December 2009
 

Pricing Sheet dated December 23, 2009 relating to

Preliminary Terms No. 16 dated November 30, 2009

Registration Statement No. 333-155535

Filed pursuant to Rule 433

PRICING TERMS — DECEMBER 23, 2009

Issuer:

JPMorgan Chase & Co.

Maturity date:

January 31, 2011, subject to adjustment for certain market disruption events and as described under “Description of Bear Market PLUS — Payment at Maturity” in the accompanying product supplement no. MS-6-A-I.

Underlying index:

S&P 500^® Index

Aggregate principal amount:

$1,958,000

Payment at maturity:

• If the final index value is less than the initial index value, for each $10 principal amount Bear Market PLUS,

$10 + enhanced downside payment

In no event will the payment at maturity exceed the maximum payment at maturity.

• If the final index value is greater than or equal to the initial index value, for each $10 principal amount Bear Market PLUS,

$10 – upside reduction amount

In no event will the payment at maturity be less than the minimum payment at maturity.

Enhanced downside payment:

$10 x leverage factor x index percent decrease

Upside reduction amount:

$10 x index percent increase

Index percent decrease:

(initial index value – final index value) / initial index value

Index percent increase:

(final index value – initial index value) / initial index value

Initial index value:

1,120.59, which is the index closing value on the pricing date

Final index value:

The index closing value on the valuation date

Valuation date:

January 26, 2011, subject to adjustment for certain market disruption events and as described under “Description of Bear Market PLUS — Payment at Maturity” in the accompanying product supplement no. MS-6-A-I.

Leverage factor:

300%

Maximum payment at maturity:

$11.575 per Bear Market PLUS (115.75% of the stated principal amount)

Minimum payment at maturity:

$2.00 per Bear Market PLUS (20% of the stated principal amount)

Stated principal amount:

$10 per Bear Market PLUS

Issue price:

$10 per Bear Market PLUS (see “Commissions and Issue Price” below)

Pricing date:

December 23, 2009

Original issue date:

December 29, 2009 (3 business days after the pricing date)

CUSIP / ISIN:

46634E833 / US46634E8333

Listing:

The Bear Market PLUS will not be listed on any securities exchange.

Agent:

J.P. Morgan Securities Inc. (“JPMSI”)

Commissions and Issue Price:

Price to Public⁽¹⁾⁽²⁾

Fees and Commissions⁽³⁾

Proceeds to Issuer

Per Bear Market PLUS

$10.00

$0.20

$9.80

Total

$1,958,000.00

$39,160.00

$1,918,840.00

The actual price to public and commissions for a particular investor may be reduced for volume purchase discounts depending on the aggregate amount of Bear Market PLUS purchased by that investor. The lowest price payable by an investor is $9.925 per Bear Market PLUS. Please see “Syndicate Information” on page 5 of the accompanying preliminary terms for further details.