KELLERHALSIFERGUSON August 25, 2011 Ms. Cecile deJongh Financial Trust Company, Inc. 6100 Red I-look Quarter Suite 3B St. Thomas, VI 00802 Ms. Jeanne Brennan Financial Trust Company, Inc. 6100 Red Hook Quarter Suite 3B St. Thomas, VI 00802 Re: EDC Residency Requirements for Employees Dear Cecile & Jeanne: Erika A. Kellerhals 9100 Havensight Port of Sale, Suite 15-16 Sr- Thomas, VI 00802 TEL: (340) 779-2564 FAX: 888 316-9269 I wanted to confirm in writing the discussions we had in connection with your preparation of the EDC affidavits for the periods ending March 31, 2010 through March 31, 2011. Title 29, chapter 12, section 708 requires that each beneficiary of the EDC employ at least ten (10) persons on a full time basis in such enterprise; and all employees in such enterprise shall...be residents of the United States Virgin Islands (as defined in section 703(e) of this chapter). Section 703(e) of Tide 29, chapter 12, defines a resident of the Virgin Islands as "any United States citizen currently domiciled in the Virgin Islands for one year or more." As we discussed, you noted on the affidavit that Mr. Epstein was a resident employee of Financial Trust Company, Inc. ("FTC"). Mr. Epstein was domicile in the USVI during the period 2010 through 2011 and during the prior years as well. United States Supreme Court Justice Holmes defined domicile as "the technically pre-eminent headquarters that every person is compelled to have in order that certain rights and duties that have been attached to it by the law may be determined."' Most, however, simply define domicile as a person's home.2 Mr. Epstein has made the U.S. Virgin Islands, specifically the island of Little Saint James, his home since 1999. That being said, mere residence is not enough to constitute domicile.' Domicile requires both a physical and mental element To establish a domicile in a particular state an individual must reside within that state at some I Williamson v. Osent