Global Sigma Group, LLC

4.7 Exempt

DISCLOSURE DOCUMENT
April 15, 2012 45 Church St, Suite 302, Stamford, CT 06906 Phone: (203) 662-6664 Fax: (203) 299-1271 Email: info@globalsigmagroup.com Web: www.globalsigmagroup.com THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS TRADING PROGRAM NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT. THE INFORMATION OF THIS DISCLOSURE DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE SHOWN BELOW. No person is authorized by Global Sigma Group, LLC to give any information or to make any representations that are not contained in this Disclosure Document. DISCLOSURE DOCUMENT DATED APRIL 15, 2012 RISK DISCLOSURE STATEMENT THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUIRED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE 1

LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A "LIMIT MOVE". THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A "STOP-LOSS" OR "STOP-LIMIT", WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS. A "SPREAD" POSITION MAY NOT BE LESS RISKY THAN A SIMPLE "LONG" OR "SHORT" POSITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE FEES TO BE CHARGED TO YOUR ACCOUNT BY GLOBAL SIGMA GROUP, LLC ON PAGE 12. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY THIS DISCLOSURE DOCUMENT AND COMMODITY TRADING BEFORE YOU TRADE, INCLUDING THE DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT ON PAGE 8. THIS COMMODITY TRADING ADVISOR IS PROHIBITED BY LAW FROM ACCEPTING FUNDS IN THE TRADING ADVISORS NAME FROM A CLIENT FOR TRADING COMMODITY INTERESTS. YOU MUST PLACE ALL FUNDS FOR TRADING IN THIS TRADING PROGRAM DIRECTLY WITH A FUTURES COMMISSION MERCHANT.

TABLE OF CONTENTS Risk Disclosure Statement .... 1 The Investment Manager ...................................... 4 Business Background ..... 4 Global Sigma Methodology .......................................... 5 Trading Program ............................................... 6 Minimal Account Size and Nominal Account Size ... 7 The Futures Commission Merchant / the Introducing Broker / the Execution Broker...... 8 Trading................................................... 8 Principal risk factors.............................................. 8 Conflict of interest ................................................... 12 Fees................................................... 12 Initial Commitment Period .. 13 Deposit, Withdraws and Close of account ............................................13 Past Performance............................................. 13 Acknowledgement of receipt of Disclosure Document ......................................... 15 Privacy Policy . 16 Exhibit A................................. 17 Exhibit B: Notional Funded Account Risk Disclosure .. 27

The Investment Manager Global Sigma Group, LLC

Global Sigma Group, LLC (GSG) is a Delaware limited liability corporation formed on December 29, 2009. GSG was registered as a commodity trading advisor (CTA) with the Commodity Futures Trading Commission (the CTFC) and became a member of the National Futures Association (the NFA) both on March 3, 2010. GSG filed exemption 4.7 on March 4, 2010 to provide services only to Qualified Eligible Persons. GSGs contact information is: Global Sigma Group, LLC, 45 Church St., Suite 302 Stamford, CT 06806 Phone: (203)-662-6664 FAX: (203)-299-1271 Email: info@globalsigmagroup.com Web: www.globalsigmagroup.com There have been no material administrative, civil or criminal judgments against GSG or its principals.

Business Background
Hanming Rao is GSGs sole investment manager and has more than 10 years experiences in trading financial markets using proprietary models that he has developed. Mr. Rao became listed as a principal and an associated person of GSG on March 3, 2010. The firms performance can be found at page 13. Dr. Rao started trading stocks and options in July 1998 when he was a graduate student at Harvard University. After graduation, he began his professional financial career as a research quant at Ellington Management Group, a multi-billion hedge fund in Old Greenwich, Connecticut in February 2005. In June 2006 Dr. Rao left Ellington to join SAC capital management, a multi-billion hedge fund in New York, NY as a global macro trader / analyst. He mainly focused on trading liquid assets including currency, interest rate swap, global equity index / ETF, commodity, commodity related ETF and options on all those markets. In May 2008, Dr. Rao took an asset management roll at SACs headquarter in Stamford, Connecticut. He was in charged of managing SACs legacy assets including Foreign Bond, Junk Bond, Convertible Bond, Government CDS, Corporate CDS, Loan CDS, High Yield Bond, High Yield Index, etc. In January 2009, Dr. Rao left SAC to join Millennium Partners, a multi-billion hedge fund as a vice president at their Greenwich, CT branch. His responsibility was to develop statistical models in ETF and Futures market. Dr. Rao left Millennium in June 2009. From June 2009 to November 2009 he was preparing for his own start up business. In December 2009, Dr. Rao founded GSG to provide investment management to outside clients. 4

Currently he is constantly seeking new opportunities in the financial market in order to improve the existing prediction, trading and risk models.

Dr. Rao received his BS in Electronic Engineering from Tsinghua University, Beijing, China in July 1997, his MS in Computer Sciences and PhD in Engineering Sciences both from Harvard Universities, Cambridge, MA in June 1998 and March 2005 respectively. Dr. Raos PhD thesis is Theory and Implementation of a Truly Random Number Generator. He designed an algorithm and built a hardware device to extract randomness from Po-210, a radioactive material that emits alpha particles. He had a related pending invention patent. Dr. Rao ranked 17th in the China Olympiad Physics Competition in 1991. He won best experiment prize and 2nd place overall in Guangdong Province Olympiad Physics Competition in 1991.

Global Sigma Methodology

Background As a global macro trader, Dr. Rao traded an extensive variety of products available on Wall Street at SAC Capital. His experiences in trading most liquid assets in 2006-2007 and in managing most illiquid assets in 2008 gave him very valuable and unique experiences about the financial market. As a result, Dr. Raos investment philosophy consists of three key components: Liquidity After witnessing the vacuum market conditions of the toxic assets in 2008, Dr. Rao decided to put liquidity as first priority. Losing money is bad for an investment manager; losing money and leaving investors with illiquid positions is simply unacceptable. Risk Risk management is key in long-term success. Dr. Rao constantly monitors position risks and believes cut loss short and let profit run. Strategy Dr. Rao currently focuses on short term, liquid markets and employs quantitative models to predict market in both directional and volatility measure. Dr. Rao devotes half of the time in trading and half of the time in researching new market trends, characteristics and may modify the strategy from time to time, in order to adapt the new investment

environment. Clients will generally not be informed of these changes as they may occur.

