Clarke Capital Management, Inc.

Energy Only Program

The Energy Only program currently trades 6 domestic & international commodity interests, Nymex Crude, Unleaded Gas, Heating Oil, Natural Gas as well as Brent Crude and Gasoil in London. The program uses the 27 models from the FX plus program to trade these energy contracts. Ten of the models are intermediate time-frame focus with similar characteristics to those in the Global Basic and Global Magnum programs. Ten are long-term and 7 are ultra-long term. It should be noted that the FXF-plus program is much less diversified than most of CCM’s other programs as only Energy products are followed. There is significant correlation among these products and there will be times when an adverse reaction will cause all positions held in a client's account to go opposite to the desired direction, causing large losses. Clients of the Energy Only program should be aware that this factor alone, although there are others, will lead to periods of extreme volatility. Regarding the level of funding, the Advisor strongly recommends that Clients fund their account as a Fully-Funded account. The Advisor will consider a Client's desire to open a Notionally-Funded account on a case by case basis.