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NOTES OF CONFERENCE CALL RE: POSSIBLE PATHS FORWARD TO CONSUMMATE SALE OF VERO BEACH ELECTRIC UTILITY SYSTEM TO FPL FEBRUARY 13, 2015 TIME: APPROXIMATELY 10:00 AM — APPROXIMATELY 10:15 AM NOTES PREPARED BY SCHEF WRIGHT PARTICIPANTS: For Vero Beach: Jim O'Connor, Wayne Coment, Jay LaVia, and Schef Wright For FPL: Patrick Bryan, Sam Forrest, and Tim Gerrish For OUC: Chris Browder Schef Wright began the call by stating that the City of Vero Beach appreciates everyone making themselves available for this call, particularly on relatively short notice. He continued by providing an overview of where things stand, including a history of when and how the sale efforts came pretty much to a halt at the beginning of June 2014 when irreconcilable conflicts arose between OUC and FMPA regarding their respective bond covenants. He also mentioned the provision in the Interim Mediation Agreement by the City, the Town of Indian River Shores, and Indian River County pursuant to which the City agreed to attempt to hold discussions with FPL, OUC, and FMPA toward the goal of finding a viable path forward to consummate the sale of the Vero Beach Electric Utility system to FPL. Schef indicated that absent finding a "substitute assignee" to take the place that OUC was originally expected to occupy in taking assignment of Vero Beach's Stanton, Stanton Il, and St. Lucie Project Contracts with FMPA he was unaware of any new or creative ideas for moving the sale forward, but that he and the City welcome any ideas from others. Sam Forrest made comments on behalf of FPL. His first comment was that it didn't seem that much could be accomplished without FMPA in these discussions. Schef Wright stated that FMPA has told him that they will come into the discussions if and when the three parties on this call — Vero Beach, OUC, and FPL — have something definitive to propose or suggest to FMPA that is compliant with Vero's contracts with FMPA. Sam Forrest went on to say that he does not have any creative solutions to offer, but that the ideas of a FMPA buy-back or take -back of Vero's capacity are reasonable from FPL's viewpoint. Chris Browder stated that he feels that this horse has been just about beaten to death, and that as far as he can tell, there are simply no takers for approximately 40 MW of coal capacity (Vero's shares of Stanton and Stanton II under the FMPA Project Contracts). He reiterated that OUC is simply too much of an integrated utility to take the proposed assignments without modifications to the Project Contracts, which would require numerous FMPA approvals. 1 235