Summary

-PRINCIPALS CHARLES EICKELBERG, PRESIDENT Graduated from DePaul University of Chicago in 1986 with a Bachelor's Degree in computer Science. Mr. Eickelberg has tested literally hundreds of proprietary trading systems both personally developed as well as commercially purchased. He utilizes state-of-the-art commercial computer software as well as significant custom in--house developed software for testing trading systems, portfolio management theories, and money management principles. HENRY P. EICKELBERG, VICE PRESIDENT Graduated from the University of Illinois in 1957 with a Bachelor's Degree in Engineering Physics. Earned an MBA from University of Chicago in June, 1971. From 1972 to 1982, Mr. Eickelberg was President and Chairman of the Board of Ni-Tec, Inc., manufacturer of night vision equipment. He traded commodities for his personal account from 1979 to 1987. From 1988 until 1995 he was a Senior Consultant for William A. Golomski & Associates, Inc., an international consulting firm, consulting and lecturing on the principles of Business Management. Since 1991 he has been actively involved in developing commodity trading systems employing computerized technical trading methods. THE TRADING PROGRAM The Phoenix trading Program is based upon technical analysis and advanced pattern recognition tempered by discretionary application of market fundamentals. Although the program is highly computerized, the Trading Advisor may elect to override the programmed nature of the system in order to attempt to reduce losses or increase profits. Additionally, the Trading Advisor may use its discretion in timing market entries and exits or passing up a trade all together. The program's trading time frame is short-term in nature with day-trades comprising a majority of the trading activity. Occasionally, however, positions may be held for longer periods. PORTFOLIO & MONEY MANAGEMENT The program concentrates its trades on the S&P 500, Coffee and U.S. Treasury Bonds. Through a mathematical analysis of the inter-correlation of returns, the Trading Advisor attempts to trade a portfolio which provides for improved performance while functioning to reduce risk. The number of contracts entered into on any given trade is generally determined by the amount of the account's equity. As profits are realized, the number of contracts per trade is increased. Likewise as losses are realized, the number of contracts per trade is decreased. The exact markets and quantities traded may change from time to time. Trading in any individual account will be suspended if an investor's initial investment is reduced by more than 35% or if at any time an account experiences a Drawdown exceeding 40%.