EFTA00597016

AO £40 Inav 1401 Strnmons .n •Cmi Actor, niteb Sttt es l totrirt (Court SOUTHERN UNITED STATES OF AMERICA, Plaintiff, V. JEFFREY EPSTEIN and IVAN FISHER, TO: Mr* inel Awns a Ovnimi IVAN FISHER 34 East 69th Street New York, NY 10021 DISTRICT OF NEW YORK SUMMONS IN A CIVIL ACTION CASE NUMBER: 0,1 YOU ARE HEREBY SUMMONED and required to file with the Clerk of this Court and serve upon PLAINTIFFS ATTORNEY in,.. sae addross) M. CHINTA GASTON Assistant United States Attorney 100 Church Street — 1943 New York, New York 10007 an answer to the complaint which is herewith served upon you, within 60 days after service of this summons upon you, exclusive of the day of service. If you fail to do so, judgment by default will be taken against you for the relief demanded in the complaint. PARKISON Ii0v.4103. CLERK DATE BY DEPUTY CLERK EFTA00597016 MARY JO WHITE United States Attorney By: M. CHINTA GASTON (MG - 8392) Assistant United States Attorney 100 Church Street -- 19th Floor New York, New York 10007 Tel./ (212) 385-6376 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK x UNITED STATES OF AMERICA, Plaintiff, - against - JEFFREY E. EPSTEIN AND IVAN FISHER, Defendants. COMPLAINT 96 Civ. 3307 (CC ) Plaintiff, the United States of America, by its attorney, Mary Jo White, United States Attorney for the Southern District of New York, for its complaint against defendants, alleges upon information and belief as follows: 1. Plaintiff, the United States of America on behalf of the Office of Foreign Missions of the Department of State ("OFM" or the "Government") is the custodian of the residence of the former Iranian Ambassador to the United Nations, which is located at 34 East 69th Street, New York, New York (the "Premises"). 2. Defendant Jeffrey E. Epstein ("Epstein") is a resident of the City of New York and party to a residential lease with OFM for the Premises. 3. Defendant Ivan Fisher ("Fisher") is a resident of the City of New York and is an unapproved subtenant currently residing at the Premises. EFTA00597017 4. This Court has jurisdiction by virtue of 28 U.S.C. § 1345 because the United States is a party. 5. Venue in this district is proper pursuant to 28 U.S.C. § 1391 because this is the district in which the defendants reside and because this is the district in which the claim arose. 6. Although the Premises belong to the Government of Iran, OFM functions as the custodian of this and other Iranian properties that have been frozen pursuant to the International Emergency Economic Powers Act ("IEEPA"), 50 U.S.C.App. S 1701(a), and applicable Executive Orders. OFM manages and leases the Premises pursuant to the terms of a license granted by the Office of Foreign Assets Control of the United States Department of Treasury under the authority of IEEPA. 7. As property of a foreign sovereign that the United States government has frozen, and now administers, in accordance with federal law, the Premises is not subject to the New York City Rent Law and Rehabilitation Law, the New York City Rent Stabilization Law, or any other state or city law or regulation. 8. On or about February 1, 1992, the OFM entered into a written lease with Epstein for use and occupancy of the Premises. A true copy of the Lease is attached as Exhibit A and is incorporated herein by reference. 9. The term of the Lease was from February 1, 1992 through January 31, 1994. 10. On or about August 28, 1992, Epstein and OFM entered into an amendment to the Lease, which, inter alia, extended the term of the Lease through January 31, 1997 (the 2 EFTA00597018 "Lease Amendment"). A true copy of the Lease Amendment is attached as Exhibit B and is incorporated herein by reference. The Lease Amendment was made retroactively effective to February 1, 1992. 11. The Lease requires that the Premises be occupied only by Epstein, along with his wife and children, if any, as their personal residence, and/or by Epstein's personal servants or employees. 12. The Lease also permits Epstein to have approved subtenants or assignees, but any sublet or assignment requires advance written permission from OFM. 13. Under the Lease Amendment, Epstein has a "right of first refusal" to lease the Premises again at the end of the lease term, at the then fair market rental of the Premises. 14. On or about February 1, 1992, defendant Epstein took possession of the Premises. 15. On or about January 3, 1996, Epstein vacated the Premises. Epstein did not advise OFM that he had vacated the Premises. 16. Epstein failed to make timely rent payments for February and March 1996. 11. By letter dated April 19, 1996, Epstein informed OFM, through his attorney, that he wished to sublet the Premises or assign the Lease to Ivan Fisher. 12. By letter dated April 26, 1996, the Government informed Epstein that it would not approve a sublease or assignment of the Premises to Fisher. 3 EFTA00597019 17. Despite the Government's refusal to approve Ivan • Fisher as a subtenant, Epstein entered into a sublease for the Premises with Ivan Fisher on or about May 7, 1996 (the "Sublease"). A true copy of the Sublease is attached as Exhibit C and is incorporated herein by reference. 13. On or about May 16, 1996, a Government employee visited the premises and found that Fisher was occupying and using the Premises as his home. 14. By letter dated June 3, 1996, sent to Epstein by certified mail-return receipt requested, the Government notified Epstein that he was in default of the Lease and Lease Amendment for not occupying the Premises personally and for permitting an unapproved subtenant to occupy the Premises (the "Notice of Default"). The Notice of Default granted Epstein thirty days to cure the default. True copies of the Notice of Default and the certified mail receipt are attached as Exhibit D and incorporated herein by reference. 18. On or about July 19, 1996, a Government employee visited the Premises and confirmed that Fisher continued to occupy the Premises. 19. By letter dated August 7, 1996, sent to Epstein by certified mail-return receipt requested, the Government informed Epstein that in light of his failure to correct the default and pursuant to the terms of the Lease, the Lease would be terminated as of August 23, 1996 (the "Termination Notice"). The Termination Notice directed Epstein to have the Premises vacated and to return the keys to the OFM by August 20, 1996. True 4 EFTA00597020 copies of the Termination Notice and the certified mail receipt are attached as Exhibit E and incorporated herein by reference. 