Trading Program
Global Sigma Plus (GSP) is the program currently offered by GSG. GSP mainly trades US equity and volatility index futures and options on their futures contracts. The program typically will sell options on index futures and sometimes will also hedge them with equity index futures or volatility index futures/options. The trade decision process typically has 3 steps. 1. Since the market is not entirely efficient, proprietary quantitative models will identify short-term market conditions based on historical data of price, volatility matrix, option chain and pattern matching techniques. The program will typically sell puts at local bottom, sell calls at local top or sell strangles during range-bound markets. The program may trade volatility index futures and options for hedging or speculative purposes. The program may also trade index futures directly. 2. When trading options, the models will find out the best strikes to sell in order to get best risk/reward ratio. 3. The program will look at current market bid ask price and compare with historical scenarios to generate an option trade signal. In general most options traded will expire worthless. However, option selling is not necessarily a winning strategy since the small amount of losing trades by selling options may cost more than all the premium combined from expired options traded. GSP is not a pure volatility-selling program. It is a directional prediction program combined with a volatility measure. The program will typically trade option within 6 weeks to expiration. The program may also buy back options before expiration in order to reduce risk or wait for better opportunities. GSP continuously monitors the risk/reward ratio on both potential and established positions. Since GSP usually sells options, a drop in volatility after a position is established is usually more favorable to the program (given all other things unchanged). However, this does not mean the program will lose money when volatility is rising or the market is trending. In certain scenarios, GSP will benefit even more in a trendy or volatile market when its direction prediction is correct. When market is more volatile, GSP may adjust with the market conditions and use less leverage ratio to reduce volatility risk. There are three approaches GSP will use when market acts differently than expected. 1. The program may simply close out the positions and remain in cash. Most of the time, we find that simply admitting the models were incorrect and cutting losses quick is the optimal solution. This scenario typically happens when expirations

are still quite away and the position hits a draw down limit specified by the program. 2. The program may hedge the position with equity index futures or volatility index futures. This typically will happen when the program still believes the option will expire worthless or the program believes the options premium is too high and hedging is more profitable. 3. Third, the program may roll over the position or hedge it with another equity index futures option or volatility index futures option. This will depend on relative value of different options with different expiration or strikes prices. We believe this program will be mostly suitable for investors who are seeking an alternative return or diversification, which has the potential to gain consistently over time. We also believe that this program is a great complement to trend followers and other systematic strategies.

MINIAMAL ACCOUNT SIZE AND NOMINAL ACCOUNT SIZE

The minimal amount/unit of investments in this program is $250,000 nominal. This is the minimum unit size employed by Program. The amount of margin utilized by the Program can vary substantially as the amount of margin required for short options may increase due to many factors, and thus the Advisors require that the Client fully funds their account to reduce the frequency of potential margin calls. The Advisors reserve the right to accept any new funds for management or return any funds under management at any time for any reason. Additions and Withdrawals: Unless otherwise instructed by Client, profits and additions will be treated as additions to actual funds and shall be subtracted from notional funds thereby insuring nominal account size remains constant. Or, upon advising GSG, new additions and or profits may be used to increase the nominal account value at the original equity to cash ration thereby maintaining the degree of leverage. The Advisors recommend nominal to be multiples of $250,000 unit in order to avoid rounding errors in trading position allocation. Losses or withdrawals will be treated as withdrawals to actual funds and shall be added to notional funds insuring nominal account size remains constant. This, however, has the effect of increasing the degree of leverage. Or, upon advising GSG, withdrawals or losses may be used to decrease the original nominal value thereby maintaining the original degree of leverage. These elections will affect the accounts performance. It is recommended, that withdrawals not drop the cash funded portion below the minimum account size of $250,000. Net trading profits and losses will increase or decrease cash and nominal account size by the amount of the profit or loss. Clients are reminded that the account size you have agreed to in writing (the nominal account size) is not the maximum possible loss that you may experience. Brokerage account statements from

your FCM should be reviewed regularly in order to determine the actual activity in your account including profits, losses, and current cash equity balance.

THE FUTURES COMMISSION MERCHANT / THE INTRODUCING BROKER / THE EXECUTION BROKER
The client is free to use the Futures Commission Merchant (FCM) and Introducing Broker (IB) of their choice. However, in order to ease the process of execution, the Advisor may use a "give-up" arrangement in which all trades are executed through one or more Execution FCM(s) / Broker(s) of the Advisor's choice and then cleared by the client's FCM. This arrangement may result in the client paying a higher round-turn commission. The client generally will be provided with a statement from his FCM disclosing the amount of brokerage commissions charged to the account. Execution or give-up fees are estimated at less than or equal to $2 per half turn.

TRADING
Trading signals are generated by proprietary quantitative models. Execution of GSGs trading programs is by discretion. This is more reflected by the nature of option market. Although GSG often trades at the fully electronic platform, it also trades in the pit. Currently the S&P pit is still dominated by humans. Sometimes one can not get correct up to date bid ask price of pit traded options on the brokers screen, which makes human discretion very important.

PRINCIPAL RISK FACTORS

Any investment with GSG is speculative and involves with a high degree of risk. The programs GSG offered to clients involve the usage of leverage and are inherently risky. Only sophisticated investors will have sufficient knowledge to make the decision to place an account with GSG. Below are some additional considerations, which should be taken into consideration prior to making an investment decision. VOLATILITY AND LEVERAGE Commodity and futures prices are highly volatile. Price movements are influenced by many things happening around the globe and futures price changes around the clock. None of these factors can be controlled by GSG and no assurance can be given that GSGs programs can result a profitable trades for a client account. Low margin requirement normally required in futures trading permits a very high degree of leverage. Thus, a relative small movement of a futures contract may generate substantial losses to the investors. When a big move suddenly happens, like other leveraged investments, a trade may result in losses in excess of the amount invested. ILLIQUID MARKET CONDITIONS

