Document:

Exhibit 10.1

 

$1,200,000,000 REVOLVING CREDIT FACILITY

FIFTH 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.

 

Wachovia Bank, National Association,

 

as

 

Syndication Agents

 

and

 

JP Morgan Chase Bank, N.A.

 

The Royal Bank of Scotland plc

 

KeyBank National Association

 

as

 

Documentation Agents

 

PNC Capital Markets, LLC,

 

Wachovia Securities, Inc., and

 

Banc of America Securities LLC

 

as

 

Joint Lead Arrangers and Joint Book
Runners

 

Guaranty Bank

 

SunTrust Bank

 

US Bank National association

 

BNP Paribas

 

Calyon New York Branch

 

 

Comerica Bank

 

Emigrant Savings Bank

 

Citigroup North America, Inc.

 

as

 

Co-Managing Agents

 

Washington Mutual Bank FA

 

National City Bank

 

as

 

Co-Agents

 

Amended and Restated June 14, 2005

 

ii

 

TABLE OF CONTENTS

 

	
  SECTION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  CERTAIN
  DEFINITIONS

  	
   

  
	
  1.1

  	
  Certain Definitions.

  	
   

  
	
  1.2

  	
  Construction.

  	
   

  
	
   

  	
  1.2.1.

  	
  Number;
  Inclusion.

  	
   

  
	
   

  	
  1.2.2.

  	
  Determination.

  	
   

  
	
   

  	
  1.2.3.

  	
  Agent’s
  Discretion and Consent.

  	
   

  
	
   

  	
  1.2.4.

  	
  Documents
  Taken as a Whole.

  	
   

  
	
   

  	
  1.2.5.

  	
  Headings.

  	
   

  
	
   

  	
  1.2.6.

  	
  Implied
  References to this Agreement.

  	
   

  
	
   

  	
  1.2.7.

  	
  Persons.

  	
   

  
	
   

  	
  1.2.8.

  	
  Modifications
  to Documents.

  	
   

  
	
   

  	
  1.2.9.

  	
  From, To and
  Through.

  	
   

  
	
   

  	
  1.2.10.

  	
  Shall; Will.

  	
   

  
	
  1.3

  	
  Accounting Principles.

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  REVOLVING CREDIT AND
  SWING LOAN FACILITIES

  	
   

  
	
  2.1

  	
  Revolving Credit Commitments.

  	
   

  
	
   

  	
  2.1.1.

  	
  Revolving
  Credit Loans.

  	
   

  
	
   

  	
  2.1.2.

  	
  Swing Loan
  Commitment.

  	
   

  
	
   

  	
  2.1.3

  	
  Voluntary
  Reduction of Commitment

  	
   

  
	
  2.2

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

  	
   

  
	
  2.3

  	
  Commitment Fees.

  	
   

  
	
  2.4

  	
  Revolving Credit Loan Requests; Swing Loan
  Requests.

  	
   

  
	
   

  	
  2.4.1.

  	
  Revolving
  Credit Loan Requests.

  	
   

  
	
   

  	
  2.4.2.

  	
  Swing Loan
  Requests.

  	
   

  
	
  2.5

  	
  Making Revolving Credit Loans and Swing Loans.

  	
   

  
	
   

  	
  2.5.1.

  	
  Generally.

  	
   

  
	
   

  	
  2.5.2.

  	
  Making Swing
  Loans.

  	
   

  
	
  2.6

  	
  Swing Loan Note.

  	
   

  
	
  2.7

  	
  Use of Proceeds.

  	
   

  
	
  2.8

  	
  Borrowings to Repay Swing Loans.

  	
   

  
	
  2.9

  	
  Letter of Credit Subfacility.

  	
   

  
	
   

  	
  2.9.1.

  	
  Issuance of
  Letters of Credit.

  	
   

  
	
   

  	
  2.9.2.

  	
  Letter of
  Credit Fees.

  	
   

  
	
   

  	
  2.9.3.

  	
  Disbursements,
  Reimbursement.

  	
   

  
	
   

  	
  2.9.4.

  	
  Repayment of
  Participation Advances.

  	
   

  
	
   

  	
  2.9.5.

  	
  Documentation.

  	
   

  
	
   

  	
  2.9.6.

  	
  Determinations
  to Honor Drawing Requests.

  	
   

  
	
   

  	
  2.9.7.

  	
  Nature of
  Participation and Reimbursement Obligations.

  	
   

  
	
   

  	
  2.9.8.

  	
  Indemnity.

  	
   

  
	
   

  	
  2.9.9.

  	
  Liability for
  Acts and Omissions.

  	
   

  
	
   

  	
  2.9.10.

  	
  Sharing
  Letter of Credit Documentation.

  	
   

  

 

i

 

	
  2.10

  	
  Extension by Lenders of the Expiration Date.

  	
   

  
	
   

  	
  2.10.1.

  	
  Requests;
  Approval by All Lenders.

  	
   

  
	
   

  	
  2.10.2.

  	
  Approval by
  80% Lenders.

  	
   

  
	
  2.11

  	
  Designation of Subsidiaries and Release of
  Guarantors.

  	
   

  
	
   

  	
  2.11.1.

  	
  Release of
  Guarantors.

  	
   

  
	
   

  	
  2.11.2.

  	
  Designation
  of Non-Restricted Person.

  	
   

  
	
   

  	
  2.11.3.

  	
  Automatic
  Designation of Non-Restricted Person.

  	
   

  
	
   

  	
  2.11.4.

  	
  Designation
  of Restricted Subsidiary.

  	
   

  
	
  2.12

  	
  Increase in Commitments.

  	
   

  
	
   

  	
  2.12.1

  	
  Increasing
  Lenders and New Lenders.

  	
   

  
	
   

  	
  2.12.2

  	
  Treatment of
  Outstanding Loans and Letters of Credit.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  INTEREST RATES

  	
   

  
	
  3.1

  	
  Interest Rate Options.

  	
   

  
	
   

  	
  3.1.1.

  	
  Revolving
  Credit Interest Rate Options.

  	
   

  
	
   

  	
  3.1.2.

  	
  Rate
  Quotations.

  	
   

  
	
  3.2

  	
  Interest Periods.

  	
   

  
	
  3.3

  	
  Interest After Default.

  	
   

  
	
   

  	
  3.3.1.

  	
  Default Rate.

  	
   

  
	
   

  	
  3.3.2.

  	
  Acknowledgment.

  	
   

  
	
  3.4

  	
  LIBO-Rate Unascertainable; Illegality; Increased
  Costs; Deposits Not Available.

  	
   

  
	
   

  	
  3.4.1.

  	
  Unascertainable.

  	
   

  
	
   

  	
  3.4.2.

  	
  Illegality;
  Increased Costs; Deposits Not Available.

  	
   

  
	
   

  	
  3.4.3.

  	
  Agent’s and
  Lender’s Rights.

  	
   

  
	
  3.5

  	
  Selection of Interest Rate Options.

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  PAYMENTS

  	
   

  
	
  4.1

  	
  Payments.

  	
   

  
	
  4.2

  	
  Pro Rata Treatment of Lenders.

  	
   

  
	
  4.3

  	
  Interest Payment Dates.

  	
   

  
	
  4.4

  	
  Voluntary Prepayments.

  	
   

  
	
   

  	
  4.4.1.

  	
  Right to
  Prepay.

  	
   

  
	
   

  	
  4.4.2.

  	
  Replacement of
  a Lender.

  	
   

  
	
   

  	
  4.4.3.

  	
  Change of
  Lending Office.

  	
   

  
	
  4.5

  	
  Mandatory Payments.

  	
   

  
	
  4.6

  	
  Additional Compensation in Certain Circumstances.

  	
   

  
	
   

  	
  4.6.1.

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

  	
   

  
	
   

  	
  4.6.2.

  	
  Indemnity.

  	
   

  
	
  4.7

  	
  Notes.

  	
   

  
	
  4.8

  	
  Settlement Date Procedures.

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
  5.1

  	
  Representations and Warranties.

  	
   

  
	
   

  	
  5.1.1.

  	
  Organization
  and Qualification.

  	
   

  

 

ii

 

	
   

  	
  5.1.2.

  	
  Subsidiaries.

  	
   

  
	
   

  	
  5.1.3.

  	
  Power and
  Authority.

  	
   

  
	
   

  	
  5.1.4.

  	
  Validity and
  Binding Effect.

  	
   

  
	
   

  	
  5.1.5.

  	
  No Conflict.

  	
   

  
	
   

  	
  5.1.6.

  	
  Litigation.

  	
   

  
	
   

  	
  5.1.7.

  	
  Title to
  Properties.

  	
   

  
	
   

  	
  5.1.8.

  	
  Financial
  Statements.

  	
   

  
	
   

  	
  5.1.9.

  	
  Use of
  Proceeds; Margin Stock.

  	
   

  
	
   

  	
  5.1.10.

  	
  Full
  Disclosure.

  	
   

  
	
   

  	
  5.1.11.

  	
  Taxes.

  	
   

  
	
   

  	
  5.1.12.

  	
  Consents and
  Approvals.

  	
   

  
	
   

  	
  5.1.13.

  	
  No Event of
  Default; Compliance with Instruments.

  	
   

  
	
   

  	
  5.1.14.

  	
  Patents,
  Trademarks, Copyrights, Licenses, Etc.

  	
   

  
	
   

  	
  5.1.15.

  	
  Insurance.

  	
   

  
	
   

  	
  5.1.16.

  	
  Compliance
  with Laws.

  	
   

  
	
   

  	
  5.1.17.

  	
  Burdensome
  Restrictions.

  	
   

  
	
   

  	
  5.1.18.

  	
  Investment
  Companies; Regulated Entities.

  	
   

  
	
   

  	
  5.1.19.

  	
  Plans and
  Benefit Arrangements.

  	
   

  
	
   

  	
  5.1.20.

  	
  Employment
  Matters.

  	
   

  
	
   

  	
  5.1.21.

  	
  Environmental
  Matters.

  	
   

  
	
   

  	
  5.1.22.

  	
  Senior Debt
  Status.

  	
   

  
	
  5.2

  	
  Continuation of Representations.

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CONDITIONS OF LENDING
  AND ISSUANCE OF LETTERS OF CREDIT

  	
   

  
	
  6.1

  	
  First Loans and Letters of Credit.

  	
   

  
	
   

  	
  6.1.1.

  	
  Officer’s
  Certificate.

  	
   

  
	
   

  	
  6.1.2.

  	
  Incumbency Certificate.

  	
   

  
	
   

  	
  6.1.3.

  	
  Delivery of
  Loan Documents.

  	
   

  
	
   

  	
  6.1.4.

  	
  Opinion of
  Counsel.

  	
   

  
	
   

  	
  6.1.5.

  	
  Legal Details.

  	
   

  
	
   

  	
  6.1.6.

  	
  Payment of
  Fees.

  	
   

  
	
   

  	
  6.1.7.

  	
  Consents.

  	
   

  
	
   

  	
  6.1.8.

  	
  Officer’s
  Certificate Regarding MACs.

  	
   

  
	
   

  	
  6.1.9.

  	
  No Actions or
  Proceedings.

  	
   

  
	
   

  	
  6.1.10

  	
  Lien Search.

  	
   

  
	
  6.2

  	
  Each Additional Loan or Letter of Credit.

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  COVENANTS

  	
   

  
	
  7.1

  	
  Affirmative Covenants.

  	
   

  
	
   

  	
  7.1.1.

  	
  Preservation
  of Existence, Etc.

  	
   

  
	
   

  	
  7.1.2.

  	
  Payment of
  Liabilities, Including Taxes, Etc.

  	
   

  
	
   

  	
  7.1.3.

  	
  Maintenance of
  Insurance.

  	
   

  
	
   

  	
  7.1.4.

  	
  Maintenance of
  Properties and Leases.

  	
   

  
	
   

  	
  7.1.5.

  	
  Maintenance of
  Patents, Trademarks, Etc.

  	
   

  
	
   

  	
  7.1.6.

  	
  Visitation
  Rights.

  	
   

  
	
   

  	
  7.1.7.

  	
  Keeping of
  Records and Books of Account.

  	
   

  

 

iii

 

	
   

  	
  7.1.8.

  	
  Compliance
  with Laws.

  	
   

  
	
   

  	
  7.1.9.

  	
  Use of
  Proceeds.

  	
   

  
	
  7.2

  	
  Negative Covenants.

  	
   

  
	
   

  	
  7.2.1.

  	
  Indebtedness.

  	
   

  
	
   

  	
  7.2.2.

  	
  Liens.

  	
   

  
	
   

  	
  7.2.3.

  	
  Loans and
  Investments.

  	
   

  
	
   

  	
  7.2.4.

  	
  Liquidations,
  Mergers, Consolidations, Acquisitions.

  	
   

  
	
   

  	
  7.2.5.

  	
  Dispositions
  of Assets or Subsidiaries.

  	
   

  
	
   

  	
  7.2.6.

  	
  Restricted
  Payments; Restricted Investments; Investments in Related Businesses.

  	
   

  
	
   

  	
  7.2.7.

  	
  Subsidiaries,
  Partnerships and Joint Ventures.

  	
   

  
	
   

  	
  7.2.8.

  	
  Continuation
  of or Change in Business.

  	
   

  
	
   

  	
  7.2.9.

  	
  Plans and
  Benefit Arrangements.

  	
   

  
	
   

  	
  7.2.10.

  	
  Borrowing
  Base.

  	
   

  
	
   

  	
  7.2.11.

  	
  Minimum
  ATNW.

  	
   

  
	
   

  	
  7.2.12.

  	
  Leverage
  Ratio.

  	
   

  
	
   

  	
  7.2.13.

  	
  Fixed Charge
  Coverage Ratio.

  	
   

  
	
   

  	
  7.2.14.

  	
  Inventory
  Limits.

  	
   

  
	
   

  	
  7.2.15.

  	
  Fiscal Year.

  	
   

  
	
   

  	
  7.2.16.

  	
  Changes in
  Subordinated Debt Documents.

  	
   

  
	
  7.3

  	
  Reporting Requirements.

  	
   

  
	
   

  	
  7.3.1.

  	
  Quarterly
  Financial Statements.

  	
   

  
	
   

  	
  7.3.2.

  	
  Annual
  Financial Statements.

  	
   

  
	
   

  	
  7.3.3.

  	
  Certificates
  of the Borrower.

  	
   

  
	
   

  	
  7.3.4.

  	
  Notice of
  Default.

  	
   

  
	
   

  	
  7.3.5.

  	
  Notice of
  Litigation.

  	
   

  
	
   

  	
  7.3.6.

  	
  Notice of
  Change in Debt Rating.

  	
   

  
	
   

  	
  7.3.7.

  	
  Budgets,
  Forecasts, Other Reports and Information.

  	
   

  
	
   

  	
  7.3.8.

  	
  Notices
  Regarding Plans and Benefit Arrangements.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  DEFAULT

  	
   

  
	
  8.1

  	
  Events of Default.

  	
   

  
	
   

  	
  8.1.1.

  	
  Payments Under
  Loan Documents.

  	
   

  
	
   

  	
  8.1.2.

  	
  Breach of
  Warranty.

  	
   

  
	
   

  	
  8.1.3.

  	
  Breach of
  Certain Negative Covenants.

  	
   

  
	
   

  	
  8.1.4.

  	
  Breach of
  Other Covenants.

  	
   

  
	
   

  	
  8.1.5.

  	
  Defaults in
  Other Agreements or Indebtedness.

  	
   

  
	
   

  	
  8.1.6.

  	
  Final
  Judgments or Orders.

  	
   

  
	
   

  	
  8.1.7.

  	
  Loan Document
  Unenforceable.

  	
   

  
	
   

  	
  8.1.10.

  	
  Insolvency.

  	
   

  
	
   

  	
  8.1.11.

  	
  Events Relating
  to Plans and Benefit Arrangements.

  	
   

  
	
   

  	
  8.1.12

  	
  Cessation of Business.

  	
   

  
	
   

  	
  8.1.13.

  	
  Change of
  Control.

  	
   

  
	
   

  	
  8.1.14.

  	
  Involuntary
  Proceedings.

  	
   

  
	
   

  	
  8.1.15.

  	
  Voluntary
  Proceedings.

  	
   

  
	
  8.2

  	
  Consequences of Event of Default.

  	
   

  
	
   

  	
  8.2.1.

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

  	
   

  

 

iv

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2.2.

  	
  Bankruptcy,
  Insolvency or Reorganization Proceedings.

  	
   

  
	
   

  	
  8.2.3.

  	
  Set-off.

  	
   

  
	
   

  	
  8.2.4.

  	
  Suits,
  Actions, Proceedings.

  	
   

  
	
   

  	
  8.2.5.

  	
  Application of
  Proceeds.

  	
   

  
	
   

  	
  8.2.6.

  	
  Other Rights
  and Remedies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  THE AGENT

  	
   

  
	
  9.1

  	
  Appointment.

  	
   

  
	
  9.2

  	
  Delegation of Duties.

  	
   

  
	
  9.3

  	
  Nature of Duties; Independent Credit Investigation.

  	
   

  
	
  9.4

  	
  Actions in Discretion of Agent; Instructions From
  the Lenders.

  	
   

  
	
  9.5

  	
  Reimbursement and Indemnification of Agent by the
  Borrower.

  	
   

  
	
  9.6

  	
  Exculpatory Provisions; Limitation of Liability.

  	
   

  
	
  9.7

  	
  Reimbursement and Indemnification of Agent by
  Lenders.

  	
   

  
	
  9.8

  	
  Reliance by Agent.

  	
   

  
	
  9.9

  	
  Notice of Default.

  	
   

  
	
  9.10

  	
  Notices.

  	
   

  
	
  9.11

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

  	
   

  
	
  9.12

  	
  Holders of Notes.

  	
   

  
	
  9.13

  	
  Equalization of Lenders.

  	
   

  
	
  9.14

  	
  Successor Agent.

  	
   

  
	
  9.15

  	
  Agent’s Fees.

  	
   

  
	
  9.16

  	
  Availability of Funds.

  	
   

  
	
  9.17

  	
  Calculations.

  	
   

  
	
  9.18

  	
  Beneficiaries.

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
   

  
	
  10.1

  	
  Modifications, Amendments or Waivers.

  	
   

  
	
   

  	
  10.1.1.

  	
  Increase of
  Commitment.

  	
   

  
	
   

  	
  10.1.2.

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

  	
   

  
	
   

  	
  10.1.3.

  	
  Miscellaneous

  	
   

  
	
  10.2

  	
  No Implied Waivers; Cumulative Remedies; Writing
  Required.

  	
   

  
	
  10.3

  	
  Reimbursement and Indemnification of Lenders by
  the Borrower; Taxes.

  	
   

  
	
  10.4

  	
  Holidays.

  	
   

  
	
  10.5

  	
  Funding by Branch, Subsidiary or Affiliate.

  	
   

  
	
   

  	
  10.5.1.

  	
  Notional
  Funding.

  	
   

  
	
   

  	
  10.5.2.

  	
  Actual
  Funding.

  	
   

  
	
  10.6

  	
  Notices.

  	
   

  
	
  10.7

  	
  Severability.

  	
   

  
	
  10.8

  	
  Governing Law.

  	
   

  
	
  10.9

  	
  Prior Understanding.

  	
   

  
	
  10.10

  	
  Duration;
  Survival.

  	
   

  
	
  10.11

  	
  Successors and
  Assigns.

  	
   

  
	
  10.12

  	
  Confidentiality.

  	
   

  

 

v

 

	
   

  	
  10.12.1.

  	
  General.

  	
   

  
	
   

  	
  10.12.2.

  	
  Sharing
  Information With Affiliates of the Lenders.

  	
   

  
	
  10.13

  	
  Counterparts.

  	
   

  
	
  10.14

  	
  Agent’s or
  Lender’s Consent.

  	
   

  
	
  10.15

  	
  Exceptions.

  	
   

  
	
  10.16

  	
  CONSENT TO
  FORUM; WAIVER OF JURY TRIAL.

  	
   

  
	
  10.17

  	
  Certifications
  From Lenders and Participants.

  	
   

  
	
   

  	
  10.17.1

  	
  Tax
  Withholding Clause.

  	
   

  
	
  10.18

  	
  Joinder of
  Guarantors.

  	
   

  
	
  10.19

  	
  Concerning
  Agent Terms.

  	
   

  
	
  10.20

  	
  Ratification
  of Notes and Loan Documents and Existing Obligations.

  	
   

  
	
  10.21

  	
  No Reliance on
  Agent’s Customer Identification Program.

  	
   

  

 

	
  LIST OF
  SCHEDULES AND EXHIBITS

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  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, MORTGAGE SUBSIDIARIES AND
  NON-RESTRICTED PERSONS AND CORPORATE OFFICE SUBSIDIARIES

  
	
  SCHEDULE 1.1(E)

  	
  -

  	
  INCOME
  PRODUCING PROPERTIES

  
	
  SCHEDULE 1.1(P)

  	
  -

  	
  PERMITTED
  LIENS

  
	
  SCHEDULE 2.9.1

  	
  -

  	
  EXISTING LETTERS OF CREDIT

  
	
  SCHEDULE 5.1.2

  	
  -

  	
  SUBSIDIARIES

  
	
  SCHEDULE 5.1.8

  	
  -

  	
  MATERIAL EVENTS SINCE
  OCTOBER 31, 2004

  
	
  SCHEDULE 5.1.12

  	
  -

  	
  CONSENTS AND APPROVALS

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  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(R)

  	
  -

  	
  REVOLVING CREDIT NOTE

  
	
  EXHIBIT 1.1(S)

  	
  -

  	
  SWING LOAN NOTE

  
	
  EXHIBIT 2.4.1

  	
  -

  	
  LOAN REQUEST

  
	
  EXHIBIT 2.4.2

  	
  -

  	
  SWING LOAN REQUEST

  
	
  EXHIBIT 2.12.1-1

  	
  -

  	
  REVOLVING CREDIT COMMITMENT
  INCREASE AGREEMENT

  
	
  EXHIBIT 2.12.1-2

  	
  -

  	
  LENDER JOINDER AND ASSUMPTION
  AGREEMENT

  
	
  EXHIBIT 7.3.3.1

  	
  -

  	
  QUARTERLY COMPLIANCE CERTIFICATE

  
	
  EXHIBIT 7.3.3.2

  	
  -

  	
  BORROWING BASE CERTIFICATE

  

 

vi

 

FIFTH AMENDED AND RESTATED CREDIT
AGREEMENT

 

THIS FIFTH AMENDED AND RESTATED CREDIT AGREEMENT
is dated June 14, 2005 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 $900,000,000 revolving credit facility to the Borrower pursuant to
an Amended and Restated Credit Agreement dated June 18, 2004 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;

 

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:

 

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 (including
Qualified Preferred Equity) of Hovnanian as of such date minus, without
duplication (ii) (A) Intangibles, (B) the Dollar amount of
Restricted Investments (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.

 

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

 

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

 

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

 

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
Commitment Fee Rate shall mean the percentage rate per annum
based on the Leverage Ratio then in effect according to the pricing grid on Schedule 1.1(A)(1) below
the heading “Commitment Fee.”  The
Applicable Commitment Fee Rate shall be computed in accordance with the
parameters set forth on Schedule 1.1(A)(1).

 

Applicable
Letter of Credit Fee Rate shall mean the Applicable Margin
under the LIBO-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 Leverage Ratio and level of
Debt Rating then in effect according to the pricing grid on Schedule 1.1(A)(1) below
the heading “Base Rate Margin,” and

 

(B)           the percentage spread to be added to
LIBO-Rate under the LIBO-Rate Option based on the Leverage Ratio and level of
Debt Rating then in effect according to the pricing grid on Schedule 1.1(A)(1) below
the heading “Libor Margin”.

 

2

 

The Applicable Margin shall be computed in accordance
with the parameters set forth on Schedule 1.1(A)(1).

 

Assignee
Lender shall have the meaning assigned to such term in Section 2.10.2
[Approval by 80% Lenders].

 

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.

 

Average
Daily Usage Percentage for any period shall mean the average
daily ratio (expressed as a percentage) of the following for such period: (i) the
Revolving Facility Usage to (ii) the Revolving Credit Commitments.

 

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.

 

Blocked
Person shall have the meaning assigned to such term in
Section 5.1.23.

 

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 at any time, the Dollar amount equal to the
sum of the following items, each owned free and clear of all Liens (except
Permitted Liens of the type described in items (i), (ii), (iii), (iv), (v), (vi) and
(xii) of the definition of “Permitted Liens”) by the Borrower, Hovnanian or a
Restricted Subsidiary:

 

3

 

(i)            100% of Excess Cash;

 

(ii)           95% of Sold Homes;

 

(iii)          70% of Unsold Homes; and

 

(iv)                              55%
of Finished Lots and Land Under Development;

 

provided
however that the 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 Borrowing Base shall be conclusive absent manifest
error.

 

Borrowing
Base Certificate shall mean the Borrowing Base Certificate in
the form of Exhibit 7.3.3.2 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 LIBO-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, and (ii) all Loans to which a Base Rate
Option applies shall constitute one Borrowing Tranche.

 

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 LIBO-Rate Option applies, such day must also be a day on which
dealings are carried on in the London interbank market.

 

4

 

Capital Stock Retirement shall mean
any repurchase, redemption, acquisition or retirement of any capital stock or
other ownership interest of Hovnanian or of any warrants, options or other
rights to purchase such capital stock or other ownership interest; provided that
“Capital Stock Retirement” shall not include the conversion or exchange of any
of the foregoing into shares of capital stock of Hovnanian.

 

Closing
Date shall mean June 14, 2005, which shall be the date
hereof.

 

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
[Certificates of the Borrower].

 

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.

 

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 Exhibit 1.1(C).

 

Debt
Rating shall mean the rating of Hovnanian’s senior unsecured
long-term debt by each of Standard & Poor’s, Moody’s and Fitch.

 

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

 

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.

 

5

 

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 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.”

 

Excess
Cash shall mean cash that would appear on a consolidated
balance sheet of Hovnanian (to the extent not pledged or encumbered in any way
(other than in connection with a Permitted Lien of the type described in item
(xii) of the definition of Permitted Liens, but only to the extent that no
outstanding Indebtedness or other

 

6

 

liabilities are owed to the
applicable institution or such institution is a Lender)) in excess of
$10,000,000.

 

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.

 

Existing
Lenders shall have the meaning assigned to such term in Section 2.12
[Increases in Revolving Credit Commitments.]

 

Expiration
Date shall mean, with respect to the Revolving Credit
Commitments, July 30, 2009 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 80% Lender].

 

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 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.

 

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”.

 

7

 

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 twelve (12) months 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 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 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.

 

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

 

8

 

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).

 

High
Leverage Period shall mean any fiscal quarter for which the
Leverage Ratio as of the end date of such quarter exceeds 2.10 to 1.00.

 

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.

 

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.

 

9

 

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 LIBO-Rate
Option.  Subject to the last sentence of
this definition, such period shall be one, two, three or six Months if Borrower
selects the LIBO-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
LIBO-Rate Option if the Borrower is renewing or converting to the LIBO-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 LIBO-Rate Option or Base Rate
Option.

 

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, or any agreement to become or
remain liable to do any of the foregoing.

 

Investment
Grade Level shall mean, with respect to the rating of
Hovnanian’s senior unsecured long-term debt by any of Standard & Poor’s,
Moody’s or Fitch, a rating at or above the following level by such rating
agency:

 

	
  Rating Agency

  	
   

  	
  Minimum Level for

  “Investment Grade” Rating

  
	
   

  	
   

  	
   

  
	
  Standard & Poor’s

  	
   

  	
  BBB-

  
	
   

  	
   

  	
   

  
	
  Moody’s

  	
   

  	
  Baa3

  
	
   

  	
   

  	
   

  
	
  Fitch

  	
   

  	
  BBB-

  

 

10

 

Investment Grade Period shall mean
the period commencing on the date on which the Borrower delivers to the Agent
evidence satisfactory to the Agent that Hovnanian’s senior unsecured long-term
debt is rated at or above the Investment Grade Level by at least two of any of
the three rating agencies listed below and shall terminate on the date on which
Hovnanian’s senior unsecured long-term debt ceases to be rated at the
Investment Grade Level or higher by at least two of such rating agencies: (i) Moody’s,
(ii) Standard & Poor’s and (iii) Fitch.

 

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

 

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.

 

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

 

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

 

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

 

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.

