612 +/- Acres

13,000’ +/-Shoreline

A L A B A M A

TRANSFORMATION VALUE CREATION STEWARDSHIP

Dear Friend-

In recent years experts have identified Real Estate trends associated with the retiring Baby Boomer generation and how these trends are affecting and will continue to affect recreation properties for the years to come. David Lereah, Chief Economist, National Association of Realtors has stated:

“Because the typical second-home buyer is a baby boomer, it’s likely over the next decade that second-home sales will remain historically high.” Additionally, the renowned demographer Harry Dent has written, “Resort and vacation property is the best investment for this decade.”

Following these trends, from 1998 to 2006, Stan Farrell, working on behalf of an institutional investor, acquired and master planned more than 6,000 acres of resort/second home, destination communities in the Gulf Shores area.

Considering the tremendous buying swing from “beach-front” to “lake-front,” Stan returned to Guntersville, where he spent his childhood summers, to search for a large waterfront development opportunity. Good fortunes pre-vailed and Stan successfully negotiated a purchase agreement for the finest de-velopable tract on the entire 69,000 acre lake. With a fully executed purchase agreement in hand, Stan asked his friend and former business associate Mark Peeples to be his partner in the project. Mark owns MAP Development, a privately held real estate brokerage firm specializing in the ground-up develop-ment, leasing and management of Wal-Mart anchored retail shopping centers. Mark is well known for his redevelopment of Eastwood Mall, and by 2007, MAP Development expects to own and maintain over 500,000 square feet of retail shopping center space.

This large mixed use waterfront project required additional expertise, and in April, 2007 Shannon-Waltchack Investment Real Estate was added to the team. Len Shannon, Derek Waltchack and Richard Randolph began investing in Ala-bama inland lake properties on Lewis Smith Lake, Lake Martin and Bankhead Lake and have now assembled holdings of 516 acres with more than 28,000 front feet of waterfront. Their most recent development, Hidden Falls at Smith Lake, has sold 90% of its waterfront lots in phases 1-2 and in April 2007 released the 3rd phase. Investors in Hidden Falls expect to receive more than a $2 million profit on a $770,000 investment with an 18 month hold. Addition-ally, the partners negotiated a conservation easement on the property which is anticipated to earn the partnership a significant tax deduction.

Our Management Team is complete, and we are now looking for our Investment Team. We set up our investment oppor-tunity with a clear objective to minimize risk, while providing excellent returns for our investors as we acquire and manage this Lake Guntersville tract. We sincerely hope that you will contact us soon about participating in this opportunity.

Lake Guntersville Land Team

MarketCurrent market trends indicate tremendousgrowth in the lake vacation home sector, par-ticularly in southern states, through the end of the decade.

• According to the National Association of Realtors, in 2006 vacation-home purchases were up 4.7 percent from the previous year to a record 1.07 million units. Rural areas, at 29 percent of all purchases, were most popular destination with 24 percent buying in resorts, 22 percent in suburbs and 10 percent in cities.

• Within 100 miles of Lake Guntersville, it is projected that the population of people between the ages of 55-64 will increase more than 20% over the next 5 years.

• A National Association of Realtors study shows that 13 percent of all homes purchased in 2004 were vacation homes. The national vacation home inventory is currently estimated to be 6.6 million.

Lake GuntersvilleLand Team

(left - right)

Len Shannon, Mark Peeples,Derek Waltchack, Richard Randolph

and Stan Farrell.

INDIVIDUALS BETWEEN AGES 45 AND 64

Corresponds to number of births in millions. Estimated based on number of births from corresponding birth years. Does not account for death or migration.

