EFTA01509962

J.P.Morgan For the Period 1211/10 to 12/31/10 If you have a margin account with J.P.Morgan. as permitted by law we may use certain securities in such account for, among other things, settling short sales and lending the securities for short sales. and as a result may receive compensation in connection therewith. Please keep the following in mind when using a statement to track your brokerage activity in a margin account: The statement combines your general margin account with the special memorandum account required by Section 220.6 Regulation T. As required by Regulation T, a permanent record of your separate account is available upon your request. Free credit balances in your margin account(s) are not segregated and may be used in the operation of JPMCCs business, subject to the limitations of SEC Rule 15c3-3. Unless otherwise noted, JPMCC or its agents and depositories will hold your securities. Upon your demand. JPMCC will pay to you the amount of your free credit balance, and will deliver to you fully-paid securities held on your behalf. Interest will be charged on any debit balance: the method of calculating interest is described in a letter sent to all margin customers. Page 16 of 16 Confidential Treatment Requested by JPMorgan Chase CONFIDENTIAL JPM-SDNY-00035550 SDNY_GM_00304748 EFTA01509962