Although GSG treats liquidity as first priority, the market liquidity condition may change substantially at any time without any warning. Especially when there is a limit move imposed by the exchanges, or there is a large gap, the market conditions can be very illiquid sometimes. This may result in substantial losses to the client. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a limit move. The placement of contingent orders by you or your trading advisor, such as a "stop-loss" or "stop-limit", will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS Although GSG has a positive track record, past performance is not necessarily indicative of future results. An investment in the program offered herby is speculative and involves a substantial risk of loss. ZERO-SUM MARKETS Futures trading is a zero-sum game. Risk simply transfers from one party to another party. For every winner there is an equal and offsetting loser rather than a mutual participation over time in economic growth. As a result, GSGs trading may exhibit a high degree of volatility. TAX CONSIDERATIONS There are substantial tax consequences for participating in Program. Potential investors should talk to their tax counselors with respect to the impact of federal, state and local taxes on their investment account with GSG. FAILURE AND/OR OTHER RISKS OF BROKERAGE FIRM OR FUTURES EXCHANGE The Commodity Exchange Act requires a broker to segregate all funds received from such brokers customers with respect to regulated futures transactions from such brokers proprietary funds. If the broker were not to do so to the full extent required by law, the assets of an account might not be fully protected in the event of the bankruptcy of a broker. The clients funds are kept at the FCM and its safeness depends on counterparty creditworthiness. Even if the FCM segregates client funds, the client funds may all be lost due to bankruptcy of the FCM.

In the case of failure of the Execution FCM(s) / Broker(s) or a disagreement between Execution FCM(s) / Broker(s) and clients Clearing FCM, Advisor may not be able to manage risk for clients account until setting up a new Execution/Give-Up agreement with a new FCM / Execution Broker. Execution FCM(s) / Broker(s) may also set trading limit on Advisor on a daily basis. When such limit is hit, Advisor may not be able to manage risk for clients account during the rest of that day. Advisor usually allocates trades at the end of the trading day by sending Execution FCM(s) / Broker(s) a trade allocation table. As a result, clients account may face intra-day margin calls during fast moving market conditions. Occasionally, previous days trades may be allocated on the following business day due to delays or errors by Execution FCM(s) / Broker(s) / Advisor. Trades may be cancelled when Execution FCM(s) / Broker(s) /Advisor make a mistake in the trade allocation. PARTIAL FILL, TRADE ERRORS AND PERFORMANCE DIFFERENCES Partial fills often occur. As a result, some clients accounts may be filled while others are not. GSG may execute trades through different brokerages for different accounts and cant guarantee same fills or trades for all accounts. Different clients may have different commission schedule set by their Introducing broker or FCM. As a result, different accounts may have dramatically different returns. In addition, cash withdraw and deposit may also cause dramatic different results between accounts. Sometimes trade errors may also happen. Though the Advisor will attempt to correct trading errors as soon as they are discovered, it will not be responsible for poor executions or trading errors committed by brokers, FCMs, or the Advisor itself. In evaluating these potential conflicts of interest, clients should be aware that Advisor has a duty to exercise good faith and fairness in dealings affecting the accounts of its clients. LIMITED PORTFOLIO MAY RESULT IN HIGHER VOLATILITY The program focuses on trading US equity / volatility index futures and options and may have a market concentration risk. Trading a limited portfolio may result in larger account volatility than higher risk of loss than would be experienced by a more diversified portfolio. CHANGE IN TRADING STRATEGIES GSG may make material changes in trading strategies. It is impossible to predict how such change may affect trading on behalf of GSGs clients. Clients will be informed by GSG if there is going to be material changes in trading strategies. LOWER RETURN MAY BE EXPERIENCED WHEN ASSETS UNDER MANGEMENT INCREASE

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Clients may experience lower return when GSGs assets under management increase because there appears to be a tendency for the rates of return achieved by investment mangers to degrade as assets under management increase. OPTIONS If you purchase a commodity option, you may sustain a total loss of the premium and of all transaction costs. If you purchase or sell a commodity future or sell a commodity option, you may sustain a total loss of the initial margin funds and additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account. The risk of selling options is unlimited. FOREIGN CURRENCIES GSG does not plan to trade foreign currencies for the time being. FUNDING BY CURRENCIES OTHER THAN USD When permitted by FCM, Clients can choose to fund their account by other currencies than USD. All currencies related risk such as exchange rate risk, margin debit, interest accrued or charged by FCMs related to non-USD currencies etc. are clients risk. CONFLICTS OF INTERESTS ARISING FROM INCENTIVE FEE Incentive fee may encourage CTA to take excessive risks to earn an outsized incentive fee, and that such risk-taking may place the interests of the CPO and CTA in conflict with the interests of its clients. Disclosure of fees and expenses (from which conflicts of interest frequently arise) does not mitigate or lessen the required discussion of conflicts of interest. ACCOUNT TRANSFER BETWEEN FCMS Unless account transfer is requested by Advisor, all associated cost such as wiring fees, account transfer fees, commissions & fees charged by FCMs associated with transferring positions etc. are clients risk and shall be paid by clients. Such cost will be deemed as cash withdraws by clients and be excluded from monthly performance and management fee calculations. OTHER RISKS

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Other risks includes a power failure by local electricity company, a disruption of Internet providers or landline/cell phone companies, an accident or other things that disable investment managers or related person from trading and accessing clients account, bad judgment of Advisor in trading, All these may cause losses for the clients.

CONFLICTS OF INTEREST
PROPRIETARY TRADING GSG and its principals and employees may invest in programs managed by GSG, and may trade futures for their own proprietary accounts. For such accounts, GSG and its principals may use trading approaches that are the same as, or different from, the GSG trading programs. GSG and its principals may compete with a clients account for similar positions in the markets or may take positions that are opposite or ahead of positions taken in a clients account. Neither GSG nor its principals will ever intentionally favor proprietary account over a client account. Because of their confidential nature, the records of any proprietary trading will not be made available to customers beyond what is provided in this document. BUSINESS ACTIVITIES In addition to managed futures accounts as described within the documents, GSG and its principals may also involved in other businesses such as contract and consulting positions etc. Such activities may cause a conflict of interest in regards to the time devoted to those businesses. FEES GSG charges a 2% management fee and 20% performance fee. Other fee structures may also be accepted solely at the discretion of GSG and its managers. Management fees are charged 1/12 of 2% of month end nominal net asset value on a monthly basis. Incentive fees typically are also charged monthly. If withdraw happens during the middle of a month, partial management fees will be charged on the withdraw amount as prorated for the month. Performance fee will also be charged on the withdraw amount. If deposit happens during the middle of a month, high water market of new investments will be as of the day in which funds were deposited. Clients need to make sure the fees for previous month arrive before the 9th day of each month. If the fees are not received by the 9th day, GSG reserve the right to liquidate the account or stop managing it. Performance fee will be calculated as a specified percentage (as shown in General Client Information in Exhibit A) of New Net Profit, less other applicable fees. New Net Profit means, for each time a performance fee is charged for client, the increase in an accounts balance (including interest income) attributed to the investments from the beginning to the end of the relevant period after subtraction of the management fees and all other accrued fees and expenses which result in such account exceeding its High Water Mark.

