EFTA01511711.pdf

04 12004 JPMorgan Chase Bank 345 Park Avenue, New York, NY 10154-1002 JPMorgan Private Bank Account Number: Asset Account Portfolio Page 14 of 17 FINANCIAL TRUST COMPANY, INC. April 01, 2004 - April 30, 2004 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 ambnued Hedge fund redemptions ere genersayon a monthly querteeNor annual basis but can sceneennes be subject to a trudtlee, be/we before a redemoton a pet:meted For seder:spa:ins there is grettlitY• ItatikabOll period rot cen betaking infant befcern. actual redenwtcn date Redenobon proceeds are genereAypad 3-5 business days alto ate final IVAV is issued but can be su4ect to a hadaack of* porton of the proceeds unM an annual eude oI the Fund has been completed Flea el to the applicabiehedge Iund Operel, rodocurnentabon for furtherdetatts For hedge funds one Of No0 melliods me be used on this statement to report how utentve tees !net may be Owed tO the GeneraIRWInerCe Manager are pad The fist method e called 'Senn el Shares and Consofdeton t/eir and ma *Notate* new series of the hedge fund ate per yearn. g 100 co, 1000) kr evsysubscobon penal dung the year and a det!eranINAV wolf be backed for each aeon Al the end of the appaCaeleencentiveloo mod (generePithe end of the year). any sane. Itt when an mcenewslee s met* (ifs. the fund has a net pion, or is over the *apnea/01w/, vac* mwe and known as Me "Conso4defind Sego's" mcooperaled web end conscadaled as part of the ,ssued by the fund Avalon an invest.' hat subsatddhY when an even:helee is payable (Me lead Sams') Invest*, holding Shinn n a ConsoAdateNSIIIII4 Rio/ have Psi shares ted0Ornad*OM each of the Coast:Mating SOOOS and smueaneously be issued addlonalshatos onto Lead Sores (based on the NAV ol the Load Sows on the convorsoon date) Any SO/004 la which an mcentvero. a not payable(fa the turd has a net tees a 4 not OW( the OPPlableNgh n* na,A7 we isnain aS a neisseeteSsn'es ton, the (diVynng Mentha fed Pan, d enCIS igeheret4e1 YON-edd). when again be evaluated am consoiSdated as part of tne Lead Seines tine pievoustydesa nod cont. is roof Thesecond method 4 ea0od the Equal:abanatehod' Equelcatonls an accounting mathodakogy used to ensure that each in vestor in a hedge fund s paying hslher 04“WabbatiretCei cre meanie 14 / 40 IAN. the Senn of Shares merndd shireS hen by a? investors we valued a! the sane NAV The EquakratonAmome reflects an amount deducted Atm the suhsenpOon emourg an order to 'equairelne oncentne fees anon; investors oneestmg to the Fund in the amen! yea' The risuaI..raticnFactor* used to deb me. the EquatatonAmount may varyarrong wheaten and depends on both the defeat when an mveste subscnbes to be fund and the fund's current Info/ performance An investor who subscribes b a fund follawmg the nital cbsing dab mV haws an EqueAcaton Arrant effectnelysegregafed Itom the suescnrfron amount uttred to patches., shares The EguatcationAmount can change over time dependingon any new mossforsembong the fund as the amount is again lasurstredlo ensure etch investor has an equeabIsebcaton of incentnekos Note vet a change m equateationena• time can result in a negabwEquaSzabonAmount A negatneeequabraticnarrount atones a patent.' red‘ction el investor shares to pay Ancentne fees to the Manager neve ate tee Eavekrahonlkehods connionk used today 'Peden:ten Mend' or Tleionoaton Veinal' tinder loth n /re fund is up in vat* from as ercepton date and horn the date in whch an investor has invested at the end of the apeAcaNe penal (gener"yetvend)the EgualcatonAmounl is used by the Fund to issue adchhonsi shave to the minter If the investor had invested n the fund when the funds down m we've fram Al inception dab and the Fund so :sentry does up in rah* (at or beyOnd the appa:seehegh water meth) under the Redemption Method an investors share, me be redeem:410 pay moenbve fees coned to the manager Under the DesrecebonIgethol an amounts deducted kyr re subsciption amount and oeddecl as a depeciation Otitis*. what, s then used to pay "leonine lees owed ti the Ge e•alFertne, co Menage on an Oneang bass For addlonahnfoinelon feet the hedge funds operehngdocvnwts Confidential Treatment Requested by JPMorgan JPM-SDNY-00037544 Chase CONFIDENTIAL SDNY_GM_00306742 EFTA01511711