Overview. On April 7, 2004, the Securities and Exchange Commission (SEC) approved the new FINRA Rule 3500 Series, which requires members to establish emergency preparedness plans and procedures. Rule 3510 requires each member to create, maintain and update a Business Continuity Plan ("BCP") and enumerates certain requirements that each plan must address. Each firm is required to perform at least annually a review of their plan, and update it upon any material change. Each member firm must also disclose to its customers how its business continuity plan addresses the possibility of a future significant business disruption and how the member plans to respond to events of varying scope. Rule 3520 requires members to designate two Emergency Contact persons and provide this information to FINRA via electronic process.

1. Introduction
   The following is the Business Continuity Plan ("BCP") in place for PackerKiss Securities, Inc. This plan addresses the possibility of a future significant business disruption and how the firm plans to respond to potentially disrupting events. Information summarizing the firm's BCP will be included with new account information and will be provided at least annually to existing customers. A copy of our plan will be available on the firm's website at www.pksecurities.com and by mail upon request.
   
   
2. Emergency Contact Persons.
   As stated in the designation letter on June 10, 2004, the Company has designated Mary A. Packer as the emergency contact person, who can be contacted at: (561) 272-0112 or via email: mpacker@pksecurities.com, and Jeffrey L. Kiss as the second emergency contact person, who can be contacted at: (407) 678-9970 or via email: jkiss@pksecurities.com. These names will be updated in the event of a material change, and/or within 17 business days after the end of each calendar quarter, through the FINRA's Contract System "NCS" (formerly known as the FINRA Member Firm Contact Questionnaire) at www.FINRAr.com/ncs.asp.
   
   Rule: FINRA Rule 3520
   
   
3. Firm Policy.
   Our firm's policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees' lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm's books and records, and allowing our customers to transact business.
   
   
   1. Significant Business Disruptions (SBDs):
      Our plan anticipates two kinds of Significant Business Disruptions; internal and external. Internal SBDs affect only our firm's ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, hurricane or a wide-scale, regional disruption.
   2. Approval and Execution Authority:
      Mary A. Packer, President and Registered Principal, is responsible for approving the plan and for conducting the required annual review. Mary A. Packer, President and Jeffrey L. Kiss, Vice-President & Registered Principal, have the authority to execute this BCP.
   3. Plan Location and Access:
      Our firm will maintain copies of its BCP plan, the annual reviews, and the changes that have been made to it, in our Main Office located in Delray Beach, Florida as well as in each Branch office. An electronic copy of our plan is located on our website www.pksecurities.com under the Business Continuity Plan tab.
4. Business Description.
   The professionals at PackerKiss Securities, Inc. ("PK Securities") specialize in serving municipal entities in the reinvestment of their bond proceeds, by formulating innovative solutions for both tax- exempt and taxable transactions and in derivate product needs. Our firm does not perform any type of clearing functions for itself or others. Furthermore, we do not hold customer funds or securities.
   
   
5. Office Locations.
   Our Firm has offices located in the following locations:
   
   
   1. Main Office:
      Our Main Office is located in Delray Beach, Florida. The contact information is as follows:
      
      15 North East Fourth Street
      Suite A
      Delray Beach, FL 33444
      Main Telephone #: (561) 272-0112
      Fax #: (561) 272-2218
      
      Employees at this location:
      1. Mary A. Packer
         President and Registered Principal.
         Cell Phone #: (561) 866-9600
         Email: mpacker@pksecurities.com
         
      2. Cheryl Resnick
         Office Staff
         Cell Phone #: (561) 901-6273
         Email: cresnick@pksecurities.com
         
      3. Natalie Ospina
         Office Staff.
         Cell Phone #: (561) 721-5880
         Email: nospina@pksecurities.com
      
      
   2. Branch Office # 1:
      Our Branch Office # 1 is located in Winter Park, Florida. The contact information is as follows:
      
      1381 Sawgrass Court
      Winter Park, FL 32792
      Main Telephone #: (407)678-9970
      Fax #: (407) 678-9635
      
      Employees at this location:
      1. Jeffrey L. Kiss
         Vice President and Registered Principal.
         Cell Phone #: (407) 257-5418
         Email: jkiss@pksecurities.com
         
      
      
   3. Branch Office # 2:
      Our Branch Office # 2 is located in San Rafael, California. The contact information is as follows:
      
