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PALISADE CAPITAL MANAGEMENT, L.L.C.

Business Continuity Plan Disclosure

September 10, 2007

Palisade Capital Management, L.L.C. (the 'Firm') is committed to safeguarding the interests of our clients in the event of an emergency or significant business disruption. This Business Continuity Plan Disclosure ('BCP') summarizes the Firm's effort to mitigate risks inherent with unforeseen business interruptions. The Firm's comprehensive business continuity strategy is designed to enable us to meet our existing obligations to our clients even in the event of an emergency or significant business disruption.

Communications with Firm Employees in the Event of a Disruption

The safety and well-being of our employees is a vital concern. In the event of an emergency or significant business disruption (SBD), the Firm will communicate with its employees directly by telephone or email. Employees will also be able to access instructions via a secure website.

Redundancy of Mission Critical Information Technology Systems

The Firm has several information technology processing and backup sites that collectively provide the redundancy required to protect the Firm's books and records, balance sheet and capital, and provide business continuity and client protection. The recovery capability for certain of the Firm's mission critical processing capabilities is achieved through the use of those of affiliated third parties, back-up tapes, and Cervalis IT Infrastructure Solutions ('Cervalis') with a second server located off-site. Recovery times for mission critical systems range between real time recovery and full operation in 24 hours.

Back-Up Trading, Sales and Operations Sites

The Firm maintains contracts with Cervalis and Agility Recovery Solutions, who will provide backup facilities for trading and operations located away from our office. In the event that we cannot access our office, it may be necessary to relocate certain personnel to either of the backup sites. The backup can be fully operational within 48 hours, and its functionality is tested periodically.

Protection of Office

The Firm's office is equipped with a power generator so it can remain fully functional even if there is a widespread power outage. The Firm's data center is located in a secure area, and the office has restricted access and physical security measures.

Disclaimer

The Firm's comprehensive business continuity strategy is designed to enable us to meet our existing obligations to our clients even in the event of an emergency or significant business disruption; however it is not infallible. The plan is designed to work in many different emergency situations, but it is impossible to anticipate every scenario that could cause a business disruption. Furthermore, we have no control over the various entities that we must rely upon in the event of an emergency, although we have taken steps to ensure that they also have business continuity strategies. Our business continuity plans are tested periodically to ensure readiness; however, such tests may not be able to replicate the actual conditions we may experience in a real emergency. This BCP is subject to change without notice. In the event that this BCP is modified, the updated document will be promptly posted to the Firm's website (www.palisadecapital.com). Alternatively, clients may obtain an updated hard copy of this BCP upon request. The information contained in this disclosure is provided by the Firm for informational purposes only. Nothing contained herein shall be construed to amend, supplement or otherwise modify any of the terms and conditions set forth in any customer agreement between you and the Firm. Information regarding the broker-dealer for many of our High Net Worth Managed Accounts, RBC Capital Markets LLC, may be obtained at www.rbccm.com/usbrokerdealer.

Emergency Phone Number

In the event of an emergency or significant business interruption, the Firm's phone lines will be automatically forwarded to our hot site. You may reach us at (201) 585-7733 or (800) 330-9966.