APPRAISAL OF LOCATED AT: 118 Ice House Point Drive Queenstown, MD CLIENT: MIchael J. & Kathy L. Bozek

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1 File No APPRAISAL OF LOCATED AT: 118 Ice House Point Drive Queenstown, MD CLIENT: MIchael J. & Kathy L. Bozek 118 Ice House Point Drive Queenstown, MD AS OF: August 24, 217 BY: Brent F. Lewis

2 File No No AMC MIchael J. & Kathy L. Bozek 118 Ice House Point Drive Queenstown, MD File Number: In accordance with your request, I have appraised the real property at: 118 Ice House Point Drive Queenstown, MD The purpose of this appraisal is to develop an opinion of the defined value of the subject property, as improved. The property rights appraised are the fee simple interest in the site and improvements. In my opinion, the defined value of the property as of August 24, 217 is: $2,5, Two Million Five Hundred Thousand Dollars The attached report contains the description, analysis and supportive data for the conclusions, final opinion of value, descriptive photographs, assignment conditions and appropriate certifications. Brent F. Lewis

3 PURPOSE SUBJECT SALES HISTORY Residential Appraisal Report File No The purpose of this appraisal report is to provide the client with a credible opinion of the defined value of the subject property, given the intended use of the appraisal. Client Name/Intended User MIchael J. & Kathy L. Bozek mike@bozekinc.com Client Address 118 Ice House Point Drive City Queenstown State MD Zip Additional Intended User(s) Intended Use Purpose and Intended Use of Appraisal: The purpose of the appraisal is to estimate market value of the subject property is to establish estimated value for the private purposes. Property Address 118 Ice House Point Drive City Queenstown State MD Zip Owner of Public Record MIchael J. & Kathy L. Bozek County Queen Annes Legal Description Kent Island Estates Bennetts Point Lot26 Section1 (Map77 Grid11 Parcel4) Assessor's Parcel # Tax Year 217 R.E. Taxes $ 13,186 Neighborhood Name Bennetts Point / Queenstown Map Reference QA59D2 Census Tract 816 Property Rights Appraised X Fee Simple Leasehold Other (describe) My research did X did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Prior Sale/Transfer: Date 8/14/1997 Price $457, Source(s) Tax Records Analysis of prior sale or transfer history of the subject property (and comparable sales, if applicable) Prior sales data verified by MLS and/or Court Records. The subject last transferred as an arms-length sale in 1997 at $457,. Comp#1, Bruffs Island Road, last transferred in a non-arms length transaction on 4/2/16 at $. Comp#2, 2925 Cox Neck Road, last transferred in an arms-length vacant sale on 12/5/1 at $475,. Comp#3, 2476 New Post Road, last transferred in an arms-length sale on 7/1/2 for $1,51,. Comp#4, 351 Cinnamon Teal Drive, last transferred in a non-arms length transaction on 6/17/8 at $. Comp#5, 327 Bennett Point Road, last transferred in a non-arms length transaction on 1/12/2 at $. Comp#6, 321 Bennett Point Road, last transferred in a non-arms length transaction 1/12/2 at $. Comp#7, 317 Bennett Point Road, last transferred in a non-arms length transaction 1/13/5 at $. Offerings, options and contracts as of the effective date of the appraisal NEIGHBORHOOD Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing Present Land Use % Location Urban X Suburban Rural Property Values Increasing X Stable Declining PRICE AGE One-Unit 65 % Built-Up Over 75% X 25-75% Under 25% Demand/Supply X Shortage In Balance Over Supply $() (yrs) 2-4 Unit % Growth Rapid X Stable Slow Marketing Time Under 3 mths 3-6 mths X Over 6 mths 125 Low Multi-Family % Neighborhood Boundaries West:Chesapeake Bay North:Chester River East:Rt.313 3, High 2 Commercial 15 % South:Choptank River 35 Pred. 25 Other Vacant 2 % Neighborhood Description See Attached Addendum Market Conditions (including support for the above conclusions) See Attached Addendum Dimensions No plat provided Area 5.32Acre Shape Irregular View Waterfront/Excellent Specific Zoning Classification NC5 Zoning Description Neighborhood Conservation - Residential Zoning Compliance X Legal Legal Nonconforming (Grandfathered Use) No Zoning Illegal (describe) Is the highest and best use of the subject property as improved (or as proposed per plans and specifications) the present use? X Yes No If No, describe. SITE Utilities Public Other (describe) Public Other (describe) Off-site Improvements Type Public Private Electricity X Water X Well Street Macadam X Gas X Sanitary Sewer X Septic Alley None Site Comments IMPROVEMENTS GENERAL DESCRIPTION FOUNDATION EXTERIOR DESCRIPTION materials INTERIOR materials Units X One One w/acc. unit X Concrete Slab Crawl Space Foundation Walls Concrete/ Floors Wd/Cpt/Tile/Avg # of Stories 2 Full Basement Partial Basement Exterior Walls Brick/ Walls DW/Pnt/ Type X Det. Att. S-Det./End Unit Basement Area sq. ft. Roof Surface Shingle/ Trim/Finish Wd/Paint/ X Existing Proposed Under Const. Basement Finish % Gutters & Downspouts Aluminum/ Bath Floor Tile/Vinyl/ Design (Style) Colonial Outside Entry/Exit Sump Pump Window Type InsltdWndws/Avg Bath Wainscot Tile/FG/ Year Built 1974 Storm Sash/Insulated DbleHung/ Car Storage None Effective Age (Yrs) 2 Screens Yes/ X Driveway # of Cars 2 Attic None Heating X FWA HW Radiant Amenities WoodStove(s) # Driveway Surface Macadam X Drop Stair X Stairs Other Fuel Electric X Fireplace(s) # 4 Fence None X Garage # of Cars 2 X Floor Scuttle Cooling X Central Air Conditioning X Patio/Deck Dk,Blc X Porch Scrn,Cvd Carport # of Cars Finished Heated Individual OtherNone X Pool Inground X Other Pier,Ramp X Att. Det. Built-in Appliances P Refrigerator X Range/Oven X Dishwasher Disposal P Microwave P Washer/Dryer Other (describe) Finished area above grade contains: 9 Rooms 4 Bedrooms 3 Bath(s) 4,26 Square Feet of Gross Living Area Above Grade Additional Features Additional features include screened porch, balcony deck, balcony, covered porch, boat ramp, 24x44 inground pool, 195x6 pier with 6x1 T-pier, 2 boat lifts, 4 additional slips and 3 finger piers. Subject property site includes 135' of waterfront, 7' bulkhead and small beach which are not individually adjusted for in market grid section of the appraisal report. Comments on the Improvements Subject property has a functional floorplan. Improvements of good construction and average appeal. Improvements in overall average condition. No external depreciation noted. Produced using ACI software, Page 1 of 4 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

