<table><tr><th>From:</th><th>jeffrey E. &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Monday, May 23, 2016 11:32 AM</td></tr><tr><td>To:</td><td>Richard Kahn</td></tr><tr><td>Subject:</td><td>Fwd: Investment Structures</td></tr></table>

Forwarded messag=

From: Shahzad Shahbaz

Date: Sun, May 22, 2016 at 7:09 AM

Subject: RE:=Investment Structures

To: "jeffrey E." <jeevacation@gmail.com <mailto:=Tevacation@gmailcom»

As requested;

* =C2* List of Fixed Income Names

#
Bucke=
Refer=nce Entity
Type
Weight
5y CDS Spread
Moody’s</=> S&P
Fitch

1
Sovereign
Portuguese Republic
Senior

<table><tr><th>5.00%</th></tr><tr><td>275</td></tr><tr><td>Bal</td></tr><tr><td>BB+</td></tr><tr><td>BB+</td></tr><tr><td>2</td></tr><tr><td>Federation of Malaysia&lt;=&gt;</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>146</td></tr><tr><td>A3</td></tr><tr><td>A-</td></tr><tr><td>A-</td></tr><tr><td>3</td></tr><tr><td>Autos</td></tr><tr><td>General Motors Co</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>210</td></tr><tr><td>BBB-</td></tr><tr><td>BBB-</td></tr><tr><td>4</td></tr><tr><td>Volkswagen AG</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>162</td></tr></table>

A3
BBB+
BBB+
5
Commodity Producer
Petroleos Mexicanos
Senior
5.00%
350
Baa3
BBB+
BBB+
6
Rio Tinto Ltd
Senior
5.00%
175
Baa1
A-
A-
7
BHP Billiton Ltd
Senior
5.00%
158
A3

<table><tr><th>A</th></tr><tr><td>A+</td></tr><tr><td>8</td></tr><tr><td>ConocoPhillips</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>170</td></tr><tr><td>Baa2</td></tr><tr><td>A</td></tr><tr><td>A-</td></tr><tr><td>9</td></tr><tr><td>Repsol SA</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>265</td></tr><tr><td>Baa2</td></tr><tr><td>BBB-</td></tr><tr><td>BBB</td></tr><tr><td>10</td></tr><tr><td>Consumer Staples</td></tr><tr><td>Tesco PLC</td></tr><tr><td>Senior</td></tr><tr><td>5.00%</td></tr><tr><td>265</td></tr><tr><td>BB+</td></tr><tr><td>BB+</td></tr></table>

4

11

EU Financials

(sub)

Banco Bilbao Vizcaya Argentaria SA

Subordinated

5.00%

265

Baa3

BBB+

12

Banco Santander SA</=>

Subordinated

5.00%

265

Baa2

BBB+

13

Standard Chartered Ban=

Subordinated

5.00%

275

A3

A

14

Assicurazioni Generali SpA

Subordinated

5.00%
240
Baa3
BBB+
15
Societe Generale SA<=u>
Subordinated
5.00%
185
Baa3
A-
16
Royal Bank of Scotland=Plc
Subordinated
5.00%
255
Ba2
BBB
17
BNP Paribas SA
Subordinated
5.00%
160
Baa2
A
18

Credit Suisse Group AG

Subordinated

5.00%

178

Baa3

A-

19

Barclays Bank Plc

Subordinated

5.00%

250

Baa3

A-

20

HSBC Bank Plc

Subordinated

5.00%

200

A2

A+

* Deutsche is good on fixed income. BNP on equiti=s

* Still waiting for the proposal on the first Ios= idea. My gut feeling is that they will take most of the return away. Will=let you know.

* We have made some selected direct investments i= the new economy names; tech, bio etc. Not really investing in tech funds.=u>

To: Shahzad Shahbaz <

in your fixed income basket, which stocks did =ou choose. ? 2. which banks have you found , or person at ban= that you think provides the best execution and flexibility. . 3. =AO Sk Hamad said that one of the banks might take =he first two stock loss? 4 Do you currently invest in Tech = or tech funds? med tech, bio tech, cyber etc.?

On Sun, May 22, 2016 at 6:20 AM, Shahzad Shahbaz < > wrote:

Jeffrey,

Hope all is well.

Further to your meeting, HE Sheikh Ha=ad asked me to send you a summary of the 2 investment structures.

EQUITY PUT OPTIONS;<=b>

*=/span> *=A0 Put option on the worst performing stock in a basketaspan>

*=/span> *=A0 One year structure

*=/span> *=.40 Coupon guaranteed irrespective of performance of the =tocks in the basket.

*=/span> *=A0 Put option strike at 70% of reference/spotau>

*=/span> *=A0 Payoff if required in stock at 70% strike<A>

*=/span> *.A0 We identified 3 baskets based on stocks we are comfor=able to own in a downside scenario at a 30% discount.qp>

*=/span> *=A0 Basket 1; BHP Billiton, Bank of America, Shell, BNP P=ribas

*=/span> *.A0 Basket2; Credit Suisse, General Motors, BASF, General=Electric

*=/span> *=A0 Basket 3; Barclays, Adidas, Siemens, Santander=u>

*=/span> *=A0 The coupon on the above baskets ranges between 8.5 =E2 9.5% without any leverage.

*./span> *=A0 Obviously you can select any stock of your preference=in the basket. Stocks with higher volatility and less correlation will gen=rate a higher coupon for the basket.

FIXED INCOME;=/u>

	*=/span> 41=A0 We identified 20 investment grade names to place in a=portfolio

*=/span> *=A0 Given the uncertainty in the energy, commodity and ba=k sectors we selected some of these names to maximize returns

	*=/span> *=A0 5 year structure

	*./span> *.A0 Exposure through 5 year CDS

	*=/span> *=A0 Based on leverage we are able to generate double digi= returns.

*=/span> *=A0 The risk to the return is margin calls on the leverag= if the value of the portfolio declines due to spreads widening4u>

*./span> *=A0 Principal risk is based on default in any of the cred=ts in the portfolio which is limited to 5% per name.<=p>

I hope the above is useful. Please le= me know if you have any questions.

Best

Shahzad.

=/u>

please no=e

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