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Inspecting to a higher standard. Rob Hopkin Silver Spring, MD 20902 Monday, June 2, 2014 ProTec Inspection Services Inc. 19736 Selby Ave Poolesville, MD 20837 301-972-8531 www.protec-inspections.com rob@protec-inspections.com

June 3, 2014 Dear, RE: Report No. 1004 Silver Spring, MD 20902 The enclosed report has been prepared to provide pertinent technical information about the subject property. This report meets or exceeds the ASTM Standard E2018-08 for Property Condition Assessment. The report is not technically exhaustive and should be considered preliminary. The entire report must be considered in order to rely on the findings contained within. Sampling information in the report may put it out of context. The report will not be released to anyone without your permission. Thank you for giving us the opportunity to be of service. Should you have any questions regarding this report, please contact us. Sincerely, Rob Hopkin on behalf of ProTec Inspection Services Inc. ProTec Inspection Services Inc. 19736 Selby Ave Poolesville, MD 20837 301-972-8531 www.protec-inspections.com rob@protec-inspections.com

Report No. 1004 OVERVIEW This report has been prepared in accordance with the accepted proposal. A visual inspection was performed to identify the existing condition of the following building systems: Structure, Electrical, Heating, Air-conditioning, Plumbing, Roofing, Ventilation, Exterior, Interior. This report exceeds the ASTM Standard E2018-08 in that a five-year time frame for major repairs or replacements of building components has been considered. This report provides recommendations, preliminary cost estimates and priorities for correcting major deficiencies, updating major components at the end of their life, and undertaking further detailed investigations. Normal building maintenance items are not included. Our inspection was limited to components that were readily visible and not obstructed by equipment, storage, finishes, etc. No comment is offered on code compliance or environmental issues. Costs are provided for recommendations that are beyond normal maintenance and are expected to exceed $3000. Any costs below that will be marked as Minor. The costs provide an order of magnitude only, and do not include any design or construction management fees, contingencies or permit fees. Contractors should be contacted for quotations. The report is preliminary in nature. Before any major repairs are undertaken, we recommend that a specialist perform a detailed condition survey and develop a plan of action. The report is intended for the exclusive use of our client. Use of the information by any other party is not intended and therefore, we accept no responsibility for such use. The following defined terms are used to describe the condition of the components and systems reviewed: Satisfactory - performing its intended function; no major defects noted. Serviceable - performing its intended function, but has visible defects or is aging. It will require minor to moderate repairs. Fair - barely performing its intended function. Has visible defects or is aging and will require moderate to major repairs in the short term. Poor - not performing its intended function. It is at or beyond its useful life. Component requires major repair or replacement. All building sizes noted here are rough approximations based on site observations, and are for the purposes of this report only. SIGNIFICANT ITEMS In our opinion, the following items are likely to require more than $3000 in remedial action within the next 5 years: Page 1 of 31

Report No. 1004 Electrical GENERAL \ Overall condition Condition: The overall condition of the electrical system is considered to be satisfactory. adequate, but needs some minor repairs at this time. Cost: $1,000 - $1,500 Heating GENERAL \ Overall condition Condition: The overall condition of the heating system is considered to be satisfactory. Air Conditioning HEAT PUMP SYSTEM \ Unit #1 Condition: No major deficiencies noted Ventilation GENERAL \ Overall condition Condition: The overall condition of the ventilation system is considered to be satisfactory. Plumbing GENERAL \ Overall condition Condition: The overall condition of the plumbing system is considered to be satisfactory. Roofing GENERAL \ Overall condition Condition: Several small cracks were observed on the single ply membrane and some improper flashings were installed on the parapet wall of the shingle roof. Stains were observed inside the building, but none tested wet with a moisture meter and they all appear old. Monitor the roof for future leakage and have the roof evaluated and repaired by a qualified roofer in the near future. Cost: $800 - $1,500 Page 2 of 31

