EFTA01511543.pdf

02 2003 JPMorgan Chan: Bank 345 Park M enue, New York, NY 10154-1002 II3 JPMorgan Private Bank Account Number: Asset Account Portfolio Page 9 of 9 FINANCIAL TRUST COMPANY, INC. February 01, 2003 - February 28. 2003 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 confined Fledge fund redemptions me genereayon a monthly queleeNce annual basis but can Sometimes be solved to a tristssetv belsup before a rederhoton is per:meted Fos tectemptvns th ree genceaftya notikabonpentd rot Can beating interval befcern. actual redemobon date Redenobon proceeds are genereAtipad 3-5 business days alter Me final IVAV issued but can be subect to a holdback of et porton of the proceeds oat an annual audA oI the Fund has been completed Plea el to the applcabiehedge 'Ludt operethedOcurnentattn for furtherdettis For Wee funds One Ot No0 ng11pds me be ',sad on this statement to report how utentve foes !net may be bred to the GeneraIRWIner O. Manager are pad The fist method is caned 'Senn of Shares and COnsOMaton Metter and ma *Noce!.a new series Of the hedge fund ate per vaAno(e g 1, 100 0' 1000) to evohysubstob n pened donne the yew and a dneronINAV wal be backed for each saves Al the end of the septet,. ncentneles mod (generehithe end of the year). any sines ks when an tncentreefee s parade Ors. the fund has a net Mel Or is overte applabierngn ea* mark' and known as the "COnsoldating Sera )mil be mcorporesed wen end corsets:lased as part of tie eartestsesesasued by the fund m valon an invest.' nal sutgated fa which an oxen:Nolee .5 paystasshhe lead Sams') !mattes Wang shares in a ConsoAdateog SW*. wit/ have thee shares ted001710d61,117 each of the Conscadanng Sot es and simueaneously be issued addlonalshays of the Load Sores (based on the NAV of the Load Sores on the convorsoon date) Any SO/004 kt which an viCentve fee is not POY•bint 0 the fund has a net Kea or is not ova IM OPPlablebqn ova* nV,A7 we lariat/ AS a SaPa.ata$0”03 onti the fOOCwing Menthe fee Oen, d *XIS tomtsethat rhhe-tadr. whoa d wOinhhn be evaluated am eonsoadated as pal of the Lead Sores tee previouslydecohod alI041. is roof Thesecond method 4 case the Equalue,c+tatence' Equelcatosas an accounbng mathoettgy used to ensure that each months in a hedge funds payee 'star 0OolaNeatiOcat'an a ,ncent,va fees Oath. the Saes of SweSn'ort4d shireS 0,0d by investors we sated a! the sane NAV The Equatatorstnome reflects an amount deducted from the sutecneeon amount m order to "equalso-the oncenthe fees among investors mestere to the Fund as the amen! you The risuatattnFactor used to detente. the EquatabonAmount may varyarrong maestros end depends on both the dale et when en mveste sub=bed to the fund end the fund's current Info/ performance An investor who subt-nees b a fund follawmg the nitol cbsmg dat wet haws an Equetaton Anoint electnelysegregafed from the suescnefron anoint utired to patches° shares The EguatationAmount can changeover time deem:Invon any new aweeto s ("bong the fund as the amount is again lasuratedlo ensureetch investor has an equstabbahocaton of encentnoskos Not Mat a change sn equate/coons, time can result in a negahnsEquatahonAmount A negatheequataticnarrount atones a pot ted'redsction n investor shares to Tay incentive fees to the Manage, neve ate tie Eatratahon Maenads COnwnOnk used today 'Peden:ten Method' or t'epreoato Method' Under loth n it* fund is up in vale from Is ircepbOn date and from the date in whch an outlet has invested et the end of the apeAcaNe penod (generethyetvend)the &Walcott>,Anew,' is used by the Fund to owe aotle•onst I&ea b the wheat," If the investor had invested in the fund when the funds down m vshuteh pm as inception dab and the Fund subsequentry goes up in value (at 0 beyOnd the epphsattnegh water meth) under the Redemoton Method an investors shares me be redeem:410 pay Menthe& fees and to the manager Under the Otheotabonifethol all amounts deducted barn the SubSaiptiOn amount and Goaded., a depreciation dap's. %Ott, s then used to pey "leonine lees owed ti the Ge es elPertner os Menage on an Oneang ba34 For addebonahnformelon rest the hedge funda operahngdocvnwhs Confidential Treatment Requested by JPMorgan JPM-SDNY-00037371 Chase CONFIDENTIAL SDNY_GM_00306569 EFTA01511543