Lake Anna: Natural Reflections January 2008 Spotsylvania, Virginia USA

Natural Reflections Overview  $120 Million Project  5 Star Hotel/ Condominium with Lakefront views  Self Contained Infrastructure  Eco-Friendly Design  Luxury Retreat Environment  Unique Opportunity  Experienced Development Team

Natural Reflections Development  Multi-phase Development Project  Strong Operational Partnership (Marriott)  Experienced Development Teaming  Supported by Spotsylvania County  Close Proximity to New Golf Course Community

Natural Reflections Development Location Destination

Natural Reflections Development Aerial Site View

Natural Reflections Development Project Highlights  200 Key Hotel/ Condominium  Conference Center  Fine Dining Restaurant  Entertainment Lounges (specialty VIP lounges)  5 Star Spa  Casual Dining  Sports Bar

Natural Reflections Development  Phase I: Facility construction w/ 120 guest rooms Hotel Amenities Spa Fine Dining Informal dining & sports bar  Phase II: 80 guest rooms Schedule (Conceptual)

Natural Reflections Development Market Study  PKF Marketing Consultant  Fourth Largest Hotel/ Condominium in Virginia  $750 Million market we will capture 5% of the market share  $3.1 Million per month

Natural Reflections Development  Income: $180,120,000  Advance sales price: $1,501,000  Sales: $25,216,800  Advance sales/Marketing cost: $210,140/$17, Project Financing

Natural Reflections Development  Developer Fee: $27,018,000;15%  Land Purchase: $5,592,400  Hard Cost: $90,000,000  Average Unit Hard Cost $750,000  Soft Cost: $18,012,000; 10% Project Financing (Continued)

Natural Reflections Development  Contingency: $14,280,800; 8%  Cash requirements  Start-up: $5,592,400  Investment equity: $26,179,140  ROI: 28.35% = $27,018,000 divided by $31,771,540 Project Financing (Continued)

Natural Reflections Development  Provide temporary staffing in all areas and assist in the hiring of permanent management staff  Training is two phased:  At their national training facility  On-the-job training at the Lake Anna Hotel Hotel Management Plan (Marriott)

Natural Reflections Development  Located in Spotsylvania County, Virginia  Multi-phase development  Hotel/ Condominium  Local Community Support  Key Players  FoxCor,LLC  Marriott  L.W. Associates, LLC  PKF Marketing Consultant  Rinker Land Planning  Campbell, Veltri &Clark Accounting Firm Summary

Natural Reflections Development  Projected Project Schedule  Phase I: 120 room facility  Phase II: 80 rooms  Market Study  $750 million market we will capture 5%  Projected Financing  Investment opportunities Summary Continued

Natural Reflections Development Questions