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GSG may pay persons or firms who introduce accounts to it a portion of the fees it receives from such accounts. FCM/Brokerage firms may charge other fees such as accounting fees, market data fees, give up fees, quoting fees, per trade fees etc. to Clients account. GSG is not participating in those fees and will not be responsible to those fees. Unless otherwise agreed between Clients and GSG, fees are deducted directly from Clients account by FCM/Broker automatically right after the end of a month.

INITIAL COMMITMENT PERIOD

Clients should only invest with Advisor if they are willing for an initial commitment of at least 3 months.

DEPOSITS, WITHDRAWS AND CLOSE OF ACCOUNT

Clients can deposit at any time. Withdraws are available after initial lock up period. Indication of withdraws should be made with at least 1 week of advanced notices. Indication of close of account should be made at least 1 week of advanced notices. Upon receiving close of account notices, GSG will start to liquidate positions unless otherwise requested by clients. GSG has the right to close out or stop trading for any client account within 1-week advanced notice.

PAST PERFORMANCE
The data presented in the following table reflect the composite performance of those accounts, net of all commissions and after all fees, which have also been adjusted to reflect a 2% management fee and a 20% incentive fee.

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Table A CAPSULE PERFORMANCE INFORMATION (Through March 31, 2012) NAME of CTA NAME of Trading Program (1) Date of trading began (2) DATE of trading began in Offered Program Total assets managed in all programs Total assets managed pursuant to program Total nominal assets under this program Total nominal assets under management by CTA Worst Monthly draw-down (3) Worst peak-to-valley draw-down (4) Number of accounts as of March 31, 2012 Number of client accounts open last 5 years Number of profitable accounts that have closed Range of rates of return for accounts closed with net lifetime profits Number of unprofitable accounts that have closed Range of rates of return for accounts closed with net lifetime loss: GSG / Hanming Rao Global Sigma Plus November 2009 November 2009 $12,649,159 $12,649,159 $23,834,114 $23,834,114 -1.55% (Aug -11) -1.55% (July 11 - Aug 11) 49 66 17 +0.00% to + 29.61% N/A N/A

CAPSULE PERFORMANCE TABLE Monthly % Rate of Return (Net of commission, adjusted by 2% management fee and 20% incentive fee) Month 2012 2011 2010 January 1.27% 1.48% 2.26% February 1.38% 1.44% 1.68% March 1.75% 1.63% 1.24% April 1.20% 1.15% May 1.99% 3.04% June 1.22% 2.13% July 2.42% 1.33% August -1.55% 0.98% September 3.89% 2.51% October 1.65% 1.55% November 1.92% 1.81% December 1.34% 1.43% Annual/Year-to-Date 4.46% 20.19% 23.25%

2009

2.13% 1.41% 3.57%

Footnotes to Capsule Performance Information and Table:

(1) The program is no longer offered through Typhon Capital Management (with a different program name: Thousand-Mile Horse). (2) Dr. Rao began trading customer accounts according to the program since November 2009. GSG began trading customer accounts according to the same program in December 2009 on an exempted basis. There were less than 15 clients and $25M AUM. According to Exemption CEA 4m, registration was not required. (3) Worst monthly percentage draw-down" is the largest monthly loss experienced by all accounts included in the capsule in any calendar month expressed as a percentage of total equity and includes the month and year of such draw-down. (4) Worst Peak-to-Valley Draw-down is defined as the greatest cumulative percentage decline in monthend net asset value due to losses sustained by the account during any period in which the initial month-end net asset value is not equaled or exceeded by a subsequent month-end net asset value. Such decline is expressed as a percentage of the initial month-end net asset value to the lowest month-end net asset value of such decline.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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ACKNOWLEDGEMENT OF RECEIPT OF DISCLOSURE DOCUMENT The undersigned client(s) or entity, hereby acknowledges receipt of the Disclosure Document of Global Sigma Group, LLC dated April 15, 2012. Client has read and understands the Disclosure Document and has carefully considered the risks outlined therein.

______________________ Clients Signature

__________________ Date

______________________ Joint Clients Signature

__________________ Date

Client Information Contact Name: _________________________________________________________ Title: _________________________________________________________________ Address: ______________________________________________________________ Phone: _______________________________________________________________ Fax: _________________________________________________________________ Mobile: ______________________________________________________________ Email: _______________________________________________________________ Clearing FCM: ________________________________________________________ Account Number: ______________________________________________________ FCM Contact Name: ____________________________________________________ FCM Contact Phone: ____________________________________________________

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Privacy Policy
At Global Sigma Group, LLC, we are committed to protecting our clients privacy. We make the following pledge to our clients: 1. We will limit the collection and use of personal information to the minimum we require to administer our business and provide superior service to you. This information includes the data we receive from you on subscription agreements, advisory agreements and other forms, such as your name, address, social security number, assets, and income, and information about your transactions conducted through our firm, such as your account balance and net profit or loss. 2. We do not disclose nonpublic personal information about our clients or former clients to anyone, except as permitted by law. 3. We restrict access to nonpublic personal information about you to those employees, agents and service providers who need to know that information to provide services to you. We maintain physical, electronic and procedural safeguards that comply with federal standards to safeguard your nonpublic personal information. Should you have any questions regarding this policy, please contact us.

