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Less than three months before the collapse of the Champlain Towers South condo complex, the president of the condominium association warned in a letter that the damage in the building had "gotten significantly worse" since it was highlighted in a 2018 inspection.

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Dear Neighbors, Many of the questions coming to the office ahead of next week's Special Meeting to discuss the proposed Special Assessment of $15,000,000 are not specifically related to the Special Assessment. We have received questions pertaining to the need for the work, the Engineer's estimates, the 20% contingency, financial oversight of construction expenses, and the like. These are all good questions, and all of them have been discussed and presented over the past year- some many times. All the presentations and meeting minutes are available on Concierge Plus for your review. The purpose of next week's meeting is only to discuss the proposed Special Assessment. This seems a good moment to give a summary of our progress to date, so that we can focus on the Special Assessment itself at the meeting. As this work has become so all-consuming for us, this summary could perhaps be called a report on the "State of the Building". SO FAR: 1. The 40-year building inspection is required by law and covers life/safety issues such as structural and electrical. An engineer, Frank Morabito, was hired in 2018 to do an inspection of the building and provide an initial estimate of what would be required in terms of the 40-year inspection, which comes due later this year. Among other things, that estimate indicated that the concrete damage observed would begin to multiply exponentially over the years, and indeed the observable damage such as in the garage has gotten significantly worse since the initial inspection. When you can visually see the concrete spalling (cracking), that means that the rebar holding it together is rusting and deteriorating beneath the surface. Please note that the original scope of work in the 2018 report has expanded. The concrete deterioration is accelerating. The roof situation got much worse, so extensive roof repairs had to be incorporated. Other previously identified projects have been rolled under the main project. New problems have been identified. Also, costs go up every year. This is how we have gone from the estimated $9,128,433.60 cited in Frank Morabito's 2018 report, to the much larger figure we have today. 2. A committee was formed to evaluate possible Supervising Engineers to oversee this work. That committee recommended Frank Morabito as the Engineer. Morabito was selected as our Engineer by the Board in 2019. 3. A Manager with 40-year experience and an engineering background was hired (Scott Stewart). The above work was accomplished over a 2-year period through several different Boards. The process has continued with the current Board: 4. Contracted Morabito as the Supervising Engineer. He identified additional professionals such as landscape architect, architect, and MEPF (mechanical/electrical/plumbing/fire)

engineer. Those professionals are identified by name in his contract, and their professional fees are accounted through Morabito. We are currently working with a different MEPF engineer than originally identified. 5. Morabito carried out a much more detailed survey of the property. He recommended the work proceed in stages: a. An initial exploration of the concrete and driveway soffit. This was bid out and done last year. In addition, all balconies were checked, and loose stucco and concrete knocked off the building wherever observed, for safety reasons. It was also found that a firewall is missing between the lobby and front driveway, which must be put in. This firewall is an example of a new issue not identified in the original, more general 40-year assessment in 2018. b. Roof repair and OSHA roof anchor placement (these are tiebacks and safety line points for people on the scaffolding and are required). This work will begin in the next few weeks. It includes other previously identified and necessary work such as AC disconnects, electrical on the roof, and exhaust fans. The anchors will remain in place permanently and can be used by window washers or with future scaffolding if we do other projects. A moisture survey was done to evaluate the roof last year, showing the need for extensive repairs. For most efficient project management and to contain certain costs (value engineering), the roof was rolled under Morabito's supervision. The roof is part of the 40-year inspection. c. The main project involving concrete and waterproofing and all related projects. Phase 2c is by far the largest phase. The bid package is being worked on now. We expect to have a Board meeting to discuss various design and code issues on April 20, 2020. Morabito is expected to present the Phase 2c bid package to the Board at a meeting on April 22, 2021. We hope to conclude bidding and open bids at a meeting on June 8, 2021. 6. The Board identified a lender to accomplish this multi-year project. The loan has been through underwriting, the paperwork is in process and according to the Commitment Letter from Valley, must close by April 25. This is the second lender we have worked with. (There was a previous deal discussed with Banco Popular for a number of months, and a Special Assessment conversation to match, but that deal did not go through.) 7. We have now arrived at the Special Assessment to pay for the work and the loan from Valley. In addition, we have reviewed and updated internal administration to cope with this project: • Implemented a sealed blind bid process • Outsourced bookkeeping and accounting services • Added electronic voting and survey capability • Hired an assistant to help with the workload in the office so the Manager's primary focus can be these projects • Instituted more formalized and firm collection procedures through Becker, our law firm

Other considerations: • Sprint/T-Mobile is doing work on their equipment we must coordinate with, and hope to see accomplished either before our roofers get up there, or cooperatively. Cooperating with any of their work is a requirement of our contract with Sprint. • Valley, our lender, requires 100% of our banking business. We will begin moving our accounts over this month. Since Valley belongs to both the ICS and CDARS programs, all our money there will be FDIC insured. The simplicity of one bank will allow easier tracking of all bookkeeping. Given the amount of money involved, I think all will agree that simplicity and clarity are good things. • There has been a lot of discussion about the shutters and windows on individual units. Depending on the age, condition and code compliance of the shutters and windows on your units, it is possible that you, the unit owner, would have to pay to replace the windows, sliders, and/or shutters on your unit. This has been discussed multiple times. There will be much more specific conversation on this topic in the coming weeks as information is developed. THE EXPENSES The estimated budget from Morabito for the work INCLUDES the following: 1. 40-year and related repairs. Because so much of the needed concrete/waterproofing work is underground, we must pull up almost the entire ground level of the lot to access the areas that require repair. That means we have to put it all back at the end. This includes the pool deck, the entire entry drive and ground level parking, north side contractor parking, and planters/landscaping. Electrical work and plumbing are involved almost everywhere. Balcony concrete requires repair/waterproofing, and the railings require repair. And- we have to bring all this up to current code when repairs are completed. 2. All common area windows and doors, which are at the end of their useful lives. 3. Generator, fire pump, and water pumps. This was originally a separate project and assessment, but was rolled into the larger project last year for more efficient project management. We have to bring in a gas line for the new generator. • Conducted Member votes to: o identify exterior paint color scheme o combine straight-line Reserves into a pooled system for simplicity o waive Reserve contributions for 2021 while we understand the full financial impact for our Members o identify any additional, elective projects the Membership wanted to do such as renovating the BBQ area or upgrading the gym. None of these additional projects passed and you are not being assessed for them.

