Pursuant to NASD Rule 3510, JMP Securities has developed a Business Continuity Plan ("BCP") as part of its ongoing efforts to mitigate/prevent the impact of business interruptions. The following is a summary of our BCP, which we are sharing with our clients for their information.

JMP management has assessed its business risk tolerance and decided that for all its internal document /data production, email and IM, we would subscribe to the services provided by eVault for off-site storage and back-up. In addition, because JMP clears its broker/dealer business on a fully disclosed basis through ADP Clearing & Outsourcing Serivces, Inc. ("ADP"), it avails itself of ADP's own BCP. What this means to our clients is that all electronic records pertaining to their accounts with JMP are backed up by a network of secondary and, sometimes, tertiary business sites. In addition, should our trading facilities become incapacitated, the same level of redundancies is available through ADP.

Among other things, our business continuity plan addresses: data back up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business. In our BCP we also cover the recovery resumption tolerance levels for the various types of potential disruptions borne by our desire to maintain functioning and/or resume our functions ASAP.

Depending upon the severity of the disruption, our BCP has remedies that would allow resumptions of business within hours. For more severe cases, our plan is to rely on ADP's BCP. Of note is the fact that JMP caters to institutional clients who, by nature of their business, hold assets at their agent bank or Prime Brokers. Once again, because JMP clears through ADP on a fully disclosed basis, any and all trading activities are processed and settled, and all pertinent records are backed up by ADP. We intend to communicate with you via our web site www.jmpsecurities.com or via telephonic recordings about the status of our disruptions and how to get in touch with us. In the event you are not available to reach JMP and need to talk to ADP directly, their telephone number is (800) 809-9697. If the business disruption is so severe that it prevents us from remaining in business, we will assure our customers' prompt access to their funds and securities through ADP.

The JMP Securities BCP is reviewed periodically and subject to modification without notice. The BCP and its updates will be posted on JMP's website at www.jmpsecurities.com. A written copy of the summary of our BCP is provided to customers upon request. If you have questions about our business continuity planning, please email us at bcpinfo@jmpsecurities.com.