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Toll Brothers - Stone Creek - 70 Lots by Hanover Development LLC

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					Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots

Printed on Nov-28-07 03:54 PM

Toll Brothers - Stone Creek - 70 Lots by Hanover Development LLC Information as of November 28, 2007

assumes Land Purchase as cash and debt for development and building costs

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Title Page & Table of Contents

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Executive Summary
% Per Unit 99.5% 1,151,657 0.2% 2,398 0.3% 3,319 100.0% 1,157,374 23.8% 0.1% 0.3% 0.2% 0.4% 24.7% 1.4% 28.4% 0.2% 0.7% 1.6% 0.6% 2.1% 0.0% 35.0% 3.9% 0.2% 0.4% 0.1% 0.6% 5.3% 2.0% 0.1% 1.8% -0.1% 0.4% 1.4% 5.7% 29.3% 3.3% 0.7% 4.0% 25.3% 0.2% 4.8% 4.9% 79.7% 20.3% 275,000 808 3,234 1,752 5,000 285,794 16,771 328,927 1,900 7,600 18,759 6,540 24,663 6 405,166 45,514 2,500 5,000 1,500 7,150 61,664 23,159 763 21,126 -586 5,204 16,039 65,705 339,044 38,282 8,295 46,577 292,468 1,964 55,304 57,267 922,173 235,200
Hanover Development LLC (formatted to 1000's)

Printed on Nov-28-07 03:54 PM

Revenues & Expenses Homes Sales Upgrade Sales Lot Premiums Total Sales Land & Development Land Site Consultants - Equity Site Consultants Site Fees Site Improvements Finish Lot Costs Home Construction B-Permits & School Fees Direct Construction House Consultants - Equity House Consultants Construction Indirects Directs Contingency Common Area Cost of Buyer Upgrades Total Home Construction Other Costs Developer Overhead HOA Dues on Unsold Units Warranty Setup Costs Insurance Legal & Accounting Property Taxes Total Other Costs Sales & Marketing Commissions Closing Costs Broker Coop Model Upgrades Model Recovery Marketing Setup Marketing Period Cost Total Sales & Marketing Profit before Financing Financing Costs Interest Expense & Loan Fees Equity Fee Total Financing Costs Profits after Financing Peferred Returns Hanover Preferred Return "Equity" Preferred Return Total Preferred Returns Total Costs & Preferred Payments Net Profit after Preferred Returns

Total Project 80,616,000 168,000 232,000 81,016,000 19,250,000 57,000 226,000 123,000 350,000 20,006,000 1,174,000 23,025,000 133,000 532,000 1,313,000 458,000 1,726,000 0,000 28,362,000 3,186,000 175,000 350,000 105,000 501,000 4,317,000 1,621,000 53,000 1,479,000 -41,000 364,000 1,123,000 4,599,000 23,733,000 2,680,000 581,000 3,260,000 20,473,000 137,000 3,871,000 4,009,000 64,552,000 16,464,000

EXECUTIVE SUMMARY PLAN Plan 1 Plan 2 Plan 3 Plan 4 SF. FT. BASE PRICE 2900 $999,000 3100 $1,099,000 3300 $1,150,000 3500 $1,250,000 $ PSF MIX $344 15 $355 18 $348 18 $357 19

Project Starts in Apr-08 & Ends in Mar-11 1.00% Sales Inflation Rate starting Oct 08 1.00% Cost Inflation Rate starting Oct 08 Total Units Sold Avg. Price Total Project 70 1,157,960 Models 4 1,176,000 Construction 66 units 1,157,000

Average Square Footage = 3,217 Total Square Footage = 225,200 COSTS Directs plans 1, 2 & 3 = $101.00 PSF Directs plans 4, 5 & 6 = $101.00 PSF Directs Contingency = $2.00 PSF Inflation Added @ 1.00% per year SALES Sales Rate = 6 Units per month - Seasonally Adjusted = 3.04 Inflation Added @ 1.00% per year FINANCE Debt Interest Rate = 8.5% Equity Preferred Return Rate = 10.0% KEY DATES Feasibility Start……………… January 15, 2008 February 29, 2008 Feasibility End………………… Close On Property……………April 14, 2008 Start Improvements………… April 14, 2008 October 11, 2008 Start Models…………………… April 9, 2009 Model Open…………………… Production Start………………December 10, 2008 September 1, 2009 First Closing…………………… March 16, 2011 Last Closing…………………… ************* Project Duration…… 35.5 months

Loan IRR 10.8% Construction

Note Amount 26,102,000

High Balance 16,580,000

Total Loans 26,102,000 15,674,000 Consol. Avg Loan Balance 9,039,000 Consol. High Cost Outstanding 36,190,000 Interest - $2,353,000 Lender Fees - $326,000 Loan to Value Loan to Cost 44.00% 40.8% A&D Portion

Total Loan

32.2% LTV

44.7% LTC

CASH DISTRIBUTIONS TO PARTNERS Distributions are Pari Parsu Project IRR 32.4% Net Cash Flow IRR 41.9% Layer 1 & 2 - Preferred Return to "Equity" and Hanover Proport Annualized R.O.A. 28.5%, R.O.E. 55.2% Layer 3 & 4 - Equity to "Equity" and Hanover Proportionately "Equity" Summary IRR 28.1% Total Investment 19,936,000