This is by no means a complete summary. Please review the Engineer's estimate, which is on the website and attached to this letter. As we go through the process, estimates become more detailed and more accurate but will not be firm until project completion. For planning purposes, we need to use the estimates provided by Morabito. His experience and expertise in this area are part of his job, and as our licensed engineer he has oversight on the job as a whole. A lot of this work could have been done or planned for in years gone by. But this is where we are now. 4. Additional work that is needed in the building. An example of this would be the shade sail that blew away in a hurricane; the frame is at the end of its life anyway. There is no point in replacing it right now. Therefore, it is included in the project to be done at the proper time, when the preliminary work is completed. Access controls on the pool gates that have been unreliable for years and clearly require replacement would be another example. There are multiple smaller items such as these throughout the property. Also, the Party Room AC compressor and air handler and miscellaneous duct work had been approved and assessed for, but postponed until now. The storage units are in poor condition, including some which are rotted and/or soaked in sewage from repeated pipe breaks over the years. 5. Soft costs like parking, permits, legal fees, etc. We will be more fully discussing parking in the near future. About a third of the parking spaces in the garage will be blocked at a time for concrete repairs, and upper deck parking will not be available for long periods of time either. More to follow on this. We must identify an alternate location for our residents and guests to park, and are investigating possible locations. Offsite parking also would include security and possibly extra valets. 6. Performance bond, which is tied to the cost of the bid/project. It is also related to the credit status of the contractor and may vary between 2-3% depending on the vendor. This is added at the end of the bid separately because it is based on these factors, but it all goes to the bottom-line number of an individual bid. At the opening of bids in each phase of the process, Morabito will present a bid analysis to the Board and this cost is part of the discussion, as it was when the Board selected a vendor for phase 2b, the roof project. 7. A 20% contingency. The 20% has been recommended by Morabito because of the age of the building and the huge scope of work that is needed. If there are change orders, different quantities, or higher bids than expected we must be able to deal with it. All of those questions are covered by the contingency. Inflation, increasing transportation cost and increases in cost of goods generally is already being built into bids. The longer we wait, the higher the bids will be. As an example of why we have a contingency, there have been seven change orders to date totaling $245,990. We do not expect change orders to continue at this rate, although they can happen at any time. Also, when performing any concrete restoration work, it is impossible to know the extent of the damage to the underlying rebar until the concrete is opened up. Oftentimes the damage is more extensive than can be determined by inspection of the surface.

The estimated budget from Morabito DOES NOT INCLUDE the following: 1. Needed interior repairs (formerly known as "The Hallway Project") including carpet, paint, unit door locks, baseboards, crown molding, etc. We also need to finish the last piece of the elevator replacement project from several years ago, which is the refurbishing of the elevator car interiors. This work has been planned and discussed for many years now. This work was deferred until the proper moment in the large project, but it still has to be done. We must upgrade our lighting in the residence hallways for the 40-year inspection. That can be included in the 40-year estimate. The rest is additional cost above the $14,980,117.88 estimate from Morabito. The proper time for most of this work is after the fire exit doors are changed (sealing the building envelope on the residence floors), and after the lighting work is done, so likely in 2022. Some of these items may require Member vote on material alterations such as color changes etc. These votes will be held as needed, as we progress towards the various projects. 2. Engineering fees. $546,900 estimated plus any additional engineering services not specified in the contract, which are billed hourly (change orders). We have final numbers for the portions of the work that have already been completed- Phase 2a, the concrete exploration. Everything else remains an ESTIMATE. The final exact cost of the total project will not be known for years. We must work with estimates. Therefore, the estimates we are working with are: Engineer's Project Estimate $14,980,117.88 Engineering Fees Estimate $546,900 Hallway Work $722,077.62 Total needed for all projects: $16,249,095.40 THE MONEY: We have some cash on hand: Special Assessment 2020 began life as SA2016 for the Hallway Project. Some money from this fund was repurposed in 2019 to create the fund for the generator. A few months ago, the current Board repurposed the remaining money as SA2020, to give us some cash to get our projects launched while working on the bank loan. This money will be used BEFORE accessing the

credit line; that will delay the moment we have to start borrowing/incurring interest charges. The balance in this fund according to the January 2021 balance sheet is $247,724.74. When these funds are depleted, this Special Assessment will be closed out. Special Assessment 2019 was done for generator, fire pump, fuel tank and some smaller items. It was created partly by repurposing some of the hallway money, and the rest through assessing the Members directly. The projects connected to this assessment have been rolled into the larger project for efficiency and are still pending. A few months ago, the current Board repurposed this money, again for cash flow reasons while the bank loan is still pending. This money will be used BEFORE accessing the credit line; that will delay the moment we have to start borrowing/incurring interest charges. The balance in this fund according to the January 2021 balance sheet is $459,279.22. When these funds are depleted, this Special Assessment will be closed out. Reserves as of the January 2021 balance sheet are $777,435.22. Some of this money ($221,335.66) is segregated as an elective Reserve fund for our insurance deductible. This leaves $556,099.56 in statutory (required by law) Reserves. As it will be difficult or impossible to get another loan for some years after this bank loan closes, this Board feels it would be inappropriate to spend our Reserves for these projects. We need to conserve some cash in the event of an emergency. So, the total cash on hand for our projects is: SA2020 $247,724.74 SA2019 $459,279.22 TOTAL CASH ON HAND $707,003.96 There are specific procedures outlined in the bid documents and vendors’ contracts regarding billing/payment and several layers of oversight before any bill is paid or any draw authorized by the bank. The bank has internal procedures as well: • The contractor submits bills which must be supported by documentation. This is above and beyond the physical inspections of the work which are ongoing and are done by the Engineer, the Town, and the Manager. The bank may also send an inspector. • The Engineer reviews every bill and may deny it or request further documentation before passing it on. Once satisfied, the Engineer signs and seals the documents and forwards to us. • It is reviewed by the Manager, who generates a check request including all the documentation. • All check requests are signed by two Board members. • The bookkeeper (at Sharma and Associates) will review the bills and check requests to be sure that no bills are being paid more than once.

