EFTA01511784.pdf

10 2004 JPMorgan Chan: Bank 345 Park A% emu% Nen York, NY 10154-1002 II3 JPMorgan Private Bank Account Number Asset Account Portfolio Page 11 of 14 FINANCIAL TRUST COMPANY, INC. October 01, 2004 - October 31, 2004 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 Continued ledge fund redemptions me genereayon a monthly querteeNce annual basis but can same:nines be subject to a trwassee, be/we before a redemoton a per:meted Fos nedeniptyns there is grettlitY• Itatikab011 PSIItd diet can beating interval befcern. actual reclamation date Rodenebon pfoceeds are esenereAypad 3-5 business days alter Me final IVAV is issued but can be se4ect b a hada:sok of* porton of' the proceeds unMan annual sada of the Fund has been conetted Plea el to the appicabiehedge funds Operettedturrentaten for furtherdeftts For hedge funds one of two methods me be used on fns statement to report how ,nCentve toes that may be owed to the GentalReterce Manager are pad The fist method is Called 'Senna Shares end Consoklition Methxf end will *Notelets nen sanest of the hedge fund eta pit yearn. g 100 or 1000) fp evesysubsaebon penal donee the year end a dneranINAV watt* backed for each saves Al the end of the epplest4eAcantneloo peered (genereNthe end of the ye er). any series kt whsch an mooningfeea Meet (IS. the fund has a net pitta is erectile appliCaderng/1 vac* mark' and known as tne -Consonialing Sego's" incorperetedwah end conscedesed as pert Of the eerie:Its...es issued by the fund mallets an investor hal subtated fa which en incentNe lee is payableOholead Sams') Invasion holding shares in o ConsoAdatingSIIIII4 wet have that, shoos M4001710d601/7 each of the COnSCadahng Sonos and SurnuaanCOuStybe &Sauget eddlonalshays of The Lead Sores (based on the NAV of the teed Sores on me convorsoon date) Any SO/004 whCh en ncentve fee is not payable(' 0 the turd hes a net lois a is net Over die OPPMMY1 Wn Ps* me, war info St a SapwataSanas von, the laanwmg Meath, kaindandS tenssethet YON'end), when d " again be evaluated em eonsoAdated as pal of the Lead Sines ft led previouslydesoJed nee a mot Thesecond method 4 caPoitno Equatatenateared' Equeleetronls an occounte methodology used to ensure trial each myth:sin a hedge fund it Perini 15,,Mer 00“Wahleatbeet`Ce, at ne•ht,,re 14/ . 3 kWh, the Senn of Shores "gnat shin" he'd by eV investors we sated a! the sane NAV The 'Equate&o Anstme reflects an amount deducted from the subscnptnn amount n ores to 'musically inceedive fees among investors "etre to the Fund in the amen! yew The risuatattnFactor used to deke mine the EquatatenAmount may varyarreng "eskes end depends on both the dale et when en mveste subset bed to to fund end the fund's current Info/ performance An investor who subscribes b a feed follawmg the nital cbsmg dare mV haws an Equeteston Amount electsselysegregated from the sub:matron amount utazed to purchase shares The EguateationAmount can changeover time depending on any new mottoes essaying the fund as the amount is again 'equated-to ensure etch inve*r has an equeabbatecaten of "commieYes Note Tat a change n *swataticodner erre can result in a negates EisuatalsonAmount A negatreeequataticnarrount atones a petted' redsction n investor shares to Tay incentive fees to the Manager neve en tie EatratabonMethods conwnosy used today Redemehess Method' or Tiepeoefon Alethof Undo, both n /the fund d up in vatie from as neeet' n date and horn the date in which an invest*, has invested fit the end of the appAcaSe period (generaSyyesvend)the Egualcatontrounl is used by the Fund to Wye additional shoes to Vie :meta if the investor had invested in tne fund when the funds down in %gave ftom as incepton date and the kind suMeituentry goes up in ratite (et ce beyond the stspaasialeshegh water math) under the Redemoton Method an investors shares me be redeem:410 pay menthe fees coned to the manager Under the OstreciabonMethol an amount e deducted (rn tne subscription amount and Goaded as a deprecation depose which a then used to pey sneentne lees owed to the Ge elf:later cs Menage on en Cogan? bass Fa addebonahnfermakes mast be hedge urea operehngdoevnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037618 Chase CONFIDENTIAL SDNY_GM_00306816 EFTA01511784