February 24, 2008

Engle Martin
88 Inverness Circle East – Suite H-104
Englewood, CO 80112

Attn: Russell Clark, CPCU, AIC

Executive General Adjuster

Re: Parc IV and V Condominiums

Houston, Texas

In accordance with your request, Childress Engineering Services (CES) has performed additional inspections
and observations of the roof assemblies on Parc 4 and Parc 5 Condominiums in Houston, TX. Kevin Lea,
CES Registered Roof Observer, conducted the re-inspection with Joel Scott Senior Consultant for CES on
February 17, 2009.

The additional inspections were also due to a request made by Mr. Frank Cario property manager of the
towers regarding a proposal for roof repairs provided by All-Tex Roofing Corporation. Mr. Harvey Hester of
All-Tex roofing has identified on his proposal that the roof assemblies on both towers have extensive damage
and are complete loss due to the storm

During the initial inspection Kevin Lea with CES found no Hurricane damage to the roofs of either building.
CES also returned to the properties and performed wind uplift testing on both roofs at the request of Travelers
Insurance. There were three (3) uplift test performed on each building, a corner uplift test, a perimeter uplift
test and a test on the field of the roofs (central location). All testing performed on the buildings passed the
required test pressures and did not exhibit any uplift on the roof assemblies.

EXECTUTIVE SUMMARY:

During the initial roof inspections CES observed several areas on both buildings that had repairs with a cold
process roof covering. This material is a thick black slurry mix. This mix is a roll on material (applied with a
paint roller) in areas around roof drains, vent flashings, and around the perimeter edge of the buildings.
During CES’ initial inspection there were no areas of roof which were blown off or appeared to be loose from
high winds.

FIELD OBSERVATION:

During CES’ inspection on February 17, 2009 on Parc 4 on the main roof area there were several splits found
in the roof assembly Photo # (1). The splitting is occurring due to age and deterioration of the roof system.
The north end of this roof has an area of approximately 350 square feet coated with cold process roofing in an
attempt to keep the roof from leaking. There are several splits in this roof area photo # (2).
As you look up at the penthouse roof, improper installation of metal edge flashing is evident. This metal was
installed over existing metal edge that is showing excusive rusting and detraction photo # (3). The bottom
surface of the metal edge has been sealed in an attempt to keep the metal held in place rather than installing a
proper metal cleat or anchor. There are also several areas on the penthouse roof exhibiting repairs to the roof
system photo # (4). During CES’ re-inspection it was apparent that all roof areas on the building has ponding
water issues and also shows evidence of deterioration in several areas from this problem photo # (5) & (6). An
aluminum roof coating has been applied to the roof on both buildings 4 and 5. This aluminum roof coating is
deteriorating and is exhibiting crack and has lost its reflective ability photo # (7).

On the roof assemblies on Parc 5 there is evidence of the same problems occurring throughout the roof
assembly that has been described on Parc 4. There are areas in the roof system that has been cut during the
installation of the roof photo # (8). These areas show signs of being covered with an aluminum coating and
are now telegraphing through the roof photo # (9). The metal edge on the penthouse has also been installed
over the existing metal edge that has deteriorated photo # (10) & (11). There have also been several areas on
the penthouse roof repaired with cold mix to help try to stop the leaks in the roof system photo # (12).
Ponding water is also an issue on this roof photo # (13) & (14) and is creating deterioration and leakage in this
building.

Conclusion:

It is the opinion of CES that there is no damage to the roof system on the buildings of Parc 4 and 5 that
occurred from Hurricane Ike. It is also CES’ opinion that all problems with the roof system are occurring due
to age, ponding of water, and improper installation. There is excessive deterioration throughout the roof
system due to the items noted above. Mr. Harvey Hester informed Kevin Lea and Joel Scott of CES that the
roof was approximately 20 years of age.

Respectfully Submitted:

Childress Engineering Services

Kevin Lea, RRO

Senior Roof Consultant
 Typical Photographs Of Roof Assemblies
The following photographs document and describe conditions observed during the CES site visit. Note that not every single damaged or
missing item was photographed; the photographs below represent the typical damage observed on the facility

Photograph #1 / Split On Roof Membrane

Photograph #2 / Cold Process Roof Repairs
Photograph #3 / Improper Installation Of Metal Edge Flashing
Photograph #4 / Multiple Roof Repairs
Photograph #5 / Excessive Ponding
Photograph #6 / Excessive Ponding
Photograph #7 / Aluminum Roof Coating Is Deteriorated
Photograph #8 / Roof Has Been Cut During Installation
Photograph #9 / Roof Has Been Cut During Installation And Has Been Covered
With An Aluminum Coating
Photograph #10 / Metal Edge Flashing Has Been Installed Over An Existing Member
And is Deteriorated
Photograph #11 / Metal Edge Flashing Has Been Installed Over An Existing Member
And is Deteriorated
Photograph #12 / Roof Has Multiple Repairs
 Photograph #13 / Excessive Ponding Of Water

End Of Report