EFTA01511555.pdf

03 2003 JPMorgan Chase Bank O JPNlorgan Private Bank Account Number Asset Account Portfolio Page 12 of 12 FINANCIAL TRUST COMPANY, INC. March 01, 2003 - March 31, 2003 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 Continued ledge fund redemptions me generedyon a monthly querteehice annual basis but can sometimes be subject loanable* , bcisup before a rederhoton is pennfted Fos federnptvns there is grettlitY• ItatikabOll PSIItd fret can betaking infant been the actual redenwtcn date Radenebon proceeds are genereenad 3-5 business days afar Me final IVAV is issued but can be subect to a hadbeck of et porton of' the proceeds unto an annual suds! of the Fund has been conented Plea el to the appicabiehedge funds opentsiednurrentaten for fuitherdefasts For hedge funds one of taro methods mil be used on fns statement to report how motet ve fees fret may be card to the GennalRelnerce Manager are ped The fist method is oohed 'Senn or Snares end Consofdeton Methxf *id will *Nonni nen series of the hedge fund eta per vaste(. g 1100 n 1000) for evmysubsa.bon penal donee the year end a dshennINAV be backed for each series Al the end of the appanstee assenting&is peered (generalythe end of the year). any series ka when an meaner.feet parade, OS. the fund nes a net mid of is overlies applabierng/1 vac* mwe and known as the "Conso4deting Sego's" mil be marportaledwn end cone deed as part of tie snood by the fund in when an inane' has subarea:ad fa when en sreenthe lee is paystorghe lead Seises') Invasion Wang shares in a ConsoAdateN Will hove ape shines todoorned from each of the ConsoWahng Sonos and sirnueaneoustybe issued enthrone!shires of The toad Sores (based on the NAV of the Lead Sohn on tee contersoon date) Any SO/004 whCh en avenuein is not pay.blissi 0 the fund nes a net lOSS a is net 0m0 the eiSPIvenelnih neer men we 'erne*, AS a SaPa.ata$0”03 °nu fhe thensing +menthe fee Petvd ends reenerefht SON'end), when d *Of fl esh be Oralunted em eonsoadataI as pal of the Lead Sores tee prevroustydasohtd nee is mat The second method is cave the EquaIntentashod' Eguelcationls an accounlag malhodology used to ensure trial nen maser in a hedge fund is paying stet eetvlehteaftOcet`dn Of oteentve fees kWh, the Sensed ef Snares metnnd shOn 0,14d by alf investors we valued at the sane NAV The Equakraternancene reflects an amount deducted from the suescnpeon amount n oaks, to 'equestre-the oncentne fees among investors mental to the Fund an the amen year The rasuateatignactor used to dykenine the EquatatenAmount may vasyerreng monks: and dependson both the defeat which an mveace subsets:as to the fund and the fund's current Info/ performance An investor who subscribes to a fund follatang the anal ensue dee wet ham an Equelcaton Amotmt *peons segregated from the sue:cession amount veered to purchase shares The ScsuateationAmount can changeover two depending on any new .males ~mg the fund as the amount is again lasurearedlo encase etch nyanzr has an assitabbahocaten of incenttoskos Note Mat a change sn equates:rooms (we can result in a negabwEetenalsonAmount A negatseeequanaticnarrount implies a potence redscten n investor shares to Tay incentive fees to the Manages nevem No SavenahonMe4hods convnoni)e used today 'Peden:ten Method' or Ttesnovehonfiethof Undo, both n /the fund ss up in vet.* from as aceptors date and *cm the date in which an investor has investedet the end of the apfecabe peed (0enetehlnetv-end)Ine &to...Watson Amon, is used by the Fund to owe eddeorel shores to Vie sonata If the invests., had invested in the fund when the te nds down m Yaw from es inoepbon de* and the end suesequentry does up v. value (et of be and the appnostke Noll water math) under the Peterhof*n Method an investors shares me be redeem:410 pay etcentwe tees owed to the manager Under the DerrennonMethol an amount is deducted from the subsaiption amount and Goaded as a desiccation detest which is then used to pay "leonine feel owed to the Ge e• elnennet a Menage on an ONP00 bass For addebonahnformehon, feet the hedge funda operehng doevnwsts Confidential Treatment Requested by JPMorgan JPM-SDNY-00037383 Chase CONFIDENTIAL SDNY_GM_00306581 EFTA01511555