From:

Barrett, Paul S

Sent: Tuesday, July 17, 2012 7:55 PM
To: Jeffrey Epstein
Cc: Giuffrida, David J
Subject: Revised Portfolio

Hi Jeffrey</=>

=0D

Here is a revised portfolio sam=le that does not employ leverage. We added some gold exposure and increa=ed the oil weighting. Remember that the coupons on a structured note =OA will knock out if we hit the buffer level (continuous) or finish below =he buffer (at expiry).

Proposed =ortfolio

=

=/span>

=0D

=0D

&n=sp;

&n=sp;

=/o:p>

=0D

=0A

<=td> <=d width="78" nowrap="" valign="bottom" style="width:58.15pt;padd=ng:0in 5.4pt 0in 5.4pt;height:25.5pt">
Leveraged Weigh=

=o:p>

High Yield

=0D =0D


=o:p>


=span style="font-size:10.0pt;font-family:"Arial","sans-=erif";color:black">


<=td> 20.00%<=o:p>

=0D

<=pan style="font-size:10.0pt;font-family:"Arial","sans-s=rif";color:black">Yield

=0D

=0A =/td>

20.00%

<=td> &n=sp;

=0A =0A =0D

<=pan style="font-size:10.0pt;font-family:"Arial","sans-s=rif";color:black">


</=d>
Bank Preferreds/Lower Tier II Bonds

=0D <=o:p>



=0D Yield

=0ARBS 7.25% Pfds

<=td> =td width="78" nowrap="" valign="bottom" style="width:58.15pt;pad=ing:0in 5.4pt 0in 5.4pt;height:12.75pt">
4=2E00%

8.50%


=0AAlly B Pfds

=0D <=pan style="font-size:10.0pt;font-family:"Arial","sans-s=rif";color:black">Rabobank 8.40% Pfds

</=d> =td width="78" nowrap="" valign="bottom" style="width:58.15pt;pad=ing:0in 5.4pt 0in 5.4pt;height:12.75pt">
3.00%

7.85%


=0ABank of America 8.125% Pfd=0D

=0A 2.00%=/span>

6.60%

=0A

GE 7.125% Pfd


2.00%


=0A =0A

=0A </=>

Emerging Markets

=0D =0A

=/p> <=:p>


=span style="font-size:10.0pt;font-family:"Arial","sans-=erif";color:black">

10.00%

=OD Yield

PDVSA 5% 2015 (USD Denominated)=/span>

=0D            =0D 5.00%

=0D 11.75%

=o:p>

BRL Linked Market Plus Note (8% coupon / 25% At expiry Buffer)</=:p>

      5.00%

            =0A            =0A

=0A </>

Equity Linked Notes

</=d> &n=sp;

<=d width="87" nowrap="" valign="bottom" style="width:65.0pt;borde=-top:none;border-left:solid windowtext
1.0pt;border-bottom:none;border-r=ght:solid windowtext 1.0pt;background:#A5A5A5;padding:0in 5.4pt 0in
5=2E4pt;height:12.75pt">

22.50%=/p> Coupon

=0ASP500 Linked CBEN (10% Coupon = 10% cap / 23% buffer)

      12.50%

=0D

<=pan style="font-size:10.0pt;font-family:"Arial","sans-s=rif";color:black">10.00%

=0A      <=d width="87" nowrap="" valign="bottom" style="width:65.0pt;borde=:solid windowtext 1.0pt;border-
top:none;padding:0in 5.4pt 0in 5.4pt;=eight:12.75pt">

5.00%

4

=OA 10.00%

=OD

8.00%

=OA =OA

=OA </=>

Commodities

=0A=p class="MsoNormal">

<=0:p>

7.50%

=/td> =oupon

Oil (Brent) Linked CBEN Note (13% coup/20% at =xpiry buffer)

7.50=

13.00%

Gold Linked CBEN (5% coup/15% at e=piry buffer)

5.00%

<=:p>

=0A

=0A

=OA </=>

Alternatives

=0A=p class="MsoNormal">
<=o:p>

25.00%
=0A Estimate

DoubleLine Mortgage Fund
=0A =0A =0A
15.00%
14.00%
</td>
Blacksto=e GSO Rescue Lending Fund
10.00%
12.00%
<tr style="height:12.75pt">
=0D =0D
<span>
=0A
</span>
=0A10.08%</p>
Leveraged Gross Return
=0D
</td>
=0A<span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:black">

6

## =/p> Leverage

Borrow =sing a line of credit at a rate of

<=d width="78" nowrap="" valign="bottom" style="width:58.15pt;bord=r:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.=pt;height:12.75pt">

0%<=span>

<=span>

=td width="249" nowrap="" colspan="2" valign="bottom" style="widt=:186.9pt;border-top:none;border-left:solid windowtext 1.0pt;border-bot=om:solid windowtext 1.0pt;border-right:none;background:#B6DDE8;padding:0=n 5.4pt 0in 5.4pt;height:12.75pt">

Leveraged Net Return

=/td>

</=d>

</=d>

</=d>

10.08%

=0D

<=o:p>

<= class="MsoNormal">

<=pan style="font-size:10.5pt;font-family:Consolas;color:#1F497D">Paul B=rrett, CFA

Managing Directo=

Global Investment Opportunit=es Group

JPMorgan Private Ban=

320 Park Avenue, 14th Floor,=New York, NY 10022

212-622-27=0 (W) 212-310-0108 (F)

NMLS ID# 853441

## =/p> Leverage (cont.)

paul.s.barrett@jpmorgan.com <mailto:paul.s.barrett@jpmorgan.com>

=/div>

<=body>

This email is confidential and subje=t to important disclaimers and conditions including on offers for the purc=ase or sale of securities, accuracy and completeness of information, virus=s, confidentiality, legal privilege, and legal entity disclaimers, availab=e at http://www.jpmorgan.com/pages/disclosures/email. =/p