i

RESTRICTED APPRAISAL REPORT

OF

REAL ESTATE LOCATED AT THE SOUTHWEST CORNER OF STATE ROAD 50 AND MONTE VISTA

ROAD, LAKE COUNTY, FLORIDA

FILE NO. C080202

DATE OF VALUE

February 5, 2008

PREPARED FOR

Ms. Lessie Campbell PO Box 337

Groveland, FL 34736

PREPARED BY

APPRAISALS INC. OF CENTRAL FLORIDA

690 Montrose Street Clermont, FL 34711

JOHN L. ROCKER, III, MAI, SRA

State Certified General Appraiser No. RZ1678

ii

APPRAISALS OF CENTRAL FLORIDA

John L. Rocker, III, MAI, SRA State Certified General Appraiser License #RZ1678

REAL ESTATE APPRAISERS CONSULTANTS

690 Montrose Street • Clermont • Florida 34711 (352) 394-3490 • (800) 341-6345

FAX (352) 394-8588 E-Mail Address: appraisals@appraisalsofcentralflorida.com

February 5, 2008 Ms. Lessie Campbell PO Box 337 Groveland, FL 34736 RE: Appraisal of real estate located at the southwest corner of State Road 50 and Monte

Vista Road, Lake County, Florida

At your request and authorization, I have prepared an appraisal of the above referenced real property and presented my analysis in the following Restricted Use appraisal report. Use of the restricted use report is limited for use by the client only and my opinions and conclusions set forth in the report cannot be understood properly without the additional information in my appraisal workfile. The purpose of this appraisal was to estimate the value of the fee simple interest. The function of this appraisal was to serve as the basis for asset evaluation purposes.

Data, information, and calculations leading to the value conclusion are incorporated in my appraisal file and summarized in the report following this letter. The appraisal file and report, in its entirety, including all assumptions and limiting conditions, is an integral part of and inseparable from this letter. Based on the analysis, the value of the subject was concluded as follows:

CONCLUSION OF VALUE Appraisal Premise Interest Appraised Date of Value Conclusion of

Value As Is – Light Manufacturing Zoning Fee Simple February 5, 2008 $640,000

As Is - Commercial Zoning Fee Simple February 5, 2008 $1,135,000

Source: Appraisals Inc. of Central Florida HYPOTHETICAL CONDITION: Appraisals Inc. of Central Florida was requested to appraise the subject property as having additional Commercial zoning. Therefore, this appraisal was based on a hypothetical condition that may or may not occur.

mailto:appraisals@appraisalsofcentralflorida.com

iii

This report was prepared in conformance with, Uniform Standards of Professional Appraisal Practice (USPAP) as set forth by the Appraisal Foundation; and in accordance with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

It has been a pleasure to assist you in this assignment and if you have any questions concerning the analysis, please contact us.

iv

CERTIFICATION OF THE APPRAISAL

I certify to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported

assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions, and conclusions.

3. I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment.

4. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

5. My 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.

6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.

7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation, the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute; and this report conforms to the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).

8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

9. John L. Rocker, III, MAI, SRA has completed the requirements of the continuing education program of the Appraisal Institute and/or the State of Florida.

10. John L. Rocker, III, MAI, SRA has made a personal inspection of the property that is the subject of this report.

11. Michael G. Horton, Registered Trainee, License No. RI22680, has fully provided professional real property appraisal assistance to the person signing this report.

12. John L. Rocker, III, MAI, SRA has extensive experience in the appraisal/review of similar property types.

13. John L. Rocker, III, MAI, SRA is currently certified in the state where the subject is located. Respectfully submitted, APPRAISALS INC. OF CENTRAL FLORIDA

John L. Rocker, III, MAI, SRA State Certified General Appraiser # RZ1678

v

SUBJECT PHOTOGRAPHS

TYPICAL PROPERTY SCENE

WESTERLY STREET SCENE OF STATE RAOD 50

(SUBJECT PROPERTY ON LEFT)

SUMMARY OF SALIENT FACTS

Property Location: The southwest corner of State Road 50 and

Monte Vista Road, Lake County, Florida Property Description: 3.26± acres of land area, subject to formal

survey confirmation Owner(s) of Record: Lessie Campbell Zoning: LM – Light Industrial, Lake County Zoning

Authorities Highest and Best Use: As Vacant: Industrial or Commercial development or

any legally permissible use Estimated Exposure Time: 6 - 9 months

CONCLUSION OF VALUE Appraisal Premise Interest Appraised Date of Value Conclusion of

