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Fairfield-CS170822 • • HOUGHTON CAPITAL 600 INTERNATIONAL PLAZA III 1 4 2 4 1 DALLAS PARKWAY D A L L A S , TEXAS 7 5 2 5 4 August 22, 2017 Mr. Dilip Pranav via USPS Priority Mail Express Acer Lodging, LLC 8530 Esters Blvd. Irving, TX 75063 First United Bank and Trust Co. via USPS Priority Mail Express 6401 South Custer Road, Suite 100 McKinney, Texas 75070 RE: Fairfield Hotel, 1150 Northpoint Drive, Coppell, Texas 75019 SECOND NOTICE OF FLOODING Gentlemen, By letter dated August 7, 2017, addressed to Ken Griffin, you were provided with notice that the development of your property located at 1150 Northpoint Drive,Coppell,Texas,75019 is flooding Securlock's Property'. You were also presented with a good-faith offer and suggested course of action to avoid unnecessary and costly litigation. Unfortunately, since that time, neither of you, nor anyone purporting to be authorized to represent Fairfield or anyone associated with the development has bothered to respond. Making matters worse, on August 13, 2017, Securlock was flooded again, causing further damage to our building and tenants. As a result of your inaction and apparent lack of concern, no steps have been taken to protect Securlock and its tenants from water damage caused by your change of the natural flow of water. Further, your lack of action left Securlock with little choice but to contact all potentially impacted tenants and advise them of the possibility of flooding and damage to their belongings. This is personally embarrassing to me and potentially disastrous to Securlock's reputation. The prospect of ongoing flooding may provide permanent stigma and damage to Securlock's reputation in addition to lost revenue and good will to our investors and permanent damage to collateral that is security for a sizable loan. The recent flooding illustrates some of the problems you created by altering the natural flow of water that existed prior to construction, and by diverting water toward the Property. This has 1 Capitalized terms are used as defined in my August 7,2017 letter. ANDREW SMITH : PRESIDENT • • A N DRE W@ H O U G H T O N CAP I T A L . C O M DIRECT 9 7 2 . 3 5 4 . 5 3 2 8 FAX2 . 354 . 5328 FACELL 9 7 2 . 6 5 8 . 4 8 9 9 Page 2 Second Notice of Flooding August 22,2017 created a permanent problem that will not go away without an immediate and comprehensive solution. I am requesting your immediate attention to this matter and would appreciate written or verbal communication by Friday, August 25, 2017, outlining your proposed course of action followed up with daily communication and progress updates on how you are going to immediately protect the Property. I am available by cell phone at(972) 658-4899 or by email at andrew@houghtoncapital.com Thank you. Zig Andrew Smith President Houghton Properties, Ltd. (Enc.) cc: Northpoint Construction LLC via USPS Priority Mail 8530 Esters Blvd. Irving, TX 75063 cc: Mr. Ken Griffin City of Coppell Engineering Department via USPS Priority Mail 255 Parkway Blvd. Coppell, Texas 75019