EFTA01511583.pdf

06 2003 JPMorgan Chase Bank .345 Park Menus-, New York, NY I 0I54-Ino2 O JPNlorgan Private Bank Account Number Asset Account Portfolio Page 10 of 10 FINANCIAL TRUST COMPANY, INC. June 01, 2003 - June 30, 2003 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 conbnued ledge fund redemptions me genereayon a monthly questeeNce annual basis but can "'melon's be subject to a Invassee, bc/up before a rederhoton is per:need Fos nedemptons there is densely' natl./dean pen:drat can beating integral be cern. actual reclamation date Rodestetson pfoceeds are esenereAypad 3-5 business days ales Me final NAVis issued but can be subect b a hadtmek of* portend the proceeds unM an annual oath/ of the Fund has been conetted Plea el to the appicatthedge funds operethedOcurrentaten for furtherdefeas Fm hedge funds one of rho meinods swNbe used on Inn statement to report how meant ve foes !net may be owed to the GentalRelnesce Manager are pad The fist method is Called 'Senna Shares end Consokhdon Melted' end me *Notelets nen series of the fledge fund eta pit vintne(. g 1100 t 1000) fp evonysubetob n penod donee the yew end a dheranINAV wat be backed for each saves AI Me end of the septet,. mcentheles resod (generehithe end of the yet). any series o' synth an me:Boatels* a meet Ors. Use fund INS a net pontes is (N.Me applabing/1 vac* madi and known as :no -Conso4deeng Sega" nel be mcorpereted wen end corsets:lased as pert dtiee,Nestsese.s issued by the fund m when en invest."' nes subsated fcr which en oxen:tele. is poyeteshhe lead Sams') Insestoe holding shares in o ConsoAdaterq Set 44 Rio/ have thee shares roamed from each of the Cana:MabrySeinesand sirnueaneousty be issued eddlonalshays of The Lead Sores (based on the NAV of the teed Sores on the convoraon date) My sees kt which an ulcerate fee is not payable(' 0 the fund hes a net IOSS 0cis not Liar toe OPPlablehgh watal nalnao lenaa aS a eeld'eleednes non, On las'emng +Menthe fee pared ends (genssefht Wm-end) when twOl *es" be evaluated am consoadated os pal of the teed Senn t17 previouslydoseneed nee a mot The second method 4 caOod the Equal:etialAtehod' EqueMetsonls an occounte methodology used to ensure that sash masks in a hedge fund ts Parini 17,10,0, 00“Wabbatiret`Ce, of incentive 14/ . 3 UMW ft Senn of Shwas merh:d shWeS he'd by hif 'medic's; we sated a! the sane NAV The 'Equate omens:v.4W reflects an amount deducted from the sutecnpeon amount n ores to "equelrelne oncedlne fees among investors "etre to the Fund as the amen! yew The risuatattnFactor used to clekennat the EquatabonAmount may varyarreng "eskes end depends on both the dale et when en mveste subsa bed to tne fund end the fund's current Info/ performance An investor who subtrees be fund to wag the vutal cbsmg dee wet have an Equeteston Amotmt electsselysegregated torn the suescrefron amount uthzed to purchase shares The EguateationAmount can changeover time depending on any new mottoes entering the fund as the amount is again laquarntrectla ensure etch investor hes an equstabbatbcaten of incentive tee Note eel a change sn equate/endear time can result in a negatv EisuatalsonAmount A negatheequataticnarrount atones a potent.' redsction n investor shares to Tay incentive fees to the Manager Therese ties EatratahonMethods common( used today Redemetess Method' or Tlepseorston Method' Under both ncesda. d to fund e up in vats from es seepton date and from the date mwhch an mutts has melted& the end of the appAcabte penal (geneeeMeyetv-end)the &Walcott>,Anew,t a used by the Fund to due aotlaonal shove to the "nests tf the invest:" had invested in tne fund when the fund e down m shamsfrom ea inoepbon date and Me Wed au0seedentry does up vs rake (ale/beyond the epphsetthell water math) under the Rederhoton Method an Invests's shares net be redeem:410 pay menet& fees coned to the manager Under the OthectabonMethol an amount e deducted "cm tne subsadtion amount end goaded as a deprecation depot" what. d then used 10 pey onentne feel coved to the Ge e• elPertne, co Menage on en Ongang bests For addebonahnformakes feet be hedge funda operehngdoevnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037412 Chase CONFIDENTIAL SDNY_GM_00306610 EFTA01511583