EFTA00983532.pdf

From: Jeffrey Epstein <jeevacation@gmail.com> To: Richard Kahn Subject: Fwd: AYH rental analysis Date: Thu, 13 Feb 2014 15:23:34 +0000 Attachments: 20140212104554292.pdf; Lease_space_sq_kanalysis.xlsx Forwarded messa e From: Darren Indyke Date: Thu, Feb 13, 2014 at 3:29 PM Subject: Fwd: AYH rental analysis To: Jeffrey Epstein <jeevacation@grnail.com> Jeanne's rent analysis. The rent roll does not incorporate latest 3% escalations. Sent from my iPhone Begin forwarded message: From: "Jeanne Brennan" Date: February 12, 2014 at 9:58:18 AM EST To: "'Darren Ind kem Cc: "Cecile deJongh" Subject: AYH rental analysis AYH rental rate analysis From: Darren Indyke mailto: Sent: Tuesday, February 11, 2014 4:47 PM To: Jeanne Brennan Subject: Fwd: Proposal re AYH—use this one DARREN K. INDYKE DARREN K. INDYKE. PLLC Lexington Avenue, 4th Floor New York. New York 10022 EFTA00983532 Telephone: Telecopier: Mobile: email: ********************************************************************************************** The information contained in this communication is confidential, may be attorney-client privileged, and is intended only for the use of the addressee. It is the property of Darren K. Indyke, PLLC. Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail, and destroy this communication and all copies thereof, including all attachments. Copyright of Darren K. Indyke, PLLC - © 2014 Darren K. Indyke, PLLC —All rights reserved. Begin forwarded message: From: "Lande, Mark" < > Date: February 11, 2014 12:33:47 PM EST To: Cecile de Jongh < >, "Garrison, Frank" Cc: Darren Indyke < >, "Mukamal, Tom" > Subject: RE: Proposal re AYH--use this one Dear Cecile and Darren, Please find attached a draft settlement agreement for your review. This agreement is being sent in the nature of a settlement proposal and by agreement among the parties will be treated as such and not be admissible in any future proceeding. I am available to discuss at your convenience. EFTA00983533 Yours, Mark Lande General Counsel Island Global Yachting Ltd. ■ Fifth Avenue, 18th Floor New York, NY 10022 Tel: Email: From: Cede de Jongh [mailto: Sent: Tuesday, February 11, 2014 11:54 AM To: Garrison, Frank Cc: Darren Indyke; Lande, Mark Subject: Re: Proposal re AYH--use this one Thanks Frank. With warm regards, Cecile On Tuesday, February 11, 2014 11:29 AM, "Garrison, Frank" > wrote: Ok will have Mark Lande send directly to you and Darren as soon as ready Frank M. Garrison EFTA00983534 Island Capital Group LLC One American Center West End Ave Suite 1230 Nashville, TN 37203 From: Cecile de Jongh (maiIto Sent: Tuesday, February 11, 2014 10.16 AM To: Garrison, Frank Cc: Garrison, Frank; Darren Indyke Subject: Re: Proposal re AYH--use this one Hi Frank, Yes, please send to Darren Indyke who is above. With warm regards, Cecile Sent from my iPhone and misspellings courtesy of iPhone. On Feb 11, 2014, at 11:14 AM, "Garrison, Frank" < > wrote: Cecile. Do you want me to have him send directly to your counsel w/ a cc to you (or vice versa) to expedite? Frank Frank M. Garrison Island Capital Group LLC One American Center West End Ave Suite 1230 EFTA00983535 Nashville, TN 37203 From: Cecile de Jongh imailto Sent: Monday, February 10, 2014 4:57 PM To: Garrison, Frank Subject: Re: Proposal re AYH--use this one Hi Frank, I am just checking to see if you sent the agreement as yet. If so, I did not receive it. With warm regards, Cecile Sent from my iPhone and misspellings courtesy of iPhone. On Feb 10, 2014, at 2:09 PM, "Garrison, Frank" clIMMIMMM> wrote: We almost have it done now so we will send you one shortly Frank M. Garrison Island Capital Group LLC One American Center West End Ave Suite 1230 Nashville, TN 37203 From: Cecile de Jongh [maiIto. Sent: Monday, February 10, 2014 12:07 PM To: Garrison, Frank Subject: Re: Proposal re AYH--use this one EFTA00983536 Hi Frank, I just spoke Jeffrey and he said that our counsel will get a draft agreement done and send it to you. With warm regards, Cecile On Monday. February 10. 2014 9:07 AM. "Garrison. Frank' c li> wrote: Cecile, Thank you for the response. I appreciate the spirit in which the counter offer was made. In the interest of allowing Jeffrey and Andrew to put this behind them, I am confirming IGY's acceptance to what I believe your counter offer to be. As you can see I have changed the amount of cash payment to $292,655 as requested. Note that the payment would come from IGY not AYH (because if from AYH, Jeffrey would be effectively paying half of it which I do not believe you or he intends). For the sake of clarity, I have reiterated all of the terms of your revised proposal below: The following is intended to be in the nature of a settlement proposal and by agreement among the parties will be treated as such and not be admissible in any future proceeding. I) Office rent at AYH would be reduced by $6/foot from the currently stated amounts in the lease. 