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0000891092-08-001554.txt : 200803140000891092-08-001554.hdr.sgml : 2008031420080314171941ACCESSION NUMBER:0000891092-08-001554CONFORMED SUBMISSION TYPE:424B2PUBLIC DOCUMENT COUNT:5FILED AS OF DATE:20080314DATE AS OF CHANGE:20080314

FILER:

COMPANY DATA:COMPANY CONFORMED NAME:J P MORGAN CHASE & COCENTRAL INDEX KEY:0000019617STANDARD INDUSTRIAL CLASSIFICATION:NATIONAL COMMERCIAL BANKS [6021]IRS NUMBER:132624428STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:424B2SEC ACT:1933 ActSEC FILE NUMBER:333-130051FILM NUMBER:08690385

BUSINESS ADDRESS:STREET 1:270 PARK AVESTREET 2:39TH FLCITY:NEW YORKSTATE:NYZIP:10017BUSINESS PHONE:2122706000

MAIL ADDRESS:STREET 1:270 PARK AVENUECITY:NEW YORKSTATE:NYZIP:10017

FORMER COMPANY:FORMER CONFORMED NAME:CHASE MANHATTAN CORP /DE/DATE OF NAME CHANGE:19960402

FORMER COMPANY:FORMER CONFORMED NAME:CHEMICAL BANKING CORPDATE OF NAME CHANGE:19920703

FORMER COMPANY:FORMER CONFORMED NAME:CHEMICAL NEW YORK CORPDATE OF NAME CHANGE:19880508

424B21e30784_424b2.htmPRICING SUPPLEMENT

CALCULATION OF REGISTRATION FEE

Title of Each Class of
Securities Offered

Maximum Aggregate
Offering Price

Amount of
Registration
Fee(1)(2)

Notes

$3,295,000

$129.49

(1)

Calculated in accordance with Rule 457(r) of theSecurities Act of 1933.

(2)

Pursuant to Rule 457(p) under the Securities Actof 1933, unused filing fees of $371,159.98 have already been paid with respectto unsold securities that were previously registered pursuant to a RegistrationStatement on Form S-3 (No. 333-117770) filed by JPMorgan Chase & Co. onJuly 30, 2004, and have been carried forward, of which $129.83 offset againstthe registration fee due for this offering and of which $371,030.49 remainsavailable for future registration fees. No additional registration fee has beenpaid with respect to this offering.

Pricing supplement no. 1083
To prospectus dated December 1, 2005,
prospectus supplement dated October 12, 2006 and
product supplement no. 60-II dated February 27, 2008

Registration Statement No. 333-130051
Dated March 12, 2008
Rule 424(b)(2)

Structured
Investments

JPMorgan Chase & Co.
$3,295,000
Buffered Return Enhanced NotesLinked to a Weighted Basket Consisting of the Dow Jones AIG Commodity IndexSM and the S&P GSCITMPrecious Metals Index Excess Return dueSeptember17,2012

General

The notes aredesigned for investors who seek an uncapped return of 1.30 times theappreciation of a weighted basket of two commodity indices at maturity.Investors should be willing to forgo interest payments and, if the Basketdeclines by more than 20%, be willing to lose up to 80% of their principal.

Senior unsecuredobligations of JPMorgan Chase & Co. maturingSeptember 17, 2012.

Minimum denominationsof $1,000 and integral multiples thereof.

The notes priced on March 12, 2008 and are expected tosettle on or about March 17, 2008.

Key Terms

Basket:

The notes are linked to a basket consisting of the Dow Jones AIGCommodity IndexSM (DJAIG Index) and the S&P GSCITM Precious Metals Index Excess Return (S&P GSCITM Precious Metals Index, Bloomberg symbol SPGCPMP) (each a Basket Component, and together, the Basket Components).

Component Weightings:

The DJAIG Index Weighting (AIG Commodity Weighting) is 75% and the S&P GSCITM Precious Metals Index Weighting (the Precious Metals Weighting) is 25% (each a Component Weighting, and collectively, the Component Weightings).

