EFTA01511770.pdf

09 2004 JPMorgan Clime Bank 345 Park M enue, Nen York, NY 1015-I-I002 II3 JPMorgan Private Bank Account Number: Asset Account Portfolio Page 13 of 16 FINANCIAL TRUST COMPANY, INC. September 01, 2004 - September 30. 2004 IMPORTANT INFORMATION ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 continued Hedge fund redemptions me genereayon a monthly querfeeNce annual basis but can sometimes be subpart to a tristssetv belsup before a rederhoton is per:meted Fos Feder:soh:ins there u geneeathie noldiCabonpeftd roe ten besting integral befcse the actual reclamation date Redenobon pfoceeds are genereAypad 3-5 busneas days arks Me final IVAV is issued but can be sufseCt ks a hadeack of et porton of the proceeds oat an annual *suds! oI the Fund has been completed Plea el to the applcabiehedge iund operethedturnentattn for furtherdeftts For hedge funds. One Of NoO melliOdS me be used on this statement to report how utentve foes !net may be Oned ltd the GeneraIRWInerCe Manager are pad The fist method is caned 'Senn of Shares and Gonads:le:on t/eir and will *Notelets new series of the hedge fund ate pit vintne(. g 1, 100 0' 1000) fit evesysubscobon penal donne MO yew and a dneronINAV wal be backed for each seven Al the end of the septet,. ncentneles resod (genereAtithe end of the year). any senes ks when an mooning Nets Met* Ors. the fund has a net pion; or is overte opplictsbierhon we,* mine and known as the "COnsoldaling Seq./337.nd be mcorporesed wen end conscedased as part of tie eartestsesesasued by the fund Avalon an invest.' nal subtated fcr which an ocenthe lee is payable hhe lead Sams') !mattes noting shares n o ConsoAdahry SW*. nu/ have thee stares ted001710d60117 each of the Consadating Sonos and smueaneousty be issued addlonalshaws of The Load Sores (based on the NAV of the Lead Sores on the conversion date) Any 30/004 lm winch an viCentvete• a not POy•b110 0 the turd has a net lees or is net tow led OPPloOthelnin no* mo,h7 we rerne,afi$ a SaPa.ata$0”03 Loh, ft* (dOewihit Menthe fee PeeVd enCIS thmtsethat Wm-tad), who d h0/ organ be evaluated am eonsoadatesI as pal of the Lead Sores tele previouslydesohod CnISII a net Thesecond method 4 ease the Equalneviontaincd • Equelcalsonls an accounbng malhotiogy used to ensure trial each in vestor in a hedge fund is ;WM 'slam 0Olianivatihoohnn a 'neon he feed Oathsthe Serses of iShcvdsmet”Cd nen 0,14d by *V oveSIO, we sated a! the sane NAV The Equetaborstnome reflects an amount deducted Atm the suhsenpoen amount an °mkt to "equaiselne oncenbve fees anon; investors "etre to the Fund as the amen! you The risuatattnFactor used to deM'mne the EquatatonAmount may varyarrong "estate and clepmds on both the dale at when an mveste subsenbes to the fund and the fund's current Info/ performance An investor who suet-trees b a fund follawmg the vutal cbsung de* wet haws an Equeteston Amotmt electsselysegregafed from the subscnefron anoint uthzed to patches° shares The EguatationAmount can changeover time depending on any new awe*. s ("bong the fund as the amount is *dein lasurstredlo ensureetch investor has an equstabbarbcaton of mentor° kits Note Mat a changes, equate/ones*, time can result in a negahnsEquatalsonAmount A negatheequataticnarrount atones a potent.' redsction n investor shares to Tay incentive fees to the Manage, Thereon tie Eistratahon Methods COnmOnhe used today 'Peden:ten Method' or TtetneOhtiOnfi(ethOr finder Mr n the fund is up in vats from IS trcepben date and hem the date in whch an investor has invehled fit the end of the apekaNe period (generet)yetvend)the &Walcott>,AmOunl is used by the Fund to owe additions, shares to Vie investor the investor had invested in tne fund when the funds down m vshuteh dm As inception deb and the and so quenttygoes up in value (et 0 beyond the epphsattnegh water meth) under the Rederhoton Method an Invests'' shares me be redeemed., pay usoenhve fees coned to the manager Under the Othectabon Method. all amount is deducted from the SutdaiptiOn amount and aeddeclandepleciat,00 de0034 which is then used., pay "leonine lees owed to the GentelPertner os Menage on an engem"? basis For addebonahnformakes rest the hedge loon Opefebned0CvnW,te Confidential Treatment Requested by JPMorgan JPM-SDNY-00037604 Chase CONFIDENTIAL SDNY_GM_00306802 EFTA01511770