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Exhibit A Global Sigma Group, LLC Advisory Agreement COMPLETION INSTRUCTIONS: 1. Application, Declarations, Understandings, Covenants, Representations, and Warranties; Limited Power of Attorney; Authorization for FCM to pay Advisor; Authorization of Give-Up Orders. Please read all sections carefully. 2. Qualified Eligible Person Certification. Please review and complete this section. 3. Client Questionnaires. Please complete the section captioned General Client Information as well as the appropriate questionnaire in accordance with the following guidelines: a. Individuals: Complete the Questionnaire for Individual Clients. b. Corporations, Partnerships, LLCs, Trusts or other Entities: Complete the Questionnaire for Corporations, Partnerships, LLCs, Trusts, etc. 4. Signature Section. Please complete and sign this section where applicable. Delivery of Advisory Agreement. Please submit this Advisory Agreement to Global Sigma Group, LLC, 45 Church ST, Suite 302, Stamford, CT 06906. Questions. All questions should be directed to Hanming Rao at (203)-662-6664.

EXHIBIT A: Page 1

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APPLICATION, DECLARATIONS, UNDERSTANDINGS, COVENANTS, REPRESENTATIONS AND WARRANTIES 1. The undersigned client (Client) has provided accurate information as requested in the questionnaire and certification sections below and will inform the Advisor in writing of any material change to such information within 20 days after such change occurs. 2. Client wishes to participate in the Global Sigma Plus (the Program) of Global Sigma Group, LLC (the Advisor) described in the Advisors April 15, 2012 Disclosure Document (the Document) pursuant to which the Advisor will make trading decisions in accordance with its proprietary trading programs for the Clients account (Account) and risk. 3. Client has sufficient risk capital to tolerate losing more than the entire Account Value set forth below without experiencing a material change in current activities or future plans. 4. Client has received, read and understands the Document, has carefully considered the risk disclosures contained therein and has concluded that the Program is appropriate for Client in light of Clients financial circumstances. 5. Client understands that the Advisor makes no guarantee that any of its services will result in a profit or will not result in substantial losses. 6. Client will immediately inform the Advisor upon becoming dissatisfied with the Advisor's handling of the Account. 7. Client understands and agrees that the Advisor may provide similar or dissimilar trading advice to other clients. 8. Client acknowledges that all advice from the Advisor is the sole property of the Advisor and agrees not to use or reveal such information to others. 9. Client authorizes the clearing firm(s) holding the Account (the FCM) to furnish copies of all confirmations and periodic account statements to the Advisor. Client agrees that the relationship between the FCM and Client is not and shall not become the responsibility of the Advisor. The Advisor is not liable for the executions of transactions. Client further acknowledges that the FCM is solely responsible for the transmission of trade confirmations and monthly account statements as well as custody over the Clients assets held in the Account. 10. Client will execute any and all documents required by the FCM, the Advisor, and/or any regulatory agency having or claiming to have jurisdiction over the FCM, the Advisor or the Account necessary to open and maintain the Account and to provide the Advisor the authority to trade and manage the Account. 11. Client agrees to indemnify, defend and hold harmless the Advisor and its principals and employees (each, an Indemnified Person) from and against any claim, liability, loss, damage or expense (including, without limitation, all reasonable attorneys fees and expenses, expert witnesses fees and expenses and costs of investigation) suffered or incurred by an Indemnified Person by virtue of any Indemnified Person acting on behalf of such Client in connection with the activities contemplated by this Advisory Agreement (the Agreement); provided that, if such claim, liability, loss, damage or expense arises
EXHIBIT A: Page 2

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out of any action or inaction of any such Indemnified Person, such course of conduct must not have constituted fraud, deceit, willful misconduct or gross negligence. 12. Client agrees to pay to the Advisor the monthly Management Fee and monthly Incentive Fee which shall be calculated using the percentages set forth in the General Client Information section below in the manner described in the Document. 13. Client has neither received nor relied upon any representation about this Agreement or the Advisor in making the decision to retain the Advisors trading services except those set forth in the Document and this Agreement. 14. Client agrees that either Client or the Advisor (individually, a Party and collectively, the Parties to this Agreement) may terminate this Agreement by giving written notice to the other Party with at least 1 week of advanced notice. In the case of termination by the Client, notice of termination shall be effective within 1 week time of the Advisors actual receipt of such notice, at which point the Advisor may start to liquidate existing positions (unless otherwise instructed by the Client in the notice of termination). In the case of termination by notice from the Advisor, such notice is effective upon the occurrence of both of the following events: a) the Advisors remittance of the notice, without regard to the clients actual or constructive receipt; and b) the Advisors liquidation of all positions in the Account. Termination of this Agreement automatically constitutes termination of the Limited Power of Attorney set forth below. Accordingly, upon termination by either Party, the subsequent management of the account shall be the Clients sole responsibility. 15. Client agrees that in the event any provision of this Agreement is invalid for any reason whatsoever, all other conditions and provisions of this Agreement shall, nevertheless, remain in full force and effect. 16. Client acknowledges and agrees that this Agreement constitutes the entire agreement between the Parties and no modification or amendment of this Agreement shall be binding unless in writing and signed by the Party against whom enforcement is sought. This Agreement cannot be terminated orally and shall inure to the benefit of and be binding upon the Parties and their respective heirs, executors, administrators, successors and assigns. The captions appearing in this Agreement are inserted as a matter of convenience and for reference only and shall not define, limit or describe the scope and intent of this Agreement or any of the provisions hereof. 17. In the case of an individual, Client is of legal age in the jurisdiction in which Client resides and is legally competent to execute and deliver this Agreement and to participate in the Program contemplated by this Agreement. 18. In the case of a non-natural person, Client is properly authorized to enter into this Agreement and to participate in the Program. Furthermore, the individual executing and delivering this Agreement for and on behalf of Client is of legal age in the jurisdiction in which such individual resides and is legally competent and has full power and authority to do so on behalf of Client. 19. Client agrees to indemnify and hold harmless the Advisor and its officers, directors, employees and agents against any and all direct and consequential loss, damage, liability, cost or expense, including reasonable attorneys and accountants fees, that any of the foregoing may incur by reason of or in connection with any misrepresentation made by
EXHIBIT A: Page 3

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Client, any breach of any representation or warranty made by Client or Clients failure to fulfill any covenants or agreements under this Agreement.