PROFITS Layer 5 - Profits Are Split "Equity" 50.0% / Hanover 50.0%

10.0% Preferred Return 50.0% Profit "Equity" Total Return Hanover Summary Total Investment 10.0% Preferred Return 50.0% Profit Share Hanover Total Return

3,871,000 4.8% 8,232,000 10.2% $12,103,000 14.9% 581,000 137,000 0.2% 8,232,000 10.2% $8,369,000 10.3%

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Page A

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
1 Mon Beg Apr-08 66 66 2 Mon Beg May-08 3 Mon Beg Jun-08 4 Mon Beg Jul-08 5 Mon Beg Aug-08 6 Mon Beg Sep-08 7 Mon Beg Oct-08

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Total Lots, Units & Models Totals Lots Started 66 Lots Finished 66 Units Started 66 Units Finished 66 Units Sold 66 Units Closed 66 Model Lots Started 4 Model Lots Finished 4 Model Units Started 4 Model Units Finished 4 Models Closed 4 Income Homes Sales Model Sales Commissions & Closing Costs NET INCOME FROM SALES Average
1,156,900 1,175,500 (23,159)

8 Mon Beg Nov-08

9 Mon Beg Dec-08

10 Mon Beg Jan-09

15 2 4 4 4

Totals 76,355,000 4,702,000 -1,621,000 79,436,000
Loan yes yes yes yes yes invst yes yes no no yes yes yes yes yes yes yes no yes yes yes yes no yes yes yes yes

Land & Overall Project Cost Spend Method Land amount amount Site Consultants - Equity Site Consultants amount amount Site Fees lots const Site Improvements project started "Equity" Equity Fee Construction Interest Expense avg bal o/s first draw Construction Loan Fees net cash flow "Equity" Preferred Return Hanover Preferred Return net cash flow Total Land & Overall Project Cost units started B-Permits & School Fees units const Direct Construction amount line 3 House Consultants - Equity amount line 4 House Consultants Construction Indirects amount line 2 units finished Directs Contingency units finished Common Area units closed Closing Costs modplex const Model Upgrades modplex const Marketing Setup sales periods Marketing Period Cost Amount line 1 Developer Overhead units closed Warranty Setup Costs Insurance first period last period Legal & Accounting units finished Cost of Buyer Upgrades Property Taxes amount line 5 Total Phase & Direct Costs Net Cash Flow before Loans & Equity

Inflation no no no no yes n/a n/a n/a n/a n/a yes yes no no no yes yes yes yes yes yes no no no no no no

20.3%

19,250,000 19,250,000 57,000 226,000 123,000 350,000 35,000 581,000 581,000 2,353,000 40,000 326,000 326,000 3,871,000 137,000 27,275,000 20,232,000 1,174,000 23,025,000 133,000 532,000 1,313,000 458,000 1,726,000 53,000 1,479,000 364,000 1,123,000 3,186,000 100,000 175,000 350,000 350,000 105,000 0,000 501,000 19,000 35,697,000 469,000 16,464,000 -20,701,000

6,000

6,000

11,000

11,000

17,000

6,000 45,000 61,000

45,000 37,000

45,000

23,000 25,000

105,000 60,000

105,000 61,000

105,000 64,000 66,000 69,000 71,000 74,000 77,000 81,000

171,000

172,000

13,000

13,000

180,000 66,000 130,000 27,000 47,000

78,000 260,000 27,000 47,000

86,000 260,000 27,000 47,000

184,000 195,000 27,000 106,000 47,000

157,000 130,000 106,000 47,000

122,000 130,000 106,000 47,000

128,000 250,000 554,000 106,000 47,000

443,000 109,000 100,000 100,000 100,000

74,000 18,000 100,000

74,000 18,000 100,000

296,000 73,000 100,000

148,000 36,000 100,000

148,000 36,000 100,000

148,000 37,000 41,000 100,000

113,000 -284,000

113,000 -285,000

922,000 -1,102,000

525,000 -603,000

525,000 -611,000

843,000 -1,027,000

135,000 702,000 -859,000

568,000 -690,000

1,283,000 -1,411,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA1 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
11 Mon Beg Feb-09 12 Mon Beg Mar-09 13 Mon Beg Apr-09 14 Mon Beg May-09 15 Mon Beg Jun-09 16 Mon Beg Jul-09 17 Mon Beg Aug-09

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Total Lots, Units & Models Totals Lots Started 66 Lots Finished 66 Units Started 66 Units Finished 66 Units Sold 66 Units Closed 66 Model Lots Started 4 Model Lots Finished 4 Model Units Started 4 Model Units Finished 4 Models Closed 4 Income Homes Sales Model Sales Commissions & Closing Costs NET INCOME FROM SALES Average
1,156,900 1,175,500 (23,159)

18 Mon Beg Sep-09

19 Mon Beg Oct-09

20 Mon Beg Nov-09

15 2 2 3 3 3 5 6 15 4 15 6

15 6

4

Totals 76,355,000 4,702,000 -1,621,000 79,436,000
Loan yes yes yes yes yes invst yes yes no no yes yes yes yes yes yes yes no yes yes yes yes no yes yes yes yes