4 SALES COMPARISON APPROACH Above Grade Total Bdrms. Baths Room Count Gross Living Area5 4,26 sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck 1% Crawl EHP/CAC Insltd Wndws 2 Att Garage CP,SP,Blc,BD Kitchen Equipment Upgrade Kitchen Additional Features Pool,Pier,Ramp,4FP Residential Appraisal Report Total Bdrms. Baths ,27 sq. ft. 1% Crawl GeoThermal/CAC Insltd Wndws 2 Att Garage EP,CPs,Pto Upgrade Kitchen Pool,Pier,1FP Total Bdrms. Baths -7, ,2 5,946 sq. ft. 138 SqFt Bsmt EHP/PrpneFA/CAC Insltd Wndws 4 Att Garage 1, 2CP,MltplBlcs,Pto ModernUpgradeKit 21, Pl,Pr,3FP,RecKit File No FEATURE SUBJECT COMPARABLE SALE NO. 1 COMPARABLE SALE NO. 2 COMPARABLE SALE NO Ice House Point Drive Bruffs Island Road 2925 Cox Neck Road 2476 New Post Road Address Queenstown, MD Easton, MD 2161 Chester, MD Saint Michaels, MD Proximity to Subject 1.39 miles SE 5.98 miles NW 4.33 miles SW Sale Price $ $ 2,86, $ 2,2, $ 2,395, Sale Price/Gross Liv. Area $. sq. ft. $ sq. ft. $ 37. sq. ft. $ sq. ft. Data Source(s) Verification Source(s) MLS, Court Records & Visual LA:Sutton / MLS#TA MLS, Court Records & Visual LA:McCracken/MLS#QA MLS, Court Records & Visual LA:Fine /MLS#TA VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple 2/1/215 Fee Simple Cash/239DOM None Noted 1/24/17 Fee Simple Conv/12DOM None Noted 4/21/17 Fee Simple Conv/144DOM None Noted 1/21/16 Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition 5.32Ac+-/ Avg Waterfront/Excellent 2StryCol/ 43 5Ac+-/ Avg WF/Excellent 2StryCtmpry/ Ac+-/ Avg Waterfront/ 2StryCol/Avg Very 14 Very 4, 3, -5, -1, -2, 2.34Ac+-/ Avg Waterfront/VG CapeCod/Avg 16 Very/Updated 4, 15, -1, -2, Total Bdrms. Baths -2, , 3,819 sq. ft. -15, 1% Crawl EHP/PrpneFA/CAC Insltd Wndws -2, 2 Att Garage CP,Deck,Pto -1, ModernUpgradeKit 15, Pool,Pier,5FP Net Adjustment (Total) Adjusted Sale Price of Comparables + Net Adj. Gross Adj. X % 5.3% $ $ 88,7 2,771,3 X + Net Adj. Gross Adj. - 6.% 26.3% $ $ 131,5 2,331,5 X + Net Adj. Gross Adj % 11.5% $ $ 176,35 2,571,35 Summary of Sales Comparison Approach Availability of recent similar nearby sales and listings are extremely limited. Comps chosen considered best available. Other sales considered, including sales larger in acreage, would require adjustments exceeding those utilized. Adjustments considered to be typical for surrounding marketing area. Comp#1 nearest available sale sold within one year and considered to be the overall most similar sale available. Comp#2 nearest and most similar sale available within subject property's home county. Comp#3 considered to be the nearest, most recent and most similar sale available with TGLA smaller than that of the subject property. Comp#4 most recent similar sale available within subject property's home county. Comp#5 sold more than one year from Effective Date, but is the most recent and similar sale available within subject's immediate subdivision. Comps#6&7 considered to be the nearest and most similar current listings available. COST APPROACH TO VALUE Site Value Comments Estimated land value derived from market data, court records, and limited availability of recent similar land sales. -1, 1,35 13, -1, 13, COST APPROACH ESTIMATED REPRODUCTION OR X REPLACEMENT COST NEW Source of cost data Marshall & Swift Residential Handbook Quality rating from cost service Effective date of cost data 6/16 Comments on Cost Approach (gross living area calculations, depreciation, etc.) Cost estimates derived from Marshall and Swift Residential Handbook, local builders and appraiser's knowledge. Square foot measurements taken by appraiser as of the Effective Date of the Appraisal Report. Land value derived from limited available comparable land sales and tax records. OPINION OF SITE VALUE = $ 1,3, Dwelling 4,26 Sq. $ = $ 785,7 Sq. $ = $ KE,SP,CP,Dks,4FP,Pr,Pl,BR 185, Garage/Carport 75 Sq. $ = $ 48,75 Total Estimate of Cost-New = $ 1,18,82 Less 5 Physical Functional External Depreciation $9,33 = $ ( 9,33) Depreciated Cost of Improvements = $ "As-is" Value of Site Improvements = $ 928,49 285, INCOME INDICATED VALUE BY COST APPROACH = $ 2,513,5 INCOME APPROACH TO VALUE Estimated Monthly Market Rent $ X Gross Rent Multiplier = $ Indicated Value by Income Approach Summary of Income Approach (including support for market rent and GRM) Given the lack of reliable rental data to develop a reliable gross rent multiplier the income approach is given little consideration in this report. Indicated Value by: Sales Comparison Approach $ Cost Approach (if developed) $ 2,513,5 Income Approach (if developed) $ Market considered to be the strongest approach to value. Cost and Income approaches considered to be supportive of the market results. In the final reconciliation and estimate of value, Comps utilized considered to be equally weighted and supportive. RECONCILIATION This appraisal is made X "as is," subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed subject to the following: No liability is assumed for the mechanical and structural elements of the subject and no warranty is given or implied. Based on the scope of work, assumptions, limiting conditions and appraiser's certification, my (our) opinion of the defined value of the real property that is the subject of this report is $ 2,5, as of 8/24/217, which is the effective date of this appraisal. Produced using ACI software, Page 2 of 4 May Appraisal Services, Inc. This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