• All checks are signed by two Board members. We will have a pool of four Board members who are check signers and will review all bills and checks requests. This is our normal procedure for all bills at CTS; which particular Board members review any given bill or check request is typically a function of their availability at the time. • Any draws on the line of credit must be reviewed with all documentation by the bank according to their internal procedures prior to releasing any money, which will be held in a segregated account. • All expenditures and bank draws will be reported monthly to the Membership as part of our financials. In terms of the project, our cash needs are: PROJECT ESTIMATE $16,249,095.40 CASH ON HAND -$707,003.96 AMOUNT NEEDED FOR ASSESSMENT: $15,542,091.40 In Conclusion For those who wanted a better understanding of the projects, I hope this helps. For those who believe we are assessing too much, this shows that we are actually under-assessing a bit according to estimates. For those who wanted to understand what we are doing with current funds, hopefully that is clearer now. For everyone, I acknowledge that we are talking about a huge project and a very large assessment. Your Board of Directors is working very hard to bring this project to fruition. We have consulted with our professionals: Engineer, CPA, and attorneys with regard to what needs to be repaired, how much it will cost, and how to finance it. We will continue to do so moving forward. There are many moving parts to this project. We have covered so much ground already to get the project rolling, it's not surprising everyone is still asking about those items. Everything reviewed in this letter has been publicly presented, discussed, and voted on as necessary. We have discussed, debated, and argued for years now, and will continue to do so for years to come as different items come into play. Other than the future meeting dates, none of this information is new- my hope was to provide a relatively quick summary document to avoid having to constantly search the website for information. I’ve attached copies of the project estimate, hallway estimate, engineer's contracted fees, and the January 2021 balance sheet for your reference. I wish everyone the best, and look forward to seeing you all next week. Sincerely, Jean Wodnicki President, Board of Directors

MORABITO CONSULTANTS, INC. STRUCTURAL ENGINEERS PARKING CONSULTANTS 206 Via Condado Way, Palm Beach Gardens, FL 33418-1701 40 YEAR REMEDIATION REPAIRS TO CHAMPLAIN TOWERS CONDOMINIUM ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST Summary 10/15/2020 MC_CTS-40 YrRemediation Estimate.xlsx ITEM NOTE Unit Price Total Estimate A B B-M С Estimated PROJECT REPAIR ITEMS AND SCOPE ity Mobilization, Demobilization, General Conditions Subtotal Bid Package IIB: New Roof Membrane and OSHA Suspension Anchors Subtotal Roof Mechanical, Electrical Plumbing and Fire Façade, Balcony and Railing Repairs Subtotal Entrance, Plaza & Pool Deck - New Pavers & Waterproofing Subtotal Garage and Underside of Pool - Structural Repairs Subtotal Entrance, Plaza & Pool - Planter Landscaping & Waterproofing Subtotal Entrance, Plaza & Pool Deck and Garage - Miscellaneous Repairs Subtotal Pool & Spa Repair and Finishes Subtotal D E $1,369,233.28 $850,315.00 $157,444.00 $4,006,620.00 $2,128,579.50 $168,585.00 $1,224,807.50 $329,781.50 $289,200.00 $927,300.00 $727,091.85 F G H M S 40 YEAR REMEDIATION REPAIRS ESTIMATE SUBTOTAL CONTRACTOR'S PERFORMANCE BOND (with Labor and Material Clauses) ENGINEER'S CONTINGENCY AND INFLATION ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST 3.00 % 20.00 % $12,178,957.63 $365,368.73 $2,435,791.53 $14,980,117.88 Page 1 of 6 18217 - Remediation of the Champlain Towers South Condominium MORABITO CONSULTANTS, INC.