Source: National Center for Health Statistics, U.S. Dept. of Health Services; Permar Inc., 2004

BABY BOOMER

DEMAND

Over the next 30 years, tens of millions of Baby Boomers will enter the prime second and vacation home demographic. Alabama’s inland lakes remains a favorite Baby Boomer destination

Stan Farrell, CCIM: Prior to forming LakeRidge Industries, Stan Farrell was president of Pinnacle Communities, L.L.C., a wholly owned subsidiary of AIG Baker. He was responsible for developing strategy and overseeing all development activities for projects ranging in size from an 8 acre bay front condominium/marina development to a 3,400 acre waterfront mixed-use golf resort. With his 20+ years of Real Estate experience, Stan brings a wealth of knowledge to the partnership regarding site selection & evaluation, land & concept planning, financial analysis & underwriting, project feasibility, market research, phasing, construction and project entitlement. Stan is an Auburn graduate, Top 40 Under 40 honoree and has earned a CCIM designation.

Derek Waltchack: Founder and co-owner of Shannon/Waltchack Investment Real Estate, L.L.C.. Derek began his career at CBC Eyster Properties where he specialized in Tenant Representation on behalf of retailers such as Regal Cinemas, Arby’s, Express Oil Change, Captain D’s and Big 10 Tires. Over time Derek transitioned into more development than brokerage and began develop-ing shopping centers and doing Build to Suits on behalf of his clients. In the past 5 years Derek has developed more than $21 Million in retail projects.

Richard R. Randolph IV: Founder and President of R4 Capital, a business development company. Mr. Randolph is an accomplished entrepreneur who has created several million dollars of Shareholder value in companies over the last 15 years. In 2000, he helped create Airshares Elite, an industry first light aircraft shared ownership company with more than 50 aircraft and 250 customers. And in late 2003 he helped a team of investors purchase Christianity.com, an internet portal which sold to Salem Communications (NASDAQ: SALM) in 2005. Currently Richard is the Managing Member of Clear Creek Partners, L.L.C. and developer of the 90 lot Hidden Falls at Smith Lake develop-ment, and is working on developing another 3 miles of newly acquired Smith Lake shoreline with Shannon-Waltchack Investment Real Estate.

Len B. Shannon, III,CCIM: Founder and co-owner of Shannon/Waltchack Investment Real Estate, L.L.C. . Len has been in the commercial real estate business for over 18 years and started buying in-vestment properties over 12 years ago. He has personally bought and sold over 90 properties and currently manages a personal portfolio of over 50 properties totaling more than $47 million dollars. Len was the 2004 president for the Alabama CCIM chapter and currently serves as an officer with the national CCIM organization. The CCIM designation is held by only 3% of all commercial brokers and is considered the MBA of commercial real estate. He is also author of The Land Book: Avoiding Mistakes when Buying and Selling Commercial Land. Currently, Len specializes in assembling groups to buy undervalued investment properties.

Mark A. Peeples: Owner of MAP Development, L.L.C. and has been in real estate development and leasing over 21 years. With a prima-ry focus on retail development, Mark has brokered and/or developed over $300 million dollars of retail properties. As of 1st Quarter 2007, MAP Development continues to manage over half a million square feet of self-developed retail projects. He has been involved in brokering and owning real estate deals from New York to Louisiana.

While much of his career has been centered around real estate, Mark’s personal passion has been in ministry. A strong Christian, who is publicly open about his faith in Christ, he insists the only written policy he needs in his workplace is the Bible. Mark is an active member of Redstone Church in Birmingham and currently serves as Chairman of the Board for First Priority of Alabama and supports numerous ministries such as Kings Ranch, All Things Possible and Campus Crusade for Christ. He has also been instrumental in the planting of churches and evangelism on the international mission field.

Mark has been married to Nancy Hand Peeples for 18 years and is the father of two; Lauren, age 15 and Anna Cate, age 11. Mark is an avid hunter and outdoorsman, other interests includes fishing, golf and traveling.