 

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

 

LIBO-Rate
shall mean, with respect to the Loans comprising any Borrowing Tranche to which
the LIBO-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 of interest

 

11

 

determined by the Agent in accordance with its usual
procedures (which determination shall be conclusive absent manifest error) to
be the average of the London interbank offered rates for U.S. Dollars quoted by
the British Bankers’ Association as set forth on Moneyline Telerate (or
appropriate successor or, if the British Bankers’ Association or its successor
ceases to provide such quotes, a comparable replacement determined by the
Agent) display page 3750 (or such other display page on the Moneyline
Telerate service as may replace display page 3750) two (2) Business
Days prior to the first day of such Interest Period for an amount comparable to
such Borrowing Tranche and having a borrowing date and a maturity comparable to
such Interest Period by (ii) a number equal to 1.00 minus the LIBO-Rate
Reserve Percentage. 
The LIBO-Rate may also be expressed by the
following formula:

 

	
  LIBO-Rate =

  	
   

  	
  Average of London interbank offered rates quoted

  
	
   

  	
   

  	
  by BBA or appropriate successor as shown on

  
	
   

  	
   

  	
  Moneyline Telerate Service display page 3750

  
	
   

  	
   

  	
  1.00 - LIBO-Rate
  Reserve Percentage

  

 

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

 

LIBO-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 LIBO-Rate
Option].

 

LIBO-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.

 

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

 

Loan Documents shall mean this
Agreement, the Agent’s Letters, the Notes, the Guaranty 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.  Each of the Loan
Documents under the Prior Credit Agreement shall be Loan Documents hereunder.

 

12

 

Loan
Parties shall mean the Borrower and the Guarantors.

 

Loan
Request  shall have
the meaning assigned to that term in Section 2.5 [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.

 

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 or the Guaranty Agreement.

 

Month,
with respect to an Interest Period under the LIBO-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 LIBO-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
Subsidiary shall mean each Subsidiary which
is in the business of making residential mortgage loans. Each of the Mortgage
Subsidiaries as of the Closing Date is listed on Schedule 1.1(C).

 

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

 

New
Lender shall have the meaning assigned to such term in Section 2.12
[Increases in Revolving Credit Commitments.]

 

Non-approving
Lender shall have the meaning assigned to such term in Section 2.10.2
[Approval by 80% 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).

 

13

 

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].

 

Obligation shall mean any obligation
or liability of any of the Loan Parties to the Agent or any of the Lenders,
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
Letters of Credit, the Agent’s Letters 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.

 

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
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;

 

(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

 

14

 

(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 $25,000,000 in the
aggregate.

 

Permitted
Liens shall mean:

 

(i)            Liens for taxes, assessments or
other governmental charges not yet payable or being contested in good faith and
as to which adequate reserves shall have been established in accordance with
GAAP;

 

(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;

 

(iii)          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 or which are being contested in good faith by appropriate proceedings;

 

(iv)          Pledges
or deposits made in the ordinary course of business to secure performance of
bids, tenders, contracts (other than for the repayment of

 

15

 

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;

 

(v)           Encumbrances consisting of zoning
restrictions, easements or other restrictions on the use of real property, none
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;

 

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

 

(vii)         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;

 

(viii)        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;

 

(ix)           Purchase Money Mortgages and Purchase
Money Security Interests and 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 securing Indebtedness not to
exceed in aggregate $25,000,000 principal amount; and

 

(x)            The
following, (A) if the validity or amount thereof is being contested in
good faith by appropriate and lawful proceedings diligently conducted so long
as levy and execution thereon have been stayed and continue to be stayed or (B) if
a final judgment is entered and such judgment is discharged within thirty (30)
days of entry, and they do not in the aggregate materially impair the ability
of any Loan Party to perform its Obligations hereunder or under the other Loan
Documents:

 

(1)           Claims
or Liens for taxes, assessments or charges due and payable and subject to
interest or penalty, provided that the applicable Loan Party maintains
such reserves or other appropriate provisions as shall be required by GAAP and
pays all such taxes, assessments or charges forthwith upon the commencement of
proceedings to foreclose any such Lien;

 

(2)           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 (except to the extent such
attachment constitutes an Event of Default under Section 8.1.8);

 

(3)           Claims
or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory
nonconsensual Liens;

 

16

 

(4)           Liens
resulting from final judgments or orders described in Section 8.1.6 [Final
Judgments or Orders] (to the extent that judgments or orders and related Liens
do not constitute Events of Default under such Section 8.1.6);

 

(xi)           Liens,
security interests, mortgages, or deeds of trust on real estate in conjunction
with purchase contracts for the purchase of the land comprising such real
estate, which secure future payments due to the land sellers at the time of the
sale of the homes on such land and which are contingent on the sale price of
such homes, including (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;

 

(xii)          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

 

(xiii)         Other
Liens securing obligations not in excess of $5,000,000 in the
aggregate, and.

 

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.

 

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.

 

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.

 

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.

 

17

 

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.

 

Purchase
Money Mortgage shall mean any non-recourse mortgages 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: (1) the
total book value thereof shall not at any time exceed $250,000,000, (2) the
term thereof shall be perpetual 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 at any time, (3) such Qualified
Preferred Equity shall not provide the holders with cumulative dividends
rights, and (4) the Borrower shall have disclosed to the Agent the terms
of such Qualified Preferred Equity prior to the issuance thereof.

 

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,” “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.

 

18

 

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 Investment that
constitutes a Subsidiary Investment in any Non-Restricted Person.

 

Restricted
Payments shall mean

 

(i)            Dividends and Capital Stock
Retirement payments after January 31, 2001 by Hovnanian or otherwise to
the shareholders of Hovnanian; and

 

19

 

(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, 2001; 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” 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.

 

Revolving
Credit Commitment Increase Date shall have the meaning
assigned to such term in Section 2.12 [Increases in Revolving Credit
Commitments.]

 

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 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.

 

20

 

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 Purchase Money Mortgages and (ii) Subordinated
Debt.

 

Senior Notes shall mean the (i) $150,000,000
principal amount 10 1/2% Senior Notes of the Borrower and guaranteed by
Hovnanian due October 2007; (ii) $100,000,000 principal amount 8.0%
Senior Notes of the Borrower due April 2012 and guaranteed by
Hovnanian;  (iii) $215,000,000
principal amount 6.50% Senior Notes of the Borrower due January 2014 and
guaranteed by Hovnanian; (iv) $150,000,000 principal amount 6.375% Senior
Notes of the Borrower due 2014 and guaranteed by Hovnanian; and (v) 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) and (ii) 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.

 

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

 

21

 

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) 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 (x) loans to such Person by Hovnanian or a Restricted
Subsidiary and (y) 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 in
the form of Exhibit 1.1(S) 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, 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.

 

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

 

22

 

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”;

 

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

 

23

 

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.

 

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

 

24

 

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) the
Borrower shall be in compliance with the covenant contained in the first
sentence of Section 7.2.10 [Borrowing Base] (provided that the
requirements of such Section 7.2.10 shall apply only if the Investment
Grade Period is not in effect).  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.

 

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 the Revolving Facility Usage
shall not exceed the Revolving Credit Commitments of all the Lenders.  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 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                     Voluntary
Reduction of Commitment

 

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

 

25

 

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
reduced to an amount less than $550,000,000) 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.

 

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 commitment 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 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

 

26

 

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 LIBO-Rate Option applies or the conversion to or the renewal
of the LIBO-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 applies or the last day of the preceding Interest
Period with respect to the conversion to the Base 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 LIBO-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 applies; (iii) whether the
LIBO-Rate Option or Base 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 LIBO-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
[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

 

27

 

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 Letters
of Credit Outstanding 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

 

28

 

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.

 

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.  Each Letter of Credit shall
have a maximum stated maturity of no later than one (1) Business Day prior
to the 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,
$500,000,000.

 

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 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,

 

29

 

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.

 

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].

 

30

 

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 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 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.

 

31

 

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];

 

(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;

 

32

 

(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”).

 

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

 

33

 

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.

 

Each Letter of Credit Lender shall furnish to
the Agent 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.

 

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, 2005
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 4 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 80% Lenders] shall apply.

 

34

 

2.10.2.           Approval by 80% 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 80% 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
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.

 

35

 

(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 $5,000,000 (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 $5,000,000
(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.

 

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] (provided that the requirements of such Section 7.2.10
shall apply only if the Investment Grade Period is not in effect); 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

 

36

 

Subsidiary shall automatically become a Non-Restricted Person.  Such designation as a Non-Restricted Person
shall, with respect 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] (provided that the requirements of such Section 7.2.10
shall apply only if the Investment Grade Period is not in effect); 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.

 

2.12                        Increase in Commitments.

 

2.12.1              Increasing
Lenders and New Lenders.

 

The Borrower may, at any time prior to the
second anniversary of the Closing Date, request that (1) the current Lenders
(the “Existing Lenders”) increase their Revolving Credit Commitments (any
Existing Lender which elects to increase its Revolving Credit Commitment shall
be referred to as an “Increasing Lender”) or (2) one or more new banks
(each a “New Lender”) join this Agreement and provide a Revolving Credit
Commitment hereunder, subject to the following terms and conditions:

 

(i)                                     No
Obligation to Increase.  No Existing
Lender shall be obligated to increase its Revolving Credit Commitment and any
increase in the Revolving Credit Commitment by any Existing Lender shall be in
the sole discretion of such Existing Lender.

 

(ii)                                  Defaults.  There shall exist no
Events of Default or Potential Default on the effective date of such increase
(the “Revolving Credit Commitment Increase Date”) after giving effect to such
increase.

 

(iii)                               Aggregate
Revolving Credit Commitments.  After
giving effect to such increase, the total Revolving Credit Commitments shall
not exceed $1,300,000,000.

 

(iv)                              Minimum
Revolving Credit Commitments.  After
giving effect to such increase, the amount of the Revolving Credit Commitments
provided by each of the New Lenders and each of the Increasing Lenders shall be
at least $20,000,000; and

 

37

 

(v)                                 Resolutions;
Opinion.  The Loan Parties shall
deliver to the Agent on or before the Revolving Credit Commitment Increase Date
the following documents in a form reasonably acceptable to the Agent: (1) certifications
of their corporate secretaries with attached resolutions certifying that the
increase in the Revolving Credit Commitment has been approved by such Loan
Parties, and (2) an opinion of counsel addressed to the Agent and the
Lenders addressing the authorization and execution of the Loan Documents by,
and enforceability of the Loan Documents against, the Loan Parties.

 

(vi)                              Notes.  The Borrower shall execute and deliver (1) to
each Increasing Lender a replacement Note (except if such Increasing Lender
requests that it not receive a Note) reflecting the new amount of such
Increasing Lender’s Revolving Credit Commitment after giving effect to the
increase (and the prior Note issued to such Increasing Lender shall be deemed
to be terminated) and (2) to each New Lender a Note (except if such New
Lender requests that it not receive a Note) reflecting the amount of such New
Lenders’ Revolving Credit Commitment.

 

(vii)                           Approval.  The Agent shall have approved of such
increase (such approval not to be unreasonably withheld) and the Increasing
Lender or New Lender, as the case may be, that is providing such increase.

 

(viii)                        Increasing
Lenders.  If any portion of the
increase in Revolving Credit Commitments is being provided by one or more
Increasing Lenders, then such Increasing Lenders shall confirm their agreement
to increase their Revolving Credit Commitment pursuant to a Revolving Credit
Commitment Increase Agreement in substantially the form of Exhibit 2.12.1-1
attached hereto signed by them and the Loan Parties and delivered to the Agent
at least five (5) Business Days before the Revolving Credit Commitment
Increase Date.

 

(ix)                              New Lenders—Joinder.  If the Borrower desires that one or more New
Lenders provide all or a portion of such increase in Revolving Credit
Commitments, then each New Lender, the Loan Parties and the Agent shall execute
a Lender Joinder and Assumption Agreement in substantially the form of Exhibit 2.12.1-2
hereto, pursuant to which the New Lender shall join and become a party to this
Agreement and the other Credit Documents effective on the Revolving Credit
Commitment Increase Date with a Revolving Credit Commitment in the amount set
forth in Schedule I to such Lender Joinder and Assumption Agreement.

 

2.12.2              Treatment
of Outstanding Loans and Letters of Credit.

 

2.12.2.1                                                    Repayment
of Outstanding Loans; Borrowing of New Loans.

 

On the Revolving Credit Commitment Increase
Date, the Borrower shall repay all Loans outstanding on the Revolving Credit
Commitment Increase Date, subject to the Borrower’s indemnity obligations under
Section 4.6.2 [Indemnity] provided that it may borrow new Loans with a
Borrowing Date on the Revolving Credit Commitment Increase Date. Each of the
Lenders shall participate in any new Loans made on or after the Revolving

 

38

 

Credit Commitment Increase Date in accordance with their respective
Ratable Shares after giving effect to the increase in Revolving Credit
Commitments contemplated by this Section 2.12.

 

2.12.2.2                                                    Outstanding
Letters of Credit.

 

On the Commitment Increase Date, each
Increasing Lender and each New Lender (a) will be deemed to have purchased
a participation in each then outstanding Letter of Credit equal to its Ratable
Share of each such Letter of Credit and the participation of each other Lender
in each such Letter of Credit shall be adjusted accordingly and (b) will
acquire, (and will pay to the Agent, for the account of each Lender, in
immediately available funds, an amount equal to) its Ratable Share of all
outstanding Participation Advances.

 

3.                                      INTEREST
RATES

 

3.1                               Interest
Rate Options.

 

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 or LIBO-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 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.

 

3.1.1.                  Revolving
Credit Interest Rate Options.

 

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 LIBO-Rate Option:  A rate per
annum (computed on the basis of a year of 360 days and actual days elapsed)
equal to the LIBO-Rate plus the Applicable Margin.

 

39

 

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.

 

3.2                               Interest
Periods.

 

At any time when the Borrower shall select,
convert to or renew a LIBO-Rate Option, the Borrower shall notify the Agent
thereof at least three (3) Business Days prior to the effective date of
such LIBO-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 LIBO-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                               LIBO-Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available.

 

3.4.1.                  Unascertainable.

 

If on any date on which a LIBO-Rate would
otherwise be determined, the Agent shall have determined that:

 

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

 

40

 

(ii)                                  a
contingency has occurred which materially and adversely affects the London
interbank eurodollar market relating to the LIBO-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 LIBO-Rate Option applies
has been made impracticable or unlawful by compliance by such Lender in 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 LIBO-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 LIBO-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 LIBO-Rate Option
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 LIBO-Rate Option 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 LIBO-Rate

 

41

 

Option 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 LIBO-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

 

4.1                               Payments.

 

All payments and prepayments to be made in
respect of principal, interest, Commitment Fees, Letter of Credit Fees, Agent’s
Fees 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 Fees) 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 [LIBO-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,

 

42

 

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 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 LIBO-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.

 

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
LIBO-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 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 applies or (iii) $2,500,000 and in increments of $500,000 for any
Revolving Credit Loan to which the LIBO-Rate Option applies.

 

43

 

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, and then to Loans to which the LIBO-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.

 

In the event any Lender (i) gives notice
under Section 3.4 [LIBO-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 [LIBO-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 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].

 

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

 

44

 

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.

 

The Borrower shall make mandatory payments of
principal (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 80% Lenders] or otherwise) within
three (3) Business Days after such excess is calculated.

 

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

 

45

 

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 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.

 

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 LIBO-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 LIBO-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.

 

46

 

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.

 

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.

 

47

 

5.1.2.                  Subsidiaries.

 

As of the Closing Date, Schedule 5.1.2
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 5.1.2 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, 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 5.1.2 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.

 

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.

 

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

 

48

 

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.

 

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,
2004(the “Annual Statements”) and unaudited consolidated quarter-end financial
statements for and as of the end of the fiscal quarter ended January 31, 2005.  (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, 2009 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).

 

49

 

(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, 2004, 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 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

 

50

 

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.

 

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.

 

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

 

51

 

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.

 

(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

 

52

 

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.

 

53

 

 

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
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              Anti-Terrorism
Laws.

 

None of the Loan Parties nor or any Affiliate of any Loan Party,  is in violation of any Anti-Terrorism Law or
engages in or conspires 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 any Anti-Terrorism Law.

 

5.1.23.1                                                Executive
Order No. 13224.

 

None of the Loan Parties, nor or any Affiliate of any Loan Party,  or their respective agents acting or
benefiting in any capacity in connection with the Loans, Letters of Credit or
other transactions hereunder, is any of the following (each a “Blocked Person”):

 

(i)            a Person that is
listed in the annex to, or is otherwise subject to the provisions of, the
Executive Order No. 13224;

 

(ii)           a Person owned or
controlled by, or acting for or on behalf of, any Person that is listed in the
annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224;

 

(iii)          a Person or entity
with which any Lender is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law;

 

(iv)          a Person or entity
that commits, threatens or conspires to commit or supports “terrorism” as
defined in the Executive Order No. 13224;

 

(v)           a Person or entity
that is named as a “specially designated national” on the most current list
published by the U.S. Treasury Department Office of Foreign Asset Control at
its official website or any replacement website or other replacement official
publication of such list, or

 

(vi)          a Person or entity
who is affiliated or associated with a person or entity listed above. 

 

No Loan Party or to the knowledge of any Loan Party, any of its agents
acting in any capacity in connection with the Loans, Letters of Credit or other
transactions hereunder (i) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person, or (ii) deals in, or otherwise engages in any
transaction

 

54

 

relating to, any property or interests in property blocked pursuant to
the Executive Order No. 13224.

 

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;

 

55

 

(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 and
specifying the Authorized Officers permitted to act on behalf of each Loan
Party for purposes of this Agreement and the true signatures of such officers,
on which the Agent and each Lender may conclusively rely; and

 

(iii)          as
to Hovnanian and the Borrower only, 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 and the
other Loan Documents shall have been duly executed and delivered by Hovnanian
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 a written opinion of Peter Reinhart, Esquire, in-house
counsel for the Loan Parties, dated the Closing Date and in form and substance
reasonably satisfactory to the Agent and its counsel.

 

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.

 

56

 

6.1.8.                  Officer’s
Certificate Regarding MACs.

 

Since October 31, 2004, 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 Borrower shall have delivered
satisfactory results of a lien search to the Agent evidencing no liens on
Hovnanian or the Borrower which are not Permitted Liens.

 

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

 

57

 

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 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.

 

58

 

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 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

 

59

 

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 (i) conduct
any business or engage in any transaction or dealing with any Blocked Person,
including the making or receiving any contribution of funds, goods or services
to or for the benefit of any Blocked Person, (ii) deal in, or otherwise
engage in any transaction relating to, any property or interests in property
blocked pursuant to the Executive Order No. 13224; or (iii) 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 requested from
time to time by any Lender in its reasonable discretion, confirming Borrower’s
compliance with this Section 7.1.11.

 

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.

 

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

 

60

 

permitted by Section 7.2.6
[Restricted Payments; Restricted Investments; Investments in Related
Businesses], Restricted Investments and Investments in Related Businesses.

 

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;

 

61

 

(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.

 

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 Subsidiary; 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 ATNW], 7.2.12
[Leverage Ratio], and 7.2.13 [Fixed Charge Coverage Ratio]) 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;

 

62

 

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, 2001 which exceed in the aggregate
the sum of:

 

(i)            $45,000,000;

 

(ii)           50%
of net income of Hovnanian (calculated and consolidated in accordance with
GAAP) for all fiscal quarters commencing on February 1, 2001 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, 2001 and
thereafter.

 

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    The Loan Parties shall not pay or make any
Restricted Payment in respect of Dividends or 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 existing on the
Closing Date shall not engage in any business other than the homebuilding
business.  Each of the Loan Parties

 

63

 

organized or acquired after the
Closing Date 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.

 

At any time that the Investment Grade Period
is not in effect, 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 Borrowing Base at such
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 Senior
Homebuilding Indebtedness sufficient to reduce to zero ($0) on such date any
such excess.

 

7.2.11.   Minimum
ATNW.

 

The Loan Parties shall not permit Adjusted
Tangible Net Worth as of the last day of any fiscal quarter to be less than the
sum of: (i) $696,402,000 and (ii) 50% of Hovnanian’s consolidated net
income (calculated and consolidated in accordance with GAAP) for each fiscal
quarter commencing on February 1, 2005 and thereafter in which net income
was earned (as opposed to a net loss), (iii) 50% 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 on February 1, 2005 and thereafter.

 

7.2.12.   Leverage
Ratio.

 

The Loan Parties shall not permit the
Leverage Ratio as of the last day of any fiscal quarter to exceed 2.25 to 1.0.

 

7.2.13.   Fixed
Charge Coverage  Ratio.

 

The Loan Parties shall not permit the Fixed
Charge Coverage Ratio as of the last day of any fiscal quarter to be less than
the 1.75 to 1.0 for each of any two (2) consecutive fiscal quarters if the
second such fiscal quarter constitutes a High Leverage Period.

 

64

 

7.2.14.   Inventory
Limits.

 

At any time when the Investment
Grade Period is not in effect, the Loan Parties shall not permit:

 

(i)            The
Dollar value of Unentitled Land to exceed twenty percent (20%) of the sum of
Adjusted Tangible Net Worth and the principal amount of the Subordinated Debt,
as calculated as of the end of each fiscal quarter;

 

(ii)           The
Dollar value of Finished Lots and Land under Development plus Unentitled Land
to exceed the sum of Adjusted Tangible Net Worth and the principal amount of
the Subordinated Debt, as calculated as of the end of each fiscal quarter; or

 

(iii)          The
number of Unsold Dwelling Units existing as of the end of any fiscal quarter to exceed 25% of the number of Dwelling
Units conveyed by any Person who is a Loan Party on the date of determination
or any Person that was acquired and merged or consolidated with and into a
Person who is a Loan Party on the date of determination to third party
purchasers within the previous twelve (12) months.

 

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.

 

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

 

65

 

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 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, in the form
of Exhibit 7.3.3.1 (each a “Compliance Certificate”), to the effect
that, except as described pursuant to Section 7.3.3.2 [Borrowing Base
Certificate], (i) the representations and warranties of the Borrower
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

 

66

 

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.

 

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, in the form of Exhibit 7.3.3.2, to the effect that,
except as described pursuant to Section 7.3.4 [Notice of Default], no
Event of Default or Potential Default exists 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. 
The Borrower shall be required to deliver a Borrowing Base Certificate
as of the end of a month even if the Investment Grade Period is in effect as of
such month-end.

 

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

 

67

 

against any Loan Party that
involve a claim or series of claims in excess of $1,000,000 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
Standard & Poor’s, Moody’s or Fitch 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.

 

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,

 

68

 

(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 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):

 

69

 

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 ATNW], 7.2.12 [Leverage Ratio], 7.2.13 [Fixed
Charge Coverage Ratio] or 7.2.14 [Inventory and Land Purchase 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 $10,000,000 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 $10,000,000 in 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;

 

70

 

8.1.6.                  Final
Judgments or Orders.

 

Any final judgments or orders for the payment
of money in excess of $10,000,000 in the aggregate (excluding amounts covered
by insurance with respect to which the relevant insurer acknowledged 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 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
$10,000,000 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;

 

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

 

71

 

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 exceed 10% of the Consolidated Tangible Net Worth of the
Loan Parties; (v) any “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.           Cessation of Business.

 

Any Loan Party is enjoined, restrained or in
any way prevented by court order from conducting all or any material part of
its business and such injunction, restraint or other preventive order is not
dismissed within thirty (30) days after the entry thereof and any of the
foregoing could reasonably be expected to constitute a Material Adverse Change;

 

8.1.13.           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;

 

8.1.14.           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

 

72

 

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

 

8.1.15.           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.

 

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

 

73

 

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 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’

 

74

 

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
[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

 

75

 

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) 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

 

76

 

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

 

77

 

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 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.

 

78

 

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.”

 

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.

 

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 term “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.

 

79

 

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 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.

 

80

 

9.15                        Agent’s
Fees.

 

The Borrower shall pay to the Agents nonrefundable fees (the “Agent’s
Fees”) under the terms of a letters (the “Agent’s Letters”) between the
Borrower and Agents, 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.

 

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.

 

81

 

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 Commitment.

 

Increase the amount of the aggregate
Revolving Credit Commitments;

 

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

 

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;

 

10.1.3.           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 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.

 

82

 

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 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

 

83

 

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 LIBO-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 LIBO-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

 

84

 

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.

 

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.

 

85

 

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 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 Jersey without regard to its conflict of laws principles, and the
balance of this Agreement shall be deemed to be a contract under the Laws of
the State of New Jersey and for all purposes shall be governed by and construed
and enforced in accordance with the internal laws of the State of New Jersey
without regard to its conflict of laws principles.

 

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.

 

86

 

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 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 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].

 

87

 

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.

 

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.

 

88

 

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 SUPERIOR COURT OF
NEW JERSEY, LAW DIVISION, MIDDLESEX COUNTY AND THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY 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.

 

89

 

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

 

90

 

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.

 

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.

 

All of the terms, conditions, provisions and covenants in the Prior
Credit Agreement, the Notes and other Loan Documents delivered in connection
therewith, and all other documents delivered to the Agent and the Lenders in
connection with any of the foregoing documents and obligations evidenced or
secured thereby shall remain unaltered and in full force and effect and are
hereby ratified and confirmed in all respects, except as specifically modified
herein.  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 existing Loan Documents.

 

91

 

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. 

 

[SIGNATURES CONTINUED ON NEXT
PAGE]

 

92

 

[SIGNATURE PAGE 1 OF 27 TO THE CREDIT AGREEMENT]

 

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

 

	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief

  Financial Officer

  
				

 

 

[SIGNATURE PAGE 2 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
  as Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Douglas G. Paul

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 3 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  John D. Powers

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  John D. Powers

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 4 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Mark W. Lariviere

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark W. Lariviere

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 5 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  J.P. MORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Michael P. O’Keefe

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Michael P. O’Keefe

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Associate

  

 

 

[SIGNATURE PAGE 6 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND

  plc

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  David Apps

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  David Apps

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 7 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Jeff V. Aycock

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jeff V. Aycock

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  
				

 

 

[SIGNATURE PAGE 8 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  GUARANTY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Randy Reid

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Randy Reid

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 9 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  W. John Wendler

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  W. John Wendler

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 10 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Michael Raarup

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Michael Raarup

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 11 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Duane Helkowski

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Duane Helkowski

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Simone Vinocour

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Simone Vinocour

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 12 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  CALYON NEW YORK BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Attila Coach

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Attila Coach

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  James Gibson

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  James Gibson

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Managing Director

  

 

 

[SIGNATURE PAGE 13 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Charles Weddell

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Charles Weddell

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 14 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  WASHINGTON MUTUAL BANK, FA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Paul S. Ulrich

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Paul S. Ulrich

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 15 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  EMIGRANT SAVINGS BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Patricia Goldstein

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Patricia Goldstein

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Executive V.P. and

  Chief Credit Officer

  
				

 

 

[SIGNATURE PAGE 16 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Brian Gallagher

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Brian Gallagher

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 17 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  CITICORP NORTH AMERICA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Jeanne M. Craig

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Jeanne M. Craig

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 18 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  T. Gregory Donahue

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  T. Gregory Donahue

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 19 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  AMSOUTH BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Ronny Hudspeth

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Ronny Hudspeth

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
				

 

 

[SIGNATURE PAGE 20 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Gary L. Roberts

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Gary L. Roberts

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 21 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Bill O’Daly

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Bill O’Daly

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Cassandra Droogan

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Cassandra Droogan

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Associate

  

 

 

[SIGNATURE PAGE 22 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Wilfred V. Saun

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Wilfred V. Saun

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Joselin Fernandes

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Joselin Fernandes

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Associate Director

  

 

 

[SIGNATURE PAGE 23 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  LASALLE BANK NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Leticia Ruiz

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Leticia Ruiz

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

[SIGNATURE PAGE 24 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  CITY NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Mary Bowman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Mary Bowman

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 25 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  CALIFORNIA BANK & TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Stephanie L. Lantz

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Stephanie L. Lantz

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  
				

 

 

[SIGNATURE PAGE 26 OF 27 TO THE CREDIT AGREEMENT]

 

	
   

  	
  COMPASS BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  	
  Johanna Duke Paley

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Johanna Duke Paley

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

[SIGNATURE PAGE 27 OF 27 TO THE CREDIT AGREEMENT]

 

	
  ACCEPTED AND AGREED:

  
	
   

  	
   

  	
   

  
	
  HOVNANIAN ENTERPRISES, INC.