MORABITO CONSULTANTS, INC. STRUCTURAL ENGINEERS PARKING CONSULTANTS 206 Via Condado Way, Palm Beach Gardens, FL 33418-1701 12/08/2020 SS 40 YEAR REMEDIATION REPAIRS TO CHAMPLAIN TOWERS CONDOMINIUM ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST ITEM ITEM NOTE PROJECT REPAIR ITEMS AND SCOPE Estimated Quantity Unit Price Total Estimate А 1 2 TI LS LS LS LS 3 LS LS 4 LS LS Mobilization, Demobilization, General Conditions MOB Mobilization: Includes mobilization of project personnal and materials tolon the jobsite DMOB Demobilization: Includes demobilization of project personnal and materials from/on the jobsite GC General Conditions: Includes Project Management, Phasing, Traffic Control, Drone Imagery, Swing Stage/Boom Lift/Rolling Scaffold, Overhead Protection, Supervision, Etc. SAB Complete Field Survey of Exterior, Patch Logs and Prepare Digital As-Builts: Includes sounding and field marks in chalk for review by MC Mobilization, Demobilization, General Conditions Subtotal Bid Package IIB: New Roof Membrane and OSHA Suspension Anchors Remove Existing Roof Components. Includes removal of the existing gravel & flashing, and removal of the total RERM roof system in areas of excessive moisture. New roof membrane with a 10-Year Warranty: Includes replacement of the total roof system in areas of excessive NRM moisture, installation of new layer of coal tar roofing over the existing roof system, replacement the existing perimeter flashings, add/raise exterior roof scuppers and install new gravel. A $1,369,233.28 B 5 SF ISF 6 SF /SF SF /SF EA EA 8 9 EA EA EA EA 7 RTUR RTU Stands & Electrical Connections: Replacement of RTU aluminum stands in all roof areas of excessive moisture which includes replacement of all electrical, refrigerate runs and other RTU connections. New Permanent Column Anchor for Roof Suspension: Includes fabrication & installation of new anchorages and CA repair of roofing/stucco finish New Permanent Soffit Anchor for Roof Suspension: Includes fabrication & installation of new anchorages and SA repair of stucco finish 10 PRA New Permanent Posted Roof Anchor for Roof Suspension: Includes fabrication & installation of new anchorages and repair of roofing B Bid Package IIB: New Roof Membrane and OSHA Suspension Anchors Subtotal B-MRoof Mechanical, Electrical, Plumbing and Fire H-ACE A/C Compressor disconenects - Replace H-Elec Electrical conduts and disconects for ventilation fans not peroperly mounted to roof. H-Elec Broken conduts and exposed wiring H-Elec Light fixtures broken - insufucant lightg H-Elec Open juction boxes - Replace with Nema 4x Junction box $850,315.00 EA EA Lot EA EA EA EA Lot EA EA EA EA Recreation Room Existing AHU-8/CU-8 are at end of useful life. AHU has Rust at base of unit. H-AC Original Weather King model installed when building was built. Replace air handler and codesign unit 10-ton system. Dual circuit and variable speed fan for part load control. Motorized outside air damper for unoccupied cooling. H-Mec VFD Garage ventilation fans. Add new supply/ exhaust. CO Detection Roof toilet exhaust fans: Only 4 out of the 16 roof exhaust fans for the toilet exhaust risers are H-Mec working. EF-1 is missing its weather cap completely. EA EA EA EA $157,444.00 SF ISF SF ISF SF /SF LF /LF CF ICF SF /SF LF /SF LF /LF B-M Roof Mechanical, Electrical, Plumbing and Fire C Façade, Balcony and Railing Repairs 11 ST Topside Surface Slab Spall Repair: Detail ST - Includes shoring, prep, concrete (up to 4" thick), rebar, & sealant 12 SF Full Depth Slab Repair: Detail SF - Includes shoring, prep, concrete, rebar, & sealant 13 SU Underside Concrete Slab Spall Repair: Detail SU - Includes shoring, prep, concrete (up to 4" thick), & rebar 14 SE Concrete Full Depth Slab Edge Repair. Detail SE - Includes shoring, prep, concrete, rebar & sealant 15 CS Concrete Spall Repair on Existing Columns and Walls: Detail CS - Includes shoring, prep, concrete & rebar 16 ELC Epoxy/Sand Leveling Coat on Balcony Slabs: Includes flood testing/marking of balcony slabs to identify areas of ponding, surface prep and installation of epoxy/sand mixture to eliminate ponding 17 NJS New Joint Sealant at New Concrete Cracks: Detail JS - Rout and seal new cracks with joint sealant Remove/Replace Joint Sealant at all Masonry/Stucco Walls to Metal Frames: Detail 18 RJS Replace linstall joint sealant to assure a water-tight condition 19 RFD Replace Stair Exterior Fire Doors: Includes removal of existing doors, strengthening of jamb/head masonry walls, installation of new doors, and patching of stucco as required 20 EI Pressure Injection of Cracks with Low-Viscosity Epoxy Adhesive: Detail El - Includes epoxy crack injection measured on one side only Remove Existing Balcony Tile (1st layer): Includes full removal and disposal of existing tile and setting bed down 21 DBT to the concrete structure. If tile extends under sliding glass doors/windows, the tile demolition shall stop at the inside face of the door/window. Remove Existing Balcony Tile (2nd layer): Includes full removal and disposal of existing tile and setting bed down 22 DBT2 to the concrete structure. If tile extends under sliding glass doors/windows, the tile demolition shall stop at the inside face of the door/window. 23 Temporary Weather Wall: Includes design, installation & removal of temporary weather wall on inside of units to TWW protect unit contents during concrete repairs and installation of new sliding glass doors/windows. New Traffic Bearing Waterproofing Membrane (Residential Balconies): Includes surface prep, full system 24 NWM installation and 5 year warrantee EA EA LF ILF SF /SF SF ISF LF /IF SF /SF Page 2 of 6 18217 - Remediation of the Champlain Towers South Condominium © MORABITO CONSULTANTS, INC.

