THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Lennar Corporation (LEN)

2/28/2006 Proxy Information

From 1972 until his retirement in December 1998, Mr. Bolotin served as a Senior Vice President of Lennar Corporation.

In 1997, we transferred our commercial real estate investment and management business to LNR Property Corporation, and spun-off LNR to our stockholders. As a result, LNR became a publicly-traded company, and the family of Stuart A. Miller, our President, Chief Executive Officer and a Director, which had voting control of us, became the controlling shareholder of LNR.

At the time of the spin-off, we entered into an agreement which, among other things, prevented us, in some circumstances, from engaging through December 2002 in any of the businesses in which LNR was engaged, or anticipated becoming engaged, at the time of the spin-off, and prohibited LNR from engaging, at least through December 2002, in any of the businesses in which we were engaged, or anticipated becoming engaged, at the time of the spin-off (except in limited instances in which our then activities or anticipated activities overlapped with LNR). This agreement was extended through November 30, 2005 and expired on that date.

Since the spin-off, we have entered into a number of joint ventures and other transactions with LNR. Many of the joint ventures were formed to acquire and develop land, part of which was subsequently sold to us or other homebuilders for residential building and part of which was subsequently sold to LNR for commercial development. Because LNR was controlled by Mr. Miller and his family, all significant transactions we or our subsidiaries engaged in with LNR or entities in which it had an interest were reviewed and approved by the Independent Directors Committee of our Board of Directors.

In January 2004, a company of which we and LNR each own 50% acquired The Newhall Land and Farming Company for approximately $1 billion. In connection with the acquisition, we agreed to purchase 687 homesites, and received options to purchase an additional 623 homesites, from Newhall. On November 30, 2004, we and LNR each transferred our interests in most of our joint ventures to the jointly-owned company that had acquired Newhall, and that company was renamed LandSource Communities Development LLC.

In February 2005, LNR was acquired by a privately-owned entity. Although Mr. Miller’s family acquired a 20.4% interest in that privately-owned entity, neither Mr. Miller nor anybody else in his family is an officer or director, or otherwise is involved in the management, of LNR or its parent. Nonetheless, because the Miller family has a 20.4% interest in LNR’s parent, significant transactions with LNR or entities in which it has an interest are still reviewed and approved by the Independent Directors Committee of our Board of Directors.

During our fiscal year ended November 30, 2005, we paid $66.6 million to purchase properties from entities we owned jointly with LNR, and we were paid management fees and general contractor fees totaling $8.9 million by entities we owned jointly with LNR.

3/7/2005 Proxy Information

Steven J. Saiontz is the brother-in-law of Stuart A. Miller.

Steven J. Saiontz he was President of Lennar Financial Services, Inc., a wholly owned subsidiary of Lennar Corporation (Lennar) (LNR Property Corporation's parent company).

In connection with the 1997 transfer of our commercial real estate investment and management business to LNR Property Corporation, and the spin-off of LNR to our stockholders, we entered into an agreement which, among other things, prevented us, in some circumstances, from engaging through December 2002 in any of the businesses in which LNR was engaged, or anticipated becoming engaged, at the time of the spin-off, and prohibited LNR from engaging, at least through December 2002, in any of the businesses in which we were engaged, or anticipated becoming engaged, at the time of the spin-off (except in limited instances in which our then activities or anticipated activities overlapped with LNR). In August 2003, this agreement was extended through November 30, 2005. Currently, we do not intend to become involved in the types of activities in which LNR primarily engages (primarily related to commercial real estate, commercial mortgage loans and investments in commercial mortgage-backed securities). Further, the agreement delineating activities in which we could engage from those in which LNR could engage has helped the two companies work cooperatively in partnerships and other joint endeavors.

In January 2004, a company of which we and LNR each owns 50% acquired The Newhall Land and Farming Company for approximately $1 billion. The purchase price was paid with (1) approximately $200 million we contributed to the jointly-owned company, (2) approximately $200 million contributed by LNR to the jointly-owned company, (3) a $400 million term loan borrowed under $600 million of bank financing obtained by the jointly-owned company and another company of which we and LNR each owns 50% and (4) approximately $217 million from the proceeds of a sale by Newhall of income-producing properties to LNR. Newhall owns approximately 48,000 acres in California, including approximately 34,000 acres in north Los Angeles County that includes two master-planned communities. In connection with the acquisition, we agreed to purchase 687 homesites, and received options to purchase an additional 623 homesites, from Newhall.

