EFTA01511798.pdf

11 2004 JP51organ Chase Bank, N.A. 345 Park As enue, New York, NY 10154-1002 1''JPMorgan Private Bank Account Number Asset Account Portfolio Page 11 of 14 FINANCIAL TRUST COMPANY, INC. November 01. 2004 - November 30, 2004 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 Continued ledge fund redemptions me genereayon a monthly querteeNce annual basis but can mmeornes be subject to a trwassee, be/up before a rederhoton is per:need Fos nedenytyns there is gemeanya notileabonpettd lest can beating interval befcre the actual reclamation date Rodestetson pfoceeds are esenereAypad 3-5 business days after Me final IVAV is issued but can be suasect be/sada:sok of* porton of the proceeds unMan annual sada of the Fund has been conetted Plea el to the appicabiehedge funds operethedturrentaten for furtherdeftts For hedge funds one of two inkilOdS me be used on fns statement to report how sten:We foes Ina( may be owed to the GentalPattnerce Manager are pad The fist method is Called 'Senna Shares end Consoklehon Metlert end will *Notelets nen series of the hedge fund eta pit yearn. g 1 100 0 1000)fcevesysubsaebonpenal donee the year end a dneranINAV wat be backed for each saves Al Me end of the septet,. ncentheloe resod (genertythe end of the yet). any series lm synth an me:Boatels* s paratt Ors. Ins fund has a net pieta or is overte epplierebternsn vac* mwe and known as tne -Consovilating Sego's" mil the incorpereted wen end corsets:lased as pert Cl the eerie:Its...es issued by the fund in when en invest."' nes subtated fa which en incenthe lees payableOholead Saws') Investors holding shares in a ConsoAdatiN Sees me have thew shares redeemed from each of the COnStadahng Sonos and sirnueaneousty be issued eddlonalshays of The toad Sores (based on the NAV of the teed Sores on me convorsoon date) Any SOIOOS whCh en ncentve fee is not p.yebie(re the turd hes a net loss a is net Over It* OPPlabtentgn wales 07,0 war reran id a SaPwataSe'as ton, the tans, mg thcenthe fee PeNd axle thmere)ht YON'endS when d *Of again be evaluated em eonsoadated as pal of the Lead Sines the previouslydecodednee a roof The second method a caPod the Equatatenateared' Equeloefrosas an occounbng methodology used to ensure trial sash mesh:sin a hedgefund s payvghsslar paying 00Plab 0 etbeet`00 at neent,,re fees kWh, the Seriesdr Stares melhnd shares hen by *V invests, we salted. the sane NAV The 'Equate&o mount' reflects an amount deducted from the subscnehon amoura n ores to 'musically incentny fees among investors "etre to the Fund in the amen! yew The risuatattnFactor used to deke mine the EquatatenAmount may varyarreng "este. , s end depends on both the dale et when en mveste subset bee to ht e fund end the funds current Info/ performance An investor who subscribes b a (wed folburng the vutal closing deb wet ham an Equeteston Anent electsselysegregated from the subscrefron ancient uthzed to purchase shares The EguateationAmount can changeover time depending on any new mottos, essaying the fund as the amount is again 'equated-to ensure etch inve*r has an equstabbatecaten of incentne Yes Note Mat a change n equateaticodner tune can result in a negabveEisuatalsonAmount A negatheequataticnarrount atones a potent.' reduction nuhvesto shares to Tay incentive fees tote Manager Mete en tie EatratahonMethods conwnonne used today Redemehess Method' or Ttepeoetiontilethof Untie( loth n.res./a. Wry fund is up in vabe from as teepton date and from the date in which an invests has investedet the end of the apeAcaNe peered (genereSleyetvend)the Egualcatontrounl is used by the Fund to awe Mayas's/wee to the sweater hf the invests had invested in tne fury wren the funds down in vsthr rom As inoepbon date and the end autdettuentry goes up vi rake (et ce beyond the stphastenth notes mesh) under the Rederhoton Method an investors shares me be redeem:4Po pay eroenhve feLro Coned to the, manager Under the OtheciabonMethol an amount is deducted Iron tne subscription amount and Podded., a depreciation deposit which., then used b pey 'Menthe feel Owed to the Ge e• elPertne, Ce Menage on en ONP00 bass For addebonahnformakes feet the hedge funda operehngdoevnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037632 Chase CONFIDENTIAL SDNY_GM_00306830 EFTA01511798