE AND SPEAR, LEEDS & KELLOGG, L.P. (THE "FIRM") ENTERED INTO A STIPULATION AND CONSENT, WHICH WAS ACCEPTED BY THE EXCHANGE HEARING PANEL.WITHOUT ADMITTING OR DENYING GUILT, THE FIRM CONSENTS TO:A. FINDINGS BY THE HEARING PANEL THAT IT: 1. VIOLATED EXCHANGE RULE 431(F)(8) BY EMPLOYING AN INCORRECT FORMULA TO DETERMINE DAY TRADING MARGIN CALLS AND ISSUING DEFICIENT MARGIN CALLS IN CERTAIN DAY TRADING ACCOUNTS;2. VIOLATED SECTION 220.6(C) OF REGULATION T PROMULGATED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BY FAILING TO REQUIRE ADEQUATE FUNDS IN PRIME BROKERAGE ACCOUNTS;3. NASD BrokerCheck October 12, 2005 Page 21 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) VIOLATED EXCHANGE RULE 342 BY NOT MAINTAINING APPROPRIATE PROCEDURES FOR SUPERVISION AND CONTROL OF ITS MARGIN DEPARTMENT.B. THE IMPOSITION BY THE EXCHANGE OF THE PENALTY OF:1. A CENSURE; AND 2. A FINE IN THE AMOUNT OF $175,000. Summary: **12/20/2001** THE DECISION IS NOW FINAL AND EFFECTIVE IMMEDIATELY. CONTACT:PEGGY GERMINO 212-656-8450 *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 01/15/2002 Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 10/05/1998 Docket/ Case Number: 01-199 Allegations: 1. THE FORMULA USED TO DETERMINE DAY TRADING MARGIN CALLS AND MARGIN CALLS IN CERTAIN DAY TRADING ACCOUNTS (EXCHANGE RULE 431(F)(8)(B), 2. NET EQUITY REQUIRED FOR CERTAIN PRIME BROKERAGE ACCOUNTS (REG. T SECTION 220.6(C), AND 3. PROCEDURES FOR THE SUPERVISION AND CONTROL OF THE FIRM'S MARGIN DEPARTMENT (EXCHANGE RULE 342) WITH RESPECT TO (1) AND (2) ABOVE. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 12/20/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $175,000.00 Resolution Details: $175,000.00 FINE LEVIED AGAINST THE FIRM. THE FINE WAS PAID ON 01/15/2002 Summary: SEE ABOVE. ******* REGULATORY ACTION (16 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 11/29/2001 Initiated By: AMERICAN STOCK EXCHANGE, LLC Date initiated: 08/22/2001 Docket/ Case Number: 95-025, 99-015 Allegations: AN AMEX DISCIPLINARY PANEL FOUND THAT SPEAR, LEEDS & KELLOGG VIOLATED EXCHANGE SUPERVISORY RULES BY FAILING TO REASONABLY SUPERVISE ITS FORMER MANAGING DIRECTOR IN CHARGE OF THE FIRM'S CLEARANCE OPERATIONS ON THE EXCHANGE FLOOR. IN ADDITION, SPEAR, LEEDS VIOLATED EXCHANGE RULES REQUIRING ADHERENCE TO PRINCIPLES OF GOOD BUSINESS PRACTICE. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 11/08/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $1,000,000.00 Other Sanctions: IN ADDITION TO THE ABOVE CENSURE AND $1,000,000 FINE, SPEAR, LEEDS & KELLOGG WAS ALSO ORDERED TO CONDUCT A REVIEW OF ITS AMEX OPERATIONS AND TO ADOPT NEW SUPERVISORY RULES. Resolution Details: SPEAR, LEEDS & KELLOGG WAS FINED $1 MILLION DOLLARS FOR FAILING TO SUPERVISE ITS FORMER MANAGING DIRECTOR IN CHARGE OF THE FIRM'S CLEARANCE AND SPECIALIST OPERATIONS ON THE FLOOR OF THE NASD BrokerCheck October 12, 2005 Page 22 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) EXCHANGE, AND ADOPT SUPERVISORY PROCEDURES FOR CERTAIN BUSINESS UNITS OF THE FIRM WITH RESPECT TO THEIR EXCHANGE ACTIVITIES. Summary: IF YOU SHOULD HAVE ANY QUESTIONS, PLEASE CONTACT THE ENFORCEMENT DEPARTMENT OF THE AMERICAN STOCK EXCHANGE. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 12/06/2001 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 09/19/2000 Docket/ Case Number: 92-025 AND 99-015 Allegations: FAILURE TO SUPERVISE AN ASSOCITED PERSON AND MAINTAIN AND ENFORCE REASONABLE SUPERVISORY PROCEDURES AND SYSTEMS. Current Status: Final Resolution: Stipulation and Consent Resolution Date: 11/16/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $1,000,000.00 Other Sanctions: THE FIRM AGREED TO AN UNDERTAKING TO CONTINUE ITS ONGOING REVIEW OF THE SUPERVISION OF ITS CLEARANCE AND SPECIALIST OPERATIONS ON THE AMEX FLOOR AND TO DEVELOP REASONABLE WRITTEN SUPERVISORY PROCEDURECS FOR CERTAIN OF ITS AMEX RELATED BUSINESS ACTIVITIES. Resolution Details: ONE MILLION DOLLARS ($1,000,000.00) FINE LEVIED AGAINST APPLICANT. Summary: WITHIN 120 DAYS FFOM THE DATE THE DECISION OF THE DISCIPLINARY PANEL ACCEPTING THE STIPULATION OF FACTS AND CONSENT TO PENALTY BECOMES FINAL, THE FIRM SHALL FURNISH THE EXCHANGE WITH A WRITTEN REPORT DETAILING ITS FINDINGS CONCERNING RELEVANT SUPERVISORY ISSUES. ******* REGULATORY ACTION (17 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 11/06/2001 Initiated By: CHICAGO BOARD OPTIONS EXCHANGE Date initiated: 07/05/2001 Docket/ Case Number: 01-0003 AND 01-0008 Allegations: SEE SUMMARY Current Status: Final Resolution: Decision & Order of Offer of Settlement Resolution Date: 07/23/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $75,000.00 Other Sanctions: AN UNDERTAKING BY SLK TO DEVELOP AND IMPLEMENT COMPLIANCE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION AND WHICH ARE ACCEPTABLE TO THE REGULATORY SERVICES DIVISION. Resolution Details: THE SANCTION TO BE IMPOSED SHALL CONSIST OF A $75,000 FINE, A CENSURE, AND AN UNDERTAKING BY SLK TO DEVELOP AND IMPLEMENT NASD BrokerCheck October 12, 2005 Page 23 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) COMPLIANCE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION AND WHICH ARE ACCEPTABLE TO THE REGULATORY SERVICES DIVISION. Summary: SPEAR, LEEDS & KELLOGG ("SLK"), AN EXCHANGE MEMBER ORGANIZATION, WAS CENSURED AND FINED $75,000. IN ADDITION, SLK WAS ORDERED TO DEVELOP AND IMPLEMENT COMPLIANCE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION AND WHICH ARE ACCEPTABLE TO THE EXCHANGE'S REGULATORY SERVICES DIVISION. SLK PROVIDED ITS CUSTOMERS WITH DIRECT ACCESS TO RAES THROUGH SLK'S ORDER ROUTING SYSTEM AND SLK FAILED TO ADOPT, DEVELOP AND IMPLEMENT PROCEDURES REASONABLY DESIGNED TO PREVENT ACCESS TO ITS ORDER ROUTING SYSTEM FROM BEING USED TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION. AS A RESULT, CERTAIN OF SLK?S CUSTOMERS APPARENTLY USED THEIR DIRECT ACCESS TO RAES ON NUMEROUS OCCASIONS TO PLACE, AT OR ABOUT THE SAME TIME, MULTIPLE RAES ORDERS IN THE SAME OR SIMILAR OPTION SERIES THAT WERE SPLIT UP TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION IN CONTRAVENTION OF EXCHANGE RULES. (CBOE RULES 4.1- JUST AND EQUITABLE PRINCIPLES OF TRADE, 4.2 ? ADHERENCE TO LAW, 6.8(A)(I) ? RAES OPERATIONS IN EQUITY OPTIONS, 9.8 AND INTERPRETATION AND POLICY .02 ? SUPERVISION OF ACCOUNTS, REGULATORY CIRCULAR RG 97-98 ? RULES GOVERNING ENTRY OF ORDERS VIA RAES AND ELECTRONIC BOOK AND REGULATORY CIRCULAR RG 00-27 ? ACCESS TO RETAIL AUTOMATED EXECUTION SYSTEMS ("RAES").) *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 11/14/2001 Initiated By: CHICAGO BOARD OPTIONS EXCHANGE, INC. Date initiated: 07/05/2001 Docket/ Case Number: 01-0003 AND 01-0008 Allegations: VIOLATION OF EXCHANGE'S RULES 4.1, 4.2, 6.8 (A)(I) AND 9.8.02, REGULATORY CIRCULAR RG97-98 AND REGULATORY CIRCULAR RG00-27. SEE SUMMARY. Current Status: Final Resolution: Decision & Order of Offer of Settlement Resolution Date: 07/23/2001 Sanctions Ordered: Monetary/Fine Monetary Amount: $75,000.00 Other Sanctions: AN UNDERTAKING BY SLK TO DEVELOP AND IMPLEMENT COMPLIANCE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION AND WHICH ARE ACCEPTABLE TO THE REGULATORY SERVICES DIVISION. Resolution Details: THE SANCTION IMPOSED CONSISTED OF A $75,000.00 FINE, A CENSURE, AND AN UNDERTAKING BY SLK TO DEVELOP AND IMPLEMENT COMPLIANCE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION AND WHICH ARE ACCEPTABLE TO THE REGULATORY SERVICES DIVISION. Summary: SPEAR, LEEDS & KELLOGG ("SLK"), AN EXCHANGE MEMBER ORGANIZATION, WAS CENSURED AND FINED $75,000.00. IN ADDDITION, SLK WAS ORDERED TO DEVELOPE AND IMPLEMENT COMPLIANE PROCEDURES REASONABLY DESIGNED TO PREVENT A CUSTOMER FROM USING SLK'S ORDER ROUTING SYSTEM TO CIRCUMVENT THE RAES ORDER SIZE LIMIATION AND WHICH ARE ACCEPATBLE TO THE EXCHANGE'S REGULATORY SERVICES DIVISION. SLK PROVIDED ITS CUSTOMERS WITH DIRECT ACCESS TO RAES THROUGH SLK'S ORDER ROUTING SYSTEM AND SLK FAILED TO ADOPT, DEVELOP AND IMPLEMENT PROCEDURES REASONABLY DESIGNED TO PREVENT ACCESS TO ITS ORDER ROUTING SYSTEM FROM BEING USED TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION. AS A RESULT, CERTAIN SLK'S CUSTOMERS APPARENTLY USED THEIR DIRECT ACCESS TO RAES ON NUMEROUS OCCASIONS TO PLACE, AT OR ABOUT THE SAME TIME, MULTIPLE RAES ORDERS IN THE SAME OR SIMILAR OPTION SERIES THAT WERE SPLIT UP TO CIRCUMVENT THE RAES ORDER SIZE LIMITATION IN CONTRAVENTION OF EXCHANGE RULES. (CBOE RULES 4.1-JUST ANE EQUITABLE PRICIPLES OF TRADE, 4.2-ADHERENCE TO LAW, 6.8(A)(I)-RAES OPERATIONS IN EQUITY NASD BrokerCheck October 12, 2005 Page 24 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) OPTIONS, 9.8 AND INTERPRETATION AND POLICY .02-SUPERVISION OF ACCOUNTS, REGULATORY CIRCULAR RG 97-98-RULE GOVERNING ENTRY OF ORDERS VIA RAES AND ELECTRONIC BOOK AND REGULATORY CIRCULAR RG00-27-ACCESS TO RETAIL AUTOMATED EXECUTION SYSTEMS ("RAES"). ******* REGULATORY ACTION (18 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 08/30/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS Date initiated: 08/15/2001 Docket/ Case Number: CMS010123 Allegations: 08/30/01GS: NASD RULES 3320, 4613(B) AND SEC RULE 11AC1-1 - AS A REGISTERED MARKET MAKER IN SECURITIES, IT FAILED TO EXECUTE ORDERS PRESENTED AT THE FIRM'S PUBLISHED BID OR PUBLISHED OFFER IN AN AMOUNT UP TO ITS PUBLISHED QUOTATION SIZE, AND THEREBY, FAILED TO HONOR ITS PUBLISHED QUOTATION. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/15/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $50,000.00 Resolution Details: NONE Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 08/24/2001 Initiated By: NASD REGULATION, INC. Date initiated: 04/03/2001 Docket/ Case Number: CMS010123 AWC Allegations: VIOLATION OF NASD CONDUCT RULE 3320 VIOLATION OF NASD MARKETPLACE RULE 4613(B) VIOLATION OF SEC RULE 11AC1-1 Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/14/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $50,000.00 Resolution Details: SEE ABOVE. Summary: SEE ABOVE. ******* REGULATORY ACTION (19 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/12/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/02/2001 NASD BrokerCheck October 12, 2005 Page 25 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Docket/ Case Number: CMS010094 Allegations: NASD RULES 2110 AND 4613(E) - RESPONDENT MEMBER, A MARKET MAKER IN SECURITIES, WITHOUT MAKING REASONABLE EFFORTS TO AVOID A LOCKED OR CROSSED MARKET BY EXECUTING TRANSACTIONS WITH ALL MARKET MAKERS WHOSE QUOTATIONS WOULD BE LOCKED OR CROSSED, ENTERED BID OR ASKED QUOTATIONS IN THE NASDAQ STOCK MARKET, INC. WHICH CAUSED A LOCKED OR CROSSED MARKET CONDITION TO OCCUR IN EACH INSTANCE; RESPONDENT MEMBER, A MARKET MAKER IN SECURITIES, WITHOUT MAKING REASONABLE EFFORTS TO AVOID A LOCKED OR CROSSED MARKET BY EXECUTING TRANSACTIONS WITH ALL MARKET MAKERS WHOSE QUOTATIONS WOULD BE LOCKED OR CROSSED, ENTERED (OR MAINTAINED) A BID OR ASKED QUOTATION IN THE NASDAQ STOCK MARKET, INC. DURING THE PERIOD OF TIME THAT SECONDARY TRADING COMMENCED IMMEDIATELY FOLLOWING THE COMPLETION OF AN INTIAL PUBLIC OFFERING OF THE SUBJECT SECURITY, WHICH CAUSED A LOCKED OR CROSSED MARKET CONDITION TO OCCUR IN EACH INSTANCE. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 07/02/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $30,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $30,000.00. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 07/18/2001 Initiated By: NASD REGULATION, INC. Date initiated: 08/30/2000 Docket/ Case Number: CMS010094 AWC Allegations: VIOLATION OF NASD MARKETPLACE RULE 4613(E) AND NASD CONDUCT RULE 2110. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 07/02/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $30,000.00 Resolution Details: SEE ABOVE. Summary: SEE ABOVE. ******* REGULATORY ACTION (20 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 06/07/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 05/11/2001 Docket/ Case Number: CMS010058 Allegations: NASD RULE4613(E) - RESPONDENT MEMBER, A MARKET MAKER IN SECURITIES, WITHOUT MAKING REASONABLE EFFORTS TO AVOID A NASD BrokerCheck October 12, 2005 Page 26 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) LOCKED OR CROSSED MARKET BY EXECUTING TRANSACTIONS WITH ALL MARKET MAKERS WHOSE QUOTATIONS WOULD BE LOCKED OR CROSSED, ENTERED BID OR ASK QUOTATIONS IN THE NASDAQ STOCK MARKET, INC. WHICH CAUSED A LOCKED OR CROSSED MARKET CONDITION TO OCCUR IN EACH INSTANCE. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 05/11/2001 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS FINED $5,000.00. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/26/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS Date initiated: 01/01/1999 Docket/ Case Number: CMS 010058 AWC Allegations: VIOLATION OF NASD RULE 4613(E) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 05/11/2001 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Other Sanctions: FINE. Resolution Details: FINE. Summary: SEE ABOVE. ******* REGULATORY ACTION (21 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 12/21/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 05/02/2001 Docket/ Case Number: CMS010054 Allegations: NASD RULES 2110 AND 3010 - IN APPROVING THE OPENING OF ACCOUNTS, THE FIRM DID NOT ENFORCE ITS WRITTEN SUPERVISORY PROCEDURES BY FAILING TO OBTAIN CERTAIN NEW ACCOUNT INFORMATION REQUIRED BY ITS WRITTEN PROCEDURES BEFORE OPENING NEW CUSTOMER ACCOUNTS AND FAILED TO DETECT THAT ITS TRADING DEPARTMENT HAD INITIATED QUOTATIONS IN SECURITIES WITHOUT THE FIRM'S WRITTEN APPROVAL. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 05/02/2001 Sanctions NASD BrokerCheck October 12, 2005 Page 27 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Ordered: Monetary/Fine, Censure Monetary Amount: $10,000.00 Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM, IS CENSURED AND FINED $10,000.00. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/06/2001 Initiated By: NASD REGULATION, INC. Date initiated: 12/19/2000 Docket/ Case Number: CMS010054 Allegations: VIOLATION OF NASD CONDUCT RULES 2110 AND 3010. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 05/02/2001 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $10,000.00 Resolution Details: SEE ABOVE. Summary: SEE ABOVE. ******* REGULATORY ACTION (22 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 03/23/2001 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 11/21/2000 Docket/ Case Number: CMS000242 Allegations: NASD RULE 2110 - VIOLATION OF SEC INITATE/RESUME RULE 15C2-11 IN THAT THE FIRM FAILED TO HAVE IN ITS RECORDS THE REQUIRED DOCUMENTATION; AND, FOLLOWING THE CONCLUDE OF AN SEC STOCK TRADING SUSPENSION, THE FIRM FAILED TO FILE A FORM 211 WITH THE NASD AT LEAST 3 BUSINESS DAYS BEFORE THE FIRM'S QUOTATIONS WERE PUBLISHED OR DISPLAYED IN A QUOTATION MEDIUM. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 11/21/2000 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Other Sanctions: UNDERTAKING. Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM, IS CENSURED, FINED $7,500.00, AND REQUIRED TO SUBMIT REVISED WRITTEN SUPERVISORY PROCEDURES WITHIN 60 DAYS. Summary: NASD BrokerCheck October 12, 2005 Page 28 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 01/02/2001 Initiated By: NASD REGULATION, INC. Date initiated: 07/10/2000 Docket/ Case Number: CMS000242 AWC Allegations: VIOLATION OF: SEC RULE 15C2-11 AND NASD CONDUCT RULE 2110. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 11/21/2000 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: CENSURE & FINE OF $7,500.00 Summary: SAME AS ABOVE. ******* REGULATORY ACTION (23 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 06/30/2000 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 06/30/2000 Docket/ Case Number: CMS000128 Allegations: NASD RULE 3360 - RESPONDENT FAILED TO TIMELY REPORT ITS SHORT INTEREST POSITIONS TO THE NASD. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 06/30/2000 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Other Sanctions: UNDERTAKING. Resolution Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT MEMBER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, THE FIRM, IS FINED $1000.00 AND REQUIRED TO REVISE ITS WRITTEN SUPERVISORY PROCEDURES RELATING TO COMPLIANCE WITH CONDUCT RULE 3360 WITHIN 30 BUSINESS DAYS. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NASD REGULATION, INC. Date initiated: 04/06/2000 Docket/ Case Number: CMS000128 AWC Allegations: VIOLATION OF NASD CONDUCT RULE 3360 (FAILURE TO TIMELY REPORT ITS SHORT INTEREST POSITIONS). NASD BrokerCheck October 12, 2005 Page 29 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 06/30/2000 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Other Sanctions: FIRM FINED $1,000.00. Resolution Details: FIRM FINED $1,000.00. Summary: SEE ABOVE. ******* REGULATORY ACTION (24 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 05/24/2000 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS Date initiated: 04/18/2000 Docket/ Case Number: CMS000070 Allegations: 05/18/00GS: NASD RULES 2110, 3010, 3360 - SHORT POSITION REPORTING VIOLATIONS; AND, FAILED TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE APPLICABLE RULES OF THE NASD CONCERNING SHORT ORDER REPORTING. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 04/18/2000 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $8,500.00 Other Sanctions: NONE Resolution Details: UNDERTAKE TO CONDUCT A PERIODIC REVIEW OF THE DOCUMENTATION THE FIRM RELIES UPON TO DETERMINE ITS SHORT INTEREST REPORTING TO ENSURE THAT IT ACCURATELY EFFECTS THE FIRM'S SHORT INTEREST POSITION. Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS Date initiated: 04/18/2000 Docket/ Case Number: CMS 000070 Allegations: VIOLATION OF NASD RULES 2110, 3010 AND 3360 - SHORT POSITION REPORTING VIOLATIONS AND FAILED TO ESTABLISH AND ENFORCE WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE APPLICABLE RULES OF THE NASD CONCERNING SHORT ORDER REPORTING. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 04/18/2000 Sanctions NASD BrokerCheck October 12, 2005 Page 30 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Ordered: Monetary/Fine, Censure Monetary Amount: $8,500.00 Resolution Details: UNDERTAKE TO CONDUCT A PERIODIC REVIEW OF THE DOCUMENTATION THE FIRM RELIES UPON TO DETERMINE ITS SHORT INTEREST REPORTING TO ENSURE THAT IT ACCURATELY EFFECTS THE FIRM'S SHORT INTEREST POSITION. Summary: SEE ABOVE. ******* REGULATORY ACTION (25 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: Initiated By: STATE OF CONNECTICUT DEPT. OF BANKING Date initiated: 03/28/2000 Docket/ Case Number: CO-00-5559-S Allegations: FROM AT LEAST JANUARY 1999 THROUGH JANUARY 2000, THE FIRM ALLEGEDLY TRANSACTED BUSINESS FROM 411 WEST PUTNAM AVE., SUITE 420, IN GREENWICH, CONNECTICUT WITHOUT REGISTERING THAT LOCATION AS A BRANCH OFFICE UNDER THE CONNECTICUT UNIFORM SECURITIES ACT. Current Status: Final Resolution: Consent Resolution Date: 03/28/2000 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Other Sanctions: IN ADDITION TO $5,000 FINE, THE FIRM WAS DIRECTED TO REIMBURSE THE DEPT. $1,500 FOR INVESTIGATIVE COSTS. Resolution Details: SEE ABOVE. MATTER RESOLVED VIA CONSENT ORDER DATED MARCH 28, 2000. Summary: SEE ABOVE FOR DETAILS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: STATE OF CONNECTICUT DEPARTMENT OF BANKING Date initiated: 03/28/2000 Docket/ Case Number: CO-00-5559-S Allegations: FROM AT LEASET 01/1999 THROUGH 01/2000, THE FIRM ALLEGEDLY TRANSACTED BUSINESS FROM 411 WEST PUTNAM AVE., SUITE 420 IN GREENWICH, CT WITHOUT REGISTERING THAT LOCATION AS A BRANCH OFFICE UNDER THE CONNECTICUT UNIFORM SECRITIES ACT. Current Status: Final Resolution: Consent Resolution Date: 03/28/2000 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Other Sanctions: IN ADDITION TO THE $5,000.00 FINE THE FIRM WAS DIRECTED TO REIMBURSE THE DEPARTMENT $1,500.00 FOR INVESTIGATIVE COSTS. Resolution Details: SEE ABOVE. NASD BrokerCheck October 12, 2005 Page 31 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: SEE ABOVE. ******* REGULATORY ACTION (26 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALER, INC. Date initiated: 12/14/1999 Docket/ Case Number: C05000001 Allegations: VIOLATION OF NASD MEMBERSHIP AND REGULATION RULE 1021(A) AND NASD CONDUCT RULE 2110 AND 3110. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/14/2000 Sanctions Ordered: Monetary/Fine Monetary Amount: $40,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (27 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 09/05/1995 Docket/ Case Number: CMS990137 AWC Allegations: VIOLATION OF NASD CONDUCT RULES 2110 & 3110 VIOLATION OF NASD MARKETPLACE RULE 4642(A); 6420; 6620(A); AND 4632(A) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 10/29/1999 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (28 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 11/06/1996 Docket/ Case Number: CMS-960191 NASD BrokerCheck October 12, 2005 Page 32 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Allegations: VIOLATION OF MARKETPLACE RULE 4613 Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 12/06/1996 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $22,500.00 Resolution Details: A CENSURE AND FINE OF $22,500.00. Summary: ******* REGULATORY ACTION (29 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE AND NEW YORK FUTURES EXCHANGE JOINTLY. Date initiated: 06/23/1993 Docket/ Case Number: F93-3 Allegations: VIOLATION OF NYFE RULE 203(B)AND 203(E). Current Status: Final Resolution: Decision Resolution Date: 06/23/1993 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $37,500.00 Resolution Details: NYFE DISCIPLINARY PANEL IMPOSED THE PENALTY OF A CENSURE AND A $37,500.00 FINE. Summary: ******* REGULATORY ACTION (30 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: SECURITIES AND EXCHANGE COMMISION Date initiated: 01/01/1982 Docket/ Case Number: D MSIC-82-27 Allegations: VIOLATION OF RULE 3, SEC. 4, WHICH REQUIRES PAYMENT OF SETTLEMENT OBLIGATIONS IN CLEARING HOUSE FUNDS ON SETTLEMENT DAY IN FEDERAL FUNDS THE FOLLOWING DAY. Current Status: Final Resolution: Decision Resolution Date: 06/25/1982 Sanctions Ordered: Monetary/Fine Monetary Amount: $50.00 Resolution Details: SEE ABOVE. NASD BrokerCheck October 12, 2005 Page 33 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: ******* REGULATORY ACTION (31 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/01/1988 Docket/ Case Number: N/A. Allegations: VIOLATION OF ESCHANGE RULES 5.08(B), 7.28 AND 7.28-B. Current Status: Final Resolution: Decision Resolution Date: 02/01/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $7,500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (32 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: PHILADELPHIA STOCK EXCHANGE, INC. Date initiated: 01/01/1991 Docket/ Case Number: N/A. Allegations: VIOLATION OF A-11 RESPONSIBILITY OF DISPLAYING BEST BIDS AND OFFERS IN AMERADA HESS CORP. Current Status: Final Resolution: Decision Resolution Date: 05/11/1991 Sanctions Ordered: Monetary/Fine Monetary Amount: $50.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (33 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: PHILADELPHIA STOCK EXCHANGE, INC. Date initiated: 01/01/1987 Docket/ Case Number: A-1 NASD BrokerCheck October 12, 2005 Page 34 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Allegations: VIOLATION OF RESPONSIBILITY OF DISPLAYING BEST BIDS AND OFFERS. Current Status: Final Resolution: Decision Resolution Date: 11/30/1987 Sanctions Ordered: Monetary/Fine Monetary Amount: $50.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (34 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 01/01/1988 Docket/ Case Number: N/A. Allegations: VIOLATION OF RULE 132.30. Current Status: Final Resolution: Decision Resolution Date: 01/26/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (35 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 01/01/1989 Docket/ Case Number: 90-36 Allegations: VIOLATION OF EXCHANGE RULE 104. Current Status: Final Resolution: Decision Resolution Date: 10/12/1989 Sanctions Ordered: Monetary/Fine Monetary Amount: $20,000.00 Resolution Details: SEE ABOVE. Summary: NASD BrokerCheck October 12, 2005 Page 35 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ******* REGULATORY ACTION (36 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/01/1986 Docket/ Case Number: MS 301 AWC Allegations: VIOLATION OF PART I, SECTION C.3 OF SCHEDULE D OF THE ASSOCIATION'S BY-LAW. Current Status: Final Resolution: Decision Resolution Date: 07/03/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (37 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK FUTURES EXCHANGE, INC. Date initiated: 01/01/1988 Docket/ Case Number: F88-17 Allegations: VIOLATION OF RULE 401. Current Status: Final Resolution: Settled Resolution Date: 03/29/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (38 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 06/11/1986 Docket/ Case Number: MS-352 AWC Allegations: VIOLATION OF PART I, SECTION C.3. (C) OF SCHEDULE D OF ASSOCIATION'S BY-LAWS. NASD BrokerCheck October 12, 2005 Page 36 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 06/18/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (39 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 01/01/1986 Docket/ Case Number: 87-5-2 Allegations: VIOLATION OF EXCHANGE RULE 980C. Current Status: Final Resolution: Decision Resolution Date: 11/05/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (40 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 08/19/1986 Docket/ Case Number: MS-403 AWC Allegations: VIOLATION OF PART I, SECTION C.3 (C) OF ASSOCIATION'S BY-LAWS (SCHEDULE D). Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/22/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (41 of 93) ******* NASD BrokerCheck October 12, 2005 Page 37 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 11/06/1996 Docket/ Case Number: CMS -- 960213 Allegations: TSCO VIOLATION OF MARKETPLACE RULE 4613(E). Current Status: Final Resolution: Settled Resolution Date: 05/01/1997 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $16,000.00 Other Sanctions: REQUIREMENT TO CONDUCT A RULE EDUCATION CLASS FOR TSCO TRADERS. Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (42 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK FUTURES EXCHANGE, INC. Date initiated: 01/25/1988 Docket/ Case Number: F88-18. Allegations: VIOLATION OF RULE 401. Current Status: Final Resolution: Settled Resolution Date: 03/29/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (43 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/27/1986 Docket/ Case Number: MS-252 AWC Allegations: VIOLATION OF PART I, SECTION C.3. (C) OF SCHEDULE D OF ASSOCIATION'S BY-LAWS. Current Status: Final NASD BrokerCheck October 12, 2005 Page 38 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 02/27/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (44 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: COMMIDITY EXCHANGE, INC. Date initiated: 02/03/1988 Docket/ Case Number: N/A. Allegations: VIOLATION OF RULE 4.89. Current Status: Final Resolution: Order Resolution Date: 02/04/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (45 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: PHILADELPHIA STOCK EXCHANGE, INC. Date initiated: 01/01/1989 Docket/ Case Number: 87-39 Allegations: VIOLATION OF RULE 1015, COMMENTARY .01, 1014(A) AND 1020(C). Current Status: Final Resolution: Decision Resolution Date: 02/22/1989 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (46 of 93) ******* NASD BrokerCheck October 12, 2005 Page 39 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: THE CHICAGO BOARD OF OPTIONS EXCHANGE, INC. Date initiated: 05/07/1991 Docket/ Case Number: 91-0030 Allegations: VIOLATION OF EXCHANGE RULES 4.11 AND 24.4(A). Current Status: Final Resolution: Settled Resolution Date: 06/03/1991 Sanctions Ordered: Monetary/Fine Monetary Amount: $2,355.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (47 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 03/03/1986 Docket/ Case Number: 86-D-04 Allegations: VIOLATION OF EXCHANGE RULE 904C. Current Status: Final Resolution: Settled Resolution Date: 12/16/1986 Sanctions Ordered: Monetary/Fine Monetary Amount: $5,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (48 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: CHICAGO BOARD OF OPTIONS EXCHANGE, INC. Date initiated: 10/10/1984 Docket/ Case Number: 85-0020 Allegations: VIOLATION OF EXCHANGE RULE 11.1. Current Status: Final Resolution: Settled Resolution Date: 04/25/1985 NASD BrokerCheck October 12, 2005 Page 40 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Sanctions Ordered: Monetary/Fine Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (49 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: CHICAGO BOARD OPTIONS EXCHANGE, INC. Date initiated: 02/06/1984 Docket/ Case Number: 84-0107. Allegations: VIOLATION OF RULE 11.1. Current Status: Final Resolution: Consent Resolution Date: 09/21/1984 Sanctions Ordered: Resolution Details: Summary: ******* REGULATORY ACTION (50 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 11/22/1978 Docket/ Case Number: 78-S-10 Allegations: VIOLATION OF EXCHANGE RULE 904. Current Status: Final Resolution: Decision Resolution Date: 12/12/1978 Sanctions Ordered: Resolution Details: Summary: ******* REGULATORY ACTION (51 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 02/01/1977 Docket/ NASD BrokerCheck October 12, 2005 Page 41 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Case Number: AWC-237 Allegations: VIOLATION OF PART III, SECTIONS 1, 21(A), 21(B), 31 AND 32 OF ASSOCIATION'S RULES OF FAIR PRACTICE. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 10/27/1977 Sanctions Ordered: Monetary/Fine Monetary Amount: $2,500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (52 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 01/01/1991 Docket/ Case Number: UNKNOWN. Allegations: VIOLATION OF RULE 104.10 Current Status: Final Resolution: Decision Resolution Date: 02/06/1991 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (53 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: COMMODITY EXCHANGE, INC. Date initiated: 01/01/1988 Docket/ Case Number: N/A. Allegations: VIOLATION OF RULE 4.82. Current Status: Final Resolution: Decision Resolution Date: 02/24/1988 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,500.00 Resolution Details: SEE ABOVE. NASD BrokerCheck October 12, 2005 Page 42 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: ******* REGULATORY ACTION (54 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/26/1999 Docket/ Case Number: MRD199802746 AND MRDTM19982984 Allegations: VIOLATION OF NASD CONDUCT RULE 2110 AND 3110. VIOLATION OF NASD MARKETPLACE RULE 4632(A), 4642(A), 6420(A) AND 6620(A). Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 02/03/1999 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (55 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 05/02/1985 Docket/ Case Number: MS-136 SC Allegations: VIOLATION OF PART I, SECTION C.3A OF SCHEDULE D OF ASSOCIATION'S BY-LAWS. Current Status: Final Resolution: Settled Resolution Date: 05/09/1985 Sanctions Ordered: Monetary/Fine Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (56 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK FUTURES EXCHANGE, INC. Date initiated: 01/01/1987 Docket/ Case Number: F87-14 NASD BrokerCheck October 12, 2005 Page 43 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Allegations: VIOLATION OF NYFE RULE 425. Current Status: Final Resolution: Settled Resolution Date: 09/21/1987 Sanctions Ordered: Monetary/Fine Monetary Amount: $150.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (57 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 04/17/1996 Docket/ Case Number: CMS -- 960069 Allegations: TSCO VIOLATED PART V, SECTION 2(D) OF THE ASSOCIATION'S BY-LAWS. Current Status: Final Resolution: Settled Resolution Date: 08/01/1997 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (58 of 93) ******* Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 12/18/1978 Docket/ Case Number: 79-D-8 Allegations: VIOLATION OF EXCHANGE RULES 411 AND 921(A), (B), AND (D). Current Status: Final Resolution: Decision Resolution Date: 12/05/1979 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $3,500.00 Resolution Details: SEE ABOVE. Summary: NASD BrokerCheck October 12, 2005 Page 44 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ******* REGULATORY ACTION (59 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 10/16/1985 Initiated By: CHICAGO BOARD OPTIONS EXCHANGE Date initiated: 01/10/1986 Docket/ Case Number: Allegations: Current Status: Final Resolution: Consent Resolution Date: 01/10/1986 Sanctions Ordered: Resolution Details: Summary: 1/10/86, RESPONDENT SPEAR, LEEDS & KELLOGG CONSENTED TO A FINE OF $1,000 BY THE CHICAGO BOARD OPTIONS EXCHANGE FOR VIOLATIONS OF EXCHANGE RULE 11.1. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: CHICAGO BOARD OF OPTIONS EXCHANGE, INC. Date initiated: 02/04/1985 Docket/ Case Number: 85-0090. Allegations: VIOLATION OF EXCHANGE RULE 11.1. Current Status: Final Resolution: Settled Resolution Date: 10/16/1985 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (60 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 09/24/1984 Initiated By: PHILADELPHIA STOCK EXCHANGE Date initiated: 09/24/1984 Docket/ Case Number: Allegations: Current Status: Final Resolution: Decision NASD BrokerCheck October 12, 2005 Page 45 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution Date: 09/24/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: Summary: IN A DECISION DATED 9/24/84 THE PHILADELPHIA STOCK EXCHANGE FINED SPEAR LEEDS & KELLOGG $1,000 FOR VIOLATIONS OF EXCHANGE RULE 1001 IN THAT ON OR ABOUT 5/30/84 THE PROPRIETARY ACCOUNT HELD, CONTROLLED OR WAS OBLIGATED WITH RESPECT TO AN AGGREGATE OF MORE THAN 2,500 CNV OPTION CONTRACTS ON THE SAME SIDE OF THE MARKET. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: PHILADELPHIA STOCK EXCHANGE, INC. Date initiated: 07/09/1984 Docket/ Case Number: 84-8 Allegations: VIOLATION OF RULE 1001. Current Status: Final Resolution: Settled Resolution Date: 09/24/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (61 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 08/22/1997 Initiated By: CBOE Date initiated: 08/22/1997 Docket/ Case Number: 97-0047 Allegations: THE STATEMENT OF CHARGES ALLEGES THAT SPEAR, LEEDS & KELLOGG ("SLK"), SUBMITTED APPROXIMATELY 84 POSITION ADJUSTMENTS TO OPTIONS CLEARING CORP. ("OCC") WHICH MOVED POSITIONS WHICH TOTALED AT LEASE 20,321 OPTION CONTRACTS BETWEEN FIRST MARATHON AMERICA, INC.'S ("FMAI") ACCOUNT AND MARATHON ARBITRAGE CV'S ("MACV") ACCOUNT. AS A RESULT OF THIS CONDUCT, AT LEAST 11 OF THESE POSITION ADJUSTMENTS RESULTED IN THE NETTING OF POSITIONS BY WAY OF ADJUSTMENTS IN FMAI'S ACCOUNT AND MACV'S ACCOUNT, AND NOT BY WAY OF TRANSACTIONS EFFECTED ON THE EXCHANGE FLOOR. ADDITIONALLY, SLK FAILED TO ESTABLISH, IMPLEMENT AND MAINTAIN ADEQUATE PROCEDURES FOR THE SUPERVISION AND CONTROL OF ITS ACTIVITIES AND OPERATIONS RELATED TO THE CLEARANCE OF TRADES INTO APPROPRIATE ACCOUNTS AND THE VERIFICATION THAT OPTION POSITIONS WERE ADJUSTED OR MOVED FOR THE PURPOSE OF CORRECTING BONA FIDE ERRORS. (CBOE RULES 4.2, 4.6, AND 6.49(a)) Current Status: Pending Summary: SEE ALLEGATIONS *********************************** Reporting Source: Brokerage Firm (Form BD) NASD BrokerCheck October 12, 2005 Page 46 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date Reported: Initiated By: CHICAGO BOARD OPTIONS EXCHANGE Date initiated: 08/22/1997 Docket/ Case Number: 97-0047 Allegations: VIOLATION OF EXCHANGE RULE 4.2, 4.6 AND 6.49(A) Current Status: Final Resolution: Settled Resolution Date: 11/12/1997 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $25,000.00 Resolution Details: CENSURE AND FINE OF $25,000.00 Summary: SEE ALLEGATIONS. ******* REGULATORY ACTION (62 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 04/01/1998 Initiated By: CBOE CBOE Date initiated: 08/07/1997 Docket/ Case Number: 97-0003 Allegations: THE STATEMENT OF CHARGES ALLEGES THAT SPEAR LEEDS CAUSED THE ORDERS WHICH ORIGINATED FOR ITS FIRM PROPRIETARY ACCOUNT TO BE ENTERED, DESIGNATED AND EXECUTED AS "c" PUBLIC CUSTOMER ORDERS, RATHER THAN AS "f" FIRM PROPRIETARY ORDERS. THE STATEMENT OF CHARGES ALSO ALLEGES THAT SPEAR LEEDS MISREPRESENTED TO THE OPTIONS CLEARING CORP. ("OCC") THE ACCOUNT ORIGIN OF THE ORDERS. IT IS ALSO ALLEGED THAT SPEAR LEEDS APPARENTLY CAUSED 3 FIRM PROPRIETARY ORDERS TO BE EXECUTED PURSUANT TO THE FIRM QUOTE PROVISIONS OF EXCHANGE RULE 8.51(a), WHICH IS LIMITED IN ITS APPLICATION TO NON-BROKER DEALER CUSTOMER ORDERS. SPEAR LEEDS ALSO CAUSED 5 FIRM PROPRIETARY ORDERS TO BE REPRESENTED BY AN EXCHANGE PUBLIC CUSTOMER ORDER BOOK, WHICH IS LIMITED IN ITS ELIGIBILITY TO NON-BROKER DEALER CUSTOMER ORDERS AND WHICH GIVES CERTAIN PRIORITY OVER CUSTOMER AND OTHER ORDERS REPRESENTED IN THE TRADING CROWD. (CBOE RULES 4.1, 4.2, 4.6, 6.24(a), 