MANAGEMENT TEAM

HISTORY

• LakeRidge Industries, L.L.C. was formed to place under contract and purchase the 612+/- acre waterfront tract on Lake Guntersville. • $150,000 non-refundable Earnest money has been committed to the project. • Initial Due Diligence has been performed, including: preliminary environmental studies, extensive market research, detailed develop-ment pro-forma, conceptual master plan drawn by Dungan-Nequette Architects, and for TVA’s benefit, commissioned a detailed study to quantify the economic impact of the proposed project on local and regional areas. • The newly appointed 9 member TVA board imposed a 6 month moratorium preventing any type of application for projects over 5 acres. The moratorium was lifted in March with TVA’s introduction of a new land use plan. • The proposed 612 acre project and it’s utilization of TVA lands secured the political backing of Congressman Robert Aderholt, Gun-tersville Mayor Bob Hembree, County Commission Chairman Billy Cannon, and others. • A group representing Second Generation Biofuels, Inc., approached LakeRidge and agreed to purchase the site for $9,000,000. Negotia-tions continued until LakeRidge received a positive letter from TVA CEO Tom Kilgore and elected to pursue its original purchase plan. • LakeRidge hired Mr. Tim Gilbert, (retired from the TVA in January, 2007 w/35 years experience) as a consultant to TVA and submitted a formal application requesting to change the land use of the 50+/- acre tract from Industrial to Developed Recreation. The submitted applica-tion presented a detailed overview of the proposed private/public development. • Shannon/Waltchack Real Estate joined Stan Farrell and Mark Peeples, becoming a part of LakeRidge Industries, L.L.C. • Ordered Final Environmental Analysis. Formalized loan with Bank. Ordered Appraisal. Ordered Survey. More than $250,000 invested to date in the project including non-refundable earnest money and third party due diligence costs. • Equity Round Closing is set for May 23rd. Land closing Date is June 18, 2007

TRANSFORMATION VALUE CREATION STEWARDSHIP

BACKGROUNDStan Farrell placed under contract and committed $150,000 in non-refundable earnest money to purchase one of the largest remaining waterfront sites on Lake Guntersville. The 612 +/- acres is ideally located on the main channel approximately 6 miles east of the big bridge connecting Guntersville to Buck Island and contiguous to the northern portion of the Guntersville State Park.

The site features old growth timber, over 2 1⁄2 miles (13,000’+/-) of shoreline, spectacular ridge top views and deep water access. The 612 +/- acrea tract currently benefits from a perpetual easement to utilize the TVA tract for industrial purposes. Promising efforts are underway to modify the land use for the 50+/- acre TVA easement from industrial to developed recreation— enhancing the value and enabling us to build pubic marinas and piers.

Out of the 612 +/- acres, there are 275 +/- Acres that are practically level and void of vegetation except at the shoreline. The balance of the site features relatively dense timber land with slopes up to 250 feet above water level that create excellent views of the main lake body. The site was initially developed by Monsanto in the late 1960’s / early 1970’s as a polyester manufacturing plant in which they invested approximately $270,000,000 in infrastructure, site improve-ments and buildings.

The facility includes 300,000 +/- ft. of floor space under roof, a divid-ed median entrance highway and parking areas—much of which will be advantageous to us in our development efforts. Upon closing the plant in the mid 80’s, Monsanto followed proper environmental procedures as it removed all environmental concerns.

A second environmental study was performed by the current own-ers in the 90’s, which deemed the site clean. A newly commissioned environmental report is pending to ensure there is no liability with this land. As we near the closing date, we are continuing the pro-cess of performing intense due diligence dealing with the market-place, government, environmental conditions, engineering, legal title factors and land utilization for anticipated uses.

TRANSFORMATION VALUE CREATION STEWARDSHIP

LAKE GUNTERSVILLEIn 2002 the City of Guntersville was selected as Alabama’s #1 Intimate Getaway in a poll conducted by the Alabama Bureau of Tourism and Travel. Guntersville is one of the most breathtaking and versatile resort areas in the South and one of the finest sport fishing lakes in America. Guntersville rests peacefully at the base of the majestic mountains of the Appalachian Mountain range.