Report No. 1004 Interior Components GENERAL \ Overall condition Condition: The overall condition of the interior components system is considered to be serviceable. Minor repairs needed at this time. Cost: $1,500 - $3,000 GENERAL \ Interior Surfaces Condition: As is typical, the walls, ceilings, and floors show cosmetic deficiencies due to normal use Structure GENERAL \ Structure Condition: No major structural defects were noted Exterior Components GENERAL \ Overall condition Condition: The overall condition of the exterior system is considered to be serviceable. Cost: $1,000 - $1,500 DOORS \ Main entrance doors Condition: The back door is blocked by storage. Keep the area clear in case of fire. Main door operational WOODWORK AND TRIM \ General Condition: Paint failure Location: Various SITE WORK \ Asphalt pavement Condition: Pavement appears original to the building Location: Throughout Cost: $10,000 - $15,000 Only the items specifically addressed in this report were examined. No comment is offered on fire protection equipment or on fire regulation, building code and building bylaw compliance, or environmental concerns. Page 3 of 31

Description Report No. 1004 Purpose of the report: Property Condition Assessment Recommendations General 1. Immediate costs to repair list: Time: Immediate Cost: $2,000 - $3,000 2. 1-3 year cost to repair items: Time: Less than 3 years Cost: $2,500 - $4,000 3. 3-5 year cost to repair items: Cost: $5,000 - $8,000 4. The above is an estimated cost you can expect to incur right away, then again within the first 3 years and lastly within the first 5 years. These cost estimates do not include cosmetic repairs, the cost of replacement to process equipment or elective upgrades to the building. Page 4 of 31

Description Electrical service to the building: Electrical service size: 200-amps Service distribution and metering: Distribution panels: Predominant wire types: Copper Circuit breakers Overhead There is a single meter for the building Report No. 1004 1. Copper 2. Copper Copper - armoured cable Lighting fixture types: Flourescent Incandescent 3. Incandescent Page 5 of 31

Report No. 1004 Low-pressure sodium 4. Incandescent Grounding - electrical system: at grounding rods Limitations General: Most of the lights were not on at the time of the inspection as the owner did not want to give the impression the restaurant was open at the time of the inspection. None of the light fixtures in and on the building are expensive items should they require repair or replacement. Recommendations GENERAL \ Overall condition 5. Condition: The overall condition of the electrical system is considered to be satisfactory. adequate, but needs some minor repairs at this time. Cost: $1,000 - $1,500 GENERAL \ Level of Maintenance 6. Condition: Some deferred maintenance was noted. DISTRIBUTION EQUIPMENT \ General condition 7. Condition: Moderate deficiencies noted DISTRIBUTION EQUIPMENT \ Panel conditions 8. Condition: Panel breakers are not labeled. Page 6 of 31

Report No. 1004 9. Condition: Exposed feed wire Location: Rear Exterior Wall Task: Correct Time: Immediate 5. No labeling of Breakers BRANCH CIRCUIT \ General condition 10. Condition: Wires not properly protected inside closed junction boxes. Wires loose on the roof. Wires not secured where entering the right side signage. 6. 7. Page 7 of 31

Report No. 1004 8. 9. 10. BRANCH CIRCUIT \ Light conditions 11. Condition: Damaged Missing covers on some fixtures Wires not all in closed junction boxes where connected. Location: Various Task: Correct Time: Immediate Page 8 of 31

Description Report No. 1004 Heat pumps - general: Air-source system Heat pump unit #1 - Age: Less than 5 years old Typical heat pump life expectancy: Air-source - 12 to 15 years Limitations General: The heat pump system was tested in the cooling mode only. Operating status: The system was operating in Cooling mode. A heat pump is not tested in both the heating and cooling modes at the same time. Recommendations GENERAL \ Capacity 12. Condition: 4 1/2 ton Heat pump. 11. 12. 13. Condition: The outside unit is a 5 ton unit while the inside appears to be a 4 ton unit. This type of system works better when the interior and exterior systems are within 1/2 ton of one another. No action is required at this time. GENERAL \ Overall condition 14. Condition: The overall condition of the heating system is considered to be satisfactory. GENERAL \ Level of Maintenance 15. Condition: Clean or change the air handler filter monthly. It is located on the left side of the air handler. Page 9 of 31

