EXHIBIT I

REVOLVING CREDIT FACILITY

SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT

by and among

K. HOVNANIAN ENTERPRISES, INC.
(as the Borrower)

HOVNANIAN ENTERPRISES, INC.
(as a Guarantor)

and

THE LENDERS PARTY HERETO

and

PNC BANK, NATIONAL ASSOCIATION
as Administrative Agent,

BANK OF AMERICA, N.A.

and

WACHOVIA BANK, NATIONAL ASSOCIATION,
as Syndication Agents

and

BANC OF AMERICA SECURITIES LLC

and

WACHOVIA CAPITAL MARKETS, LLC,
as Joint Lead Arrangers and Joint Book Runners

and

THE ROYAL BANK OF SCOTLAND plc

and

JPMORGAN CHASE BANK, N.A.,
as Documentation Agents

Amended and Restated as of March 7, 2008

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TABLE OF CONTENTS

 

 

 

 

 

SECTION

 

 

PAGE

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1.

CERTAIN DEFINITIONS

9

 

1.1

Certain Definitions

9

 

1.2

Construction

33

 

 

1.2.1

Number; Inclusion

33

 

 

1.2.2

Determination

34

 

 

1.2.3

Agent’s Discretion and Consent

34

 

 

1.2.4

Documents Taken as a Whole

34

 

 

1.2.5

Headings

34

 

 

1.2.6

Implied References to this Agreement

34

 

 

1.2.7

Persons

34

 

 

1.2.8

Modifications to Documents

34

 

 

1.2.9

From, To and Through

34

 

 

1.2.10

Shall; Will

34

 

1.3

Accounting Principles

35

 

 

 

 

 

2.

REVOLVING CREDIT AND SWING LOAN FACILITIES

35

 

2.1

Revolving Credit Commitments

35

 

 

2.1.1

Revolving Credit Loans

35

 

 

2.1.2

Swing Loan Commitment

35

 

 

2.1.3

Reduction of Commitment

36

 

2.2

Nature of Lenders’ Obligations with Respect to Revolving Credit Loans

36

 

2.3

Commitment Fees

36

 

2.4

Revolving Credit Loan Requests; Swing Loan Requests

37

 

 

2.4.1

Revolving Credit Loan Requests

37

 

 

2.4.2

Swing Loan Requests

37

 

2.5

Making Revolving Credit Loans and Swing Loans

37

 

 

2.5.1

Generally

37

 

 

2.5.2

Making Swing Loans

38

 

2.6

Swing Loan Note

38

 

2.7

Use of Proceeds

38

 

2.8

Borrowings to Repay Swing Loans

38

 

2.9

Letter of Credit Subfacility

39

 

 

2.9.1

Issuance of Letters of Credit

39

 

 

2.9.2

Letter of Credit Fees

39

 

 

2.9.3

Disbursements, Reimbursement

39

 

 

2.9.4

Repayment of Participation Advances

40

 

 

2.9.5

Documentation

41

 

 

2.9.6

Determinations to Honor Drawing Requests

41

 

 

2.9.7

Nature of Participation and Reimbursement Obligations

41

 

 

2.9.8

Indemnity

42

 

 

2.9.9

Liability for Acts and Omissions

43

 

 

2.9.10

Sharing Letter of Credit Documentation, Reporting

43

 

 

2.9.11

Cash Collateral

43

 

2.10

Extension by Lenders of the Expiration Date

44

 

 

2.10.1

Requests; Approval by All Lenders

44

 

 

2.10.2

Approval by 66-2/3% Lenders

44

 

2.11

Designation of Subsidiaries and Release of Guarantors

45

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2.11.1

Release of Guarantors

45

 

 

2.11.2

Designation of Non-Restricted Person

45

 

 

2.11.3

Automatic Designation of Non-Restricted Person

46

 

 

2.11.4

Designation of Restricted Subsidiary

46

 

 

2.11.5

Automatic Release of Related Collateral and Equity

46

 

2.12

[Reserved]

46

 

 

 

 

 

3.

INTEREST RATES

46

 

3.1

Interest Rate Options, Interest Rate and Fee Floor

46

 

 

3.1.1

Revolving Credit Interest Rate Options, Adjustments

47

 

 

3.1.2

Rate Quotations

47

 

3.2

Interest Periods

48

 

3.3

Interest After Default

48

 

 

3.3.1

Default Rate

48

 

 

3.3.2

Acknowledgment

48

 

3.4

LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available

48

 

 

3.4.1

Unascertainable

48

 

 

3.4.2

Illegality; Increased Costs; Deposits Not Available

48

 

 

3.4.3

Agent’s and Lender’s Rights

49

 

3.5

Selection of Interest Rate Options

49

 

 

 

 

 

4.

PAYMENTS

49

 

4.1

Payments

50

 

4.2

Pro Rata Treatment of Lenders

50

 

4.3

Interest Payment Dates

50

 

4.4

Voluntary Prepayments

50

 

 

4.4.1

Right to Prepay

50

 

 

4.4.2

Replacement of a Lender

51

 

 

4.4.3

Change of Lending Office

52

 

4.5

Mandatory Payments; Temporary Reduction of Commitments

52

 

 

4.5.1

Revolving Facility Usage in Excess of Commitments

52

 

 

4.5.2

Cash in Excess of $100 Million

52

 

 

4.5.3

Issuance of Capital Stock,; Incurrence of Indebtedness - Initial Preference
Period

52

 

4.6

Additional Compensation in Certain Circumstances

53

 

 

4.6.1

Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
Adequacy Requirements, Expenses, Etc

53

 

 

4.6.2

Indemnity

54

 

4.7

Notes

 

54

 

4.8

Settlement Date Procedures

55

 

 

 

 

 

5.

REPRESENTATIONS AND WARRANTIES

55

 

5.1

Representations and Warranties

55

 

 

5.1.1

Organization and Qualification

55

 

 

5.1.2

Subsidiaries

55

 

 

5.1.3

Power and Authority

56

 

 

5.1.4

Validity and Binding Effect

56

 

 

5.1.5

No Conflict

56

 

 

5.1.6

Litigation

56

 

 

5.1.7

Title to Properties

57

 

 

5.1.8

Financial Statements

57

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5.1.9

Use of Proceeds; Margin Stock

57

 

 

5.1.10

Full Disclosure

58

 

 

5.1.11

Taxes

58

 

 

5.1.12

Consents and Approvals

58

 

 

5.1.13

No Event of Default; Compliance with Instruments

58

 

 

5.1.14

Patents, Trademarks, Copyrights, Licenses, Etc

58

 

 

5.1.15

Insurance

59

 

 

5.1.16

Compliance with Laws

59

 

 

5.1.17

Burdensome Restrictions

59

 

 

5.1.18

Investment Companies; Regulated Entities

59

 

 

5.1.19

Plans and Benefit Arrangements

59

 

 

5.1.20

Employment Matters

60

 

 

5.1.21

Environmental Matters

60

 

 

5.1.22

Senior Debt Status

60

 

 

5.1.23

Solvency

61

 

5.2

Continuation of Representations

61

 

 

 

 

 

6.

CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

61

 

6.1

First Loans and Letters of Credit

61

 

 

6.1.1

Officer’s Certificate

61

 

 

6.1.2

Incumbency Certificate

61

 

 

6.1.3

Delivery of Loan Documents

62

 

 

6.1.4

Opinion of Counsel

62

 

 

6.1.5

Legal Details

62

 

 

6.1.6

Payment of Fees

62

 

 

6.1.7

Consents

62

 

 

6.1.8

Officer’s Certificate Regarding MAC

62

 

 

6.1.9

No Actions or Proceedings

63

 

 

6.1.10

Lien Search

63

 

 

6.1.11

Delivery of Certain Security Documents

63

 

6.2

Each Additional Loan or Letter of Credit

63

 

 

 

 

 

7.

COVENANTS

63

 

7.1

Affirmative Covenants

63

 

 

7.1.1

Preservation of Existence, Etc

63

 

 

7.1.2

Payment of Liabilities, Including Taxes, Etc

64

 

 

7.1.3

Maintenance of Insurance

64

 

 

7.1.4

Maintenance of Properties and Leases

64

 

 

7.1.5

Maintenance of Patents, Trademarks, Etc

64

 

 

7.1.6

Visitation Rights

64

 

 

7.1.7

Keeping of Records and Books of Account

65

 

 

7.1.8

Plans and Benefit Arrangements

65

 

 

7.1.9

Compliance with Laws

65

 

 

7.1.10

Use of Proceeds

65

 

 

7.1.11

Anti-Terrorism Laws

65

 

 

7.1.12

Excess Cash During Preference Period

65

 

 

7.1.13

Collateral Matters

66

 

7.2

Negative Covenants

67

 

 

7.2.1

Indebtedness

67

 

 

7.2.2

Liens

67

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7.2.3

Loans and Investments

67

 

 

7.2.4

Liquidations, Mergers, Consolidations, Acquisitions

68

 

 

7.2.5

Dispositions of Assets or Subsidiaries

69

 

 

7.2.6

Restricted Payments; Restricted Investments; Investments in Related Businesses

69

 

 

7.2.7

Subsidiaries, Partnerships and Joint Ventures

70

 

 

7.2.8

Continuation of or Change in Business

70

 

 

7.2.9

Plans and Benefit Arrangements

70

 

 

7.2.10

Borrowing Base

70

 

 

7.2.11

Minimum CTNW

73

 

 

7.2.12

Leverage Ratio

74

 

 

7.2.13

Fixed Charge Coverage Ratio Triggers

74

 

 

7.2.14

Inventory Limits

74

 

 

7.2.15

Fiscal Year

75

 

 

7.2.16

Changes in Subordinated Debt Documents

75

 

7.3

Reporting Requirements

75

 

 

7.3.1

Quarterly Financial Statements

75

 

 

7.3.2

Annual Financial Statements

75

 

 

7.3.3

Certificates of the Borrower

76

 

 

7.3.4

Notice of Default

77

 

 

7.3.5

Notice of Litigation

77

 

 

7.3.6

Notice of Change in Debt Rating

77

 

 

7.3.7

Budgets, Forecasts, Other Reports and Information

77

 

 

7.3.8

Notices Regarding Plans and Benefit Arrangements

78

 

 

 

 

 

8.

DEFAULT

79

 

8.1

Events of Default

79

 

 

8.1.1

Payments Under Loan Documents

79

 

 

8.1.2

Breach of Warranty

79

 

 

8.1.3

Breach of Certain Negative Covenants

79

 

 

8.1.4

Breach of Other Covenants

79

 

 

8.1.5

Defaults in Other Agreements or Indebtedness

79

 

 

8.1.6

Final Judgments or Orders

80

 

 

8.1.7

Loan Document Unenforceable

80

 

 

8.1.8

Uninsured Losses; Proceedings Against Assets

80

 

 

8.1.9

Notice of Lien or Assessment

80

 

 

8.1.10

Insolvency

80

 

 

8.1.11

Events Relating to Plans and Benefit Arrangements

80

 

 

8.1.12

Change of Control

81

 

 

8.1.13

Involuntary Proceedings

81

 

 

8.1.14

Voluntary Proceedings

81

 

8.2

Consequences of Event of Default

81

 

 

8.2.1

Events of Default Other Than Bankruptcy, Insolvency or Reorganization
Proceedings

81

 

 

8.2.2

Bankruptcy, Insolvency or Reorganization Proceedings

82

 

 

8.2.3

Set-off

82

 

 

8.2.4

Suits, Actions, Proceedings

82

 

 

8.2.5

Application of Proceeds

83

 

 

8.2.6

Other Rights and Remedies

83

 

 

 

 

 

9.

THE AGENT

83

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9.1

Appointment

83

 

9.2

Delegation of Duties

83

 

9.3

Nature of Duties; Independent Credit Investigation

84

 

9.4

Actions in Discretion of Agent; Instructions From the Lenders

84

 

9.5

Reimbursement and Indemnification of Agent by the Borrower

84

 

9.6

Exculpatory Provisions; Limitation of Liability

85

 

9.7

Reimbursement and Indemnification of Agent by Lenders

86

 

9.8

Reliance by Agent

86

 

9.9

Notice of Default

86

 

9.10

Notices

86

 

9.11

Lenders in Their Individual Capacities; Agents in its Individual Capacity

87

 

9.12

Holders of Notes

87

 

9.13

Equalization of Lenders

87

 

9.14

Successor Agent

87

 

9.15

Agent’s Fee

88

 

9.16

Availability of Funds

88

 

9.17

Calculations

88

 

9.18

Beneficiaries

89

 

 

 

 

 

10.

MISCELLANEOUS

89

 

10.1

Modifications, Amendments or Waivers

89

 

 

10.1.1

Increase of Commitments

89

 

 

10.1.2

Extension of Payment; Reduction of Principal, Interest or Fees; Modification of
Terms of Payment; Release of Collateral

89

 

 

10.1.3

Release of Borrower

89

 

 

10.1.4

Miscellaneous

89

 

10.2

No Implied Waivers; Cumulative Remedies; Writing Required

90

 

10.3

Reimbursement and Indemnification of Lenders by the Borrower; Taxes

90

 

10.4

Holidays

91

 

10.5

Funding by Branch, Subsidiary or Affiliate

91

 

 

10.5.1

Notional Funding

91

 

 

10.5.2

Actual Funding

91

 

10.6

Notices

92

 

10.7

Severability

92

 

10.8

Governing Law

92

 

10.9

Prior Understanding

93

 

10.10

Duration; Survival

93

 

10.11

Successors and Assigns

93

 

10.12

Confidentiality

94

 

 

10.12.1

General

94

 

 

10.12.2

Sharing Information With Affiliates of the Lenders

94

 

10.13

Counterparts

95

 

10.14

Agent’s or Lender’s Consent

95

 

10.15

Exceptions

95

 

10.16

CONSENT TO FORUM; WAIVER OF JURY TRIAL

95

 

10.17

Certifications From Lenders and Participants

96

 

 

10.17.1

Tax Withholding Clause

96

 

 

10.17.2

USA PATRIOT Act

96

 

10.18

Joinder of Guarantors

97

 

10.19

Concerning Agent Terms

97

 

10.20

Ratification of Notes and Loan Documents and Existing Obligations

97

 

10.21

No Reliance on Agent’s Customer Identification Program

97

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LIST OF SCHEDULES AND EXHIBITS

 

 

 

SCHEDULES

 

 

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SCHEDULE 1.1(A)(1)

-

APPLICABLE MARGIN

 

 

 

SCHEDULE 1.1(A)(2)

-

AUTHORIZED OFFICERS AS OF THE CLOSING DATE

 

 

 

SCHEDULE 1.1(B)

-

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

 

 

SCHEDULE 1.1(C)

-

LISTING OF RESTRICTED SUBSIDIARIES, JOINT VENTURES AND NON-RESTRICTED PERSONS
AND CORPORATE OFFICE SUBSIDIARIES

 

 

 

SCHEDULE 1.1(P)

-

EXISTING PERMITTED LIENS

 

 

 

SCHEDULE 2.9.1

-

EXISTING LETTERS OF CREDIT

 

 

 

SCHEDULE 5.1.8

-

MATERIAL EVENTS SINCE OCTOBER 31, 2007

 

 

 

SCHEDULE 5.1.12

-

CONSENTS AND APPROVALS

 

 

 

EXHIBITS

 

 

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EXHIBIT 1.1(A)

-

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

 

 

EXHIBIT 1.1(G)(1)

-

GUARANTY AGREEMENT

 

 

 

EXHIBIT 1.1(G)(2)

-

GUARANTOR JOINDER

 

 

 

EXHIBIT 1.1(M)

-

FORM OF MORTGAGE

 

 

 

EXHIBIT 1.1(P)

-

PLEDGE AGREEMENT

 

 

 

EXHIBIT 1.1(R)

-

REVOLVING CREDIT NOTE

 

 

 

EXHIBIT 1.1(S)(1)

-

SECURITY AGREEMENT

 

 

 

EXHIBIT 1.1(S)(2)

-

SWING LOAN NOTE

 

 

 

EXHIBIT 2.4.1

-

LOAN REQUEST

 

 

 

EXHIBIT 2.4.2

-

SWING LOAN REQUEST

 

 

 

EXHIBIT 7.3.3.1

-

QUARTERLY COMPLIANCE CERTIFICATE

 

 

 

EXHIBIT 7.3.3.2(A)

-

UNSECURED BORROWING BASE CERTIFICATE

 

 

 

EXHIBIT 7.3.3.2(B)

-

SECURED BORROWING BASE CERTIFICATE

--------------------------------------------------------------------------------

SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT

          THIS SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”)
is dated as of March 7, 2008, and is made by and among K. HOVNANIAN ENTERPRISES,
INC., a California corporation (the “Borrower”), HOVNANIAN ENTERPRISES, INC., a
Delaware corporation (“Hovnanian” and a “Guarantor”), the LENDERS (as
hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as
administrative agent for the Lenders under this Agreement (hereinafter referred
to in such capacity as the “Agent”).

WITNESSETH:

          WHEREAS, the Lenders provided a $1,500,000,000 revolving credit
facility to the Borrower pursuant to a Sixth Amended and Restated Credit
Agreement dated May 31, 2006 (as heretofore amended, waived, modified, or the
like), among the parties hereto (the “Prior Credit Agreement”);

          WHEREAS, the Borrower and the Lenders have agreed that the Prior
Credit Agreement be amended and restated as provided herein to, among other
things, secure the payment of the Obligations hereunder and reduce the principal
amount of the Revolving Credit Commitments;

          WHEREAS, the revolving credit provided hereunder shall be used to
refinance existing indebtedness, provide for letters of credit and provide
working capital and funds for general corporate purposes;

          NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:

1. CERTAIN DEFINITIONS

          1.1 Certain Definitions.

          In addition to words and terms defined elsewhere in this Agreement,
the following words and terms shall have the following meanings, respectively,
unless the context hereof clearly requires otherwise:

          Acceptable Appraisal shall mean an appraisal commissioned by and
addressed to the Agent (reasonably acceptable to the Agent as to form,
assumptions, substance, and appraisal date), prepared by a qualified
professional appraiser reasonably acceptable to the Agent, and complying in all
material respects with the requirements of the Federal Financial Institutions
Reform, Recovery and Enforcement Act of 1989.

          Additional Mortgaged Collateral shall mean Qualified Real Property as
to which the Agent has for the benefit of the Lenders been granted a first
priority Lien (subject only to Limited Permitted Liens) in accordance with
Section 7.1.13(iv).

          Adjusted Appraised Value shall mean with respect to any real property
constituting Mortgaged Collateral as determined for any month end (a) the
Appraised Value of such real property based on the most recent Acceptable
Appraisal for such real property, less (b) (i) the Appraised Value Equivalent
for such real property (calculated as of the most recent previous month end)
multiplied (ii) by the cost of homes or lots comprising a portion of such real
property that were delivered since the effective date of the most recent
Acceptable Appraisal for such real property, plus (c) the amounts that were
spent on land

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development, land or lot purchases, construction costs, or other costs
associated with such property and capitalized in the book value of the inventory
for such property in accordance with GAAP since the effective date of the most
recent Acceptable Appraisal for such real estate, in each case as set forth in
the Borrowing Base Certificate and Borrowing Base draft reconciliation statement
provided with respect to such month end by Borrower pursuant to Sections
7.3.3.2(a) and (c).

          Adjusted Cash Collateral shall mean with respect to any fiscal quarter
the average of the actual amount of cash and cash equivalents on deposit in the
Cash Collateral Accounts on the last day of each month during such fiscal
quarter (without regard to any limitation thereon or non-recognition thereof as
may otherwise be applicable hereunder), and shall not include any L/C Cash
Collateral.

          Adjusted Cash Flow from Operations shall mean, as of the last day of
any fiscal quarter, the sum of the cash flows from operating activities and cash
flows from investing activities, excluding changes in mortgage notes receivable,
as reported for such fiscal quarter on Hovnanian’s consolidated statement of
cash flows for such quarter provided pursuant to Section 7.3.

          Adjusted Leverage Ratio shall mean the ratio of (a)(i) Homebuilding
Indebtedness minus (ii) Adjusted Cash Collateral to (b) Adjusted Tangible Net
Worth plus the Deferred Tax Valuation Allowance.

          Adjusted Operating Income shall mean for any period the sum of (i)
consolidated net income of Hovnanian for such period, (ii) to the extent
deducted in arriving at such net income, consolidated income taxes, consolidated
interest expense, Letter of Credit Fees, depreciation, amortization, non-cash
valuation charges or adjustments and (iii) cash distributions received by any
Loan Party from Non-Restricted Persons during such period. Adjusted Operating
Income shall exclude net income or loss of Non-Restricted Persons.

          Adjusted Tangible Net Worth (or ATNW) shall mean as of any date (i)
Consolidated Shareholders Equity of Hovnanian as of such date minus, without
duplication (ii) (A) Intangibles, (B) the Dollar amount of Restricted
Investments, and (C) equity (comprising “cost” according to GAAP minus the
amount of debt secured by applicable mortgages) in residential inventory
properties purchased with the proceeds of, and secured by, Purchase Money
Mortgages as of such date, all as calculated and consolidated in accordance with
GAAP.

          Affiliate as to any Person shall mean any other Person (i) which
directly or indirectly controls, is controlled by, or is under common control
with such Person, (ii) which beneficially owns or holds 10% or more of any class
of the voting or other equity interests of such Person, or (iii) 10% or more of
any class of voting interests or other equity interests of which is beneficially
owned or held, directly or indirectly, by such Person. Control, as used in this
definition, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ownership of voting securities, by contract or otherwise, including
the power to elect a majority of the directors or trustees of a corporation or
trust, as the case may be.

          Agent shall mean PNC Bank, National Association, and its successors
and assigns, in its capacity as administrative agent for the Lenders hereunder.

          Agent’s Fee shall have the meaning assigned to that term in Section
9.15 [Agent’s Fee].

          Agreement shall mean this Agreement, as the same may be supplemented
or amended from time to time, including all schedules and exhibits.

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          Alternative Secured Borrowing Base shall mean the Secured Borrowing
Base except that “65%” in clause (b) of the definition of such term shall be
replaced with “50%” for the purposes of the Alternative Secured Borrowing Base.

          Annual Statements shall have the meaning assigned to that term in
Section 5.1.8((i) [Historical Statements]).

          Anti-Terrorism Laws shall mean any Laws relating to terrorism or money
laundering, including Executive Order No. 13224, the USA Patriot Act, the Laws
comprising or implementing the Bank Secrecy Act, and the Laws administered by
the United States Treasury Department’s Office of Foreign Asset Control (as any
of the foregoing Laws may from time to time be amended, renewed, extended, or
replaced).

          Applicable Letter of Credit Fee Rate shall mean the Applicable Margin
under the LIBOR Rate Option less 12.5 basis points.

          Applicable Margin shall mean, as applicable:

          (A) the percentage spread to be added to Base Rate under the Base Rate
Option based on the Adjusted Leverage Ratio then in effect according to the
Pricing Grid below the heading “Base Rate Margin”,

          (B) the percentage spread to be added to LIBOR Rate under the LIBOR
Rate Option based on the Adjusted Leverage Ratio then in effect according to the
Pricing Grid below the heading “LIBOR Margin”, and

          (C) the percentage spread to be added to the Index Rate under the
Index Rate Option based on the Adjusted Leverage Ratio then in effect according
to the Pricing Grid below the heading “Index Rate Margin”.

The Applicable Margin with respect to the Base Rate Option, LIBOR Rate Option,
and Index Rate Option shall be determined in accordance with the Pricing Grid
set forth on Schedule 1.1(A)(1) for the Base Rate Margin, the LIBOR Margin and
Index Rate Margin, respectively.

          Applicable Commitment Fee Rate shall mean the percentage rate per
annum based on the Adjusted Leverage Ratio then in effect according to the
Pricing Grid below the heading “Commitment Fee.”

          Appraised Value shall mean, with respect to any real estate
development or other real property or any portion thereof, the appraised value
of such real property or portion thereof set forth in the most-recent Acceptable
Appraisal obtained by the Agent pursuant to the terms hereof. The Appraised
Value of a portion of a development or other real property, not having been
separately subject to an Acceptable Appraisal, shall be calculated based upon
the Acceptable Appraisal for such real property and allocated to such portion of
such real property by the Borrower based upon a reasonable methodology approved
by the Agent, including a methodology (consistent with the definition of
Adjusted Appraised Value) to reflect the value of ongoing or completed
construction of Dwelling Units and improvements to Land Under Development.

          Appraised Value Equivalent shall mean at any time of determination,
with respect to any real property constituting Mortgaged Collateral, the ratio
of (a) the Adjusted Appraised Value (or if such Adjusted Appraised Value has not
been established, then the Appraised Value) of such real property at

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such time to (b) the book value of such real property as shown on the most
recent balance sheet of Hovnanian or the appropriate Loan Party (such ratio not
to exceed 100%), in each case as set forth on the Borrowing Base Certificate
provided pursuant to Section 7.3.3.2(a) for such date of determination.

          Assignee Lender shall have the meaning assigned to such term in
Section 2.10.2.

          Assignment and Assumption Agreement shall mean an Assignment and
Assumption Agreement by and among a Purchasing Lender, a Transferor Lender and
the Agent, as Agent and on behalf of the remaining Lenders, substantially in the
form of Exhibit 1.1(A).

          Authorized Officer shall mean those individuals listed on Schedule
1.1(A)(2) or otherwise designated by written notice to the Agent from the
Borrower, authorized to execute notices, reports and other documents on behalf
of the Loan Parties required hereunder. The Borrower may amend such list of
individuals from time to time by giving written notice of such amendment to the
Agent.

          Bank of America shall mean Bank of America, N.A.

          Base Rate shall mean the greater of (i) the interest rate per annum
announced from time to time by the Agent at its Principal Office as its then
prime rate, which rate may not be the lowest rate then being charged commercial
borrowers by the Agent, or (ii) the Federal Funds Open Rate plus 1/2% per annum.

          Base Rate Option shall mean the option of the Borrower to have
Revolving Credit Loans bear interest at the rate and under the terms and
conditions set forth in Section 3.1.1(i) [Revolving Credit Base Rate Option].

          Benefit Arrangement shall mean at any time an “employee benefit plan,”
within the meaning of Section 3(3) of ERISA, which is neither a Plan nor a
Multiemployer Plan and which is maintained, sponsored or otherwise contributed
to by the Borrower.

          Borrower shall mean K. Hovnanian Enterprises, Inc., a corporation
organized and existing under the laws of the State of California and
wholly-owned by Hovnanian.

          Borrowing Base shall mean (a) the Unsecured Borrowing Base until the
end of the Due Diligence Period, and (b) thereafter, the Secured Borrowing Base.

          Borrowing Base Certificate shall mean the Borrowing Base Certificate
(a) until the end of the Due Diligence Period, substantially in the form of
Exhibit 7.3.3.2(A), and (b) thereafter, substantially in the form of Exhibit
7.3.3.2(B), in each case duly completed and delivered by the Borrower pursuant
to Section 7.3.3.2 [Borrowing Base Certificate].

          Borrowing Date shall mean, with respect to any Loan, the date for the
making thereof or the renewal or conversion thereof at or to the same or a
different Interest Rate Option, which shall be a Business Day.

          Borrowing Tranche shall mean specified portions of Loans outstanding
as follows: (i) any Loans to which a LIBOR Rate Option applies which become
subject to the same Interest Rate Option under the same Loan Request by the
Borrower and which have the same Interest Period shall constitute one Borrowing
Tranche, (ii) all Loans to which a Base Rate Option applies shall constitute one
Borrowing Tranche, and (iii) all Loans to which an Index Rate Option applies
shall constitute one Borrowing Tranche.

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          Business Day shall mean any day other than a Saturday or Sunday or a
legal holiday on which commercial banks are authorized or required to be closed
for business at the Principal Office or in New York, New York and if the
applicable Business Day relates to any Loan to which the LIBOR Rate Option
applies, such day must also be a day on which dealings are carried on in the
London interbank market.

          Capital Stock shall mean any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation, any
and all equivalent ownership interests in a Person (other than a corporation),
and any and all warrants, rights or options to purchase any of the foregoing.

          Capital Stock Retirement shall mean any repurchase, redemption,
acquisition or retirement of any Capital Stock of Hovnanian, Borrower, or any
Restricted Subsidiary; provided that “Capital Stock Retirement” shall not
include the conversion or exchange of any Capital Stock of a Loan Party into
another type or class of Capital Stock of the same Loan Party.

          Cash Collateral Account shall mean one or more deposit or securities
accounts at or maintained by the Agent or any of the Lenders or any one or more
Affiliates of Agent or any of the Lenders in which the Agent holds for the
benefit of the Lenders a first priority perfected security interest securing the
payment and performance of the Obligations.

          Closing Date shall mean March 7, 2008, which shall be the date hereof.

          Collateral shall mean all property of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security
Document.

          Collateral Reserves shall have the meaning set forth at the definition
of Limited Permitted Liens.

          Commitment shall mean as to any Lender its Revolving Credit Commitment
and, in the case of the Agent, its Revolving Credit Commitment and its Swing
Loan Commitment; and Commitments shall mean the aggregate of the Revolving
Credit Commitments of all of the Lenders, including the Swing Loan Commitment of
the Agent.

          Commitment Fee shall have the meaning assigned to that term in Section
2.3 [Commitment Fees].

          Compliance Certificate shall have the meaning assigned to such term in
Section 7.3.3.1 [Certificates of the Borrower].

          Consolidated Shareholders Equity shall mean the consolidated
shareholders equity of the Borrower and its Subsidiaries determined in
accordance with GAAP, including Qualified Preferred Equity.

          Consolidated Tangible Net Worth (or CTNW) shall mean Consolidated
Shareholders Equity, less Intangibles.

          Contamination shall mean the presence or release or threat of release
of Regulated Substances in, on, under or emanating to or from any of the
Property, which pursuant to Environmental Laws requires notification or
reporting to an Official Body, or which pursuant to Environmental Laws requires
the investigation, cleanup, removal, remediation, containment, abatement of or
other response action or which otherwise constitutes a violation of
Environmental Laws.

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          Corporate Office Subsidiary shall mean any Subsidiary that owns, as
its primary asset, an office building which is occupied, in whole or in part, by
Hovnanian or one or more of its Subsidiaries. Any such Corporate Office
Subsidiary may be a Restricted Subsidiary or Non-Restricted Person in accordance
with the terms of this Agreement. The Corporate Office Subsidiaries as of the
date hereof are identified as such on Schedule 1.1(C).

          Debt Rating shall mean the rating of Hovnanian’s senior unsecured
long-term debt by each of the Qualified Rating Agencies.

          Default Rate shall have the meaning assigned to that term in Section
3.3.l [Default Rate].

          Deferred Tax Valuation Allowance shall mean the amount recorded by
Hovnanian on a consolidated basis, beginning in the fourth fiscal quarter of
2007, as a reserve against deferred tax assets, as a result of the application
of FAS 109 in accordance with GAAP. The Deferred Tax Valuation Allowance is
equal to $216 million as of October 31, 2007, and will be adjusted (i) to
increase in accordance with additional FAS 109 charges incurred each quarter for
additional tax losses that the Borrower and Hovnanian expect will reverse as
profits are realized in the future, and (ii) to reduce as deferred tax assets
previously included in the Deferred Tax Valuation Allowance are recognized
pursuant to FAS 109.

          Dividends shall mean any dividend or distribution by a Person in
respect of its capital stock or ownership interests, whether in cash, property
or securities.

          Dollar, Dollars, U.S. Dollars and the symbol $ shall mean lawful money
of the United States of America.

          Drawing Date shall mean each date that an amount is paid by the Letter
of Credit Lender under any Letter of Credit.

          Due Diligence Period shall mean the period commencing on the Closing
Date and continuing through the earlier of (i) the date on which Agent confirms
in writing to Borrower that the Due Diligence Tasks have been completed with
respect to the Initial Mortgaged Collateral as reasonably determined by the
Agent, or (ii) May 31, 2008 (as such date may be extended by up to 60 days in
the reasonable discretion of Agent so long as Borrower is diligently attempting
to complete or assist in the completion of, as the case may be, the Due
Diligence Tasks; provided, that in no event shall the Due Diligence Period
extend beyond July 31, 2008).

          Due Diligence Tasks shall have the meaning given to such term at
Section 7.1.13.

          Dwelling Unit shall mean a residential housing unit held for sale by a
Loan Party.

          Environmental Complaint shall mean any written complaint by any Person
or Official Body setting forth a cause of action for personal injury or property
damage, natural resource damage, contribution or indemnity for response costs,
civil or administrative penalties, criminal fines or penalties, or declaratory
or equitable relief arising under any Environmental Laws or under any order,
notice of violation, citation, subpoena, request for information or other
written notice or demand of any type issued by an Official Body pursuant to any
Environmental Laws.

          Environmental Laws shall mean all federal, state, local and foreign
Laws and any consent decrees, settlement agreements, judgments, orders,
directives, policies or programs issued by or entered into with an Official Body
pertaining or relating to: (i) pollution or pollution control; (ii) protection
of

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human health or the environment; (iii) employee safety in the workplace; (iv)
the presence, use, management, generation, manufacture, processing, extraction,
treatment, recycling, refining, reclamation, labeling, transport, storage,
collection, distribution, disposal or release or threat of release of Regulated
Substances; (v) the presence of Contamination; (vi) the protection of endangered
or threatened species; and (vii) the protection of Environmentally Sensitive
Areas.

          Environmentally Sensitive Area shall mean (i) any wetland as defined
by applicable Environmental Laws; (ii) any area designated as a coastal zone
pursuant to applicable Laws, including Environmental Laws; (iii) any area of
historic or archeological significance or scenic area as defined or designated
by applicable Laws, including Environmental Laws; (iv) habitats of endangered
species or threatened species as designated by applicable Laws, including
Environmental Laws; or (v) a floodplain or other flood hazard area as defined
pursuant to any applicable Laws.

          ERISA shall mean the Employee Retirement Income Security Act of 1974,
as the same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as from
time to time in effect.

          ERISA Group shall mean, at any time, the Borrower and any entity
(whether or not incorporated) that is under common control with the Borrower
within the meaning of Section 4001 of ERISA, or the Borrower and all other
entities which, together with the Borrower, are treated as a single employer
under Sections 414 (b) or (c) of the Internal Revenue Code.

          Event of Default shall mean any of the events described in Section 8.1
[Events of Default] and referred to therein as an “Event of Default.”

          Executive Order No. 13224 shall mean the Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001, as the same has been, or
shall hereafter be, renewed, extended, amended or replaced.

          Expiration Date shall mean, with respect to the Revolving Credit
Commitments, May 31, 2011 as such may be extended pursuant to Section 2.10
[Extension by Lenders of the Expiration Date].

          Extending Lender shall have the meaning assigned to such term in
Section 2.10.2 [Approval by 66-2/3% Lenders].

          Federal Funds Effective Rate for any day shall mean the rate per annum
(based on a year of 360 days and actual days elapsed and rounded upward to the
nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or any
successor) on such day as being the weighted average of the rates on overnight
federal funds transactions arranged by federal funds brokers on the previous
trading day, as computed and announced by such Federal Reserve Bank (or any
successor) in substantially the same manner as such Federal Reserve Bank
computes and announces the weighted average it refers to as the “Federal Funds
Effective Rate” as of the date of this Agreement; provided, if such Federal
Reserve Bank (or its successor) does not announce such rate on any day, the
“Federal Funds Effective Rate” for such day shall be the Federal Funds Effective
Rate for the last day on which such rate was announced.

          Federal Funds Open Rate shall mean the rate per annum determined by
the Agent in accordance with its usual procedures (which determination shall be
conclusive absent manifest error) to be the “open” rate for federal funds
transactions as of the opening of business for federal funds transactions among
members of the Federal Reserve System arranged by federal funds brokers on such
day, as quoted by Garvin Guybutler, any successor entity thereto, or any other
broker selected by the Agent, as set forth on the applicable Telerate display
page; provided, however; that if such day is not a Business Day, the

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Federal Funds Open Rate for such day shall be the “open rate” on the immediately
preceding Business Day, or if no such rate shall be quoted by a Federal funds
broker at such time, such other rate as determined by the Agent in accordance
with its usual procedures.

          Fee Letter shall have the meaning assigned to that term in
Section 9.15 [Agent’s Fee].

          Financial Projections shall have the meaning assigned to that term in
Section 5.1.8((ii)) [Financial Projections].

          Finished Lots and Land Under Development shall mean the Dollar amount
of the lower of (i) actual cost (including land costs and capitalized expenses
relating thereto) or (ii) the market value (determined in accordance with GAAP))
of any land owned by a Loan Party that has been granted Preliminary Approvals
until a time which is the earlier of when (x) it is “Unsold Homes” and (y) it is
“Sold Homes”.

          Fitch shall mean Fitch IBCA, Duff & Phelps, a division of Fitch, Inc.,
and its successors.

          Fixed Charge Coverage Ratio shall mean the ratio, as of any date of
determination, of (i) Adjusted Operating Income for the prior four fiscal
quarters just ended to (ii) four (4) multiplied by Fixed Charges for the
most-recently ended fiscal quarter.

          Fixed Charges shall mean as of the last day of any fiscal quarter the
sum, without duplication, of (i) interest cost incurred on all Senior
Homebuilding Indebtedness over the past fiscal quarter; (ii) interest cost
incurred on the Subordinated Debt over the past fiscal quarter; (iii) 50% of the
interest cost incurred on all Purchase Money Mortgages over the past fiscal
quarter; (iv) Letter of Credit Fees accrued over the past fiscal quarter; and
(v) the interest component of capitalized leases over the past fiscal quarter.

          GAAP shall mean generally accepted accounting principles as are in
effect from time to time, subject to the provisions of Section 1.3 [Accounting
Principles], and applied on a consistent basis both as to classification of
items and amounts.

          Governmental Acts shall have the meaning assigned to that term in
Section 2.9.8 [Indemnity].

          Guarantor shall mean each of the parties to the Guaranty Agreement
(and designated as a “Guarantor” on Schedule 1.1(C)) and each other Person which
joins the Guaranty Agreement as a Guarantor after the date hereof pursuant to
Section 10.18 [Joinder of Guarantors]. As of the Closing Date, Hovnanian shall
be a Guarantor and all Restricted Subsidiaries other than the Borrower shall be
Guarantors.

          Guarantor Joinder shall mean a joinder by a Person as a Guarantor
under the Guaranty Agreement substantially in the form of Exhibit 1.1(G)(2).

          Guaranty of any Person shall mean any obligation of such Person
guaranteeing or in effect guaranteeing any Indebtedness of any other Person in
any manner, whether directly or indirectly.

          Guaranty Agreement shall mean the Amended and Restated Guaranty and
Suretyship Agreement dated the Closing Date substantially in the form attached
as Exhibit 1.1(G)(1) hereto and executed and delivered by each of the Guarantors
to the Agent for the benefit of the Lenders, as supplemented by joinders
delivered from time to time in respect of new Guarantors.

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          Hedge Agreement shall mean, as to any Person, any swap, cap, collar or
similar arrangement entered into by such Person providing for protection against
fluctuations in interest rates or currency exchange rates or the exchange of
nominal interest obligations, either generally or under specific contingencies.

          Hedge Agreement Termination Value shall mean, in respect of any one or
more Hedge Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Hedge Agreements, (a) for any
date on or after the date such Hedge Agreements have been closed out at
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market or other readily available quotations
provided by any recognized dealer in such Hedge Agreements (which may include a
Lender or any Affiliate of a Lender).

          Historical Statements shall have the meaning assigned to that term in
Section 5.1.8((i)) [Historical Statements].

          Homebuilding Indebtedness shall mean as of any date the sum of (i)
Senior Homebuilding Indebtedness as of such date and (ii) Subordinated Debt as
of such date.

          Hovnanian shall mean Hovnanian Enterprises, Inc., a Delaware
corporation, shares of whose Class A Common Stock are registered pursuant to the
Securities Exchange Act of 1934.

          Indebtedness shall mean, as to any Person at any time, any and all
indebtedness, obligations or liabilities (whether matured or unmatured,
liquidated or unliquidated, direct or indirect, absolute or contingent, or joint
or several) of such Person for or in respect of: (i) borrowed money, (ii)
amounts raised under or liabilities in respect of any note purchase or
acceptance credit facility, (iii) reimbursement obligations (contingent or
otherwise) under any letter of credit, (iv) all net obligations under any Hedge
Agreement (measured as the Hedge Agreement Termination Value thereof) (v) any
other transaction (including forward sale or purchase agreements, capitalized
leases and conditional sales agreements) having the commercial effect of a
borrowing of money entered into by such Person to finance its operations or
capital requirements (but not including trade payables and accrued expenses
incurred in the ordinary course of business which are not more than ninety (90)
days past due or that are being contested in good faith by appropriate
proceedings), if and to the extent any of the foregoing in this item (v) would
appear as a liability on the balance sheet of such Person prepared on a
consolidated basis in accordance with GAAP, or (vi) any Guaranty of Indebtedness
for borrowed money. Indebtedness shall not include Qualified Preferred Equity.

          Index Rate shall mean the rate per annum determined by the Agent by
dividing (the resulting quotient rounded upwards, if necessary, to the nearest
1/100th of 1%) (a) the Published Rate by (b) a number equal to 1.00 minus the
LIBOR Rate Reserve Percentage (“Daily LIBOR”). “Published Rate” shall mean the
rate of interest published each Business Day in The Wall Street Journal “Money
Rates” listing under the caption “London Interbank Offered Rates” for a one
month period (or, if no such rate is published therein for any reason, then the
Published Rate shall be the eurodollar rate for a one month period as published
in another publication determined by Agent). The rate of interest charged shall
be adjusted as of each Business Day based on changes in Daily LIBOR without
notice to Borrowers, and shall be applicable from the effective date of any such
change. If Daily LIBOR applies, all calculations of interest will be computed on
the basis of a year of 360 days and paid on the actual number of days elapsed..

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          Index Rate Option shall mean the option of the Borrower to have
Revolving Credit Loans bear interest at the rate and under the terms and
conditions set forth in Section 3.1.1(iii) [Revolving Credit Index Rate Option].

          Initial Mortgaged Collateral shall have the meaning given such term by
Section 7.1.13(iii).

          Insolvency Proceeding shall mean, with respect to any Person, (a) a
case, action or proceeding with respect to such Person (i) before any court or
any other Official Body under any bankruptcy, insolvency, reorganization or
other similar Law now or hereafter in effect, or (ii) for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of any Loan Party or otherwise relating to the
liquidation, dissolution, winding-up or relief of such Person, or (b) any
general assignment for the benefit of creditors, composition, marshaling of
assets for creditors, or other, similar arrangement in respect of such Person’s
creditors generally or any substantial portion of its creditors undertaken under
any Law.

          Intangibles shall mean all patents, patent applications, copyrights,
trademarks, tradenames, goodwill, organization expenses and other like items of
Hovnanian and its Subsidiaries which are treated as intangibles under GAAP.

          Interest Period shall mean the period of time selected by the Borrower
in connection with (and to apply to) any election permitted hereunder by the
Borrower to have Revolving Credit Loans bear interest under the LIBOR Rate
Option. Subject to the last sentence of this definition, such period shall be
one, two, three or six Months if Borrower selects the LIBOR Rate Option. Such
Interest Period shall commence on the effective date of such Interest Rate
Option, which shall be (i) the Borrowing Date if the Borrower is requesting new
Loans, or (ii) the date of renewal of or conversion to the LIBOR Rate Option if
the Borrower is renewing or converting to the LIBOR Rate Option applicable to
outstanding Loans. Notwithstanding the second sentence hereof: (A) any Interest
Period which would otherwise end on a date which is not a Business Day shall be
extended to the next succeeding Business Day unless such Business Day falls in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day, and (B) the Borrower shall not select, convert to
or renew an Interest Period for any portion of the Loans that would end after
the Expiration Date.

          Interest Rate Option shall mean any LIBOR Rate Option, Base Rate
Option, or Index Rate Option.

          Interim Additional Mortgaged Collateral shall have the meaning set
forth for such term at Section 7.1.13(iv).

          Interim Value shall have the meaning set forth for such term at
Section 7.1.13(iv).

          Internal Revenue Code shall mean the Internal Revenue Code of 1986, as
the same may be amended or supplemented from time to time, and any successor
statute of similar import, and the rules and regulations thereunder, as from
time to time in effect.

          Investment shall mean any loan or advance to or on behalf of, or
purchase, acquisition or ownership of any stock, bonds, notes or securities of,
or any partnership interest (whether general or limited) or limited liability
company interest in, or any other similar investment or interest in, or any
capital contribution made to, any other Person.

          Investment in Related Businesses shall have the meaning assigned to
such term in Section 7.2.6.

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          Joint Ventures shall mean any Person in whom a Loan Party has an
ownership interest and which is not a “Subsidiary” as defined in this Agreement.
Each of the Joint Ventures as of the Closing Date is listed on Schedule 1.1(C).

          Labor Contracts shall mean all employment agreements, employment
contracts, collective bargaining agreements and other agreements among any Loan
Party or Subsidiary of a Loan Party and its employees.

          Law shall mean any law (including common law), constitution, statute,
treaty, regulation, rule, ordinance, opinion, release, ruling, order,
injunction, writ, decree, bond, judgment, authorization or approval, lien or
award of or settlement agreement with any Official Body.

          L/C Cash Collateral is defined at Section 2.9.11.

          Lenders shall mean the financial institutions listed on Schedule
1.1(B) and their respective successors and assigns as permitted hereunder; and,
each of the Lenders is referred to herein as a Lender.

          Letter of Credit shall have the meaning assigned to that term in
Section 2.9.1 [Issuance of Letters of Credit].

          Letter of Credit Borrowing shall have the meaning assigned to such
term in Section 2.9.3.4 [Disbursements, Reimbursement].

          Letter of Credit Expiration Date means the date that is 364-days after
the Expiration Date.

          Letter of Credit Fee shall have the meaning assigned to that term in
Section 2.9.2 [Letter of Credit Fees].

          Letter of Credit Lender shall have the meaning assigned to that term
in Section 2.9.1 [Issuance of Letters of Credit].

          Letter of Credit Outstandings shall mean at any time the sum of (i)
the aggregate undrawn face amount of outstanding Letters of Credit and (ii) the
aggregate amount of all unpaid and outstanding Reimbursement Obligations and
Letter of Credit Borrowings.

          Letter of Credit Sublimit shall have the meaning set forth at Section
2.9.1.

          Leverage Ratio shall mean the ratio of (x)(i) Homebuilding
Indebtedness minus (ii) Adjusted Cash Collateral to (y) Adjusted Tangible Net
Worth.

          LIBOR Rate shall mean, with respect to the Loans comprising any
Borrowing Tranche to which the LIBOR Rate Option applies for any Interest
Period, the interest rate per annum determined by the Agent by dividing (the
resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1%
per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on such
other substitute Bloomberg page that displays rates at which. Dollar deposits
are offered by leading banks in the London interbank deposit market), or the
rate which is quoted by another source selected by the Agent which has been
approved by the British Bankers’ Association as an authorized information vendor
for the purpose of displaying rates at which Dollar deposits are offered by
leading banks in the London interbank deposit market (an “Alternate Source”), at
approximately 11:00 a.m., London time, two (2) Business Days prior to the
commencement of such Interest Period as the London interbank offered rate for
Dollars for an amount comparable to such Borrowing Tranche and having a
borrowing date and a maturity comparable

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to such Interest Period (or if there shall at any time, for any reason, no
longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate
Source, a comparable replacement rate determined by the Agent at such time
(which determination shall be conclusive absent manifest error), by (ii) a
number equal to 1.00 minus the LIBOR Rate Reserve Percentage. The LIBOR Rate may
also be expressed by the following formula:

 

 

LIBOR Rate = 

Average of London interbank offered rates quoted

 

by Bloomberg or appropriate successor as shown on

 

Bloomberg Page BBAM1

 

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          1.00 - LIBOR Rate Reserve Percentage

The LIBOR Rate and Index Rate shall be adjusted with respect to any Loan to
which the LIBOR Rate Option or Index Rate Option applies that is outstanding on
the effective date of any change in the LIBOR Rate Reserve Percentage as of such
effective date. The Agent shall give prompt notice to the Borrower of the LIBOR
Rate as determined or adjusted in accordance herewith, which determination shall
be conclusive absent manifest error.

          LIBOR Rate Option shall mean the option of the Borrower to have
Revolving Credit Loans bear interest at the rate and under the terms and
conditions set forth in Section 3.1.1(ii) [Revolving Credit LIBOR Rate Option].

          LIBOR Rate Reserve Percentage shall mean as of any day the maximum
percentage in effect on such day, as prescribed by the Board of Governors of the
Federal Reserve System (or any successor) for determining the reserve
requirements (including supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as
“Eurocurrency Liabilities”).

          Lien shall mean any mortgage, deed of trust, pledge, lien, security
interest, charge or other encumbrance or security arrangement of any nature
whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security.

          Limited Permitted Liens shall mean:

          (i) Liens for taxes, assessments or other governmental charges not yet
payable;

          (ii) Mechanics’, materialmen’s, warehousemen’s, carriers’ or other
like liens arising in the ordinary course of business securing obligations which
are not overdue for a period longer than 30 days;

          (iii) The following Liens set forth in (I) through (IV) below so long
as (a) the validity or amount thereof is being contested in good faith by
appropriate and lawful proceedings diligently conducted and any levy or
execution thereon shall have been stayed and continue to be stayed, (b) any
final judgment with respect thereto is discharged within thirty (30) days of
entry, (c) such Liens do not in the aggregate materially impair the ability of
the Loan Parties to perform their Obligations hereunder or under the other Loan
Documents, and (d) adequate reserves have been established with respect to all
such Liens in accordance with GAAP:

                              I. Claims or Liens for taxes, assessments or
charges due and payable and subject to interest or penalty, provided the
applicable Loan Party pays all such taxes, assessments or charges forthwith upon
the commencement of proceedings to foreclose any such Lien;

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                              II. Claims, Liens or encumbrances upon, and
defects of title to, real or personal property, including any attachment of
personal or real property or other legal process, prior to adjudication of a
dispute on the merits thereof (except to the extent such attachment constitutes
an Event of Default under Section 8.1.8);

                              III. Claims or Liens of mechanics, materialmen,
warehousemen, carriers, or other statutory nonconsensual Liens; and

                              IV. Liens resulting from final judgments or orders
described in Section 8.1.6 (to the extent that any such judgments or orders and
related Liens do not constitute an Event of Default under Section 8.1.6);

The sum of the reserves established, if any, with respect to (I), (II), (III)
and (IV) above in accordance with GAAP as to the Mortgaged Collateral shall be
referred to as the “Collateral Reserves”;

          (iv) Encumbrances consisting of zoning restrictions, easements or
other restrictions on the use of real property or Liens that are exceptions to
coverage in the title policies referred to in clause (c) of the definition of
Mortgage Condition, none of the foregoing of which materially impairs the use of
such property or the value thereof, and none of which is violated in any
material respect by existing or proposed structures or land use;

          (v) Any Lien existing on the date of this Agreement and described on
Schedule 1.1(P), provided that the principal amount secured thereby is not
hereafter increased, and no additional assets become subject to such Lien; and

          (vi) Any PAPA, so long as (x) the purchase contract related thereto is
on market terms, (y) no default exists with respect to such purchase contract,
and (z) as to any PAPA relating to Mortgaged Collateral, the terms of the
purchase contract related thereto as of the date such real estate becomes
Collateral do not change and no additional assets become subject to such
purchase contract (unless such new assets become Additional Mortgaged
Collateral).

          Liquidity shall mean at any time without duplication (a) the amount of
cash and cash equivalents in Cash Collateral Accounts plus (b) the amount by
which (i) the lesser of the Borrowing Base and the Revolving Credit Commitments
at such time exceeds (ii) the Revolving Facility Usage at such time.

          LLC Interests shall have the meaning assigned to such term in
Section 5.1.2 [Subsidiaries].

          Loan Documents shall mean this Agreement, the Fee Letter, the Notes,
the Guaranty Agreement, the Security Documents, environmental indemnity
agreement, and any other instruments, certificates or documents delivered or
contemplated to be delivered hereunder or thereunder or in connection herewith
or therewith, as the same may be supplemented or amended from time to time in
accordance herewith or therewith, and Loan Document shall mean any of the Loan
Documents.

          Loan Parties shall mean the Borrower and the Guarantors.

          Loan Request shall have the meaning assigned to that term in
Section 2.4 [Revolving Credit Loan Requests; Swing Loan Requests].

          Loans shall mean collectively all Revolving Credit Loans and Swing
Loans and Loan shall mean separately, any Revolving Credit Loan or Swing Loan.

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          Majority Lenders shall mean

                    (i) if there are no Loans, Reimbursement Obligations or
Letter of Credit Borrowings outstanding, Lenders whose Commitments (excluding
the Swing Loan Commitments) aggregate more than 50% of the Revolving Credit
Commitments of all of the Lenders, or

                    (ii) if there are Loans, Reimbursement Obligations, or
Letter of Credit Borrowings outstanding, any Lender or group of Lenders if the
sum of the Loans (excluding the Swing Loans), Reimbursement Obligations and
Letter of Credit Borrowings of such Lenders then outstanding aggregates more
than 50% of the total principal amount of all of the Loans (excluding the Swing
Loans), Reimbursement Obligations and Letter of Credit Borrowings then
outstanding.

Reimbursement Obligations and Letter of Credit Borrowings shall be deemed, for
purposes of this definition, to be in favor of the Agent and not a participating
Lender if such Lender has not made its Participation Advance in respect thereof
and shall be deemed to be in favor of such Lender to the extent of its
Participation Advance if it has made its Participation Advance in respect
thereof.

          Material Adverse Change shall mean any set of circumstances or events
which (a) has or could reasonably be expected to have any material adverse
effect whatsoever upon the validity or enforceability of this Agreement or any
other Loan Document, (b) is or could reasonably be expected to be material and
adverse to the business, properties, assets, financial condition, results of
operations or business prospects of the Loan Parties taken as a whole, (c)
impairs materially or could reasonably be expected to impair materially the
ability of the Loan Parties taken as a whole to duly and punctually pay or
perform their material Indebtedness for borrowed money, or (d) impairs
materially or could reasonably be expected to impair materially the ability of
the Agent or any of the Lenders, to the extent permitted, to enforce their legal
remedies pursuant to this Agreement, the Notes, any Security Document or the
Guaranty Agreement.

          Month, with respect to an Interest Period under the LIBOR Rate Option,
shall mean the interval between the days in consecutive calendar months
numerically corresponding to the first day of such Interest Period. If any LIBOR
Rate Interest Period begins on a day of a calendar month for which there is no
numerically corresponding day in the month in which such Interest Period is to
end, the final month of such Interest Period shall be deemed to end on the last
Business Day of such final month.

          Moody’s shall mean Moody’s Investors Service, Inc. and its successors.

          Mortgage shall mean any mortgage, deed of trust or similar instrument
(including any spreader, amendment, restatement or similar modification of any
Mortgage) made by any Loan Party in favor of the Agent or for the benefit of the
Agent, for the benefit of the Lenders, in form and substance reasonably
satisfactory to the Agent and substantially in the form of Exhibit 1.1(M).

          Mortgage Condition shall mean, as to any Qualified Real Property (a)
the Agent shall have received a first priority Mortgage (subject only to Limited
Permitted Liens) with respect to such property encumbered by such Mortgage,
executed and delivered by the Loan Party which owns such property, (b) to the
extent reasonably requested by the Agent, the Agent shall have received, and the
title insurance company issuing the policy referred to in clause (c) below (the
“Title Insurance Company”) shall have received, maps or plats or an as-built
survey of the sites of the Mortgaged Collateral either certified to the Agent
and the Title Insurance Company in a manner reasonably satisfactory to them,
dated a date reasonably satisfactory to the Agent and the Title Insurance
Company by an independent professional licensed land surveyor reasonably
satisfactory to the Agent and the Title Insurance Company or otherwise
reasonably acceptable to the Title Insurance Company so as to enable the Title
Insurance Company to

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remove any survey exception from the policy referred to in clause (c) below and
issue customary survey-dependent endorsements, (c) to the extent reasonably
requested by the Agent, the Agent shall have received in respect of each such
property a mortgagee’s title insurance policy (or policies) or a marked up
binder for such insurance (with the title insurance policy to follow) in an
amount reasonably acceptable to the Borrower and Agent with respect to such
property, in each case in form and substance reasonably satisfactory to the
Agent, (d) the Agent shall have received evidence reasonably satisfactory to it
that all premiums in respect of each such policy referred to in clause (c)
above, all charges for mortgage recording assessments, taxes and the like, and
all related expenses, if any, have been paid, (e) if such property is in a flood
zone as determined in accordance with applicable Law, the Agent shall have
received (A) a policy of flood insurance that (1) covers any parcel of improved
real property that is encumbered by any Mortgage and (2) provides coverage in an
amount not less than the outstanding principal amount of the indebtedness
secured by such Mortgage that is reasonably allocable to such real property or
the maximum limit of coverage made available with respect to the particular type
of property under the National Flood Insurance Act of 1968, whichever is less,
and (B) confirmation that the Borrower has received the notice required pursuant
to Section 208(e)(3) of Regulation H of the Board or comparable applicable
regulations of any other financial institution federal regulator, (f) the Agent
shall have received a copy of substantially all recorded documents referred to,
or listed as exceptions to title in, the policy or policies referred to in
clause (c) above and a copy of substantially all other material documents
affecting the Mortgaged Collateral, (g) the Agent shall have received evidence
that counterparts of such Mortgages have been filed in the offices that the
Agent may reasonably deem necessary or desirable in order to create a valid Lien
on the property described therein in favor of the Agent and evidence that all
other actions that the Agent may reasonably deem necessary in order to create
valid and perfected first priority Liens on the Mortgaged Collateral (including
the fixtures related thereto) has been taken, subject only to Limited Permitted
Liens, and (h) the Agent shall have received an opinion addressed to the Agent
and the Lenders of local counsel to the Loan Parties in each state in which any
Qualified Real Property is located with respect such customary matters as the
Agent shall reasonably request, together with an opinion of in-house counsel to
Hovnanian with respect to the authorization and due execution of the Mortgages,
in each case in form and substance reasonably satisfactory to the Agent.

          Mortgaged Collateral shall mean both the Initial Mortgaged Collateral
and the Additional Mortgaged Collateral.

          Multiemployer Plan shall mean any employee benefit plan which is a
“multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA.

          Net Cash Proceeds shall mean in connection with any issuance or sale
of Capital Stock or any incurrence of Indebtedness, (a) the gross cash proceeds
received from such issuance or incurrence, less (b) customary attorneys’ fees,
investment banking fees, accountants’ fees, underwriting discounts and
commissions and other customary fees and reasonable expenses actually incurred
in connection therewith.

          Non-approving Lender shall have the meaning assigned to such term in
Section 2.10.2 [Approval by 66-2/3% Lenders].

          Non-Restricted Person shall mean any (i) Joint Venture and (ii)
Subsidiary of Hovnanian which is not a Restricted Subsidiary. Each of the
Non-Restricted Persons as of the Closing Date is listed on Schedule 1.1(C).

          Notes shall mean the Revolving Credit Notes and the Swing Note.

          Notices shall have the meaning assigned to that term in Section 10.6
[Notices].

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          Obligation shall mean any obligation, indebtedness or liability of any
of the Loan Parties to the Agent or any of the Lenders or any Affiliate of any
Lender, howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due,
under or in connection with this Agreement, any Notes, the Guaranty Agreement,
the Letters of Credit, the Fee Letter or any other Loan Document.

          Official Body shall mean any national, federal, state, local or other
government or political subdivision or any agency, authority, board, bureau,
central bank, commission, department or instrumentality of either, or any court,
tribunal, grand jury or arbitrator, in each case whether foreign or domestic.

          Operating Cash Flow Coverage Ratio shall mean the ratio, as of any
date of determination, of (i) Adjusted Cash Flow from Operations plus Fixed
Charges, in each case for the prior four fiscal quarters just ended to (ii) four
(4) multiplied by Fixed Charges for the most-recently ended fiscal quarter.

          Over Limit Allocation shall mean (a) $100,000,000 plus (b) the
aggregate amount of inventory impairment losses and land option write-offs
during the fiscal quarters ending January, 2008, and April, 2008, shown on the
consolidated income statement of Hovnanian for such fiscal quarters provided
pursuant to Section 7.3.1; provided, however, that in no event shall the Over
Limit Allocation exceed $200,000,000 at any time.

          PAPA shall mean an arrangement, other than with an Affiliate of any
Loan Party, by which Liens are granted in conjunction with purchase contracts
for the purchase of real estate and which secure future payments due to the
sellers of such real estate at the time of the sale of homes constructed on such
real estate and which payments are contingent on the sale price of such homes,
such arrangements may include (A) adjustments to the land purchase price, (B)
profit participations, (C) community marketing fees and community enhancement
fees, and (D) reimbursable costs paid by the land developer.

          Participation Advance shall mean, with respect to any Lender, such
Lender’s payment in respect of its participation in a Letter of Credit Borrowing
according to its Ratable Share pursuant to Section 2.9.4 [Repayment of
Participation Advances].

          Partnership Interests shall have the meaning assigned to such term in
Section 5.1.2. [Subsidiaries].

          PBGC shall mean the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA or any successor.

          Permitted Acquisitions shall have the meaning assigned to such term in
Section 7.2.4 [Liquidations, Mergers, Consolidations, Acquisitions].

          Permitted Investments shall mean a Loan Party’s Investment in:

          (a) (i) cash, marketable direct obligations of the United States of
America or any agency thereof, and certificates of deposit, demand deposits,
time deposits, or repurchase agreements issued by any Lender or any bank with a
capital and surplus of at least $25,000,000 organized under the laws of the
United States of America or any state thereof, state or municipal securities
with a rating of A-1 or better by Standard & Poor’s or P-1 by Moody’s or F-1 by
Fitch, provided that such obligations, certificates of deposit, demand deposits,
time deposits, and repurchase agreements have a maturity of less than one year
from the date of purchase;

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                    (ii) investment grade commercial paper or debt or commercial
paper issued by a Lender or a bank holding company of a Lender having a maturity
date of one year or less from the date of purchase; and

                    (iii) funds holding assets primarily consisting of those
described in clause (i) and (ii) hereof;

          (b) loans or advances to employees of a Loan Party in the ordinary
course of business;

          (c) any Person that is or concurrently becomes a Loan Party;

          (d) purchase money notes not exceeding $25,000,000 principal amount in
the aggregate received incident to sales of property by a Restricted Subsidiary;

          (e) trade credit extended on usual and customary terms in the ordinary
course of business;

          (f) loans to officers and directors to the extent permitted by
Section 7.2.6.2 [Restricted Payments; Restricted Investments; Investments in
Related Businesses];

          (g) marketable securities costing at the time of purchase no more than
$3,000,000 in the aggregate of any one or more residential real estate
developers and which are registered under the Securities Exchange Act of 1934;

          (h) investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts or disputes with or
judgments against, contractors, suppliers or customers, in each case in the
ordinary course of business; and

          (i) other Investments not in excess of $50,000,000 in the aggregate.

          Permitted Liens shall mean:

          (i) Limited Permitted Liens;

          (ii) Pledges or deposits made in the ordinary course of business to
secure payment of workers’ compensation, or to participate in any fund in
connection with workers’ compensation, unemployment insurance, old-age pensions
or other social security programs, provided they do not in the aggregate
materially impair the ability of the Loan Parties to perform the Obligations;

          (iii) Liens incurred, or pledges or deposits made, in the ordinary
course of business to secure performance of bids, tenders, contracts (other than
for the repayment of borrowed money) or leases, not in excess of the aggregate
amount due thereunder, or to secure statutory obligations, or surety, appeal,
indemnity, performance or other similar bonds required in the ordinary course of
business, provided they do not in the aggregate materially impair the ability of
the Loan Parties to perform the Obligations;

          (iv) Liens, security interests and mortgages in favor of the Agent for
the benefit of the Lenders;

          (v) Liens on property leased by any Loan Party or Subsidiary of a Loan
Party under capital and operating leases not prohibited by this Agreement
securing obligations of such Loan Party or Subsidiary to the lessor under such
leases;

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          (vi) (A) Purchase Money Mortgages, provided that the aggregate
principal amount of Indebtedness secured by Purchase Money Mortgages that are
recourse to a Loan Party does not exceed $20,000,000, (B) Purchase Money
Security Interests and (C) Liens on the real property owned by Hovnanian or a
Corporate Office Subsidiary and occupied primarily by employees of Hovnanian or
its subsidiaries, including Liens on the real property which serves as
Hovnanian’s headquarters in Red Bank, New Jersey;

          (vii) Liens arising under applicable Law (as opposed to consensual
Liens granted by contract), or confirmations or acknowledgments thereof, created
in the ordinary course of business in favor of banks or other financial
institutions over credit balances in any bank account at such bank or financial
institution; and

          (viii) Other Liens securing obligations not in excess of $25,000,000
in the aggregate.

          Person shall mean any individual, corporation, partnership, limited
liability company, association, joint-stock company, trust, unincorporated
organization, joint venture, government or political subdivision or agency
thereof, or any other entity.

          Plan shall mean at any time an employee pension benefit plan (other
than a Multiemployer Plan) which is covered by Title IV of ERISA or is subject
to the minimum funding standards under Section 412 of the Internal Revenue Code
in respect of which the Borrower or any member of the ERISA Group is an
“employer” as defined in Section 3(5) of ERISA.

          Pledge Agreement shall mean that pledge agreement substantially in the
form of Exhibit 1.1(P) given by the Loan Parties in favor of the Agent for the
benefit of the Lenders.

          PNC Bank shall mean PNC Bank, National Association, its successors and
assigns.

          Potential Default shall mean any event or condition which with notice,
passage of time or a determination by the Agent or the Required Lenders, or any
combination of the foregoing, would constitute an Event of Default.

          Preference Period shall mean (i) as to the Initial Mortgaged
Collateral, the period ending on the earlier of (x) July 31, 2008, as such date
may be extended in the Agent’s reasonable judgment for each day that the Agent
extends the Due Diligence Period, and (y) 91 days after Mortgages with respect
to real property of the Loan Parties representing 90% of the book value of the
Proposed Initial Mortgage Collateral have been executed and delivered pursuant
to Section 7.1.13(ii) and have been recorded in the appropriate jurisdiction, as
confirmed in writing by Agent to Borrower, and (ii) as to any other Collateral,
91 days after the Agent on behalf of the Lenders has perfected the Liens against
such Collateral.

          Preliminary Approvals shall mean the following: (i) in New Jersey, as
defined in the Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.) and (ii) for
states other than New Jersey, a point in time equivalent thereto.

          Pricing Grid shall mean the pricing grid on Schedule 1.1(A)(1).

          Principal Office shall mean the main banking office of the Agent in
Pittsburgh, Pennsylvania or such other location so designated by the Agent.

          Prior Credit Agreement shall have the meaning assigned to such term in
the preamble to this Agreement.

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          Prohibited Transaction shall mean any prohibited transaction as
defined in Section 4975 of the Internal Revenue Code or Section 406 of ERISA for
which neither an individual nor a class exemption has been issued by the United
States Department of Labor.

          Property shall mean all real property, both owned and leased, of any
Loan Party or Subsidiary of a Loan Party.

          Proposed Initial Mortgaged Collateral shall have the meaning specified
in Section 7.1.13.

          Purchase Money Mortgage shall mean any mortgage on real property
granted to secure Indebtedness of any Loan Party.

          Purchase Money Security Interest shall mean Liens upon tangible
personal property securing loans to any Loan Party or deferred payments by such
Loan Party or Subsidiary for the purchase of such tangible personal property and
excluding Purchase Money Mortgages.

          Purchasing Lender shall mean a Lender which becomes a party to this
Agreement by executing an Assignment and Assumption Agreement.

          Qualified Preferred Equity shall mean preferred equity issued by
Hovnanian or any wholly-owned subsidiary thereof provided that each of the
following conditions is met: (i) the total book value thereof shall not at any
time exceed $500,000,000, (ii) the term thereof shall be greater than 10 years
and such Qualified Preferred Equity shall not contain any mandatory redemption
provisions, put rights in favor of the holders thereof, or any provisions that
may obligate the issuer to repurchase any or all of such Qualified Preferred
Equity prior to the date that is 10 years after the Expiration Date, and (iii)
the Borrower shall have disclosed to the Agent the terms of such Qualified
Preferred Equity prior to the issuance thereof.

          Qualified Rating Agency shall mean Moody’s, Standard & Poor’s or
Fitch.

          Qualified Real Property shall mean, with respect to any Loan Party,
all real property that is owned solely by such Person which is in Mortgage
Condition and for which (a) the Agent shall have received an Acceptable
Appraisal (the fees and expenses associated with such Acceptable Appraisal to be
paid by the Borrower in accordance with the terms of this Agreement), (b) the
Agent shall be satisfied that all actions necessary in order to create a
perfected first priority Lien on such real property (subject only to Limited
Permitted Liens) have been taken, including, the filing and recording of a
Mortgage with respect to such real property, (c) the Agent shall have received
an environmental assessment report, in form and substance reasonably
satisfactory to the Agent from an environmental consulting firm reasonably
satisfactory to the Agent, and (d) such real property and all improvements
thereon are covered by such insurance as is required by Section 7.1.3, and Agent
on behalf of the Lenders is subject to the benefits of such insurance in a
manner reasonably satisfactory to Agent.

          Ratable Share shall mean so long as any Commitments are outstanding
the proportion that a Lender’s Commitment (excluding the Swing Loan Commitment)
bears to the Commitments (excluding the Swing Loan Commitment) of all of the
Lenders and after all Commitments have been terminated, the proportion that a
Lender’s Revolving Credit Loans outstanding bears to all Revolving Credit Loans
outstanding of all of the Lenders.

          Regulated Substances shall mean any substance, material or waste
defined under Environmental Laws as a “hazardous substance,” “pollutant,”
“pollution,” “contaminant,” “hazardous or toxic substance,” “extremely hazardous
substance,” “toxic chemical,” “toxic substance,” “toxic waste,” “hazardous
waste,”

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“special handling waste,” “industrial waste,” “residual waste,” “solid waste,”
“municipal waste,” “mixed waste,” “infectious waste,” “chemotherapeutic waste,”
“medical waste,” or “regulated substance” or any other material, substance or
waste which otherwise is regulated by Environmental Laws.

          Regulation U shall mean Regulation U, T or X as promulgated by the
Board of Governors of the Federal Reserve System, as amended from time to time.

          Reimbursement Obligation shall mean the obligation of the Borrower to
reimburse a Letter of Credit Lender for draws under a Letter of Credit issued by
such Lender under this Agreement, except to the extent such obligation is
represented by a Revolving Credit Loan.

          Related Businesses shall mean business activities incidental,
complementary, or related to the homebuilding business.

          Reportable Event shall mean a reportable event described in
Section 4043 of ERISA and regulations thereunder with respect to a Plan other
than those events as to which the 30-day notice is waived under the PBGC
regulations.

          Required Lenders shall mean

          (i) if there are no Loans, Reimbursement Obligations or Letter of
Credit Borrowings outstanding, Lenders whose Commitments (excluding the Swing
Loan Commitments) aggregate at least 66 2/3% of the Revolving Credit Commitments
of all of the Lenders, or

          (ii) if there are Loans, Reimbursement Obligations, or Letter of
Credit Borrowings outstanding, any Lender or group of Lenders if the sum of the
Loans (excluding the Swing Loans), Reimbursement Obligations and Letter of
Credit Borrowings of such Lenders then outstanding aggregates at least 66 2/3%
of the total principal amount of all of the Loans (excluding the Swing Loans),
Reimbursement Obligations and Letter of Credit Borrowings then outstanding.

Reimbursement Obligations and Letter of Credit Borrowings shall be deemed, for
purposes of this definition, to be in favor of the Agent and not a participating
Lender if such Lender has not made its Participation Advance in respect thereof
and shall be deemed to be in favor of such Lender to the extent of its
Participation Advance if it has made its Participation Advance in respect
thereof.

          Required Environmental Permits shall mean all permits, licenses,
bonds, consents, programs, approvals or authorizations required under
Environmental Laws to own, occupy or maintain the Property or which otherwise
are required by Environmental Law for the operations and business activities of
the Loan Parties.

          Required Share shall have the meaning assigned to such term in
Section 4.8 [Settlement Date Procedures].

          Restricted Investment shall mean a Loan Party’s Subsidiary Investment
in any Non-Restricted Person.

          Restricted Payments shall mean

          (i) Dividends and Capital Stock Retirement payments after January 31,
2008, by Hovnanian or otherwise to the shareholders of Hovnanian; and

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          (ii) Payments (whether in the form of principal payments, note
repurchases or similar items) to the holder of Subordinated Debt made on or
after January 31, 2008; provided, however, with respect to this item (ii), a
refinancing of the Subordinated Debt to the extent consisting of the repayment
of the Subordinated Debt and the incurring of new “Subordinated Debt” or the
permanent repayment of Subordinated Debt with the net proceeds of the issuance
or sale of equity, including Qualified Preferred Equity, within 60 days of such
repayment shall not constitute a “Restricted Payment”; and

          (iii) Any payments by Hovnanian or its Subsidiaries in respect of
Qualified Preferred Equity.

          Restricted Subsidiaries shall mean any Subsidiary that has not been
designated a Non-Restricted Person as of the Closing Date or in accordance with
Section 2.11 [Designation of Subsidiaries and Release of Guarantors]. Each of
the Restricted Subsidiaries as of the Closing Date is listed on Schedule 1.1(C).

          Revolving Credit Commitment shall mean, as to any Lender at any time,
the amount set forth opposite its name on Schedule 1.1(B) in the column labeled
“Amount of Commitment for Revolving Credit Loans” or on Schedule I to the
Assignment and Assumption Agreement pursuant to which such Lender became a party
hereto, and Revolving Credit Commitments shall mean the aggregate Revolving
Credit Commitments of all of the Lenders, as such amounts my be reduced in
accordance with the terms hereof.

          Revolving Credit Loans shall mean collectively and Revolving Credit
Loan shall mean separately all Revolving Credit Loans or any Revolving Credit
Loan made by the Lenders or one of the Lenders to the Borrower pursuant to
Section 2.1 [Revolving Credit Commitments] or 2.9.3 [Disbursements,
Reimbursement].

          Revolving Credit Note shall mean any Revolving Credit Note of the
Borrower substantially in the form of Exhibit 1.1(R), issued by the Borrower
payable to the order of each Lender (unless a Lender requests that the Borrower
not issue a Note to such Lender) in a face amount equal to such Lender’s
Revolving Credit Commitment pursuant to Section 4.7 [Notes] evidencing the
Revolving Credit Loans to such Lender, together with all amendments, extensions,
renewals, replacements, refinancings or refundings thereof in whole or in part.

          Revolving Facility Usage shall mean at any time the sum of the
Revolving Credit Loans outstanding, Swing Loans outstanding and the Letter of
Credit Outstandings.

          SEC shall mean the Securities and Exchange Commission or any
governmental agencies substituted therefor.

          Secured Borrowing Base shall mean, at any time, the Dollar amount
equal to the sum of the following items, each owned free and clear of all Liens
(except Limited Permitted Liens) by the Borrower, Hovnanian or a Restricted
Subsidiary:

 

 

 

 

 

 

(a)

100% of cash and cash equivalents maintained in the Cash Collateral Account
(provided that the maximum aggregate amount of all such cash and cash
equivalents in Cash Collateral Accounts that may receive credit in the Secured
Borrowing Base shall be $300,000,000 unless only Letters of Credit are
outstanding under this Agreement and no principal amount is outstanding
hereunder);

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(b)

65% of the aggregate Adjusted Appraised Value of the Mortgaged Collateral, less
the amount by which the Collateral Reserves exceeds $25,000,000; and

 

 

 

 

 

 

(c)

the Interim Value of any Interim Additional Mortgaged Collateral

 

 

 

 

provided however that the Secured Borrowing Base shall exclude in all events the
Dollar amount of

 

 

 

(i)

property located outside of the United States of America;

 

 

 

 

 

 

(ii)

Unentitled Land; and

 

 

 

 

 

 

(iii)

any residential or commercial property owned by Hovnanian or any Subsidiary
which is leased or held for purposes of leasing primarily to unaffiliated third
parties.

 

 

 

 

and provided further that notwithstanding anything to the contrary herein:

 

 

 

(A)

Not more than 40% of the aggregate Adjusted Appraised Value of the Mortgaged
Collateral in the Secured Borrowing Base shall be comprised of assets located in
either California or New Jersey, and not more than 20% of the aggregate Adjusted
Appraised Value of the Mortgaged Collateral in the Secured Borrowing Base shall
be comprised of assets located in any other single state;

 

 

 

 

 

 

(B)

The aggregate book value of Finished Lots and Land Under Development shall not
exceed 40% of the aggregate book value of all Mortgaged Collateral in the
Secured Borrowing Base; and

 

 

 

 

 

 

(C)

The aggregate book value of Unsold Homes shall not exceed 40% of the aggregate
book value of that portion of the Secured Borrowing Base which is comprised of
all Sold Homes and Unsold Homes.

The determination of the Agent in respect of the Secured Borrowing Base shall be
conclusive absent manifest error.

          Security Agreement shall mean that security agreement substantially in
the form of Exhibit 1.1(S)(1) given by the Loan Parties in favor of the Agent
for the benefit of the Lenders.

          Security Documents shall mean the collective reference to the Security
Agreement, the Pledge Agreement, the Mortgages, and all other documents
hereafter delivered to the Agent granting or perfecting a Lien on any property
of any Person to secure any Obligation.

          Senior Homebuilding Indebtedness shall mean the sum (without
duplication) of (a) outstanding principal amount of the Obligations, (b) letters
of credit (whether or not issued under this Agreement), (c) Guaranties by any
Loan Party of any obligation of any Person which is not a Restricted Subsidiary
or Hovnanian, (d) Senior Notes, (e) surety bonds (or similar products) issued by
bonding companies in lieu of cash payments or cash deposits on contracts for any
Loan Party to acquire land inventory in respect of which a Loan Party is
obligated and (f) other Indebtedness of Hovnanian or a Restricted Subsidiary
which is permitted under this Agreement; provided however, that “Senior
Homebuilding Indebtedness” shall not include (i) debt secured by Purchase Money
Security Interests and non-recourse Purchase Money Mortgages and (ii)
Subordinated Debt.

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          Senior Notes shall mean the (i) $100,000,000 principal amount 8.0%
Senior Notes of the Borrower due April 2012 and guaranteed by Hovnanian; (ii)
$215,000,000 principal amount 6.50% Senior Notes of the Borrower due January
2014 and guaranteed by Hovnanian; (iii) $150,000,000 principal amount 6.375%
Senior Notes of the Borrower due 2014 and guaranteed by Hovnanian; (iv)
$300,000,000 7.5% Senior Notes due May, 2016, (v) $200,000,000 6.25% Senior
Notes due January, 2015, (vi) $300,000,000 6.25% Senior Notes due January, 2016,
(vii) $250,000,000 principal amount 8.625% Senior Notes due 2017, and (viii)
other notes sold or guaranteed by Hovnanian or the Borrower from time to time
after the Closing Date on terms not materially less favorable to the Lenders (as
determined by the Agent) as those described in clauses (i) through (vii) above.

          Settlement Date shall mean the date selected from time to time by the
Agent (after consulting the Borrower) on which the Agent elects to effect
settlement pursuant to Section 4.8 [Settlement Date Procedures].

          Sold Homes shall mean the Dollar amount of the capitalized
construction costs of any Dwelling Unit upon which a third party purchaser has
paid a cash deposit pursuant to an enforceable agreement of sale. Such cost
shall include the proportional costs of the land under the Dwelling Unit, site
improvements and soft costs incurred to date.

          Sold Dwelling Units shall mean the number of Dwelling Units owned by a
Loan Party comprising from time to time “Sold Homes”.

          Solvent shall mean, when used with respect to any Person as of any
date of determination, (a) the amount of the “present fair saleable value” of
the assets of such Person will, as of such date, exceed the amount of all
“liabilities of such Person, contingent or otherwise”, as of such date, as such
quoted terms are determined in accordance with applicable federal and state laws
governing determinations of the insolvency of debtors, (b) the present fair
saleable value of the assets of such Person will, as of such date, be greater
than the amount that will be required to pay the liability of such Person on its
debts as such debts become absolute and matured, (c) such Person will not have,
as of such date, an unreasonably small amount of capital with which to conduct
its business, and (d) such Person will be able to pay its debts as they mature.
For purposes of this definition, (i) “debt” means liability on a “claim”, and
(ii) “claim” means any (x) right to payment, whether or not such a right is
reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (y)
right to an equitable remedy for breach of performance if such breach gives rise
to a right to payment, whether or not such right to an equitable remedy is
reduced to judgment, fixed, contingent, matured or unmatured, disputed,
undisputed, secured or unsecured. The amount of any contingent claim at any time
shall be computed as the amount that, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured claim.

          Standard & Poor’s shall mean Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and its successors.

          Subordinated Debt shall mean (i) the $150,000,000 principal amount
8.875% Senior Subordinated Notes due in April 2012; (ii) the $150,000,000
principal amount 7.75% Senior Subordinated Notes due in 2013; (iii) $100,000,000
principal amount 6.0% Senior Subordinated Notes due in January 2010, and (iv)
any other unsecured indebtedness of the Borrower, Hovnanian, or any other Loan
Party which is subordinated by its terms to the prior payment in full of the
Obligations evidenced by this Agreement, the Notes and the Letters of Credit, as
may be outstanding from time to time, in a manner no less favorable to the
Lenders in any material respect than the terms of the Subordinated Debt
described in clause (i) above and which contain covenants that are not
materially less favorable to Hovnanian, the

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Borrower or any other Loan Party than those contained in the Subordinated Debt
described in clause (i) above.

          Subsidiary of any Person at any time, shall mean a corporation,
partnership, limited liability company or other entity (i) whose assets and
liabilities are consolidated with Hovnanian in accordance with GAAP (except for
joint ventures or similar arrangements which would not be considered
“Subsidiaries” of a Loan Party but for the application of FASB Interpretation
No. 46 regarding consolidation issued by the Financial Accounting Standards
Board (FASB) in January, 2003) and (ii) of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a
contingency which has not occurred) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity are
at the time owned, or the management of which is otherwise controlled, directly
or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of
Hovnanian.

          Subsidiary Investment shall mean with respect to any Subsidiary or
Joint Venture the sum of (i) loans to such Person by Hovnanian or a Restricted
Subsidiary and (ii) Hovnanian’s or a Restricted Subsidiary’s share of equity in
such Person.

          Subsidiary Shares shall have the meaning assigned to that term in
Section 5.1.2 [Subsidiaries].

          Swing Loan Commitment shall mean PNC Bank’s commitment to make Swing
Loans to the Borrower pursuant to Section 2.1.2 [Swing Loan Commitment] hereof
in an aggregate principal amount of up to $30,000,000.

          Swing Loan Note shall mean the Swing Loan Note of the Borrower
substantially in the form of Exhibit 1.1(S)(2) evidencing the Swing Loans,
together with all amendments, extensions, renewals, replacements, refinancings
or refundings thereof in whole or in part.

          Swing Loan Request shall mean a request for Swing Loans made in
accordance with Section 2.4.2 [ Swing Loan Requests] hereof.

          Swing Loans shall mean collectively and Swing Loan shall mean
separately all Swing Loans or any Swing Loan made by PNC Bank to the Borrower
pursuant to Section 2.1.2 [Swing Loan Commitment] hereof.

          Transferor Lender shall mean the selling Lender pursuant to an
Assignment and Assumption Agreement.

          Unentitled Land shall mean the Dollar value of land owned by a Loan
Party which has not been granted Preliminary Approvals for residential
development, calculated at the lower of (i) the actual cost (including land
costs and capital expenses relating thereto) or (ii) the market value (as
determined in accordance with GAAP) thereof.