  
	
  as a Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  
	
  Name: 

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice President and

  	
   

  
	
   

  	
  Chief Financial Officer

  	
   

  
									

 

 

SCHEDULE 1.1(A)(1)

 

PRICING
GRID—

VARIABLE
PRICING AND FEES

 

(expressed in basis points)

 

The following Grid shall apply based on the rating of Hovnanian’s
senior unsecured long-term debt (i.e. based on whether the Investment Grade
Period is in effect) and the Leverage Ratio.

 

	
  Level

  	
   

  	
  Investment Grade Period

  	
   

  	
  Leverage Ratio

  	
   

  	
  Commitment

  Fee (1)

  	
   

  	
  Base Rate Spread

  	
   

  	
  LIBO-Rate Spread

  	
   

  
	
   

  	
   

  	
  In effect

  	
   

  	
  Any Level

  	
   

  	
  20

  	
   

  	
  0

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
   

  	
   

  	
  Less than or equal to 1.0
  to 1.0

  	
   

  	
  20

  	
   

  	
  0

  	
   

  	
  105

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II

  	
   

  	
   

  	
   

  	
  Greater than 1.0 to 1.0 but
  less than or equal to 1.25 to 1.0

  	
   

  	
  25

  	
   

  	
  0

  	
   

  	
  125

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III

  	
   

  	
   

  	
   

  	
  Greater than 1.0 to 1.25
  but less than or equal to 1.75 to 1.0

  	
   

  	
  25

  	
   

  	
  0

  	
   

  	
  145

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV

  	
   

  	
   

  	
   

  	
  Greater than 1.75 to 1.0
  but less or equal to 2.00

  	
   

  	
  25

  	
   

  	
  0

  	
   

  	
  170

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V

  	
   

  	
   

  	
   

  	
  Greater than 2.0 to 1.0

  	
   

  	
  30

  	
   

  	
  0

  	
   

  	
  195

  	
   

  

 

(1)                             The
Commitment Fee set forth in the grid at each level shall be increased by 10
basis points for any calendar quarter if both (i) the Average Daily Usage
Percentage in such quarter is less than 25%, and (ii) the Average Daily
Usage Percentage in the immediately preceding calendar quarter was less than
25%.

 

For purposes of determining the Applicable Margin and the Applicable
Commitment Fee Rate:

 

(a)           The Applicable
Margin and the Applicable Commitment Fee Rate shall be determined on the
Closing Date based on the Leverage Ratio computed as of January 31, 2005
pursuant to a Compliance Certificate to be delivered on the Closing Date.

 

(b)           The Applicable
Margin and the Applicable Commitment Fee Rate shall be recomputed as of January 31,
2005 and the end of each subsequent fiscal quarter based on the Leverage Ratio
as of such quarter end.  Any increase or
decrease in the Applicable Margin or the Applicable Commitment Fee Rate
computed as of a quarter end shall be effective on the date on

 

(A) - 1

 

which the Compliance
Certificate evidencing such computation is due to be delivered under Section 7.3.3,
except that if the Applicable Margin and the Applicable Commitment Fee Rate
change as a result of a change in the rating of Hovnanian’s senior unsecured
long-term debt, such change shall occur on the effective date of such change in
the rating, provided that any reduction in the Applicable Margin and the
Applicable Commitment Fee Rate resulting from a change in such rating shall not
occur until the Borrower has notified the Agent of such change.

 

(A) - 2

 

SCHEDULE 1.1(A)(2)

AUTHORIZED OFFICERS AS OF THE CLOSING DATE

 

J.
Larry Sorsby, Executive Vice President and Chief Financial Officer

 

Peter
Reinhart, Senior Vice President and General Counsel

 

Paul
Buchanan, Senior Vice President and Corporate Controller

 

Kevin
C. Hake, Senior Vice President and Treasurer

 

Brad
O’Connor, Vice President and Associate Corporate Controller

 

Nancy
Marrazzo, Assistant Vice President and Assistant Treasurer

 

(A) - 3

 

SCHEDULE
1.1(B)

 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

(Amended and Restated June 14, 2005)

 

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):

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PNC Bank, National Association

  	
   

  	
  $

  	
  85,000,000

  	
   

  	
  7.0833333

  	
  %

  
	
  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:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  85,000,000

  	
   

  	
  7.0833333

  	
  %

  
	
  Address for Notices:

  231 S. LaSalle Street

  Mail Code IL 1-231-10-35

  Chicago, IL 60697

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mark Lariviere

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (312) 828-2513

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 1

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  85,000,000

  	
   

  	
  7.0833333

  	
  %

  
	
  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:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  82,000,000

  	
   

  	
  6.8333333

  	
  %

  
	
  Address for Notices:

  131 South Dearborn, Floor 5

  Chicago, IL 60603

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Kenneth Nelson

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (312) 325-3129

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (312) 325-3122 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:
131 South Dearborn, Floor 5

  Chicago, IL 60603

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Josh Barcelona

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (312) 385-7015

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (312) 385-7101

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 2

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Royal Bank of Scotland plc

  	
   

  	
  $

  	
  82,000,000

  	
   

  	
  6.8333333

  	
  %

  
	
  Address for Notices:

  101 Park Avenue, 12th Floor

  New York, New York 10178

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  David Apps

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (212) 401-3745

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 401-3456

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  101 Park Avenue, 12th Floor

  New York, New York 10178

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Caroline Cancel

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (212) 401-1407

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 401-1494

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  KeyBank National Association

  	
   

  	
  $

  	
  73,000,000

  	
   

  	
  6.0833333

  	
  %

  
	
  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) 510-2197

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 3

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guaranty Bank

  	
   

  	
  $

  	
  57,000,000

  	
   

  	
  4.7500000

  	
  %

  
	
  Address for Notices:

  8333 Douglas Avenue

  Dallas, Texas 75225 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Randall S. Reid

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (214) 360-2735

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (214) 360-4892

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  8333 Douglas Avenue

  Dallas, Texas 75225

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Jill Fallows

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (214) 360-1681

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (214) 360-1661

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SunTrust Bank 

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  4.1666666

  	
  %

  
	
  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

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 4

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  U.S. Bank National Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  4.1666666

  	
  %

  
	
  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 Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BNP PARIBAS 

  	
   

  	
  $

  	
  47,000,000

  	
   

  	
  3.9166666

  	
  %

  
	
  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:

  	
  Duane Helkowski 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (212) 841-2940 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 841-3830

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 5

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CALYON New York Branch 

  	
   

  	
  $

  	
  47,000,000

  	
   

  	
  3.9166666

  	
  %

  
	
  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:

  1301 Avenue of the Americas

  New York NY 10019

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  George Lewis

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (212) 261-7641

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 261-7696

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Comerica Bank 

  	
   

  	
  $

  	
  47,000,000

  	
   

  	
  3.9166666

  	
  %

  
	
  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) 222-9295

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 6

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Washington Mutual Bank, FA 

  	
   

  	
  $

  	
  45,000,000

  	
   

  	
  3.7500000

  	
  %

  
	
  Address for Notices:

  620 W. Germantown Pike

  Plymouth Meeting, PA 19462

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Paul Ulrich

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (610) 238-6929

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (610) 828-7293

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Emigrant Savings Bank 

  	
   

  	
  $

  	
  42,000,000

  	
   

  	
  3.5000000

  	
  %

  
	
  Address for Notices:

  335 Madison Avenue, Floor 15

  New York, NY 10017

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Tom Devine

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (212) 850-4827

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 850-4608 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  5 East Forty-Second Street

  6th Floor

  New York, NY 10017

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Rosemary Granza

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (212) 850-4608

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 850-4811

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 7

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citicorp North America, Inc.

  	
   

  	
  $

  	
  42,000,000

  	
   

  	
  3.5000000

  	
  %

  
	
  Address for Notices:

  390 Greenwich Street

  New York, NY 10013

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Thomas Flanagan

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (212) 723-6927

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (646) 862-8866 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  Two Penn’s Way

  First Floor

  New Castle, DE 19720

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Lenora Durant

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (302) 894-6062

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (212) 994-0849

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National City Bank 

  	
   

  	
  $

  	
  38,000,000

  	
   

  	
  3.1666666

  	
  %

  
	
  Address for Notices:

  One South Broad Street

  13th Floor

  Philadelphia, PA 19107

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Brian Gallagher

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (267) 256-4088

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (267) 256-4001 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  One South Broad Street, 13th Floor

  Philadelphia, PA 19107

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Marie Pascale

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (267) 256-4042

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (267) 256-4001

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 8

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sovereign Bank 

  	
   

  	
  $

  	
  33,000,000

  	
   

  	
  2.7500000

  	
  %

  
	
  Address for Notices:

  75 State Street

  Mail Code MA1 SST 04-11

  Boston, MA 02109

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Erin Aslakson

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (617) 757-5564

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (617) 757-5652

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AmSouth Bank 

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  2.5000000

  	
  %

  
	
  Address for Notices:

  1900 5th Avenue North

  Birmingham, AL 35203

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Ronny Hudspeth 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (205) 307-4227

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (205) 801-0138 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  1900 5th Avenue North

  Birmingham, AL 35203

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Ronny Hudspeth 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (205) 307-4227

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (205) 801-0138

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 9

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Union Bank of California, N.A.

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  2.5000000

  	
  %

  
	
  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 Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse, Cayman Islands
  Branch 

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  2.5000000

  	
  %

  
	
  Address for Notices:

  Eleven Madison Avenue

  New York, NY 10010

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Williams 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

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 10

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Loan Finance LLC 

  	
   

  	
  $

  	
  30,000,000

  	
   

  	
  2.5000000

  	
  %

  
	
  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 Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National
  Association 

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.0833333

  	
  %

  
	
  Address for Notices:

  610 Newport Center Drive

  Suite 660

  Newport Beach, CA 92660

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention: 

  	
  Leticia Ruiz

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (949) 219-8968

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (949) 219-8977 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  135 South LaSalle

  Chicago, IL 60603

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Gloria Favela 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (312) 904-5417

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (312) 904-6691

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 11

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  City National Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.0833333

  	
  %

  
	
  Address for Notices:

  2001 No. Main Street, Suite 200

  Walnut Creek, CA 94596

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Mary Bowman 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  (925) 274-2793 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (925) 274-2758 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  9701 Wilshire Boulevard

  Suite 600

  Beverly Hills, CA 90212

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Laurel Burns 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (310) 888-6484

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (310) 888-6493

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  California Bank &
  Trust 

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  1.6666666

  	
  %

  
	
  Address for Notices:

  2929 N. Central Avenue

  Suite 1200

  Phoenix, AZ 85012

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
  Stephanie L. Lanty 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B) - 12

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable
  Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Compass Bank 

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  1.6666666

  	
  %

  
	
  Address for Notices:

  15 South 20th Street

  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:

  	
  Johanna Duke Paley 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (205) 297-3851

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telecopy:

  	
  (205) 297-7994

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,200,000,000

  	
   

  	
  100

  	
  %

  

 

(B) - 13

 

	
  AGENT

  	
   

  
	
  Name:

  	
  Douglas G. Paul, Senior Vice President

  	
   

  
	
  Address:

  	
  PNC Bank, National Association

  	
   

  
	
   

  	
  Two Tower Center, 18th Floor

  	
   

  
	
   

  	
  East Brunswick, New Jersey 08816

  	
   

  
	
  Telephone:

  	
  (732) 220-3566

  	
   

  
	
  Telecopy:

  	
  (732) 220-3744

  	
   

  
	
   

  	
   

  
	
  BORROWER:

  	
   

  
	
  Name:

  	
  K. HOVNANIAN ENTERPRISES, INC.

  	
   

  
	
  Address:

  	
  10 Route 35, P.O. Box 500

  	
   

  
	
   

  	
  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.

  	
   

  
	
   

  	
  10 Route 35, P.O. Box 500

  	
   

  
	
   

  	
  Red Bank, NJ 07701

  	
   

  
	
  Attention:

  	
  Kevin C. Hake

  	
   

  
	
  Telephone:

  	
  (732) 747-7800

  	
   

  
	
  Telecopy:

  	
  (732) 747-6835

  	
   

  

 

(B) - 14

 

SCHEDULE 1.1(C)

LISTING OF RESTRICTED SUBSIDIARIES, JOINT
VENTURES,

MORTGAGE SUBSIDIARIES AND NON-RESTRICTED PERSONS

 

See Schedule 5.1.2.

 

 

SCHEDULE 1.1(E)

INCOME PRODUCING PROPERTIES

 

1.     96 unit
rental property located at Ocean, New Jersey, know as Whalepond Village.

 

2.     75 unit rental property located at Mahwah,
New Jersey, know as Norfolk Village.

 

 

SCHEDULE 1.1(P)

PERMITTED LIENS

 

None.

 

 

Schedule
2.9.1

 

	
   

  	
   

  	
  6/20/2005

  	
   

  	
  K.
  HOVNANIAN ENTERPRISES

  
	
   

  	
   

  	
   

  	
   

  	
  LETTERS
  OF CREDIT

  
	
   

  	
   

  	
   

  	
   

  	
  AS OF
  06/14/04

  

 

	
  Perf.or

  Financial

  	
   

  	
  LC No.

  	
   

  	
  BENEFICIARY

  	
   

  	
  CURRENT

  AMOUNT

  	
   

  	
  DATE

  ISSUED

  	
   

  	
  EXPIRY

  DATE

  	
   

  
	
  Fin.

  	
   

  	
  201811

  	
   

  	
  Reliance
  Insurance Co.

  	
   

  	
  $

  	
  121,771.00

  	
   

  	
  2/7/1995

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  201812

  	
   

  	
  Township
  of Upper Makefield

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  3/1/1995

  	
   

  	
  3/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  201813

  	
   

  	
  Township
  of Upper Makefield

  	
   

  	
  $

  	
  169,391.63

  	
   

  	
  3/2/1995

  	
   

  	
  3/2/2006

  	
   

  
	
  Fin.

  	
   

  	
  201814

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  29,341.00

  	
   

  	
  4/17/1997

  	
   

  	
  4/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201819

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  149,560.00

  	
   

  	
  4/17/1997

  	
   

  	
  4/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201820

  	
   

  	
  Township
  of Mahwah

  	
   

  	
  $

  	
  30,000.00

  	
   

  	
  12/17/1996

  	
   

  	
  12/17/2005

  	
   

  
	
  Perf.

  	
   

  	
  201821

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  9,201.72

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201822

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  19,304.24

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201823

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  8,164.80

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  201824

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  10,292.50

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  201828

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  7,678.08

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201829

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  30,029.51

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201830

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  84,329.06

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201831

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  6,300.00

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201832

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  6,283.49

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  201833

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  24,448.34

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  204048

  	
   

  	
  Orloff,
  Lowenbach, Stifelman, etc.

  	
   

  	
  $

  	
  375,000.00

  	
   

  	
  10/28/1997

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  207799

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  90,728.04

  	
   

  	
  4/22/1998

  	
   

  	
  4/22/2006

  	
   

  
	
  Perf.

  	
   

  	
  208660

  	
   

  	
  Harvard
  Industries, Inc.

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  6/16/1998

  	
   

  	
  6/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  217502

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  121,756.08

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  217533

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  19,342.69

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  217536

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  2,820.51

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  225922

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  20,841.11

  	
   

  	
  1/21/2000

  	
   

  	
  1/21/2006

  	
   

  
	
  Perf.

  	
   

  	
  225923

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  162,164.76

  	
   

  	
  1/21/2000

  	
   

  	
  1/21/2006

  	
   

  
	
  Perf.

  	
   

  	
  229543

  	
   

  	
  Summit
  Ventures LLC

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  5/25/2000

  	
   

  	
  5/25/2006

  	
   

  
	
  Fin.

  	
   

  	
  236140

  	
   

  	
  National
  Union Fire Ins. (etc)

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1/10/2001

  	
   

  	
  10/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  238446

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  319,184.66

  	
   

  	
  5/11/2001

  	
   

  	
  5/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  241202

  	
   

  	
  Delaware
  Valley Tennis Club

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  7/24/2001

  	
   

  	
  7/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  243450

  	
   

  	
  Steadfast
  Insurance Co.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  11/30/2001

  	
   

  	
  10/31/2005

  	
   

  

 

 

	
  Fin.

  	
   

  	
  243452

  	
   

  	
  Zurich
  American Insurance Co.

  	
   

  	
  $

  	
  700,000.00

  	
   

  	
  11/30/2001

  	
   

  	
  10/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  244047

  	
   

  	
  Hackettstown
  Municipal Utilities

  	
   

  	
  $

  	
  87,039.00

  	
   

  	
  12/12/2001

  	
   

  	
  12/12/2005

  	
   

  
	
  Perf.

  	
   

  	
  244279

  	
   

  	
  Martin
  M. & Rachel Weaver

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  12/18/2001

  	
   

  	
  1/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  247101

  	
   

  	
  Essex
  County Improvement Auth.

  	
   

  	
  $

  	
  1,851,212.00

  	
   

  	
  4/23/2002

  	
   

  	
  4/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  250326

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  615,279.14

  	
   

  	
  9/18/2002

  	
   

  	
  9/18/2005

  	
   

  
	
  Perf.

  	
   

  	
  250328

  	
   

  	
  Hackettstown
  Municipal Utilities

  	
   

  	
  $

  	
  231,340.50

  	
   

  	
  7/16/2002

  	
   

  	
  7/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  250329

  	
   

  	
  Hackettstown
  Municipal Utilities

  	
   

  	
  $

  	
  108,246.75

  	
   

  	
  7/16/2002

  	
   

  	
  7/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  251552

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  580,000.00

  	
   

  	
  8/26/2002

  	
   

  	
  7/29/2005

  	
   

  
	
  Perf.

  	
   

  	
  251774

  	
   

  	
  DHF
  Inc

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  9/16/2002

  	
   

  	
  1/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  251992

  	
   

  	
  Commonwealth
  of Pennsylvania

  	
   

  	
  $

  	
  427,581.70

  	
   

  	
  9/12/2002

  	
   

  	
  9/12/2005

  	
   

  
	
  Perf.

  	
   

  	
  252499

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  28,844.75

  	
   

  	
  9/30/2002

  	
   

  	
  9/18/2005

  	
   

  
	
  Perf.

  	
   

  	
  252579

  	
   

  	
  Northampton,
  Bucks County

  	
   

  	
  $

  	
  1,197,443.46

  	
   

  	
  10/3/2002

  	
   

  	
  11/12/2005

  	
   

  
	
  Fin.

  	
   

  	
  252773

  	
   

  	
  Travelers
  Indemnity Company

  	
   

  	
  $

  	
  1,162,000.00

  	
   

  	
  10/11/2002

  	
   

  	
  10/11/2005

  	
   

  
	
  Perf.

  	
   

  	
  253440

  	
   

  	
  Township
  of Cedar Grove

  	
   

  	
  $

  	
  419,865.41

  	
   

  	
  11/18/2002

  	
   

  	
  11/18/2005

  	
   

  
	
  Perf.

  	
   

  	
  253721

  	
   

  	
  Township
  of Northampton

  	
   

  	
  $

  	
  2,242,459.29

  	
   

  	
  11/19/2002

  	
   

  	
  11/20/2005

  	
   

  
	
  Perf.

  	
   

  	
  254272

  	
   

  	
  City
  of Clifton

  	
   

  	
  $

  	
  87,288.42

  	
   

  	
  12/12/2002

  	
   

  	
  12/12/2005

  	
   

  
	
  Perf.

  	
   

  	
  255203

  	
   

  	
  South
  Knolls LLC

  	
   

  	
  $

  	
  2,200,000.00

  	
   

  	
  2/11/2003

  	
   

  	
  2/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  255313

  	
   

  	
  Karr
  Associates

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  2/4/2003

  	
   

  	
  2/4/2006

  	
   

  
	
  Perf.

  	
   

  	
  255567

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  144,787.32

  	
   

  	
  2/24/2003

  	
   

  	
  2/20/2006

  	
   

  
	
  Perf.

  	
   

  	
  255770

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  32,454.00

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  255771

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  134,108.47

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  255772

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  136,323.00

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  255962

  	
   

  	
  K.
  G. Harriman Glen, LLC

  	
   

  	
  $

  	
  543,750.00

  	
   

  	
  3/17/2003

  	
   

  	
  10/1/2005

  	
   

  
	
  Perf.

  	
   

  	
  256808

  	
   

  	
  Lower
  Macungie Township

  	
   

  	
  $

  	
  473,716.69

  	
   

  	
  4/22/2003

  	
   

  	
  4/22/2006

  	
   

  
	
  Perf.

  	
   

  	
  257242

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  1,033,879.65

  	
   

  	
  5/6/2003

  	
   

  	
  12/23/2005

  	
   

  
	
  Perf.

  	
   

  	
  257243

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  201,750.00

  	
   

  	
  5/6/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  257975

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  3,500,000.00

  	
   

  	
  6/9/2003

  	
   

  	
  6/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  258407

  	
   

  	
  Town
  of Monroe

  	
   

  	
  $

  	
  4,223,275.00

  	
   

  	
  6/23/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  258408

  	
   

  	
  Town
  of Monroe

  	
   

  	
  $

  	
  346,500.00

  	
   

  	
  6/23/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  258679

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  99,000.00

  	
   

  	
  7/7/2003

  	
   

  	
  7/7/2006

  	
   

  
	
  Perf.

  	
   

  	
  259021

  	
   

  	
  Coastal
  Banc SSB

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  	
  7/17/2003

  	
   

  	
  7/17/2005

  	
   

  
	
  Perf.

  	
   

  	
  259320

  	
   

  	
  Lehigh
  County Authority

  	
   

  	
  $

  	
  20,385.00

  	
   

  	
  7/30/2003

  	
   

  	
  7/30/2005

  	
   

  
	
  Perf.

  	
   

  	
  259796

  	
   

  	
  Wynmere
  Hunt Associates

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  8/11/2003

  	
   

  	
  8/11/2005

  	
   

  
	
  Perf.

  	
   

  	
  260981

  	
   

  	
  DHF
  Inc.

  	
   

  	
  $

  	
  400,000.00

  	
   

  	
  10/1/2003

  	
   

  	
  10/2/2005

  	
   

  
	
  Perf.

  	
   

  	
  261399

  	
   

  	
  Penny
  Plate Inc.

  	
   

  	
  $

  	
  450,000.00

  	
   

  	
  11/19/2003

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  261489

  	
   

  	
  Four
  Mile Branch Assoc.

  	
   

  	
  $

  	
  275,000.00

  	
   

  	
  12/8/2003

  	
   

  	
  12/8/2005

  	
   

  
	
  Perf.

  	
   

  	
  261841

  	
   

  	
  Town
  of Monroe

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  11/7/2003

  	
   

  	
  1/1/2006

  	
   

  

 

 

	
  Perf.

  	
   

  	
  261918

  	
   

  	
  RTKL
  New Jersey Architects

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  1/2/2004

  	
   

  	
  1/2/2006

  	
   

  
	
  Perf.

  	
   

  	
  262327

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  1,710,650.48

  	
   

  	
  12/3/2003

  	
   

  	
  12/1/2005

  	
   

  
	
  Perf.

  	
   

  	
  263726

  	
   

  	
  Northampton
  Township

  	
   

  	
  $

  	
  40,000.00

  	
   

  	
  1/28/2004

  	
   

  	
  7/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  264657

  	
   

  	
  Millville
  Manor LLC

  	
   

  	
  $

  	
  200,000.00

  	
   

  	
  3/4/2004

  	
   

  	
  3/4/2006

  	
   

  
	
  Perf.

  	
   

  	
  265174

  	
   

  	
  American
  Properties at Chesterfield

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  	
  3/26/2004

  	
   

  	
  3/26/2006

  	
   

  
	
  Perf

  	
   

  	
  266395

  	
   

  	
  Hearthstone
  Multi-Asset

  	
   

  	
  $

  	
  12,956,880.00

  	
   

  	
  5/13/2004

  	
   

  	
  5/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18100073

  	
   

  	
  Harry
  Stanley Pozycki LLC

  	
   

  	
  $

  	
  4,873,066.88

  	
   

  	
  5/25/2004

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf

  	
   

  	
  18100182

  	
   

  	
  260
  Huffman LLC

  	
   

  	
  $

  	
  1,495,000.00

  	
   

  	
  6/16/2004

  	
   

  	
  6/16/2005

  	
   

  
	
  Perf.

  	
   

  	
  18100252

  	
   

  	
  Pinchus-Kiejdan
  Marital Trust B

  	
   

  	
  $

  	
  720,000.00

  	
   

  	
  10/4/2004

  	
   

  	
  10/4/2006

  	
   

  
	
  Perf

  	
   

  	
  18100404

  	
   

  	
  Genco
  Homes-Millville LLC

  	
   

  	
  $

  	
  115,000.00

  	
   

  	
  8/13/2004

  	
   

  	
  8/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18100405

  	
   

  	
  Genco
  Homes-Parvins Mill LLC

  	
   

  	
  $

  	
  135,000.00

  	
   

  	
  8/13/2004

  	
   

  	
  8/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18100460

  	
   

  	
  General
  Electric Capital Business

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  9/10/2004

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf

  	
   

  	
  18100469

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  1,367,315.07

  	
   

  	
  8/25/2004

  	
   

  	
  8/25/2005

  	
   

  
	
  Perf.

  	
   

  	
  18100595

  	
   

  	
  Camden
  County Improvement Auth

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  10/19/2004

  	
   

  	
  1/19/2006

  	
   

  
	
  Perf

  	
   

  	
  18100741

  	
   

  	
  Natomas
  Investors

  	
   

  	
  $

  	
  23,570,562.00

  	
   

  	
  12/15/2004

  	
   

  	
  12/16/2005

  	
   

  
	
  Perf

  	
   

  	
  18100757

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  2,140,776.44

  	
   

  	
  11/5/2004

  	
   

  	
  11/5/2005

  	
   

  
	
  Perf

  	
   

  	
  18100885

  	
   

  	
  Ramapo
  Land Co.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  1/3/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Perf

  	
   

  	
  18100946

  	
   

  	
  James
  Yeager & Judith Parfitt

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  12/27/2004

  	
   

  	
  12/27/2006

  	
   

  
	
  Perf

  	
   

  	
  18100958

  	
   

  	
  Johnson
  and Berman Attys

  	
   

  	
  $

  	
  1,600,000.00

  	
   

  	
  12/17/2004

  	
   

  	
  12/17/2005

  	
   

  
	
  Perf

  	
   

  	
  18101001

  	
   

  	
  Lower
  Macungie Township

  	
   

  	
  $

  	
  1,239,746.66

  	
   

  	
  1/10/2005

  	
   

  	
  1/10/2006

  	
   

  
	
  Perf

  	
   

  	
  18101063

  	
   

  	
  Flaster
  Greenberg PC Trust

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  1/13/2005

  	
   

  	
  1/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18101083

  	
   

  	
  Edgewater
  Enterprises LLC

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  1/19/2005

  	
   

  	
  11/1/2005

  	
   

  
	
  Perf

  	
   

  	
  18101103

  	
   

  	
  James
  Holland, Esq. Escrow Agt

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1/28/2005

  	
   

  	
  1/28/2006

  	
   

  
	
  Perf

  	
   

  	
  18101134

  	
   

  	
  Township
  of Rapho

  	
   

  	
  $

  	
  1,061,118.00

  	
   

  	
  1/31/2005

  	
   

  	
  1/31/2006

  	
   

  
	
  Perf

  	
   

  	
  18101135

  	
   

  	
  Mt.
  Joy Properites Inc.

  	
   

  	
  $

  	
  587,749.80

  	
   

  	
  2/3/2005

  	
   

  	
  2/3/2007

  	
   

  
	
  Perf

  	
   

  	
  18101162

  	
   

  	
  Flynn
  Tucker LLC

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  2/3/2005

  	
   

  	
  2/3/2007

  	
   

  
	
  Perf

  	
   

  	
  18101174

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  20,880,000.00

  	
   

  	
  2/8/2005

  	
   

  	
  2/8/2006

  	
   

  
	
  Perf

  	
   

  	
  18101175

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  2/8/2005

  	
   

  	
  2/8/2006

  	
   

  
	
  Perf

  	
   

  	
  18101323

  	
   

  	
  Lehigh
  County Authority

  	
   

  	
  $

  	
  155,760.00

  	
   

  	
  3/23/2005

  	
   

  	
  3/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  18101326

  	
   

  	
  Offshore
  Holdings LLC

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/15/2005

  	
   

  	
  6/15/2008

  	
   

  
	
  Perf.

