JPMorgan plans lesser index notes linked to S&P 500, Euro Stoxx 50

By E. Janene Geiss

Philadelphia, Aug. 6 ? JPMorgan Chase & Co. plans to price an issue of lesser index annual review notes due Aug. 23, 2010 linked to the S&P 500 index and the Dow Jones Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at increasing premiums if the index levels for both indexes are at or above their respective call levels on any of three annual review dates.

On the first review date, the call level for each index will be 90% of its initial level. On the second and third review dates, the call levels for each index will be equal to their initial levels.

The redemption amount will be par plus at least 14.25% if the notes are called on Aug. 18, 2008, par plus at least 28.5% if called on Aug. 18, 2009 and par plus at least 42.75% if called on Aug. 18, 2010.

The exact redemption levels will be set at pricing.

The payout at maturity will be par if neither index has declined by more than 10%. If one of the indexes has declined by more than 10%, investors will lose 1.1111% for each 1% that the lesser-performing index drops beyond 10%.

The notes are expected to price Aug. 10 and settle Aug. 15.

J.P. Morgan Securities Inc. is the agent.

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