          Unsecured Borrowing Base shall mean at any time, the Dollar amount
equal to the sum of the following items, each owned free and clear of all Liens
(except Limited Permitted Liens and those Permitted Liens described in clauses
(ii), (iii), (iv), and (vii) of the definition of Permitted Liens) by the
Borrower, Hovnanian or a Restricted Subsidiary:

--------------------------------------------------------------------------------

 

 

 

 

(a)

100% of cash and cash equivalents maintained in Cash Collateral Accounts
(provided that the maximum amount of all such cash and cash equivalents in Cash
Collateral Accounts that may receive credit in the Unsecured Borrowing Base
shall be $300,000,000 unless only Letters of Credit are outstanding under this
Agreement and no principal amount is outstanding hereunder);

 

 

 

 

(b)

95% of Sold Homes;

 

 

 

 

(c)

85% of Unsold Homes;

 

 

 

 

(d)

60% of Finished Lots and Land Under Development; and

 

 

 

 

(e)

the Over Limit Allocation;

 

 

 

provided however that the Unsecured Borrowing Base shall exclude in all events
the Dollar amount of

 

 

 

 

(i)

property located outside of the United States of America;

 

 

 

 

(ii)

Unentitled Land;

 

 

 

 

(iii)

any residential or commercial property owned by Hovnanian or any Subsidiary
which is leased or held for purposes of leasing primarily to unaffiliated third
parties; and

 

 

 

 

(iv)

properties subject to any Purchase Money Mortgage.

The determination of the Agent in respect of the Unsecured Borrowing Base shall
be conclusive absent manifest error.

          Unsold Dwelling Units shall mean the number of Dwelling Units owned by
a Loan Party comprising from time to time “Unsold Homes”.

          Unsold Homes shall mean the Dollar amount of capitalized construction
costs of any Dwelling Unit being built by a Loan Party for which the
construction of slab (or foundation) has been completed and upon which no cash
deposit has been paid pursuant to an enforceable agreement of sale. Such Dollar
amount shall include the proportional costs of the land under the Dwelling Unit,
site improvements and soft costs actually incurred to date.

          USA Patriot Act shall mean the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

          1.2 Construction.

          Unless the context of this Agreement otherwise clearly requires, the
following rules of construction shall apply to this Agreement and each of the
other Loan Documents:

                    1.2.1 Number; Inclusion.

                    references to the plural include the singular, the plural,
the part and the whole; “or” has the inclusive meaning represented by the phrase
“and/or,” and “including” has the meaning represented by the phrase “including
without limitation”;

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                    1.2.2 Determination.

                    references to “determination” of or by the Agent or the
Lenders shall be deemed to include good-faith estimates by the Agent or the
Lenders (in the case of quantitative determinations) and good-faith beliefs by
the Agent or the Lenders (in the case of qualitative determinations) and such
determination shall be conclusive absent manifest error;

                    1.2.3 Agent’s Discretion and Consent.

                    whenever the Agent or the Lenders are granted the right
herein to act in its or their sole discretion or to grant or withhold consent
such right shall be exercised in good faith;

                    1.2.4 Documents Taken as a Whole.

                    the words “hereof,” “herein,” “hereunder,” “hereto” and
similar terms in this Agreement or any other Loan Document refer to this
Agreement or such other Loan Document as a whole and not to any particular
provision of this Agreement or such other Loan Document;

                    1.2.5 Headings.

                    the section and other headings contained in this Agreement
or such other Loan Document and the Table of Contents (if any) preceding this
Agreement or such other Loan Document are for reference purposes only and shall
not control or affect the construction of this Agreement or such other Loan
Document or the interpretation thereof in any respect;

                    1.2.6 Implied References to this Agreement.

                    article, section, subsection, clause, schedule and exhibit
references are to this Agreement or other Loan Document, as the case may be,
unless otherwise specified;

                    1.2.7 Persons.

                    reference to any Person includes such Person’s successors
and assigns but, if applicable, only if such successors and assigns are
permitted by this Agreement or such other Loan Document, as the case may be, and
reference to a Person in a particular capacity excludes such Person in any other
capacity;

                    1.2.8 Modifications to Documents.

                    reference to any agreement (including this Agreement and any
other Loan Document together with the schedules and exhibits hereto or thereto),
document or instrument means such agreement, document or instrument as amended,
modified, replaced, substituted for, superseded or restated;

                    1.2.9 From, To and Through.

                    relative to the determination of any period of time, “from”
means “from and including,” “to” means “to but excluding,” and “through” means
“through and including”; and

                    1.2.10 Shall; Will.

                    references to “shall” and “will” are intended to have the
same meaning.

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          1.3 Accounting Principles.

          Except as otherwise provided in this Agreement, all computations and
determinations as to accounting or financial matters and all financial
statements to be delivered pursuant to this Agreement shall be made and prepared
in accordance with GAAP (including principles of consolidation where
appropriate), and all accounting or financial terms shall have the meanings
ascribed to such terms by GAAP; provided, however, that all accounting terms
used in Section 7.2 [Negative Covenants] (and all defined terms used in the
definition of any accounting term used in Section 7.2 [Negative Covenants] shall
have the meaning given to such terms (and defined terms) under GAAP as in effect
on the date hereof applied on a basis consistent with those used in preparing
the Annual Statements referred to in Section 5.1.8((i)) [Historical Statements].
In the event of any change after the date hereof in GAAP, and if such change
would result in the inability to determine compliance with the financial
covenants set forth in Section 7.2 [Negative Covenants] based upon the Loan
Parties’ regularly prepared financial statements by reason of the preceding
sentence, then the parties hereto agree to endeavor, in good faith, to agree
upon an amendment to this Agreement that would adjust such financial covenants
in a manner that would not affect the substance thereof, but would allow
compliance therewith to be determined in accordance with the Loan Parties’
financial statements at that time.

                    2. REVOLVING CREDIT AND SWING LOAN FACILITIES

          2.1 Revolving Credit Commitments.

                    2.1.1 Revolving Credit Loans.

                    Subject to the terms and conditions hereof and relying upon
the representations and warranties herein set forth, each Lender severally
agrees to make Revolving Credit Loans to the Borrower at any time or from time
to time on or after the date hereof to the Expiration Date provided that after
giving effect to such Loan (a) the aggregate amount of Revolving Credit Loans
from such Lender shall not exceed such Lender’s Revolving Credit Commitment
minus such Lender’s Ratable Share of the Letter of Credit Outstandings and its
Ratable Share of the outstanding Swing Loans and (b) Revolving Facility Usage
shall not exceed the lesser of the Revolving Credit Commitments and the
Borrowing Base at such time. Within such limits of time and amount and subject
to the other provisions of this Agreement, the Borrower may borrow, repay and
reborrow pursuant to this Section 2.1. Revolving Credit Loans, as defined in and
outstanding under the Prior Credit Agreement, are hereby deemed to be Revolving
Credit Loans hereunder.

                    The Borrower promises to repay the aggregate outstanding
principal amount of the Revolving Credit Loans in full on the Expiration Date
and to discharge and fulfill when required all other of the Obligations.

                    2.1.2 Swing Loan Commitment.

                    Subject to the terms and conditions hereof and relying upon
the representations and warranties herein set forth, PNC Bank shall make swing
loans (the “Swing Loans”) to the Borrower at any time or from time to time after
the date hereof to, but not including, the Expiration Date, in an aggregate
principal amount up to but not in excess of the Swing Loan Commitment. The Swing
Loan Commitment is a sublimit of the Revolving Credit Commitments and after
giving effect to any Swing Loan: (a) the Revolving Facility Usage shall not
exceed the Revolving Credit Commitments of all the Lenders, and (b) the Borrower
shall be in compliance with the covenant contained in the first sentence of
Section 7.2.10 [Borrowing Base]. Within such limits of time and amount and
subject to the other provisions of this Agreement, the Borrower may borrow,
repay and reborrow pursuant to this Section 2.1.2. Swing Loans

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shall, at the option of PNC Bank after consultation with the Borrower, be repaid
by the proceeds of a Revolving Credit Loan deemed to have been made for such
purpose pursuant to Section 2.8 [Borrowings to Repay Swing Loans] and shall be
subject to the provisions of Section 4.8 [Settlement Date Procedures].

                    2.1.3 Reduction of Commitment.

                    (i) Voluntary. The Borrower shall have the right at any time
after the Closing Date (i) upon five (5) days’ prior written notice to the Agent
to permanently reduce (ratably among the Lenders in proportion to their Ratable
Shares) the Revolving Credit Commitments, in a minimum amount of $500,000 and
whole multiples of $100,000 (provided that in no event shall the aggregate
Revolving Credit Commitments be voluntarily reduced at any time to an amount
which is less than the Letter of Credit Outstandings) or (ii) at any time upon
prepayment in full of the Obligations, terminate completely the Commitments,
without penalty or premium except as hereinafter set forth, provided that any
such reduction or termination shall be accompanied by prepayment of the Notes,
together with outstanding Commitment Fees, and the full amount of interest
accrued on the principal sum to be prepaid (and all amounts referred to in
Section 4.6.2 [Indemnity] hereof), to the extent that the aggregate amount
thereof then outstanding exceeds the Commitments as so reduced or terminated.
Any notice to reduce the Revolving Credit Commitments under this Section 2.1.
shall be irrevocable.

                    (ii) Other. Notwithstanding any other provision hereof
(including Sections 4.5.3, 7.2.11, 7.2.12, or 7.2.13), in no event shall the
Commitments be reduced at any time to an amount less than the amount of the
Letter of Credit Outstandings at such time. In the event that any provision
hereof would otherwise require the Commitments to be reduced to an amount less
than the Letter of Credit Outstandings: (a) no new Loans shall be made, (b) no
new Letters of Credit shall be issued, (c) the Commitments shall immediately be
reduced to an amount equal to the amount of Letter of Credit Outstandings at
such time, and (d) thereafter, the Commitments shall reduce to the otherwise
required level on a dollar for dollar basis as and when the Letter of Credit
Outstandings are reduced from time to time.

          2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit
Loans.

          Each Lender shall be obligated to participate in each request for
Revolving Credit Loans pursuant to Section 2.4 [Revolving Credit Loan Requests;
Swing Loan Requests] in accordance with its Ratable Share. The aggregate of each
Lender’s Revolving Credit Loans outstanding hereunder to the Borrower at any
time shall never exceed its Revolving Credit Commitment minus its Ratable Share
of the Letter of Credit Outstandings minus its Ratable Share of Swing Loans
outstanding. The obligations of each Lender hereunder are several. The failure
of any Lender to perform its obligations hereunder shall not affect the
Obligations of the Borrower to any other party nor shall any other party be
liable for the failure of such Lender to perform its obligations hereunder. The
Lenders shall have no obligation to make Revolving Credit Loans hereunder on or
after the Expiration Date.

          2.3 Commitment Fees.

          Accruing from the date hereof until the Expiration Date, the Borrower
agrees to pay to the Agent for the account of each Lender, as consideration for
such Lender’s Revolving Credit Commitment hereunder, a nonrefundable unused fee
(the “Commitment Fee”) equal to the Applicable Commitment Fee Rate (computed on
the basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed) on the average daily difference between the amount of (i) such Lender’s
Revolving Credit Commitment as the same may be constituted from time to time and
the (ii) the sum of such Lender’s Revolving Credit Loans outstanding (plus, in
the case of PNC Bank, its Swing Loans outstanding) plus its Ratable Share of

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Letter of Credit Outstandings. All Commitment Fees shall be payable quarterly in
arrears on the fifteenth (15) day of each calendar quarter (for the calendar
quarter most recently ended) after the date hereof and on the Expiration Date or
upon acceleration of the Obligations.

          2.4 Revolving Credit Loan Requests; Swing Loan Requests.

                    2.4.1 Revolving Credit Loan Requests.

                    Except as otherwise provided herein, the Borrower may from
time to time prior to the Expiration Date request that the Lenders make
Revolving Credit Loans, or renew or convert the Interest Rate Option applicable
to existing Revolving Credit Loans or pursuant to Section 3.2 [Interest
Periods], by delivering to the Agent, not later than 11:00 a.m., Eastern time,
(i) three (3) Business Days prior to the proposed Borrowing Date with respect to
the making of Revolving Credit Loans to which the LIBOR Rate Option applies or
the conversion to or the renewal of the LIBOR Rate Option for any Loans; and
(ii) on the day of either the proposed Borrowing Date with respect to the making
of a Revolving Credit Loan to which the Base Rate Option or Index Rate Option
applies or the last day of the preceding Interest Period with respect to the
conversion to the Base Rate Option or Index Rate Option for any Loan, of a duly
completed request therefor substantially in the form of Exhibit 2.4.1 or a
request by telephone promptly confirmed in writing by letter or facsimile in
such form (each, a “Loan Request”), it being understood that the Agent may rely
on the authority of any individual making such a telephonic request without the
necessity of receipt of such written confirmation. Each Loan Request shall be
irrevocable and shall specify (i) the proposed Borrowing Date; (ii) the
aggregate amount of the proposed Loans comprising each Borrowing Tranche, which
shall be in integral multiples of $500,000 and not less than $2,500,000 for each
Borrowing Tranche to which the LIBOR Rate Option applies and which shall be in
integral multiples of $100,000 and not less than $500,000 for Borrowing Tranches
to which the Base Rate Option or Index Rate Option applies; (iii) whether the
LIBOR Rate Option, Base Rate Option, or Index Rate Option shall apply to the
proposed Loans comprising the applicable Borrowing Tranche; and (iv) in the case
of a Borrowing Tranche to which the LIBOR Rate Option applies, an appropriate
Interest Period for the Loans comprising such Borrowing Tranche.

                    2.4.2 Swing Loan Requests.

                    Except as otherwise provided herein, the Borrower may from
time to time prior to the Expiration Date request that PNC Bank make Swing Loans
by delivery to PNC Bank not later than 2:00 p.m. Eastern time on the proposed
Borrowing Date of a duly completed request therefor substantially in the form of
Exhibit 2.4.2 hereto or a request by telephone promptly confirmed in writing by
letter or facsimile (each, a “Swing Loan Request”), it being understood that the
Agent may rely on the authority of any individual making such a telephonic
request without the necessity of receipt of such written confirmation. Each
Swing Loan Request shall be irrevocable and shall specify the proposed Borrowing
Date and the principal amount of such Swing Loan, which shall be not less than
$100,000.

          2.5 Making Revolving Credit Loans and Swing Loans.

                    2.5.1 Generally.

                    The Agent shall, promptly after receipt by it of a Loan
Request pursuant to Section 2.4.1 [Revolving Credit Loan Requests], but not
later than 12:00 noon, Eastern time, notify the Lenders of its receipt of such
Loan Request specifying: (i) the proposed Borrowing Date and the time and method
of disbursement of the Revolving Credit Loans requested thereby; (ii) the amount
and type of each such Revolving Credit Loan and the applicable Interest Period
(if any); and (iii) the apportionment among the Lenders of such Revolving Credit
Loans as determined by the Agent in accordance with Section 2.2

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[Nature of Lenders’ Obligations with Respect to Revolving Credit Loans]. Each
Lender shall remit the principal amount of each Revolving Credit Loan to the
Agent such that the Agent is able to, and the Agent shall, to the extent the
Lenders have made funds available to it for such purpose and subject to Section
6.2 [Each Additional Loan or Letter of Credit], fund such Revolving Credit Loans
to the Borrower in U.S. Dollars and immediately available funds at the Principal
Office prior to 2:30 p.m., Eastern time, on the applicable Borrowing Date,
provided that if any Lender fails to remit such funds to the Agent in a timely
manner, the Agent may elect in its sole discretion to fund with its own funds
the Revolving Credit Loans of such Lender on such Borrowing Date, and such
Lender shall be subject to the repayment obligation in Section 9.16
[Availability of Funds].

                    2.5.2 Making Swing Loans.

                    Subject to the other provisions of this Agreement, PNC Bank
shall, after receipt by it of a Swing Loan Request pursuant to Section 2.4.2
[Swing Loan Requests], fund such Swing Loan to the Borrower in Dollars and
immediately available funds at the Principal Office as soon as reasonably
practicable after receipt by PNC Bank of said Swing Loan Request but in any
event by the close of business on the same Business Day.

          2.6 Swing Loan Note.

          The obligation of the Borrower to repay the unpaid principal amount of
the Swing Loans made to it by PNC Bank together with interest thereon shall, if
requested by PNC Bank, be evidenced by the Swing Loan Note dated the Closing
Date payable to the order of PNC Bank in a face amount equal to the Swing Loan
Commitment.

          2.7 Use of Proceeds.

          The proceeds of the Revolving Credit Loans shall be used to refinance
existing indebtedness and provide for Letters of Credit and provide working
capital and funds for general corporate purpose for the Borrower, Hovnanian and
the Restricted Subsidiaries, all in accordance with Section 7.1.10 [Use of
Proceeds].

          2.8 Borrowings to Repay Swing Loans.

          PNC Bank may, at its option, and upon consultation with the Borrower,
exercisable at any time for any reason whatsoever, demand that each Lender shall
make a Revolving Credit Loan in an amount equal to such Lender’s Ratable Share
of the aggregate principal amount of the outstanding Swing Loans made in
accordance with Section 2.5.2 [Making Swing Loans], plus, if PNC Bank so
requests, accrued interest thereon, provided that no Lender shall be obligated
in any event to make Revolving Credit Loans in excess of its Revolving Credit
Commitment minus its Ratable Share of Letter of Credit Outstandings minus its
Ratable Share of Swing Loans outstanding. Revolving Credit Loans made pursuant
to the preceding sentence shall bear interest at the Base Rate Option and shall
be deemed to have been properly requested in accordance with Section 2.4.1
[Revolving Credit Loan Requests] without regard to any of the requirements of
that provision. PNC Bank shall provide notice to the Lenders (which may be
telephonic or written notice by letter, facsimile or telex) that such Revolving
Credit Loans are to be made under this Section 2.8 and of the apportionment
among the Lenders, and the Lenders shall be unconditionally obligated to fund
such Revolving Credit Loans (whether or not the conditions specified in Section
2.4.1 [Revolving Credit Loan Requests] or Section 6.2 [Each Additional Loan or
Letter of Credit] are then satisfied) by the time PNC Bank so requests, which
shall not be earlier than three o’clock (3:00) p.m. Eastern time on the Business
Day next after the date the Lenders receive such notice from PNC Bank.

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          2.9 Letter of Credit Subfacility.

                    2.9.1 Issuance of Letters of Credit.

                    The Borrower may request the issuance of a letter of credit
(each a “Letter of Credit”) on behalf of itself or another Loan Party by the
Agent or any Lender which issues a Letter of Credit hereunder (such Lender, with
respect to the issuance of the Letter of Credit so requested by the Borrower,
being a “Letter of Credit Lender”) by delivering to the Agent and the Letter of
Credit Lender a completed application and agreement for letters of credit in
such form as the Letter of Credit Lender and the Agent may specify from time to
time by no later than 10:00 a.m., Eastern time, at least three (3) Business
Days, or such shorter period as may be agreed to by the Letter of Credit Lender,
in advance of the proposed date of issuance. Each letter of credit issued by any
Lender and described on Schedule 2.9.1 shall be deemed to be a “Letter of
Credit” hereunder as of the Closing Date. Subject to the terms and conditions
hereof and in reliance on the agreements of the other Lenders set forth in this
Section 2.9, the Letter of Credit Lender will issue a Letter of Credit, unless
such Letter of Credit Lender has received written notice from the Agent or the
Borrower, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Section 6.2 shall not be satisfied. Each Letter of
Credit shall have a maximum stated maturity of no later than the Letter of
Credit Expiration Date. For purposes of this subsection, “stated maturity” is
the expiration date of the Letter of Credit without giving effect to any future
extension thereof under an automatic renewal provision, provided that such
automatic renewal provision permits the Letter of Credit Lender to elect not to
extend by giving written notice of cancellation to the beneficiary. In no event
shall Letter of Credit Outstandings exceed, at any one time, the lesser of (i)
the Revolving Credit Commitments, or (ii) $450,000,000 (such lesser amount being
the “Letter of Credit Sublimit”). After giving effect to the issuance of any
Letter of Credit, the Borrower shall be in compliance with Section 7.2.10(a)
[Borrowing Base].

                    2.9.2 Letter of Credit Fees.

                    The Borrower shall pay (i) to the Agent for the ratable
account of the Lenders a fee (the “Letter of Credit Fee”) equal to the
Applicable Letter of Credit Fee Rate (computed on the daily average Letter of
Credit Outstandings) and (ii) to the Agent on behalf of each respective Letter
of Credit Lender for its own account a fronting fee for Letters of Credit issued
by such Letter of Credit Lender equal to .125% per annum (computed on the basis
of a year of 365 or 366 days, as the case may be, and actual days elapsed) and
shall be payable quarterly in arrears commencing with the fifteenth (15) day of
each calendar quarter following issuance of each Letter of Credit and on the
Letter of Credit Expiration Date. The Borrower shall also pay to the Letter of
Credit Lender for the Letter of Credit Lender’s sole account the Letter of
Credit Lender’s then in effect customary fees and administrative expenses
payable with respect to the Letters of Credit as the Letter of Credit Lender may
generally charge or incur from time to time in connection with the issuance,
maintenance, modification (if any), assignment or transfer (if any),
negotiation, and administration of Letters of Credit.

                    2.9.3 Disbursements, Reimbursement.

                              2.9.3.1 Immediately upon the issuance of each
Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Letter of Credit Lender a
participation in such Letter of Credit and each drawing thereunder in an amount
equal to such Lender’s Ratable Share of the maximum amount available to be drawn
under such Letter of Credit and the amount of such drawing, respectively.

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                              2.9.3.2 In the event of any request for a drawing
on or before 11:00 a.m. under a Letter of Credit by the beneficiary or
transferee thereof, the Letter of Credit Lender shall promptly notify the Agent
upon such request. Provided that it shall have received such notice, the Agent
will promptly notify the Borrower and each Lender thereof, and the Borrower
shall be deemed to have requested that Revolving Credit Loans be made by the
Lenders in an amount equal to the amount so paid by the Letter of Credit Lender
under the Base Rate Option to be disbursed on the Drawing Date under such Letter
of Credit, subject to the amount of the unutilized portion of the Revolving
Credit Commitment and not subject to the conditions set forth in Section 6.2
[Each Additional Loan or Letter of Credit]. Any notice given by the Letter of
Credit Lender or the Agent pursuant to this Section 2.9.3.2 may be oral if
immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

                              2.9.3.3 Each Lender shall upon any notice pursuant
to Section 2.9.3.2 [Disbursements, Reimbursement] make available to the Agent on
behalf of the Letter of Credit Lender an amount in immediately available funds
equal to its Ratable Share of the amount of the drawing, whereupon the
participating Lenders shall (subject to Section 2.9.3.4 [Disbursements,
Reimbursement]) each be deemed to have made a Revolving Credit Loan under the
Base Rate Option to the Borrower in that amount. If any Lender so notified fails
to make available to the Agent for the account of the Agent on behalf of the
Letter of Credit Lender the amount of such Lender’s Ratable Share of such amount
by no later than two o’clock (2:00) p.m., Eastern time on the Drawing Date, then
interest shall accrue on such Lender’s obligation to make such payment from the
Drawing Date to the date on which such Lender makes such payment (i) at a rate
per annum equal to the Federal Funds Effective Rate during the first three days
following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Loans under the Base Rate Option on and after the fourth day
following the Drawing Date. The Agent will promptly give notice of the
occurrence of the Drawing Date, but failure of the Agent to give any such notice
on the Drawing Date or in sufficient time to enable any Lender to effect such
payment on such date shall not relieve such Lender from its obligation under
this Section 2.9.3.3.

                              2.9.3.4 With respect to any unreimbursed drawing
that is not converted into Revolving Credit Loans under the Base Rate Option to
the Borrower in whole or in part as contemplated by Section 2.9.3.2
[Disbursements, Reimbursement], the Borrower shall be deemed to have incurred
from the Agent a borrowing (each a “Letter of Credit Borrowing”) in the amount
of such drawing. Such Letter of Credit Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the rate per annum
applicable to the Revolving Credit Loans under the Base Rate Option. Each
Lender’s payment to the Agent pursuant to Section 2.9.3.3 [Disbursements,
Reimbursement] shall be deemed to be a payment in respect of its participation
in such Letter of Credit Borrowing and shall constitute a “Participation
Advance” from such Lender in satisfaction of its participation obligation under
Section 2.9.3 [Disbursements, Reimbursement].

                    2.9.4 Repayment of Participation Advances.

                              2.9.4.1 Upon (and only upon) receipt by the Agent
on behalf of the Letter of Credit Lender of immediately available funds from the
Borrower (i) in reimbursement of any payment made by the Agent on behalf of the
Letter of Credit Lender under the Letter of Credit with respect to which any
Lender has made a Participation Advance to the Agent on behalf of the Letter of
Credit Lender or (ii) in payment of interest on such a payment made by the Agent
under such a Letter of Credit, the Agent will pay to each Lender, in the same
funds as those received by the Agent, the amount of such Lender’s Ratable Share
of such funds, except the Agent shall retain the amount of the Ratable Share of
such funds of any Lender that did not make a Participation Advance in respect of
such payment by Agent. If the Letter of Credit Lender receives any such payment
prior to 1:00 p.m. on a Business Day and does not make payment to any such
Lender which has made such a Participation Advance on the same

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Business Day, then such Lender shall be entitled to receive such Letter of
Credit Lender interest at the Federal Funds Effective Rate for each day until
such payment is made to such Lender.

                              2.9.4.2 If the Agent or the Letter of Credit
Lender is required at any time to return to any Loan Party, or to a trustee,
receiver, liquidator, custodian, or any official in any Insolvency Proceeding,
any portion of the payments made by any Loan Party pursuant to Section 2.9.4.1
[Repayment of Participation Advances] in reimbursement of a payment made under
the Letter of Credit or interest or fee thereon, each Lender shall, on demand of
the Agent on behalf of the Letter of Credit Lender, forthwith return to the
Agent the amount of its Ratable Share of any amounts so returned by the Agent or
such Letter of Credit Lender plus interest thereon from the date such demand is
made to the date such amounts are returned by such Lender to the Agent, at a
rate per annum equal to the Federal Funds Effective Rate in effect from time to
time.

                    2.9.5 Documentation.

                    Each Loan Party agrees to be bound by the terms of the
Letter of Credit Lender’s application and agreement for letters of credit and
the Letter of Credit Lender’s written regulations and customary practices
relating to letters of credit, though such interpretation may be different from
such Loan Party’s own. In the event of a conflict between such application or
agreement and this Agreement, this Agreement shall govern. It is understood and
agreed that, except in the case of gross negligence or willful misconduct, the
Letter of Credit Lender shall not be liable for any error, negligence and/or
mistakes, whether of omission or commission, in following any Loan Party’s
instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto.

                    2.9.6 Determinations to Honor Drawing Requests.

                    In determining whether to honor any request for drawing
under any Letter of Credit by the beneficiary thereof, the Letter of Credit
Lender shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been
delivered and that they comply on their face with the requirements of such
Letter of Credit.

                    2.9.7 Nature of Participation and Reimbursement Obligations.

                    Each Lender’s obligation in accordance with this Agreement
to make the Revolving Credit Loans or Participation Advances, as contemplated by
Section 2.9.3 [Disbursements, Reimbursement], as a result of a drawing under a
Letter of Credit, and the obligations of the Borrower to reimburse the Agent
upon a draw under a Letter of Credit, shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Section 2.9 [Letter of Credit Subfacility] under all circumstances,
including the following circumstances:

 

 

 

 

          (i) any set-off, counterclaim, recoupment, defense or other right
which such Lender may have against the Agent, any Loan Party or any other Person
for any reason whatsoever;

 

 

 

 

          (ii) the failure of any Loan Party or any other Person to comply, in
connection with a Letter of Credit Borrowing, with the conditions set forth in
Section 2.1 [Revolving Credit Commitments], 2.4 [Revolving Credit Loan Requests;
Swing Loan Requests], 2.4.2 [Swing Loan Requests] or 6.2 [Each Additional Loan
or Letter of Credit], if applicable, or as otherwise set forth in this Agreement
for the making of a Revolving Credit Loan, it being acknowledged that such
conditions are not required for the making of a Letter of Credit Borrowing and
the obligation of the Lenders to make Participation Advances under Section 2.9.3
[Disbursements, Reimbursement];

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          (iii) any lack of validity or enforceability of any Letter of Credit;

 

 

 

 

          (iv) the existence of any claim, set-off, defense or other right which
any Loan Party or any Lender may have at any time against a beneficiary or any
transferee of any Letter of Credit (or any Persons for whom any such transferee
may be acting), the Agent, the Letter of Credit Lender or any Lender or any
other Person or, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction (including any underlying
transaction between any Loan Party or Subsidiaries of a Loan Party and the
beneficiary for which any Letter of Credit was procured);

 

 

 

 

          (v) any draft, demand, certificate or other document presented under
any Letter of Credit proving to be forged, fraudulent, invalid or insufficient
in any respect or any statement therein being untrue or inaccurate in any
respect even if the Letter of Credit Lender has been notified thereof;

 

 

 

 

          (vi) payment by the Letter of Credit Lender under any Letter of Credit
against presentation of a demand, draft or certificate or other document which
does not comply with the terms of such Letter of Credit;

 

 

 

 

          (vii) any adverse change in the business, operations, properties,
assets, condition (financial or otherwise) or prospects of any Loan Party or
Subsidiaries of a Loan Party;

 

 

 

 

          (viii) any breach of this Agreement or any other Loan Document by any
party thereto;

 

 

 

 

          (ix) the occurrence or continuance of an Insolvency Proceeding with
respect to any Loan Party;

 

 

 

 

          (x) the fact that an Event of Default or a Potential Default shall
have occurred and be continuing;

 

 

 

 

          (xi) the fact that the Expiration Date shall have passed or this
Agreement or the Commitments hereunder shall have been terminated; and

 

 

 

 

          (xii) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing.

                    2.9.8 Indemnity.

                    In addition to amounts payable as provided in Section 9.5
[Reimbursement and Indemnification of Agent by the Borrower], the Borrower
hereby agrees to protect, indemnify, pay and save harmless the Agent and any
Letter of Credit Lender from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel and allocated costs of internal
counsel) which the Agent or any Letter of Credit Lender may incur or be subject
to as a consequence, direct or indirect, of the issuance of any Letter of
Credit, other than as a result of (A) the gross negligence or willful misconduct
of the Agent or any Letter of Credit Lender as determined by a final judgment of
a court of competent jurisdiction or (B) the wrongful dishonor by the Letter of
Credit Lender of a proper demand for payment made under any Letter of Credit,
except if such dishonor resulted from any act or omission, whether rightful or
wrongful, of any present or future de jure or de facto government or
governmental authority (all such acts or omissions herein called “Governmental
Acts”).

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                    2.9.9 Liability for Acts and Omissions.

                    As between any Loan Party and the Agent or any Letter of
Credit Lender, such Loan Party assumes all risks of the acts and omissions of,
or misuse of the Letters of Credit by, the respective beneficiaries of such
Letters of Credit. In furtherance and not in limitation of the foregoing,
neither the Agent nor any Letter of Credit Lender shall be responsible for: (i)
the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for an
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if the Agent or any Letter of Credit Lender shall have been notified
thereof); (ii) the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any such Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which
may prove to be invalid or ineffective for any reason; (iii) the failure of the
beneficiary of any such Letter of Credit, or any other party to which such
Letter of Credit may be transferred, to comply fully with any conditions
required in order to draw upon such Letter of Credit or any other claim of any
Loan Party against any beneficiary of such Letter of Credit, or any such
transferee, or any dispute between or among any Loan Party and any beneficiary
of any Letter of Credit or any such transferee; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail,
cable, telegraph, telex or otherwise, whether or not they be in cipher; (v)
errors in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising
from causes beyond the control of the Agent or Letter of Credit Lender,
including any Governmental Acts, and none of the above shall affect or impair,
or prevent the vesting of, any of the Agent’s or any Letter of Credit Lender’s
rights or powers hereunder. Nothing in the preceding sentence shall relieve the
Agent or any Letter of Credit Lender from liability for the Agent’s or any
Letter of Credit Lender’s gross negligence or willful misconduct in connection
with actions or omissions described in such clauses (i) through (viii) of such
sentence.

                    In furtherance and extension and not in limitation of the
specific provisions set forth above, any action taken or omitted by the Agent or
any Letter of Credit Lender under or in connection with the Letters of Credit
issued by it or any documents and certificates delivered thereunder, if taken or
omitted in good faith, shall not put the Agent or any Letter of Credit Lender
under any resulting liability to any Loan Party or any Lender.

                    2.9.10 Sharing Letter of Credit Documentation, Reporting.

                    Each Letter of Credit Lender shall furnish to the Agent:

                    (a) copies of any letter of credit application and related
documentation to which such Letter of Credit Lender and a Loan Party are parties
and promptly after issuance, a copy of any Letter of Credit or amendment to any
Letter of Credit issued by such Lender,

                    (b) within five (5) days after the last day of each month, a
list identifying all Letters of Credit currently outstanding as of the last day
of such month which have been issued by such Letter of Credit Lender; and

                    (c) if reasonably requested by Agent, on each Friday, a list
identifying all Letters of Credit currently outstanding as of the previous
Friday which have been issued by such Letter of Credit Lender.

                    2.9.11 Cash Collateral.

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                    If there exist any Letter of Credit Outstandings on the date
which is 30 days prior to the Expiration Date, the Borrower shall immediately
pledge and deposit with or deliver to Agent, for the benefit of each Letter of
Credit Lender and the Lenders, as collateral for all outstanding Letters of
Credit, Reimbursement Obligations and Letter of Credit Borrowings, cash or
deposit account balances pursuant to documentation in form and substance
reasonably satisfactory to Agent and each Letter of Credit Lender (which
documents are hereby consented to by the Lenders). Such cash collateral shall be
maintained in an interest bearing deposit or securities account at PNC Bank,
shall be separate and distinct from the Cash Collateral Accounts hereunder, and
may be invested in Permitted Investments described in clause (a) of the
definition thereof (“L/C Cash Collateral”). The Borrower hereby grants to Agent,
for the benefit of each Letter of Credit Lender and the Lenders, a security
interest in all L/C Cash Collateral and all balances therein and all proceeds
thereof.

          2.10 Extension by Lenders of the Expiration Date.

                    2.10.1 Requests; Approval by All Lenders.

                    After delivery by the Borrower of the annual financial
statements to be provided under Section 7.3.2 [Annual Financial Statements] for
the fiscal year ending October 31, 2008 or any subsequent fiscal year, the
Borrower may request either a one-year or two-year extension (provided that any
such extension may not cause the remaining term of this Agreement to exceed 5
years) of the Expiration Date, by written notice to the Lenders made by May 30
of the year in which such financial statements are due, and the Lenders agree to
respond to the Borrower’s request for an extension no later than thirty (30)
days following receipt of the request; provided, however, that the failure of
any Lender to respond within such time period shall not in any manner constitute
an agreement by such Lender to extend the Expiration Date. If all Lenders elect
to extend, the Expiration Date shall be extended for a period of one year or two
years, as requested by the Borrower. If one or more Lenders decline to extend or
do not respond to Borrower’s request, the provisions of Section 2.10.2 [Approval
by 66-2/3% Lenders] shall apply.

                    2.10.2 Approval by 66-2/3% Lenders.

                    In the event that one or more Lenders do not agree to extend
the Expiration Date or do not respond to Borrower’s request for an extension
within the time required under Section 2.10.1 [Requests; Approval by All
Lenders] (each a “Non-approving Lender”), but 66-2/3% of the Lenders (measured
by their Ratable Shares and not per capita) agree to such extension within such
time (each such agreeing Lender being an “Extending Lender”), then the Borrower
may, at the Borrower’s option, on or before July 31 of the year in which the
Borrower made its request for an extension, notify the Agent and the Lenders
that the Borrower intends to employ one or more of the following three (3)
options: (i) cause the Commitment of each Non-approving Lender to be terminated
(after which time such Non-approving Lender shall cease to be a “Lender”
hereunder) and cause the aggregate Commitments to be reduced by the amount of
such terminated Commitments, or (ii) require the Non-approving Lenders to sell,
and allow (upon prior notice to the Agent) the Extending Lenders which have
agreed to such extension within the time required under Section 2.10.1
[Requests; Approval by All Lenders] or any financial institution approved by the
Agent and (absent an Event of Default) the Borrower (each such Person referred
to in this clause (ii) being an “Assignee Lender”) to purchase all of the
outstanding Loans if any, of the Non-approving Lenders and succeed to and assume
the Commitments and all other rights, interests and obligations of the
Non-approving Lenders under this Agreement and the other Loan Documents, or
(iii) require the Non-approving Lender to remain a Lender and require it to
maintain its Commitment and retain for such Non-approving Lender’s Commitment
the “Expiration Date” established prior to the extension referred to in this
Section 2.10.2, all subject to the other provisions of this Agreement. Any such
purchase and assumption pursuant to clause (ii) above shall be (1) pursuant to
an Assignment and

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Assumption Agreement and (2) subject to and in accordance with Section 10.11
[Successors and Assigns]. The Borrower shall pay all amounts due and payable to
the Non-approving Lender on the effective date of such Assignment and Assumption
Agreement. In the event that the Agent shall become a Non-approving Lender, the
provisions of this Section 2.10 [Extension by Lenders of the Expiration Date]
shall be subject to Section 9.14 [Successor Agent]. In the event that the
Borrower has selected the option described in clause (ii) above and if the Loans
and Commitments of a Non-approving Lender are, nevertheless, not fully assigned
and assumed pursuant to this Section 2.10.2, or terminated or retained pursuant
to clause (i) or clause (iii) above, as applicable, on or before August 31 of
the year in which the Borrower made its request for an extension, then the
Expiration Date shall not be extended for any Lender. Nothing in this Section
2.10.2 shall expand the options provided in Section 4.4.2 [Replacement of a
Lender].

          2.11 Designation of Subsidiaries and Release of Guarantors.

                    2.11.1 Release of Guarantors.

                    At any time when the Borrower wishes to cause the Lenders to
release a Guarantor from its obligations under the Guaranty Agreement (whether
directly or in connection with the designation of a Restricted Subsidiary as a
Non-Restricted Person), the consent of the Lenders shall be required as
described below and shall be subject to the other provisions of this Section
2.11.

                    (a) For the release of (i) any Guarantor whose assets are
principally comprised of residential or commercial property which is leased or
held for the purposes of leasing to unaffiliated third parties or (ii) any
Guarantor in which any Loan Party (or Loan Parties in the aggregate) has, at the
time of such release, a Subsidiary Investment less than $1,000,000, (iii)
Corporate Office Subsidiary incident to it becoming a Non-Restricted Person, or
(iv) any Guarantor at the time that such Guarantor enters into a newly-formed
Joint Venture with a person which is not an Affiliate of the Loan Parties and
transfers all or a substantial portion of its assets to such Joint Venture
provided that such Guarantor is a Non-Restricted Person (or simultaneously with
the Borrower’s request for such release the Borrower has designated such
Guarantor as a “Non-Restricted Person” in compliance with Section 2.11.2), no
consent of the Lenders shall be required and such request of the Borrower shall
be granted absent an Event of Default or Potential Default, effective on the
date specified by the Borrower which shall not be earlier than five (5) Business
Days after the receipt by the Agent of such request;

                    (b) For the release of any Guarantor (not described in item
(a)(i) hereof) in which any Loan Party (or Loan Parties in the aggregate) has,
at the time of such release, a Subsidiary Investment greater than or equal to
$1,000,000 and less than $10,000,000 (except Corporate Office Subsidiary, if
otherwise applicable), the consent of Required Lenders shall be required;

                    (c) For the release of Hovnanian or any Guarantor (not
described in item (a)(i) hereof) in which any Loan Party (or Loan Parties in the
aggregate) has, at the time of such release, a Subsidiary Investment greater
than or equal to $10,000,000 (except Corporate Office Subsidiary, if otherwise
applicable), the consent of 100% of the Lenders shall be required; and

                    (d) The designation of a Person as a Non-Restricted Person
for any reason shall not itself constitute a release of any Guarantor and any
such release of such Person from its Guaranty shall be in accordance with this
Section 2.11.

                    2.11.2 Designation of Non-Restricted Person.

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                    The Borrower may, by written notice delivered to the Agent,
designate as a Non-Restricted Person a Subsidiary formerly designated a
Restricted Subsidiary or a newly formed or acquired Subsidiary, subject to: (i)
the provisions of subsection 2.11.1 hereof in relation to Guaranties, (ii) the
requirements of Section 7 [Covenants] and in particular Section 7.2.10
[Borrowing Base]; and (iii) the requirement that such designation not cause an
Event of Default or Potential Default. Such designation shall be effective on
the date specified by the Borrower which shall not be earlier than five (5)
Business Days after the receipt by the Agent of such notice.

                    2.11.3 Automatic Designation of Non-Restricted Person.

                    Upon the occurrence of any event described in Section 8.1.10
[Insolvency], Section 8.1.14 [Involuntary Proceedings], Section 8.1.15
[Voluntary Proceedings], or the winding-up or termination of business, with
respect to any Restricted Subsidiary, such Subsidiary shall automatically become
a Non-Restricted Person. Such designation as a Non-Restricted Person shall, with
respect to such Person’s obligations under the Guaranty Agreement, if any, be
subject to the requirements of Section 2.11.1 [Release of Guarantors] and such
Subsidiary shall continue to be a Guarantor until such time as it is released
from the Guaranty Agreement pursuant to such Section. The release of any
Subsidiary which is a Guarantor from its obligations under the Guaranty
Agreement pursuant to Section 2.11.1 [Release of Guarantors] shall automatically
cause such Subsidiary to be a Non-Restricted Person.

                    2.11.4 Designation of Restricted Subsidiary.

                    The Borrower may by written notice delivered to the Agent
designate as a Restricted Subsidiary a Subsidiary formerly designated a
Non-Restricted Person or a newly formed or acquired Subsidiary. Such designation
is subject to (i) compliance with Section 10.18 [Joinder of Guarantors]; (ii)
the requirements of Section 7 [Covenants] and in particular Section 7.2.10
[Borrowing Base]; and (iii) the requirement that such designation not cause an
Event of Default or Potential Default. Such designation shall be effective on
the date specified by the Borrower which shall not be earlier than five (5)
Business Days after the receipt by the Agent of such notice.

                    2.11.5 Automatic Release of Related Collateral and Equity.

                    Upon the release of a Guarantor granted in accordance with
Section 2.11.1 above, all equity issued by such Guarantor and pledged as
Collateral to the Agent for the benefit of the Lenders and all other personal
property Collateral granted by such Guarantor pursuant to the Security Agreement
shall be contemporaneously released without the necessity of any consent of any
Lender. In connection with any such release, the Agent shall execute and deliver
to Hovnanian or such Guarantor all documents that Hovnanian or such Guarantor
shall reasonably request to evidence such release.

          2.12 [Reserved]

3. INTEREST RATES

          3.1 Interest Rate Options, Interest Rate and Fee Floor.

                    (i) The Borrower shall pay interest in respect of the
outstanding unpaid principal amount of the Loans as selected by it from the Base
Rate Option, Index Rate Option or LIBOR Rate Option set forth below applicable
to the Loans, it being understood that, subject to the provisions of this
Agreement, the Borrower may select different Interest Rate Options and different
Interest Periods to apply simultaneously to the Loans comprising different
Borrowing Tranches and may convert to or renew

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one or more Interest Rate Options with respect to all or any portion of the
Loans comprising any Borrowing Tranche, provided that there shall not be at any
one time outstanding more than ten (10) Borrowing Tranches in the aggregate
among all of the Loans, and provided further that only the Base Rate Option
shall apply to the Swing Loans. If at any time the designated rate applicable to
any Loan made by any Lender exceeds such Lender’s highest lawful rate, the rate
of interest on such Lender’s Loan shall be limited to such Lender’s highest
lawful rate.

                    (ii) In all cases, the applicable interest rates and fees
accruing or due on all Revolving Loans and Letters of Credit outstanding or on
the unused portion of the Revolving Credit Commitments shall not be less than
the applicable interest rate and fees which would have accrued, or been
applicable, pursuant to the pricing grid and other related terms under the Prior
Credit Agreement. Upon the reasonable request of Agent, the Borrower shall
calculate the applicable rate and applicable fees pursuant to the terms and
provisions of the pricing grid under the Prior Credit Agreement and pursuant to
the terms and provisions of this Agreement, and in all cases, the higher
applicable rate and fees will apply.

                    3.1.1 Revolving Credit Interest Rate Options, Adjustments.

                    The Borrower shall have the right to select from the
following Interest Rate Options applicable to the Revolving Credit Loans
(subject to the provisions above regarding Swing Loans):

                    (i) Revolving Credit Base Rate Option: A fluctuating rate
per annum (computed on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin,
such interest rate to change automatically from time to time effective as of the
effective date of each change in the Base Rate; or

                    (ii) Revolving Credit LIBOR Rate Option: A rate per annum
(computed on the basis of a year of 360 days and actual days elapsed) equal to
the LIBOR Rate plus the Applicable Margin; or

                    (iii) Revolving Credit Index Rate Option. A fluctuating rate
per annum (computed on the basis of a year of 360 days and actual days elapsed)
equal to the Index Rate plus the Applicable Margin, such interest rate to change
automatically from time to time effective as of the effective date of each
change in the Index Rate.

                    In the event the Adjusted Leverage Ratio calculated by the
Borrower is later adjusted or corrected resulting in a higher Adjusted Leverage
Ratio which would have had the effect of increasing the Applicable Margin,
Applicable Commitment Fee Rate, Applicable Letter of Credit Fee Rate, or other
pricing under or relating to this Agreement, the Borrower shall be obligated to
pay the Lenders the additional amount of incremental interest and fees that
would have been due to the Lenders had the Adjusted Leverage Ratio been
initially calculated correctly, and such amount shall be paid to each of the
Lenders (as applicable with respect to any such interest and fees) within
fifteen (15) days of such adjustment or correction.

                    3.1.2 Rate Quotations.

                    The Borrower may call the Agent on or before the date on
which a Loan Request is to be delivered to receive an indication of the rates
then in effect, but it is acknowledged that such projection shall not be binding
on the Agent or the Lenders nor affect the rate of interest which thereafter is
actually in effect when the election is made.

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          3.2 Interest Periods.

          At any time when the Borrower shall select, convert to or renew a
LIBOR Rate Option, the Borrower shall notify the Agent thereof at least three
(3) Business Days prior to the effective date of such LIBOR Rate Option by
delivering a Loan Request. The notice shall specify an Interest Period during
which such Interest Rate Option shall apply. Notwithstanding the preceding
sentence, in the case of the renewal of a LIBOR Rate Option at the end of an
Interest Period, the first day of the new Interest Period shall be the last day
of the preceding Interest Period, without duplication in payment of interest for
such day.

          3.3 Interest After Default.

                    3.3.1 Default Rate.

                    To the extent permitted by Law, upon the occurrence of an
Event of Default under Section 8.1.1 [Payment Under Loan Documents], Section
8.1.10 [Insolvency], Section 8.1.14 [Involuntary Proceedings], Section 8.1.15
[Voluntary Proceedings] or the Obligations are accelerated under this Agreement
and until such time such Event of Default shall have been cured or waived, all
past due principal and all past due accrued interest thereon and fees and
expenses and each other past due Obligation payable hereunder shall bear
interest at a rate per annum equal to the sum of the rate of interest applicable
under the Base Rate Option plus an additional 3.0% per annum from the time such
Obligation becomes due and payable and until it is paid in full (the “Default
Rate”).

                    3.3.2 Acknowledgment.

                    The Borrower acknowledges that the increase in rate referred
to in Section 3.3.1 [Default Rate] reflects, among other things, the fact that
such Loans or other amounts have become a substantially greater risk given their
default status and that the Lenders are entitled to additional compensation for
such risk; and all such interest shall be payable by Borrower upon demand by
Agent.

          3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available.

                    3.4.1 Unascertainable.

                    If on any date on which a LIBOR Rate or Index Rate would
otherwise be determined, the Agent shall have determined that:

                    (i) adequate and reasonable means do not exist for
ascertaining such LIBOR Rate or Index Rate, or

                    (ii) a contingency has occurred which materially and
adversely affects the London interbank eurodollar market relating to the LIBOR
Rate or Index Rate, the Agent shall have the rights specified in Section 3.4.3
[Agent’s and Lender’s Rights].

                    3.4.2 Illegality; Increased Costs; Deposits Not Available.

                    If at any time any Lender shall have determined that:

                    (i) the making, maintenance or funding of any Loan to which
a LIBOR Rate Option or Index Rate Option applies has been made impracticable or
unlawful by compliance by such Lender in

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good faith with any Law or any interpretation or application thereof by any
Official Body or with any request or directive of any such Official Body
(whether or not having the force of Law), or

                    (ii) such LIBOR Rate Option or Index Rate Option will not
adequately and fairly reflect the cost to such Lender of the establishment or
maintenance of any such Loan, or

                    (iii) after making all reasonable efforts, deposits of the
relevant amount in Dollars for the relevant Interest Period for a Loan, or to
banks generally, to which a LIBOR Rate Option applies, respectively, are not
available to such Lender with respect to such Loan, or to banks generally, in
the interbank eurodollar market,

then the Agent and such Lender shall have the rights specified in Section 3.4.3
[Agent’s and Lender’s Rights].

                    3.4.3 Agent’s and Lender’s Rights.

                    In the case of any event specified in Section 3.4.1
[Unascertainable] above, the Agent shall promptly so notify the Lenders and the
Borrower thereof, and in the case of an event specified in Section 3.4.2
[Illegality; Increased Costs; Deposits Not Available] above, such Lender shall
promptly so notify the Agent and endorse a certificate to such notice as to the
specific circumstances of such notice, and the Agent shall promptly send copies
of such notice and certificate to the other Lenders and the Borrower. Upon such
date as shall be specified in such notice (which shall not be earlier than the
date such notice is given), the obligation of (A) the Lenders, in the case of
such notice given by the Agent, or (B) such Lender, in the case of such notice
given by such Lender, to allow the Borrower to select, convert to or renew a
LIBOR Rate Option or Index Rate Option, as applicable shall be suspended until
the Agent shall have later notified the Borrower, or such Lender shall have
later notified the Agent, of the Agent’s or such Lender’s, as the case may be,
determination that the circumstances giving rise to such previous determination
no longer exist. If at any time the Agent makes a determination under Section
3.4.1 [Unascertainable] and the Borrower has previously notified the Agent of
its selection of, conversion to or renewal of a LIBOR Rate Option or Index Rate
Option, as applicable, and such Interest Rate Option has not yet gone into
effect, such notification shall be deemed to provide for selection of,
conversion to or renewal of the Base Rate Option otherwise available with
respect to such Loans. If any Lender notifies the Agent of a determination under
Section 3.4.2 [Illegality; Increased Costs; Deposits Not Available], the
Borrower shall, subject to the Borrower’s indemnification Obligations under
Section 4.6.2 [Indemnity], as to any Loan of the Lender to which a LIBOR Rate
Option or Index Rate Option, as applicable, applies, on the date specified in
such notice either convert such Loan to the Base Rate Option otherwise available
with respect to such Loan or prepay such Loan in accordance with Section 4.4
[Voluntary Prepayments]. Absent due notice from the Borrower of conversion or
prepayment, such Loan shall automatically be converted to the Base Rate Option
otherwise available with respect to such Loan upon such specified date.

          3.5 Selection of Interest Rate Options.

          If the Borrower fails to select a new Interest Period to apply to any
Borrowing Tranche of Loans under the LIBOR Rate Option at the expiration of an
existing Interest Period applicable to such Borrowing Tranche in accordance with
the provisions of Section 3.2 [Interest Periods], the Borrower shall be deemed
to have converted such Borrowing Tranche to the Base Rate Option, commencing
upon the last day of the existing Interest Period.

4. PAYMENTS

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          4.1 Payments.

          All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Agent’s Fee or other fees or
amounts due from the Borrower hereunder shall be payable prior to eleven o’clock
(11:00) a.m., Eastern time, on the date when due without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived by the
Borrower, and without set-off, counterclaim or other deduction of any nature,
and an action therefor shall immediately accrue. Such payments shall be made to
the Agent at the Principal Office for the account of PNC Bank with respect to
the Swing Loans and for the ratable accounts of the Lenders with respect to the
Revolving Credit Loans in Dollars and in immediately available funds, and the
Agent shall promptly distribute such amounts to the Lenders in immediately
available funds, provided that in the event payments are received by eleven
o’clock (11:00) a.m., Eastern time, by the Agent with respect to the Loans and
such payments are not distributed to the Lenders on the same day received by the
Agent, the Agent shall pay the Lenders the Federal Funds Effective Rate with
respect to the amount of such payments for each day held by the Agent and not
distributed to the Lenders. The Agent’s and each Lender’s statement of account,
ledger or other relevant record shall, in the absence of manifest error, be
conclusive as the statement of the amount of principal of and interest on the
Loans and other amounts owing under this Agreement and shall be deemed an
“account stated.”

          4.2 Pro Rata Treatment of Lenders.

          Each borrowing shall be allocated to each Lender according to its
Ratable Share, and each selection of, conversion to or renewal of any Interest
Rate Option and each payment or prepayment by the Borrower with respect to
principal, interest, Commitment Fees, Letter of Credit Fees, or other fees
(except for the Agent’s Fee) or amounts due from the Borrower hereunder to the
Lenders with respect to the Loans, shall (except as provided in Section 3.4.3
[Agent’s and Lender’s Rights] in the case of an event specified in Sections 3.4
[LIBOR Rate Unascertainable; Illegality, Increased Costs, Deposits Not
Available], 4.4.2 [Replacement of a Lender] or 4.6 [Additional Compensation in
Certain Circumstances]) be made in proportion to the applicable Loans
outstanding from each Lender and, if no such Loans are then outstanding, in
proportion to the Ratable Share of each Lender. Notwithstanding any of the
foregoing, each borrowing or payment or prepayment by the Borrower of principal,
interest, fees or other amounts from the Borrower with respect to Swing Loans
shall be made by or to PNC Bank according to Section 2 [Revolving Credit and
Swing Loan Facilities].

          4.3 Interest Payment Dates.

          Interest on Loans to which the Base Rate Option or Index Rate Option
applies shall be due and payable in arrears on the first Business Day of each
calendar month after the date hereof and on the Expiration Date or upon
acceleration of the Loan. Interest on Loans to which the LIBOR Rate Option
applies shall be due and payable on the last day of each Interest Period for
those Loans and, if such Interest Period is longer than three (3) Months, also
on the 90th day of such Interest Period. Interest on mandatory prepayments of
principal under Section 4.5 [Mandatory Payments] shall be due on the date such
mandatory prepayment is due. Interest on the principal amount of each Loan or
other monetary Obligation shall be due and payable on demand after such
principal amount or other monetary Obligation becomes due and payable (whether
on the stated maturity date, upon acceleration or otherwise).

          4.4 Voluntary Prepayments.

                    4.4.1 Right to Prepay.

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                    The Borrower shall have the right at its option at any time
and from time to time to prepay the Loans in whole or part without premium or
penalty (except as provided in Section 4.4.2 [Replacement of a Lender] below or
in Section 4.6 [Additional Compensation in Certain Circumstances]).

Whenever the Borrower desires to prepay any part of the Loans, it shall provide
a prepayment notice to the Agent no later than (A) 11:00 a.m., Eastern time, at
least two (2) Business Days prior to the date of prepayment of the Revolving
Credit Loans to which the LIBOR Rate Option applies, (B) 11:00 a.m., Eastern
time, on the date of prepayment of Revolving Credit Loans to which the Base Rate
Option or Index Rate Option applies or (C) 2:00 p.m., Eastern time, on the date
of prepayment of Swing Loans, setting forth the following information:

                    (x) the date, which shall be a Business Day, on which the
proposed prepayment is to be made;

 

 

 

          (y) a statement indicating the application of the prepayment between
the Swing Loans and the Revolving Credit Loans; and

 

 

          (z) the total principal amount of such prepayment, which shall not be
less than (i) $100,000 and in increments of $100,000 for any Swing Loans, (ii)
$500,000 and in increments of $100,000 for any Revolving Credit Loan to which
the Base Rate Option or Index Rate Option applies or (iii) $2,500,000 and in
increments of $500,000 for any Revolving Credit Loan to which the LIBOR Rate
Option applies.

                    All prepayment notices shall be irrevocable. The principal
amount of the Loans for which a prepayment notice is given, together with
interest on such principal amount except with respect to Loans to which the Base
Rate Option applies, shall be due and payable on the date specified in such
prepayment notice as the date on which the proposed prepayment is to be made.
Except as provided in Section 3.4.3 [Agent’s and Lender’s Rights], if the
Borrower prepays a Loan but fails to specify the applicable Borrowing Tranche
which the Borrower is prepaying, the prepayment shall be applied first to Swing
Loans, then to Loans to which the Base Rate Option applies, then to Loans to
which the Index Rate Option applies and then to Loans to which the LIBOR Rate
Option applies. Any prepayment hereunder shall be subject to the Borrower’s
Obligation to indemnify the Lenders under Section 4.6.2 [Indemnity].

                    4.4.2 Replacement of a Lender.

                              (a) In the event any Lender (i) gives notice under
Section 3.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available] or Section 4.6.1 [Increased Costs or Reduced Return Resulting
from Taxes, Reserves, Capital Adequacy Requirements, Expenses, Etc.], (ii) does
not fund Revolving Credit Loans because the making of such Loans would
contravene any Law applicable to such Lender, or (iii) becomes subject to the
control of an Official Body (other than normal and customary supervision), then
the Borrower shall have the right at its option, with the consent of the Agent,
which shall not be unreasonably withheld, to prepay the Loans of such Lender in
whole, together with all interest accrued thereon and all other Obligations
owing to such Lender, and terminate such Lender’s Commitment within ninety (90)
days after (x) receipt of such Lender’s notice under Section 3.4 [LIBOR Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available] or 4.6.1
[Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
Adequacy Requirements, Expenses, Etc.], (y) the date such Lender has failed to
fund Revolving Credit Loans because the making of such Loans would contravene
Law applicable to such Lender, or (z) the date such Lender became subject to the
control of an Official Body, as applicable; provided that the Borrower shall
also pay to such Lender at the time of such prepayment any amounts required
under Section 4.6 [Additional Compensation in Certain Circumstances] and any
accrued interest due on such amount and any related fees; provided, further, the

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remaining Lenders shall have no obligation hereunder to increase their
Commitments. Notwithstanding the foregoing, the Agent may only be replaced
subject to the requirements of Section 9.14 [Successor Agent].

                               (b) If any Lender (such Lender, a “Non-Consenting
Lender”) has failed to consent to a proposed amendment, waiver or consent in
accordance with Section 10.1 [Modifications, Amendments or Waivers] with respect
to which the Majority Lenders shall have granted their consent, then the
Borrower shall have the right (unless such Non-Consenting Lender grants such
consent), at Borrower’s expense, to replace such Non-Consenting Lender by
requiring such Non-Consenting Lender to assign its Loans, and its Commitments
hereunder to one or more assignees reasonably acceptable to the Agents, provided
that: (a) all Obligations of the Borrower owing to such Non-Consenting Lender
being replaced shall be paid in full to such Non-Consenting Lender concurrently
with such assignment, and (b) the replacement Lender shall purchase the
foregoing by paying to such Non-Consenting Lender a price equal to the principal
amount thereof plus accrued and unpaid interest thereon. In connection with any
such assignment, the Borrower, the Agents, such Non-Consenting Lender and the
replacement Lender shall otherwise comply with Section 10.11 [Successors and
Assigns].

                    4.4.3 Change of Lending Office.

                    Each Lender agrees that upon the occurrence of any event
giving rise to increased costs or other special payments under Section 3.4.2
[Illegality; Increased Costs; Deposits Not Available] or 4.6.1 [Increased Costs
or Reduced Return Resulting from Taxes, Reserves, Capital Adequacy Requirements,
Expenses, Etc.] with respect to such Lender, it will if requested by the
Borrower, use reasonable efforts (subject to overall policy considerations of
such Lender) to designate another lending office for any Loans or Letters of
Credit affected by such event, provided that such designation is made on such
terms that such Lender and its lending office suffer no economic, legal or
regulatory disadvantage, with the object of avoiding the consequence of the
event giving rise to the operation of such Section. Nothing in this Section
4.4.3 [Change of Lending Office] shall affect or postpone any of the Obligations
of the Borrower or any other Loan Party or the rights of the Agent or any Lender
provided in this Agreement.

          4.5 Mandatory Payments; Temporary Reduction of Commitments.

                    4.5.1 Revolving Facility Usage in Excess of Commitments.

                    The Borrower shall make mandatory payments of principal on
the Revolving Credit Loans (together with accrued interest thereon) to the Agent
to the extent by which Revolving Facility Usage exceeds at any time the
Commitments (as they may be reduced pursuant to Section 2.1. [Voluntary
Reduction of Commitment], Section 2.10.2 [Approval by 66-2/3% Lenders] or
otherwise) within three (3) Business Days after such excess is calculated.

                    4.5.2 Cash in Excess of $100 Million.

                    If, prior to the end of the Preference Period relating to
the Initial Mortgaged Collateral, the Loan Parties cash on hand exceeds
$100,000,000 at any time (including such cash as has been deposited pursuant to
Section 7.1.12 [Excess Cash During Preference Period]), the Borrower shall
within two (2) Business Days of each such time make mandatory payments of
principal, up to the amount of such excess cash on hand, on the Revolving Credit
Loans then outstanding (together with accrued interest thereon) to the Agent to
the extent by which the Revolving Credit Loans exceed $325,000,000.

                    4.5.3 Issuance of Capital Stock,; Incurrence of Indebtedness
- Initial Preference Period.

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                    If, prior to the end of the Preference Period as to the
Initial Mortgaged Collateral, any Capital Stock shall be issued by any Loan
Party or any Indebtedness shall be incurred by any Loan Party (excluding (i) any
Capital Stock issued to a Loan Party, (ii) any conversion or exchange of any
Capital Stock of a Loan Party into another type or class of Capital Stock of the
same Loan Party, (iii) any Indebtedness incurred hereunder, and (iv) that
Indebtedness owing to a Loan Party), (a) an amount equal to 100% of the Net Cash
Proceeds thereof shall be applied, no later than three (3) Business Days after
the date such Net Cash Proceeds are received, toward the prepayment of the
outstanding principal amount of the Revolving Credit Loans in excess of
$325,000,000 (with any remaining balance of such Net Cash Proceeds being
deposited in a Cash Collateral Account), and (b) the unused Commitments shall be
unavailable to Borrower until the end of the Preference Period as to the Initial
Mortgaged Collateral to the extent of an amount equal to 100% of such Net Cash
Proceeds no later than three (3) Business Days after the date such Net Cash
Proceeds are received; provided that in no event shall the Commitments be
effectively reduced below $600,000,000 as a result of this clause (b) and in no
event shall the terms of this clause (b) limit the rights of the Loan Parties
under Section 2.1.3(i).

          4.6 Additional Compensation in Certain Circumstances.

 

 

 

 

4.6.1

Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
Adequacy Requirements, Expenses, Etc.

                    If any Law, guideline or interpretation or any change in any
Law, guideline or interpretation or application thereof by any Official Body
charged with the interpretation or administration thereof or compliance with any
request or directive (whether or not having the force of Law) of any central
bank or other Official Body:

                    (i) subjects any Lender to any tax or changes the basis of
taxation (including in both cases withholding taxes) with respect to this
Agreement, the Notes, the Loans or payments by the Borrower of principal,
interest, Commitment Fees, or other amounts due from the Borrower hereunder
(except for taxes on the overall net income of such Lender, franchise taxes, any
branch profits taxes, any U.S. withholding taxes imposed on a foreign Lender at
the time such Lender becomes a party to this Agreement, and any taxes
attributable to a failure of such Lender to comply with the requirements of
Section 10.17.1 of this Agreement),

                    (ii) imposes, modifies or deems applicable any reserve,
special deposit or similar requirement against credits or commitments to extend
credit extended by, or assets (funded or contingent) of, deposits with or for
the account of, or other acquisitions of funds by, any Lender, or

                    (iii) imposes, modifies or deems applicable any capital
adequacy or similar requirement (A) against assets (funded or contingent) of, or
letters of credit, other credits or commitments to extend credit extended by,
any Lender, or (B) otherwise applicable to the obligations of any Lender under
this Agreement,

and the result of any of the foregoing is to increase the cost to, reduce the
income receivable by, or impose any expense upon any Lender with respect to this
Agreement, or the making, maintenance or funding of any part of the Loans (or,
in the case of any capital adequacy or similar requirement, to have the effect
of reducing the rate of return on any Lender’s capital, taking into
consideration such Lender’s customary policies with respect to capital adequacy)
by an amount which such Lender in its sole discretion deems to be material, such
Lender shall from time to time notify the Borrower and the Agent of the amount
determined in good faith (using any averaging and attribution methods employed
in good faith) by such Lender to be necessary to compensate such Lender for such
increase in cost, reduction of income, additional expense or reduced rate of
return. Such notice shall set forth in reasonable detail the

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basis for such determination, provided however, that any such determination
shall be conclusive and binding absent manifest error. Such amount shall be due
and payable by the Borrower to such Lender ten (10) Business Days after such
notice is given.

                    If any Lender receives a refund in respect of any amounts
paid by the Borrower pursuant to this Section 4.6.1, which refund in the good
faith judgment of such Lender is allocable to such payment, it shall notify the
Borrower of such refund and repay such refund to the Borrower net of all
out-of-pocket expenses of such Lender; provided, however, that the Borrower,
upon the request of such Lender, agrees to repay the amount paid over to the
Borrower to such Lender in the event such Lender is required to repay such
refund. Nothing contained in this paragraph shall require any Lender or Agent to
make available its tax returns (or any other information relating to its taxes
which it deems to be confidential).

                    4.6.2 Indemnity.

                    In addition to the compensation required by Section 4.6.1
[Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
Adequacy Requirements, Expenses, Etc.], the Borrower shall indemnify each Lender
against all liabilities, losses or expenses (including actual loss of margin,
any loss or expense incurred in liquidating or employing deposits from third
parties and any loss or expense incurred in connection with funds acquired by a
Lender to fund or maintain Loans subject to a LIBOR Rate Option) which such
Lender sustains or incurs as a consequence of any:

                    (i) payment, prepayment, conversion or renewal of any Loan
to which a LIBOR Rate Option applies on a day other than the last day of the
corresponding Interest Period (whether or not such payment or prepayment is
mandatory, voluntary or automatic and whether or not such payment or prepayment
is then due),

                    (ii) attempt by the Borrower to revoke (expressly, by later
inconsistent notices or otherwise) in whole or part any Loan Requests under
Section 2.4 [Revolving Credit Loan Requests; Swing Loan Requests] or Section 3.2
[Interest Periods] or notice relating to prepayments under Section 4.4
[Voluntary Prepayments], or

                    (iii) default by the Borrower in the performance or
observance of any covenant or condition contained in this Agreement or any other
Loan Document, including any failure of the Borrower to pay when due (by
acceleration or otherwise) any principal, interest, Commitment Fee, Letter of
Credit Fees, or any other amount due hereunder.

                    If any Lender sustains or incurs any such loss or expense,
it shall from time to time notify the Borrower of the amount determined in good
faith by such Lender (which determination may include such assumptions,
allocations of costs and expenses and averaging or attribution methods as such
Lender shall deem reasonable) to be necessary to indemnify such Lender for such
loss or expense. Such notice shall set forth in reasonable detail the basis for
such determination. Such amount shall be due and payable by the Borrower to such
Lender ten (10) Business Days after such notice is given.

          4.7 Notes.

          The Revolving Credit Loans made by each Lender shall (unless a Lender
requests that the Borrower not issue a Note to such Lender) be evidenced by a
Revolving Credit Note.

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          4.8 Settlement Date Procedures.

          The Borrower may borrow, repay and reborrow Swing Loans and PNC Bank
may make Swing Loans as provided in Section 2.1.2 [Swing Loan Commitment]
hereof. On any Business Day, the Agent may notify each Lender of its Ratable
Share of the total of the Revolving Credit Loans and the Swing Loans (each a
“Required Share”). Prior to 2:30 p.m., Eastern time, on the date following the
date of such notice, each Lender shall pay to the Agent the amount equal to the
difference between its Required Share and its Revolving Credit Loans, and the
Agent shall pay to each Lender its Ratable Share of all payments made by the
Borrower to the Agent with respect to the Revolving Credit Loans. The Agent
shall also effect settlement in accordance with the foregoing sentence on the
proposed Borrowing Dates for Revolving Credit Loans and on any date when
payments of principal of any Loan is required to be paid by any Loan Party
hereunder and may at its option, and in consultation with the Borrower, effect
settlement on any other Business Day. These settlement procedures are
established solely as a matter of administrative convenience, and nothing
contained in this Section 4.8 shall relieve the Lenders of their obligations to
fund Revolving Credit Loans on dates other than a Settlement Date pursuant to
Section 2.8 [Borrowings to Repay Swing Loans]. The Agent may at any time at its
option for any reason whatsoever require each Lender to pay immediately to the
Agent such Lender’s Ratable Share of the outstanding Revolving Credit Loans and
each Lender may at any time require the Agent to pay immediately to such Lender
its Ratable Share of all payments made by the Borrower to the Agent with respect
to the Revolving Credit Loans.

5. REPRESENTATIONS AND WARRANTIES

          5.1 Representations and Warranties.

          The Borrower and Hovnanian, jointly and severally, represent and
warrant to the Agent and to each of the Lenders as follows:

                    5.1.1 Organization and Qualification.

                    Each of the Borrower and Hovnanian is a corporation duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization and each other Loan Party is a corporation,
partnership or limited liability company duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization except to the
extent the failure to do so could not, individually or in the aggregate,
reasonably be expected to cause a Material Adverse Change. Each Loan Party has
the lawful power to own or lease its properties and to engage in the business it
presently conducts or proposes to conduct. Each Loan Party is duly licensed or
qualified and in good standing in each jurisdiction where the failure to obtain
them could, individually or in the aggregate, reasonably be expected to cause a
Material Adverse Change.

                    5.1.2 Subsidiaries.

                    As of the Closing Date, Schedule 1.1(C) states the name of
each of Hovnanian’s Subsidiaries and its jurisdiction of incorporation.
Hovnanian and each Loan Party has good and marketable title to all of the
Subsidiary Shares, Partnership Interests and LLC Interests it purports to own,
free and clear in each case of any Lien. All Subsidiary Shares, Partnership
Interests and LLC Interests have been validly issued, and all Subsidiary Shares
are fully paid and nonassessable. All capital contributions and other
consideration required to be made or paid in connection with the issuance of the
Partnership Interests and LLC Interests have been made or paid, as the case may
be. Schedule 1.1(C) also sets forth, as to each of Hovnanian’s Subsidiaries, the
percentage ownership of each owner of: the issued and outstanding shares
(referred to herein as the “Subsidiary Shares”) if such Subsidiary is a
corporation,

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its outstanding partnership interests (the “Partnership Interests”) if such
Subsidiary is a partnership and its outstanding limited liability company
interests (the “LLC Interests”) if such Subsidiary is a limited liability
company. Schedule 1.1(C) also footnotes the controlling interests of each
Subsidiary if such controlling interest is held by a Person other than Hovnanian
or a Subsidiary of Hovnanian.

                    5.1.3 Power and Authority, No Claims.

Each Loan Party has full power to enter into, execute, deliver and carry out
this Agreement and the other Loan Documents to which it is a party, to incur the
Indebtedness contemplated by the Loan Documents and to perform its Obligations
under the Loan Documents to which it is a party, and all such actions have been
duly authorized by all necessary proceedings on its part; on the Closing Date,
there are no set-offs, claims, defenses, counterclaims, causes of action, or
deductions of any nature against any of the Obligations.

                    5.1.4 Validity and Binding Effect.

                    This Agreement has been duly and validly executed and
delivered by each Loan Party, and each other Loan Document which any Loan Party
is required to execute and deliver on or after the date hereof will have been
duly executed and delivered by such Loan Party on the required date of delivery
of such Loan Document. This Agreement and each other Loan Document constitutes,
or will constitute, legal, valid and binding obligations of each Loan Party
which is or will be a party thereto on and after its date of delivery thereof,
enforceable against such Loan Party in accordance with its terms, except to the
extent that enforceability of any of such Loan Document may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforceability of creditors’ rights generally or limiting the
right of specific performance.

                    5.1.5 No Conflict.

                    Neither the execution and delivery of this Agreement or the
other Loan Documents by any Loan Party nor the consummation of the transactions
herein or therein contemplated or compliance with the terms and provisions
hereof or thereof by any of them will conflict with, constitute a default under
or result in any breach of (i) the terms and conditions of the certificate of
incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents of any Loan Party or (ii) any Law or any material
agreement or instrument or order, writ, judgment, injunction or decree to which
any Loan Party is a party or by which it is bound or to which it is subject, or
result in the creation or enforcement of any Lien, charge or encumbrance
whatsoever upon any property (now or hereafter acquired) of any Loan Party
(other than Liens granted under the Loan Documents) which could, individually or
in the aggregate, reasonably be expected to cause a Material Adverse Change.

                    5.1.6 Litigation.

                    There are no actions, suits, proceedings or investigations
pending or, to the knowledge of any Loan Party, threatened against such Loan
Party at law or equity before any Official Body which individually or in the
aggregate may result in any Material Adverse Change. None of the Loan Parties is
in violation of any order, writ, injunction or any decree of any Official Body
which may result in any Material Adverse Change.

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                    5.1.7 Title to Properties.

                    Each Loan Party has good and marketable title to or a valid
leasehold interest in all properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and
records, free and clear of all Liens and encumbrances, except Permitted Liens,
and subject to the terms and conditions of the applicable leases. All leases of
property are in full force and effect without the necessity for any consent
which has not previously been obtained upon consummation of the transactions
contemplated hereby.

                    5.1.8 Financial Statements.

                    (i) Historical Statements. The Borrower has delivered to the
Agent copies of Hovnanian’s audited consolidated year-end financial statements
for and as of the end of the fiscal year ended October 31, 2007 (the “Annual
Statements”) (the Annual Statements are also sometimes referred to as the
“Historical Statements”). The Historical Statements were compiled from the books
and records maintained by Hovnanian’s management, are correct and complete in
all material respects and fairly represent in all material respects the
consolidated financial condition of Hovnanian and its Subsidiaries as of their
dates and the results of operations for the fiscal periods then ended and have
been prepared in accordance with GAAP consistently applied. The Historical
Statements accurately reflect the liabilities in all material respects of
Hovnanian and its Subsidiaries.

                    (ii) Financial Projections. The Borrower has delivered to
the Agent and the Lenders financial projections of Hovnanian and its
Subsidiaries for the period ending October 31, 2008 derived from various
assumptions of Hovnanian’s management (the “Financial Projections”). The
Financial Projections represent a reasonable range of possible results in light
of the history of the business, present and foreseeable conditions and the
intentions of Hovnanian’s management (it being understood that actual results
may vary materially from the Financial Projections).

                    (iii) Accuracy of Financial Statements. As of the Closing
Date, neither Hovnanian nor any Subsidiary of Hovnanian has any liabilities,
contingent or otherwise, or forward or long-term commitments that are required
by GAAP to be, but are not, disclosed in the Historical Statements or in the
notes thereto, and except as disclosed therein there are no unrealized or
anticipated losses from any commitments of Hovnanian or any Subsidiary of
Hovnanian which may cause a Material Adverse Change. Except as disclosed on
Schedule 5.1.8, since October 31, 2007, no Material Adverse Change has occurred.

                    5.1.9 Use of Proceeds; Margin Stock.

                              5.1.9.1 General.

                              The Loan Parties intend to use the proceeds of the
Loans in accordance with Sections 2.7 [Use of Proceeds] and 7.1.10 [Use of
Proceeds].

                              5.1.9.2 Margin Stock.

                              None of the Loan Parties engages or intends to
engage principally, or as one of its important activities, in the business of
extending credit for the purpose, immediately, incidentally or ultimately, of
purchasing or carrying margin stock (within the meaning of Regulation U). No
part of the proceeds of any Loan has been or will be used, immediately,
incidentally or ultimately, to purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying any margin stock or
to refund Indebtedness originally incurred for such purpose, or for any purpose
which entails a

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violation of or which is inconsistent with the provisions of the regulations of
the Board of Governors of the Federal Reserve System. None of the Loan Parties
holds or intends to hold margin stock in such amounts that more than 25% of the
reasonable value of the assets of such Loan Party are or will be represented by
margin stock.

                    5.1.10 Full Disclosure.

                    Neither this Agreement nor any other Loan Document, nor any
certificate, statement, agreement or other documents furnished to the Agent or
any Lender in connection herewith or therewith, contains any untrue statement of
a material fact or omits to state a material fact necessary in order to make the
statements contained herein and therein, in light of the circumstances under
which they were made, not misleading in any material respect. There is no fact
known to any Loan Party which materially adversely affects the business,
property, assets, financial condition, results of operations or business
prospects of the Loan Parties taken as a whole which has not been set forth in
this Agreement or in the certificates, statements, agreements or other documents
furnished in writing to the Agent and the Lenders prior to or at the date hereof
in connection with the transactions contemplated hereby.

                    5.1.11 Taxes.

                    All federal, state, local and other tax returns required to
have been filed with respect to the Loan Parties have been filed, and payment or
adequate provision has been made for the payment of all taxes, fees, assessments
and other governmental charges which have or may become due pursuant to said
returns or to assessments received, except to the extent that such taxes, fees,
assessments and other charges are not material or are being contested in good
faith by appropriate proceedings diligently conducted and for which such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made. There are no agreements or waivers extending the statutory
period of limitations applicable to any federal income tax return of any Loan
Party for any period.

                    5.1.12 Consents and Approvals.

                    Except for the filing of financing statements and Mortgages
in appropriate state and county filings offices, no consent, approval,
exemption, order or authorization of, or a registration or filing with, any
Official Body or any other Person is required by any Law or any agreement in
connection with the execution, delivery and carrying out of this Agreement and
the other Loan Documents by any Loan Party, except as listed on Schedule 5.1.12,
all of which shall have been obtained or made on or prior to the Closing Date
except as otherwise indicated on Schedule 5.1.12.

                    5.1.13 No Event of Default; Compliance with Instruments.

                    No event has occurred and is continuing and no condition
exists or will exist after giving effect to the borrowings or other extensions
of credit to be made on the Closing Date under or pursuant to the Loan Documents
which constitutes an Event of Default or Potential Default. None of the Loan
Parties is in violation of (i) any term of its certificate of incorporation,
bylaws, certificate of limited partnership, partnership agreement, certificate
of formation, limited liability company agreement or other organizational
documents or (ii) any material agreement or instrument to which it is a party or
by which it or any of its properties may be subject or bound where such
violation would constitute a Material Adverse Change.

                    5.1.14 Patents, Trademarks, Copyrights, Licenses, Etc.

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                    Each Loan Party owns or possesses all the material patents,
trademarks, service marks, trade names, copyrights, licenses, registrations,
franchises, permits and rights necessary to own and operate its properties and
to carry on its business as presently conducted and planned to be conducted by
such Loan Party, without known possible, alleged or actual material conflict
with the rights of others.

                    5.1.15 Insurance.

                    No notice has been given or claim made and no grounds exist
to cancel or avoid any of insurance policies of the type described in Section
7.1.3 [Maintenance of Insurance] or to reduce the coverage provided thereby.

                    5.1.16 Compliance with Laws.

                    The Loan Parties are in compliance in all material respects
with all applicable Laws (other than Environmental Laws which are specifically
addressed in Section 5.1.21 [Environmental Matters]) in all jurisdictions in
which any Loan Party is presently or will be doing business except where the
failure to do so would not constitute a Material Adverse Change.

                    5.1.17 Burdensome Restrictions.

                    None of the Loan Parties is bound by any contractual
obligation, or subject to any restriction in any organization document, or any
requirement of Law which could reasonably be expected to constitute a Material
Adverse Change.

                    5.1.18 Investment Companies; Regulated Entities.

                    None of the Loan Parties is an “investment company”
registered or required to be registered under the Investment Company Act of 1940
or under the “control” of an “investment company” as such terms are defined in
the Investment Company Act of 1940 and shall not become such an “investment
company” or under such “control.” None of the Loan Parties is subject to any
other Federal or state statute or regulation limiting its ability to incur
Indebtedness for borrowed money (other than Regulation X of the Board of
Governors of the Federal Reserve System).

                    5.1.19 Plans and Benefit Arrangements.

                              (i) Except where the liability that could
reasonably be expected to result therefrom would not, individually or in the
aggregate, result in a Material Adverse Change, (a) the Loan Parties and each
other member of the ERISA Group are in compliance in all material respects with
any applicable provisions of ERISA with respect to all Plans and, as to the
Borrower, Benefit Arrangements; (b) there has been no Prohibited Transaction
with respect to any such Benefit Arrangement or any Plan which could result in
any material liability of the Loan Parties or any other member of the ERISA
Group; (c) the Loan Parties and all other members of the ERISA Group have made
when due any and all payments required to be made under any agreement relating
to a Multiemployer Plan or any Law pertaining thereto; (d) with respect to each
Plan the Loan Parties and each other member of the ERISA Group (i) have
fulfilled in all respects their obligations under the minimum funding standards
of ERISA, (ii) have not incurred any liability to the PBGC, except for premiums
in the ordinary course which are not overdue and (iii) have not had asserted
against them any penalty for failure to fulfill the minimum funding requirements
of Section 302 of ERISA; and (e) all Plans and Benefit Arrangements have been
administered in material compliance with their terms and applicable Law.

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                              (ii) Except where the liability that could
reasonably be expected to result therefrom would not, individually or in the
aggregate, result in a Material Adverse Change, no event requiring notice to the
PBGC under Section 302(f)(4)(A) of ERISA has occurred or is reasonably expected
to occur with respect to any Plan, and no amendment with respect to which
security is required under Section 307 of ERISA has been made or is reasonably
expected to be made to any Plan.

                              (iii) Except where the liability that could
reasonably be expected to result therefrom would not, individually or in the
aggregate, result in a Material Adverse Change, neither the Loan Parties nor any
other member of the ERISA Group has incurred or reasonably expects to incur any
material withdrawal liability under Section 4201 of ERISA to any Multiemployer
Plan or under Section 4063 or 4064 of ERISA to any Plan. Neither the Loan
Parties nor any other member of the ERISA Group has been notified by any
Multiemployer Plan or Plan that such Multiemployer Plan or Plan has been
terminated within the meaning of Sections 4041 A or 4064, respectively, of ERISA
and, to the best knowledge of the Borrower, no Multiemployer Plan is reasonably
expected to be reorganized or terminated, within the meaning of Title IV of
ERISA.

                              (iv) To the best knowledge of Borrower, neither
the Borrower nor any other member of the ERISA Group has, within the preceding
five years, entered into a transaction to which either Section 4069 or Section
4212(c) of ERISA could apply so as to subject Borrower or other member of the
ERISA Group to a liability, except where the liability that could reasonably be
expected to result therefrom would not result in a Material Adverse Change.

                    5.1.20 Employment Matters.

                    Each of the Loan Parties is in compliance with the Labor
Contracts and all applicable Federal, state and local labor and employment Laws
including those related to equal employment opportunity and affirmative action,
labor relations, minimum wage, overtime, child labor, medical insurance
continuation, worker adjustment and relocation notices, immigration controls and
worker and unemployment compensation, where such failure to comply would
constitute a Material Adverse Change. There are no outstanding grievances,
arbitration awards or appeals therefrom arising out of the Labor Contracts or
current or threatened strikes, picketing, handbilling or other work stoppages or
slowdowns at facilities of any of the Loan Parties which in any case would
constitute a Material Adverse Change.

                    5.1.21 Environmental Matters.

                    None of the Loan Parties has received any Environmental
Complaint, including but not limited to those from any Official Body or private
Person alleging that such Loan Party or any prior owner, operator or occupant of
any of the Property is a potentially responsible party under the Comprehensive
Environmental Response, Cleanup and Liability Act, 42 U.S.C. § 9601, et seq.,
the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. or any
analogous state or local Law, which could reasonably be expected to constitute a
Material Adverse Change and none of the Loan Parties has any reason to believe
that such an Environmental Complaint might be received. There are no pending or,
to any Loan Party’s knowledge, threatened Environmental Complaints relating to
any Loan Party or, to any Loan Party’s knowledge, any prior owner, operator or
occupant of any of the Properties pertaining to, or arising out of, any
Contamination or violations of Environmental Laws or Required Environmental
Permits which could reasonably be expected to constitute a Material Adverse
Change.

                    5.1.22 Senior Debt Status.

                    The Obligations of each Loan Party under this Agreement, the
Guaranty Agreement and each of the other Loan Documents to which it is a party
do rank and will rank at least pari passu in

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priority of payment with all other Indebtedness of such Loan Party except
Indebtedness of such Loan Party to the extent secured by Permitted Liens. There
is no Lien upon or with respect to any of the properties or income of any Loan
Party which secures Indebtedness or other obligations of any Person except for
Permitted Liens.