  	
   

  	
  18101437

  	
   

  	
  Woodward
  Farms LLC

  	
   

  	
  $

  	
  350,000.00

  	
   

  	
  4/27/2005

  	
   

  	
  4/27/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101458

  	
   

  	
  Texas
  State Bank

  	
   

  	
  $

  	
  750,000.00

  	
   

  	
  5/10/2005

  	
   

  	
  7/29/2008

  	
   

  
	
  Perf.

  	
   

  	
  18101626

  	
   

  	
  Borough
  of West Paterson

  	
   

  	
  $

  	
  152,283.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/13/2006

  	
   

  
	
  Perf.

  	
   

  	
  18101627

  	
   

  	
  City
  of Clifton

  	
   

  	
  $

  	
  253,404.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/13/2006

  	
   

  
	
  Perf.

  	
   

  	
  18101628

  	
   

  	
  Borough
  of West Paterson

  	
   

  	
  $

  	
  505,495.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/13/2006

  	
   

  
	
  Perf.

  	
   

  	
  18101647

  	
   

  	
  Univest
  National Bank & Trust

  	
   

  	
  $

  	
  80,000.00

  	
   

  	
  5/12/2005

  	
   

  	
  7/12/2005

  	
   

  
	
  Perf.

  	
   

  	
  18101701

  	
   

  	
  The
  Landings at Barnegat Inc.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  5/23/2005

  	
   

  	
  11/20/2005

  	
   

  

 

 

	
  Perf.

  	
   

  	
  18101730

  	
   

  	
  1401
  Tower Partners LP

  	
   

  	
  $

  	
  1,100,000.00

  	
   

  	
  5/27/2005

  	
   

  	
  5/27/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101733

  	
   

  	
  K &
  M Associates Inc.

  	
   

  	
  $

  	
  665,000.00

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101734

  	
   

  	
  Costa
  Homes Inc.

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  PNC - TOTAL

  	
   

  	
  $

  	
  150,101,270.10

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Perf.

  	
   

  	
  088742

  	
   

  	
  Bd
  of Cty Spv. Prince WM Cty.

  	
   

  	
  $

  	
  57,016.13

  	
   

  	
  2/3/1994

  	
   

  	
  8/7/2005

  	
   

  
	
  Perf.

  	
   

  	
  940740

  	
   

  	
  Brd
  of Cty Supervsrs.of Prc.William

  	
   

  	
  $

  	
  40,585.50

  	
   

  	
  6/26/1998

  	
   

  	
  6/26/2005

  	
   

  
	
  Perf.

  	
   

  	
  941035

  	
   

  	
  Staffordcounty
  board of supervisors

  	
   

  	
  $

  	
  68,702.93

  	
   

  	
  10/9/1998

  	
   

  	
  10/1/2005

  	
   

  
	
  Perf.

  	
   

  	
  3047004

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  3,500.00

  	
   

  	
  3/13/2002

  	
   

  	
  6/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  3047138

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  101,841.42

  	
   

  	
  3/19/2002

  	
   

  	
  11/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  3047140

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  11,500.00

  	
   

  	
  3/19/2002

  	
   

  	
  6/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  3048083

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  49,803.31

  	
   

  	
  4/11/2002

  	
   

  	
  12/14/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064476

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  1,617,000.00

  	
   

  	
  7/28/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064488

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  543,173.19

  	
   

  	
  7/20/2004

  	
   

  	
  7/21/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064693

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  1,499,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064694

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  994,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064695

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  783,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064696

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  707,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064720

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  309,171.75

  	
   

  	
  8/3/2004

  	
   

  	
  1/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064759

  	
   

  	
  Rainbow
  Municipal Water District

  	
   

  	
  $

  	
  406,972.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064760

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  65,850.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064761

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  19,600.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064776

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064777

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  8/4/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064778

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064779

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064780

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3064807

  	
   

  	
  Young
  Conway Stargatt & Taylor LLP

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  8/4/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064943

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  17,425.00

  	
   

  	
  8/12/2004

  	
   

  	
  8/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064954

  	
   

  	
  Burgess &
  Comm.of Walkersville

  	
   

  	
  $

  	
  805,456.00

  	
   

  	
  8/12/2004

  	
   

  	
  8/12/2005

  	
   

  
	
  Perf.

  	
   

  	
  3064990

  	
   

  	
  Egypt
  Road LLC

  	
   

  	
  $

  	
  935,819.00

  	
   

  	
  9/22/2004

  	
   

  	
  9/22/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065049

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  229,799.00

  	
   

  	
  9/8/2004

  	
   

  	
  9/8/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065050

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  211,585.00

  	
   

  	
  9/8/2004

  	
   

  	
  9/8/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065079

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  179,266.00

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065080

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  99,470.00

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065081

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  73,537.58

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065206

  	
   

  	
  New
  Homebuyers Title Company

  	
   

  	
  $

  	
  14,000.00

  	
   

  	
  8/26/2004

  	
   

  	
  8/26/2005

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3065222

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  546,376.00

  	
   

  	
  9/17/2004

  	
   

  	
  9/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065427

  	
   

  	
  Brazos
  River North South Ltd.

  	
   

  	
  $

  	
  130,000.00

  	
   

  	
  9/14/2004

  	
   

  	
  9/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065512

  	
   

  	
  Cottontree
  Ltd.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  9/17/2004

  	
   

  	
  9/17/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065597

  	
   

  	
  W/J
  Moore Farm Project Co. LP

  	
   

  	
  $

  	
  308,000.00

  	
   

  	
  9/30/2004

  	
   

  	
  9/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  3065629

  	
   

  	
  Gaslamp
  Phase Two LLC

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  	
  9/16/2004

  	
   

  	
  9/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  3065758

  	
   

  	
  Lunsford
  Road Partners Ltd.

  	
   

  	
  $

  	
  579,600.00

  	
   

  	
  9/28/2004

  	
   

  	
  9/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3065802

  	
   

  	
  Springville
  Properties Inc.

  	
   

  	
  $

  	
  366,973.00

  	
   

  	
  9/27/2004

  	
   

  	
  9/30/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065905

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  312,557.45

  	
   

  	
  10/5/2004

  	
   

  	
  10/5/2005

  	
   

  
	
  Perf.

  	
   

  	
  3065998

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  376,744.26

  	
   

  	
  10/8/2004

  	
   

  	
  10/8/2005

  	
   

  
	
  Fin.

  	
   

  	
  3066036

  	
   

  	
  Sandler
  at Olde Stage LLC

  	
   

  	
  $

  	
  400,000.00

  	
   

  	
  10/12/2004

  	
   

  	
  1/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3066070

  	
   

  	
  Attman
  Real Estate Co.

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  10/13/2004

  	
   

  	
  10/13/2005

  	
   

  
	
  Fin.

  	
   

  	
  3066375

  	
   

  	
  Towne
  Lake LP

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  10/28/2004

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  3066428

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  1,947,686.00

  	
   

  	
  11/2/2004

  	
   

  	
  11/2/2005

  	
   

  
	
  Perf.

  	
   

  	
  3071551

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  289,702.00

  	
   

  	
  11/9/2004

  	
   

  	
  11/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  3071552

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  282,175.00

  	
   

  	
  11/9/2004

  	
   

  	
  11/9/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071572

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071573

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071574

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071575

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071583

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071658

  	
   

  	
  Bricklemyer
  Smokler & Bolves

  	
   

  	
  $

  	
  350,000.00

  	
   

  	
  11/15/2004

  	
   

  	
  11/15/2005

  	
   

  
	
  Fin.

  	
   

  	
  3071800

  	
   

  	
  Melissa
  Road Partners Ltd.

  	
   

  	
  $

  	
  463,800.00

  	
   

  	
  11/22/2004

  	
   

  	
  11/22/2006

  	
   

  
	
  Perf.

  	
   

  	
  3071883

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  411,668.44

  	
   

  	
  12/1/2004

  	
   

  	
  11/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  3071884

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  53,986.61

  	
   

  	
  12/1/2004

  	
   

  	
  5/23/2007

  	
   

  
	
  Fin.

  	
   

  	
  3071987

  	
   

  	
  Stelic
  Enterprises Inc.

  	
   

  	
  $

  	
  175,000.00

  	
   

  	
  12/3/2004

  	
   

  	
  11/30/2005

  	
   

  
	
  Perf.

  	
   

  	
  3072040

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  309,039.59

  	
   

  	
  12/8/2004

  	
   

  	
  6/8/2006

  	
   

  
	
  Fin.

  	
   

  	
  3072128

  	
   

  	
  Windjam
  Development Group LLC

  	
   

  	
  $

  	
  275,000.00

  	
   

  	
  1/10/2005

  	
   

  	
  12/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  3072185

  	
   

  	
  Legacy
  Bank of Texas

  	
   

  	
  $

  	
  818,600.00

  	
   

  	
  12/21/2004

  	
   

  	
  12/12/2006

  	
   

  
	
  Fin.

  	
   

  	
  3072197

  	
   

  	
  New
  Homebuyers Title Company

  	
   

  	
  $

  	
  350,000.00

  	
   

  	
  12/14/2004

  	
   

  	
  12/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  3072317

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  365,392.94

  	
   

  	
  12/22/2004

  	
   

  	
  12/17/2006

  	
   

  
	
  Fin.

  	
   

  	
  3072338

  	
   

  	
  Patapsco
  Landing LLC

  	
   

  	
  $

  	
  980,000.00

  	
   

  	
  12/23/2004

  	
   

  	
  8/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072685

  	
   

  	
  Moreno
  Valley Properties

  	
   

  	
  $

  	
  248,000.00

  	
   

  	
  4/20/2005

  	
   

  	
  1/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072686

  	
   

  	
  Moreno
  Valley Properties

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/20/2005

  	
   

  	
  1/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072915

  	
   

  	
  Los
  Angeles Dept. of Water & Power

  	
   

  	
  $

  	
  399,052.00

  	
   

  	
  1/21/2005

  	
   

  	
  1/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072956

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  171,513.00

  	
   

  	
  1/24/2005

  	
   

  	
  1/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3072966

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  712,011.00

  	
   

  	
  3/8/2005

  	
   

  	
  7/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3073074

  	
   

  	
  Placer
  County

  	
   

  	
  $

  	
  22,500.00

  	
   

  	
  1/31/2005

  	
   

  	
  1/31/2006

  	
   

  

 

 

	
  Perf.

  	
   

  	
  3073123

  	
   

  	
  Northpointe
  Developmt Partners

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  1/31/2005

  	
   

  	
  1/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3073161

  	
   

  	
  Coachella
  Valley Water District

  	
   

  	
  $

  	
  45,863.20

  	
   

  	
  3/25/2005

  	
   

  	
  6/25/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073203

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  18,644.00

  	
   

  	
  2/16/2005

  	
   

  	
  2/16/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073204

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  92,520.00

  	
   

  	
  2/16/2005

  	
   

  	
  2/16/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073205

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  2,745.00

  	
   

  	
  2/16/2005

  	
   

  	
  2/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  3073214

  	
   

  	
  The
  Prudential Insurance Co.

  	
   

  	
  $

  	
  5,994,193.00

  	
   

  	
  2/9/2005

  	
   

  	
  2/9/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073219

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  61,333.15

  	
   

  	
  3/10/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073220

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  63,951.85

  	
   

  	
  3/10/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073346

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3073347

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3073348

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3073349

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3073350

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  3073558

  	
   

  	
  County
  of San Diego

  	
   

  	
  $

  	
  242,360.00

  	
   

  	
  3/30/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3073885

  	
   

  	
  Covered
  Bridge Holdings LLC

  	
   

  	
  $

  	
  345,146.75

  	
   

  	
  3/15/2005

  	
   

  	
  9/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073917

  	
   

  	
  Baldwin
  Park Development Co.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  3/17/2005

  	
   

  	
  3/17/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074011

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  686,171.00

  	
   

  	
  3/22/2005

  	
   

  	
  3/22/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074109

  	
   

  	
  Coachella
  Valley Water District

  	
   

  	
  $

  	
  18,714.85

  	
   

  	
  3/28/2005

  	
   

  	
  3/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074186

  	
   

  	
  Mitchell
  L. Phelps Inc.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  4/6/2005

  	
   

  	
  4/6/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074231

  	
   

  	
  Residential
  Title & Escrow Co.

  	
   

  	
  $

  	
  950,000.00

  	
   

  	
  4/1/2005

  	
   

  	
  4/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074291

  	
   

  	
  North
  American Title Co.

  	
   

  	
  $

  	
  346,763.00

  	
   

  	
  4/5/2005

  	
   

  	
  4/5/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074339

  	
   

  	
  Branch
  Banking & Trust Co.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  4/4/2005

  	
   

  	
  4/4/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074340

  	
   

  	
  Branch
  Banking & Trust Co.

  	
   

  	
  $

  	
  156,583.42

  	
   

  	
  4/4/2005

  	
   

  	
  4/4/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074430

  	
   

  	
  Aeromaritime
  Investment Co.

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  4/13/2005

  	
   

  	
  3/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074466

  	
   

  	
  Security
  Storage Co.

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  4/12/2005

  	
   

  	
  4/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074488

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  61,300.00

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074489

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  13,110.00

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074671

  	
   

  	
  Melissa
  Road Partners Ltd.

  	
   

  	
  $

  	
  564,400.00

  	
   

  	
  4/21/2005

  	
   

  	
  4/21/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074699

  	
   

  	
  The
  Natomas Basin Conservancy

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074710

  	
   

  	
  SCC-Canyon
  II, LLC

  	
   

  	
  $

  	
  4,686,589.00

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074781

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  511,074.25

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074782

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  664,553.71

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074783

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  834,356.25

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074784

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  836,852.00

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074785

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  1,642,288.41

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074786

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  818,539.86

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074787

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  966,684.65

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3074788

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  140,642.39

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074790

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  480,785.00

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074791

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  352,535.23

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074792

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  331,025.94

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074793

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  587,716.25

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074794

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  1,524,710.00

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074795

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  644,357.50

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074808

  	
   

  	
  Texas
  Bank

  	
   

  	
  $

  	
  306,000.00

  	
   

  	
  5/10/2005

  	
   

  	
  5/15/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074919

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3074920

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3074921

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3074922

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3074923

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  3074929

  	
   

  	
  Annapolis
  Towne Center at Parole LLC

  	
   

  	
  $

  	
  6,335,129.00

  	
   

  	
  5/9/2005

  	
   

  	
  5/9/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074941

  	
   

  	
  City
  of Eden Prairie

  	
   

  	
  $

  	
  973,075.00

  	
   

  	
  5/6/2005

  	
   

  	
  5/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074942

  	
   

  	
  City
  of Eden Prairie

  	
   

  	
  $

  	
  42,000.00

  	
   

  	
  5/6/2005

  	
   

  	
  5/6/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074947

  	
   

  	
  Annapolis
  Towne Center at Parole LLC

  	
   

  	
  $

  	
  664,871.00

  	
   

  	
  5/9/2005

  	
   

  	
  5/9/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074948

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  69,696.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074949

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  184,103.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074950

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  30,000.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074951

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  904,106.50

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074952

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  236,365.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074953

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  78,105.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074954

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  61,216.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  3074955

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  29,194.00

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075004

  	
   

  	
  Virginia
  Commerce Bank

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  	
  5/9/2005

  	
   

  	
  5/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075010

  	
   

  	
  The
  Minnehaha Creek Watershed

  	
   

  	
  $

  	
  80,000.00

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075011

  	
   

  	
  The
  Minnehaha Creek Watershed

  	
   

  	
  $

  	
  6,700.00

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075027

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  78,176.00

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075028

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075032

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,313.00

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075033

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  323,161.00

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075034

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  200,044.00

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075035

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  17,850.00

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075133

  	
   

  	
  Ann
  Arundel Farms Ltd.

  	
   

  	
  $

  	
  50,400.00

  	
   

  	
  5/18/2005

  	
   

  	
  5/18/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075134

  	
   

  	
  Ann
  Arundel Farms Ltd.

  	
   

  	
  $

  	
  13,400.00

  	
   

  	
  5/18/2005

  	
   

  	
  5/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075154

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  373,864.77

  	
   

  	
  5/20/2005

  	
   

  	
  5/20/2007

  	
   

  

 

 

	
  Perf.

  	
   

  	
  3075157

  	
   

  	
  First
  American Title Insurance Co.

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  5/18/2005

  	
   

  	
  5/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075190

  	
   

  	
  City
  of Victoria

  	
   

  	
  $

  	
  1,832,902.00

  	
   

  	
  5/25/2005

  	
   

  	
  11/20/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075328

  	
   

  	
  Burgess &
  Comm.of Walkersville

  	
   

  	
  $

  	
  1,658,932.50

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075329

  	
   

  	
  Windsor
  Lakes Inc.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  6/6/2005

  	
   

  	
  6/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075330

  	
   

  	
  Burgess &
  Comm.of Walkersville

  	
   

  	
  $

  	
  64,600.00

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  3075385

  	
   

  	
  Acacia
  Credit Fund 10-A LLC

  	
   

  	
  $

  	
  5,427,323.00

  	
   

  	
  6/1/2005

  	
   

  	
  7/29/2008

  	
   

  
	
  Fin.

  	
   

  	
  3075396

  	
   

  	
  FC
  Caldwell LLC

  	
   

  	
  $

  	
  156,000.00

  	
   

  	
  6/1/2005

  	
   

  	
  6/1/2008

  	
   

  
	
  Fin.

  	
   

  	
  3075455

  	
   

  	
  Dublin
  Murphy Estates Ltd.

  	
   

  	
  $

  	
  96,000.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075515

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  200,000.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/19/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075537

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  311,742.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075538

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  487,530.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075539

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  59,000.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075540

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  105,200.00

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  7401633

  	
   

  	
  VA
  Department of Transportation

  	
   

  	
  $

  	
  30,000.00

  	
   

  	
  4/26/1999

  	
   

  	
  4/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  7401777

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  29,728.54

  	
   

  	
  5/24/1999

  	
   

  	
  11/25/2005

  	
   

  
	
  Perf.

  	
   

  	
  7403137

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  35,527.00

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2005

  	
   

  
	
  Perf.

  	
   

  	
  7403139

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  1,000.00

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2005

  	
   

  
	
  Perf.

  	
   

  	
  7403140

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  34,624.00

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2005

  	
   

  
	
  Perf.

  	
   

  	
  7403158

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  36,226.15

  	
   

  	
  1/13/2000

  	
   

  	
  7/13/2005

  	
   

  
	
  Perf.

  	
   

  	
  7403214

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  46,837.50

  	
   

  	
  1/27/2000

  	
   

  	
  4/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  7404004

  	
   

  	
  Schulman,Treem,
  etc.

  	
   

  	
  $

  	
  3,300,000.00

  	
   

  	
  8/9/2000

  	
   

  	
  8/9/2005

  	
   

  
	
  Perf.

  	
   

  	
  7404737

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  42,100.00

  	
   

  	
  1/12/2001

  	
   

  	
  7/16/2005

  	
   

  
	
  Perf.

  	
   

  	
  7404762

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  179,137.23

  	
   

  	
  1/25/2001

  	
   

  	
  7/23/2005

  	
   

  
	
  Perf.

  	
   

  	
  7404842

  	
   

  	
  Bd.Of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  27,800.10

  	
   

  	
  2/8/2001

  	
   

  	
  8/16/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405365

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  23,493.00

  	
   

  	
  5/22/2001

  	
   

  	
  5/22/2006

  	
   

  
	
  Fin.

  	
   

  	
  7405410

  	
   

  	
  Mary
  Ann Daugherty & Shawn

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  6/1/2001

  	
   

  	
  4/26/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405465

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  17,792.30

  	
   

  	
  6/18/2001

  	
   

  	
  6/18/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405467

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  8,073.80

  	
   

  	
  6/18/2001

  	
   

  	
  6/18/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405761

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  45,845.00

  	
   

  	
  9/5/2001

  	
   

  	
  9/4/2005

  	
   

  
	
  Fin.

  	
   

  	
  7405783

  	
   

  	
  Premier
  Title Inc.

  	
   

  	
  $

  	
  1,818,356.00

  	
   

  	
  8/31/2001

  	
   

  	
  8/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405808

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  79,140.00

  	
   

  	
  9/7/2001

  	
   

  	
  9/4/2006

  	
   

  
	
  Perf.

  	
   

  	
  7405956

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  6,584.00

  	
   

  	
  10/22/2001

  	
   

  	
  10/22/2005

  	
   

  
	
  Perf.

  	
   

  	
  7405967

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  94,294.00

  	
   

  	
  10/25/2001

  	
   

  	
  4/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  7406051

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  93,891.10

  	
   

  	
  11/16/2001

  	
   

  	
  11/15/2005

  	
   

  
	
  Perf.

  	
   

  	
  7406097

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  174,237.80

  	
   

  	
  11/29/2001

  	
   

  	
  5/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7408431

  	
   

  	
  Texas
  Bank

  	
   

  	
  $

  	
  400,000.00

  	
   

  	
  2/7/2002

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7408684

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  80,613.00

  	
   

  	
  1/29/2002

  	
   

  	
  1/24/2006

  	
   

  

 

 

	
  Fin.

  	
   

  	
  7408995

  	
   

  	
  Legacy
  Bank of Texas

  	
   

  	
  $

  	
  240,000.00

  	
   

  	
  2/11/2002

  	
   

  	
  9/30/2005

  	
   

  
	
  Fin.

  	
   

  	
  7409171

  	
   

  	
  First
  State Bank & Fountain Ridge

  	
   

  	
  $

  	
  400,000.00

  	
   

  	
  3/13/2002

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7409177

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  301,758.68

  	
   

  	
  3/20/2002

  	
   

  	
  3/20/2006

  	
   

  
	
  Perf.

  	
   

  	
  7409222

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  197,823.00

  	
   

  	
  3/27/2002

  	
   

  	
  3/27/2006

  	
   

  
	
  Fin.

  	
   

  	
  7409328

  	
   

  	
  Lennar
  Homes of Texas Land

  	
   

  	
  $

  	
  232,000.00

  	
   

  	
  4/26/2002

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7410151

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  147,586.38

  	
   

  	
  8/14/2002

  	
   

  	
  8/14/2005

  	
   

  
	
  Perf.

  	
   

  	
  7410330

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  569,175.22

  	
   

  	
  9/13/2002

  	
   

  	
  6/24/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410366

  	
   

  	
  Troese
  Title Co.

  	
   

  	
  $

  	
  230,000.00

  	
   

  	
  9/20/2002

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410417

  	
   

  	
  U.S.
  Bank, N.A.

  	
   

  	
  $

  	
  727,263.75

  	
   

  	
  9/27/2002

  	
   

  	
  9/1/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410479

  	
   

  	
  Dublin
  Murphy Estates Ltd.

  	
   

  	
  $

  	
  96,000.00

  	
   

  	
  10/11/2002

  	
   

  	
  7/29/2005

  	
   

  
	
  Perf.

  	
   

  	
  7410606

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  238,435.00

  	
   

  	
  10/24/2002

  	
   

  	
  10/24/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410650

  	
   

  	
  Ohio
  Savings Bank

  	
   

  	
  $

  	
  2,250,000.00

  	
   

  	
  10/31/2002

  	
   

  	
  10/30/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410713

  	
   

  	
  Rockwall
  Shores Ltd.

  	
   

  	
  $

  	
  262,500.00

  	
   

  	
  11/14/2002

  	
   

  	
  7/29/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410752

  	
   

  	
  U.S.
  Bank

  	
   

  	
  $

  	
  560,716.89

  	
   

  	
  11/20/2002

  	
   

  	
  11/1/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410858

  	
   

  	
  Miles &
  Stockbridge P.C.

  	
   

  	
  $

  	
  600,000.00

  	
   

  	
  12/18/2002

  	
   

  	
  3/17/2006

  	
   

  
	
  Fin.

  	
   

  	
  7410894

  	
   

  	
  Heartland/MSK
  Realty Ventures

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  12/23/2002

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410917

  	
   

  	
  Brighton
  Homes of Austin Ltd.

  	
   

  	
  $

  	
  960,215.00

  	
   

  	
  12/30/2002

  	
   

  	
  7/29/2005

  	
   

  
	
  Perf.

  	
   

  	
  7410959

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  268,286.61

  	
   

  	
  1/2/2003

  	
   

  	
  6/23/2005

  	
   

  
	
  Fin.

  	
   

  	
  7410968

  	
   

  	
  Laurel
  Highlands LLC

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1/6/2003

  	
   

  	
  1/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411051

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  82,247.43

  	
   

  	
  1/24/2003

  	
   

  	
  7/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411069

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  263,047.09

  	
   

  	
  1/23/2003

  	
   

  	
  7/24/2005

  	
   

  
	
  Perf.

  	
   

  	
  7411130

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  152,219.00

  	
   

  	
  2/5/2003

  	
   

  	
  5/21/2006

  	
   

  
	
  Fin.

  	
   

  	
  7411361

  	
   

  	
  Most
  Rev. Paul Loverde, Bishop

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  3/24/2003

  	
   

  	
  9/24/2005

  	
   

  
	
  Perf.

  	
   

  	
  7411453

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  106,093.25

  	
   

  	
  4/9/2003

  	
   

  	
  10/11/2006

  	
   

  
	
  Fin.

  	
   

  	
  7411488

  	
   

  	
  New
  Homebuyer’s Title Co.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/23/2003

  	
   

  	
  4/21/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411505

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  381,252.00

  	
   

  	
  4/28/2003

  	
   

  	
  4/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411515

  	
   

  	
  Board
  of Supervisors Fairfax County

  	
   

  	
  $

  	
  94,600.00

  	
   

  	
  4/28/2003

  	
   

  	
  10/28/2005

  	
   

  
	
  Perf.

  	
   

  	
  7411592

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  86,709.00

  	
   

  	
  5/7/2003

  	
   

  	
  5/6/2006

  	
   

  
	
  Fin.

  	
   

  	
  7411634

  	
   

  	
  D.R.Cameron &
  Associates Inc.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  5/21/2003

  	
   

  	
  10/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  7411692

  	
   

  	
  Burgess &
  Comm.of Walkersville

  	
   

  	
  $

  	
  1,273,870.93

  	
   

  	
  6/6/2003

  	
   

  	
  6/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411693

  	
   

  	
  Burgess &
  Comm.of Walkersville

  	
   

  	
  $

  	
  64,600.00

  	
   

  	
  6/6/2003

  	
   

  	
  6/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  7412110

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  177,192.23

  	
   

  	
  8/11/2003

  	
   

  	
  8/5/2005

  	
   

  
	
  Perf.

  	
   

  	
  7412115

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  8/8/2003

  	
   

  	
  8/8/2005

  	
   

  
	
  Perf.

  	
   

  	
  7412116

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  8/8/2003

  	
   

  	
  8/8/2005

  	
   

  
	
  Perf.

  	
   

  	
  7412117

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  8/8/2003

  	
   

  	
  8/8/2005

  	
   

  
	
  Fin.

  	
   

  	
  7412119

  	
   

  	
  Levin &
  Gann, P.A.

  	
   

  	
  $

  	
  54,000.00

  	
   

  	
  8/7/2003

  	
   

  	
  8/7/2005

  	
   

  
	
  Fin.

  	
   

  	
  7412135

  	
   

  	
  Towne
  Lake, L.P.

  	
   

  	
  $

  	
  200,000.00

  	
   

  	
  8/11/2003

  	
   

  	
  8/11/2005

  	
   

  

 

 

	
  Fin.

  	
   

  	
  7412158

  	
   

  	
  New
  Homebuyer’s Title Co.

  	
   

  	
  $

  	
  450,000.00

  	
   

  	
  8/18/2003

  	
   

  	
  8/18/2005

  	
   

  
	
  Fin.

  	
   

  	
  7412191

  	
   

  	
  Bank
  of the West

  	
   

  	
  $

  	
  63,519.74

  	
   

  	
  9/12/2003

  	
   

  	
  12/31/2005

  	
   

  
	
  Perf.

  	
   

  	
  7412402

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  9/24/2003

  	
   

  	
  9/24/2005

  	
   

  
	
  Fin.

  	
   

  	
  7412509

  	
   

  	
  City
  of Suisun City

  	
   

  	
  $

  	
  2,136,645.00

  	
   

  	
  10/7/2003

  	
   

  	
  10/7/2005

  	
   

  
	
  Fin.

  	
   

  	
  7412572

  	
   

  	
  City
  of Palm Springs

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  10/15/2003

  	
   

  	
  9/30/2005

  	
   

  
	
  Perf.