17,141,000 -343,000 16,798,000

Land & Overall Project Cost Spend Method Land amount amount Site Consultants - Equity Site Consultants amount amount Site Fees lots const Site Improvements project started "Equity" Equity Fee Construction Interest Expense avg bal o/s first draw Construction Loan Fees net cash flow "Equity" Preferred Return Hanover Preferred Return net cash flow Total Land & Overall Project Cost units started B-Permits & School Fees units const Direct Construction amount line 3 House Consultants - Equity amount line 4 House Consultants Construction Indirects amount line 2 units finished Directs Contingency units finished Common Area units closed Closing Costs modplex const Model Upgrades modplex const Marketing Setup sales periods Marketing Period Cost Amount line 1 Developer Overhead units closed Warranty Setup Costs Insurance first period last period Legal & Accounting units finished Cost of Buyer Upgrades Property Taxes amount line 5 Total Phase & Direct Costs Net Cash Flow before Loans & Equity

Inflation no no no no yes n/a n/a n/a n/a n/a yes yes no no no yes yes yes yes yes yes no no no no no no

20.3%

19,250,000 57,000 226,000 123,000 350,000 581,000 2,353,000 326,000 3,871,000 137,000 27,275,000 1,174,000 23,025,000 133,000 532,000 1,313,000 458,000 1,726,000 53,000 1,479,000 364,000 1,123,000 3,186,000 175,000 350,000 105,000 0,000 501,000 35,697,000 16,464,000

23,000

23,000

23,000

86,000

91,000

95,000

98,000

100,000

104,000

109,000

115,000 2,416,000 94,000 2,624,000 1,231,000

72,000

77,000

108,000 1,044,000 106,000 47,000

113,000 1,045,000

117,000 735,000

98,000 491,000

100,000 491,000

104,000 251,000 737,000

109,000 1,230,000

72,000 739,000

77,000 252,000 986,000

47,000 26,000 98,000 74,000 18,000 41,000 100,000

47,000

47,000

47,000

47,000

47,000

47,000 97,000 368,000 11,000

47,000

47,000

74,000 18,000 41,000 100,000

41,000 100,000

41,000 100,000

41,000 100,000

41,000 100,000

41,000 100,000

41,000 100,000 38,000

41,000 100,000

41,000 100,000

0,000 1,431,000 -1,539,000 1,449,000 -1,562,000 96,000 1,019,000 -1,137,000 678,000 -776,000 679,000 -779,000 1,176,000 -1,280,000 1,418,000 -1,526,000

0,000 1,933,000 12,241,000 927,000 -999,000 122,000 1,549,000 -1,625,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA2 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
21 Mon Beg Dec-09 22 Mon Beg Jan-10 23 Mon Beg Feb-10 24 Mon Beg Mar-10 25 Mon Beg Apr-10 26 Mon Beg May-10 27 Mon Beg Jun-10

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Total Lots, Units & Models Totals Lots Started 66 Lots Finished 66 Units Started 66 Units Finished 66 Units Sold 66 Units Closed 66 Model Lots Started 4 Model Lots Finished 4 Model Units Started 4 Model Units Finished 4 Models Closed 4 Income Homes Sales Model Sales Commissions & Closing Costs NET INCOME FROM SALES Average
1,156,900 1,175,500 (23,159)

28 Mon Beg Jul-10

29 Mon Beg Aug-10

30 Mon Beg Sep-10

2

1

2

15 15 2 15

3

3

3

6 15 2 15

6

Totals 76,355,000 4,702,000 -1,621,000 79,436,000
Loan yes yes yes yes yes invst yes yes no no yes yes yes yes yes yes yes no yes yes yes yes no yes yes yes yes

17,430,000 -349,000 17,081,000

17,488,000 -350,000 17,138,000

Land & Overall Project Cost Spend Method Land amount amount Site Consultants - Equity Site Consultants amount amount Site Fees lots const Site Improvements project started "Equity" Equity Fee Construction Interest Expense avg bal o/s first draw Construction Loan Fees net cash flow "Equity" Preferred Return Hanover Preferred Return net cash flow Total Land & Overall Project Cost units started B-Permits & School Fees units const Direct Construction amount line 3 House Consultants - Equity amount line 4 House Consultants Construction Indirects amount line 2 units finished Directs Contingency units finished Common Area units closed Closing Costs modplex const Model Upgrades modplex const Marketing Setup sales periods Marketing Period Cost Amount line 1 Developer Overhead units closed Warranty Setup Costs Insurance first period last period Legal & Accounting units finished Cost of Buyer Upgrades Property Taxes amount line 5 Total Phase & Direct Costs Net Cash Flow before Loans & Equity

Inflation no no no no yes n/a n/a n/a n/a n/a yes yes no no no yes yes yes yes yes yes no no no no no no

20.3%

19,250,000 57,000 226,000 123,000 350,000 581,000 2,353,000 326,000 3,871,000 137,000 27,275,000 1,174,000 23,025,000 133,000 532,000 1,313,000 458,000 1,726,000 53,000 1,479,000 364,000 1,123,000 3,186,000 175,000 350,000 105,000 0,000 501,000 35,697,000 16,464,000

82,000

87,000

92,000

98,000 889,000 27,000 1,014,000 253,000 1,237,000

56,000

61,000

65,000

71,000 404,000 12,000 487,000 101,000 943,000

27,000

30,000

82,000 1,481,000

87,000 1,235,000

92,000 989,000

56,000 1,486,000

61,000 1,239,000

65,000 992,000

27,000 894,000

30,000 646,000

47,000

47,000

47,000

47,000 98,000 369,000 11,000

47,000

47,000

47,000

47,000 98,000 371,000 11,000

47,000

47,000

42,000 100,000

42,000 100,000

42,000 100,000

42,000 100,000 38,000

42,000 100,000

42,000 100,000

42,000 100,000

42,000 100,000 38,000

42,000 100,000

42,000 100,000

0,000 1,669,000 -1,751,000 1,423,000 -1,510,000 1,177,000 -1,268,000 2,194,000 13,873,000 67,000 1,741,000 -1,797,000 1,427,000 -1,488,000 1,180,000 -1,246,000

