BUYING OPTIONS

WHEN PURCHASING AN OPTION, THE RISK IS LIMITED TO THE AMOUNT OF THE PREMIUM PLUS COMMISSIONS AND FEES.

FUTURES TRADING

WHEN INVESTING IN FUTURES CONTRACTS, YOUR RISK IS NOT LIMITED AND YOU MAY BE REQUIRED TO ADD ADDITIONAL FUNDS TO COVER LOSSES AND/ OR MARGIN REQUIREMENTS.

SPREAD TRADING, GRANTING OF OPTIONS AND ASSIGNING/EXERCISING OF OPTION CONTRACTS

WHEN USING THE STRATEGIES OF SPREAD TRADING, GRANTING OPTIONS OR HOLDING ANY OPTION THROUGH THE EXPIRATION DATE AN OPTION COULD BE ASSIGNED AND/OR EXERCISED. THIS MEANS YOU WOULD ASSUME A FUTURES CONTRACT OF THAT COMMODITY. PRIOR TO EXPIRATION YOU CAN CHOOSE TO CLOSE AND TERMINATE THE TRADE TO LIMIT FURTHER RISK. IF YOU DO NOT, THEN YOUR RISK MAY NOT BE LIMITED, YOU MAY BE CHARGED AN ADDITIONAL COMMISSION AND FEE, AND YOU MAY BE REQUIRED TO DEPOSIT ADDITIONAL FUNDS TO COVER INITIAL SPAN MARGIN IN YOUR ACCOUNT.

*** WHEN TRADING THE ABOVE CONTRACTS IT IS HIGHLY RECOMMENDED THAT YOU STAY IN CONSTANT CONTACT WITH YOUR BROKER.

*** IF MARGIN REQUIREMENTS ARE NOT MET WITHIN 24 HOURS NCCI AND/OR TRENDEX COMMODITY CORP. HAS THE RIGHT, WITHOUT YOUR PERMISSION, TO LIQUIDATE ANY OR ALL OF YOUR POSITIONS TO COVER THE EXISTING MARGIN REQUIREMENT.

*** MARGIN REQUIREMENTS MAY FLUCTUATE UP OR DOWN ACCORDING TO THE VOLATILITY OF THE MARKETS YOU ARE TRADING IN YOUR ACCOUNT.

SIGNING THE ACKNOWLEDGEMENT

SIGNING THIS ACKNOWLEDGEMENT OF RISK DOES NOT OBLIGATE YOU TO MAKE THE TRADES SHOWN ABOVE. THIS IS BECAUSE YOU, AND ONLY YOU, ALWAYS MAKE THE FINAL DECISION ON WHAT YOU BUY OR WHAT YOU SELL IN YOUR ACCOUNT.

CUSTOMER SIGNATURE_________________________________ DATE_______________

CUSTOMER SIGNATURE_________________________________ DATE_______________

REVISED DATE 12/9/2002