Merrill Lynch, Pierce, Fenner & Smith Incorporated Mutual Fund Class B and C Shares

Excluded Purchases

 

The following purchases will be excluded:

  • Purchases in 401K Plan accounts for which the firm is the record keeper, and mutual fund transactions in annuity contract sub accounts, are excluded from remediation based on the fact that they are subject to specific contractual pricing terms or the "point of purchase" occurred away from the firm;

  • Purchases of Class B shares, which, when aggregated with other Class B share purchases at the firm by the same household in the same fund family during the relevant period, total less than $100,000, and involve a mutual fund that imposes a Class A share initial sales charge exceeding 4.00 percent for purchase amounts less than $100,000;

  • Purchases of Class B and Class C shares which were later cancelled at no cost to the customer;

  • Purchases of Class B and Class C shares for which customers have previously settled and signed releases of claims against the firm;

  • Purchases of Class B shares, which, when aggregated with other Class B share purchases at the firm by the same household in the same fund family during the relevant period, total less than $100,000, and where the customer (1) entered into a systematic withdrawal plan at the time of the Class B share purchase, and immediately began receiving systematic withdrawals from the Class B share purchase without incurring CDSCs, or (2) chose not to reinvest all capital gains and dividends from the Class B share purchase;

  • Purchases of Class B shares, which, assuming a 5.00 percent annual rate of return and considering all expenses, are projected to have a higher redemption value, determined as of the end of each year following the purchase date, in comparison to Class A shares in two or more years during the period beginning with the effective date of the AWC and ending on the date the Class B shares are scheduled to automatically convert to Class A shares under the terms of the fund prospectuses in effect at the time of the purchase;

  • Purchase Purchases of Class B and Class C shares where the gross principal amount invested was $250 or less;

  • Purchases of Class B shares, which, assuming a 5.00 percent annual rate of return and considering all expenses, are projected, as of the date on which the Class B shares are scheduled to automatically convert to Class A shares, to have a value within $100 of the projected value of Class A shares had the customers purchased Class A shares instead of Class B shares;

  • Purchases of Class B shares which, when aggregated with other Class B share purchases at the firm by the same household in the same fund family during the relevant period, total less than $100,000, and involve a mutual fund listed in "Schedule A" attached to the AWC; and

  • Purchases of Class B shares which, when aggregated with other Class B share purchases at the firm by the same household in the same fund family during the relevant period, total less than $250,000, and involve a mutual fund listed in "Schedule B" attached to the AWC.
Last Updated: 12/19/2005