Upside Leverage Factor:

1.30

Payment at Maturity:

If the Ending Basket Level is greater than the Starting Basket Level, you will receive a cash payment that provides you with a return per $1,000 principal amount note equal to the Basket Return multiplied by the Upside Leverage Factor. Accordingly, if the Basket Return is positive, your payment per $1,000 principal amount note will be calculated as follows:

$1,000 + [$1,000 x (Basket Return x Upside Leverage Factor)]

Your principal is protected against up to a 20% decline in the Basket. If the Ending Basket Level declines from the Starting Basket Level by up to 20%, you will receive the principal amount of your notes at maturity.

If the Ending Basket Level declines from the Starting Basket Level by more than 20%, you will lose 1% of the principal amount of your notes for every 1% that the Basket declines beyond 20%. Under these circumstances, your final payment per $1,000 principal amount note will be calculated as follows:

$1,000 + [$1,000 x (Basket Return + 20%)]

If the Ending Basket Level declines from the Starting Basket Level by more than 20%, you could lose up to $800 per $1,000 principal amount note.

Buffer Amount:

20%, which results in a minimum payment of $200 per $1,000 principal amount note.

Basket Return:

Ending Basket Level Starting Basket Level
Starting Basket Level

Starting Basket Level:

Set equal to 100 on the pricing date, which was March 12, 2008.

Ending Basket Level:

The Basket Closing Level on the Observation Date.

Basket Closing Level:

The Basket Closing Level on any trading day will be calculated as follows:

100 x [1 + (AIG Commodity Return * AIG Commodity Weighting) + (Precious Metals Return * Precious Metals Weighting)]

Each of the AIG Commodity Return and Precious Metals Return reflects the performance of the respective Basket Component, expressed as a percentage, from its respective closing level on the pricing date to its respective closing level on such trading day. For additional information, see Description of Notes Payment at Maturity in the accompanying product supplement no. 60-II.

Observation Date:

September 12, 2012

Maturity Date:

September 17, 2012

CUSIP:

48123MWT5

Subject to postponement in the event of a market disruption event and as described under Description of Notes Payment at Maturity in the accompanying product supplement no. 60-II.

Investing in the Buffered Return Enhanced Notesinvolves a number of risks. See Risk Factors beginning on page PS-15 of theaccompanying product supplement no. 60-II and Selected Risk Considerationsbeginning on page PS-2 of this pricing supplement.

Neither the Securities and Exchange Commission nor anystate securities commission has approved or disapproved of the notes or passedupon the accuracy or the adequacy of this pricing supplement or theaccompanying prospectus supplements and prospectus. Any representation to thecontrary is a criminal offense.

Price to Public

Fees and Commissions (1)

Proceeds to Us

Per note

$1.000

$40.50

$959.50

Total

$3,295,000

$133,447.50

$3,161,552.50

(1)

J.P. Morgan Securities Inc., which we refer to as JPMSI, acting as agent for JPMorgan Chase & Co., will receive a commission of $40.50 per $1,000 principal amount note and will use a portion of that commission to allow concessions to other dealers of $25.00 per $1,000 principal amount note. See Underwriting beginning on page PS-122 of the accompanying product supplement no. 60-II.

The notes are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank.

JPMorgan

March 12, 2008

ADDITIONAL TERMS SPECIFIC TO THE NOTES

You should read this pricing supplement together withthe prospectus dated December 1, 2005, as supplemented by the prospectus supplement dated October 12, 2006relating to our Series E medium-term notes of which these notes are a part, andthe more detailed information contained in product supplement no. 60-II dated February 27, 2008.This pricing supplement, together with the documents listed below, containsthe terms of the notes, supplements the term sheet related hereto datedFebruary 27, 2008 and supersedes all other prior or contemporaneous oralstatements as well as any other written materials including preliminary orindicative pricing terms, correspondence, trade ideas, structures forimplementation, sample structures, fact sheets, brochures or other educationalmaterials of ours. You should carefully consider, among other things, thematters set forth in Risk Factors in the accompanying product supplement no.60-II, as the notes involve risks not associated with conventional debtsecurities. We urge you to consult your investment, legal, tax, accounting andother advisers before you invest in the notes.