      5 Mabry Way
      San Rafael, CA 94903
      Main Telephone #: (415) 492-9293
      Fax #: (415) 479-6668
      
      Employees at this location:
      1. Penny Palmer
         Registered Representative.
         Cell Phone #: (415) 987-6115
         Email: ppalmer@pksecurities.com
         
   
   
6. Alternative Physical Location (s) of Employees
   In the event of a Significant Business Disruption that affects the operation of our office locations, the firm will use the following as alternate physical locations:
   1. Main Office All employees from this location will report to 22710 El Dorado Drive, Boca Raton, Fl, 33432. All of the firm's main telephone lines will be forwarded to this location during the disruption (561-347-1141).
   2. Branch Office # 1 Jeffrey L. Kiss will use the Delray Beach, Main Office as an alternative location and all of his phone lines will be forwarded to the Main office phone line as stated above.
   3. Branch Office # 2 Penny Palmer will report to 757 Charlton Circle, Pleasant Hill, CA 94523. Her office phone lines will be forwarded to her mobile phone.
      
   Rule: FINRA Rule 3510 (c) (6).
   
   
7. Alternative Location (s) of Books and Records
   1. OSJ Main Office. Our main office located at 15 NE 4th Street, Suite A, Delray Beach, FL 33444, will maintain our original books and records of the current year and the previous 2 years in an accessible place.
      
      Rule 17a-3 and 17a-4.
   2. Off-Site Location. Hard copies and electronic versions of the Books and Records from inception will be maintained at the storage facility located at 14216 Military Trail, Delray Beach, FL 33484, Unit A21G. Electronic versions will be recorded in a non-rewritable, non-erasable format. These records will be indexed and dated in order to permit immediate location if needed.
8. Customer's Access to Funds and Securities
   Our firm does not maintain custody of Customer's funds or securities and does not use a Clearing Firm.
   
   Rule: FINRA Rule 3510 (a);SEC Rule 15c3-1.
   
   
9. Data Back-Up and Recovery (Hard Copy and Electronic)
   Our firm maintains its primary hard copy books and records and its electronic records at the Main Branch located in Delray Beach, Florida. The following table will illustrate the types and forms of documents maintained by our Office, as well as the person (s) responsible for their maintenance:
   
   

   Main Office Files Mary A. Packer, President and Registered Representative (561) 272-0112 x104 Customer Transactions, Accounts, Corporate Books, Corporate Taxes, State Registration & Compliance, Amendments on Form B/D, Amendments on Form U-4, Registered Representatives Files, FINRA Correspondence, Continuing Education Files, Firm Element Training files, Fidelity Bond, Audited Financial Report, Customer Correspondence. Robert Song, FinOp (646) 382-6148 General Ledger, Focus Reports, Accounting, Bank Statements.

   
   Our firm maintains its back-up hard copy books and records at each branch office location. The supervisor for each branch is responsible for the maintenance of these back-up books and records. Our firm backs up its paper records by copying and shipping them to our 2 branch offices. We back up our records every quarter.
   
   The firm backs up its electronic records daily by inserting the back-up tape into the network computer. Every day, Natalie Ospina, is responsible for taking the back-up tape home and replacing it the next morning.
   
   In the event of an internal or external SBD that causes the loss of our paper records, we will physically recover them from our back-up site. If our primary site is inoperable, we will continue operations from our alternate location (s). For the loss of electronic records, we will either physically recover the stored media or electronically recover data from our back-up site, or, if our primary site is inoperable, continue operations from our alternate location (s).
   
   Rule: FINRA Rule 3510 (c) (1).
   
   
10. Financial and Operational Assessments
    
    
    1. Operational Risk
       In the event of an SBD, we will immediately identify what means will permit us to communicate with our customers, employees, critical business constituents and regulators. Although the effects of an SBD will determine the means of alternative communication, the options we will employ will include, email, telephone voice mail and our web site. In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy & Electronic).
       
       Rule: FINRA Rule 3510 (c) (3) & (f) (2).
       
       
    2. Financial and Credit Risk
       In the event of an SBD, we will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance. If we determine that we may be unable to meet our obligations or to continue to fund our operations, we will request additional financing from our principal reserves, our bank or other credit sources.
       
       Rule: FINRA Rule 3510 (c) (3), (c) (8) & (f) (2).
       
       
11. Mission Critical System
    Our mission critical transactions are those that ensure prompt and accurate processing of securities transactions, including preparing the Term Sheet / Bid Form, bidding process and delivery of our Broker Certificate on settlement day. All of these steps are performed in its entirety by PK Securities. As mentioned before, our firm does not perform any type of clearing functions for itself or others. Furthermore, we do not hold customer funds or securities. We have primary responsibility for establishing and maintaining our business relationships with our customers and have sole responsibility for our mission critical functions.
    