MORABITO CONSULTANTS, INC. STRUCTURAL ENGINEERS PARKING CONSULTANTS 206 Via Condado Way, Palm Beach Gardens, FL 33418-1701 12/08/2020 SS 40 YEAR REMEDIATION REPAIRS TO CHAMPLAIN TOWERS CONDOMINIUM ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST ITEM NOTE PROJECT REPAIR ITEMS AND SCOPE Estimated Quantity Unit Price Total Estimate 25 SF ISF 26 SF /SF 27 LF /LF 28 New Facia Traffic Bearing Waterproofing Membrane (Residential Balconies): Includes surface prep, full system NFWM installation and 5 year warrantee MWR Partial Depth Masonry Block Wall Repairs at Exterior: Detail MWR - Includes sawcut, demo, prep, and approved repair mortar Block Wall Joint and Crack Repairs Under Stucco: Detail BR - Includes routing & tuckpointing of masonry cracks BR & joints RFS Remove Balcony Facia Stucco: Includes stucco removal for all balcony facia where slab edge repairs are not required (see SE) SWR Stucco Repair Over Masonry / Concrete Vertical Surfaces: Includes stucco removal, surface prep, touch-up brown coat and new finish coat SSR Stucco Repair Over Concrete Horizontal/Underside Surfaces: Includes stucco removal, surface prep, installation of bonding agent, touch-up brown coat and new finish coat SMC New Stucco Over Masonry / Concrete Surfaces: Includes surface prep, new brown coat and finish coat SF ISF 29 SF /SF 30 SF ISF 31 SF /SF 32 LF /LF 33 LF /LF 34 EA EA 35 EA EA 36 EA EA SSC Repair of Stucco Cracks Less Than 1/8" Wide: Includes cleaning, prep, bonding agent, and stucco coat SLC Repair of Stucco Cracks Greater Than 1/8" Wide: Includes rout, cleaning, prep, and stucco mix BTRS Balcony and Roof Railing - Repair Top Rail Splice Connection: Includes installation of clips, fasteners, silicone sealant and missing members as required BRPR Balcony and Roof Railing - Replace Broken/Bent/Loose/Missing Curved Picket Rail Repair: Includes installation of clips, fasteners and missing members as required Balcony and Roof Railing - Repair Broken Connection of Top/Bottom Rail to Supporting Post: Includes BRBC realignment of top/bottom rails and installation of clips, fasteners and missing connections as required Balcony and Roof Railing - Repair Rusted/Deteriorated Railing Post at Concrete Embedment Includes installation BRPR of new post encasement with oversized aluminum tube and reattachment of bottom rails to tube post with clips and fasteners as required SBR Shore/Support Existing Balcony Railing During Structural Repairs: Includes steel plates, angles, and other material to avoid removal of existing railing systems PBR Touch up Paint Existing Balcony Railings: Includes cleaning, priming and painting Remove and Replace Existing Suspended Soffits Below 2nd Floor Exterior Slabs: Includes fabrication & ESS installation of new lightgage framing, cement board, waterproofing, and stucco to match existing finish. 37 EA EA 38 LF /LF 39 LF ILF 40 SF ISF 41 SF /SF 42 SF /SF 43 EA EA 44 SF /SF с $4,006,620.00 D 45 SF ISF 46 SF /SF 47 SF /SF 48 LF ALF 49 Remove and Replace Existing Suspended Exterior Wall Below 2nd Floor Exterior Slabs: Includes fabrication & ESW installation of new lightgage framing, cement board, waterproofing, and stucco to match existing finish. Install New Suspended Firewall Above Exterior Glass Walls & Doors Below 2nd Floor Exterior Slabs: Includes SFW fabrication & installation new studs, drywall and anchorages. Install New Soffit Vents Below 2nd Floor Exterior Slabs: Includes fabrication & installation of new studs, soffit NSV vents (14 sq.in/ft) and all required stucco repairs to match existing finishes. PTF Clean, Caulk, & Paint Entire Exterior of Building Façade, Soffits, Garage, Planter Walls, South Wall, etc.: Scope shall be as defined in specification section 09 9120, paragraph 1.2 Façade, Balcony and Railing Repairs Subtotal Entrance, Plaza & Pool Deck - New Pavers & Waterproofing DPW Remove Existing Pavers, Stamped Concrete, Topping Slabs, Covered/Abandoned Pavers, and Waterproofing Membrane in Plaza: Includes removal and disposal of existing materials down to structural slab ST Topside Surface Slab Spall Repair: Detail ST - Includes shoring, prep, concrete, rebar, & sealant SF Full Depth Slab Repair (including at new deck drains): Detail SF - Includes shoring, prep, concrete, rebar, & sealant SE Full Depth Slab Edge Repair. Detail SE - Includes shoring, prep, rebar, concrete & sealant EI Pressure Injection of Cracks with Low-Viscosity Epoxy Adhesive: Detail El - Includes epoxy crack injection measured on one side only Install New Crack and Construction Joint Sealant: Detail JS - Includes the routing of cracks & construction joints NJS and installation of sealant RJS Replace Existing Joint Sealant: Detail JS - Includes removal/replacement of joint sealant at existing joints and cracks CJ Install / Replace Cove Joint Sealant at elevated levels: Install new cove joint around columns, along perimeter walls and curbs Install New Concrete Bonded Overlay Sloped to Drain at West Planters and North Expanded Parking: Includes SBT surface prep, dowels, reinforcing and sloped concrete topping (up to 6" thick) SCT Install New Concrete Topping Slab Sloped to Drain at Pavers and Planters: Includes surface prep, dowels, fibermesh, reinforcing and sloped concrete topping (up to 4.5" thick) EPS Install New Concrete Slab at Expanded Entrance Parking Space: Includes surface prep, geofoam, reinforcement, and concrete slab poured with new bonded overlay topping slabs DLD Replace All Deck Drains with new Dual Level Deck Drains Connected to Existing Piping: Detail DLD - Includes new deck drain tied to waterproofing and existing piping system DDP Add / Replace Horizontal and Vertical Deck Drain Piping: Includes new drain piping to new drains and existing pipe risers (piping to match ex.) DWP Install Deck Waterproofing Membrane at all Paver and Concrete Wearing Slab Areas: Includes surface prep, cove base sealant, waterproofing membrane, drainage board and termination details LF /LF 50 LF ALF 51 LF /LF 52 LF /LF 53 SF ISF 54 SF /SF 55 SF ISF 56 EA EA 57 LF /LF 58 SF ISF 18217 - Remediation of the Champlain Towers South Condominium © MORABITO CONSULTANTS, INC. Page 3 of 6