                    5.1.23 Solvency.

                    As of the Closing Date, the Loan Parties are, taken as a
whole and after giving effect to the incurrence of all Indebtedness and
obligations being incurred in connection herewith as of such date, will be and
will continue to be Solvent.

          5.2 Continuation of Representations.

          The Borrower and Hovnanian make the representations and warranties in
this Section 5 on the date hereof and on the Closing Date and each date
thereafter on which a Loan is made or a Letter of Credit is issued as provided
in and subject to Sections 6.1 [First Loans and Letters of Credit] and 6.2 [Each
Additional Loan or Letter of Credit].

6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

          The obligation of each Lender to make Loans and of the Agent and the
Letter of Credit Lenders to issue Letters of Credit hereunder is subject to the
performance by each of the Loan Parties of its Obligations to be performed
hereunder at or prior to the making of any such Loans or issuance of such
Letters of Credit and to the satisfaction of the following further conditions:

          6.1 First Loans and Letters of Credit.

          On the Closing Date:

                    6.1.1 Officer’s Certificate.

                    The representations and warranties of each of the Loan
Parties contained in Section 5 [Representation and Warranties] and in each of
the other Loan Documents shall be true and correct on and as of the Closing Date
with the same effect as though such representations and warranties had been made
on and as of such date (except representations and warranties which relate
solely to an earlier date or time, which representations and warranties shall be
true and correct on and as of the specific dates or times referred to therein),
and each of the Loan Parties shall have performed and complied with all
covenants and conditions hereof and thereof, no Event of Default or Potential
Default shall have occurred and be continuing or shall exist; and there shall be
delivered to the Agent for the benefit of each Lender a certificate of each of
Hovnanian and the Borrower, dated the Closing Date and signed by the Chief
Executive Officer, President or Chief Financial Officer of each of the Loan
Parties, to each such effect.

                    6.1.2 Incumbency Certificate.

                    There shall be delivered to the Agent for the benefit of
each Lender a certificate dated the Closing Date and signed by the Secretary or
an Assistant Secretary or the managing member (or equivalent), as the case may
be, of each of the Loan Parties, certifying as appropriate as to:

                              (i) all action taken by each Loan Party in
connection with this Agreement and the other Loan Documents;

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                              (ii) the names of the officer or officers
authorized to sign this Agreement and the other Loan Documents and the true
signatures of such officer or officers, on which the Agent and each Lender may
conclusively rely; and

                              (iii) as to each of Hovnanian and the Borrower and
those other Loan Parties identified by the Agent only, within thirty (30) days
of the Closing Date, copies of its organizational documents, including its
certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, and limited liability company
agreement as in effect on the Closing Date certified by the appropriate state
official where such documents are filed in a state office together with
certificates from the appropriate state officials as to the continued existence
and good standing of such Loan Party in each state where organized.

                    6.1.3 Delivery of Loan Documents.

                    The Notes, the Guaranty Agreement, the Security Agreement,
environmental indemnity agreement, and Pledge Agreement, shall have been duly
executed and delivered by Hovnanian and the other Loan Parties to the Agent on
or before the date hereof for the benefit of the Lenders.

                    6.1.4 Opinion of Counsel.

                    There shall be delivered to the Agent for the benefit of
each Lender written opinions of (i) Peter Reinhart, Esquire, in house counsel to
the Loans Parties and (ii) Simpson Thacher & Bartlett LLP, New York counsel to
the Loan Parties, in each case dated the Closing Date and in form and substance
reasonably satisfactory to the Agent and its counsel and covering such matters
relating to the Loan Parties and the Loan Documents, including this Agreement,
as the Administrative Agent shall reasonably request.

                    6.1.5 Legal Details.

                    All legal details and proceedings in connection with the
transactions contemplated by this Agreement and the other Loan Documents shall
be in form and substance reasonably satisfactory to the Agent and counsel for
the Agent, and the Agent shall have received all such other counterpart
originals or certified or other copies of such documents and proceedings in
connection with such transactions, in form and substance reasonably satisfactory
to the Agent and said counsel, as the Agent or said counsel may reasonably
request.

                    6.1.6 Payment of Fees.

                    The Borrower shall have paid or caused to be paid to the
Agent for itself and for the account of the Lenders to the extent not previously
paid, all commitment and other fees accrued through the Closing Date and the
costs and expenses for which the Agent and the Lenders are entitled to be
reimbursed.

                    6.1.7 Consents.

                    All material consents required to effectuate the
transactions contemplated hereby as set forth on Schedule 5.1.12 shall have been
obtained.

                    6.1.8 Officer’s Certificate Regarding MAC.

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                    Since October 31, 2007, no Material Adverse Change shall
have occurred, and there shall have been delivered to the Agent for the benefit
of each Lender a certificate dated the Closing Date and signed by the Chief
Executive Officer, President or Chief Financial Officer of each Loan Party to
each such effect.

                    6.1.9 No Actions or Proceedings.

                    No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, this Agreement, the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby.

                    6.1.10 Lien Search.

                    The Agent shall have ordered customary lien, judgments and
secured transactions searches with respect to Borrower, Hovnanian, and a
reasonable sample of the Restricted Subsidiaries.

          6.2 Each Additional Loan or Letter of Credit.

          At the time of making any Loans or issuing any Letters of Credit other
than Loans made or Letters of Credit issued on the Closing Date and after giving
effect to the proposed extensions of credit: the representations and warranties
of the Loan Parties contained in Section 5 [Representations and Warranties] and
in the other Loan Documents shall be true and correct in all material respects
on and as of the date of such additional Loan or Letter of Credit with the same
effect as though such representations and warranties had been made on and as of
such date (except representations and warranties which expressly relate solely
to an earlier date or time, which representations and warranties shall be true
and correct in all material respects on and as of the specific dates or times
referred to therein); no Event of Default or Potential Default shall have
occurred and be continuing or shall exist; and the Borrower shall have delivered
to the Agent a duly executed and completed Loan Request or application for a
Letter of Credit as the case may be (each such application shall be deemed to be
a representation by the Borrower that the conditions under this Section 6.2 for
the issuance of such additional Letter of Credit have been satisfied even if not
so stated in such application).

7. COVENANTS

          7.1 Affirmative Covenants.

          The Borrower and Hovnanian, jointly and severally, covenant and agree
that until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings, and interest thereon, expiration or termination of all
Letters of Credit, satisfaction of all of the Loan Parties’ other Obligations
(other than any contingent indemnity obligations not then due) under the Loan
Documents and termination of the Commitments, they shall, and shall cause the
other Loan Parties to, comply at all times with the following affirmative
covenants:

                    7.1.1 Preservation of Existence, Etc.

                    Each Loan Party shall maintain its legal existence as a
corporation, limited partnership or limited liability company and its license or
qualification and good standing in each jurisdiction in which its ownership or
lease of property or the nature of its business makes such license or
qualification

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necessary, except as otherwise expressly permitted in Section 7.2.4
[Liquidations, Mergers, Consolidations, Acquisitions] and except where failure
to do so could not reasonably be expected to constitute a Material Adverse
Change with respect to the Borrower or Hovnanian or with respect to the Loan
Parties taken as a whole.

                    7.1.2 Payment of Liabilities, Including Taxes, Etc.

                    Each Loan Party shall duly pay and discharge all material
liabilities to which it is subject or which are asserted against it, promptly as
and when the same shall become due and payable, including all material taxes,
assessments and governmental charges upon it or any of its properties, assets,
income or profits, prior to the date on which penalties attach thereto, except
to the extent that such liabilities, including taxes, assessments or charges,
are being contested in good faith and by appropriate and lawful proceedings
diligently conducted and for which such reserve or other appropriate provisions,
if any, as shall be required by GAAP shall have been made, or to the extent that
failure to discharge any such liabilities would not result in any additional
liability which would adversely affect to a material extent the financial
condition of the Borrower or Hovnanian or of the Loan Parties taken as a whole,
provided that the Loan Parties will pay all such liabilities forthwith upon the
commencement of proceedings to foreclose any material Lien which may have
attached as security therefor.

                    7.1.3 Maintenance of Insurance.

                    Each Loan Party shall insure its properties and assets
against loss or damage by fire and such other insurable hazards as such assets
are commonly insured (including fire, extended coverage, property damage,
workers’ compensation, public liability, flood and business interruption
insurance) and against other risks (including errors and omissions) in such
amounts as similar properties and assets are insured by prudent companies in
similar circumstances carrying on similar businesses, and with reputable and
financially sound insurers, including self-insurance to the extent customary.

                    7.1.4 Maintenance of Properties and Leases.

                    Each Loan Party shall maintain in good repair, working order
and condition (ordinary wear and tear excepted) in accordance with the general
practice of other businesses of similar character and size, all of those
properties necessary to its business, and from time to time, such Loan Party
will make or cause to be made all appropriate repairs, renewals or replacements
thereof.

                    7.1.5 Maintenance of Patents, Trademarks, Etc.

                    Each Loan Party shall maintain in full force and effect all
patents, trademarks, service marks, trade names, copyrights, licenses,
franchises, permits and other authorizations necessary for the ownership and
operation of its properties and business if the failure so to maintain the same
would constitute a Material Adverse Change.

                    7.1.6 Visitation Rights.

                    Each Loan Party shall permit any of the officers or
authorized employees or representatives of the Agent or (at the expense of such
Lender) any of the Lenders to visit and inspect any of its properties and to
examine and make excerpts from its books and records and discuss its business
affairs, finances and accounts with its officers, all in such detail and at such
times and as often as any of the Lenders may reasonably request, provided that
each Lender shall provide the Borrower and the Agent with reasonable notice
prior to any visit or inspection. In the event any Lender desires to conduct an
audit

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of any Loan Party, such Lender shall make a reasonable effort to conduct such
audit contemporaneously with any audit to be performed by the Agent.

                    7.1.7 Keeping of Records and Books of Account.

                    The Loan Parties shall maintain and keep proper books of
record and account which enable Hovnanian and its Subsidiaries to issue
financial statements in accordance with GAAP and as otherwise required by
applicable Laws of any Official Body having jurisdiction over Hovnanian or any
Subsidiary of Hovnanian, and in which full, true and correct entries shall be
made in all material respects of all its dealings and business and financial
affairs.

                    7.1.8 Plans and Benefit Arrangements.

                    The Loan Parties shall, and shall cause each member of the
ERISA Group that is a Subsidiary to, and shall use its reasonable best efforts
to cause each other member of the ERISA Group to, comply with ERISA, the
Internal Revenue Code and other applicable Laws applicable to Plans and, as to
the Borrower, Benefit Arrangements, except where such failure, alone or in
conjunction with any other failure, would not result in a Material Adverse
Change. Without limiting the generality of the foregoing, the Loan Parties shall
cause all of their Plans and shall use reasonable best efforts to cause all
Plans maintained by any member of the ERISA Group, to be funded in accordance
with the minimum funding requirements of ERISA and shall make, and cause each
Subsidiary to, and shall use its reasonable best efforts to cause each member of
the ERISA Group to make, in a timely manner, all contributions due to Plans and
Multiemployer Plans except where such failure, alone or in conjunction with any
other failure, would not result in a Material Adverse Change.

                    7.1.9 Compliance with Laws.

                    Each Loan Party shall comply with all applicable Laws,
including all Environmental Laws, in all respects, provided that it shall not be
deemed to be a violation of this Section 7.1.9 if any failure to comply with any
Law would not result in fines, penalties, remediation costs, other similar
liabilities or injunctive relief which in the aggregate would constitute a
Material Adverse Change.

                    7.1.10 Use of Proceeds.

                    The Loan Parties will use the Letters of Credit and the
proceeds of the Loans only for general corporate purposes and for working
capital for the Borrower, Hovnanian and the Restricted Subsidiaries.

                    7.1.11 Anti-Terrorism Laws.

                    The Loan Parties and their respective Affiliates and agents
shall not engage in or conspire to engage in any transaction that evades or
avoids, or has the purpose of evading or avoiding, or attempts to violate, any
of the prohibitions set forth in the Executive Order No. 13224, the USA Patriot
Act or any other Anti-Terrorism Law. The Borrower shall deliver to Lenders any
certification or other evidence reasonably requested from time to time by any
Lender in its reasonable discretion, confirming Borrower’s compliance with this
Section 7.1.11.

                    7.1.12 Excess Cash During Preference Period.

                    If, prior to the end of the Preference Period relating to
the Initial Mortgaged Collateral, the Loan Parties’ cash on hand exceeds
$50,000,000 at any time (including cash in any Cash Collateral

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Account), the Borrower shall within two (2) Business Days of each such time
cause all such excess cash (except to the extent already held in a Cash
Collateral Account) to be deposited into a Cash Collateral Account.

                    7.1.13 Post-Closing Collateral Matters.

                    (i) Delivery of Mortgage Information. As soon as reasonably
possible after the Closing Date, the Borrower shall provide to the Agent a
preliminary list of real property proposed to be included in the Secured
Borrowing Base (the “Proposed Initial Mortgaged Collateral”) specifying the
state and county for each parcel of real estate and the related legal
description thereof, satisfactory evidence of the book value thereof, details of
any PAPA affecting any such real estate, names of the owners of record thereof,
copies of any owner’s policies of title insurance relating thereto, and existing
surveys (to the extent requested by the Agent) with respect to the same.

                    (ii) Initial Mortgages - Execution and Delivery, Value. No
later than March 15, 2008 (which date may be extended by up to 30 days by the
Agent in its reasonable discretion so long as the Due Diligence Period is not
extended beyond July 31, 2008), the Borrower and Restricted Subsidiaries shall
execute in favor of the Agent for the benefit of the Lenders first priority
Mortgages on the Proposed Initial Mortgaged Collateral (subject only to Limited
Permitted Liens) sufficient to have an aggregate book value which, together with
the value of cash and cash equivalents in the Cash Collateral Accounts (subject
to Section 7.1.12(ii)), equals an amount that is no less than $1,188,000,000
(which Borrower represents and warrants is an amount equal to two (2) times the
Revolving Facility Usage under the Prior Credit Agreement as of February 28,
2008).

                    (iii) Initial Mortgages - Completion of Due Diligence. On or
prior to the last day of the Due Diligence Period, the Loan Parties shall have
completed all such actions and satisfied all requirements necessary to enable
sufficient Proposed Initial Mortgaged Collateral to qualify as Qualified Real
Property (all such actions and all such requirements shall be referred to herein
as “Due Diligence Tasks”) such that the Adjusted Appraised Value of such
qualifying Proposed Initial Mortgaged Collateral in the Secured Borrowing Base
(together with any additional initial Mortgaged Collateral as may be necessary)
plus the aggregate amount of cash and cash equivalents not in excess of
$300,000,000 held in the Cash Collateral Accounts shall be not less than 1.55
times the Revolving Facility Usage as of April 30, 2008. All such qualifying
Proposed Initial Mortgaged Collateral and any other necessary initial Mortgaged
Collateral (as determined above) shall meet the requirements of Qualified Real
Property and shall be subject to a first priority Lien (subject only to Limited
Permitted Liens) in favor of the Agent for the benefit of the Lenders pursuant
to a Mortgage and shall be included in the Secured Borrowing Base (the “Initial
Mortgaged Collateral”).

                    (iv) Additional Mortgaged Collateral, Interim Additional
Mortgaged Collateral, Due Diligence. In order for additional real property
(other than the Initial Mortgaged Collateral) of any Loan Party to be eligible
for inclusion in the Secured Borrowing Base, it must be either (a) real property
with respect to which all Due Diligence Tasks shall have been satisfactorily
completed, and it has become Qualified Real Property, within 90 days (subject to
extension in the reasonable discretion of Agent so long as Due Diligence Tasks
with respect thereto are being diligently pursued) after a mortgage thereon has
been provided to Agent for the benefit of the Lenders (such real property, upon
becoming Qualified Real Property, the “Additional Mortgaged Collateral” and
prior to becoming Qualified Real Property, the “Interim Additional Collateral”)
or (b) Interim Additional Collateral upon which a Mortgage has been given to
Agent for the benefit of the Lenders, and such Interim Additional Collateral
shall remain eligible for inclusion in the Secured Borrowing Base until the
earlier of the expiration of such 90 day period (subject to extension in the
reasonable discretion of Agent so long as Due Diligence Tasks with respect
thereto are being diligently pursued) or such real property has become
Additional Mortgaged Collateral

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(until such time, such real property is referred to as the “Interim Additional
Mortgaged Collateral”). The value of Interim Additional Mortgaged Collateral for
the purposes of the Secured Borrowing Base shall be an amount equal to one-half
of the book value of such real property as shown on the most recent balance
sheet of Hovnanian or the appropriate Loan Party (the “Interim Value”).

                    (v) Cash Collateral Accounts, Ownership Certificates. As
soon as reasonably practicable after the Closing Date and in order to
accommodate the release of Collateral and other provisions hereof relating to
the Cash Collateral Accounts, Borrower shall have: (i) opened one or more Cash
Collateral Accounts and provided to Agent for the benefit of the Lenders such
control agreements with respect thereto as are reasonably required by Agent, and
(ii) provided to Agent for the benefit of the Lenders possession of all
certificated shares of stock and other certificated equity interests in the
Restricted Subsidiaries held by any Loan Party, together with such assignments
or stock powers executed in blank by the owner thereof as Agent shall reasonably
request.

                    (vi) Collateral Agent. The Agent may at any time and from
time to time appoint a Collateral Agent to maintain and administer any of the
Collateral, maintain books and records regarding any Collateral, release
Collateral, and assist in any aspect arising in connection with the Collateral
as Agent may desire; and, the Lenders acknowledge and agree that such Collateral
Agent shall be an agent of the Lenders and of Agent and the Lenders agree that
Collateral Agent shall be subject to the obligations, rights and benefits of
Article 9 hereof to the same extent as Agent. The Agent may appoint itself, an
affiliate (including Midland Loan Services, Inc.), or third party as the
Collateral Agent. All reasonable costs of the Collateral Agent shall be born by
the Borrower.

          7.2 Negative Covenants.

                    The Borrower and Hovnanian, jointly and severally, covenant
and agree that until payment in full of the Loans, Reimbursement Obligations and
Letter of Credit Borrowings and interest thereon, expiration or termination of
all Letters of Credit, satisfaction of all of the Loan Parties’ other
Obligations hereunder (other than any contingent indemnity obligations not then
due) and termination of the Commitments, they shall, and shall cause the other
Loan Parties to, comply with the following negative covenants:

                    7.2.1 Indebtedness.

                    Each of the Loan Parties shall not at any time create,
incur, assume or suffer to exist any secured indebtedness, except Indebtedness
secured by Permitted Liens.

                    7.2.2 Liens.

                    Each of the Loan Parties shall not at any time create,
incur, assume or suffer to exist any Lien on any of its property or assets,
tangible or intangible, now owned or hereafter acquired, or agree or become
liable to do so, except Permitted Liens; provided, however, that the Cash
Collateral Accounts shall be subject to no Liens other than those of the Agent
for the benefit of the Lenders.

                    7.2.3 Loans and Investments.

                    Each of the Loan Parties shall not, at any time, make or
suffer to remain outstanding any Investment except Permitted Investments and, to
the extent permitted by Section 7.2.6 [Restricted Payments; Restricted
Investments; Investments in Related Businesses], Restricted Investments and
Investments in Related Businesses.

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                    7.2.4 Liquidations, Mergers, Consolidations, Acquisitions.

                    Each of the Loan Parties shall not dissolve, liquidate or
wind-up its affairs, or become a party to any merger or consolidation, or
acquire by purchase, lease or otherwise all or substantially all of the assets
or capital stock of any other Person, provided that

                    (1) any Loan Party other than the Borrower or Hovnanian may
consolidate or merge into another Loan Party (or any Person that concurrently
becomes a Loan Party), and

                    (2) any Loan Party may consolidate or merge with a Person
who is not a Loan Party if the common stockholders of Hovnanian prior to such
transaction maintain at least 50% of the voting control (direct or indirect) of
the combined entity after consummation of the transaction, and

                    (3) any Loan Party may acquire, whether by purchase or by
merger, (A) all or substantially all of the ownership interests of another
Person or (B) all or substantially all of assets of another Person or of a
business or division of another Person (each, a “Permitted Acquisition”),
provided that each of the following requirements is met:

                              (i) if the Loan Parties are acquiring the
ownership interests in such Person, and such Person is, or concurrently will be,
designated a Restricted Subsidiary, such Person shall execute a Guarantor
Joinder and join this Agreement as a Guarantor pursuant to Section 10.18
[Joinder of Guarantors] and the Borrower shall have otherwise complied with
Section 2.11.4 [Designation of Restricted Subsidiary] on or before the date of
such Permitted Acquisition;

                               (ii) if such Person’s shares are registered as
“public” shares under applicable law, the board of directors or other equivalent
governing body of such Person shall have approved such Permitted Acquisition;

                               (iii) the business acquired, or the business
conducted by the Person whose ownership interests are being acquired, as
applicable, shall comply with Section 7.2.8 [Continuation of or Change in
Business]; and

                               (iv) no Potential Default or Event of Default
shall exist immediately prior to and after giving effect to such Permitted
Acquisition.

                    (4) the Loan Parties may make, whether by purchase or merger
or otherwise, Permitted Investments and, to the extent permitted by Section
7.2.6 [Restricted Investments; Restricted Payments; Investments in Related
Businesses], Restricted Investments, Restricted Payments and Investments in
Related Businesses;

                    (5) the Loan Parties may liquidate or wind-up Restricted
Subsidiaries of Hovnanian which are not individually material to Hovnanian, the
Borrower or to the Loan Parties taken as a whole; provided that the Loan Parties
shall satisfy the requirements of Section 2.11 [Designation of Subsidiaries and
Release of Guarantors], to the extent applicable;

                    (6) the Loan Parties may effectuate any sale permitted by
Section 7.2.5 as a merger or consolidation; and

                    (7) for the avoidance of doubt, any Loan Party may effect or
allow the liquidation or winding-up of any Non-Restricted Person.

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                    7.2.5 Dispositions of Assets or Subsidiaries.

                    Each of the Loan Parties shall not sell, convey, assign,
lease, abandon or otherwise transfer or dispose of, voluntarily or
involuntarily, any of its properties or assets, tangible or intangible
(including sale, assignment, discount or other disposition of accounts, contract
rights, chattel paper, equipment or general intangibles with or without recourse
or of capital stock, shares of beneficial interest, partnership interests or
limited liability company interests of a Subsidiary of such Loan Party, but
excluding Investments in Non-Restricted Persons), except:

                               (i) any sale, transfer or lease of assets in the
ordinary course of business which are no longer necessary or required in the
conduct of such Loan Party’s business;

                               (ii) any sale, transfer or lease of assets to a
Loan Party;

                               (iii) any sale, transfer or lease of assets in
the ordinary course of business which are replaced by substitute assets acquired
not in violation of this Agreement;

                               (iv) any sale, transfer or lease of assets by a
Non-Restricted Person; or

                               (v) any other sale, transfer or lease of assets
not included in clauses (i) through (iv) above provided that (1) after giving
effect to such sale the Loan Parties are in compliance with the covenants under
this agreement (including the financial covenants in Sections 7.2.11 [Minimum
CTNW], 7.2.12 [Leverage Ratio], 7.2.13 [Fixed Charge Coverage Ratio Triggers],
and 7.2.14 [Inventory Limits]) and no Potential Default or Event of Default, and
(2) any such sale does not constitute all or substantially all of the assets of
the Loan Parties taken as a whole.

                    Notwithstanding the foregoing, any sale, conveyance,
assignment, lease, transfer, or other disposition, voluntarily or involuntarily,
of any of the Mortgaged Collateral shall also be subject to the terms of Section
7.2.10(g).

                    7.2.6 Restricted Payments; Restricted Investments;
Investments in Related Businesses.

                              7.2.6.1 The Loan Parties shall not pay or make
Restricted Payments, Restricted Investments or Investments by Loan Parties in
other Loan Parties engaged in Related Businesses (“Investments in Related
Businesses”) from and after January 31, 2008, which exceed in the aggregate the
sum of:

                               (i) $400,000,000;

                               (ii) 50% of net income of Hovnanian (calculated
and consolidated in accordance with GAAP) for all fiscal quarters commencing on
February 1, 2008, and thereafter; and

                               (iii) 50% of the proceeds (less costs of
issuance) of any issuance or sale of equity, including Qualified Preferred
Equity, of Hovnanian to any Person other than a Loan Party during all fiscal
quarters commencing on February 1, 2008, and thereafter (but excluding the
issuance or sale of equity, including Qualified Preferred Equity, to the extent
such proceeds thereof are utilized in the refinancing of Subordinated Debt
(consisting of the repayment of Subordinated Debt with the net proceeds of such
issuance or sale of equity, including Qualified Preferred Equity, of Hovnanian
to any Person in substantially the same amount within 60 days of such
repayment)).

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                              7.2.6.2 Each of the Loan Parties shall not enter
into or carry out any transaction with any Affiliate (including purchasing
property or services from or selling property or services to any Affiliate of
any Loan Party or other Person but excluding transactions between Loan Parties)
unless such transaction is not otherwise prohibited by this Agreement, is
entered into in the ordinary course of business upon fair and reasonable
arm’s-length terms and is in accordance with all applicable Law. Without
limiting the foregoing, the aggregate amount of all Indebtedness for owed or
borrowed money owing to any Loan Party by any officer or director, or relative
thereof, shall not exceed $1,000,000 in the aggregate owing at any one time and
all such Indebtedness shall bear interest at a rate not less than the coupon
rate on six month U.S. Treasury bills as of the date such Indebtedness is
incurred.

                              7.2.6.3 Notwithstanding any other provision
hereof:

                               (i) The Loan Parties shall not make at any time
any Capital Stock Retirement payment or any payment of Dividends other than to
Restricted Subsidiaries, Borrower, or Hovnanian; and

                               (ii) The Loan Parties shall not pay or make any
Restricted Payment in respect of Subordinated Debt if an Event of Default or
Potential Default exists at the time of such payment or would exist after giving
effect thereto.

                    7.2.7 Subsidiaries, Partnerships and Joint Ventures.

                    Each of the Loan Parties shall not own or create directly or
indirectly any Subsidiaries other than (i) any Subsidiary which has executed the
Guaranty Agreement as Guarantor on the Closing Date, (ii) any Subsidiary formed
or acquired after the Closing Date which joins the Guaranty Agreement as a
Guarantor pursuant to Section 10.18 [Joinder of Guarantors] or (iii) any
Non-Restricted Person.

                    7.2.8 Continuation of or Change in Business.

                    Each of the Loan Parties shall not engage in any business
other than the homebuilding business or Related Businesses.

                    7.2.9 Plans and Benefit Arrangements.

                    Each of the Loan Parties shall not engage in a Prohibited
Transaction with any Plan, Benefit Arrangement or Multiemployer Plan which,
alone or in conjunction with any other circumstances or set of circumstances,
results in liability under ERISA, except where the liability that could
reasonably be expected to result therefrom would not result in a Material
Adverse Change.

                    7.2.10 Borrowing Base.

                    (a) Limitation, Maintenance of Unsecured Borrowing Base.
Until the end of the Due Diligence Period, the Loan Parties shall not permit
Senior Homebuilding Indebtedness minus the face amount of outstanding letters of
credit (whether “Letters of Credit” or not) in respect of which a Loan Party is
obligated and which is issued to guaranty or assure the installation of site
improvements on (or appurtenant to) land owned by a Loan Party to exceed the
Unsecured Borrowing Base at any time. Pursuant thereto, the Borrower shall make
(or cause to be made), on the Business Day following the date on which any such
excess is calculated, payments of principal of the Revolving Credit Loans (and,
once all Revolving Credit Loans have been paid, pledges of deposits of L/C
Collateral, and then payments of

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principal of the other Senior Homebuilding Indebtedness) sufficient to reduce to
zero ($0) on such date any such excess.

                    (b) Limitation, Maintenance of Secured Borrowing Base. After
the end of the Due Diligence Period, the Loan Parties shall not permit the
Revolving Facility Usage to exceed the Secured Borrowing Base at any time. At
any time that the Revolving Facility Usage exceeds the Secured Borrowing Base,
Borrower shall within 15 days do any one or more of the following in order to
reduce to zero ($0) any such excess: (i) add cash or cash equivalents to any of
the Cash Collateral Accounts, (ii) reduce the principal outstanding under the
Revolving Credit Loans, or (iii) deliver Interim Additional Mortgaged Collateral
or Additional Mortgaged Collateral. The Agent shall retain the right in its
reasonable discretion to extend the date for providing Additional Mortgaged
Collateral and Interim Additional Mortgaged Collateral by up to 15 additional
days.

                    (c) Minimum Borrowing Base. Notwithstanding any other
provision hereof: (i) the Secured Borrowing Base shall not at any time after the
end of the Due Diligence Period through January 31, 2009, be less than
$650,000,000; and, (ii) the Secured Borrowing Base shall not at any time after
January 31, 2009, through January 31, 2010, be less than $300,000,000.

                    (d) Rejection of Parcels. All Mortgaged Collateral shall at
all times be and remain subject to the criteria applicable to Qualified Real
Property, and the Agent shall retain the right to (i) reject individual parcels
of real estate from inclusion in the Secured Borrowing Base based upon a
reasonable determination that such parcel is not appropriate for inclusion
therein after, and based on, due diligence with respect thereto, or (ii) remove
Mortgaged Collateral from the Secured Borrowing Base based on a reasonable
determination that such parcel of Mortgaged Property has suffered a material
casualty or become subject to material and adverse condemnation, rezoning,
revocation of permits, impairment of development rights, environmental
conditions, taxes, levy, seizure, attachment, forfeiture, imposition, or a like
material and adverse matter to the effect, in any case, that the value of such
parcel is significantly impaired or there exists, in the reasonable judgment of
Agent, potential material liability to the holder of a mortgage thereon. Upon
the rejection or removal of a parcel of real estate by the Agent from inclusion
in the Borrowing Base, such parcel shall be accorded no value in the Borrowing
Base and the Lenders hereby consent and authorize the Agent to execute and
deliver to Borrower or otherwise record a release of such parcel from any Lien
thereon held by the Agent for the benefit of the Lenders.

                    (e) Reappraisal Rights. The Agent shall have the right to
and, upon the written request of the Required Lenders, the Agent shall
reappraise any, or all, of the Mortgaged Collateral at any time and from time to
time, provided that (subject to the other terms hereof) the reappraisal of each
parcel of Mortgaged Collateral may occur at the Borrower’s cost and expense only
once in each twelve (12) month period commencing one year after the date of the
initial appraisal of such Mortgaged Collateral. The Borrower shall have the
right to request reappraisals of any or all of the Mortgaged Collateral at any
time at the Borrower’s cost and expense. Upon the occurrence and continuation of
an Event of Default, the Agent shall have the right to and, upon the written
request of the Required Lenders, the Agent shall require reappraisal of any, or
all, of the Mortgaged Collateral at any time and from time to time in each case
at the cost and expense of the Borrower. With respect to any parcel of Mortgaged
Collateral that has suffered a condition described in clause (d)(ii) above, the
Agent shall have the right to and, upon the written request of the Required
Lenders, the Agent shall require the reappraisal of such parcel at the cost and
expense of Borrower.

                    (f) Borrowing Base Surplus, Releases. In the event that the
Secured Borrowing Base exceeds the Revolving Facility Usage at any time after
the end of the Due Diligence Period, Borrower may, upon not less than fifteen
(15) days’ notice, request in writing that the Agent release the Lien it holds
for the Lenders on such portion of the Mortgaged Collateral that has an
aggregate Adjusted

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Appraised Value no greater than such excess. So long as there exists no
Potential Default or continuing Event of Default and no Event of Default or
Potential Default would result after giving effect to such requested release,
Agent on behalf of the Lenders shall provide a release of its Liens on such
portion of the Mortgaged Collateral (including any related personal property) in
recordable form within fifteen (15) days of receipt of such notice to the extent
that and so long as the Adjusted Appraised Value of the Mortgaged Collateral
being released does not exceed ten percent (10%) of the Secured Borrowing Base,
and either (1) the Secured Borrowing Base, as reasonably demonstrated by
Borrower to Agent, shall equal at least 120% of the Revolving Facility Usage
after giving effect to such proposed release, or (2) the Secured Borrowing Base,
after giving effect to such proposed release, shall equal at least 105% of the
Secured Borrowing Base immediately prior to such release, as reasonably
demonstrated by Borrower to Agent, after taking into account additional
Collateral in the form of a deposit in a Cash Collateral Account or Additional
Mortgaged Collateral or Interim Additional Mortgaged Collateral which the
Borrower substitutes in the Secured Borrowing Base in place of the Mortgaged
Collateral that is proposed to be released. In the event that, after giving
effect to such proposed release, neither of the conditions set forth in clause
(1) or (2) above are satisfied, then no release shall be provided unless (i)
Agent has received at Borrower’s cost and expense Acceptable Appraisals dated
within two (2) months of the proposed date of the release with respect to all
Mortgaged Collateral that is to remain in the Secured Borrowing Base after
giving effect to such proposed release and (ii) based upon the results of such
Acceptable Appraisals, the Revolving Facility Usage shall not exceed the Secured
Borrowing Base after giving effect to the proposed release and (iii) there
exists no Potential Default or continuing Event of Default and no Event of
Default or Potential Default would result after giving effect to such requested
release. Each of the Lenders hereby consents to the release of Collateral as set
forth above without the necessity of any further action or consent on its part.

                    (g) Sales of Mortgaged Collateral, Releases. Notwithstanding
any other provision hereof, after the end of the Due Diligence Period, none of
the Loan Parties shall sell, or otherwise transfer any Mortgaged Collateral or
any portion thereof unless:

                    (i) the Borrower from time to time notifies Agent of a sale
or transfer of such Mortgaged Collateral or portion thereof, requests in writing
that the Agent release the Lien it holds for the Lenders on such Mortgaged
Collateral or any portion thereof for the purpose of accommodating the customary
settlement of home sales or sales of home sites or other real estate to a buyer
in the ordinary course of the business of the Loan Parties or in order to
accommodate other sales or transfers of real estate parcels which are otherwise
permitted hereunder, including bulk sales of real estate parcels or transfers of
real estate parcels to Non-Restricted Subsidiaries otherwise permitted
hereunder; provided that such notice is accompanied by a certification by the
Borrower to the Lenders and Agent that (A) at the time of such notice and after
giving effect to such sale or transfer and the use of proceeds thereof, there is
and shall exist no Event of Default or Potential Default, and (B) the targeted
closing date for such sale or transfer is scheduled for or otherwise expected to
occur within forty-five (45) days of the date on which the release is requested;
and

                    (ii) the net proceeds of such sale are transferred to the
Agent by the settlement agent at the closing of such sale or other transfer for
immediate deposit into a Cash Collateral Account, and then applied as instructed
by the Borrower (with a copy of such instructions to be provided substantially
simultaneously by Borrower to or as directed by Agent) to (1) repay outstanding
Revolving Credit Loans, (2) be retained in the Cash Collateral Account as cash
collateral for the Obligations, or (3) be transferred to such other account of
any Person as the Borrower shall so instruct; provided, however, that if the
Revolving Facility Usage exceeds the Secured Borrowing Base at such time or
after giving effect to such sale or transfer, all proceeds shall be held in a
Cash Collateral Account and not released to the Borrower or any other Loan Party
until such time as the Revolving Facility Usage is equal to or less than the
Secured Borrowing Base and, in the event that the Revolving Facility Usage still
exceeds the Secured

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Borrowing Base Borrower after the deposit of such proceeds to a Cash Collateral
Account, then Borrower shall further comply with clause (b) above.

To the extent that Borrower has complied with clause (i) above with respect to a
sale or other transfer of Mortgaged Collateral or a portion thereof, then the
Agent shall provide in escrow to the settlement agent with respect to such sale
or transfer a release of its Liens on such Mortgaged Collateral or such portion
thereof (including any related personal property) in recordable form within ten
(10) days of receipt of notice from the Borrower pursuant to clause (i) above
with instructions to the settlement agent that such release may be removed from
escrow upon the satisfaction of the transfer of the net proceeds of such sale to
Agent as set forth in clause (ii) above. Upon the release of the Agent’s Liens
on any portion of the Mortgaged Collateral, such released portion of the
Mortgaged Collateral shall no longer be included in the calculation of the
Secured Borrowing Base or reflected in the next Borrowing Base Certificate to be
delivered by the Borrower. Each of the Lenders hereby consents to the release of
Collateral as set forth above without the necessity of any further action or
consent on its part.

                    (h) Releases. So long as there exists no Potential Default
or continuing Event of Default and no Event of Default or Potential Default
would result after giving effect to such release, Agent on behalf of the Lenders
shall provide a release in recordable form of their Liens on any real property
of any of the Loan Parties on which the Loan Parties are not able to
satisfactorily complete the Due Diligence Tasks or which real property does not
otherwise meet the requirements to become Qualified Real Property or which real
property is rejected for other reasons by the Agent for inclusion in the
Mortgaged Collateral, including any parcels in the Proposed Initial Mortgaged
Collateral that are not included in the Initial Mortgaged Collateral; and, in
connection with any release given by Agent in connection with any of the
foregoing or in connection with any other provision of this Section 7.2.10, each
Lender hereby consents thereto without the necessity of any further action on
the part of Agent or any Loan Party, and the Agent shall execute and deliver to
Borrower, Hovnanian or such other Loan Party all documents that Borrower,
Hovnanian or such other Loan Party shall reasonably request to evidence such
release. The Loan Parties may withdraw cash and cash equivalents from the Cash
Collateral Accounts and close Cash Collateral Accounts, at any time and from
time to time, so long as there exists no Potential Default or continuing Event
of Default and no Event of Default or Potential Default would result after
giving effect to such withdrawal or closure; and, all such cash and cash
equivalents withdrawn and all such Cash Collateral Accounts closed in compliance
therewith are hereby released without any further action of Agent or any of the
Lenders.

                    7.2.11 Minimum CTNW.

                              (i) The Loan Parties shall not permit Consolidated
Tangible Net Worth as of the last day of any fiscal quarter-end (commencing with
the fiscal quarter ending January, 2008) and thereafter prior to the end of the
Due Diligence Period to be less than $650,000,000.

                              (ii) At any time after the end of the Due
Diligence Period, the Loan Parties shall either not permit Consolidated Tangible
Net Worth as of the last day of any fiscal quarter to be less than (A)
$650,000,000 plus the sum of (1) 50% of Hovnanian’s consolidated net income
(calculated and consolidated in accordance with GAAP and not accounting for the
reversal of any Deferred Tax Valuation Allowance) for each fiscal quarter
commencing after the Due Diligence Period and thereafter in which net income was
earned (as opposed to a net loss), (2) 100% of the amount of any reversal of any
Deferred Tax Valuation Allowance made in any fiscal quarter commencing after the
Due Diligence Period, and (3) 75% of the proceeds (less costs of issuance) of
any issuance or sale of equity of Hovnanian (including Qualified Preferred
Equity) to any Person other than a Loan Party during each fiscal quarter
commencing after the Due Diligence Period and thereafter (such sum, the
“Additional Minimum Equity Amount”), or (B) $400,000,000, plus the Additional
Minimum Equity Amount at such

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time; provided that, in the event this clause (B) is applicable as of the last
day of any fiscal quarter, (1) the Alternative Secured Borrowing Base shall be
in effect until the last day of the succeeding fiscal quarter, (2) no Loan Party
shall make any prepayment of principal of any Subordinated Indebtedness or any
other unsecured Indebtedness of any Loan Party through the last day of the
succeeding fiscal quarter, and (3) the Revolving Credit Commitments shall be
permanently reduced to $600,000,000 unless the Revolving Credit Commitments have
been reduced pursuant to Section 7.2.13(ii) in which event the Revolving Credit
Commitments shall be permanently reduced to $300,000,000.

                    7.2.12 Leverage Ratio.

                              (i) At any time during the Due Diligence Period,
the Loan Parties shall not permit the Leverage Ratio as of the last day of any
fiscal quarter, commencing with the last day of the fiscal quarter ending on
January 31, 2008, to exceed 5.00 to 1.0,

                              (ii) At any time after the Due Diligence Period
has ended, if the Leverage Ratio as of the last day of any fiscal quarter is
greater than 5.00 to 1.0, (i) the Alternative Secured Borrowing Base shall be in
effect until the last day of the succeeding fiscal quarter, (ii) no Loan Party
shall make any prepayment of principal of any Subordinated Indebtedness or any
other unsecured Indebtedness of any Loan Party during the next fiscal quarter
and (iii) the Revolving Credit Commitments shall be permanently reduced to
$600,000,000 unless the Revolving Credit Commitments have been reduced pursuant
to Section 7.2.13(ii) in which event the Revolving Credit Commitments shall be
permanently reduced to $300,000,000.

                    7.2.13 Fixed Charge Coverage Ratio Triggers.

                              (i) If the Fixed Charge Coverage Ratio as of the
last day of any fiscal quarter ending on or after July, 2008, is less than 1.50
to 1.0, then the Operating Cash Flow Coverage Ratio as of such date shall be in
excess of 1.50 to 1.0 unless Liquidity as of such date is in excess of
$200,000,000.

                              (ii) If the Fixed Charge Coverage Ratio as of the
last day of any fiscal quarter ending October, 2009, or thereafter is less than
1.25 to 1.0, then the Revolving Credit Commitments effective as of such date
shall be permanently reduced by 50%.

                    7.2.14 Inventory Limits.

                    (a) The Loan Parties shall not permit:

                              (i) The Dollar value of Unentitled Land to exceed
the lesser of twenty percent (20%) of Consolidated Tangible Net Worth or
$200,000,000, as calculated as of the end of each fiscal quarter; or

                              (ii) The Dollar value of Finished Lots and Land
under Development plus Unentitled Land to exceed 1.25 times the sum of (A)
Consolidated Tangible Net Worth plus (B) $200,000,000, as calculated as of the
end of each fiscal quarter.

                    (b) If as of the last day of any fiscal quarter, the number
of Unsold Dwelling Units exceeds 50% of the aggregate number of Sold Dwelling
Units and Unsold Dwelling Units, the Loan Parties shall not begin construction
of any new Unsold Dwelling Units commencing on the date the Compliance
Certificate is due with respect to such fiscal quarter in accordance with
Section 7.3.3.1 until the number of Unsold Dwelling Units is less than 50% of
the aggregate number of Sold Dwelling Units

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and Unsold Dwelling Units as reasonably determined by Borrower in a accordance
with a revised calculation provided in writing by Borrower to Agent.

                    7.2.15 Fiscal Year.

                    The Loan Parties shall not change their fiscal year from the
twelve-month period ending October 31.

                    7.2.16 Changes in Subordinated Debt Documents, No Payment,
No Collateral for Senior Notes or Subordinated Debt.

                    The Loan Parties shall not amend or modify any provisions of
the documents relating to the Subordinated Debt without providing at least ten
(10) calendar days’ prior written notice to the Agent, and, if the same would
adversely affect the interests of the Agent and the Lenders in any material
respect, obtaining the prior written consent of the Required Lenders. No Loan
Party shall directly or indirectly make any payment on the Subordinated Debt
which would violate the provisions of any applicable subordination agreement or
provision. Neither the Senior Notes nor the Subordinated Debt shall become
secured.

          7.3 Reporting Requirements.

          The Borrower and Hovnanian, jointly and severally, covenant and agree
that until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings and interest thereon, expiration or termination of all Letters
of Credit, satisfaction of all of the Loan Parties’ other Obligations hereunder
and under the other Loan Documents (other than any contingent indemnity
obligations not then due) and termination of the Commitments, they shall, and
shall cause the other Loan Parties to, to the extent applicable, furnish or
cause to be furnished to the Agent:

                    7.3.1 Quarterly Financial Statements.

                    As soon as available and in any event within fifty-five (55)
calendar days after the end of each of the first three fiscal quarters in each
fiscal year of Hovnanian, financial statements of Hovnanian, consisting of a
consolidated balance sheet as of the end of such fiscal quarter and related
consolidated statements of income, stockholders’ equity and cash flows for the
fiscal quarter then ended and the fiscal year through that date, all in
reasonable detail and certified (subject to normal year-end audit adjustments)
by the Chief Executive Officer, President, Treasurer or Chief Financial Officer
or principal accounting officer of Hovnanian as having been prepared in
accordance with GAAP, consistently applied, and setting forth in comparative
form the respective financial statements for the corresponding date and period
in the previous fiscal year. The Loan Parties will be deemed to have complied
with the delivery requirements of this Section 7.3.1 if within fifty-five (55)
days after the end of their fiscal quarter, the Borrower delivers to the Agent a
copy of Hovnanian’s Form 10-Q as filed with the SEC and the financial statements
contained therein meets the requirements described in this Section 7.3.1.

                    7.3.2 Annual Financial Statements.

                    As soon as available and in any event within ninety (90)
days after the end of each fiscal year of Hovnanian, financial statements of
Hovnanian consisting of a consolidated balance sheet as of the end of such
fiscal year, and related consolidated statements of income, stockholders’ equity
and cash flows for the fiscal year then ended, all in reasonable detail and
setting forth in comparative form the financial statements as of the end of and
for the preceding fiscal year, and certified by independent certified public
accountants of nationally recognized standing reasonably satisfactory to the
Agent. The

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certificate or report of accountants shall be free of qualifications (other than
any consistency qualification that may result from a change in the method used
to prepare the financial statements as to which such accountants concur) and
shall not indicate the occurrence or existence of any event, condition or
contingency which would materially impair the prospect of payment or performance
of any covenant, agreement or duty of any Loan Party under any of the Loan
Documents or cause or constitute an Event of Default. The Loan Parties will be
deemed to have complied with the delivery requirements of this Section 7.3.2 if
within ninety (90) days after the end of Hovnanian’s fiscal year, the Borrower
delivers to the Agent a copy of Hovnanian’s Annual Report and Form 10-K as filed
with the SEC and the financial statements and separately delivers the
above-referenced certification of public accountants.

                    7.3.3 Certificates of the Borrower.

                              7.3.3.1 Compliance Certificate. Concurrently with
the financial statements of Hovnanian furnished to the Agent and to the Lenders
pursuant to Sections 7.3.1 [Quarterly Financial Statements] and 7.3.2 [Annual
Financial Statements]:

                              (a) a certificate of the Borrower signed by the
Chief Executive Officer, President, Treasurer or Chief Financial Officer or
principal accounting officer of the Borrower, substantially in the form of
Exhibit 7.3.3.1 (each a “Compliance Certificate”), to the effect that, except as
described pursuant to Section 7.3.4 [Notice of Default], (i) the representations
and warranties of the Loan Parties contained in Section 5.1 [Representations and
Warranties] and in the other Loan Documents are true and correct in all material
respects on and as of the date of such certificate with the same effect as
though such representations and warranties had been made on and as of such date
(except representations and warranties which expressly relate solely to an
earlier date or time), (ii) no Event of Default or Potential Default exists and
is continuing on the date of such certificate and (iii) containing calculations
in sufficient detail to demonstrate compliance as of the date of such financial
statements with all financial covenants contained in Section 7.2 [Negative
Covenants].

                              (b) summary consolidated financial statements for
each of (i) the Non-Restricted Persons as a group and (ii) the Borrower,
Hovnanian and the Restricted Subsidiaries as a group; provided that the
statements provided in footnote 20 entitled “Financial Information of Subsidiary
Issuer and Subsidiary” of the Borrower’s consolidated financial statements in
Form 10-K and in footnote 16 in Form 10-Q shall be deemed to satisfy this
requirement;

                              (c) summary financial statements for each Joint
Venture in which any Loan Party has a Subsidiary Investment greater than an
amount equal to 4% of Adjusted Tangible Net Worth as of the last day of the
previous fiscal quarter of Hovnanian; and

                              (d) to the extent not previously disclosed in
writing to the Agent, a report of any changes to Schedule 1.1(C) including
changes arising under Section 2.11 [Designation of Subsidiaries and Release of
Guarantors].

                              7.3.3.2 Borrowing Base Certificate, Inventory
Updates.

                              (a) As soon as available, but not later than
fifty-five (55) days after the end of each month, a Borrowing Base Certificate
as of the end of such month, appropriately completed, executed and delivered by
an Authorized Officer, together with a certificate of the Borrower signed by the
Chief Executive Officer, President, Treasurer or Chief Financial Officer or
principal accounting officer of the Borrower, substantially in the form of
Exhibit 7.3.3.2(A), reflecting the Unsecured Borrowing Base, or Exhibit
7.3.3.2(B), reflecting the Secured Borrowing Base, as applicable, to the effect
that, except as described pursuant to Section 7.3.4 [Notice of Default], no
Event of Default or Potential Default exists

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and is continuing on the date of such Borrowing Base Certificate; provided,
however, the Borrowing Base Certificate delivered with respect to the month of
October, in any year, may be in draft form, subject to change as a result of the
year-end audit, but in no event shall be executed and delivered in final form
later than ninety (90) days after the end of such fiscal year.

                              (b) As soon as available and in any event within
thirty (30) calendar days after the end of each month occurring after the Due
Diligence Period has ended, a draft of the Borrowing Base Certificate reflecting
preliminary calculations of the prior month’s Secured Borrowing Base. Such draft
Borrowing Base Certificate shall be finalized within 55 days of such month-end
and reflected in the Borrowing Base Certificate required pursuant to clause (a)
above.

                              (c) As soon as available and in any event within
twenty (20) calendar days after the end of each month, a report setting forth
for such month actual new home sales, closings, cancellations, and backlog for
Hovnanian on a consolidated basis.

                    7.3.4 Notice of Default.

                    Promptly after any officer of any Loan Party has learned of
the occurrence of an Event of Default or Potential Default, a certificate signed
by the Chief Executive Officer, President or Chief Financial Officer or
principal accounting officer of such Loan Party setting forth the details of
such Event of Default or Potential Default and the action which such Loan Party
proposes to take with respect thereto.

                    7.3.5 Notice of Litigation.

                    Promptly after the commencement thereof, notice of all
actions, suits, proceedings or investigations before or by any Official Body or
any other Person against any Loan Party that involve a claim or series of claims
in excess of $10,000,000 which is not covered by insurance or which could
reasonably be expected to constitute a Material Adverse Change.

                    7.3.6 Notice of Change in Debt Rating.

                    Within two (2) Business Days after any Qualified Rating
Agency announces a change in Hovnanian’s Debt Rating, notice of such change.
Hovnanian will deliver together with such notice a copy of any written
notification which Hovnanian received from the applicable rating agency
regarding such change of Debt Rating.

                    7.3.7 Budgets, Forecasts, Other Reports and Information.

                    Promptly upon their becoming available to any Loan Party:

                              (i) any reports, notices or proxy statements
generally distributed by Hovnanian to its stockholders,

                              (ii) regular or periodic reports, including Forms
10-K, 10-Q and 8-K, registration statements and prospectuses, filed by Hovnanian
with the SEC, and

                              (iii) such other reports and information as the
Agent may from time to time reasonably request. The Loan Parties shall also
notify the Agent promptly of the enactment or adoption of any Law which could
reasonably be expected to constitute a Material Adverse Change.

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                    7.3.8 Notices Regarding Plans and Benefit Arrangements.

                              7.3.8.1 Certain Events. Promptly after learning of
the occurrence thereof, notice (including the nature of the event and, when
known, any action taken or threatened by the Internal Revenue Service or the
PBGC with respect thereto) of any of the following events, or series of such
events, if, individually or in the aggregate, any liabilities or penalties
resulting from such event(s) could reasonably be expected to result in a
Material Adverse Change:

                              (i) any Reportable Event with respect to any Plan,

                              (ii) any Prohibited Transaction which could
subject any Loan Party or any other member of the ERISA Group to a civil penalty
assessed pursuant to Section 502(i) of ERISA or a tax imposed by Section 4975 of
the Internal Revenue Code in connection with any Plan, any Benefit Arrangement
or any trust created thereunder,

                              (iii) any withdrawal from a Multiemployer Plan by
the Borrower or any other member of the ERISA Group under Title IV of ERISA or
assertion by a Multiemployer Plan that such a withdrawal has occurred,

                              (iv) any cessation of operations (by any Loan
Party or any other member of the ERISA Group) at a facility in the circumstances
described in Section 4062(e) of ERISA,

                              (v) withdrawal by any Loan Party or any other
member of the ERISA Group from a Plan in the circumstances described in Section
4063 of ERISA or the termination of such Plan in the circumstances described in
Section 4064 of ERISA,

                              (vi) a failure to make any required contribution
to a Plan or the creation of any Lien in favor of the PBGC or a Plan,

                              (vii) the adoption of an amendment to a Plan
requiring the provision of security to such Plan pursuant to Section 307 of
ERISA, or

                              (viii) the distress termination of a Plan, under
Title IV of ERISA, which has insufficient assets to pay all liabilities.

                              7.3.8.2 Notices of Involuntary Termination and
Annual Reports. Promptly after receipt thereof, copies of (a) all notices
received by any Loan Party or any other member of the ERISA Group of the PBGC’s
intent to terminate any Plan administered or maintained by the Borrower or any
member of the ERISA Group, or to have a trustee appointed to administer any such
Plan; and (b) at the request of the Agent or any Lender each annual report (IRS
Form 5500 series) and all accompanying schedules, the most recent actuarial
reports, the most recent financial information concerning the financial status
of each Plan administered or maintained by any Loan Party or any other member of
the ERISA Group, and schedules showing the amounts contributed to each such Plan
by or on behalf of the Borrower or any other member of the ERISA Group in which
any of their personnel participate or from which such personnel may derive a
benefit, and each Schedule B (Actuarial Information) to the annual report filed
by any Loan Party or any other member of the ERISA Group with the Internal
Revenue Service with respect to each such Plan.

                              7.3.8.3 Notice of Voluntary Termination. Where a
termination of any Plan would result in a Material Adverse Change, promptly upon
the filing thereof, copies of any Form 5310, or

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any successor or equivalent form to Form 5310, filed with the PBGC in connection
with the termination of any Plan.

8. DEFAULT

          8.1 Events of Default.

          An Event of Default shall mean the occurrence or existence of any one
or more of the following events or conditions (whatever the reason therefor and
whether voluntary, involuntary or effected by operation of Law):

                    8.1.1 Payments Under Loan Documents.

                    The Borrower shall fail to pay (i) any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at
maturity), Reimbursement Obligation or Letter of Credit Borrowing when such
principal is due hereunder or (ii) any interest on any Loan, Reimbursement
Obligation or Letter of Credit Borrowing or any other amount owing hereunder or
under the other Loan Documents within three (3) Business Days after such
interest or other amount becomes due in accordance with the terms hereof or
thereof;

                    8.1.2 Breach of Warranty.

                    Any representation or warranty made at any time by any of
the Loan Parties herein or by any of the Loan Parties in any other Loan
Document, or in any certificate, other instrument or statement furnished
pursuant to the provisions hereof or thereof, shall prove to have been false or
misleading in any material respect as of the time it was made or furnished;

                    8.1.3 Breach of Certain Negative Covenants.

                    Any of the Loan Parties shall default in the observance or
performance of any covenant contained in Sections 7.2.10 [Borrower Base], 7.2.11
[Minimum CTNW], 7.2.12 [Leverage Ratio], 7.2.13 [Fixed Charge Coverage Ratio
Triggers] or 7.2.14 [Inventory Limits];

                    8.1.4 Breach of Other Covenants.

                    Any of the Loan Parties shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other
Loan Document and such default shall continue unremedied for a period of thirty
(30) Business Days after notice to the Borrower from the Agent;

                    8.1.5 Defaults in Other Agreements or Indebtedness.

                    Either (i) a default or event of default shall occur at any
time under the terms of any other agreement involving borrowed money or the
extension of credit or any other Indebtedness (excluding any surety bonds) under
which any Loan Party may be obligated as a borrower or guarantor in excess of
$25,000,000 in the aggregate, and such breach, default or event of default
consists of the failure to pay (beyond any period of grace permitted with
respect thereto, whether waived or not) any Indebtedness when due (whether at
stated maturity, by acceleration or otherwise) or if such breach or default
permits or causes the acceleration of any Indebtedness (whether or not such
right shall have been waived) or the termination of any commitment to lend, or
(ii) draws shall be made on surety bonds in excess of $25,000,000in the
aggregate issued on behalf of any Loan Party and such Loan Party shall fail to
reimburse the providers thereof within 60 days after the date of the applicable
draws;

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                    8.1.6 Final Judgments or Orders.

                    Any final judgments or orders for the payment of money in
excess of $25,000,000 in the aggregate (excluding amounts covered by insurance
with respect to which the relevant insurer acknowledges such coverage) shall be
entered against any Loan Party by a court having jurisdiction, which judgment is
not discharged, vacated, bonded or stayed pending appeal within a period of
thirty (30) days from the date of entry;

                    8.1.7 Loan Document Unenforceable.

                    Any of the Loan Documents shall cease to be legal, valid and
binding agreements enforceable against the party executing the same or such
party’s successors and assigns (as permitted under the Loan Documents) in
accordance with the respective terms thereof or shall in any way be terminated
(except in accordance with its terms or as permitted under the Loan Documents)
or become or be declared ineffective or inoperative or shall in any way be
challenged or contested by the Loan Parties or cease to give or provide the
respective Liens, security interests, rights, titles, interests, remedies,
powers or privileges intended to be created thereby;

                    8.1.8 Uninsured Losses; Proceedings Against Assets.

                    Any of the Loan Parties’ assets come within the possession
of any receiver, trustee, custodian or assignee for the benefit of creditors and
the same is not cured within thirty (30) days thereafter and could reasonably be
expected to constitute a Material Adverse Change;

                    8.1.9 Notice of Lien or Assessment.

                    Any taxes or debts owing in excess of $25,000,000 in the
aggregate at any time or times hereafter to any of the United States, or any
department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental agency, including the PBGC become payable and
the same are not paid within thirty (30) days after the same become payable,
except to the extent that such taxes or debts are being contested in good faith
by appropriate proceedings diligently conducted and for which such reserves or
other provisions, if any, required by GAAP have been made;

                    8.1.10 Insolvency.

                    Any of (i) Hovnanian, (ii) the Borrower or (iii) Restricted
Subsidiaries owning as of the date of any event described in this Section 8.1.10
three percent (3%) or more of the Dollar value of all of the assets of all of
the Subsidiaries of Hovnanian taken as a whole ceases to be solvent or admits in
writing its inability to pay its debts as they mature;

                    8.1.11 Events Relating to Plans and Benefit Arrangements.

                    Any of the following occurs: (i) any Reportable Event with
respect to a Plan, which the Agent reasonably determines in good faith
constitutes grounds for the termination of any Plan by the PBGC or the
appointment of a trustee to administer or liquidate any Plan, shall have
occurred and be continuing; (ii) proceedings shall have been instituted or other
action taken to terminate any Plan, or a termination notice shall have been
filed with respect to any Plan; (iii) a trustee shall be appointed to administer
or liquidate any Plan; (iv) the PBGC shall give notice of its intent to
institute proceedings to terminate any Plan or Plans or to appoint a trustee to
administer or liquidate any Plan; and, in the case of the occurrence of (i),
(ii), (iii) or (iv) above, the Agent reasonably determines in good faith that
the amount of any Loan Party’s liability is likely to result in a Material
Adverse Change; (v) any

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“accumulated funding deficiency” (as defined in Section 302 of ERISA) shall
exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall
arise on the assets of the Borrower or any other member of the ERISA Group, (vi)
any Loan Party or any other member of the ERISA Group shall make any amendment
to a Plan with respect to which security is required under Section 307 of ERISA;
(vii) any Loan Party or any other member of the ERISA Group shall incur any
liability in connection with a withdrawal from a Multiemployer Plan; (viii) any
Loan Party or any other member of the ERISA Group shall withdraw under Section
4063 of ERISA (or shall be deemed under Section 4062(e) of ERISA to withdraw)
from a Plan; or (ix) any applicable Law is adopted, changed or interpreted by
any Official Body with respect to or otherwise affecting one or more Plans,
Multiemployer Plans or Benefit Arrangements and, with respect to any of the
events specified in (v), (vi), (vii), (viii) or (ix), the Agent reasonably
determines in good faith that any such occurrence, together with all other such
events, would be reasonably likely to result in a Material Adverse Change;

                    8.1.12 Change of Control.

                    (i) Any person or group of persons (within the meaning of
Sections 13(d) or 14(a) of the Securities Exchange Act of 1934, as amended)
shall have acquired beneficial ownership of (within the meaning of Rule 13d-3
promulgated by the SEC under said Act) 40% or more of the voting capital stock
of Hovnanian; or (ii) within a period of twelve (12) consecutive calendar
months, individuals who were directors of the Borrower on the first day of such
period, or who were nominated by a majority of such directors, shall cease to
constitute a majority of the board of directors of the Borrower;

                    8.1.13 Involuntary Proceedings.

                    A proceeding shall have been instituted in a court having
jurisdiction seeking a decree or order for relief in respect of any of (i)
Hovnanian, (ii) the Borrower or (iii) Restricted Subsidiaries owning as of the
date of any event described in this Section 8.1.14 three percent (3%) or more of
the Dollar value of all of the assets of all of the Subsidiaries of Hovnanian
taken as a whole in an involuntary case under any applicable bankruptcy,
insolvency, reorganization or other similar law now or hereafter in effect, or
for the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or similar official) of any Loan Party for any
substantial part of its property, or for the winding-up or liquidation of its
affairs, and such proceeding shall remain undismissed or unstayed and in effect
for a period of sixty (60) consecutive days or such court shall enter a decree
or order granting any of the relief sought in such proceeding; or

                    8.1.14 Voluntary Proceedings.

                    Any of (i) Hovnanian, (ii) the Borrower or (iii) Restricted
Subsidiaries owning as of the date of any event described in this Section 8.1.15
three percent (3%) or more of the Dollar value of all of the assets of all of
the Subsidiaries of Hovnanian taken as a whole shall commence a voluntary case
under any applicable bankruptcy, insolvency, reorganization or other similar law
now or hereafter in effect, shall consent to the entry of an order for relief in
an involuntary case under any such law, or shall consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or other similar official) of itself or for any
substantial part of its property or shall make a general assignment for the
benefit of creditors, or shall fail generally to pay its debts as they become
due, or shall take any action in furtherance of any of the foregoing.

          8.2 Consequences of Event of Default.

                    8.2.1 Events of Default Other Than Bankruptcy, Insolvency or
Reorganization Proceedings.

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                    If an Event of Default specified under Sections 8.1.1
[Payments Under Loan Documents] through 8.1.13 [Change of Control] shall occur
and be continuing, the Lenders and the Agent shall be under no further
obligation to make Loans or issue Letters of Credit, as the case may be, and the
Agent may, and upon the request of the Required Lenders, shall (i) by written
notice to the Borrower, declare the unpaid principal amount of the Loan then
outstanding and all interest accrued thereon, any unpaid fees and all other
Indebtedness of the Borrower to the Lenders hereunder and thereunder to be
forthwith due and payable, and the same shall thereupon become and be
immediately due and payable to the Agent for the benefit of each Lender without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived, and (ii) require the Borrower to, and the Borrower
shall thereupon, deposit in an interest-bearing account with the Agent, as cash
collateral for its Obligations under the Loan Documents, an amount equal to the
maximum amount currently or at any time thereafter available to be drawn on all
outstanding Letters of Credit, and the Borrower hereby pledges to the Agent and
the Lenders, and grants to the Agent and the Lenders a security interest in, all
such cash as security for such Obligations. Upon the curing of all existing
Events of Default, the Agent shall return such cash collateral to the Borrower;
and

                    8.2.2 Bankruptcy, Insolvency or Reorganization Proceedings.

                    If an Event of Default specified under Section 8.1.14
[Involuntary Proceedings] or 8.1.15 [Voluntary Proceedings] shall occur, the
Lenders shall be under no further obligations to make Loans or issue Letters of
Credit hereunder and the unpaid principal amount of the Loans then outstanding
and all interest accrued thereon, any unpaid fees and all other Indebtedness of
the Borrower to the Lenders hereunder and thereunder shall be immediately due
and payable, without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived and the Borrower shall upon such occurrence,
deposit in an interest-bearing account with the Agent, as cash collateral for
its Obligations under the Loan Documents, an amount equal to the maximum amount
currently or at any time thereafter available to be drawn on all outstanding
Letters of Credit, and the Borrower hereby pledges to the Agent and the Lenders,
and grants to the Agent and the Lenders a security interest in, all such cash as
security for such Obligations; and

                    8.2.3 Set-off.

                    If an Event of Default shall occur and be continuing, any
Lender to whom any Obligation is owed by any Loan Party hereunder or under any
other Loan Document or any participant of such Lender which has agreed in
writing to be bound by the provisions of Section 9.13 [Equalization of Lenders]
and any branch, Subsidiary or Affiliate of such Lender or participant anywhere
in the world shall have the right, in addition to all other rights and remedies
available to it, without notice to such Loan Party, to set-off against and apply
to the then unpaid balance of all past-due Loans and all other past-due
Obligations of the Borrower and the other Loan Parties hereunder or under any
other Loan Document any debt owing to, and any other funds held in any manner
for the account of, the Borrower or such other Loan Party by such Lender or
participant or by such branch, Subsidiary or Affiliate, including all funds in
all deposit accounts (whether time or demand, general or special, provisionally
credited or finally credited, or otherwise) now or hereafter maintained by the
Borrower or such other Loan Party for its own account (but not including funds
held in custodian or trust accounts) with such Lender or participant or such
branch, Subsidiary or Affiliate; and

                    8.2.4 Suits, Actions, Proceedings.

                    If an Event of Default shall occur and be continuing, and
whether or not the Agent shall have accelerated the maturity of Loans pursuant
to any of the foregoing provisions of this Section 8.2 [Consequences of Event of
Default], the Agent or any Lender, if owed any amount with respect to the

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Loans, may proceed to protect and enforce its rights by suit in equity, action
at law and/or other appropriate proceeding, whether for the specific performance
of any covenant or agreement contained in this Agreement or the other Loan
Documents, including as permitted by applicable Law the obtaining of the ex
parte appointment of a receiver, and, if such amount shall have become due, by
declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of the Agent or such Lender; and

                    8.2.5 Application of Proceeds.

                    From and after the date on which the Agent has taken any
action pursuant to this Section 8.2 [Consequences of Event of Default] and until
all Obligations of the Loan Parties have been paid in full, any and all proceeds
received by the Agent from the exercise of any remedy by the Agent, shall be
applied as follows:

                              (i) first, to reimburse the Agent and the Lenders
for out-of-pocket costs, expenses and disbursements, including reasonable
attorneys’ and paralegals’ fees and legal expenses, incurred by the Agent or the
Lenders in connection with collection of any Obligations of any of the Loan
Parties under any of the Loan Documents;

                              (ii) second, to the repayment of all Indebtedness
then due and unpaid of the Loan Parties to the Lenders incurred under this
Agreement or any of the other Loan Documents, whether of principal, interest,
fees, expenses or otherwise, in such manner as the Agent may determine in its
discretion; and

                              (iii) the balance, if any, as required by Law.

                    8.2.6 Other Rights and Remedies.

                    In addition to all of the rights and remedies contained in
this Agreement or in any of the other Loan Documents, the Agent shall have all
of the rights and remedies under applicable Law, all of which rights and
remedies shall be cumulative and non-exclusive, to the extent permitted by Law.
The Agent may, and upon the request of the Required Lenders shall, exercise all
post-default rights granted to the Agent and the Lenders under the Loan
Documents or applicable Law.

9. THE AGENT

          9.1 Appointment.

          Each Lender hereby irrevocably designates, appoints and authorizes PNC
Bank to act as Agent for such Lender under this Agreement and to execute and
deliver or accept on behalf of each of the Lenders the other Loan Documents.
Each Lender hereby irrevocably authorizes the Agent to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
any other instruments and agreements referred to herein, and to exercise such
powers and to perform such duties hereunder as are specifically delegated to or
required of the Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. PNC Bank agrees to act as the Agent on behalf of
the Lenders to the extent provided in this Agreement.

          9.2 Delegation of Duties.

          The Agent may perform any of its duties hereunder by or through agents
or employees (provided such delegation does not constitute a relinquishment of
its duties as Agent) and, subject to Sections 9.5

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[Reimbursement and Indemnification of Agent by the Borrower] and 9.6
[Exculpatory Provisions; Limitation of Liability], shall be entitled to engage
and pay for the advice or services of any attorneys, accountants or other
experts concerning all matters pertaining to its duties hereunder and to rely
upon any advice so obtained.

          9.3 Nature of Duties; Independent Credit Investigation.

          The Agent shall have no duties or responsibilities except those
expressly set forth in this Agreement and no implied covenants, functions,
responsibilities, duties, obligations, or liabilities shall be read into this
Agreement or otherwise exist. The duties of the Agent shall be mechanical and
administrative in nature; the Agent shall not have by reason of this Agreement a
fiduciary or trust relationship in respect of any Lender; and nothing in this
Agreement, expressed or implied, is intended to or shall be so construed as to
impose upon the Agent any obligations in respect of this Agreement except as
expressly set forth herein. Without limiting the generality of the foregoing,
the use of the term “agent” in this Agreement with reference to the Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. Each
Lender expressly acknowledges (i) that the Agent has not made any
representations or warranties to it and that no act by the Agent hereafter
taken, including any review of the affairs of any of the Loan Parties, shall be
deemed to constitute any representation or warranty by the Agent to any Lender;
(ii) that it has made and will continue to make, without reliance upon the
Agent, its own independent investigation of the financial condition and affairs
and its own appraisal of the creditworthiness of each of the Loan Parties in
connection with this Agreement and the making and continuance of the Loans
hereunder; and (iii) except as expressly provided herein, that the Agent shall
have no duty or responsibility, either initially or on a continuing basis, to
provide any Lender with any credit or other information with respect thereto,
whether coming into its possession before the making of any Loan or at any time
or times thereafter.

          9.4 Actions in Discretion of Agent; Instructions From the Lenders.

          The Agent agrees, upon the written request of the Required Lenders, to
take or refrain from taking any action of the type specified as being within the
Agent’s rights, powers or discretion herein, provided that the Agent shall not
be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or any other Loan Document or applicable
Law. In the absence of a request by the Required Lenders, the Agent shall have
authority, in its sole discretion, to take or not to take any such action,
unless this Agreement specifically requires the consent of the Required Lenders
or all of the Lenders. Any action taken or failure to act pursuant to such
instructions or discretion shall be binding on the Lenders, subject to Section
9.6 [Exculpatory Provisions; Limitation of Liability]. Subject to the provisions
of Section 9.6 [Exculpatory Provisions; Limitation of Liability], no Lender
shall have any right of action whatsoever against the Agent as a result of the
Agent acting or refraining from acting hereunder in accordance with the
instructions of the Required Lenders, or in the absence of such instructions, in
the absolute discretion of the Agent.

          9.5 Reimbursement and Indemnification of Agent by the Borrower.

          The Borrower unconditionally agrees to pay or reimburse the Agent, its
Affiliates and their respective directors, officers, employees, agents and
advisors and hold such Persons harmless against (a) liability for the payment of
all reasonable out-of-pocket costs, expenses and disbursements, including fees
and expenses of counsel (including the allocated costs of staff counsel),
incurred by such Persons (i) in connection with the development, negotiation,
preparation, printing, execution, administration, syndication, interpretation
and performance of this Agreement and the other Loan Documents, (ii)

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relating to any requested amendments, waivers or consents pursuant to the
provisions hereof, (iii) in connection with the enforcement of this Agreement or
any other Loan Document or collection of amounts due hereunder or thereunder or
the proof and allowability of any claim arising under this Agreement or any
other Loan Document, whether in bankruptcy or receivership proceedings or
otherwise, and (iv) in any workout or restructuring or in connection with the
protection, preservation, exercise or enforcement of any of the terms hereof or
of any rights hereunder or under any other Loan Document or in connection with
any foreclosure, collection or bankruptcy proceedings, and (b) all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against such Persons, in their capacity as such, in
any way relating to or arising out of this Agreement or any other Loan Documents
or any action taken or omitted by such Persons hereunder or thereunder, provided
that the Borrower shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements if the same results from such Persons’ gross
negligence or willful misconduct or from the gross negligence or willful
misconduct of any of such Person’s Affiliates, directors, officers, employees,
agents or advisors, or if the Borrower was not given notice of the subject claim
and the opportunity to participate in the defense thereof, at its expense
(except that the Borrower shall remain liable to the extent such failure to give
notice does not result in a loss to the Borrower), or if the same results from a
compromise or settlement agreement entered into without the consent of the
Borrower, which shall not be unreasonably withheld. In addition, after the
occurrence and during the continuance of an Event of Default, the Borrower
agrees to reimburse and pay all reasonable out-of-pocket expenses of the Agent’s
regular employees and agents engaged periodically to perform audits of the Loan
Parties’ books, records and business properties.

          9.6 Exculpatory Provisions; Limitation of Liability.

          Neither the Agent nor any of its directors, officers, employees,
agents, attorneys or Affiliates shall (a) be liable to any Lender for any action
taken or omitted to be taken by it or them hereunder, or in connection herewith
including pursuant to any Loan Document, unless caused by its or their own gross
negligence or willful misconduct, (b) be responsible in any manner to any of the
Lenders for the effectiveness, enforceability, genuineness, validity or the due
execution of this Agreement or any other Loan Documents or for any recital,
representation, warranty, document, certificate, report or statement herein or
made or furnished under or in connection with this Agreement or any other Loan
Documents, or (c) be under any obligation to any of the Lenders to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions hereof or thereof on the part of the Loan Parties, or the financial
condition of the Loan Parties, or the existence or possible existence of any
Event of Default or Potential Default. No claim may be made by any of the Loan
Parties, any Lender, the Agent or any of their respective Subsidiaries against
the Agent, any Lender or any of their respective directors, officers, employees,
agents, attorneys or Affiliates, or any of them, for any special, indirect or
consequential damages or, to the fullest extent permitted by Law, for any
punitive damages in respect of any claim or cause of action (whether based on
contract, tort, statutory liability, or any other ground) based on, arising out
of or related to any Loan Document or the transactions contemplated hereby or
any act, omission or event occurring in connection therewith, including the
negotiation, documentation, administration or collection of the Loans, and each
of the Loan Parties (for itself and on behalf of each of its Subsidiaries), the
Agent and each Lender hereby waive, release and agree never to sue upon any
claim for any such damages, whether such claim now exists or hereafter arises
and whether or not it is now known or suspected to exist in its favor. The Agent
shall promptly distribute to each Lender copies of financial statements
delivered by the Borrower pursuant to Section 7.3.1 and Section 7.3.2 and the
Borrowing Base Certificates delivered pursuant to Section 7.3.3.2. Each Lender
agrees that, except for notices, reports and other documents expressly required
to be furnished to the Lenders by the Agent hereunder or given to the Agent for
the account of or with copies for the Lenders, the Agent and each of its
directors, officers, employees, agents, attorneys or Affiliates shall not have
any duty or responsibility

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to provide any Lender with credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Loan Parties which may come into the possession of the
Agent or any of its directors, officers, employees, agents, attorneys or
Affiliates.

          9.7 Reimbursement and Indemnification of Agent by Lenders.

          Each Lender agrees to reimburse and indemnify the Agent (to the extent
not reimbursed by the Borrower and without limiting the obligation of the
Borrower to do so), its Affiliates and their respective directors, officers,
employees, agents and advisors in proportion to such Lender’s Ratable Share from
and against all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements, including attorneys’ fees
and disbursements (including the allocated costs of staff counsel), and costs of
appraisers and environmental consultants, of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against such Persons, in its capacity
as such, in any way relating to or arising out of this Agreement or any other
Loan Documents or any action taken or omitted by such Persons hereunder or
thereunder, provided that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements (a) if the same results from such Persons’
gross negligence or willful misconduct, or (b) if such Lender was not given
notice of the subject claim and the opportunity to participate in the defense
thereof, at its expense (except that such Lender shall remain liable to the
extent such failure to give notice does not result in a loss to the Lender), or
(c) if the same results from a compromise and settlement agreement entered into
without the consent of such Lender, which shall not be unreasonably withheld. In
addition, each Lender agrees promptly upon demand to reimburse such Persons (to
the extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so) in proportion to its Ratable Share for all amounts due
and payable by the Borrower to the Agent in connection with the Agent’s periodic
audit of the Loan Parties’ books, records and business properties.

          9.8 Reliance by Agent.

          The Agent shall be entitled to rely upon any writing, telegram, telex
or teletype message, electronic mail, resolution, notice, consent, certificate,
letter, cablegram, statement, order or other document or conversation by
telephone or otherwise believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons, and upon the advice and
opinions of counsel and other professional advisers selected by the Agent. The
Agent shall be fully justified in failing or refusing to take any action
hereunder unless it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by it by
reason of taking or continuing to take any such action.

          9.9 Notice of Default.

          The Agent shall not be deemed to have knowledge or notice of the
occurrence of any Potential Default or Event of Default unless the Agent has
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Potential Default or Event of Default and stating
that such notice is a “notice of default.” In the event that the Agent receives
such a notice, it shall give notice thereof to the Lenders.

          9.10 Notices.

          The Agent shall promptly send to each Lender a copy of all notices
received from the Borrower pursuant to the provisions of this Agreement or the
other Loan Documents promptly upon receipt thereof. The Agent shall promptly
notify the Borrower and the other Lenders of each change in the Base Rate and
the effective date thereof.

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          9.11 Lenders in Their Individual Capacities; Agents in its Individual
Capacity.

          With respect to its Revolving Credit Commitment, the Revolving Credit
Loans made by it and any other rights and powers given to it as a Lender
hereunder or under any of the other Loan Documents, the Agent shall have the
same rights and powers hereunder as any other Lender and may exercise the same
as though it were not the Agent, and the terms “Lender” and “Lenders” shall,
unless the context otherwise indicates, include the Agent in its individual
capacity. PNC Bank and its Affiliates and each of the Lenders and their
respective Affiliates may, without liability to account, except as prohibited
herein, make loans to, issue letters of credit for the account of, acquire
equity interests in, accept deposits from, discount drafts for, act as trustee
under indentures of, and generally engage in any kind of banking, trust,
financial advisory, underwriting or other business with, the Loan Parties and
their Affiliates, in the case of the Agent, as though it were not acting as
Agent hereunder and in the case of each Lender, as though such Lender were not a
Lender hereunder, in each case without notice to or consent of the other
Lenders. The Lenders acknowledge that, pursuant to such activities, the Agent or
its Affiliates may (i) receive information regarding the Loan Parties or any of
their Subsidiaries or Affiliates (including information that may be subject to
confidentiality obligations in favor of the Loan Parties or such Subsidiary or
Affiliate) and acknowledge that the Agent shall be under no obligation to
provide such information to them, and (ii) accept fees and other consideration
from the Loan Parties for services in connection with this Agreement and
otherwise without having to account for the same to the Lenders.

          9.12 Holders of Notes.

          The Agent may deem and treat any payee of any Note as the owner
thereof for all purposes hereof unless and until written notice of the
assignment or transfer thereof shall have been filed with the Agent. Any
request, authority or consent of any Person who at the time of making such
request or giving such authority or consent is the holder of any Note shall be
conclusive and binding on any subsequent holder, transferee or assignee of such
Note or of any Note or Notes issued in exchange therefor.

          9.13 Equalization of Lenders.

          The Lenders and the holders of any participations in any Commitments
or Loans or other rights or obligations of a Lender hereunder agree among
themselves that, with respect to all amounts received by any Lender or any such
holder for application on any Obligation hereunder or under any such
participation, whether received by voluntary payment, by realization upon
security, by the exercise of the right of set-off or banker’s lien, by
counterclaim or by any other non-pro rata source, equitable adjustment will be
made in the manner stated in the following sentence so that, in effect, all such
excess amounts will be shared ratably among the Lenders and such holders in
proportion to their interests in payments on the Loans, except as otherwise
provided in Section 3.4.3 [Agent’s and Lender’s Rights], 4.4.2 [Replacement of a
Lender] or 4.6 [Additional Compensation in Certain Circumstances]. The Lenders
or any such holder receiving any such amount shall purchase for cash from each
of the other Lenders an interest in such Lender’s Loans in such amount as shall
result in a ratable participation by the Lenders and each such holder in the
aggregate unpaid amount of the Loans, provided that if all or any portion of
such excess amount is thereafter recovered from the Lender or the holder making
such purchase, such purchase shall be rescinded and the purchase price restored
to the extent of such recovery, together with interest or other amounts, if any,
required by law (including court order) to be paid by the Lender or the holder
making such purchase.

          9.14 Successor Agent.

          The Agent (i) may resign as Agent or (ii) shall resign if such
resignation is requested by the Required Lenders (if the Agent is a Lender, the
Agent’s Loans and its Commitment shall be considered in

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determining whether the Required Lenders have requested such resignation) or
required by Section 4.4.2 [Replacement of a Lender], in either case of (i) or
(ii) by giving not less than thirty (30) days’ prior written notice to the
Borrower. If the Agent shall resign under this Agreement, then either (a) the
Required Lenders shall appoint from among the Lenders a successor agent for the
Lenders, subject to the consent of the Borrower, such consent not to be
unreasonably withheld, or (b) if a successor agent shall not be so appointed and
approved within the thirty (30) day period following the Agent’s notice to the
Lenders of its resignation, then the Agent shall appoint from among the Lenders,
with the consent of the Borrower, such consent not to be unreasonably withheld,
a successor agent who shall serve as Agent until such time as the Required
Lenders appoint and the Borrower consents to the appointment of a successor
agent. Upon its appointment pursuant to either clause (a) or (b) above, such
successor agent shall succeed to the rights, powers and duties of the Agent, and
the term “Agent” shall mean such successor agent, effective upon its
appointment, and the former Agent’s rights, powers and duties as Agent shall be
terminated without any other or further act or deed on the part of such former
Agent or any of the parties to this Agreement. After the resignation of any
Agent hereunder, the provisions of this Section 9 shall inure to the benefit of
such former Agent and such former Agent shall not by reason of such resignation
be deemed to be released from liability for any actions taken or not taken by it
while it was an Agent under this Agreement.

          9.15 Agent’s Fee.

          The Borrower shall pay to the Agent the nonrefundable fee (the
“Agent’s Fee”) under the terms of a fee letter (the “Fee Letter”) between the
Borrower and Agent, as amended from time to time.

          9.16 Availability of Funds.

          The Agent may assume that each Lender has made or will make the
proceeds of a Loan available to the Agent unless the Agent shall have been
notified by such Lender on or before the later of (1) the close of Business on
the Business Day preceding the Borrowing Date with respect to such Loan or two
(2) hours before the time on which the Agent actually funds the proceeds of such
Loan to the Borrower (whether using its own funds pursuant to this Section 9.16
or using proceeds deposited with the Agent by the Lenders and whether such
funding occurs before or after the time on which Lenders are required to deposit
the proceeds of such Loan with the Agent). The Agent may, in reliance upon such
assumption (but shall not be required to), make available to the Borrower a
corresponding amount. If such corresponding amount is not in fact made available
to the Agent by such Lender, the Agent shall be entitled to recover such amount
on demand from such Lender (or, if such Lender fails to pay such amount
forthwith upon such demand from the Borrower) together with interest thereon, in
respect of each day during the period commencing on the date such amount was
made available to the Borrower and ending on the date the Agent recovers such
amount, at a rate per annum equal to (i) the Federal Funds Effective Rate during
the first three (3) days after such interest shall begin to accrue and (ii) the
applicable interest rate in respect of such Loan after the end of such three-day
period.

          9.17 Calculations.

          In the absence of gross negligence or willful misconduct, the Agent
shall not be liable for any error in computing the amount payable to any Lender
whether in respect of the Loans, fees or any other amounts due to the Lenders
under this Agreement. In the event an error in computing any amount payable to
any Lender is made, the Agent, the Borrower and each affected Lender shall,
forthwith upon discovery of such error, make such adjustments as shall be
required to correct such error, and any compensation therefor will be calculated
at the Federal Funds Effective Rate.

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          9.18 Beneficiaries.

          Except as expressly provided herein, the provisions of this Section 9
[The Agent] are solely for the benefit of the Agent and the Lenders, and the
Loan Parties shall not have any rights to rely on or enforce any of the
provisions hereof. In performing its functions and duties under this Agreement,
the Agent shall act solely as agent of the Lenders and does not assume and shall
not be deemed to have assumed any obligation toward or relationship of agency or
trust with or for any of the Loan Parties.

