From:

Steve Hanson

Sent: Friday, May 4, 2012 3:29 PM

To: Craig Martin

Cc: Jeffrey Epstein

Subject: RE: Staffing Guide

Craig,

Not at all knowing the extent of information you, and mainly Jeff possess regarding the running of the =sland, I have a few comments.

1. First, I feel after construction is complete, you should pull back staff =o bare bones. Review of all is below.

2. I would interview for landscaping and housekeeping, part time - =ack up employees. Have a pool of workers for each area, trained prior as =o the island's needs and on an "as needed" =mployment. Remember, you have yourself who will be responsible to oversee =11 work, two island managers, a Head Engineer, Head Grounds men — =eems like you're way management heavy, but see below. =o:p>

May 5th

Sept 1st

Dec 1 st

Island Managers 2 Brice and wife? What exactly does his wife do? Can =he not help with management of housekeeping? =o:p>

Head Engineer/ =aintenance

1

1

1

Boat Captains- Don't understand why you need more than 1Captain with a good boat mate, who =an also help engineer with small boat maintenance issues and can run the =mailer boats on his own for just straight transportation, as needed. =o:p>

2

2

2(1)

Boat Mate

1

1

1

Engineering-With a head engineer, do you =eed more than 1 other to be a back up for the R.O. plant along with your idea of a =art time marine mechanic — but wouldn't reality be, regarding =ny boat issue —for any major repairs goes into port? Also, are not more =f Jeff's boats rather new maintenance =ees?

4

2

2(1)

4

Maintenance

5

3

2

Head Grounds Man-With a head grounds man, I would cut back landscaping to 3 from 5 and see =hat can not get completed.

1

1

1

Landscaping-You now have a head engineer, =oat mate, another engineer — who all should be helping with different =spects of maintenance. Not knowing the R&M of the buildings are two =dditional maintenance men needed vs 1 and twice a year seasonal hire? Need your =nput, but I would rather in all departments asap cut back to bare bones and =ee

what can not be completed vs having each department work into the pace =f keeping all employed and everyone
looking busy. =o:p>

7

7

5(3)

Housekeeping-Same =ere, I would go down to 1 or maybe 2 and have island manager wife help here. =o:p>
4
3
3(2)
Part Time =ousekeeping

1

1(2)

Total

25

21

18

=

Stephen Hanson

=

Proud to be the first national multi-concept =estaurant group to be certified Green by the Green Restaurant =ssociation

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From: =stl:PersonName w:st="on">Craig Martin Imailto:cmartin261@yahoo.comJ =br> Sent: Thursday, May 03, =012 5:15 PM To: Steve Hanson Subject: Fw: Staffing =uide

Steve;

This is the original list I sent Jeffery. I was proposing a second draw down after =11 construction work is finished.

Please see below.

I =ave sent two additional employment lists for you to look =t.

Craig

=

Forwarded Message
From: Jeffrey Epstein <jeevacation@gmail.com>
To: Craig Martin <cmartin261@yahoo.com>
Sent: Monday, April 23, =012 5:31 PM
Subject: Re: Staffing =uide

you and i will discuss tomoorow.. I agree, i am not sure why we =eed a new shed. . plus plus

On =on, Apr 23, 2012 at 5:29 PM, Craig =artin <cmartin261@yahoo.com <mailto:cmartin261@yahoo.com» =rote:

Here is a proposed draw down of staffing. As construction ends we will have to =etrain staff to fit into their new roles.

This does not take into account retraining the boat captains to preform other duties =s yet.

Proposed Staffing =uide

May 5th

Sept 1st

Dec 1 st

Island Managers 2 =o:p>

Head Engineer/ =aintenance
1
1
1

Boat Captains

2

2

2

Boat Mate

1

1

1

Engineering

4

2

2

Maintenance

5

3

2

Head Grounds =an

1

1

1

Landscaping

7

7

5

Housekeeping

4

3

3
Part Time =ousekeeping

1

1

Total

25

21

F

Jeffery;<=p>

Here are some thoughts on support staffing.

Engineering/Maintenance=/span>

For Discussion only;

As =iscussed most of the islands staffing is now involved in construction not on =sland maintenance. As the construction winds down the staff in engineering, maintenance and marine services should have more time to perform their permanent jobs. If we can teach them to multi-task we should be able to =hrink the staff.

Between engineering and maintenance there are currently 9 people. Marine =ervices has 3pp plus the head engineer position (Arran), makes the total support staff 13pp. This is an extremely large support =taff for the island.

Management is currently looking at the staffing by who is there and how they fit into =he current/new staffing structure. We need a new structure. If you look at =he staffing from a larger/different prospective, though, you would have a =mailer staff that is trained in multi areas. We need more out of the box =hinking. To get to this point the current staff might have to be retrained or =eplaced. This may take several months to accomplish but could be done. We need a =ew org chart in this area.

Examples;

Maybe there is a marine mechanic that is the second boat driver who also runs =he RO plant and is the island mechanic. When the island stops maintaining construction equipment and much of the equipment leaves the island and =here is fewer boats to maintain, this may be =ossible.

Head Engineer that is also a carpenter or a plant =perator.

Painter/ Carpenter/maintenance combined.

Electrician/ plant operator/irrigation (electronic side) technician. =o:p>

These are just suggestion for discussion, but I think you can see where we could =e going.

Structure;

Currently engineering reports to Aaran, maintenance to Brice, marine to =oth.

Future; There should be one person to handle all. They can then supervise all support =taff and deploy them as needed. Landscaping might want to fall here =lso.

Areas of work/Buildings. Although this may sound trivial I do not believe =he staff should be spread out in 3 or 4 different buildings. This makes is =ery difficult to supervise them and to have them multi task =

Currently, carpentry is in the building by the dock, electricians in the RO =uilding, mechanics in the shed and management in a separate building. It is =Imost impossible to manage and supervise the staff that =ay.

All the work spaces are over sized and could be smaller and more efficient if =edesigned correctly. I would also avoid walls and use more fencing/windows where possible. You need to be able to see the staff =orking.

Example (for discussion)

In =he RO building have a carpenter shop, paint, electrical, plumbing and a glass enclosed managers office. I believe this may =it.

To =ccomplish this; Quads would go to dock side building. Storage to dock side building. Electrical shop to shrink. Engineering storage to the two empty generator bays.

The proposed new metal building would be a great asset but if you do not want to =pend $250,000 on the building you could;

Clean up current mechanics building.

Throw out much of the material there.

Keep sensitive equipment/machinery in dockside building. There are 3 more =ontainers in that building using valuable space as well as a large carpenter shop, =arge marine services shop that would have to be re =urposed/moved/reconfigured.

Larger equipment would be kept in current engineering =hed/structure.

These are just some ideas for discussion.

The point is the way the support staff is currently structured will lead to a larger =taff than you want. I believe we should
start with making the physical plant more efficient and then reducing the staff.

<=p>

Craig</:=>

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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

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return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights =eserved