PCTH Status Report

PCTH Owners:

Below is a status report from Tim Towner regarding the repair and construction progress within the PCTH complex. As evidenced by this work underway, The Association has been able to draw funds from the SBA Loan for this first phase of work that is dependent on the SBA funding.

The PCTH Board, with a quorum in David Henley's absence, met with The Association's attorneys, Rick Carrasco and Louis Lippman, on Friday, October 30, 2009, in the Houston law offices of Rollin Fisher. Members of the Board, as well as managing agent, Tim Towner, thoroughly reviewed the status of the legal work done on The Association's behalf from January to October 30. Rick Carrasco was obligated by TWIA to present a settlement offer to The Board, which was not accepted by unanimous vote of The Board.

Where are we now? The Board set a dollar amount to present to TWIA as a settlement. The Board also set a timeline for acceptance, or another more tangible offer, by the end of November. Upon review of another offer, The Board will review it and either accept or move to the next step of filing suit against TWIA by the end of the year. Upon such action of accepting a settlement or moving forward with the next legal step, the owners will be advised accordingly.

Best regards,

Liz Cook