EFTA01511755.pdf

08 2004 JPMorgan Chase Bank .345 Park Menne, New York, NY I 0154-1002 O JPNlorgan Private Bank Account Number Asset Account Portfolio Page 12 of 15 FINANCIAL TRUST COMPANY, INC. August 01, 2004 - August 31. 2004 IMPORTANT INFORMATKW ABOUT PFUVATE INVESTMENTS: FOOTNOTES I • 3 continued Hedge fund redemptions me roan:Aeon a monthly querteeNce annual basis but can sometimes be subject to a trivhssev bcrup before a rederhoton is pee:need Foe redemptions there u genseaftya natio:akin pestd rot can beating intervalbefcern. Wheal redemotion date Radenobonpeoceeds are genereAypad 3-5 business days ante ore finalIVAV is issued but can be se4eCt to a hadaack of* porton of the proceeds cat an annualaude of the Fund has been conteeted Plea el to the applcabiehedge 'Ludt OpentreedOcurnentattn for furthendotaits For hedge funds one of two melliOdS me be used on fns statement to report how utentve foes that may be aped to the GeneralRatneree Manager are ped The fist method e caned 'Senes of Shares and Consoklinon Metter end will Miocene* net series of the hedge fund eta pit seasons g 1, 100 t 1000) for evmysubsaebon pentI donne the yew end a dneranINAV wit be backed for each synod At the end of the septet,. mcenthele resod (generenithe end of the yet). any series o' when an tnCentree fee is parade (Ir!. lee fund INS a net pedlar is overthe appliCabiersga we* mwe and known as the "COnsoldafing &Wee)mil be incorpertedwth end conscedeted es part of the eartestseses issued by the fund in when an invest.' flat suhtabed fa which en incentne lee is payableOholead Series') !mattes holding shines in a ConseAdahos Se01.4 Rio/ have thai shares redeemedfrom each of the Conscadanng Sonos and simueaneousty be issued addlonalshays of The Lead Sores (Cased on the NAV of the lead Swam on the convorwon date) My sees /m which en ncentve fee is not payable(re the fund has a net toss or is not over me epoteenelnin maw ny ,A7 we rn,naS a SOP, Vate$0”" Linn, de Wesnng incentive fee pared ends twassethat Yom-end), when twOl *91" be evaluated am eonsoadated as pal of the Lead SinesIMO prevouslydesoted croon* a mot The second method a cafed the Equatettnetifsed' EqueMetsonls an occconbng malhodangy used to ensurematsun maser in a hedge fund s Pang hslher 04“Wab atiretCei d nee^five fees UM,. the Sates of Shares matted. shin" 0,0d by eV ovesic's see sated a! the same NAV The 'Equate&o Amount' reflects an amount deducted from the subscneeon amount an order to "equalse- the Incenbve fees anon; investors meet's's to the Fund as the current yew The risuatatnnFactor used to detente. the EquatatonAmount may vreyarrong "esters and depends on both the defeat which an nveste suedestad to the fund and the funda current Info/ performance An investor who subscribes be fund folbevng the initeil chasing de* mV ham an Equeteston Amount entectsselysegregafed from the subscnefron amount uthzed to purchase shares The EguatationAmount can changeover line depending on any new neater, ems ing the fund as the amount is again tquaaredlo encase etch investor has an equeabbahocaton of incentsoskos Note Mat a change m equate/coon*, tine can result in a negabwEisuatabonAmount A negatneequataticnaerount implies a potent.'redtbon n investor shared to sty Ancenthe feed to the Manager Thereon tee EavatahonMethods COnmOnk used today RedemphOs Mend' or ttepnaetontierbor tindee loth ncbsda. WV* funds up in vase from es ncepton date and horn the date mwhch an invest, has inveSfed et the end of the apekaate penal (genee"yetv-end)the &Walcott>,Anew,1 , used by the Fund to awe Waco* , shares to the ontista. If the investor had invested in the fond when the funds down m we'vefrom is incepton Ostend the Fund SuPsesuentry goes up in valve (at or beyond the eppeoseleshrgh water meth) under the Redernoton Method an nvestaa shares an be redeem:410 pay mean& fees owed to the manager Under the OtheciabonMethol an amounts deducted run the SubaasOtsan OnVent and GPO& a3a deprecation detest whihha then used to pay "leoninelees owed to the Genes alPinter es Menage on an ongong bass For addebonahnfohnelon feet the hedge unda operehngdoevnents Confidential Treatment Requested by JPMorgan JPM-SDNY-00037588 Chase CONFIDENTIAL SDNY_GM_00306786 EFTA01511755