Youmay access these documents on the SEC website at www.sec.govas follows (or if such address has changed, by reviewing our filings for therelevant date on the SEC website):

Product supplement no. 60-II dated February 27, 2008:
http://www.sec.gov/Archives/edgar/data/19617/000089109208001254/e30557_424b2.htm

Prospectus supplement dated October 12, 2006:
http://www.sec.gov/Archives/edgar/data/19617/000089109206003117/e25276_424b2.pdf

Prospectusdated December 1, 2005:
http://www.sec.gov/Archives/edgar/data/19617/000089109205002389/e22923_base.txt

Our Central Index Key, or CIK, on the SEC website is19617. As used in this pricing supplement, the Company, we, us or ourrefers to JPMorgan Chase & Co.

Selected Purchase Considerations

UNCAPPED APPRECIATION POTENTIAL The notes provide theopportunity to enhance returns by multiplying a positive Basket Return by theUpside Leverage Factor of 1.30. The notes are not subject to a predeterminedmaximum gain and, accordingly, any return at maturity will be determined by theappreciation of the Basket. Because the notes are our senior unsecuredobligations, payment of any amount at maturity is subject to our ability to payour obligations as they become due.

LIMITED PROTECTION AGAINST LOSS Payment at maturity of theprincipal amount of your notes is protected against a decline in the EndingBasket Level, as compared to the Starting Basket Level, of up to 20%. If theEnding Basket Level declines by more than 20%, for every 1% decline beyond 20%,you will lose an amount equal to 1% of the principal amount of your notes.Accordingly, at maturity you will receive a payment equal to at least $200 foreach $1,000 principal amount note.

DIVERSIFICATION AMONG THE BASKETCOMPONENTS Becausethe DJAIG Index makes up 75% of the Basket, we expect that generally the marketvalue of your notes and your payment at maturity will depend significantly onthe performance of the DJAIG Index.
The return on the notes is linked toa basket consisting of the Dow Jones AIG Commodity IndexSM andthe S&PGSCI Precious Metals Index. The Dow Jones AIG Commodity IndexSM, which we referto as the DJAIG Index, is composed of exchange-traded futures contracts onphysical commodities and is designed to be a highly liquid and diversifiedbenchmark for commodities as an asset class. Its component weightings aredetermined primarily based on liquidity data, which is the relative amount oftrading activity of a particular commodity. S&P GSCI Precious Metals Index ExcessReturn, which we refer to as the S&P GSCI Precious MetalsIndex,is a sub-index of the S&P GSCI,a composite index of commodity sector returns, calculated, maintainedand published daily by Standard & Poors, a division of The McGraw-HillCompanies (S&P).The S&P GSCI is a world production-weighted index that is designed toreflect the relative significance of principal non-financial commodities (i.e.,physical commodities) in the world economy. The S&P GSCI represents thereturn of a portfolio of the futures contracts for the underlying commodities.The S&P GSCI Precious Metals Index Excess Return represents the preciousmetals commodity components of the S&P GSCI, including Gold and Silver. For additional information about theBasket and each Basket Component, please see The Dow Jones AIGCommodity IndexSM and The GSCI Indices in theaccompanying product supplement no. 60-II.