Value As Is – Light Manufacturing Zoning Fee Simple February 5, 2008 $640,000

As Is - Commercial Zoning Fee Simple February 5, 2008 $1,135,000

Source: Appraisals Inc. of Central Florida HYPOTHETICAL CONDITION: Appraisals Inc. of Central Florida was requested to appraise the subject property as having additional Commercial zoning. Therefore, this appraisal was based on a hypothetical condition that may or may not occur.

vi

TABLE OF CONTENTS

VALUE CONCLUSION.....................................................................................................ii CERTIFICATION OF THE APPRAISAL..........................................................................iv SUBJECT PHOTOGRAPHS ........................................................................................... v SUMMARY OF SALIENT FACTS ...................................................................................vi TABLE OF CONTENTS .................................................................................................vii INTRODUCTION............................................................................................................. 8 PROPERTY & LEGAL DESCRIPTION ......................................................................... 10 HIGHEST AND BEST USE ........................................................................................... 11 APPRAISAL METHODOLOGY ..................................................................................... 12 DIRECT SALES COMPARISON APPROACH.............................................................. 13 CONCLUSION OF VALUE............................................................................................ 14 ASSUMPTIONS & LIMITING CONDITIONS................................................................. 15 ADDENDUM ................................................................................................................. 17 A Qualifications B Appraisal Definitions C Map of Subject Property

vii

INTRODUCTION PROPERTY IDENTIFICATION The subject property consists of 3.26 acres of vacant land area at the southwest corner of State Road 50 and Monte Vista Road, Lake County, Florida.

OWNERSHIP AND PROPERTY HISTORY Title to the property is currently vested in the name(s) of Lessie Campbell. There have been no ownership transfers of the property in the last three years.

DATE OF INSPECTION/VALUE The subject property was inspected on February 5, 2008. The date of value was February 5, 2008

DATE OF REPORT The date of report was February 5, 2008.

PURPOSE OF THE APPRAISAL The purpose of this appraisal was to estimate the opinion of market value.

PREMISE OF THE APPRAISAL

The premise of this appraisal valuation is “As Is”.

INTENDED USE/USER OF REPORT

This appraisal is to aid Ms. Lessie Campbell in asset evaluation of the subject property for internal decision making purposes.

PROPERTY RIGHTS APPRAISED The interest appraised represents the fee simple estate.

APPRAISAL DEVELOPMENT AND REPORTING PROCESS/SCOPE OF WORK

The following steps were completed for this assignment:

1. identified the subject property; 2. understood the intended use of the report; 3. applied appropriate appraisal methodology; 4. analyzed the comparable data to arrive at a probable range of value via each approach to

value used in this report; 5. reconciled the results of each approach into a reasonable and defensible final estimate of

value for the subject, as defined herein; and 6. estimated a reasonable exposure time associated with the value estimate. To develop the opinion of value, I performed an Appraisal as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). In this Appraisal, I used the Direct Sales Comparison Approach to value. Furthermore, the conclusion of value reflects all known information about the subject, market conditions and available data.

8

9

I have conveyed this appraisal in a Restricted Use Appraisal report. As such, use of the restricted use report is limited for use by the client only and my opinions and conclusions set forth in the report cannot be understood properly without the additional information in my appraisal workfile.

EXPOSURE TIME Exposure time is not intended to be a prediction of a date of sale or a one-line statement. Instead, it is an integral part of the appraisal analysis and is based on one or more of the following:

• statistical information about days on the market • information gathered through sales verification • interviews of market participants.

The reasonable exposure period is a function of price, time, and use. It is not an isolated estimate of time alone. Exposure time is different for various types of real estate and under various market conditions. Exposure time is the estimated length of time the property would have been offered prior to a hypothetical market value sale on the effective date of appraisal. It is a retrospective estimate based on an analysis of recent past events, assuming a competitive and open market. It assumes not only adequate, sufficient, and reasonable time but also adequate, sufficient, and reasonable marketing effort. Exposure time is therefore interrelated with appraisal conclusion of value.

In consideration of these factors, I have analyzed the following:

• exposure periods of comparable sales revealed during the course of this appraisal; • knowledgeable real estate professionals. •

Based on the foregoing analysis, an exposure time of 6 - 9 months is reasonable, defensible, and appropriate. I assume the subject would have been competitively priced and aggressively promoted regionally.