10. MISCELLANEOUS

          10.1 Modifications, Amendments or Waivers.

          With the written consent of the Required Lenders, the Agent, acting on
behalf of all the Lenders, and the Borrower, on behalf of the Loan Parties, may
from time to time enter into written agreements amending or changing any
provision of this Agreement or any other Loan Document or the rights of the
Lenders or the Loan Parties hereunder or thereunder, or may grant written
waivers or consents to a departure from the due performance of the Obligations
of the Loan Parties hereunder or thereunder. Any such agreement, waiver or
consent made with such written consent shall be effective to bind all the
Lenders and the Loan Parties; provided, that, without the written consent of all
the Lenders, no such agreement, waiver or consent may be made which will:

                    10.1.1 Increase of Commitments.

                    Increase the amount of the aggregate Revolving Credit
Commitments other than as provided pursuant to Section 2.12 (except that the
amount set forth in Section 2.12.1(iii) may not be increased without the consent
of all Lenders);

 

 

 

 

10.1.2

Extension of Payment; Reduction of Principal, Interest or Fees; Modification of
Terms of Payment; Release of Collateral.

                    Subject to Section 2.10 [Extension by Lenders of the
Expiration Date], but whether or not any Loans are outstanding, extend the time
for payment of principal or interest of any Loan (excluding the due date of any
mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or any
other fee payable to any Lender, or reduce the principal amount of or the rate
of interest borne by any Loan or reduce the Commitment Fee or any other fee
payable to any Lender, or otherwise directly affect the terms of payment of the
principal of or interest of any Loan, the Commitment Fee or any other fee
payable to any Lender, or release any material portion of any collateral granted
as security for the Obligations (except as expressly provided for herein);

                    10.1.3 Release of Borrower.

                    Consent to the assignment or transfer by the Borrower of its
rights and Obligations under (or in respect of) the Loan Documents or otherwise
release the Borrower from its Obligations under the Loan Documents; or

                    10.1.4 Miscellaneous

                    Amend Section 2.11.1 [Release of Guarantors], 4.2 [Pro Rata
Treatment of Lenders], 9.6 [Exculpatory Provisions; Limitation of Liability],
9.13 [Equalization of Lenders] or this Section 10.1 [Modifications, Amendments
or Waivers] change the pro rata treatment of the Lenders, change the

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definition of Required Lenders, or change any requirement providing for the
Lenders or the Required Lenders to authorize the taking of any action hereunder;

provided, that no agreement, waiver or consent which would modify the interests,
rights or obligations of the Agent in its capacity as Agent shall be effective
without the written consent of the Agent and provided further, that no provision
of Sections 2.1.2 [Swing Loan Commitment], 2.4.2 [Swing Loan Requests], 2.5.2
[Making Swing Loans], 2.6 [Swing Loan Note], 2.8 [Borrowings to Repay Swing
Loans] and 4.8 [Settlement Date Procedures] may be amended or modified without
the consent of PNC Bank, and provided further that no increase in the Commitment
of any Lender shall be made without the consent of such Lender.

          10.2 No Implied Waivers; Cumulative Remedies; Writing Required.

          No course of dealing and no delay or failure of the Agent or any
Lender in exercising any right, power, remedy or privilege under this Agreement
or any other Loan Document shall affect any other or future exercise thereof or
operate as a waiver thereof, nor shall any single or partial exercise thereof or
any abandonment or discontinuance of steps to enforce such a right, power,
remedy or privilege preclude any further exercise thereof or of any other right,
power, remedy or privilege. The rights and remedies of the Agent and the Lenders
under this Agreement and any other Loan Documents are cumulative and not
exclusive of any rights or remedies which they would otherwise have. Any waiver,
permit, consent or approval of any kind or character on the part of any Lender
of any breach or default under this Agreement or any such waiver of any
provision or condition of this Agreement must be in writing and shall be
effective only to the extent specifically set forth in such writing.

          10.3 Reimbursement and Indemnification of Lenders by the Borrower;
Taxes.

          The Borrower agrees unconditionally upon demand to pay or reimburse to
each Lender (other than the Agent, as to which the Borrower’s Obligations are
set forth in Section 9.5 [Reimbursement and Indemnification of Agent by the
Borrower]) and its Affiliates, and their respective directors, officers,
employees, agents and advisors and to save such Persons harmless against (i)
liability for the payment of all reasonable out-of-pocket costs, expenses and
disbursements (including fees and expenses of counsel (including allocated costs
of staff counsel) for each such Person except with respect to (a) and (b)
below), incurred by such Person (a) in connection with the administration and
interpretation of this Agreement, and other instruments and documents to be
delivered hereunder, (b) relating to any amendments, waivers or consents
pursuant to the provisions hereof, (c) in connection with the enforcement of
this Agreement or any other Loan Document, or collection of amounts due
hereunder or thereunder or the proof and allowability of any claim arising under
this Agreement or any other Loan Document, whether in bankruptcy or receivership
proceedings or otherwise, and (d) in any workout or restructuring or in
connection with the protection, preservation, exercise or enforcement of any of
the terms hereof or of any rights hereunder or under any other Loan Document or
in connection with any foreclosure, collection or bankruptcy proceedings, or
(ii) all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against such Person,
in its capacity as such, in any way relating to or arising out of this Agreement
or any other Loan Documents or any action taken or omitted by such Person
hereunder or thereunder, provided that the Borrower shall not be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements (A) if the same results from
such Person’s gross negligence or willful misconduct or from the gross
negligence or willful misconduct of any of such Person’s Affiliates, directors,
officers, employees, agents or advisors, or (B) if the Borrower was not given
notice of the subject claim and the opportunity to participate in the defense
thereof, at its expense (except that the Borrower shall remain liable to the
extent such failure to give notice does not result in a loss to the Borrower),
or (C) if the same results from a compromise or

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settlement agreement entered into without the consent of the Borrower, which
shall not be unreasonably withheld. The Borrower agrees unconditionally to pay
all stamp, document, transfer, recording or filing taxes or fees and similar
impositions now or hereafter determined by the Agent or any Lender to be payable
in connection with this Agreement or any other Loan Document, and the Borrower
agrees unconditionally to save the Agent and the Lenders harmless from and
against any and all present or future claims, liabilities or losses with respect
to or resulting from any omission to pay or delay in paying any such taxes, fees
or impositions.

          10.4 Holidays.

          Whenever payment of a Loan to be made or taken hereunder shall be due
on a day which is not a Business Day such payment shall be due on the next
Business Day (except as provided in Section 3.2 [Interest Periods] with respect
to Interest Periods under the LIBOR Rate Option) and such extension of time
shall be included in computing interest and fees, except that the Loans shall be
due on the Business Day preceding the Expiration Date if the Expiration Date is
not a Business Day. Whenever any payment or action to be made or taken hereunder
(other than payment of the Loans) shall be stated to be due on a day which is
not a Business Day, such payment or action shall be made or taken on the next
following Business Day, and such extension of time shall not be included in
computing interest or fees, if any, in connection with such payment or action.

          10.5 Funding by Branch, Subsidiary or Affiliate.

                    10.5.1 Notional Funding.

                    Each Lender shall have the right from time to time, without
notice to the Borrower, to deem any branch, Subsidiary or Affiliate (which for
the purposes of this Section 10.5 shall mean any corporation or association
which is directly or indirectly controlled by or is under direct or indirect
common control with any corporation or association which directly or indirectly
controls such Lender) of such Lender to have made, maintained or funded any Loan
to which the LIBOR Rate Option applies at any time, provided that immediately
following (on the assumption that a payment were then due from the Borrower to
such other office), and as a result of such change, the Borrower would not be
under any greater financial obligation (including pursuant to Section 4.6
[Additional Compensation in Certain Circumstances]) than it would have been in
the absence of such change. Notional funding offices may be selected by each
Lender without regard to such Lender’s actual methods of making, maintaining or
funding the Loans or any sources of funding actually used by or available to
such Lender.

                    10.5.2 Actual Funding.

                    Each Lender shall have the right from time to time to make
or maintain any Loan by arranging for a branch, Subsidiary or Affiliate of such
Lender to make or maintain such Loan subject to the last sentence of this
Section 10.5.2. If any Lender causes a branch, Subsidiary or Affiliate to make
or maintain any part of the Loans hereunder, all terms and conditions of this
Agreement shall, except where the context clearly requires otherwise, be
applicable to such part of the Loans to the same extent as if such Loans were
made or maintained by such Lender, but in no event shall any Lender’s use of
such a branch, Subsidiary or Affiliate to make or maintain any part of the Loans
hereunder cause such Lender or such branch, Subsidiary or Affiliate to incur any
cost or expenses payable by the Borrower hereunder or require the Borrower to
pay any other compensation to any Lender (including any expenses incurred or
payable pursuant to Section 4.6 [Additional Compensation in Certain
Circumstances]) which would otherwise not be incurred.

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          10.6 Notices.

          Any notice, request, demand, direction or other communication (for
purposes of this Section 10.6 only, a “Notice”) to be given to or made upon any
party hereto under any provision of this Agreement shall be given or made by
telephone or in writing (which includes means of electronic transmission (i.e.,
“e-mail”) or facsimile transmission or by setting forth such Notice on a site on
the World Wide Web (a “Website Posting”) if Notice of such Website Posting
(including the information necessary to access such site) has previously been
delivered to the applicable parties hereto by another means set forth in this
Section 10.6 in accordance with this Section 10.6. Any such Notice must be
delivered to the applicable parties hereto at the addresses and numbers set
forth under their respective names on Schedule 1.1(B) hereof or in accordance
with any subsequent unrevoked Notice from any such party that is given in
accordance with this Section 10.6. Any Notice shall be effective:

                              (i) In the case of hand-delivery, when delivered;

                              (ii) If given by mail, four (4) days after such
Notice is deposited with the United States Postal Service, with first-class
postage prepaid, return receipt requested;

                              (iii) In the case of a telephonic Notice, when a
party is contacted by telephone, if delivery of such telephonic Notice is
confirmed no later than the next Business Day by hand delivery, a facsimile or
electronic transmission, a Website Posting or overnight courier delivery of a
confirmatory notice (received at or before noon on such next Business Day);

                              (iv) In the case of a facsimile transmission, when
sent to the applicable party’s facsimile machine’s telephone number if the party
sending such Notice receives confirmation of the delivery thereof from its own
facsimile machine;

                              (v) In the case of electronic transmission, when
actually received;

                              (vi) In the case of a Website Posting, upon
delivery of a Notice of such posting (including the information necessary to
access such web site) by another means set forth in this Section 10.6; and

                              (vii) If given by any other means (including by
overnight courier), when actually received.

Any Lender giving a Notice to a Loan Party shall concurrently send a copy
thereof to the Agent, and the Agent shall promptly notify the other Lenders of
its receipt of such Notice.

          10.7 Severability.

          The provisions of this Agreement are intended to be severable. If any
provision of this Agreement shall be held invalid or unenforceable in whole or
in part in any jurisdiction, such provision shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without in any
manner affecting the validity or enforceability thereof in any other
jurisdiction or the remaining provisions hereof in any jurisdiction.

          10.8 Governing Law.

          Each Letter of Credit and Section 2.10 [Letter of Credit Subfacility]
shall be subject to the Uniform Customs and Practice for Documentary Credits
(1993 Revision), International Chamber of

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Commerce Publication No. 500, as the same may be revised or amended from time to
time, and to the extent not inconsistent therewith, the internal laws of the
State of New York, and the balance of this Agreement shall be and the rights and
obligations of the parties under this Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of New York.

          10.9 Prior Understanding.

          This Agreement and the other Loan Documents supersede all prior
understandings and agreements, whether written or oral, between the parties
hereto and thereto relating to the transactions provided for herein and therein,
including any prior confidentiality agreements and commitments.

          10.10 Duration; Survival.

          All representations and warranties of the Borrower and Hovnanian
contained herein or made in connection herewith shall survive the making of
Loans and issuance of Letters of Credit and shall not be waived by the execution
and delivery of this Agreement, any investigation by the Agent or the Lenders,
the making of Loans, issuance of Letters of Credit, or payment in full of the
Loans. All covenants and agreements of the Borrower and Hovnanian contained in
Sections 7.1 [Affirmative Covenants], 7.2 [Negative Covenants] and 7.3
[Reporting Requirements] herein shall continue in full force and effect from and
after the date hereof so long as the Borrower may borrow or request Letters of
Credit hereunder and until termination of the Commitments and payment in full of
the Loans and expiration or termination of all Letters of Credit. All covenants
and agreements of the Borrower contained herein relating to the payment of
principal, interest, premiums, additional compensation or expenses and
indemnification, including those set forth in Section 4 [Payments] and Sections
9.5 [Reimbursement and Indemnification of Agent by the Borrower], 9.7
[Reimbursement and Indemnification of Agent by Lenders] and 10.3 [Reimbursement
and Indemnification of Lenders by Borrower; Taxes], shall survive payment in
full of the Loans, expiration or termination of the Letters of Credit and
termination of the Commitments.

          10.11 Successors and Assigns.

                    10.11.1 This Agreement shall be binding upon and shall inure
to the benefit of the Lenders, the Agent, the Loan Parties a party hereto and
their respective successors and assigns, except that none of the Loan Parties a
party hereto may assign or transfer any of its rights and obligations hereunder
or any interest herein. Each Lender may, at its own cost, make assignments of or
sell participations in all or any part of its Commitments and the Loans made by
it to one or more banks or other entities, subject to the consent of the
Borrower and the Agent with respect to any assignee, such consent not to be
unreasonably withheld or delayed provided that (1) no consent of the Borrower
shall be required (A) if an Event of Default exists and is continuing, (B) in
the case of an assignment by a Lender to an Affiliate of such Lender, or (C) in
respect of the sale of a participation, (2) any assignment by a Lender to a
Person other than an Affiliate of such Lender may not be made in amounts less
than the lesser of $10,000,000 or the amount of the assigning Lender’s
Commitment and (3) no consent of the Agent shall be required in the case of an
assignment by a Lender to an Affiliate of such Lender. In the case of an
assignment, upon receipt by the Agent of the Assignment and Assumption
Agreement, the assignee shall have, to the extent of such assignment (unless
otherwise provided therein), the same rights, benefits and obligations as it
would have if it had been a signatory Lender hereunder, the Commitments shall be
adjusted accordingly, and upon surrender of any Note subject to such assignment,
the Borrower shall execute and deliver a new Note to the assignee, if such
assignee requests such a Note in an amount equal to the amount of the Revolving
Credit Commitment assumed by it and a new Revolving Credit Note to the assigning
Lender, if the assigning Lender requests such a Note, in an amount equal to the
Revolving Credit Commitment or retained by it hereunder. Any Lender which
assigns any or all of its Commitment or Loans to a Person other than an
Affiliate of such Lender shall pay to the Agent a service fee in the

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amount of $3,500 for each assignment. In the case of a participation, the
participant shall only have the rights specified in Section 8.2.3 [Set-off] (the
participant’s rights against such Lender in respect of such participation to be
those set forth in the agreement executed by such Lender in favor of the
participant relating thereto and not to include any voting rights except with
respect to changes of the type referenced in Sections 10.1.1 [Increase of
Commitment, Extension of Expiration Date], or 10.1.2 [Extension of Payment;
Reduction of Principal, Interest or Fees; Modification of Terms of Payment]),
all of such Lender’s obligations under this Agreement or any other Loan Document
shall remain unchanged, and all amounts payable by any Loan Party hereunder or
thereunder shall be determined as if such Lender had not sold such
participation.

                    10.11.2 Each Lender or assignee or participant of a Lender
that is not incorporated under the laws of the United States of America or a
state thereof (and, upon the written request of the Agent, each other Lender or
assignee or participant of a Lender) shall deliver to the Borrower and the Agent
a Withholding Certificate as described in Section 10.17 [Tax Withholding Clause]
relating to federal income tax withholding. Each Lender may furnish any publicly
available information concerning Hovnanian or any Loan Party and any other
information concerning Hovnanian or any Loan Party in the possession of such
Lender from time to time to assignees and participants (including prospective
assignees or participants), provided that such assignees and participants agree
to be bound by the provisions of Section 10.12 [Confidentiality].

                    10.11.3 Notwithstanding any other provision in this
Agreement, any Lender may at any time pledge or grant a security interest in all
or any portion of its rights under this Agreement, its Note (if any) and the
other Loan Documents to any Federal Reserve Lender in accordance with Regulation
A of the FRB or U.S. Treasury Regulation 31 CFR Section 203.14 without notice to
or consent of the Borrower or the Agent. No such pledge or grant of a security
interest shall release the transferor Lender of its obligations hereunder or
under any other Loan Document.

          10.12 Confidentiality.

                    10.12.1 General.

                    The Agent and the Lenders each agree to keep confidential
all information obtained from any Loan Party or its Subsidiaries which is
nonpublic and confidential or proprietary in nature (including any information
the Borrower specifically designates as confidential), except as provided below,
and to use such information only in connection with their respective capacities
under this Agreement and for the purposes contemplated hereby. The Agent and the
Lenders shall be permitted to disclose such information (i) to outside legal
counsel, accountants and other professional advisors who need to know such
information in connection with the administration and enforcement of this
Agreement, subject to agreement of such Persons to maintain the confidentiality,
(ii) to Moody’s, Standard & Poor’s and similar rating agencies, (iii) to
assignees and participants as contemplated by Section 10.11 [Successors and
Assigns], and prospective assignees and participants subject to an agreement of
such Persons to maintain the confidentiality, (iv) to the extent requested by
any bank regulatory authority or, with notice to the Borrower, as otherwise
required by applicable Law or by any subpoena or similar legal process, or in
connection with any investigation or proceeding arising out of the transactions
contemplated by this Agreement, (v) if it becomes publicly available other than
as a result of a breach of this Agreement or becomes available from a source not
known to be subject to confidentiality restrictions, or (vi) if the Borrower
shall have consented to such disclosure.

                    10.12.2 Sharing Information With Affiliates of the Lenders.

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                    Each Loan Party a party hereto acknowledges that from time
to time financial advisory, investment banking and other services (including the
provision of swaps, derivatives, securitizations or other financial products)
may be offered or provided to the Borrower or one or more of its Affiliates (in
connection with this Agreement or otherwise) by any Lender or by one or more
Subsidiaries or Affiliates of such Lender and each of the Loan Parties a party
hereto hereby authorizes each Lender to share any information delivered to such
Lender by such Loan Party and its Subsidiaries pursuant to this Agreement, or in
connection with the decision of such Lender to enter into this Agreement, to any
such Subsidiary or Affiliate of such Lender, it being understood that any such
Subsidiary or Affiliate of any Lender receiving such information shall be bound
by the provisions of Section 10.12 [Confidentiality] as if it were a Lender
hereunder. Such Authorization shall survive the repayment of the Loans and other
Obligations and the termination of the Commitments.

          10.13 Counterparts.

          This Agreement may be executed by different parties hereto on any
number of separate counterparts, each of which, when so executed and delivered,
shall be an original, and all such counterparts shall together constitute one
and the same instrument.

          10.14 Agent’s or Lender’s Consent.

          Whenever the Agent’s or any Lender’s consent is required to be
obtained under this Agreement or any of the other Loan Documents as a condition
to any action, inaction, condition or event, unless specifically otherwise
provided herein, the Agent and each Lender shall be authorized to give or
withhold such consent in its sole and absolute discretion and to condition its
consent upon the giving of additional collateral, the payment of money or any
other matter.

          10.15 Exceptions.

          The representations, warranties and covenants contained herein shall
be independent of each other, and no exception to any representation, warranty
or covenant shall be deemed to be an exception to any other representation,
warranty or covenant contained herein unless expressly provided, nor shall any
such exceptions be deemed to permit any action or omission that would be in
contravention of applicable Law.

          10.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL.

          EACH LOAN PARTY A PARTY HERETO HEREBY IRREVOCABLY CONSENTS TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND WAIVES PERSONAL
SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF
PROCESS BE MADE BY CERTIFIED OR REGISTERED MAIL DIRECTED TO SUCH LOAN PARTY AT
THE ADDRESSES PROVIDED FOR IN SECTION 10.6 [NOTICES] AND SERVICE SO MADE SHALL
BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. EACH LOAN PARTY A PARTY
HERETO WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED
AGAINST IT AS PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE BASED ON LACK
OF JURISDICTION OR VENUE. EACH LOAN PARTY A PARTY HERETO, THE AGENT AND THE
LENDERS HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR
COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY OTHER
LOAN DOCUMENT OR ANY COLLATERAL TO THE FULL EXTENT PERMITTED BY LAW.

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          10.17 Certifications From Lenders and Participants.

                    10.17.1 Tax Withholding Clause.

                    Each Lender or assignee or participant of a Lender that is
not incorporated under the Laws of the United States of America or a state
thereof (and, upon the written request of the Agent, each other Lender or
assignee or participant of a Lender) agrees that it will deliver to each of the
Borrower and the Agent two (2) duly completed appropriate valid Withholding
Certificates (as defined under §1.1441-1(c)(16) of the Income Tax Regulations
(“Regulations”)) certifying its status (i.e., U.S. or foreign person) and, if
appropriate, making a claim of reduced, or exemption from, U.S. withholding tax
on the basis of an income tax treaty or an exemption provided by the Internal
Revenue Code. Such delivery may be made by electronic transmission as described
in §1.1441-1(e)(4)(iv) of the Regulations if the Agent establishes an electronic
delivery system. The term “Withholding Certificate” means a Form W-9; a Form
W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and
certifications as required under §1.1441-1(e)(3) of the Regulations; a statement
described in §1.871-14(c)(2)(v) of the Regulations; or any other certificates
under the Code or Regulations that certify or establish the status of a payee or
beneficial owner as a U.S. or foreign person. Each Lender, assignee or
participant required to deliver to the Borrower and the Agent a valid
Withholding Certificate pursuant to the preceding sentence shall deliver such
valid Withholding Certificate as follows: (A) each Lender which is a party
hereto on the Closing Date shall deliver such valid Withholding Certificate at
least five (5) Business Days prior to the first date on which any interest or
fees are payable by the Borrower hereunder for the account of such Lender; (B)
each assignee or participant shall deliver such valid Withholding Certificate at
least five (5) Business Days before the effective date of such assignment or
participation (unless the Agent in its sole discretion shall permit such
assignee or participant to deliver such Withholding Certificate less than five
(5) Business Days before such date in which case it shall be due on the date
specified by the Agent). Each Lender, assignee or participant which so delivers
a valid Withholding Certificate further undertakes to deliver to each of the
Borrower and the Agent two (2) additional copies of such Withholding Certificate
(or a successor form) on or before the date that such Withholding Certificate
expires or becomes obsolete or after the occurrence of any event requiring a
change in the most recent Withholding Certificate so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Agent. Notwithstanding the submission of a
Withholding Certificate claiming a reduced rate of, or exemption from, United
States withholding tax, the Agent shall be entitled to withhold United States
federal income taxes at the full 30% withholding rate if in its reasonable
judgment it is required to do so under the due diligence requirements imposed
upon a withholding agent under §1.1441-7(b) of the Regulations. Further, the
Agent is indemnified under §1.1461-1(e) of the Regulations against any claims
and demands of any Lender or assignee or participant of a Lender for the amount
of any tax it deducts and withholds in accordance with regulations under §1441
of the Internal Revenue Code.

                    10.17.2 USA PATRIOT Act.

                    Each Lender or assignee or participant of a Lender that is
not incorporated under the Laws of the United States of America or a state
thereof (and is not excepted from the certification requirement contained in
Section 313 of the USA Patriot Act and the applicable regulations because it is
both (i) an affiliate of a depository institution or foreign Lender that
maintains a physical presence in the United States or foreign country, and (ii)
subject to supervision by a banking authority regulating such affiliated
depository institution or foreign bank) shall deliver to the Agent the
certification, or, if applicable, recertification, certifying that such Lender
is not a “shell” and certifying to other matters as required by Section 313 of
the USA Patriot Act and the applicable regulations: (1) within 10 days after the
Closing Date, and (2) as such other times as are required under the USA Patriot
Act.

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          10.18 Joinder of Guarantors.

          Any Subsidiary of Hovnanian which is required to join the Guaranty
Agreement as a Guarantor pursuant to Section 7.2.7 [Subsidiaries, Partnerships
and Joint Ventures] or which is to become, a Restricted Subsidiary shall execute
and deliver to the Agent or the Agent’s counsel (i) a Guarantor Joinder pursuant
to which it shall join as a Guarantor the Guaranty Agreement; and (ii) at the
request of the Agent or its counsel, documents in the forms described in Section
6.1 [First Loans and Letters of Credit] modified as appropriate to relate to
such new Guarantor. Hovnanian and Borrower shall deliver such Guarantor Joinder
and any related documents that the Agent or its counsel may reasonably request
to the Agent or its counsel after the formation thereof and its designation as a
Restricted Subsidiary; such Subsidiary shall not be a Restricted Subsidiary
until the delivery and effectiveness of the items required herein.

          10.19 Concerning Agent Terms.

          Notwithstanding anything contained herein which may be construed to
the contrary, none of the Syndication Agents, the Documentation Agents,
Co-Managing Agents and the Joint Lead Arrangers and Joint Book Runners shall
exercise any of the rights or have any of the responsibilities of the Agent
hereunder, or any other rights or responsibilities other than their respective
rights and responsibilities (if any) as Lenders hereunder.

          10.20 Ratification of Notes and Loan Documents and Existing
Obligations.

          This Agreement amends and restates, and supersedes, the Prior Credit
Agreement and is in no way intended to constitute a novation of the
“Obligations” under the Prior Credit Agreement. On the date this Agreement
becomes effective, and subject to the satisfaction (or waiver by Agent in its
sole discretion) of all applicable conditions to advances hereunder, all sums
owing under the Prior Credit Agreement and the Loan Documents thereunder shall
be deemed to be outstanding and owing under, evidenced by, and governed by the
terms of this Agreement, the new Notes, and the other Loan Documents.

          10.21 No Reliance on Agent’s Customer Identification Program.

          Each Lender acknowledges and agrees that neither such Lender, nor any
of its Affiliates, participants or assignees, may rely on the Agent to carry out
such Lender’s, Affiliate’s, participant’s or assignee’s customer identification
program, or other obligations required or imposed under or pursuant to the USA
Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or
any other Anti-Terrorism Law, including any programs involving any of the
following items relating to or in connection with any of the Loan Parties, their
Affiliates or their agents, the Loan Documents or the transactions hereunder or
contemplated hereby: (1) any identity verification procedures, (2) any
recordkeeping, (3) comparisons with government lists, (4) customer notices or
(5) other procedures required under the CIP Regulations or such other Laws.

[THIS SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT HAS BEEN AGREED TO BY THE
BORROWER, HOVNANIAN, AGENT, AND LENDERS PURSUANT TO AN AMENDMENT, DATED AS OF
MARCH 7, 2008, TO WHICH THIS AGREEMENT IS EXHIBIT I]

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AMENDMENT

          THIS AMENDMENT (the “Amendment”) is dated as of March 7, 2008, and is
made by and among K. HOVNANIAN ENTERPRISES, INC., a California corporation
(“Borrower”), HOVNANIAN ENTERPRISES INC., a Delaware corporation (“Hovnanian”),
the Lenders party to the Sixth Credit Agreement (defined below), and PNC BANK,
NATIONAL ASSOCIATION, as Agent (“Agent”).

WITNESSETH:

          WHEREAS, Borrower, Hovnanian, the Agent and the Lenders (as defined in
the Credit Agreement, the “Lenders”) are party to that certain Sixth Amended and
Restated Credit Agreement dated as of May 31, 2006 (as heretofore amended,
restated, waived, supplemented or modified, the “Sixth Credit Agreement”);

          WHEREAS, Borrower, Hovnanian, the Lenders and the Agent desire to
amend the Sixth Credit Agreement as set forth in Exhibit I hereto, subject to
the terms and conditions hereof;

          NOW, THEREFORE, the parties hereto, and in consideration of their
mutual covenants and agreements hereinafter set forth and intending to be
legally bound hereby, covenant and agree as follows:

11. Definitions.

          Defined terms used herein unless otherwise defined herein shall have
the meanings ascribed to them in the Seventh Credit Agreement (defined below).

12. Amendment and Restatement of Credit Agreement and Related Matters.

          The Sixth Credit Agreement and each of the Schedules and Exhibits
thereto and each of the “Loan Documents” (as defined therein) are hereby amended
and restated in their entirety as set forth on Exhibit I hereto and by the Loan
Documents (as defined in the Seventh Credit Agreement) (the “Seventh Credit
Agreement”).

13. Effective Date; Certification of the Borrower.

          This Amendment shall be binding, effective and enforceable upon the
date (the “Effective Date”) of receipt by the Agent of duly executed
counterparts of this Amendment from the Borrower, Hovnanian and the Required
Lenders.

14. Governing Law.

          THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

15. Consent to Jurisdiction.

          Each of the Borrower and Hovnanian (i) hereby irrevocably submits to
the nonexclusive jurisdiction of the courts of the State of New York, and to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York, or any successor to said court (hereinafter referred to as
the “New York Courts”) for purposes of any suit, action or other proceeding
which relates to this Amendment, (ii) to the extent permitted by applicable Law,
hereby waives and agrees not to assert by way of motion, as a defense or
otherwise in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of the New York Courts, that such suit,
action or proceeding is brought in an inconvenient forum, that the venue of such
suit, action or proceeding is improper, or that this Amendment or any Loan
Document may not be enforced in or by the New York Courts, (iii) hereby agrees
not to seek, and hereby waives, any collateral review by any other court, which
may be called upon to enforce the judgment of any of the New York Courts, of the
merits of any such suit, action or proceeding or the jurisdiction of the New
York Courts, and (iv) waives personal service of any and all process upon it and
consents that all such service of process be made by certified or registered
mail addressed to such party as provided in Schedule 1.1(B) to the Seventh
Credit Agreement and service so made shall be deemed to be completed upon actual
receipt thereof. Nothing herein shall limit any Lender’s right to bring any
suit, action or other proceeding against the Borrower or Hovnanian or any their
respective assets or to serve process on Borrower or Hovnanian by any means
authorized by Law.

16. No Novation.

          Each of the Loan Parties and Lenders acknowledge and agree that the
amendment and restatement of the Sixth Credit Agreement and the other loan
documents related thereto by or in connection with this Amendment is not
intended to constitute, nor does it constitute, a novation, interruption,
suspension of continuity, satisfaction, discharge or termination of the
obligations, loans, liabilities, or indebtedness under the Sixth Credit
Agreement or any of the other loan documents related thereto. The Sixth Credit
Agreement, and the other loan documents related thereto, prior to giving effect
to this Amendment, have at all times, since the date of their respective
original execution and delivery, remained in full force and effect.

17. Prior Understanding.

          This Amendment and the Seventh Credit Agreement and the Loan Documents
supersede all prior understandings and agreements, whether written or oral,
between the parties hereto and thereto relating to the transactions provided for
herein or in the Seventh Credit Agreement or the Loan Documents, excluding the
Fee Letter as defined in the Seventh Credit Agreement.

18. Counterpart; Telecopy Signatures.

          This Amendment may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which, when so
executed, shall be deemed an original, but all such counterparts shall
constitute one and the same instrument. Each party hereto acknowledges and
agrees that a telecopy or electronic (i.e., “e-mail” or “portable document
format” (“pdf”)) transmission to the Agent of the signature pages hereof
purporting to be signed on behalf of such party shall constitute effective and
binding execution and delivery hereof by such party.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

--------------------------------------------------------------------------------

[SIGNATURE PAGE 1 OF 28 TO AMENDMENT]

          IN WITNESS WHEREOF, the undersigned have executed this Amendment on
the date first written.

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

Kevin C. Hake

 

Title:

Senior Vice President and Treasurer

--------------------------------------------------------------------------------

[SIGNATURE PAGE 2 OF 28 TO AMENDMENT]

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION

 

as Agent and as a Lender

 

 

 

By: 

 

 

 

--------------------------------------------------------------------------------

 

Name: Douglas G. Paul

 

 

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 3 OF 28 TO AMENDMENT]

 

 

 

 

WACHOVIA BANK, NATIONAL ASSOCIATION

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: R. Scott Holtzapple

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 4 OF 28 TO AMENDMENT]

 

 

 

 

BANK OF AMERICA, N.A.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Stephen R. Carlson

 

Title: Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 5 OF 28 TO AMENDMENT]

 

 

 

 

JPMORGAN CHASE BANK, N.A.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Kimberly L. Turner

 

Title: Executive Director

--------------------------------------------------------------------------------

[SIGNATURE PAGE 6 OF 28 TO AMENDMENT]

 

 

 

 

THE ROYAL BANK OF SCOTLAND plc

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: William McGinty

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 7 OF 28 TO AMENDMENT]

 

 

 

 

KEYBANK NATIONAL ASSOCIATION

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: J. D. Gilbreath

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 8 OF 28 TO AMENDMENT]

 

 

 

 

GUARANTY BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Ross Evans

 

Title: Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 9 OF 28 TO AMENDMENT]

 

 

 

 

SUNTRUST BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

--------------------------------------------------------------------------------

[SIGNATURE PAGE 10 OF 28 TO AMENDMENT]

 

 

 

 

U.S. BANK NATIONAL ASSOCIATION

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Michael Raarup

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 11 OF 28 TO AMENDMENT]

 

 

 

 

BNP PARIBAS

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Berangere Allen

 

Title: Vice President

 

 

 

and

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Walter Kaplan

 

Title: Managing Director

--------------------------------------------------------------------------------

[SIGNATURE PAGE 12 OF 28 TO AMENDMENT]

 

 

 

 

CALYON NEW YORK BRANCH

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Robert Smith

 

Title: Managing Director

 

 

 

and

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Brian Myers

 

Title: Managing Director

--------------------------------------------------------------------------------

[SIGNATURE PAGE 13 OF 28 TO AMENDMENT]

 

 

 

 

COMERICA BANK

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Charles Weddell

 

Title: Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 14 OF 28 TO AMENDMENT]

 

 

 

 

WASHINGTON MUTUAL BANK, FA

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

--------------------------------------------------------------------------------

[SIGNATURE PAGE 15 OF 28 TO AMENDMENT]

 

 

 

 

NATIONAL CITY BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Sean Apicella

 

Title: Assistant Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 16 OF 28 TO AMENDMENT]

 

 

 

 

CITICORP NORTH AMERICA, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Mark Floyd

 

Title: Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 17 OF 28 TO AMENDMENT]

 

 

 

 

SOVEREIGN BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: T. Gregory Donohue

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 18 OF 28 TO AMENDMENT]

 

 

 

 

REGIONS BANK, formerly AmSouth Bank

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Ronny Hudspeth

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 19 OF 28 TO AMENDMENT]

 

 

 

 

UNION BANK OF CALIFORNIA, N.A.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

--------------------------------------------------------------------------------

[SIGNATURE PAGE 20 OF 28 TO AMENDMENT]

 

 

 

 

CREDIT SUISSE, CAYMAN ISLANDS BRANCH

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Mikhail Faybusovich

 

Title: Vice President

 

 

 

and

 

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Laurence Lapeyre

 

Title: Associate

--------------------------------------------------------------------------------

[SIGNATURE PAGE 21 OF 28 TO THE AMENDMENT]

 

 

 

 

UBS LOAN FINANCE LLC

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Irja B. Otsa

 

Title: Associate Director, Banking Products Services, US

 

 

 

and

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Richard L. Tavrow

 

Title: Director, Banking Products Services, US

--------------------------------------------------------------------------------

[SIGNATURE PAGE 22 OF 28 TO AMENDMENT]

 

 

 

 

LASALLE BANK NATIONAL ASSOCIATION

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Stephen B. Carlson

 

Title: Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 23 OF 28 TO AMENDMENT]

 

 

 

 

CITY NATIONAL BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Mary Bowman

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 24 OF 28 TO AMENDMENT]

 

 

 

 

CALIFORNIA BANK & TRUST

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

--------------------------------------------------------------------------------

[SIGNATURE PAGE 25 OF 28 TO AMENDMENT]

 

 

 

 

COMPASS BANK

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Johanna Duke Paley

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 26 OF 28 TO AMENDMENT]

 

 

 

 

NATIXIS, formerly known as Natexis Banques
Populaires

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Marie-Edith Dugeny

 

Title: Managing Director

 

 

 

and

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Zineb Bouazzaoui

 

Title: Associate

--------------------------------------------------------------------------------

[SIGNATURE PAGE 27 OF 28 TO AMENDMENT]

 

 

 

 

NORTH FORK BANK
A DIVISION OF CAPITAL ONE, N.A.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Philip Davi

 

Title: Senior Vice President

--------------------------------------------------------------------------------

[SIGNATURE PAGE 28 OF 28 TO AMENDMENT]

 

 

ACCEPTED AND AGREED:

 

 

HOVNANIAN ENTERPRISES, INC.

          as a Guarantor

 

 

By:

 

 

--------------------------------------------------------------------------------

Name: Kevin C. Hake

Title: Senior Vice President and Treasurer

--------------------------------------------------------------------------------

SCHEDULE 1.1(A)(1)

K. HOVNANIAN ENTERPRISES, INC.
PRICING GRID & FEES

(expressed in basis points)

Pricing Grid:

 

 

 

 

 

 

 

 

 

 

 

 

Tier

 

Adjusted Leverage
Ratio

 

LIBOR
Margin

 

Base Rate
Margin

 

Index Rate Margin

 

Commitment Fee

I

 

< 1.75x

 

200

 

25

 

 

212.5

 

25

II

 

> 1.75x - < 2.00x

 

250

 

75

 

 

262.5

 

30

III

 

> 2.00x - < 2.25x

 

275

 

100

 

 

287.5

 

35

IV

 

> 2.25x

 

350

 

150

 

 

362.5

 

55

The Applicable Margin, Applicable Commitment Fee Rate, Applicable Letter of
Credit Fee Rate, and other pricing relating to the Pricing Grid above shall be
recomputed as of the end of each fiscal quarter, commencing with the fiscal
quarter of Borrower ending January 31, 2008, based on the Adjusted Leverage
Ratio as of such quarter end. Any increase or decrease in the Applicable Margin,
the Applicable Commitment Fee Rate, the Applicable Letter of Credit Fee Rate or
other pricing relating to the Pricing Grid above computed as of a quarter end
shall be effective on the date on which the Compliance Certificate evidencing
such computation is due to be delivered under Section 7.3.3.1(a) [Compliance
Certificate]; provided, however, that until a Compliance Certificate with
respect to the fiscal quarter ending January 31, 2008, has been delivered in
accordance with Section 7.3.3.1(a), the Applicable Margin, Applicable Commitment
Fee Rate, Applicable Letter of Credit Fee Rate, and other pricing relating to
the Pricing Grid above shall be at Tier III as set forth in the Pricing Grid
above.

--------------------------------------------------------------------------------

SCHEDULE 1.1(A)(2)

AUTHORIZED OFFICERS AS THE CLOSING DATE

J. Larry Sorsby, Executive Vice-President and Chief Financial Officer
Peter S. Reinhart, Senior Vice-President, General Counsel and Secretary
Kevin C. Hake, Senior Vice-President - Finance and Treasurer
Michael Discafani, Assistant Secretary

--------------------------------------------------------------------------------

SCHEDULE 1.1(B)

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

Part 1 — Addresses Commitments of Lenders and Addresses for Notices to Lenders

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

Lender Name (also Agent):

 

$58,800,000.00

 

6.533333333%

PNC Bank, National Association

 

 

 

 

Address for Notices:

 

 

 

 

Two Tower Center, 18th Floor

 

 

 

 

E. Brunswick, NJ 08816

 

 

 

 

Attention:

Douglas G. Paul

 

 

 

 

Telephone:

(732) 220-3566

 

 

 

 

Telecopy:

(732) 220-3744

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

PNC Firstside Center

 

 

 

 

500 First Avenue, 4th Floor

 

 

 

 

Pittsburgh, PA 15219

 

 

 

 

Attention:

Rini Davis

 

 

 

 

Telephone:

(412) 762-7638

 

 

 

 

Telecopy:

(412) 762-8672

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$75,000,000.00

 

8.333333333%

Bank of America, N.A.

 

 

 

 

Address for Notices:

 

 

 

 

231 S. LaSalle Street

 

 

 

 

Mail Code IL 1-231-10-35

 

 

 

 

Chicago, IL 60697

 

 

 

 

Attention:

Stephen B. Carlson

 

 

 

 

Telephone:

(312) 828-6405

 

 

 

 

Telecopy:

(312) 974-4970

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

901 Main Street

 

 

 

 

14th Floor

 

 

 

 

Dallas, TX 75202

 

 

 

 

Attention:

Eldred Sholars

 

 

 

 

Telephone:

(214) 209-3044

 

 

 

 

Telecopy:

(214) 290-9429

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

Lender Name:

 

$75,000,000.00

 

8.333333333%

Wachovia Bank, National Association

 

 

 

 

Address for Notices:

 

 

 

 

Commercial Real Estate Group

 

 

 

 

2840 Morris Avenue; 3rd Floor

 

 

 

 

Union, NJ 07083

 

 

 

 

Attention:

John Powers

 

 

 

 

Telephone:

(908) 624-2857

 

 

 

 

Telecopy:

(908) 624-2870

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

Commercial Real Estate Group 2840 Morris

 

 

 

 

Avenue; 3rd Floor Union, NJ 07083

 

 

 

 

Attention:

John Powers

 

 

 

 

Telephone:

(908) 624-2857

 

 

 

 

Telecopy:

(908) 624-2870

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$57,900,000.00

 

$6.433333333%

JPMorgan Chase Bank, N.A.

 

 

 

 

Address for Notices:

 

 

 

 

277 Park Avenue, Floor 3

 

 

 

 

New York, NY 10172

 

 

 

 

Attention:

Kimberly Turner

 

 

 

 

Telephone:

(212) 622-8177

 

 

 

 

Telecopy:

(646) 534-0574

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

277 Park Avenue, Floor 3

 

 

 

 

New York, NY 10172

 

 

 

 

Attention:

Donald Shokrian

 

 

 

 

Telephone:

(212) 622-2166

 

 

 

 

Telecopy:

(646) 534-0574

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$57,900,000.00

 

$6.433333333%

The Royal Bank of Scotland plc

 

 

 

 

Address for Notices:

 

 

 

 

101 Park Avenue

 

 

 

 

New York, NY 10178

 

 

 

 

Attention:

David Apps

 

 

 

 

Telephone:

(212) 401-3745

 

 

 

 

Telecopy:

(212) 401-3456

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

101 Park Avenue

 

 

 

 

New York, NY 10178

 

 

 

 

Attention:

Devia Anand

 

 

 

 

Telephone:

(212) 401-3552

 

 

 

 

Telecopy:

(212) 401-3456

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$43,800,000.00

 

4.866666667%

KeyBank National Association

 

 

 

 

Address for Notices

 

 

 

 

1200 Abernathy Road, Suite 1550

 

 

 

 

Atlanta, GA 30328

 

 

 

 

Attention:

Jeff V. Aycock

 

 

 

 

Telephone:

(770) 510-2105

 

 

 

 

Telecopy:

(770) 510-2195

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

KeyBank Real Estate Capital

 

 

 

 

1200 Abernathy Road, Suite 1550

 

 

 

 

Atlanta, GA 30328

 

 

 

 

Attention:

Jacky Krieger

 

 

 

 

Telephone:

(770) 510-2109

 

 

 

 

Telecopy:

(770) 510-2195

 

 

 

 

 

Lender Name:

 

$43,800,000.00

 

4.866666667%

SunTrust Bank

 

 

 

 

Address for Notices:

 

 

 

 

8245 Boone Boulevard

 

 

 

 

Suite 820

 

 

 

 

Vienna, VA 22182

 

 

 

 

Attention:

John Wendler

 

 

 

 

Telephone:

(703) 442-1563

 

 

 

 

Telecopy:

(703) 442-1570

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

10710 Midlothian Turnpike

 

 

 

 

Richmond, VA 23235

 

 

 

 

Attn:

DeCar Jeter

 

 

 

 

Telephone:

(804) 594-1072

 

 

 

 

Telecopy:

(804) 594-1139

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

Lender Name:

 

$34,200,000.00

 

3.800000000%

Guaranty Bank

 

 

 

 

Address for Notices:

 

 

 

 

8333 Douglas Avenue

 

 

 

 

Dallas, TX 75225

 

 

 

 

Attention:

Dustin Ortmann

 

 

 

 

Telephone:

(214) 360-2672

 

 

 

 

Telecopy:

(214) 360-4892

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

8333 Douglas Avenue

 

 

 

 

Dallas, TX 75225

 

 

 

 

Attention:

Juanita Vidal

 

 

 

 

Telephone:

(214) 360-1632

 

 

 

 

Telecopy:

(214) 360-4852

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

U.S. Bank National Association

 

 

 

 

Address for Notices:

 

 

 

 

US Bancorp

 

 

 

 

Commercial Real Estate

 

 

 

 

800 Nicollet Mall, 3rd Floor

 

 

 

 

Minneapolis, MN 55402-7020

 

 

 

 

Attention:

Leslie Lynch

 

 

 

 

Telephone:

(612) 303-3595

 

 

 

 

Telecopy:

(612) 303-2270

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

U.S. Bank National Association

 

 

 

 

800 Nicollet Mall

 

 

 

 

Minneapolis, MN 55402

 

 

 

 

Attention:

Michael Raarup

 

 

 

 

Telephone:

(612) 303-3586

 

 

 

 

Telecopy:

(612) 303-2270

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$43,800,000.00

 

4.866666667%

BNP PARIBAS

 

 

 

 

Address for Notices:

 

 

 

 

787 Seventh Avenue

 

 

 

 

New York, NY 10019

 

 

 

 

Attention:

Duane Helkowski

 

 

 

 

Telephone:

(212) 841-2940

 

 

 

 

Telecopy:

(212) 841-3830

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

787 Seventh Avenue

 

 

 

 

New York, NY 10019

 

 

 

 

Attention:

Wei Monaghan

 

 

 

 

Telephone:

(212) 841-2980

 

 

 

 

Telecopy:

(212) 841-2745

 

 

 

 

 

 

 

 

 

Lender Name:

 

$43,800,000.00

 

4.866666667%

CALYON New York Branch

 

 

 

 

Address for Notices:

 

 

 

 

2200 Ross Avenue, Suite 4400 West

 

 

 

 

Dallas, TX 75201

 

 

 

 

Attention:

Robert Smith

 

 

 

 

Telephone:

(214) 220-2311

 

 

 

 

Telecopy:

(214) 220-2323

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

2200 Ross Avenue, Suite 4400 West

 

 

 

 

Dallas, TX 75201

 

 

 

 

Attention:

Darren Abrams

 

 

 

 

Telephone:

(214) 220-2312

 

 

 

 

Telecopy:

(214) 220-2323

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

Comerica Bank

 

 

 

 

Address for Notices:

 

 

 

 

500 Woodward Avenue MC 3256

 

 

 

 

Detroit, MI 48226

 

 

 

 

Attention:

Charles Weddell

 

 

 

 

Telephone:

(313) 222-3323

 

 

 

 

Telecopy:

(313) 222-9295

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

500 Woodward Avenue MC 3256

 

 

 

 

Detroit, MI 48226

 

 

 

 

Attention:

Keshia Boone

 

 

 

 

Telephone:

(313) 222-9284

 

 

 

 

Telecopy:

(313) 222-3697

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$27,000,000.00

 

3.000000000%

Washington Mutual Bank

 

 

 

 

Address for Notices:

 

 

 

 

3929 W. John Carpenter Freeway

 

 

 

 

Suite 100

 

 

 

 

Irving, TX 75063

 

 

 

 

Attention:

Brad Johnson

 

 

 

 

Telephone:

(214) 492-4377

 

 

 

 

Telecopy:

(972) 870-3603

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

620 W. Germantown Pike Suite 200

 

 

 

 

Plymouth Meeting, PA 19462

 

 

 

 

Attention:

Chris Heckman

 

 

 

 

Telephone:

(610) 238-6940

 

 

 

 

Telecopy:

(610) 828-9657

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

Citicorp North America, Inc.

 

 

 

 

Address for Notices:

 

 

 

 

390 Greenwich Street

 

 

 

 

New York, NY 10013

 

 

 

 

Attention:

Jeanne M. Craig

 

 

 

 

Telephone:

(212) 723-9229

 

 

 

 

Telecopy:

(212) 723-8547

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

390 Greenwich Street

 

 

 

 

New York, NY 10013

 

 

 

 

Attention:

Michelle J. Liu

 

 

 

 

Telephone:

(212) 723-4709

 

 

 

 

Telecopy:

(646) 291-3705

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

National City Bank

 

 

 

 

Address for Notices:

 

 

 

 

One South Broad Street

 

 

 

 

14th Floor

 

 

 

 

Philadelphia, PA 19107-3304

 

 

 

 

Attention:

Brian Gallagher

 

 

 

 

Telephone:

(267) 256-4088

 

 

 

 

Telecopy:

(267) 256-4001

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

One South Broad Street, 14th Floor

 

 

 

 

Philadelphia, PA 19107-3304

 

 

 

 

Attention:

William J Lloyd

 

 

 

 

Telephone:

(267) 256-4059

 

 

 

 

Telecopy:

(267) 256-4001

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$21,000,000.00

 

2.333333333%

Sovereign Bank

 

 

 

 

Address for Notices:

 

 

 

 

75 State Street

 

 

 

 

Mail Code MA1 SST 04-11

 

 

 

 

Boston, MA 02109

 

 

 

 

Attention:

T. Gregory Donohue

 

 

 

 

Telephone:

(617) 757-5578

 

 

 

 

Telecopy:

(617) 757-5653

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

75 State Street

 

 

 

 

Mail Code MA1 SST 04-11

 

 

 

 

Boston, MA 02109

 

 

 

 

Attention:

Erin Aslakson

 

 

 

 

Telephone:

(617) 757-5564

 

 

 

 

Telecopy:

(617) 757-5652

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$24,000,000.00

 

2.666666667%

Regions Bank, formerly AmSouth Bank

 

 

 

 

Address for Notices:

 

 

 

 

1900 5th Avenue North

 

 

 

 

Mail Code BAC 15

 

 

 

 

Birmingham, AL 35203

 

 

 

 

Attention:

Ronny Hudspeth

 

 

 

 

Telephone:

(205) 307-4227

 

 

 

 

Telecopy:

(205) 801-0138

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

1900 5th Avenue North

 

 

 

 

Mail Code BAC 15

 

 

 

 

Birmingham, AL 35203

 

 

 

 

Attention:

Daniel McClurkin

 

 

 

 

Telephone:

(205) 264-4109

 

 

 

 

Telecopy:

(205) 801-0138

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$18,000,000.00

 

2.000000000%

Union Bank of California, N.A.

 

 

 

 

Address for Notices:

 

 

 

 

350 California Street, 7th Floor

 

 

 

 

San Francisco, CA 94104

 

 

 

 

Attention:

Gary Roberts

 

 

 

 

Telephone:

(415) 705-5035

 

 

 

 

Telecopy:

(415) 433-7438

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

350 California Street, 7th Floor

 

 

 

 

San Francisco, CA 94104

 

 

 

 

Attention:

Gary Roberts

 

 

 

 

Telephone:

(415) 705-5035

 

 

 

 

Telecopy:

(415) 433-7438

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

Credit Suisse, Cayman Islands Branch

 

 

 

 

Address for Notices:

 

 

 

 

Eleven Madison Avenue

 

 

 

 

New York, NY 10010

 

 

 

 

Attention:

William O’Daly

 

 

 

 

Telephone:

(212) 325-1986

 

 

 

 

Telecopy:

(212) 743-2254

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

One Madison Avenue

 

 

 

 

New York, NY 10010

 

 

 

 

Attention:

Ed Markowski

 

 

 

 

Telephone:

(212) 538-3380

 

 

 

 

Telecopy:

(212) 325-9049

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$30,000,000.00

 

3.333333333%

UBS Loan Finance LLC

 

 

 

 

Address for Notices:

 

 

 

 

UBS AG, Stamford Branch

 

 

 

 

677 Washington Blvd., 6-South

 

 

 

 

Stamford, CT 06901

 

 

 

 

Attention:

Wilfred Saint

 

 

 

 

Telephone:

(203) 719-4330

 

 

 

 

Telecopy:

(203) 719-3888

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

UBS AG, Stamford Branch

 

 

 

 

677 Washington Blvd., 6-South

 

 

 

 

Stamford, CT 06901

 

 

 

 

Attention:

Anthony Finocchi

 

 

 

 

Telephone:

(203) 719-3377

 

 

 

 

Telecopy:

(203) 719-3888

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$21,000,000.00

 

2.333333333%

LaSalle Bank National Association

 

 

 

 

Address for Notices:

 

 

 

 

620 Newport Center Drive

 

 

 

 

Suite 900

 

 

 

 

Newport Beach, CA 92660

 

 

 

 

Attention:

Leticia Ruiz

 

 

 

 

Telephone:

(949) 219-8968

 

 

 

 

Telecopy:

(949) 219-8977

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

620 Newport Center Drive Suite 900

 

 

 

 

Newport Beach, CA 92660

 

 

 

 

Attention:

Russ Ruhnke

 

 

 

 

Telephone:

(949) 219-8967

 

 

 

 

Telecopy:

(313) 904-6691

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$15,000,000.00

 

1.666666667%

City National Bank

 

 

 

 

Address for Notices:

 

 

 

 

2001 N. Main Street, Suite 200

 

 

 

 

Walnut Creek, CA 94596

 

 

 

 

Attention:

Mary Bowman

 

 

 

 

Telephone:

(925) 274-2793

 

 

 

 

Telecopy:

(925) 274-2758

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

2001 N. Main Street, Suite 200

 

 

 

 

Walnut Creek, CA 94596

 

 

 

 

Attention:

Xavier Barrera

 

 

 

 

Telephone:

(925) 274-2783

 

 

 

 

Telecopy:

(925) 274-2758

 

 

 

 

 

 

 

 

 

Lender Name:

 

$12,000,000.00

 

1.333333333%

California Bank & Trust

 

 

 

 

Address for Notices:

 

 

 

 

2929 N. Central Avenue Suite 1200

 

 

 

 

Phoenix, AZ 85012

 

 

 

 

Attention:

Stephanie L. Lantz

 

 

 

 

Telephone:

(602) 241-2227

 

 

 

 

Telecopy:

(602) 230-1345

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

2929 N. Central Avenue Suite 1200

 

 

 

 

Phoenix, AZ 85012

 

 

 

 

Attention:

Stephanie L. Lanty

 

 

 

 

Telephone:

(602) 241-2227

 

 

 

 

Telecopy:

(602) 230-1345

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender Name:

 

$12,000,000.00

 

1.333333333%

Compass Bank

 

 

 

 

Address for Notices:

 

 

 

 

15 South 20th Street, 15th Floor

 

 

 

 

Birmingham, AL 35233

 

 

 

 

Attention:

Johanna Duke Paley

 

 

 

 

Telephone:

(205) 297-3851

 

 

 

 

Telecopy:

(205) 297-7994

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

15 South 20th Street

 

 

 

 

Birmingham, AL 35233

 

 

 

 

Attention:

Jamie McClure

 

 

 

 

Telephone:

(205) 297-3297

 

 

 

 

Telecopy:

(205) 297-3901

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$21,000,000.00

 

2.333333333%

NATIXIS, formerly known as Natexis Banques Populaires

 

 

 

 

Address for Notices:

 

 

 

 

1251 Avenue of the Americas - 34th Floor

 

 

 

 

New York, NY 10020

 

 

 

 

Attention:

Marie-Edith Dugeny

 

 

 

 

Telephone:

(212) 872-5132

 

 

 

 

Telecopy:

(212) 354-9095

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

1251 Avenue of the Americas - 34th Floor

 

 

 

 

New York, NY 10020

 

 

 

 

Attention:

Zineb Bouazzaoui

 

 

 

 

Telephone:

(212) 872-5081

 

 

 

 

Telecopy:

(212) 354-9095

 

 

 

 

 

 

 

 

 

 

Lender Name:

 

$15,000,000.00

 

1.666666667%

North Fork Bank

 

 

 

 

Address for Notices:

 

 

 

 

275 Broadhollow Road

 

 

 

 

Melville, NY 11747

 

 

 

 

Attention:

Philip A. Davi

 

 

 

 

Telephone:

(631) 531-2388

 

 

 

 

Telecopy:

(631) 531-2752

 

 

 

 

 

 

 

 

 

 

Address of Lending Office:

 

 

 

 

275 Broadhollow Road

 

 

 

 

Melville, NY 11747

 

 

 

 

Attention:

Enrico Panno

 

 

 

 

Telephone:

(631) 531-2395

 

 

 

 

Telecopy:

(631) 531-2752

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Lender

 

 

Amount of Commitment
for Revolving Credit
Loans

 

Ratable Share

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Total

 

 

$900,000,000.00

 

100.00%

--------------------------------------------------------------------------------

 

 

 

 

 

 

AGENT:

 

 

 

 

 

Name:

Douglas G. Paul, Senior Vice President

 

 

Address:

PNC Bank, National Association

 

 

 

Two Tower Center, 18th Floor

 

 

 

 

East Brunswick, NJ 08816

 

 

 

 

Telephone:

(732) 220-3566

 

 

 

 

Telecopy:

(732) 220-3744

 

 

 

 

 

 

 

 

 

 

BORROWER:

 

 

Name:

K. HOVNANIAN ENTERPRISES, INC.

 

 

Address:

110 West Front Street

 

 

 

 

 

Red Bank, NJ 07701

 

 

 

 

Attention:

Kevin C. Hake

 

 

 

 

Telephone:

(732) 747-7800

 

 

 

 

Telecopy:

(732) 747-6835

 

 

 

 

 

 

 

 

 

 

GUARANTORS:

 

 

 

 

Name:

[name of Guarantor]

 

 

 

 

Address:

c/o K. Hovnanian Enterprises, Inc.

 

 

 

110 West Front Street

 

 

 

 

 

Red Bank, NJ 07701

 

 

 

 

Attention:

Kevin C. Hake

 

 

 

 

Telephone:

(732) 747-7800

 

 

 

 

Telecopy:

(732) 747-6835

 

 

 

 

--------------------------------------------------------------------------------

SCHEDULE 1.1(C)

LISTING OF RESTRICTED SUBSIDIARIES, JOINT VENTURES AND NON-RESTRICTED
PERSONS AND CORPORATE OFFICE SUBSIDIARIES

Attached

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TYPE OF ENTITY

 

ENTITY NAME

 

STATE OF
FORMATION

 

PARENT NAME

 

% (IF NOT
LISTED
THEN 100)

 

ADDITIONAL PARENT

 

% OF
ADDITIONAL
MEMBER

 

FEIN #

 

State ID #

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

OTHER; Joint Venture; LLC

 

JAEGER ROAD 530, L.L.C.

 

CA

 

K. Hovnanian Forecast Homes, Inc

 

50/50 voting, but more like 90/10 (Hov/AKT) in terms of equity invested

 

AKT Jaeger 530 LLC (commercial developer) and managing member

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

77 HUDSON STREET JOINT DEVELOPMENT, L.L.C.

 

DE

 

K. Hovnanian 77 Hudson Street Investments, L.L.C.

 

20%

 

Falcon Hudson, L.L.C. (Limited member)

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

BRIGHTON HOMES AT WALDEN MANAGEMENT, L.L.C.

 

DE

 

K. Hovnanian of Houston II, L.L.C.

 

50%

 

BHHO, ltd.

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

HOVSTONE HOLDINGS, L.L.C.

 

DE

 

K. Hovnanian T&C Investment, L.L.C.

 

20%

 

BRE/Hovstone, L.L.C.

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

HOVSTONE PROPERTIES FLORIDA, L.L.C.

 

DE

 

Hovstone Holdings, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

HOVSTONE PROPERTIES ILLINOIS, L.L.C.

 

DE

 

Hovestone Holdings, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

HOVSTONE PROPERTIES MINNESOTA, L.L.C.

 

DE

 

Hovestone Holdings, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

MSHOV HOLDING COMPANY, L.L.C.

 

DE

 

Hovnanian Land Investment Group of New Jersey, L.L.C.

 

20%

 

Morgan Stanley

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

NORTH MANATEE, L.L.C.

 

DE

 

MSHOV Holding Company, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

OLD CITY DELAWARE, L.L.C.

 

DE

 

Old City Joint Development, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

OLD CITY DEVELOPMENT, INC.

 

DE

 

Old City Joint Development, L.L.C.

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

PI INVESTMENTS I, L.L.C.

 

DE

 

K. Hovnanian Investments, L.L.C.

 

20%

 

Lehman

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

THOMPSON RANCH JOINT DEVELOPMENT, L.L.C.

 

DE

 

K. Hovnanian at Thompson Ranch, LLC

 

20%

 

Thompson Ranch-Santa Clarita, LLC

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

WOODMORE RESIDENTIAL, L.L.C.

 

DE

 

WTC Ventures, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

WTC VENTURES, L.L.C.

 

DE

 

Hovnanian Land Investment Group of Maryland, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

NRD, L.L.C.

 

FL

 

K. Hovnanian Windward Homes, LLC

 

50%

 

KB Home Tampa. LLC

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

INGLEWOOD NORTH, L.L.C.

 

MD

 

Hovnanian Land Investment Group of Maryland, L.L.C.

 

30%

 

Petrie Inglewood

 

70%

 

 

 

 

OTHER; Joint Venture; LLC

 

HERITAGE PINES, L.L.C.

 

NC

 

Washington Homes, Inc.

 

50%

 

U.S. Home Corp.

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

PRESTON GRANDE HOMES, INC.

 

NC

 

K. Hovnanian Developments of North Carolina, Inc.

 

90

 

James M. Matheny

 

10

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN 77 HUDSON STREET INVESTMENTS, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN AT 77 HUDSON STREET URBAN RENEWAL COMPANY, L.L.C.

 

NJ

 

77 Hudson Street Joint Development, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN AT MANALAPAN II, L.L.C.

 

NJ

 

K. Hovnanian Manalapan Investment, L.L.C.

 

20%

 

Marathon Manalapan Investment Co., L.L.C.

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL II, L.L.C.

 

NJ

 

PI Investments, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL III, L.L.C.

 

NJ

 

PI Investments, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN INVESTMENTS, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN MANALAPAN INVESTMENT, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

M&M AT MONROE WOODS, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

50%

 

Realty Management, LLC

 

50%

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

MM-BEACHFRONT NORTH I, L.L.C.

 

NJ

 

Matzel & Mumford Organization, Inc.

 

55%

 

Beachfront North, LLC

 

45%

 

 

 

 

OTHER; Joint Venture; LLC

 

MM-BEACHFRONT NORTH II, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

50%

 

M&M at Long Branch, Inc.

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

TOWN HOMES AT MONTGOMERY, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

50%

 

Meyer Gold

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

K. HOVNANIAN AT PHILADELPHIA I, L.L.C.

 

PA

 

Old City Joint Development, L.L.C.

 

99.90%

 

Old City Development Inc.

 

0.1%

 

 

 

 

OTHER; Joint Venture; LLC

 

OLD CITY JOINT DEVELOPMENT, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

20%

 

Old City Holdings, LLC (Lehman)

 

80%

 

 

 

 

OTHER; Joint Venture; LLC

 

12TH* STREET RESIDENTIAL, LTD.

 

TX

 

K. Hovnanian of Houston II, L.L.C.

 

100% Invest./80% profit

 

Lakeland Development

 

20% profit

 

 

 

 

OTHER; Joint Venture; LLC

 

BRIGHTBEACH DEVELOPMENT, LTD.

 

TX

 

K. Hovnanian of Houston II, L.L.C.

 

70%

 

Northpointe Development Partners GP, Inc. (GP 1%) and Northpointe Development
Partners, Ltd. (29%)

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

BRIGHTCHASE, LTD.

 

TX

 

K. Hovnanian of Houston II, L.L.C.

 

60%

 

I.T.L. Investments, Inc. (GP 1%) and VAPA, Ltd. (39%)

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

BRIGHTON HOMES AT WALDEN, LTD.

 

TX

 

K. Hovnanian of Houston II, L.L.C.

 

49.50%

 

BHHO, Ltd (49.5%) & Brighton Homes at Walden Mgt, L.L.C. (1%) (General Partner)

 

49.5%
1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

RR HOUSTON DEVELOPERS, LLC

 

TX

 

K. Hovnanian Homes of Houston, L.L.C.

 

25%

 

Dickson Partners, LLC (50%)
Tousa Homes, Inc. (25%)

 

50%
25%

 

 

 

 

OTHER; Joint Venture; LLC

 

RR HOUSTON INVESTORS, LLC

 

TX

 

K. Hovnanian Homes of Houston, L.L.C.

 

22%

 

J. Dickson Rogers, LP (25%)
KB Homes Lone Star(31%)
Tousa Homes, Inc. (22%)

 

25%
31%
22%

 

 

 

 

OTHER; Joint Venture; LLC

 

COBBLESTONE SQUARE DEVELOPMENT, L.L.C.

 

VA

 

K. Hovnanian Homes of Virginia, Inc.

 

50%

 

Cobblestone Square, LLC c/o Garrett Development Corporation

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

LAUREL HIGHLANDS, LLC

 

VA

 

K. Hovnanian Homes of Virginia, Inc.

 

50%

 

Eagle Homes/Virginia, Inc.

 

50%

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER; Joint Venture; LLC

 

WHI-REPUBLIC, LLC

 

VA

 

K. Hovnanian Homes of Virginia, Inc.

 

50%

 

Kramer/Republic, LLC

 

50%

 

 

 

 

OTHER; Joint Venture; LLC

 

WRIGHT FARM, LLC

 

VA

 

K. Hovnanian Homes of Virginia, Inc.

 

50%

 

U.S. Home Corporation

 

50%

 

 

 

 

OTHER; Joint Venture; LP

 

PRESTON PARKER, L. P.

 

DE

 

Preston Parker, LLC (General Partner)

 

50%

 

Toll TX III, LP & Goodman Family of Builders, LP (limited partners)

 

50%

 

 

 

 

OTHER; Joint Venture; LP

 

MARTIN’S RUN LIMITED PARTNERSHIP II

 

OH

 

K. Hovnanian Oster Homes, L.L.C.

 

 

 

National City Community Development Corporation

 

 

 

 

 

 

OTHER; Joint Venture; LP

 

RR HOUSTON DEVELOPMENT, L.P.

 

TX

 

RR Houston Developers, LLC (GP)

 

2%

 

Tousa Ventures, LLC (49%) and K. Hovnanian Homes of Houston, L.L.C. (49%) are
Limited Partners

 

98%

 

 

 

 

OTHER; Joint Venture; LP

 

RR HOUSTON INVESTMENT, L.P.

 

TX

 

RR Houston Investors, LLC (GP)

 

2%

 

J. Dickson Rogers, LP (24.5%)
KB Homes Lone Star(30.5%)
K. Hovnanian Homes of Houston (21.5%) Tousa Homes, Inc. (21.5%)

 

98%

 

 

 

 

OTHER; Joint Venture; MORTGAGE

 

WINDWARD HOME MORTGAGE, L.L.C.

 

DE

 

K. Hovnanian Windward Homes, LLC

 

51%

 

Wells Fargo Ventures, LLC

 

49%

 

 

 

 

OTHER; Non-Restricted Sub.

 

NEW HOMEBUYERS TITLE COMPANY, INC.

 

MD

 

WH Land I, Inc.

 

80%

 

Real Pro, Inc.

 

20%

 

 

 

 

OTHER; Non-Restricted Sub.

 

HEXTER-FAIR LAND TITLE COMPANY I, INC.

 

TX

 

K. Hovnanian Homes - DFW, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Non-Restricted Sub.

 

NEW HOMEBUYERS TITLE CO. (VIRGINIA) L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

50%

 

Nova Land Title Co.

 

50%

 

 

 

 

OTHER; Non-Restricted Sub.

 

NEW HOMEBUYERS TITLE, L.L.C. (WV)

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

 

50%

 

George Street LLC

 

50%

 

 

 

 

OTHER; Non-Restricted Sub.; MORTGAGE

 

K. HOVNANIAN MORTGAGE FUNDING, L.L.C.

 

DE

 

K. Hovnanian American Mortgage, L.L.C.

 

 

 

 

 

 

 

 

 

 

OTHER; Non-Restricted Sub.; MORTGAGE

 

FIRST MORTGAGE LENDERS OF FLORIDA, L.L.C.

 

FL

 

K. Hovnanian First Homes, L.L.C.

 

 

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER; Non-Restricted Sub.; MORTGAGE

 

K. HOVNANIAN AMERICAN MORTGAGE, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

 

AZ

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

31-1825442

 

1089522-5

RESTRICTED - CORP

 

K. HOV IP, II, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

57-1135061

 

C2470638

RESTRICTED - CORP

 

K. HOV IP, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

95-4892009

 

C2371187

RESTRICTED - CORP

 

K. Hovnanian at Bridgeport, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3547807

 

C2058486

RESTRICTED - CORP

 

K. HOVNANIAN AT CALABRIA, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3324654

 

C1912883

RESTRICTED - CORP

 

K. HOVNANIAN AT CARMEL DEL MAR, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3320550

 

C1910899

RESTRICTED - CORP

 

K. HOVNANIAN AT CASTILE, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3356308

 

C1926647

RESTRICTED - CORP

 

K. HOVNANIAN AT CHAPARRAL, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3565730

 

C2066849

RESTRICTED - CORP

 

K. Hovnanian at Crestline, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3493450

 

C1999329

RESTRICTED - CORP

 

K. HOVNANIAN AT DOMINGUEZ HILLS, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3602177

 

C2110487

RESTRICTED - CORP

 

K. HOVNANIAN AT HIGHLAND VINEYARDS, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3309241

 

C1891595

RESTRICTED - CORP

 

K. Hovnanian at La Terraza, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3303807

 

C1871688

RESTRICTED - CORP

 

K. HOVNANIAN AT NORTHLAKE, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3336696

 

C1917077

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. HOVNANIAN AT OCEAN WALK, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3565732

 

C2067823

RESTRICTED - CORP

 

K. HOVNANIAN AT RANCHO CRISTIANITOS, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3369102

 

C1931774

RESTRICTED - CORP

 

K. HOVNANIAN AT SAN SEVAINE, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3493454

 

C1999596

RESTRICTED - CORP

 

K. HOVNANIAN AT SARATOGA, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3547806

 

C2058457

RESTRICTED - CORP

 

K. HOVNANIAN AT STONE CANYON, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3512641

 

C1907712

RESTRICTED - CORP

 

K. HOVNANIAN AT SYCAMORE, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3493456

 

C1906208

RESTRICTED - CORP

 

K. HOVNANIAN AT TIERRASANTA, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3351875

 

C1926646

RESTRICTED - CORP

 

K. Hovnanian at Trovata, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3369099

 

C1931817

RESTRICTED - CORP

 

K. Hovnanian at Vail Ranch, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3320537

 

C1910900

RESTRICTED - CORP

 

K. Hovnanian at Wildrose, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3312525

 

C1892912

RESTRICTED - CORP

 

K. Hovnanian Communities, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

95-4892007

 

C2370921

RESTRICTED - CORP

 

K. Hovnanian Companies of California, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3301757

 

C1886673

RESTRICTED - CORP

 

K. Hovnanian Companies of Southern California, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3493449

 

C1906207

RESTRICTED - CORP

 

K. Hovnanian Developments of California, Inc.

 

CA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3303806

 

C1888893

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.

 

CA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

59-3762294

 

C2472256

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. Hovnanian Developments of New Jersey, Inc.

 

CA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2664563

 

C2472255

RESTRICTED - CORP

 

K. Hovnanian Enterprises, Inc.

 

CA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2423583

 

C2472254

RESTRICTED - CORP

 

K. Hovnanian Forecast Homes Northern, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4996073

 

C2879797

RESTRICTED - CORP

 

KHC Acquisition, Inc.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-3303802

 

C1888894

RESTRICTED - CORP

 

SEABROOK ACCUMULATION CORPORATION

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0989615

 

C2125062

RESTRICTED - CORP

 

STONEBROOK HOMES, INC.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0553884

 

C1853090

RESTRICTED - CORP

 

K. Hovnanian Developments of Connecticut, Inc.

 

CT

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-3920999

 

841513

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

 

DC

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-2377106

 

250416

RESTRICTED - CORP

 

HOVNANIAN ENTERPRISES, INC (PARENT COMPANY)

 

DE

 

IS THE PARENT COMPANY

 

 

 

 

 

 

 

22-1851059

 

2011856

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

 

DE

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-1528466

 

3844835

RESTRICTED - CORP

 

WASHINGTON HOMES, INC.

 

DE

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3774737

 

3279298

RESTRICTED - CORP

 

HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

 

FL

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2416624

 

F95318

RESTRICTED - CORP

 

K. Hovnanian Developments of Georgia, Inc.

 

GA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-3286085

 

552736

RESTRICTED - CORP

 

K. Hovnanian Developments of Illinois, Inc.

 

IL

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-2421053

 

64095927

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF INDIANA, INC.

 

IN

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-3278908

 

2005080400221

RESTRICTED - CORP

 

K. Hovnanian Developments of Kentucky, Inc.

 

KY

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-5156963

 

641632

RESTRICTED - CORP

 

K. HOVNANIAN COMPANIES OF MARYLAND, INC.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3331050

 

D03977774

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

 

MD

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3331045

 

D03977790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

WH LAND I, INC

 

MD

 

Washington Homes, Inc.

 

 

 

 

 

 

 

52-2073468

 

D02818797

RESTRICTED - CORP

 

WH PROPERTIES, INC.

 

MD

 

Washington Homes, Inc.

 

 

 

 

 

 

 

52-1662973

 

D02832780

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF MICHIGAN, Inc.

 

MI

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

31-1826348

 

04297D

RESTRICTED - CORP

 

K. Hovnanian Developments of Minnesota, Inc.

 

MN

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

20-1200484

 

916675-3

RESTRICTED - CORP

 

K. Hovnanian Developments of North Carolina, Inc.

 

NC

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2765939

 

0197884

RESTRICTED - CORP

 

K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

 

NC

 

K. Hovnanian Developments of North Carolina, Inc.

 

 

 

 

 

 

 

56-1458833

 

0151507

RESTRICTED - CORP

 

WESTMINSTER HOMES, INC.

 

NC

 

Washington Homes, Inc.

 

 

 

 

 

 

 

52-1874680

 

0342135

RESTRICTED - CORP

 

EASTERN TITLE AGENCY, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2822803

 

0100346300

RESTRICTED - CORP

 

K. HOV INTERNATIONAL, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3188610

 

0100525998

RESTRICTED - CORP

 

K. Hovnanian Acquisitions, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3406671

 

0100644005

RESTRICTED - CORP

 

K. Hovnanian at Bernards IV, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3292171

 

0100659742

RESTRICTED - CORP

 

K. HOVNANIAN AT BRANCHBURG III, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2961099

 

0100404204

RESTRICTED - CORP

 

K. HOVNANIAN AT BRIDGEWATER VI, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3243298

 

0100615970

RESTRICTED - CORP

 

K. HOVNANIAN AT BURLINGTON III, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3412130

 

0100644619

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. HOVNANIAN AT BURLINGTON, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2949611

 

0100377174

RESTRICTED - CORP

 

K. Hovnanian at Freehold Township I, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2459186

 

0100528403

RESTRICTED - CORP

 

K. Hovnanian at Hackettstown, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2765936

 

0100315297

RESTRICTED - CORP

 

K. Hovnanian at Hopewell IV, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3345622

 

0100612197

RESTRICTED - CORP

 

K. Hovnanian at Hopewell VI, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3465709

 

0100673065

RESTRICTED - CORP

 

K. Hovnanian at Howell Township, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2859308

 

0100359118

RESTRICTED - CORP

 

K. HOVNANIAN AT KINGS GRANT I, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2601064

 

0100255244

RESTRICTED - CORP

 

K. Hovnanian at Lakewood, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2618178

 

0100265957

RESTRICTED - CORP

 

K. HOVNANIAN AT MAHWAH II, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2859315

 

0100349940

RESTRICTED - CORP

 

K. Hovnanian at Mahwah VI, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3188612

 

0100524204

RESTRICTED - CORP

 

K. Hovnanian at Mahwah VII, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2592139

 

0100252760

RESTRICTED - CORP

 

K. HOVNANIAN AT MANALAPAN, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2442998

 

0100644414

RESTRICTED - CORP

 

K. Hovnanian at Marlboro II, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2748659

 

0100310071

RESTRICTED - CORP

 

K. Hovnanian at Marlboro Township III, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2847875

 

0100445208

RESTRICTED - CORP

 

K. Hovnanian at Marlboro Township IV, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3301196

 

0100678640

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. Hovnanian at Ocean Township, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3094742

 

0100458232

RESTRICTED - CORP

 

K. Hovnanian at Reservoir Ridge, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2510587

 

0100185352

RESTRICTED - CORP

 

K. HOVNANIAN AT SCOTCH PLAINS II, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3464496

 

0100676839

RESTRICTED - CORP

 

K. Hovnanian at Smithville, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-1732674

 

4678097000

RESTRICTED - CORP

 

K. Hovnanian at South Brunswick V, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2937570

 

0100634411

RESTRICTED - CORP

 

K. Hovnanian at Tannery Hill, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3396608

 

0100635078

RESTRICTED - CORP

 

K. Hovnanian at The Bluff, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-1841019

 

6037036500

RESTRICTED - CORP

 

K. Hovnanian at Union Township I, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3027952

 

0100669075

RESTRICTED - CORP

 

K. Hovnanian at Upper Freehold Township I, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3415873

 

0100644618

RESTRICTED - CORP

 

K. Hovnanian at Wall Township VI, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2859303

 

0100635408

RESTRICTED - CORP

 

K. Hovnanian at Wall Township VIII, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3434643

 

0100662199

RESTRICTED - CORP

 

K. Hovnanian at Wayne III, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2607669

 

0100254420

RESTRICTED - CORP

 

K. Hovnanian at Wayne V, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2790299

 

0100326890

RESTRICTED - CORP

 

K. HOVNANIAN COMPANIES NORTHEAST, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2445216

 

0100191190

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. Hovnanian Construction II, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2246316

 

0100085372

RESTRICTED - CORP

 

K. Hovnanian Construction III, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-1945444

 

3155842500

RESTRICTED - CORP

 

K. Hovnanian Construction Management, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3406668

 

0100643225

RESTRICTED - CORP

 

K. Hovnanian Port Imperial Urban Renewal, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3027956

 

0100680485

RESTRICTED - CORP

 

K. HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2057907

 

8896963001

RESTRICTED - CORP

 

K. Hovnanian Properties of Red Bank, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

CORPORATE OFFICE SUBSIDIARY* See below for adress

 

 

 

22-3092532

 

0100475682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

LANDARAMA, INC.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-1978612

 

5314680000

RESTRICTED - CORP

 

M&M at Long Branch, Inc.

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-3359254

 

0100613023

RESTRICTED - CORP

 

MCNJ, INC.

 

NJ

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2722906

 

0100296446

RESTRICTED - CORP

 

The Matzel & Mumford Organization, Inc.

 

NJ

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3670677

 

0100789463

RESTRICTED - CORP

 

K. HOVNANIAN AT CLARKSTOWN, INC.

 

NY

 

K. Hovnanian Developments of New Jersey, Inc.

 

 

 

 

 

 

 

22-2618176

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN AT MONROE II, INC.

 

NY

 

K. Hovnanian Developments of New York, Inc.

 

 

 

 

 

 

 

22-2718071

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.

 

NY

 

K. Hovnanian Developments of New York, Inc.

 

 

 

 

 

 

 

22-2814372

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN AT STONY POINT, INC.

 

NY

 

K. Hovnanian Developments of New York, Inc.

 

 

 

 

 

 

 

22-2758195

 

NY does not have state ID numbers

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. HOVNANIAN AT TUXEDO, INC.

 

NY

 

K. Hovnanian Developments of New York, Inc.

 

 

 

 

 

 

 

22-3516266

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN AT WASHINGTONVILLE, INC.

 

NY

 

K. Hovnanian Developments of New York, Inc.

 

 

 

 

 

 

 

22-2717887

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN COMPANIES OF NEW YORK, INC.

 

NY

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2618171

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

 

NY

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-2626492

 

NY does not have state ID numbers

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.

 

OH

 

K. Hovnanian Summit Holdings, LLC

 

 

 

 

 

 

 

32-0069375

 

1379138

RESTRICTED - CORP

 

Governor’s Abstract Co., Inc.

 

PA

 

Eastern Title Agency, Inc.

 

 

 

 

 

 

 

22-3278556

 

2558929

RESTRICTED - CORP

 

K. Hovnanian at East Whiteland I, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3483220

 

2722464

RESTRICTED - CORP

 

K. Hovnanian at Hershey’s Mill, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3445102

 

2676396

RESTRICTED - CORP

 

K. Hovnanian at Lower Saucon, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-2961090

 

1078557

RESTRICTED - CORP

 

K. Hovnanian at Montgomery I, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3165601

 

2087769

RESTRICTED - CORP

 

K. HOVNANIAN AT PERKIOMEN I, INC.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3094743

 

1567273

RESTRICTED - CORP

 

K. Hovnanian at Perkiomen II, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3301197

 

2570965

RESTRICTED - CORP

 

K. Hovnanian at Sawmill, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3602924

 

2803064

RESTRICTED - CORP

 

K. Hovnanian at Thornbury, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3462983

 

2708243

RESTRICTED - CORP

 

K. Hovnanian at Upper Makefield I, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3302321

 

2574808

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - CORP

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-2390174

 

736172

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.

 

PA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-1097670

 

166535

RESTRICTED - CORP

 

K. Hovnanian PA Real Estate, Inc.

 

PA

 

K. Hovnanian Developments of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3188608

 

2098404

RESTRICTED - CORP

 

K. Hovnanian Developments of South Carolina, Inc.

 

SC

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

58-2659968

 

SC does not have state ID numbers

RESTRICTED - CORP

 

Westminster Homes of Tennessee, Inc.

 

TN

 

Westminster Homes, Inc.

 

 

 

 

 

 

 

52-1973363

 

309371

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

 

TX

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3685786

 

155187700

RESTRICTED - CORP

 

FOUNDERS TITLE AGENCY, INC.

 

VA

 

Eastern Title Agency, Inc.

 

 

 

 

 

 

 

22-3293533

 

0423694-9

RESTRICTED - CORP

 

K. HOVNANIAN AT CAMERON CHASE, INC.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

22-3459993

 

0469468-3

RESTRICTED - CORP

 

K. Hovnanian Companies of Virginia, Inc.

 

VA

 

K. Hovnanian Developments of Virgina, Inc.

 

 

 

 

 

 

 

22-3169584

 

0391941-2

RESTRICTED - CORP

 

K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.

 

VA

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

22-3188615

 

0392312-5

RESTRICTED - CORP

 

K. Hovnanian Homes of Virginia, Inc.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

52-0898765

 

0124315-3

RESTRICTED - CORP

 

K. Hovnanian Developments of West Virginia, Inc.

 

WV

 

Hovnanian Enterprises, Inc.

 

 

 

 

 

 

 

31-1826831

 

59029

RESTRICTED - LLC

 

Westminster Homes of Alabama, L.L.C.

 

AL

 

Washington Homes, Inc.

 

 

 

 

 

 

 

63-1222540

 

DLL 663-970

RESTRICTED - LLC

 

K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC

 

AZ

 

K. Hovnanian Developments of Arizona, Inc.

 

 

 

 

 

 

 

31-1825443

 

L10896341

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. HOVNANIAN GREAT WESTERN HOMES, LLC

 

AZ

 

K. Hovnanian Developments of Arizona, Inc.

 

 

 

 

 

 

 

31-1825441

 

L10892704

RESTRICTED - LLC

 

New Land Title Agency, L.L.C.