LIMITED POWER OF ATTORNEY By executing below, Client hereby appoints the Advisor as its, his or her true and lawful attorney-in-fact, with full power to act and with full power of substitution and revocation in its, his or her name, place, and stead to enter orders to buy and sell (including short sales), spread, or otherwise trade Commodity Interests (as defined in the Document). Advisor shall have full authority to communicate such orders directly to the FCM and the FCM is hereby authorized to accept and execute all such orders. The Client will not trade the Account and will not authorize any party other than the Advisor to trade the Account. This Power of Attorney shall remain in full effect unless and until this Account is closed, or until such written revocation of this power of attorney is delivered and actually received by the Advisor. Such revocation shall be made in writing and delivered via overnight courier service or facsimile. Upon receipt of such notice, Advisor shall have no involvement with the Account and shall cease to initiate new positions and shall cease to liquidate existing positions. AUTHORIZATION FOR FCM TO PAY ADVISOR By executing below, Client hereby instructs any FCM that holds or has held an account over which the Advisor has been granted power of attorney to pay any invoice from the Advisor from any account in Clients name promptly upon receipt of such invoice. Such fee shall be due and payable upon the receipt of the billing submitted by Advisor. Client acknowledges and agrees that the FCM is furnishing this service for Clients convenience and may pay any such invoices without any duty or obligation to review or verify the accuracy of such invoice. AUTHORIZATION OF GIVE-UP ORDERS By executing below, Client authorizes Advisor to execute orders on behalf of Clients Account on a give-up basis and issues Advisor the authority to designate the FCM or Floor Broker who will act as Executing Broker for trades entered on behalf of Clients Account. The Executing Broker will give up the orders to the FCM(s) holding Clients Account (the Clearing FCM) for Clients Account and risk. The Clearing FCM will act as the carrying broker and will carry these positions. Client understands that the Executing Broker will charge fees for the give-up orders to the Clearing FCM. Client agrees to reimburse the Clearing FCM from Clients Account held at the Clearing FCM. Client authorizes Advisor to enter into all arrangements on behalf of Client that are necessary and appropriate (in the Advisors sole discretion) to set up and maintain giveup arrangements on Clients behalf. Client authorizes Advisor to negotiate any such giveup arrangement for a fee of up to $2.00 per half-turn. When client decides to remove such authorization, client agrees to authorize clients clearing FCM to accept all trades done by advisor the same day.
EXHIBIT A: Page 4

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QUALIFIED ELIGIBLE PERSON CERTIFICATION All clients executing this Agreement must meet the definition of a qualified eligible person (QEP) as defined in CFTC Regulation 4.7. This Agreement lists the ways in which clients can qualify as a QEP (see sections 1 and 2 below). Please review and check only the sections that apply to the Client. 1. If you meet one of the following criteria (check all that apply) and satisfy the portfolio requirement (described at the bottom of this section 1) you are considered a QEP: A natural person whose individual net worth, or joint net worth with that persons spouse, at the time of opening an exempt account, exceeds $1,000,000; A natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that persons spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; An investment company registered under the Investment Company Act or a business development company as defined in section 2(a)(48) of such Act not formed for the specific purpose of either investing in the exempt pool or opening an exempt account; A bank as defined in section 3(a)(2) of the Securities Act of 1933 or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act acting for its own account or for the account of a qualified eligible person; An insurance company as defined in section 2(13) of the Securities Act acting for its own account or for the account of a qualified eligible person; A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees if such plan has total assets in excess of $5,000,000; An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974; provided that the investment decision is made by a plan fiduciary (as defined in section 3(21) of such Act) which is a bank, savings and loan association, insurance company or registered investment adviser or that the employee benefit plan has total assets in excess of $5,000,000; or if the plan is self-directed, that investment decisions are made solely by persons that are qualified eligible persons; A private business development company as defined in section 202(a)(22) of the Investment Advisers Act; An organization described in section 501(c)(3) of the IRC, with total assets in excess of $5,000,000; A corporation, Massachusetts or similar business trust, or partnership, other than a pool, that has total assets in excess of $5,000,000 and is not formed for the specific purpose of opening an exempt account; A pool, trust, insurance company separate account or bank collective trust with total assets in excess of $5,000,000, not formed for the specific purpose of opening the exempt account and whose investment in the exempt account is directed by a qualified eligible person;
EXHIBIT A: Page 5

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PORTFOLIO REQUIREMENT: A person satisfying this section (check all that applies): Owns securities (including pool participations) of issuers not affiliated with such person and other investments with an aggregate market value of at least $2,000,000; Has had on deposit with a futures commission merchant, for its own account at any time during the six-month period preceding the date the person opens an exempt account, at least $200,000 in exchange-specified initial margin and option premiums for commodity interest transactions; or Owns a portfolio comprised of a combination of the funds or property specified in the two immediately preceding sections in which the sum of the funds or property includable under the first section expressed as a percentage of the minimum amount required thereunder, and the amount of futures margin and option premiums includable under the second section expressed as a percentage of the minimum amount required thereunder, equals at least one hundred percent. An example of an acceptable composite portfolio would consist of $1,000,000 in securities and other property (50% of section 1) and $100,000 in exchange-specified initial margin (50% of section 2). 2. If you meet any of the following criteria, you are considered a QEP (check all that apply) regardless of whether you meet the portfolio requirement described above: A futures commission merchant registered pursuant to section 4d of the Commodity Exchange Act, or a principal thereof; A broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934, or a principal thereof; A commodity pool operator registered pursuant to section 4m of the Act, or a principal thereof, provided that the pool operator has been registered and active as such for two years or operates a pool having aggregate total assets in excess of $5,000,000; A commodity trading advisor registered pursuant to section 4m of the Commodity Exchange Act, or a principal thereof, provided that the trading advisor has been registered and active as such for two years or provides commodity interest trading advice to commodity accounts that, in the aggregate, have total assets in excess of $5,000,000 deposited at one or more futures commission merchants; An investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or pursuant to the laws of any state, or a principal thereof, provided that the investment adviser has either been registered and active as such for two years or provides securities investment advice to securities accounts that, in the aggregate, have total assets in excess of $5,000,000 deposited at one or more registered securities brokers; A qualified purchaser as defined in section 2(51)(A) of the Investment Company Act of 1940; A knowledgeable employee as defined in section 270.3c-5 of the Commodity Exchange Act; With respect to an exempt pool:
EXHIBIT A: Page 6