6.51(d), AND INTERPRETATION AND POLICY .02 THEREUNDER, 7.4(a) AND 8.51(a)) SEE SUMMARY Current Status: Final Resolution: Decision & Order of Offer of Settlement Resolution Date: 04/01/1998 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $10,000.00 Resolution Details: SPEAR, LEEDS & KELLOGG ("SLK"), AN EXCHANGE MEMBER ORGANIZATION, WAS CENSURED AND FINED $10,000. IN ADDITION, SLK WAS ORDERED TO: A) PROVIDE A COPY OF SLK'S ORDER ENTRY AND ORDER TAKING PROCEDURES, INCLUDING BUT NOT LIMITED TO THE USE OF THE "f" ORIGIN CODE FOR FIRM PROPRIETARY ORDERS OF AN OCC CLEARING MEMBER AND THE COMMUNICATION OF PROPER ORIGIN CODE BY FIRM PERSONNAL TO ORDER EXECUTION FIRMS EXECUTING ORDERS ON BEHALF OF SLK'S FIRM PROPRIETARY ACCOUNT(S), TO THE EXCHANGE NO LATER THAN 30 DAYS FROM ISSUANCE OF THE DECISION ACCEPTING THE OFFER OF SETTLEMENT IN FILE NO. 97-0003. B) DISTRIBUTE THE ABOVE-REFERENCED PROCEDURES TO ALL CURRENT PERSONNEL WHO EITHER ENTER OR TAKE ORDERS ON BEHALF OF SLK'S FIRM PROPRIETERY ACCOUNT(S) NO LATER THAN 60 DAYS FROM ISSUANCE OF NASD BrokerCheck October 12, 2005 Page 47 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) THE DECISION ACCEPTING THE OFFER OF SETTLEMENT IN FILE NO. 97-0003 AND TO CONDUCT A MEETING WITH SUCH PERSONNEL TO REVIEW THE PROCEDURES WITHIN 14 DAYS OF DISTRIBUTION. SLK AGREES TO INCLUDE THE ABOVE-REFERENCED PROCEDURES IN TRAINING ANY FUTURE PERSONNEL EITHER TO ENTER OR TAKE ORDERS ON BEHALF OF RESPONDENT'S FIRM PROPRIETARY ACCOUNT(S). C) PROVIDE WRITTEN SUMMARY OF THE MEETING REFERENCED IN PARAGRAPH B) ABOVE, INCLUDING ATTENDEES, TO THE EXCHANGE WITHIN 7 DAYS AFTER SUCH A MEETING OCCURS. D) REPRESENT THAT THE UNDERTAKING SET FORTH IN THE DECISION ACCEPTING OFFER OF SETTLEMENT FOR IN THE MATTER OF SPEAR, LEEDS & KELLOGG (FILE NO. 96-0060), TO ESTABLISH, IMPLEMENT, AND MAINTAIN ADEQUATE PROCEDURES FOR THE SUPERVISION AND CONTROL OF ITS ACTIVITIES AND OPERATIONS RELATED TO THE CLEARANCE OF TRADES INTO APPROPRIATE ACCOUNTS AND THE VERIFICATION THAT OPTION POSITIONS ARE ADJUSTED ONLY FOR PROPER PURPOSES, WILL ENCOMPASS AND ADDRESS THE IMPROPER ADJUSTMENTS SET FORTH IN PARAGRAPH 8 OF THE DECISION IN FILE NO. 97-0003. Summary: SEE ALLEGATIONS U-6 ELECTRONICALLY ENTERED BY CBOE; TRANS #400015-11098 (SEE SANCTION LANGUAGE IN "RESULTS" CATEGORY ABOVE) DURING ALL RELEVANT PERIODS HEREIN, ONLY NON-BROKER DEALER CUSTOMER ORDERS WERE ENTITLED TO AN EXECUTION PURSUANT TO THE FIRM QUOTE PROVISIONS OF EXCHANGE RULE 8.51(a). DURING ALL RELEVANT PERIODS HEREIN, ONLY NON-MEMBER AND NON-BROKER DEALER CUSTOMER ORDERS WERE ELIGIBLE FOR REPRESENTATION BY AN EXCHANGE PUBLIC CUSTOMER ORDER BOOK PURSUANT TO THE PROVISIONS OF EXCHANGE RULE 7.4(a). FROM ON OR ABOUT MARCH 1, 1995 THROUGH ON OR ABOUT APRIL 27, 1995, SLK ENTERED ON THE EXCHANGE FLOOR AND CAUSED TO BE EXECUTED APPROXIMATELY 70 ORDERS ("ORDERS") AS PUBLIC CUSTOMER ORDERS WITH THE ACCOUNT ORIGIN CODE "c" FOR PUBLIC CUSTOMER ORDERS, RATHER THAN WITH THE "f" CODE FOR FIRM PROPRIETARY ORDERS OF AN OCC CLEARING MEMBER. SLK MISREPRESENTED TO THE OCC (PRIOR TO ADJUSTMENT) THAT APPROXIMATELY 70 ORDERS WERE ON BEHALF OF PUBLIC CUSTOMER ACCOUNTS, WHEN IN FACT THE ORDERS WERE ENTERED ON BEHALF OF AND ULTIMATELY CLEARED INTO THE FIRM RANGE OF THE SLK ACCOUNT AT OCC. SLK CAUSED APPROXIMATELY 3 OF THE ORDERS TO BE REPRESENTED ON THE EXCHANGE TRADING FLOOR BY A FLOOR BROKER WHO IN EACH INSTANCE APPARENTLY EXECUTED THE ORDER, WHICH WAS MARKED "CUSTOMER," PURSUANT TO THE FIRM QUOTE PROVISIONS OF EXCHANGE RULE 8.51(a) BY EXECUTING 10 CONTRACTS AT THE DISSEMINATED MARKET QUOTATION. SLK CAUSED APPROXIMATELY FIVE OF THE ORDERS TO BE ENTERED IN AND EXECUTED ON THE EXCHANGE TRADING FLOOR BY AN EXCHANGE PUBLIC CUSTOMER ORDER BOOK. SLK FAILED TO HAVE SUPERVISORY PROCEDURES AND CONTROLS TO PREVENT THE CONDUCT DESCRIBED ABOVE. (CBOE RULES 4.1, 4.2, 4.6, 6.24(a), 6.51(d), 7.4(a) AND 8.51(a).) *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: CHICAGO BOARD OPTIONS EXCHANGE Date initiated: 08/07/1997 Docket/ Case Number: 97-0003 Allegations: VIOLATION OF RULES 4.1, 4.2, 4.6, 6.24(A), 6.51(D) AND INTERPRETATION AND POLICE .02 THEREUNDER, 7.4(A) AND 8.51(A) Current Status: Final Resolution: Settled Resolution Date: 04/01/1998 Sanctions Ordered: Monetary/Fine Monetary Amount: $10,000.00 Other Sanctions: CENSURE & FINE OF $10,000.00 Resolution Details: SEE ABOVE. Summary: A CENSURE AND FINE OF $10,000.00 ******* REGULATORY ACTION (63 of 93) ******* Reporting Source: Regulator (Form U-6) NASD BrokerCheck October 12, 2005 Page 48 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date Reported: 07/28/2000 Initiated By: SECURITIES AND EXCHANGE COMMISSION Date initiated: 01/11/1999 Docket/ Case Number: Allegations: VIOLATION OF SECTIONS 11A(C), 15(C)(1) AND (2), AND 17(A) OF THE EXCHANGE ACT AND RULES 11AC1-1, 15C1-2,15C2-7 AND 17A-3 THEREUNDER Current Status: Final Resolution: Consent Resolution Date: 01/11/1999 Sanctions Ordered: Disgorgement/Restitution, Cease and Desist/Injunction Other Sanctions: PROVIDE TO THE SEC-APPOINTED INDEPENDENT CONSULTANT A DESCRIPTION OF SPEAR LEADS' POLICIES, PROCEDURES AND PRACTICES RELATING TO PREVENTION OR DETECTION OF THE TYPES OF IMPROPER CONDUCT INVOLVING ITS AS DESCRIBED IN THE ORDER Resolution Details: CIVIL PENALTY OF $800,000; DISGORGEMENT OF $13,439; Summary: [TOP] +02/11/99+ SEC NEWS DIGEST, ISSUE NO. 99-6, 01/11/1999, ENFORCEMENT PROCEEDINGS DISCLOSED: SEC ANNOUNCED THE INSTITUTION OF ADMINISTRATIVE PROCEEDINGS AGAINST 28 NASDAQ MARKET MAKING FIRMS AND 51 INDIVIDUALS ASSOCIATED WITH SUCH FIRMS PURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934 AND, AS TO ONE FIRM, PURSUANT TO SECTION 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940. SIMULTANEOUSLY WITH THE FILING OF THE ACTION, ALL OF THE RESPONDENTS CONSENTED, WITHOUT ADMITTING OR DENYING SEC?S FINDINGS, TO THE ENTRY OF ORDERS WHICH IMPOSE CIVIL PENALTIES WHICH TOTALED $26,302,500, DISGORGEMENT OF WRONGFUL GAINS TOTALING $791,525, SUSPENSIONS OR BARS, CEASE AND DESIST ORDERS AND OTHER SANCTIONS. THE ORDERS FOUND THAT THE RESPONDENTS HAD ENGAGED PRIMARILY IN ONE OR MORE TYPES OF VIOLATIONS ARISING FROM MARKET MAKING ACTIVITIES IN THE NASDAQ STOCK MARKET: THE COORDINATION OF QUOTATIONS AND TRANSACTIONS BY TRADERS MAKING MARKETS IN NASDAQ STOCKS IN VIOLATION OF ANTIFRAUD AND FICTITIOUS QUOTATION RULES, OTHER MANIPULATIVE ACTIVITY, FAILURE TO HONOR QUOTED PRICES, FAILURE TO PROVIDE CUSTOMER ORDERS WITH BEST EXECUTION, TRADING AS PRINCIPAL WITH ADVISORY CLIENTS OR DISCRETIONARY CUSTOMERS, FAILURE TO COMPLY WITH THE BOOKS AND RECORDS REQUIREMENTS, AND FAILURE TO SUPERVISE. 02-12-99,"ORDER MAKING AND IMPOSING SANCTIONS AS TO SPEAR LEEDS & KELLOGG, L.P., MICHAEL J. LING, JAMES P. MORRIS, JOHN J. QUIGLEY, AND ERIC J. SCHERZER.": SPEAR LEEDS SHALL CEASE AND DESIST FROM COMMITTING OR CAUSING ANY VIOLATION OF COMMITTING OR CAUSING ANY FUTURE VIOLATION OF SECTIONS 11A(C), 15(C)(1) AND (2), AND 17(A) OF THE EXCHANGE ACT AND RULES 11AC1-1, 15C1-2,15C2-7 AND 17A-3 THEREUNDER; SHALL PAY A CIVIL PENALTY OF $800,000; PAY DISGORGEMENT OF $13,439; PROVIDE TO THE SEC-APPOINTED INDEPENDENT CONSULTANT A DESCRIPTION OF SPEAR LEADS' POLICIES, PROCEDURES AND PRACTICES RELATING TO PREVENTION OR DETECTION OF THE TYPES OF IMPROPER CONDUCT INVOLVING ITS AS DESCRIBED IN THE ORDER *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 06/02/2003 Initiated By: SECURITIES AND EXCHANGE COMMISSION Date initiated: 01/11/1999 Docket/ Case Number: 34-40 Allegations: IN AN ACTION BROUGHT AGAINST ALMOST ALL OF THE MAJOR NASDAQ MARKET MAKERS, THE SEC FOUND THAT IN 1994 MARKET MAKERS,INCLUDING SPEAR, LEEDS & KELLOGG VIOLATED PROVISIONS OF THE FEDERAL SECURITIES LAWS IN CONNECTION WITH THEIR MARKET MAKING ACTIVITIES IN NASDAQ SECURITIES. VIOLATION OF SECTION 11A(C), 15(C)(1) & (2) & 17(A) OF THE EXCHANGE ACT AND RULES 11AC1-1, 15C1-2, 15C2-7 & 17A-3. Current Status: Final NASD BrokerCheck October 12, 2005 Page 49 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution: Settled Resolution Date: 02/11/1999 Sanctions Ordered: Monetary/Fine, Disgorgement/Restitution Monetary Amount: $800,000.00 Resolution Details: CIVIL PENALTY OF $800,000.00 AND DISGORGEMENT OF $13,439.00. Summary: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS SPEAR, LEEDS & KELLOGG AGREED TO PAY A CIVIL PENALTY AND DISGORGEMENT TO RESOLVE THE MATTER WITHOUT A HEARING. ******* REGULATORY ACTION (64 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 05/05/1998 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 05/05/1998 Docket/ Case Number: CMS980046 AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 05/05/1998 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $12,000.00 Resolution Details: Summary: LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS980046 AWC. ON MAY 5, 1998, TROSTER SINGER, A DIVISION OF SPEAR, LEEDS & KELLOGG (TSCO) WAS NOTIFIED THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) IT SUBMITTED WAS ACCEPTED BY NASD REGULATION, INC.'S DEPARTMENT OF ENFORCEMENT AND THE NATIONAL ADJUDICATORY COUNCIL. THE AWC ALLEGES THAT THE FOLLOWING VIOLATIONS OCCURRED: TSCO FAILED TO DESIGNATE AS LATE TO ACT 45 TRANSACTIONS IN NASDAQ NATIONAL MARKET SECURITIES; INCORRECTLY DESIGNATED AS ".T" TO ACT 15 TRANSACTIONS IN NASDAQ NATIONAL MARKET SECURITIES; AND INCORRECTLY IDENTIFIED ONE TRANSACTION REPORT AS AGGREGATED IN A NASDAQ NATIONAL MARKET SECURITY. THIS CONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF NASD MARKETPLACE RULES 4632(a) AND 4632(f). TSCO FAILED TO DESIGNATE AS LATE TO ACT EIGHT TRANSACTIONS IN NASDAQ SMALLCAP MARKET SECURITIES; AND INCORRECTLY DESIGNATED AS ".T" TO ACT FOUR TRANSACTIONS IN NASDAQ SMALLCAP MARKET SECURITIES. THIS CONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 4642(a). TSCO FAILED TO DESIGNATE AS LATE TO ACT TEN TRANSACTIONS IN OTC EQUITY SECURITIES; INCORRECTLY DESIGNATED AS ".T" TO ACT ONE TRANSACTION IN AN OTC EQUITY SECURITY; AND REPORTED TO ACT THE INCORRECT SYMBOL INDICATING WHETHER ONE TRANSACTION IN AN OTC QUITY SECURITY WAS A BUY, SELL, OR CROSS. THIS CONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF MARKETPLACE RULE 6620(a). TSCO FAILED TO PRESERVE FOR A PERIOD OF NOT LESS THAN THREE YEARS MEMORANDA OF SIX BROKERAGE ORDERS; FAILED TO SHOW THE CORRECT TIME OF EXECUTION ON MEMORANDA OF SIX BROKERAGE ORDERS; AND FAILED TO SHOW THE CORRECT VOLUME ON MEMORANDA OF TWO BROKERAGE ORDERS. THIS CONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF SEC RULES 17a-3(a)(6), 17a-4(b)(1), AND NASD CONDUCT RULE 3110. TSCO WAS CENSURED AND FINED $12,000. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. NASD BrokerCheck October 12, 2005 Page 50 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date initiated: 11/13/1997 Docket/ Case Number: CMS 980046 AWC Allegations: VIOLATIONS OF NASD MARKETPLACE RULES 4632(A), 4632(F), 4642(A) AND 6220(A). NASD CONDUCT RULE 3110. VIOLATIONS OF SEC RULES 17A-3(A)(6), 17A-3(A)(6), 17A-4(B)(1). Current Status: Final Resolution: Settled Resolution Date: 05/05/1998 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $12,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (65 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 04/24/2000 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/23/1998 Docket/ Case Number: CAF980028 Allegations: NASD RULES 2110, 2120, 3110, 4632, 6130 AND SEC RULES 10B-5 AND 17A-3 - TSC, THROUGH MILLAR, ET AL. DELAYED REPORTS OF EXECUTED TRADES TO THE AUTOMATED CONFIRMATION TRANSACTION REPORTING SERVICE, PRINCIPAL TRADES WITH INSTITUTIONAL CUSTOMERS, AND TRADES WITH OTHER DEALERS. WHEN TSC REPORTED THE TRADES, IT DID SO WITHOUT DESIGNATING THEM AS LATE AND/OR WITH INCORRECT EXECUTION TIMES. TSC INTENTIONALLY DELAYED REPORTS TO SECURE A COMPETITIVE ADVANTAGE, PROTECT ITS INTERESTS, AND MAXIMIZE PROFITS OR MINIMIZE LOSSES. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 07/23/1998 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $950,000.00 Resolution Details: TSC IS CENSURED, FINED $950,000; AND, AGREED TO, WITHIN 30 DAYS OF THE APPROVAL OF THIS AWC, RETAIN A CONSULTANT ACCEPTABLE TO NASD TO REVIEW AND MAKE RECOMMENDATIONS REGARDING TSC'S POLICIES OF COMPLIANCE WITH NASD RULES AND SECURITIES LAWS . THE CONSULTANT SHALL COMPLETE ITS REVIEW AND MAKE RECOMMENDATIONS TO TSC IN A REPORT WITHIN 3 MONTHS OF RETENTION. TSC SHALL PROVIDE THE STAFF A COPY OF THE REPORT, AND IMPLEMENT POLICIES RECOMMENDED. IF TSC BELIEVES ANY RECOMMENDATION IS UNREASONABLY BURDENSOME, OR BELIEVES THERE IS A PREFERABLE, ALTERNATIVE, TSC MAY PROPOSE AN ALTERNATIVE PROCEDURE. TSC SHALL PROVIDE THE STAFF WITH A WRITTEN REPRESENTATION THAT ALTERNATIVE PROCEDURES HAVE BEEN PRESENTED TO THE CONSULTANT WHO WILL REVIEW IT TO DETERMINE WHETHER THEY ACHIEVE THE SAME OBJECTIVE AS THE ORIGINAL RECOMMENDATIONS. IF THE CONSULTANT FINDS THAT THEY DO, TSC MAY ADOPT THEM. IF THE CONSULTANT IS UNSATISFIED WITH THE ALTERNATIVE PROCEDURES, TSC SHALL ADOPT THE ORIGINAL RECOMMENDATIONS. THREE YEARS FROM THE END OF THE CONSULTANT'S WORK, NEITHER TSC, NOR ITS OFFICERS, DIRECTORS, OR PARTNERS, MAY EMPLOY THE CONSULTANT. Summary: [TOP] 7/23/98, DEPARTMENT OF ENFORCEMENT NOTIFIED TROSTER SINGER CORP (TSC), A DIVISION OF SPEAR, LEEDS & KELLOGG, ET AL. THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CAF980028 WAS ACCEPTED. TSC IS CENSURED, FINED $950,000; AND, NASD BrokerCheck October 12, 2005 Page 51 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) AGREED TO, WITHIN 30 DAYS OF THE APPROVAL OF THIS AWC, RETAIN A CONSULTANT ACCEPTABLE TO NASD TO REVIEW AND MAKE RECOMMENDATIONS REGARDING TSC'S POLICIES OF COMPLIANCE WITH NASD RULES AND SECURITIES LAWS . THE CONSULTANT SHALL COMPLETE ITS REVIEW AND MAKE RECOMMENDATIONS TO TSC IN A REPORT WITHIN 3 MONTHS OF RETENTION. TSC SHALL PROVIDE THE STAFF A COPY OF THE REPORT, AND IMPLEMENT POLICIES RECOMMENDED. IF TSC BELIEVES ANY RECOMMENDATION IS UNREASONABLY BURDENSOME, OR BELIEVES THERE IS A PREFERABLE, ALTERNATIVE, TSC MAY PROPOSE AN ALTERNATIVE PROCEDURE. TSC SHALL PROVIDE THE STAFF WITH A WRITTEN REPRESENTATION THAT ALTERNATIVE PROCEDURES HAVE BEEN PRESENTED TO THE CONSULTANT WHO WILL REVIEW IT TO DETERMINE WHETHER THEY ACHIEVE THE SAME OBJECTIVE AS THE ORIGINAL RECOMMENDATIONS. IF THE CONSULTANT FINDS THAT THEY DO, TSC MAY ADOPT THEM. IF THE CONSULTANT IS UNSATISFIED WITH THE ALTERNATIVE PROCEDURES, TSC SHALL ADOPT THE ORIGINAL RECOMMENDATIONS. THREE YEARS FROM THE END OF THE CONSULTANT'S WORK, NEITHER TSC, NOR ITS OFFICERS, DIRECTORS, OR PARTNERS, MAY EMPLOY THE CONSULTANT. - (NASD RULES 2110, 2120, 3110, 4632, 6130 AND SEC RULES 10B-5 AND 17A-3 - TSC, THROUGH MILLAR, ET AL. DELAYED REPORTS OF EXECUTED TRADES TO THE AUTOMATED CONFIRMATION TRANSACTION REPORTING SERVICE, PRINCIPAL TRADES WITH INSTITUTIONAL CUSTOMERS, AND TRADES WITH OTHER DEALERS. WHEN TSC REPORTED THE TRADES, IT DID SO WITHOUT DESIGNATING THEM AS LATE AND/OR WITH INCORRECT EXECUTION TIMES. TSC INTENTIONALLY DELAYED REPORTS TO SECURE A COMPETITIVE ADVANTAGE, PROTECT ITS INTERESTS, AND MAXIMIZE PROFITS OR MINIMIZE LOSSES). *** $950,000.00 PAID ON 7/31/98, INVOICE NO. 98-AF-615 *** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS. Date initiated: 11/12/1997 Docket/ Case Number: CAF 980028 Allegations: VIOLATION OF SECTION 10B-5 AND 17A-3 OF THE SECURITIES EXCHANGE ACT OF 1934. NASD CONDUCT RULES 2110, 2120, AND 3110. NASD MARKETPLACE RULES 4632 AND 6130. Current Status: Final Resolution: Settled Resolution Date: 07/23/1998 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $950,000.00 Other Sanctions: FIRM AGREES TO RETAIN OUSIDE CONSULTANT TO REVIEW AND MAKE RECOMMENDATIONS REGARDING THE FIRM'S POLICIES. Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (66 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 08/22/1997 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 08/22/1997 Docket/ Case Number: CMS970021 Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) NASD BrokerCheck October 12, 2005 Page 52 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution Date: 08/22/1997 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $15,000.00 Resolution Details: Summary: LETTER OF ACCEPTANCE, WAIVER & CONSENT NO. CMS970021 AWC. ON AUGUST 22, 1997, TROSTER SINGER, A DIVISION OF SPEAR, LEEDS & KELLOGG (TSCO) WAS NOTIFIED THAT THE LETTER OF ACCEPTANCE, WAIVER & CONSENT (AWC) IT SUBMITTED WAS ACCEPTED BY THE MARKET REGULATION AND THE NATIONAL BUSINESS CONDUCT COMMITTEES. THE AWC ALLEGES THAT TSCO VIOLATED SEC RULE 11Ac1-1 ("SEC FIRM QUOTE RULE"), NASD CONDUCT RULES 2110, 3010 AND 3320, AND MARKETPLACE RULE 4613(b) FOR THE FOLLOWING ACTIVITY: TSCO FAILED TO EXECUTE 76 ORDERS WHICH WERE PRESENTED TO TSCO AT TSCO'S PUBLISHED BID OR PUBLISHED OFFER AND, THEREFORE, FAILED TO HONOR ITS PUBLISHED QUOTATION. IN ADDITION, TSCO FAILED TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES TO ENSURE COMPLIANCE WITH THE ABOVE RULES. TSCO WAS CENSURED AND FINED $15,000. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 06/20/1997 Docket/ Case Number: CMS-970021 Allegations: VIOLATION OF SEC RULE 11AC1-1, NASD CONDUCT RULES 2110, 3010, AND 3320. MARKETPLACE RULE 4613B. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 08/22/1997 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $15,000.00 Resolution Details: CENSURED AND FINED $15,000.00 Summary: SEE ALLEGATIONS. ******* REGULATORY ACTION (67 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 06/04/1997 Initiated By: CBOE Date initiated: 06/04/1997 Docket/ Case Number: 96-0060A Allegations: see summary Current Status: Final Resolution: Dismissed Resolution Date: 06/04/1997 Sanctions Ordered: Resolution Details: Dismissal of certain alleged violations by Spear Leeds & Kellogg, Inc. in the Statement of Charges in File No. 96-0060 NASD BrokerCheck October 12, 2005 Page 53 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: In veiw of a reconsideration of the fact of this matter by the Business Conduct Committee, it is hereby ordered that the alleged violations of Exchange Rule 13.1 and Section 15(c) of the Act and Rule 15c3-1 thereunder, by SLK as set forth in Paragraphs 14 and 18 of the Statement of Charges in File No. 96-0060 shall be and hereby are dismissed. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: CHICAGO BOARD OPTIONS EXCHANGE Date initiated: 01/31/1997 Docket/ Case Number: 96-0060 Allegations: VIOLATION OF EXCHANGE RULES 4.1, 4.2, 4.6 AND 13.1 SECTION 15(C) OF THE ACT AND RULE 15C3-1, SECTION 17(A)(1) OF THE ACT AND RULE 17(A)-5. Current Status: Final Resolution: Settled Resolution Date: 05/16/1997 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $50,000.00 Resolution Details: CENSURED AND FINED $50,000.00. Summary: ******* REGULATORY ACTION (68 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 05/11/2000 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/25/1996 Docket/ Case Number: CMS960239 Allegations: COMPLAINT NO. CMS960239 WAS FILED BY THE MARKET SURVEILLANCE COMMITTEE ON OCTOBER 25, 1996 ALLEGING VIOLATIONS BY TROSTER SINGER OF CONDUCT RULE 2110 AND INTERPRETIVE MEMORANDUM 2110-2 IN CONNECTION WITH TROSTER'S FAILURE TO FULFILL ITS OBLIGATION WHEN EXECUTING MEMBER-TO-MEMBER LIMIT ORDERS; AND CONDUCT RULES 2110 AND 3010 IN CONNECTION WITH TROSTER'S FAILURE TO MAINTAIN, ESTABLISH AND ENFORCE ADEQUATE WRITTEN SUPERVISORY PROCEDURES. ON DECEMBER 1, 1997 A DECISION ACCEPTING TROSTER SINGER CORPORATION'S OFFER OF SETTLEMENT WAS ISSUED IN CMS960239 BY THE MARKET REGULATION COMMITTEE. TROSTER IS CENSURED, FINED $40,000 (COMPOSED OF A $10,000 FINE FOR VIOLATIONS OF THE LIMIT ORDER PROTECTION INTERPRETATION, AND A $30,000 FINE FOR THE FAILURE TO SUPERVISE), AND RESTITUTION IN AN AMOUNT NO GREATER THAN $158,361.85 AND INTEREST IN AN AMOUNT NO GREATER THAN $16,403.51 TO THOSE CUSTOMERS WHOSE ORDERS WERE NOT FILLED. ******* $40,000 PAID ON 1/21/98, INVOICE NO. 98-MS-14 *** Current Status: Final Resolution: Decision & Order of Offer of Settlement Resolution Date: 12/01/1997 Sanctions Ordered: Monetary/Fine, Disgorgement/Restitution, Censure Monetary Amount: $40,000.00 Resolution Details: FINED $40,000 NASD BrokerCheck October 12, 2005 Page 54 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/25/1996 Docket/ Case Number: CMS -- 960239 Allegations: TSCO VIOLATED NASD CONDUCT RULES 2110, 3010 AND IM -- 2110-2. Current Status: Final Resolution: Settled Resolution Date: 12/01/1997 Sanctions Ordered: Monetary/Fine, Disgorgement/Restitution, Censure Monetary Amount: $40,000.00 Other Sanctions: THE RESTITUTION WAS IN THE AMOUNT OF $174,765.36 (TOTAL INCLUDES INTEREST) TO THOSE CUSTOMERS WHOSE ORDERS WERE NOT FILLED. Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (69 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 04/10/1996 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 12/18/1995 Docket/ Case Number: CMS950214 AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 04/10/1996 Sanctions Ordered: Monetary/Fine Monetary Amount: $500.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT NO. CMS950214 AWC LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) FILED ON DECEMBER 18, 1995 AGAINST SPEAR, LEEDS & KELLOGG (SILK) ALLEGING VIOLATIONS OF ARTICLE III, SECTION 41 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE IN THAT SILK FAILED TO REPORT A 40,900 SHARE SHORT POSITION ON FORM NS-1 AS OF THE SETTLEMENT DATE. ON APRIL 10, 1996 SILK WAS NOTIFIED THAT THE MARKET SURVEILLANCE AND THE NATIONAL BUSINESS CONDUCT COMMITTEES HAD ACCEPTED THE AWC WITH AN IMPOSED FINE OF $500. THE AWC BECAME FINAL ON APRIL 10, 1996. **$500.00 PAID ON 5/06/96, INVOICE #96-MS-340** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS. NASD BrokerCheck October 12, 2005 Page 55 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date initiated: 12/18/1995 Docket/ Case Number: CMS 950214 Allegations: NASD ALLEGED VIOLATIONS OF ARTICLE III, SECTION 41 OF THE ASSOCIATION'S RULE OF FAIR PRACTICE IN THAT SILK FAILED TO REPORT A 40,900 SHARE SHORT POSITION ON FORM NS-1 AS OF THE SETTLEMENT DATE. Current Status: Final Resolution: Settled Resolution Date: 04/10/1996 Sanctions Ordered: Monetary/Fine Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (70 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 09/07/1993 Initiated By: COMMODITY FUTURES TRADE COMMISSION Date initiated: 06/23/1993 Docket/ Case Number: 93-25 Allegations: Current Status: Final Resolution: Decision Resolution Date: 09/07/1993 Sanctions Ordered: Resolution Details: Summary: +09/18/97+ CFTC PROCEEDINGS BULLETIN DATED DECEMBER 31, 1996, PAGE 284, DISCLOSES: SPEAR, LEEDS & KELLOGG ("SLK") VIOLATED CFTC ACT 4b(a)(ii) AND REGULATION 166.3. SLK WAS PENALIZED IN THE AMOUNT OF $325,000. DOCKET/CASE NO. 93-25, DATED 09/07/93. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: 05/06/2002 Initiated By: NEW YORK FUTURES EXCHANGE & NEW YORK STOCK EXCHANGE (JOINTLY) Date initiated: 06/23/1993 Docket/ Case Number: CFTC 93-25 Allegations: CFTC VIOLATION OF SECTION 4B(A)(II) AND SECTION 166.3 Current Status: Final Resolution: Settled Resolution Date: 09/07/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $325,000.00 NASD BrokerCheck October 12, 2005 Page 56 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (71 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 12/28/1995 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/04/1995 Docket/ Case Number: CMS950126 AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 12/28/1995 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE (MSC) LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS950126 AWC (AWC) FILED ON OCTOBER 4, 1995 AGAINST TROSTER SINGER STEVENS ROTHCHILD INC., A SUBSIDIARY OF SPEAR LEEDS & KELLOGG, (TSCO). THE AWC ALLEGES A VIOLATION OF ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE (BOARD OF GOVERNORS' INTERPRETATION FOR "PROMPT RECEIPT AND DELIVERY OF SECURITIES" IN THAT TSCO EXECUTED 1000 SHARE SHORT SALE FOR A CUSTOMER WITHOUT A PRIOR AFFIRMATIVE DETERMINATION THAT IT WOULD RECEIVE DELIVERY OF THE SECURITY FROM THE CUSTOMER OR THAT IT COULD BORROW THE SECURITY ON BEHALF OF THE CUSTOMER FOR DELIVERY BY SETTLEMENT DATE. AS SANCTIONS, THE MSC CENSURED AND FINED TSCO $1,000. THE AWC BECAME FINAL ON DECEMBER 28, 1995. ***$1,000.00 PAID ON 02/12/96, INVOICE #96-MS-93*** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/04/1995 Docket/ Case Number: CMS 950126 Allegations: NASD ALLEGED A VIOLATION OF ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE IN THAT TSCO EXECUTED 1000 SHARE SHORT SALE FOR A CUST. W/O A PRIOR AFFIRMATIVE DETERMINATION THAT IT WOULD RECEIVE DELIVERY OF THE SECURITY FROM CUSTOMER OR THAT IT COULD BORROW THE SECURITY ON BEHALF OF THE CUSTOMER FOR DELIVERY BY SETTLEMENT DATE. Current Status: Final Resolution: Settled Resolution Date: 12/28/1995 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: NASD BrokerCheck October 12, 2005 Page 57 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ******* REGULATORY ACTION (72 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 03/27/1984 Initiated By: PHILADELPHIA STOCK EXCHANGE Date initiated: 03/27/1984 Docket/ Case Number: 83-21 Allegations: Current Status: Final Resolution: Settled Resolution Date: 03/27/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $750.00 Resolution Details: Summary: ON 3/27/84 THE PHILADELPHIA STOCK EXCHANGE FINED SPEAR LEEDS & KELLOGG $750 FOR VIOLATIONS OF EXCHANGE RULE 1001 IN THAT ON OR ABOUT 6/14/83 AND 7/6/83, SPEAR LEEDS & KELLOGG'S PROPRIETARY ACCOUNT HELD, CONTROLLED OR WAS OBLIGATED WITH RESPECT TO AN AGGREGATE OR MORE THAN 2,000 CERTAIN OPTION CONTRACTS ON THE SAME SIDE OF THE MARKET. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: PHILADELPHIA STOCK EXCHANGE, INC. Date initiated: 02/06/1984 Docket/ Case Number: 83-21 Allegations: VIOLATION OF EXCHANGE RULE 1001. Current Status: Final Resolution: Decision Resolution Date: 03/27/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $750.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (73 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 05/18/1962 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/05/1961 Docket/ Case Number: NY-498 NASD BrokerCheck October 12, 2005 Page 58 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Allegations: Current Status: Final Resolution: Decision Resolution Date: 05/18/1962 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: Summary: COMPLAINT #NY-498 FILED 10-5-61 DECISION 4-18-62 - RESPONDENT IS CENSURED AND FINED $500 FINAL - 5-18-62 CHECK FOR $500 RECEIVED RE: MEMO 5-1-62 FINE PAID RE: MEMO 5-18-62 *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 10/05/1961 Docket/ Case Number: NY 498 Allegations: VIOLATION OF SECTION J OF ARTICLE III OF THE RULES OF FAIR PRACTICE OF THE NASD. Current Status: Final Resolution: Decision Resolution Date: 05/18/1962 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (74 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 09/07/1984 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 09/07/1984 Docket/ Case Number: 84-D-3 Allegations: Current Status: Final Resolution: Decision Resolution Date: 09/07/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $10,000.00 Resolution Details: Summary: SPEAR, LEEDS & KELLOGG ("SPEAR LEEDS"), A REGULAR MEMBER ORGANIZATION OF THE EXCHANGE AND STEVEN JEANETTE ("JEANETTE"), A REGULAR MEMBER OF THE EXCHANGE WERE JOINTLY AND SEVERALLY FINED $10,000 FOR VIOLATING EXCHANGE RULES CONCERNING THEIR NASD BrokerCheck October 12, 2005 Page 59 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) SPECIALIST RESPONSIBILITIES. SPEAR LEEDS AS A SPECIALIST UNIT REGISTERED IN AN EXCHANGE LISTED COMMON STOCK, AND JEANETTE AS A MEMBER OF THE SPECIALIST UNIT WERE DISCIPLINED FOR VIOLATING (1)EXCHANGE RULE 154 IN THAT THEY EXECUTED TRANSACTIONS IN THAT STOCK ON 12/8/82, THAT WERE TWO POINTS OR MORE AWAY FROM THE LAST SALE WITHOUT THE PRIOR APPROVAL OF A FLOOR OFFICIAL; AND (2)EXCHANGE RULE 177 IN THAT, ON THAT SAME DAY THEY FAILED TO REPORT UNUSUAL ACTIVITY, PRICE CHANGES AND TRANSACTIONS IN THE STOCK TO A FLOOR OFFICIAL. SPEAR LEEDS AND JEANETTE SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE EXCHANGE'S ALLEGATIONS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 01/27/1984 Docket/ Case Number: 84-D-3 Allegations: VIOLATION OF EXCHANGE RULE 154 AND EXCHANGE RULE 177. Current Status: Final Resolution: Decision Resolution Date: 07/12/1984 Sanctions Ordered: Monetary/Fine Monetary Amount: $10,000.00 Resolution Details: THE FINE IS JOINTLY AND SEVERALY AGAINST SLK AND JEANETTE. Summary: ******* REGULATORY ACTION (75 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 04/01/1982 Initiated By: SECURITIES AND EXCHANGE COMMISSION Date initiated: 08/14/1981 Docket/ Case Number: Unknown Allegations: Current Status: Final Resolution: Consent Resolution Date: 04/01/1982 Sanctions Ordered: Censure Resolution Details: Summary: 08/14/81 - ND 81-157, REL. 34-18016 COMMISSION ANNOUNCED THE INSTITUTION OF PUBLIC ADMINISTRATIVE PROCEEDINGS UNDER THE SECURITIES EXCHANGE ACT OF 1934 & THE INVESTMENT COMPANY ACT OF 1940 AGAINST SPEAR, LEEDS & KELLOGG. THE ORDER FOR PROCEEDINGS ALLEGES THAT SLK WILFULLY AIDED AND ABETTED VIOLATIONS BY AN INVESTMENT ADVISER TO A REGISTERED INVESTMENT COMPANY OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER, SECTIONS 206(1) AND (2) OF THE INVESTMENT ADVISERS ACT OF 1940 AND SECTION 17(E)(1) OF THE INVESTMENT COMPANY ACT. SECURITIES AND EXCHANGE COMMISSION NEWS DIGEST, NO. 82-62, APRIL 1, 1982 THE COMMISSION HAS ENTERED AN ORDER CENSURING SPEAR, LEEDS & KELLOGG OF NEW YORK, NEW YORK, PURSUANT TO AN OFFER OF SETTLEMENT. THE SANCTION WAS BASED UPON FINDINGS THAT SPEAR, LEEDS & KELLOGG AIDED AND ABETTED VIOLATIONS OF SECTION 206 OF NASD BrokerCheck October 12, 2005 Page 60 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) THE INVESTMENT ADVISERS ACT OF 1940 BY FAILING TO ENSURE, OR TAKING STEPS REASONABLY DESIGNED TO ENSURE THAT A REGISTERED INVESTMENT COMPANY AND ITS DISINTERESTED DIRECTORS WERE APPRISED OF THE EXISTENCE AND EXTENT OF CERTAIN FINANCIAL AND OTHER RELATIONSHIPS BETWEEN SPEAR, LEEDS & KELLOGG AND THE INVESTMENT COMPANY'S INVESTMENT ADVISER AT A TIME WHEN SPEAR, LEEDS & KELLOGG WAS EXECUTING BROKERAGE TRANSACTIONS FOR THE INVESTMENT COMPANY AT THE ADVISER'S DIRECTION. THIS INFORMATION WAS NECESSARY IN ORDER TO ENABLE THE DIRECTORS TO PROPERLY EVALUATE THE BASES UPON WHICH THE INVESTMENT ADVISER DIRECTED THE INVESTMENT COMPANY'S BROKERAGE AND THE APPROPRIATE DISCLOSURES TO BE MADE TO SHAREHOLDERS. THE RESPONDENT CONSENTED TO THE FINDINGS WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE ORDER FOR PROCEEDINGS. (REL. 34-18591) *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: SECURITIES AND EXCHANGE COMMISSION Date initiated: 07/28/1981 Docket/ Case Number: 3-6047 Allegations: AIDING AND ABETTING WILLFUL VIOLATION BY A REGISTERED INVESTMENT ADVISOR OF SECTION 206 OF TH ADVISORS ACT. Current Status: Final Resolution: Order Resolution Date: 03/24/1981 Sanctions Ordered: Censure Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (76 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 01/25/1982 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 01/25/1982 Docket/ Case Number: 81-D-12 Allegations: Current Status: Final Resolution: Consent Resolution Date: 01/25/1982 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: Summary: AMERICAN STOCK EXCHANGE DECISION 81-D-12, JANUARY 25, 1982. THE EXCHANGE ACCEPTED A STIPULATION OF FACTS AND CONSENT TO PENALTY SUBMITTED BY THE SPECIALIST JOINT ACCOUNT OF SPEAR, LEEDS & KELLOGG, IN WHICH THE FIRM NEITHER ADMITTED OR DENIED THE ALLEGATIONS BROUGHT AGAINST THE ACCOUNT, WILLIAM J. CHARLTON JR., JOSEPH GOIN, JOHN C. TURNER, DENNIS J. GOIN, WALTER K. KIMM, JR., AND VINCENT MANNETTA. THE EXCHANGE FOUND THAT THE ACCOUNT VIOLATED RULE 904 IN CONNECTION WITH THE PURCHASE OF OPTIONS OF DEERE & COMPANY AND EL PASO COMPANY. THE EXCHANGE FOUND THAT THE ACCOUNT EXCEEDED THE EXCHANGE NASD BrokerCheck October 12, 2005 Page 61 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) POSITION LIMITS ON JUNE 20 & 30, 1980 IN CONNECTION WITH THE PURCHASE OF OPTION CONTRACTS. THE EXCHANGE IMPOSED THE PENALTY OF A FINE IN THE AMOUNT OF $3,000 ON THE SPECIALIST JOINT ACCOUNT FOR ITS ACTIONS. NO REMEDIAL SANCTIONS AGAINST THE INDIVIDUAL DEFENDANTS WAS GIVEN IN THE OFFER OF SETTLEMENT. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 07/01/1981 Docket/ Case Number: 81-D-12 Allegations: VIOLATION OF EXCHANGE RULE 904. Current Status: Final Resolution: Decision Resolution Date: 01/25/1982 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (77 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 06/05/1995 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 02/21/1995 Docket/ Case Number: CMS950018 AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 06/05/1995 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT NO. CMS950018 AWC. LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) ALLEGES A VIOLATION OF ARTICLE III, SECTIONS 1 AND 6 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE, PART V, SECTION 2(b) OF SCHEDULE D TO THE ASSOCIATION'S BY-LAWS AND RULE 11Ac1-1(c) OF THE SECURITIES EXCHANGE ACT OF 1934 IN THAT THE RESPONDENT FAILED TO HONOR THE QUOTATIONS IT CAUSED TO BE DISSEMINATED THROUGH THE NASDAQ SYSTEM. THIS AWC WAS FILED ON FEBRUARY 21, 1995 AND WAS ACCEPTED BY THE MARKET SURVEILLANCE AND THE NATIONAL BUSINESS CONDUCT COMMITTEES ON JUNE 5, 1995. THE RESPONDENT MEMBER WAS FINED $1,000. THE AWC BECAME FINAL ON JUNE 5, 1995. ***$1,000.00 PAID ON 06/29/95, INVOICE #95-MS-372*** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: NASD BrokerCheck October 12, 2005 Page 62 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 02/21/1995 Docket/ Case Number: CMS -- 950018 Allegations: VIOLATION OF ARTICLE III, SECTIONS 1 & 6 OF THE ASSOCIATION'S RULE OF FAIR PRACTICE. PART V, SECTION 2(B) OF SCHEDULE D TO THE ASSOCIATIOON'S BY-LAWS & RULE 11AC1-1(C) OF THE SEC ACT OF 1934. Current Status: Final Resolution: Settled Resolution Date: 06/05/1995 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (78 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/28/1994 Initiated By: ALABAMA SECURITIES COMMISSION 770 WASHINGTON STREET*See FAQ #1* Date initiated: 07/28/1994 Docket/ Case Number: OD-94-0043 Allegations: ORDER OF DENIAL PURSUANT TO SECTION 8-6-3 (J( (1) CODE OF ALABAMA 1975. RESPONDENT SPEAR, LEEDS & KELLOGG FAILED TO RESOLVE DEFICIENCIES IN ITS APPLICATION FOR REGISTRATION AS A BROKER/DEALER IN THE STATE OF ALABAMA Current Status: Final Resolution: Decision Resolution Date: 07/28/1994 Sanctions Ordered: Revocation/Expulsion Resolution Details: SAME AS ALLEGATIONS Summary: SAME AS ALLEGATIONS CONTACT: JAMES G. PUGH, SENIOR SECURITIES INVESTIGATOR, 205-242-2984 *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: ALABAMA SECURITIES COMMISSION Date initiated: 07/28/1994 Docket/ Case Number: OD-94-0043 Allegations: ORDER OF DENIAL PURSUANT TO SECTION 8-6-3(J)(1)CODE OF ALABAMA 1975. RESPONDENT SPEAR, LEEDS & KELLOGG FAILED TO RESOLVE DEFICIENCIES IN ITS APPLICATION FOR REGISTRATION AS A BROKER/DEALER IN THE STATE OF ALABAMA. Current Status: Final Resolution: Decision NASD BrokerCheck October 12, 2005 Page 63 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Resolution Date: 07/28/1994 Sanctions Ordered: Revocation/Expulsion Resolution Details: SAME AS ALLEGATIONS. Summary: SAME AS ALLEGATIONS CONTACT: JAMES G. PUGH, SENIOR SECURITIES INVESTIGATOR, (205) 242-2984 ******* REGULATORY ACTION (79 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 12/26/1990 Initiated By: HEARING PANEL Date initiated: 12/26/1990 Docket/ Case Number: 90-189 Allegations: AN OFFICER VIOLATED EXCHANGE RULE 104.10 IN THAT AT CERTAIN TIMES ON THREE DATES IT FAILED TO MAINTAIN A FAIR AND ORDERLY MARKET IN ONE SECURITY AND VIOLATED EXCHANGE RULE 123A.40 IN THAT ON ONE DAY IT FAILED TO OBTAIN FLOOR OFFICIAL APPROVAL FOR A TRANSACTION WHEN THE SPECIALIST WAS A PARTY TO THE RESULTANT ELECTION OF A STOP ORDER GUARANTEE THE STOP ORDER THE SAME PRICE AS THE ORDER WHICH ELECTED IT; ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE IN THAT IT GAVE INACCURATE INFORMATION TO A FLOOR OFFICIAL AND ENGAGED IN ACTS DETRIMENTAL TO THE INTEREST OR WELFARE OF THE EXCHANGE IN THAT IT PERMITTED THE ALTERATION OF A FORM GIVEN AN EXCHANGE FLOOR OFFICIAL. Current Status: Final Resolution: Consent Resolution Date: 12/26/1990 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $60,000.00 Resolution Details: CONSENT TO CENSURE AND $60,000 FINE. Summary: SEE RESULTS. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 10/13/1989 Docket/ Case Number: 90-189, 90-190 Allegations: VIOLATION OF NYSE RULE 104. Current Status: Final Resolution: Settled Resolution Date: 12/26/1990 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $90,000.00 Resolution Details: THE FINE IS ALLOCATED $60,000.00 TO SLK, $30,000 TO JAMES E. LUTTON. Summary: NASD BrokerCheck October 12, 2005 Page 64 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) ******* REGULATORY ACTION (80 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 09/01/1993 Initiated By: HEARING PANEL Date initiated: 09/01/1993 Docket/ Case Number: 93-86 Allegations: FAILED TO USE DUE DILIGENCE TO DETERMINE THE ESSENTIAL FACTS ABOUT CUSTOMER ACCOUNTS AND VIOLATED RULE 342(b) BY FAILING TO PROVIDE APPROPRIATE SUPERVISORY CONTROL AND BY FAILING TO ESTABLISH A SYSTEM OF REVIEW TO DETERMINE IF DELEGATED AUTHORITY WAS EXERCISED PROPERLY. Current Status: Final Resolution: Consent Resolution Date: 09/01/1993 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $75,000.00 Resolution Details: CONSENT TO CENSURE AND $75,000 FINE. Summary: PENALTY IMPOSED TO TAKE EFFECT IMMEDIATELY. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NYSE AND NYFE JOINTLY. Date initiated: 06/23/1993 Docket/ Case Number: NYSE 93-86 Allegations: VIOLATION OF NYSE RULE 342(B). Current Status: Final Resolution: Settled Resolution Date: 06/23/1993 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $75,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (81 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/21/1993 Initiated By: HEARING BOARD Date initiated: 07/21/1993 Docket/ Case Number: 93-77 Allegations: VIOLATED EXCHANGE RULE 750(e)(iii) BY FAILING TO MAINTAIN MINIMUM CAPITAL REQUIREMENTS FOR OPTION SPECIALITS; EXCHANGE NASD BrokerCheck October 12, 2005 Page 65 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) RULE 440 AND SEA REGULATION 240.17a-4 BY FAILING TO PRESERVE CERTAIN REQUIRED RECORDS. Current Status: Final Resolution: Consent Resolution Date: 07/21/1993 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: CONSENT TO CENSURE AND $7,500 FINE. Summary: Not Provided *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 06/08/1993 Docket/ Case Number: NYSE 93-77 Allegations: VIOLATION OF EXCHANGE RULE 750(E)(III) AND RULE 440 AND SEA REGUATION 240.17A-4 BY FAILING TO PRESERVE CERTAIN RECORDS. Current Status: Final Resolution: Settled Resolution Date: 06/10/1993 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $7,500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (82 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/19/1990 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/19/1990 Docket/ Case Number: MS-966-AWC Allegations: Current Status: Final Resolution: Consent Resolution Date: 10/15/1990 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-966-AWC (A): LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED JULY 19, 1990 AGAINST RESPONDENT MEMBER TROSTER, SINGER CORPORATION, ALLEGING VIOLATIONS OF PART VI, SECTION 2(d) OF SCHEDULDE D FOR ENTERING NASDAQ QUOTATIONS CONTAINING EXCESS SPREADS. THE NASD BrokerCheck October 12, 2005 Page 66 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTED ON SEPTEMBER 13, 1990 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON OCTOBER 15, 1990. $1,000.00 FINE. ***$1,000.00 PAID ON 11/19/90 INVOICE #90-MS-1253*** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/23/1990 Docket/ Case Number: MS-966-AWC Allegations: TSCO VIOLATED PART VI SECTION 2(D) OF SCHEDULE D. Current Status: Final Resolution: Settled Resolution Date: 09/13/1990 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (83 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 01/10/1991 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 09/18/1990 Docket/ Case Number: MS-994-AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/10/1991 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-994-AWC (A) LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED SEPTEMBER 18, 1990 AGAINST RESPONDENT MEMBER TROSTER SINGER ALLEGING VIOLATIONS OF PART VI, SECTION 2(d) OF SCHEDULE D FOR ENTERING NASDAQ QUOTATIONS CONTAINING EXCESS SPREADS. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON OCTOBER 31, 1990 AND BY THE BUSINESS CONDUCT COMMITTEE ON JANUARY 10, 1991. $3,000 FINE. *****PER FINES & COSTS NOTIFICATION RECEIVED 3/18/91, $3,000.00 PAID 2/27/91, INVOICE #91-MS-165.***** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. NASD BrokerCheck October 12, 2005 Page 67 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date initiated: 09/18/1990 Docket/ Case Number: MS-994-AWC Allegations: VIOLATIONS OF PART VI, SECTION 2(D) OF SCHEDULE D FOR ENTERING NASDAQ QUOTATIONS CONTAINING EXCESS SPREADS. Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/10/1991 Sanctions Ordered: Monetary/Fine Monetary Amount: $3,000.00 Resolution Details: SEE ABOVE. Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-994-AWC(A) LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED 09/18/1990 AGAINST RESPONDENT MEMBER TROSTER SINGER ALLEGING VILATIONS OF PART VI, SECTION 2(D) OF SCHEDULE D FOR ENTERING NASDAQ QUOTATIONS CONTAINING EXCESS SPREADS. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON 10/31/1990 AND BY THE BUSINESS CONDUCT COMMITTEE ON 01/10/1991. $3,000 FINE. *****PER FINES & COSTS NOTIFICATION RECEIVED 03/18/1991, $3,000.00 PAID 02/27/1991, INVOICE #91-MS-165.***** ******* REGULATORY ACTION (84 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 03/18/1993 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 12/08/1992 Docket/ Case Number: CMS930004 AWC Allegations: Current Status: Final Resolution: Consent Resolution Date: 03/18/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $4,250.00 Resolution Details: Summary: 3/22/93: MARKET SURVEILLANCE COMMITTEE COMPLAINT #CMS930004 AWC (A) LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED DECEMBER 8, 1992 AGAINST RESPONDENT MEMBER TROSTER SINGER CORPORATION ALLEGING VIOLATIONS OF ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE IN THAT THE FOLLOWING RESPONDENTS UPDATED QUOTATIONS ION THE BULLETIN BOARD SYSTEM OUTSIDE THE ALLOWABLE TIME FOR UPDATING FOREIGN OR ADR SECURITIES ON THE BULLETIN BOARD. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON MARCH 4, 1993 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON MARCH 18, 1993. **$250.00 FINE. **$250.00 PAID ON 3/30/93 INVOICE #93-MS-270** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 01/18/1993 NASD BrokerCheck October 12, 2005 Page 68 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Docket/ Case Number: CMS -- 930004 Allegations: TSCO VIOLATED ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE. Current Status: Final Resolution: Settled Resolution Date: 03/04/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $250.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (85 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 06/18/1993 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 03/04/1993 Docket/ Case Number: CMS930010-AWC Allegations: Current Status: Final Resolution: Consent Resolution Date: 06/18/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $1,000.00 Resolution Details: Summary: 6/28/93: MARKET SURVEILLANCE COMMITTEE COMPLAINT #CMS930010 - AWC (A) LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED MARCH 4, 1993 AGAINST RESPONDENT MEMBER TROSTER SINGER CORPORATION ALLEGING VIOLATIONS OF PART VI, SECTION 2(d) OF SCHEDULE D FOR ENTERING NASDAQ QUOTATIONS CONTAINING EXCESS SPREADS. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON APRIL 29, 1993 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON JUNE 18, 1993. $1,000.00 FINE. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 03/04/1993 Docket/ Case Number: CMS -- 930010 Allegations: TSCO VIOLATED PART VI SECTION 2(D) OF SCHEDULE D. Current Status: Final Resolution: Settled Resolution Date: 04/29/1993 Sanctions Ordered: Monetary/Fine NASD BrokerCheck October 12, 2005 Page 69 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Monetary Amount: $1,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (86 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/07/1993 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 03/31/1993 Docket/ Case Number: CMS930017 AWC Allegations: Current Status: Final Resolution: Consent Resolution Date: 07/07/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $2,000.00 Resolution Details: Summary: 7/9/93: MARKET SURVEILLANCE COMMITTEE COMPLAINT #CMS930017 AWC (A) LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED MARCH 31, 1993 AGAINST RESPONDENT MEMBER TROSTER SINGER CORPORATION ALLEGING VIOLATIONS OF PART VI, SECTION 2(d) OF SCHEDULE D FOR ENTERING NASDAQ QUOTATIONS CONTAING EXCESS SPREADS. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE COMPLAINT ON 6/3/93 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON JULY 7, 1993. *$2,000.00 FINE* *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 04/20/1993 Docket/ Case Number: CMS -- 930017 Allegations: TSCO VIOLATED PART VI, SECTION 2(D) OF SCHEDULE D. Current Status: Final Resolution: Settled Resolution Date: 06/03/1993 Sanctions Ordered: Monetary/Fine Monetary Amount: $2,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (87 of 93) ******* Reporting Source: Regulator (Form U-6) NASD BrokerCheck October 12, 2005 Page 70 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Date Reported: 05/17/1989 Initiated By: PACIFIC STOCK EXCHANGE Date initiated: 05/17/1989 Docket/ Case Number: C-70331-1 Allegations: Current Status: Final Resolution: Decision Resolution Date: 05/17/1989 Sanctions Ordered: Monetary/Fine Monetary Amount: $15,000.00 Resolution Details: Summary: ^9/28/90, LITIGATION, ACTIONS AND PROCEEDINGS, BULLETIN FOR QUARTER ENDING 09/03/89, VOLUME 55, BULLETIN NO. 03, WHOLE NO. 353, PAGE 375 DISCLOSES THAT ON MAY 17, 1989, SPEAR, LEEDS & KELLOGG WAS FINED $15,000 BY THE PACIFIC COAST STOCK EXCHANGE FOR VIOLATION OF RULE I SECTION 12(k), ARTICLE XI, SECTIONS 2(a) & 2(b) FRONTRUNNING. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: THE PACIFIC STOCK EXCHANGE, INC. Date initiated: 01/01/1989 Docket/ Case Number: C-70331-1 Allegations: VIOLATION OF RULE I, SECTION 12(K), ARTICLE XII SECTION 2(A) AND 2(B) OF THE PSE. Current Status: Final Resolution: Settled Resolution Date: 05/17/1989 Sanctions Ordered: Monetary/Fine Monetary Amount: $15,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (88 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 07/27/1990 Initiated By: NEW YORK STOCK EXCHANGE Date initiated: 07/27/1990 Docket/ Case Number: 90-36 Allegations: SEE RESULTS Current Status: Final Resolution: Consent Resolution Date: 07/27/1990 NASD BrokerCheck October 12, 2005 Page 71 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $20,000.00 Resolution Details: SPEAR, LEEDS & KELLOGG, A MEMBER ORGANIZATION, VIOLATED EXCHANGE RULE 401 IN THAT IT FAILED TO ADHERE TO THE PRINCIPLES OF GOOD BUSINESS PRACTICE IN THE CONDUCT OF ITS ACTIVITIES AS A PRIME BROKER; VIOLATED REGULATION 240.17A-3 PROMULGATED UNDER THE SECURITIES EXCHANGE ACT OF 1934, IN THAT IT FAILED TO PROPERLY MAINTAIN ITS BOOKS AND RECORDS, AND VIOLATED REGULATION 240.17-4(B)(4) IN THAT IT FAILED TO MAINTAIN FOR AT LEAST ONE YEAR COPIES OF "SUFFICIENT FUNDS" LETTERS IT SENT TO OTHER BROKERS---CONSENT TO CENSURE AND FINE OF $20,000. Summary: SEE RESULTS *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 01/01/1990 Docket/ Case Number: 90-147 Allegations: VIOLATION OF NYSE RULE 401 AND VIOLATION OF REGULATION T. Current Status: Final Resolution: Decision Resolution Date: 07/23/1990 Sanctions Ordered: Monetary/Fine Monetary Amount: $20,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (89 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 10/31/1989 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 02/27/1989 Docket/ Case Number: MS-793 Allegations: Current Status: Final Resolution: Consent Resolution Date: 10/31/1989 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $25,000.