5 Residential Appraisal Report File No FEATURE SUBJECT COMPARABLE SALE NO. 4 COMPARABLE SALE NO. 5 COMPARABLE SALE NO Ice House Point Drive 351 Cinnamon Teal Drive 327 Bennett Point Road 321 Bennett Point Road Address Queenstown, MD Centreville, MD Queenstown, MD Queenstown, MD Proximity to Subject miles NE.48 miles SW.75 miles NW Sale Price $ $ 1,75, $ 2,2, $ 1,995, Sale Price/Gross Liv. Area $. sq. ft. $ sq. ft. $ sq. ft. $ sq. ft. Data Source(s) Verification Source(s) MLS, Court Records & Visual LA:West/MLS#QA MLS, Court Records & Visual LA:Stevens: /MLS#QA MLS, Court Records & Visual LA:Mangold/MLS#QA VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple 2/1/215 Fee Simple Conv/496DOM None Noted 5/8/17 Fee Simple 25, Conv/51DOM None Noted 1/5/16 Fee Simple 237DOM Current Listing Fee Simple -199,5 Site View Design (Style) Quality of Construction Actual Age Condition 5.32Ac+-/ Avg Waterfront/Excellent 2StryCol/ Ac+-/Avg Waterfront/ 2StryCol/Avg Very 8 Very 4, 3, -5, -1, -2, 5Ac+-/ Avg Waterfront/ 2StryCtmpy/Avg 35 3, 5.42Ac+-/ Avg Waterfront/ 2StryCtmpy/Avg 36 3, Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count , , , Gross Living Area5 4,26 sq. ft. 4,592 sq. ft. -28,3 5,959 sq. ft. -96,65 4,729 sq. ft. -35,15 Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck 1% Crawl EHP/CAC Insltd Wndws 2 Att Garage CP,SP,Blc,BD 1% Crawl GeoThermal/CAC Insltd Wndws 3 Att Garage 3CP,MltplDks,Blc -1, 1% Crawl PrpneFA/CAC Insltd Wndws 2 Att Garage CP,Ptos,Dks 1, 1% Crawl PrpnFA/CAC Insltd Wndws 3 Att Garage CP,Deck -1, 12,5 Kitchen Equipment Upgrade Kitchen ModernUpgradeKit -1, Upgrade Kitchen Upgrade Kitchen Additional Features Pool,Pier,Ramp,4FP Pier,1FP 41, Pl,Pr,GstHse,FP -29, Pier,3FP 35, SALES COMPARISON APPROACH Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach X + - $ Net Adj. 28.2% Gross Adj. 44.% $ 492,7 2,242,7 X + - $ Net Adj. 8.% Gross Adj. 2.1% $ 176,85 2,376,85 X + - $ Net Adj. 4.4% Gross Adj. 3.4% $ 87,85 2,82,85 Produced using ACI software, Additional Comparables This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

