Together with Nickelback the $5 million loan the total equaled$10

Together with explains nickelback fail the $5 figure you out understand million loan, the total equaled$10 million, a loan-to-value ratio of 55%.Consistent with Jon's full commitment to and confidence in Lennar and itsfuture, he made use of the loan to increase his ownership of Lennar's stock.To date, Jon has drawn down $4 million of the $5 million line. Jon drew down$3 million in November 2007 and used $1,562,560 of these funds to pay for theexercise of options on Lennar stock and the associated income tax. Jonacquired 107,858 shares of "A" shares at $8.235 per share and received 10,785shares of "B" shares. The market price of the stock at the time was $21.33 pershare. The remaining funds were used to reduce the balance of Jon's brokerageaccount which at that time held 395,791 "A" shares and 48,151 "B" shares. Asof this date Jon has 442,243 "A" shares and 48,151 "B" shares in thisbrokerage account. Jon has consistently retained the Lennar shares he hasacquired in recent years.

In April 2008, Jon drew down $1 million to acquire apassive investment in a technology company unrelated to Lennar.Documents relating to Jon Jaffe's loan are available at: VENTURESLennar strategically invests in unconsolidated entities that acquireassets used in its homebuilding operations.Through these entities, Lennarprimarily seeks to reduce and share its risk by limiting the amount of itscapital invested in land, while obtaining access to potential future homesitesand allowing it to participate in strategic ventures nickelback latest . Participants in thesejoint ventures are land owners/developers, other homebuilders and financial orstrategic partners.Lennar has included extensive financial disclosure regarding its JVs onits quarterly conference calls with analysts and investors and in its SECfilings.Since Lennar has not yet filed its Form 10-K for fiscal 2008 that isdue at the end of January 2009, Lennar has provided below preliminaryinformation for fiscal 2008 and 2007.Lennar will be working with analystsand investors in the coming weeks to provide additional information regardingits joint ventures someday somehow . Some other facts regarding its joint ventures are asfollows:-- Each joint venture is governed by an executive committee consisting ofmembers from all of the partners.-- Lennar does not use its investment in one JV as collateral for debt inanother JV.-- There is no cross collateralization of debt between differentunconsolidated entities.-- Funds are never commingled among Lennar's JVs.-- The financial position of Lennar's joint ventures is comprised ofsubstantial equity totaling $2.7 billion.-- Lennar's aggregate equity investment in its unconsolidated jointventures is 29%, compared to its partners' equity of 71%.-- The joint venture debt is secured by joint venture real estate assetsthat are adjusted for impairment on a quarterly basis as necessary.-- The debt financing of Lennar's JVs is primarily non-recourse; in othercases, Lennar and its other partners agree to provide a guarantee.-- Lennar's maximum recourse exposure related to unconsolidated JVs withrecourse debt is $520 million.In these ventures, there are $2.8 billion ofassets and $1.3 billion of equity.-- Lennar's consolidated financial statements are audited annually andreviewed quarterly by a top-tier, independent registered public accountingfirm.As of November 30, 2008, Lennar had equity investments in 116unconsolidated entities, compared to 214 unconsolidated entities on November30, 2007.Summarized financial information on a combined 100% basis relatedto unconsolidated entities in which Lennar had investments that are accountedfor by the equity method was as follows:November 30, 20082007 (In thousands)Assets:Cash and cash equivalents $135,081 301,468Inventories7,115,360 7,941,835Other assets 541,984 827,208$7,792,425 9,070,511Liabilities and equity:Accounts payable and other liabilities$1,042,002 1,214,374Debt 4,062,058 5,116,670Equity of: Lennar766,752 934,271 Others1,921,613 1,805,196Total equity of unconsolidated entities2,688,365 2,739,467$7,792,425 9,070,511Lennar's equity in its unconsolidated entities29% 34%Debt to total capital of Lennar's unconsolidated entities is calculated asfollows:November 30, 20082007 (Dollars in thousands)Debt$4,062,058 5,116,670Equity 2,688,365 2,739,467 Total capital$6,750,423 7,856,137Debt to total capital of Lennar's unconsolidated entities60.2% 65.1%Debt to total capital of Lennar's unconsolidated entities (excluding LandSource) 49.8% 61.1%The total debt of the unconsolidated entities in which Lennar hasinvestments was as follows: November 30,20082007 (In thousands)Lennar's net recourse exposure$392,450 794,934Reimbursement agreements from partners 127,428 238,692Partner several recourse 285,519 465,641Non-recourse land seller debt or other debt 90,519 202,048Non-recourse debt with completion guarantees 820,435 1,432,880Non-recourse debt without completion guarantees2,345,707 1,982,475 Total debt $4,062,058 5,116,670The summary of Lennar's net recourse exposure related to theunconsolidated entities in which it has investments was as follows: November 30,20082007 (In thousands)Several recourse debt-repayment $ 78,547 123,022Several recourse debt-maintenance167,941 355,513Joint and several recourse debt-repayment138,169 263,364Joint and several recourse debt-maintenance123,051 291,727Land seller debt recourse exposure12,170 -Lennar's maximum recourse exposure 519,878 1,033,626Less joint and several reimbursement agreements with Lennar's partners-127,428-238,692Lennar's net recourse exposure$392,450 794,934The recourse debt exposure in the table above represents Lennar's maximumexposure to loss from guarantees and does not take into account the underlyingvalue of the collateral.Although Lennar, in some instances, guarantees the indebtedness ofunconsolidated entities in which it has an investment, its unconsolidatedentities that have recourse debt have a significant amount of assets andequity leader of men . The summarized balance sheets of its unconsolidated entities withrecourse debt were as follows:November 30, 20082007 (In thousands)Assets $ 2,846,819 3,220,695Liabilities1,565,148 2,311,216Equity 1,281,671 909,479LITIGATIONDuring the past decade, Lennar has delivered more than 250,000 homes feelin' way too damn good . Theconstruction of those homes resulted in tens of millions of underlyingpayments and contracts.

