From: David Stern Sent: Monday, November 17, 2014 5:30 PM To: Jeffrey Epstein Subject: AG CHINA DRAFT Draft to General Counsel of Informa. Total loan from Informa US$16m plus =0% compounded interest p.a. Dear Rupert, I urgently need your feedback please. I informed you on 13 October that the we are out of funds and described =hat I want to proceed in a fully transparent and mutual process with =nforma. I am obliged as Director to take steps of closing based on the current =isastrous situation and at the same time I can not be in breach of the =greements between the Company and Informa which requires Informa =onsent for a wind-down of any business. As this is a matter of highest urgency I summarise the current =ituation. This is my view only and based on legal advice I received. 1. In absence of the ability to fund this November and beyond, and in =bsence of Informa responding to the request for solvent liquidation, =he Directors will trigger an insolvency in Hong Kong for CM0S HK. This =ould be a waste, especially since there are no meaningful assets to be =ecovered (you have received the relevant information). In addition, I =uggested that Informa can buy the business for US$ 1 if preferred in =rder to handle the solvent liquidation yourself to ensure the fact that =here are no assets of meaningful value. The HK insolvency means the HK liquidator will deal with the Chinese =usiness liquidation which is very tedious and not straightforward. Most =ikely bankruptcy will not be be permitted by the PRC court (see =ttached legal memo from a leading Chinese law firm addressed to me). 2. Solvent liquidation in HK is an option once Informa agrees to waive =he loan. In this case a HK law firm will be appointed by the Company to =roceed with the liquidation of the business, once the PRC business went =hrough a voluntary liquidation process. This is a preferred, cleaner =nd better process while also not straight forward due to costs and =rocess in