20. As of October 30, 1996, Epstein has not relinquished the Premises to the Government and Fisher remained in residence at the Premises. WHEREFORE, the Government prays for a judgment against defendants Epstein and Fisher: (a) terminating the Lease and Lease Amendment; (b) awarding possession of the Premises to the Government; (c) for all unpaid use and occupancy, including use and occupancy accruing and unpaid after the date of this action; (d) for attorneys' fees and the other costs and liquidated damages specified in the lease; and (e) for such other relief as the Court deems just. Dated: New York, New York October 30, 1996 MARY JO WHITE United States Attorney for the Southern District of New York Attorney for the Plaintiff By: M. CHINTA GASTON (MC - 8392) Assistant United States Attorney 100 Church Street, 19th Floor New York, New York 10007 Telephone: (212) 385-6376 5 EFTA00597021 EXHIBIT A EFTA00597022 LEASE AGREEMENT Landlord and Tenant agree to lease the Premises at the rent and for the term stated as follows: Landlord: OFFICE OF FOREIGN MISSIONS DEPARTMENT STATE 2201 C Street, . Room 2236 Washington, Gas Tenant: Jeffrey E. Epstein Wexner investment Company 34 East 69th Sheet Now York, New York 10022 Premisos: 34 East 49th Street, Pew York, New York Lease Terrn: 3 Years; beginning Jettaerrttrt991- f - fife￾rccr.".3 Jill.. <7 1 through January 31, 1994 • USE The Premises will be occupied by: (1) Tenant, his/her spouse (If any), and his/her children Of any) as their personal residence: (II) Tenant's personal servants and employees: and/or (1il) approved subtenants or approved assignees and their respective families, and for no other purpose. RENT The rent payment for each month must be paid on the first day of that month at Landlord's (Richest at forth above. Rent received tater than the tenth business day of any month Mat be accompanied by a late fee amounting to 2% of the rent payable for such month. Such late too wilt bo deemed additional rent. In no event may any amount be subtracted from H. The first month's rent Is to be paid when Tenant signs this lease, If Tenant falls to pay ageddittonal font on time, Landlord shall have the same righ inst Tenant as If It were a !allure to pay rent, Rent payments shall be made as folioWs: 1&4. /toe cirm"encena..f rie.rt iri a. *Ind. Twelve thousand dollars ($13,000) per month shall be payable thereafter on the first of each month, during the first 2 years of the term of the lease. Commencing February 1, 1994, thirteen thousand dollars ($13,000) per month shall be paid on the first of each month for the bdance of the term of the lease agreement. EFTA00597023 -2- SECURITY At the time the tease Is signed the Tenant will give a security deposit to Landlord in the amount of $12,000. if Tenant fully compiles with all the terms of this lease, Landlord will return the security deposit to Tenant within fifteen (15) days after the term ends. Landlord shall place the security deposit in an Interest bearing account paying the prevailing rate. Tenant shall be entitled to the interest earned on such security deposit, less one (1%) pencentum of such interest which Landlord may retain for administrative costs. If Tenant does not fully comply with the terms of this lease, Landlord may, following the expiration of the applicable grace and cure periods oiler notice, use the security deposit to pay amounts owed by Tenant pursuant to this lease. if during the course of this lease, Landlord sells the Premises, Landlord will transfer the security deposit to the buyer and, In that event, Tenant will look to the buyer for the return of the security deposit. Tenant may not utilize the security deposit as rent and shall not apply same to the lost month's rent. UTILITIES AND SERVICE Tenant Mall pay for the following utilities and services when billed by the public utility or other third patty supplying some: gas, water, electric, fuel, telephone, gardening, exterminating and trash removaL The foregoing sentence is not intended to and does not create any third party beneficiaries or any rights In anyone not a party to this lease. maintained, An elevator maintenance service contract shall be continued and paid for by Landlord. The foregoing sentence Is not Intended to and does not create arty third party beneficiaries or any rights In anyone not a party to this lease. Tenant shall maintain The security alarm system. REPAIRS, ALTERATIONS at Subject to the provisions of this lease, Tenant shall keep, and equipment, the end of the fawn return the Premises and all appliances, Therein furniture, furnishings and other personal property clean and in good order and repair, but nothing contained herein or otherwise is intended to nor shall It: (I) create in landlord any ownership Interest in any of Tenant's Personally; or (II) cause Tenant to be responsible for repairing ;:- •• I. r."-if EFTA00597024 -3- or maintaining the structural elements or roof of the Premises or the elevator therein, all of which Landlord hereby agrees to maintain and repair. Tenant shall not be responsible (or ordinary wear and tear or damage by acts of God or other similar casualties or the element., tf Tenant falls to maintain the Premises as aforesaid, Landlord may, following the expiration of the applicable grace and cure periods after notice, make such repairs and charge Tenant the reasonable cost of same. Tenant may not after, change or add to the Premises without the advance permission of Landlord. Landlord shall have thirty calendar days tonowIng Tenant's written request for such permissions In which to notify Tenant of any disapproval Work which is not disapproved within that lime shall be deemed approved. All permits or tees which may be required In connection with on approved request shall be at tenant expense. All improvements done by a previous tenant Indicated on the attached list entitled 'Chandeliers, Sconces, Mirrors,' have become the sole property of Landlord and may not be disposed of without the Landlord's written consent. CARE OF PREMISES, GROUNDS Tenant shall keep the grounds around the Premises neat and clean. Vehicles may be driven or parked only in driveways or in the garage. FIRE, DAMAGE Tenant shall give Landlord immediate notice In case of fire or other damage to the Premises. Landlord WIN have the right to repair the damage within a reasonable period of time or tf the damage is so substantial that It cannot be repotted within a reasonable period of the, to cancel this lease. Tenant shall pay rent only to the date of the fire or damage. tf Landlord don not repair the Premises within three months of date of damage Tenant shall have the right to terminate the lease. LIABILITY Landlord shall not be liable for loss, expense or damage to any person or property caused by Tenant, Tenant's family, guests, Invitees, Independent contractors or employees. Tenant is responsible for all acts of tenant, Tenant's Family, employees, guests, Independent contractors and Invitees. Tenant shall not be responsible for damage caused by Landlord, his servants, employees, Independent contractors or Invitees. EFTA00597025 -4- ASSIGNMENT, SUBLET Tenant may sublet all or pal of the Premises, ar assign this lease or permit any other person to use the Premises with the advance written permission of Landlord. LANDLORD MAY EMIR, KEYS, SIGNS Except III cairn 01 life-threalentng or properly-threatening emergency, Landlord win give Tenant reasonable notice and will only enter the Premises at reasonable times, to examine, make repairs or alterations, or to *low the Premises to possible buyers, lenders or tenants. Tenant shall ghee fo Landlord keys to all locks. Locks may not be changed or attentions:3i locks Installed wtthout Landlord's advance consent, which consent shall not be unreasonably delayed or withheld. Doors shall be locked at all times they are not In use. Windows shall be locked when Tenant is out. CONDEMNAtION It all of the premises Is taken or condemned by o legal outhorIty, the term hereof, and Tenant's rights hereunder, shall end as of the date the authority takes title of the Premises. If a material part of the Premises Is taken, Landlord may cancel this lease on notice to Tenant setting forth a cancellation date not less than thirty (30) days from the date oft?