2) The management fee at AYH would be reduced by 33%, i.e., from 7.5% to 5% effective the first day of the calendar month following execution of a formal agreement. 3) IGY would make a cash payment of $292,655 to Jeffrey Epstein within 10 business days of agreement (NB: This amount is the precise amount of a contemplated interest "adjustment" that has been previously discussed.) 4) Fuel for vessels currently owned by JE and affiliates would be allowed to purchase fuel at AYH at a 20% discount to published price. Charges for fuel purchases would be due by the end of the third business day following date of purchase. 5) The arrangement for the provision of 75 linear feet of dock space would remain in place unchanged 6) Jeffrey Epstein would receive a 10% slip rental discount on all other existing boats/slips. This discount is currently not memorialized anywhere and new slip agreement would be executed to memorialize. 7) The parties would execute mutual releases as part of a formal agreement EFTA00983537 I will instruct IGY's general counsel to prepare documentation so we can bring this to conclusion expeditiously. My goal is to have an agreement ready for execution so that we can conclude no later than Feb 28. Frank Frank M. Garrison Island Capital Group LLC One American Center West End Ave Suite 1230 Nashville, TN 37203 From: Cecile de Jongh [mailto: I Sent: Saturday, February 08, 2014 9:35 AM To: Garrison, Frank Cc: Cecile de Jongh Subject: Re: Proposal re AYH—use this one Good morning Frank, Please see the below counter proposal that Jeffrey wanted me to send to you. He is asking that AYH make a cash payment of $292,655 (as opposed to the $165,473 offered) based on the following reasons: a. The $165,473 payment offered does not include accrued interest from the period of May 29, 2007 through February 4, 2014. • Interest for this period amounts to $135,809 at 9% statutory rate under New York's Civil Practice Laws and Rules b. AYH made no reconciliation for the approximately $308,000 of rents written off that had management fees paid on it. EFTA00983538  • $308,000 x 7.5% = $23,100 c. Management fees from 7.5% to 5.0% included no payback of 2.5% fees from inception to date. • $3,818,253 (2007-2013) x 2.5% = $95,456 The above three items add an additional $254,365. If we split this amount, to be fair, then Jeffrey should be paid a lump sum of $292,655 (original amount $165,473 + $127,182 = $292,655). Please let me know your thoughts. With warm regards, Cecile On Thursday, January 30, 2014 5:38 PM, "Garrison, Frank" < wrote: Cecile, I corrected a typo in the version I sent a few minutes ago; just made item 2 , two separate items. We have revisited the facts and circumstances surrounding Jeffrey Epstein's investment in AYH and had several discussions . The following is intended to be in the nature of a settlement proposal and by agreement among the parties will be treated as such and not be admissible in any future proceeding. I) Office rent at AYH would be reduced by $6/foot from the currently stated amounts in the lease. 2) The management fee at AYH would be reduced by 33%, i.e., from 7.5% to 5% effective the first day of the calendar month following execution of a formal agreement. 3) IGY would make a cash payment of $165,473 to Jeffrey Epstein within 10 business days of agreement (NB: This amount is the precise amount of a contemplated interest "adjustment" that has been previously discussed.) 4) Fuel for vessels currently owned by JE and affiliates would be allowed to purchase fuel at AYH at a 20% discount to published price. Charges for fuel purchases would be due by the end of the third EFTA00983539  business day following date of purchase. 5) The arrangement for the provision of 75 linear feet of dock space would remain in place unchanged 6) Jeffrey Epstein would receive a 10% slip rental discount on all other existing boats/slips. This discount is currently not memorialized anywhere and new slip agreement would be executed to memorialize. 7) The parties would execute mutual releases as part of a formal agreement You will remember that in the past we have recommended mediation in an effort to move things along and even proposed a specific construct and some specific mediators. If Jeffrey is unwilling to accept the foregoing for whatever reason, we again request that you and he consider mediation in an effort to advance the process. Thank you in advance for your consideration. The foregoing is not intended to be a binding offer but rather an outline of terms that we believe could be incorporated into an agreement or agreements which would become binding when executed and delivered by all parties. Frank Frank M. Garrison Island Capital Group LLC One American Center West End Ave Suite 1230 Nashville, TN 37203 This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard EFTA00983540 copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. EFTA00983541  This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and EFTA00983542 destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA00983543