0,000 1,751,000 14,901,000 1,083,000 -1,109,000 835,000 -865,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA3 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
31 Mon Beg Oct-10 32 Mon Beg Nov-10 33 Mon Beg Dec-10 34 Mon Beg Jan-11 35 Mon Beg Feb-11 36 Mon Beg Mar-11

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Total Lots, Units & Models Totals Lots Started 66 Lots Finished 66 Units Started 66 Units Finished 66 Units Sold 66 Units Closed 66 Model Lots Started 4 Model Lots Finished 4 Model Units Started 4 Model Units Finished 4 Models Closed 4 Income Homes Sales Model Sales Commissions & Closing Costs NET INCOME FROM SALES Average
1,156,900 1,175,500 (23,159)

15 15

6 6

4

Totals 76,355,000 4,702,000 -1,621,000 79,436,000
Loan yes yes yes yes yes invst yes yes no no yes yes yes yes yes yes yes no yes yes yes yes no yes yes yes yes

17,188,000 -344,000 16,844,000

7,108,000 4,702,000 -236,000 11,574,000

Land & Overall Project Cost Spend Method Land amount amount Site Consultants - Equity Site Consultants amount amount Site Fees lots const Site Improvements project started "Equity" Equity Fee Construction Interest Expense avg bal o/s first draw Construction Loan Fees net cash flow "Equity" Preferred Return Hanover Preferred Return net cash flow Total Land & Overall Project Cost units started B-Permits & School Fees units const Direct Construction amount line 3 House Consultants - Equity amount line 4 House Consultants Construction Indirects amount line 2 units finished Directs Contingency units finished Common Area units closed Closing Costs modplex const Model Upgrades modplex const Marketing Setup sales periods Marketing Period Cost Amount line 1 Developer Overhead units closed Warranty Setup Costs Insurance first period last period Legal & Accounting units finished Cost of Buyer Upgrades Property Taxes amount line 5 Total Phase & Direct Costs Net Cash Flow before Loans & Equity

Inflation no no no no yes n/a n/a n/a n/a n/a yes yes no no no yes yes yes yes yes yes no no no no no no

20.3%

19,250,000 57,000 226,000 123,000 350,000 581,000 2,353,000 326,000 3,871,000 137,000 27,275,000 1,174,000 23,025,000 133,000 532,000 1,313,000 458,000 1,726,000 53,000 1,479,000 364,000 1,123,000 3,186,000 175,000 350,000 105,000 0,000 501,000 35,697,000 16,464,000

32,000

36,000 162,000 5,000 202,000 448,000

0,000

1,000

1,000

2,000

32,000 547,000

0,000 199,000

1,000 100,000

1,000 100,000

2,000 100,000

47,000 99,000 372,000 11,000 40,000 149,000 8,000

42,000 100,000

42,000 100,000 38,000

42,000

42,000

42,000

42,000 25,000 105,000 0,000

736,000 -768,000

0,000 52,000 1,162,000 15,480,000

241,000 -242,000

142,000 -143,000

8,000 150,000 -152,000

469,000 11,103,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA4 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
1 Mon Beg Apr-08 2 Mon Beg May-08 3 Mon Beg Jun-08 4 Mon Beg Jul-08 5 Mon Beg Aug-08 6 Mon Beg Sep-08 7 Mon Beg Oct-08

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Sources & Uses of Funds Loan Activity Construction Loan Draws (-Repayments) Net Loan Activity per Period Net Investment Cash Flow "Equity" Investments (-Distributions) "Equity" Profits Paid Hanover Investments (-Distributions) Hanover Profits Paid Total Investments & Distributions Project Cash Account Cash Account - Source of Funds (-Use of Funds) Total Sources & Uses

8 Mon Beg Nov-08

9 Mon Beg Dec-08

10 Mon Beg Jan-09

8,419,000 8,419,000

154,000 154,000

155,000 155,000

500,000 500,000

292,000 292,000

296,000 296,000

473,000 473,000

404,000 404,000

334,000 334,000

639,000 639,000

11,721,000 -8,232,000 581,000 -8,232,000 -16,464,000 12,302,000

130,000

130,000

602,000

311,000

314,000

554,000

455,000

356,000

771,000

130,000

130,000

602,000

311,000

314,000

554,000

455,000

356,000

771,000

-16,464,000

-20,000 20,701,000

284,000

285,000

1,102,000

603,000

611,000

1,027,000

859,000

690,000

1,411,000

Balance Sheet (full capitalization method) Assets Cash Land & Overall Project Cost Phase & Direct Costs Less 74.2% Cost of Goods Sold after Commissions Less "Equity" Preferred Return Paid Less Hanover Preferred Return Paid Total Assets Liabilities & Equity Construction Loan Total Liabilities Undistributed Earned Profits "Equity" Investment Hanover Investment Total Equity Total Liabilities & Equity 28.1%
LTV 44.0% LTC 40.7%

