1 New Water Intrusion Prevention and Wind Resistant Construction Mercedes Homes A presentation by Stuart McDonald Corporate Vice President of Operations

2 National Housing Quality Award Winner 2007  The history of the project  The birth of Solid Wall Systems  NHQ Partners and Participators  The Prototypes-Standards & Options

3 The History of Solid Wall Systems  9 years ago, an idea was formed to build a safer, stronger, more energy efficient homes  Over the last 8 years PATH, Steven Winter and Associates, FLASH, the University of Florida School of Construction and Engineering Department, the Insurance Industry, and Applied Research Associates have participated  Four different wall types were experimented with which has resulted in the Solid Wall homes we build today  Since 2001, we have built over 4,500 Solid Wall homes in Florida  Much of our success is due to the advent of SWS

4 About Solid Wall Systems  30-40% of all homes we build in Florida are Solid Concrete Walls installed by our subsidiary; Solid Wall Systems  We invested over $3 Million Dollars in training, specialty trucks, lifts, forms, etc. to get Solid Wall Systems off the ground  We are working to be more efficient with our installation processes. Solid Wall Systems can help reduce our build time and cost

5 TYPICAL 9 Ft. WINDOW OPENING HEADER

6 WINDOW INSTALLATION

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8 Cast-in-Place Concrete Walls Provide Superior Hurricane Featured 6” solid concrete walls withstand extreme wind loads and wind-driven ‘missiles’ at 200 mph Structural Protection Hurricane straps are wet-set into concrete walls at strategic locations for more effective uplift resistance and foolproof installation Steel cage provides a reinforced structure for impact load distribution Aluminum forms assure fast and accurate construction with minimal waste Structural Protection

9 Out-swing entry doors are more resistant to wind loads and prevent water intrusion that occurs when hurricane winds force rain past weather stripping on in-swing doors Removable hurricane shutters protect window openings from wind, debris, and wind driven rain Recessed seats in the foundation slab for walls and entry doors discourages rain draining off the exterior from entering the home Wind-Driven Rain Protection Design Features Reduce the Chance for Water Intrusion

10 Wind-Driven Rain Protection Design Features Reduce the Chance for Water Intrusion Soffit vent openings are limited and reconfigured to prevent water from being driven or sucked into eaves by wind pressures Extended fascia design creates a drip edge to drain water out and away Baffled roof vents make it more difficult for rain to penetrate into attic spaces Continuous wall surface drainage plane from eaves to foundation inhibits water from entering wall cavities

11 Wind-Driven Rain Protection Enhanced Specifications Control Water Elastomeric sealant at concrete form joints and snap tie locations prevents water from entering through vulnerable areas Secondary roof drainage plane made of continuous self adhesive membrane underlayment provides continuous rainwater protection if shingles are lost or damaged during a storm High performance acrylic finish coatings prevent exterior walls from absorbing water during heavy rains

12 Post-Storm Recovery Water Damage & Mold Mitigation Water damage and mold growth become increasingly severe when power outages prevent homes from drying out quickly following a hurricane Natural gas generator in each home allows for fans and dryers to be used in power outages, greatly reducing risk of mold growth and other damage Paperless drywall with glass mat facing resists mold growth far better than traditional paper-faced products. Mold grows particularly quickly on paper and other organic materials

13 Energy Efficiency in Mercedes Homes Energy modeling helped predict and optimize efficiency Home performance testing verified that our prototype homes meet or exceed ENERGY STAR® Home standards Our Building envelope was improved through tight concrete construction and continuous foam insulation boards adhered directly to concrete walls Mechanical systems were carefully selected to maximize efficiency

14 Single Story Standard, Included Features  Out Swing Doors (Recessed)  Recessed Foundation Wall Seat  Color Wheel’s Flex-Lox Coating − RCS-4 Sealant  Lomanco Off-Ridge and Ridge Vents  Self Adhesive Membrane applied in Roof Valley  Soffit and 6” Fascia with 4” Sub-Facia  Textured Cement & Paint up to Truss  Weep Screed

15 Two Story Standard, Included Features  Tyvek with Paper Back Lath (creates additional drainage plane)  Horizontal and Vertical Expansion Joint with Weep Screed  Tyvek Window Sill Flashing “Flex Wrap” and Straight Tape  Sill Flashing or Pan for Second Floor Exterior Doors Sliding Glass Door  Flashing Detail for Second Floor Balcony  Second Floor-Laundry Pan and Drain under Washer

16 Optional Features  Hurricane Shutters  Self Adhesive Membrane Entire Roof  Paperless, Mold Resistant Drywall  Kohler Generator (or)  Pre-Wire System for Generator

17 Seeing IS Believing …

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19 Innovation Before the Storm