MORABITO CONSULTANTS, INC. STRUCTURAL ENGINEERS PARKING CONSULTANTS 206 Via Condado Way, Palm Beach Gardens, FL 33418-1701 12/08/2020 SS 40 YEAR REMEDIATION REPAIRS TO CHAMPLAIN TOWERS CONDOMINIUM ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST ITEM NOTE PROJECT REPAIR ITEMS AND SCOPE Estimated Quantity Unit Price Total Estimate 59 SF /SF 60 SF /SF 61 SF ISF 62 ΙΕΑ EA D $2,128,579.50 E 63 cs CF ICF 64 SF ISF 65 SP /SP 66 LS LS 67 SF /SF E $168,585.00 F 68 CY ICY 69 SF /SF 70 71 SF SF /SF ISF 72 SF ISF 73 SF /SF 74 75 NPL SF SF /SF /SF 76 EA EA SBP Install Brick/Shellock Pavers in Plaza/Pool/Private Balconies: Includes surface prep, sand/cement setting bedding & new pavers VP Install New Vehicular Pavers in All Drive Isle and Parking Areas: Includes surface prep, sand/cement setting bedding and new pavers DFC Install New Concrete Slab Paving at North Parking Space Areas: Includes surface prep, reinforcement, and concrete slab with a broom finish and silane sealer TS Install New Parking Striping and Handicap Lettering at First Floor Parking Spaces: Includes surface prep and paint striping as noted in the plans and specifications. Entrance, Plaza & Pool Deck - New Pavers & Waterproofing Subtotal Garage and Underside of Pool - Structural Repairs Concrete Spall Repair on Existing Columns, Beams and Walls: Detail CS - Includes shoring, prep, concrete & rebar SU Underside Concrete Slab Spall Repair: Detail SU - Includes shoring, prep, concrete, & rebar TS New Traffic Striping to match existing striping layout (elevated levels): Install new traffic striping after all repairs are complete on elevated levels RG Remove Gutters Under Slab Cracks: Includes removal/disposal of existing gutter, patching and painting of concrete surface Pressure Wash and Clean Entire Garage (all levels): Includes cleaning all garage overhead decks, walls, S.O.G. PW etc, at repair completion Garage and Underside of Pool - Structural Repairs Subtotal Entrance, Plaza & Pool - Planter Landscaping & Waterproofing RPM Remove Existing Landscaping, Planter Soil, Gravel, Drains, Sprinklers and Lights: Includes removal and disposal of all materials down to existing waterproofing RPW Remove Existing Planter Waterproofing: Includes removal and disposal of existing waterproofing materials down to structural slab RPW Remove Existing Planter Walls: Remove existing planter walls as noted in plan and details. NPW Construct New Planter Walls: Includes layout, forms, reinforcement and concrete placement PWR Partial Depth Concrete/Masonry Planter Wall Repairs: Detail MWR - Includes sawcut, demo, prep, and approved repair mortar PWP Install Planter Waterproofing on Concrete Bonded Overlay & Walls: Includes surface prep, cove base sealant, waterproofing membrane, drainage board, root mat and termination detail NPS New Planter Soil & Geofoam: Includes installation of geofoam and new lightweight soil material New Planter Landscaping: includes installation of new planting materials and trees SD Planter Stem Drains: Includes removal/replacement installation of planter stem drains in new/existing planters and garden beds SDP Add / Replace Horizontal and Vertical Stem Drain Piping: includes new drain piping to new drains and existing pipe risers (piping to match ex.) PLS Planter Lighting and Electrical System: Includes installation of new lights and electrical outlets to match existing system PIS Planter Irrigation System: Includes installation of new sprinkler system to match existing Entrance, Plaza & Pool - Planter Landscaping & Waterproofing Subtotal Entrance, Plaza & Pool Deck and Garage - Miscellaneous Repairs CAGW Removal and Replace All First Floor Common Area Glass Windows & Doors: Includes fabrication & installation of NOA approved glass windows and doors that meet the requirements of the 2020 FBC. NHR Construct New Entrance Handicap Ramp: layout, forms, reinforcement and concrete placement for all footings, walls, and slabs along with new perimeter railing and handrail. MWR Partial Depth Concrete/Masonry Wall Repairs Under Stucco At Building Perimeter and South Wall: Detail MWR - Includes sawcut, demo, prep, and approved repair mortar BR Block Wall Joint and Crack Repairs Under Stucco: Detail BR - Includes routing & tuckpointing of masonry cracks & joints SWR Stucco Repair Over Masonry / Concrete Surfaces: Includes stucco removal, surface prep, touch-up brown coat and new finish coat SMC New Stucco Over Masonry / Concrete Surfaces: Includes stucco removal, surface prep, new brown coat and finish coat SSC Repair of Stucco Cracks Less Than 1/8" Wide: Includes cleaning, prep, bonding agent, and stucco coat SLC Repair of Stucco Cracks Greater Than 1/8" Wide: Includes rout, cleaning, prep, and stucco mix SWC New South Wall Concrete Cap: Includes removal of existing concrete cap and installation of new waterproofing, reinforcement, concrete cap, and new stucco surface prep, brown coat and finish coat PTRS Plaza and Pool Railing - Repair Top Rail Splice Connection: Includes installation of clips, fasteners, silicone sealant and missing members as required PRPR Plaza and Pool Railing - Replace Broken/Bent/Loose/Missing Curved Picket Rail Repair: Includes installation of clips, fasteners and missing members as required PRBC Plaza and Pool Railing - Repair Broken Connection of Top/Bottom Rail to Supporting Post: Includes realignment of top/bottom rails and installation of clips, fasteners and missing connections as required Plaza and Pool Railing - Repair Rusted/Deteriorated Railing Post at Concrete Embedment: Includes installation of PRPR new post encasement with oversized aluminum tube and reattachment of bottom rails to tube post with clips and fasteners as required PPDR Paint Existing Pool Deck Railings: Includes cleaning, priming and touch up painting 77 LF /LF 78 LS ILS LS LS 79 F $1,224,807.50 G 80 SF ISF 81 SF /SF 82 SF /SF 83 LF /LF 84 SF ISF 85 SF ISF 86 LF /LF 87 LF /LF 88 SF ISF 89 EA EA 90 EA EA 91 EA EA 92 EA EA 93 LF /LF Page 4 of 6 18217 - Remediation of the Champlain Towers South Condominium © MORABITO CONSULTANTS, INC.