20,000 20,232,000 469,000

20,000 20,403,000 582,000

20,000 20,575,000 695,000

20,000 20,755,000 1,616,000

20,000 20,833,000 2,141,000

20,000 20,918,000 2,666,000

20,000 21,102,000 3,509,000

20,000 21,259,000 4,211,000

20,000 21,381,000 4,779,000

20,000 21,509,000 6,062,000

20,721,000 IRR 8,419,000 8,419,000

21,005,000

21,289,000

22,391,000

22,994,000

23,605,000

24,631,000

25,490,000

26,180,000

27,591,000

8,573,000 8,573,000

8,728,000 8,728,000

9,228,000 9,228,000

9,520,000 9,520,000

9,816,000 9,816,000

10,289,000 10,289,000

10,693,000 10,693,000

11,027,000 11,027,000

11,666,000 11,666,000

11,721,000 581,000 12,302,000 20,721,000

11,851,000 581,000 12,431,000 21,005,000

11,980,000 581,000 12,561,000 21,289,000

12,582,000 581,000 13,163,000 22,391,000

12,893,000 581,000 13,474,000 22,994,000

13,208,000 581,000 13,788,000 23,605,000

13,762,000 581,000 14,343,000 24,631,000

14,217,000 581,000 14,797,000 25,490,000

14,572,000 581,000 15,153,000 26,180,000

15,344,000 581,000 15,924,000 27,591,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA5 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
11 Mon Beg Feb-09 12 Mon Beg Mar-09 13 Mon Beg Apr-09 14 Mon Beg May-09 15 Mon Beg Jun-09 16 Mon Beg Jul-09 17 Mon Beg Aug-09

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Sources & Uses of Funds Loan Activity Construction Loan Draws (-Repayments) Net Loan Activity per Period Net Investment Cash Flow "Equity" Investments (-Distributions) "Equity" Profits Paid Hanover Investments (-Distributions) Hanover Profits Paid Total Investments & Distributions Project Cash Account Cash Account - Source of Funds (-Use of Funds) Total Sources & Uses

18 Mon Beg Sep-09

19 Mon Beg Oct-09

20 Mon Beg Nov-09

696,000 696,000

708,000 708,000

532,000 532,000

383,000 383,000

386,000 386,000

598,000 598,000

704,000 704,000

-5,719,000 -5,719,000

462,000 462,000

727,000 727,000

843,000 -8,232,000

853,000

604,000

393,000

394,000

682,000

822,000

-2,516,000 -55,000

-8,232,000 -16,464,000

843,000

853,000

604,000

393,000

394,000

682,000

822,000

-2,571,000

-16,464,000

1,539,000

1,562,000

1,137,000

776,000

779,000

1,280,000

1,526,000

-3,951,000 -12,241,000

538,000 999,000

898,000 1,625,000

Balance Sheet (full capitalization method) Assets Cash Land & Overall Project Cost Phase & Direct Costs Less 74.2% Cost of Goods Sold after Commissions Less "Equity" Preferred Return Paid Less Hanover Preferred Return Paid Total Assets Liabilities & Equity Construction Loan Total Liabilities Undistributed Earned Profits "Equity" Investment Hanover Investment Total Equity Total Liabilities & Equity 28.1%
LTV 44.0% LTC 40.7%

20,000 21,617,000 7,492,000

20,000 21,730,000 8,941,000

20,000 21,848,000 9,960,000

20,000 21,945,000 10,639,000

20,000 22,046,000 11,318,000

20,000 22,150,000 12,494,000

20,000 22,259,000 13,911,000

29,130,000 IRR 12,362,000 12,362,000

30,691,000

31,828,000

32,604,000

33,383,000

34,664,000

36,190,000

3,971,000 3,434,000 2,536,000 24,883,000 24,955,000 25,032,000 15,844,000 16,771,000 18,319,000 -12,469,000 -12,469,000 -12,469,000 -2,416,000 -2,416,000 -2,416,000 -94,000 -94,000 -94,000 29,720,000 30,182,000 30,909,000

13,071,000 13,071,000

13,603,000 13,603,000

13,986,000 13,986,000

14,371,000 14,371,000

14,970,000 14,970,000

15,674,000 15,674,000

9,955,000 9,955,000 1,820,000

10,416,000 10,416,000 1,820,000 17,420,000 525,000 17,946,000 30,182,000

11,144,000 11,144,000 1,820,000 17,420,000 525,000 17,946,000 30,909,000

16,186,000 581,000 16,767,000 29,130,000

17,040,000 581,000 17,620,000 30,691,000

17,644,000 581,000 18,225,000 31,828,000

18,038,000 581,000 18,618,000 32,604,000

18,431,000 581,000 19,012,000 33,383,000

19,113,000 581,000 19,694,000 34,664,000

19,936,000 581,000 20,516,000 36,190,000

17,420,000 525,000 17,946,000 29,720,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA6 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
21 Mon Beg Dec-09 22 Mon Beg Jan-10 23 Mon Beg Feb-10 24 Mon Beg Mar-10 25 Mon Beg Apr-10 26 Mon Beg May-10 27 Mon Beg Jun-10

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Sources & Uses of Funds Loan Activity Construction Loan Draws (-Repayments) Net Loan Activity per Period Net Investment Cash Flow "Equity" Investments (-Distributions) "Equity" Profits Paid Hanover Investments (-Distributions) Hanover Profits Paid Total Investments & Distributions Project Cash Account Cash Account - Source of Funds (-Use of Funds) Total Sources & Uses

