EFTA01511740.pdf

06 2004 JPMorgan Chase Bank JPMorgan Private Bank Account Number Asset Account Portfolio Page 12 of 15 FINANCIAL TRUST COMPANY, INC. June 01, 2004 - June 30, 2004 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 Conbnued Madge fund redemptions me generceyon a monthly querteeNce annual basis but can Scmeernes be subject to a Inueeme be/we before a redemoton is pcnntted For nedemptves there FS prettify' /folio:oboe peedd Mid can betaking interval be cern. Wheal reclamation dab Rodenebon proceeds are genereAypad 3-5 business days after Me final IVAV is issued but can be su4eCt ba hadeack of* porton of the proceeds unN an annual aude of the Fund has been carpeted Flea el to the applicabiehedge funds Operatired0Currentaten for furtherdetaits For hedge funds one of two midllOdS me be used on Ind statement to report how incentve foes that may be &nod to the GeneralRelnerce Manager are perd The fist method a called 'Series el Shares and Consoklaban Methxf end will *Notate* nee serestof the Wee fund eta par vintne(. g 1, 100 cr, 1000) for evesysubsaireon penal donee the year end a dneranINAV wort be backed for each series At the end of the appeCablencentheles period (generePithe end of the year). any series fm when an tnlrentreeA90 s Met* (IS. the fund has a net mil or is erectile epplitederng/s we,* mwe end known as the "COnsoldefing Sines) mil be incorporeed web end conscedeted as part cl the eerie:Its...es issued by the fund Avalon an invest." hat sutgabed la which en incenere lee is payableOho lead Sams') Investorsholding shares n a ConsoAdaterq wow have New shores ted001710d60117 each of the Conscedanng Seeds and simueaneousty be issued oldlonalshatos d The Lead Sores (based on the NAV of the lee! Sores on the condrwon date) Any Kenn whCh en viCentve tee a not poyebisre 0 the fund Ms a net IOSS f a net Odle It,. OPPesebelegh w erfhar wa rMen&s a SOP, Vate$0”ea Linti the lanwing +menthe fee Pored enda teenerefht Yom-endr , when t" again be evaluated am consoiSdated as pal of the Lead Seines tithe previouslydescribednee a rnof Thesecond method a Cale:Imo EqualurtenAteded' Equercebeas an accounee mathodcrogy used to ensure trial *rich maser in a hedge fund a paying hgbar 04“WabbatiretCei ne•o&ve 14/ 40 IAN, the Series of Shares merbbd MO" hen by. , vases we valued a! the sane NAV The EquakrabonArncene reflects an amount deducted from the subscnpeon amount n order to "equalciethe smenbve fees anon; "rosters oneesPeg to the Fund an the amen! year The risuaSzationFactor used to &dummy the EquatatenAmount may varyarreng "esters end depends on both the dale at when en mveste subset bed to :he fund and the fund's current Info/ performance An investor who subscribes b n lord folbwrng the retell cbsing dab wet haws an Equercaton Amotmt effecteolysegregafed from the subscrefron anoint utered to purchase shares The EguaeationAmount can changeover time depending on any new us/asters entering the fund as the amount is again INiurbtredlo eestanseech investor has an esintabbatecaten of incentdedos Note Mat a change m equates/ono/a brre can result in a negabv EquaezabonAmount A negateeequabraticnarrount empties a pctentotredsction n investor shares to pay incentive fees to the Manager neve en tie EatrakrahonMethods COnvnOnk used today 'Peden:to Method' or Tlepseorefontiethof Under both n # the fund's up in vet* from RS dceptiOn de* and dean the date in which an ovesto, has nvestedat The end of the appAcaSe penal (geneeeMeyetv-end)the Eau...Wotan/wow,' is used by the Fund to issue eddeonst ahem to Vie minter If the owe-trite had invested n the fund when the funds down m waive M1pm As inCeptiOn deb and the kind SUOSeqoentry goes up vs rake (at of beyond the eppassieench water meth) under the Redemoton Method an Invests'' shares wet be redeem:410 pay inoenbve fees owed to the manager Under the DepecebonMethol an amount is deducted fern The subscription amount and GPO& as a deprecation detest whdn d then used to pay "leonine leel owed to Me GeneralPiotner ce Menages on an angora dies For addlonahnfoinelon feet the hedge funda operehngdocvnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037573 Chase CONFIDENTIAL SDNY_GM_00306771 EFTA01511740