<table><tr><th>From:</th><th>Jeffrey Epstein &lt;jeevacation@gmail.com&gt;</th></tr><tr><td>Sent:</td><td>Wednesday, February 13, 2013 5:48 PM</td></tr><tr><td>To:</td><td>Barrett, Paul S</td></tr><tr><td>Subject:</td><td>Re: An idea</td></tr></table>

ok

On Wed, Feb 13, 2013 at 12:41 PM, Bar=ett, Paul S <███████████████████████████████████
<mailto:████████████████████████████> > wrote:<=r>

Jeffrey

I do not think we have enough equity ri=k in the portfolio right now. While we feel very good about our mortgages =nd credit exposure, the upside in credit feels limited. Therefore I would like to selectively add some equity exposure with names =hat have underperformed the broader market yet maintain some buffers to pr=tect us on the downside.

We recently added Merck to our focus li=t. I think we should consider a Market Plus Note on MRK (Overweight with a=$52 price target)

- 18 month

- Greater of the upside or a 3% coup=n so long as we don't finish below 80% at expiry.</=>

- Would consider $1MM<=span>

Background:

Merck is the 2nd largest pha=maceutical company globally with a broad portfolio of market-leading medic=nes and vaccines. International revenues represent 62% of total, while the U.S. represents - 38%. Highest selling products include= Singulair (asthma/allergies) and Januvia (diabetes)<=p>

• Pullback presents opportunity i= a favored sector (the cheapest defensive sector)<=>

- MRK is down -14% over last 4 month= vs. PFE at up 7% and S&P at up 4%

— Delay in filing of odanacatib, MRK=92s phase III osteoporosis drug and investor concern about upcoming trial =ata have hurt sentiment. We believe this pullback is overdone and at current levels potential downside from upcoming trial info=mation appears limited.

• Upcoming pipeline data points e=pected in 2H13 and 2014 provide catalysts and higher EPS growth potential =han peers

— MRK has a solid pipeline beyond od=nacatib (suvorexant - insomnia, anacetrapib - cholesterol, PD-1 - oncology,=BACE - Alzheimers) as well as healthy core product portfolio (Januvia -diabetes and vaccines).

	- JPMS LLC expects strong EPS gro=th of - 8% through 2020

	• Valuation attractive both versus peers and historical averages; high dividend should support the stock

- MRK trades at 11.2x F13EPS vs. 12.=x five-yr avg, PFE at 12.0x and at a 20% discount to larger cap pharma pee=s, despite higher growth potential

	— 4.2% div yield, which we view as s=stainable given 7.8% FCF yld

White line = buffer

=span style="font-size:8.0pt;font-family:"Verdana","sans-
s=rif";color:#5f5f5f"> <empty> = <empty>

=span style="font-size:8.0pt;font-family:"Verdana","sans-s=rif";color:#5f5f5f">Paul Barrett=| Managing Director
| Global Investment Opportunities Group | J.P. Morgan Private =ank |

320 Park Avenue, 14th Floor, New York, NY=10022 I T: (212) 622-2770 <tel:%28212%29%20622-2770> I F: (212) 310-0108 <tel:%28212%29%20310-0108> I paul.s.barrett@jpmorgan.com <mailto:paul.s.barrett@jpmorgan.com> I NMLS ID# 853441

This email is confidential and subject to important disclaimers and conditi=ns including on offers for the purchase or sale of securities, accuracy an= completeness of information, viruses, confidentiality, legal privilege, a=d legal entity disclaimers, available at http://www.jpmorgan.com/pages/=isclosures/email <http://www.jpmorgan.cogpages/disclosures/email> .

**********=***

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The information containe= in this communication is confidential, may be attorney-client privileg=d, may constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, =nd destroy this communication and all copies thereof, including all attachm=nts. copyright -all rights reserved