  	
   

  	
  7412763

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  230,558.90

  	
   

  	
  11/5/2003

  	
   

  	
  11/5/2005

  	
   

  
	
  Fin.

  	
   

  	
  7413466

  	
   

  	
  Windsor
  Lakes Inc.

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  	
  2/17/2004

  	
   

  	
  1/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413575

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  7,500.00

  	
   

  	
  2/12/2004

  	
   

  	
  2/2/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413576

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  92,970.00

  	
   

  	
  2/12/2004

  	
   

  	
  2/6/2006

  	
   

  
	
  Fin.

  	
   

  	
  7413584

  	
   

  	
  First
  Florida Title Company

  	
   

  	
  $

  	
  115,000.00

  	
   

  	
  2/12/2004

  	
   

  	
  2/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413818

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  167,314.65

  	
   

  	
  3/12/2004

  	
   

  	
  3/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  7413834

  	
   

  	
  New
  Homebuyers Title

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  3/15/2004

  	
   

  	
  3/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413878

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  102,000.00

  	
   

  	
  3/31/2004

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413879

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  17,115.00

  	
   

  	
  3/31/2004

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413880

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  28,314.00

  	
   

  	
  3/31/2005

  	
   

  	
  3/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413913

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  704,625.00

  	
   

  	
  3/26/2004

  	
   

  	
  3/23/2006

  	
   

  
	
  Fin.

  	
   

  	
  7413914

  	
   

  	
  Whi-Republic
  LLC

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  3/24/2004

  	
   

  	
  3/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  7413922

  	
   

  	
  Ohio
  Savings Bank

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  3/25/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413986

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  169,278.00

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413987

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  155,284.00

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413988

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  171,882.00

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414178

  	
   

  	
  New
  Forest West Ltd.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  4/29/2004

  	
   

  	
  4/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414179

  	
   

  	
  New
  Forest West Ltd.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  4/29/2004

  	
   

  	
  4/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414180

  	
   

  	
  JDC/Lone
  Oak Ltd.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  5/17/2004

  	
   

  	
  11/1/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414205

  	
   

  	
  Texasbank

  	
   

  	
  $

  	
  394,200.00

  	
   

  	
  7/12/2004

  	
   

  	
  4/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414206

  	
   

  	
  Wilmeth
  Road Partners Ltd.

  	
   

  	
  $

  	
  898,200.00

  	
   

  	
  6/15/2004

  	
   

  	
  6/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414245

  	
   

  	
  Northwest
  Building Ltd.

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  5/6/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414268

  	
   

  	
  Commissioner
  of Ins. State of Vermont

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  6/1/2004

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414343

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  199,112.00

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414344

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,688.00

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414345

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  245,180.00

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414372

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  166,010.35

  	
   

  	
  5/26/2004

  	
   

  	
  11/24/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414373

  	
   

  	
  Sully
  North LC & DD-Simmons LC

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  5/26/2004

  	
   

  	
  5/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414407

  	
   

  	
  Shady
  Oaks TB Ltd.

  	
   

  	
  $

  	
  152,000.00

  	
   

  	
  5/27/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414450

  	
   

  	
  Breevast
  U.S. Inc.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  6/10/2004

  	
   

  	
  12/31/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414531

  	
   

  	
  Fortuna
  Regency LLC

  	
   

  	
  $

  	
  850,000.00

  	
   

  	
  6/16/2004

  	
   

  	
  6/16/2006

  	
   

  
	
  Trade

  	
   

  	
  7414580

  	
   

  	
  Impac
  Partners Inc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  6/18/2004

  	
   

  	
  6/18/2005

  	
   

  

 

 

	
  Perf.

  	
   

  	
  7414581

  	
   

  	
  City
  of Temple Terrace, Florida

  	
   

  	
  $

  	
  590,805.00

  	
   

  	
  6/23/2004

  	
   

  	
  5/19/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414582

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  275,848.00

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2005

  	
   

  
	
  Perf.

  	
   

  	
  7414583

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,625.00

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2005

  	
   

  
	
  Perf.

  	
   

  	
  7414584

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  379,988.00

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414623

  	
   

  	
  New
  River Partners Ltd.

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  6/28/2004

  	
   

  	
  12/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414624

  	
   

  	
  Stacey
  Road Partners Ltd.

  	
   

  	
  $

  	
  526,400.00

  	
   

  	
  6/25/2004

  	
   

  	
  7/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414634

  	
   

  	
  New
  Homebuyers Title

  	
   

  	
  $

  	
  1,200,000.00

  	
   

  	
  6/25/2004

  	
   

  	
  6/25/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414659

  	
   

  	
  Troese
  Title Services

  	
   

  	
  $

  	
  25,000.00

  	
   

  	
  7/6/2004

  	
   

  	
  7/6/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414691

  	
   

  	
  Timber
  Hill Ltd.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  7/6/2004

  	
   

  	
  7/6/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414730

  	
   

  	
  Marco
  Investments

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  7/8/2004

  	
   

  	
  7/8/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414731

  	
   

  	
  Marco
  Investments

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  7/8/2004

  	
   

  	
  7/8/2005

  	
   

  
	
  Fin.

  	
   

  	
  7414732

  	
   

  	
  Marco
  Investments

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  7/8/2004

  	
   

  	
  7/8/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Bank of America - Total

  	
   

  	
  $

  	
  126,981,914.15

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fin.

  	
   

  	
  F842364

  	
   

  	
  Williams
  Schifino Mangione & Steady

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  12/5/2003

  	
   

  	
  11/22/2005

  	
   

  
	
  Fin.

  	
   

  	
  F842363

  	
   

  	
  Bricklemeyer,Smolker &
  Bolves

  	
   

  	
  $

  	
  109,760.00

  	
   

  	
  12/5/2003

  	
   

  	
  11/23/2005

  	
   

  
	
  Fin.

  	
   

  	
  F843796

  	
   

  	
  Lowndes
  Drosdick Doster Kantor

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/4/2005

  	
   

  	
  9/23/2005

  	
   

  
	
  Fin.

  	
   

  	
  F846399

  	
   

  	
  Gibson
  Kohl & Wolff

  	
   

  	
  $

  	
  200,000.00

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Sun Trust - Total

  	
   

  	
  $

  	
  484,760.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Perf.

  	
   

  	
  S133745

  	
   

  	
  Prince
  William County

  	
   

  	
  $

  	
  48,043.89

  	
   

  	
  10/14/1999

  	
   

  	
  8/19/2005

  	
   

  
	
  Perf.

  	
   

  	
  S133754

  	
   

  	
  Dev.
  Guaranty Group-PG

  	
   

  	
  $

  	
  67,500.00

  	
   

  	
  10/11/1997

  	
   

  	
  4/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  S136733

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  12,042.00

  	
   

  	
  11/1/1997

  	
   

  	
  11/10/2005

  	
   

  
	
  Fin.

  	
   

  	
  SM411715

  	
   

  	
  National
  Home Insurance Co.

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  2/10/2000

  	
   

  	
  2/10/2006

  	
   

  
	
  Perf.

  	
   

  	
  SM412184

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  22,313.00

  	
   

  	
  3/22/2000

  	
   

  	
  9/22/2005

  	
   

  
	
  Fin.

  	
   

  	
  SO51174

  	
   

  	
  Dev.
  Guaranty Group-PG

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  4/3/1995

  	
   

  	
  4/3/2006

  	
   

  
	
  Fin.

  	
   

  	
  SM201604

  	
   

  	
  Trinity
  Lake Corp.

  	
   

  	
  $

  	
  91,000.00

  	
   

  	
  1/13/2003

  	
   

  	
  12/4/2005

  	
   

  
	
  Perf.

  	
   

  	
  SM210367

  	
   

  	
  Twp
  of Washington

  	
   

  	
  $

  	
  249,300.00

  	
   

  	
  10/21/2004

  	
   

  	
  10/10/2005

  	
   

  
	
  Perf.

  	
   

  	
  SM210369

  	
   

  	
  Twp
  of Washington

  	
   

  	
  $

  	
  128,700.00

  	
   

  	
  10/21/2004

  	
   

  	
  10/3/2005

  	
   

  
	
  Perf.

  	
   

  	
  SM210515

  	
   

  	
  Twp
  of Washington

  	
   

  	
  $

  	
  200,500.00

  	
   

  	
  10/21/2004

  	
   

  	
  10/10/2005

  	
   

  
	
  Perf.

  	
   

  	
  SM210516

  	
   

  	
  Twp
  of Washington

  	
   

  	
  $

  	
  181,200.00

  	
   

  	
  10/21/2004

  	
   

  	
  10/10/2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  First Union/Wachovia - Total

  	
   

  	
  $

  	
  1,225,598.89

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Perf.

  	
   

  	
  1222

  	
   

  	
  Sowell
  Interests-Parkside LP

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  3/18/2005

  	
   

  	
  3/18/2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Guaranty Bank

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  New Total

  	
   

  	
  $

  	
  278,893,543.14

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 5.1.2

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  ARROW PROPERTIES, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Corporate Office Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOV INTERNATIONAL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOV IP, II, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOV IP, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN ACQUISITIONS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BALLANTRAE, INC.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BERNARDS IV, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BRANCHBURG III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BRIDGEPORT, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BRIDGEWATER VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BURLINGTON III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT BURLINGTON, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CALABRIA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CARMEL DEL MAR, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CASTILE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CHAPARRAL, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CLARKSTOWN, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT CRESTLINE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT DOMINGUEZ HILLS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of
entity is owned by the single member

 

1

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT EAST WHITELAND I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT FREEHOLD TOWNSHIP I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HACKETTSTOWN, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HERSHEY’S MILL, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HIGHLAND VINEYARDS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HOPEWELL IV, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HOPEWELL VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT HOWELL TOWNSHIP, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT KINGS GRANT I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT KLOCKNER FARMS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT LA TERRAZA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT LA TROVATA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT LAKEWOOD, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT LOWER SAUCON, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MAHWAH II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MAHWAH V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MAHWAH VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MAHWAH VII, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MANALAPAN, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MARLBORO II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP IV,
  INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of
entity is owned by the single member

 

2

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT METRO DC SOUTH, INC.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MONROE II, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MONTCLAIR NJ, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT MONTGOMERY I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT NORTHERN WESTCHESTER,
  INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT NORTHLAKE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT OCEAN TOWNSHIP, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT OCEAN WALK, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT PERKIOMEN I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT PERKIOMEN II, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT PLAINSBORO III, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT PRINCETON, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT RANCHO CRISTIANITOS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT RESERVOIR RIDGE, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SAN SEVAINE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SARATOGA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SAWMILL, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SCOTCH PLAINS II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SCOTCH PLAINS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SMITHVILLE, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SOUTH BRUNSWICK III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of
entity is owned by the single member

 

3

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SOUTH BRUNSWICK V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT STONE CANYON, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT STONY POINT, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT SYCAMORE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT TANNERY HILL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT THE BLUFF, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT THE CEDARS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT THORNBURY, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT TIERRASANTA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT TUXEDO, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT UNION TOWNSHIP I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP
  I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT UPPER MAKEFIELD I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT VAIL RANCH, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WALL TOWNSHIP VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WALL TOWNSHIP VIII, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WASHINGTONVILLE, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WAYNE III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WAYNE V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT WILDROSE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES NORTHEAST, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of
entity is owned by the single member

 

4

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF CALIFORNIA,
  INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF MARYLAND, INC.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF METRO
  WASHINGTON, INC.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF NEW YORK, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian Developments of New York, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF NORTH CAROLINA,
  INC.

  	
   

  	
  NC

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF PENNSYLVANIA,
  INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN COMPANIES OF SOUTHERN
  CALIFORNIA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN CONSTRUCTION II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN CONSTRUCTION III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN CONSTRUCTION MANAGEMENT,
  INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF ARIZONA,
  INC.

  	
   

  	
  AZ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA,
  INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF DELAWARE,
  INC.

  	
   

  	
  DE

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF ILLINOIS,
  INC.

  	
   

  	
  IL

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF MARYLAND,
  INC.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF METRO
  WASHINGTON, INC.

  	
   

  	
  VA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF MICHIGAN,
  INC.

  	
   

  	
  MI

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF MINNESOTA,
  INC.

  	
   

  	
  MN

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY
  II, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY,
  INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of
entity is owned by the single member

 

5

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF NEW YORK,
  INC.

  	
   

  	
  NY

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF OHIO, INC.

  	
   

  	
  OH

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF
  PENNSYLVANIA, INC.

  	
   

  	
  PA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF SOUTH
  CAROLINA, INC.

  	
   

  	
  SC

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

  	
   

  	
  TX

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF WEST
  VIRGINIA, INC.

  	
   

  	
  WV

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN EQUITIES, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN FORECAST HOMES, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN HOMES OF NORTH CAROLINA,
  INC.

  	
   

  	
  NC

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN HOMES OF VIRGINIA, INC.

  	
   

  	
  VA

  	
   

  	
  Washington Homes, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN INVESTMENT PROPERTIES OF NEW
  JERSEY, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PA REAL ESTATE, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Developments of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL,
  INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PROPERTIES OF NEWARK URBAN
  RENEWAL CORPORATION, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PROPERTIES OF NORTH
  BRUNSWICK V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PROPERTIES OF WALL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  KHC ACQUISITION, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  LANDARAMA, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  M&M AT LONG BRANCH, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  MATZEL & MUMFORD OF DELAWARE,
  INC.

  	
   

  	
  DE

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  MCNJ, Inc.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

6

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  CORP

  	
   

  	
  PINE BROOK COMPANY, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Corporate Office Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  REFLECTIONS OF YOU INTERIORS, INC.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  SEABROOK ACCUMULATION CORPORATION

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  STONEBROOK HOMES, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  THE MATZEL & MUMFORD
  ORGANIZATION, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  WASHINGTON HOMES, INC.

  	
   

  	
  DE

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  WESTMINSTER HOMES OF TENNESSEE, INC.

  	
   

  	
  TN

  	
   

  	
  Washington Homes, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  WESTMINSTER HOMES, INC.

  	
   

  	
  NC

  	
   

  	
  Washington Homes, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  WH LAND I, INC

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  CORP

  	
   

  	
  WH PROPERTIES, INC.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  Limited Partnership (a restricted subsidiary)

  	
   

  	
  GOODMAN FAMILY OF BUILDERS, L.P.

  	
   

  	
  TX

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  Limited Partnership (a restricted subsidiary)

  	
   

  	
  K. HOVNANIAN OF HOUSTON II, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  Limited Partnership (a restricted subsidiary)

  	
   

  	
  K. HOVNANIAN OF HOUSTON, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  Limited Partnership (a restricted subsidiary)

  	
   

  	
  M&M INVESTMENTS, L.P.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  99.44%

  	
   

  	
  The Matzel & Mumford Organization,

  Inc.

  	
   

  	
  0.56%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  DULLES COPPERMINE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  EDISON CONTRACT SERVICES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF
  CALIFORNIA, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF
  FLORIDA, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF
  MARYLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF NORTH
  CAROLINA, L.L.C.

  	
   

  	
  NC

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF TEXAS,
  L.L.C.

  	
   

  	
  TX

  	
   

  	
  Goodman Family of Builders, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF
  VIRGINIA, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

7

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT 4S II, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT 4S,
  L.L.C. (NEW - joinder in mail) K.
  HOVNANIAN AT 4S RANCH, L.L.C. (OLD NAME)

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT ACQUA VISTA, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT ALISO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT ARBOR HEIGHTS, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BARNEGAT I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BELLA LAGO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BERKELEY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BERNARDS V, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BLUE HERON PINES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BRIDGEWATER I, L.L.C

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT BRIDLEWOOD, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CAMDEN I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CAPISTRANO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CARMEL VILLAGE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CEDAR GROVE III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CEDAR GROVE IV, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CHESTER I, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CHESTERFIELD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CITY IN THE HILLS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CLIFTON II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CLIFTON, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CORTEZ HILL, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CRANBURY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT CURRIES WOODS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT DENVILLE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

8

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT EASTLAKE, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT EDGEWATER II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT EDGEWATER, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT EGG HARBOR TOWNSHIP,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT ENCINITAS RANCH, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT FLORENCE I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT FLORENCE II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT FOREST MEADOWS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT FRANKLIN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT GREAT NOTCH, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT GUTTENBERG, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HACKETTSTOWN II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HAMBURG CONTRACTORS,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HAMBURG, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HAWTHORNE, L.L.C

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanain Developments of Minnesota, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT HIGHWATER, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT JACKSON I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT JACKSON, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT JERSEY CITY IV, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT JERSEY CITY V URBAN
  RENEWAL COMPANY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT KING FARM, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LA COSTA, L.L.C

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LA HABRA KNOLLS, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

9

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LAKE RIDGE CROSSING,
  L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LAWRENCE V, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LINWOOD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR
  TOWNSHIP II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR
  CONTRACTORS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LONG BRANCH I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP
  I, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP
  II, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP
  I, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LOWER MORELAND I, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT LOWER MORELAND II, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MANALAPAN III, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MANSFIELD I, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MANSFIELD II, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MANSFIELD III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP IX,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP V,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP VIII,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MARLBORO VI, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MARLBORO VII, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MENIFEE VALLEY
  CONDOMINIUMS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian’s Four Seasons at Menifee
  Valley, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

10

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MENIFEE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MIDDLETOWN II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MIDDLETOWN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MILLVILLE I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MILLVILLE II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MONROE III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MONROE IV, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MONTVALE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MOSAIC, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT MT. OLIVE TOWNSHIP,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH BERGEN II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH BERGEN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH BRUNSWICK VI,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH CALDWELL II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH CALDWELL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH HALEDON, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTH WILDWOOD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTHAMPTON. L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT NORTHFIELD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT OLD BRIDGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT OLDE ORCHARD, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT PARAMUS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT PARK LANE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT PARSIPPANY-TROY HILLS,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT PITTSGROVE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RANCHO SANTA MARGARITA,
  L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RANDOLPH I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

11

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RAPHO, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT READINGTON II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RED BANK, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RIVERBEND II, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RIVERBEND, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT RODERUCK. L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT ROWLAND HEIGHTS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SAYREVILLE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SCOTCH PLAINS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SHELF COMPANY, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SKYE ISLE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SMITHVILLE III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SOMERS POINT, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SPRINGFIELD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT SUNSETS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT TEANECK, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT THE CROSBY, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT THE GABLES, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT THE PRESERVE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT THOMPSON RANCH, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT TRAIL RIDGE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT UNION TOWNSHIP II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP
  II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP
  III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

12

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT UPPER UWCHLAN, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WANAQUE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WASHINGTON, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WAYNE IX, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WAYNE VIII, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WEST BRADFORD, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WEST MILFORD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WEST WINDSOR, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WILLOW BROOK, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WINCHESTER, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WOODHILL ESTATES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT WOOLWICH I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT YONKERS I, L.L.C.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at Northern Westchester, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT YONKERS II, L.L.C.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at Northern Westchester, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT YONKERS III, L.L.C.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at Northern Westchester, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN COMPANIES OF METRO D.C.
  NORTH, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN COMPANIES, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Enterprises, Inc.

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of New Jersey II, Inc.

  	
   

  	
  0.10%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian at Perkiomen II, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN FOUR SEASONS AT GOLD HILL,
  L.L.C.

  	
   

  	
  SC

  	
   

  	
  K. Hovnanian Developments of South
  Carolina, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN FOUR SEASONS AT HISTORIC
  VIRGINIA, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

13

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN GREAT WESTERN BUILDING
  COMPANY, LLC

  	
   

  	
  AZ

  	
   

  	
  K. Hovnanian Developments of Arizona, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN GREAT WESTERN HOMES, L.L.C.

  	
   

  	
  AZ

  	
   

  	
  K. Hovnanian Developments of Arizona, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  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%

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT CAMERON STATION,
  L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT CAMP SPRINGS,
  L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Homes of Maryland, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT FOREST RUN, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT LAUREL HIGHLANDS,
  L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL PLACE.
  L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Homes of Maryland, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL PLACE.
  L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Homes of Maryland, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT RENAISSANCE PLAZA,
  L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF D.C., L.L.C.

  	
   

  	
  D.C.

  	
   

  	
  K. Hovnanian Developments of DC, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Developments of Delaware, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF MARYLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF MINNESOTA, L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian Developments of Minnesota, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF PENNSYLVANIA,
  L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF SOUTH CAROLINA,
  L.L.C.

  	
   

  	
  SC

  	
   

  	
  K. Hovnanian Developments of South
  Carolina, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C.

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian Developments of West
  Virginia, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN INVESTMENTS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN NORTH CENTRAL ACQUISITIONS,
  L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

14

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN NORTH JERSEY ACQUISITIONS,
  L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN NORTHEAST SERVICES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN OHIO REALTY, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian Developments of Ohio, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN PENNSYLVANIA ACQUISITIONS,
  L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SOUTH JERSEY ACQUISITIONS,
  L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SUMMIT HOLDINGS, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF MICHIGAN,
  L.L.C

  	
   

  	
  MI

  	
   

  	
  K. Hovnanian Developments of Michigan, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF
  PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF WEST
  VIRGINIA, L.L.C.

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian Developments of West
  Virginia, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN SUMMIT HOMES, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian Developments of Ohio, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN T&C INVESTMENT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
  Note: involved in Hovstone Joint Venture Ownership Structure

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN T&C MANAGEMENT CO.,
  L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
  100%

  	
   

  	
  Note: involved in Hovstone Joint Venture Ownership Structure

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN WINDWARD HOMES, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT ASHBURN
  VILLAGE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT
  BAKERSFIELD, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT DULLES
  DISCOVERY CONDOMINIUM, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Development of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT DULLES
  DISCOVERY, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Development of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT HEMET, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT KENT
  ISLAND CONDOMINIUMS, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

15

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT KENT
  ISLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT MENIFEE
  VALLEY, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT PALM
  SPRINGS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT ST.
  MARGARETS LANDING, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT VINT HILL,
  L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S PRIVATE HOME PORTFOLIO,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  KHIP, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  KINGS COURT AT MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT APPLE RIDGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT BROOKHILL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT CHESTERFIELD, LLC

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT EAST MILL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT HERITAGE WOODS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT KENSINGTON WOODS, LLC

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT MORRISTOWN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT ROBERT MORRIS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SHERIDAN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPARTA, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPINNAKER POINTE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE HOLLOW, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE MEADOWS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

16

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE RUN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT TAMARACK HOLLOW, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT THE HIGHLANDS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT WEST ORANGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  M&M AT WHEATENA URBAN RENEWAL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT CRANBURY
  KNOLL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT EGG HARBOR,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT FREEHOLD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT HERITAGE
  LANDING, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT MONTGOMERY,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT
  PHILLIPSBURG, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT SOUTH BOUND
  BROOK URBAN RENEWAL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT SOUTH
  BRUNSWICK, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MATZEL & MUMFORD AT WOODLAND
  CREST, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MIDWEST BUILDING PRODUCTS &
  CONTRACTOR SERVICES, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian Developments of Ohio, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  MMIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, LP

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  NORTH MANATEE, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Land Investment Group of
  Florida, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  PADDOCKS, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Homes of Maryland, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  PINE AYR, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Homes of Maryland, L.L.C.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  RIDGEMORE UTILITY, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  THE LANDINGS AT SPINNAKER POINTE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  WASHINGTON HOMES AT COLUMBIA TOWN CENTER,
  LLC

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

17

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  LLC

  	
   

  	
  WESTMINSTER HOMES OF ALABAMA, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  WESTMINSTER HOMES OF MISSISSIPPI, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  LLC

  	
   

  	
  WOODLAND LAKES CONDOS @ BOWIE NEWTOWN,
  L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  COBBLESTONE SQUARE DEVELOPMENT, LLC

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Homes of Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  Cobblestone Square, LLC c/o Garrett Development Corporation

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  HERITAGE PINES, L.L.C.

  	
   

  	
  NC

  	
   

  	
  K. Hovnanian Companies of North Carolina, Inc.

  	
   

  	
  50%

  	
   

  	
  U.S. Home Corp.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  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%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  INGLEWOOD NORTH, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Land Investment Group of
  Maryland, L.L.C.

  	
   

  	
  30%

  	
   

  	
  Petrie Inglewood

  	
   

  	
  70%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  JAEGER ROAD 530

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Forecast Homes, Inc.

  	
   

  	
  50%

  	
   

  	
  AKT Jaeger 530 LLC

  (commercial developer) and managing member

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  K. HOVNANIAN AT LAKE RANCHO VIEJO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
  80%

  	
   

  	
  Hearthstone

  	
   

  	
  20%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  K. HOVNANIAN AT PHILADELPHIA I, L.L.C.

  	
   

  	
  PA

  	
   

  	
  Old City Joint Development, L.L.C.

  	
   

  	
  99.90%

  	
   

  	
  Various Lehman funds/entities (Old City Holdings, LLC) owns 80%
  of Old City Joint Development, L.L.C. and K. Hovnanian Companies of
  Pennsylvania,

  Inc. owns 20%

  	
   

  	
  Old City Development Inc. owns 0.1% of K. Hovnanian at
  Philadelphia I, L.LC.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  K. HOVNANIAN AT PORT IMPERIAL URBAN
  RENEWAL IV, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI Investments II, L.L.C.

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/

  Lehman

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  K. HOVNANIAN AT PORT IMPERIAL URBAN
  RENEWAL V, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI Investments II, L.L.C.

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/

  Lehman

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  K. HOVNANIAN INVESTMENTS II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/

  Lehman

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  LAUREL HIGHLANDS, LLC

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Homes of Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  Eagle Homes/

  Virgina, Inc.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  M&M AT MONROE WOODS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
  50%

  	
   

  	
  Realty Management, LLC

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  MM-BEACHFRONT NORTH I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M Investments, L.P.

  	
   

  	
  50%

  	
   

  	
  M&M at Long Branch, Inc.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  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%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

18

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  NRD, L.L.C.

  	
   

  	
  FL

  	
   

  	
  K. Hovnanian Homes of Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  KB Home Tampa, LLC

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  OLD CITY DEVELOPMENT, INC

  	
   

  	
  PA

  	
   

  	
  Old City Joint Development, L.L.C.

  	
   

  	
  100%

  	
   

  	
  Involved in Old City Organizational Structure

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  OLD CITY JOINT DEVELOPMENT, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
  20%

  	
   

  	
  Old City Holdings, L.L.C. (Lehman)

  	
   

  	
  80%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  PI INVESTMENTS I, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Investments, L.L.C.

  	
   

  	
  20%

  	
   

  	
  Lehman

  	
   

  	
  80%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  PI INVESTMENTS II, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian Investments II, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  RR HOUSTON DEVELOPERS, LLC

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston, LP

  	
   

  	
  50%

  	
   

  	
  Dickson Partners, LLC (25%) Tousa Homes, Inc. (25%)

  	
   

  	
  25% 25%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  RR HOUSTON INVESTORS, LLC

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston , LP

  	
   

  	
  22%

  	
   

  	
  J. Dickson Rogers, LP (25%) KB Homes Lone Star (31%) Tousa Homes, Inc.
  (22%)

  	
   

  	
  25% 31% 22%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  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%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  WHI-REPUBLIC, LLC

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Homes of Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  Kramer/Republic, LLC

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LLC

  	
   

  	
  WRIGHT FARM, LLC

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Homes of Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  US Home Corp.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LP

  	
   

  	
  PRESTON PARKER, LP

  	
   

  	
  TX

  	
   

  	
  Preston Parker, LLC (General Partner)

  	
   

  	
  50%

  	
   

  	
  Toll TX III, LP & Goodman Family of Builders, LP
  (limited partners)

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LP

  	
   

  	
  RR HOUSTON DEVELOPMENT, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston, LP (49%) Tousa
  Ventures, LLC (49%)

  	
   

  	
  49%

  49%

  	
   

  	
  RR Houston Developers, LLC

  	
   

  	
  2%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Joint Venture; LP

  	
   

  	
  RR HOUSTON INVESTMENT, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston, LP (21.5%) J.
  Dickson Rodgers, LP (24.5%) Tousa Ventures, LLC (21.5%) KB Homes Lone Star,
  LP (30.5%)

  	
   

  	
  21.5%

  24.5%

  21.5%

  30.5%

  	
   

  	
  RR Houston Investor, LLC

  	
   

  	
  2%

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  12TH* STREET RESIDENTIAL, LTD.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Lakeland Development

  	
   

  	
  20% profit

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  BRIGHTBEACH DEVELOPMENT, LTD.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Lakeland Development

  	
   

  	
  20% profit

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  BRIGHTCHASE, LTD.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Texas Land Development, Inc.

