EFTA01511611.pdf

08 2003 J.P. Morgan Securities Inc. 270 Park Avenue, New York, NY 10017 II3 JPMorgan Private Bank Account Number: Margin Account Portfolio Page 15 of 15 FINANCIAL TRUST COMPANY, INC. August 01, 2003 - August 31, 2003 IMPORTANT INFORMATKW ABOUT PRIVATE INVESTMENTS: FOOTNOTES I • 3 continued Hedge fund redemptions me generenyon a monthly questeeNce annual basso but can sometimes be subject to a trivassew bchip before a rederhoton a pee:need Foe tedemptens tereb genreafiya notileabon paved awe can beating intervalbefcern. actual redemotion date Redenobonpeoceeds are genereAypad 3-5 business days ante Me finalIVAV is issued but can be outwore be/sada:sok of* porton of the proceeds until an annualaudit of the Fund has been cornatted Flea el to the appicabiehedge 'Ludt OperetreedOcurramtattn for furthendettts Fm hedge funds one Of MO inatilodS me be used on Ins statement to report how intent ye lees OHO me/ be owed to the GenetaIR)ttnerte Manager are Red The fist method e caned 'Senna/ Shares and Consofda:on Methxf end will Miocene* nen series of the hedge fund ate pit seasons g 100 t 1000) for ev.ysubsa.tcn penal donne the yew and a dneranINAV wal be backed for each saves Al the end of the septet,. mcientheloo mod (generenithe end of the year). any senes when an moonrisefoe a pent* O.. lee fund free a net mid or d overt. epplerabierndn vac* mark' and known as the -Consoelating Saxes"niil be incorpertedwah and cant deed as pan of the eartestseses issued by the fund in yr hch an invests hes subscribed tar which an iterate lee .5 penitent* lead Stones') Invest*,holding shams in a ConsoAdatird Seel mil have that, shires modoorriodfrom each of the COnSCAdahng Sono, and SurnuaanCOuStybe issued addlonalshires of to Lead Sans (basedon the NAV of the Lead Stetson the convorsoon date) My sees kr which an ocentvero. a not payable(fa the fund Ms a net 'merit not of etM OPPlablebqh nand'awn en, imam &SO:OP...VW)" LW" the AdOcinog toCaltnn, PeeVd *Mb teamssetIW rhat-endS when InOl again be evaluated am eonsoadated as part of the Lead Series ft Me previouslydescribed croon* ss mot The second method a canedtn. Equatattnateatud' "Feat &oa an occambng malhodangy used to ensurematsun masks in a hedge fundis Paymg nal* , 04“WabbatiretCeine Incentive14 / 40 kWh, the Series of Shares method shires he'd by eN eiveSIC'a see saluedat the sane NAV The 'Equate&o Arnome reflects an amount deducted from the subscneton amount an order to 'en:melee- tne oncenbne fees anon; invest es onresbrg to the Fund as the current year The risuatatnnFactor used to dokemr. the EquatabonAmount may vreyarrong "esters and depends on bath the defeat which an nuance suedestad to :no fund and the fund's current Info/ performance An investor who subxertes b a fund folberng the nital cbsing eat mV ham an Equeteston Amotmt enfectsselysegregafed from the subsotfron amount uthzed to pantheons shares The EguatationAmount can changeover time depart/Non any new mentors entering the fund as the amount is again tquaaredlo ensure etch investor has an equeabbarbcaton of .ncenteekos Note Mat a changers equate/ono/a erne can result in a negabwEisuatabonAmount A neganeeequataticnaerount empires a potent.'redttion n investor sheers to sty Ancenthe feed le the Manager Innen tee EavatahonMethods conmonk used today RedeneihonMeencr or "Depnoneon Method' Under both ncbsda. d to fund is up in vat* from es ercepbon date and from the date in which an invests ha, invested at the end of the Shekel*. penal (0enent4yetv-end)the &to...WatsonAnoun is used by the Fund to awe addihorkti Shale, b the minter If the vneesb, had invested in the fund when the fund is down m va‘ue front 43 ocepton date and The kind SuMeguentry goes up vi rate (at ce beyond the teophostOeNoll water math) under the Redernoton Method an nvestaa shares net beredeem:410 pay mean& fees owed to the manager Under the OtheciabonMethol an amount ,, deducted from The SubtenpttOn amount and goad& as a depreciation deeds. which .5 then used to pay "leoninelees owed to Me Ge elf:later os Menage on an ONP00 Da3.3 For addetiOnahnktmaket feet Me hedge funda hereto° dOCvnWeS Confidential Treatment Requested by JPMorgan JPM-SDNY-00037441 Chase CONFIDENTIAL SDNY_GM_00306639 EFTA01511611