28 Mon Beg Jul-10

29 Mon Beg Aug-10

30 Mon Beg Sep-10

783,000 783,000

685,000 685,000

586,000 586,000

-5,738,000 -5,738,000

788,000 788,000

661,000 661,000

561,000 561,000

-5,974,000 -5,974,000

482,000 482,000

380,000 380,000

-5,449,000 -8,232,000 -164,000 -8,232,000 -16,464,000 -5,613,000

-7,172,000 -216,000 -7,388,000

-16,464,000

968,000 1,751,000

825,000 1,510,000

683,000 1,268,000

-2,522,000 -13,873,000

1,010,000 1,797,000

828,000 1,488,000

685,000 1,246,000

-1,539,000 -14,901,000

628,000 1,109,000

484,000 865,000

Balance Sheet (full capitalization method) Assets Cash Land & Overall Project Cost Phase & Direct Costs Less 74.2% Cost of Goods Sold after Commissions Less "Equity" Preferred Return Paid Less Hanover Preferred Return Paid Total Assets Liabilities & Equity Construction Loan Total Liabilities Undistributed Earned Profits "Equity" Investment Hanover Investment Total Equity Total Liabilities & Equity 28.1%
LTV 44.0% LTC 40.7%

1,568,000 743,000 60,000 2,582,000 25,115,000 25,202,000 25,294,000 26,308,000 19,988,000 21,411,000 22,588,000 24,782,000 -12,469,000 -12,469,000 -12,469,000 -25,148,000 -2,416,000 -2,416,000 -2,416,000 -3,305,000 -94,000 -94,000 -94,000 -120,000 31,692,000 32,377,000 32,963,000 25,098,000 IRR 11,927,000 11,927,000 1,820,000 17,420,000 525,000 17,946,000 31,692,000 12,612,000 12,612,000 1,820,000 17,420,000 525,000 17,946,000 32,377,000 13,198,000 13,198,000 1,820,000 17,420,000 525,000 17,946,000 32,963,000 7,460,000 7,460,000 5,306,000 11,971,000 361,000 12,333,000 25,098,000

1,572,000 26,364,000 26,523,000 -25,148,000 -3,305,000 -120,000 25,886,000

745,000 26,425,000 27,950,000 -25,148,000 -3,305,000 -120,000 26,546,000

60,000 26,491,000 29,130,000 -25,148,000 -3,305,000 -120,000 27,108,000

1,599,000 26,978,000 30,881,000 -37,869,000 -3,709,000 -133,000 17,746,000

971,000 27,005,000 31,964,000 -37,869,000 -3,709,000 -133,000 18,228,000

487,000 27,034,000 32,798,000 -37,869,000 -3,709,000 -133,000 18,608,000

8,247,000 8,247,000 5,306,000 11,971,000 361,000 12,333,000 25,886,000

8,908,000 8,908,000 5,306,000 11,971,000 361,000 12,333,000 26,546,000

9,469,000 9,469,000 5,306,000 11,971,000 361,000 12,333,000 27,108,000

3,495,000 3,495,000 9,307,000 4,800,000 145,000 4,945,000 17,746,000

3,976,000 3,976,000 9,307,000 4,800,000 145,000 4,945,000 18,228,000

4,357,000 4,357,000 9,307,000 4,800,000 145,000 4,945,000 18,608,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA7 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
31 Mon Beg Oct-10 32 Mon Beg Nov-10 33 Mon Beg Dec-10 34 Mon Beg Jan-11 35 Mon Beg Feb-11 36 Mon Beg Mar-11

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9% Sources & Uses of Funds Loan Activity Construction Loan Draws (-Repayments) Net Loan Activity per Period Net Investment Cash Flow "Equity" Investments (-Distributions) "Equity" Profits Paid Hanover Investments (-Distributions) Hanover Profits Paid Total Investments & Distributions Project Cash Account Cash Account - Source of Funds (-Use of Funds) Total Sources & Uses

341,000 341,000

-4,698,000 -4,698,000

102,000 102,000

61,000 61,000

65,000 65,000

-227,000 -227,000

-8,232,000 -8,232,000 -16,464,000

-4,800,000 -2,764,000 -145,000 -2,764,000 -10,472,000

-5,468,000 -5,468,000 -10,936,000

-16,464,000

427,000 768,000

-309,000 -15,480,000

140,000 242,000

82,000 143,000

87,000 152,000

60,000 -11,103,000

Balance Sheet (full capitalization method) Assets Cash Land & Overall Project Cost Phase & Direct Costs Less 74.2% Cost of Goods Sold after Commissions Less "Equity" Preferred Return Paid Less Hanover Preferred Return Paid Total Assets Liabilities & Equity Construction Loan Total Liabilities Undistributed Earned Profits "Equity" Investment Hanover Investment Total Equity Total Liabilities & Equity 28.1%
LTV 44.0% LTC 40.7%

60,000 27,067,000 33,534,000 -37,869,000 -3,709,000 -133,000 18,950,000 IRR 4,698,000 4,698,000 9,307,000 4,800,000 145,000 4,945,000 18,950,000