6 Residential Appraisal Report FEATURE SUBJECT COMPARABLE SALE NO. 7 COMPARABLE SALE NO Ice House Point Drive 317 Bennett Point Road Address Queenstown, MD Queenstown, MD Proximity to Subject.3 miles NW Sale Price $ $ 3,85, $ Sale Price/Gross Liv. Area $. sq. ft. $ sq. ft. $ sq. ft. Data Source(s) Verification Source(s) MLS, Court Records & Visual LA:Arentz/MLS#QA VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-) $ Adjustment DESCRIPTION +(-) $ Adjustment Sale or Financing Concessions Date of Sale/Time Location Leasehold/Fee Simple Site View Design (Style) Quality of Construction Actual Age Condition 2/1/215 Fee Simple 5.32Ac+-/ Avg Waterfront/Excellent 2StryCol/ DOM Current Listing Fee Simple 6.43Ac+-/Avg Waterfront/VG CapeCod/Avg Very 11 Very -385, -2, 15, -5, -1, -2, Above Grade Total Bdrms. Baths Total Bdrms. Baths Total Bdrms. Baths Room Count , Gross Living Area5 4,26 sq. ft. 7,336 sq. ft. -165,5 sq. ft. Basement & Finished Rooms Below Grade Functional Utility Heating/Cooling Energy Efficient Items Garage/Carport Porch/Patio/Deck 1% Crawl EHP/CAC Insltd Wndws 2 Att Garage CP,SP,Blc,BD 1% Crawl EHP/CAC Insltd Wndws 6 Att/Det Garage MltplCP/Dks,EP -4, Kitchen Equipment Upgrade Kitchen ModernUpgradeKit -1, Additional Features Pool,Pier,Ramp,4FP Pr,Pl,3FP,GH,BtHs -4, File No COMPARABLE SALE NO. 9 $ $. sq. ft. DESCRIPTION +(-) $ Adjustment Total Bdrms. Baths sq. ft. SALES COMPARISON APPROACH Net Adjustment (Total) Adjusted Sale Price of Comparables Summary of Sales Comparison Approach + X - $ Net Adj % Gross Adj. 23.6% $ 61,5 3,239,5 X + - $ Net Adj..% Gross Adj..% $ X + - $ Net Adj. % Gross Adj. % $ Produced using ACI software, Additional Comparables This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