Report No. 1004 13. 16. Condition: The Heating system has been well maintained for the most part. FORCED AIR SYSTEM COMPONENTS \ Supply air distribution 17. Condition: No major deficiencies noted OPERATING STATUS \ Operating 18. Condition: The air handler is located in the back work area ceiling and the compressor is located on the roof. Both appear to be about 1-3 years of age. 19. Condition: Equipment operating in cooling mode Page 10 of 31

Description NING Heat pump #1 - Age: Less than 5 years old Heat pump #1 - Cooling capacity: 5-tons Report No. 1004 Recommendations HEAT PUMP SYSTEM \ Unit #1 20. Condition: No major deficiencies noted Page 11 of 31

Report No. 1004 Description Roof-mount exhaust fans - areas serviced: Washroom(s) Process equipment 14. Kitchen vent 15. Stove hood ventilation Limitations Process related equipment: examined Process related equipment is beyond the scope of our assessment and is not closely Recommendations GENERAL \ Overall condition 21. Condition: The overall condition of the ventilation system is considered to be satisfactory. INDIVIDUAL EXHAUST FANS \ General 22. Condition: No major deficiencies noted Page 12 of 31

Report No. 1004 Description Domestic water supply - size and pipe material: 1-inch diameter Copper Domestic water supply - shutoff: door. The main water supply enters the building in a closet just right of the main entry 16. Water meters: One Supply plumbing pipe material examined: Combination of copper and plastic Drain, waste and vent piping material examined: PVC plastic Washroom locations: One half bath located at the back of the store. 17. Page 13 of 31

Report No. 1004 Domestic water heaters: Electric Typical domestic water heater/boiler life expectancy: 2011 20 gallons 18. Typical domestic water heater/boiler life expectancy: 15 years Limitations General: Water was run in all fixtures with no leaks or failures observed. Recommendations GENERAL \ Overall condition 23. Condition: The overall condition of the plumbing system is considered to be satisfactory. SUPPLY \ Pressure and flow 24. Condition: No major deficiencies noted PIPING \ Supply 25. Condition: No active leaks noted PIPING \ Drain and waste 26. Condition: No active leaks noted Page 14 of 31

Report No. 1004 19. No active leaks noted Page 15 of 31

Description Modified bitumen (single-ply): Building Report No. 1004 Flat roof(s) 20. Building Metal (Copper/steel) approximate age: Between 30 and 50 years old Asphalt shingles - approximate age: Less than 5 years old Limitations Flat roof covering(s) - general: Flat roofs tend to leak. 21. Past roof leak 22. No flashing under shingles Page 16 of 31

Report No. 1004 23. Seal screw heads 24. Past roof leakage 25. Rusting roof flashing 26. Seal the nail heads Page 17 of 31

Report No. 1004 27. No flashing under shingles 28. Damaged metal roof 29. Gaps in flat roof 30. Page 18 of 31

Report No. 1004 31. 32. Recommendations GENERAL \ Overall condition 27. Condition: Several small cracks were observed on the single ply membrane and some improper flashings were installed on the parapet wall of the shingle roof. Stains were observed inside the building, but none tested wet with a moisture meter and they all appear old. Monitor the roof for future leakage and have the roof evaluated and repaired by a qualified roofer in the near future. Cost: $800 - $1,500 TYPICAL ROOF DEFECTS \ Flashings 28. Condition: Rusting 29. Condition: Loose 30. Condition: Improper Page 19 of 31

Description OMPONENTS Report No. 1004 Finished area floor coverings: Ceramic tile Wall finishes: Drywall Ceiling finishes: No ceiling installed at the back area. While not a structural problem it could be for health code reasons. Ceiling finishes: Acoustic tile Limitations General: No view in most areas of the ceiling above the drop ceiling or behind walls. Recommendations GENERAL \ Overall condition 31. Condition: The overall condition of the interior components system is considered to be serviceable. Minor repairs needed at this time. Cost: $1,500 - $3,000 GENERAL \ Interior Surfaces 32. Condition: Doorjambs slightly out of square and floors not entirely level. This is not considered to be out of the ordinary. 33. Condition: As is typical, the walls, ceilings, and floors show cosmetic deficiencies due to normal use 33. As is typical, the walls, ceilings, and... 34. As is typical, the walls, ceilings, and... Page 20 of 31