* note*. it the Ina Is cancelled, Tenant shall deliver the Premises to Landlord on the cancellation date together with an rent due to that date. The award for any taking shall be apportioned between Landlord, who Is entitled to that portion derived from the state of the ?remits's on the date fhls lease is signed ( and any Improvements made by Landlord) and Tenant, who Is 'relied-to that portion derived from any Improvements made by Tenant. COMPLIANCE WITH AUTHORMES Tenant *all, at Tenant's cost, promptly comply with an orders, toles and directions of di governmental authorities, property owners' assoclatioru, Insurance carriers, Board of Fire Underwriters or shrike group which are property Issued to and directed to the particular uses Tenant Is making of the Insurance premiums, If any, but If Tenant causes Landlord's Insurance premiums to be Increased, Tenant shall compensate Landlord for such additional costs. EFTA00597026 4 - TENANTS DEFAULTS AND LANDLORD'S REMEDIES A. Landlord shall give: (I) ten (10) days mitten notice to Tenant to cure any (allure to pay rent or additional rent on time; and (II) thirty (30) days written notice to tenant to cure: (a) an unapproved assignment of this lease, unapproved subletting of all or part of the Premises or allowing another to use the Premises wtthout Landlord's approval; (b) unlawful conduct by Tenant or another occupant of the Premises; or (o) any other defcat under this lease, unless tarn* Is not susceptible to being cured within the tune period set forth herein, in which event Tenant shall be entitled to a cure period equal to the time period that Is necessary to cure the default provided Tenant is attempting diligently to effect such cure. E. If Tenant faits to correct a default within the applicable period sot forth above after nonce, Landlord may cancel this lease by giving tenant a written ten (ID) day notice stating the date the term will end. On that date the term hereof and tenant's rights in fits lease shag end and Tenantshall leave Premises and give Landlord the Keys: . 'Tenant shall Continue to be responsible for rent accrued prior to such termination as well as for all other obligations that accrued under this lease prior to such termination In respect of time periods prior thereof. C. If this lease Is cancelled, Landlord may, In addttlon to its other remedies hereunder, remove any person or property therefrom; or (b) use dispossess, eviction or other lawsuit method to take back the Premises. D. If the Lease Is terminated as result of Tenant's default hereunder beyond ail applicable grace and cute periods, Landlord may no-rent the Premises and anything in It for any term. Landlord may re-rent for a lower rent and give allowances to the new tenant. Tenant shall be responsible for Landlord's reasonable costs or re-renting. CORRECTING TENANTS DEFAULT If Tenant falls to correct a default hereunder after the expiration of Ito applicable grace and cur. period following notice, Landlord may correct It for Tenant at Tenant's expense. EFTA00597027 -6- CANCELLATION In the event that diplomatic ►elation are re-established between the United States Government and the Government of Iran Tenant shall be given one hundred eighty days (180) written notice during the nye year of the lease and ono hundred twenty days (120) thereafter prior to the rent due date to vacate the premises without damage to Landlord. Otherwise, except In the cases of an uncured default by Tenant or tmrepa1rable damage covered in the paragraphs entitled 'TENANTS DEFAULTS AND LANDLORD'S REMEDIES" Landlord will not terminate this lease. ILLEGALITY If any part of this lease Is not legal, the rest of the lease will be unaffected; provided, however, that Tenant shall have no obligation under the lease It Landlord don not provide Tenant with use and occupancy and quiet enjoyment of the promises. NO WAIVER Landlord's (allure to enforce any terms of this lease shall not prevent Landlord from enforcing such terms at a later time. QUIET ENJOYMENT Landlord agrees that If Tenant pays the rent and is not In default under this lease, Tenant may peaceably and quietly hove, hold and enjoy the premises for the term of this lease. SUCCESSORS Thit lease is binding on Landlord and will Inure to the benefit of all parties who lawfully succeed to the rights or take the place of Tenant. REPRESENTATIONS, CHANGES IN LEASE Tenant has read this tease. All promises made by Landlord are In this lease. There are no others. This lease may be changed only by an agreement In writing signed by and delivered to each party. PARAGRAPH HEADINGS The paragraph headings are for convenience only. EFTA00597028 _7_ EFFECTIVE DATE This lease Is effective when Landlord delivers lo Tenon? a copy signed by an partial. INSURANCE Tenant shall be responsible for obtaining or teeing that Tenant's contractors performing the approved renovation work have adequate Insurance. TENANTS RIGHTS IF LANDLORD SELLS Should Landlord decide to soil the Premises, Tenant shall have a 'right of first refusal' to purchase the Promises al a price commensurate with the current market value. AUTHORITY This lease Is being entered into pursuant to the Foreign Missions Act of 1982, 22 U.S.C. 4306 (d) In that it Is 'entered Info without regard to laws and regulations otherwise applicable to solicitation, administration, and performance of government contracts.' // id NA ML: Hory W. Porter III MI: Deputy Director Office of ore grit Missions DATE: 2., IESIANT NAME: 4.ff yT Epstein TITLE: Pre ant We nor investment Company DATE: EFTA00597029 EXHIBIT B EFTA00597030 alialIDANNT ASSINDXSOT WO. 1 to the Lease effective February 1, 1092 by and between office of Foreign Missions, Department of State, as Landlord, and Jeffrey E. Epstein, as Tenant. IMINIMIENE wERREAS, Landlord and Tenant are parties to a certain lease (the "Lease") effective as of February 1, 1993 for the use and occupancy of the ?retrainee known es 34 East 67th Street, New York, New York (the "Premises"); and wanness, Landlord and Tenant desire to modify the terms of the !saes as provided herein. 