369,000 27,269,000 34,696,000 -50,372,000 -3,871,000 -137,000 7,953,000

229,000 27,270,000 34,937,000 -50,372,000 -3,871,000 -137,000 8,055,000

147,000 27,271,000 35,079,000 -50,372,000 -3,871,000 -137,000 8,116,000

60,000 27,272,000 35,229,000 -50,372,000 -3,871,000 -137,000 8,180,000

27,275,000 35,697,000 -58,963,000 -3,871,000 -137,000 -0,000

102,000 102,000 7,953,000 7,953,000

162,000 162,000 7,953,000

227,000 227,000 7,953,000

7,953,000

8,055,000

8,116,000

8,180,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA8 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
1 Mon Beg Apr-08 2 Mon Beg May-08 3 Mon Beg Jun-08 4 Mon Beg Jul-08 5 Mon Beg Aug-08 6 Mon Beg Sep-08 7 Mon Beg Oct-08

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9%

8 Mon Beg Nov-08

9 Mon Beg Dec-08

10 Mon Beg Jan-09

Profit Reporting (full capitalization method) Total Sales 81,057,000 Less Commissions & Closing Costs -1,621,000 Less 74.2% Cost of Goods Sold after Commissions -58,963,000 Less "Equity" Preferred Return Paid -3,871,000 Less Hanover Preferred Return Paid -137,000 Net Profits Earned 16,464,000 Distribution of Profits "Equity" Profit Paid 8,232,000 Hanover Profit Paid 8,232,000 Total Profits Paid 16,464,000 Note: Actual Project Balance Sheet and Income Statement maybe different based on Accounting & Tax Methods selected by Company. Return on Assets and Return on Equity Analysis Total Income Cumulative - Accrual Basis Average Income per Period Net Assets Cumulative per Period Average Assets per Period Net Equity Cumulative per Period Average Equity per Period Average Return on Assets per Period ROA Annualize (Simple Calc, not Compounded) Average Return per Equity per Period ROE Annualize (Simple Calc, not Compounded)
Calc's based on actual Monthly Periods

20,473,000 569,000 862,706,000 23,964,000 445,172,000 12,366,000 2.4% 28.5% 4.6% 55.2% 20,721,000 20,721,000 12,302,000 12,302,000 41,726,000 20,863,000 24,733,000 12,367,000 63,015,000 21,005,000 37,294,000 12,431,000 85,407,000 108,401,000 132,005,000 156,637,000 182,127,000 208,307,000 235,897,000 21,352,000 21,680,000 22,001,000 22,377,000 22,766,000 23,145,000 23,590,000 50,457,000 12,614,000 63,931,000 12,786,000 77,720,000 12,953,000 92,062,000 106,860,000 122,012,000 137,937,000 13,152,000 13,357,000 13,557,000 13,794,000

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA9 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
11 Mon Beg Feb-09 12 Mon Beg Mar-09 13 Mon Beg Apr-09 14 Mon Beg May-09 15 Mon Beg Jun-09 16 Mon Beg Jul-09 17 Mon Beg Aug-09

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9%

18 Mon Beg Sep-09

19 Mon Beg Oct-09

20 Mon Beg Nov-09

Profit Reporting (full capitalization method) Total Sales 81,057,000 Less Commissions & Closing Costs -1,621,000 Less 74.2% Cost of Goods Sold after Commissions -58,963,000 Less "Equity" Preferred Return Paid -3,871,000 Less Hanover Preferred Return Paid -137,000 Net Profits Earned 16,464,000 Distribution of Profits "Equity" Profit Paid 8,232,000 Hanover Profit Paid 8,232,000 Total Profits Paid 16,464,000 Note: Actual Project Balance Sheet and Income Statement maybe different based on Accounting & Tax Methods selected by Company. Return on Assets and Return on Equity Analysis Total Income Cumulative - Accrual Basis Average Income per Period Net Assets Cumulative per Period Average Assets per Period Net Equity Cumulative per Period Average Equity per Period Average Return on Assets per Period ROA Annualize (Simple Calc, not Compounded) Average Return per Equity per Period ROE Annualize (Simple Calc, not Compounded)

17,141,000 -343,000 -12,469,000 -2,416,000 -94,000 1,820,000

20,473,000 569,000

4,329,000 241,000

4,329,000 228,000

4,329,000 216,000

862,706,000 265,027,000 295,718,000 327,546,000 360,150,000 393,533,000 428,197,000 464,387,000 494,107,000 524,289,000 555,198,000 23,964,000 24,093,000 24,643,000 25,196,000 25,725,000 26,236,000 26,762,000 27,317,000 27,450,000 27,594,000 27,760,000 445,172,000 154,704,000 172,324,000 190,549,000 209,167,000 228,179,000 247,873,000 268,390,000 286,335,000 304,281,000 322,226,000 12,366,000 14,064,000 14,360,000 14,658,000 14,941,000 15,212,000 15,492,000 15,788,000 15,908,000 16,015,000 16,111,000 2.4% 28.5% 4.6% 55.2% 0.9% 10.5% 1.5% 18.1% 0.8% 9.9% 1.4% 17.1% 0.8% 9.4% 1.3% 16.1%

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA10 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
21 Mon Beg Dec-09 22 Mon Beg Jan-10 23 Mon Beg Feb-10 24 Mon Beg Mar-10 25 Mon Beg Apr-10 26 Mon Beg May-10 27 Mon Beg Jun-10