  	
   

  	
  20% profit

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  BRIGHTON HOMES AT WALDEN MANAGEMENT,
  L.L.C.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  50%

  	
   

  	
  BHHO, ltd.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

19

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  BRIGHTON HOMES AT WALDEN, LTD.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  49.5%

  	
   

  	
  BHHO, Ltd (49.5%) & Brighton Homes at Walden Mgt,
  L.L.C. (1%)

  	
   

  	
  49.5% & 1%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  CAMBRIDGE MORTGAGE, L.L.C.

  	
   

  	
  FL

  	
   

  	
  K. Hovnanian American Mortgage, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  EASTERN TITLE AGENCY, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  FOUNDERS TITLE AGENCY, INC.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  GOSLING ROAD DEVELOPMENT CO., INC.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  GOVERNOR’S ABSTRACT CO., INC.

  	
   

  	
  PA

  	
   

  	
  Eastern Title Agency, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HEXTER FAIR LAND TITLE COMPANY I, INC.

  	
   

  	
  TX

  	
   

  	
  Goodman Family of Builders, L.P.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HOMEBUYER’S MORTGAGE, INC.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HOVNANIAN FINANCIAL SERVICES I, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HOVNANIAN FINANCIAL SERVICES II, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HOVNANIAN FINANCIAL SERVICES IV, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  HUNTER MILL VILLAGE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  Hovnanian Land Investments Group of
  Virginia, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN AMERICAN MORTGAGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN AT MANALAPAN II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN AT PORT IMPERIAL URBAN
  RENEWAL II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN AT PORT IMPERIAL URBAN
  RENEWAL III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN CHESTERFIELD INVESTMENT,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN COOPERATIVE, INC.

  	
   

  	
  VA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN INVESTMENT PROPERTIES, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

20

 

	
  Type of

  Legal

  Entity

  	
   

  	
  Legal Entity Name

  	
   

  	
  State

  	
   

  	
  Name of Hovnanian’s parent

  company, member, or shareholder

  **If no percentage is indicated in

  right hand column, 100% of entity is owned by the single member

  	
   

  	
  If joint

  venture or

  has

  additional

  member, %

  controlled by

  Hovnanian or

  primary

  member **

  	
   

  	
  If joint

  venture or

  has

  additional

  member,

  additional

  partner or

  multiple

  member

  name

  	
   

  	
  Percentage

  ownership

  of partner

  or other

  member (if

  applicable)

  	
   

  	
  Restricted

  or Non-

  Restricted

  Subsidiary

  	
   

  	
  Subsidiary

  or Joint

  Venture or

  Corporate

  Office

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN MORTGAGE, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN POLAND, SP .Z.O.O.

  	
   

  	
  INTL

  	
   

  	
  K. Hovnanian Enterprises, Inc.

  	
   

  	
  69%

  	
   

  	
  K. Hovnanian International,

  Inc.

  	
   

  	
  31%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN PROPERTIES OF RED BANK, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Corporate Office Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN T&C HOMES AT FLORIDA,
  L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN T&C HOMES AT ILLINOIS,
  L.L.C.

  	
   

  	
  IL

  	
   

  	
  Hovnanian Developments of Illinois, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN T&C HOMES AT MINNESOTA,
  L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian Developments of Minnesota, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN TITLE REINSURANCE, INC.

  	
   

  	
  VT

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN VENTURE I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian at Raritan I, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT,
  L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments of California, Inc.

  	
   

  	
  100%

  	
   

  	
  Structured Lot Option

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  KINGS CROSSING AT MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
  50%

  	
   

  	
  M&M Investments, LP

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  MCKINLEY COURT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
  50%

  	
   

  	
  Meyer Gold

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  NEW HOMEBUYERS TITLE CO. (VIRGINIA)
  L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments of Metro
  Washington, Inc.

  	
   

  	
  50%

  	
   

  	
  Nova Land Title Co.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  NEW HOMEBUYERS TITLE COMPANY, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments of Maryland, Inc.

  	
   

  	
  50%

  	
   

  	
  Real Pro, Inc.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  NEW HOMEBUYERS TITLE COMPANY, L.L.C.
  [WEST VIRGINIA]

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian Developments of West
  Virginia, Inc.

  	
   

  	
  50%

  	
   

  	
  George Street LLC

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  PARK TITLE COMPANY, LLC

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian of Houston, L.P.

  	
   

  	
  50%

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  PARKWAY DEVELOPMENT COMPANY

  	
   

  	
  NC

  	
   

  	
  K. Hovnanian Companies of North Carolina, Inc.

  	
   

  	
  50%

  	
   

  	
  Monumental Life Insurance Company

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  PINNACLE MORTGAGE GROUP, INC.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian Developments of Ohio, Inc.

  	
   

  	
  66.67%

  	
   

  	
  Anthony Ciccarelli

  	
   

  	
  33.33%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  TITLE GROUP II, L.L.C.

  	
   

  	
  TN

  	
   

  	
  Washington Homes, Inc.

  	
   

  	
  50%

  	
   

  	
  Richard McNeese

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  TOWN HOMES AT MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The Matzel & Mumford
  Organization, Inc.

  	
   

  	
  50%

  	
   

  	
  Meyer Gold

  	
   

  	
  50%

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  
	
  OTHER; Non-Restricted Sub.

  	
   

  	
  TRINITY LIMITED TITLE AGENCY, INC.

  	
   

  	
  FL

  	
   

  	
  Hovnanian Developments of Florida, Inc.

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  

 

**  If no percentage is indicated, 100% of entity
is owned by the single member

 

21

 

SCHEDULE 5.1.8

MATERIAL ADVERSE EVENTS SINCE OCTOBER 31,
2004

 

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 swingline 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 Affiliate(1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  K. Hovnanian Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Agent:

  	
   

  	
  PNC Bank, National Association, as the
  agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The Fifth Amended and Restated Credit
  Agreement dated June 14, 2005 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)

  	
   

  
	
   

  	
  (3)

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

Effective Date:                   
      , 20     [TO BE
INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.](4)

 

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](5) 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)   Fill in the
appropriate terminology for the types of facilities under the Credit Agreement
that are being assigned under this Assignment (e.g. “Revolving Credit
Commitment”, “Term Loan Commitment”, etc.) The same percentage of each facility
owned by the Assignor shall be assigned to the Assignee.

(4)  Assignor shall pay a fee of $3,500 to the Agent in connection
with the Assignment.

(5)   To be added only if
the consent of the Agent is required by the terms of the Credit Agreement.

 

2

 

[Consented to:](6)

 

	
  [NAME OF BORROWER OR OTHER RELEVANT PARTY]

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

(6)   To be added only if
the consent of the Borrower and/or other parties (e.g. Swingline Lender, L/C
Issuer) is required by the terms of the Credit Agreement.

 

3

 

ANNEX 1

 

[                  ](7)

 

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.(8)

 

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.

 

(7)   Describe Credit
Agreement at option of Agent.

(8)   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.”

 

 

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 June 14, 2005, 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”).

 

BACKGROUND:

 

In order to induce the Lenders to make loans to K.
Hovnanian Enterprises, Inc., a California corporation (the “Borrower”), in
accordance with that certain Fifth 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 the principal of and
interest and fees on all Obligations (as defined in the Credit Agreement), both
those now in existence and those that shall hereafter be made, of the Borrower
to the Agent and the Lenders under the Credit Agreement and the Notes issued by
the Borrower in connection therewith and any extensions, renewals, replacements
or refundings thereof, and each and every other obligation or liability (both
those now in existence and those that shall hereafter arise and including,
without limitation, all costs and expenses of enforcement and collection,
including reasonable attorney’s fees) of the Borrower to the Lenders under the
Credit Agreement and the other Loan Documents (as defined in the Credit
Agreement), and any extensions, renewals, replacements or refundings thereof
(hereinafter referred to as the “Guaranteed Indebtedness”), whether or not such
Guaranteed Indebtedness or any portion thereof shall hereafter be released or
discharged or is for any reason invalid or unenforceable.

 

1.                                      Capitalized terms used herein and not otherwise
defined herein shall have such meanings given to them in the Credit Agreement.

 

2.                                      Each Guarantor agrees to make such full payment
forthwith upon demand of the Agent when the Guaranteed Indebtedness or any
portion thereof is due to be paid by the Borrower 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 the other Guarantors; (ii) the Agent
has taken any action of any nature against the Borrower or the other
Guarantors; (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.

 

3.                                      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.

 

4.                                      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, 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 of the Borrower or the other Guarantors which might
otherwise arise from payment by any Guarantor to the Lenders on account of the
Guaranteed Indebtedness or any portion thereof. 
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.

 

5.                                      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.

 

6.                                      Each Guarantor waives any and all notice with
respect to:  (i) acceptance by the
Agent on behalf of the Lenders of this Guarantee; (ii) the provisions of
any note, instrument or agreement relating to the Guaranteed Indebtedness; and (iii) any
default in connection with the Guaranteed Indebtedness.

 

7.                                      Each Guarantor waives any presentment, demand,
notice of dishonor or nonpayment, protest, and notice of protest in connection
with the Guaranteed Indebtedness.

 

2

 

8.                                      Each Guarantor agrees that the Lenders may from
time to time and as many times as the Lenders, in their sole discretion, deem
appropriate, do any of the following without notice to any Guarantor and
without adversely affecting the validity or enforceability of this Guarantee: (i) release,
surrender, exchange, compromise, or settle the Guaranteed Indebtedness or any
portion thereof; (ii) change, renew, or waive the terms of the Guaranteed
Indebtedness or any portion thereof; (iii) change, renew, or waive the
terms, 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; (iv) grant any
extension or indulgence with respect to the payment to the Lenders of the
Guaranteed Indebtedness or any portion thereof; (v) enter into any
agreement of forbearance with respect to the Guaranteed Indebtedness or any
portion thereof; (vi) release, surrender, exchange or compromise any
security held by the Agent on behalf of the Lenders for the Guaranteed
Indebtedness; (vii) release any Person who is a guarantor or surety or who
has agreed to purchase the Guaranteed Indebtedness or any portion thereof; and (viii) release,
surrender, exchange or compromise any security or lien held by the Agent on
behalf of the Lenders for the liabilities of any Person who is a guarantor or
surety for the Guaranteed Indebtedness or any portion thereof.  Each Guarantor agrees that the Agent on
behalf of the Lenders may do any of the above as it deems necessary or
advisable, in its sole discretion, without giving any notice to any Guarantor,
and that each Guarantor will remain liable for full payment to the Lenders of
the Guaranteed Indebtedness.

 

9.                                      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.

 

10.                               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.

 

11.                               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

 

3

 

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.

 

12.                               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.

 

13.                               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.

 

14.                               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.

 

15.                               Each Guarantor agrees that this Guarantee and the rights and obligations
of the parties hereto shall for all purposes be governed by and construed and
enforced in accordance with the substantive law of the State of New Jersey
without giving effect to its principles of conflict of laws.

 

16.                               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.

 

17.                               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

 

4

 

assignment or transfer of the Guaranteed Indebtedness and (ii) this
Guarantee shall inure to the benefit of the Lenders, and their successors and
assigns.

 

18.                               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 8.1.14 [Involuntary
Proceedings] or Section 8.1.15 [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.

 

19.                               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.

 

20.                               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 their respective names on the
signature page hereof in the manner provided in Section 10.6
[Notices] of the Credit Agreement.

 

21.                               (a)                                 Each Guarantor agrees that the provisions of this
Guarantee are severable, and in an action or proceeding involving any state or
federal bankruptcy, insolvency or other law affecting the rights of creditors
generally:

 

(i)                                     if
any clause or provision shall be held invalid or unenforceable in whole or in
part in any jurisdiction, then such invalidity or unenforceability shall affect
only such clause or provision, or part thereof, in such jurisdiction and shall
not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision in this Guarantee in any jurisdiction.

 

(ii)                                  if
this Guarantee would be held or determined to be void, invalid or unenforceable
on account of the amount of a Guarantor’s aggregate liability under this
Guarantee, then, notwithstanding any other provision of this Guarantee to the
contrary, the aggregate amount of such liability shall, without any further
action by the Lenders, such Guarantor or any other Person, be automatically
limited and reduced to the highest amount which is valid and enforceable as
determined in such action or proceeding, which (without limiting the generality
of the foregoing) may be an amount which is not greater than the greater of:

 

(A)                               the
fair consideration actually received by such Guarantor under the terms of and as
a result of the Loan Documents, including, without limiting the generality of
the foregoing, and to the extent not inconsistent with applicable federal and
state laws affecting the enforceability of guarantees, distributions or
advances made to such Guarantor with the proceeds of any credit extended under
the Loan Documents in exchange for its guaranty of the Guaranteed Indebtedness,
or

 

5

 

(B)                               the
excess of (1) the amount of the fair saleable value of the assets of such
Guarantor as of the date of this Guarantee as determined in accordance with
applicable federal and state laws governing determinations of the insolvency of
debtors as in effect on the date thereof over (2) the amount of all
liabilities of such Guarantor as of the date of this Guarantee, also as
determined on the basis of applicable federal and state laws governing the
insolvency of debtors as in effect on the date thereof.

 

(b)                                 If
the guarantee by any one or more Guarantors of the Guaranteed Indebtedness is
held or determined to be void, invalid or unenforceable, in whole or in part,
such holding or determination shall not impair or affect:

 

(i)                                     the
validity and enforceability of the guarantee hereunder by any other Guarantor,
which shall continue in full force and effect in accordance with its terms; or

 

(ii)                                  the
validity and enforceability of any clause or provision not so held to be void,
invalid or unenforceable.

 

22.                               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.

 

23.                               Each Guarantor (i) hereby irrevocably submits to the nonexclusive
jurisdiction of the Superior Court of New Jersey, Law Division, Middlesex County,
or any successor to said court, and to the nonexclusive jurisdiction of the
United States District Court for the District of New Jersey, or any successor
to said court (hereinafter referred to as the “New Jersey 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 Jersey 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 Jersey 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
Jersey Courts, of the merits of any such suit, action or proceeding or the
jurisdiction of the New Jersey 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

 

6

 

against any Guarantor or any of any Guarantor’s assets or to serve process
on any Guarantor by any means authorized by Law.

 

24.                               Each Guarantor waives all defenses based on suretyship not specifically
waived.

 

25.                               At any time when the
Borrower wishes to cause the Lenders to release a Guarantor from its
obligations under this Guarantee (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 25.

 

(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 or (iii) Corporate Office Subsidiary
incident to it becoming an Non-Restricted Person or (iv) any Guarantor at
the time 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 Borrower’s request
for such release the Borrower has designated such Guarantor as a “Non-Restricted
Person” in compliance with Section 2.11.2 of the Credit Agreement), 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 clause 26(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
$5,000,000 (except Corporate Office Subsidiary, if otherwise applicable), the
consent of Required Lenders shall be required; and

 

(c)                                  For the release of
Hovnanian or any Guarantor (not described in clause 26(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 $5,000,000
(except Corporate Office Subsidiary, if otherwise applicable), the consent of
100% of the Lenders shall be required.

 

(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 shall be in
accordance with Section 2.11 of the Credit Agreement.

 

26.                               All of the terms,
conditions and provisions of Sections 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

 

7

 

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 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 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 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] 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.

 

27.          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.

 

28.          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.

 

29.          Notwithstanding
the other provisions contained herein, at such time as the Guaranteed
Indebtedness shall have been 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.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

8

 

[SIGNATURE
PAGE 1 OF 35 TO THE GUARANTY AGREEMENT]

 

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:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  J. Larry Sorsby

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARROW PROPERTIES, 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
  BALLANTRAE, 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 CARMEL DEL MAR, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  CASTILE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  CHAPARRAL, INC.

  

 

 

[SIGNATURE
PAGE 2 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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
  KLOCKNER FARMS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  TERRAZA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  TROVATA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  LAKEWOOD, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LOWER
  SAUCON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH VI, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  VII, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MANALAPAN, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MARLBORO II, INC.

  

 

 

[SIGNATURE
PAGE 3 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP

  IV, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT METRO
  DC SOUTH, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONTCLAIR NJ, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONTGOMERY I, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONROE
  II, INC.

  
	
   

  	
   

  
	
   

  	
  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
  PLAINSBORO III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  PRINCETON, 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 SCOTCH
  PLAINS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SMITHVILLE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK III,

  INC.

  

 

 

[SIGNATURE
PAGE 4 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 THE
  CEDARS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  THORNBURY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TIERRASANTA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TUXEDO,
  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT UNION
  TOWNSHIP I, INC.

  
	
   

  	
   

  
	
   

  	
  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 COMPANIES
  NORTHEAST,

  INC.

  

 

 

[SIGNATURE
PAGE 5 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF NEW YORK,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF

  PENNSYLVANIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF SOUTHERN

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION

  MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENT OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF D.C.,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ILLINOIS, INC.

  

 

 

[SIGNATURE
PAGE 6 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF METRO

  WASHINGTON, 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 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
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN EQUITIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN FORECAST
  HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF
  NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF
  VIRGINIA, INC.

  

 

 

[SIGNATURE
PAGE 7 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN INVESTMENT
  PROPERTIES

  OF NEW JERSEY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PA REAL
  ESTATE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PORT
  IMPERIAL URBAN

  RENEWAL, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NEWARK

  URBAN RENEWAL CORPORATION, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NORTH

  BRUNSWICK V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF WALL, INC.

  
	
   

  	
   

  
	
   

  	
  KHC ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
  LANDARAMA, INC.

  
	
   

  	
   

  
	
   

  	
  M&M AT LONG BRANCH,
  INC.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD OF
  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  MCNJ, INC.

  
	
   

  	
   

  
	
   

  	
  PINE BROOK COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
  REFLECTIONS OF YOU
  INTERIORS, INC.

  
	
   

  	
   

  
	
   

  	
  SEABROOK ACCUMULATION

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  STONEBROOK HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  THE MATZEL &
  MUMFORD ORGANIZATION,

  INC.

  
	
   

  	
   

  
	
   

  	
  WASHINGTON HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  TENNESSEE, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WH LAND I, INC.

  

 

 

[SIGNATURE
PAGE 8 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  WH PROPERTIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
  On behalf of,
  and as Executive Vice

  President and Chief Financial Officer 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive
  Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S.
  Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  MARYLAND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  NORTH CAROLINA, 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.

  
									

 

 

[SIGNATURE PAGE 9 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  ALABAMA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  MISSISSIPPI,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  WOODLAND LAKES CONDOS @
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  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.

  
						

 

 

[SIGNATURE
PAGE 10 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN FOUR
  SEASONS AT

  HISTORIC VIRGINIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  CAMERON

  STATION, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  LAUREL

  HIGHLANDS, 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 VINT

  HILL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  EDISON CONTRACT
  SERVICES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT BARNEGAT I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT BERKELEY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  BERNARDS V, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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.

  
						

 

 

[SIGNATURE
PAGE 11 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT DENVILLE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  DEPTFORD TOWNSHIP,

  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 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 GREAT
  NOTCH, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT GUTTENBERG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HACKETTSTOWN II,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 12 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT HAMBURG

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HAMBURG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HAWTHORNE, 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
  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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LITTLE
  EGG HARBOR

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR,

  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
  MARLBORO TOWNSHIP

  IX, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP

  V, L.L.C.

  

 

 

[SIGNATURE
PAGE 13 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT MARLBORO
  TOWNSHIP

  VIII, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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 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 MONROE III, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONROE IV, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONTVALE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MT. OLIVE
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  BERGEN II, 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,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  HALEDON, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  WILDWOOD,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 14 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT
  NORTHFIELD, 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
  PITTSGROVE, 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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  SPRINGFIELD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  TEANECK, 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  WANAQUE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WARREN
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WASHINGTON,
  L.L.C.

  

 

 

[SIGNATURE
PAGE 15 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 WOODHILL
  ESTATES,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  WOOLWICH I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CENTRAL
  ACQUISITIONS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  INVESTMENTS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH
  CENTRAL

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH
  JERSEY

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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’S PRIVATE
  HOME

  PORTFOLIO, L.L.C.

  

 

 

[SIGNATURE
PAGE 16 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New

  Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  CALIFORNIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT 4S II,
  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.

  

 

 

[SIGNATURE PAGE 17 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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 CITY IN
  THE HILLS,

  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 GASLAMP
  SQUARE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HIGHWATER, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  COSTA, L.L.C

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA HABRA KNOLLS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MENIFEE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MOSAIC,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT OLDE
  ORCHARD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PACIFIC
  BLUFFS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PARK LANE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RANCHO
  SANTA

  MARGARITA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RIVERBEND II, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RIVERBEND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT ROWLAND
  HEIGHTS,

  L.L.C.

  

 

 

[SIGNATURE PAGE 18 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT SHELF
  COMPANY, 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.

  
	
   

  	
   

  
	
   

  	
  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 T&C
  MANAGEMENT CO.,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS AT

  BAKERSFIELD, 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.

  

 

 

[SIGNATURE PAGE 19 OF 35 TO THE GUARANTY
AGREEMENT]

 

	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of California,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOLDINGS
  NJ, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New Jersey,

  Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President
  and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 20 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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
  NORTHAMPTON. L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RAPHO,
  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.

  

 

 

[SIGNATURE PAGE 21 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT
  HOMES 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  FLORIDA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CAMBRIDGE
  HOMES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  CAMP SPRINGS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  FOREST RUN,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  RENAISSANCE

  PLAZA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  RUSSETT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN WINDWARD
  HOMES, L.L.C.

  

 

 

[SIGNATURE
PAGE 22 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF MARYLAND,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Developments of Florida, Inc., as

  the sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Enterprises, Inc., as member

  of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 23 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN GREAT WESTERN BUILDING

  COMPANY, LLC

  
							

 

 

[SIGNATURE
PAGE 24 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN GREAT WESTERN HOMES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Arizona, Inc., as the

  sole member of each of the foregoing limited

  liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HIGHLAND SHORES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF MINNESOTA,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Minnesota,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OHIO REALTY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 25 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF WEST VIRGINIA,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 26 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF

  MICHIGAN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Michigan,

  Inc., as the sole member of the foregoing

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  KINGS COURT AT MONTGOMERY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT CHESTERFIELD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT KENSINGTON WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT WEST ORANGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT APPLE RIDGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT BROOKHILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT EAST MILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT HERITAGE WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT MORRISTOWN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SHERIDAN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPARTA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPINNAKER POINTE,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE HOLLOW, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE MEADOWS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE RUN, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 27 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT THE HIGHLANDS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT CRANBURY

  KNOLL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT EGG
  HARBOR,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT FREEHOLD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT HERITAGE

  LANDING, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT MONTGOMERY,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT PHILLIPSBURG,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT SOUTH

  BRUNSWICK, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT WOODLAND

  CREST, 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 28 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT ROBERT MORRIS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  M&M AT TAMARACK HOLLOW, 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, LP, as the sole member

  of each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT FAIRWOOD,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  
	
   

  	
   

  
	
   

  	
  PADDOCKS, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 29 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  TEXAS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Goodman Family of Builders, L.P., as the

  sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Developments of

  Florida, as general partner of each of

  the foregoing limited partnerships.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
										

 

 

[SIGNATURE
PAGE 30 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  NORTH MANATEE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Land Investment Group of

  Florida, L.L.C., as the sole member of the

  foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS II,L.L.C.

  
							

 

 

[SIGNATURE
PAGE 31 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT YONKERS III, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian at Northern Westchester, Inc.,

  as the sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY CONDOMINIUM, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Development of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 32 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF DELAWARE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Delaware,

  Inc., as the sole member of the foregoing

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 33 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  GOODMAN FAMILY OF BUILDERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Florida, as

  general partner of the foregoing limited

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Texas, Inc.,

  as general partner of each of the foregoing

  limited partnerships.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 34 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M INVESTMENTS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Matzel & Mumford Organization, Inc.,

  as general partner of the foregoing limited

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices for each of the foregoing

  Guarantors:

  
	
   

  	
   

  	
   

  
	
   

  	
  c/o K. Hovnanian Enterprises, Inc.

  
	
   

  	
  10 Route 35, P.O. Box 500

  
	
   

  	
  Red Bank, NJ 07701

  
	
   

  	
  Attention: Kevin C. Hake

  
	
   

  	
  Telephone: (732) 747-7800

  
	
   

  	
  Telecopy: (732) 747-6835

  
							

 

 

[SIGNATURE
PAGE 35 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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
Fifth Amended and Restated Credit Agreement dated June 14, 2005 as the same has
been made and may be modified, supplemented or amended, 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 or amended, and (iii) 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 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 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 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 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:

  	
   

  	
   

  	
   

  
												

 

2

 

EXHIBIT
1.1 (R)

 

FORM OF 

[AMENDED AND RESTATED] REVOLVING CREDIT NOTE

 

	
   

  	
  Pittsburgh,
  Pennsylvania

  
	
  $

  	
  , 2005

  	
   

  

 

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 Fifth
Amended and Restated Credit Agreement dated June 14, 2005 among the Borrower,
Hovnanian Enterprises, Inc., as a Guarantor, the Lenders now or hereafter party
thereto, PNC Bank, National Association, as administrative agent for the
Lenders (the “Agent”) and the Lender (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, 8.1.14 and/or 8.1.15 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
LIBO-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.

 

1

 

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 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 June 18, 2004, 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.  Maker 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 for all purposes
be governed by and construed and enforced in accordance with the internal laws
of the State of New Jersey without giving effect to its conflicts of law
principles.

 

2

 

[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:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

3

 

EXHIBIT 1.1(S)

 

FORM
OF

SWING LOAN NOTE

 

	
  $

  	
   

  	
  East Brunswick, New Jersey

  

 

 

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                         U.S.
Dollars (U.S. $                     )
and (ii) the aggregate unpaid principal amount of all “Swing Loans” made by the
Lender to the Borrower pursuant to the Fifth Amended and Restated Credit
Agreement dated June 14, 2005, among the Borrower, Hovnanian Enterprises, Inc.,
as Guarantor, the Lenders now or hereafter party thereto and PNC Bank, National
Association, as administrative agent (the “Agent”) (as amended, 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 respective successors and
assigns, and the benefits hereof shall inure to the benefit of the Agent, the
Lenders and their successors and

 

 

assigns.  All references herein to the “Borrower,” the “Agent”
and the “Lenders” shall be deemed to apply to the Borrower, the Agent and the
Lenders, respectively, and their respective successors and assigns.

 

This Note and any other documents delivered in connection herewith and
the rights and obligations of the parties hereto and thereto shall for all
purposes be governed by and construed and enforced in accordance with the
substantive law of the State of New Jersey without giving effect to the
principles of conflict of laws.

 

2

 

[SIGNATURE PAGE 1 0F 1 TO SWING LOAN NOTE]

 

IN WITNESS WHEREOF, the undersigned has executed this Note by its duly
authorized officers.

 

	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

3

 

EXHIBIT 2.4.1

 

FORM OF 

LOAN REQUEST

 

	
  TO:

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION, as agent

  
	
   

  	
   

  	
  Telephone No.: 732-220-3566

  
	
   

  	
   

  	
  Telecopier No.: 732-220-3744

  
	
   

  	
   

  	
  Attention: Mr. Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RE:          Fifth
  Amended and Restated Credit Agreement (the “Credit Agreement”) dated
  June 14, 2005 by and 

  
	
  between K. HOVNANIAN ENTERPRISES, INC. (the “Company”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders
  from time to time parties thereto, and PNC BANK, NATIONAL ASSOCIATION, as
  administrative agent for the Lenders (the “Agent”).  Capitalized terms used but not defined
  herein shall have the meanings given to them in the Credit Agreement.

  

 

 

A.            Pursuant
to Section 2.4 of the Credit Agreement the undersigned hereby makes the
following Loan Request:

 

	
  1.

  	
   

  	
  Aggregate Principal Amount of Loan [amount shall be in integral
  multiples of $500,000 and not be less than $2,500,000 for each Borrowing
  Tranche to which the LIBO-Rate Option applies and amount shall be in integral
  multiples of $100,000 and not be less than $500,000 for each Borrowing
  Tranche to which to the Base Rate Option applies]

  	
   

  	
  U.S. $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Proposed Borrowing Date: [must be
  at least 3 Business Days after receipt by 11:00 a.m. by Agent of this Loan
  Request with respect to Loans to which the LIBO-Rate Option applies and no
  earlier than the same day with respect to Loans to which the Base Rate Option
  applies]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place of Payment:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Length of Interest Period

  (if LIBO-Rate Option elected):

  [must be: one, two, three or six months]

  	
   

  	
   

  

 

 

B.         Borrower elects that
interest on the Loan requested hereby shall be based on the LIBO-Rate
Option/Base Rate Option (circle one) and shall be calculated in accordance with
Section 3 of the Credit Agreement.