101, 7NICREP0RN, in consideration of the foregoing premises and the mutual covenants and agreements set forth herein, it is agreed as follows: 1. All capitalised terms used herein shall have the sane meaning as such terms ere given in the Lease, unless the context clearly requires otherwise. 2. Anything contained in the Lease to the contrary notwithstanding, the Lease term shall be the five (3) year period beginning on February 1, 1992 and ending on January 31, 1997; subject however, during the period commencing February 1, 11,92 and terminating January 31, 1995, to the Landlord's right to terminate the Leans term pursuant to the paragraph of the Leann entitled "cancellation" on page 6 of the Lease. EFTA00597031 3. During the period =flouncing upon February 1, 1995 and throughout the remainder of the term of the Lease, the paragraph of the Lease entitled "Cancellation" on page 6 of the Lease shall be asended to read as follows* In the event that custodial responsibility for the Premises is relinquished by the Department of State, thin Lease say be terminated upon one hundred twenty (120) days written notice prior to the rant due date to vacate the promisee without damage to Landlord. Otherwise, except in the cases of an uncured default by Tenant or unreparable damage covered in the paragraph entitled "TENANT'S DEFAULTSANDWO:LORD'S REMEDIES" Landlord will not terminate this Lease. 4. The rent payable under the Lease shall be as follovst Lease UAL Yonthlv Rent rebruary 1, 1992-January 31, 1994 $12,000.00 February 1, 1994-January 31, 1995 13,000.00 February 1, 1995-January 31, 1996 14,000.00 February 1, 1996-January 31, 1997 15,000.00 5. Upon the termination of the Lease Term, the Tenant shall have tha "right of first refusal" to release the Premises at the then fair market rental of the PrOM1S42. 6. Except as expressly amended hereunder, the Lease shall remain in full force and effect. BY: Nara: Harry W. Porter III (Type of Print) Title: Acting Director Dates August 28, 1992 015017CC EFTA00597032 EXHIBIT C EFTA00597033 UHL USE of the premises known as 34 EAST 69111 STREET by and between .TErTREY E. EP.STETN, as Overtenant anti iVAN FISHER, as Clothrtenant as or May 7, 1996 EFTA00597034 . • ' "1'A OLE OF -ONT E NTS SUCTION PAGE NUMBER 1. Lease Agreement. 1 2. Ovcrtenant's Duties. 3. Authority to Deal with Landlord. 2 4. Term. 2 5. Rent. 3 0. Sow. ity. 4 7. Agreements to Lefa,..: and to Pay Rent. 4 8. Successors and Assigns. 4 9. New Lease Agreement. 10. Improvements ✓w•ncd by Overtcnnnt. 6 11. Assignronnt. 12. Indemnification • 1,itigation. 7 11. Entire Agreement. 7 14. Notices. 7 15. Governing Law. 16. Waiver. 17. Scvcrabliity. 8 18. Headings. 9 19. Counterparts. 9 EFTA00597035 ABLE OF CONTENTS (Cont'd) Exhibit A Lease Agreement dated January 2, 1992 by and between Office of Foreign Missions, Department of State, as Landlord, and Jeffrey 11. Cpstcin, as Tenant (including Amendment thereof dated August 28, 1992). Schuiule A Schedule of Overtenant's Improvements. EFTA00597036 1311111,MASE AGREEMENT SUBLEASE AGREEMENT, effective as of May 7. 1996, by and between Beach, JEFFREY Fiorida E. EPSTIUN (the "Overtenant"), havins an address at 358 El Brillo Way, Palm East 69th Street, 33480, Ncw and IVAN FISHER (the "Undcrtcnant"), having an address at 34 York, Ncw York 10021. WITN'ESSETili WIIEREAS, the Overtenart is the tenant of those certain premises known as. and Ovenenant located at, 34 East 69th Street, New York, New York 10021 (the "Premises"), which United States leases from the Office or Foreign Missions of ate Department of State of the certain Lease of America (the "Landlord"), upon the terms and conditions set forth in a Ova• dated January 2, 1992 by and between the Landlord, as landlord, and the . 1992 -tenant, by and as between tenant, as amended pursuant to that certain Amendment dated August 28, the Landlord and the Overtcnant (the "Lease Amendment" together with such Lease, and, Lease Agreement the "Lease Agreement"), a true and correct copy of which is attached as Exhibit A to this Agreement; and WHEREAS, and the Overtenant desires to subict the Premises to the Undertcnant, and conditions the Undertenant hereinafter desires to sublet the Premises from the Overt ant, upon the terms net forth; NOW, THEREFORE, covenants herein in consideration of the foregoing premises and the mutual containtai, the parties hereto agree as Wows: I. Agreement firciatiellt. Except as otherwise provided herein, this which arc incorporated is subject in herein ail respect:: to the Lease Agreement, die terms and conditions of any other agreement by this reference as ir fully set forth herein, and subject to to which the Lease Agreement acknowledges is subject. The Undertenant of the provisions that he has read and initialed the Lease Agreement and will not violate any herein, as between therein a?plying to the Tenant thereunder. Except as otherwise provided Agreement applying the °vomit:nit and the Undertenant, (a) all provisions of the Lowe Undone:taut were to the °venetiant shall be binding upon the Undertenadi as if the Landlo•ci provided the original Tenant under the Agreement, and (b) ail rights of the Overtenan: were the in original the Lan Agreement shall be rights of the Overtenant as if the the original Tenant landlord in the Lease Agreement and tlx: Undertenant welc Agreement or the Lease in the Anna:client Lease Agreement. Anything to the contracy contained in fit notwithstanding, commits a non-munetary in the event that the Undertenant Agreement shall, at breach under this Agreement or ter:; Lease Agreement, this the optioa of the °vent:slant, be deigned to be terminated Undertenant fails to cure such breach within if the fourteen (14) days of notice thereof Oycrtenant. • • from the EFTA00597037 The °verb:rant represents will not violate any provision of that, after the execution of this Ago:timed', ho Agreement caused bj the Lease Agreement. except for any breach of the Lease the Undertenant. The Overtenant further represents all lent rtspiircd to he paid that he has paid to tho Landlord under the Lease. Agreement through er April 19% and that, promptly the month after he receives from the Undcrtenant each month's rent hereinafter from and after defined), the month he will pay or May 1990 through the end of the "Sub'oase Term" (as the corresponding Lease Agreement. rent payment to the Landlord under the Ail capitali..ed meanings ascribed terms used and not othcrwise defined herein shall have the provisions orthis Agreement to such terms in the Lease Agreement. The terms, conditions and terms, conditions aryl shall supersede the Lease Agreement to the extent dad such provisions directly contravene