CAPITAL GAINS TAX TREATMENT You should review carefully thesection entitled Certain U.S. Federal Income Tax Consequences in theaccompanying product supplement no. 60-II. Subject to the limitations describedtherein, and based on certain factual representations received from us, in theopinion of Sidley Austin LLP, itis reasonable to treat your purchase and ownership of the notes as anopen transaction for U.S. federal income tax purposes. Assuming this characterization isrespected, your gain or loss on the notes should be treated as long-termcapital gain or loss if you hold the notes for more than a year, whether or notyou are an initial purchaser of notes at the issue price. However, theInternal Revenue Service (the IRS) ora court may not respect this characterization or treatment of the notes, inwhich case the timing and character of any income or loss on the notes could besignificantly and adversely affected. In addition, the notes could be treatedas contingent payment debt instruments, as discussed in the section entitledCertain U.S. Federal Income Tax Consequences in the accompanying productsupplement no. 60-II. Moreover, on December 7, 2007, the Treasury Department and the IRS released anotice requesting comments on a number of possible U.S. federal income tax treatments for prepaid forwardcontracts and similar instruments. The notice focuses in particular onwhether to require holders of instruments such as the notes to accrue incomeover the term of their investment. It also asks for comments on a number ofrelated topics, including the character of income or loss with respect to theseinvestments; the degree, if any, to which any income (including any mandatedaccruals) recognized by Non-U.S. Holders should be subject to withholding tax;and whether these investments are or should be treated as constructiveownership transactions. While the notice requests comments on appropriatetransition rules and effective dates, any Treasury regulations or otherguidance issued after consideration of these issues could materially andadversely affect the tax consequences of ownership and disposition of thenotes, possibly on a retroactive basis. You should consult your tax adviserregarding the tax treatment of the notes, including possible alternativecharacterizations in general and the possible impact of the notice describedabove in particular.

JPMorgan Structured Investments
Buffered Return Enhanced Notes Linked to a Weighted Basket Consisting of the Dow Jones AIGCommodity IndexSM and the S&P GSCITM Precious Metals Index Excess Return due September 17, 2012

PS-1

Selected Risk Considerations

An investment in the notes involves significant risks. Investing in the notes is not equivalent to investingdirectly in the Basket, the Basket Components or the exchange-traded futurescontracts included in the Basket Components. These risks are explainedin more detail in the Risk Factors section of the accompanying productsupplement no. 60-II dated February 27, 2008.

YOUR INVESTMENT IN THE NOTES MAY RESULT IN A LOSS The notes do not guaranteeany return of principal in excess of $200 per $1,000 principal amount note.The return on the notes at maturity is linked to the performance of the Basketand will depend on whether, and the extent to which, the Basket Return ispositive or negative. Your investment will be exposed to any decline in theEnding Basket Level, as compared to the Starting Basket Level, beyond the 20%buffer. Accordingly, you could lose up to $800 for each $1,000 principalamount note that you invest in.

CHANGES IN THE VALUE OF THE BASKETCOMPONENTS MAY OFFSET EACH OTHER Price movements in the Basket Components may not correlate with each other. Ata time when the value of one of the Basket Components increases, the value ofthe other Basket Component may not increase as much or may even decline invalue. Therefore, in calculating the Ending Basket Level, increases in thevalue of one of the Basket Components may be moderated, or more than offset, bylesser increases or declines in the level of the other Basket Component,particularly if the Basket Component that appreciates is of relatively lowweight in the Basket. There can be no assurance that the Ending Basket Levelwill be greater than the Starting Basket Level. If the Basket Return isnegative or zero, you could lose up to $800 for each $1,000 principal amountnote that you invest in.

INVESTMENTS RELATED TO THE VALUE OFTHE BASKET COMPONENTS MAY BE MORE VOLATILE THAN TRADITIONAL SECURITIESINVESTMENTS The value of each Basket Component issubject to variables that may be less significant to the values of traditionalsecurities such as stocks and bonds, and where the return on the securities isnot related to commodities or commodities futures contracts. Variables such aschanges in supply and demand relationships, governmental programs and policies,national and international political and economic events, changes in interestand exchange rates, trading activities in commodities and related contracts,weather, trade, fiscal, monetary and exchange control policies may have alarger impact on commodity prices and commodity-linked indices than ontraditional securities. These additional variables may create additionalinvestment risks that cause the value of the notes to be more volatile than thevalues of traditional securities and may cause the levels of the BasketComponents to move in unpredictable and unanticipated directions and atunpredictable or unanticipated rates.