 

AZ

 

K. Hovnanian Developments of Arizona, Inc.

 

 

 

 

 

 

 

26-0598590

 

L13817217

RESTRICTED - LLC

 

Hovnanian Land Investment Group of California, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1471139

 

200421110074

RESTRICTED - LLC

 

K. HOVNANIAN AT 3 CHAPMAN, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4359772

 

200604810021

RESTRICTED - LLC

 

K. Hovnanian at 4S, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

73-1638455

 

200208410053

RESTRICTED - LLC

 

K. Hovnanian at Acqua Vista, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-0464160

 

200332910001

RESTRICTED - LLC

 

K. Hovnanian at Aliso, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1218567

 

200412110103

RESTRICTED - LLC

 

K. Hovnanian at Arbor Heights, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890775

 

199915910036

RESTRICTED - LLC

 

K. HOVNANIAN AT AVENUE ONE, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

65-1161801

 

200232410062

RESTRICTED - LLC

 

K. Hovnanian at Bella Lago, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1218576

 

200414910026

RESTRICTED - LLC

 

K. HOVNANIAN AT BRIDLEWOOD, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1454077

 

200421810024

RESTRICTED - LLC

 

K. HOVNANIAN AT CAPISTRANO, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1618465

 

200425310057

RESTRICTED - LLC

 

K. Hovnanian at Carmel Village, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

52-2147831

 

199835710037

RESTRICTED - LLC

 

K. HOVNANIAN AT CIELO, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3393453

 

200523610036

RESTRICTED - LLC

 

K. Hovnanian at Coastline, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4751032

 

200611210031

RESTRICTED - LLC

 

K. Hovnanian at Cortez Hill, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1822959

 

200314210114

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Eastlake, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1820096

 

200312210189

RESTRICTED - LLC

 

K. Hovnanian at Encinitas Ranch, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890770

 

199932010167

RESTRICTED - LLC

 

K. Hovnanian at Evergreen, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1618392

 

200425410179

RESTRICTED - LLC

 

K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1454058

 

200421810029

RESTRICTED - LLC

 

K. HOVNANIAN AT HIGHWATER, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1454037

 

200421810020

RESTRICTED - LLC

 

K. Hovnanian at La Costa Greens, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3920917

 

200533710011

RESTRICTED - LLC

 

K. Hovnanian at La Costa, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1820094

 

200312310001

RESTRICTED - LLC

 

K. Hovnanian at La Habra Knolls, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1819908

 

200312110001

RESTRICTED - LLC

 

K. Hovnanian at Lake Hills, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3450108

 

200525110058

RESTRICTED - LLC

 

K. Hovnanian at Lake Rancho Viejo, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1337056

 

200418410092

RESTRICTED - LLC

 

K. Hovnanian at Matsu, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4135542

 

200534910031

RESTRICTED - LLC

 

K. HOVNANIAN AT MENIFEE VALLEY CONDOMINIUMS, L.L.C.

 

CA

 

K. Hovnanian’s Four Seasons at Menifee Valley, L.L.C.

 

 

 

 

 

 

 

20-1618446

 

200425410158

RESTRICTED - LLC

 

K. Hovnanian at Menifee, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

52-2147832

 

199833710065

RESTRICTED - LLC

 

K. Hovnanian at Mockingbird Canyon, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4106816

 

200536510013

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Mosaic, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

55-0820915

 

200305510036

RESTRICTED - LLC

 

K. Hovnanian at Olde Orchard, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

51-0453906

 

200305510040

RESTRICTED - LLC

 

K. Hovnanian at Orange Heights, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-4996061

 

200614710231

RESTRICTED - LLC

 

K. Hovnanian at Pacific Bluffs, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890774

 

199933710071

RESTRICTED - LLC

 

K. Hovnanian at Park Lane, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0896285

 

200003410125

RESTRICTED - LLC

 

K. Hovnanian at Piazza D’Oro, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

11-3760903

 

200528010092

RESTRICTED - LLC

 

K. Hovnanian at Prado, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3158762

 

200519510085

RESTRICTED - LLC

 

K. Hovnanian at Rancho Santa Margarita, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890773

 

199914210073

RESTRICTED - LLC

 

K. Hovnanian at Riverbend, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890777

 

199917310015

RESTRICTED - LLC

 

K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1786974

 

200429310138

RESTRICTED - LLC

 

K. Hovnanian at Rowland Heights, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

22-2147833

 

199902810001

RESTRICTED - LLC

 

K. Hovnanian at Sage, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3230547

 

200520910018

RESTRICTED - LLC

 

K. Hovnanian at Skye Isle, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1820095

 

200312210199

RESTRICTED - LLC

 

K. Hovnanian at Sunsets, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890768

 

199933710074

RESTRICTED - LLC

 

K. Hovnanian at The Crosby, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-0936364

 

200408710053

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at The Gables, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0890769

 

199917310128

RESTRICTED - LLC

 

K. Hovnanian at The Preserve, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1337079

 

200418210196

RESTRICTED - LLC

 

K. Hovnanian at Thompson Ranch, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1599518

 

200420810012

RESTRICTED - LLC

 

K. Hovnanian at Trail Ridge, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

33-0990615

 

200133010048

RESTRICTED - LLC

 

K. HOVNANIAN AT WINCHESTER, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

52-2147836

 

199831710051

RESTRICTED - LLC

 

K. Hovnanian Companies, LLC

 

CA

 

K. Hovnanian Enterprises, Inc.

 

99.90%

 

K. Hovnanian Developments of New Jersey II, Inc.

 

0.10%

 

59-3762298

 

200231310015

RESTRICTED - LLC

 

K. HOVNANIAN INTERNATIONAL, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1906844

 

200432210216

RESTRICTED - LLC

 

K. Hovnanian T&C Management Co., L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-2393546

 

200504910275

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1454116

 

200421810033

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Beaumont, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

31-1823029

 

200317210077

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Hemet, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

47-0884181

 

200133810024

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT MENIFEE VALLEY, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-1454143

 

200421810040

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Palm Springs, LLC

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

57-1145579

 

200236110007

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

52-2147837

 

199832910020

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian’s Parkside at Towngate, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3158839

 

200519410081

RESTRICTED - LLC

 

Natomas Central Neighborhood Housing, L.L.C.

 

CA

 

K. Hovnanian Developments of California, Inc.

 

 

 

 

 

 

 

20-3882414

 

200533310161

RESTRICTED - LLC

 

K. Hovnanian Connecticut Acquisitions, L.L.C.

 

CT

 

K. Hovnanian Developments of Connecticut, Inc.

 

 

 

 

 

 

 

20-3921070

 

841519

RESTRICTED - LLC

 

K. Hovnanian Homes of D.C., L.L.C.

 

DC

 

K. Hovnanian Developments of DC, Inc.

 

 

 

 

 

 

 

20-2377153

 

L22150

RESTRICTED - LLC

 

HUDSON POINTE JOINT DEVELOPMENT, L.L.C.

 

DE

 

K. Hovnanian Hudson Pointe Investments, L.L.C.

 

 

 

 

 

 

 

20-2695750

 

3950847

RESTRICTED - LLC

 

K. Hovnanian at Bernards V, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3618587

 

2895436

RESTRICTED - LLC

 

K. Hovnanian at Chester I, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3618347

 

2924217

RESTRICTED - LLC

 

K. Hovnanian at Lawrence V, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3638073

 

2990813

RESTRICTED - LLC

 

K. Hovnanian at Mansfield I, LLC

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556345

 

2813127

RESTRICTED - LLC

 

K. Hovnanian at Mansfield II, LLC

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556346

 

2813129

RESTRICTED - LLC

 

K. HOVNANIAN AT MIDDLETOWN, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3630452

 

2966477

RESTRICTED - LLC

 

K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3627814

 

2981171

RESTRICTED - LLC

 

K. HOVNANIAN AT WANAQUE, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3626037

 

2944907

RESTRICTED - LLC

 

K. HOVNANIAN AT WAYNE VIII, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3618348

 

2887982

RESTRICTED - LLC

 

K. HOVNANIAN AT WEST WINDSOR, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3618242

 

2944842

RESTRICTED - LLC

 

K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556343

 

2813122

RESTRICTED - LLC

 

K. HOVNANIAN DELAWARE ACQUISITIONS, L.L.C.

 

DE

 

K. Hovnanian Developments of Delaware, Inc.

 

 

 

 

 

 

 

20-4823251

 

4143500

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian Homes at Nassau Grove, L.L.C.

 

DE

 

K. Hovnanian Developments of Delaware, Inc.

 

 

 

 

 

 

 

26-1345685

 

4446879

RESTRICTED - LLC

 

K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

 

DE

 

K. Hovnanian Developments of Delaware, Inc.

 

 

 

 

 

 

 

20-1528482

 

3844850

RESTRICTED - LLC

 

K. Hovnanian North Central Acquisitions, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3554986

 

2813121

RESTRICTED - LLC

 

K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556344

 

2813120

RESTRICTED - LLC

 

K. Hovnanian Shore Acquisitions, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556342

 

2813123

RESTRICTED - LLC

 

K. Hovnanian South Jersey Acquisitions, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3556341

 

2813125

RESTRICTED - LLC

 

PI INVESTMENTS II, L.L.C.

 

DE

 

K. Hovnanian Investments II, L.L.C.

 

 

 

 

 

 

 

20-0743791

 

3950844

RESTRICTED - LLC

 

WH/PR Land Company, LLC

 

DE

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

52-0818872

 

2501603

RESTRICTED - LLC

 

HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-1379037

 

L04000049664

RESTRICTED - LLC

 

K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-2387077

 

L05000018687

RESTRICTED - LLC

 

K. HOVNANIAN FIRST HOMES, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-3198237

 

L05000071618

RESTRICTED - LLC

 

K. Hovnanian Florida Realty, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

26-0509482

 

L07000070952

RESTRICTED - LLC

 

K. HOVNANIAN STANDING ENTITY, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-2751668

 

L05000040805

RESTRICTED - LLC

 

K. Hovnanian T&C Homes at Florida, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-2387167

 

L05000040805

RESTRICTED - LLC

 

K. HOVNANIAN WINDWARD HOMES, LLC

 

FL

 

Hovnanian Developments of Florida, Inc.

 

 

 

 

 

 

 

20-0301995

 

L03000038757

RESTRICTED - LLC

 

Hovnanian Land Investment Group of Georgia, L.L.C.

 

GA

 

K. Hovnanian Developments of Georgia, Inc.

 

 

 

 

 

 

 

20-3286439

 

552964

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. HOVNANIAN HOMES OF GEORGIA, L.L.C.

 

GA

 

K. Hovnanian Developments of Georgia, Inc

 

 

 

 

 

 

 

20-4467858

 

617248

RESTRICTED - LLC

 

K. Hovnanian T&C Homes at Illinois, L.L.C.

 

IL

 

K. Hovnanian Developments of Illinois, Inc.

 

 

 

 

 

 

 

20-2421114

 

1438247

RESTRICTED - LLC

 

K. HOVNANIAN HOMES OF INDIANA, L.L.C.

 

IN

 

K. Hovnanian Developments of Indiana, Inc.

 

 

 

 

 

 

 

20-3278918

 

2005080200169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. HOVNANIAN POLAND, SP .Z.O.O.

 

INT”L

 

K. Hovnanian Enterprises, Inc.

 

69%

 

K. Hovnanian International, Inc.

 

31%

 

22-3376430

 

International Entity (no state ID)

RESTRICTED - LLC

 

K. Hovnanian Summit Homes of Kentucky, L.L.C.

 

KY

 

K. Hovnanian Developments of Kentucky, Inc.

 

 

 

 

 

 

 

20-5166566

 

640701

RESTRICTED - LLC

 

Midwest Building Products & Contractor Services of Kentucky, L.L.C.

 

KY

 

K. Hovnanian Developments of Kentucky, Inc.

 

 

 

 

 

 

 

20-5166559

 

640703

RESTRICTED - LLC

 

Founders Title Agency of Maryland, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-1480338

 

W10153351

RESTRICTED - LLC

 

Greenway Farms Utility Associates, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-3749580

 

W10938439

RESTRICTED - LLC

 

Homebuyers Financial Services, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-3529161

 

W10866598

RESTRICTED - LLC

 

HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-1446859

 

W10100030

RESTRICTED - LLC

 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-0581911

 

W07739675

RESTRICTED - LLC

 

K. HOVNANIAN AT KING FARM, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3647924

 

W05210075

RESTRICTED - LLC

 

K. HOVNANIAN AT RODERUCK. L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3756336

 

W05956925

RESTRICTED - LLC

 

K. HOVNANIAN AT WILLOW BROOK, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3709105

 

W05629175

RESTRICTED - LLC

 

K. HOVNANIAN COMPANIES METRO D.C. NORTH, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3683159

 

W05492707

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian Homes at Camp Springs, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-0812020

 

W07738636

RESTRICTED - LLC

 

K. Hovnanian Homes at Cider Mill, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

26-1345910

 

W12200192

RESTRICTED - LLC

 

K. Hovnanian Homes at Fairwood, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

47-0880125

 

W06875223

RESTRICTED - LLC

 

K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-0812109

 

W07738628

RESTRICTED - LLC

 

K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-3921234

 

W10992287

RESTRICTED - LLC

 

K. Hovnanian Homes at Greenway Farm, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-3921143

 

W10992659

RESTRICTED - LLC

 

K. Hovnanian Homes at Jones Station 1, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

20-3882481

 

W10985257

RESTRICTED - LLC

 

K. Hovnanian Homes at Jones Station 2, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

20-3882532

 

W10985216

RESTRICTED - LLC

 

K. Hovnanian Homes at Maxwell Place. L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

37-1493190

 

W10089332

RESTRICTED - LLC

 

K. Hovnanian Homes at Primera, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

20-3749553

 

W10938496

RESTRICTED - LLC

 

K. Hovnanian Homes at Renaissance Plaza, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-0364144

 

W07640626

RESTRICTED - LLC

 

K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-1526150

 

W10130789

RESTRICTED - LLC

 

K. Hovnanian Homes of Maryland, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

01-0737098

 

W06855373

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

20-1727101

 

W10210607

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3668315

 

W05411236

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at St. Margarets Landing, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3688864

 

W05525894

RESTRICTED - LLC

 

PADDOCKS, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

20-0027663

 

W07357544

RESTRICTED - LLC

 

PINE AYR, L.L.C.

 

MD

 

K. Hovnanian Homes of Maryland, L.L.C.

 

 

 

 

 

 

 

20-2229495

 

W07700495

RESTRICTED - LLC

 

RIDGEMORE UTILITY, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

31-1820672

 

W06936926

RESTRICTED - LLC

 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, LLC

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

22-3757772

 

W05964846

RESTRICTED - LLC

 

WOODLAND LAKE CONDOMINIUMS AT BOWIE NEW TOWN, L.L.C.

 

MD

 

K. Hovnanian Developments of Maryland, Inc.

 

 

 

 

 

 

 

06-1643401

 

W06947972

RESTRICTED - LLC

 

K. Hovnanian Summit Homes of Michigan, L.L.C.

 

MI

 

K. Hovnanian Developments of Michigan, Inc.

 

 

 

 

 

 

 

31-1826351

 

B8823K

RESTRICTED - LLC

 

Midwest Building Products & Contractor Services of Michigan, L.L.C.

 

MI

 

K. Hovnanian Developments of Michigan, Inc.

 

 

 

 

 

 

 

20-5065088

 

D04861

RESTRICTED - LLC

 

K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

 

 

 

 

 

 

 

20-2705991

 

1325765-2

RESTRICTED - LLC

 

K. Hovnanian at Ridgestone, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

 

 

 

 

 

 

 

20-3563233

 

1527567-5

RESTRICTED - LLC

 

K. Hovnanian Homes of Minnesota, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

 

 

 

 

 

 

 

20-1200484

 

916675-3

RESTRICTED - LLC

 

K. Hovnanian T&C Homes at Minnesota, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

 

 

 

 

 

 

 

20-2383651

 

1250065-2

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Rush Creek, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

 

 

 

 

 

 

 

20-3923972

 

1621412-2

RESTRICTED - LLC

 

Westminster Homes of Mississippi, LLC

 

MS

 

Washington Homes, Inc.

 

 

 

 

 

 

 

64-0907820

 

668199

RESTRICTED - LLC

 

Hovnanian Land Investment Group of North Carolina, L.L.C.

 

NC

 

K. Hovnanian Developments of North Carolina, Inc.

 

 

 

 

 

 

 

20-1309025

 

0730285

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Bailey’s Glenn, L.L.C.

 

NC

 

K. Hovnanian Homes of North Carolina, Inc.

 

 

 

 

 

 

 

26-1180295

 

1003050

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT OLDE LIBERTY, L.L.C.

 

NC

 

K. Hovnanian Homes of North Carolina, Inc.

 

 

 

 

 

 

 

20-8190485

 

0888797

RESTRICTED - LLC

 

K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C.

 

NC

 

K. Hovnanian Homes of North Carolina, Inc.

 

 

 

 

 

 

 

20-8190357

 

0888800

RESTRICTED - LLC

 

Auddie Enterprises, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

26-1956909

 

0600319245

RESTRICTED - LLC

 

Builder Services NJ, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1131408

 

0600202482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

F&W MECHANICAL SERVICES, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

90%

 

Frank Fatigati

 

10%

 

20-4186885

 

0600258227

RESTRICTED - LLC

 

HOVNANIAN LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3002580

 

0600239326

RESTRICTED - LLC

 

K. Hovnanian at Aberdeen Urban Renewal, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4397868

 

0600262205

RESTRICTED - LLC

 

K. Hovnanian at Allendale, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

26-0581709

 

0600304236

RESTRICTED - LLC

 

K. Hovnanian at Barnegat I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3804316

 

0600114569

RESTRICTED - LLC

 

K. Hovnanian at Barnegat II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3030275

 

0600238775

RESTRICTED - LLC

 

K. HOVNANIAN AT BARNEGAT III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4135622

 

0600257361

RESTRICTED - LLC

 

K. Hovnanian at Berkeley, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3644632

 

0600062041

RESTRICTED - LLC

 

K. Hovnanian at Blue Heron Pines, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3630449

 

0600061945

RESTRICTED - LLC

 

K. Hovnanian at Bridgewater I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1820703

 

0600169300

RESTRICTED - LLC

 

K. Hovnanian at Camden I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3845575

 

0600126024

RESTRICTED - LLC

 

K. Hovnanian at Cedar Grove III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3818491

 

0600119837

RESTRICTED - LLC

 

K. Hovnanian at Cedar Grove IV, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1185029

 

0600203661

RESTRICTED - LLC

 

K. Hovnanian at Chesterfield II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4135587

 

0600257926

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Chesterfield, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0916310

 

0600197047

RESTRICTED - LLC

 

K. Hovnanian at Clifton II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3862906

 

0600146867

RESTRICTED - LLC

 

K. Hovnanian at Clifton, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3655976

 

0600067885

RESTRICTED - LLC

 

K. Hovnanian at Cranbury, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3814347

 

0600118455

RESTRICTED - LLC

 

K. Hovnanian at Curries Woods, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3776466

 

0600105660

RESTRICTED - LLC

 

K. Hovnanian at Denville, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

03-0436512

 

0600139567

RESTRICTED - LLC

 

K. Hovnanian at Deptford Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1254802

 

0600205216

RESTRICTED - LLC

 

K. Hovnanian at Dover, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3072574

 

0600240816

RESTRICTED - LLC

 

K. Hovnanian at Edgewater II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0374534

 

0600184537

RESTRICTED - LLC

 

K. Hovnanian at Edgewater, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1825623

 

0600176706

RESTRICTED - LLC

 

K. Hovnanian at Egg Harbor Township II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3158355

 

0600242039

RESTRICTED - LLC

 

K. Hovnanian at Egg Harbor Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1826606

 

0600178085

RESTRICTED - LLC

 

K. Hovnanian at Elk Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5199963

 

0600273667

RESTRICTED - LLC

 

K. Hovnanian at Ewing, L.L.C.

 

NJ

 

K. Hovnanian at Lakewood, Inc.

 

 

 

 

 

 

 

20-8327131

 

0600288447

RESTRICTED - LLC

 

K. Hovnanian at Fifth Avenue, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4594377

 

0600265220

RESTRICTED - LLC

 

K. Hovnanian at Florence I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0982613

 

0600198196

RESTRICTED - LLC

 

K. Hovnanian at Florence II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0982631

 

0600198198

RESTRICTED - LLC

 

K. Hovnanian at Forest Meadows, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

16-1639755

 

0600153422

RESTRICTED - LLC

 

K. Hovnanian at Franklin, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1822595

 

0600217303

RESTRICTED - LLC

 

K. Hovnanian at Freehold Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1819075

 

0600154771

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Galloway, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

26-0395034

 

0600302122

RESTRICTED - LLC

 

K. Hovnanian at Great Notch, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3330582

 

0600154773

RESTRICTED - LLC

 

K. Hovnanian at Guttenberg, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3653007

 

0600065663

RESTRICTED - LLC

 

K. Hovnanian at Hackettstown II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0412492

 

0600185254

RESTRICTED - LLC

 

K. Hovnanian at Hamburg Contractors, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3814175

 

0600117617

RESTRICTED - LLC

 

K. Hovnanian at Hamburg, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3795544

 

0600111970

RESTRICTED - LLC

 

K. Hovnanian at Hawthorne, L.L.C

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0946954

 

0600197663

RESTRICTED - LLC

 

K. Hovnanian at Hazlet, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4568967

 

0600264261

RESTRICTED - LLC

 

K. Hovnanian at Hilltop, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3476959

 

0600247464

RESTRICTED - LLC

 

K. HOVNANIAN AT HUDSON POINTE, L.L.C.

 

NJ

 

Hudson Pointe Joint Development, L.L.C.

 

 

 

 

 

 

 

65-1161805

 

0600232501

RESTRICTED - LLC

 

K. Hovnanian at Jackson I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

56-2290802

 

0600145983

RESTRICTED - LLC

 

K. Hovnanian at Jackson, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3630450

 

0600061950

RESTRICTED - LLC

 

K. Hovnanian at Jersey City IV, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3655974

 

0600068168

RESTRICTED - LLC

 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1818646

 

0600165141

RESTRICTED - LLC

 

K. Hovnanian at Keyport, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4918777

 

0600269951

RESTRICTED - LLC

 

K. Hovnanian at Lafayette Estates, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3658926

 

0600068678

RESTRICTED - LLC

 

K. Hovnanian at Linwood, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3663731

 

0600070186

RESTRICTED - LLC

 

K. Hovnanian at Little Egg Harbor Contractors, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3832077

 

0600117615

RESTRICTED - LLC

 

K. Hovnanian at Little Egg Harbor III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4861624

 

0600269190

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Little Egg Harbor Township II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2689884

 

0600230425

RESTRICTED - LLC

 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3795535

 

0600111969

RESTRICTED - LLC

 

K. HOVNANIAN AT LONG BRANCH I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

56-2308030

 

0600154762

RESTRICTED - LLC

 

K. Hovnanian at Manalapan III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1819073

 

0600154904

RESTRICTED - LLC

 

K. Hovnanian at Mansfield III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3683839

 

0600075147

RESTRICTED - LLC

 

K. Hovnanian at Maple Avenue, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4863855

 

0600268924

RESTRICTED - LLC

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1005879

 

0600113949

RESTRICTED - LLC

 

K. Hovnanian at Marlboro Township V, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1819074

 

0600154765

RESTRICTED - LLC

 

K. Hovnanian at Marlboro Township VIII, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3802594

 

0600199295

RESTRICTED - LLC

 

K. Hovnanian at Marlboro VI, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3791976

 

0600111145

RESTRICTED - LLC

 

K. Hovnanian at Marlboro VII, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3791977

 

0600111146

RESTRICTED - LLC

 

K. Hovnanian at Mendham Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2033800

 

0600221177

RESTRICTED - LLC

 

K. Hovnanian at Middle Township II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3832384

 

0600252925

RESTRICTED - LLC

 

K. Hovnanian at Middle Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

03-0473330

 

0600144246

RESTRICTED - LLC

 

K. HOVNANIAN AT MIDDLETOWN II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

04-3695371

 

0600141893

RESTRICTED - LLC

 

K. Hovnanian at Millville I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1562308

 

0600212008

RESTRICTED - LLC

 

K. Hovnanian at Millville II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2221380

 

0600224189

RESTRICTED - LLC

 

K. Hovnanian at Millville III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2977971

 

0600238647

RESTRICTED - LLC

 

K. Hovnanian at Monroe III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0876393

 

0600196257

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Monroe IV, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2364423

 

0600227412

RESTRICTED - LLC

 

K. Hovnanian at Monroe NJ, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3512199

 

0600247899

RESTRICTED - LLC

 

K. Hovnanian at Montvale, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1584680

 

0600212128

RESTRICTED - LLC

 

K. Hovnanian at Mt. Olive Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3813043

 

0600118159

RESTRICTED - LLC

 

K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4053097

 

0600255883

RESTRICTED - LLC

 

K. Hovnanian at North Bergen, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1818663

 

0600154768

RESTRICTED - LLC

 

K. Hovnanian at North Caldwell II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1185057

 

0600203658

RESTRICTED - LLC

 

K. Hovnanian at North Caldwell III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4863775

 

0600268927

RESTRICTED - LLC

 

K. Hovnanian at North Caldwell, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-0412508

 

0600185329

RESTRICTED - LLC

 

K. Hovnanian at North Haledon, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3770598

 

0600104083

RESTRICTED - LLC

 

K. Hovnanian at North Wildwood, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

59-3769684

 

0600164319

RESTRICTED - LLC

 

K. Hovnanian at Northfield, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3665826

 

0600070975

RESTRICTED - LLC

 

K. Hovnanian at Oceanport, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5811042

 

0600282907

RESTRICTED - LLC

 

K. Hovnanian at Old Bridge, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

55-0787042

 

0600144249

RESTRICTED - LLC

 

K. Hovnanian at Paramus, LLC

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3687884

 

0600076895

RESTRICTED - LLC

 

K. Hovnanian at Parsippany-Troy Hills, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2769490

 

0600235042

RESTRICTED - LLC

 

K. Hovnanian at Peapack-Gladstone, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5298728

 

0600275384

RESTRICTED - LLC

 

K. Hovnanian at Pittsgrove, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1562254

 

0600212006

RESTRICTED - LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.

 

NJ

 

PI Investments II, L.L.C.

 

 

 

 

 

 

 

20-2293457

 

0600224788

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.

 

NJ

 

PI Investments II, L.L.C.

 

 

 

 

 

 

 

20-2293478

 

0600224789

RESTRICTED - LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.

 

NJ

 

PI Investments II, L.L.C.

 

 

 

 

 

 

 

20-2909190

 

0600237639

RESTRICTED - LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2909213

 

0600237638

RESTRICTED - LLC

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2909227

 

0600237662

RESTRICTED - LLC

 

K. Hovnanian at Princeton Landing, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4678083

 

0600266062

RESTRICTED - LLC

 

K. Hovnanian at Princeton NJ, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3728840

 

0600251374

RESTRICTED - LLC

 

K. Hovnanian at Randolph I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

01-0712196

 

0600140937

RESTRICTED - LLC

 

K. Hovnanian at Readington II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1818662

 

0600154781

RESTRICTED - LLC

 

K. Hovnanian at Red Bank, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2489028

 

0600229762

RESTRICTED - LLC

 

K. Hovnanian at Ridgemont, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3375106

 

0600245080

RESTRICTED - LLC

 

K. Hovnanian at Sayreville, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3815459

 

0600118852

RESTRICTED - LLC

 

K. Hovnanian at Scotch Plains, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-2380821

 

0600202844

RESTRICTED - LLC

 

K. Hovnanian at Smithville III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

31-1818661

 

0600154767

RESTRICTED - LLC

 

K. HOVNANIAN AT SOMERS POINT, LLC

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

16-1639761

 

0600153574

RESTRICTED - LLC

 

K. Hovnanian at South Brunswick, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

01-0618098

 

0600133948

RESTRICTED - LLC

 

K. Hovnanian at Sparta, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4326573

 

0600260964

RESTRICTED - LLC

 

K. Hovnanian at Springco, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

65-1161805

 

0600154333

RESTRICTED - LLC

 

K. HOVNANIAN AT SPRINGFIELD, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2892866

 

0600237310

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Teaneck, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1584240

 

0600212485

RESTRICTED - LLC

 

K. Hovnanian at The Monarch, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3215837

 

0600242325

RESTRICTED - LLC

 

K. Hovnanian at Trenton Urban Renewal, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4908853

 

0600268524

RESTRICTED - LLC

 

K. Hovnanian at Trenton, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3728778

 

0600251334

RESTRICTED - LLC

 

K. Hovnanian at Union Township II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2828805

 

0600235598

RESTRICTED - LLC

 

K. Hovnanian at Upper Freehold Township II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3655975

 

0600067998

RESTRICTED - LLC

 

K. Hovnanian at Upper Freehold Township III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3666680

 

0600070732

RESTRICTED - LLC

 

K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4359783

 

0600260999

RESTRICTED - LLC

 

K. HOVNANIAN AT VINELAND, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

34-1997435

 

0600203248

RESTRICTED - LLC

 

K. Hovnanian at Warren Township, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2594932

 

0600230426

RESTRICTED - LLC

 

K. Hovnanian at Washington, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3743403

 

0600094190

RESTRICTED - LLC

 

K. Hovnanian at Wayne IX, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3828775

 

0600123093

RESTRICTED - LLC

 

K. Hovnanian at West Milford, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3740951

 

0600091215

RESTRICTED - LLC

 

K. Hovnanian at Wildwood Bayside, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4385082

 

0600261420

RESTRICTED - LLC

 

K. Hovnanian at Woodhill Estates, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

01-0550781

 

0600128484

RESTRICTED - LLC

 

K. Hovnanian at Woolwich I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3828777

 

0600122901

RESTRICTED - LLC

 

K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-1683566

 

0600214193

RESTRICTED - LLC

 

K. Hovnanian Classics CIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3684969

 

0600251026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian Holdings NJ, LLC

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

 

99.90%

 

K. Hovnanian Developments of New Jersey II, Inc.

 

0.10%

 

02-0651173

 

0600153466

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2695696

 

0600232504

RESTRICTED - LLC

 

K. HOVNANIAN INVESTMENTS II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2695548

 

0600232506

RESTRICTED - LLC

 

K. Hovnanian Northeast Services, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

16-1639452

 

0600153468

RESTRICTED - LLC

 

K. Hovnanian Southern New Jersey, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

01-0648280

 

0600136445

RESTRICTED - LLC

 

K. HOVNANIAN T&C INVESTMENT, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-2364394

 

0600227507

RESTRICTED - LLC

 

K. Hovnanian Venture I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

02-0572173

 

0600136444

RESTRICTED - LLC

 

K. Hovnanian’s Private Home Portfolio, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

22-3766856

 

0600101900

RESTRICTED - LLC

 

KHIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

01-0752776

 

0600153607

RESTRICTED - LLC

 

M&M AT APPLE RIDGE, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3824654

 

0600083500

RESTRICTED - LLC

 

M&M at Chesterfield, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

56-2290506

 

0600148929

RESTRICTED - LLC

 

M&M at Copper Beech, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

 

 

 

 

 

 

20-5355079

 

0600276504

RESTRICTED - LLC

 

M&M at Crescent Court, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

 

 

 

 

 

 

20-5085522

 

0600272411

RESTRICTED - LLC

 

M&M AT EAST MILL, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

80-0036068

 

0600132895

RESTRICTED - LLC

 

M&M at East Rutherford, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

 

 

 

 

 

 

20-4514649

 

0600264013

RESTRICTED - LLC

 

M&M at Kensington Woods, LLC

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

31-1819907

 

0600168422

RESTRICTED - LLC

 

M&M AT MORRISTOWN, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3834775

 

0600123418

RESTRICTED - LLC

 

M&M AT SHERIDAN, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3825357

 

0600092716

RESTRICTED - LLC

 

M&M AT SPINNAKER POINTE, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3825041

 

0600119620

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

M&M AT SPRUCE HOLLOW, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3825064

 

0600117704

RESTRICTED - LLC

 

M&M AT SPRUCE RUN, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3825037

 

0600114161

RESTRICTED - LLC

 

M&M at Station Square, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

 

 

 

 

 

 

20-8354517

 

0600290651

RESTRICTED - LLC

 

M&M at Tamarack Hollow, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

20-2033836

 

0600220999

RESTRICTED - LLC

 

M&M at The Chateau, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

20-3375109

 

0600244754

RESTRICTED - LLC

 

M&M AT THE HIGHLANDS, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3824649

 

0600115309

RESTRICTED - LLC

 

M&M AT UNION, L.L.C.

 

NJ

 

M&M Investments, L.P.

 

 

 

 

 

 

 

26-1628832

 

0600315655

RESTRICTED - LLC

 

M&M at West Orange, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

55-0820919

 

0600162544

RESTRICTED - LLC

 

M&M AT Westport, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

20-3494593

 

0600247195

RESTRICTED - LLC

 

M&M at Wheatena Urban Renewal, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

20-1516521

 

0600209678

RESTRICTED - LLC

 

Matzel & Mumford at Egg Harbor, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

20-1706817

 

0600215046

RESTRICTED - LLC

 

MATZEL & MUMFORD AT MONTGOMERY, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3500542

 

0600034323

RESTRICTED - LLC

 

Matzel & Mumford at South Bound Brook Urban Renewal, L.L.C.

 

NJ

 

M & M Investments, L.P.

 

 

 

 

 

 

 

20-0489677

 

0600187135

RESTRICTED - LLC

 

MMIP, L.L.C.

 

NJ

 

M and M Investments, LP

 

 

 

 

 

 

 

02-0651174

 

0600153572

RESTRICTED - LLC

 

Terrapin Realty, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-4415708

 

0600262615

RESTRICTED - LLC

 

THE LANDINGS AT SPINNAKER POINTE, L.L.C.

 

NJ

 

The Matzel & Mumford Organization, Inc.

 

 

 

 

 

 

 

22-3825040

 

0600119619

RESTRICTED - LLC

 

K. Hovnanian Classics, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-3761401

 

0600250946

RESTRICTED - LLC

 

Builder Services NY, L.L.C.

 

NY

 

K. Hovnanian at Northern Westchester, Inc.

 

 

 

 

 

 

 

20-5676716

 

NY does not have state ID numbers

RESTRICTED - LLC

 

K. HOVNANIAN AT NEW WINDSOR, L.L.C.

 

NY

 

K. Hovnanian at Northern Westchester, Inc.

 

 

 

 

 

 

 

20-3158568

 

NY does not have state ID numbers

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Hamptonburgh, L.L.C.

 

NY

 

K. Hovnanian at Northern Westchester, Inc.

 

 

 

 

 

 

 

26-1346213

 

NY does not have state ID numbers

RESTRICTED - LLC

 

K. HOVNANIAN OHIO REALTY, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

 

 

 

 

 

 

 

32-0069376

 

1379137

RESTRICTED - LLC

 

K. HOVNANIAN OSTER HOMES, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

 

 

 

 

 

 

 

20-3198273

 

1557592

RESTRICTED - LLC

 

K. HOVNANIAN SUMMIT HOMES, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

 

 

 

 

 

 

 

32-0069379

 

1379136

RESTRICTED - LLC

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

 

 

 

 

 

 

 

20-2882866

 

1542008

RESTRICTED - LLC

 

Builder Services PA, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-5425686

 

3669235

RESTRICTED - LLC

 

Hovnanian Land Investment Group of Pennsylvania, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4641720

 

590799

RESTRICTED - LLC

 

K. Hovnanian at Allenberry, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-5295827

 

3662327

RESTRICTED - LLC

 

K. HOVNANIAN AT ALLENTOWN, L.L.C

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-3215910

 

3320644

RESTRICTED - LLC

 

K. HOVNANIAN AT BROAD AND WALNUT, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-3477133

 

3333125

RESTRICTED - LLC

 

K. Hovnanian at Camp Hill, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4215810

 

573601

RESTRICTED - LLC

 

K. Hovnanian at East Brandywine, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-8353499

 

3701588

RESTRICTED - LLC

 

K. HOVNANIAN AT FORKS TWP. I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4202483

 

571052

RESTRICTED - LLC

 

K. Hovnanian at Lower Macungie Township I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

51-0427582

 

3084633

RESTRICTED - LLC

 

K. Hovnanian at Lower Macungie Township II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

65-1161803

 

3105462

RESTRICTED - LLC

 

K. Hovnanian at Lower Makefield Township I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3887471

 

3108679

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian at Lower Moreland I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3785544

 

2990162

RESTRICTED - LLC

 

K. Hovnanian at Lower Moreland II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3785539

 

2990163

RESTRICTED - LLC

 

K. Hovnanian at Lower Moreland III, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4863743

 

598248

RESTRICTED - LLC

 

K. HOVNANIAN AT MACUNGIE, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4863710

 

598266

RESTRICTED - LLC

 

K. Hovnanian at Northampton, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

22-3785527

 

2990165

RESTRICTED - LLC

 

K. Hovnanian at Philadelphia II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-1706785

 

3242115

RESTRICTED - LLC

 

K. Hovnanian at Philadelphia III, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-3216099

 

3320056

RESTRICTED - LLC

 

K. Hovnanian at Philadelphia IV, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-3216000

 

3320058

RESTRICTED - LLC

 

K. HOVNANIAN AT RAPHO, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-2293515

 

3279728

RESTRICTED - LLC

 

K. Hovnanian at Silver Spring, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-3230502

 

3320040

RESTRICTED - LLC

 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

31-1820731

 

3138927

RESTRICTED - LLC

 

K. Hovnanian at Upper Uwchlan, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

59-3763798

 

3113479

RESTRICTED - LLC

 

K. Hovnanian at West Bradford, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-2560211

 

3288405

RESTRICTED - LLC

 

K. Hovnanian Eastern Pennsylvania, L.L.C.

 

PA

 

K. Hovnanian at Perkiomen II, Inc.

 

 

 

 

 

 

 

04-3630089

 

3059867

RESTRICTED - LLC

 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-2376938

 

3282224

RESTRICTED - LLC

 

K. Hovnanian Pennsylvania Acquisitions, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

54-2064618

 

3084631

RESTRICTED - LLC

 

K. Hovnanian Summit Homes of Pennsylvania, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-0310776

 

3163398

RESTRICTED - LLC

 

Midwest Building Products & Contractor Services of Pennsylvania, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-5071295

 

3654836

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

 

 

 

 

 

 

 

20-4202417

 

573609

RESTRICTED - LLC

 

K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C.

 

SC

 

K. Hovnanian Developments of South Carolina, Inc

 

 

 

 

 

 

 

20-4467887

 

SC does not have state ID numbers

RESTRICTED - LLC

 

K. HOVNANIAN FOUR SEASONS AT GOLD HILL, LLC

 

SC

 

K. Hovnanian Developments of South Carolina, L.L.C.

 

 

 

 

 

 

 

31-1820161

 

SC does not have state ID numbers

RESTRICTED - LLC

 

K. Hovnanian Homes of South Carolina, LLC

 

SC

 

K. Hovnanian Developments of South Carolina, Inc.

 

 

 

 

 

 

 

58-2660293

 

SC does not have state ID numbers

RESTRICTED - LLC

 

Hovnanian Land Investment Group of Texas, L.L.C.

 

TX

 

K. Hovnanian Homes - DFW, L.L.C.

 

 

 

 

 

 

 

20-1442111

 

800370835

RESTRICTED - LLC

 

K. Hovnanian Homes - DFW, L.L.C.

 

TX

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5856823

 

800728621

RESTRICTED - LLC

 

K. Hovnanian Homes of Houston, L.L.C.

 

TX

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5856877

 

800728636

RESTRICTED - LLC

 

K. Hovnanian of Houston II, L.L.C.

 

TX

 

K. Hovnanian Holdings NJ, L.L.C.

 

 

 

 

 

 

 

20-5856770

 

800728629

RESTRICTED - LLC

 

PARK TITLE COMPANY, LLC

 

TX

 

K. Hovnanian of Houston II, L.L.C.

 

 

 

 

 

 

 

20-1293533

 

800351629

RESTRICTED - LLC

 

Alford, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-1532156

 

S130757-0

RESTRICTED - LLC

 

Dulles Coppermine, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

31-1820770

 

S095889-4

RESTRICTED - LLC

 

HOVNANIAN LAND INVESTMENT GROUP OF VIRGINIA, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-1020023

 

S120465-2

RESTRICTED - LLC

 

K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

22-3778537

 

S057901-3

RESTRICTED - LLC

 

K. Hovnanian at Lake Terrapin, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

22-3647920

 

S035928-3

RESTRICTED - LLC

 

K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, LLC

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

22-3647925

 

S035925-9

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian Franciscus Homes, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-3832432

 

S170852-0

RESTRICTED - LLC

 

K. Hovnanian Homes at Belmont Overlook, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

26-1345784

 

S239392-6

RESTRICTED - LLC

 

K. Hovnanian Homes at Cameron Station, LLC

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-1169628

 

S122706-7

RESTRICTED - LLC

 

K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-4215898

 

S176922-5

RESTRICTED - LLC

 

K. Hovnanian Homes at Victoria Station, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

26-1345747

 

S239380-1

RESTRICTED - LLC

 

K. Hovnanian Summit Holdings, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

31-1818027

 

S094770-7

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Ashburn Village, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-0385213

 

S108167-0

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Charlottesville, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-3375037

 

S162622-7

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Dulles Discovery Condominium, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-1442155

 

S128212-0

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Dulles Discovery, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-1169675

 

S122707-5

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at New Kent Vineyards, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

20-3375087

 

S162620-1

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Vint Hill, L.L.C.

 

VA

 

K. Hovnanian Developments of Virginia, Inc.

 

 

 

 

 

 

 

31-1828049

 

S104496-7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

K. Hovnanian Homes of West Virginia, L.L.C.

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

 

 

 

 

 

 

 

20-2828654

 

71850

RESTRICTED - LLC

 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

 

 

 

 

 

 

 

31-1826832

 

59028

RESTRICTED - LLC

 

K. Hovnanian’s Four Seasons at Huntfield, L.L.C.

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

 

 

 

 

 

 

 

20-3375034

 

78494

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESTRICTED - LLC

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C.

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

 

 

 

 

 

 

 

20-5065126

 

85976

RESTRICTED - LP

 

M&M INVESTMENTS, L.P.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

 

99.44%

 

The Matzel & Mumford Organization, Inc.

 

0.56%

 

22-3685183

 

0600072762

RESTRICTED - LP

 

MILLENNIUM TITLE AGENCY, LTD.

 

OH

 

K. Hovnanian Oster Homes, L.L.C.

 

 

 

 

 

 

 

34-1921771

 

1138080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chief Executive Office for All Entities:

 

110 West Front Street, Red Bank, NJ 07701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Restricted Entities other than K. Hovnanian Enterprises, Inc. are
Guarantors.

 

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

SCHEDULE 1.1(P)

EXISTING PERMITTED LIENS

None.

--------------------------------------------------------------------------------

Schedule 2.9.1
Existing Letters of Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

K. HOVNANIAN ENTERPRISES
Letters of Credit Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.or
Financial

 

LC No.

 

BENEFICIARY

 

CURRENT
AMOUNT

 

DATE
ISSUED

 

EXPIRY
DATE

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fin.

 

201811

 

Reliance Insurance Co.

 

$

46,122.00

 

2/7/1995

 

12/31/2008

 

Perf.

 

201821

 

Township of East Brunswick

 

$

9,201.72

 

6/19/1996

 

6/17/2009

 

Perf.

 

201822

 

Township of East Brunswick

 

$

19,304.24

 

6/19/1996

 

6/17/2009

 

Perf.

 

201823

 

Township of East Brunswick

 

$

8,164.80

 

10/29/1996

 

10/28/2008

 

Perf.

 

201824

 

Township of East Brunswick

 

$

10,292.50

 

10/29/1996

 

10/28/2008

 

Perf.

 

201828

 

Township of East Brunswick

 

$

7,678.08

 

6/19/1996

 

6/17/2009

 

Perf.

 

201829

 

Township of East Brunswick

 

$

30,029.51

 

6/19/1996

 

6/17/2009

 

Perf.

 

201830

 

Township of East Brunswick

 

$

84,329.06

 

6/19/1996

 

6/17/2009

 

Perf.

 

201831

 

Township of East Brunswick

 

$

6,300.00

 

6/19/1996

 

6/17/2009

 

Perf.

 

201832

 

Township of East Brunswick

 

$

6,283.49

 

10/29/1996

 

10/28/2008

 

Perf.

 

201833

 

Township of East Brunswick

 

$

24,448.34

 

10/29/1996

 

10/28/2008

 

Perf

 

217502

 

Township of Lawrence

 

$

121,756.08

 

4/23/1999

 

4/26/2009

 

Perf

 

217533

 

Township of Lawrence

 

$

19,342.69

 

4/23/1999

 

4/26/2009

 

Perf.

 

217536

 

Township of Lawrence

 

$

2,820.51

 

4/23/1999

 

4/26/2009

 

Perf.

 

225922

 

Township of Lawrence

 

$

20,841.11

 

1/21/2000

 

1/21/2009

 

Perf.

 

225923

 

Township of Lawrence

 

$

162,164.76

 

1/21/2000

 

1/21/2009

 

Fin.

 

243450

 

Steadfast Insurance Co.

 

$

500,000.00

 

11/30/2001

 

10/31/2008

 

Fin.

 

243452

 

Zurich American Insurance Co.

 

$

700,000.00

 

11/30/2001

 

10/31/2008

 

Perf.

 

250328

 

Hackettstown Municipal Utilities

 

$

231,340.50

 

7/16/2002

 

7/16/2008

 

Perf.

 

250329

 

Hackettstown Municipal Utilities

 

$

108,246.75

 

7/16/2002

 

7/16/2008

 

Perf.

 

252579

 

Northampton, Bucks County

 

$

352,995.84

 

10/3/2002

 

11/12/2008

 

Perf.

 

253440

 

Township of Cedar Grove

 

$

104,967.00

 

11/18/2002

 

5/18/2008

 

Perf.

 

253721

 

Township of Northampton

 

$

957,296.83

 

11/19/2002

 

11/20/2008

 

Perf.

 

258407

 

Town of Monroe

 

$

500,000.00

 

6/23/2003

 

6/23/2008

 

Perf.

 

258408

 

Town of Monroe

 

$

346,500.00

 

6/23/2003

 

6/23/2008

 

Perf.

 

258679

 

Jaindl Land Co.

 

$

99,000.00

 

7/7/2003

 

7/7/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

261918

 

RTKL New Jersey Architects

 

$

150,000.00

 

1/2/2004

 

1/2/2009

 

Perf

 

18101134

 

Township of Rapho

 

$

204,708.90

 

1/31/2005

 

1/31/2009

 

Perf

 

18101135

 

Mt. Joy Properites Inc.

 

$

71,117.72

 

2/3/2005

 

2/3/2009

 

Perf.

 

18101626

 

Borough of West Paterson

 

$

45,684.90

 

5/13/2005

 

5/10/2008

 

Perf.

 

18101627

 

City of Clifton

 

$

253,404.00

 

5/13/2005

 

5/13/2008

 

Perf.

 

18101628

 

Borough of West Paterson

 

$

151,648.52

 

5/13/2005

 

5/13/2008

 

Fin

 

18102009

 

Twp of Manalapan

 

$

1,958,008.00

 

9/26/2005

 

9/26/2008

 

Fin

 

18102010

 

Twp of Manalapan

 

$

964,392.00

 

9/26/2005

 

9/26/2008

 

Perf

 

18102481

 

Nordan Realty Corp.

 

$

6,000,000.00

 

1/5/2006

 

7/29/2009

 

Perf

 

18102554

 

Northampton, Bucks County

 

$

74,693.55

 

12/21/2005

 

6/21/2008

 

Perf

 

18102765

 

Borough of West Paterson

 

$

47,550.10

 

2/2/2006

 

2/2/2009

 

Fin

 

18102770

 

Borough of Camp Hill

 

$

35,662.00

 

3/13/2006

 

3/13/2009

 

Perf

 

18102859

 

Silver Spring Township

 

$

322,470.00

 

4/19/2006

 

4/19/2009

 

Perf

 

18102869

 

The Breeches at Allenberry LLC

 

$

239,000.00

 

3/6/2006

 

3/6/2009

 

Perf

 

18102878

 

Lehigh County Authority

 

$

20,265.00

 

3/3/2006

 

3/3/2009

 

Perf

 

18102980

 

Borough of North Caldwell

 

$

198,361.56

 

3/22/2006

 

3/22/2009

 

Perf

 

18103106

 

Township of Verona

 

$

39,954.07

 

4/18/2006

 

4/18/2008

 

Perf

 

18103173

 

City of Clifton

 

$

455,693.00

 

4/26/2006

 

4/26/2008

 

Perf

 

18103200

 

Jersey City Municipal Utilities

 

$

618,165.00

 

5/25/2006

 

5/25/2008

 

Perf

 

18103600

 

Lower Macungie Township

 

$

349,036.61

 

8/15/2006

 

5/15/2008

 

Perf

 

18103762

 

Mt. Joy Borough Authority

 

$

329,262.82

 

9/21/2006

 

9/21/2008

 

Perf

 

18104151

 

Lower Macungie Township

 

$

346,338.81

 

12/26/2006

 

12/26/2008

 

Perf

 

18104236

 

Lower Macungie Township

 

$

982,104.41

 

1/19/2007

 

1/19/2009

 

Perf

 

18104444

 

Lower Macungie Township

 

$

242,435.07

 

3/23/2007

 

3/23/2009

 

Perf

 

18107606

 

Lower Moreland Township

 

$

427,000.00

 

9/12/2007

 

3/12/2009

 

Perf

 

18108376

 

Lehigh County Authority

 

$

130,219.10

 

11/21/2007

 

11/21/2008

 

Perf

 

18108960

 

Mount Joy Boro Authority

 

$

221,531.24

 

2/28/2008

 

2/28/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PNC - TOTAL

 

$

19,358,132.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

940740

 

Brd of Cty Supervsrs.of Prc.William

 

$

40,585.50

 

12/26/2005

 

8/22/2008

 

Perf.

 

941035

 

Stafford County Board of Supervisors

 

$

68,702.93

 

10/9/1998

 

4/1/2008

 

Perf.

 

3064488

 

Board of Cty Spv Prince William Cty

 

$

543,518.19

 

7/20/2004

 

7/16/2008

 

Perf.

 

3064720

 

Bd of Supervisors of Prince Wm.Cty.

 

$

328,394.00

 

8/3/2004

 

3/23/2008

 

Perf.

 

3064954

 

Burgess & Comm.of Walkersville

 

$

805,456.00

 

8/12/2004

 

8/12/2008

 

Fin.

 

3065222

 

U.S. Bank National Assoc.

 

$

546,376.00

 

9/17/2004

 

9/17/2008

 

Perf.

 

3065427

 

Brazos River North South Ltd.

 

$

130,000.00

 

9/17/2004

 

9/17/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

3065905

 

Board of Cty Spv Prince William Cty

 

$

312,557.45

 

10/5/2004

 

4/5/2008

 

Perf.

 

3065998

 

Board of Cty Spv Prince William Cty

 

$

376,744.26

 

10/8/2004

 

7/16/2008

 

Perf.

 

3066428

 

Stafford Cty. Board of Supervisors

 

$

332,843.80

 

11/2/2004

 

11/2/2008

 

Perf.

 

3071551

 

Board of Cty Spv Prince William Cty

 

$

212,652.00

 

11/9/2004

 

7/5/2008

 

Perf.

 

3071552

 

Board of Cty Spv Prince William Cty

 

$

287,125.00

 

11/9/2004

 

7/5/2008

 

Perf.

 

3071883

 

Board of Cty Spv Prince William Cty

 

$

341,188.86

 

12/1/2004

 

5/21/2008

 

Perf.

 

3072040

 

Board of Cty Spv Prince William Cty

 

$

309,039.59

 

12/8/2004

 

6/1/2008

 

Perf.

 

3072317

 

Board of Cty Spv Prince William Cty

 

$

365,392.94

 

12/22/2004

 

7/16/2008

 

Perf.

 

3072686

 

Moreno Valley Properties

 

$

100,000.00

 

4/20/2005

 

1/18/2009

 

Fin.

 

3072966

 

U.S. Bank National Assoc.

 

$

297,220.00

 

3/8/2005

 

7/1/2008

 

Perf.

 

3073161

 

Coachella Valley Water District

 

$

45,863.20

 

3/25/2005

 

6/1/2008

 

Perf.

 

3073558

 

County of San Diego

 

$

242,360.00

 

3/30/2005

 

12/31/2008

 

Perf.

 

3074011

 

Stafford Cty. Board of Supervisors

 

$

686,171.00

 

3/22/2005

 

3/22/2008

 

Perf.

 

3074109

 

Coachella Valley Water District

 

$

18,714.85

 

3/28/2005

 

6/1/2008

 

Fin.

 

3074430

 

Aeromaritime Investment Co.

 

$

250,000.00

 

4/13/2005

 

6/30/2008

 

Perf.

 

3074488

 

Baltimore County, MD

 

$

30,000.00

 

4/28/2005

 

4/28/2008

 

Perf.

 

3074489

 

Baltimore County, MD

 

$

13,110.00

 

4/28/2005

 

4/28/2008

 

Perf.

 

3074948

 

Baltimore County, MD

 

$

52,272.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074949

 

Baltimore County, MD

 

$

110,000.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074950

 

Baltimore County, MD

 

$

30,000.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074951

 

Baltimore County, MD

 

$

167,652.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074952

 

Baltimore County, MD

 

$

41,223.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074953

 

Baltimore County, MD

 

$

78,105.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3074954

 

Baltimore County, MD

 

$

61,216.00

 

5/24/2005

 

5/24/2008

 

Perf.

 

3075027

 

Stafford County Board of Supervisors

 

$

78,176.00

 

5/11/2005

 

5/11/2008

 

Perf.

 

3075028

 

Stafford County Board of Supervisors

 

$

75,000.00

 

5/11/2005

 

5/11/2008

 

Perf.

 

3075032

 

Stafford County Board of Supervisors

 

$

5,313.00

 

5/17/2005

 

5/17/2008

 

Perf.

 

3075033

 

Stafford County Board of Supervisors

 

$

32,316.00

 

5/17/2005

 

5/17/2008

 

Perf.

 

3075034

 

Stafford County Board of Supervisors

 

$

164,393.00

 

5/17/2005

 

5/17/2008

 

Perf.

 

3075035

 

Stafford County Board of Supervisors

 

$

17,850.00

 

5/17/2005

 

5/17/2008

 

Perf.

 

3075157

 

First American Title Insurance Co.

 

$

625,000.00

 

5/18/2005

 

3/29/2009

 

Perf.

 

3075190

 

City of Victoria

 

$

485,225.50

 

5/25/2005

 

11/20/2008

 

Perf.

 

3075328

 

Burgess & Comm.of Walkersville

 

$

791,341.09

 

5/31/2005

 

5/31/2008

 

Perf.

 

3075330

 

Burgess & Comm.of Walkersville

 

$

64,600.00

 

5/31/2005

 

5/31/2008

 

Fin.

 

3075396

 

FC Caldwell LLC

 

$

87,069.90

 

6/1/2005

 

6/1/2008

 

Fin.

 

3075455

 

Dublin Murphy Estates Ltd.

 

$

96,000.00

 

6/8/2005

 

6/8/2008

 

Perf.

 

3075537

 

County of Culpeper

 

$

311,742.00

 

6/8/2005

 

6/8/2008

 

Perf.

 

3075538

 

County of Culpeper

 

$

97,506.00

 

6/8/2005

 

6/8/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

3075539

 

County of Culpeper

 

$

59,000.00

 

6/8/2005

 

6/8/2008

 

Perf.

 

3075540

 

County of Culpeper

 

$

26,300.00

 

6/8/2005

 

6/8/2008

 

Fin.

 

3075625

 

City of Chaska

 

$

54,082.00

 

6/21/2005

 

6/21/2008

 

Perf.

 

3076088

 

Baltimore County, MD

 

$

40,000.00

 

7/8/2005

 

7/8/2008

 

Perf.

 

3076089

 

Baltimore County, MD

 

$

11,762.00

 

7/8/2005

 

7/8/2008

 

Perf.

 

3076090

 

Baltimore County, MD

 

$

30,000.00

 

7/8/2005

 

7/8/2008

 

Perf.

 

3076091

 

Baltimore County, MD

 

$

29,403.00

 

7/8/2005

 

7/8/2008

 

Fin.

 

3076197

 

Trout Land LLC

 

$

900,000.00

 

8/1/2005

 

8/1/2008

 

Perf.

 

3076796

 

City of Maplewood

 

$

120,000.00

 

8/23/2005

 

8/23/2008

 

Perf.

 

3076854

 

Baltimore County, MD

 

$

55,920.00

 

8/25/2005

 

8/25/2008

 

Perf.

 

3076855

 

Baltimore County, MD

 

$

33,385.00

 

8/25/2005

 

8/25/2008

 

Perf.

 

3077125

 

Baltimore County, MD

 

$

40,000.00

 

9/6/2005

 

9/6/2008

 

Perf.

 

3077126

 

Baltimore County, MD

 

$

2,138.00

 

9/6/2005

 

9/6/2008

 

Perf.

 

3077127

 

Baltimore County, MD

 

$

27,900.00

 

9/6/2005

 

9/6/2008

 

Perf.

 

3077128

 

Baltimore County, MD

 

$

3,267.00

 

9/6/2005

 

9/6/2008

 

Perf.

 

3077238

 

Stafford County Board of Supervisors

 

$

14,000.00

 

9/8/2005

 

9/8/2008

 

Perf.

 

3077239

 

Stafford County Board of Supervisors

 

$

47,813.00

 

9/8/2005

 

9/8/2008

 

Perf.

 

3077240

 

Stafford County Board of Supervisors

 

$

47,085.00

 

9/8/2005

 

9/8/2008

 

Perf.

 

3077499

 

Dept. of Public Works

 

$

232,000.00

 

9/27/2005

 

9/27/2008

 

Perf.

 

3077512

 

Dept. of Public Works

 

$

30,000.00

 

9/27/2005

 

9/27/2008

 

Perf.

 

3077837

 

City of Ramsey

 

$

682,960.00

 

10/13/2005

 

10/13/2008

 

Fin.

 

3078142

 

Dr. Bahram Sina and Pari Sina

 

$

300,000.00

 

10/28/2005

 

7/29/2009

 

Fin.

 

3078458

 

Clarion Homes LLC

 

$

387,200.00

 

11/15/2005

 

11/15/2008

 

Perf.

 

3078463

 

Baltimore County, MD

 

$

8,235.00

 

11/15/2005

 

11/15/2008

 

Perf.

 

3078464

 

Baltimore County, MD

 

$

75,500.00

 

11/15/2005

 

11/15/2008

 

Perf.

 

3078846

 

Burgess & Comm.of Walkersville

 

$

63,200.00

 

12/5/2005

 

12/5/2008

 

Perf.

 

3078847

 

Burgess & Comm.of Walkersville

 

$

59,100.00

 

12/5/2005

 

12/5/2008

 

Perf.

 

3078848

 

Burgess & Comm.of Walkersville

 

$

747,131.13

 

12/5/2005

 

12/5/2008

 

Perf.

 

3078849

 

Burgess & Comm.of Walkersville

 

$

1,527,500.00

 

12/5/2005

 

12/5/2008

 

Perf.

 

3078965

 

Stafford County Board of Supervisors

 

$

174,889.50

 

12/9/2005

 

12/9/2008

 

Perf.

 

3079066

 

Baltimore county, MD

 

$

115,000.00

 

12/19/2005

 

12/19/2008

 

Perf.

 

3079067

 

Baltimore County, MD

 

$

30,000.00

 

12/19/2005

 

12/19/2008

 

Perf.

 

3079281

 

City of Oceanside

 

$

31,395.00

 

12/28/2005

 

12/28/2008

 

Fin.

 

3079321

 

Lennar Homes of Texas Land

 

$

250,000.00

 

1/3/2006

 

2/3/2009

 

Fin.

 

3079651

 

Aeromaritime Investment Co.

 

$

200,000.00

 

1/17/2006

 

6/30/2008

 

Fin.

 

3079660

 

Tenant-In-Common Owners

 

$

51,305.79

 

1/17/2006

 

1/17/2009

 

Perf.

 

3079833

 

Baltimore County, MD

 

$

47,336.00

 

1/24/2006

 

1/24/2009

 

Perf.

 

3079853

 

Baltimore County, MD

 

$

125,671.00

 

1/24/2006

 

1/24/2009

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

3080112

 

Baltimore County, MD

 

$

16,633.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080113

 

Baltimore County, MD

 

$

52,966.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080114

 

Baltimore County, MD

 

$

156,366.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080115

 

Baltimore County, MD

 

$

60,950.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080116

 

Baltimore County, MD

 

$

71,416.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080117

 

Baltimore County, MD

 

$

22,743.00

 

2/7/2006

 

2/7/2009

 

Perf.

 

3080329

 

City of Cottage Grove

 

$

1,088,309.11

 

3/2/2006

 

3/2/2008

 

Perf.

 

3080461

 

The City of Havre De Grace

 

$

25,000.00

 

2/27/2006

 

2/27/2009

 

Perf.

 

3080500

 

Baltimore County, MD

 

$

163,207.00

 

3/2/2006

 

3/2/2008

 

Perf.

 

3080501

 

Baltimore County, MD

 

$

101,062.00

 

3/2/2006

 

3/2/2008

 

Perf.

 

3080503

 

Baltimore County, MD

 

$

35,605.00

 

3/2/2006

 

3/2/2008

 

Perf.

 

3080506

 

Baltimore County, MD

 

$

278,177.00

 

3/2/2006

 

3/2/2008

 

Fin.

 

3080777

 

Kimbrell Fort Mill LP

 

$

237,000.00

 

3/9/2006

 

6/30/2008

 

Perf.

 

3080814

 

Board of County Comm. Of Frederick Cty

 

$

74,763.66

 

3/21/2006

 

3/21/2008

 

Perf.

 

3080881

 

City of Chanhassen

 

$

161,215.81

 

3/21/2006

 

3/21/2008

 

Perf.

 

3081260

 

City of Maple Grove

 

$

64,900.00

 

4/10/2006

 

4/10/2009

 

Perf.

 

3081261

 

City of Maple Grove

 

$

703,338.00

 

4/5/2006

 

2/1/2009

 

Fin.

 

3081685

 

Regent Land Investment LLC

 

$

44,300.00

 

5/15/2006

 

5/15/2008

 

Perf.

 

3082062

 

City of Maple Grove

 

$

77,770.00

 

5/23/2006

 

2/1/2009

 

Perf.

 

3082940

 

Dept. of Public Works

 

$

465,800.00

 

6/30/2006

 

6/30/2008

 

Perf.

 

3083192

 

City of Maple Grove

 

$

3,789,200.00

 

7/17/2006

 

2/1/2009

 

Perf.

 

3083193

 

City of Maple Grove

 

$

358,300.00

 

7/17/2006

 

2/1/2009

 

Perf.

 

3083251

 

Branch Forest Partners Ltd.

 

$

200,000.00

 

7/25/2006

 

7/25/2008

 

Perf.

 

3083584

 

Trico Electric Cooperative Inc.

 

$

25,651.19

 

8/9/2006

 

7/22/2008

 

Perf.

 

3083585

 

Trico Electric Cooperative Inc.

 

$

25,651.19

 

8/9/2006

 

7/22/2009

 

Perf.

 

3083658

 

Baltimore County, MD

 

$

22,374.00

 

8/10/2006

 

8/10/2008

 

Perf.

 

3083659

 

Baltimore County, MD

 

$

29,655.00

 

8/10/2006

 

8/10/2008

 

Perf.

 

3083694

 

County of San Diego

 

$

667,778.00

 

8/22/2006

 

8/22/2008

 

Perf.

 

3083695

 

County of San Diego

 

$

50,000.00

 

8/22/2006

 

8/22/2008

 

Perf.

 

3083696

 

County of San Diego

 

$

967,778.00

 

8/22/2006

 

8/22/2008

 

Perf.

 

3083879

 

City of Chanhassen

 

$

250,420.91

 

8/23/2006

 

8/23/2008

 

Fin.

 

3084302

 

Town of Cary

 

$

500,963.25

 

9/18/2006

 

9/18/2008

 

Perf.

 

3084530

 

City of Maple Grove

 

$

20,000.00

 

10/3/2006

 

2/1/2009

 

Fin.

 

3084958

 

Town of Cary

 

$

9,000.00

 

11/3/2006

 

11/3/2008

 

Perf.

 

3086696

 

Baltimore County, MD

 

$

5,455.00

 

2/9/2007

 

2/9/2008

 

Perf.

 

3086697

 

Baltimore County, MD

 

$

28,271.65

 

2/9/2007

 

2/9/2008

 

Perf.

 

3087862

 

Town of Cary

 

$

64,452.00

 

4/26/2007

 

4/25/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

3090286

 

Town of Cary

 

$

20,000.00

 

10/10/2007

 

10/8/2008

 

Perf.

 

3090287

 

Town of Cary

 

$

3,500.00

 

10/10/2007

 

10/8/2008

 

Fin.

 

3089722

 

Amtrust Bank

 

$

3,100,000.00

 

12/17/2007

 

11/2/2008

 

Fin.

 

3091179

 

AIG Annuity Insurance Co.

 

$

13,569,962.00

 

12/11/2007

 

12/4/2008

 

Perf.

 

3091799

 

Charles S Davis & Tracey A Davis

 

$

50,000.00

 

2/5/2008

 

9/10/2010

 

Perf.

 

3091923

 

Town of Cary

 

$

50,969.00

 

2/4/2008

 

2/1/2009

 

Fin.

 

3092069

 

Fidelity & Deposit Co. of Md.

 

$

5,000,000.00

 

2/15/2008

 

2/14/2009

 

Perf.

 

3092262

 

Town of Cary

 

$

29,724.00

 

2/28/2008

 

2/28/2009

 

Perf.

 

3092263

 

Town of Cary

 

$

3,250.00

 

2/28/2008

 

2/28/2009

 

Perf.

 

7401777

 

Board of Supervisors /Prince William

 

$

29,728.54

 

5/24/1999

 

8/24/2008

 

Perf.

 

7403137

 

Stafford County Board of Supervisors

 

$

35,527.00

 

1/11/2000

 

7/11/2008

 

Perf.

 

7403139

 

Stafford County Board of Supervisors

 

$

1,000.00

 

1/11/2000

 

7/11/2008

 

Perf.

 

7403140

 

Stafford County Board of Supervisors

 

$

34,624.00

 

1/11/2000

 

7/11/2008

 

Perf.

 

7403214

 

Stafford County Board of Supervisors

 

$

46,837.50

 

1/27/2000

 

4/26/2008

 

Perf.

 

7404762

 

Bd.of Supervisors of Prince Wm.Cty.

 

$

179,137.23

 

1/25/2001

 

8/20/2008

 

Perf.

 

7404842

 

Bd.Of Supervisors of Prince Wm.Cty.

 

$

27,800.10

 

2/8/2001

 

3/22/2008

 

Perf.

 

7405365

 

Stafford Cty. Board of Supervisors

 

$

23,493.00

 

5/22/2001

 

5/22/2008

 

Perf.

 

7405761

 

Bd of Supervisors of Prince Wm.Cty.

 

$

45,845.00

 

9/5/2001

 

8/24/2008

 

Perf.

 

7406097

 

Bd of Supervisors of Prince Wm.Cty.

 

$

174,237.80

 

11/29/2001

 

7/12/2008

 

Perf.

 

7409177

 

Board of Supervisors /Prince William

 

$

155,405.72

 

3/20/2002

 

9/19/2008

 

Perf.

 

7409222

 

Stafford County Board of Supervisors

 

$

75,035.15

 

3/27/2002

 

3/27/2009

 

Perf.

 

7410151

 

Board of Supervisors /Prince William

 

$

147,586.38

 

8/14/2002

 

7/16/2008

 

Perf.

 

7410606

 

Board of Supervisors /Prince William

 

$

122,793.80

 

10/24/2002

 

8/24/2008

 

Perf.

 

7411051

 

Board of Supervisors /Prince William

 

$

82,247.43

 

1/24/2003

 

12/30/2008

 

Perf.

 

7411069

 

Board of Supervisors /Prince William

 

$

263,047.09

 

1/23/2003

 

7/16/2008

 

Perf.

 

7411130

 

Stafford County Board of Supervisors

 

$

118,807.00

 

2/5/2003

 

5/21/2008

 

Perf.

 

7411453

 

Board of Supervisors /Prince William

 

$

106,093.25

 

4/9/2003

 

8/27/2008

 

Perf.

 

7411505

 

Stafford County Board of Supervisors

 

$

44,907.60

 

4/28/2003

 

4/28/2008

 

Perf.

 

7411515

 

Board of Supervisors Fairfax County

 

$

94,600.00

 

4/28/2003

 

4/28/2008

 

Perf.

 

7411592

 

Stafford County Board of Supervisors

 

$

17,342.00

 

5/7/2003

 

5/6/2008

 

Perf.

 

7411692

 

Burgess & Comm.of Walkersville

 

$

86,965.45

 

6/6/2003

 

6/6/2008

 

Perf.

 

7411693

 

Burgess & Comm.of Walkersville

 

$

64,600.00

 

6/6/2003

 

6/6/2008

 

Perf.

 

7412110

 

Bd.of Supervisors of Prince Wm.Cty.

 

$

177,192.23

 

8/11/2003

 

2/28/2009

 

Perf.

 

7412116

 

Bd.of Supervisors of Prince Wm.Cty.

 

$

25,000.00

 

8/8/2003

 

8/8/2008

 

Perf.

 

7412117

 

Bd.of Supervisors of Prince Wm.Cty.

 

$

25,000.00

 

8/8/2003

 

8/8/2008

 

Perf.

 

7412402

 

Bd of Supervisors of Prince Wm.Cty.

 

$

25,000.00

 

9/24/2003

 

9/24/2008

 

Fin.

 

7412572

 

City of Palm Springs

 

$

50,000.00

 

10/15/2003

 

9/30/2008

 

Perf.

 

7412763

 

Board of Supervisors /Prince William

 

$

230,558.90

 

11/5/2003

 

7/12/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

7413575

 

Stafford County Board of Supervisors

 

$

7,500.00

 

2/12/2004

 

2/2/2009

 

Perf.

 

7413576

 

Stafford County Board of Supervisors

 

$

92,970.00

 

2/12/2004

 

2/6/2009

 

Perf.

 

7413818

 

Board of Cty Spv Prince William Cty

 

$

167,314.65

 

3/12/2004

 

7/23/2008

 

Perf.

 

7413878

 

Baltimore County, Md

 

$

20,000.00

 

3/31/2004

 

3/31/2008

 

Perf.

 

7413880

 

Baltimore County, Md

 

$

28,314.00

 

3/31/2005

 

3/31/2008

 

Perf.

 

7413913

 

Stafford County Board of Supervisors

 

$

375,580.00

 

3/26/2004

 

3/23/2008

 

Perf.

 

7413986

 

Stafford County Board of Supervisors

 

$

169,278.00

 

4/2/2004

 

4/2/2008

 

Perf.

 

7413987

 

Stafford County Board of Supervisors

 

$

15,528.40

 

4/2/2004

 

4/2/2008

 

Perf.

 

7413988

 

Stafford County Board of Supervisors

 

$

171,882.00

 

4/2/2004

 

4/2/2008

 

Perf.

 

7414343

 

Stafford County Board of Supervisors

 

$

91,916.00

 

5/24/2004

 

5/24/2008

 

Perf.

 

7414345

 

Stafford County Board of Supervisors

 

$

24,518.00

 

5/24/2004

 

5/24/2008

 

Perf.

 

7414582

 

Stafford County Board of Supervisors

 

$

112,501.65

 

7/1/2004

 

7/1/2008

 

Perf.

 

7414583

 

Stafford County Board of Supervisors

 

$

8,203.00

 

7/1/2004

 

7/1/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf.

 

7414584

 

Stafford County Board of Supervisors

 

$

37,998.80

 

7/1/2004

 

7/1/2008

 

Perf.

 

3092091

 

County of Essex

 

$

142,755.00

 

3/3/2008

 

3/3/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank of America - Total

 

$

53,557,042.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf

 

P002376

 

Board of Cty Superv. Prince William Cty.

 

$

3,105.00

 

7/28/2005

 

7/28/2008

 

Perf

 

P002516

 

Board of Cty Superv. Prince William Cty.

 

$

122,996.07

 

8/31/2005

 

8/28/2008

 

Perf

 

P002861

 

Board of Cty Superv. Prince William Cty.

 

$

275,459.96

 

1/20/2006

 

7/20/2008

 

Perf

 

P003060

 

Board of Cty Superv. Prince William Cty.

 

$

396,639.60

 

3/22/2006

 

9/22/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sun Trust - Total

 

$

798,200.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fin.

 

S051174

 

Dev. Guaranty Group-PG

 

$

75,000.00

 

4/3/1995

 

4/3/2008

 

Perf.

 

S133745

 

Prince William County

 

$

48,043.89

 

10/14/1999

 

8/28/2008

 

Perf.

 

S133754

 

Dev. Guaranty Group-PG

 

$

67,500.00

 

10/11/1997

 

4/23/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wachovia - Total

 

$

190,543.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf

 

61667792

 

RF Land Holdings III, LLC

 

$

2,655,372.00

 

7/25/2007

 

7/25/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Fin

 

61653708

 

EQR-Urban Renewal 77 Hudson

 

$

15,553,624.00

 

8/7/2007

 

6/20/2008

 

Fin

 

61653709

 

SCC-Canyon II, LLC

 

$

5,953,485.00

 

8/7/2007

 

7/28/2008

 

Fin

 

61653711

 

Hearthstone Multi-Asset Entity A

 

$

6,122,178.00

 

8/7/2007

 

5/13/2008

 

Fin

 

61653713

 

Acacia Credit Fund 10-A LLC

 

$

4,248,763.00

 

8/7/2007

 

7/29/2008

 

Fin

 

61653717

 

M&T Mortgage Corp.

 

$

8,821,853.00

 

8/7/2007

 

4/10/2008

 

Fin

 

61653724

 

M&T Mortgage Corp.

 

$

4,158,150.60

 

8/7/2007

 

7/26/2008

 

Fin

 

61654468

 

Township of Verona

 

$

149,014.32

 

8/7/2007

 

10/24/2008

 

Fin

 

61654598

 

Ohio Savings Bank

 

$

1,525,000.00

 

8/7/2007

 

10/27/2008

 

Fin

 

61654599

 

Ohio Savings Bank

 

$

7,500,000.00

 

8/7/2007

 

10/27/2008

 

Fin

 

61654974

 

City of Maple Grove

 

$

37,000.00

 

8/7/2007

 

2/1/2009

 

Fin

 

61655175

 

Township of Galloway

 

$

1,435,000.00

 

8/7/2007

 

12/1/2008

 

Fin

 

61655486

 

Old Republic Insurance Co.

 

$

5,000,000.00

 

8/7/2007

 

11/23/2008

 

Fin

 

61655494

 

Sunset Drive Partners Ltd.

 

$

1,402,462.00

 

8/7/2007

 

9/5/2009

 

Fin

 

61655500

 

Oster Construction Inc.

 

$

3,000,000.00

 

8/7/2007

 

7/28/2008

 

Fin

 

61655502

 

Roseland/Port Imperial Partners

 

$

3,500,000.00

 

8/7/2007

 

6/9/2008

 

Fin

 

61655504

 

Security Title Agency

 

$

183,995.63

 

8/7/2007

 

7/28/2008

 

Fin

 

61655873

 

Essex County Improvement Auth

 

$

1,243,740.00

 

8/7/2007

 

4/23/2008

 

Fin

 

61655875

 

Security Title Agency

 

$

383,441.81

 

8/7/2007

 

6/9/2008

 

Fin

 

61655876

 

Security Title Agency

 

$

337,375.23

 

8/7/2007

 

6/9/2008

 

Fin

 

61655877

 

Security Title Agency

 

$

167,269.13

 

8/7/2007

 

2/3/2009

 

Fin

 

61655879

 

Guaranty Bank as Agent

 

$

10,000,000.00

 

8/7/2007

 

3/30/2008

 

Fin

 

61656175

 

Philip Perskie, Esq.

 

$

1,600,000.00

 

8/7/2007

 

12/17/2008

 

Perf

 

61656452

 

National Home Insurance Co.

 

$

150,000.00

 

8/7/2007

 

12/31/2008

 

Fin

 

61656652

 

Lowndes Drostick Doster Kantor

 

$

2,500,000.00

 

8/7/2007

 

4/30/2008

 

Fin

 

61656721

 

Roseland/Port Imperial Partners

 

$

15,210,686.00

 

8/7/2007

 

2/8/2009

 

Fin

 

61656722

 

Roseland/Port Imperial Partners

 

$

5,000,000.00

 

8/7/2007

 

2/8/2009

 

Fin

 

61656874

 

Board of County Supervisors

 

$

151,675.31

 

8/7/2007

 

12/15/2008

 

Fin

 

61656898

 

Lane Road Associates LLC

 

$

200,000.00

 

8/7/2007

 

12/20/2009

 

Fin

 

61656928

 

Rock-Monroe LLC

 

$

5,994,769.85

 

8/7/2007

 

12/20/2007

 

Fin

 

61657274

 

Ace American Insurance

 

$

9,135,954.00

 

8/7/2007

 

12/28/2007

 

Fin

 

61657397

 

Olde South Homes Inc.

 

$

110,000.00

 

8/7/2007

 

1/5/2009

 

Perf

 

61657795

 

Saddle Creek Investments Ltd.

 

$

250,000.00

 

8/7/2007

 

7/12/2009

 

Fin

 

61657812

 

Beaufort County Zoning

 

$

102,500.00

 

8/7/2007

 

1/11/2009

 

Fin

 

61657814

 

Beaufort County Zoning

 

$

1,059,722.05

 

8/7/2007

 

1/11/2009

 

Perf

 

61658037

 

Board of County Supervisors

 

$

249,020.00

 

8/7/2007

 

12/7/2008

 

Perf

 

61658038

 

GBF/LIC 228 Ltd.

 

$

590,634.47

 

8/7/2007

 

6/17/2008

 

Perf

 

61658116

 

Summit Ventures LLC

 

$

100,000.00

 

8/7/2007

 

5/25/2008

 

Perf

 

61658121

 

Board of County Supervisors

 

$

268,286.61

 

8/7/2007

 

10/4/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Fin

 

61658136

 

Continental Casualty Co.

 

$

5,155,790.00

 

8/7/2007

 

1/4/2009

 

Perf

 

61658552

 

Miles & Stockbridge PC

 

$

342,000.00

 

8/7/2007

 

3/17/2009

 

Perf

 

61658735

 

Board of County Supervisors

 

$

53,986.61

 

8/7/2007

 

10/4/2008

 

Perf

 

61659403

 

Lower Moreland Township School

 

$

12,500.00

 

8/7/2007

 

5/13/2008

 

Perf

 

61659742

 

Melissa Road Partners Ltd.

 

$

342,600.00

 

8/7/2007

 

4/21/2009

 

Perf

 

61660481

 

Northwest Building Ltd.

 

$

75,000.00

 

8/7/2007

 

4/30/2010

 

Perf

 

61660840

 

The Travelers Indemnity Co.

 

$

599,000.00

 

8/7/2007

 

10/11/2008

 

Perf

 

61660985

 

Heritage Bend Lot Venture

 

$

1,220,500.00

 

8/7/2007

 

9/19/2008

 

Perf

 

61661208

 

Chicago Title Insurance Co.

 

$

632,919.00

 

8/7/2007

 

4/1/2009

 

Perf

 

61661210

 

Chicago Title Insurance Co.

 

$

1,055,177.00

 

8/7/2007

 

4/1/2009

 

Perf

 

61661281

 

City of Sacramento

 

$

2,407,162.00

 

8/7/2007

 

3/28/2008

 

Perf

 

61661282

 

City of Sacramento

 

$

1,120,062.00

 

8/7/2007

 

3/28/2008

 

Fin

 

61661861

 

National Union Fire Insurance Co.

 

$

500,000.00

 

8/7/2007

 

10/31/2008

 

Perf

 

61662063

 

SCC-Canyon II, LLC

 

$

900,000.00

 

8/7/2007

 

4/11/2008

 

Perf

 

61662263

 

Board of County Supervisors

 

$

424,046.29

 

8/7/2007

 

10/16/2008

 

Perf

 

61662361

 

Virginia Commerce Bank

 

$

750,000.00

 

8/7/2007

 

7/17/2008

 

Perf

 

61662628

 

City of Maple Grove

 

$

252,200.00

 

8/7/2007

 

2/1/2009

 

Perf

 

61662921

 

Patapsco Landing LLC

 

$

375,000.00

 

8/7/2007

 

4/30/2008

 

Fin

 

61663243

 

Prado Community Assoc.

 

$

1,970,641.70

 

8/7/2007

 

5/14/2008

 

Perf

 

61663341

 

Genco-Homes Parvins Mill, LLC

 

$

35,000.00

 

8/7/2007

 

11/3/2008

 

Perf

 

61663544

 

Board of County Supervisors

 

$

153,595.15

 

8/7/2007

 

11/4/2008

 

Perf

 

61663746

 

Township of Verona

 

$

237,270.88

 

8/7/2007

 

5/9/2009

 

Perf

 

61663902

 

Township of Verona

 

$

162,890.83

 

8/7/2007

 

5/9/2009

 

Perf

 

61663903

 

Township of Verona

 

$

32,319.96

 

8/7/2007

 

5/9/2009

 

Perf

 

61663904

 

Township of Verona

 

$

41,436.29

 

8/7/2007

 

5/9/2009

 

Perf

 

61663905

 

Township of Verona

 

$

79,219.40

 

8/7/2007

 

5/9/2009

 

Fin

 

61664164

 

Phoenix Assoc. of Greensboro

 

$

32,000.00

 

8/7/2007

 

5/14/2008

 

Fin

 

61664165

 

Phoenix Assoc. of Greensboro

 

$

39,000.00

 

8/7/2007

 

5/14/2008

 

Fin

 

61664166

 

Phoenix Assoc. of Greensboro

 

$

55,000.00

 

8/7/2007

 

5/14/2008

 

Fin

 

61664167

 

Phoenix Assoc. of Greensboro

 

$

31,000.00

 

8/7/2007

 

5/14/2008

 

Fin

 

61664168

 

Phoenix Assoc. of Greensboro

 

$

44,000.00

 

8/7/2007

 

5/14/2009

 

Fin

 

61664169

 

Phoenix Assoc. of Greensboro

 

$

24,000.00

 

8/7/2007

 

5/14/2008

 

Fin

 

61664201

 

Genco-Homes Parvins Mill, LLC

 

$

50,000.00

 

8/7/2007

 

5/17/2008

 

Perf

 

61665326

 

Platinum Developers

 

$

1,892,064.00

 

8/7/2007

 

1/2/2010

 

Fin

 

61665594

 

Texas State Bank

 

$

750,000.00

 

8/7/2007

 

7/29/2008

 

Perf

 

61665595

 

Remington Pointe LLC

 

$

200,000.00

 

8/7/2007

 

6/27/2008

 

Fin

 

61666233

 

Barry Bielat

 

$

300,000.00

 

8/7/2007

 

6/21/2008

 

Fin

 

61666511

 

GMAC Model Home Finance LLC

 

$

424,919.00

 

8/7/2007

 

7/3/2008

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

Perf

 

61666513

 

GMAC Model Home Finance LLC

 

$

471,878.00

 

8/7/2007

 

7/3/2008

 

Fin

 

61666515

 

GMAC Model Home Finance LLC

 

$

2,929,306.00

 

8/7/2007

 

7/3/2008

 

Fin

 

61666712

 

Amtrust Bank

 

$

5,000,000.00

 

8/7/2007

 

7/31/2008

 

Perf

 

61667335

 

Premier Title Inc.

 

$

363,671.20

 

8/7/2007

 

8/31/2008

 

Perf

 

61667352

 

Wynmere Hunt Assoc.

 

$

250,000.00

 

8/7/2007

 

8/11/2008

 

Perf

 

61667371

 

Town of Cary

 

$

1,491,786.40

 

8/7/2007

 

7/16/2009

 

Perf

 

61668871

 

Avenue One Community Associate Inc.

 

$

235,477.81

 

8/7/2007

 

7/31/2008

 

Fin

 

61669788

 

K and M Associates Inc.

 

$

127,000.00

 

8/16/2007

 

5/31/2008

 

Perf

 

61670351

 

City of Maple Grove

 

$

20,000.00

 

10/1/2007

 

2/1/2009

 

Fin

 

61670945

 

Deer Park Meadows East LLC

 

$

100,000.00

 

11/19/2007

 

11/19/2008

 

Fin

 

61671472

 

Stafford Land Co. Inc.

 

$

237,500.00

 

1/8/2008

 

1/10/2010

 

Fin

 

63660708

 

Platinum Developers at Florence I

 

$

174,793.50

 

2/6/2008

 

5/7/2008

 

Fin

 

63660867

 

Basin Ltd. &/or Southwest Bank

 

$

1,904,430.00

 

2/19/2008

 

3/1/2011

 

Fin

 

63668068

 

Elm Tree Properties LLC

 

$

500,000.00

 

2/19/2008

 

2/19/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank NA

 

$

162,629,115.03

 

 

 

 

 

 

 

Total Letters of Credit Outstanding

 

$

236,533,034.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

m:\mbla\khov-lcsatclosing0308.xls

--------------------------------------------------------------------------------

SCHEDULE 5.1.8

MATERIAL EVENTS SINCE OCTOBER 31, 2007

None.