Notwithstanding those of the Lease Agreement. anything to the contrary provided in the foregoing, have no right of the Undertenant shall should decide first refusal to purchase the Premises in the event that the Landlord to sell same. 2. crepoteant's .flyties. The Larase Agreement describes Lanctnrd's duties. The Ovcrtenant the shall not be °blip; cti under this Agreement the Landlord's duLiz.. to perform under the Lease Agreement. duties under fr ilw Landlord Fails to perform its the Lease Agreement, %qv;h ramie, whereupon the Undertenant shall give the Overtcnant notice of the Overtcaant shall promptly give notice to the Landlord of such it failure ittried and deii; . ; ... tam the Landlord perform its duties under the Lease Agreement which Over to pexfoirn. The Overtenant shall send to the Undertenant a copy of each of the Ow:natant -a-nines SC.1(iN notices of default and demands to cure to the. Landlord. promptly after the the same 19 the landlord. In the event that the Overtenant notice of fails to give Overtenant such failure to the Landlord within a reasonable period of time after the receives notice of such failure from the Undertenant. then the Undcrtenant I II contact the LaiAord directly and demand the l.andlortrs compliance. that In the event respect it is necessary to initiate legal action to compel the Landlord's compliance with cost to :Is utilizations uncle' the Lease Agreement. such legal action shall be at the sole coo crate itnil rspen.ie with of the Uncle:ten:rat; provided, however, that the Overtenant will the Undenenant in all reasonable respects, including by consenting liciai; to coranameed flied as a, or On, sole, party thereto, in connection with any such legal action by the Undertenant. 3. anthfizilyjt Agreement, fkabAtiLl.a.ri.419.04. ExceN as provided in this make arrangements the Undertenant with, shall have no authority to contact, enter into agreements or Landlord. The Lladcrtenant complain or send notices to, or otherwise deal with, the the Landlord and shall pay shah not pay rent or other charges under this Agreement to all such rent and other charges directly to the Overtenant. hereof and shall 'rm. The tarn of this Agreement shall commence on the date the Overtenant as terminate hereinafter on January 3I, 1997, unless sooner terminated or canceled by provided or renewed or extended as hereinafter provided 2 EFTA00597038 (the "Sublease T. Jan"). As between the Overienant and the Undertenant, Cto Overtenant shall have the same rights to terminate and cancel this Agreement and to cure the Undertenant's defaults under this Agrecinent and/or the Lease Agreement as the Landlord has to terminiCe or caned the Lease Agreement and cure the defaults c; the Overtenant under the Lctse Agreement. In the event that the Overtenant breaches the Lease Agreement and fails to timely dire the same (as provnitx1 in the Lease Agreement), then the Undertcnant shah have the right to curt such breach in order to prevent the termination of the Lease Agreement. In the event that the Lindertenant cures such breach, he shall be ei•tittcd to recover all reasonable costs and expenses incurred by the Underumant in doing the same. ;a the event that the Landlord institutes legal proceedings to le t...aate the Lease Agreement un the grouncis that this Agreement was eniered into, and that the Tiede tenant has taken possession of Inc Premises, without the Landlord's approval, the Overtenant shall take all steps neeessacy to defend this Agreement and the t Meld-tenant's possession of the Pollutes hereunder as being in compliance with the Lease Agreement. In the event that, as a result of such proceedings, the Undertenant dispossessed of, or otherwise is involuntarily forced, pursuant to a valid warrant of eviction or other order similar in effect, to vacate, the realises, then this Agreement shall be terminated as of the date of such dispossession or eviction. In the event of such dispossession or eviction, the Undertenant shall not be liable to pay the Overtenant installments of Rent Mr any months subsequent to tie: date of such dispossession or eviction, but shall remain unpaid liable for all installments of Rent for periods prior to the date of such disirossession or evicticn. the event ofsuch a dispossession or an eviction, the Undertenant acknowledges Overtenant shall have no further that the liability otherwise. in connection with the. Premises, to the Undertenant, under this Agreement or Undertenant any portion of except that the Overtenant shall return to the the Security Deposit (as hereinafter defined) duc to the Undertenant in accordance with Section 6 hereof and refund a py9 nun portion of the Rent installment paid (or the month during which such dispossession or eviction based upon the number of days took place, remaining eviction. in such month after the date of dispossession or S. [tent. The IMdertcnant shall pay the Overtenant Undertenant's use and occupancy of rent for the the Premises during the Sublease Term any extensions or renewals of (excluding the Sublease Term) in the aggregate amount of One hundred Seventr-Seven Thousand Ninety-Six and Seventy-Seven Hundredths (5177,096.77) Dollars (di.: "Rent"). The Undertenant shall pay the Overtenatu the Rent in nine (9) monthly installments. Ths first such installment, Thousand Ninety-Six'and Seventy consisting of Seventeen -Seven Hundredths ($17,096.77) Dollars, shall be due from the Undertenant upon the execution of this Agreement. Each of the eight (8) successive installments thereafter shall be in the amount of Twenty Thousand Dollars and shall be due on each of ($20,000) the first (1st) day of June 1996 and the first (1st) day of each of the seven successive months thereafter. In the event that this Agreement is extended as provided additional rent as provided in Section 9 hereof, then the Undertentutt shall pay the Overtcnant in Section 9 hereof on the first (1st) day of each month during EFTA00597039 such e.'iendcd Prahises &jog term such of extended this Agreement (or the Undertenant's use and uccup; .y of the for each iastallmert of Rent turn. A late fee shall be assessed against the Undertcnunt Overtutant after the or additional rent, or portion thereof, which is received by the Albion:it rent is du.: tenth hereunder. (10th) day of the month in which -aril installment of Rent ort, installment of Rent or additional Such late fee shall be equal to two (2%) percent of the" 400 tenth (10th) day and will rent, or portion Illefoof, which was received after such be paid upon demand by the Overtenant. If the Undertenant to pay any sut.it fails the Overtenant shall laic fee promptly after the Overtenant makes de..und for the same, then have the same rights against the Undertenant as the Ovencnant would for such failure to pay have against the Undertenant failed in twca that the Undertenant to pay any installment of Rent or