10

Area & Neighborhood Description. The subject property is located within unincorporated South Lake County, Florida. The South Lake County area is experiencing a rapid growth rate due to the westerly expansion of the Orlando MSA. This positive trend is expected to continue within the foreseeable future. Property Description. The subject property has a generally level topography, and is rectangular in shape consisting of 3.26 acres of land area, subject to formal survey confirmation. Soil conditions appear favourable for development, typical of the area. The subject property does not appear to be located in a flood prone area. Access is good via the south side of four laned, paved, divided, State Road 50 and the west side of 2 laned, paved Monte Vista Road. The site has all utilities available. The subject property is zoned LM, Light Industrial, by the Lake County Zoning Authorities. There was no personal property, trade fixtures, furniture, fixtures or equipment included in this appraisal. According to Lake County Public Records, the subject property is legally described as follows: LITTLE ACRES BEG AT PT ON S LINE OF R/W OF HWY 50 & CENTER LINE OF ST RD S-565-A FOR POB, RUN S ALONG CENTER LINE OF ST RD S-565-A 547.75 FT, W 288.8 FT TO PT ON S LINE OF BLK 4, N'LY TO PT ON N LINE OF BLK 4 THAT IS 288.5 FT W OF POB, E TO POB--LESS R/W OF ST RD S-565-A--PB 6 PG 29

11

HIGHEST AND BEST USE Highest and best use as vacant. Industrial or Commercial development, or any legally permissible use.

12

APPRAISAL METHODOLOGY

In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available.

COST APPROACH The Cost Approach is based upon the proposition the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist few sales or leases of comparable properties.

SALES COMPARISON APPROACH The Sales Comparison Approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons.

INCOME CAPITALIZATION APPROACH The Income Capitalization Approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the Income Capitalization Approach are direct capitalization and the discounted cash flow (DCF) analysis.

METHODOLOGY APPLICABLE TO THE SUBJECT The Direct Sales Comparison Approach is applicable and has been applied to the subject.

13

SUMMARY OF VALUATION & ANALYSIS

Direct Sales Comparison Approach. The following arm’s length, all cash to seller, fee simple, vacant land sales were utilized to estimate the value of the subject property:

LAND SALES ANALYSIS

DESCRIPTION SUBJECT SALE NO. 1 SALE NO. 2 SALE NO. 3 SALE NO. 4 SALE NO. 5 SALE NO. 6

DATE OF SALE

---- 02/2007 11/2007 06/2007 06/2007 05/2007 02/2007

SALE PRICE/SF

---- $ 525,000/$4.16 $1,250,000/$3.28 $1,500,000/$4.41 $2,900,000/$3.14 $700,000/$12.80 $1,700,000/$4.12

LOCATION SW Corner of SR 50 & Monte Vista Rd., Lake Co., FL

SW Corner of E Myers Blvd & Bluff Lake Rd., Mascotte, Lake Co., FL

SE Corner of E Myers Blvd. & S Talbott Ave., Mascotte, Lake Co., FL

NE Quadrant of Crittenden St. & N Main Ave., Groveland, Lake Co., FL

NE Corner of SR 50 & Beverly Dr., Groveland, Lake Co., FL

NW Corner of SR 50 & Green Valley Blvd., Groveland, Lake Co., FL

NE Corner of SR 50 & Timber Village Road Groveland, Lake Co., FL

SITE SIZE (SF) 142,006 126,324 380,714 340,204 924,779 54,492 412,513

ZONING LM, Light Industrial

C-G, General Commercial

C-G, General Commercial

M-1, Light Industrial

M-1, Light Industrial

PUD, Planned Unit Development

C-1, Commercial

ACCESS Good Good Good Average Good Good Good

TOPOGRAPHY Mostly Level

Mostly Level Mostly Level Mostly Level Mostly Level Mostly Level Mostly Level

AVAILABILITY OF UTILITIES

All All But Sewer All But Sewer All All All All

RECORDED ---- 3368/1556 3545/2078 3454/1703 3451/1451 3436/1186 3379/953

MAP OF COMPARABLE LAND SALES

14

CONCLUSION The price per square foot of land area was considered the best unit of comparison to appraise the subject property. Consequently, after considering the economic and physical differences of each sale and applying appropriate quantitative adjustments, we have concluded the opinion of market value for the subject property to be greater than the unit sale price of sales 1, 2, 3, 4 and 6 and less than the unit sale price of sale 5 or about $4.50 per square foot x 142,006 square feet, or $639,027 rounded to; $640,000 We have concluded the opinion of market value for the subject property if zoned Commercial to be greater than the unit sale price of sales 1, 2, 3, 4 and 6 and less than the unit sale price of sale 5 or about $8.00 per square foot x 142,006 square feet, or $1,136,048 rounded to; $1,135,000