7 Scope of Work, Assumptions and Limiting Conditions Residential Appraisal Report File No Scope of work is defined in the Uniform Standards of Professional Appraisal Practice as " the type and extent of research and analyses in an assignment." In short, scope of work is simply what the appraiser did and did not do during the course of the assignment. It includes, but is not limited to: the extent to which the property is identified and inspected, the type and extent of data researched, the type and extent of analyses applied to arrive at opinions or conclusions. The scope of this appraisal and ensuing discussion in this report are specific to the needs of the client, other identified intended users and to the intended use of the report. This report was prepared for the sole and exclusive use of the client and other identified intended users for the identified intended use and its use by any other parties is prohibited. The appraiser is not responsible for unauthorized use of the report. The appraiser's certification appearing in this appraisal report is subject to the following conditions and to such other specific conditions as are set forth by the appraiser in the report. All extraordinary assumptions and hypothetical conditions are stated in the report and might have affected the assignment results. 1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. 2. Any sketch in this report may show approximate dimensions and is included only to assist the reader in visualizing the property. The appraiser has made no survey of the property. 3. The appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made thereto. 4. Neither all, nor any part of the content of this report, copy or other media thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, or the firm with which the appraiser is connected), shall be used for any purposes by anyone but the client and other intended users as identified in this report, nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent of the appraiser. 5. The appraiser will not disclose the contents of this appraisal report unless required by applicable law or as specified in the Uniform Standards of Professional Appraisal Practice. 6. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the appraiser is assumed by the appraiser. 7. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering or testing, which might be required to discover such factors. This appraisal is not an environmental assessment of the property and should not be considered as such. 8. The appraiser specializes in the valuation of real property and is not a home inspector, building contractor, structural engineer, or similar expert, unless otherwise noted. The appraiser did not conduct the intensive type of field observations of the kind intended to seek and discover property defects. The viewing of the property and any improvements is for purposes of developing an opinion of the defined value of the property, given the intended use of this assignment. Statements regarding condition are based on surface observations only. The appraiser claims no special expertise regarding issues including, but not limited to: foundation settlement, basement moisture problems, wood destroying (or other) insects, pest infestation, radon gas, lead based paint, mold or environmental issues. Unless otherwise indicated, mechanical systems were not activated or tested. This appraisal report should not be used to disclose the condition of the property as it relates to the presence/absence of defects. The client is invited and encouraged to employ qualified experts to inspect and address areas of concern. If negative conditions are discovered, the opinion of value may be affected. Unless otherwise noted, the appraiser assumes the components that constitute the subject property improvement(s) are fundamentally sound and in working order. Any viewing of the property by the appraiser was limited to readily observable areas. Unless otherwise noted, attics and crawl space areas were not accessed. The appraiser did not move furniture, floor coverings or other items that may restrict the viewing of the property. 9. Appraisals involving hypothetical conditions related to completion of new construction, repairs or alteration are based on the assumption that such completion, alteration or repairs will be competently performed. 1. Unless the intended use of this appraisal specifically includes issues of property insurance coverage, this appraisal should not be used for such purposes. Reproduction or Replacement cost figures used in the cost approach are for valuation purposes only, given the intended use of the assignment. The Definition of Value used in this assignment is unlikely to be consistent with the definition of Insurable Value for property insurance coverage/use. 11. The ACI General Purpose Appraisal Report (GPAR ) is not intended for use in transactions that require a Fannie Mae 14/Freddie Mac 7 form, also known as the Uniform Residential Appraisal Report (URAR). Additional Comments Related To Scope Of Work, Assumptions and Limiting Conditions Produced using ACI software, Page 3 of 4 This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