additional rent due under this Agreement. Undertenant of 6. his obligations Segiray. As security for the faithful and timely performance by the provisions of tinder, and compliance by the Undertenant with, the this Agreement and the Lease Agreement, Overtenant Twenty the Undertenant shall pay the Agreement Thousand ($20,000) Dollars concurrently with the execution of this the Security (the Deposit "Security Deposit"). The Overtenant shall hold and apply and/or return return in the same manner as the LandlonJ is required to hold, apply and/or the Overeaant's security deposit pursuant to the Lease Agreement. the Premises 7. AiweemeRtS lalicase atis.USLIN3LgettS. The Overtenant shall sublet Overtenant, upon to the Undertenant, and the Undertenant shall sublet the Premises from the The Undertenant the terms, malitions and other provisions set forth in this Agreement. other charges agrees io pay the Rent and additional rent under this Agreement and comply with evcry'provision required to he paid under this Agreement or the Lease Agreement and to hereunder required of this Agreement and the Lease Agreement with which he is to comply. 8. Sucespora and Assigns. This Agreement inure is binding upon, and shall legal to ;lie benefit of, the parties hereto. and the permitted successors, assigns, heirs, and representatives thereof. 9. b!pw Leam Aereeiesat. 31, 1997. (a) 'NA: Lease Term of the Lease Agreement axpires on January In the event that the Lease Agreement utters is renewed or extended or the Landlord the use into and a occupancy new lease of agreement with the Overtcnnnt or the Undertenant with respect to Agreunent tae Premises after the expiration of the Lease Term of the Lease (whether by passage of time, termination or cancellation), then: ;a) in the event that the Lease Agreement renewed and is extended or Lease Agee the rent required to be paid under the terms of the extended or renewed Agreement shall :tient automaiiudly is not in excess of Twerty Thousand ($20,000) Dollars per month, this be deemed to be extended or renewed Lem:-.: Agreement, for the full term of the extended and all of the provisions hereof shall equally apply to the 4 EFTA00597040 extended extension term of this hereof Agreement, shad be except that rent charged ander this Agreement Car the extended or renewed Lease Agreement; equal to the rent charged under the provisions of the (ii) new lease agreement with in the event that the Overienant enters into such n the new lease agreement the landlord and the rent required to be paid under the terms of is not in excess of Twenty Thousand month, then the Overenant ($20,000) Dollars per entered and the Undertenant shall automatically be deemed to !lave in this Agreement, into a new sublease except agreement, upon the terms, conditions and provisions set forth equal to the rent charged under that rent charged under the new sublease agreement shall be the provisions of the new lease agreement; or new lease agreement with (iii) in the event that the IJndenenant enters into such a Overtenant shall have no the Landlord, then at the end of the Sublease Term, the of the Security Deposit which further liability to the Undertenant, except to return any portion the Undertenant shall have was not applied in accordance with Section 6 hereof, and no further obligations except to the Overtenant under this Agreement, hereinafter for those set forth. obligations arising prior the end of the Sublease Term and except as (b) In the event that the Lease Agreement renewed as aforesaid is extended or willing and able for a term of no less than three (3) years or the Landiord is ready, Undertenant with to enter into a new lease agreement with the Overtenant or the respect to the use and occupancy of the Premises than for a term of no less three (3) years alter the expiration of the Lease Term of the Lease Agreement (whether by passage of time, termination or cancellation), Overtenant then, promptly after the gives the Undertenant notice of such extension, bcin8 renewal or of the landlord's ready, willing and able to enter into the new lease agreement, pay the Undertcnant shall the Overtenant paymod the sum of lefty-Five Thousand ($55,000) Dollars, representing Overtenant to the Overtenant for the Underienant's use of improvements made by the to the Premises; provided, however, the that, if the rent required to be paid under terms of any xueli renewed, extended or new lease agreement Thousand is in excess of Aventy pay such ($20,000) Fitly Dollars per month, then the Undertenant shall have no obligation to Underterient agrees -Else Thousand ($55,000) Diniar sum to the Overtenant, unless the nevertheless such extended, to continue to occupy the Premises during the term of renewed or new lease agreement. enter into a new (c) Unless :he Undertenant obtains the Landlord's a(recn'ent to Overtenant shall lease agreement with the Undertenant at the end of the Lease Term, the t..ke seeps necessary to cause the Lease Agreement extended in aecoreance with to be renewed or an:' maintaining, the term:, thereof, including, without limitation, commencing at the Overtcnant's sole cost and expense, legal proceedings, are:. nod appellate including court proceedings, in a court of competent jurisdiction. EFTA00597041 (d) Ln the event that the Landlord consents, during the initial Sublease Tcrrn or any extended tam of this Agreement, to the Overtenant's assignment of its rights and obligations under the Lease Agreement to the Undertenant, that, upon notice given by the Overtenant to the Undcrtcnant of such consent, the Undcrtcnant shall he deemed to have accepted such an assignment from the Overtennnt and to have assumed all of the obligations to be performed by the Ova-tenant thereunder from and after the date of such notice, In the event that, at any time prior to the expiration of the initial Sublease Term, such assigarnent and assumption takes place, the Landlord terminates the Lease Agreement and enters into a new lease agreement with the Undcrtenant, or the Overtenant terminates this Agecuncnt as ti result of a breach of this Agreement or the Lease Agreernen. by the Undet tcnant, then upon :inch assignment, the execution by the Landlord and the Underwent etsuch new tease agreement, or the termination of this Agreement as a result of such bran l% as the case may he, the Undcrtcnant shall pay the Overtenant for imprevements made by the Overtenant of to the Premises an amount equal to the difference (i) One Hundred Thousand ($100,000) Dollars, multiplied by the number of less (ii) the product of $5,000 installments of Rent which the Undcrtcnant had already paid may to the be. Overtenant From and as alter of the date of such assigtuniuu, es:ration or termination, as the case may be, neither party hereto the date shall of have such assignment, execution or termination, as the case any further liability to the other party