Contributions you may have previously made to a heritage 401(k) plan after federal, state, and local income taxes were withheld. These contributions should not be confused with Roth 401(k) contributions.

Contributions you make to the plan that are taken from your pay before federal (and, in most cases, state and local) taxes are withheld. This lowers your taxable income and your current income tax liability. The Internal Revenue Code limits the amount you may contribute annually to the 401(k) Savings Plan on a combined before-tax and Roth 401(k) basis. For 2008, the combined legal limit is $15,500. This amount is subject to change periodically.

For purposes of making employee contributions, benefits pay is your annual base pay plus applicable job differential pay (e.g., shift pay). It does not include any annual bonuses, overtime, special recognition, or other incentive awards you might receive. In certain situations, your benefits pay may include other cash earnings (e.g., commissions, draws, and overrides) paid under certain non-annual incentive plans that provide compensation in lieu of base salary. For 2008, the legal limit on benefits pay is $230,000.

Generally, the period beginning on the date your employment with JPMorgan Chase, or an affiliate that is a member of the controlled group, ends for any reason and ending on the date you're rehired. A break in service may affect your total service, and therefore, your right to receive matching contributions under the 401(k) Savings Plan. Please see "If Your Situation Changes" for a more detailed explanation.

Before-tax and/or Roth 401(k) contributions that may be made annually to the 401(k) Savings Plan by eligible participants who are age 50 or older as of December 31 of any calendar year. The Internal Revenue Code limits the amount you can contribute annually on a catch-up basis. For 2008, the legal limit is $5,000. This amount is subject to change periodically. Please see "Catch-Up Contributions (If Eligible)" for more information.

Common stock represents an ownership interest in a corporation. If the company has also issued preferred stock, both common and preferred stockholders have ownership rights. Common stockholders assume a greater risk of loss than preferred stockholders, but generally exercise greater control and may gain a greater reward in the form of dividends and capital appreciation.

One of the investment funds in the JPMorgan Chase 401(k) Savings Plan that represents a single investment fund under the plan.

A payment of cash or stock from a company's retained earnings to each stockholder as declared by the company's board of directors. Dividends are not guaranteed.

The JPMorgan Chase Common Stock Fund, one of the plan's investment funds, is also an Employee Stock Ownership Plan (ESOP). You can elect to have any dividend income reinvested in the JPMorgan Chase Common Stock Fund, or you can have it distributed to you in cash. Please Note: This type of dividend does not qualify for the lower tax rate normally applicable to dividends paid directly by a corporation. Please see "JPMorgan Chase Common Stock Fund Dividend Election" for more information.

An employee who is regularly scheduled to work 40 hours a week.

Withdrawals of certain types of vested money are allowed only if you have a serious and immediate financial hardship that cannot be met by other resources and is limited to very specific circumstances. Please see "Withdrawals While Employed" for more information.

The predecessor savings plans that heritage Bank One and heritage JPMorgan Chase employees participated in prior to January 1, 2005. The predecessor plans are the "Bank One Corporation Savings and Investment Plan" and the "JPMorgan Chase 401(k) Savings Plan."

An investment fund that invests substantially all its assets in shares of JPMorgan Chase common stock except for a certain amount of uninvested cash to use in settling daily transactions.

Contributions made by JPMorgan Chase to the 401(k) Savings Plan on behalf of certain eligible employees after they complete one year of total service. These contributions match, dollar for dollar, the first 5% of benefits pay that you contribute to the 401(k) Savings Plan on a per pay period basis (up to the legal limit). Please see "JPMorgan Chase Matching Contributions" for more information.

Please Note: If your total annual cash compensation is $250,000 or more, you are not eligible to receive matching contributions under the 401(k) Savings Plan. This determination is made as of each August 1 and applies for the next succeeding calendar year.

Discretionary contributions made by JPMorgan Chase, from time to time, for certain non-highly compensated designated employees. Please see "JPMorgan Chase Non-Matching Contributions" for more information.

In the JPMorgan Chase 401(k) Savings Plan, an investment portfolio that is made up of a predetermined combination of some of the plan's direct funds. In no case does it include the JPMorgan Chase Common Stock Fund. The investment mix of a lifestyle fund reflects its particular investment objectives and a defined degree of risk and return.

The value of each plan investment fund normally determined as of the close of business of the New York Stock Exchange. It is generally based on market quotations. If market quotations are not available for particular securities or are not deemed to be representative of their value, the plan uses various methods to determine the value of such securities that reflect their fair value.

The fair market value of the assets of each investment fund's total assets less liabilities, divided by the number of units allocated to the fund. The value of a single unit is called net asset value per unit, or NAV.

A salaried employee who is regularly scheduled to work between 20 and 39 hours per week.

For purposes of determining whether any investment earnings associated with Roth 401(k) contributions can be withdrawn tax-free, a qualified distribution is one in which:

A contribution you make to the JPMorgan Chase 401(k) Savings Plan from a previous employer's tax-qualified plan (like another 401(k) plan), from a conduit or contributory Individual Retirement Account (IRA), from another qualified plan including a governmental plan, or from the JPMorgan Chase Retirement Plan (after you terminate employment with the company). Please see "Rollovers" for more information.

Contributions you make to the plan that are taken from your pay after federal, state and local taxes are withheld. This does not lower your taxable income or your current income tax liability. The Internal Revenue Code limits the amount you may contribute annually to the 401(k) Savings Plan on a combined before-tax and Roth 401(k) basis. For 2008, the combined legal limit is $15,500. This amount is subject to change periodically.

For purposes of determining your eligibility to receive JPMorgan Chase matching contributions and non-matching contributions, total annual cash compensation is your base salary plus applicable job differential pay (e.g., shift pay) as of each August 1, plus any cash earnings from any incentive plans (e.g., annual bonus, commissions, draws, overrides, and special recognition payments or incentives) that are paid to or deferred by you for the previous 12-month period. (Overtime is not included.) Your total annual cash compensation is calculated as of each August 1 to take effect the following January 1 and will remain unchanged throughout the year.

Generally, the period beginning on your first business day actively-at-work as an employee of JPMorgan Chase or an affiliate and ending when your employment ends. This generally includes all periods of employment with JPMorgan Chase or any of the merged companies that have become part of JPMorgan Chase.

If you had service with heritage Bank One, your total service will not include such prior Bank One service to the extent it would not have been recognized by the heritage Bank One Savings and Investment Plan.

A portion of ownership in an investment fund (or portfolio).

Your right or your designated beneficiary's right to receive your entire plan account balance. You're always 100% vested in (meaning you have a non-forfeitable right to) the value of your contributions ¾ whether before-tax, Roth 401(k), or rollover ¾ and any investment experience associated with these contributions, as well as the value of any associated matching contributions (adjusted for investment experience). JPMorgan Chase non-matching contributions, if any, will generally vest after you complete three years of service.