 

C.         As of the date hereof and
the date of making of the Loan:  the
representations and warranties contained in Section 5 of the Credit Agreement
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 in all material respects on and as of the specific
date referred to therein); and no Event of Default or Potential Default has
occurred and is continuing or shall exist. The undersigned certifies to the
accuracy of the foregoing.

 

	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
						

 

 

EXHIBIT 2.4.2

 

FORM OF

SWING LOAN REQUEST

 

	
  TO:

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
  Telephone No.: 732-220-3566

  
	
   

  	
   

  	
  Telecopier No.: 732-220-3744

  
	
   

  	
   

  	
  Attention: Mr. Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  Fifth Amended and Restated Credit Agreement (the “Credit Agreement”)
  dated June 14, 2005 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 Loans:

  [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 in all material respects on and as of the specific dates or times referred
to therein); and no Event of Default or Potential Default has occurred and is
continuing or shall exist.

 

 

The undersigned hereby certifies the accuracy of the foregoing.                               

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
														

 

2

 

EXHIBIT 2.12.1-1

 

FORM OF

REVOLVING CREDIT COMMITMENT INCREASE AGREEMENT

 

This Revolving Credit Commitment Increase Agreement (the “Acknowledgement”)
is made                           
by                          ,
a                                                                            
(the “Increasing Bank”).

 

Background

 

Reference is made to the Fifth Amended and Restated Credit Agreement
dated June 14, 2005 (the “Agreement”) 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, as
administrative agent for itself and the other Lenders under the Credit Agreement
(the “Agent”).  Capitalized terms defined
in the Agreement are used herein as defined therein.

 

Agreement

 

The Increasing Lender, and each of the other parties hereto agree that,
except as set forth below, effective as of the date hereof it shall increase
its commitment by $                         
 so that its total commitment shall be $                       .  The Increasing Lender hereby acknowledges
that it has heretofore received a new Note in the amount of the commitment as
increased as set forth above.

 

Reference is made to Section 2.12 [Increase in Commitments] of the
Agreement.  Schedule 1.1(B) hereto sets
forth the Commitments of the Increasing Lender and each of the other Lenders
after giving effect to the increase on the date hereof.  Schedule 1.1(B) to the Agreement is being
amended and restated effective on the date hereof to read as set forth on
Schedule 1.1(B) hereto.  Schedule 1
hereto lists as of the date hereof the amount of Loans under each outstanding
Borrowing Tranche.  Notwithstanding the
foregoing (a) on the date hereof the Borrower shall repay all outstanding
Loans to which either of the Base Rate Option or the LIBO-Rate Option applies
and simultaneously reborrow a like amount of Loans under each such Interest
Rate Option from the Lenders (including the Increasing Lender) according to the
Ratable Shares set forth on attached Schedule 1.1(B) and shall be subject to
breakage fees and other indemnities provided in Section 4.6.2.

 

IN WITNESS WHEREOF, the Increasing Lender has duly executed and
delivered this Joinder as of the date and year first above written.

 

 

	
   

  	
  [INCREASING LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED
  TO:

  	
   

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN ENTERPRISES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  as Agent

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

2

 

EXHIBIT
2.12.1-2

 

FORM OF

LENDER JOINDER AND ASSUMPTION AGREEMENT

 

This Lender Joinder and
Assumption Agreement (the “Joinder”) is made as of               ,
20      (the “Effective Date”) by                                                     ,
(the “New Commitment Provider”).

 

Background

 

Reference is made to the
Fifth Amended and Restated Credit Agreement dated June 14, 2005 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”) (as the same has been and
may hereafter be modified, supplemented or amended the “Agreement”).  Capitalized terms defined in the Agreement
are used herein as defined therein.

 

Agreement

 

In consideration of the
Lenders’ permitting the New Commitment Provider to become a Lender under the
Agreement, the New Commitment Provider agrees that effective as of the
Effective Date it shall become, and shall be deemed to be, a Lender under the
Agreement and each of the other Loan Documents and agrees that from the Effective
Date and so long as the New Commitment Provider remains a party to the
Agreement, such New Commitment Provider shall assume the obligations of a
Lender under and perform, comply with and be bound by each of the provisions of
the Agreement which are stated to apply to a Lender and shall be entitled to
the benefits, rights and remedies set forth therein and in each of the other
Loan Documents.  The New Commitment
Provider hereby acknowledges that it has heretofore received a true and correct
copy of the Agreement (including any modifications thereof or supplements or
waivers thereto) as in effect on the Effective Date [and the executed original of its Note dated the Effective
Date issued by the Borrowers under the Agreement in the face amount of $                           ].

 

The Commitments and Ratable
Shares of the New Commitment Provider and each of the other Lenders are as set
forth on Schedule 1.1(B) to the Agreement. 
Schedule 1.1(B) to the Agreement is being amended and restated effective
as of the Effective Date hereof to read as set forth on Schedule 1.1(B)
hereto.  Schedule 1 hereto lists as of
the date hereof the amount of Loans under each outstanding Borrowing
Tranche.  Notwithstanding the foregoing
(a) on the date hereof the Borrower shall repay all outstanding Loans to
which either of the Base Rate Option or the LIBO-Rate Option applies and
simultaneously reborrow a like amount of Loans under each such Interest Rate
Option from the Lenders (including the New Commitment Provider) according to the
Ratable Shares set forth on attached Schedule 1.1(B) and shall be subject to
breakage fees and other indemnities provided in Section 4.6.2.

 

The New Commitment Provider
is executing and delivering this Joinder as of the Effective Date and
acknowledges that (A) it shall share ratably in all Base Rate Loans borrowed by
the Borrower on and after the Effective Date; (B) it shall participate in all
new LIBO-Rate Loans borrowed by the Borrower on and after the Effective Date
according to its Ratable Share; and (C) it shall participate in all Letters of
Credit outstanding on the Effective Date according to its Ratable Share.

 

[SIGNATURE PAGES FOLLOW]

 

 

IN WITNESS WHEREOF, the New
Commitment Provider has duly executed and delivered this Joinder as of the
Effective Date.

 

 

	
   

  	
  [NEW LENDER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

ACKNOWLEDGED:

 

PNC BANK, NATIONAL ASSOCIATION,

as Agent

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

K. HOVNANIAN ENTERPRISES, INC.

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

EXHIBIT 7.3.3.1

 

FORM OF

QUARTERLY COMPLIANCE CERTIFICATE

 

                           ,
200

 

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:

 

1.             I refer to the Fifth Amended and Restated Credit
Agreement dated June 14, 2005 (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,                                                   
the                    
of the Borrower do hereby certify as of the [month/quarter/year] ended                              ,
200   (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”.

 

2.             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

  	
   

  	
  No 

  

 

3.             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

  	
   

  	
  No 

  

 

 

4.             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

  	
   

  	
  No 

  

 

5.             Debt
Rating. Based on the Debt Rating and the
Leverage Ratio, the Applicable Margin to become effective as of                                   
shall be                      .

 

6.             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:                                                                 .

 

7.             No event has occurred
that is continuing which constitutes an Event of Default or Potential Default,
except as follows:                                                                                              .

 

8.             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                      ,
200  .

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
														

 

 

Exhibit A to Exhibit 7.3.3.1

 

Borrowing Base Compliance Calculations

 

 

Exhibit B to Exhibit 7.3.3.1

 

Summary Covenant Compliance Calculations

 

 

Exhibit C to Exhibit 7.3.3.1

 

Detailed Covenant Compliance Calculations

 

 

EXHIBIT 7.3.3.2

 

FORM OF

BORROWING BASE CERTIFICATE

 

                            ,
         

 

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 Fifth Amended and Restated Credit Agreement dated June
14, 2005 (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,                                                   
Chief Executive Officer, President, Treasurer, Chief Financial Officer or
principal accounting officer of the Borrower, do hereby certify on behalf of
the Borrower as of the end of the month ended                       ,
        (the “Report Date”), that the
“Borrowing Base” and the components thereof are calculated and set forth on the
spreadsheet attached hereto as Exhibit A - “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. HOVANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Executive
  Officer, President,

  Treasurer, Chief Financial Officer or

  principal accounting officer

  
											

 

 

Exhibit A to Exhibit 7.3.3.2

 

Borrowing Base Compliance CalculationsExhibit 10.2

 

AMENDED AND RESTATED GUARANTY AND SURETYSHIP AGREEMENT

 

THIS AMENDED AND
RESTATED GUARANTY AND SURETYSHIP AGREEMENT (the “Guarantee”) is made and
entered into June 14, 2005, 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”).

 

BACKGROUND:

 

In order to induce the
Lenders to make loans to K. Hovnanian Enterprises, Inc., a California
corporation (the “Borrower”), in accordance with that certain Fifth 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 the
principal of and interest and fees on all Obligations (as defined in the Credit
Agreement), both those now in existence and those that shall hereafter be made,
of the Borrower to the Agent and the Lenders under the Credit Agreement and the
Notes issued by the Borrower in connection therewith and any extensions, renewals,
replacements or refundings thereof, and each and every other obligation or
liability (both those now in existence and those that shall hereafter arise and
including, without limitation, all costs and expenses of enforcement and
collection, including reasonable attorney’s fees) of the Borrower to the
Lenders under the Credit Agreement and the other Loan Documents (as defined in
the Credit Agreement), and any extensions, renewals, replacements or refundings
thereof (hereinafter referred to as the “Guaranteed Indebtedness”), whether or
not such Guaranteed Indebtedness or any portion thereof shall hereafter be
released or discharged or is for any reason invalid or unenforceable.

 

1.                                      Capitalized terms used herein and not otherwise defined herein shall have such
meanings given to them in the Credit Agreement.

 

2.                                      Each Guarantor agrees to make such full payment forthwith upon demand of
the Agent when the Guaranteed Indebtedness or any portion thereof is due to be
paid by the Borrower 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 the other Guarantors; (ii) the Agent has taken any action of
any nature against the Borrower or the other Guarantors; (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.

 

 

3.                                      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.

 

4.                                      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, 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
of the Borrower or the other Guarantors which might otherwise arise from
payment by any Guarantor to the Lenders on account of the Guaranteed
Indebtedness or any portion thereof.  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.

 

5.                                      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.

 

6.                                      Each Guarantor waives any and all notice with respect to:  (i) acceptance by the Agent on behalf of
the Lenders of this Guarantee; (ii) the provisions of any note, instrument
or agreement relating to the Guaranteed Indebtedness; and (iii) any
default in connection with the Guaranteed Indebtedness.

 

7.                                      Each Guarantor waives any presentment, demand, notice of dishonor or
nonpayment, protest, and notice of protest in connection with the Guaranteed
Indebtedness.

 

8.                                      Each Guarantor agrees that the Lenders may from time to time and as many
times as the Lenders, in their sole discretion, deem appropriate, do any of the
following without notice to any Guarantor and without adversely affecting the
validity or enforceability of this Guarantee:

 

2

 

(i) release, surrender, exchange, compromise, or
settle the Guaranteed Indebtedness or any portion thereof; (ii) change,
renew, or waive the terms of the Guaranteed Indebtedness or any portion
thereof; (iii) change, renew, or waive the terms, 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; (iv) grant any extension or indulgence with respect
to the payment to the Lenders of the Guaranteed Indebtedness or any portion
thereof; (v) enter into any agreement of forbearance with respect to the
Guaranteed Indebtedness or any portion thereof; (vi) release, surrender,
exchange or compromise any security held by the Agent on behalf of the Lenders
for the Guaranteed Indebtedness; (vii) release any Person who is a
guarantor or surety or who has agreed to purchase the Guaranteed Indebtedness
or any portion thereof; and (viii) release, surrender, exchange or
compromise any security or lien held by the Agent on behalf of the Lenders for
the liabilities of any Person who is a guarantor or surety for the Guaranteed
Indebtedness or any portion thereof. 
Each Guarantor agrees that the Agent on behalf of the Lenders may do any
of the above as it deems necessary or advisable, in its sole discretion,
without giving any notice to any Guarantor, and that each Guarantor will remain
liable for full payment to the Lenders of the Guaranteed Indebtedness.

 

9.                                      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.

 

10.                               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.

 

11.                               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,

 

3

 

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.

 

12.                               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.

 

13.                               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.

 

14.                               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.

 

15.                               Each Guarantor agrees that this Guarantee and the rights and obligations
of the parties hereto shall for all purposes be governed by and construed and
enforced in accordance with the substantive law of the State of New Jersey
without giving effect to its principles of conflict of laws.

 

16.                               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.

 

17.                               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.

 

4

 

18.                               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 8.1.14 [Involuntary
Proceedings] or Section 8.1.15 [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.

 

19.                               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.

 

20.                               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 their respective names on the
signature page hereof in the manner provided in Section 10.6
[Notices] of the Credit Agreement.

 

21.                               (a)                                 Each Guarantor agrees that the provisions of this Guarantee are severable,
and in an action or proceeding involving any state or federal bankruptcy,
insolvency or other law affecting the rights of creditors generally:

 

(i)                                     if any
clause or provision shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction and shall not
in any manner affect such clause or provision in any other jurisdiction, or any
other clause or provision in this Guarantee in any jurisdiction.

 

(ii)                                  if this
Guarantee would be held or determined to be void, invalid or unenforceable on
account of the amount of a Guarantor’s aggregate liability under this
Guarantee, then, notwithstanding any other provision of this Guarantee to the
contrary, the aggregate amount of such liability shall, without any further
action by the Lenders, such Guarantor or any other Person, be automatically
limited and reduced to the highest amount which is valid and enforceable as
determined in such action or proceeding, which (without limiting the generality
of the foregoing) may be an amount which is not greater than the greater of:

 

(A)                               the fair
consideration actually received by such Guarantor under the terms of and as a
result of the Loan Documents, including, without limiting the generality of the
foregoing, and to the extent not inconsistent with applicable federal and state
laws affecting the enforceability of guarantees, distributions or advances made
to such Guarantor with the proceeds of any credit extended under the Loan
Documents in exchange for its guaranty of the Guaranteed Indebtedness, or

 

(B)                               the excess
of (1) the amount of the fair saleable value of the assets of such
Guarantor as of the date of this Guarantee as determined in accordance with
applicable federal and state laws governing determinations of the insolvency of
debtors as in

 

5

 

effect on the date thereof over (2) the
amount of all liabilities of such Guarantor as of the date of this Guarantee,
also as determined on the basis of applicable federal and state laws governing
the insolvency of debtors as in effect on the date thereof.

 

(b)                                 If the
guarantee by any one or more Guarantors of the Guaranteed Indebtedness is held
or determined to be void, invalid or unenforceable, in whole or in part, such
holding or determination shall not impair or affect:

 

(i)                                     the validity
and enforceability of the guarantee hereunder by any other Guarantor, which
shall continue in full force and effect in accordance with its terms; or

 

(ii)                                  the validity
and enforceability of any clause or provision not so held to be void, invalid
or unenforceable.

 

22.                               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.

 

23.                               Each Guarantor (i) hereby irrevocably submits to the nonexclusive
jurisdiction of the Superior Court of New Jersey, Law Division, Middlesex
County, or any successor to said court, and to the nonexclusive jurisdiction of
the United States District Court for the District of New Jersey, or any
successor to said court (hereinafter referred to as the “New Jersey 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 Jersey 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 Jersey 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
Jersey Courts, of the merits of any such suit, action or proceeding or the
jurisdiction of the New Jersey 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.

 

24.                               Each Guarantor waives all defenses based on suretyship not specifically
waived.

 

6

 

25.                               At any time when the
Borrower wishes to cause the Lenders to release a Guarantor from its
obligations under this Guarantee (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 25.

 

(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 or (iii) Corporate Office Subsidiary
incident to it becoming an Non-Restricted Person or (iv) any Guarantor at
the time 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 Borrower’s request
for such release the Borrower has designated such Guarantor as a “Non-Restricted
Person” in compliance with Section 2.11.2 of the Credit Agreement), 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 clause 26(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
$5,000,000 (except Corporate Office Subsidiary, if otherwise applicable), the
consent of Required Lenders shall be required; and

 

(c)                                  For the release of
Hovnanian or any Guarantor (not described in clause 26(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 $5,000,000
(except Corporate Office Subsidiary, if otherwise applicable), the consent of
100% of the Lenders shall be required.

 

(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 shall be in
accordance with Section 2.11 of the Credit Agreement.

 

26.                               All of the terms,
conditions and provisions of Sections 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 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

 

7

 

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] 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.

 

27.                               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.

 

28.                               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.

 

29.                               Notwithstanding the
other provisions contained herein, at such time as the Guaranteed Indebtedness
shall have been 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.

 

[SIGNATURES
APPEAR ON FOLLOWING PAGE]

 

8

 

[SIGNATURE PAGE 1 OF 35 TO THE GUARANTY AGREEMENT]

 

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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
  Name:

  	
  J. Larry Sorsby

  
	
   

  	
  Title:

  	
  Executive Vice President
  and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARROW PROPERTIES, 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 BALLANTRAE, 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
  CARMEL DEL MAR, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT CASTILE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT CHAPARRAL, INC.

  

 

 

[SIGNATURE
PAGE 2 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 KLOCKNER FARMS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA TERRAZA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA TROVATA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LAKEWOOD, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LOWER SAUCON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MAHWAH VI, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH VII, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MANALAPAN, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MARLBORO II, INC.

  

 

 

[SIGNATURE
PAGE 3 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP

  IV, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT METRO DC SOUTH, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONTCLAIR NJ, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONTGOMERY I, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONROE II, INC.

  
	
   

  	
   

  
	
   

  	
  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 PLAINSBORO III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PRINCETON, 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 SCOTCH PLAINS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  SMITHVILLE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH BRUNSWICK III,

  INC.

  

 

 

[SIGNATURE
PAGE 4 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 THE CEDARS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT THORNBURY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  TIERRASANTA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TUXEDO, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT UNION TOWNSHIP I, INC.

  
	
   

  	
   

  
	
   

  	
  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 COMPANIES NORTHEAST,

  INC.

  

 

 

[SIGNATURE
PAGE 5 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN COMPANIES OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF NEW YORK,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF

  PENNSYLVANIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF SOUTHERN

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CONSTRUCTION II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CONSTRUCTION III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CONSTRUCTION

  MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENT OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF

  ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF D.C.,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF

  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF

  ILLINOIS, INC.

  

 

 

[SIGNATURE
PAGE 6 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN DEVELOPMENTS OF METRO

  WASHINGTON, 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 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 ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN EQUITIES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN FORECAST HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF VIRGINIA, INC.

  

 

 

[SIGNATURE
PAGE 7 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN INVESTMENT PROPERTIES

  OF NEW JERSEY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PA REAL ESTATE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PORT IMPERIAL URBAN

  RENEWAL, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES OF NEWARK

  URBAN RENEWAL CORPORATION, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES OF NORTH

  BRUNSWICK V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES OF WALL, INC.

  
	
   

  	
   

  
	
   

  	
  KHC ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
  LANDARAMA, INC.

  
	
   

  	
   

  
	
   

  	
  M&M AT LONG BRANCH, INC.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD OF DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  MCNJ, INC.

  
	
   

  	
   

  
	
   

  	
  PINE BROOK COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  REFLECTIONS OF YOU INTERIORS, INC.

  
	
   

  	
   

  
	
   

  	
  SEABROOK ACCUMULATION

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  STONEBROOK HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  THE MATZEL & MUMFORD ORGANIZATION,

  INC.

  
	
   

  	
   

  
	
   

  	
  WASHINGTON HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF TENNESSEE, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WH LAND I, INC.

  

 

 

[SIGNATURE
PAGE 8 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  WH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
  On behalf of, and as Executive Vice

  President and Chief Financial Officer of

  each of the foregoing corporations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  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: 

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  MARYLAND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  NORTH CAROLINA, 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.

  
									

 

 

[SIGNATURE
PAGE 9 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF ALABAMA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF MISSISSIPPI,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  WOODLAND LAKES CONDOS @ 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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   /s/
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  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.

  
							

 

 

[SIGNATURE
PAGE 10 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN FOUR SEASONS AT

  HISTORIC VIRGINIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT CAMERON

  STATION, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT LAUREL

  HIGHLANDS, 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 VINT

  HILL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  EDISON CONTRACT SERVICES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  BARNEGAT I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  BERKELEY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT BERNARDS V, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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.

  
							

 

 

[SIGNATURE
PAGE 11 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  DENVILLE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT DEPTFORD TOWNSHIP,

  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
  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 GREAT NOTCH, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  GUTTENBERG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HACKETTSTOWN II,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 12 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT HAMBURG

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HAMBURG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HAWTHORNE, 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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  LITTLE EGG HARBOR,

  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 MARLBORO TOWNSHIP

  IX, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP

  V, L.L.C.

  

 

 

[SIGNATURE
PAGE 13 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT MARLBORO TOWNSHIP

  VIII, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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
  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
  MONROE III, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONROE IV, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONTVALE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MT. OLIVE TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH BERGEN II, 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,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH HALEDON, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH WILDWOOD,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 14 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT NORTHFIELD, 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 PITTSGROVE, 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
  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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH BRUNSWICK,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SPRINGFIELD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TEANECK, 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WANAQUE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WARREN TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WASHINGTON, L.L.C.

  

 

 

[SIGNATURE
PAGE 15 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 WOODHILL ESTATES,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WOOLWICH I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CENTRAL ACQUISITIONS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN INVESTMENTS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH CENTRAL

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH JERSEY

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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’S PRIVATE HOME

  PORTFOLIO, L.L.C.

  

 

 

[SIGNATURE
PAGE 16 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
    /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  AND

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  K. Hovnanian Developments of New

  Jersey II, Inc., as member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   /s/
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  CALIFORNIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT 4S II, 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.

  
																		

 

 

[SIGNATURE
PAGE 17 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 CITY IN THE HILLS,

  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 GASLAMP SQUARE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HIGHWATER, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA COSTA, L.L.C

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  LA HABRA KNOLLS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MENIFEE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MOSAIC, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT OLDE ORCHARD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  PARK LANE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RANCHO SANTA

  MARGARITA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  RIVERBEND II, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  RIVERBEND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT ROWLAND HEIGHTS,

  L.L.C.

  

 

 

[SIGNATURE PAGE 18 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT SHELF COMPANY, 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.

  
	
   

  	
   

  
	
   

  	
  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 T&C MANAGEMENT CO.,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  BAKERSFIELD, 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.

  

 

 

[SIGNATURE PAGE 19 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN’S FOUR SEASONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of California,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOLDINGS NJ, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of New Jersey,

  Inc., as member of each of the foregoing

  limited liability companies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  AND

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest: 

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
											

 

 

[SIGNATURE PAGE 20 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 NORTHAMPTON. L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RAPHO, 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.

  

 

 

[SIGNATURE PAGE 21 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT HOMES 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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  FLORIDA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CAMBRIDGE HOMES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT CAMP SPRINGS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT FOREST RUN,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT RENAISSANCE

  PLAZA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT RUSSETT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN WINDWARD HOMES, L.L.C.

  

 

 

[SIGNATURE
PAGE 22 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF MARYLAND,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Developments of
  Florida, Inc., as

  the sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Enterprises, Inc., as
  member

  of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  AND

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
								

 

 

 

[SIGNATURE
PAGE 23 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest: 

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN GREAT WESTERN BUILDING

  COMPANY, LLC

  

 

 

[SIGNATURE
PAGE 24 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN GREAT WESTERN HOMES,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Arizona,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HIGHLAND SHORES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF MINNESOTA,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Minnesota,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OHIO REALTY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES, L.L.C.

  

 

 

[SIGNATURE
PAGE 25 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF WEST VIRGINIA,

  L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES 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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 26 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF

  MICHIGAN, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Michigan,

  Inc., as the sole member of the foregoing

  limited liability company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KINGS COURT AT MONTGOMERY, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT CHESTERFIELD, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT KENSINGTON WOODS, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT WEST ORANGE, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT APPLE RIDGE, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT BROOKHILL, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT EAST MILL, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT HERITAGE WOODS, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT MORRISTOWN, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SHERIDAN, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT
  SPARTA, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT
  SPINNAKER POINTE, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE HOLLOW, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE MEADOWS, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE RUN, L.L.C.

  	
   

  

 

 

[SIGNATURE
PAGE 27 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT THE HIGHLANDS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT CRANBURY

  KNOLL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL &
  MUMFORD AT EGG HARBOR,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT FREEHOLD,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT HERITAGE

  LANDING,L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT MONTGOMERY,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT PHILLIPSBURG,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT SOUTH

  BRUNSWICK, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT WOODLAND

  CREST, 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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 28 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT ROBERT MORRIS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  M&M AT TAMARACK HOLLOW, 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, LP, as the sole member

  of each of the foregoing limited liability

  companies.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT FAIRWOOD,

  L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PADDOCKS, L.L.C.

  	
   

  

 

 

[SIGNATURE
PAGE 29 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  TEXAS, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Goodman Family of Builders, L.P., as the

  sole member of each of the foregoing

  limited liability companies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  K. Hovnanian Developments of

  Florida, as general partner of each of

  the foregoing limited partnerships.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and

  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 30 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  NORTH MANATEE, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Land Investment Group of

  Florida, L.L.C., as the sole member of the

  foregoing limited liability company.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT YONKERS I, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT YONKERS II,L.L.C.

  	
   

  

 

 

[SIGNATURE
PAGE 31 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT YONKERS III, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian at Northern
  Westchester, Inc.,

  as the sole member of each of the foregoing

  limited liability companies.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY CONDOMINIUM, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  K. Hovnanian Development of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 32 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF DELAWARE,

  L.L.C.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Delaware,

  Inc., as the sole member of the foregoing

  limited liability company.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  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:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 33 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  GOODMAN FAMILY OF BUILDERS, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Florida, as

  general partner of the foregoing limited

  partnership.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON II, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of
  Texas, Inc.,

  as general partner of each of the foregoing

  limited partnerships.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  

 

 

[SIGNATURE
PAGE 34 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M INVESTMENTS, L.P.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The Matzel & Mumford
  Organization, Inc.,

  as general partner of the foregoing limited

  partnership.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  	
   

  
	
   

  	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices for each of the
  foregoing

  Guarantors:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c/o K. Hovnanian Enterprises, Inc.

  	
   

  
	
   

  	
  10 Route 35, P.O. Box 500

  	
   

  
	
   

  	
  Red Bank, NJ 07701

  	
   

  
	
   

  	
  Attention: Kevin C. Hake

  	
   

  
	
   

  	
  Telephone: (732) 747-7800

  	
   

  
	
   

  	
  Telecopy: (732) 747-6835

  	
   

  

 

 

[SIGNATURE
PAGE 35 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas G. Paul

  	
   

  
	
   

  	
  Name:

  	
  Douglas G. Paul

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  

 

 

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 swingline 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 Affiliate(1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  K. Hovnanian Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Agent:

  	
   

  	
  PNC Bank, National Association, as the
  agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The Fifth Amended and Restated Credit
  Agreement dated June 14, 2005 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)

  	
   

  
	
   

  	
  (3)

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

Effective Date:                   
      , 20     [TO BE
INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
TRANSFER IN THE REGISTER THEREFOR.](4)

 

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](5) 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)   Fill in the
appropriate terminology for the types of facilities under the Credit Agreement
that are being assigned under this Assignment (e.g. “Revolving Credit
Commitment”, “Term Loan Commitment”, etc.) The same percentage of each facility
owned by the Assignor shall be assigned to the Assignee.

(4)  Assignor shall pay a fee of $3,500 to the Agent in connection
with the Assignment.

(5)   To be added only if
the consent of the Agent is required by the terms of the Credit Agreement.

 

2

 

[Consented to:](6)

 

	
  [NAME OF BORROWER OR OTHER RELEVANT PARTY]

  
	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

(6)   To be added only if
the consent of the Borrower and/or other parties (e.g. Swingline Lender, L/C
Issuer) is required by the terms of the Credit Agreement.

 

3

 

ANNEX 1

 

[                  ](7)

 

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.(8)

 

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.

 

(7)   Describe Credit
Agreement at option of Agent.

