REGULAR OR PERIODIC REPORTS, INCLUDING FORMS 10-K, 10-Q
AND 8-K, REGISTRATION STATEMENTS AND PROSPECTUSES, FILED BY HOVNANIAN WITH THE
SEC.
(E)
SUCH OTHER REPORTS AND INFORMATION AS THE
ADMINISTRATIVE AGENT
MAY FROM TIME TO TIME REASONABLY REQUEST.
40
ARTICLE VI
GUARANTEES
SECTION 6.01.
Guarantee.
(a) Each Guarantor hereby unconditionally guarantees
(each such guarantee to be referred to herein as a "Guarantee"), jointly and
severally with each other Guarantor, (i) the due and punctual payment of the
principal of and any premium or interest on the Loans, whether at maturity or on
an Interest Payment Date, by acceleration, or otherwise, and interest on the
overdue principal of and interest, if any, on the Loans and all other
obligations of the Company hereunder and under any other Loan Document, all in
accordance with the terms hereof and of the other Loan Documents, and (ii) in
cases of any extension of time of payment or renewal of any such Loan or any of
such other obligations, the same shall be promptly paid in full when due or to
be performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise.
(B)
IF THE COMPANY FAILS TO MAKE ANY PAYMENT WHEN DUE OR ANY AMOUNT SO
GUARANTEED FOR WHATEVER REASON, EACH GUARANTOR SHALL BE OBLIGATED, JOINTLY AND
SEVERALLY WITH EACH OTHER GUARANTOR, IF ANY, TO PAY THE SAME IMMEDIATELY.
EACH
GUARANTOR HEREBY AGREES THAT ITS OBLIGATIONS HEREUNDER SHALL BE CONTINUING,
ABSOLUTE AND UNCONDITIONAL, IRRESPECTIVE OF, AND SHALL BE UNAFFECTED BY, THE
VALIDITY, REGULARITY OR ENFORCEABILITY OF THE LOANS, ANY LOAN DOCUMENT, THE
ABSENCE OF ANY ACTION TO ENFORCE THE SAME, ANY WAIVER OR CONSENT BY ANY LENDER,
THE ISSUING BANK OR THE ADMINISTRATIVE AGENT WITH RESPECT TO ANY PROVISIONS
HEREOF OR THEREOF, THE RECOVERY OF ANY JUDGMENT AGAINST THE COMPANY, ANY ACTION
TO ENFORCE THE SAME OR ANY OTHER CIRCUMSTANCE THAT MIGHT OTHERWISE CONSTITUTE A
LEGAL OR EQUITABLE DISCHARGE OR DEFENSE OF SUCH GUARANTOR.
EACH GUARANTOR
HEREBY WAIVES DILIGENCE, PRESENTMENT, DEMAND OF PAYMENT, DEMAND OF PERFORMANCE,
FILING OF CLAIMS WITH A COURT IN THE EVENT OF INSOLVENCY OR BANKRUPTCY OF THE
COMPANY, ANY RIGHT TO REQUIRE A PROCEEDING FIRST AGAINST THE COMPANY, THE
BENEFIT OF DISCUSSION, PROTEST, NOTICE AND ALL DEMAND WHATSOEVER AND COVENANTS
THAT ITS GUARANTEE SHALL NOT BE DISCHARGED EXCEPT BY COMPLETE PERFORMANCE OF THE
OBLIGATIONS GUARANTEED BY SUCH GUARANTEE IN THIS ARTICLE VI.
IF THE ISSUING
BANK, THE ADMINISTRATIVE AGENT OR ANY LENDER IS REQUIRED BY ANY COURT OR
OTHERWISE TO RETURN TO THE COMPANY OR ANY GUARANTOR, OR ANY CUSTODIAN, TRUSTEE,
LIQUIDATOR OR OTHER SIMILAR OFFICIAL ACTING IN RELATION TO THE COMPANY OR ANY
GUARANTOR, ANY AMOUNT PAID BY THE COMPANY OR SUCH GUARANTOR UNDER THIS
GUARANTEE, THEN THIS ARTICLE VI, TO THE EXTENT THERETOFORE DISCHARGED WITH
RESPECT TO ANY GUARANTEE, SHALL BE REINSTATED IN FULL FORCE AND EFFECT.
EACH
GUARANTOR AGREES THAT IT SHALL NOT BE ENTITLED TO ANY RIGHT OF SUBROGATION IN
RESPECT OF ANY OBLIGATIONS GUARANTEED HEREBY UNTIL