8 Appraiser's Certification Residential Appraisal Report The appraiser(s) certifies that, to the best of the appraiser's knowledge and belief: 1. The statements of fact contained in this report are true and correct. File No The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. Unless otherwise stated, the appraiser has no present or prospective interest in the property that is the subject of this report and has no personal interest with respect to the parties involved. 4. The appraiser has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. The appraiser's engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. The appraiser's compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. The appraiser's analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 8. Unless otherwise noted, the appraiser has made a personal inspection of the property that is the subject of this report. 9. Unless noted below, no one provided significant real property appraisal assistance to the appraiser signing this certification. Significant real property appraisal assistance provided by: Additional Certifications: Definition of Value: X Market Value Other Value: Source of Definition: USPAP ADDRESS OF THE PROPERTY APPRAISED: 118 Ice House Point Drive Queenstown, MD EFFECTIVE DATE OF THE APPRAISAL: 8/24/217 APPRAISED VALUE OF THE SUBJECT PROPERTY $ 2,5, APPRAISER SUPERVISORY APPRAISER Signature: Name: Brent F. Lewis State Certification # or License # or Other (describe): State #: Expiration Date of Certification or License: 1/6/218 Date of Signature and Report: 9/6/217 Date of Property Viewing: Degree of property viewing: Interior and Exterior Exterior Only Did not personally view Signature: Name: State Certification # or License # State: Expiration Date of Certification or License: Date of Signature: Date of Property Viewing: Degree of property viewing: Interior and Exterior Exterior Only Did not personally view Produced using ACI software, Page 4 of 4 May Appraisal Services, Inc. This form Copyright ACI Division of ISO Claims Services, Inc., All Rights Reserved. (gpar ) General Purpose Appraisal Report 5/21 GPAR14_

9 ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: Purpose of Appraisal Purpose and Intended Use of Appraisal: The purpose of the appraisal is to estimate market value of the subject property for market decisions to be mad by owner/client. The intended use of this appraisal report is for the client to evaluate the property's estimated market value. The intended user of this appraisal report is the client and.the use of the appraisal by anyone other than the intended user(s) for any purpose other than as stated is prohibited. Neighborhood Description Housing in subject's surrounding marketing area is considered to be diverse in regards to age, style, quality and appeal. Subject market is water oriented, a market factor that typically appeals to potential buyers. Subject is considered to be within 3 Miles+- of Washington- Baltimore metropolitan employment and shopping. Subject has average access to local schools, employment, services, shopping, etc. No adverse factors noted affecting the value or the marketability of the subject property. Neighborhood Market Conditions Though there stable market factors, general recent market statistics provide inconsistent, conflicting and fluctuating data. Number of comparable sales, months of housing supply, median comparable sales price, median comparable list price, comparable sales days on market, listings days on market, number of active listings number of active listings, absorption rates, and percentage of list price to sales price have been relatively stable with various levels of fluctuation over prior 365 days. Extra Comments Availability of recent similar nearby sales and listings are extremely limited. Comps chosen considered best available. Other sales considered, including sales larger in acreage, would require adjustments exceeding those utilized. Adjustments considered to be typical for surrounding marketing area. Comp#1 nearest available sale sold within one year and considered to be the overall most similar sale available. Comp#2 nearest and most similar sale available within subject property's home county. Comp#3 considered to be the nearest, most recent and most similar sale available with TGLA smaller than that of the subject property. Comp#4 most recent similar sale available within subject property's home county. Comp#5 sold more than one year from Effective Date, but is the most recent and similar sale available within subject's immediate subdivision. Comps#6&7 considered to be the nearest and most similar current listings available. Market adjustments based on market data, appraiser's knowledge and paired market analysis. Subject's estimated value is higher than the predominate market value but is not considered to be an under-improvement. Predominant value has little or no impact on subject value and/or marketability. Waterfront values typically exceed the more numerous inland values. Lot size typically result of location, zoning or percolation factors. Parcels competitive with little or no adjustment necessary for individual lot size or excess acreage. No adjustments arbitrarily given for excess acreage. Adjustments based on appraiser knowledge and paired market analysis. Comps#1,5&6 most similar with regards to acreage. Condition adjustments based on paired market analysis, available data, and appraiser's knowledge of the market. Adjustments considered to be typical. Comps#2,3,4&&7 considered to be of overall superior condition in varying regards. Other sales utilized have offsetting condition factors and requires no adjustments. Comps utilized differ somewhat from subject with regards to architectural design. Sales more similar in these regards were available and considered, but adjustments required to reflect other differences would exceed those utilized. Comps utilized best available. Subject's estimated lot value contributes more than 3% to overall estimated value of subject. The ratio is typical of water-oriented market and is in line with assessed values and comparable market data. Waterfront land values Addendum Page 1 of 3

