From: jeffrey epstein <[email protected]> Sent: Friday, February 10, 2012 8:32 PM To: Barrett, Paul S Subject: Re: SP500 Notes Talk to monday Sorry for all the typos .Sent from my iPhone .: > On Feb 10, 2012, at 4:00 PM, "Barrett, Paul 5" wrote: Hi Jeffrey We have 2 S&P500 notes. $5mm of a note expiring 20Jun12 with a buffer from 1256 down to 930. This pays the greater of the upside or a 0% coupon. $2mm of a note expiring 07Feb13 with a buffer from 1260 down to 945. This pays the greater of the upside or a 6.25% coupon. I think we should consider unwinding the $5MM structure, locking in the profits and resetting into a new note with either: A. 15 month market plus that pays the greater of 0% or the upside of the stock with a 75% (so protected from 1340 down 1005) buffer with daily barrier observations OR B. A dual directional note that has upside exposure between 1340 and 1535 and upside exposure from 1340 down to 1072 (so if the market is down 15% from here, you make 15%). If 1072 trades in the next 12 months you are long at 1340 and would be down 20%. C. Optimal entry note which gives you 2x leverage capped at 6.5% but your starting point is the lowest closing point of the S&P over the next 2 months. 15 months maturity. Paul EFTA_R1_00081034 EFTA01770142