Clarke Capital Management, Inc.

FX-Plus Program

The FX-plus program currently trades 30 domestic & international commodity interests, 16 of which are either long or short interest rate contracts reflecting interest rates in the US, EMU, the UK, Japan and Australia. Also followed are the major currency markets, and eight equity index markets from Europe & Asia. The program uses 27 models. 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 less diversified than most of CCM’s other programs as only Currency, Interest Rate and Equity Index products are followed. There will be times when there is significant correlation among these products possibly in an adverse direction to positions held in a client's account. Clients of the FXF-plus 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.