I have been putting this off as long as possible but the time had come. Tired of water leaking in from my damaged transom. From past inspection I knew the entire transom wood where the motor mounted was soft. Here is what I found when I opened it up. This is what you can look forward too if your transom board is completely enclosed and feels spongy. There was also a 2 inch void all the way across the top part filled with foam, not sure if that was factory. More pictures of the repair in my photostream. Replaced the plywood and used some pieces of oak at the top to fix this mess.
I lowered the drain hole while I was at it. The original location allowed a good amount of water to remain in the well with every rain storm.
20180416_183032 by https://www.flickr.com/photos/66966803@N08/
20180416_182945 by S, 
20180416_182923 by https://www.flickr.com/photos/66966803@N08/