EFTA01511652.pdf

12 2003 JPMorgan Chase Bank JPMorgan Private Bank Account Number Asset Account Portfolio Page 13 of 16 FINANCIAL TRUST COMPANY, INC. December 01. 2003 - December 31, 2003 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 conbnued ledge fund redemptions me roan:Aeon a monthly querteeNce annual basis but can sometimes be subject to a Invessee, bchip before a rederhoton is per:need Fos nedemptons there FS penmen. notitabonpertd Met can berating interval befcern. actual reclamation date Radenebon pfocetto are genereespad 3-5 business days ales Me final IVAV issued but can be sttseCt to a hadeack of* porton of the proceeds oat an annual *suds! of the Fund has been Conetted Plea el to the appicabiehedge funds operethedturrentaten for furtherdeftts For hedge funds one of two melliOde me be used on !Ms statement to report how sten:Welted Ina( may be owed to the GeneralPattnerce Manager are ped The fist method is called 'Servs0 Snares end Consoidenan Metled • end will *Notate* nen series of the hedge fund eta pit vintne(. g 1, 100 0' 1000) ft evesysubsaebon penal donee the yew end a dheranINAV be Packed for each series At Me end o the septetAi:Others* peered (generePithot end Of the Year). any series ks when an me:entree*, is Meet Or!. the fund has a net profit or is overt . opplicebternon weld moteand known as the "COnsoldatio, Ser./337n* be mcorpereed nth end conscedesed as part of tne eartestsesesasued by the fund mallets an investor nal sutgated fa which en seen:Nolee is payable (Me lead Sams') Invasion holding shares in a ConsoAdating Sway me have New steed redeemed from each of the Consoklanng Sores and simueaneously be issued addlonalshetos of Me teed Sores (based on the NAV of the lead Sohn on the conversion date) Any sorest , when en ncentve fee is net pOyetesse 0 the turd hes a net felt ai: not pie the OPPloOnelnin nn* morn wa remain ois a SOitevoteS4mos ton, the leadeing Menthe fed period end, teherefhat Som-endS when 1 " *el" be evaluated am eonsoAdated as pal of the Lead Series tee prevOuStydascoled nein met Thesecond method a caPeettno EquatatenAtenod' Equelcalsonls an accoonte malhoctegy used to ensure tries each in vestor in a hedge fund is paying ttsiMnt 0Ootantvotboot`dn p tnemtive fees Untie the Senn dr Shfees methdd shirn hen by elf investors we sat edre the sane NAV The 'Equate&o Arneene reflects an amount deducted from the subscnpeon amount in order to "equaiselne incovlbve fees among investors onsestmg to the Fund an the assent yew The risuatattnFactor used to determent the EquatelonAmount may varyarreng "estate and dependson both the defeat when an mveste suedetad to tne fund and the fund's current Info/ performance An investor who subscribes b a fund follawmg the mite:stoma doe wet ham an Equeteston Amotmt electsselysegregafed from the suesotfron amount utered to purchase shares The EguateationAmount can changeover tine deem:begon any new usrators entering the fund as the amount is again 'equated-to ensunseech investor has an equeabbarboaten of incentnekes Note Mat a change sn equate°tooter free can result in a negabesEisuatalsonAmount A negateeequataticnarrount implies a potent.' redsction n investor shared to soy incentive feed to the Manager Therese tee EatratahonMethods COnmOnne used today Wedeln:it*I Mend' or TteMeMittiOntlethOr Under both n # the fates up in vale from as eceptors date and horn the date in which an ostler, has inveSted fit Me end of the apptabe period (generehleyetv-end)the Equalcatontrounl is used by the Fund to owe Macias, sheres to the minter If the investor had invested in tne fund wnen the funds down it, sewssffrom AI inOeptiOn deb and the Wed sueseqoentry don up to Mk* (et of beyond the appAGstOehecrli water meth) under the Redemption Method an Invests's shares awl be redeemedto pay uroentwe fen and to the manager Under the OthecohonMethol an amount is deducted horn Me SubSaiptiOn amount and GPO& We deprecation detest which s then used to pay sncentne eel owed to the Ge elPertner os Menage on en Ongang bass For addebonehnformelon meet Me hedge fund's operahngdocvnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037482 Chase CONFIDENTIAL SDNY_GM_00306680 EFTA01511652