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A commodity pool operator, commodity trading advisor or investment adviser of an exempt pool offered or sold, or an affiliate of any of the foregoing A principal of the exempt pool or the commodity pool operator, commodity trading advisor or investment adviser of the exempt pool, or of an affiliate of any of the foregoing; An employee of the exempt pool or the commodity pool operator, commodity trading advisor or investment adviser of the exempt pool, or of an affiliate of any of the foregoing (other than an employee performing solely clerical, secretarial or administrative functions with regard to such person or its investments) who, in connection with his or her regular functions or duties, participates in the investment activities of the exempt pool, other commodity pools operated by the pool operator of the exempt pool or other accounts advised by the trading advisor or the investment adviser of the exempt pool, or by the affiliate provided such employee has been so or similarly engaged for at least 12 months; Any other employee of, or an agent engaged to perform legal, accounting, auditing or other financial services for the exempt pool or the commodity pool operator, commodity trading advisor or investment adviser of the exempt pool, or any other employee of, or agent so engaged by, an affiliate of any of the foregoing (other than an employee or agent performing solely clerical, secretarial or administrative functions with regard to such person or its investments provided that such employee or agent is either i) an accredited investor as defined in section 230.501(a)(5) of the Commodity Exchange Act and regulations promulgated thereunder and ii) such employee has been so or similarly employed or engaged for at least 24 months.

EXHIBIT A: Page 7

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GENERAL CLIENT INFORMATION Client Name ____________________________________________________________ Occupation _______________________________ Initial Value of Account: US$ ________________ Account will be managed as nominal value of US$__________________ Management Fee Percentage: ____2%______________ Incentive Fee Percentage: _______20%_____________ Identification Type / No ____________________________________________________ Date of Disclosure Document Received: __________________________ Date of Trading to begin: U.S. Citizen or Resident? ASAP YES To be start on: __________________________ NO

Address ________________________________________________________________ _______________________________________________________________________ Telephone __________________________ Facsimile ___________________________ E-Mail ________________________________________________________________ I am introduced to Global Sigma by 3rd party If checked, please specify 3rd party: __________________________________________ QUESTIONNAIRE FOR INDIVIDUAL CLIENTS Investment Experience: Check below the types of investments made by you during the past 5 years for your own account, or for the account of your spouse, for any relative who has the same principal residence or any trust, estate, corporation or organization in which you, your spouse or such relative own a majority of the beneficial or equity interests. U.S. government and federal agency securities Interests in REITs/real estate State and local government securities Interests in limited partnerships/ LLCs Corporate stocks or options on corporate Commodities, futures contracts Stocks and/or options Corporate bonds, debentures and notes Annuities Interests in mutual funds (including money market funds), unit investment trusts and closed-end investment companies Interests in Real Estate (land, buildings, cooperative apartments, condominium units) Other investments ____________________________________________________
EXHIBIT A: Page 8

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QUESTIONNAIRE FOR CORPORATIONS, PARTNERSHIPS, LLCs, TRUSTS, ETC. Clients form of organization: Corporation Limited Liability Company Trust (Other than an employee benefit trust) State in which formed __________________ Principal Place of Business __________________ Is Client a commodity pool? YES NO If answer is No, specify the reasons that it is exempted from registering as a commodity pool (check all that apply): The investment doesnt have any outside investors It is a foreign investment and doesnt have any US investors The investment doesnt have more than 2 individual investors Other reasons, please specify: _____________________________________ __________________________________________________________________ Investment Experience: Check below the types of investments made by Client during the past 5 years for Clients own account. U.S. government and federal agency securities Interests in REITs/real estate State and local government securities or LLCs Corporate stocks or options on corporate stocks contracts and/or options Corporate bonds, debentures and notes Interests in limited partnerships

Limited Partnership General Partnership Other: __________________ Date formed __________________

Commodities, futures

Annuities

Interests in mutual funds (including money market funds), unit investment trusts and closed-end investment companies Interests in Real Estate (land, buildings, cooperative apartments, condominium units) Other investments____________________________________________________
EXHIBIT A: Page 9

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SIGNATURE SECTION FOR ALL CLIENTS By executing below, Client hereby represents, warrants and agrees to all representations and warranties above (including, without limitation, the Qualified Eligible Person Certification), issues limited power of attorney to Global Sigma Group, LLC and executes the Authorization for FCM to Pay Advisor and Authorization of Give-Up Orders. 1. Individuals (sign and insert name and date below signature line): __________________________________ __________________________________ Client Signature Joint Client Signature __________________________________ __________________________________ Client Name Joint Client Name __________________________________ __________________________________ Date Date 2. Entities (sign and insert name, title and date below signature line): Client Name: ____________________________________________________________ By: __________________________________ By: ______________________________ Signature of Authorized Signatory Signature of Authorized Co-Signatory ___________________________________ ____________________________________ Title of Authorized Signatory Title of Authorized Co-Signatory ___________________________________ ____________________________________ Date Date

FOR USE BY THE ADVISOR ONLY Account has been: Accepted Rejected Other : _________________________

By: ___________________________________________ Date __________________________________________