    Currently, our firm receives orders from its customers via email, or by telephone. During an SBD, either internal or external, we will continue to take orders through any of these methods that are available and reliable.
    
    
12. Alternate Communications Between the Firm and Customers, Employees and Regulators
    
    
    1. Customers
       We now communicate with our customers using the telephone, email, fax or U.S Mail. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. For example, if we have communicated with a party by email but the Internet is unavailable, we will call them on the telephone and follow up where a record is needed with paper copy by mail.
       
       
    2. Employees
       We now communicate with our employees using telephone, email, fax and in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. We will also employ a call tree so that senior management can reach all employees quickly during an SBD. The call tree includes all staff home and office phone numbers.
       
       

       Caller Call Recipients Mary A. Packer Cheryl Resnick, Natalie Ospina.

       
       Rule: FINRA Rule 3510 (c) (5).
       
       
    3. Regulators
       We are currently members of the following SROs: FINRA, SIPC and Registered with the SEC. We communicate with our regulators using the telephone, fax and by mail. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past.
       
       Rule: FINRA Rule 3510 (c) (9).
       
       
13. Critical Business Constituents, Banks and Counter-Parties
    
    
    1. Business Constituents
       We have contacted our critical business constituents (businesses with which we have an ongoing commercial relationship in supporting our operating activities, such as vendors) and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD. We will quickly establish alternative arrangements if a business constituent can't provide the needed goods or services to our firm.
       
       Our suppliers are:
       
       

       Internet Provider: Telecommunications Provider:   BellSouth DSL   P.O. Box 1262   Charlotte, NC 28201-1262   P: (888) 321-2375   BellSouth   P.O. Box 1262   Charlotte, NC 28201-1262   P: (866) 620-6000

       
       Rule: FINRA Rule 3510 (c) (7).
       
       
    2. Banks
       We have contacted our banks and lenders to determine if they can continue to provide the financing that we will need in light of an internal or external SBD.
       
       The following is our list of banking relationships:
       
       

       Main/Operating Account Secondary Account   Smith Barney   666 3rd Ave, 3rd, Floor   New York, NY, 10017   Contact: Wayne Kimbell   P: (212) 878-3902   Bank of America   551 S.E 8th Street   Delray Beach, FL 33483   Contact: Fizz Brown   P: (561) 454-0744

       
       Rule: FINRA Rule 3510 (c) (7).
       
       
    3. Counter-Parties
       We have contacted our critical counter-parties, such as other broker-dealers, underwriters, Counsels and Developers, to determine if we will be able to carry out our transactions with them in light of the internal or external SBD. If we can't proceed with the pricing, alternative arrangements will be in place in order to complete the transaction as scheduled.
       
       Rule: FINRA Rules 3510(a) & (c) (7).
       
       
14. Regulatory Reporting
    Our firm is subject to regulation by the FINRA, SIPC, SEC, the State of Florida, California, Indiana, Maryland, Massachusetts, New Jersey, New York, Ohio, Oregon, Puerto Rico, Texas & Washington. We now file reports with our regulators using paper copies by U.S. mail, electronically using the Web CRD and the Internet. In the event of an SBD, we will check with the FINRA, SEC and other regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.
    
    

    SEC Headquarters   450 5th Street, N.W.   Washington, DC 20549   P: (202) 942-7040   SEC Southeast Region   David Nelson   801 Brickell Ave.   Suite 1000   Miami, FL 33131   P: (305) 982-6300   FINRA   2500 North Military Trail   Suite 302   Boca Raton, FL 33431   P: (561) 443-8000 Florida   Florida Department of   Banking & Finance   Division of Securities   101 East Gaines Street   Tallahassee, FL 32399   P: (850) 410-9805

    
    Rule: FINRA Rule 3510 (c) (8).
    
    
15. Updates and Annual Review
    Our firm will update this plan whenever we have a material change to our operations, structure, business or location. In addition, our firm will review this BCP plan annually, on June 30th , to modify it for any changes in our operations, structure, business, or location.
    
    Rule: FINRA Rule 3510 (b)
    
    
16. Senior Manager Approval
    I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to customers in the event of an SBD.
    
    Rule: FINRA Rule 3510 (d)
    
    
    
    

    Signed:
    Title:	President and Registered Principal
    Date:	January 1, 2007