CONCLUSION OF VALUE Appraisal Premise Interest Appraised Date of Value Conclusion of

Value As Is – Light Manufacturing Zoning Fee Simple February 5, 2008 $640,000

As Is - Commercial Zoning Fee Simple February 5, 2008 $1,135,000

Source: Appraisals Inc. of Central Florida

15

ASSUMPTIONS AND LIMITING CONDITIONS

1. This is a Restricted Appraisal Report which is intended to comply with the reporting

requirements set forth under Standards Rule 2-2(c) of the Uniform Standards of Professional Appraisal Practice for a Restricted Appraisal Report. As such, it presents no discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use as stated in the report. The appraiser is not responsible for unauthorized use of this report.

2. No responsibility is assumed for legal or title considerations. Title to the property is

assumed to be good and marketable unless otherwise stated in this report.

3. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report.

4. Responsible ownership and competent property management are assumed unless

otherwise stated in this report.

5. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

6. All engineering is assumed to be correct. Any plot plans and illustrative material in this

report are included only to assist the reader in visualizing the property.

7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

8. It is assumed that there is full compliance with all applicable federal, state, and local

environmental regulations and laws unless otherwise stated in this report.

9. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report.

10. It is assumed that all required licenses, certificates of occupancy or other legislative or

administrative authority from any local, state, or national governmental, or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based.

11. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.

16

12. It is assumed that the utilization of the land and improvements is within the boundaries

or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report.

13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any

comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.

14. Unless otherwise stated in this report, the subject property is appraised without a

specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility.

15. Any proposed improvements are assumed to be completed in a good workmanlike

manner in accordance with the submitted plans and specifications.

16. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

17. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.

18. Neither all nor any part of the contents of this report (especially any conclusions as to

value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.

19. The appraiser(s) are competent to complete this assignment in accordance with the

provisions in the Uniform Standards of Professional Appraisal Practice (USPAP). HYPOTHETICAL CONDITION: Appraisals Inc. of Central Florida was requested to appraise the subject property as having additional Commercial zoning. Therefore, this appraisal was based on a hypothetical condition that may or may not occur.

17

ADDENDUM

18

ADDENDUM A

QUALIFICATIONS

19

20

21

22

ADDENDUM B

APPRAISAL DEFINITIONS

23

APPRAISAL DEFINITIONS Definition of Market Value Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) Buyer and seller are typically motivated; (2) Both parties are well informed or well advised, and acting in what they consider their

own best interests; (3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements

comparable thereto; and (5) The price represents the normal consideration for the property sold unaffected by

special or creative financing or sales concessions granted by anyone associated with the sale.

(Source: Federal Register, vol.55, no. 163, August 22, 1990, pages 34228 and 34229; also quoted in the Glossary of the Uniform Standards of Professional Appraisal Practice, 2000 edition.) Definition of Fee Simple Interest According to the 12th Edition of the Appraisal of Real Estate the definition of fee simple estate is: absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Definition of Highest and Best Use According to the 12th Edition of the Appraisal of Real Estate the definition of highest and best use is defined as: the reasonably probable and legal use of vacant land or an improved property that is physically possible, legally permissible, appropriately supported, financially feasible, and that results in the highest value.

24

ADDENDUM C

MAP OF SUBJECT PROPERTY

25

CONCLUSION OF VALUECERTIFICATION OF THE APPRAISAL APPRAISALS INC. OF CENTRAL FLORIDA SUBJECT PHOTOGRAPHSCONCLUSION OF VALUETABLE OF CONTENTS PROPERTY IDENTIFICATION OWNERSHIP AND PROPERTY HISTORY DATE OF INSPECTION/VALUE DATE OF REPORT PURPOSE OF THE APPRAISAL PREMISE OF THE APPRAISAL INTENDED USE/USER OF REPORT PROPERTY RIGHTS APPRAISED APPRAISAL DEVELOPMENT AND REPORTING PROCESS/SCOPE OF WORK EXPOSURE TIME

APPRAISAL METHODOLOGY COST APPROACH SALES COMPARISON APPROACH INCOME CAPITALIZATION APPROACH METHODOLOGY APPLICABLE TO THE SUBJECT

CONCLUSION OF VALUEASSUMPTIONS AND LIMITING CONDITIONS