(8)   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.”

 

 

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 June 14, 2005, 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”).

 

BACKGROUND:

 

In order to induce the Lenders to make loans to K.
Hovnanian Enterprises, Inc., a California corporation (the “Borrower”), in
accordance with that certain Fifth 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 the principal of and
interest and fees on all Obligations (as defined in the Credit Agreement), both
those now in existence and those that shall hereafter be made, of the Borrower
to the Agent and the Lenders under the Credit Agreement and the Notes issued by
the Borrower in connection therewith and any extensions, renewals, replacements
or refundings thereof, and each and every other obligation or liability (both
those now in existence and those that shall hereafter arise and including,
without limitation, all costs and expenses of enforcement and collection,
including reasonable attorney’s fees) of the Borrower to the Lenders under the
Credit Agreement and the other Loan Documents (as defined in the Credit
Agreement), and any extensions, renewals, replacements or refundings thereof
(hereinafter referred to as the “Guaranteed Indebtedness”), whether or not such
Guaranteed Indebtedness or any portion thereof shall hereafter be released or
discharged or is for any reason invalid or unenforceable.

 

1.                                      Capitalized terms used herein and not otherwise
defined herein shall have such meanings given to them in the Credit Agreement.

 

2.                                      Each Guarantor agrees to make such full payment
forthwith upon demand of the Agent when the Guaranteed Indebtedness or any
portion thereof is due to be paid by the Borrower 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 the other Guarantors; (ii) the Agent
has taken any action of any nature against the Borrower or the other
Guarantors; (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.

 

3.                                      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.

 

4.                                      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, 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 of the Borrower or the other Guarantors which might
otherwise arise from payment by any Guarantor to the Lenders on account of the
Guaranteed Indebtedness or any portion thereof. 
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.

 

5.                                      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.

 

6.                                      Each Guarantor waives any and all notice with
respect to:  (i) acceptance by the
Agent on behalf of the Lenders of this Guarantee; (ii) the provisions of
any note, instrument or agreement relating to the Guaranteed Indebtedness; and (iii) any
default in connection with the Guaranteed Indebtedness.

 

7.                                      Each Guarantor waives any presentment, demand,
notice of dishonor or nonpayment, protest, and notice of protest in connection
with the Guaranteed Indebtedness.

 

2

 

8.                                      Each Guarantor agrees that the Lenders may from
time to time and as many times as the Lenders, in their sole discretion, deem
appropriate, do any of the following without notice to any Guarantor and
without adversely affecting the validity or enforceability of this Guarantee: (i) release,
surrender, exchange, compromise, or settle the Guaranteed Indebtedness or any
portion thereof; (ii) change, renew, or waive the terms of the Guaranteed
Indebtedness or any portion thereof; (iii) change, renew, or waive the terms,
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; (iv) grant any extension or
indulgence with respect to the payment to the Lenders of the Guaranteed
Indebtedness or any portion thereof; (v) enter into any agreement of
forbearance with respect to the Guaranteed Indebtedness or any portion thereof;
(vi) release, surrender, exchange or compromise any security held by the
Agent on behalf of the Lenders for the Guaranteed Indebtedness; (vii) release
any Person who is a guarantor or surety or who has agreed to purchase the
Guaranteed Indebtedness or any portion thereof; and (viii) release,
surrender, exchange or compromise any security or lien held by the Agent on
behalf of the Lenders for the liabilities of any Person who is a guarantor or
surety for the Guaranteed Indebtedness or any portion thereof.  Each Guarantor agrees that the Agent on
behalf of the Lenders may do any of the above as it deems necessary or
advisable, in its sole discretion, without giving any notice to any Guarantor,
and that each Guarantor will remain liable for full payment to the Lenders of
the Guaranteed Indebtedness.

 

9.                                      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.

 

10.                               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.

 

11.                               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

 

3

 

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.

 

12.                               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.

 

13.                               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.

 

14.                               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.

 

15.                               Each Guarantor agrees that this Guarantee and the rights and obligations
of the parties hereto shall for all purposes be governed by and construed and
enforced in accordance with the substantive law of the State of New Jersey
without giving effect to its principles of conflict of laws.

 

16.                               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.

 

17.                               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

 

4

 

assignment or transfer of the Guaranteed Indebtedness and (ii) this
Guarantee shall inure to the benefit of the Lenders, and their successors and
assigns.

 

18.                               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 8.1.14 [Involuntary
Proceedings] or Section 8.1.15 [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.

 

19.                               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.

 

20.                               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 their respective names on the
signature page hereof in the manner provided in Section 10.6
[Notices] of the Credit Agreement.

 

21.                               (a)                                 Each Guarantor agrees that the provisions of this
Guarantee are severable, and in an action or proceeding involving any state or
federal bankruptcy, insolvency or other law affecting the rights of creditors
generally:

 

(i)                                     if
any clause or provision shall be held invalid or unenforceable in whole or in
part in any jurisdiction, then such invalidity or unenforceability shall affect
only such clause or provision, or part thereof, in such jurisdiction and shall
not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision in this Guarantee in any jurisdiction.

 

(ii)                                  if
this Guarantee would be held or determined to be void, invalid or unenforceable
on account of the amount of a Guarantor’s aggregate liability under this
Guarantee, then, notwithstanding any other provision of this Guarantee to the
contrary, the aggregate amount of such liability shall, without any further
action by the Lenders, such Guarantor or any other Person, be automatically
limited and reduced to the highest amount which is valid and enforceable as
determined in such action or proceeding, which (without limiting the generality
of the foregoing) may be an amount which is not greater than the greater of:

 

(A)                               the
fair consideration actually received by such Guarantor under the terms of and
as a result of the Loan Documents, including, without limiting the generality
of the foregoing, and to the extent not inconsistent with applicable federal
and state laws affecting the enforceability of guarantees, distributions or
advances made to such Guarantor with the proceeds of any credit extended under
the Loan Documents in exchange for its guaranty of the Guaranteed Indebtedness,
or

 

5

 

(B)                               the
excess of (1) the amount of the fair saleable value of the assets of such
Guarantor as of the date of this Guarantee as determined in accordance with
applicable federal and state laws governing determinations of the insolvency of
debtors as in effect on the date thereof over (2) the amount of all
liabilities of such Guarantor as of the date of this Guarantee, also as
determined on the basis of applicable federal and state laws governing the
insolvency of debtors as in effect on the date thereof.

 

(b)                                 If
the guarantee by any one or more Guarantors of the Guaranteed Indebtedness is
held or determined to be void, invalid or unenforceable, in whole or in part,
such holding or determination shall not impair or affect:

 

(i)                                     the
validity and enforceability of the guarantee hereunder by any other Guarantor,
which shall continue in full force and effect in accordance with its terms; or

 

(ii)                                  the
validity and enforceability of any clause or provision not so held to be void,
invalid or unenforceable.

 

22.                               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.

 

23.                               Each Guarantor (i) hereby irrevocably submits to the nonexclusive
jurisdiction of the Superior Court of New Jersey, Law Division, Middlesex
County, or any successor to said court, and to the nonexclusive jurisdiction of
the United States District Court for the District of New Jersey, or any
successor to said court (hereinafter referred to as the “New Jersey 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 Jersey 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 Jersey 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
Jersey Courts, of the merits of any such suit, action or proceeding or the
jurisdiction of the New Jersey 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

 

6

 

against any Guarantor or any of any Guarantor’s assets or to serve process
on any Guarantor by any means authorized by Law.

 

24.                               Each Guarantor waives all defenses based on suretyship not specifically
waived.

 

25.                               At any time when the
Borrower wishes to cause the Lenders to release a Guarantor from its
obligations under this Guarantee (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 25.

 

(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 or (iii) Corporate Office Subsidiary
incident to it becoming an Non-Restricted Person or (iv) any Guarantor at
the time 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 Borrower’s request
for such release the Borrower has designated such Guarantor as a “Non-Restricted
Person” in compliance with Section 2.11.2 of the Credit Agreement), 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 clause 26(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
$5,000,000 (except Corporate Office Subsidiary, if otherwise applicable), the
consent of Required Lenders shall be required; and

 

(c)                                  For the release of
Hovnanian or any Guarantor (not described in clause 26(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 $5,000,000
(except Corporate Office Subsidiary, if otherwise applicable), the consent of
100% of the Lenders shall be required.

 

(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 shall be in accordance
with Section 2.11 of the Credit Agreement.

 

26.                               All of the terms,
conditions and provisions of Sections 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

 

7

 

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 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 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 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] 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.

 

27.          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.

 

28.          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.

 

29.          Notwithstanding
the other provisions contained herein, at such time as the Guaranteed
Indebtedness shall have been 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.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

8

 

[SIGNATURE
PAGE 1 OF 35 TO THE GUARANTY AGREEMENT]

 

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:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  J. Larry Sorsby

  
	
   

  	
  Title:

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARROW PROPERTIES, 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
  BALLANTRAE, 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 CARMEL DEL MAR, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  CASTILE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  CHAPARRAL, INC.

  

 

 

[SIGNATURE
PAGE 2 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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
  KLOCKNER FARMS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  TERRAZA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  TROVATA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  LAKEWOOD, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LOWER
  SAUCON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH VI, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MAHWAH
  VII, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MANALAPAN, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MARLBORO II, INC.

  

 

 

[SIGNATURE
PAGE 3 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP

  IV, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT METRO
  DC SOUTH, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONTCLAIR NJ, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MONTGOMERY I, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONROE
  II, INC.

  
	
   

  	
   

  
	
   

  	
  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
  PLAINSBORO III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  PRINCETON, 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 SCOTCH
  PLAINS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SMITHVILLE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK III,

  INC.

  

 

 

[SIGNATURE
PAGE 4 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 THE
  CEDARS, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  THORNBURY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TIERRASANTA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT TUXEDO,
  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT UNION
  TOWNSHIP I, INC.

  
	
   

  	
   

  
	
   

  	
  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 COMPANIES
  NORTHEAST,

  INC.

  

 

 

[SIGNATURE
PAGE 5 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF NEW YORK,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES OF

  PENNSYLVANIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES
  OF SOUTHERN

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION II, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION III, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  CONSTRUCTION

  MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENT OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF D.C.,

  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ILLINOIS, INC.

  

 

 

[SIGNATURE
PAGE 6 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF METRO

  WASHINGTON, 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 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
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN EQUITIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN FORECAST
  HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF
  NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF
  VIRGINIA, INC.

  

 

 

[SIGNATURE
PAGE 7 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN INVESTMENT
  PROPERTIES

  OF NEW JERSEY, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PA REAL
  ESTATE, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PORT
  IMPERIAL URBAN

  RENEWAL, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NEWARK

  URBAN RENEWAL CORPORATION, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NORTH

  BRUNSWICK V, INC.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN PROPERTIES
  OF WALL, INC.

  
	
   

  	
   

  
	
   

  	
  KHC ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
  LANDARAMA, INC.

  
	
   

  	
   

  
	
   

  	
  M&M AT LONG BRANCH,
  INC.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD OF
  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  MCNJ, INC.

  
	
   

  	
   

  
	
   

  	
  PINE BROOK COMPANY,
  INC.

  
	
   

  	
   

  
	
   

  	
  REFLECTIONS OF YOU
  INTERIORS, INC.

  
	
   

  	
   

  
	
   

  	
  SEABROOK ACCUMULATION

  CORPORATION

  
	
   

  	
   

  
	
   

  	
  STONEBROOK HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  THE MATZEL &
  MUMFORD ORGANIZATION,

  INC.

  
	
   

  	
   

  
	
   

  	
  WASHINGTON HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  TENNESSEE, INC.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WH LAND I, INC.

  

 

 

[SIGNATURE
PAGE 8 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  WH PROPERTIES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
  On behalf of,
  and as Executive Vice

  President and Chief Financial Officer 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive
  Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S.
  Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  MARYLAND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  NORTH CAROLINA, 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.

  
									

 

 

[SIGNATURE PAGE 9 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  ALABAMA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER HOMES OF
  MISSISSIPPI,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  WOODLAND LAKES CONDOS @
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  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.

  
						

 

 

[SIGNATURE
PAGE 10 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN FOUR
  SEASONS AT

  HISTORIC VIRGINIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  CAMERON

  STATION, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  LAUREL

  HIGHLANDS, 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 VINT

  HILL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  EDISON CONTRACT
  SERVICES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT BARNEGAT I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT BERKELEY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  BERNARDS V, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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.

  
						

 

 

[SIGNATURE
PAGE 11 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT DENVILLE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  DEPTFORD TOWNSHIP,

  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 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 GREAT
  NOTCH, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT GUTTENBERG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HACKETTSTOWN II,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 12 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT HAMBURG

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HAMBURG, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HAWTHORNE, 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
  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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LITTLE
  EGG HARBOR

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LITTLE EGG HARBOR,

  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
  MARLBORO TOWNSHIP

  IX, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP

  V, L.L.C.

  

 

 

[SIGNATURE
PAGE 13 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT MARLBORO
  TOWNSHIP

  VIII, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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 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 MONROE III, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONROE IV, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MONTVALE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MT. OLIVE
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  BERGEN II, 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,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  HALEDON, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT NORTH
  WILDWOOD,

  L.L.C.

  

 

 

[SIGNATURE
PAGE 14 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT
  NORTHFIELD, 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
  PITTSGROVE, 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 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  SPRINGFIELD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  TEANECK, 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.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  WANAQUE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WARREN
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT WASHINGTON,
  L.L.C.

  

 

 

[SIGNATURE
PAGE 15 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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 WOODHILL
  ESTATES,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  WOOLWICH I, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CENTRAL
  ACQUISITIONS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN
  INVESTMENTS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH
  CENTRAL

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN NORTH
  JERSEY

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  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’S PRIVATE
  HOME

  PORTFOLIO, L.L.C.

  

 

 

[SIGNATURE
PAGE 16 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New

  Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  CALIFORNIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT 4S II,
  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.

  

 

 

[SIGNATURE PAGE 17 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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 CITY IN
  THE HILLS,

  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 GASLAMP
  SQUARE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT
  HIGHWATER, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA
  COSTA, L.L.C

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT LA HABRA KNOLLS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MENIFEE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT MOSAIC,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT OLDE
  ORCHARD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PACIFIC
  BLUFFS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT PARK LANE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RANCHO
  SANTA

  MARGARITA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RIVERBEND II, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RIVERBEND, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT ROWLAND
  HEIGHTS,

  L.L.C.

  

 

 

[SIGNATURE PAGE 18 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT SHELF
  COMPANY, 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.

  
	
   

  	
   

  
	
   

  	
  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 T&C
  MANAGEMENT CO.,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS AT

  BAKERSFIELD, 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.

  

 

 

[SIGNATURE PAGE 19 OF 35 TO THE GUARANTY
AGREEMENT]

 

	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of California,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOLDINGS
  NJ, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New Jersey,

  Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President
  and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 20 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  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
  NORTHAMPTON. L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT RAPHO,
  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.

  

 

 

[SIGNATURE PAGE 21 OF 35 TO THE
GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT
  HOMES 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J.
  Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice
  President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  FLORIDA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN CAMBRIDGE
  HOMES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  CAMP SPRINGS,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  FOREST RUN,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  RENAISSANCE

  PLAZA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT
  RUSSETT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN WINDWARD
  HOMES, L.L.C.

  

 

 

[SIGNATURE
PAGE 22 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF MARYLAND,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Developments of Florida, Inc., as

  the sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN COMPANIES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Enterprises, Inc., as member

  of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of New Jersey

  II, Inc., as member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 23 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN GREAT WESTERN BUILDING

  COMPANY, LLC

  
							

 

 

[SIGNATURE
PAGE 24 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN GREAT WESTERN HOMES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Arizona, Inc., as the

  sole member of each of the foregoing limited

  liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN AT HIGHLAND SHORES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF MINNESOTA,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Minnesota,

  Inc., as the sole member of each of the

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OHIO REALTY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 25 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES OF WEST VIRGINIA,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN SUMMIT HOMES 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 26 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN SUMMIT HOMES OF

  MICHIGAN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Michigan,

  Inc., as the sole member of the foregoing

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  KINGS COURT AT MONTGOMERY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT CHESTERFIELD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT KENSINGTON WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT WEST ORANGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT APPLE RIDGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT BROOKHILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT EAST MILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT HERITAGE WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT MORRISTOWN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SHERIDAN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPARTA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPINNAKER POINTE,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE HOLLOW, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE MEADOWS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  M&M AT SPRUCE RUN, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 27 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT THE HIGHLANDS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT CRANBURY

  KNOLL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT EGG
  HARBOR,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT FREEHOLD, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT HERITAGE

  LANDING, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT MONTGOMERY,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT PHILLIPSBURG,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT SOUTH

  BRUNSWICK, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MATZEL & MUMFORD AT WOODLAND

  CREST, 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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 28 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M AT ROBERT MORRIS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  M&M AT TAMARACK HOLLOW, 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, LP, as the sole member

  of each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT FAIRWOOD,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN HOMES AT MAXWELL

  PLACE. L.L.C.

  
	
   

  	
   

  
	
   

  	
  PADDOCKS, L.L.C.

  
							

 

 

[SIGNATURE
PAGE 29 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN LAND INVESTMENT GROUP OF

  TEXAS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Goodman Family of Builders, L.P., as the

  sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Developments of

  Florida, as general partner of each of

  the foregoing limited partnerships.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
											

 

 

[SIGNATURE
PAGE 30 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  NORTH MANATEE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian Land Investment Group of

  Florida, L.L.C., as the sole member of the

  foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS II,L.L.C.

  
							

 

 

[SIGNATURE
PAGE 31 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN AT YONKERS III, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian at Northern Westchester, Inc.,

  as the sole member of each of the foregoing

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY CONDOMINIUM, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN’S FOUR SEASONS AT

  DULLES DISCOVERY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Development of Metro

  Washington, Inc., as the sole member of

  each of the foregoing limited liability

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 32 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  K. HOVNANIAN HOMES OF DELAWARE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Delaware,

  Inc., as the sole member of the foregoing

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 33 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  GOODMAN FAMILY OF BUILDERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Florida, as

  general partner of the foregoing limited

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  K. HOVNANIAN OF HOUSTON, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K. Hovnanian Developments of Texas, Inc.,

  as general partner of each of the foregoing

  limited partnerships.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 34 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  M&M INVESTMENTS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Matzel & Mumford Organization, Inc.,

  as general partner of the foregoing limited

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  J. Larry Sorsby

  
	
   

  	
   

  	
   

  	
  Executive Vice President and Chief

  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices for each of the foregoing

  Guarantors:

  
	
   

  	
   

  	
   

  
	
   

  	
  c/o K. Hovnanian Enterprises, Inc.

  
	
   

  	
  10 Route 35, P.O. Box 500

  
	
   

  	
  Red Bank, NJ 07701

  
	
   

  	
  Attention: Kevin C. Hake

  
	
   

  	
  Telephone: (732) 747-7800

  
	
   

  	
  Telecopy: (732) 747-6835

  
							

 

 

[SIGNATURE
PAGE 35 OF 35 TO THE GUARANTY AGREEMENT]

 

	
   

  	
  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
Fifth Amended and Restated Credit Agreement dated June 14, 2005 as the same has
been made and may be modified, supplemented or amended, 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 or amended, and (iii) 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 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 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 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 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:

  	
   

  	
   

  	
   

  

 

2

 

EXHIBIT 1.1 (R)

 

FORM OF 

[AMENDED AND RESTATED] REVOLVING CREDIT NOTE

 

	
   

  	
  Pittsburgh,
  Pennsylvania

  
	
  $

  	
  , 2005

  	
   

  

 

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 Fifth
Amended and Restated Credit Agreement dated June 14, 2005 among the Borrower,
Hovnanian Enterprises, Inc., as a Guarantor, the Lenders now or hereafter party
thereto, PNC Bank, National Association, as administrative agent for the
Lenders (the “Agent”) and the Lender (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, 8.1.14 and/or 8.1.15 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
LIBO-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.

 

1

 

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 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 June 18, 2004, 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.  Maker 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 for all
purposes be governed by and construed and enforced in accordance with the
internal laws of the State of New Jersey without giving effect to its conflicts
of law principles.

 

2

 

[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:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

3

 

EXHIBIT
1.1(S)

 

FORM
OF

SWING LOAN NOTE

 

	
  $

  	
   

  	
  East Brunswick, New Jersey

  

 

 

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                         U.S.
Dollars (U.S. $                     )
and (ii) the aggregate unpaid principal amount of all “Swing Loans” made by the
Lender to the Borrower pursuant to the Fifth Amended and Restated Credit
Agreement dated June 14, 2005, among the Borrower, Hovnanian Enterprises, Inc.,
as Guarantor, the Lenders now or hereafter party thereto and PNC Bank, National
Association, as administrative agent (the “Agent”) (as amended, 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 respective successors and
assigns, and the benefits hereof shall inure to the benefit of the Agent, the
Lenders and their successors and

 

 

assigns.  All references herein to the “Borrower,” the “Agent”
and the “Lenders” shall be deemed to apply to the Borrower, the Agent and the
Lenders, respectively, and their respective successors and assigns.

 

This Note and any other documents delivered in connection herewith and
the rights and obligations of the parties hereto and thereto shall for all
purposes be governed by and construed and enforced in accordance with the
substantive law of the State of New Jersey without giving effect to the
principles of conflict of laws.

 

2

 

[SIGNATURE PAGE 1 0F 1 TO SWING LOAN NOTE]

 

IN WITNESS WHEREOF, the undersigned has executed this Note by its duly
authorized officers.

 

	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

3

 

EXHIBIT 2.4.1

 

FORM OF 

LOAN REQUEST

 

	
  TO:

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION, as agent

  
	
   

  	
   

  	
  Telephone No.: 732-220-3566

  
	
   

  	
   

  	
  Telecopier No.: 732-220-3744

  
	
   

  	
   

  	
  Attention: Mr. Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RE:          Fifth
  Amended and Restated Credit Agreement (the “Credit Agreement”) dated
  June 14, 2005 by and 

  
	
  between K. HOVNANIAN ENTERPRISES, INC. (the “Company”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders
  from time to time parties thereto, and PNC BANK, NATIONAL ASSOCIATION, as
  administrative agent for the Lenders (the “Agent”).  Capitalized terms used but not defined
  herein shall have the meanings given to them in the Credit Agreement.

  

 

 

A.            Pursuant
to Section 2.4 of the Credit Agreement the undersigned hereby makes the
following Loan Request:

 

	
  1.

  	
   

  	
  Aggregate Principal Amount of Loan [amount shall be in integral
  multiples of $500,000 and not be less than $2,500,000 for each Borrowing
  Tranche to which the LIBO-Rate Option applies and amount shall be in integral
  multiples of $100,000 and not be less than $500,000 for each Borrowing
  Tranche to which to the Base Rate Option applies]

  	
   

  	
  U.S. $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Proposed Borrowing Date: [must be
  at least 3 Business Days after receipt by 11:00 a.m. by Agent of this Loan
  Request with respect to Loans to which the LIBO-Rate Option applies and no
  earlier than the same day with respect to Loans to which the Base Rate Option
  applies]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place of Payment:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Length of Interest Period

  (if LIBO-Rate Option elected):

  [must be: one, two, three or six months]

  	
   

  	
   

  

 

 

B.         Borrower elects that
interest on the Loan requested hereby shall be based on the LIBO-Rate
Option/Base Rate Option (circle one) and shall be calculated in accordance with
Section 3 of the Credit Agreement.

 

C.         As of the date hereof and
the date of making of the Loan:  the
representations and warranties contained in Section 5 of the Credit Agreement
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 in all material respects on and as of the specific
date referred to therein); and no Event of Default or Potential Default has
occurred and is continuing or shall exist. The undersigned certifies to the
accuracy of the foregoing.

 

	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
						

 

 

EXHIBIT 2.4.2

 

FORM OF

SWING LOAN REQUEST

 

	
  TO:

  	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
  Telephone No.: 732-220-3566

  
	
   

  	
   

  	
  Telecopier No.: 732-220-3744

  
	
   

  	
   

  	
  Attention: Mr. Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  Fifth Amended and Restated Credit Agreement (the “Credit Agreement”)
  dated June 14, 2005 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 Loans:

  [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 in all material respects on and as of the specific dates or times referred
to therein); and no Event of Default or Potential Default has occurred and is
continuing or shall exist.

 

 

The undersigned hereby certifies the accuracy of the foregoing.                               

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: 

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
														

 

2

 

EXHIBIT 2.12.1-1

 

FORM OF

REVOLVING CREDIT COMMITMENT INCREASE AGREEMENT

 

This Revolving Credit Commitment Increase Agreement (the “Acknowledgement”)
is made                           
by                          ,
a                                                                            
(the “Increasing Bank”).

 

Background

 

Reference is made to the Fifth Amended and Restated Credit Agreement
dated June 14, 2005 (the “Agreement”) 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, as
administrative agent for itself and the other Lenders under the Credit Agreement
(the “Agent”).  Capitalized terms defined
in the Agreement are used herein as defined therein.

 

Agreement

 

The Increasing Lender, and each of the other parties hereto agree that,
except as set forth below, effective as of the date hereof it shall increase
its commitment by $                         
 so that its total commitment shall be $                       .  The Increasing Lender hereby acknowledges
that it has heretofore received a new Note in the amount of the commitment as
increased as set forth above.

 

Reference is made to Section 2.12 [Increase in Commitments] of the
Agreement.  Schedule 1.1(B) hereto sets
forth the Commitments of the Increasing Lender and each of the other Lenders
after giving effect to the increase on the date hereof.  Schedule 1.1(B) to the Agreement is being
amended and restated effective on the date hereof to read as set forth on
Schedule 1.1(B) hereto.  Schedule 1
hereto lists as of the date hereof the amount of Loans under each outstanding
Borrowing Tranche.  Notwithstanding the
foregoing (a) on the date hereof the Borrower shall repay all outstanding
Loans to which either of the Base Rate Option or the LIBO-Rate Option applies
and simultaneously reborrow a like amount of Loans under each such Interest
Rate Option from the Lenders (including the Increasing Lender) according to the
Ratable Shares set forth on attached Schedule 1.1(B) and shall be subject to
breakage fees and other indemnities provided in Section 4.6.2.

 

IN WITNESS WHEREOF, the Increasing Lender has duly executed and
delivered this Joinder as of the date and year first above written.

 

 

	
   

  	
  [INCREASING LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED
  TO:

  	
   

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN ENTERPRISES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  (SEAL)

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  as Agent

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

2

 

EXHIBIT 7.3.3.1

 

FORM OF

QUARTERLY COMPLIANCE CERTIFICATE

 

                           ,
200

 

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:

 

1.             I refer to the Fifth Amended and Restated Credit
Agreement dated June 14, 2005 (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,                                                   
the                    
of the Borrower do hereby certify as of the [month/quarter/year] ended                              ,
200   (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”.

 

2.             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

  	
   

  	
  No 

  

 

3.             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

  	
   

  	
  No 

  

 

 

4.             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

  	
   

  	
  No 

  

 

5.             Debt
Rating. Based on the Debt Rating and the
Leverage Ratio, the Applicable Margin to become effective as of                                   
shall be                      .

 

6.             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:                                                                 .

 

7.             No event has occurred
that is continuing which constitutes an Event of Default or Potential Default,
except as follows:                                                                                              .

 

8.             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                      ,
200  .

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
														

 

 

Exhibit A to Exhibit 7.3.3.1

 

Borrowing Base Compliance Calculations

 

 

Exhibit B to Exhibit 7.3.3.1

 

Summary Covenant Compliance Calculations

 

 

Exhibit C to Exhibit 7.3.3.1

 

Detailed Covenant Compliance Calculations

 

 

EXHIBIT 7.3.3.2

 

FORM OF

BORROWING BASE CERTIFICATE

 

                            ,
         

 

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 Fifth Amended and Restated Credit Agreement dated June
14, 2005 (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,                                                   
Chief Executive Officer, President, Treasurer, Chief Financial Officer or
principal accounting officer of the Borrower, do hereby certify on behalf of
the Borrower as of the end of the month ended                       ,
        (the “Report Date”), that the
“Borrowing Base” and the components thereof are calculated and set forth on the
spreadsheet attached hereto as Exhibit A - “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. HOVANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Executive
  Officer, President,

  Treasurer, Chief Financial Officer or

  principal accounting officer

  
											

 

 

Exhibit A to Exhibit 7.3.3.2

 

Borrowing Base Compliance Calculations

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