--------------------------------------------------------------------------------

SCHEDULE 5.1.12

CONSENTS AND APPROVALS

None.

--------------------------------------------------------------------------------

EXHIBIT 1.1(A)
FORM OF
ASSIGNMENT AND ASSUMPTION AGREEMENT

                    This ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”)
is dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee]
(the “Assignee”). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
“Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment as if set forth herein in full.

                    For an agreed consideration, the Assignor hereby irrevocably
sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases
and assumes from the Assignor, subject to and in accordance with the Standard
Terms and Conditions and the Credit Agreement, as of the Effective Date inserted
by the Agent as contemplated below, the interest in and to all of the Assignor’s
rights and obligations under the Credit Agreement and any other documents or
instruments delivered pursuant thereto that represents the amount and percentage
interest identified below of all of the Assignor’s outstanding rights and
obligations under the respective facilities identified below (including, to the
extent included in any such facilities, Letters of Credit and Swing Loans) (the
“Assigned Interest”). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment, without
representation or warranty by the Assignor.

 

 

 

1.

Assignor:

______________________________

 

 

 

2.

Assignee:

______________________________ [and is an Affiliate1]

 

 

 

3.

Borrower:

K. Hovnanian Enterprises, Inc.

 

 

 

4.

Agent:

PNC Bank, National Association, as the agent under the Credit Agreement

 

 

 

5.

Credit Agreement:

The Seventh Amended and Restated Credit Agreement dated as of March 7, 2008
among K. Hovnanian Enterprises, Inc. (the “Borrower”), Hovnanian Enterprises,
Inc., as a Guarantor, the Lenders now or hereafter party thereto and PNC Bank,
National Association, as administrative agent (the “Agent”)

 

 

--------------------------------------------------------------------------------

1

Insert if applicable.

--------------------------------------------------------------------------------

 

 

 

6.

Assigned Interest:

 

 

 

 

 

 

 

 

Facility Assigned

 

Aggregate
Amount of
Commitment/Loans
for all Lenders

 

Amount of
Commitment/Loans
Assigned

 

Percentage
Assigned of
Commitment/Loans 2

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Revolving Credit Commitment

 

$_____________

 

$_____________

 

__________%

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]3

 

 

 

 

 

The terms set forth in this Assignment are hereby agreed to:

 

 

 

ASSIGNOR

 

 

 

[NAME OF ASSIGNOR]

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

ASSIGNEE

 

[NAME OF ASSIGNEE]

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

[Consented to and]4 Accepted:

 

 

PNC BANK, NATIONAL ASSOCIATION, as Agent

 

 

By

 

 

 

--------------------------------------------------------------------------------

 

Name:

 

Title:

 

 

 

 

 

--------------------------------------------------------------------------------

2

Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of
all Lenders thereunder.

 

 

3

Assignor shall pay a fee of $3,500 to the Agent in connection with the
Assignment.

 

 

4

To be added only if the consent of the Agent is required by the terms of the
Credit Agreement.

--------------------------------------------------------------------------------

 

 

 

[Consented to:]5

 

 

[NAME OF BORROWER OR OTHER RELEVANT PARTY]

 

 

By

 

 

 

--------------------------------------------------------------------------------

 

       Name:

 

       Title:

 

 

 

--------------------------------------------------------------------------------

5

To be added only if the consent of the Borrower and/or other parties (e.g. Swing
Loan Lender, Letter of Credit Lender) is required by the terms of the Credit
Agreement.

--------------------------------------------------------------------------------

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
AND ASSUMPTION AGREEMENT

                    1. Representations and Warranties.

                    1.1 Assignor. The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect
to (i) any statements, warranties or representations made in or in connection
with any Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document delivered pursuant thereto, other than this Assignment
(herein collectively the “Loan Documents”), or any collateral thereunder, (iii)
the financial condition of the Borrower, any of its Subsidiaries or Affiliates
or any other Person obligated in respect of any Loan Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or Affiliates
or any other Person of any of their respective obligations under any Loan
Document.

                    1.2. Assignee. The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements, if any, of an eligible assignee under the Credit
Agreement, (iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (iv) it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 7.3 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision,
and (v) if Assignee is not incorporated or organized under the laws of the
United States of America or any State thereof, attached to the Assignment is any
documentation required to be delivered by it pursuant to the terms of the Credit
Agreement, duly completed and executed by the Assignee; and (b) agrees that (i)
it will, independently and without reliance on the Agent, the Assignor or any
other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

                    2. Payments. From and after the Effective Date, the Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.6

                    3. General Provisions. This Assignment shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment may be executed in any number of
counterparts, which together shall constitute one instrument. Delivery of an
executed counterpart of a signature page of this Assignment by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment.
This Assignment shall be governed by, and construed in accordance with, the laws
of the State of New Jersey.

 

 

--------------------------------------------------------------------------------

6

Agent should consider whether this method conforms to its systems. In some
circumstances, the following alternative language may be appropriate: "From and
after the Effective Date, the Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignee whether such amounts have accrued prior to or on or
after the Effective Date. The Assignor and the Assignee shall make all
appropriate adjustments in payments by the Agent for periods prior to the
Effective Date or with respect to the making of this assignment directly between
themselves."

--------------------------------------------------------------------------------

 

 

 

executed counterpart of a signature page of this Assignment by telecopy shall be
effective as delivery of a manually executed counterpart of this Assignment.
This Assignment shall be governed by, and construed in accordance with, the laws
of the State of New Jersey.

--------------------------------------------------------------------------------

EXHIBIT 1.1(G)(1)
FORM OF
AMENDED AND RESTATED GUARANTY AND SURETYSHIP AGREEMENT

                    THIS AMENDED AND RESTATED GUARANTY AND SURETYSHIP AGREEMENT
(the “Guarantee”) is made and entered into March 7, 2008, by each of the
entities listed on the signature pages hereto (each a “Guarantor” and
collectively, the “Guarantors”), in favor of PNC BANK, NATIONAL ASSOCIATION,
including its successors and assigns, as administrative agent for the Lenders
under the Credit Agreement described below (the “Agent”).

                    In order to induce the Lenders to continue existing, and to
make new, loans to K. Hovnanian Enterprises, Inc., a California corporation (the
“Borrower”), in accordance with the Seventh Amended and Restated Credit
Agreement of even date herewith (as it may hereafter from time to time be
amended, restated, modified or supplemented, the “Credit Agreement”) by and
among the Borrower, Hovnanian Enterprises, Inc. (one of the Guarantors), the
Agent, and the Lenders now or hereafter party thereto (the “Lenders”), each
Guarantor hereby unconditionally and irrevocably guarantees, and becomes surety
as though it was a primary obligor for, the full and timely payment when due,
whether at maturity, by declaration, acceleration or otherwise, of all
Obligations (as defined in the Credit Agreement), both those now in existence
and those that shall hereafter be made, of the Borrower and each and every other
Loan Party to the Agent and the Lenders, or any of their respective Affiliates,
under the Credit Agreement and the Notes issued by the Borrower in connection
therewith and any of the other Loan Documents, together with any extensions,
renewals, replacements or refundings thereof and including, without limitation,
all costs and expenses of enforcement and collection, including reasonable
attorney’s fees) (hereinafter referred to as the “Guaranteed Indebtedness”),
whether or not such Guaranteed Indebtedness or any portion thereof shall
hereafter be released or discharged (other than as a result of the full
indefeasible payment thereof) or is for any reason invalid or unenforceable.

                    19. Definitions. Capitalized terms used herein and not
otherwise defined herein shall have such meanings given to them in the Credit
Agreement.

                    20. Guaranty. Each Guarantor agrees to make full payment
forthwith upon demand of the Agent when the Guaranteed Indebtedness or any
portion thereof is due to be paid by the Borrower or any other Guarantor to the
Lenders, whether at stated maturity, by declaration, acceleration or otherwise.
Each Guarantor agrees to make such full payment irrespective of whether or not
any one or more of the following events has occurred: (i) the Agent has made any
demand on the Borrower or any other Guarantor; (ii) the Agent has taken any
action of any nature against the Borrower or any other Guarantor; (iii) the
Agent has pursued any rights which it has against any other Person who may be
liable for the Guaranteed Indebtedness; (iv) the Agent holds or has resorted to
any security for the Guaranteed Indebtedness; or (v) the Agent has invoked any
other remedy or right it has available with respect to the Guaranteed
Indebtedness. Each Guarantor further agrees to make full payment to the Lenders
even if circumstances exist which otherwise constitute a legal or equitable
discharge of such Guarantor as surety or guarantor.

                    21. Representations and Warranties. The terms, conditions
and provisions of Section 5.1 [Representations and Warranties] of the Credit
Agreement are incorporated herein by reference as if fully set forth in this
Guarantee. The Guarantors, jointly and severally, without any further act or
undertaking or the occurrence of any other event, make the representations and
warranties set forth in Section 5.1 [Representations and Warranties] of the
Credit Agreement to the Agent and to each of the Lenders on the date hereof and
on the Closing Date and each date thereafter on which a Loan is made or a Letter
of Credit is issued as provided in and subject to Section 6.1 [First Loans and
Letters of Credit] and Section 6.2 [Each Additional Loan or Letter of Credit] of
the Credit Agreement. In addition, each Guarantor

--------------------------------------------------------------------------------

warrants to the Agent and the Lenders that: (i) no other agreement,
representation or special condition exists between such Guarantor and the Agent
or any Lender regarding the liability of such Guarantor hereunder, nor does any
understanding exist between such Guarantor and any Lender that the obligations
of such Guarantor hereunder are or will be other than as set forth herein; and
(ii) as of the date hereof, such Guarantor has no defense whatsoever to any
action or proceeding that may be brought to enforce this Guarantee.

                    22. Waiver as to Enforcement, Etc. Until all of the
Guaranteed Indebtedness is paid in full, each Guarantor waives and agrees not to
enforce any of the rights of such Guarantor against the Borrower or the other
Guarantors or the Agent and the Lenders, as the case may be, including, but not
limited to: (i) any right of such Guarantor to be subrogated in whole or in part
to any right or claim with respect to any Guaranteed Indebtedness or any portion
thereof to the Lenders which might otherwise arise from payment by any Guarantor
to the Lenders on the account of the Guaranteed Indebtedness or any portion
thereof; and (ii) any right of any Guarantor to require the marshalling of
assets. If any amount shall be paid to any Guarantor in violation of the
preceding sentence, such amount shall be deemed to have been paid to such
Guarantor for the benefit of, and held in trust for the benefit of, the Lenders
and shall forthwith be paid to the Agent and the Lenders to be credited and
applied upon the Guaranteed Indebtedness, whether matured or unmatured, in
accordance with the terms of the Credit Agreement. Each Guarantor acknowledges
that it will receive direct and indirect benefits from the financing
arrangements contemplated by the Credit Agreement and that the waivers set forth
in this Section are knowingly made in contemplation of such benefits.

                    23. Waivers as to Lender Remedies. Each Guarantor waives
promptness and diligence by the Lenders with respect to its rights under the
Credit Agreement or any of the other Loan Documents, including, but not limited
to, this Guarantee.

                    24. Waivers as to Certain Notices. Each Guarantor waives any
and all notice, disclosure and demand : (i) with respect to acceptance by the
Agent on behalf of the Lenders of this Guarantee; (ii) with respect to the
provisions of any note, instrument or agreement relating to the Guaranteed
Indebtedness; (iii) with respect to any default in connection with the
Guaranteed Indebtedness; and (iv) of any other nature which otherwise might be
required from time to time to preserve intact any rights against any Guarantor.

                    25. Waivers as to Presentment, Etc. Each Guarantor waives
any presentment, demand, notice of dishonor or nonpayment, protest, and notice
of protest in connection with the Guaranteed Indebtedness.

                    26. Obligations Absolute. The obligations of the Guarantors
hereunder and under each of the Security Documents shall not be discharged or
impaired or otherwise diminished by the failure, default, omission, or delay,
willful or otherwise, by any Lender, the Agent, the Borrower, any Guarantor or
any other obligor on any of the Guaranteed Indebtedness, or by any other act or
thing or omission or delay to do any other act or thing which may or might in
any manner or to any extent vary the risk of any Guarantor or would otherwise
operate as a discharge of any Guarantor as a matter of law or equity. Each of
the Guarantors agrees that the Guaranteed Indebtedness will be paid and
performed strictly in accordance with the terms of the Loan Documents. Without
limiting the generality of the foregoing, each Guarantor hereby consents to, at
any time and from time to time and without any notice to any Guarantor, and the
joint and several obligations of each Guarantor hereunder shall not be
diminished, terminated, or otherwise similarly affected by any of the following:

                    26.1 Any lack of genuineness, legality, validity,
enforceability or allowability (in a bankruptcy, insolvency, reorganization or
similar proceeding, or otherwise), or any avoidance or subordination, in whole
or in part, of any Loan Document or any of the Guaranteed Indebtedness and

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regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of the Guaranteed Indebtedness, any of the terms of
the Loan Documents, or any rights of the Agent or the Lenders or any other
Person with respect thereto;

                    26.2 Any increase, decrease, or change in the amount,
nature, type or purpose of, or any release, surrender, exchange, compromise,
extension, indulgence with respect to payment of or settlement, renewal or
waiver of, any of the Guaranteed Indebtedness (whether or not contemplated by
the Loan Documents as presently constituted); any waiver or change in the time,
manner, method, or place of payment or performance of, or in any other term of,
any of the Guaranteed Indebtedness including without limitation, the rate of
interest charged to the Borrower or any Guarantor, of any note, instrument, or
agreement relating to the Guaranteed Indebtedness or any portion thereof; any
execution or delivery of any additional Loan Documents; or any amendment,
restatement, modification or supplement to, or refinancing or refunding of, any
Loan Document or any of the Guaranteed Indebtedness;

                    26.3 Any failure to assert any breach of or default under
any Loan Document or any of the Guaranteed Indebtedness; any extensions of
credit in excess of the amount committed under or contemplated by the Loan
Documents or under in circumstances in which any condition to such extensions of
credit has not been satisfied; any forbearance, exercise or non-exercise, or any
other failure, omission, breach, default, delay, release, or wrongful action in
connection with any exercise or non-exercise, of any right or remedy against the
Borrower any Guarantor or any other Person under or in connection with any Loan
Document or any of the Guaranteed Indebtedness; any refusal of payment or
performance of any of the Guaranteed Indebtedness, whether or not with any
reservation of rights against any Guarantor; or any application of collections
(including but not limited to collections resulting from realization upon any
direct or indirect security for the Guaranteed Indebtedness) to other
obligations, if any, not entitled to the benefits of this Guarantee, in
preference to Guaranteed Indebtedness entitled to the benefits of this
Guarantee, or if any collections are applied to Guaranteed Indebtedness, any
application to particular Guaranteed Indebtedness; any defense or other right
arising by reason of any law now or hereafter in effect in any jurisdiction
pertaining to election of remedies (including but not limited to anti-deficiency
laws, “one action” laws or the like), or by reason of any election of remedies
or other action or inaction by the Agent or the Lenders, or any of them
(including but not limited to commencement or completion of any judicial
proceeding or nonjudicial sale or other action in respect of collateral security
for any of the Guaranteed Indebtedness), which results in denial or impairment
of the right of the Agent or the Lenders, or any of them, to seek a deficiency
against the Borrower or any other Person or which otherwise discharges or
impairs any of the Guaranteed Indebtedness; and any and all defenses it may now
or hereafter have based on principles of suretyship, impairment of collateral,
or the like;

                    26.4 Any taking, exchange, amendment, modification, waiver,
supplement, termination, subordination, compromise, release, exchange,
surrender, loss, or impairment of, or any failure to protect, perfect, or
preserve the value of, or any enforcement of, realization upon, or exercise of
rights, or remedies under or in connection with, or any failure, omission,
breach, default, delay, or wrongful action by the Agent or the Lenders, or any
of them, or any other Person in connection with the enforcement of, realization
upon, or exercise of rights or remedies under or in connection with, or, any
other action or inaction by any of the Agent or the Lenders, or any other Person
in respect of, any direct or indirect security for any of the Guaranteed
Indebtedness;

                    26.5 Any merger, consolidation, liquidation, dissolution,
winding-up, charter revocation, or forfeiture, or other change in, restructuring
or termination of the corporate structure or existence of, the Borrower or any
other Person; any bankruptcy, insolvency, reorganization or similar proceeding
with respect to the Borrower or any other Person; or any action taken or
election made by the Agent or the Lenders, or any of them (including but not
limited to any election under Section 1111(b)(2) of the United States Bankruptcy
Code), the Borrower, or any other Person in connection with any such proceeding;

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                    26.6 Any defense, setoff, or counterclaim which may at any
time be available to or be asserted by the Borrower or any other person with
respect to any Loan Document or any of the Guaranteed Indebtedness; or any
discharge by operation of law or release of the Borrower or any other Person
from the performance or observance of any Loan Document or any of the Guaranteed
Indebtedness; or

                    26.7 Any other event or circumstance, whether similar or
dissimilar to the foregoing, and whether known or unknown, which might otherwise
constitute a defense available to, or limit the liability of, any Guarantor, a
guarantor or a surety, excepting only full, strict, and indefeasible payment and
performance of the Guaranteed Indebtedness in full.

                    27. Joint and Several Obligations. Each Guarantor agrees to
be jointly and severally bound by the terms of this Guarantee and jointly and
severally liable under this Guarantee. As a result of such liability, each
Guarantor acknowledges that the Lenders may, in their sole discretion, elect to
enforce this Guarantee for the total Guaranteed Indebtedness against any
Guarantor without any duty or responsibility to pursue the other Guarantors and
that such an election by the Lenders shall not be a defense to any action the
Agent on behalf of the Lenders may elect to take against any Guarantor.

                    28. Set-Off, Default Payments by Borrower. If any amount
owing hereunder shall have become due and payable (by acceleration or
otherwise), any Lender and any branch, subsidiary or affiliate of any Lender
anywhere in the world shall each have the right, at any time and from time to
time to the fullest extent permitted by Law, in addition to all other rights and
remedies available to it, without prior notice to any Guarantor, to set-off
against and to appropriate and apply to such due and payable amounts any debt
owing to, and any other funds held in any manner for the account of any
Guarantor by any Lender or any such branch, subsidiary or affiliate including,
without limitation, all funds in all deposit accounts (whether time or demand,
general or special, provisionally credited or finally credited, or otherwise)
now or hereafter maintained by any Guarantor with any Lender or such branch,
subsidiary or affiliate. Such right shall exist whether or not any Lender shall
have given notice or made any demand hereunder or under any of the Notes or Loan
Documents, whether or not such debt owing to or funds held for the account of
any Guarantor is or are matured or unmatured, and regardless of the existence or
adequacy of any collateral, guarantee or any other security, right or remedy
available to any Lender. Each Guarantor hereby consents to and confirms the
foregoing arrangements, and confirms each Lenders rights and each such branch’s,
subsidiary’s and affiliate’s rights of banker’s lien and set-off.

                    29. Additional Guaranteed Indebtedness. Each Guarantor
recognizes and agrees that the Borrower, after the date hereof, may incur
additional Obligations or other obligations, fees and expenses to the Lenders
under the Credit Agreement, refinance existing Guaranteed Indebtedness or pay
existing Guaranteed Indebtedness and subsequently incur additional Obligations
to the Lenders under the Credit Agreement, and that in any such transaction,
even if such transaction is not now contemplated, the Lenders will rely in any
such case upon this Guarantee and the enforceability thereof against each
Guarantor and that this Guarantee shall remain in full force and effect with
respect to such future Obligations of the Borrower to the Lenders and such
Obligations shall for all purposes constitute Guaranteed Indebtedness.

                    30. Reinstatement. Each Guarantor further agrees that, if at
any time all or any part of any payment, from whomever received, theretofore
applied by the Lenders to any of the Guaranteed Indebtedness is or must be
rescinded or returned by the Lenders for any reason whatsoever including,
without limitation, the insolvency, bankruptcy or reorganization of any
Guarantor, such liability shall, for the purposes of this Guarantee, to the
extent that such payment is or must be rescinded or returned, be deemed to have
continued in existence, notwithstanding such application by any Lender, and this
Guarantee shall continue to be effective or be reinstated, as the case may be,
as to such liabilities, all as though such application by the Lenders had not
been made.

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                    31. Amendments and Waivers. Each Guarantor agrees that no
failure or delay on the part of any Lender or of the Agent on behalf of the
Lenders to exercise any of its rights, powers or privileges under this Guarantee
shall be a waiver of such rights, powers or privileges or a waiver of any
default, nor shall any single or partial exercise of any of the Agent’s or of
any Lenders’ rights, powers or privileges preclude other or further exercise
thereof or the exercise of any other right, power or privilege or be construed
as a waiver of any default. Each Guarantor further agrees that no waiver or
modification of any rights of the Lenders or of the Agent under this Guarantee
shall be effective unless in writing and signed by each Lender and the Agent.
Each Guarantor further agrees that each written waiver shall extend only to the
specific instance actually recited in such written waiver and shall not impair
the rights of any Lender or of the Agent in any other respect.

                    32. Payment of Fees and Expenses. Each Guarantor
unconditionally agrees to pay all costs and expenses, including attorney’s fees,
incurred by the Agent on behalf of the Lenders in enforcing this Guarantee
against any Guarantor.

                    33. Governing Law. Each Guarantor agrees that this Guarantee
and the rights and obligations of the parties under this Guarantee shall be
governed by, and construed and interpreted in accordance with, the Law of the
State of New.

                    34. Acknowledgment of Receipt of Document. Each Guarantor
acknowledges that in addition to binding itself to this Guarantee, at the time
of execution of this Guarantee, the Agent offered to such Guarantor a copy of
this Guarantee in the form in which it was executed and that by acknowledging
this fact such Guarantor may not later be able to claim that a copy of the
Guarantee was not received by it.

                    35. Binding Effect; Assignment. Each Guarantor agrees that
this Guarantee shall be binding upon each Guarantor and its successors and
assigns; provided, however, that no Guarantor may assign or transfer any of its
rights and obligations hereunder or any interest herein. Each Guarantor further
agrees that (i) this Guarantee is freely assignable and transferable by the
Lenders in connection with any assignment or transfer of the Guaranteed
Indebtedness and (ii) this Guarantee shall inure to the benefit of the Lenders,
and their successors and assigns.

                    36. Default. Each Guarantor agrees that if any Guarantor
fails to perform any covenant or agreement hereunder or if there occurs and
continues to exist an Event of Default under the Credit Agreement, all or any
part of the Guaranteed Indebtedness may be declared to be forthwith due and
payable and, in the case of an Event of Default described in Section 8.1.13
[Involuntary Proceedings] or Section 8.1.14 [Voluntary Proceedings] of the
Credit Agreement, the Guaranteed Indebtedness shall be immediately due and
payable, in any case without presentment, demand, protest or notice of any kind,
all of which are hereby expressly waived.

                    37. Cumulative Remedies. Each Guarantor agrees that the
enumeration of the Lenders’ rights and remedies set forth in this Guarantee is
not intended to be exhaustive and the exercise by any of the Lenders of any
right or remedy shall not preclude the exercise of any other rights or remedies,
all of which shall be cumulative and shall be in addition to any other right or
remedy given hereunder or under any other agreement among the parties to the
Loan Documents or which may now or hereafter exist at law or in equity or by
suit or otherwise.

                    38. Notices. Each Guarantor agrees that all notices,
statements, requests, demands and other communications under this Guarantee
shall be given to each of the Guarantors at the address set forth below the
heading “Guarantors” on Schedule 1.1(B) of the Credit Agreement in the manner
provided in Section 10.6 [Notices] of the Credit Agreement.

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                    39. Severability; Modification to Conform to Law.

                    39.1 Any provision of this Agreement which is determined by
a court of competent jurisdiction to be prohibited or unenforceable against a
Guarantor, in such jurisdiction shall, as to such jurisdiction and such
Guarantor, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction or against any other
Guarantor;

                    39.2 ;Anything herein or in any other Loan Document to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Loan Documents in respect of the Guaranteed Indebtedness shall
in no event exceed the amount which can be guaranteed by such Guarantor under
the applicable federal and state laws relating to the insolvency of debtors
(after giving effect to the right of contribution established in Section 31
hereof);

                    39.3 Each Guarantor agrees that the Guaranteed Indebtedness
may at any time and from time to time exceed the amount of the liability of such
Guarantor as may be determined under clause (b) above without impairing the
guarantee contained in the Guarantee or affecting the rights and remedies of the
Agent or any Lender hereunder.

          40. WAIVER OF JURY TRIAL. EACH GUARANTOR HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS GUARANTEE. EACH GUARANTOR (i) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, AND EXECUTION AND DELIVERY HEREOF BY EACH
GUARANTOR, AND (ii) ACKNOWLEDGES THAT THE ENTERING INTO OF THE CREDIT AGREEMENT
BY THE LENDERS HAS BEEN INDUCED BY, AMONG OTHER THINGS, THE WAIVERS AND
CERTIFICATIONS SET FORTH IN THIS SECTION.

          41. Submission to Jurisdiction and Waiver. Each Guarantor (i) hereby
irrevocably submits to the nonexclusive jurisdiction of the courts of the State
of New York, and to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York, or any successor to said court
(hereinafter referred to as the “New York Courts”) for purposes of any suit,
action or other proceeding which relates to this Guarantee or any other Loan
Document, (ii) to the extent permitted by applicable Law, hereby waives and
agrees not to assert by way of motion, as a defense or otherwise in any such
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of the New York Courts, that such suit, action or proceeding is
brought in an inconvenient forum, that the venue of such suit, action or
proceeding is improper, or that this Guarantee or any Loan Document may not be
enforced in or by the New York Courts, (iii) hereby agrees not to seek, and
hereby waives, any collateral review by any other court, which may be called
upon to enforce the judgment of any of the New York Courts, of the merits of any
such suit, action or proceeding or the jurisdiction of the New York Courts, and
(iv) waives personal service of any and all process upon it and consents that
all such service of process be made by certified or registered mail addressed as
provided in Section 20 hereof and service so made shall be deemed to be
completed upon actual receipt thereof. Nothing herein shall limit any Lenders
right to bring any suit, action or other proceeding against any Guarantor or any
of any Guarantor’s assets or to serve process on any Guarantor by any means
authorized by Law.

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          42. Other Waivers. Each Guarantor waives all defenses based on
suretyship not specifically waived.

          43. Release of Guarantor. A Guarantor may be released of its
obligations hereunder in accordance with and upon satisfaction of the terms and
conditions of Section 2.11.1 of the Credit Agreement. No notice of such release
of any Guarantor shall be required to be given to any Guarantor and each
Guarantor hereby consents thereto.

          44. Credit Agreement Incorporated by Reference. All of the terms,
conditions and provisions of Section 5 [Representations and Warranties], Section
7.1 [Affirmative Covenants], Section 7.2 [Negative Covenants] and Section 7.3
[Reporting Requirements] of the Credit Agreement are incorporated herein by
reference as if fully set forth herein. Each of the Guarantors, jointly and
severally, without any further act or undertaking or the occurrence of any other
event, covenant and agree that until payment in full of the Loans, Reimbursement
Obligations and Letter of Credit Borrowings and interest thereon, expiration or
termination of all Letters of Credit, satisfaction of all of the Loan Parties’
other Obligations under the Credit Agreement and the satisfaction of the
Guaranteed Indebtedness under this Guarantee and termination of the Commitments,
they shall comply with the representations and warranties set forth in Section 5
[Representations and Warranties] of the Credit Agreement, comply with the
affirmative covenants set forth in Section 7.1 [Affirmative Covenants] of the
Credit Agreement, comply with the negative covenants set forth in Section 7.2
[Negative Covenants] of the Credit Agreement and comply with Section 7.3
[Reporting Requirements] of the Credit Agreement. In particular, each of the
Guarantors shall not own or create directly or indirectly any Subsidiaries other
than (i) any Subsidiary which has joined this Guarantee as a Guarantor on the
Closing Date, (ii) any Subsidiary formed or acquired after the Closing Date
which joins this Guarantee as a Guarantor pursuant to Section 27 below or (iii)
any Non-Restricted Person. To the extent that the obligations set forth in
Section 7.3 [Reporting Requirements] of the Credit Agreement are obligations
which, by their nature, can only be performed and/or satisfied by the Borrower
and/or by Hovnanian, each of the Guarantors shall fully cooperate with the
Borrower and with Hovnanian in their respective efforts to comply with their
respective obligations set forth therein.

          45. Joinder of Guarantor. Any Subsidiary of Hovnanian which is
required to join this Guarantee as a Guarantor pursuant to Section 26 hereof or
which is to become a Restricted Subsidiary shall execute and deliver to the
Agent (i) a Guarantor Joinder pursuant to which it shall join as a Guarantor
this Guarantee; and (ii) at the request of the Agent, documents in the forms
described in Section 6.1 [First Loans and Letters of Credit] of the Credit
Agreement, modified as appropriate to relate to such new Guarantor. Such new
Guarantor shall deliver such Guarantor Joinder and any related documents that
the Agent may reasonably request to the Agent after the formation thereof and
its designation as a Restricted Subsidiary, and such Subsidiary shall not be a
Restricted Subsidiary until the delivery and effectiveness of the items required
herein.

          46. Survival. All of the representations and warranties of the
Guarantors contained herein (either directly or indirectly) or made in
connection herewith shall survive the making of Loans and issuance of Letters of
Credit and shall not be waived by the execution and delivery of the Credit
Agreement by any other party, including the Agent and the Lenders, any
investigation by the Agent or the Lenders, the making of Loans, issuance of
Letters of Credit, or payment in full of the Loans. All covenants and agreements
of the Guarantors contained in this Guarantee shall continue in full force and
effect from and after the date hereof so long as the Borrower may borrow or
request Letters of Credit under the Credit Agreement, and until termination of
the Commitments and payment in full of the Loans and expiration or termination
of all Letters of Credit.

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          47. Termination. Notwithstanding the other provisions contained
herein, at such time as the Guaranteed Indebtedness shall have been indefeasibly
paid in full, this Guarantee and all obligations of the Agent and each Guarantor
hereunder shall terminate, all without delivery of any instrument or performance
of any act by any party. At the request and sole expense of the Guarantors,
following any such termination, the Agent shall execute and deliver to the
Guarantors such documents as the Guarantors shall reasonably request to evidence
such termination.

          48. Subordination. Each Guarantor hereby agrees that, upon the
occurrence and during the continuance of an Event of Default, all Indebtedness
owing to it by the Borrower, Hovnanian or any Subsidiary of the Borrower or
Hovnanian shall be fully subordinated to the indefeasible payment in full in
cash of the Guaranteed Indebtedness.

          49. Contribution. Each Guarantor hereby agrees that to the extent that
a Guarantor shall have paid more than its proportionate share of any payment
made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor’s right of contribution
shall be subject to the terms of Section 4 hereof. The provisions of this
Section 31 shall in no respect limit the obligations and liabilities of any
Guarantor to the Agent and the Lenders, and each Guarantor shall remain liable
to the Agent and the Lenders for the full amount guaranteed by such Guarantor
hereunder

          50. Amendment; No Novation. Each of the Guarantors confirms that the
Amended and Restated Guaranty and Suretyship Agreement made as of May 31, 2006
by the Guarantors in favor of the Agent (the “Prior Guaranty Agreement”), the
Prior Credit Agreement, and the other Loan Documents, prior to giving effect to
the Credit Agreement and this Amended and Restated Guaranty and Suretyship
Agreement, have at all times, since the date of their respective original
execution and delivery, remained in full force and effect and the Prior Guaranty
Agreement has continued to guaranty, the Guaranteed Indebtedness (as originally
defined therein and as amended) which is continued as the Guaranteed
Indebtedness as amended hereby. Each of the Guarantors and Lenders acknowledge
and agree that the amendment and restatement of the Prior Guaranty Agreement and
the other Loan Documents by or in connection with the Credit Agreement is not
intended to constitute, nor does it constitute, a novation, interruption,
suspension of continuity, satisfaction, discharge or termination of the
obligations, loans, liabilities, or indebtedness under the Prior Credit
Agreement or any of the other original Loan Documents, and this Guarantee and
the other Loan Documents are entitled to all rights and benefits originally
pertaining to the Prior Credit Agreement and the other original Loan Documents.

          51. Authorization of Amendment. Each of the Guarantors authorizes and
consents to the Borrower and Hovnanian executing and consummating the Amendment
of even date herewith pursuant to which the Sixth Amended and Restated Credit
Agreement dated as of May 31, 2006 was amended and restated by the Credit
Agreement dated of even date herewith.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

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          IN WITNESS WHEREOF, each Guarantor and the Agent, intending to be
legally bound, have executed this Guarantee on the date first above written.

 

 

 

 

 

HOVNANIAN ENTERPRISES, INC.

 

 

 

 

By:

 

 

 

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Name:

Kevin C. Hake

 

Title:

Senior Vice-President — Finance and Treasurer

 

 

 

EASTERN TITLE AGENCY, INC.

 

 

FOUNDERS TITLE AGENCY, INC.

 

 

GOVERNOR’S ABSTRACT CO., INC.

 

 

HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

 

 

K. HOV INTERNATIONAL, INC.

 

 

K. HOV IP, II, INC.

 

 

K. HOV IP, INC.

 

 

K. HOVNANIAN ACQUISITIONS, INC.

 

 

K. HOVNANIAN AT BERNARDS IV, INC.

 

 

K. HOVNANIAN AT BRANCHBURG III, INC.

 

 

K. HOVNANIAN AT BRIDGEPORT, INC.

 

 

K. HOVNANIAN AT BRIDGEWATER VI, INC.

 

 

K. HOVNANIAN AT BURLINGTON III, INC.

 

 

K. HOVNANIAN AT BURLINGTON, INC.

 

 

K. HOVNANIAN AT CALABRIA, INC.

 

 

K. HOVNANIAN AT CAMERON CHASE, INC.

 

 

K. HOVNANIAN AT CARMEL DEL MAR, INC.

 

 

K. HOVNANIAN AT CASTILE, INC.

 

 

 

 

By:

 

 

 

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Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

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Peter S. Reinhart

 

 

Secretary

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K. HOVNANIAN AT CHAPARRAL, INC.

 

 

K. HOVNANIAN AT CLARKSTOWN, INC.

 

 

K. HOVNANIAN AT CRESTLINE, INC.

 

 

K. HOVNANIAN AT DOMINGUEZ HILLS, INC.

 

 

K. HOVNANIAN AT EAST WHITELAND I, INC.

 

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP I, INC.

 

 

K. HOVNANIAN AT HERSHEY’S MILL, INC.

 

 

K. HOVNANIAN AT HACKETTSTOWN, INC.

 

 

K. HOVNANIAN AT HIGHLAND VINEYARDS, INC.

 

 

K. HOVNANIAN AT HOPEWELL IV, INC.

 

 

K. HOVNANIAN AT HOPEWELL VI, INC.

 

 

K. HOVNANIAN AT HOWELL TOWNSHIP, INC.

 

 

K. HOVNANIAN AT KINGS GRANT I, INC.

 

 

K. HOVNANIAN AT LA TERRAZA, INC.

 

 

K. HOVNANIAN AT LAKEWOOD, INC.

 

 

K. HOVNANIAN AT LOWER SAUCON, INC.

 

 

K. HOVNANIAN AT MAHWAH II, INC.

 

 

K. HOVNANIAN AT MAHWAH VI, INC.

 

 

K. HOVNANIAN AT MAHWAH VII, INC.

 

 

K. HOVNANIAN AT MANALAPAN, INC.

 

 

K. HOVNANIAN AT MARLBORO II, INC.

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP III, INC.

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IV, INC.

 

 

K. HOVNANIAN AT MONTGOMERY I, INC.

 

 

K. HOVNANIAN AT MONROE II, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.

 

 

K. HOVNANIAN AT NORTHLAKE, INC.

 

 

K. HOVNANIAN AT OCEAN TOWNSHIP, INC.

 

 

K. HOVNANIAN AT OCEAN WALK, INC.

 

 

K. HOVNANIAN AT PERKIOMEN I, INC.

 

 

K. HOVNANIAN AT PERKIOMEN II, INC.

 

 

K. HOVNANIAN AT RANCHO CRISTIANITOS, INC.

 

 

K. HOVNANIAN AT RESERVOIR RIDGE, INC.

 

 

K. HOVNANIAN AT SAN SEVAINE, INC.

 

 

K. HOVNANIAN AT SARATOGA, INC.

 

 

K. HOVNANIAN AT SAWMILL, INC.

 

 

K. HOVNANIAN AT SCOTCH PLAINS II, INC.

 

 

K. HOVNANIAN AT SMITHVILLE, INC.

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK V, INC.

 

 

K. HOVNANIAN AT STONE CANYON, INC.

 

 

K. HOVNANIAN AT STONY POINT, INC.

 

 

K. HOVNANIAN AT SYCAMORE, INC.

 

 

K. HOVNANIAN AT TANNERY HILL, INC.

 

 

K. HOVNANIAN AT THE BLUFF, INC.

 

 

K. HOVNANIAN AT THORNBURY, INC.

 

 

K. HOVNANIAN AT TIERRASANTA, INC.

 

 

K. HOVNANIAN AT TROVATA, INC.

 

 

K. HOVNANIAN AT TUXEDO, INC.

 

 

K. HOVNANIAN AT UNION TOWNSHIP I, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP I, INC.

 

 

K. HOVNANIAN AT UPPER MAKEFIELD I, INC.

 

 

K. HOVNANIAN AT VAIL RANCH, INC.

 

 

K. HOVNANIAN AT WALL TOWNSHIP VI, INC.

 

 

K. HOVNANIAN AT WALL TOWNSHIP VIII, INC.

 

 

K. HOVNANIAN AT WASHINGTONVILLE, INC.

 

 

K. HOVNANIAN AT WAYNE III, INC.

 

 

K. HOVNANIAN AT WAYNE V, INC.

 

 

K. HOVNANIAN AT WILDROSE, INC.

 

 

K. HOVNANIAN COMMUNITIES, INC.

 

 

K. HOVNANIAN COMPANIES NORTHEAST, INC.

 

 

K. HOVNANIAN COMPANIES OF CALIFORNIA, INC.

 

 

K. HOVNANIAN COMPANIES OF MARYLAND, INC.

 

 

K. HOVNANIAN COMPANIES OF NEW YORK, INC.

 

 

K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.

 

 

K. HOVNANIAN COMPANIES OF SOUTHERN

 

CALIFORNIA, INC.

 

 

K. HOVNANIAN COMPANIES OF VIRGINIA, INC.

 

 

K. HOVNANIAN CONSTRUCTION II, INC.

 

 

K. HOVNANIAN CONSTRUCTION III, INC.

 

 

K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN DEVELOPMENTS OF CONNECTICUT, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF INDIANA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MICHIGAN, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NORTH

 

CAROLINA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF SOUTH

 

CAROLINA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA,

 

INC.

 

 

K. HOVNANIAN FORECAST HOMES NORTHERN, INC.

 

 

K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES OF VIRGINIA, INC.

 

 

K. HOVNANIAN PA REAL ESTATE, INC.

 

 

K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC.

 

 

K. HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC.

 

 

K. HOVNANIAN PROPERTIES OF RED BANK, INC.

 

 

KHC ACQUISITION, INC.

 

 

LANDARAMA, INC.

 

 

M&M AT LONG BRANCH, INC.

 

 

MCNJ, INC.

 

 

SEABROOK ACCUMULATION CORPORATION

 

 

STONEBROOK HOMES, INC.

 

 

THE MATZEL & MUMFORD ORGANIZATION, INC.

 

 

WASHINGTON HOMES, INC.

 

 

WH LAND I, INC.

 

 

WH PROPERTIES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF D.C., L.L.C.

 

 

 

By:

K. Hovnanian Developments of D.C., Inc., as the sole member of the foregoing
limited liability company

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C.

 

 

GREENWAY FARMS UTILITY ASSOCIATES, L.L.C.

 

 

HOMEBUYERS FINANCIAL SERVICES, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP OF

 

 

MARYLAND, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C.

 

 

K. HOVNANIAN AT KING FARM, L.L.C.

 

 

K. HOVNANIAN AT RODERUCK. L.L.C.

 

 

K. HOVNANIAN AT WILLOW BROOK, L.L.C.

 

 

K. HOVNANIAN COMPANIES OF METRO D.C. NORTH, L.L.C.

 

 

K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C.

 

 

K. HOVNANIAN HOMES AT CIDER MILL, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C.

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C.

 

 

K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C.

 

 

K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

 

 

K. HOVNANIAN HOMES OF MARYLAND, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND

 

CONDOMINIUMS, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS

 

LANDING, L.L.C.

 

 

RIDGEMORE UTILITY, L.L.C.

 

 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C.

 

 

WH/PR LAND COMPANY, LLC

 

 

WOODLAND LAKES CONDOS AT BOWIE NEWTOWN, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

ALFORD, L.L.C.

 

 

DULLES COPPERMINE, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP OF VIRGINIA, L.L.C.

 

 

K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C.

 

 

K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.

 

 

K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, L.L.C.

 

 

K. HOVNANIAN FRANCUSCUS HOMES, L.L.C.

 

 

K. HOVNANIAN HOMES AT CAMERON STATION, L.L.C.

 

 

K. HOVNANIAN HOMES AT BELMONT OVERLOOK, L.L.C.

 

 

K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

 

 

K. HOVNANIAN HOMES AT VICTORIA STATION, L.L.C.

 

 

K. HOVNANIAN SUMMIT HOLDINGS, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT ASHBURN VILLAGE, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY CONDOMINIUM, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT VINT HILL, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Virginia, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

AUDDIE ENTERPRISES, L.L.C.

 

 

BUILDER SERVICES NJ, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C.

 

 

K. HOVNANIAN AT ABERDEEN URBAN RENEWAL, L.L.C.

 

 

K. HOVNANIAN AT ALLENDALE, L.L.C.

 

 

K. HOVNANIAN AT BARNEGAT I, L.L.C.

 

 

K. HOVNANIAN AT BARNEGAT II, L.L.C.

 

 

K. HOVNANIAN AT BARNEGAT III, L.L.C.

 

 

K. HOVNANIAN AT BERKELEY, L.L.C.

 

 

K. HOVNANIAN AT BERNARDS V, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT BLUE HERON PINES, L.L.C.

 

K. HOVNANIAN AT BRIDGEWATER I, L.L.C

 

K. HOVNANIAN AT CAMDEN I, L.L.C.

 

K. HOVNANIAN AT CEDAR GROVE III, L.L.C.

 

K. HOVNANIAN AT CEDAR GROVE IV, L.L.C.

 

K. HOVNANIAN AT CHESTER I, L.L.C.

 

K. HOVNANIAN AT CHESTERFIELD, L.L.C.

 

K. HOVNANIAN AT CHESTERFIELD II, L.L.C.

 

K. HOVNANIAN AT CLIFTON II, L.L.C.

 

K. HOVNANIAN AT CLIFTON, L.L.C.

 

K. HOVNANIAN AT CRANBURY, L.L.C.

 

K. HOVNANIAN AT CURRIES WOODS, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT DENVILLE, L.L.C.

 

K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT DOVER, L.L.C.

 

K. HOVNANIAN AT EDGEWATER II, L.L.C.

 

K. HOVNANIAN AT EDGEWATER, L.L.C.

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C.

 

K. HOVNANIAN AT ELK TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT FIFTH AVENUE, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT FLORENCE I, L.L.C.

 

K. HOVNANIAN AT FLORENCE II, L.L.C.

 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C.

 

K. HOVNANIAN AT FRANKLIN, L.L.C.

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT GALLOWAY, L.L.C.

 

K. HOVNANIAN AT GREAT NOTCH, L.L.C.

 

K. HOVNANIAN AT GUTTENBERG, L.L.C.

 

K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.

 

K. HOVNANIAN AT HAMBURG CONTRACTORS, L.L.C.

 

K. HOVNANIAN AT HAMBURG, L.L.C.

 

K. HOVNANIAN AT HAWTHORNE, L.L.C

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT HAZLET, L.L.C.

 

K. HOVNANIAN AT HILLTOP, L.L.C.

 

K. HOVNANIAN AT JACKSON I, L.L.C.

 

K. HOVNANIAN AT JACKSON, L.L.C.

 

K. HOVNANIAN AT JERSEY CITY IV, L.L.C.

 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.

 

K. HOVNANIAN AT KEYPORT, L.L.C.

 

K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C.

 

K. HOVNANIAN AT LAWRENCE V, L.L.C.

 

K. HOVNANIAN AT LINWOOD, L.L.C.

 

K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR CONTRACTORS, L.L.C.

 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.

 

K. HOVNANIAN AT LITTLE EGG HARBOR III, L.L.C.

 

K. HOVNANIAN AT LONG BRANCH I, L.L.C.

 

K. HOVNANIAN AT MANALAPAN III, L.L.C.

 

K. HOVNANIAN AT MANSFIELD I, L.L.C.

 

K. HOVNANIAN AT MANSFIELD II, L.L.C.

 

K. HOVNANIAN AT MANSFIELD III, L.L.C.

 

K. HOVNANIAN AT MAPLE AVENUE, L.L.C.

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.

 

K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C.

 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT MARLBORO VI, L.L.C.

 

K. HOVNANIAN AT MARLBORO VII, L.L.C.

 

K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C.

 

K. HOVNANIAN AT MIDDLETOWN II, L.L.C.

 

K. HOVNANIAN AT MIDDLETOWN, L.L.C.

 

K. HOVNANIAN AT MILLVILLE I, L.L.C.

 

K. HOVNANIAN AT MILLVILLE II, L.L.C.

 

K. HOVNANIAN AT MILLVILLE III, L.L.C.

 

K. HOVNANIAN AT MONROE III, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT MONROE IV, L.L.C.

 

K. HOVNANIAN AT MONROE NJ, L.L.C.

 

K. HOVNANIAN AT MONTVALE, L.L.C.

 

K. HOVNANIAN AT MT. OLIVE TOWNSHIP, L.L.C.

 

K. HOVNANIAN AT NEW BRUNSWICK URBAN

 

RENEWAL, L.L.C.

 

K. HOVNANIAN AT NORTH BERGEN, L.L.C.

 

K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.

 

K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.

 

K. HOVNANIAN AT NORTH CALDWELL III, L.L.C.

 

K. HOVNANIAN AT NORTH CALDWELL, L.L.C.

 

K. HOVNANIAN AT NORTH HALEDON, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT NORTHFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT OCEANPORT, L.L.C.

 

 

 

K. HOVNANIAN AT OLD BRIDGE, L.L.C.

 

 

 

K. HOVNANIAN AT PARAMUS, L.L.C.

 

 

 

K. HOVNANIAN AT PARSIPPANY-TROY HILLS, L.L.C.

 

 

 

K. HOVNANIAN AT PEAPACK-GLADSTONE, L.L.C.

 

 

 

K. HOVNANIAN AT PITTSGROVE, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL

 

VII, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL

 

VIII, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT PRINCETON LANDING, L.L.C.

 

 

 

K. HOVNANIAN AT PRINCETON NJ, L.L.C.

 

 

 

K. HOVNANIAN AT RANDOLPH I, L.L.C.

 

 

 

K. HOVNANIAN AT READINGTON II, L.L.C.

 

 

 

K. HOVNANIAN AT RED BANK, L.L.C.

 

 

 

K. HOVNANIAN AT RIDGEMONT, L.L.C.

 

 

 

K. HOVNANIAN AT SAYREVILLE, L.L.C.

 

 

 

K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.

 

 

 

K. HOVNANIAN AT SMITHVILLE III, L.L.C.

 

 

 

K. HOVNANIAN AT SOMERS POINT, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.

 

 

 

K. HOVNANIAN AT SPARTA, L.L.C.

 

 

 

K. HOVNANIAN AT SPRINGCO, L.L.C.

 

 

 

K. HOVNANIAN AT SPRINGFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT TEANECK, L.L.C.

 

 

 

K. HOVNANIAN AT THE MONARCH, L.L.C.

 

 

 

K. HOVNANIAN AT TRENTON, L.L.C.

 

 

 

K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT UNION TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II,

 

L.L.C.

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III,

 

L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT VINELAND, L.L.C.

 

 

 

K. HOVNANIAN AT WANAQUE, L.L.C.

 

 

 

K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT WASHINGTON, L.L.C.

 

 

 

K. HOVNANIAN AT WAYNE IX, L.L.C.

 

 

 

K. HOVNANIAN AT WAYNE VIII, L.L.C.

 

 

 

K. HOVNANIAN AT WEST MILFORD, L.L.C.

 

 

 

K. HOVNANIAN AT WEST WINDSOR, L.L.C.

 

 

 

K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C.

 

 

 

K. HOVNANIAN AT WOODHILL ESTATES, L.L.C.

 

 

 

K. HOVNANIAN AT WOOLWICH I, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

 

 

 

K. HOVNANIAN CLASSICS, L.L.C.

 

 

 

K. HOVNANIAN CLASSICS CIP, L.L.C.

 

 

 

K. HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

 

 

 

K. HOVNANIAN HOMES – DFW, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF HOUSTON, L.L.C.

 

 

 

K. HOVNANIAN OF HOUSTON II, L.L.C.

 

 

 

K. HOVNANIAN INVESTMENTS II, L.L.C.

 

 

 

K. HOVNANIAN NORTH CENTRAL ACQUISITIONS,

 

L.L.C.

 

 

 

K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN NORTHEAST SERVICES, L.L.C.

 

 

 

K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN SOUTHERN NEW JERSEY, L.LC.

 

 

 

K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN T&C INVESTMENT, L.L.C.

 

 

 

K. HOVNANIAN VENTURE I, L.L.C.

 

 

 

K. HOVNANIAN’S PRIVATE HOME PORTFOLIO, L.L.C.

 

 

 

TERRAPIN REALTY, L.L.C.

 

 

 

KHIP, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member

 

 

 

of each of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

F&W MECHANICAL SERVICES, L.L.C.

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the managing

 

 

 

member of the foregoing limited liability companies.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

HUDSON POINTE JOINT DEVELOPMENT, L.L.C.

 

 

 

 

 

 

 

 

By:

K. Hovnanian Hudson Pointe Investments, L.L.C., its

 

 

 

sole member

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole

 

 

 

 

member

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New

 

 

 

 

Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance

 

 

 

 

 

 

and Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

K. HOVNANIAN AT HUDSON POINTE, L.L.C.

 

 

 

 

 

 

 

 

By:

Hudson Pointe Joint Development, L.L.C., its sole

 

 

 

member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Hudson Pointe Investments,

 

 

 

L.L.C., its sole member

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its

 

 

 

 

 

sole member

 

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of

 

 

 

 

 

 

New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance

 

 

 

 

 

 

and Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

PARK TITLE COMPANY, L.L.C.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian of Houston II, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole

 

 

 

 

member

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New

 

 

 

 

 

Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance

 

 

 

 

 

 

and Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

PI INVESTMENTS II, L.L.C.

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole

 

 

 

 

member

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New

 

 

 

 

 

Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance

 

 

 

 

 

 

and Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL

 

IV, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL

 

V, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL

 

VI, L.L.C.

 

 

 

By:

PI Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole

 

 

 

member

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its

 

 

 

 

 

sole member

 

 

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of

 

 

 

 

 

 

New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance

 

 

 

 

 

 

and Treasurer

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,

 

 

 

 

Inc., as member

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Peter S. Reinhart

 

 

 

 

 

 

Secretary

 

--------------------------------------------------------------------------------

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF CALIFORNIA, L.L.C.

 

 

 

K. HOVNANIAN AT 3 CHAPMAN, L.L.C.

 

 

 

K. HOVNANIAN AT 4S, L.L.C.

 

 

 

K. HOVNANIAN AT ACQUA VISTA, L.L.C.

 

 

 

K. HOVNANIAN AT ALISO, L.L.C.

 

 

 

K. HOVNANIAN AT ARBOR HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT AVENUE ONE, L.L.C.

 

 

 

K. HOVNANIAN AT BELLA LAGO, L.L.C.

 

 

 

K. HOVNANIAN AT BRIDLEWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT CAPISTRANO, L.L.C.

 

 

 

K. HOVNANIAN AT CARMEL VILLAGE, L.L.C.

 

 

 

K. HOVNANIAN AT CIELO, L.L.C.

 

 

 

K. HOVNANIAN AT COASTLINE, L.L.C.

 

 

 

K. HOVNANIAN AT CORTEZ HILL, L.L.C.

 

 

 

K. HOVNANIAN AT EASTLAKE, L.L.C.

 

 

 

K. HOVNANIAN AT ENCINITAS RANCH, L.L.C.

 

 

 

K. HOVNANIAN AT EVERGREEN, L.L.C.

 

 

 

K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

 

 

 

K. HOVNANIAN AT HIGHWATER, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA GREENS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

K. HOVNANIAN AT LA HABRA KNOLLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE HILLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE RANCHO VIEJO, L.L.C.

 

 

 

K. HOVNANIAN AT MATSU, L.L.C.

 

 

 

K. HOVNANIAN AT MENIFEE, L.L.C.

 

 

 

K. HOVNANIAN AT MOCKINGBIRD CANYON, L.L.C.

 

 

 

K. HOVNANIAN AT MOSAIC, L.L.C.

 

 

 

K. HOVNANIAN AT OLDE ORCHARD, L.L.C.

 

 

 

K. HOVNANIAN AT ORANGE HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.

 

 

 

K. HOVNANIAN AT PARK LANE, L.L.C.

 

 

 

K. HOVNANIAN AT PIAZZA D’ORO, L.L.C.

 

 

 

K. HOVNANIAN AT PRADO, L.L.C.

 

 

 

K. HOVNANIAN AT RANCHO SANTA MARGARITA, L.L.C.

 

 

 

K. HOVNANIAN AT RIVERBEND, L.L.C.

 

 

 

K. HOVNANIAN AT ROSEMARY LATANA, L.L.C.

 

 

 

K. HOVNANIAN AT ROWLAND HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT SAGE, L.L.C.

 

 

 

K. HOVNANIAN AT SKYE ISLE, L.L.C.

 

 

 

K. HOVNANIAN AT SUNSETS, L.L.C.

 

 

 

K. HOVNANIAN AT THE CROSBY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT THE GABLES, L.L.C.

 

 

 

K. HOVNANIAN AT THE PRESERVE, L.L.C.

 

 

 

K. HOVNANIAN AT THOMPSON RANCH, L.L.C.

 

 

 

K. HOVNANIAN AT TRAIL RIDGE, L.L.C.

 

 

 

K. HOVNANIAN AT WINCHESTER, L.L.C.

 

 

 

K. HOVNANIAN INTERNATIONAL, L.L.C.

 

 

 

K. HOVNANIAN T&C MANAGEMENT CO., L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HEMET, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT MENIFEE VALLEY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS, L.L.C.

 

 

 

K. HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C.

 

 

 

NATOMAS CENTRAL NEIGHBORHOOD HOUSING, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOLDINGS NJ, L.L.C.

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

BUILDER SERVICES, PA, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF PENNSYLVANIA, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENBERRY, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENTOWN, L.L.C.

 

 

 

K. HOVNANIAN AT BROAD AND WALNUT, L.L.C.

 

 

 

K. HOVNANIAN AT CAMPHILL, L.L.C.

 

 

 

K HOVNANIAN AT EAST BRANDYWINE, L.L.C.

 

 

 

K HOVNANIAN AT FORKS TWP. I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND III, L.L.C.

 

 

 

K. HOVNANIAN AT MACUNGIE, L.L.C.

 

 

 

K. HOVNANIAN AT NORTHAMPTON, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA II, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA III, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA IV, L.L.C.

 

 

 

K. HOVNANIAN AT RAPHO, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT SILVER SPRING, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.

 

 

 

K. HOVNANIAN AT WEST BRADFORD, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C.

 

 

 

RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.

 

 

 

K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

 

 

 

K. HOVNANIAN FIRST HOMES, L.L.C.

 

 

 

K. HOVNANIAN FLORIDA REALTY, L.L.C.

 

 

 

K. HOVNANIAN STANDING ENTITY, L.L.C.

 

 

 

K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C.

 

 

 

K. HOVNANIAN WINDWARD HOMES, L.L.C.

 

 

 

 

 

By:

Hovnanian Developments of Florida, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN COMPANIES, LLC

 

 

 

 

 

By:

K. Hovnanian Enterprises, Inc., as member of the foregoing limited liability
company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian at Perkiomen II, Inc., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

K. HOVNANIAN FOUR SEASONS AT GOLD HILL, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of South Carolina, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, L.L.C.

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN HOMES, L.L.C.

 

 

 

 

 

NEW LAND TITLE AGENCY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Arizona, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT RIDGESTONE, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF MINNESOTA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C.

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT MINNESOTA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Minnesota, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN OHIO REALTY, L.L.C.

 

 

 

 

 

 

K. HOVNANIAN OSTER HOMES, L.L.C.

 

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES, L.L.C.

 

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

 

 

MILLENNIUM TITLE AGENCY, LTD.

 

 

 

 

 

 

By:

K. Hovnanian Oster Homes, L.L.C., its sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HUNTFIELD, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of West Virginia, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF MICHIGAN, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF MICHIGAN, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Michigan, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M&M AT CHESTERFIELD, L.L.C.

 

 

 

 

 

M&M AT APPLE RIDGE, L.L.C.

 

 

 

 

 

M&M AT EAST MILL, L.L.C.

 

 

 

 

 

M&M AT MORRISTOWN, L.L.C.

 

 

 

 

 

M&M AT SHERIDAN, L.L.C.

 

 

 

 

 

M&M AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

M&M AT SPRUCE HOLLOW, L.L.C.

 

 

 

 

 

M&M AT SPRUCE RUN, L.L.C.

 

 

 

 

 

M&M AT THE HIGHLANDS, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT EGG HARBOR, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT MONTGOMERY, L.L.C.

 

 

 

 

 

THE LANDINGS AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

By:

The Matzel & Mumford Organization, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

M & M AT COPPER BEECH, L.L.C.

 

 

 

M & M AT CRESCENT COURT, L.L.C.

 

 

 

M&M AT EAST RUTHERFORD, L.L.C.

 

 

 

M&M AT KENSINGTON WOODS, L.L.C.

 

 

 

M & M AT STATION SQUARE, L.L.C.

 

 

 

M & M AT UNION, L.L.C.

 

 

 

M&M AT TAMARACK HOLLOW, L.L.C.

 

 

 

M&M AT THE CHATEAU, L.LC.

 

 

 

M&M AT WEST ORANGE, L.L.C.

 

 

 

M&M AT WESTPORT, L.L.C.

 

 

 

M&M AT WHEATENA URBAN RENEWAL, L.L.C.

 

 

 

MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C.

 

 

 

MMIP, L.L.C.

 

 

 

 

 

By:

M&M Investments, L.P., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 2, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT MAXWELL PLACE. L.L.C.

 

 

 

K. HOVNANIAN HOMES AT PRIMERA, L.L.C.

 

 

 

PADDOCKS, L.L.C.

 

 

 

PINE AYR, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Homes of Maryland, L.L.C., as the sole
member of each of the foregoing limited liability
companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF TEXAS,
L.L.C.

 

 

 

 

 

 

 

 

By:

K. Hovnanian Homes - DFW, L.L.C., as the sole
member of the foregoing limited liability company.

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole
member of the foregoing limited liability company.

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT NEW WINDSOR, L.L.C.

 

 

 

BUILDER SERVICES NY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT
HAMPTONBURGH, L.L.C.

 

 

 

 

 

By:

K. Hovnanian at Northern Westchester, Inc., as the sole
member of each of the foregoing limited liability
companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

K. HOVNANIAN DELAWARE ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT NASSAU GROVE, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Delaware, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT MENIFEE VALLEY
CONDOMINIUMS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian’s Four Seasons At Menifee Valley, L.L.C.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NORTH CAROLINA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of North Carolina, Inc., as the sole member of the
foregoing limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAILEY’S GLENN,
L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT OLDE LIBERTY,
L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE,
L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes of North Carolina, Inc. as the sole
member of the foregoing limited liability companies

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES OF INDIANA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Indiana, Inc., as the sole
member of the foregoing limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C.

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR
SERVICES OF KENTUCKY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Kentucky, Inc., as the
sole member of the foregoing limited liability
companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN CONNECTICUT ACQUISITIONS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Connecticut, Inc., as the
sole member of the foregoing limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C.

 

 

 

 

By:

K. Hovnanian Developments of Illinois, Inc., as the sole
member of the foregoing limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF GEORGIA,
L.L.C

 

 

 

K. HOVNANIAN HOMES OF GEORGIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Georgia, Inc., as the sole
member of each of the foregoing limited liability
companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

WESTMINSTER HOMES OF ALABAMA, L.L.C.

 

 

 

WESTMINSTER HOMES OF MISSISSIPPI, L.L.C.

 

 

 

 

 

By:

Washington Homes, Inc., as sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

K. HOVNANIAN AT EWING, L.L.C.

 

 

 

 

 

By:

K. Hovnanian at Lakewood, Inc., as sole
member of the foregoing limited liability
company

 

 

 

 

 

 

By:

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN POLAND, SP. Z.O.O.

 

 

 

 

 

By:

Hovnanian Enterprises, Inc., as member.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

`

Secretary

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian International, Inc., as member.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

M&M INVESTMENTS, L.P.

 

 

 

 

 

By:

The Matzel & Mumford Organization, Inc., as general
partner of the foregoing limited partnership.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

Address for Notices for each of the foregoing Guarantors:

 

 

 

c/o K. Hovnanian Enterprises, Inc.

 

110 West Front St., P.O. Box 500

 

Red Bank, NJ 07701

 

Attention: Kevin C. Hake

 

Telephone: (732) 747-7800

 

Telecopy: (732) 747-6835

--------------------------------------------------------------------------------

 

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION,
as Agent

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

EXHIBIT 1.1(G)(2)
FORM OF
JOINDER AND ASSUMPTION AGREEMENT

                    This JOINDER AND ASSUMPTION AGREEMENT is made ___________ by
___________________________, a __________________________ (the “New Guarantor”).

BACKGROUND

                    Reference is made to (i) the Seventh Amended and Restated
Credit Agreement dated as of March 7, 2008 as the same has been made and may be
modified, supplemented, amended or restated, including on the date hereof, (the
“Agreement”) among K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”), HOVNANIAN
ENTERPRISES, INC., as a Guarantor, the Lenders now or hereafter party thereto
and PNC BANK, NATIONAL ASSOCIATION, as administrative agent for itself and the
other Lenders under the Credit Agreement (the “Agent”), (ii) the Guaranty
Agreement of each of the Guarantors issued to Lenders and Agent, as the same may
be modified, supplemented, amended or restated, (iii) the Security Agreement by
each of the Grantors (as defined therein) in favor of the Agent for the benefit
of itself and the Lenders, as the same may be modified, supplemented, amended or
restated, (iv) the Pledge Agreement by each of the Pledgors (as defined therein)
in favor of the Agent for the benefit of itself and the Lenders, as the same may
be modified, supplemented, amended or restated and (v) the other Loan Documents
referred to in the Agreement, as the same may be modified, supplemented or
amended. Capitalized terms defined in the Agreement are used herein as defined
therein.

                    In consideration of the New Guarantor becoming a Guarantor
entitled to receive loans or advances from Borrower under the terms of the
Agreement and in consideration of the value of the synergistic benefits received
by New Guarantor as a result of becoming affiliated with Borrower and the
Guarantors, the New Guarantor hereby agrees that effective as of the date hereof
it hereby is, and shall be deemed to be, a Guarantor under the Agreement, the
Guaranty Agreement, the Security Agreement, the Pledge Agreement and each of the
other Loan Documents to which the Guarantors are a party and agrees that from
the date hereof and so long as the Commitment of any Lender shall remain
outstanding and until the payment in full of the Loans and the Notes and the
performance of all other obligations of Borrower under the Loan Documents, New
Guarantor has assumed the obligations of a Guarantor under, and New Guarantor
shall perform, comply with and be subject to and bound by, jointly and
severally, each of the terms, provisions and waivers of the Agreement, the
Guaranty Agreement, the Security Agreement, the Pledge Agreement and each of the
other Loan Documents which are stated to apply to or are made by a Guarantor.
Without limiting the generality of the foregoing, the New Guarantor hereby
represents and warrants that (i) each of the representations and warranties set
forth in Section 5 of the Agreement is true and correct as to New Guarantor on
and as of the date hereof as if made on and as of the date hereof by New
Guarantor and (ii) New Guarantor has heretofore received a true and correct copy
of the Agreement, the Guaranty Agreement, the Security Agreement, the Pledge
Agreement and each of the other Loan Documents (including any modifications
thereof or supplements or waivers thereto) as in effect on the date hereof.

                    New Guarantor hereby makes, affirms, and ratifies in favor
of the Lenders and the Agent the Agreement, the Guaranty Agreement, the Security
Agreement, the Pledge Agreement and each of the other Loan Documents given by
the Guarantors to Agent and any of the Lenders.

--------------------------------------------------------------------------------

                    In furtherance of the foregoing, New Guarantor shall execute
and deliver or cause to be executed and delivered at any time and from time to
time such further instruments and documents and do or cause to be done such
further acts as may be reasonably necessary or proper in the opinion of Agent to
carry out more effectively the provisions and purposes of this Joinder and
Assumption Agreement.

                    IN WITNESS WHEREOF, the New Guarantor has duly executed this
Joinder and Assumption Agreement and delivered the same to the Agent for the
benefit of the Lenders, as of the date and year first above written.

 

 

 

 

[NAME OF NEW GUARANTOR]

 

 

By:

 

 

--------------------------------------------------------------------------------

 

 

 

 

Title:

 

 

 

--------------------------------------------------------------------------------

 

 

 

Acknowledged and accepted:

 

 

 

PNC BANK, NATIONAL ASSOCIATION, as Agent

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

 

Title:

 

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

EXHIBIT 1.1(M)
FORM OF

OPEN-END MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES
AND RENTS AND FIXTURE FILING
(THIS MORTGAGE SECURES FUTURE ADVANCES)

          THIS OPEN-END MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND
RENTS AND FIXTURE FILING (this “Mortgage”) is made as of the ___ day of
__________________________________,      2008,      by
   __________________________,       a __________________________ (the
“Mortgagor” and “Debtor”), with an address at c/o Hovnanian Enterprises, 110
West Front Street, Red Bank, NJ 07701, in favor of PNC BANK, NATIONAL
ASSOCIATION, with an address at Firstside Center, 500 First Avenue, Pittsburgh,
PA 15219, individually and as administrative agent (the “Agent”) for the lenders
party to the Credit Agreement (as hereinafter defined) (the “Mortgagee” and
“Secured Party”).

          WHEREAS, the Mortgagor is the owner of a certain tract or parcel of
land described in Exhibit A attached hereto and made a part hereof, together
with the improvements now or hereafter erected thereon; and

          WHEREAS, K. Hovnanian Enterprises, Inc., a California corporation (the
“Borrower”) has borrowed or will borrow an amount not to exceed $900,000,000
(the “Loan”) from the lenders (each a “Lender” and collectively the “Lenders”)
party to that certain Seventh Amended and Restated Credit Agreement dated March
7, 2008 (as the same may be amended, modified or supplemented from time to time,
the “Credit Agreement”); and

          WHEREAS, capitalized terms used but not defined herein shall mean as
defined in the Credit Agreement; and

          WHEREAS, the Loan is evidenced by the Notes, which Notes are secured
by, among other things, the Guaranty Agreement; and

          WHEREAS, Mortgagor is an Affiliate of Borrower and will substantially
benefit from the making of the Loan.

          NOW, THEREFORE, for the purpose of securing the payment and
performance of the following obligations (collectively called the “Secured
Obligations”):

          (A) The Loan, the Notes, the Guaranty Agreement, the Letter of Credit,
the Fee Letter, and all other loans, advances, debts, liabilities, obligations,
covenants and duties owing by the Mortgagor or by the Borrower to the Agent, the
Lenders, or to any Affiliate of Agent or any Lender, of any kind or nature,
present or future (including any interest accruing thereon after maturity, or
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding relating to the Mortgagor, whether
or not a claim for post-filing or post-petition interest is allowed in such
proceeding), whether direct or indirect (including those acquired by assignment
or participation), absolute or contingent, joint or several, due or to become
due, now existing or hereafter arising, whether or not (i) evidenced by any
note, guaranty or other instrument, (ii) arising under any agreement, instrument
or document, (iii) for the payment of money, (iv) arising by reason of an
extension of credit, opening of a letter of credit, loan, equipment lease or
guarantee, (v) under any interest or currency swap, future, option

--------------------------------------------------------------------------------

or other interest rate protection or similar agreement, (vi) under or by reason
of any foreign currency transaction, forward, option or other similar
transaction providing for the purchase of one currency in exchange for the sale
of another currency, or in any other manner, or (vii) arising out of overdrafts
on deposit or other accounts or out of electronic funds transfers (whether by
wire transfer or through automated clearing houses or otherwise) or out of the
return unpaid of, or other failure of the Mortgagee to receive final payment
for, any check, item, instrument, payment order or other deposit or credit to a
deposit or other account, or out of the Mortgagee’s non-receipt of or inability
to collect funds or otherwise not being made whole in connection with depository
or other similar arrangements; and any amendments, extensions, renewals and
increases of or to any of the foregoing, and all costs and expenses of the
Mortgagee incurred in the documentation, negotiation, modification, enforcement,
collection and otherwise in connection with any of the foregoing, including
reasonable attorneys’ fees and expenses.

          (B) Any sums advanced by the Mortgagee or which may otherwise become
due pursuant to the provisions of the Notes, the Letter of Credit, the Fee
Letter, the Guaranty Agreement or this Mortgage or pursuant to any other
document or instrument at any time delivered to the Mortgagee to evidence or
secure any of the Secured Obligations or which otherwise relate to any of the
Secured Obligations (as the same may be amended, supplemented or replaced from
time to time, the “Loan Documents”).

The Mortgagor, for good and valuable consideration, receipt of which is hereby
acknowledged, and intending to be legally bound hereby, does hereby give, grant,
bargain, sell, convey, assign, transfer, mortgage, hypothecate, pledge, set over
and confirm unto the Mortgagee and does agree that the Mortgagee shall have a
security interest in all of Mortgagor’s right, title, and interest in, to and
under the following described property, all accessions and additions thereto,
all substitutions therefor and replacements and proceeds thereof, and all
reversions and remainders of such property now owned or held or hereafter
acquired (the “Property”), to wit:

          (a) The premises described in Exhibit A, together with all of the
easements, rights of way, privileges, liberties, hereditaments, gores, streets,
alleys, passages, ways, waters, watercourses, rights and appurtenances thereunto
belonging or appertaining, and all of the Mortgagor’s estate, right, title,
interest, claim and demand therein and in the public streets and ways adjacent
thereto, either in law or in equity (the “Land”);

          (b) All the buildings, structures and improvements of every kind and
description now or hereafter erected or placed on the Land (the “Improvements”);

          (c) All fixtures of any kind, as defined under the law of the state
where the Land is located (the “Fixtures”);

          (d) All other machinery, apparatus, equipment, fittings, and
appliances of every kind and nature whatsoever, and regardless of whether the
same may now or hereafter be attached or affixed to the Land or Improvements,
including, without limitation, all electrical, antipollution, heating, lighting,
incinerating, power, air conditioning, plumbing, lifting, cleaning, fire
prevention, fire extinguishing, refrigerating, ventilating and communication
machinery, apparatus, equipment, fittings, appliances, and all engines, pipes,
pumps, tanks, motors, conduits, ducts, compressors, elevators and escalators,
and all articles of personal property and goods of every kind and nature
whatsoever, including all shades, awnings and carpets now or hereafter affixed
to, attached to, placed upon, or used or usable in any way in connection with
the use, enjoyment, occupancy or operation of the Land or Improvements
(collectively, the “Equipment”);

          (e) All rents, issues and profits arising or issuing from the Land and
the Improvements (the “Rents”) including the Rents arising or issuing from all
leases, licenses, subleases or any other use or

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occupancy agreement now or hereafter entered into covering all or any part of
the Land and Improvements (the “Leases”), all of which Leases and Rents are
hereby assigned to the Mortgagee by the Mortgagor. The foregoing assignment
shall include all fees, charges, accounts or other payments for the use or
occupancy of rooms and other public facilities in hotels, motels, or other
lodging properties, and all cash or securities deposited under Leases to secure
performance of lessees of their obligations thereunder, whether such cash or
securities are to be held until the expiration of the terms of such leases or
applied to one or more installments of rent coming due prior to the expiration
of such terms. The foregoing assignment extends to Rents arising both before and
after the commencement by or against the Mortgagor of any case or proceeding
under any Federal or State bankruptcy, insolvency or similar law, and is
intended as an absolute assignment and not merely the granting of a security
interest. The Mortgagor, however, shall have a license to collect retain and use
the Rents so long as no Event of Default shall have occurred and be continuing
or shall exist. The Mortgagor will execute and deliver to the Mortgagee, on
demand, such additional assignments and instruments as the Mortgagee may require
to implement, confirm, maintain and continue the assignment of Rents hereunder;

          (f) All proceeds of the conversion, voluntary or involuntary, of any
of the foregoing into cash or liquidated claims;

          (g) to the extent assignable, all Mortgagor’s rights and interests in
all agreements now or hereafter in existence providing for or relating to the
construction, alteration, maintenance, repair, operation or management of the
Property or any part thereof, as well as the plans and specifications therefor,
and all copies thereof (together with the right to amend or terminate the same
or waive the provisions of the foregoing) and any amendments, renewals and
replacements thereof; to the extent permitted by the relevant authorities, all
licenses, permits and approvals, and development and use rights for the
ownership, construction, maintenance, operation, use and occupancy of the
Property or any part thereof and any amendments, renewals and replacements
thereof; all of Mortgagor’s rights and interests in all warranties and
guaranties from contractors, subcontractors, suppliers and manufacturers to the
maximum extent permissible relating to the Property or any part thereof; all
insurance policies covering or affecting the Property or any part thereof; and

          (h) Without limiting any of the other provisions of this Mortgage, the
Mortgagor, as debtor, expressly grants unto the Mortgagee, as secured party, a
security interest in all personal property of the Mortgagor, including the
following, all whether now owned or hereafter acquired or arising and wherever
located: (i) accounts; (ii) securities entitlements, securities accounts,
commodity accounts, commodity contracts and investment property; (iii) deposit
accounts; (iv) instruments (including promissory notes); (v) documents
(including warehouse receipts); (vi) chattel paper (including electronic chattel
paper and tangible chattel paper); (vii) inventory, including raw materials,
work in process, or materials used or consumed in Mortgagor’s business, items
held for sale or lease or furnished or to be furnished under contracts of
service, sale or lease, goods that are returned, reclaimed or repossessed;
(viii) goods of every nature, including stock-in-trade, goods on consignment,
standing timber that is to be cut and removed under a conveyance or contract for
sale, the unborn young of animals, crops grown, growing, or to be grown,
manufactured homes, computer programs embedded in such goods and farm products;
(ix) equipment, including machinery, vehicles and furniture; (x) fixtures; (xi)
agricultural liens; (xii) as-extracted collateral; (xiii) letter of credit
rights; (xiv) general intangibles, of every kind and description, including
payment intangibles, software, computer information, source codes, object codes,
records and data, all existing and future customer lists, choses in action,
claims (including claims for indemnification or breach of warranty), books,
records, patents and patent applications, copyrights, trademarks, tradenames,
tradestyles, trademark applications, goodwill, blueprints, drawings, designs and
plans, trade secrets, contracts, licenses, license agreements, formulae, tax and
any other types of refunds, returned and unearned insurance premiums, rights and
claims under insurance policies; (xv) all rights of payment of money (including
all earnest money sales deposits); (xvi) all contracts for the sale of all or
any part of the Property; (xvii) all supporting obligations of all of the
foregoing property; (xviii) all property of the Mortgagor now or hereafter in
the Mortgagee’s possession or in transit to or from, or under the custody or
control of, the Mortgagee or any affiliate thereof; (xix) all cash and cash
equivalents thereof; and (xx) all cash and noncash proceeds (including insurance
proceeds) of all of the foregoing property, all products thereof and all
additions and accessions thereto, substitutions therefor and replacements
thereof. The Mortgagor will execute and deliver to the Mortgagee on demand such
financing statements and other instruments as the Mortgagee may require in order
to

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perfect, protect and maintain such security interest under the Pennsylvania
Uniform Commercial Code (the “UCC”) on the aforesaid collateral.

          To have and to hold the same unto the Mortgagee, its successors and
assigns for the benefit of the Lenders and their respective successors and
assigns, forever.

          Provided, however, that if the Mortgagor shall fully pay to the
Mortgagee and satisfy and discharge the Secured Obligations, and if the
Mortgagor shall keep and perform each of its other covenants, conditions and
agreements set forth herein and in the other Loan Documents, then, upon the
termination of all obligations, duties and commitments of the Mortgagor under
the Secured Obligations and this Mortgage, and subject to the provisions of the
paragraph entitled “Survival; Successors and Assigns” hereof, the estate hereby
granted and conveyed shall become null and void.

          This Mortgage is an “Open-End Mortgage” as set forth in 42 Pa. C.S.A.
§8143 and secures obligations up to a maximum principal amount of indebtedness
outstanding at any time equal to double the aggregate face amount of the Notes,
plus accrued and unpaid interest, including advances for the payment of taxes
and municipal assessments, maintenance charges, insurance premiums, costs
incurred for the protection of the Property or the lien of this Mortgage,
expenses incurred by the Mortgagee by reason of a default or Event of Default
(as hereinafter defined) by the Mortgagor under this Mortgage and advances for
the construction, alteration or renovation on the Property or for any other
purpose, together with all other sums due hereunder or secured hereby. All
notices to be given to the Mortgagee pursuant to 42 Pa. C.S.A. §8143 shall be
given as set forth in Section 62 hereof.

          52. Representations and Warranties. The Mortgagor represents and
warrants to the Mortgagee that (i) the Mortgagor has good and marketable title
to an estate in fee simple absolute in the Land and Improvements and has all
right, title and interest in all other property constituting a part of the
Property; (ii) its name, type of organization, jurisdiction of organization,
chief executive office, tax identification number and entity identification
number (to the extent Mortgagor’s state of organization assigns an entity
identification number) are true and complete as set forth on the cover page of
this Mortgage; (iii) this Mortgage is a valid and enforceable first lien on the
Property (subject only to any applicable Limited Permitted Liens) and (iv) the
Mortgagee shall, subject to the Mortgagor’s right of possession prior to an
Event of Default, quietly enjoy and possess the Property. The Mortgagor shall
preserve such title as it warrants herein and the validity and priority of the
lien hereof and shall forever warrant and defend the same to the Mortgagee
against the claims of all persons (other than the holders of Limited Permitted
Liens).

          53. Affirmative Covenants. Until all of the Secured Obligations shall
have been fully paid, satisfied and discharged or this Mortgage shall otherwise
be terminated by the Mortgagee, the Mortgagor shall:

                53.1 pay or perform, or cause to be paid and performed, all
Secured Obligations when due as provided in the Loan Documents;

                53.2 use and permit others to use the Property only for its
present use and such other uses as permitted by the terms and conditions of the
Credit Agreement, applicable Legal Requirements, and any other uses approved in
writing by the Mortgagee;

                53.3 upon the occurrence and during the continuance of an Event
of Default, pay or cause to be paid to the Mortgagee an amount equal to
one-twelfth (1/12) of the annual premiums for the insurance policies required
pursuant to Section 7.1.3 of the Credit Agreement and all items which at any
time may be or become a lien upon the Property, including without limitation any
taxes, assessments, or government charges payable with respect to the Property
(each an “Imposition”) pursuant to Section 7.1.2 of the Credit Agreement
(collectively, the “Escrow Charges”);

               53.4 in the event any law is enacted or adopted or amended after
the date of this Mortgage which deducts the Secured Obligations from the value
of the Property for the purpose of taxation or which imposes a tax, either
directly or indirectly, on the Mortgagor or the Mortgagee’s interest in the
Property, the Mortgagor will pay such tax, with interest and penalties thereon,
if any; and

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               53.5 endeavor to notify the Mortgagee promptly upon Mortgagor
obtaining knowledge of the institution of any proceedings with respect to the
Property for condemnation, rezoning, revocation of permits, levy, seizure,
attachment, or forfeiture, or any other material and adverse matter pursuant to
which the value of the Property could be significantly impaired; provided,
however, in no event shall any failure by Mortgagor to notify Mortgagee of any
such proceedings constitute an Event of Default under this Mortgage or any other
Loan Document.

No amount paid to the Mortgagee pursuant to Section 2(c) hereof shall be deemed
to be trust funds, nor shall any such sums paid bear interest. The Mortgagee
shall have no obligation to pay any insurance premium or Imposition if at any
time the funds being held by the Mortgagee for such premium or Imposition are
insufficient to make such payments. If, at any time, the funds being held by the
Mortgagee for any insurance premium or Imposition are exhausted, or if the
Mortgagee determines, in its sole discretion, that such funds will be
insufficient to pay in full any insurance premium or other such amount when due,
the Mortgagor shall promptly pay to the Mortgagee, upon demand, an amount which
the Mortgagee shall estimate as sufficient to make up the deficiency. The
Mortgagee shall have the right, at its election, to apply any amount so held
against the Secured Obligations due and payable in the order set forth in
Section 8.2.5 of the Credit Agreement, and the Mortgagor hereby grants to the
Mortgagee a lien upon and security interest in such amounts for such purpose.

          54. Negative Covenants. Until all of the Secured Obligations shall
have been fully paid, satisfied and discharged or this Mortgage shall otherwise
be terminated by the Mortgagee, the Mortgagor shall not:

               54.1 execute an assignment or pledge of the Rents or the Leases
other than in favor of the Mortgagee, accept any prepayment of an installment of
any Rents prior to the due date of such installment; or enter into or amend any
of the terms of any of the Leases without the Mortgagee’s prior written consent,
or enter into any leases or subleases of all or any part of the Property without
Mortgagee’s prior written consent, and any such leases or subleases shall be
subordinated to this Mortgage and to the Mortgagee’s rights hereunder and under
the Credit Agreement and, together with any and all rents, issues or profits
relating to such lease or sublease, shall be assigned to Mortgagee at the time
of execution of such lease or sublease as additional collateral security for the
Secured Obligations, all in such form, substance and detail as is satisfactory
to the Mortgagee in its reasonable discretion;

               54.2 except as otherwise permitted by the terms and conditions of
the Credit Agreement, sell, convey or otherwise transfer any interest in the
Property (whether voluntarily or by operation of law), or agree to do so,
without the Mortgagee’s prior written consent, except in favor of the Mortgagee;

               54.3 take or permit any action with respect to the Property which
will in any manner impair the security of this Mortgage or the use of the
Property; and

               54.4 shall not at any time deliver, cause to be delivered, or
permit any other Loan Party to deliver to the Mortgagee a notice pursuant to 42
Pa. C.S.A. §8143 (or any successor or similar law, rule or regulation) electing
to limit the indebtedness secured by this Mortgage.

          55. Inspection of Property. Upon the occurrence and during the
continuance of an Event of Default, the Mortgagee shall have the right to enter
the Property at any reasonable hour for the purpose of inspecting the order,
condition and repair of the buildings and improvements erected thereon, as well
as the conduct of operations and activities on the Property. In any such case,
the Mortgagee may enter the Property (and cause the Mortgagee’s employees,
agents and consultants to enter the Property), upon prior written notice to the
Mortgagor, to conduct any and all environmental testing deemed appropriate by
the Mortgagee in its sole discretion. Any environmental testing shall be
accomplished by whatever means the Mortgagee may deem appropriate, including the
taking of soil samples and the installation of ground water monitoring wells or
other intrusive environmental tests, and the Mortgagor shall provide the
Mortgagee (and the Mortgagee’s employees, agents and consultants) reasonable
rights of access to the Property as well as such information about the Property
and the past or present conduct of operations and activities thereon as the
Mortgagee shall reasonably request.

          56. Events of Default. The occurrence of an “Event of Default” (as
defined in any Loan Document) shall be an Event of Default hereunder.