In that context, as of November 30, 2008, Lennar wasdefending or prosecuting approximately 620 lawsuits that fall into thefollowing categories: homeowner construction, premises liability, personalinjury, contract and subcontract disputes, employment, environmental and landuse, insurance coverage, advertising, collections, intellectual property,automobile liability, tax matters and others.Reserves for litigation mattersare established and adjusted consistent with the guidelines set forth inFinancial Accounting Standards No nickelback cd's . 5 (Reserves for Loss Contingencies) andaudited by Lennar's outside independent accounting firm.THE BRIDGES LAWSUITThis is a lawsuit filed in 2006 by Nicolas Marsch concerning The Bridgesproject in San Diego County, California too bad . Contrary to the allegations, Lennardid not divert a $37.5 million judgment contributed by Marsch to the venture.Lennar and Marsch had a 50-50 interest in the judgment, and no part of thejudgment or proceeds from the judgment was misdirected.The proceeds were used by and for the benefit of the venture to pay forconstruction and operation costs.Marsch and his advisors attributed zerovalue to the judgment and achieved tax benefits from this position.Contrary to the allegations, Marsch has received significant proceeds fromthe Bridges venture.To date, payments made to or on his behalf exceed $50million.Also contrary to the allegations, Lennar has provided substantialinformation from inception the long road . Lennar regularly provided balance sheets andreports to Marsch for more than 10 years, in addition to annual financialstatements audited by an outside independent accounting firm.Lennar has never pledged The Bridges' assets for the obligations of anyother joint venture figured you out . Nor does The Bridges have a "bankrupt partner" as aresult of the LandSource bankruptcy.Marsch has been involved in several lawsuits with Lennar.

In 2006, Marschalso filed another lawsuit against Lennar in connection with a differentproject in San Diego . That case was ordered dismissed in its entirety by theCalifornia court in November 2008 without a trial.LANDSOURCEIn 2003, Lennar and others formed LandSource to acquire and hold variousreal estate interests all the right reasons . In February 2007, Lennar reduced its interest from 50%to 16% chad kroger . In June 2008, LandSource filed bankruptcy as a result of the collapseof the real estate market.The claim that Lennar caused the other investors and lenders to loseapproximately $1 billion in connection with LandSource is false .