MORABITO CONSULTANTS, INC. STRUCTURAL ENGINEERS PARKING CONSULTANTS 206 Via Condado Way, Palm Beach Gardens, FL 33418-1701 12/08/2020 SS 40 YEAR REMEDIATION REPAIRS TO CHAMPLAIN TOWERS CONDOMINIUM ENGINEER'S ESTIMATE OF THE PROBABLE CONSTRUCTION COST ITEM NOTE PROJECT REPAIR ITEMS AND SCOPE Estimated Quantity Unit Price Total Estimate Entrance, Plaza & Pool Deck and Garage - Miscellaneous Repairs Subtotal $329,781.50 G H Pool & Spa Repair and Finishes 94 LS LS 95 SF /SF 96 97 98 99 100 101 102 103 SF CF SF SF CF LF LF EA /SF ICF /SF ISF ICF /LF ILF EA 104 SF /SF TI 105 106 107 108 109 H M SF LS LS LS EA ISF LS LS LS EA $289,200.00 110 111 CRR Coping Stone Removal and Replacement: includes installation of continuous waterproofing under coping RPF Removal of Existing Pool Finish & Waterproofing: Includes removal of existing finish and waterproofing down to concrete structure. TRR Tile Removal and Replacement to match existing GSR Gutter System Repair CS Pool Walls Concrete Spall Repair (Partial Depth, 5" Max) ST Topside Pool Slab Spall Repair (Partial Depth, 3" Max) SF Full Depth Pool Slab Repair (including at new deck drains) NJS Rout/Seal New Cracks with Joint Sealant (was Crack Repair, Gravity Feed) HAG Hydro-active grout/resin injection of cracks. PD New Pool Drain with Plumbing PW Pool Waterproofing: Includes surface prep, and installation of cementious waterproofing, and flood testing PF Pool Finish: Includes surface prep and installation of Diamond Brite finish PEPE Electrical, Plumbing, New Pump Equipment PCT Collector Tank PRS New Pool Railing and Stairs SLC New LED Pool Lights Pool & Spa Repair and Finishes Subtotal Mechanical, Elctrical, Fire and Plumbing The new added water heater main shall be remove Elec and relocated to a house panel to keep 6 mains maximum Connect the water heater to panel 'HA' in the same room Consolidate to 6 mains. Elec Panel #(HB is rusted Replace with new panel Missing branch circuit identification partially in the following panels: HA Trace existing circuits and provide new Elec labels for each panel Need to hire an electrician to trace the circuits. Elec Pool deck egress illumination insufficient. Provide pool deck turtle friendly lighting (pole lighting) Permit plans required Typical apartment corridors egress illumination insufficient. New corridor lighting There is a corridor improvement Elec project with Saftey areas Permit plans required Missing fire alarm devices from following areas: deck garage, pool deck Add fire alarm devices to the these two Saftey There are no smoke detectors in the tenant storage rooms, apartment meter rooms pool room, typical Add smoke detectors Permit plans required Saftey Missing exit signs in the Gym, main lobby, garage areas, pool deck, first floor corridor Add exit signs. Connect to a generator circuit Exit sign leading to stairwell in typical corridors blocked by wall. Located more than 5 feet from door Relocate exit signs to next to exit door across the corridor There is a corridor improvement project with Saftey Exit signs in typical corridors mounted too low in the path of egress Relocate exit signs to walls across the corridor There is a corridor improvement project with Generator metal cover and day tank are rusted. Replace Elec existing generator with 250KW NG Replace the 40 years old generator new 250KW National gas Elec Open junction box in parking garage provide cover AC's in garage rooms without safety disconnect Elec means Add safety disconnect switches for each unit Elec Meter rooms typical deficiencies rusted bus duct in some areas Remove the existing paint, prepare the surfaces for the application of (2) coats of Elec Improper fire penetration for meter from FPL vault to main electrical room Provide a two hour fire proof Saftey Open holes between different rooms Cover with hole with 1 hour fire rated Elec Low voltage wiring attached to busway relocate low voltage wiring Elec Rusted disconnect switch in generator room replace with new nema 4x Elec Rusted wireway at the roof and damaged disconnect switches replace with new nema 4x and remove unused Elec Open junction box in main electrical room provide proper cover Existing AHU-8/CU-8 are at end of useful life. AHU has Rust at base of unit. Original Weather King model Mech installed when building was built. Replace air handler and codesign unit 10-ton system. Dual circuit and variable speed fan for part load control. Motorized outside air damper for unoccupied cooling. $15, 000 unit, $5,000 labor Mech Garage ventilation fans. Add new supply exhaust Add/increase ventilation. Office AC unit has wood in return air plenum. Stand is built out of wood. Remove wood stand and provide Mech aluminum stand. No storage in AC closet This air handler was replaced this year. The wood stand should have been replaced Domestic water pump is original. It is working but should be planeded for replacement in the next 5 years. Mech Replace duplex domestic water booster pump with new duplex pump system with VFD. (2) 10hp motors New VFD pump motors will operate much more efficeintly. Saftey Page 5 of 6 18217 - Remediation of the Champlain Towers South Condominium © MORABITO CONSULTANTS, INC.

STRUCTURAL REMEDIATION OF CHAMPLAIN TOWERS CONDOMINIUM BREAKDOWN BY PHASE OF ENGINEER'S PROFESSIONAL FEE REVISED TO INCORPORATE OPTIONAL SCOPE OF SERVICES 4/16/2020 CTS_MC-FeeBreakdown.xlsx Page 1 of 1 6 RHEET ROY MORABITO SCOTT D. DYER EAST OF LANDSCAPE COLLINS J. BONFILL & PHASE CONSULTANTS ARCHITECT, PA ARCHITECTUREEXPEDITING ASSOCIATES TOTAL FEE PER PLANNING PA PHASE Structural Landscape Architect Engineer Permit Expediting Architect Surveyor 1 BASE FEE REQUIRED TO MEET 40-YEAR RECERTIFICATION 2 3 Phase IB Hiring of Sub-Consultants 4 $4,500.00 $4,500.00 5 Phase IIA Building Roof Replacement, Selective Demolition, & Initial Structural Repairs 7 Part A $4,000.00 8 Part B $3,800.00 $7,800.00 9 10 Phase IIB OSHA Fall Protection Systems 11 $12,500.00 $12,500.00 12 13 Phase IIC Preparation of Building, Plaza, Level 1 Windows & Garage Repair Documents 14 Windows $4,000.00 $12,650.00 15 Balance $68,000.00 $22,000.00 $40,700.00 $11,000.00 $158,350.00 16 17 Phase In Bid/Permit Phase Services 18 A, Part B $2,500.00 19 ПВ $4,000.00 20 ПС $9,500.00 $2,000.00 $1,500.00 $13,750.00 $33,250.00 21 22 Phase N Construction Phase + Threshold Inspection (Special Inspections - SI) Services 23 These services will be invoiced on an hourly basis for actual time spent 24 HA + IIB Based on a construction schedule of 3 months 25 $37,500.00 26 IIC Based on a construction schedule of 12 months for the Tower and 9 months for the Garage 27 $262,500.00 $11,000.00 $4,500.00 $315,500.00 28 29 Expenses Reimbursable Expenses (Estimate) 30 $15,000.00 $15,000.00 31 32 40-YEAR RECERTIFICATION TOTAL PER CONSULTANT 33 $427,800.00 $47,650.00 $46,700.00 $13,750,00 $11,000.00 34 35 Total Estimated Fee $546,900.00 36 Engineering Services Agreement Page 17 of 21 ="" 13656347v.1