NO INTEREST INTHE COMMODITIESUPON WHICH THE FUTURES CONTRACTS THAT COMPOSE THE BASKET COMPONENTS ARE BASEDOR CERTAIN OTHER COMMODITY-RELATED CONTRACTS As a holder of the notes, you will not receive anyinterest payments, and you will not have any rights that owners of thecommodities upon which the futures contracts that compose the Basket Componentsare based. The return on your notes will not reflect the return you wouldrealize if you actually purchased the commodities upon which the futurescontracts that compose the Basket Components are based, or exchange-traded orover-the-counter instruments based on any of the Basket Components.

HIGHER FUTURE PRICES OF COMMODITIESINCLUDED IN THE BASKET COMPONENTS RELATIVE TO THEIR CURRENT PRICES MAY LEAD TOA DECREASE IN THE PAYMENT AT MATURITY OF THE NOTES As the contracts that underlie theBasket Components come to expiration, they are replaced by contracts that havea later expiration. For example, a contract purchased and held in August mayspecify an October expiration. As time passes, the contract expiring inOctober is replaced by a contract for delivery in November. This isaccomplished by selling the October contract and purchasing the Novembercontract. This process is referred to as rolling. Excluding otherconsiderations, if the market for these contracts is in backwardation, wherethe prices are lower in the distant deliverymonths than in the nearer delivery months, the sale of the October contractwould take place at a price that is higher than the price of the Novembercontract, thereby creating a roll yield. While many of the contractsincluded in the Basket Components have historically exhibited consistentperiods of backwardation, backwardation will most likely not exist at alltimes. Moreover, some of the commodities reflected in the Basket Componentshave historically exhibited contango markets rather than backwardation.Contango markets are those in which prices are higher in more distant deliverymonths than in nearer delivery months. Commodities may also fluctuate betweenbackwardation and contango markets. The absence of backwardation in thecommodity markets could result in negative roll yields, which could adverselyaffect the value of the Basket and, accordingly, the payment at maturity of theNotes.

CHANGES IN THE COMPOSITION ANDVALUATION OF THE BASKET COMPONENTS MAY ADVERSELY AFFECT THE PAYMENT AT MATURITYAND/OR THE MARKET VALUE OF THE NOTES The composition of the DJAIG Index, S&P GSCI and itssub-indices (including the S&P GSCI Precious Metals Index) may change over time, as additionalfutures contracts satisfy the eligibility criteria or futures contractscurrently included in the Basket Components fail to satisfy such criteria. Theweighting factors applied to each commodity included in the Basket Componentschange annually, based on changes in commodity production statistics. Inaddition, the index publishers may modify the methodology for determining thecomposition and weighting of the Basket Components and for calculating theirvalue in order to assure that the Basket Components represent a measure of theperformance over time of the markets for the underlying commodities. A numberof modifications to the methodology for determining the contracts to beincluded in the Basket Components, and for valuing Basket Components, have beenmade in the past several years and further modifications may be made in thefuture. Such changes could adversely affect the payment at maturity and/or themarket value of the Notes.