Travelers from all over the world marvel at the spectacular natu-ral beauty and colorful panorama offered by 950 miles of winding shoreline and 69,000 acres of the sparkling, fun filled waters of Lake Guntersville.

The beautiful lake offers excellent boating, fishing, skiing, and swim-ming as well as access to thousands of miles of travel on the Tenn-Tom waterway. In addition to the fabulous water activities, there are also tremendous golfing opportunities in the area. There are four golf courses located in Guntersville: Broken Arrow, Gunter’s Landing, Lake Guntersville State Park and Stoney Mountain.

The Guntersville Public Library, Mountain Valley Council on the Arts, The Whole Backstage and Guntersville Museum and Cultural Cen-ter all offer programs and services that appeal to people of all ages and interests. Theater enthusiasts will marvel at the newly renovated Whole Backstage Community Theater. The Whole Backstage has built a reputation for excellence over the last thirty years and the theater is a vital part of the artistic community.

Lake Guntersville State Park, located seven miles from downtown Guntersville. The State Park offers camping, a newly renovated hotel and conference center (opening late 2007), lakeside cabins, or moun-tain chalets. The State Park also offers visitors a beautiful golf course and several hiking trails. Numerous fishing tournaments are held on Lake Guntersville each year. Over the years, Guntersville has proudly hosted over 30 BASSMASTER events. In the last few years, Gunters-ville has received national publicity, as ESPN airs an hour-long program on the Guntersville Tournaments. In fact, just last month, Lake Gun-tersville was voted as the Number #1 Bass Fishing Lake in the State of Alabama by The Birmingham News.

STATE PARK AND PRESERVE

Property LineWoodsOpen SpaceResidentialMixed-Use CommericalAmentities

Lake Guntersville

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Huntsville, AL 40 MilesBirmingham, AL 70 MilesChattanooga, TN 80 MilesAtlanta, GA 165 MilesNashville, TN 150 Miles

TRANSFORMATION VALUE CREATION STEWARDSHIP

SITE PHOTOS

TRANSFORMATION VALUE CREATION STEWARDSHIP

NEXT STEPS

DEAL STRUCTURE

The total project cost is $10 million. The Management Team expects to sign on $8 million in debt depending on the equity raised from investors.

Please call us for further details.

CONTACT US

Thank you for taking the time to read this information packet and consid-ering being involved with our Lake Guntersville Land Team.

If you are interested in investing, feel free to contact us and we can ar-range any of these suggested next steps:

• Telephone Conference Call• In Person Meeting • More Information—choose any documents from our Appendix

Please contact

Mark Peeples 205-908-9928 map@mapdevelopment.orgStan Farrell 205-266-0426 stan@mapdevelopment.orgLen Shannon 205-222-1664 ls@shanwalt.comDerek Waltchack 205-223-2607 dw@shanwalt.comRichard Randolph 205-879-5517 rich@r4capital.com

Shannon/Waltchack Investment Real Estate2824 Linden AvenueBirmingham, AL 35209205-977-9797 PHONE 205-977-9793 FAX

APPENDIX

Subscription Agreement and Legal

Site Aerial and Fact Sheet

Conceptual Master Plan

Environmental Report (Pending)

Proforma Summary

Survey

Appraisal (Pending)

TVA Application Support Letters Economic Impact Report

TRANSFORMATION VALUE CREATION STEWARDSHIP

SITE AERIAL

1

2

3

1 Guntersville Lake

2 Subject Site 612 Acres

3 Guntersville State Park

TRANSFORMATION VALUE CREATION STEWARDSHIP

TOPO MAP

State Park

Lake GuntersvilleTVA Easement50 +/- Acres13,000’ +/- LF of Shoreline

Subject Site612 +/- Acres Guntersville13,000’ +/-

Lakefront10’ Topo

Countour Lines

Guntersville State

Park Features:

• Resort Lodge • Beach Complex • 18 Hole Golf Course