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          57. Rights and Remedies of Mortgagee. If an Event of Default occurs,
the Mortgagee may, at its option and without demand, notice or delay, do one or
more of the following:

               57.1 exercise its remedies under the Credit Agreement;

               57.2 institute and maintain (i) an action of mortgage foreclosure
against the Property and the interests of the Mortgagor therein, (ii) institute
and maintain an action on any instruments evidencing the Secured Obligations or
any portion thereof, or (iii) take such other action at law or in equity for the
enforcement of any of the Loan Documents as the law may allow, and in each such
action described in this Section 6(b) the Mortgagee shall be entitled to all
costs of suit and attorneys fees;

               57.3 with respect to any lease or sublease of the Property, (i)
collect any or all of the Rents, including any Rents past due and unpaid, (ii)
perform any obligation or exercise any right or remedy of the Mortgagor under
any Lease, or (iii) enforce any obligation of any tenant of any of the Property.

The Mortgagee may exercise any right under this Section 6, whether or not the
Mortgagee shall have entered into possession of any of the Property, and nothing
herein contained shall be construed as constituting the Mortgagee a “mortgagee
in possession”, unless the Mortgagee shall have entered into and shall continue
to be in actual possession of the Property. The Mortgagor hereby authorizes and
directs each and every present and future tenant of any of the Property to pay
all Rents directly to the Mortgagee and to perform all other obligations of that
tenant for the direct benefit of the Mortgagee, as if the Mortgagee were the
landlord under the Lease with that tenant, immediately upon receipt of a demand
by the Mortgagee to make such payment or perform such obligations. The Mortgagor
hereby waives any right, claim or demand it may now or hereafter have against
any such tenant by reason of such payment of Rents or performance of obligations
to the Mortgagee, and any such payment or performance to the Mortgagee shall
discharge the obligations of the tenant to make such payment or performance to
the Mortgagor.

The Mortgagee shall have the right, in connection with the exercise of its
remedies hereunder, to the appointment of a receiver to take possession and
control of the Property or to collect the Rents, without notice and without
regard to the adequacy of the Property to secure the Secured Obligations. A
receiver while in possession of the Property shall have the right to make
repairs and to make improvements necessary or advisable in its or his opinion to
preserve the Property, or to make and keep them rentable to the best advantage,
and the Mortgagee may advance moneys to a receiver for such purposes. Any moneys
so expended or advanced by the Mortgagee or by a receiver shall be added to and
become a part of the Secured Obligations secured by this Mortgage.

          58. Application of Proceeds. The Mortgagee shall apply the proceeds of
any foreclosure sale of, or other disposition or realization upon, or Rents or
profits from, the Property in the manner set forth in Section 8.2.5 of the
Credit Agreement.

          59. Mortgagee’s Right to Protect Security. The Mortgagee is hereby
authorized to appear in and defend any action or proceeding purporting to affect
the security hereof or the Mortgagee’s rights or powers hereunder. If an Event
of Default has occurred and is continuing, Mortgagee is authorized to do any one
or more of the following (x) purchase such insurance policies covering the
Property as it may elect if the Mortgagor fails to maintain the insurance
coverage required hereunder; and (y) take such action as the Mortgagee may
determine to pay, perform or comply with any Impositions or Legal Requirements,
to cure any Events of Default and to protect its security in the Property.

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          60. Appointment of Mortgagee as Attorney-in-Fact. The Mortgagee, or
any of its officers, is hereby irrevocably appointed attorney-in-fact for the
Mortgagor (without requiring any of them to act as such), such appointment being
coupled with an interest, and Mortgagee is hereby authorized by Mortgagor to do
any or all of the following, pursuant to the terms and conditions set forth
herein or in the Credit Agreement: (a) collect the Rents; and (b) execute,
deliver and file, at Mortgagor’s sole cost and expense such financing,
continuation or amendment statements and other instruments as the Mortgagee may
require in order to perfect, protect and maintain its security interest under
the UCC on any portion of the Property.

          61. Certain Waivers. The Mortgagor hereby waives and releases all
benefit that might accrue to the Mortgagor by virtue of any present or future
law exempting the Property, or any part of the proceeds arising from any sale
thereof, from attachment, levy or sale on execution, or providing for any stay
of execution, exemption from civil process or extension of time for payment or
any rights of marshalling in the event of any sale hereunder of the Property,
and, unless specifically required herein, all notices of the Mortgagor’s default
or of the Mortgagee’s election to exercise, or the Mortgagee’s actual exercise
of any option under this Mortgage or any other Loan Document.

          62.Notices. All notices, demands, requests, consents, approvals and
other communications required or permitted hereunder (“Notices”) must be in
writing and will be effective upon receipt. Notices may be given in the manner
set forth in the Credit Agreement and may be sent to a party’s address as set
forth above or to such other address as any party may give to the other for such
purpose in accordance with this section.

          63. Security Agreement/Fixture Filing.

               63.1 This Mortgage is a Security Agreement as defined in the UCC.
Notwithstanding the filing of any financing statement covering any of the
Mortgaged Property in the records normally pertaining to personal property, at
Mortgagee’s option all of the Property, for all purposes and in all proceedings,
legal or equitable, shall be regarded (to the extent permitted by law) as part
of the Land, whether or not any such item is physically attached to the Land or
Improvements. The mention in any such financing statement of any of the Property
shall not be construed as in any way altering any of the rights of Mortgagee or
adversely affecting the priority of the lien granted hereby or by the Credit
Agreement, but such mention in the financing statement is hereby declared to be
for the protection of Mortgagee in the event any court shall at any time hold
that notice of Mortgagee’s priority of interest, to be effective against any
third party, must be filed in the UCC records.

               63.2 Mortgagor shall execute and deliver to Mortgagee such
documents, instruments and further assurances, in each case in form and
substance satisfactory to Mortgagee, as Mortgagee may, from time to time,
reasonably consider necessary to create, perfect and preserve Mortgagee’s
security interest hereunder. Mortgagor hereby irrevocably authorizes Mortgagee
to cause financing statements (and amendments thereto and continuations thereof)
and any such documents, instruments and assurances to be recorded and filed, at
such times and places as may be required or permitted by law to so create,
perfect and preserve such security interest. Mortgagor represents and warrants
to Mortgagee that its jurisdiction of organization is the Commonwealth of
Pennsylvania.

               63.3 This Mortgage shall also constitute a “fixture filing” for
the purposes of the UCC against all of the Mortgaged Property which is or is to
become fixtures related to the Property. The information in this section is
provided so that this Mortgage shall comply with the requirements of the UCC for
a mortgage instrument to be filed as a financing statement. Mortgagor is the
“Debtor” and its name and mailing address are set forth in the preamble of this
Mortgage. Mortgagee is the “Secured Party” and its name and mailing address from
which information concerning the security interest granted

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herein may be obtained are also set forth in the preamble of this Mortgage. A
statement describing the portion of the Property comprising the fixtures hereby
secured is set forth in the definition of the Secured Obligations. Mortgagor
represents and warrants to Mortgagee that Mortgagor is the record owner of the
applicable fee title or owner of the leasehold interest in the Mortgaged
Property. The employer identification number of Mortgagor, and its
organizational identification number, are set forth on the cover sheet to this
Mortgage.

          64. Further Acts. The Mortgagor will, at the cost of the Mortgagor and
without expense to the Mortgagee, do, execute, acknowledge and deliver all and
every such further acts, deeds, conveyances, mortgages, assignments, notices of
assignment, transfers and assurances as the Mortgagee shall, from time to time,
require for the better assuring, conveying, assigning, transferring or
confirming unto the Mortgagee the property and rights hereby mortgaged, or which
Mortgagor may be or may hereafter become bound to convey or assign to the
Mortgagee, or for carrying out the intent of or facilitating the performance of
the terms of this Mortgage or for filing, registering or recording this
Mortgage. The Mortgagor grants to the Mortgagee an irrevocable power of attorney
coupled with an interest for the purpose of exercising and perfecting any and
all rights and remedies available to the Mortgagee under this Mortgage, at law
or in equity.

          65. Documentary Stamps. If at any time the United States of America,
any State thereof or any subdivision of any such State shall require revenue or
other stamps to be affixed to any Note or this Mortgage, or impose any other tax
or charge on the same, the Mortgagor will pay for the same, with interest and
penalties thereon, if any.

          66. Preservation of Rights. No delay or omission on the Mortgagee’s
part to exercise any right or power arising hereunder will impair any such right
or power or be considered a waiver of any such right or power, nor will the
Mortgagee’s action or inaction impair any such right or power. The Mortgagee’s
rights and remedies hereunder are cumulative and not exclusive of any other
rights or remedies which the Mortgagee may have under other agreements, at law
or in equity.

          67. Illegality. If any provision contained in this Mortgage should be
invalid, illegal or unenforceable in any respect, it shall not affect or impair
the validity, legality and enforceability of the remaining provisions of this
Mortgage.

          68. Changes in Writing. No modification, amendment or waiver of, or
consent to any departure by the Mortgagor from, any provision of this Mortgage
will be effective unless made in a writing signed by the Mortgagee and delivered
in accordance with Section 10.6 of the Credit Agreement, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand on the Mortgagor will entitle the Mortgagor
to any other or further notice or demand in the same, similar or other
circumstance.

          69. Entire Agreement. This Mortgage (including the documents and
instruments referred to herein) constitutes the entire agreement and supersedes
all other prior agreements and understandings, both written and oral, between
the parties with respect to the subject matter hereof.

          70. Survival; Successors and Assigns. This Mortgage will be binding
upon and inure to the benefit of the Mortgagor and the Mortgagee and their
respective heirs, executors, administrators, successors and assigns; provided,
however, that the Mortgagor may not assign this Mortgage in whole or in part
without the Mortgagee’s prior written consent and the Mortgagee at any time may
assign this Mortgage in whole or in part; and provided, further, that the rights
and benefits under the Paragraphs entitled “Inspection of Property” and
“Indemnity” hereof shall also inure to the benefit of any persons or entities
who acquire title or ownership of the Property from or through the Mortgagee or
any Lender or

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through action of the Mortgagee or any Lender (including a foreclosure,
sheriff’s or judicial sale). The provisions of Paragraphs entitled “Inspection
of Property” and “Indemnity” shall survive the termination, satisfaction or
release of this Mortgage, the foreclosure of this Mortgage or the delivery of a
deed in lieu of foreclosure.

          71. Interpretation. In this Mortgage, unless the Mortgagee and the
Mortgagor otherwise agree in writing, the singular includes the plural and the
plural the singular; words importing any gender include the other genders;
references to statutes are to be construed as including all statutory provisions
consolidating, amending or replacing the statute referred to; the word “or”
shall be deemed to include “and/or”, the words “including”, “includes” and
“include” shall be deemed to be followed by the words “without limitation”;
references to articles, sections (or subdivisions of sections) or exhibits are
to those of this Mortgage; and references to agreements and other contractual
instruments shall be deemed to include all subsequent amendments and other
modifications to such instruments, but only to the extent such amendments and
other modifications are not prohibited by the terms of this Mortgage. Section
headings in this Mortgage are included for convenience of reference only and
shall not constitute a part of this Mortgage for any other purpose. If this
Mortgage is executed by more than one party as Mortgagor, the obligations of
such persons or entities will be joint and several.

          72. Indemnity. The Mortgagor agrees to indemnify each of the
Mortgagee, each Lender, each legal entity, if any, who controls, is controlled
by or is under common control with the Mortgagee or any Lender, and each of
their respective directors, officers, employees and agents (the “Indemnified
Parties”), and to hold each Indemnified Party harmless from and against, any and
all claims, damages, losses, liabilities and expenses (including all fees and
charges of internal or external counsel with whom any Indemnified Party may
consult and all expenses of litigation and preparation therefor) which any
Indemnified Party may incur, or which may be asserted against any Indemnified
Party by any person, entity or governmental authority (including any person or
entity claiming derivatively on behalf of the Mortgagor), in connection with or
arising out of or relating to the matters referred to in this Mortgage,
including without limitation any claims of slander of title, or any inaccuracy
with respect to the legal description, whether (a) arising from or incurred in
connection with any breach of a representation, warranty or covenant by the
Mortgagor, or (b) arising out of or resulting from any suit, action, claim,
proceeding or governmental investigation, pending or threatened, whether based
on statute, regulation or order, or tort, or contract or otherwise, before any
court or governmental authority; provided, however, that the foregoing indemnity
agreement shall not apply to any claims, damages, losses, liabilities and
expenses solely attributable to an Indemnified Party’s or an Affiliate of any
such Indemnified Party’s gross negligence or willful misconduct. The indemnity
agreement contained in this Section 72 shall survive the termination of this
Mortgage, payment of any Secured Obligations and assignment of any rights
hereunder. The Mortgagor may participate at its expense in the defense of any
such action or claim.

          73. Governing Law and Jurisdiction. THIS MORTGAGE HAS BEEN DELIVERED
TO AND ACCEPTED BY THE MORTGAGEE AND WILL BE DEEMED TO BE MADE IN THE STATE OF
NEW YORK. THIS MORTGAGE WILL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF
THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, EXCLUDING ITS CONFLICT OF LAWS RULES, EXCEPT THAT THE LAWS OF THE STATE
WHERE THE PROPERTY IS LOCATED SHALL GOVERN THE CREATION, PERFECTION AND
FORECLOSURE OF THE LIENS CREATED HEREUNDER ON THE PROPERTY OR ANY INTEREST
THEREIN. MORTGAGOR HEREBY IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE JURISDICTION
OF THE NEW YORK SUPREME COURT AND THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS
UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED OR
REGISTERED MAIL

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DIRECTED TO MORTGAGOR AT THE ADDRESSES PROVIDED IN THE FIRST PARAGRAPH OF THIS
MORTGAGE AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT
THEREOF. MORTGAGOR WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION
INSTITUTED AGAINST IT AS PROVIDED HEREIN AND AGREES NOT TO ASSERT ANY DEFENSE
BASED ON LACK OF JURISDICTION OR VENUE.

          74. Change in Name or Locations. The Mortgagor hereby agrees that if
the location of any of the Property changes from the Land or its chief executive
office, or if the Mortgagor changes its name, its type of organization, its
state of organization (if Mortgagor is a registered organization), its principal
residence (if Mortgagor is an individual), its chief executive office (if
Mortgagor is a general partnership or non-registered organization) or
establishes a name in which it may do business that is not the current name of
the Mortgagor, the Mortgagor will promptly notify the Mortgagee in writing of
the additions or changes.

          75. WAIVER OF JURY TRIAL. THE MORTGAGOR IRREVOCABLY WAIVES ANY AND ALL
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY
NATURE RELATING TO THIS MORTGAGE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS
MORTGAGE OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE MORTGAGOR
ACKNOWLEDGES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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The Mortgagor acknowledges that it has read and understood all the provisions of
this Mortgage, including the waiver of jury trial, and has been advised by
counsel as necessary or appropriate.

WITNESS the due execution hereof as a document under seal, as of the date first
written above, with the intent to be legally bound hereby.

 

 

 

 

 

 

 

 

 

WITNESS/ATTEST:

 

MORTGAGOR:

 

 

 

 

 

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(Corporation, Partnership or other Entity)

 

 

 

 

 

By:

 

 

 

 

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(SEAL)

 

 

 

 

 

Print Name:

 

 

Print Name:

 

 

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Title:

 

 

Title:

 

 

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CERTIFICATE OF RESIDENCE

          The undersigned certifies that the residence of the Mortgagee is
_____________________________________________________________________________________
______________________________________________________________________.

 

 

 

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On behalf of the Mortgagee

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COMMONWEALTH OF PENNSYLVANIA

CITY/COUNTY OF ____________________

          ON THIS, the ____ day of _______________, 20___, before me, the
undersigned Notary Public of said Commonwealth, personally appeared
_________________________, who acknowledged himself/herself to be the
_____________________ of _____________________, a limited liability company,
known to me (or satisfactorily proven) to be the person whose name is subscribed
to the within instrument, and acknowledged that he/she executed the same for the
purposes therein contained as the duly authorized _____________________ of said
limited liability company by signing the name of the general limited liability
company by himself/herself as ______________________.

          WITNESS my hand and Notarial Seal.

 

 

 

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Notary Public

 

 

My Commission Expires:

 

 

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EXHIBIT A

Legal Description

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OPEN-END MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND
RENTS AND FIXTURE FILING

[MORTGAGOR NAME]

[MORTGAGOR ADDRESS]

[MORTGAGOR STATE ID#]

Mortgagor (Debtor)

AND

PNC BANK, NATIONAL ASSOCIATION, as Agent for the Lenders

Firstside Center
500 First Avenue
Pittsburgh, PA 15219

Mortgagee (Secured Party)

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NOTE TO RECORDER: THIS MORTGAGE CONSTITUTES A FIXTURE FILING UNDER THE UCC (AS
DEFINED HEREIN) AND IS TO BE CROSS-REFERENCED IN THE UCC RECORDS.

THE SECURED PARTY (MORTGAGEE) DESIRES THIS FIXTURE FILING AND FINANCING
STATEMENT BE INDEXED AGAINST THE PROPERTY AND AGAINST THE RECORD OWNER OF THE
REAL ESTATE DESCRIBED HEREIN.

PREPARED BY, RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

Buchanan Ingersoll & Rooney PC
One Oxford Centre
301 Grant Street, 20th Floor
Pittsburgh, PA 15219-1410
Attention: John P. Dyro, Esq.

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PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT, dated as of March 7, 2008 (as restated,
amended, modified or supplemented from time to time, the “Agreement”), is given
by EACH OF THE UNDERSIGNED PARTIES LISTED ON THE SIGNATURE PAGES HERETO AND EACH
OF THE OTHER PERSONS AND ENTITIES THAT BECOME BOUND HEREBY FROM TIME TO TIME BY
JOINDER, ASSUMPTION OR OTHERWISE (each a “Pledgor” and collectively the
“Pledgors”), as a Pledgor of the equity interests in the Companies (as defined
herein), as more fully set forth herein, to PNC BANK, NATIONAL ASSOCIATION, as
Administrative Agent for itself and the Lenders (as defined below) under the
Credit Agreement described below (the “Secured Party”).

          WHEREAS, pursuant to the Seventh Amended and Restated Credit Agreement
by and among K. Hovnanian Enterprises, Inc., a California corporation (the
“Borrower”), Hovnanian Enterprises, Inc., a Delaware corporation (one of the
Guarantors (as defined below)), the Lenders now or hereafter party thereto (the
“Lenders”), and the Secured Party, dated as of the date hereof (together with
all amendments, restatements, modifications, extensions, supplements, renewals,
refinancings, and the like thereto, the “Credit Agreement”), the Lenders have
agreed to provide certain loans and other financial accommodations to the
Borrower;

          WHEREAS, pursuant to and in consideration of the Credit Agreement and
the Amended and Restated Guaranty and Suretyship Agreement, dated as of the date
hereof, given by each of the Pledgors (other than the Borrower) and the other
Guarantors now or hereafter party thereto (the “Guarantors”), to Secured Party
(together with all amendments, restatements, modifications, extensions,
supplements, and the like thereto, the “Guaranty”), all of the issued and
outstanding capital stock, shares, securities, member interests, partnership
interests, ownership interests and other investment property of each of the
Companies is to be pledged to the Secured Party in accordance herewith; and

          WHEREAS, each Pledgor owns the outstanding capital stock, shares,
securities, member interests, partnership interests and other ownership
interests of the Companies.

          NOW, THEREFORE, intending to be legally bound hereby, the parties
hereto hereby agree as follows:

          76. Defined Terms.

          76.1 Except as otherwise expressly provided herein, capitalized terms
used in this Agreement shall have the respective meanings assigned to them in
the Credit Agreement. Where applicable and except as otherwise expressly
provided herein, terms used herein (whether or not capitalized) that are defined
in Article 8 or Article 9 of the Uniform Commercial Code as enacted in the State
of New York, as amended from time to time (the “Code”), and are not otherwise
defined herein or in the Credit Agreement shall have the same meanings herein as
set forth therein.

          76.2 “Company” shall mean individually each Restricted Subsidiary (as
defined in the Credit Agreement) and “Companies” shall mean collectively, all
Restricted Subsidiaries.

          76.3 “Pledged Collateral” shall mean and include the following with
respect to each Company: (i) the capital stock, shares, securities, investment
property, member interests, partnership interests, warrants, options, put
rights, call rights, similar rights, and all other ownership or participation
interests, in any Company owned or held by any Pledgor at any time including
those in any Company hereafter formed or acquired, and (ii) all rights and
privileges pertaining thereto, including without limitation, all present and
future securities, shares, capital stock, investment property, dividends,
distributions and other

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ownership interests receivable in respect of or in exchange for any of the
foregoing, all present and future rights to subscribe for securities, shares,
capital stock, investment property or other ownership interests incident to or
arising from ownership of any of the foregoing, all present and future cash,
interest, stock or other dividends or distributions paid or payable on any of
the foregoing, and all present and future books and records (whether paper,
electronic or any other medium) pertaining to any of the foregoing, including,
without limitation, all stock record and transfer books and (iii) whatever is
received when any of the foregoing is sold, exchanged, replaced or otherwise
disposed of, including all proceeds, as such term is defined in the Code,
thereof.

          76.4 “Secured Obligations” shall mean and include all now existing and
hereafter arising Obligations of each and every Pledgor and other Loan Party to
the Secured Party, the Lenders, or any of their respective Affiliates under the
Credit Agreement or any of the other Loan Documents, together with any
extensions, renewals, replacements or refundings thereof.

          77. Grant of Security Interests.

          77.1 To secure on a first priority perfected basis the payment and
performance of all Secured Obligations, in full, each Pledgor hereby grants to
the Secured Party a continuing first priority security interest under the Code
in and hereby pledges to Secured Party, in each case for the benefit of each of
the Lenders and Secured Party and their respective Affiliates, all of such
Pledgor’s now existing and hereafter acquired or arising right, title and
interest in, to, and under the Pledged Collateral, whether now or hereafter
existing and wherever located.

          77.2 Upon the execution and delivery of this Agreement, each Pledgor
shall deliver to and deposit with the Secured Party (or with a Person designated
by Secured Party to hold the Pledged Collateral on behalf of Secured Party) in
pledge, all of such Pledgor’s certificates, instruments or other documents
comprising or evidencing the Pledged Collateral, together with undated stock
powers or similar transfer documents signed in blank by such Pledgor. In the
event that any Pledgor should ever acquire or receive certificates, securities,
instruments or other documents evidencing the Pledged Collateral, such Pledgor
shall deliver to and deposit with the Secured Party in pledge, all such
certificates, securities, instruments or other documents which evidence the
Pledged Collateral.

          78. Further Assurances.

          Prior to or concurrently with the execution of this Agreement, and
thereafter at any time and from time to time upon reasonable request of the
Secured Party, each Pledgor (in its capacity as a Pledgor and in its capacity as
a Company) shall execute and deliver to the Secured Party all financing
statements, continuation financing statements, assignments, certificates and
documents of title, affidavits, reports, notices, schedules of account, letters
of authority, further pledges, powers of attorney and all other documents
(collectively, the “Security Documents”) that the Secured Party may reasonably
request, in form reasonably satisfactory to the Secured Party, and take such
other action which the Secured Party may reasonably request, to perfect and
continue perfected and to create and maintain the first priority status of the
Secured Party’s security interest in the Pledged Collateral and to fully
consummate the transactions contemplated under this Agreement. Each Pledgor
authorizes Secured Party to record any one or more financing statements under
the applicable Uniform Commercial Code with respect to the pledge and security
interest herein granted. Each Pledgor hereby irrevocably makes, constitutes and
appoints the Secured Party (and any of the Secured Party’s officers or employees
or agents designated by the Secured Party) as such Pledgor’s true and lawful
attorney with power to sign the name of such Pledgor on all or any of the
Security Documents which the Secured Party determines must be executed, filed,
recorded or sent in order to perfect or continue perfected the Secured Party’s
security interest in the Pledged Collateral in any jurisdiction. Such power,
being coupled with an interest, is irrevocable until all

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of the Secured Obligations have been indefeasibly paid, in cash, in full and the
Commitments have terminated and all Letters of Credit have expired or been
terminated or otherwise been cash collateralized in accordance with Section
2.9.11 [Cash Collateral] of the Credit Agreement.

          79. Representations and Warranties.

          Each Pledgor hereby, jointly and severally, represents and warrants to
the Secured Party as follows:

          79.1 The Pledged Collateral of such Pledgor does not include Margin
Stock. “Margin Stock” as used in this clause (a) shall have the meaning ascribed
to such term by Regulation U of the Board of Governors of the Federal Reserve
System of the United States;

          79.2 Such Pledgor has and will continue to have (or, in the case of
after-acquired Pledged Collateral, at the time such Pledgor acquires rights in
such Pledged Collateral, will have and will continue to have), title to its
Pledged Collateral, free and clear of all Liens other than those in favor of the
Secured Party for the Lenders and the Secured Party;

          79.3 The capital stock, shares, securities, member interests,
partnership interests and other ownership interests constituting the Pledged
Collateral of such Pledgor have been duly authorized and validly issued to such
Pledgor, are fully paid and nonassessable and constitute one hundred percent
(100%) of the issued and outstanding capital stock, member interests or
partnership interests of each Company;

          79.4 Upon the completion of the filings and other actions specified on
Schedule B attached hereto, the security interests in the Pledged Collateral
granted hereunder by such Pledgor shall be are valid, perfected and of first
priority, subject to the Lien of no other Person;

          79.5 There are no restrictions upon the transfer of the Pledged
Collateral and such Pledgor has the power and authority and unencumbered right
to transfer the Pledged Collateral owned by such Pledgor free of any Lien and
without obtaining the consent of any other Person;

          79.6 Such Pledgor has all necessary power to execute, deliver and
perform this Agreement;

          79.7 This Agreement has been duly executed and delivered and
constitutes the valid and legally binding obligation of each Pledgor,
enforceable in accordance with its terms, except to the extent that
enforceability of this Agreement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar Laws affecting the
enforceability of creditors’ rights generally or limiting the right of specific
performance;

          79.8 Neither the execution or delivery by each Pledgor of this
Agreement, nor the compliance with the terms and provisions hereof, will violate
any provision of any Law or conflict with or result in a breach of any of the
terms, conditions or provisions of any judgment, order, injunction, decree or
ruling of any Official Body to which any Pledgor or any of its property is
subject or any provision of any material agreement or instrument to which
Pledgor is a party or by which such Pledgor or any of its property is bound;

          79.9 Each Pledgor’s exact legal name is as set forth on such Pledgor’s
signature page hereto;

          79.10 The jurisdiction of incorporation, formation or organization, as
applicable, of each Pledgor is as set forth on Schedule 1.1(C) to the Credit
Agreement;

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          79.11 Such Pledgor’s chief executive office is as set forth on
Schedule 1.1(C) to the Credit Agreement; and

          79.12 All rights of such Pledgor in connection with its ownership of
each of the Companies are evidenced and governed solely by the stock
certificates, instruments or other documents (if any) evidencing ownership of
each of the Companies and the organizational documents of each of the Companies,
and no shareholder, voting, or other similar agreements are applicable to any of
the Pledged Collateral or any of any Pledgor’s rights with respect thereto, and
no such certificate, instrument or other document provides that any member
interest, partnership interest or other intangible ownership interest in any
limited liability company or partnership constituting Pledged Collateral is a
“security” within the meaning of and subject to Article 8 of the Code, except
pursuant to Section 5(f) hereof; and the organizational documents of each
Company contain no restrictions on the rights of shareholders, members or
partners other than those that normally would apply to a company organized under
the laws of the jurisdiction of organization of each of the Companies; and none
of the limited liability company interests or partnership interest constituting
Pledged Collateral is represented by a certificate, except with respect to the
Companies as set forth on Schedule A attached hereto.

          80. General Covenants.

          Each Pledgor, jointly and severally, hereby covenants and agrees as
follows:

          80.1 Each Pledgor shall do all reasonable acts that may be necessary
and appropriate to maintain, preserve and protect the Pledged Collateral; and
each Pledgor shall be responsible for the risk of loss of, damage to, or
destruction of the Pledged Collateral owned by such Pledgor, unless such loss is
the result of the gross negligence or willful misconduct of the Secured Party;

          80.2 Each Pledgor shall appear in and defend any action or proceeding
of which such Pledgor is aware which could reasonably be expected to affect, in
any material respect, any Pledgor’s title to, or the Secured Party’s interest
in, the Pledged Collateral or the proceeds thereof; provided, however, that with
the prior written consent of the Secured Party, such Pledgor may settle such
actions or proceedings with respect to the Pledged Collateral;

          80.3 The books an records of each of the Pledgors and Companies, as
applicable, shall disclose the Secured Party’s security interest in the Pledged
Collateral;

          80.4 To the extent, following the date hereof, any Pledgor acquires
capital stock, shares, securities, member interests, partnership interests,
investment property and other ownership interests of any of the Companies or any
other Restricted Subsidiary or any of the rights, property or securities,
shares, capital stock, member interests, partnership interests, investment
property or any other ownership interests described in the definition of Pledged
Collateral with respect to any of the Companies or any other Restricted
Subsidiary, all such ownership interests shall be subject to the terms hereof
and, upon such acquisition, shall be deemed to be hereby pledged to the Secured
Party; and each Pledgor thereupon, in confirmation thereof, shall promptly
deliver all such securities, shares, capital stock, member interests,
partnership interests, investment property and other ownership interests (to the
extent such items are certificated), to the Secured Party, together with undated
stock powers or other similar transfer documents, and all such control
agreements, financing statements, and any other documents necessary to implement
the provisions and purposes of this Agreement as the Secured Party may request
related thereto;

          80.5 Each Pledgor shall notify the Secured Party in writing within
thirty (30) calendar days after any change in any Pledgor’s chief executive
office address, legal name, or state of incorporation, formation or
organization; and

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          80.6 Subject to Section 4(l) hereof, during the term of this
Agreement, no Pledgor shall permit or cause any Company which is a limited
liability company or a limited partnership to (and no Pledgor (in its capacity
as Company) shall) issue any certificates evidencing the ownership interests of
such Company or elect to treat any ownership interests as securities that are
subject to Article 8 of the Code unless such securities are immediately
delivered to the Secured Party upon issuance, together with all evidence of such
election and issuance and all Security Documents as set forth in Section 3
hereof, and an updated Schedule A hereto.

          81. Other Rights With Respect to Pledged Collateral.

          In addition to the other rights with respect to the Pledged Collateral
granted to the Secured Party hereunder, at any time and from time to time, after
and during the continuation of an Event of Default, the Secured Party, at its
option and at the expense of the Pledgors, may (a) transfer into its own name,
or into the name of its nominee, all or any part of the Pledged Collateral,
thereafter receiving all dividends, income or other distributions upon the
Pledged Collateral; (b) take control of and manage all or any of the Pledged
Collateral; (c) apply to the payment of any of the Secured Obligations, whether
any be due and payable or not, any moneys, including cash dividends and income
from any Pledged Collateral, now or hereafter in the hands of the Secured Party
or any Affiliate of the Secured Party, on deposit or otherwise, belonging to any
Pledgor, as the Secured Party in its sole discretion shall determine; and (d) do
anything which any Pledgor is required but fails to do hereunder. The Secured
Party shall endeavor to provide the Borrower with notice at or about the time of
the exercise of its rights pursuant to the preceding sentence, provided that the
failure to provide such notice shall not in any way compromise or adversely
affect the exercise of any rights or remedies hereunder.

          82. Additional Remedies Upon Event of Default.

          Upon the occurrence of any Event of Default and while such Event of
Default shall be continuing, the Secured Party shall have, in addition to all
rights and remedies of a secured party under the Code or other applicable Law,
and in addition to its rights under Section 6 above and under the other Loan
Documents, the following rights and remedies:

          82.1 The Secured Party may, after ten (10) days’ advance notice to a
Pledgor, sell, assign, give an option or options to purchase or otherwise
dispose of such Pledgor’s Pledged Collateral or any part thereof at public or
private sale, at any of the Secured Party’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Secured Party
may deem commercially reasonable. Each Pledgor agrees that ten (10) days’
advance notice of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The
Secured Party shall not be obligated to make any sale of Pledged Collateral
regardless of notice of sale having been given. The Secured Party may adjourn
any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. Each Pledgor recognizes that the
Secured Party may be compelled to resort to one or more private sales of the
Pledged Collateral to a restricted group of purchasers who will be obliged to
agree, among other things, to acquire such securities, shares, capital stock,
member interests, partnership interests, investment property or ownership
interests for their own account for investment and not with a view to the
distribution or resale thereof.

          82.2 The proceeds of any collection, sale or other disposition of the
Pledged Collateral, or any part thereof, shall, after the Secured Party has made
all deductions of expenses, including but not limited to attorneys’ fees
(including the allocated costs of staff counsel) and other expenses incurred in
connection with repossession, collection, sale or disposition of such Pledged
Collateral or in connection with the enforcement of the Secured Party’s rights
with respect to the Pledged Collateral, including in any

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insolvency, bankruptcy or reorganization proceedings, be applied against the
Secured Obligations, whether or not all the same be then due and payable, as
provided in the Credit Agreement.

          83. Secured Party’s Duties.

          The powers conferred on the Secured Party hereunder are solely to
protect its interest in the Pledged Collateral and shall not impose any duty
upon it to exercise any such powers. Except for the safe custody of any Pledged
Collateral in its possession and the accounting for moneys actually received by
it hereunder, the Secured Party shall have no duty as to any Pledged Collateral
or as to the taking of any necessary steps to preserve rights against prior
parties or any other rights pertaining to any Pledged Collateral.

          84. Additional Pledgors.

          It is anticipated that additional persons may from time to time become
Subsidiaries of the Borrower or a Guarantor, each of whom will be required to
join this Agreement as a Pledgor hereunder to the extent that such new
Subsidiary owns equity interests in any other Person that is a Restricted
Subsidiary. It is acknowledged and agreed that such new Subsidiaries of the
Borrower or of a Guarantor may become Pledgors hereunder and will be bound
hereby simply by executing and delivering to Secured Party a Guarantor Joinder
in the form of Exhibit 1.1(G)(2) to the Credit Agreement. No notice of the
addition of any Pledgor shall be required to be given to any pre-existing
Pledgor, and each Pledgor hereby consents thereto.

          85. No Waiver; Cumulative Remedies.

          No failure to exercise, and no delay in exercising, on the part of the
Secured Party, any right, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any further exercise thereof or the exercise of any
other right, power or privilege. No waiver of a single Event of Default shall be
deemed a waiver of a subsequent Event of Default. The remedies herein provided
are cumulative and not exclusive of any remedies provided under the other Loan
Documents or by Law, rule or regulation and the Secured Party may enforce any
one or more remedies hereunder successively or concurrently at its option. Each
Pledgor waives any right to require the Secured Party to proceed against any
other Person or to exhaust any of the Pledged Collateral or other security for
the Secured Obligations or to pursue any remedy in the Secured Party’s power.

Waivers.

          Each Pledgor hereby waives any and all defenses which any Pledgor may
now or hereafter have based on principles of suretyship, impairment of
collateral, or the like and each Pledgor hereby waives any defense to or
limitation on its obligations under this Agreement arising out of or based on
any event or circumstance referred to in the immediately preceding Section
hereof. Without limiting the generality of the foregoing and to the fullest
extent permitted by applicable law, each Pledgor hereby further waives each of
the following:

          All notices, disclosures and demands of any nature which otherwise
might be required from time to time to preserve intact any rights against such
Pledgor, including the following: any notice of any event or circumstance
described in the immediately preceding Section hereof; any notice required by
any law, regulation or order now or hereafter in effect in any jurisdiction; any
notice of nonpayment, nonperformance, dishonor, or protest under any Loan
Document or any of the Secured Obligations; any notice of the incurrence of any
Secured Obligation; any notice of any default or any failure on the part of such
Pledgor or the Borrower or any other Person to comply with any Loan Document or
any of the Secured Obligations or any requirement pertaining to any direct or
indirect security for any of the Secured Obligations; and any notice or other
information pertaining to the business, operations, condition (financial or
otherwise), or prospects of the Borrower or any other Person;

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          Any right to any marshalling of assets, to the filing of any claim
against such Pledgor or the Borrower or any other Person in the event of any
bankruptcy, insolvency, reorganization, or similar proceeding, or to the
exercise against such Pledgor or the Borrower, or any other Person of any other
right or remedy under or in connection with any Loan Document or any of the
Secured Obligations or any direct or indirect security for any of the Secured
Obligations; any requirement of promptness or diligence on the part of the
Secured Party or any other Person; any requirement to exhaust any remedies under
or in connection with, or to mitigate the damages resulting from default under,
any Loan Document or any of the Secured Obligations or any direct or indirect
security for any of the Secured Obligations; any benefit of any statute of
limitations; and any requirement of acceptance of this Agreement or any other
Loan Document, and any requirement that any Pledgor receive notice of any such
acceptance; and

          Any defense or other right arising by reason of any Law now or
hereafter in effect in any jurisdiction pertaining to election of remedies
(including anti-deficiency laws, “one action” laws, or the like), or by reason
of any election of remedies or other action or inaction by the Secured Party
(including commencement or completion of any judicial proceeding or nonjudicial
sale or other action in respect of collateral security for any of the Secured
Obligations), which results in denial or impairment of the right of the Secured
Party to seek a deficiency against the Borrower or any other Person or which
otherwise discharges or impairs any of the Secured Obligations.

          86. Assignment.

          All rights of the Secured Party under this Agreement shall inure to
the benefit of its successors and assigns. All obligations of each Pledgor shall
bind its successors and assigns; provided, however, that no Pledgor may assign
or transfer any of its rights and obligations hereunder or any interest herein,
and any such purported assignment or transfer shall be null and void.

          87. Severability.

          Any provision (or portion thereof) of this Agreement which shall be
held invalid or unenforceable shall be ineffective without invalidating the
remaining provisions hereof (or portions thereof).

          88. Governing Law.

          This Agreement and the rights and obligations of the parties under
this Agreement shall be governed by, and construed and interpreted in accordance
with, the Law of the State of New York, except to the extent the validity or
perfection of the security interests or the remedies hereunder in respect of any
Pledged Collateral are governed by the law of a jurisdiction other than the
State of New York.

          89. Notices.

          All notices, requests, demands, directions and other communications
(collectively, “notices”) given to or made upon any party hereto under the
provisions of this Agreement shall be given or made as set forth in Section 10.6
[Notices] of the Credit Agreement, and the Pledgors (in their capacity as
Pledgors and in their capacity as Companies) shall simultaneously send to the
Secured Party any notices such Pledgor or such Company delivers to each other
regarding any of the Pledged Collateral.

          90. Specific Performance.

          Each Pledgor acknowledges and agrees that, in addition to the other
rights of the Secured Party hereunder and under the other Loan Documents,
because the Secured Party’s remedies at law for failure of any Pledgor to comply
with the provisions hereof relating to the Secured Party’s rights (i) to inspect
the books and records related to the Pledged Collateral, (ii) to receive the
various notifications any Pledgor is required to deliver hereunder, (iii) to
obtain copies of agreements and documents as provided herein with respect to the
Pledged Collateral, (iv) to enforce the provisions hereof pursuant to which any
Pledgor has appointed the Secured Party its attorney-in-fact, and (v) to enforce
the Secured Party’s remedies

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hereunder, would be inadequate and that any such failure would not be adequately
compensable in damages, such Pledgor agrees that each such provision hereof may
be specifically enforced.

          91. Voting Rights in Respect of the Pledged Collateral.

                    So long as no Event of Default shall occur and be continuing
under the Credit Agreement, each Pledgor may exercise any and all voting and
other consensual rights pertaining to the Pledged Collateral or any part thereof
for any purpose not inconsistent with the terms of this Agreement or the other
Loan Documents; provided, however, that such Pledgor will not exercise or will
refrain from exercising any such voting and other consensual right pertaining to
the Pledged Collateral, as the case may be, if such action would have a material
adverse effect on the value of any Pledged Collateral. At any time and from time
to time, after and during the continuation of an Event of Default, no Pledgor
shall be permitted to exercise any of its respective voting and other consensual
rights whatsoever pertaining to the Pledged Collateral or any part thereof;
provided, however, in addition to the other rights with respect to the Pledged
Collateral granted to the Secured Party, for the benefit of itself and the
Lenders, hereunder, at any time and from time to time, after and during the
continuation of an Event of Default, the Secured Party may exercise any and all
voting and other consensual rights of each and every Pledgor pertaining to the
Pledged Collateral or any part thereof. The Secured Party shall endeavor to
provide the Borrower with notice at or about the time of the exercise by Secured
Party of the voting or other consensual rights of such Pledgor pertaining to the
Pledged Collateral, provided that the failure to provide such notice shall not
in any way compromise or adversely affect the exercise of Secured Party’s rights
or remedies hereunder. Without limiting the generality of the foregoing and in
addition thereto, Pledgors shall not vote to enable, or take any other action to
permit, any Company to: (i) issue any other ownership interests of any nature or
to issue any other securities, investment property or other ownership interests
convertible into or granting the right to purchase or exchange for any other
ownership interests of any nature of any such Company, except as expressly
permitted by the Credit Agreement; or (ii) to enter into any agreement or
undertaking restricting the right or ability of such Pledgor or Secured Party to
sell, assign or transfer any of the Pledged Collateral without the Secured
Party’s prior written consent.

          92. Consent to Jurisdiction.

          Each Pledgor (as a Pledgor and as a Company) and each of the Companies
(i) hereby irrevocably submits to the nonexclusive jurisdiction of the courts of
the State of New York and the United States District Court for the Southern
District of New York, or any successor to said court (hereinafter referred to as
the “New York Courts”) for purposes of any suit, action or other proceeding
which relates to this Agreement or any other Loan Document, (ii) to the extent
permitted by applicable Law, hereby waives and agrees not to assert by way of
motion, as a defense or otherwise in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of the New York
Courts, that such suit, action or proceeding is brought in an inconvenient
forum, that the venue of such suit, action or proceeding is improper, or that
this Agreement or any Loan Document may not be enforced in or by the New York
Courts, (iii) hereby agrees not to seek, and hereby waives, any collateral
review by any other court, which may be called upon to enforce the judgment of
any of the New York Courts, of the merits of any such suit, action or proceeding
or the jurisdiction of the New York Courts, and (iv) waives personal service of
any and all process upon it and consents that all such service of process be
made by certified or registered mail addressed as provided in Section 16 hereof
and service so made shall be deemed to be completed upon actual receipt thereof.
Nothing herein shall limit any Lender’s right to bring any suit, action or other
proceeding against any Pledgor or any of any Pledgor’s assets or to serve
process on any Pledgor by any means authorized by Law.

--------------------------------------------------------------------------------

          93. Waiver of Jury Trial.

          EXCEPT AS PROHIBITED BY LAW, EACH PLEDGOR (AS A PLEDGOR AND AS A
COMPANY), EACH OF THE COMPANIES AND THE SECURED PARTY, ON BEHALF OF THE LENDERS,
HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY A JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH
THIS AGREEMENT OR ANY OTHER DOCUMENTS OR TRANSACTIONS RELATING THERETO.

          94. Entire Agreement; Additional Pledgors; Amendments.

          94.1 This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior
agreements relating to a grant of a security interest in the Pledged Collateral
by any Pledgor to the Secured Party.

          94.2 At any time after the initial execution and delivery of this
Agreement to the Secured Party and the Lenders, additional Persons may become
parties to this Agreement and thereby acquire the duties and rights of being
Pledgors hereunder by executing and delivering to the Secured Party and the
Lenders a Guarantor Joinder pursuant to the Credit Agreement. No notice of the
addition of any Pledgor shall be required to be given to any pre-exiting Pledgor
and each Pledgor hereby consents thereto.

          94.3 Except as expressly provided in Section 5(d) with respect to
certificated securities issued by Companies that are limited liability companies
or limited partnerships, in Section 9 with respect to additional Pledgors, and
in Section 21 with respect to the release of Pledgors and Companies, this
Agreement may not be amended or supplemented except by a writing signed by the
Secured Party and the Pledgors.

          95. Automatic Release of Related Collateral and Equity.

          At any time after the initial execution and delivery of this Agreement
to the Secured Party and the Lenders, Pledgors and Companies may be released
from this (i) Agreement pursuant to Section 2.11.1 [Release of Guarantors] of
the Credit Agreement and (ii) their respective duties and rights as Pledgors
and/or Companies, hereunder and the corresponding Pledged Collateral pledged by
such Pledgor or issued by such Company, as the case may be, shall be released
pursuant to Section 2.11.5 of the Credit Agreement. No notice of such release of
any Pledgor or any Company shall be required to be given to any other Pledgor
and each Pledgor hereby consents thereto.

          96. Counterparts; Telecopy Signatures.

          This Agreement may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which, when so
executed, shall be deemed an original, but all such counterparts shall
constitute one and the same instrument. Each Pledgor acknowledges and agrees
that a telecopy or electronic (i.e., “e-mail” or “portable document folio”
(“pdf”)) transmission to the Secured Party or any Lender of the signature pages
hereof purporting to be signed on behalf of any Pledgor shall constitute
effective and binding execution and delivery hereof by such Pledgor.

          97. Construction.

          The rules of construction contained in Section 1.2 [Construction] of
the Credit Agreement apply to this Agreement.

--------------------------------------------------------------------------------

[SIGNATURE PAGES FOLLOW]

--------------------------------------------------------------------------------

[SIGNATURE PAGE 1 OF 54 TO THE PLEDGE AGREEMENT]

          IN WITNESS WHEREOF, and intending to be legally bound, the parties
hereto have caused this Agreement to be duly executed as of the date first above
written.

 

 

 

PNC BANK, NATIONAL ASSOCIATION, as Agent

 

 

 

By:

 

--------------------------------------------------------------------------------

 

Name:

 

--------------------------------------------------------------------------------

 

Title:

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Pledgors:          

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

By:

 

 

--------------------------------------------------------------------------------

 

Name:

Kevin C. Hake

 

Title:

Senior Vice-President — Finance and Treasurer

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

HOVNANIAN ENTERPRISES, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

Kevin C. Hake

 

Title:

Senior Vice-President — Finance and Treasurer

 

 

 

EASTERN TITLE AGENCY, INC.

 

 

 

FOUNDERS TITLE AGENCY, INC.

 

 

 

GOVERNOR’S ABSTRACT CO., INC.

 

 

 

HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

 

 

 

K. HOV INTERNATIONAL, INC.

 

 

 

K. HOV IP, II, INC.

 

 

 

K. HOV IP, INC.

 

 

 

K. HOVNANIAN ACQUISITIONS, INC.

 

 

 

K. HOVNANIAN AT BERNARDS IV, INC.

 

 

 

K. HOVNANIAN AT BRANCHBURG III, INC.

 

 

 

K. HOVNANIAN AT BRIDGEPORT, INC.

 

 

 

K. HOVNANIAN AT BRIDGEWATER VI, INC.

 

 

 

K. HOVNANIAN AT BURLINGTON III, INC.

 

 

 

K. HOVNANIAN AT BURLINGTON, INC.

 

 

 

K. HOVNANIAN AT CALABRIA, INC.

 

 

 

K. HOVNANIAN AT CAMERON CHASE, INC.

 

 

 

K. HOVNANIAN AT CARMEL DEL MAR, INC.

 

 

 

K. HOVNANIAN AT CASTILE, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT CHAPARRAL, INC.

 

 

 

K. HOVNANIAN AT CLARKSTOWN, INC.

 

 

 

K. HOVNANIAN AT CRESTLINE, INC.

 

 

 

K. HOVNANIAN AT DOMINGUEZ HILLS, INC.

 

 

 

K. HOVNANIAN AT EAST WHITELAND I, INC.

 

 

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP I, INC.

 

 

 

K. HOVNANIAN AT HERSHEY’S MILL, INC.

 

 

 

K. HOVNANIAN AT HACKETTSTOWN, INC.

 

 

 

K. HOVNANIAN AT HIGHLAND VINEYARDS, INC.

 

 

 

K. HOVNANIAN AT HOPEWELL IV, INC.

 

 

 

K. HOVNANIAN AT HOPEWELL VI, INC.

 

 

 

K. HOVNANIAN AT HOWELL TOWNSHIP, INC.

 

 

 

K. HOVNANIAN AT KINGS GRANT I, INC.

 

 

 

K. HOVNANIAN AT LA TERRAZA, INC.

 

 

 

K. HOVNANIAN AT LAKEWOOD, INC.

 

 

 

K. HOVNANIAN AT LOWER SAUCON, INC.

 

 

 

K. HOVNANIAN AT MAHWAH II, INC.

 

 

 

K. HOVNANIAN AT MAHWAH VI, INC.

 

 

 

K. HOVNANIAN AT MAHWAH VII, INC.

 

 

 

K. HOVNANIAN AT MANALAPAN, INC.

 

 

 

K. HOVNANIAN AT MARLBORO II, INC.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP III, INC.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IV, INC.

 

 

 

K. HOVNANIAN AT MONTGOMERY I, INC.

 

 

 

K. HOVNANIAN AT MONROE II, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.

 

 

 

K. HOVNANIAN AT NORTHLAKE, INC.

 

 

 

K. HOVNANIAN AT OCEAN TOWNSHIP, INC.

 

 

 

K. HOVNANIAN AT OCEAN WALK, INC.

 

 

 

K. HOVNANIAN AT PERKIOMEN I, INC.

 

 

 

K. HOVNANIAN AT PERKIOMEN II, INC.

 

 

 

K. HOVNANIAN AT RANCHO CRISTIANITOS, INC.

 

 

 

K. HOVNANIAN AT RESERVOIR RIDGE, INC.

 

 

 

K. HOVNANIAN AT SAN SEVAINE, INC.

 

 

 

K. HOVNANIAN AT SARATOGA, INC.

 

 

 

K. HOVNANIAN AT SAWMILL, INC.

 

 

 

K. HOVNANIAN AT SCOTCH PLAINS II, INC.

 

 

 

K. HOVNANIAN AT SMITHVILLE, INC.

 

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK V, INC.

 

 

 

K. HOVNANIAN AT STONE CANYON, INC.

 

 

 

K. HOVNANIAN AT STONY POINT, INC.

 

 

 

K. HOVNANIAN AT SYCAMORE, INC.

 

 

 

K. HOVNANIAN AT TANNERY HILL, INC.

 

 

 

K. HOVNANIAN AT THE BLUFF, INC.

 

 

 

K. HOVNANIAN AT THORNBURY, INC.

 

 

 

K. HOVNANIAN AT TIERRASANTA, INC.

 

 

 

K. HOVNANIAN AT TROVATA, INC.

 

 

 

K. HOVNANIAN AT TUXEDO, INC.

 

 

 

K. HOVNANIAN AT UNION TOWNSHIP I, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP I, INC.

 

 

 

K. HOVNANIAN AT UPPER MAKEFIELD I, INC.

 

 

 

K. HOVNANIAN AT VAIL RANCH, INC.

 

 

 

K. HOVNANIAN AT WALL TOWNSHIP VI, INC.

 

 

 

K. HOVNANIAN AT WALL TOWNSHIP VIII, INC.

 

 

 

K. HOVNANIAN AT WASHINGTONVILLE, INC.

 

 

 

K. HOVNANIAN AT WAYNE III, INC.

 

 

 

K. HOVNANIAN AT WAYNE V, INC.

 

 

 

K. HOVNANIAN AT WILDROSE, INC.

 

 

 

K. HOVNANIAN COMMUNITIES, INC.

 

 

 

K. HOVNANIAN COMPANIES NORTHEAST, INC.

 

 

 

K. HOVNANIAN COMPANIES OF CALIFORNIA, INC.

 

 

 

K. HOVNANIAN COMPANIES OF MARYLAND, INC.

 

 

 

K. HOVNANIAN COMPANIES OF NEW YORK, INC.

 

 

 

K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.

 

 

 

K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC.

 

 

 

K. HOVNANIAN COMPANIES OF VIRGINIA, INC.

 

 

 

K. HOVNANIAN CONSTRUCTION II, INC.

 

 

 

K. HOVNANIAN CONSTRUCTION III, INC.

 

 

 

K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN DEVELOPMENTS OF CONNECTICUT, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF INDIANA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF MICHIGAN, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

 

 

 

K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC.

 

 

 

K. HOVNANIAN FORECAST HOMES NORTHERN, INC.

 

 

 

K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN HOMES OF VIRGINIA, INC.

 

 

 

K. HOVNANIAN PA REAL ESTATE, INC.

 

 

 

K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC.

 

 

 

K. HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC.

 

 

 

K. HOVNANIAN PROPERTIES OF RED BANK, INC.

 

 

 

KHC ACQUISITION, INC.

 

 

 

LANDARAMA, INC.

 

 

 

M&M AT LONG BRANCH, INC.

 

 

 

MCNJ, INC.

 

 

 

SEABROOK ACCUMULATION CORPORATION STONEBROOK HOMES, INC.

 

 

 

THE MATZEL & MUMFORD ORGANIZATION, INC.

 

 

 

WASHINGTON HOMES, INC.

 

 

 

WH LAND I, INC.

 

 

 

WH PROPERTIES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF D.C., L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of D.C., Inc., as the sole member of the foregoing
limited liability company

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C.

 

 

 

GREENWAY FARMS UTILITY ASSOCIATES, L.L.C.

 

 

 

HOMEBUYERS FINANCIAL SERVICES, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C.

 

 

 

K. HOVNANIAN AT KING FARM, L.L.C.

 

 

 

K. HOVNANIAN AT RODERUCK. L.L.C.

 

 

 

K. HOVNANIAN AT WILLOW BROOK, L.L.C.

 

 

 

K. HOVNANIAN COMPANIES OF METRO D.C. NORTH, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT CIDER MILL, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF MARYLAND, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C.

 

 

 

RIDGEMORE UTILITY, L.L.C.

 

 

 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C.

 

 

 

WH/PR LAND COMPANY, LLC

 

 

 

WOODLAND LAKES CONDOS AT BOWIE NEWTOWN, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

ALFORD, L.L.C.

 

 

 

DULLES COPPERMINE, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF VIRGINIA, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.

 

 

 

K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, L.L.C.

 

 

 

K. HOVNANIAN FRANCUSCUS HOMES, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT CAMERON STATION, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT BELMONT OVERLOOK, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT VICTORIA STATION, L.L.C.

 

 

 

K. HOVNANIAN SUMMIT HOLDINGS, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT ASHBURN VILLAGE, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY CONDOMINIUM, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT VINT HILL, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Virginia, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

AUDDIE ENTERPRISES, L.L.C.

 

 

 

BUILDER SERVICES NJ, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C.

 

 

 

K. HOVNANIAN AT ABERDEEN URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENDALE, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT I, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT II, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT III, L.L.C.

 

 

 

K. HOVNANIAN AT BERKELEY, L.L.C.

 

 

 

K. HOVNANIAN AT BERNARDS V, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT BLUE HERON PINES, L.L.C.

 

 

 

K. HOVNANIAN AT BRIDGEWATER I, L.L.C

 

 

 

K. HOVNANIAN AT CAMDEN I, L.L.C.

 

 

 

K. HOVNANIAN AT CEDAR GROVE III, L.L.C.

 

 

 

K. HOVNANIAN AT CEDAR GROVE IV, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTER I, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTERFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTERFIELD II, L.L.C.

 

 

 

K. HOVNANIAN AT CLIFTON II, L.L.C.

 

 

 

K. HOVNANIAN AT CLIFTON, L.L.C.

 

 

 

K. HOVNANIAN AT CRANBURY, L.L.C.

 

 

 

K. HOVNANIAN AT CURRIES WOODS, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT DENVILLE, L.L.C.

 

 

 

K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT DOVER, L.L.C.

 

 

 

K. HOVNANIAN AT EDGEWATER II, L.L.C.

 

 

 

K. HOVNANIAN AT EDGEWATER, L.L.C.

 

 

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT ELK TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT FIFTH AVENUE, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT FLORENCE I, L.L.C.

 

 

 

K. HOVNANIAN AT FLORENCE II, L.L.C.

 

 

 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C.

 

 

 

K. HOVNANIAN AT FRANKLIN, L.L.C.

 

 

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT GALLOWAY, L.L.C.

 

 

 

K. HOVNANIAN AT GREAT NOTCH, L.L.C.

 

 

 

K. HOVNANIAN AT GUTTENBERG, L.L.C.

 

 

 

K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.

 

 

 

K. HOVNANIAN AT HAMBURG CONTRACTORS, L.L.C.

 

 

 

K. HOVNANIAN AT HAMBURG, L.L.C.

 

 

 

K. HOVNANIAN AT HAWTHORNE, L.L.C

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT HAZLET, L.L.C.

 

 

 

K. HOVNANIAN AT HILLTOP, L.L.C.

 

 

 

K. HOVNANIAN AT JACKSON I, L.L.C.

 

 

 

K. HOVNANIAN AT JACKSON, L.L.C.

 

 

 

K. HOVNANIAN AT JERSEY CITY IV, L.L.C.

 

 

 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.

 

 

 

K. HOVNANIAN AT KEYPORT, L.L.C.

 

 

 

K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C.

 

 

 

K. HOVNANIAN AT LAWRENCE V, L.L.C.

 

 

 

K. HOVNANIAN AT LINWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR CONTRACTORS, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR III, L.L.C.

 

 

 

K. HOVNANIAN AT LONG BRANCH I, L.L.C.

 

 

 

K. HOVNANIAN AT MANALAPAN III, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD I, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD II, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD III, L.L.C.

 

 

 

K. HOVNANIAN AT MAPLE AVENUE, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT MARLBORO VI, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO VII, L.L.C.

 

 

 

K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLETOWN II, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLETOWN, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE I, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE II, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE III, L.L.C.

 

 

 

K. HOVNANIAN AT MONROE III, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and

 

 

 

 

Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT MONROE IV, L.L.C.

 

 

 

 

K. HOVNANIAN AT MONROE NJ, L.L.C.

 

 

 

K. HOVNANIAN AT MONTVALE, L.L.C.

 

 

 

K. HOVNANIAN AT MT. OLIVE TOWNSHIP, L.L.C.

 

 

 

 

K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH BERGEN, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.

 

 

 

 

K. HOVNANIAN AT NORTH CALDWELL III, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH CALDWELL, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH HALEDON, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT NORTHFIELD, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT OCEANPORT, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT OLD BRIDGE, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PARAMUS, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PARSIPPANY-TROY HILLS, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PEAPACK-GLADSTONE, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PITTSGROVE, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT PRINCETON LANDING, L.L.C.

 

 

 

 

K. HOVNANIAN AT PRINCETON NJ, L.L.C.

 

 

 

 

K. HOVNANIAN AT RANDOLPH I, L.L.C.

 

 

 

 

K. HOVNANIAN AT READINGTON II, L.L.C.

 

 

 

 

K. HOVNANIAN AT RED BANK, L.L.C.

 

 

 

 

K. HOVNANIAN AT RIDGEMONT, L.L.C.

 

 

 

 

K. HOVNANIAN AT SAYREVILLE, L.L.C.

 

 

 

 

K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.

 

 

 

 

K. HOVNANIAN AT SMITHVILLE III, L.L.C.

 

 

 

 

K. HOVNANIAN AT SOMERS POINT, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.

 

 

 

 

K. HOVNANIAN AT SPARTA, L.L.C.

 

 

 

 

K. HOVNANIAN AT SPRINGCO, L.L.C.

 

 

 

 

K. HOVNANIAN AT SPRINGFIELD, L.L.C.

 

 

 

 

K. HOVNANIAN AT TEANECK, L.L.C.

 

 

 

 

K. HOVNANIAN AT THE MONARCH, L.L.C.

 

 

 

 

K. HOVNANIAN AT TRENTON, L.L.C.

 

 

 

 

K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C.

 

 

 

 

K. HOVNANIAN AT UNION TOWNSHIP II, L.L.C.

 

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II, L.L.C.

 

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

 

 

 

 

K. HOVNANIAN AT VINELAND, L.L.C.

 

 

 

 

K. HOVNANIAN AT WANAQUE, L.L.C.

 

 

 

 

K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C.

 

 

 

 

K. HOVNANIAN AT WASHINGTON, L.L.C.

 

 

 

 

K. HOVNANIAN AT WAYNE IX, L.L.C.

 

 

 

 

K. HOVNANIAN AT WAYNE VIII, L.L.C.

 

 

 

 

K. HOVNANIAN AT WEST MILFORD, L.L.C.

 

 

 

 

K. HOVNANIAN AT WEST WINDSOR, L.L.C.

 

 

 

 

K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C.

 

 

 

 

K. HOVNANIAN AT WOODHILL ESTATES, L.L.C.

 

 

 

 

K. HOVNANIAN AT WOOLWICH I, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

 

 

 

 

K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

 

 

 

 

K. HOVNANIAN CLASSICS, L.L.C.

 

 

 

 

K. HOVNANIAN CLASSICS CIP, L.L.C.

 

 

 

 

K. HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

 

 

 

 

K. HOVNANIAN HOMES – DFW, L.L.C.

 

 

 

 

K. HOVNANIAN HOMES OF HOUSTON, L.L.C.

 

 

 

 

K. HOVNANIAN OF HOUSTON II, L.L.C.

 

 

 

 

K. HOVNANIAN INVESTMENTS II, L.L.C.

 

 

 

 

K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C.

 

 

 

 

K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

K. HOVNANIAN NORTHEAST SERVICES, L.L.C.

 

 

 

K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN SOUTHERN NEW JERSEY, L.LC.

 

 

 

K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN T&C INVESTMENT, L.L.C.

 

 

 

K. HOVNANIAN VENTURE I, L.L.C.

 

 

 

K. HOVNANIAN’S PRIVATE HOME PORTFOLIO, L.L.C.

 

 

 

TERRAPIN REALTY, L.L.C.

 

 

 

KHIP, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

F&W MECHANICAL SERVICES, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the managing member of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

HUDSON POINTE JOINT DEVELOPMENT, L.L.C.

 

 

 

 

 

 

 

By:

K. Hovnanian Hudson Pointe Investments, L.L.C., its sole member

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT HUDSON POINTE, L.L.C.

 

 

 

 

 

 

 

By:

Hudson Pointe Joint Development, L.L.C., its sole member

 

 

 

 

 

 

 

 

By:

K. Hovnanian Hudson Pointe Investments, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

PARK TITLE COMPANY, L.L.C.

 

 

 

 

 

 

 

By:

K. Hovnanian of Houston II, L.L.C., its sole member

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

PI INVESTMENTS II, L.L.C.

 

 

 

 

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.

 

 

 

 

By:

PI Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF CALIFORNIA, L.L.C.

 

 

 

K. HOVNANIAN AT 3 CHAPMAN, L.L.C.

 

 

 

K. HOVNANIAN AT 4S, L.L.C.

 

 

 

K. HOVNANIAN AT ACQUA VISTA, L.L.C.

 

 

 

K. HOVNANIAN AT ALISO, L.L.C.

 

 

 

K. HOVNANIAN AT ARBOR HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT AVENUE ONE, L.L.C.

 

 

 

K. HOVNANIAN AT BELLA LAGO, L.L.C.

 

 

 

K. HOVNANIAN AT BRIDLEWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT CAPISTRANO, L.L.C.

 

 

 

K. HOVNANIAN AT CARMEL VILLAGE, L.L.C.

 

 

 

K. HOVNANIAN AT CIELO, L.L.C.

 

 

 

K. HOVNANIAN AT COASTLINE, L.L.C.

 

 

 

K. HOVNANIAN AT CORTEZ HILL, L.L.C.

 

 

 

K. HOVNANIAN AT EASTLAKE, L.L.C.

 

 

 

K. HOVNANIAN AT ENCINITAS RANCH, L.L.C.

 

 

 

K. HOVNANIAN AT EVERGREEN, L.L.C.

 

 

 

K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

 

 

 

K. HOVNANIAN AT HIGHWATER, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA GREENS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT LA HABRA KNOLLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE HILLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE RANCHO VIEJO, L.L.C.

 

 

 

K. HOVNANIAN AT MATSU, L.L.C.

 

 

 

K. HOVNANIAN AT MENIFEE, L.L.C.

 

 

 

K. HOVNANIAN AT MOCKINGBIRD CANYON, L.L.C.

 

 

 

K. HOVNANIAN AT MOSAIC, L.L.C.

 

 

 

K. HOVNANIAN AT OLDE ORCHARD, L.L.C.

 

 

 

K. HOVNANIAN AT ORANGE HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.

 

 

 

K. HOVNANIAN AT PARK LANE, L.L.C.

 

 

 

K. HOVNANIAN AT PIAZZA D’ORO, L.L.C.

 

 

 

K. HOVNANIAN AT PRADO, L.L.C.

 

 

 

K. HOVNANIAN AT RANCHO SANTA MARGARITA, L.L.C.

 

 

 

K. HOVNANIAN AT RIVERBEND, L.L.C.

 

 

 

K. HOVNANIAN AT ROSEMARY LATANA, L.L.C.

 

 

 

K. HOVNANIAN AT ROWLAND HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT SAGE, L.L.C.

 

 

 

K. HOVNANIAN AT SKYE ISLE, L.L.C.

 

 

 

K. HOVNANIAN AT SUNSETS, L.L.C.

 

 

 

K. HOVNANIAN AT THE CROSBY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT THE GABLES, L.L.C.

 

 

 

 

K. HOVNANIAN AT THE PRESERVE, L.L.C.

 

 

 

 

K. HOVNANIAN AT THOMPSON RANCH, L.L.C.

 

 

 

 

K. HOVNANIAN AT TRAIL RIDGE, L.L.C.

 

 

 

 

K. HOVNANIAN AT WINCHESTER, L.L.C.

 

 

 

 

K. HOVNANIAN INTERNATIONAL, L.L.C.

 

 

 

 

K. HOVNANIAN T&C MANAGEMENT CO., L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HEMET, L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT MENIFEE VALLEY, L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, L.L.C.

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS, L.L.C.

 

 

 

 

K. HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C.

 

 

 

 

NATOMAS CENTRAL NEIGHBORHOOD HOUSING, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOLDINGS NJ, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

BUILDER SERVICES, PA, L.L.C.

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT ALLENBERRY, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT ALLENTOWN, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT BROAD AND WALNUT, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT CAMPHILL, L.L.C.

 

 

 

 

 

K HOVNANIAN AT EAST BRANDYWINE, L.L.C.

 

 

 

 

 

K HOVNANIAN AT FORKS TWP. I, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MORELAND I, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT LOWER MORELAND III, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT MACUNGIE, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT NORTHAMPTON, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PHILADELPHIA II, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PHILADELPHIA III, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT PHILADELPHIA IV, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT RAPHO, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT SILVER SPRING, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.

 

 

 

 

 

K. HOVNANIAN AT WEST BRADFORD, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.

 

 

 

 

 

K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

 

 

 

 

 

K. HOVNANIAN FIRST HOMES, L.L.C.

 

 

 

 

 

K. HOVNANIAN FLORIDA REALTY, L.L.C.

 

 

 

 

 

K. HOVNANIAN STANDING ENTITY, L.L.C.

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C.

 

 

 

 

 

K. HOVNANIAN WINDWARD HOMES, L.L.C.

 

 

 

 

 

By:

Hovnanian Developments of Florida, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN COMPANIES, LLC

 

 

 

 

 

By:

K. Hovnanian Enterprises, Inc., as member of the foregoing limited liability
company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian at Perkiomen II, Inc., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

K. HOVNANIAN FOUR SEASONS AT GOLD HILL, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of South Carolina, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, L.L.C.

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN HOMES, L.L.C.

 

 

 

 

 

NEW LAND TITLE AGENCY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Arizona, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

 

 

 

 

K. HOVNANIAN AT RIDGESTONE, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF MINNESOTA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C.

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT MINNESOTA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Minnesota, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN OHIO REALTY, L.L.C.

 

 

 

 

 

K. HOVNANIAN OSTER HOMES, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

MILLENNIUM TITLE AGENCY, LTD.

 

 

 

 

 

By:

K. Hovnanian Oster Homes, L.L.C., its sole member

 

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HUNTFIELD, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of West Virginia, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF MICHIGAN, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF MICHIGAN, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Michigan, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M&M AT CHESTERFIELD, L.L.C.

 

 

 

 

 

M&M AT APPLE RIDGE, L.L.C.

 

 

 

 

 

M&M AT EAST MILL, L.L.C.

 

 

 

 

 

M&M AT MORRISTOWN, L.L.C.

 

 

 

 

 

M&M AT SHERIDAN, L.L.C.

 

 

 

 

 

M&M AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

M&M AT SPRUCE HOLLOW, L.L.C.

 

 

 

 

 

M&M AT SPRUCE RUN, L.L.C.

 

 

 

 

 

M&M AT THE HIGHLANDS, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT EGG HARBOR, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT MONTGOMERY, L.L.C.

 

 

 

 

 

THE LANDINGS AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

By:

The Matzel & Mumford Organization, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M & M AT COPPER BEECH, L.L.C.

 

 

 

 

 

M & M AT CRESCENT COURT, L.L.C.

 

 

 

 

 

M&M AT EAST RUTHERFORD, L.L.C.

 

 

 

 

 

M&M AT KENSINGTON WOODS, L.L.C.

 

 

 

 

 

M & M AT STATION SQUARE, L.L.C.

 

 

 

 

 

M & M AT UNION, L.L.C.

 

 

 

 

 

M&M AT TAMARACK HOLLOW, L.L.C.

 

 

 

 

 

M&M AT THE CHATEAU, L.LC.

 

 

 

 

 

M&M AT WEST ORANGE, L.L.C.

 

 

 

 

 

M&M AT WESTPORT, L.L.C.

 

 

 

 

 

M&M AT WHEATENA URBAN RENEWAL, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C.

 

 

 

 

 

MMIP, L.L.C.

 

 

 

 

 

By:

M&M Investments, L.P., as the sole member of each of the foregoing limited
liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 2, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT MAXWELL PLACE. L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT PRIMERA, L.L.C.

 

 

 

 

 

PADDOCKS, L.L.C.

 

 

 

 

 

PINE AYR, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes of Maryland, L.L.C., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF TEXAS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes - DFW, L.L.C., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT NEW WINDSOR, L.L.C.

 

 

 

BUILDER SERVICES NY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HAMPTONBURGH, L.L.C.

 

 

 

By:

K. Hovnanian at Northern Westchester, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN DELAWARE ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

 

 

 

K. HOVNANIAN HOMES AT NASSAU GROVE, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Delaware, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT MENIFEE VALLEY CONDOMINIUMS, L.L.C.

 

 

 

By:

K. Hovnanian’s Four Seasons At Menifee Valley, L.L.C.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NORTH CAROLINA, L.L.C.

 

 

 

By:

K. Hovnanian Developments of North Carolina, Inc., as the sole member of the
foregoing limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAILEY’S GLENN, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT OLDE LIBERTY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C.

 

 

 

By:

K. Hovnanian Homes of North Carolina, Inc. as the sole member of the foregoing
limited liability companies

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN HOMES OF INDIANA, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Indiana, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C.

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF KENTUCKY, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Kentucky, Inc., as the sole member of the foregoing
limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN CONNECTICUT ACQUISITIONS, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Connecticut, Inc., as the sole member of the
foregoing limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Illinois, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF GEORGIA, L.L.C

 

 

 

K. HOVNANIAN HOMES OF GEORGIA, L.L.C.

 

 

 

By:

K. Hovnanian Developments of Georgia, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

WESTMINSTER HOMES OF ALABAMA, L.L.C.

 

 

 

WESTMINSTER HOMES OF MISSISSIPPI, L.L.C.

 

 

 

By:

Washington Homes, Inc., as sole member of each of the foregoing limited
liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN AT EWING, L.L.C.

 

 

 

 

By:

K. Hovnanian at Lakewood, Inc., as sole member of the foregoing limited
liability company

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN POLAND, SP. Z.O.O.

 

 

 

By:

Hovnanian Enterprises, Inc., as member.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

 

                    AND

 

 

 

 

 

By:

K. Hovnanian International, Inc., as member.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M&M INVESTMENTS, L.P.

 

 

 

By:

The Matzel & Mumford Organization, Inc., as general partner of the foregoing
limited partnership.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

Address for Notices for each of the foregoing Pledgors:

 

 

 

c/o K. Hovnanian Enterprises, Inc.

 

110 West Front St., P.O. Box 500

 

Red Bank, NJ 07701

 

Attention: Kevin C. Hake

 

Telephone: (732) 747-7800

 

Telecopy: (732) 747-6835

--------------------------------------------------------------------------------

SCHEDULE A
TO
PLEDGE AGREEMENT

 

 

 

 

 

 

 

 

 

Entity Name:

 

State of
Formation:

 

Members:

 

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

LLC

 

K. HOVNANIAN AT BRIDGEWATER I, L.L.C

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT CEDAR GROVE IV, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT CHESTER I, L.L.C.

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT CHESTERFIELD, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT EDGEWATER, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT FLORENCE I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT FLORENCE II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT GREAT NOTCH, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT GUTTENBERG, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT HAWTHORNE, L.L.C

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT LONG BRANCH I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT LOWER MORELAND I, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT MANALAPAN III, LLC

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

SCHEDULE A - 1

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

LLC

 

K. HOVNANIAN AT MANSFIELD I, LLC

 

DE

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MILLVILLE I, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MILLVILLE II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MONROE III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT MONTVALE, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT NORTH BERGEN, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT NORTH CALDWELL, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT PITTSGROVE, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT READINGTON II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT RED BANK, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT SMITHVILLE III, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT SOMERS POINT, LLC

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT TEANECK, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

 

FL

 

Hovnanian Developments of Florida, Inc.

LLC

 

K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.

 

PA

 

K. Hovnanian at Perkiomen II, Inc.

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

LLC

 

K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC

 

AZ

 

K. Hovnanian Developments of Arizona, Inc.

LLC

 

K. HOVNANIAN GREAT WESTERN HOMES, L.L.C.

 

AZ

 

K. Hovnanian Developments of Arizona, Inc.

LLC

 

K. HOVNANIAN HOLDINGS NJ, LLC

 

NJ

 

K. Hovnanian Developments of New Jersey, Inc.

LLC

 

K. HOVNANIAN NORTHEAST SERVICES, L.L.C.

 

NJ

 

K. Hovnanian Holdings NJ, L.L.C.

LLC

 

K. HOVNANIAN OHIO REALTY, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

LLC

 

K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C.

 

PA

 

K. Hovnanian Companies of Pennsylvania, Inc.

LLC

 

K. HOVNANIAN SUMMIT HOMES OF MICHIGAN, L.L.C

 

MI

 

K. Hovnanian Developments of Michigan, Inc.

LLC

 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

 

WV

 

K. Hovnanian Developments of West Virginia, Inc.

LLC

 

K. HOVNANIAN SUMMIT HOMES, L.L.C.

 

OH

 

K. Hovnanian Developments of Ohio, Inc.

LLC

 

K. HOVNANIAN T&C HOMES AT MINNESOTA, L.L.C.

 

MN

 

K. Hovnanian Developments of Minnesota, Inc.

LLC

 

M&M AT CHESTERFIELD, LLC

 

NJ

 

The Matzel & Mumford Organization, Inc.

LLC

 

M&M AT TAMARACK HOLLOW, L.L.C.

 

NJ

 

M&M Investments, L.P.

--------------------------------------------------------------------------------

SCHEDULE B
Actions to Perfect

 

 

1.

With respect to each Pledgor organized under the laws of the state of Alabama as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Alabama Secretary of State.

 

 

2.

With respect to each Pledgor organized under the laws of the state of Arizona as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Arizona Secretary of State.

 

 

3.

With respect to each Pledgor organized under the laws of the state of California
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the California Secretary of State.

 

 

4.

With respect to each Pledgor organized under the laws of the state of
Connecticut as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral the Connecticut Secretary of State.

 

 

5.

With respect to each Pledgor organized under the laws of the state of Delaware
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Delaware Secretary of State.

 

 

6.

With respect to each Pledgor organized under the laws of the District of
Columbia as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the District of Columbia Recorder of Deeds.

 

 

7.

With respect to each Pledgor organized under the laws of the state of Florida as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Florida Secured Transaction Registry.

 

 

8.

With respect to each Pledgor organized under the laws of the state of Georgia as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Office of the Clerk of Superior Court of any County of
Georgia.

 

 

9.

With respect to each Pledgor organized under the laws of the state of Illinois
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Illinois Secretary of State.

 

 

10.

With respect to each Pledgor organized under the laws of the state of Indiana as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Indiana Secretary of State.

 

 

11.

With respect to each Pledgor organized under the laws of the state of Kentucky
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Kentucky Secretary of State.

--------------------------------------------------------------------------------

 

 

12.

With respect to each Pledgor organized under the laws of the state of Maryland
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Maryland State Department of Assessments and
Taxation.

 

 

13.

With respect to each Pledgor organized under the laws of the state of Michigan
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Michigan Secretary of State.

 

 

14.

With respect to each Pledgor organized under the laws of the state of Minnesota
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Minnesota Secretary of State.

 

 

15.

With respect to each Pledgor organized under the laws of the state of
Mississippi as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Mississippi Secretary of State.

 

 

16.

With respect to each Pledgor organized under the laws of the state of New Jersey
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the New Jersey Division of Commercial Recording.

 

 

17.

With respect to each Pledgor organized under the laws of the state of New York
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the New York Secretary of State.

 

 

18.

With respect to each Pledgor organized under the laws of the state of North
Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the North Carolina Secretary of State.

 

 

19.

With respect to each Pledgor organized under the laws of the state of Ohio as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Ohio Secretary of State.

 

 

20.

With respect to each Pledgor organized under the laws of the state of
Pennsylvania as identified on Schedule 1.1(C) of the Credit Agreement, the
filing of a Uniform Commercial Code Financing Statement that reasonably
identifies the Pledged Collateral with the Pennsylvania Secretary of the
Commonwealth.

 

 

21.

With respect to each Pledgor organized under the laws of the state of South
Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the South Carolina Secretary of State.

 

 

22.

With respect to each Pledgor organized under the laws of the state of Tennessee
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Tennessee Secretary of State.

 

 

23.

With respect to each Pledgor organized under the laws of the state of Texas as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Pledged
Collateral with the Texas Secretary of State.

--------------------------------------------------------------------------------

 

 

24.

With respect to each Pledgor organized under the laws of the state of Virginia
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the Virginia State Corporation Commission.

 

 

25.

With respect to each Pledgor organized under the laws of the state of West
Virginia as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Pledged Collateral with the West Virginia Secretary of State.

With respect to the Pledged Collateral constituting certificated securities,
delivery of the
certificates representing such Pledged Collateral to the Administrative Agent in
registered form,
indorsed in blank, by an effective indorsement or accompanied by undated stock

--------------------------------------------------------------------------------

EXHIBIT 1.1 (R)
FORM OF
AMENDED AND RESTATED REVOLVING CREDIT NOTE

 

 

 

East Brunswick, New Jersey

$__________

March 7, 2008

          FOR VALUE RECEIVED, the undersigned, K. HOVNANIAN ENTERPRISES, INC., a
California corporation (herein called the “Borrower”), hereby promises to pay to
the order of ___________________________ (the “Lender”) the lesser of (i) the
principal sum of ___________________________ U.S. Dollars
(U.S. $________________), and (ii) the aggregate unpaid principal balance of all
Revolving Credit Loans made by the Lender to the Borrower pursuant to Section
2.1 of the Seventh Amended and Restated Credit Agreement dated as of March 7,
2008 among the Borrower, Hovnanian Enterprises, Inc., as a Guarantor, the other
Lenders now or hereafter party thereto, PNC Bank, National Association, as
administrative agent for the Lenders (the “Agent”) and the Lender (as amended,
restated, supplemented or modified from time to time, the “Credit Agreement”),
payable on the Expiration Date.

          The Borrower shall pay interest on the unpaid principal balance hereof
from time to time outstanding from the date hereof at the rate or rates per
annum specified by the Borrower pursuant to Section 3.1 of, or as otherwise
provided in, the Credit Agreement.

          To the extent permitted by Law, upon the occurrence of an Event of
Default under Sections 8.1.1, 8.1.10, 8.1.13 and/or 8.1.14 of the Credit
Agreement, or the Obligations are accelerated under the Credit Agreement, and
until such time such Event of Default shall have been cured or waived, the
Borrower shall pay interest on all past due principal and all past due accrued
interest thereon and fees and expenses and each other past due Obligation at a
rate per annum equal to the sum of the rate of interest applicable under the
Base Rate Option plus an additional three hundred basis points (3.0% per annum)
from the time such Obligation becomes due and payable and until it is paid in
full (the “Default Rate”).

          Interest on this Revolving Credit Note will be payable as provided in
the Credit Agreement.

          If any payment or action to be made or taken hereunder shall be stated
to be or become due on a day which is not a Business Day, such payment or action
shall be made or taken on the next following Business Day (or the prior Business
Day in respect of certain Revolving Credit Loans to which the LIBOR Rate Option
applies) and such extension of time shall be included in computing interest or
fees, if any, in connection with such payment or action.

          Subject to the provisions of the Credit Agreement, payments of both
principal and interest shall be made without setoff, counterclaim or other
deduction of any nature at the Principal Office of the Agent, in lawful money of
the United States of America in immediately available funds.

          This Note is one of the Revolving Credit Notes referred to in, and is
entitled to the benefits of, the Credit Agreement and the other Loan Documents,
including the representations, warranties, covenants, conditions, security
interests or liens contained or granted therein. The Credit Agreement among
other things contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayment, in certain
circumstances, on account of principal hereof prior to maturity upon the terms
and conditions therein specified.

--------------------------------------------------------------------------------

          All capitalized terms used herein shall, unless otherwise defined
herein, have the same meanings given to such terms in the Credit Agreement.

          Except as otherwise provided in the Credit Agreement, the Borrower
waives presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement of
this Note and the Credit Agreement.

          This Note shall bind the Borrower and its successors and assigns, and
the benefits hereof shall inure to the benefit of the Lender, the Agent and
their respective successors and assigns. All references herein to the
“Borrower”, the “Lender” and the “Agent” shall be deemed to apply to the
Borrower, the Lender and the Agent, respectively, and their respective
successors and assigns.

          This Note replaces and supersedes the Amended and Restated Revolving
Credit Note dated May 31, 2006, in the principal amount of $______________, (the
“Prior Note”). To the extent that the principal balance of this Note includes
the Borrower’s indebtedness hitherto evidenced by the Prior Note, this Note (i)
merely re-evidences the indebtedness hitherto evidenced by the Prior Note, (ii)
is given as substitution for, and not as payment of, the Prior Note, and (iii)
is in no way intended to constitute a novation of the Prior Note. The Borrower
hereby agrees that this Note shall in all respects take the place of and include
the principal amount of the Prior Note.

          This Note and any other documents delivered in connection herewith and
the rights and obligations of the parties hereto and thereto shall be governed
by, and construed and interpreted in accordance, with the law of the State of
New York.

--------------------------------------------------------------------------------

[SIGNATURE PAGE 1 OF 1 TO REVOLVING CREDIT NOTE]

          IN WITNESS WHEREOF, the undersigned has executed this Note by its duly
authorized officers.