hereto, under this Agreement or otherwise, except that the Undcrtcnant shall be liable to the Overtcnant assignment la the foregoing and assumption. payment and for All installments of Rent due through the date of such In the event of such assignment and assumption, the °verve:ant may, at its discretion, assign the Security Deposit to the Landlord in exchange being for the held release by the of Landlord. ail or a portion of the security deposit of the Overtenant which is then acknowledges 10. alsrlrirMilis —Ckv.aCti QYcLign4111. The Undcrtcnant tIke all property listed on the schedule attached which is eetitlai "Chandeliers, to the tease Aettement A athletic,: hereto. and all hardware Sconces and Mirrors." all improve rents listed on Schedule system :or the Premises arc or other property constituting part of the alarm of without the Overuntant's the prior suit mitten property of the Overtenant and shall not be disposed withheld in the sole, absolute consent, which consent may be granted or Undertenan; acknowledges and unfettered discretion of the Overtenut. The that the Ovenenant is a party to an agreement relating to the perform security the alarm Overtenant's system for obligations the Premises and agrees to assume, be bound by and fully under said agreement. 11. bssigemcl. The Overtenant may not assign this Agreement 0. its rights sad obligations henunclec withuat consent shall not be unreasohably the prior consent of the Undcrtcnant, which withheld. In the event that the Over tenant assigns Aereement, then the Undertenant this shall no longer be subject to the restrietiots set forth in Section 3 athis Arrcement relating to the Undenenant's dealing with the Landlord. Untkertenant .shall• not assigr. 'flit this Agra:mem or sublet the Premises without the prior c0nsent‘ of the Overtcnare, which consent may he granted or withheld in the sole, absolute and unfettered discretion of the Overtenant. EFTA00597042 12. Indemnification; Liticojeop_, (a) The Undcncnant shall indemnify the °venetian( and hold the Ovcrienant harmless Own-tenant (including, without from and against any and all liabilities and losses suffered by the limitation, amounts paid in respect of judgments or fines or in settlement of litigation and expenses, including attorney's Ices, reasonably incurred by the Overtcnant arising out of, in connection with any pending or threatened titillation or proceedirg) relating to, or connected with, in anyway whatsoever, use and °cur—gr.:) the Undertentint's , of the Premises and/or the Undertenant's provisions of tins Agra:mat failure to comply with the and/or the Lease Agreement.. Agreement, the Overtenant (b) Notwithstanding anything to the contrary provided in this shall not be deemed under any provision of this Agreement be required to limitation, attorney's to expend or incur aggregate expenses and casts (including, without fees and disbursements) in excess of Fifty Thomatral Dollars ($50,000) or, arising fur, out as or", a result of anti/or in connection with all local proceedings under, in respect tic relating to, this Agreement and/or the Lease Agreement. that said aggregate expenses in the event Overtenant desires and 'cats of the Ova-tenant exceed St: it amount and the to discontinue ils earicipation in any such legal proceeding, Ovenenant shall not discontinue the its participation in such proceeding Undo for so long as the amount. -tenant pays all of the Overtenant's costs and expenses in excess of ..ach aggregate of 13. faircLAwsginenl. This Agreement contains the entire agreement the parties hereto concerning prior agreements among the subject matter hereof, and supersedes any and all the parties hereto concerning prior agreements the subject matter hereof, which amended by an arc hereby canceled. This Agreement may only be changed, modiried or ttgreement in writing, signed by the parties hereto. Pl. Notices All notices, ,,her communications requests. reports. instructions, consents and required or permitted writing and shall he to be µven under this Agreement shall be in certified mail. deemed to have been duly sent or given, if delivered by hand or return receipt following addresses requested, postage prepaid, to the patties hereto at the that notices of a (or to such other address as shall be specified by like notice, provided change of address shall be effective only upon receipt thereof): (a) jf to the Overtenant to: Jeffrey E. Epstein 358 El Maio Way Palm Beach, Florida 33480 7 EFTA00597043 with a copy to: Jeffrey A. Schantz, Esq. I. iipstein te Company 457 Madison Avenue 4th Floor New York, New York 10022 (b) if_t_p_Owjlativrtenant. to: Ivan Fisher 34 East 69th Street New York, New York 10021 mail, Notices itturn delivered receipt by hand shall be effectivc upon delivery, and notic,..:i sent by certified segue:dad, postage prepaid, shall be effective five days after dispatch. 15. chwqrvit construed and caromed law. This Agreement shall be governed by, and to zontracts excaited in act:on:a:Ace with, the laws of the State of New York applicable of and to be fully performed therein, without giving Oka to conflicts law principals thereof. exercise of any 10. power, Waiver. No failure or dtday on the part of any party hereto in the right, or privilege he, etinder or under constitute a waiver the Lease Agreement shall and privilege thereof, nor shall any single or partial exercise of any such power, right Agxement or - constitute a further waiver thereof or of any other provision of this Agreement and the Le:rac Agreement. All rights and remedies existing under this remedibs otherwise the Lease Agreement arc cumulative of, and not exclusive of, any rights or available. Agreement 17, Spiel-A.:4 4y. Any term or provision of this Agreement or the Lease that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction. be ineflitaive . iv the extent' of such invalidity or unenforecablility without rendering or unenforceable invalid'' the remaining Agreement or alteeling terms and provisions of this Agreement and the Lease this Agreement and the validity or enforceability of any of the terms or provisions of the Lease Agreement expressly acknowledge in any other jurisdiction. The parties hereto that this Agreement and the Lease Agreement embodies intentions. Should any their part of this Agreement or the Lease Agreement be declared or unenforct.itble, invalid the parties hereto expressly obligate themselves to effectuate of such the intent invalid or unenforceable part of this Agreement oi the Lease Agreement manner that in a is lawful ah,u enforceable. EFTA00597044 18. kleadinits.: The Section headings use.: in this Agreement ace for convenience of reference only and shall not be construed as imps tin) limiting or expanding any meaning of the provisions of this Agreement which follow such headings. 