Residence Floors Estimates (Hallway Project) As of 12/9/2020 HALWAY RENOVATIONS TO CHAMPLAIN TOWERS CONDOMINIUM ESTIMATE OF THE PROBABLE CONSTRUCTION COST ITEM NOTEI Estimated Quantity Unit Price Total Estimate LS III $11,126.00 LS $44,504.01 ILS 1LS $11,126.00 $44,504.01 $55.630.02 33 EA 103 EA 33 EA 103 EA 33 EA 103 EA 33|LF EA EA $250.00 JEA $500.00 JEA $135.00 EA $270.00 JEA $550.00 ILF $0.00 $0.00 $8,250.00 $51,500.00 $4.455.00 $27,810.00 $18.150.00 A Mobilization 1 MOB Mobilization - Includes Mobilization/Demobilization 2% 2 GC General Conditions - Including Project Management 8% Mobilization B Doors 1 Resurface doors - Single doors 2 Resurface doors - 2nd door of Double Doors 3 RePainting doors - Single doors (Remove wood trim, sand, prime, paint) 4 RePainting doors - 2nd door of Double Doors (Remove wood trim, sand, prime, paint) 5 Door frame Prime and Paint - Single Door 6 Door frame Prime and Paint - Double Door 7 New lockset - single door 8 New lockset - double doors - False handle for 2nd door. Does not include wing door lock (use existing) 9 New Hinges - Self Closing - Heavy Duty - Single Door (Primary Door, 3 per door) 10 New Hinges - Self closing heavy duty - 2nd door of Double Doors 2 per door 11 Peep Hole 12 Door Bell 13 New Door Casing with prep for (2) lights over doors Single Door 14 New Door Casing with prep for (3) lights over doors Double Door 15 Door Replacement - Single Door 1.5 hr fire rated solid core wood 16 Door replacement - Double Door 1.5 hr fire rated solid core wood 17 Utility Doors and frames-Sand, prime and Paint 18 Utility Doors Hinges 19 Utility Doors Closing Mech 20 103 EA $700.00 EA $72,100.00 408 LF 72 LF 136LF OLF 22 EA 103 EA 14 EA 4EA 33 EA 132 EA 33 EA EA $33.00 LF $33.00 LF $12.00 LF $0.00 LF $160.00 EA $200.00 LEA $1,450.00 JEA $845.00 EA $200.00 JEA $15.00 EA $85.00 EA EA $13.464.00 $2.376.00 $1,632.00 $0.00 $3.520.00 $20,600.00 $19.720.00 $3,380.00 $6,600.00 $1,980.00 $2,805.00 $0.00 $258,342.00 Doors 4 C Hallway 1 Carpet (171.67 LF x 7.5 If pr floor 14,163 SF) + 10% Attic Stock (20% waste) 2 Crown Molding (171.67 LF x2)+7.5 x 3 3 Baseboard Elevator Casing with lights 5 Case work (across from elevator) 6 Mirror 7 Artwork 8 Table 9 Painting of walls 10 Elevator Casing - Sand, Prime. Paint 20.315 SF 4,836 LF 4.836 LF OLEA OLEA OLEA OLEA OJEA 16.480SF 175 SF $6.50 SF $3.50 LF $2.50 LF EA EA EA EA EA $3.65 SF $8.50 SF $132.047.50 $16,926.00 $12,090.00 $0.00 $0.00 $0.00 $0.00 $0.00 $60.153.17 $1,487.50 $222,704.17 Hallway D Lighting 1 Scones 2 Spot lights over doors 2 per single door 3 Spot lights over doors 3 per double doordoor Down lighting (Under A/C duct) (Requires extra wiring) 168 EA 72 EA 309 EA 88 EA $250.00 EA $50.00 JEA $50.00 EA $75.00 JEA $42.000.00 $3,600.00 $15.450.00 $6,600.00 $0.00 $67.650.00 4 Lighting E Demolition 1 Removal of old Crown Molding 2 Removal of old Base Board 3 Dispasal Fee 4 4.836 LF 4,836 LF 1|EA S0.75 LF $0.75 LF $350.00 JEA 5 $3.627.00 $3.627.00 $350.00 $0.00 $0.00 $7,604.00 $611,930.18 $18,357.91 $91,789.53 $722,077.62 Demolition Sub Total CONTRACTOR'S PERFORMANCE BOND (with Labor and Material Clauses) CONTINGENCY AND INFLATION ESTIMATE OF THE PROBABLE CONSTRUCTION COST 3.00 % 15.00 %

Champlain Towers South Condominium Assoc Balance Sheet As of 01/31/21 Account # Description Operating Fund Balances Reserves Other Totals ASSETS 41,913.77 1030 1037 1038 1039 1040 1041 1045 1047 1048 1049 1050 43,307.73 201,949.89 104,209.15 119,859.70 109,304.28 Amtrust Opr (0914] BofA Reserves Checking (3517] BofA Reserves MM (5074] BankUnited Reserves CD [6406] Amtrust Reserves CD [5759] CityNational Reserve CD [1708] Amtrust SA2020A [4364] Amtrust SA2019 [6161] Amtrust SA2019 [6211] Banco Oper [0984] Banco s/Proj[0992] SA2020 Bank United RSV CD [2748] Morgan Stanley (3130] 247,508.16 251,892.04 207,387.18 41,913.77 43,307.73 201,949.89 104,209.15 119,859.70 109,304.28 247,508.16 251,892.04 207,387.18 146,278.25 216.58 34,102.02 164, 702.45 146,278.25 216.58 1051 34,102.02 164,702.45 1055 Total Cash 188,192.02 777,435.22 707,003.96 1,672,631.20

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