10 ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: often exceed 5% of estimated value. Comps#1-4 located more than one mile from subject property. Nearer sales were available and considered, but adjustments required to reflect other differences would exceed those utilized. Comps utilized best available.it is noted that in subject's water-oriented, rural-in-nature geographical market, it is typical to use comparables up to 1 miles away for properties of similar appeal. TGLA of Comps#1,2,5&7 differs from that of subject by more than 2%. Sales more similar in these regards were available and considered, but adjustments required to reflect other major differences would exceed those utilized. Comps utilized best available and were utilized in the report due to other similarities to the subject property. Comps#1,3&5 sold more than six months from Effective Date. More recent sales were available and considered, but adjustments required to reflect other major differences would exceed those utilized. Comps utilized best available and were utilized in the report due to other similarities to the subject property. Individual adjustments for Comps utilized exceed the typical 5% ratio. Adjustments utilized typical for market. Comps utilized considered best available. Gross adjustments for Comp#2,4,5,6&7 exceed the typical 15% ratio. Adjustments utilized typical for market. Comps utilized considered best available. Net adjustments for Comp#2,4,5,6&7 exceed the typical 1% ratio. Adjustments utilized typical for market. Comps utilized considered best available. Quality of construction adjustments made to reflect market reaction to quality of materials and workmanship in all regards, including, but not limited to, such components as foundation, framing, interior/exterior walls, structural/ mechanical systems, roofing, kitchen and bath fixtures, floor coverings, interior/exterior trim, and cosmetics. Comps#2,4&7 considered to be of overall superior quality construction and require adjustments.ales more similar to the subject in these regards were available and considered, but adjustments required to reflect other differences would exceed those utilized. Comps utilized best available. I have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report, within the three year period immediately preceding acceptance of this assignment. Smoke detectors were present and functional. Mechanical systems appear to be in working order. All utilities were turned on at time of inspection. Subject's electrical system amperage deemed adequate. No noxious odors were observed at time of inspection. No noise problem was observed at time of inspection. Market adjustments based on available data, appraiser knowledge and paired market analysis. Appraisal report may have been digitally signed by appraiser and ed in the Acrobat PDF attachment format. Acrobat PDF format encrypts filer and it becomes "read only". No alterations or adjustments can be made that would misrepresent appraiser's data, reasoning and analysis of report or it's true intentions. Addendum Page 2 of 3