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9%

28 Mon Beg Jul-10

29 Mon Beg Aug-10

30 Mon Beg Sep-10

Profit Reporting (full capitalization method) Total Sales 81,057,000 Less Commissions & Closing Costs -1,621,000 Less 74.2% Cost of Goods Sold after Commissions -58,963,000 Less "Equity" Preferred Return Paid -3,871,000 Less Hanover Preferred Return Paid -137,000 Net Profits Earned 16,464,000 Distribution of Profits "Equity" Profit Paid 8,232,000 Hanover Profit Paid 8,232,000 Total Profits Paid 16,464,000 Note: Actual Project Balance Sheet and Income Statement maybe different based on Accounting & Tax Methods selected by Company. Return on Assets and Return on Equity Analysis Total Income Cumulative - Accrual Basis Average Income per Period Net Assets Cumulative per Period Average Assets per Period Net Equity Cumulative per Period Average Equity per Period Average Return on Assets per Period ROA Annualize (Simple Calc, not Compounded) Average Return per Equity per Period ROE Annualize (Simple Calc, not Compounded)

17,430,000 -349,000 -12,679,000 -889,000 -27,000 3,486,000

17,488,000 -350,000 -12,721,000 -404,000 -12,000 4,001,000

20,473,000 569,000

4,329,000 206,000

4,329,000 197,000

4,329,000 188,000

8,732,000 364,000

8,732,000 349,000

8,732,000 336,000

8,732,000 323,000

13,149,000 470,000

13,149,000 453,000

13,149,000 438,000

862,706,000 586,891,000 619,268,000 652,231,000 677,329,000 703,215,000 729,761,000 756,869,000 774,615,000 792,843,000 811,452,000 23,964,000 27,947,000 28,149,000 28,358,000 28,222,000 28,129,000 28,068,000 28,032,000 27,665,000 27,339,000 27,048,000 445,172,000 340,172,000 358,117,000 376,063,000 388,396,000 400,728,000 413,061,000 425,393,000 430,338,000 435,283,000 440,228,000 12,366,000 16,199,000 16,278,000 16,351,000 16,183,000 16,029,000 15,887,000 15,755,000 15,369,000 15,010,000 14,674,000 2.4% 28.5% 4.6% 55.2% 0.7% 8.9% 1.3% 15.3% 0.7% 8.4% 1.2% 14.5% 0.7% 8.0% 1.2% 13.8% 1.3% 15.5% 2.2% 27.0% 1.2% 14.9% 2.2% 26.1% 1.2% 14.4% 2.1% 25.4% 1.2% 13.8% 2.1% 24.6% 1.7% 20.4% 3.1% 36.7% 1.7% 19.9% 3.0% 36.2% 1.6% 19.4% 3.0% 35.8%

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA11 of 12

Confidential - Information as of Nov-28-07

Toll Brothers - Stone Creek - 70 Lots Consolidated Project Summary
31 Mon Beg Oct-10 32 Mon Beg Nov-10 33 Mon Beg Dec-10 34 Mon Beg Jan-11 35 Mon Beg Feb-11 36 Mon Beg Mar-11

Printed on Nov-28-07 03:54 PM

1.0% Sales Inflation starts 10-08 1.0% Cost Inflation starts 10-08 Project IRR 32.4% NPV $6,421,900 Rate 20% Net Cash Flow IRR 41.9%

Profit Reporting (full capitalization method) Total Sales 81,057,000 Less Commissions & Closing Costs -1,621,000 Less 74.2% Cost of Goods Sold after Commissions -58,963,000 Less "Equity" Preferred Return Paid -3,871,000 Less Hanover Preferred Return Paid -137,000 Net Profits Earned 16,464,000 Distribution of Profits "Equity" Profit Paid 8,232,000 Hanover Profit Paid 8,232,000 Total Profits Paid 16,464,000 Note: Actual Project Balance Sheet and Income Statement maybe different based on Accounting & Tax Methods selected by Company. Return on Assets and Return on Equity Analysis Total Income Cumulative - Accrual Basis Average Income per Period Net Assets Cumulative per Period Average Assets per Period Net Equity Cumulative per Period Average Equity per Period Average Return on Assets per Period ROA Annualize (Simple Calc, not Compounded) Average Return per Equity per Period ROE Annualize (Simple Calc, not Compounded)

17,188,000 -344,000 -12,503,000 -162,000 -5,000 4,174,000 2,764,000 2,764,000 5,528,000

11,810,000 -236,000 -8,591,000

2,983,000 5,468,000 5,468,000 10,936,000

20,473,000 569,000

13,149,000 424,000

17,490,000 547,000

17,490,000 530,000

17,490,000 514,000

17,490,000 500,000

20,473,000 569,000

862,706,000 830,402,000 838,355,000 846,410,000 854,526,000 862,706,000 862,706,000 23,964,000 26,787,000 26,199,000 25,649,000 25,133,000 24,649,000 23,964,000 445,172,000 445,172,000 445,172,000 445,172,000 445,172,000 445,172,000 445,172,000 12,366,000 14,360,000 13,912,000 13,490,000 13,093,000 12,719,000 12,366,000 2.4% 28.5% 4.6% 55.2% 1.6% 19.0% 3.0% 35.4% 2.1% 25.0% 3.9% 47.1% 2.1% 24.8% 3.9% 47.1% 2.0% 24.6% 3.9% 47.1% 2.0% 24.3% 3.9% 47.1% 2.4% 28.5% 4.6% 55.2%

©DealBuilder9.0 96-03,License: Hanover Development File: 112807 TB Stone Creek 20mlandpp.prj

Hanover Development LLC (formatted to 1000's)

Page AA12 of 12


				
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