EXHIBIT A: Page 10

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THIS NOTIONAL FUNDED ACCOUNTS RISK DISCLOSURE IS A SUPPLEMENT TO THE DISCLOSURE DOCUMENT FOR THE GLOBA SIGAM PLUS PROGRAM OFFERED BY GLOBAL SIGMA GROUP NOTIONALLY FUNDED ACCOUNTS IF YOU REQUEST A TRADING ADVISOR TO TRADE YOUR ACCOUNT WITH A DEGREE OF LEVERAGE THAT EXCEEDS THAT RECOMMENDED AS APPROPRIATE BY THE ADVISOR, YOU SHOULD BE AWARE OF THE FOLLOWING: 1) YOU WILL INCUR GREATER RISK BECAUSE YOU MAY EXPERIENCE GREATER LOSSES, AS MEASURED BY A PERCENTAGE OF ASSETS ACTUALLY DEPOSITED IN YOUR ACCOUNT, THAN IN AN ACCOUNT FUNDED AT THE LEVEL RECOMMENDED BY THE ADVISOR. 2) YOUR ACCOUNT WILL EXPERIENCE GREATER VOLATILITY, AS MEASURED BY RATES OF RETURN ACHIEVED IN RELATION TO ASSETS ACTUALLY DEPOSITED IN YOUR ACCOUNT, THAN AN ACCOUNT FUNDED AT THE LEVEL RECOMMENDED BY THE ADVISOR. 3) YOU WILL PAY HIGHER ADVISORY FEES AND BROKERAGE COMMISSIONS, AS MEASURED BY THE PERCENTAGE OF SUCH FEES AND COMMISSIONS IN RELATION TO ASSETS ACTUALLY DEPOSITED IN YOUR ACCOUNT, THAN A CLIENT'S ACCOUNT FUNDED AT THE LEVEL RECOMMENDED BY THE ADVISOR. SPECIAL DISCLOSURE FOR NOTIONALLY FUNDED ACCOUNTS YOU SHOULD REQUEST YOUR COMMODITY TRADING ADVISOR TO ADVISE YOU OF THE AMOUNT OF CASH OR OTHER ASSETS (ACTUAL FUNDS) WHICH SHOULD BE DEPOSITED TO THE ADVISOR'S TRADING PROGRAM FOR YOUR ACCOUNT TO BE CONSIDERED "FULLY-FUNDED". THIS IS THE AMOUNT UPON WHICH THE COMMODITY TRADING ADVISOR WILL DETERMINE THE NUMBER OF CONTRACTS TRADED IN YOUR ACCOUNT AND SHOULD BE AN AMOUNT SUFFICIENT TO MAKE IT UNLIKELY THAT ANY FURTHER CASH DEPOSITS WOULD BE REQUIRED FROM YOU OVER THE COURSE OF YOUR PARTICIPATION IN THE COMMODITY TRADING ADVISOR'S PROGRAM. YOU ARE REMINDED THAT THE ACCOUNT SIZE YOU HAVE AGREED TO IN WRITING (THE "NOMINAL" ACCOUNT SIZE) IS NOT THE MAXIMUM POSSIBLE LOSS THAT YOUR ACCOUNT MAY EXPERIENCE. YOU SHOULD CONSULT THE ACCOUNT STATEMENTS RECEIVED FROM YOUR FUTURES COMMISSION MERCHANT IN ORDER TO DETERMINE THE ACTUAL ACTIVITY IN YOUR ACCOUNT, INCLUDING PROFITS, LOSSES, AND
Exhibit B: Page 1

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CURRENT CASH BALANCE. TO THE EXTENT THAT THE EQUITY IN YOUR ACCOUNT IS AT ANY TIME LESS THAN THE NOMINAL ACCOUNT SIZE YOU SHOULD BE AWARE OF THE FOLLOWING: 1) ALTHOUGH YOUR GAINS AND LOSSES, FEES AND COMMISSIONS MEASURED IN DOLLARS, WILL BE THE SAME, THEY WILL BE GREATER WHEN EXPRESSED AS A PERCENTAGE OF ACCOUNT EQUITY. 2) YOU MAY RECEIVE MORE FREQUENT AND LARGER MARGIN CALLS. 3) THE DISCLOSURES WHICH ACCOMPANY THE PERFORMANCE TABLE MAY BE USED TO CONVERT THE RATES-OF-RETURN ("RORs") IN THE PERFORMANCE TABLE TO THE CORRESPONDING RORs FOR PARTICULAR PARTIAL FUNDING LEVELS. 4) THE MANAGEMENT FEE PAID TO THE ADVISOR WILL BE CALCULATED BASED PARTLY ON THE NOTIONAL FUNDS IN THE CLIENTS ACCOUNT. AS A RESULT, THE USE OF NOTIONAL FUNDS WILL INCREASE THE AMOUNT OF MANAGEMENT FEES THAT THE ADVISOR WILL RECEIVE FROM THE CLIENT FOR TRADING THE SAME AMOUNT OF CASH OR ACTUAL FUNDS. FOR EXAMPLE, THE ADVISOR MAY RECEIVE A 2% MANAGEMENT FEE. IF A CLIENTS ACCOUNT IS FULLY FUNDED, THE ADVISOR WILL RECEIVE A MANAGEMENT FEE OF 2% BASED ON THE ACTUAL FUNDS IN THE ACCOUNT. IF THE ACCOUNT, HOWEVER, IS FUNDED AT ONLY 50% (I.E. ONE HALF ACTUAL FUNDS AND ONE HALF NOTIONAL FUNDS), THE 2% MANAGEMENT FEE, EXPRESSED AS A PERCENTAGE OF ACTUAL FUNDS, WOULD BE 4%. 5. THE MATRIX SHOWS THAT PARTIALLY FUNDING AN ACCOUNT WILL MAGNIFY BOTH GAINS AND LOSSES WHEN COMPARED TO A FULLY FUNDED ACCOUNT. CLIENTS INTENDING TO USE A NOTIONALLY FUNDED ACCOUNT SHOULD NOTE THAT CASH ADDITIONS, CASH WITHDRAWALS AND NET PERFORMANCE WILL NOT AFFECT THE NOMINAL ACCOUNT SIZE. AS FUNDS DECREASE IN PROPORTION TO NOMINAL ACCOUNT SIZE, THE LEVERAGE WILL INCREASE, AS WILL THE PERCENTAGE GAIN OR LOSS. A CLIENT WHO WISHES TO INCREASE OR DECREASE THE NOMINAL ACCOUNT SIZE OF THEIR ACCOUNT SHOULD NOTIFY THE ADVISOR IN WRITING OF THEIR INTENTION.

Exhibit B: Page 2

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The table below contains a matrix displaying the impact upon rates of return that would result from leveraging an account with notional funds:

100% 80% 60% 40%

-30.00% -37.50% -50.00% -75.00%

-20.00% -25.00% -33.30% -50.00%

-10.00% -12.50% -16.70% -25.00%

0.00% 0.00% 0.00% 0.00%

10.00% 12.50% 16.70% 25.00%

20.00% 25.00% 33.30% 50.00%

30.00% 37.50% 50.00% 75.00%

(a) Level of Funding represents the percentage of Actual Funds divided by the FullyFunded trading level. (b) Rates of return represents the rate of return experienced by a client at various levels of account funding. The rates of return for accounts that are not Fully-Funded are inversely proportional to the percentage level of funding. I HEREBY AGREE THAT I FULLY UNDERSTAND THE RISK ASSOCATED WITH NOTIONALLY FUNDED ACCOUNTS:

__________________________________ ___________________________________ Client Signature Joint Client Signature __________________________________ ___________________________________ Client Name Joint Client Name __________________________________ ___________________________________ Date Date

Exhibit B: Page 3

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