BUSINESS CONTINUITY DISCLOSURE STATEMENT

II. Our Clearing Firm May be Contacted in Limited Situations

In the unlikely event that, American Portfolios is unable to continue business, clients may directly contact Pershing, LLC (“Pershing”), the clearing firm, to process limited trade-related transactions, cash disbursements and security transfers. Instructions to Pershing must be in writing and transmitted via facsimile or postal service as follows:

Pershing, LLC
P.O. Box 2065
Jersey City, New Jersey 07303-2065
Fax: (201) 413-5368

For additional information about how to request funds and securities when American Portfolios cannot be contacted due to a significant business interruption, please refer to the information below or call (201) 413-3635 for recorded instructions. If you cannot access the instructions from the previously-noted telephone number, Pershing may be contacted at (213) 624-6100, ext. 500, as an alternative telephone number for recorded instructions.

Through the clearing firm, you may process the following transactions:

A. Trades

Pershing will process the following closing security trades: (1) sale of security position held long in your account or (2) purchase of a security to close-out a short security position. These orders will only be handled as market orders.

In order to place these specific orders, you must provide Pershing with the following information:

1. Your brokerage account number;
2. Your name (as registered on the brokerage account);
3. Security description, including symbol or CUSIP number; and
4. Number of shares.

B. Cash Disbursements

Pershing will process cash disbursements upon written instructions that must include the following information:

1. Your brokerage account number;
2. Your name (as registered on the brokerage account);
3. Exact amount to be disbursed; and
4. Indicate method of disbursement (as follows) and provide the information indicated:

a) For a check, which is payable to account name only, indicate name and address of record check is to be mailed to.
b) For federal funds, please indicate receiving bank name, ABA number and receiving bank account number. Please note that the receiving bank account name and brokerage account name must be identical unless we have a letter of authorization on file indicating alternative instructions.

C. Securities Transfers

Pershing will process security transfer requests upon written instructions that must include the following information:

1. Your brokerage account number;
2. Your name (as registered on the brokerage account);
3. Description of security(ies) to be transferred, including symbol(s) or CUSIP number(s);
4. Quantity to be transferred; and
5. Receiving account information for securities, as follows:

a) In order to transfer your account to another brokerage account at Pershing, please provide receiving account number at Pershing (name and address on both accounts must be the same).
b) In order to transfer your account to another financial organization, please also provide the following information:

• Name of the receiving financial organization;
• DTC number (if the receiving financial organization is a registered brokerdealer); and
• Account number at the receiving financial organization.