In February 2005, LNR Property Holdings Ltd. (“LNR Holdings”), an unrelated entity that was formerly known as Riley Property Holdings LLC, acquired LNR. Under the terms of an agreement made in connection with the acquisition of LNR by LNR Holdings, a family limited partnership, which is controlled by Stuart Miller, acquired a 20.4% interest (on a fully diluted basis) in LNR Holdings. Prior to the transaction, that family limited partnership had voting control of LNR, and Mr. Miller served as LNR’s Chairman of the Board of Directors. Since LNR was spun off in 1997, we have had no financial interest in LNR, but have had an interest in a number of unconsolidated entities in which we and LNR both have had investments. Because of our prior relationship with LNR and Mr. Miller’s prior interest in LNR, an Independent Directors Committee of our Board reviews all ventures we enter into with LNR and any significant transactions we or our subsidiaries engage in with LNR or entities in which LNR has an interest. During our fiscal year ended November 30, 2004, we paid $88.8 million to purchase properties from entities we owned jointly with LNR, and we were paid management fees and general contractor fees totaling $10.9 million by entities we owned jointly with LNR.

3/8/2004 Proxy Information

Stuart A. Miller, our President and Chief Executive Officer, is the Chairman of the Board of LNR. Partnerships primarily owned by trusts of which he is a trustee, and of which he and members of his family are the beneficiaries, owned on January 31, 2004, approximately 32.5% of LNR’s stock, and Mr. Miller owns approximately 1.9% of LNR’s stock. Through the partnerships and his direct ownership, Mr. Miller has the power to cast approximately 83.2% of the votes that can be cast by LNR’s stockholders. LNR was a division, and then a wholly-owned subsidiary, of ours until we distributed LNR’s stock to our stockholders in 1997.

At the same time in 1997 that we distributed LNR’s stock to our stockholders, we and LNR formed a partnership, of which we each owned 50%, to hold and develop land, some of which we purchased for use in our homebuilding activities, and some of which was, or may be, sold to other builders. Subsequently, we and LNR formed several other jointly-owned entities that performed similar activities. We have generally managed the jointly-owned entities. During the year ended November 30, 2003, we paid a total of $68.0 million to purchase properties from entities we owned jointly with LNR, and we were paid management fees and general contractor fees totaling $10.2 million by jointly-owned entities. Both our purchase prices of properties and our fees earned related to the jointly-owned entities approximated fair value.

In November 2003, we and LNR each contributed our 50% interests in certain of our jointly-owned entities that had significant assets to a new limited liability company named LandSource Communities Development LLC (“LandSource”), in exchange for 50% interests in LandSource. In addition, in July 2003, we and LNR formed, and obtained 50% interests in, NWHL Investment LLC (“NWHL”), which in January 2004 purchased The Newhall Land and Farming Company (“Newhall”) for approximately $1 billion. Newhall’s primary business is developing two master-planned communities in Los Angeles County, California.

In order to enable NWHL to pay the acquisition price of Newhall, we and LNR each contributed approximately $200 million to NWHL, and LandSource and NWHL jointly obtained $600 million of bank financing commitments, of which $400 million was used by NWHL to pay part of the acquisition price of Newhall. The remainder of the bank financing will be available to finance operations of Newhall and other property ownership and development companies that are jointly-owned by us and LNR. The remainder of the acquisition price was paid with proceeds of a sale of income-producing properties from Newhall to LNR for approximately $217 million. We are not obligated with regard to the borrowings by LandSource and NWHL, except that we and LNR have made limited maintenance guarantees and have committed to complete any property development commitments in the event of default.

In 1997, we and LNR entered into an agreement that, among other things, prevented us from engaging in businesses of the type in which LNR was principally engaged in 1997, and prevented LNR from engaging in businesses of the type in which we were principally engaged in 1997. Those provisions expired in November 2002, but in August 2003, they were extended to November 2005.

Our By-Laws require that an Independent Directors Committee, which consists entirely of members of our Board who are not directors of LNR, or officers or employees of LNR or us, gives its approval on all ventures we enter into with LNR and any significant transactions between LNR and us or any of our subsidiaries.

Steven J. Saiontz, one of our directors, was until December 2002, the Chief Executive Officer of LNR. Although he no longer occupies that position, he continues to be a director of LNR. Also, his wife (who is Stuart A. Miller’s sister) is a beneficiary of the trusts described above that indirectly own a large amount of LNR stock.

Irving Bolotin was Senior Vice President of Lennar Corporation until his retirement in December 1998.

Steven J. Saiontz is the brother-in-law of Stuart A. Miller.