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-793 FILED FEBRUARY 27, 1989 AGAINST SPEAR, LEEDS AND KELLOGG, MEMBER AND ANTHONY ABBATTISTA, REGISTERED REPRESENTATIVE. THE COMPLAINT CONTAINS TWO (2) CAUSES OF COMPLAINT. THE FIRST CAUSE OF COMPLAINT ALLEGES VIOLATIONS OF ARTICLE III, SECTION 1 OF THE NASD'S NASD BrokerCheck October 12, 2005 Page 72 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) RULES OF FAIR PRACTICE IN THAT RESPONDENT MEMBER FAILED TO COMPLY WITH SECTION (c) OF THE RULES OF FAIR PRACTICE AND PROCEDURES FOR SOES. SPECIFICALLY, DURING THE PERIOD FROM ON OR ABOUT JUNE 23, 1986 THROUGH ON OR ABOUT MARCH 9, 1987, RESPONDENT MEMBER EXECUTED THROUGH SOES NUMEROUS AGENCY PURCHASE AND SALE ORDERS FROM THE ACCOUNTS OF VARIOUS NON-PUBLIC CUSTOMERS AND ONE PRINCIPAL PURCHASE ORDER FOR THE SPEAR, LEEDS AND KELLOGG ERROR ACCOUNT. THE SECOND CAUSE OF COMPLAINT ALLEGES VIOLATIONS OF ARTICLE III, SECTIONS 1 AND 27 OF THE NASD'S RULES OF FAIR PRACTICE AS TO RESPONDENTS MEMBER AND ABBATTISTA. DURING THE PERIOD FROM ON OR ABOUT JUNE 23, 1986 THROUGH ON OR ABOUT JUNE 30, 1988, SPEAR, LEEDS AND KELLOGG AND ABBATTISTA FAILED TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN PROCEDURES WHICH WOULD HAVE ENABLED THEM TO SUPERVISE PROPERLY THE ACTIVITIES OF ASSOCIATED PERSONS TO ASSURE COMPLAINCE WITH THE SOES RULES OF PRACTICE AND PROCEDURES INCLUDING THE REQUIREMENT THAT SOES ORDERS ONLY BE EXECUTED FOR PUBLIC CUSTOMERS. A DECISION WAS RENDERED ON OCTOBER 31, 1989 ACCEPTING AN OFFER OF SETTLEMENT SUBMITTED BY RESPONDENTS. UNDER THE TERMS OF THE OFFER, THE MEMBER IS CENSURED AND FINED $25,000 BASED UPON THE FINDING OF THE VIOLATIONS ALLEGED IN THE COMPLAINT. THE ALLEGATIONS AGAINST ABBATTISTA ARE DISMISSED. ***$25,000.00 PAID ON 1/3/90 INVOICE #89-MS-882.*** *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 02/27/1989 Docket/ Case Number: MS-793 Allegations: VIOLATION OF ARTICLE II, SECTIONS 1 AND 27 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE. Current Status: Final Resolution: Settled Resolution Date: 10/31/1989 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $25,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (90 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 02/19/1980 Initiated By: NEW YORK STOCK EXCHANGE Date initiated: 02/19/1980 Docket/ Case Number: 79-44 Allegations: Current Status: Final Resolution: Stipulation and Consent Resolution Date: 02/19/1980 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $25,000.00 Resolution Details: NASD BrokerCheck October 12, 2005 Page 73 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Summary: NYSE - 02/19/80 (DECISION 79-44) SUBMITTED A STIPULATION AND CONSENTED TO CENSURE AND FINE OF $25,000 WITHOUT ADMITTING OR DENYING ITS GUILT. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NEW YORK STOCK EXCHANGE, INC. Date initiated: 05/23/1977 Docket/ Case Number: 79-44 Allegations: VIOLATION OF RULE 401 AND SEC RULES 17A-3 AND 17A-4. Current Status: Final Resolution: Settled Resolution Date: 02/19/1980 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $25,000.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (91 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 01/05/1989 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 09/26/1988 Docket/ Case Number: MS-778-AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 01/05/1989 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-778-AWC: LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED SEPTEMBER 26, 1988 AGAINST RESPONDENT SPEAR, LEEDS & KELLOGG ALLEGING VIOLATIONS OF PART VI, SECTION 4(a) OF SCHEDULE D IN THAT THE RESPONDENT FAILED TO REPORT ITS NASDAQ VOLUME. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON DECEMBER 5, 1988 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON JANUARY 5, 1989. $500 FINE $500 FINE PAID 10/17/88 *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS. Date initiated: 09/26/1988 NASD BrokerCheck October 12, 2005 Page 74 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Docket/ Case Number: MS-778-AWC Allegations: VIOLATION OF PART VI, SECTION 4(A) OF SCHEDULE D OF ASSOCIATION'S BY LAWS. Current Status: Final Resolution: Settled Resolution Date: 01/05/1989 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (92 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 10/13/1988 Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/08/1988 Docket/ Case Number: MS-743-AWC Allegations: Current Status: Final Resolution: Acceptance, Waiver & Consent(AWC) Resolution Date: 10/13/1988 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: Summary: MARKET SURVEILLANCE COMMITTEE COMPLAINT #MS-743-AWC: LETTER OF ACCEPTANCE, WAIVER AND CONSENT FILED JULY 8, 1988 AGAINST RESPONDENT SPEAR, LEEDS & KELLOGG ALLEGING VIOLATIONS OF PART VI, SECTION 4(a) OF SCHEDULE D IN THAT THE RESPONDENT FAILED TO REPORT ITS NASDAQ VOLUME. THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT WAS ACCEPTED BY THE MARKET SURVEILLANCE COMMITTEE ON AUGUST 25, 1988 AND BY THE NATIONAL BUSINESS CONDUCT COMMITTEE ON OCTOBER 13, 1988. $500 FINE $500 FINE PAID 7/25/88 *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. Date initiated: 07/08/1988 Docket/ Case Number: MS-743-AWC Allegations: VIOLATION OF PART VI, SECTION 4(A) OF SCHEDULE D OF ASSOCIATION'S BY-LAWS. Current Status: Final Resolution: Settled Resolution Date: 10/13/1988 Sanctions NASD BrokerCheck October 12, 2005 Page 75 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 REGULATORY ACTIONS(cont.) Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: ******* REGULATORY ACTION (93 of 93) ******* Reporting Source: Regulator (Form U-6) Date Reported: 03/20/1979 Initiated By: AMERICAN STOCK EXCHANGE Date initiated: 03/20/1979 Docket/ Case Number: 78-S-13 Allegations: Current Status: Final Resolution: Decision Resolution Date: 03/20/1979 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: Summary: AMERICAN STOCK EXCHANGE, INC., DECISION 78-S-13. THE EXCHANGE CENSURED AND FINED SPEAR LEEDS & KELLOGG AND THE SPECIALIST UNIT OF PETER KELLOGG, ROLAND SHERRER, PETER DELUCIA, DAVID CHASSEN, IRVING STEINHOUSE, RALPH FOGEL AND ALAN WAGNER FOR VIOLATED EXCHANGE RULE 904. DECISION DATED 3/20/79. *********************************** Reporting Source: Brokerage Firm (Form BD) Date Reported: Initiated By: AMERICAN STOCK EXCHANGE, INC. Date initiated: 03/13/1979 Docket/ Case Number: 78-S-13 Allegations: VIOLATION OF EXCHANGE RULE 904. Current Status: Final Resolution: Decision Resolution Date: 03/20/1979 Sanctions Ordered: Monetary/Fine, Censure Monetary Amount: $500.00 Resolution Details: SEE ABOVE. Summary: NASD BrokerCheck October 12, 2005 Page 76 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 ******************************************************************************** BROKERAGE FIRM ARBITRATIONS ******************************************************************************** DISCLOSURE INFORMATION This section contains summary information regarding arbitration awards rendered in a forum administered by NASD that involve securities or commodities disputes between NASD member firms and public customers. Some of the fields in this section of the report may be blank if the information was not provided to CRD. Unlike the arbitration information required to be reported by individual brokers via Form U-4, brokerage firm arbitration information is not required to be reported on Form BD and is therefore disclosed through NASD BrokerCheck via a slightly different mechanism. Summary information regarding NASD arbitration awards involving securities and commodity disputes between public customers and NASD member firms is updated and disclosed on brokerage firm NASD BrokerCheck reports generally within 10-15 days after the arbitration award is signed and served to all parties. The full text of arbitration awards issued by arbitrators at NASD and at other forums is available online as a cooperative arrangement between NASD Dispute Resolution and the Securities Arbitration Commentator (SAC) at www.nasdadr.com. The awards are generally available within one month after the arbitration award is signed and served to all parties. To access the arbitration award information it is suggested that you first view the summary information available via NASD BrokerCheck, and then use the case number included in NASD BrokerCheck report to access the full text of the award at www.nasdadr.com. ** OCCURRENCE COUNTS ** 5 Record(s) ******************************************************************************** ** FIELD DEFINITIONS ** * Type of Event: Type of disclosure event (e.g., arbitration) that details pertain to. * Update: An indication (i.e., yes or no) as to whether the information is an update to earlier information reported about the arbitration proceeding. * Arbitration Forum: Forum that administered the arbitration proceeding. * Case Served Date: Date case was served on respondent(s). * Case Number: Case number assigned to the arbitration proceeding. * Allegations: Allegations made by the customer(s) which lead to the arbitration proceeding. * Type of Securities: Type of securities allegations relate to. * Relief Asked: Alleged dollar amount of compensatory damages sought by the customer(s). * Disposition: Disposition of the arbitration proceeding. * Disposition Date: Date of disposition. * Relief Awarded: Details related to the relief awarded to the parties involved in the arbitration proceeding. ******************************************************************************** **** BROKERAGE FIRM ARBITRATION (1 of 5) **** Type of Event: ARBITRATION Update: NO Arbitration Forum: NASD Case Served Date: 09/05/2003 Case Number: 03-05739 Allegations: FRAUDULENT ACTIVITY-BRCH OF FIDUCIARY DT; FRAUDULENT ACTIVITY-MISREPRESENTATION; FRAUDULENT ACTIVITY-MANIPULATION Type of Securities: COMMON STOCK **** BROKERAGE FIRM ARBITRATION (2 of 5) **** NASD BrokerCheck October 12, 2005 Page 77 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 BROKERAGE FIRM ARBITRATIONS(cont.) Type of Event: ARBITRATION Update: YES Arbitration Forum: NASD Case Served Date: 12/15/1998 Case Number: 98-03979 Allegations: ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE Type of Securities: UNKNOWN TYPE OF SECURITIES Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $500,000.00 SEVERALLY ; ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $375,000.00 SEVERALLY ; PUNITIVE/EXEMPLARY DAMAGES, ASKED AMOUNT $2,000,000.00 SEVERALLY ; ATTORNEY'S FEES, ASKED AMOUNT $0.00 SEVERALLY ; OTHER COSTS, ASKED AMOUNT $0.00 SEVERALLY Disposition: NO AWARD AGAINST PARTY Disposition Date: 01/02/2003 Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; ACTUAL/COMPENSATORY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; PUNITIVE/EXEMPLARY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; ATTORNEY'S FEES, RELIEF REQUEST HAS BEEN DENIED IN FULL; OTHER COSTS, RELIEF REQUEST HAS BEEN DENIED IN FULL **** BROKERAGE FIRM ARBITRATION (3 of 5) **** Type of Event: ARBITRATION Update: NO Arbitration Forum: NASD Case Served Date: 02/17/2000 Case Number: 00-00194 Allegations: FRAUDULENT ACTIVITY-SUITABILITY; FRAUDULENT ACTIVITY-MISREPRESENTATION; FRAUDULENT ACTIVITY - OMISSION OF FACTS; ACCOUNT RELATED - FAILURE TO SUPERVISE Type of Securities: UNKNOWN TYPE OF SECURITIES **** BROKERAGE FIRM ARBITRATION (4 of 5) **** Type of Event: ARBITRATION Update: NO Arbitration Forum: NASD Case Served Date: 02/04/1998 Case Number: 97-05729 Allegations: ACCOUNT RELATED-NEGLIGENCE; EXECUTIONS-FAILURE TO EXECUTE Type of Securities: COMMON STOCK Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $100,000.00 JOINTLY AND SEVERALLY; OTHER COSTS, ASKED AMOUNT $0.00 JOINTLY AND SEVERALLY; OTHER MONETARY RELIEF, ASKED AMOUNT $0.00 JOINTLY AND SEVERALLY Disposition: CASE IS CLOSED, BY HEARING Disposition Date: 11/20/1998 Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; OTHER COSTS, RELIEF REQUEST HAS BEEN DENIED IN FULL; OTHER MONETARY RELIEF, RELIEF REQUEST HAS BEEN DENIED IN FULL NASD BrokerCheck October 12, 2005 Page 78 This information is current as of: 10/12/2005 ________________________________________________________________________________ NASD Member Firm: GOLDMAN SACHS EXECUTION & CLEARING, L.P. CRD Number: 3466 BROKERAGE FIRM ARBITRATIONS(cont.) **** BROKERAGE FIRM ARBITRATION (5 of 5) **** Type of Event: ARBITRATION Update: NO Arbitration Forum: NASD Case Served Date: 11/25/1991 Case Number: 91-03667 Allegations: BRCH OF FIDUCIARY DT; ACCOUNT RELATED - FAILURE TO SUPERVISE; MISREPRESENTATION; SUITABILITY Type of Securities: Not Provided Relief Asked: ACTUAL/COMPENSATORY DAMAGES, ASKED AMOUNT $27,562.50 JOINTLY AND SEVERALLY; PUNITIVE/EXEMPLARY DAMAGES, ASKED AMOUNT $20,000.00 JOINTLY AND SEVERALLY; ATTORNEY'S FEES, ASKED AMOUNT $0.00 JOINTLY AND SEVERALLY Disposition: CASE IS CLOSED, BY HEARING Disposition Date: 09/18/1992 Relief Awarded: ACTUAL/COMPENSATORY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; PUNITIVE/EXEMPLARY DAMAGES, RELIEF REQUEST HAS BEEN DENIED IN FULL; ATTORNEY'S FEES, RELIEF REQUEST HAS BEEN DENIED IN FULL ************ END OF REPORT ************