19. courtterparls. Fur the oanvenierrc or the parties hereto, any number of counterparts or this Agreement may executed by the parties hereto, and each such executed counterpart shall be, and shall be deemed to be, an original hereof, and all of such counteeptuts :v ether shall be one and the same instrument. IN WITN1.',SS WHEREOF, the panics hereto have executed this Agreement as of the date of the day, month and year first above writ The Qyerterom: The Under, • i i 9 EFTA00597045 SCHEDULE A SCHEDULE OF 0VEI4TENANT'S IMPROVEMENTS 1. The telephoue system on the Premises. 2 All curtains cm the Premises located in the following rooms. the living room, the dining room and the study. 3. All lighting fixtures on the Premises, except those set forth in the attachment Lease Agrcancnt entitled to the "Chandeliers, Sconces, Mirrors." 4. !All carpeting on the Premises. 5. All aluicmcnt on the Premises located in the steam room. 6. The window air conditioning units on the Premises located in the following the exercise room, rooms: the master bedroom, and the main kitchen. 7. The large refrigerator located on the. Premises in the 6th floor kitchen. a EFTA00597046 EXHI T D EFTA00597047 United States Department of State Office of Fore' Missions Washington, 20520 June 3, 1996 CERTIFIED MAIL -- RETURN RECEIPT REQUESTED Jeffrey E. Epstein J. Epstein & Company, Inc. The Villard House 457 Madison Avenue New York, New York 10002 Re: 34 East 69th Street. New York. New York Dear Mr. Epstein: I write to inform you that you are in violation of the lease that you entered into as of February 2, 1992, as amended, with the Office of Foreign Missions of the Department of State ("OFM") for the above-referenced property (the "Lease"). The first paragraph of the Lease, which is entitled "USE," requires that premises be occupied by: (i) Tenant, his/her spouse (if any), and his/her children (if any) as their personal residence; (ii) Tenant's personal servants and employees; and/or (iii) approved subtenants or approved assignees and their respective families and for no other purpose. I understand that you are no longer residing at the premises. I further understand that you are permitting a Mr. Ivan Fisher to use the premises. The Lease requires that either you and your family or retinue, or an approved subtenant, occupy the premises. As you know, Mr. Fisher is not an approved subtenant under the Lease. See April 26, 1996 Letter from Thomas Burns to Jeffrey A. Schantz. Nor does Mr. Fisher appear to be your personal servant or employee. Mr. Fisher does not have OFM's permission to use the premises. Accordingly, you are in violation of the "USE" provision of the Lease. This letter constitutes formal notice of your default under the Lease. Pursuant to the section of the Lease entitled "Tenant's Defaults and Remedies," you are entitled to thirty days to cure "an unapproved EFTA00597048 -2- assignment of this lease, unapproved subletting all or part of the Premises or allowing another to use the Premises without the Landlord's approval . . . or any other default under the lease." Please cure this default immediately by having Mr. Fisher leave the premises permanently and by reoccupying the premises yourself. If you have not cured your default within thirty days after receipt of this letter, the Office of Foreign Missions will exercise its rights, as set forth in the Lease as well as under state and federal law. Sincerely, au4n-e Thomas E. Burns Deputy Director cc: Mr. Jeffrey Schantz J. Epstein & Company The Villard House 457 Madison Avenue New York, New York 10002 EFTA00597049 ,,'SENDER: 0 LI 5 0 yr 3. Article Addressedlo: 104 TeRre tZe o r frati !CS-46i2m4 ri 157 rna vet` N esA) sICOnblete NOM I and/or 2 for addrtberal services. eectoblete Items 3, 4e. and Ob. • PrInt your you. name and address on the reverse of this love so that we can 'rum this card @Attachtothis loon to the front of the magpies& or on the back it space does not Writ • • Write'Retum Receipt Requesteron the mailpiece below the article number. • The Return Receipt MI show to whom the snide was delivered and the 0320 &EMMA 6. Sig >i X a — PS Fenn 11, `soy' filitietssa Cc() r de Number I also wish to receive the following services (for an extra fee): 1. 0 Addressee's Address 2. 0 Restricted Delivery Constit postmaster tor fee. 319 ,50 rt CI) o. 4b. Service Type ' O Registered Ele6artitled. O Express Mal 0 Insured C O Return Rececit for Merchandise 0 COD ' 8 • c O C 7. Date.of end foe Is livery (Only requested Domestic Return Receipt EFTA00597050 EXHIBIT E EFTA00597051 United States Department of State Office of FortiAMissions Washington,M. 20520 August 7, 1996 CERTIFIED MAIL -- RETURN RECEIPT REQUESTED Jeffrey E. Epstein J. Epstein & Company, Inc. The Villard House 457 Madison Avenue New York, New York 10002 Re: 34 Fast 69th Street, New York, New York Dear Mr. Epstein: By letter dated June 3, 1996, this office issued you a formal notice of default under the terms of the lease that you entered into as of February 1, 1992, as amended, with the Office of Foreign Missions of the Department of State ("OFM") for the above referenced property (the "Lease"). As set forth in that letter, you were entitled to thirty days to cure your default by having the unapproved subtenant, Mr. Fisher, vacate the premise and by reoccupying the premises yourself. As of July 25, 1996, however, Mr. Fisher continued to occupy the premises. I therefore regret to inform you that, in accordance with paragraph B of the Lease section entitled "Tenant's Defaults and Landlord's Remedies," the Lease will be terminated as of August 23, 1996. Please have Mr. Fisher vacate the premises on or before that date. In addition, please return all keys to the premises to OFM's Office in New York at 866 UN Plaza, Suite 265. Sincerely Thomas E. Burns, Jr. Deputy Director cc: Jeffrey A. Schantz, Esq. J. Epstein & Company, Inc. The Villard House 457 Madison Avenue New York, New York 10002 EFTA00597052 "ts > 0 0 SENDER: acorn/Mete erns 1 and/or 2 for additonal services. • Correafete items 3, 4a. and 4b. • Prim your name and address on the reverse of this ken so that we can return Ns card to you. eAtuch this form to the front of the melipiece. oron the back d space does not perm. • Wrile etutn Receipt Requestect' on the marrow.. babes the article number. • m. Return Receipl will show to whom the article was delivered and the date delivered. I also wish to receive the following services (for an extra fee): 1. O Addressee's Address 2. O Restricted Delivery Consult postmaster for lea. 3. Article Add to: I 5ffetk e ET -te J.Epstue;re "1-64 1 H57 yrknotscen "the 10?) gti S. Received By: (Print Nome) 4a. Artide Number p snm35- 3418 4b. Service Type P. O Registered Ertertified lil O Express Mai O Insured 1 O Return for We O COD .2 3 cc E .4 6. signat e or Agent) • • PS can 3811, December 1994 7. Date åD J'? 8. Addressee's Address (Only Nrequested t and fee is paid) Domestic Return Receipt EFTA00597053