EFTA01511565.pdf

04 12003 JPMorgan Chase Bank 345 Park Avenue, New York, NY 10154-1002 JPMorgan Private Bank Account Number: Asset Account Portfolio Page 10 of 10 FINANCIAL TRUST COMPANY, INC. April 01, 2003 - April 30, 2003 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 conbnued Hedge fund redemptions se genereayon a monthly querreeNce annual basis but can someone be subject to a Instssee, bcrup before a rederhoton is per:meted Fos tedemptens there is gawabya ItatikabOll period rot can beating infant befcern. actual reclamation date Redenobon psoceeds are genereAypad 3-5 business days aft Me final IVAV is issued but can be subect to a IscIdeack of et porton of the proceeds unti an annual suds! oI the Fund has been completed Flea el to the applcabiehedge fundt Ope'atnedOeunentahM for furtherdettis For hedge funds ores NoO methods me be used on this statement to report how utentve tees !net may be Owed to the GeneraIRWInerCe Manager are pad The fist method is called 'Seemed/ Shares and Gonads:le:on Met/1 end will *hotel.a new serestof the hedge fund er e pit veAno(e g 1100 t 1000) fit evesysubsa.bon penal during the year and a dheranINAVwSlte backed for each senes Al the end of the septet,. mcentheles resod (generePithe end of the yet). any sanes fa when an tncentirefee s met* Ors. Ins fund has a net pad or is overte app/abierng/1 ea,* madi and known as the -Conso4datee Sala) mil be mccoperesed wen end corsets:4W as part of the eartestseses issued by the fund my. lush an invest.' hat sutgadead fO' which en incenthe fee is payable (the lead Sams') !mattes Wang shines in a ConsoAdateNSIIIIHRui have Inn Shiest hrdernild frOM each of the ConscAdahng Sonos and simuaaneousfy be awed addlonalshatos 01 the Load Sores (based on the NAV of the Lead Sores on the convornon date) Any SO/104 whiCh viCentvero. is not poyebissIt o the fund ;wane: tees a a net Owe the OPPkeentelne water nv, A7nn reran aSa SepueeteSenns non, thefaceeg +menthe fe*Pee*d enCIS thmeretht rhhe-endS when 'flvOl•eihn be evaluated am eonsoiSdaterI as pal of the Lead Seines if MO prevOuStydescobod crass/ a net The second method 4 ea0od tn. Equatetonetenod' Equetelsonls an accounbng mathodatgy used to ensure trial each in vestor in a hedge fund is paying iNsMar 0 7“WabbatiOCat'ae, ere ,^c•o&va fees WM. the Senn of Shwas merbbd steed hen by el investors we sated a! the sane NAV The 'Equate&o Asnome reflects an amount deducted Man the subscnpion nun, an arbor to "equalciethe incentne fees anon; investors "'etre to the Fund as the assent year The risuatattnFactor used to deb mr. the Equates's:mans:on, may varyarrong shearers and clepmds on tot the defeat when an mveste subsets:as to the fund and the fund's current Info/ performance An investor who subscribes to a fund to wag the vutsal cbsing date wet haws an Equetaton Amotmt electsselysegregafed eons the subsotfron anoint uthzed to patches° shares The EguatationAmount can change over lime dependingon any new awe*, s ("bong the fund as the amount is again traurearedlo ensure etch investor has an esintabbarbeaton of incenteekos Nate Mat a change vs equateationener One can result in e negabv EquatalsonAmount A negatheequataticnarrount atones a patent.' redsction es investor shares to Tay smooth*fees to the Manager Mete en tie Eistratahon Methods conwnonk used today 'Peden:itss Mete,' or Tlemearston Metal (lode( both ncesda. We* fund s up in vat* from es ncepton date and nom the date in whch an investor has invested et the end of the apekaNe penal (genee"yetvdnd)the EqualcatenlurOunl is used by the Fund to Wye Masons, shores to the minter If the investor had invested in the fund when the funds down m waive from 43 inception date and the kind aueseqoentrypOe3 up in rate (at or beyond the epphsattnegh water meth) under the Rederhoton Method an investors shares ma be redeem:410 pay inoenbve fees coned to the manager Under the OthectabonMethol an amount is deducted am the subsapton amount end goaded 43a depreciation *0034 whnet is then used to pay "leonine lees owed to the Genteelhedner os Menage on en Ongang ba34 For addebonahnfermakes feet the hedge funds operehngdoevnwhs Confidential Treatment Requested by JPMorgan JPM-SDNY-00037393 Chase CONFIDENTIAL SDNY_GM_00306591 EFTA01511565