S&P GSCI PRECIOUSMETALS INDEX MAY BE MORE VOLATILE AND SUSCEPTIBLE TO PRICE FLUCTUATIONS OFCOMMODITIES THAN A BROADER COMMODITIES INDEX The S&P GSCI PreciousMetals Index may be more volatile and susceptible to price fluctuations than abroader commodities index, such as the S&P GSCI. In contrastto the S&P GSCI, which includes contracts on the principalphysical commodities that are actively traded, S&P GSCIPrecious Metals Index is comprised of contracts on only a portion of suchphysical commodities. As a result, price volatility in the contracts includedin the S&P GSCI will likely have a greater impact on S&PGSCI Precious Metals Index than it would on the broader S&PGSCI, and the S&P GSCI Precious

JPMorgan Structured Investments
Buffered Return Enhanced Notes Linked to a Weighted Basket Consisting of the Dow Jones AIGCommodity IndexSM and the S&P GSCITM Precious Metals Index Excess Return due September 17, 2012 PS-2

Metals Indexindividually will be more susceptible to fluctuations and declines in value ofthe physical commodities included in such Basket Component. In addition,because the S&P GSCI Precious Metals Index omits principalmarket sectors comprising the S&P GSCI, it may be lessrepresentative of the economy and commodity markets as a whole and mighttherefore not serve as a reliable benchmark for commodity market performancegenerally.

CERTAIN BUILT-IN COSTSARE LIKELY TO ADVERSELY AFFECT THE VALUE OF THE NOTES PRIOR TO MATURITY While the payment atmaturity described in this pricing supplement is based on the full principalamount of your notes, the original issue price of the notes includes theagents commission and the cost of hedging our obligations under the notesthrough one or more of our affiliates. As a result, and as a general matter,the price, if any, at which JPMSI will be willing to purchase notes from you insecondary market transactions, if at all, will likely be lower than theoriginal issue price and any sale prior to the maturity date could result in asubstantial loss to you. This secondary market price will also be affected bya number of factors aside from the agents commission and hedging costs,including those set forth under Many Economic and Market Factors Will Impactthe Value of the Notes below.
The notes are not designed to be short-term trading instruments. Accordingly,you should be able and willing to hold your notes to maturity.

LACK OF LIQUIDITY The notes will not be listed onany securities exchange. JPMSI intends to offer to purchase the notes in thesecondary market but is not required to do so. Even if there is a secondarymarket, it may not provide enough liquidity to allow you to trade or sell thenotes easily. Because other dealers are not likely to make a secondary marketfor the notes, the price at which you may be able to trade your notes is likelyto depend on the price, if any, at which JPMSI is willing to buy the notes.

POTENTIAL CONFLICTS We and our affiliates play avariety of roles in connection with the issuance of the notes, including actingas calculation agent and hedging our obligations under the notes. Inperforming these duties, the economic interests of the calculation agent andother affiliates of ours are potentially adverse to your interests as aninvestor in the notes.

MANY ECONOMIC AND MARKET FACTORS WILLIMPACT THE VALUE OF THE NOTES In addition to the level of the Basket on any day, thevalue of the notes will be affected by a number of economic and market factorsthat may either offset or magnify each other, including:

• the volatility, frequency andmagnitude of changes in the value of the Basket Components;

• supply and demand trends at any timefor the physical commodities upon which the futures contracts that composeeach of the Basket Components or the exchange traded futures contracts on suchcommodities;

• the market price of the physicalcommodities upon which the futures contracts that compose the Basket Componentsare based or the exchange traded futures contracts on such commodities;

• a variety of economic, financial,political and regulatory, geographical, meteorological or judicial events;

• interest and yield rates in themarket generally;

• the time remaining to the maturity ofthe notes; and

• our creditworthiness, includingactual or anticipated downgrades in our credit ratings.

WhatIs the Total Return on the Notes at Maturity Assuming a Range of Performance for the Basket?

The following table illustrates the hypothetical total return atmaturity on the notes. The total return as used in this pricing supplementis the number, expressed as a percentage, that results from comparing thepayment at maturity per $1,000 principal amount note to $1,000. Thehypothetical total returns set forth below reflect the Upside Leverage Factor of1.30. The hypothetical total returns set forth below are for illustrativepurposes only and may not be the actual total returns applicable to a purchaserof the notes. The numbers appearing in the following table and examples havebeen rounded for ease of analysis.

