Securities industry regulations require that registered Broker/Dealers inform their clients of their plans to address the possibility of a business disruption that potentially results from power outages, natural disasters, or other events. Sparring Partners Capital has a business continuity program which we review and update on a regular basis. The plan provides for continuation of client service by the beginning of the next day.

Here are a few examples of what might occur if we were to experience a business disruption of varying magnitude:

• Should our offices become unavailable for any reason, we would work from alternate locations until a new facility could be found.
• Should our electronic information become unavailable for any reason, we would restore our data from our backup facility.
• Should the power be unavailable in our business district, we would operate from another location with power, if possible. If the power outage is widespread, we would operate with reduced capability until power was restored.
• Should our office telephone numbers become unavailable for any reason, clients should contact us using our cell phone numbers.
• While no contingency plan can eliminate all risk of service interruption, we periodically assess and update our plans to mitigate all reasonable risk.