EFTA00236193.pdf

Message From: Casriel, Lyle Sent: 7/10/2014 9:08:41 PM To: G Maxwell CC: Garcia, Camille I; Klein, Matthew I; Ramdeen, Vijai I; Shkreli, Juliana I 1; Stackman, Scott I Waldron, Chelsey Devon Subject: MAXWELL: Revised Proposal Ghislaine, Based on our discussion and your need to raise some cash these are the names we would recommend selling, as well as our rationale. 1. Conocophillips: Did well in a strong oil price environment but only growing at 3-4% per year vs. peers in the MN space growing at 8%. They have a FCF deficit so if we get a pull back on oil they will have issues and thus pull back on capex spending because they are so focused on dividend as large shareholder base depends on it. Take profits now, high conviction sell. 2. Verizon — Has done relatively well recently on a total return basis (YTD), but there is a secular shift in the wireless business and margins are coming down and the stock isn't that cheap. Take profits, high conviction sell. 3. Illinois Tool Works — Relatively expensive and while it's been a great growth story we think the growth story will be decelerating from here and the stock trades at a 3x higher multiple than usual. Less high conviction, but still a sell here. In order to not have any tax impact we would need to sell the majority of your positions that currently have a loss. They are below. Note BHP, Apache and Lukoil are the only names below that UBS still rates as a Buy/Overweight. That said, if oil prices are toppish here then both Apache and Lukoil (despite the Russian discount) may be challenged moving forward. Given the unrealized losses in them, it's driving our decision to help you raise as much cash as possible without significant tax consequence. 1. Twitter 2. Staples 3. Target 4. Geron 5. Apache 6. BNP 7. Kirin 8. HSBC 9. B0C HK 10. Tesco 11. BHP 12. Lukoil 13. Alstom Total Proceeds Raised from sales (approx.): $821K Total Gains from sales (approx.): $70K Total Losses from sales (approx): $71K Net loss: $1K (All of the above pricing subject to market variability) CONFIDENTIAL UBSTERRAMAR00000489 EFTA00236193  Thanks, Lyle & Scott UBS Financial Services, Inc., its affiliates and its employees do not proside tax or legal achice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or nritten to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with UPSFinancial Sertices, Inc. ofany of the matters addressed herein or for the purpose ofavoiding U.S. tax-related penalties. Attorneys in the Financial Services Attorney Network are independent and unaffiliated with UPS Financial Services Inc. This materially not intended or mitten to be used, and cannot be used or relied upon, by any taxpayer for the purpose of(i) avoiding penalties under the Internal Revenue Code, or (is) promoting, marketing or recommending to another party any transaction or tax-related matter(s). CONFIDENTIAL UBSTERRAMAR00000490 EFTA00236194