Ending
Basket Level

Basket Return

Total Return

170.00

70.000%

91.00%

160.00

60.000%

78.00%

150.00

50.000%

65.00%

140.00

40.000%

52.00%

130.00

30.000%

39.00%

120.00

20.000%

26.00%

110.00

10.000%

13.00%

105.00

5.000%

6.50%

100.00

0.00%

0.00%

95.00

-5.00%

0.00%

90.00

-10.00%

0.00%

80.00

-20.00%

0.00%

70.00

-30.00%

-10.00%

60.00

-40.00%

-20.00%

50.00

-50.00%

-30.00%

40.00

-60.00%

-40.00%

30.00

-70.00%

-50.00%

20.00

-80.00%

-60.00%

10.00

-90.00%

-70.00%

0.000

-100.00%

-80.00%

JPMorgan Structured Investments
Buffered Return Enhanced Notes Linked to a Weighted Basket Consisting of the Dow Jones AIGCommodity IndexSM and the S&P GSCITM Precious Metals Index Excess Return due September 17, 2012

PS-3

HypotheticalExamples of Amounts Payable at Maturity

Thefollowing examples illustrate how the total returns set forth in the table onthe previous page are calculated.

Example1: The level of the Basket increases from a Starting Basket Level of 100 to anEnding Basket Level of 105. Becausethe Ending Basket Level of 105 is greater than the Starting Basket Level of100, the investor receives a payment at maturity of $1,065.00 per $1,000principal amount note, calculated as follows:

$1,000 + [$1,000 x (5% x 1.30)] = $1,065.00

Example2: The level of the Basket decreases from a Starting Basket Level of 100 to anEnding Basket Level of 80. Becausethe Ending Basket Level of 80 is less than the Starting Basket Level of 100 bynot more than the Buffer Amount of 20%, the investor receives a payment atmaturity of $1,000 per $1,000 principal amount note.

Example3: The level of the Basket decreases from a Starting Basket Level of 100 to anEnding Basket Level of 70. Becausethe Ending Basket Level of 70 is less than the Starting Basket Level of 100 bymore than the Buffer Amount of 20%, the Basket Return is negative and theinvestor receives a payment at maturity of $900 per $1,000 principal amountnote, calculated as follows:

$1,000 + [$1,000 x (-30% + 20%)] = $900

Example4: The level of the Basket decreases from a Starting Basket Level of 100 to anEnding Basket Level of 0. BecausetheEnding Basket Level of 0 is less than the Starting Basket Level of 100 by morethan the Buffer Amount of 20%, the Basket Return is negative and the investorreceives a payment at maturity of $200 per $1,000 principal amount note, whichreflects the principal protection provided by the Buffer Amount of 20%,calculated as follows:

$1,000 + [$1,000 x (-100% + 20%)] = $200

HistoricalInformation

The following graphs show the historical weekly performance the Dow Jones AIG Commodity IndexSM and the S&P GSCI Precious Metals Index ExcessReturn from January 3, 2003through March 7, 2008.The closing levels of the Dow Jones AIG Commodity IndexSM and the S&P GSCIPrecious Metals Index Excess Return on March 12, 2008 were 217.876 and 153.989,respectively.

We obtained the variousBasket Component closing levels below from Bloomberg Financial Markets. Wemake no representation or warranty as to the accuracy or completeness ofinformation obtained from Bloomberg Financial Markets. The historical levelsof each Basket Component and of the Basket as a whole should not be taken as anindication of future performance, and no assurance can be given as to theclosing level of any Basket Component on any of the Ending Averaging Dates. Wecannot give you assurance that the performance of the Basket Components willresult in the return of any of your initial investment in excess of $200 per$1,000 principal amount note.

JPMorgan Structured Investments
Buffered Return Enhanced Notes Linked to a Weighted Basket Consisting of the Dow Jones AIGCommodity IndexSM and the S&P GSCITM Precious Metals Index Excess Return due September 17, 2012

PS-4

GRAPHIC2image003.gifGRAPHIC

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