OMPONENTS Report No. 1004 35. As is typical, the walls, ceilings, and... 36. As is typical, the walls, ceilings, and... 37. As is typical, the walls, ceilings, and... 38. As is typical, the walls, ceilings, and... Page 21 of 31

OMPONENTS Report No. 1004 39. As is typical, the walls, ceilings, and... 40. As is typical, the walls, ceilings, and... 41. As is typical, the walls, ceilings, and... 42. As is typical, the walls, ceilings, and... Page 22 of 31

OMPONENTS Report No. 1004 34. Condition: Water damage 35. Condition: Staining 36. Condition: Impact damage INTERIOR SURFACES - FLOORS \ General 37. Condition: Floor tile in satisfactory condition 43. As is typical, the walls, ceilings, and... 44. Page 23 of 31

Report No. 1004 Description General: It should be understood that a review of the thermal characteristics of the building envelope is beyond the scope of our assessment. Only general information is provided here Limitations General: Since access could not be gained, no comment can be offered on the insulation here Page 24 of 31

Report No. 1004 25 University Blvd. W, Silver Spring, MD SUMMARY SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION Description Configuration: Slab-on-grade Foundation wall material: Masonry Exterior walls: Concrete-block Floors: Roof: Masonry Masonry and wood-frame Metal pan and concrete floors Wood deck Supported by wood roof joists Limitations General: Interior and exterior finishes restricted the evaluation of the structure Recommendations GENERAL \ Structure 38. Condition: No major structural defects were noted 45. No major structural defects were noted 46. No major structural defects were noted Page 25 of 31

Report No. 1004 25 University Blvd. W, Silver Spring, MD SUMMARY SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION 47. No major structural defects were noted ROOF \ Deck 39. Condition: Minor impact damage observed at the lower edge of the metal roof near the seating area. Should not be a problem in the future. Page 26 of 31

25 University Blvd. W, Silver Spring, MD SUMMARY Report No. 1004 COMPONENTS SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION Description Exterior walls: Solid masonry 48. Solid masonry 49. Solid masonry 50. Solid masonry Main entrance doors: Aluminum-framed Building windows: Aluminum-framed Page 27 of 31

25 University Blvd. W, Silver Spring, MD SUMMARY Report No. 1004 COMPONENTS SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION 51. Aluminum-framed 52. Aluminum-framed 53. Aluminum-framed Vinyl-framed Pavement: The parking area is asphalt. It is reported to be the responsibility of the building owner. Page 28 of 31

25 University Blvd. W, Silver Spring, MD SUMMARY Report No. 1004 COMPONENTS SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION 54. 55. Pavement: At building perimeter is mostly concrete 56. At building perimeter Recommendations GENERAL \ Overall condition 40. Condition: The overall condition of the exterior system is considered to be serviceable. Cost: $1,000 - $1,500 DOORS \ Main entrance doors 41. Condition: The back door is blocked by storage. Keep the area clear in case of fire. Main door operational Page 29 of 31

25 University Blvd. W, Silver Spring, MD SUMMARY Report No. 1004 COMPONENTS SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION 57. 58. WINDOWS \ Caulking and weather stripping 42. Condition: Deteriorated caulking Cost: $200 - $500 WOODWORK AND TRIM \ General 43. Condition: OSB is used as exterior siding at the back left corner. This is not an exterior grade product and should be covered with something else before it rots completely. 59. 44. Condition: Paint failure Location: Various Page 30 of 31

25 University Blvd. W, Silver Spring, MD SUMMARY Report No. 1004 COMPONENTS SUMMARY B ELECTRICAL www.protec-inspections.com June 2, 2014 HEATING AIR CONDITI VENTILATION PLUMBING ROOFING INTERIOR INSULATION 60. Paint failure SITE WORK \ Sidewalks and Walkways 45. Condition: No major deficiencies were noted SITE WORK \ Asphalt pavement 46. Condition: Pavement appears original to the building Location: Throughout Cost: $10,000 - $15,000 END OF REPORT Page 31 of 31