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

Kevin C. Hake

 

Title:

Senior Vice President and Treasurer

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT 1.1(S)(1)
FORM OF

SECURITY AGREEMENT

made by

K. HOVNANIAN ENTERPRISES, INC.,
HOVNANIAN ENTERPRISES, INC.

and certain of their respective Subsidiaries

in favor of

PNC BANK, NATIONAL ASSOCIATION,

as Administrative Agent

Dated as of March 7, 2008

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

 

 

Page

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

SECTION 1. DEFINED TERMS

 

1

 

1.1

 

Definitions

 

1

 

1.2

 

Other Definitional Provisions

 

3

 

 

 

 

 

 

SECTION 2. GRANT OF SECURITY INTEREST

 

3

 

 

 

SECTION 3. REPRESENTATIONS AND WARRANTIES

 

4

 

3.1

 

Title: No Other Liens

 

4

 

3.2

 

Perfected First Priority Liens

 

4

 

3.3

 

Jurisdiction of Organization; Chief Executive Office

 

4

 

 

 

 

 

 

SECTION 4. COVENANTS

 

4

 

4.1

 

Maintenance of Perfected Security Interest; Further Documentation

 

5

 

4.2

 

Changes in Name, etc

 

5

 

 

 

 

 

 

SECTION 5. INVESTING AMOUNTS IN THE SECURITIES ACCOUNTS

 

5

 

5.1

 

Investments

 

5

 

5.2

 

Liability

 

5

 

 

 

 

 

 

SECTION 6. REMEDIAL PROVISIONS

 

5

 

6.1

 

Certain Matters Relating to Receivables

 

5

 

6.2

 

Communications with Obligors: Grantors Remain Liable

 

6

 

6.3

 

Proceeds to be Turned Over To Agent

 

7

 

6.4

 

Application of Proceeds

 

7

 

6.5

 

Code and Other Remedies

 

7

 

6.6

 

Subordination

 

8

 

6.7

 

Deficiency

 

8

 

 

 

 

 

 

SECTION 7. THE AGENT

 

8

 

7.1

 

Agent’s Appointment as Attorney-in-Fact. etc

 

8

 

7.2

 

Duty of Agent

 

9

 

7.3

 

Execution of Financing Statements

 

9

 

7.4

 

Authority of Agent

 

9

 

 

 

 

 

 

SECTION 8. MISCELLANEOUS

 

10

 

8.1

 

Amendments in Writing

 

10

 

8.2

 

Notices

 

10

 

8.3

 

No Waiver by Course of Conduct; Cumulative Remedies

 

10

 

8.4

 

Enforcement Expenses; Indemnification

 

10

 

8.5

 

Successors and Assigns

 

11

 

8.6

 

Counterparts

 

11

 

8.7

 

Severability

 

11

 

8.8

 

Section Headings

 

11

i

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

8.9

 

Integration

 

11

 

8.10

 

GOVERNING LAW

 

11

 

8.11

 

Submission To Jurisdiction; Waivers

 

11

 

8.12

 

Acknowledgements

 

12

 

8.13

 

Additional Grantors

 

12

 

8.14

 

Releases

 

12

 

8.15

 

Automatic Release of Related Collateral

 

13

 

8.16

 

WAIVER OF JURY TRIAL

 

13

 

 

 

 

 

 

Schedule A - Deposit Accounts

 

 

Schedule B - Securities Accounts

 

 

Schedule C - Actions Required to Perfect

 

 

ii

--------------------------------------------------------------------------------

SECURITY AGREEMENT

                    THIS SECURITY AGREEMENT, dated as of March 7, 2008, made by
each of the signatories hereto (together with any other entity that may become a
party hereto as provided herein, the “Grantors”), in favor of PNC Bank, National
Association, as Administrative Agent (in such capacity, the “Agent”) for the
banks and other financial institutions or entities (the “Lenders”) from time to
time parties to the Seventh Amended and Restated Credit Agreement, dated as of
even date herewith (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among K. Hovnanian Enterprises,
Inc., a California corporation (the “Borrower”), Hovnanian Enterprises, Inc., a
Delaware corporation (“Hovnanian” and a Guarantor (as defined below)), the
Lenders and the Agent.

W I T N E S S E T H:

                    WHEREAS, pursuant to the Credit Agreement, the Lenders have
severally agreed to make extensions of credit to the Borrower upon the terms and
subject to the conditions set forth therein;

                    WHEREAS, the Borrower is a member of an affiliated group of
companies that includes Hovnanian, the Borrower’s parent company, and each other
Grantor;

                    WHEREAS, the proceeds of the extensions of credit under the
Credit Agreement will be used in part to enable the Borrower to make valuable
transfers to one or more of the other Grantors in connection with the operation
of their respective businesses;

                    WHEREAS, the Borrower and the other Grantors are engaged in
related businesses, and each Grantor will derive substantial direct and indirect
benefit from the making of the extensions of credit under the Credit Agreement;

                    WHEREAS, pursuant to and under the Credit Agreement, the
Borrower and the other Grantors have agreed to enter into this Agreement in
order to grant a valid, binding, enforceable and perfected security interest in,
and Lien on, certain of its assets, for the ratable benefit of the Secured
Parties; and

                    WHEREAS, pursuant to Section 6.1.11 of the Credit Agreement,
it is required that the Grantors shall, have executed and delivered this
Agreement to the Agent for the ratable benefit of the Secured Parties;

                    NOW, THEREFORE, in consideration of the premises and to
induce the Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Borrower
under the Credit Agreement, each Grantor hereby agrees with the Agent, for the
ratable benefit of the Secured Parties, as follows:

98. DEFINED TERMS

          98.1 Definitions.

                    98.1.1 Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement, and the following terms are used herein as defined in the New
York UCC: Accounts, Chattel Paper, Deposit Account, General Intangibles, Payment
Intangibles, Instruments, Inventory, and Supporting Obligations.

                    98.1.2 The following terms shall have the following
meanings:

--------------------------------------------------------------------------------

                    “Agreement”: this Security Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

                    “Cash Collateral”: the collective reference to:

                    (a) all cash, instruments, securities and funds deposited
from time to time in the Deposit Account or the Securities Account;

                    (b) all investments of funds in the Securities Account and
all instruments and securities evidencing such investments; and

                    (c) all interest, dividends, cash, instruments, securities
and other property received in respect of, or as proceeds of, or in substitution
or exchange for, any of the foregoing.

                    “Collateral”: as defined in Section 2.

                    “Contracts”: any contracts and agreements for the purchase,
acquisition or sale of real or personal property, any contract rights relating
thereto, and all other rights to such contract or agreements and any right to
payment for items sold or leased or for services rendered, in any case relating
to the sale of real or personal property or construction, acquisition, purchase
or sale of improvements on real estate.

                    “Collateral Account”: any collateral account established by
the Agent as provided in Section 6.1 or 6.3.

                    “Cash Equivalents”: (i) cash, marketable direct obligations
of the United States of America or any agency thereof, and certificates of
deposit, demand deposits, time deposits, or repurchase agreements issued by any
Lender or any bank with a capital and surplus of at least $25,000,000 organized
under the laws of the United States of America or any state thereof, state or
municipal securities with a rating of A-1 or better by Standard & Poor’s or by
Moody’s or F-1 by Fitch, provided that such obligations, certificates of
deposit, demand deposits, time deposits, and repurchase agreements have a
maturity of less than one year from the date of purchase, and (ii) investment
grade commercial paper or debt or commercial paper issued by a Lender or a bank
holding company of a Lender having a maturity date of one year or less from the
date of purchase, and (iii) funds holding assets primarily consisting of those
described in clause (i) and (ii).

                    “Deposit Account”: the collective reference to each Deposit
Account (as such term is defined in Section 1(a) hereof) as set forth on
Schedule A attached hereto (as such schedule may be supplemented from time to
time by the Borrower or otherwise modified in connection with a release
permitted by Section 7.2.10(h) of the Credit Agreement) in the name of the
applicable Grantor and any additional, substitute or successor Deposit Account
that is identified in writing as an additional, substitute or successor account.

                    “Guarantors”: the collective reference to each Grantor other
than the Borrower.

                    “Investment Property”: the collective reference to all
“investment property” as such term is defined in Section 9-102(a)(49) of the New
York UCC.

                    “New York UCC”: the Uniform Commercial Code as from time to
time in effect in the State of New York.

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                    “Proceeds”: all “proceeds” as such term is defined in
Section 9-102(a)(64) of the New York UCC and, in any event, shall include,
without limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

                    “Receivable”: any right to payment for real or personal
property sold or leased or for services rendered, whether or not such right is
evidenced by a Contract, an Instrument or Chattel Paper and whether or not it
has been earned by performance (including, without limitation, any Account).

                    “Secured Obligations”: the following: (i) all now existing
and hereafter arising Obligations (as defined in the Credit Agreement) of each
and every Grantor and other Loan Party to the Agent, the Lenders, or any of
their respective Affiliates under the Credit Agreement or any of the other Loan
Documents, together with any extensions, renewals, replacements or refundings
thereof, and all costs and expenses of enforcement and collection, including
reasonable attorney’s fees).

                    “Secured Parties”: the collective reference to the Agent and
the Lenders to which any Secured Obligations are owed.

                    “Securities Account”: the collective reference to the
securities accounts as set forth on Schedule B attached hereto (as such schedule
may be supplemented from time to time by the Borrower or otherwise modified in
connection with a release permitted by Section 7.2.10(h) of the Credit
Agreement), in the name of the applicable Grantor and any additional, substitute
or successor account that is identified in writing as an additional, substitute
or successor account

          98.2 Other Definitional Provisions.

                    98.2.1 The words “hereof,” “herein”, “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

                    98.2.2 The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                    98.2.3 Where the context requires, terms relating to the
Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor’s Collateral or the relevant part thereof.

99. GRANT OF SECURITY INTEREST

                    Each Grantor hereby grants to the Agent, for the ratable
benefit of the Secured Parties, a security interest in, all of the following
property now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title
or interest (collectively, the “Collateral”), as collateral security for the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Secured Obligations:

                    99.1.1 all Accounts;

                    99.1.2 all Cash Collateral;

                    99.1.3 all Chattel Paper evidencing Accounts or Receivables;

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                    99.1.4 all Contracts;

                    99.1.5 the Securities Account;

                    99.1.6 the Deposit Account;

                    99.1.7 all Documents relating to the Receivables;

                    99.1.8 all General Intangibles, relating to the Contracts or
Receivables;

                    99.1.9 all Instruments evidencing Accounts or Receivables;

                    99.1.10 all Receivables;

                    99.1.11 all books and records pertaining to the Collateral;
and

                    99.1.12 to the extent not otherwise included, all Proceeds,
Supporting Obligations and products of any and all of the foregoing and all
collateral security and guarantees given by any Person with respect to any of
the foregoing.

100. REPRESENTATIONS AND WARRANTIES

                    To induce the Agent and the Lenders to enter into the Credit
Agreement and to induce the Lenders to continue existing, and to make their
respective new extensions of credit to the Borrower under the Credit Agreement,
each Grantor hereby represents and warrants to the Agent and each Lender that:

          100.1 Title: No Other Liens. Except for the security interest granted
to the Agent for the ratable benefit of the Secured Parties pursuant to this
Agreement: (i) such Grantor owns each item of the Cash Collateral, Deposit
Account and Securities Account free and clear of any and all Liens or claims of
others and (ii) such Grantor owns each other item of the Collateral free and
clear of any and all Liens or claims of others except with respect to the
Collateral referred to in this clause (ii), for the Permitted Liens permitted to
exist on the Collateral by the Credit Agreement.

          100.2 Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule C (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Agent in completed and
duly executed form) will constitute valid perfected (to the extent such security
interest can be perfected by such filings or actions) security interests in all
of the Collateral in favor of the Agent, for the ratable benefit of the Secured
Parties, as collateral security for the Secured Obligations, enforceable in
accordance with the terms hereof against all creditors of such Grantor and any
Persons purporting to purchase any Collateral from such Grantor and (b) are
prior to all other Liens on the Collateral in existence on the date hereof
except, in the case of Collateral other than the Cash Collateral, the Deposit
Account and the Securities Account, for Permitted Liens permitted by the Credit
Agreement.

          100.3 Jurisdiction of Organization; Chief Executive Office. On the
date hereof, such Grantor’s exact legal name, jurisdiction of organization,
identification number from the jurisdiction of organization (if any), and the
location of such Grantor’s chief executive office or sole place of business or
principal residence, as the case may be, are specified on Schedule 1.1(C) to the
Credit Agreement.

101. COVENANTS

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                    Each Grantor covenants and agrees with the Agent and the
Lenders that, from and after the date of this Agreement until the Expiration
Date and the indefeasible payment in full of all outstanding Secured Obligations
(or, with respect to outstanding Letters of Credit, cash collateralization or
other arrangements reasonably satisfactory to the Letter of Credit Lender
therefor and the Agent):

          101.1 Maintenance of Perfected Security Interest; Further
Documentation.

                    101.1.1 Such Grantor shall maintain the security interest
created by this Agreement as a perfected security interest to the extent
required by this Agreement having at least the priority described in Section 3.2
and shall defend such security interest against the claims and demands of all
Persons whomsoever other than, in the case of Collateral other than the Cash
Collateral, the Deposit Account and the Securities Account, any holder of
Permitted Liens permitted by the Credit Agreement, subject to the rights of such
Grantor under the Loan Documents to dispose of the Collateral.

                    101.1.2 At any time and from time to time, upon the written
reasonable request of the Agent, and at the sole expense of such Grantor, such
Grantor will promptly and duly execute and deliver, and have recorded, such
further instruments and documents and take such further actions as the Agent may
reasonably request for the purpose of obtaining, perfecting or preserving the
security interests purported to be granted under this Agreement and of the
rights and remedies herein granted, including, without limitation, (i) filing
any financing or continuation statements under the Uniform Commercial Code (or
other similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and (ii) in the case of the Deposit Account and the
Securities Account and any other relevant Collateral, taking any actions
necessary to enable the Agent to obtain “control” (within the meaning of the
applicable Uniform Commercial Code) with respect thereto.

          101.2 Changes in Name, etc. Such Grantor will, within thirty (30)
calendar days after any change its jurisdiction of organization or change its
name, provide written notice thereof to the Agent.

102. INVESTING AMOUNTS IN THE SECURITIES ACCOUNTS

          102.1 Investments. If requested by the Borrower, the Agent will, from
time to time, invest amounts on deposit in the Securities Account in Cash
Equivalents pursuant to the written instructions of the Borrower. All
investments shall be made in the name of the Agent or a nominee of the Agent and
in a manner that preserves the Borrower’s ownership of, and the Agent’s
perfected first priority Lien on, such investments. All income received from
such investments shall accrue for the benefit of the Borrower (subject to
application of Cash Collateral in accordance with the terms of this Agreement or
the Credit Agreement) and shall be credited (immediately upon receipt by the
Agent) to the Securities Account. The Agent will only make investments in which
it can obtain a first-priority, perfected security interest, and the Borrower
hereby agrees to execute promptly any documents which the Agent may reasonably
require the Borrower to execute any documents to implement or effectuate the
provisions of this Section.

          102.2 Liability. The Agent shall have no responsibility to the
Borrower for any loss or liability arising in respect of the investments of the
Cash Collateral (including, without limitation, as a result of the liquidation
of any thereof before maturity), except to the extent that such loss or
liability is found to be based on the Agent’s gross negligence or willful
misconduct as determined by a final and nonappealable decision of a court of
competent jurisdiction.

103. REMEDIAL PROVISIONS

         103.1 Certain Matters Relating to Receivables.

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                    103.1.1 At any time during the continuance of an Event of
Default, the Agent shall have the right to make test verifications of the
Receivables in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as
the Agent may require in connection with such test verifications. The Agent
shall endeavor to provide the Borrower with notice at or about the time of such
verifications, provided that the failure to provide such notice shall not in any
way compromise or adversely affect the exercise of such remedy or the Agent’s
rights hereunder.

                    103.1.2 Subject to Section 7.2.10 of the Credit Agreement,
the Agent hereby authorizes each Grantor to collect such Grantor’s Receivables
and the Agent may curtail or terminate said authority at any time after the
occurrence and during the continuance of an Event of Default. The Agent shall
endeavor to provide the Borrower with notice at or about the time of the
exercise of its rights pursuant to the preceding sentence, provided that the
failure to provide such notice shall not in any way compromise or adversely
affect the exercise of any rights or remedies hereunder. If requested in writing
by the Agent at any time after the occurrence and during the continuance of an
Event of Default, any payments of Receivables, when collected by any Grantor,
(i) shall be forthwith (and, in any event, within two Business Days) deposited
by such Grantor in the exact form received, duly indorsed by such Grantor to the
Agent if required, in a Collateral Account maintained under the sole dominion
and control of the Agent, subject to withdrawal by the Agent for the account of
the Lenders only as provided in Section 6.4, and (ii) until so turned over,
shall be held by such Grantor in trust for the Agent and the Lenders, segregated
from other funds of such Grantor.

                    103.1.3 At the Agent’s written request at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
deliver to the Agent all original and other documents evidencing, and relating
to, the agreements and transactions which gave rise to the Receivables that are
Collateral.

          103.2 Communications with Obligors: Grantors Remain Liable.

                    103.2.1 The Agent in its own name or in the name of others
may after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables that are Collateral to verify
with them to the Agent’s satisfaction the existence, amount and terms of any
Receivables. The Agent shall endeavor to provide the Borrower with notice at or
about the time of the exercise of its rights pursuant to the preceding sentence,
provided that the failure to provide such notice shall not in any way compromise
or adversely affect the exercise of any rights or remedies hereunder.

                    103.2.2 Upon the written request of the Agent at any time
after the occurrence and during the continuance of an Event of Default, each
Grantor shall notify obligors on the Receivables that are Collateral that the
Receivables have been assigned to the Agent for the ratable benefit of the
Secured Parties and that payments in respect thereof shall be made directly to
the Agent.

                    103.2.3 Anything herein to the contrary notwithstanding,
each Grantor shall remain liable under each of the Receivables that are
Collateral to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement giving rise thereto. Neither the Agent nor any Lender shall have any
obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the
Agent or any Lender of any payment relating thereto, nor shall the Agent or any
Lender be obligated in any manner to perform any of the obligations of any
Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any
action to enforce any performance or to collect the

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payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

          103.3 Proceeds to be Turned Over To Agent. In addition to the rights
of the Agent and the Lenders specified in Section 6.1 with respect to payments
of Receivables, if an Event of Default shall occur and be continuing, upon
written request from the Agent, all Proceeds received by any Grantor consisting
of cash, checks and other near-cash items shall be held by such Grantor in trust
for the Agent and the Lenders, segregated from other funds of such Grantor, and
shall, forthwith upon receipt by such Grantor, be turned over to the Agent in
the exact form received by such Grantor (duly indorsed by such Grantor to the
Agent, if requested). All Proceeds received by the Agent hereunder shall be held
by the Agent in a Collateral Account maintained under its sole dominion and
control. All such Proceeds while held by the Agent in a Collateral Account (or
by such Grantor in trust for the Agent and the Lenders) shall continue to be
held as collateral security for all the Secured Obligations and shall not
constitute payment thereof until applied as provided in Section 6.4.

          103.4 Application of Proceeds. At such intervals as may be agreed upon
by the Borrower and the Agent, or, if an Event of Default shall have occurred
and be continuing, at any time at the Agent’s election, the Agent may apply all
or any part of the Collateral, whether or not held in the Deposit Account, the
Securities Account or any other Collateral Account, in payment of the Secured
Obligations in the order set forth in Section 8.2.5 of the Credit Agreement.

          103.5 Code and Other Remedies. If an Event of Default shall occur and
be continuing, the Agent, on behalf of the Lenders, may exercise, in addition to
all other rights and remedies granted to them in this Agreement and in any other
instrument or agreement securing, evidencing or relating to the Secured
Obligations, all rights and remedies of a secured party under the New York UCC
or any other applicable law. Without limiting the generality of the foregoing,
the Agent, without prior demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any prior notice required
by law referred to below) to or upon any Grantor or any other Person (all and
each of which demands, defenses, advertisements and notices are hereby waived),
may in such circumstances forthwith collect, receive, appropriate and realize
upon the Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver
the Collateral or any part thereof (or contract to do any of the foregoing), in
one or more parcels at public or private sale or sales, at any exchange,
broker’s board or office of the Agent or any Lender or elsewhere upon such terms
and conditions as it may deem advisable and at such prices as it may deem best,
for cash or on credit or for future delivery without assumption of any credit
risk. The Agent shall endeavor to provide the Borrower with notice at or about
the time of the exercise of remedies in the proceeding sentence, provided that
the failure to provide such notice shall not in any way compromise or adversely
affect the exercise of such remedies or the Agent’s rights hereunder. The Agent
or any Lender shall have the right upon any such public sale or sales, and, to
the extent permitted by law, upon any such private sale or sales, to purchase
the whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and released.
Each Grantor further agrees, at the Agent’s request, to assemble the Collateral
and make it available to the Agent at places which the Agent shall reasonably
select, whether at such Grantor’s premises or elsewhere. The Agent shall apply
the net proceeds of any action taken by it pursuant to this Section 6.5, after
deducting all reasonable costs and expenses of every kind incurred in connection
therewith or incidental to the care or safekeeping of any of the Collateral or
in any way relating to the Collateral or the rights of the Agent and the Lenders
hereunder, including, without limitation, reasonable attorneys’ fees and
disbursements, to the payment in whole or in part of the Secured Obligations, in
such order as the Agent may elect, and only after such application and after the
payment by the Agent of any other amount required by any provision of law,
including, without limitation, Section 9-615(a)(3) of the New York UCC, need the
Agent account for the surplus, if any, to any Grantor. To the extent permitted
by applicable law, each Grantor waives all

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claims, damages and demands it may acquire against the Agent or any Lender
arising out of the exercise by them of any rights hereunder. If any prior notice
of a proposed sale or other disposition of Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least 10 days
before such sale or other disposition.

          103.6 Subordination. Each Grantor hereby agrees that, upon the
occurrence and during the continuance of an Event of Default, unless otherwise
agreed by the Agent, all Indebtedness owing to it by the Borrower or any
Subsidiary of the Borrower shall be fully subordinated to the indefeasible
payment in full in cash of the Secured Obligations.

          103.7 Deficiency. Each Grantor shall remain liable for any deficiency
if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay the Secured Obligations and the fees and disbursements of
any attorneys employed by the Agent or any Lender to collect such deficiency.

104. THE AGENT

          104.1 Agent’s Appointment as Attorney-in-Fact. etc.

                    104.1.1 Each Grantor hereby irrevocably constitutes and
appoints the Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Agent the power and right, on behalf of
such Grantor, without prior notice to or assent by such Grantor, to do any or
all of the following:

 

 

 

                    (i) in the name of such Grantor or its own name, or
otherwise, take possession of and indorse and collect any checks, drafts, notes,
acceptances or other instruments for the payment of moneys due under any
Receivable or with respect to any other Collateral and file any claim or take
any other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Agent for the purpose of collecting any and all such moneys
due under any Receivable or with respect to any other Collateral whenever
payable;

 

 

 

                    (ii) pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral, effect any repairs or any insurance called
for by the terms of this Agreement and pay all or any part of the premiums
therefor and the costs thereof;

 

 

 

                    (iii) execute, in connection with any sale provided for in
Section 6.5, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral; and

 

 

 

                    (iv) (1) direct any party liable for any payment under any
of the Collateral to make payment of any and all moneys due or to become due
thereunder directly to the Agent or as the Agent shall direct; (2) ask or demand
for, collect, and receive payment of and receipt for, any and all moneys, claims
and other amounts due or to become due at any time in respect of or arising out
of any Collateral; (3) sign and indorse any invoices, freight or express bills,
bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any
of the Collateral; (4) commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the
Collateral or any portion thereof and to enforce any other right in respect of
any Collateral;

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(5) defend any suit, action or proceeding brought against such Grantor with
respect to any Collateral; (6) settle, compromise or adjust any such suit,
action or proceeding and, in connection therewith, give such discharges or
releases as the Agent may deem appropriate; and (7) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the
Collateral as fully and completely as though the Agent were the absolute owner
thereof for all purposes, and do, at the Agent’s option and such Grantor’s
expense, at any time, or from time to time, all acts and things which the Agent
deems necessary to protect, preserve or realize upon the Collateral and the
Agent’s and the Lenders’ security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

                    The Agent shall endeavor to provide the Borrower with notice
at or about the time of the exercise of its rights in the preceding clause (a),
provided that the failure to provide such notice shall not in any way compromise
or adversely affect the exercise of any rights or remedies hereunder.

                    104.1.2 If any Grantor fails to perform or comply with any
of its agreements contained herein, the Agent, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

                    104.1.3 The expenses of the Agent incurred in connection
with actions undertaken as provided in this Section 7.1, together with, if past
due, interest thereon at a rate per annum equal to the Default Rate, from the
date when due to the Agent to the date reimbursed by the relevant Grantor, shall
be payable by such Grantor to the Agent upon not less than five (5) Business
Days notice.

                    104.1.4 Each Grantor hereby ratifies all that said attorneys
shall lawfully do or cause to be done by virtue hereof. All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security
interests created hereby are released.

          104.2 Duty of Agent. The Agent’s sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the New York UCC or otherwise, shall be to
deal with it in the same manner as the Agent deals with similar property for its
own account. Neither the Agent, any Lender nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Agent and the Lenders hereunder are solely to protect the
Agent’s and the Lenders’ interests in the Collateral and shall not impose any
duty upon the Agent or any Lender to exercise any such powers. The Agent and the
Lenders shall be accountable only for amounts that they actually receive as a
result of the exercise of such powers, and neither they nor any of their
officers, directors, employees or agents shall be responsible to any Grantor for
any act or failure to act hereunder, except for their own gross negligence or
willful misconduct.

          104.3 Execution of Financing Statements. Pursuant to any applicable
law, each Grantor authorizes the Agent to file or record financing statements
and other filing or recording documents or instruments with respect to the
Collateral without the signature of such Grantor in such form and in such
offices as the Agent determines appropriate to perfect the security interests of
the Agent under this Agreement.

          104.4 Authority of Agent. Each Grantor acknowledges that the rights
and responsibilities of the Agent under this Agreement with respect to any
action taken by the Agent or the exercise or non-exercise by the Agent of any
option, voting right, request, judgment or other right or remedy provided for
herein or

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resulting or arising out of this Agreement shall, as between the Agent and the
Lenders, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Agent and the Grantors, the Agent shall be conclusively presumed to be acting as
agent for the Lenders with full and valid authority so to act or refrain from
acting, and no Grantor shall be under any obligation, or entitlement, to make
any inquiry respecting such authority.

105. MISCELLANEOUS

          105.1 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 10.1 of the Credit Agreement.

          105.2 Notices. All notices, requests and demands to or upon the Agent
or any Grantor hereunder shall be effected in the manner provided for in Section
10.6 of the Credit Agreement; provided that any such notice, request or demand
to or upon any Grantor other than the Borrower shall be addressed to such
Grantor at its notice address set forth on Schedule 1.1(B) to the Credit
Agreement under the heading “Borrower” or “Guarantors,” as applicable.

          105.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the
Agent nor any Lender shall by any act (except by a written instrument pursuant
to Section 8.1), delay, indulgence, omission or otherwise be deemed to have
waived any right or remedy hereunder or to have acquiesced in any Potential
Default or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Agent or any Lender, any right, power or
privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
A waiver by the Agent or any Lender of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the Agent
or such Lender would otherwise have on any future occasion. The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any other rights or remedies provided by law.

          105.4 Enforcement Expenses; Indemnification.

                    105.4.1 Each Grantor agrees to pay or reimburse each Lender
and the Agent for all its costs and expenses incurred in enforcing or preserving
any rights under this Agreement and the other Loan Documents to which such
Grantor is a party, including, without limitation, the reasonable fees and
disbursements of counsel (including the allocated fees and expenses of in-house
counsel) to the Agent and the Lenders.

                    105.4.2 Each Grantor agrees to pay, and to save the Agent
and the Lenders harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other
taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by
this Agreement.

                    105.4.3 Each Grantor agrees to pay, and to save the Agent
and the Lenders harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the
Borrower would be required to do so pursuant to Sections 9.5 and 10.3 of the
Credit Agreement except those resulting from the Agent’s or any Lender’s willful
misconduct or gross negligence.

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                    105.4.4 The agreements in this Section 8.4 shall survive
repayment of the Secured Obligations and all other amounts payable under the
Credit Agreement and the other Loan Documents.

          105.5 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Agent and the Lenders and their successors and assigns; provided that except as
permitted by the Credit Agreement, no Grantor may assign, transfer or delegate
any of its rights or obligations under this Agreement without the prior written
consent of the Agent.

          105.6 Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

          105.7 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          105.8 Section Headings. The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

          105.9 Integration. This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Agent and the Lenders with respect
to the subject matter hereof and thereof, and there are no promises,
undertakings, representations or warranties by the Agent or any Lender relative
to subject matter hereof and thereof not expressly set forth or referred to
herein or in the other Loan Documents.

          105.10 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          105.11 Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:

                    105.11.1 submits for itself and its property in any legal
action or proceeding relating to this Agreement and the other Loan Documents to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

                    105.11.2 consents that any such action or proceeding may be
brought in such courts and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or that
such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

                    105.11.3 agrees that service of process in any such action
or proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of

--------------------------------------------------------------------------------

mail), postage prepaid, to such Grantor at its address referred to in Section
8.2 or at such other address of which the Agent shall have been notified
pursuant thereto;

                    105.11.4 agrees that nothing herein shall affect the right
to effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

                    105.11.5 waives, to the maximum extent not prohibited by
law, any right it may have to claim or recover in any legal action or proceeding
referred to in this Section any special, exemplary, punitive or consequential
damages.

          105.12 Acknowledgements. Each Grantor hereby acknowledges that:

                    105.12.1 it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents to which
it is a party;

                    105.12.2 neither the Agent nor any Lender has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between
the Grantors, on the one hand, and the Agent and Lenders, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

                    105.12.3 no joint venture is created hereby or by the other
Loan Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders or among the Grantors and the Lenders;

                    105.12.4 the Agent may at any time and from time to time
appoint a Collateral Agent to maintain any of the collateral, maintain books and
records regarding any Collateral, release Collateral, and assist in any aspect
arising in connection with the Collateral as Agent may desire; and the Agent may
appoint itself, and affiliate or a third party as the Collateral Agent, and all
reasonable costs of the Collateral Agent shall be borne by the Grantors.

          105.13 Additional Grantors. Each Restricted Subsidiary of Hovnanian
shall become a Grantor for all purposes of this Agreement upon execution and
delivery by such Subsidiary of a Guarantor Joinder and Assumption Agreement.

          105.14 Releases.

                    105.14.1 Upon the indefeasible payment in full of all
outstanding Secured Obligations (or, with respect to outstanding Letters of
Credit, cash collateralization or other arrangements reasonably satisfactory to
the Letter of Credit Lender therefor and the Agent), the Collateral (including
the Cash Collateral) shall be automatically released from the Liens created
hereby, and this Agreement and all obligations (other than those expressly
stated to survive such termination) of the Agent and each Grantor hereunder
shall automatically terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall
revert to the Grantors. At the request and sole expense of any Grantor following
any such termination, the Agent shall deliver to such Grantor any Collateral
held by the Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination.

                    105.14.2 If any of the Collateral shall be sold or otherwise
transferred pursuant to a transaction permitted by Section 7.2.10 of the Credit
Agreement, the Liens created hereby on such Collateral shall automatically
terminate. Upon indefeasible payment in full of all outstanding Secured
Obligations (or, with respect to outstanding Letters of Credit, cash
collateralization or other arrangements

--------------------------------------------------------------------------------

reasonably satisfactory to the Letter of Credit Lender therefor and the Agent),
or if any of the Collateral shall be requested to be released by any Grantor
pursuant to this Agreement and in accordance with the Credit Agreement, then the
Agent, at the request and sole expense of such Grantor, shall execute and
deliver to such Grantor all releases or other documents reasonably necessary or
desirable for the release of the Liens created hereby on such Collateral.

          105.15 Automatic Release of Related Collateral. At any time after the
initial execution and delivery of this Agreement to the Secured Parties,
Grantors and their respective Collateral may be released from this Agreement
pursuant to Section 2.11.1 [Release of Guarantors] and Section 2.11.5 [Automatic
Release of Related Collateral and Equity] of the Credit Agreement. No notice of
such release of any Grantor or such Grantor’s Collateral shall be required to be
given to any other Grantor and each Grantor hereby consents thereto.

          105.16 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

--------------------------------------------------------------------------------

                              IN WITNESS WHEREOF, each of the undersigned has
caused this Security Agreement to be duly executed and delivered as of the date
first above written.

 

 

 

 

 

Secured Party:

 

 

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION, as Agent

 

 

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Name:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

 

 

Debtors:

 

 

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Name:  Kevin C. Hake

 

 

Title: Senior Vice-President — Finance and Treasurer

--------------------------------------------------------------------------------

 

 

 

 

HOVNANIAN ENTERPRISES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name:

Kevin C. Hake

 

Title:

Senior Vice-President — Finance and Treasurer

 

 

 

EASTERN TITLE AGENCY, INC.

 

 

FOUNDERS TITLE AGENCY, INC.

 

 

GOVERNOR’S ABSTRACT CO., INC.

 

 

HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

 

 

K. HOV INTERNATIONAL, INC.

 

K. HOV IP, II, INC.

 

 

K. HOV IP, INC.

 

 

K. HOVNANIAN ACQUISITIONS, INC.

 

 

K. HOVNANIAN AT BERNARDS IV, INC.

 

 

K. HOVNANIAN AT BRANCHBURG III, INC.

 

 

K. HOVNANIAN AT BRIDGEPORT, INC.

 

 

K. HOVNANIAN AT BRIDGEWATER VI, INC.

 

 

K. HOVNANIAN AT BURLINGTON III, INC.

 

 

K. HOVNANIAN AT BURLINGTON, INC.

 

 

K. HOVNANIAN AT CALABRIA, INC.

 

 

K. HOVNANIAN AT CAMERON CHASE, INC.

 

 

K. HOVNANIAN AT CARMEL DEL MAR, INC.

 

 

K. HOVNANIAN AT CASTILE, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

K. HOVNANIAN AT CHAPARRAL, INC.

 

 

K. HOVNANIAN AT CLARKSTOWN, INC.

 

 

K. HOVNANIAN AT CRESTLINE, INC.

 

 

K. HOVNANIAN AT DOMINGUEZ HILLS, INC.

 

 

K. HOVNANIAN AT EAST WHITELAND I, INC.

 

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP I, INC.

 

 

K. HOVNANIAN AT HERSHEY’S MILL, INC.

 

 

K. HOVNANIAN AT HACKETTSTOWN, INC.

 

 

K. HOVNANIAN AT HIGHLAND VINEYARDS, INC.

 

 

K. HOVNANIAN AT HOPEWELL IV, INC.

 

 

K. HOVNANIAN AT HOPEWELL VI, INC.

 

 

K. HOVNANIAN AT HOWELL TOWNSHIP, INC.

 

 

K. HOVNANIAN AT KINGS GRANT I, INC.

 

 

K. HOVNANIAN AT LA TERRAZA, INC.

 

 

K. HOVNANIAN AT LAKEWOOD, INC.

 

 

K. HOVNANIAN AT LOWER SAUCON, INC.

 

 

K. HOVNANIAN AT MAHWAH II, INC.

 

 

K. HOVNANIAN AT MAHWAH VI, INC.

 

 

K. HOVNANIAN AT MAHWAH VII, INC.

 

 

K. HOVNANIAN AT MANALAPAN, INC.

 

 

K. HOVNANIAN AT MARLBORO II, INC.

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP III, INC.

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IV, INC.

 

 

K. HOVNANIAN AT MONTGOMERY I, INC.

 

 

K. HOVNANIAN AT MONROE II, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.

 

 

K. HOVNANIAN AT NORTHLAKE, INC.

 

 

K. HOVNANIAN AT OCEAN TOWNSHIP, INC.

 

 

K. HOVNANIAN AT OCEAN WALK, INC.

 

 

K. HOVNANIAN AT PERKIOMEN I, INC.

 

 

K. HOVNANIAN AT PERKIOMEN II, INC.

 

 

K. HOVNANIAN AT RANCHO CRISTIANITOS, INC.

 

 

K. HOVNANIAN AT RESERVOIR RIDGE, INC.

 

 

K. HOVNANIAN AT SAN SEVAINE, INC.

 

 

K. HOVNANIAN AT SARATOGA, INC.

 

 

K. HOVNANIAN AT SAWMILL, INC.

 

 

K. HOVNANIAN AT SCOTCH PLAINS II, INC.

 

 

K. HOVNANIAN AT SMITHVILLE, INC.

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK V, INC.

 

 

K. HOVNANIAN AT STONE CANYON, INC.

 

 

K. HOVNANIAN AT STONY POINT, INC.

 

 

K. HOVNANIAN AT SYCAMORE, INC.

 

 

K. HOVNANIAN AT TANNERY HILL, INC.

 

 

K. HOVNANIAN AT THE BLUFF, INC.

 

 

K. HOVNANIAN AT THORNBURY, INC.

 

 

K. HOVNANIAN AT TIERRASANTA, INC.

 

 

K. HOVNANIAN AT TROVATA, INC.

 

 

K. HOVNANIAN AT TUXEDO, INC.

 

 

K. HOVNANIAN AT UNION TOWNSHIP I, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP I, INC.

 

 

K. HOVNANIAN AT UPPER MAKEFIELD I, INC.

 

 

K. HOVNANIAN AT VAIL RANCH, INC.

 

 

K. HOVNANIAN AT WALL TOWNSHIP VI, INC.

 

 

K. HOVNANIAN AT WALL TOWNSHIP VIII, INC.

 

 

K. HOVNANIAN AT WASHINGTONVILLE, INC.

 

 

K. HOVNANIAN AT WAYNE III, INC.

 

 

K. HOVNANIAN AT WAYNE V, INC.

 

 

K. HOVNANIAN AT WILDROSE, INC.

 

 

K. HOVNANIAN COMMUNITIES, INC.

 

 

K. HOVNANIAN COMPANIES NORTHEAST, INC.

 

 

K. HOVNANIAN COMPANIES OF CALIFORNIA, INC.

 

 

K. HOVNANIAN COMPANIES OF MARYLAND, INC.

 

 

K. HOVNANIAN COMPANIES OF NEW YORK, INC.

 

 

K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.

 

 

K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC.

 

 

K. HOVNANIAN COMPANIES OF VIRGINIA, INC.

 

 

K. HOVNANIAN CONSTRUCTION II, INC.

 

 

K. HOVNANIAN CONSTRUCTION III, INC.

 

 

K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN DEVELOPMENTS OF CONNECTICUT, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF INDIANA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MICHIGAN, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

 

 

K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC.

 

 

K. HOVNANIAN FORECAST HOMES NORTHERN, INC.

 

 

K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES OF VIRGINIA, INC.

 

 

K. HOVNANIAN PA REAL ESTATE, INC.

 

 

K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC.

 

 

K. HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC.

 

 

K. HOVNANIAN PROPERTIES OF RED BANK, INC.

 

 

KHC ACQUISITION, INC.

 

 

LANDARAMA, INC.

 

 

M&M AT LONG BRANCH, INC.

 

 

MCNJ, INC.

 

 

SEABROOK ACCUMULATION CORPORATION

 

 

STONEBROOK HOMES, INC.

 

 

THE MATZEL & MUMFORD ORGANIZATION, INC.

 

 

WASHINGTON HOMES, INC.

 

 

WH LAND I, INC.

 

 

WH PROPERTIES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

 

Kevin C. Hake

 

 

On behalf of, and as Senior Vice-President — Finance and Treasurer of each of
the foregoing corporations

 

 

 

 

Attest:

 

 

 

--------------------------------------------------------------------------------

 

 

Peter S. Reinhart

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF D.C., L.L.C.

 

 

 

 

By:

K. Hovnanian Developments of D.C., Inc., as the sole member of the foregoing
limited liability company

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C.

 

 

GREENWAY FARMS UTILITY ASSOCIATES, L.L.C.

 

 

HOMEBUYERS FINANCIAL SERVICES, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C.

 

 

K. HOVNANIAN AT KING FARM, L.L.C.

 

 

K. HOVNANIAN AT RODERUCK. L.L.C.

 

 

K. HOVNANIAN AT WILLOW BROOK, L.L.C.

 

 

K. HOVNANIAN COMPANIES OF METRO D.C. NORTH, L.L.C.

 

 

K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C.

 

 

K. HOVNANIAN HOMES AT CIDER MILL, L.L.C.

 

 

 

 

 

By:

 

 

 

 

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C.

 

 

K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C.

 

 

K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C.

 

 

K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

 

 

K. HOVNANIAN HOMES OF MARYLAND, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C.

 

 

RIDGEMORE UTILITY, L.L.C.

 

 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C.

 

 

WH/PR LAND COMPANY, LLC

 

 

WOODLAND LAKES CONDOS AT BOWIE NEWTOWN, L.L.C.

 

 

 

 

 

By:

 

 

 

 

K. Hovnanian Developments of Maryland, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

ALFORD, L.L.C.

 

 

DULLES COPPERMINE, L.L.C.

 

 

HOVNANIAN LAND INVESTMENT GROUP OF VIRGINIA, L.L.C.

 

 

K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C.

 

 

K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.

 

 

K. HOVNANIAN FOUR SEASONS @ HISTORIC VIRGINIA, L.L.C.

 

 

K. HOVNANIAN FRANCUSCUS HOMES, L.L.C.

 

 

K. HOVNANIAN HOMES AT CAMERON STATION, L.L.C.

 

 

K. HOVNANIAN HOMES AT BELMONT OVERLOOK, L.L.C.

 

 

K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

 

 

K. HOVNANIAN HOMES AT VICTORIA STATION, L.L.C.

 

 

K. HOVNANIAN SUMMIT HOLDINGS, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT ASHBURN VILLAGE, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY CONDOMINIUM, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT DULLES DISCOVERY, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT, L.L.C.

 

 

K. HOVNANIAN’S FOUR SEASONS AT VINT HILL, L.L.C.

 

 

 

 

 

By:

 

 

 

 

K. Hovnanian Developments of Virginia, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

AUDDIE ENTERPRISES, L.L.C.

 

 

 

BUILDER SERVICES NJ, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C.

 

 

 

K. HOVNANIAN AT ABERDEEN URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENDALE, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT I, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT II, L.L.C.

 

 

 

K. HOVNANIAN AT BARNEGAT III, L.L.C.

 

 

 

K. HOVNANIAN AT BERKELEY, L.L.C.

 

 

 

K. HOVNANIAN AT BERNARDS V, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT BLUE HERON PINES, L.L.C.

 

 

 

K. HOVNANIAN AT BRIDGEWATER I, L.L.C

 

 

 

K. HOVNANIAN AT CAMDEN I, L.L.C.

 

 

 

K. HOVNANIAN AT CEDAR GROVE III, L.L.C.

 

 

 

K. HOVNANIAN AT CEDAR GROVE IV, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTER I, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTERFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT CHESTERFIELD II, L.L.C.

 

 

 

K. HOVNANIAN AT CLIFTON II, L.L.C.

 

 

 

K. HOVNANIAN AT CLIFTON, L.L.C.

 

 

 

K. HOVNANIAN AT CRANBURY, L.L.C.

 

 

 

K. HOVNANIAN AT CURRIES WOODS, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT DENVILLE, L.L.C.

 

 

 

K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT DOVER, L.L.C.

 

 

 

K. HOVNANIAN AT EDGEWATER II, L.L.C.

 

 

 

K. HOVNANIAN AT EDGEWATER, L.L.C.

 

 

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT ELK TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT FIFTH AVENUE, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT FLORENCE I, L.L.C.

 

 

 

K. HOVNANIAN AT FLORENCE II, L.L.C.

 

 

 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C.

 

 

 

K. HOVNANIAN AT FRANKLIN, L.L.C.

 

 

 

K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT GALLOWAY, L.L.C.

 

 

 

K. HOVNANIAN AT GREAT NOTCH, L.L.C.

 

 

 

K. HOVNANIAN AT GUTTENBERG, L.L.C.

 

 

 

K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.

 

 

 

K. HOVNANIAN AT HAMBURG CONTRACTORS, L.L.C.

 

 

 

K. HOVNANIAN AT HAMBURG, L.L.C.

 

 

 

K. HOVNANIAN AT HAWTHORNE, L.L.C

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

 

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT HAZLET, L.L.C.

 

 

 

K. HOVNANIAN AT HILLTOP, L.L.C.

 

 

 

K. HOVNANIAN AT JACKSON I, L.L.C.

 

 

 

K. HOVNANIAN AT JACKSON, L.L.C.

 

 

 

K. HOVNANIAN AT JERSEY CITY IV, L.L.C.

 

 

 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C.

 

 

 

K. HOVNANIAN AT KEYPORT, L.L.C.

 

 

 

K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C.

 

 

 

K. HOVNANIAN AT LAWRENCE V, L.L.C.

 

 

 

K. HOVNANIAN AT LINWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR CONTRACTORS, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.

 

 

 

K. HOVNANIAN AT LITTLE EGG HARBOR III, L.L.C.

 

 

 

K. HOVNANIAN AT LONG BRANCH I, L.L.C.

 

 

 

K. HOVNANIAN AT MANALAPAN III, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD I, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD II, L.L.C.

 

 

 

K. HOVNANIAN AT MANSFIELD III, L.L.C.

 

 

 

K. HOVNANIAN AT MAPLE AVENUE, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT MARLBORO VI, L.L.C.

 

 

 

K. HOVNANIAN AT MARLBORO VII, L.L.C.

 

 

 

K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLETOWN II, L.L.C.

 

 

 

K. HOVNANIAN AT MIDDLETOWN, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE I, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE II, L.L.C.

 

 

 

K. HOVNANIAN AT MILLVILLE III, L.L.C.

 

 

 

K. HOVNANIAN AT MONROE III, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT MONROE IV, L.L.C.

 

 

 

K. HOVNANIAN AT MONROE NJ, L.L.C.

 

 

 

K. HOVNANIAN AT MONTVALE, L.L.C.

 

 

 

K. HOVNANIAN AT MT. OLIVE TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH BERGEN, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH CALDWELL III, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH CALDWELL, L.L.C.

 

 

 

K. HOVNANIAN AT NORTH HALEDON, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT NORTHFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT OCEANPORT, L.L.C.

 

 

 

K. HOVNANIAN AT OLD BRIDGE, L.L.C.

 

 

 

K. HOVNANIAN AT PARAMUS, L.L.C.

 

 

 

K. HOVNANIAN AT PARSIPPANY-TROY HILLS, L.L.C.

 

 

 

K. HOVNANIAN AT PEAPACK-GLADSTONE, L.L.C.

 

 

 

K. HOVNANIAN AT PITTSGROVE, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT PRINCETON LANDING, L.L.C.

 

 

 

K. HOVNANIAN AT PRINCETON NJ, L.L.C.

 

 

 

K. HOVNANIAN AT RANDOLPH I, L.L.C.

 

 

 

K. HOVNANIAN AT READINGTON II, L.L.C.

 

 

 

K. HOVNANIAN AT RED BANK, L.L.C.

 

 

 

K. HOVNANIAN AT RIDGEMONT, L.L.C.

 

 

 

K. HOVNANIAN AT SAYREVILLE, L.L.C.

 

 

 

K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.

 

 

 

K. HOVNANIAN AT SMITHVILLE III, L.L.C.

 

 

 

K. HOVNANIAN AT SOMERS POINT, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.

 

 

 

K. HOVNANIAN AT SPARTA, L.L.C.

 

 

 

K. HOVNANIAN AT SPRINGCO, L.L.C.

 

 

 

K. HOVNANIAN AT SPRINGFIELD, L.L.C.

 

 

 

K. HOVNANIAN AT TEANECK, L.L.C.

 

 

 

K. HOVNANIAN AT THE MONARCH, L.L.C.

 

 

 

K. HOVNANIAN AT TRENTON, L.L.C.

 

 

 

K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT UNION TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

 

 

 

K. HOVNANIAN AT VINELAND, L.L.C.

 

 

 

K. HOVNANIAN AT WANAQUE, L.L.C.

 

 

 

K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C.

 

 

 

K. HOVNANIAN AT WASHINGTON, L.L.C.

 

 

 

K. HOVNANIAN AT WAYNE IX, L.L.C.

 

 

 

K. HOVNANIAN AT WAYNE VIII, L.L.C.

 

 

 

K. HOVNANIAN AT WEST MILFORD, L.L.C.

 

 

 

K. HOVNANIAN AT WEST WINDSOR, L.L.C.

 

 

 

K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C.

 

 

 

K. HOVNANIAN AT WOODHILL ESTATES, L.L.C.

 

 

 

K. HOVNANIAN AT WOOLWICH I, L.L.C.

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
limited liability companies.

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II,
Inc., as member

 

 

 

 

 

 

 

 

By:

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

 

 

 

K. HOVNANIAN CLASSICS, L.L.C.

 

 

 

K. HOVNANIAN CLASSICS CIP, L.L.C.

 

 

 

K. HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

 

 

 

K. HOVNANIAN HOMES – DFW, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF HOUSTON, L.L.C.

 

 

 

K. HOVNANIAN OF HOUSTON II, L.L.C.

 

 

 

K. HOVNANIAN INVESTMENTS II, L.L.C.

 

 

 

K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of
each of the foregoing limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President
— Finance and Treasure

 

 

 

 

 

 

 

 

Attest:

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc.,
as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN NORTHEAST SERVICES, L.L.C.

 

 

 

K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN SOUTHERN NEW JERSEY, L.LC.

 

 

 

K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN T&C INVESTMENT, L.L.C.

 

 

 

K. HOVNANIAN VENTURE I, L.L.C.

 

 

 

K. HOVNANIAN’S PRIVATE HOME PORTFOLIO, L.L.C.

 

 

 

TERRAPIN REALTY, L.L.C.

 

 

 

KHIP, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of
each of the foregoing limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as
member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as
member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

F&W MECHANICAL SERVICES, L.L.C.

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the managing
member of the foregoing limited liability companies.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as
member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc.,
as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

HUDSON POINTE JOINT DEVELOPMENT, L.L.C.

 

 

 

By:

K. Hovnanian Hudson Pointe Investments, L.L.C., its sole
member

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc.,
as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN AT HUDSON POINTE, L.L.C.

 

 

 

By:

Hudson Pointe Joint Development, L.L.C., its sole member

 

 

 

 

 

By:

K. Hovnanian Hudson Pointe Investments, L.L.C., its
sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole
member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New
Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as
member

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

PARK TITLE COMPANY, L.L.C.

 

 

 

By:

K. Hovnanian of Houston II, L.L.C., its sole member

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey,
Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc.,
as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

PI INVESTMENTS II, L.L.C.

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole member

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.

 

 

 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.

 

 

 

By:

PI Investments II, L.L.C., its sole member

 

 

 

 

 

By:

K. Hovnanian Investments II, L.L.C., its sole member

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., its sole member

 

 

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

 

 

Kevin C. Hake

 

 

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

 

 

 

AND

 

 

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and
Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF CALIFORNIA, L.L.C.

 

 

 

K. HOVNANIAN AT 3 CHAPMAN, L.L.C.

 

 

 

K. HOVNANIAN AT 4S, L.L.C.

 

 

 

K. HOVNANIAN AT ACQUA VISTA, L.L.C.

 

 

 

K. HOVNANIAN AT ALISO, L.L.C.

 

 

 

K. HOVNANIAN AT ARBOR HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT AVENUE ONE, L.L.C.

 

 

 

K. HOVNANIAN AT BELLA LAGO, L.L.C.

 

 

 

K. HOVNANIAN AT BRIDLEWOOD, L.L.C.

 

 

 

K. HOVNANIAN AT CAPISTRANO, L.L.C.

 

 

 

K. HOVNANIAN AT CARMEL VILLAGE, L.L.C.

 

 

 

K. HOVNANIAN AT CIELO, L.L.C.

 

 

 

K. HOVNANIAN AT COASTLINE, L.L.C.

 

 

 

K. HOVNANIAN AT CORTEZ HILL, L.L.C.

 

 

 

K. HOVNANIAN AT EASTLAKE, L.L.C.

 

 

 

K. HOVNANIAN AT ENCINITAS RANCH, L.L.C.

 

 

 

K. HOVNANIAN AT EVERGREEN, L.L.C.

 

 

 

K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

 

 

 

K. HOVNANIAN AT HIGHWATER, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA, L.L.C.

 

 

 

K. HOVNANIAN AT LA COSTA GREENS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT LA HABRA KNOLLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE HILLS, L.L.C.

 

 

 

K. HOVNANIAN AT LAKE RANCHO VIEJO, L.L.C.

 

 

 

K. HOVNANIAN AT MATSU, L.L.C.

 

 

 

K. HOVNANIAN AT MENIFEE, L.L.C.

 

 

 

K. HOVNANIAN AT MOCKINGBIRD CANYON, L.L.C.

 

 

 

K. HOVNANIAN AT MOSAIC, L.L.C.

 

 

 

K. HOVNANIAN AT OLDE ORCHARD, L.L.C.

 

 

 

K. HOVNANIAN AT ORANGE HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.

 

 

 

K. HOVNANIAN AT PARK LANE, L.L.C.

 

 

 

K. HOVNANIAN AT PIAZZA D’ORO, L.L.C.

 

 

 

K. HOVNANIAN AT PRADO, L.L.C.

 

 

 

K. HOVNANIAN AT RANCHO SANTA MARGARITA, L.L.C.

 

 

 

K. HOVNANIAN AT RIVERBEND, L.L.C.

 

 

 

K. HOVNANIAN AT ROSEMARY LATANA, L.L.C.

 

 

 

K. HOVNANIAN AT ROWLAND HEIGHTS, L.L.C.

 

 

 

K. HOVNANIAN AT SAGE, L.L.C.

 

 

 

K. HOVNANIAN AT SKYE ISLE, L.L.C.

 

 

 

K. HOVNANIAN AT SUNSETS, L.L.C.

 

 

 

K. HOVNANIAN AT THE CROSBY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT THE GABLES, L.L.C.

 

 

 

K. HOVNANIAN AT THE PRESERVE, L.L.C.

 

 

 

K. HOVNANIAN AT THOMPSON RANCH, L.L.C.

 

 

 

K. HOVNANIAN AT TRAIL RIDGE, L.L.C.

 

 

 

K. HOVNANIAN AT WINCHESTER, L.L.C.

 

 

 

K. HOVNANIAN INTERNATIONAL, L.L.C.

 

 

 

K. HOVNANIAN T&C MANAGEMENT CO., L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HEMET, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT MENIFEE VALLEY, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, L.L.C.

 

 

 

K. HOVNANIAN’S FOUR SEASONS, L.L.C.

 

 

 

K. HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C.

 

 

 

NATOMAS CENTRAL NEIGHBORHOOD HOUSING, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of California, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOLDINGS NJ, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

AND

 

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

BUILDER SERVICES, PA, L.L.C.

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF PENNSYLVANIA, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENBERRY, L.L.C.

 

 

 

K. HOVNANIAN AT ALLENTOWN, L.L.C.

 

 

 

K. HOVNANIAN AT BROAD AND WALNUT, L.L.C.

 

 

 

K. HOVNANIAN AT CAMPHILL, L.L.C.

 

 

 

K HOVNANIAN AT EAST BRANDYWINE, L.L.C.

 

 

 

K HOVNANIAN AT FORKS TWP. I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND I, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C.

 

 

 

K. HOVNANIAN AT LOWER MORELAND III, L.L.C.

 

 

 

K. HOVNANIAN AT MACUNGIE, L.L.C.

 

 

 

K. HOVNANIAN AT NORTHAMPTON, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA II, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA III, L.L.C.

 

 

 

K. HOVNANIAN AT PHILADELPHIA IV, L.L.C.

 

 

 

K. HOVNANIAN AT RAPHO, L.L.C.

 

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake
Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT SILVER SPRING, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

 

 

 

K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.

 

 

 

K. HOVNANIAN AT WEST BRADFORD, L.L.C.

 

 

 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C.

 

 

 

K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C.

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C.

 

 

 

RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.

 

 

 

By:

K. Hovnanian Companies of Pennsylvania, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.

 

 

 

K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

 

 

 

K. HOVNANIAN FIRST HOMES, L.L.C.

 

 

 

K. HOVNANIAN FLORIDA REALTY, L.L.C.

 

 

 

K. HOVNANIAN STANDING ENTITY, L.L.C.

 

 

 

K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C.

 

 

 

K. HOVNANIAN WINDWARD HOMES, L.L.C.

 

 

 

By:

Hovnanian Developments of Florida, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart
Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN COMPANIES, LLC

 

 

 

 

By:

K. Hovnanian Enterprises, Inc., as member of the foregoing limited liability
company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

AND

 

 

 

 

By:

K. Hovnanian Developments of New Jersey II, Inc., as member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.

 

 

 

 

By:

K. Hovnanian at Perkiomen II, Inc., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

K. HOVNANIAN FOUR SEASONS AT GOLD HILL, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF SOUTH CAROLINA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of South Carolina, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, L.L.C.

 

 

 

 

 

K. HOVNANIAN GREAT WESTERN HOMES, L.L.C.

 

 

 

 

 

NEW LAND TITLE AGENCY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Arizona, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

 

 

 

K. HOVNANIAN AT RIDGESTONE, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF MINNESOTA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C.

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT MINNESOTA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Minnesota, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN OHIO REALTY, L.L.C.

 

 

 

 

 

K. HOVNANIAN OSTER HOMES, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

MILLENNIUM TITLE AGENCY, LTD.

 

 

 

 

 

By:

K. Hovnanian Oster Homes, L.L.C., its sole member

 

 

 

 

 

 

By:

K. Hovnanian Developments of Ohio, Inc., as member

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HUNTFIELD, L.L.C.

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of West Virginia, Inc., as the sole member of each of
the foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF MICHIGAN, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF MICHIGAN, L.L.C.

 

 

 

 

 

 

By:

K. Hovnanian Developments of Michigan, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M&M AT CHESTERFIELD, L.L.C.

 

 

 

 

 

M&M AT APPLE RIDGE, L.L.C.

 

 

 

 

 

M&M AT EAST MILL, L.L.C.

 

 

 

 

 

M&M AT MORRISTOWN, L.L.C.

 

 

 

 

 

M&M AT SHERIDAN, L.L.C.

 

 

 

 

 

M&M AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

M&M AT SPRUCE HOLLOW, L.L.C.

 

 

 

 

 

M&M AT SPRUCE RUN, L.L.C.

 

 

 

 

 

M&M AT THE HIGHLANDS, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT EGG HARBOR, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT MONTGOMERY, L.L.C.

 

 

 

 

 

THE LANDINGS AT SPINNAKER POINTE, L.L.C.

 

 

 

 

 

By:

The Matzel & Mumford Organization, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M & M AT COPPER BEECH, L.L.C.

 

 

 

 

 

M & M AT CRESCENT COURT, L.L.C.

 

 

 

 

 

M&M AT EAST RUTHERFORD, L.L.C.

 

 

 

 

 

M&M AT KENSINGTON WOODS, L.L.C.

 

 

 

 

 

M & M AT STATION SQUARE, L.L.C.

 

 

 

 

 

M & M AT UNION, L.L.C.

 

 

 

 

 

M&M AT TAMARACK HOLLOW, L.L.C.

 

 

 

 

 

M&M AT THE CHATEAU, L.LC.

 

 

 

 

 

M&M AT WEST ORANGE, L.L.C.

 

 

 

 

 

M&M AT WESTPORT, L.L.C.

 

 

 

 

 

M&M AT WHEATENA URBAN RENEWAL, L.L.C.

 

 

 

 

 

MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C.

 

 

 

MMIP, L.L.C.

 

 

 

 

 

By:

M&M Investments, L.P., as the sole member of each of the foregoing limited
liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT JONES STATION 2, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT MAXWELL PLACE. L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT PRIMERA, L.L.C.

 

 

 

 

 

PADDOCKS, L.L.C.

 

 

 

 

 

PINE AYR, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes of Maryland, L.L.C., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF TEXAS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes - DFW, L.L.C., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

 

By:

K. Hovnanian Holdings NJ, L.L.C., as the sole member of the foregoing limited
liability company.

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT NEW WINDSOR, L.L.C.

 

 

 

 

 

BUILDER SERVICES NY, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT HAMPTONBURGH, L.L.C.

 

 

 

 

 

By:

K. Hovnanian at Northern Westchester, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN DELAWARE ACQUISITIONS, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

 

 

 

 

 

K. HOVNANIAN HOMES AT NASSAU GROVE, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Delaware, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN AT MENIFEE VALLEY CONDOMINIUMS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian’s Four Seasons At Menifee Valley, L.L.C.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF NORTH CAROLINA, L.L.C.

 

 

 

 

By:

K. Hovnanian Developments of North Carolina, Inc., as the sole member of the
foregoing limited liability company.

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT BAILEY’S GLENN, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT OLDE LIBERTY, L.L.C.

 

 

 

 

 

K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Homes of North Carolina, Inc. as the sole member of the foregoing
limited liability companies

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

 

K. HOVNANIAN HOMES OF INDIANA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Indiana, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C.

 

 

 

 

 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF KENTUCKY, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Kentucky, Inc., as the sole member of the foregoing
limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN CONNECTICUT ACQUISITIONS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Connecticut, Inc., as the sole member of the
foregoing limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Illinois, Inc., as the sole member of the foregoing
limited liability company.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

HOVNANIAN LAND INVESTMENT GROUP OF GEORGIA, L.L.C

 

 

 

 

 

K. HOVNANIAN HOMES OF GEORGIA, L.L.C.

 

 

 

 

 

By:

K. Hovnanian Developments of Georgia, Inc., as the sole member of each of the
foregoing limited liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

 

WESTMINSTER HOMES OF ALABAMA, L.L.C.

 

 

 

 

 

WESTMINSTER HOMES OF MISSISSIPPI, L.L.C.

 

 

 

 

 

By:

Washington Homes, Inc., as sole member of each of the foregoing limited
liability companies.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

 

 

 

 

 

 

K. HOVNANIAN AT EWING, L.L.C.

 

 

 

 

 

 

 

By:

K. Hovnanian at Lakewood, Inc., as sole member of the foregoing limited
liability company

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Kevin C. Hake

 

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

 

 

Attest:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

 

Peter S. Reinhart

 

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

K. HOVNANIAN POLAND, SP. Z.O.O.

 

 

 

 

 

By:

Hovnanian Enterprises, Inc., as member.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

 

 

                    AND

 

 

 

 

 

By:

K. Hovnanian International, Inc., as member.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

--------------------------------------------------------------------------------

 

 

 

 

 

M&M INVESTMENTS, L.P.

 

 

 

 

 

By:

The Matzel & Mumford Organization, Inc., as general partner of the foregoing
limited partnership.

 

 

 

 

 

 

By:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Kevin C. Hake

 

 

 

Senior Vice-President — Finance and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

--------------------------------------------------------------------------------

 

 

 

Peter S. Reinhart

 

 

 

Secretary

 

 

 

 

 

Address for Notices for each of the foregoing Debtors:

 

 

 

c/o K. Hovnanian Enterprises, Inc.

 

110 West Front St., P.O. Box 500

 

Red Bank, NJ 07701

 

Attention: Kevin C. Hake

 

Telephone: (732) 747-7800

 

Telecopy: (732) 747-6835

--------------------------------------------------------------------------------

SCHEDULE A

Depository Accounts

Schedule A-1

--------------------------------------------------------------------------------

SCHEDULE B

Securities Accounts

--------------------------------------------------------------------------------

SCHEDULE C

Actions Required to Perfect

 

 

26.

With respect to each Loan Party organized under the laws of the state of Alabama
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Alabama Secretary of State.

 

 

27.

With respect to each Loan Party organized under the laws of the state of Arizona
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Arizona Secretary of State.

 

 

28.

With respect to each Loan Party organized under the laws of the state of
California as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the California Secretary of State.

 

 

29.

With respect to each Loan Party organized under the laws of the state of
Connecticut as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral the Connecticut Secretary of State.

 

 

30.

With respect to each Loan Party organized under the laws of the state of
Delaware as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Delaware Secretary of State.

 

 

31.

With respect to each Loan Party organized under the laws of the District of
Columbia as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the District of Columbia Recorder of Deeds.

 

 

32.

With respect to each Loan Party organized under the laws of the state of Florida
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Florida Secured Transaction Registry.

 

 

33.

With respect to each Loan Party organized under the laws of the state of Georgia
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Office of the Clerk of Superior Court of any County of
Georgia.

 

 

34.

With respect to each Loan Party organized under the laws of the state of
Illinois as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Illinois Secretary of State.

 

 

35.

With respect to each Loan Party organized under the laws of the state of Indiana
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Indiana Secretary of State.

 

 

36.

With respect to each Loan Party organized under the laws of the state of
Kentucky as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing

--------------------------------------------------------------------------------

 

 

 

Statement that reasonably identifies the Collateral with the Kentucky Secretary
of State.

 

 

37.

With respect to each Loan Party organized under the laws of the state of
Maryland as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Maryland State Department of Assessments and Taxation.

 

 

38.

With respect to each Loan Party organized under the laws of the state of
Michigan as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Michigan Secretary of State.

 

 

39.

With respect to each Loan Party organized under the laws of the state of
Minnesota as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Minnesota Secretary of State.

 

 

40.

With respect to each Loan Party organized under the laws of the state of
Mississippi as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Mississippi Secretary of State.

 

 

41.

With respect to each Loan Party organized under the laws of the state of New
Jersey as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the New Jersey Division of Commercial Recording.

 

 

42.

With respect to each Loan Party organized under the laws of the state of New
York as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the New York Secretary of State.

 

 

43.

With respect to each Loan Party organized under the laws of the state of North
Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the North Carolina Secretary of State.

 

 

44.

With respect to each Loan Party organized under the laws of the state of Ohio as
identified on Schedule 1.1(C) of the Credit Agreement, the filing of a Uniform
Commercial Code Financing Statement that reasonably identifies the Collateral
with the Ohio Secretary of State.

 

 

45.

With respect to each Loan Party organized under the laws of the state of
Pennsylvania as identified on Schedule 1.1(C) of the Credit Agreement, the
filing of a Uniform Commercial Code Financing Statement that reasonably
identifies the Collateral with the Pennsylvania Secretary of the Commonwealth.

 

 

46.

With respect to each Loan Party organized under the laws of the state of South
Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the South Carolina Secretary of State.

 

 

47.

With respect to each Loan Party organized under the laws of the state of
Tennessee as identified on Schedule 1.1(C) of the Credit Agreement, the filing
of a Uniform Commercial Code Financing

--------------------------------------------------------------------------------

 

 

 

Statement that reasonably identifies the Collateral with the Tennessee Secretary
of State.

 

 

48.

With respect to each Loan Party organized under the laws of the state of Texas
as identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Texas Secretary of State.

 

 

49.

With respect to each Loan Party organized under the laws of the state of
Virginia as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the Virginia State Corporation Commission.

 

 

50.

With respect to each Loan Party organized under the laws of the state of West
Virginia as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
a Uniform Commercial Code Financing Statement that reasonably identifies the
Collateral with the West Virginia Secretary of State.

 

 

51.

With respect to the Securities Account and the Deposit Account, the bank with
which the Securities Account and the Deposit Account are maintained agreeing
that it will comply with instructions originated by the Agent directing
disposition of the funds in the Securities Account and the Deposit Account
without further consent of the relevant Grantor.

--------------------------------------------------------------------------------

EXHIBIT 1.1(S)(2)
FORM OF
AMENDED AND RESTATED SWING LOAN NOTE

 

 

$30,000,000

East Brunswick, New Jersey

 

March 7, 2008

          FOR VALUE RECEIVED, the undersigned, K. HOVNANIAN ENTERPRISES, INC., a
California corporation (herein called the “Borrower”), hereby promises to pay to
the order of PNC BANK, NATIONAL ASSOCIATION (the “Lender”), the lesser of (i)
the principal sum of Thirty Million U.S. Dollars (U.S. $30,000,000) and (ii) the
aggregate unpaid principal amount of all “Swing Loans” made by the Lender to the
Borrower pursuant to the Seventh Amended and Restated Credit Agreement dated as
of March 7, 2008, among the Borrower, Hovnanian Enterprises, Inc., as a
Guarantor, the other Lenders now or hereafter party thereto and PNC Bank,
National Association, as administrative agent for the Lenders(the “Agent”), and
the Lender (as amended, restated, supplemented or modified from time to time,
the “Credit Agreement”), payable on the Expiration Date. The Borrower shall pay
interest on the unpaid principal balance hereof from time to time outstanding
from the date hereof at the rate provided in the Credit Agreement.

                    Interest hereon will be payable at the times specified in
the Credit Agreement.

                    If any payment of principal or interest on this Note shall
be requested or is payable on a day which is not a Business Day, such payment
shall be made on the next succeeding Business Day and such extension of time
shall in such case be included in computing interest in connection with payment.

                    Subject to the provisions of the Credit Agreement, payments
of both principal and interest shall be made without setoff, counterclaim or
other deduction of any nature at the Principal Office of the Agent in lawful
money of the United States of America in immediately available funds.

                    This Note is the Swing Loan Note and is subject to the
provisions of, and is entitled to the security provided for in and the other
benefits of the Credit Agreement and the other Loan Documents.

                    Except as otherwise provided in the Credit Agreement, the
Borrower waives presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note and the Credit Agreement.

                    All capitalized terms used herein shall, unless otherwise
defined herein, have the same meanings assigned to such terms in the Credit
Agreement.

                    This Note shall bind the Borrower and its successors and
assigns, and the benefits hereof shall inure to the benefit of the Agent, the
Lender and their respective successors and assigns. All references herein to the
“Borrower,” the “Agent” and the “Lender” shall be deemed to apply to the
Borrower, the Agent and the Lender, respectively, and their respective
successors and assigns.

                    This Note replaces and supersedes the Swing Loan Note dated
May 31, 2006, in the principal amount of $30,000,000, (the “Prior Note”). To the
extent that the principal balance of this Note includes the Borrower’s
indebtedness hitherto evidenced by the Prior Note, this Note (i) merely re-

--------------------------------------------------------------------------------

evidences the indebtedness hitherto evidenced by the Prior Note, (ii) is given
as substitution for, and not as payment of, the Prior Note, and (iii) is in no
way intended to constitute a novation of the Prior Note. The Borrower hereby
agrees that this Note shall in all respects take the place of and include the
principal amount of the Prior Note.

                    This Note and any other documents delivered in connection
herewith and the rights and obligations of the parties hereto and thereto shall
be governed by, and construed and interpreted in accordance, with the law of the
State of New York.

--------------------------------------------------------------------------------

EXHIBIT 2.4.1
FORM OF
LOAN REQUEST

 

 

TO:

PNC Bank, National Association, as Agent

 

Telephone No.: 412-762-7638

 

Telecopier No.: 412-762-8672

 

Attention: Ms. Rini Davis

 

 

FROM:

K. Hovnanian Enterprises, Inc.

 

 

RE:

Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) dated as
of March 7, 2008 by and between K. HOVNANIAN ENTERPRISES, INC. (the “Company”),
HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders party thereto and PNC
Bank, National Association, as Agent for the Lenders (the “Agent”), as amended,
restated, supplemented or modified from time to time

          Capitalized terms not otherwise defined herein shall have the
respective meanings ascribed to them by the Credit Agreement.

 

 

 

 

A.

Pursuant to Section 2.4 of the Credit Agreement, the undersigned Borrower
irrevocably requests

 

[check one line under 1(a) below and fill in blank space next to the line as
appropriate]:

 

 

 

 

 

1.(a)

___

A new Revolving Credit Loan OR

 

 

 

 

 

 

___

Renewal of the LIBOR Rate Option applicable to an outstanding Revolving Credit
Loan, originally made on ____________ __, 20___ OR

 

 

 

 

 

 

___

Renewal of the Index Rate Option applicable to an outstanding Loan, originally
made on ____________ __, 20___ OR

 

 

 

 

 

 

___

Conversion of the Base Rate Option applicable to an outstanding Revolving Credit
Loan, originally made on ____________ __, 20___ to a Revolving Credit Loan to
which the LIBOR Rate Option applies, OR

 

 

 

 

 

 

___

Conversion of the Index Rate Option applicable to an outstanding Revolving
Credit Loan, originally made on ____________ __, 20___ to a Revolving Credit
Loan to which the LIBOR Rate Option applies, OR

 

 

 

 

 

 

___

Conversion of the LIBOR Rate Option applicable to an outstanding Revolving
Credit Loan, originally made on ____________ __, 20___ to a Revolving Credit
Loan to which the Base Rate Option applies, OR

 

 

 

 

 

 

___

Conversion of the LIBOR Rate Option applicable to an outstanding Revolving
Credit Loan, originally made on ____________ __, 20___ to a Revolving Credit
Loan to which the Index Rate Option applies, OR

 

 

 

 

 

 

___

Conversion of the Base Rate Option applicable to an outstanding Revolving Credit
Loan, originally made on ____________ __, 20___ to a Revolving Credit Loan to
which the Index Rate Option applies, OR

--------------------------------------------------------------------------------

 

 

 

 

 

 

___

Conversion of the Index Rate Option applicable to an outstanding Revolving
Credit Loan, originally made on ____________ __, 20___ to a Revolving Credit
Loan to which the Base Rate Option applies.

 

 

 

 

 

SUCH NEW, RENEWED OR CONVERTED LOAN SHALL BEAR INTEREST:

 

 

 

 

 

 

[Check one line under 1(b) below and fill in blank spaces in line next to line]:

 

 

 

 

 

1.(b) (i)

___

Under the Base Rate Option. Such Loan shall have a Borrowing Date of
____________, ___ 20___ (which date shall be either the Business Day of receipt
of this Loan Request by the Agent by 11:00 a.m. Eastern time with respect to a
Loan to which the Base Rate Option applies or, with respect to a Loan to which
the LIBOR Rate Option applies being converted to a Loan to which the Base Rate
Option applies, the last day of the preceding Interest Period applicable to the
LIBOR Rate Option Loan being converted).

 

 

 

 

 

 

 

OR

 

 

 

 

 

(ii)

___

Under the LIBOR Rate Option. Such Loan shall have a Borrowing Date of
____________, ___20___ (which date shall be three (3) Business Days subsequent
to the Business Day of receipt by the Agent by 11:00 a.m. of this Loan Request
for making a new Loan to which the LIBOR Rate Option applies, renewing a Loan to
which the LIBOR Rate Option applies, or converting a Loan to which the Base Rate
Option or the Index Rate Option applies to a Loan to which the LIBOR Rate Option
applies).

 

 

 

 

 

 

 

OR

 

 

 

 

 

(iii)

___

Under the Index Rate Option. Such Loan shall have a Borrowing Date of
____________, ___ 20___ (which date shall be either the Business Day of receipt
of this Loan Request by the Agent by 11:00 a.m. Eastern time with respect to a
Loan Request to which the Index Rate Option applies or, with respect to a Loan
to which the LIBOR Rate Option applies being converted to a Loan to which the
Index Rate Option applies, the last day of the preceding Interest Period
applicable to the LIBOR Rate Option Loan being converted).

 

 

 

 

 

2.

Such Loan is in the principal amount of U.S. $_____________ or the principal
amount to be renewed or converted is U.S. $_____________

 

 

 

 

 

[not to be less than $2,500,000 and in increments of $500,000 if in excess of
$500,000 for each Borrowing Tranche to which the LIBOR Rate Option applies, not
less than $500,000 and in increments of $100,000 for each Borrowing Tranche to
which the Base Rate Option or Index Rate Option applies]

 

 

 

 

3

[Complete blank below if the Borrower is selecting the LIBOR Rate Option]:

 

 

Such Loan shall have an Interest Period of one [one, two or three] Months.
_____________________________

--------------------------------------------------------------------------------

 

 

B.

As of the date hereof and the date of making of the above-requested Loan (and
after giving effect thereto): the representations and warranties of the Loan
Parties contained in Section 5 of the Credit Agreement and in the other Loan
Documents are and will be true and correct in all material respects (except
representations and warranties which expressly relate solely to an earlier date
or time, which representations and warranties were true and correct in all
material respects on and as of the specific dates or times referred to therein);
no Event of Default or Potential Default has occurred and is continuing or
exists; and the making of any Loan shall not cause the aggregate Loans to exceed
the Borrowing Base.

[SIGNATURE PAGE FOLLOWS]

--------------------------------------------------------------------------------

[SIGNATURE PAGE 1 OF 1 TO LOAN REQUEST]

The undersigned certifies to the Agent as to the accuracy of the foregoing.

 

 

 

 

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

 

 

 

 

 

 

 

Date:  ______________, 20___

 

By:

 

(SEAL)

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

 

Name:

 

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT 2.4.2
FORM OF
SWING LOAN REQUEST

 

 

TO:

PNC Bank, National Association, as Agent

 

Telephone No.: 412-762-7638

 

Telecopier No.: 412-762-8672

 

Attention: Ms. Rini Davis

 

 

FROM:

K. Hovnanian Enterprises, Inc.

 

 

RE:

Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) dated as
of March 7, 2008 by and among K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”),
HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders now or hereafter party
thereto, and PNC BANK, NATIONAL ASSOCIATION, in its capacity as administrative
agent for the Lenders (the “Agent”), as amended, restated, supplemented or
modified from time to time.

          Capitalized terms used but not defined herein shall have the meanings
given to them in the Credit Agreement.

          Pursuant to Section 2.4.2 of the Credit Agreement, the undersigned
hereby makes the following Swing Loan Request:

 

 

 

 

 

 

1.

Aggregate principal amount of Swing Loan:

 

 

 

 

[amount shall not be less than $100,000]

 

 

 

 

 

 

US$__________________

 

 

 

 

 

 

2.

Proposed Borrowing Date: [this Swing Loan Request must be delivered to PNC Bank
not later than 2:00 p.m. Eastern time on the proposed Borrowing Date]

 

________________________

 

 

 

 

 

       3.     As of the date hereof and the date of making of the Swing Loan
requested hereby: the representations and warranties of the Loan Parties
contained in Section 5 of the Credit Agreement and in the other Loan Documents
are and will be true in all material respects (except representations and
warranties that expressly relate solely to an earlier date or time, which
representations and warranties were true and correct in all material respects on
and as of the specific dates or times referred to therein); no Event of Default
or Potential Default has occurred and is continuing or existsand the making of
any Loan shall not cause the aggregate Loans to exceed the Borrowing Base.

[REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY]

--------------------------------------------------------------------------------

[SIGNATURE PAGE 1 OF 1 TO SWING LOAN REQUEST]

The undersigned hereby certifies the accuracy of the foregoing.

 

 

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

Date:  ______________, 20___

 

By:

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

 

Name:

 

 

 

 

--------------------------------------------------------------------------------

 

 

Title:

 

 

 

 

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EXHIBIT 7.3.3.1
FORM OF
QUARTERLY COMPLIANCE CERTIFICATE

For Quarter ended: ________________

PNC Bank, National Association, as Agent
Two Tower Center, 18th Floor
East Brunswick, New Jersey 08816
Attn: Douglas G. Paul, Senior Vice President
Telecopy: (732) 220-3744

Ladies/Gentlemen:

          106. I refer to the Seventh Amended and Restated Credit Agreement
dated March 7, 2008 (the “Credit Agreement”) by and among K. HOVNANIAN
ENTERPRISES, INC. (the “Borrower”), HOVNANIAN ENTERPRISES, INC., as a Guarantor
the several LENDERS and other financial institutions from time to time parties
thereto and PNC BANK, NATIONAL ASSOCIATION, as administrative agent for the
Lenders (the “Agent”). Unless otherwise defined herein, terms defined in the
Credit Agreement are used herein with the same meanings. I, Kevin C. Hake,
Senior Vice President, Finance and Treasurer of the Borrower do hereby certify
as of the quarter ended __________________ (the “Report Date”), that the
Borrower is in compliance with the following covenants as more fully set forth
and calculated on the spreadsheets attached hereto as Exhibit A - “Borrowing
Base Compliance Calculations”, Exhibit B - “Summary Covenant Compliance
Calculations”, and Exhibit C - “Detailed Covenant Compliance Calculations”.

          107. Transactions subject to the restrictions set forth in Section
7.2.4 of the Credit Agreement with respect to Liquidations, Mergers,
Consolidations and Acquisitions are described on the additional page attached
hereto.

 

 

 

 

 

 

Compliance?

Yes o

 

No o

          108. Transactions subject to the restrictions set forth in Section
7.2.5 of the Credit Agreement with respect to Dispositions of Assets or
Subsidiaries are described on the additional page attached hereto.

 

 

 

 

 

 

Compliance?

Yes o

 

No o

          109. Transactions subject to the restrictions set forth in Section
7.2.7 of the Credit Agreement with respect to Subsidiaries, Partnerships and
Joint Ventures are described on the additional page attached hereto.

 

 

 

 

 

 

Compliance?

Yes o

 

No o

--------------------------------------------------------------------------------

          110. Applicable Margin. Based on the Adjusted Leverage Ratio, the
Applicable Margin to become effective as of _______________, as applicable,
shall be:

 

 

 

Base Rate Margin: _______________ basis points

 

 

 

LIBOR Margin: _________________ basis points

 

 

 

Index Rate Margin: _______________basis points

          111. The Loan Parties are in compliance with, and since the most
recent prior Report Date has at all times complied with, the provisions of the
Credit Agreement, including, without limitation, the representations and
warranties contained in Article 6 thereof, except as follows:

          112. No event has occurred that is continuing which constitutes an
Event of Default or Potential Default, except as follows:
____________________________________________.

          113. With respect to all financial statements delivered by or on
behalf of the Loan Parties contemporaneously herewith, such statements are true
and correct in all material respects.

          IN WITNESS WHEREOF, the undersigned has executed this Compliance
Certificate this ______ day of ____________.

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

By:

 

 

--------------------------------------------------------------------------------

 

Name: Kevin C. Hake

 

Title:   Senior Vice President,

 

            Finance and Treasurer

--------------------------------------------------------------------------------

EXHIBIT 7.3.3.2 (A)
FORM OF
UNSECURED BORROWING BASE CERTIFICATE

For Month ended _______________

PNC BANK, NATIONAL ASSOCIATION, Agent
Two Tower Center, 18th Floor
East Brunswick, New Jersey 08816
Telecopy (732) 220-3744

Attn.: Douglas G. Paul, Senior Vice President

Ladies/Gentlemen:

          I refer to the Seventh Amended and Restated Credit Agreement dated
March 7, 2008 (the “Credit Agreement”) among K. HOVNANIAN ENTERPRISES, INC. (the
“Borrower”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the LENDERS now or
hereafter party thereto and PNC BANK, NATIONAL ASSOCIATION, as administrative
agent for the Lenders (the “Agent”).

          Unless otherwise defined herein, terms defined in the Credit Agreement
are used herein with the same meanings. I, Kevin C. Hake, Senior Vice President,
Finance and Treasurer of the Borrower, do hereby certify on behalf of the
Borrower as of the end of the month ended _________________ (the “Report Date”),
that the “Unsecured Borrowing Base” and the components thereof are calculated
and set forth on the spreadsheet attached hereto as Exhibit A - “Unsecured
Borrowing Base Compliance Calculations”.

          The undersigned further certifies as follows:

          1. The Loan Parties are in compliance with, and since the most recent
prior Report Date have at all times complied with, the provisions of the Credit
Agreement.

          2. No event has occurred that is continuing which constitutes an Event
of Default or Potential Default.

          3. With respect to all financial statements delivered by or on behalf
of the Loan Parties contemporaneously herewith, such statements are true and
correct in all material respects.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, the undersigned has executed this Borrowing Base
Certificate this ____ day of ______________.

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Kevin C. Hake

 

Title:   Senior Vice President,

 

            Finance and Treasurer

--------------------------------------------------------------------------------

EXHIBIT 7.3.3.2 (B)
FORM OF
SECURED BORROWING BASE CERTIFICATE

For Month ended _______________

PNC BANK, NATIONAL ASSOCIATION, Agent
Two Tower Center, 18th Floor
East Brunswick, New Jersey 08816
Telecopy (732) 220-3744

Attn.: Douglas G. Paul, Senior Vice President

Ladies/Gentlemen:

          I refer to the Seventh Amended and Restated Credit Agreement dated
March 7, 2008 (the “Credit Agreement”) among K. HOVNANIAN ENTERPRISES, INC. (the
“Borrower”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the LENDERS now or
hereafter party thereto and PNC BANK, NATIONAL ASSOCIATION, as administrative
agent for the Lenders (the “Agent”).

          Unless otherwise defined herein, terms defined in the Credit Agreement
are used herein with the same meanings. I, Kevin C. Hake, Senior Vice President,
Finance and Treasurer of the Borrower, do hereby certify on behalf of the
Borrower as of the end of the month ended _________________ (the “Report Date”),
that the “Secured Borrowing Base” and the components thereof are calculated and
set forth on the spreadsheet attached hereto as Exhibit A - “Secured Borrowing
Base Compliance Calculations”.

          The undersigned further certifies as follows:

          1. The Loan Parties are in compliance with, and since the most recent
prior Report Date have at all times complied with, the provisions of the Credit
Agreement.

          2. No event has occurred that is continuing which constitutes an Event
of Default or Potential Default.

          3. With respect to all financial statements delivered by or on behalf
of the Loan Parties contemporaneously herewith, such statements are true and
correct in all material respects.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

2

--------------------------------------------------------------------------------

          IN WITNESS WHEREOF, the undersigned has executed this Borrowing Base
Certificate this ____ day of ______________.

 

 

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

 

 

By:

 

 

 

--------------------------------------------------------------------------------

 

Name: Kevin C. Hake

 

Title:   Senior Vice President,

 

            Finance and Treasurer

--------------------------------------------------------------------------------

Exhibit A to Exhibit 7.3.3.2 (B)

Secured Borrowing Base Compliance Calculations

--------------------------------------------------------------------------------