11 ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: Photographs used in appraisal are digital photos utilizing imaging technology. Comparable photographs may be digital photos extracted from area's multiple list system if necessary. These photos, if used, are a true representation of the appearance of the selected comparables at the exact time of sale. Absolutely no alterations were made to these images which would misrepresent the appearance of the subject properties or comparable sales and are true and correct representation. Any exterior and/or interior defects of the subject property and/or comparable sales are noted and addressed in the appraisal report, if necessary. EXPOSURE TIME: The 212 USPAP requires appraisers to include the Exposure time statement in the report. EXPOSURE TIME is defined as an estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. The Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. The Exposure time for the subject property is approximately 18 days. PRIOR SERVICE: Certification 2-3. Appraiser must disclose whether or not they have provided prior services on a property being appraised in the last 36 months from a possible Effective Date of Value. This requirement is stated in Certification in SR 2-3 and can be found on page 29 in the 212- USPAP manual. Appraiser must disclose if they have a current or prospective interest in the property or parties to the transaction I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. COMPETENCY STATEMENT: The appraiser and May Appraisal Service have appraised the subject's property type before. The appraiser and May Appraisal Service Inc. possess the necessary knowledge and experience to complete this report in conformity with the competency provision of USPAP. The appraiser signing on the right, if applicable, supervised the appraisal process, has made a thorough review of the work file including the finished report, has recommended changes where appropriate, and concurs with the analyses and value conclusions stated herein. Addendum Page 3 of 3

12 SUBJECT PROPERTY PHOTO ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: FRONT VIEW OF SUBJECT PROPERTY Appraised Date: August 24, 217 Appraised Value: $ 2,5, REAR VIEW OF SUBJECT PROPERTY STREET SCENE

13 INTERIOR PHOTOS Client: MIchael J. & Kathy L. Bozek File No.: Kitchen Comment: Living Room Comment: Bathroom Comment: #1 Produced using ACI software, INT3AR

14 Client: MIchael J. & Kathy L. Bozek File No.: Inground pool Waterfront / Pier Waterfront Produced using ACI software, PHT

15 COMPARABLE PROPERTY PHOTO ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: COMPARABLE SALE # Bruffs Island Road Easton, MD 2161 Sale Date: 1/24/17 Sale Price: $ 2,86, COMPARABLE SALE # Cox Neck Road Chester, MD Sale Date: 4/21/17 Sale Price: $ 2,2, COMPARABLE SALE # New Post Road Saint Michaels, MD Sale Date: 1/21/16 Sale Price: $ 2,395,

16 COMPARABLE PROPERTY PHOTO ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: COMPARABLE SALE #4 351 Cinnamon Teal Drive Centreville, MD Sale Date: 5/8/17 Sale Price: $ 1,75, COMPARABLE SALE #5 327 Bennett Point Road Queenstown, MD Sale Date: 1/5/16 Sale Price: $ 2,2, COMPARABLE SALE #6 321 Bennett Point Road Queenstown, MD Sale Date: Current Listing Sale Price: $ 1,995,

17 COMPARABLE PROPERTY PHOTO ADDENDUM Client: MIchael J. & Kathy L. Bozek File No.: COMPARABLE SALE #7 317 Bennett Point Road Queenstown, MD Sale Date: Current Listing Sale Price: $ 3,85, COMPARABLE SALE #8 Sale Date: Sale Price: $ COMPARABLE SALE #9 Sale Date: Sale Price: $

18 Client: MIchael J. & Kathy L. Bozek File No.: Bennett Point Road Queenstown, MD MLS photo as original was obstructed Produced using ACI software, PHT

19 FLOORPLAN SKETCH Client: MIchael J. & Kathy L. Bozek File No.:

20 FLOORPLAN SKETCH Client: MIchael J. & Kathy L. Bozek File No.:

21 LOCATION MAP Client: MIchael J. & Kathy L. Bozek File No.:

22 AERIAL MAP Client: MIchael J. & Kathy L. Bozek File No.:

23 Client: MIchael J. & Kathy L. Bozek File No.:

24 Client: MIchael J. & Kathy L. Bozek File No.:

25 File No ********* INVOICE ********* File Number: September 6, 217 Mike Bozek 118 Ice House Point Drive Queenstown, MD Invoice # : Order Date : Reference/Case # : PO Number : Ice House Point Drive Queenstown, MD Appraisal Fee $ 5. $ Invoice Total $ 5. State Sales $. Deposit ( $ 5. ) Deposit ( $ ) Amount Due $. Terms: C.O.D. Please Make Check Payable To: PAID IN FULL - CHECK #3555 Fed. I.D. #: Thank you