Document:

Exhibit 10.2

 

AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”) is dated as of May  16, 2008, and
amends that Seventh Amended and Restated Credit Agreement, dated as of March 7,
2008 (as described herein the “Credit Agreement”),
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 defined therein), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as
administrative agent for the Lenders under the Credit Agreement (hereinafter
referred to in such capacity as the “Agent”).

 

BACKGROUND

 

The parties hereto desire to amend the Credit
Agreement to (i) reduce the principal amount of the Revolving Credit
Commitments, (ii) provide for additional real and personal property
collateral security, (iii) permit additional indebtedness and subordinate
liens, (iv) change the Applicable Margin, and (iv) make other
amendments which are set forth below.

 

Subject to the terms and conditions set forth below,
the parties hereto desire to amend the Credit Agreement as set forth herein.

 

OPERATIVE PROVISIONS

 

NOW THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements herein contained and incorporating herein the
definitions above, hereby agree as follows:

 

1.              DEFINITIONS.

 

(a)          Capitalized Terms, References.  Capitalized terms not otherwise defined
herein (including in the foregoing Background and preamble set forth above)
shall have the respective meanings ascribed to them in the Credit
Agreement.  As used in this Amendment, “including” is not a term of limitation and means “including
without limitation.”  Each reference to “hereof,” “hereunder,” “herein,” and “hereby” and
similar references contained in the Credit Agreement and each reference to “this Agreement” and similar references contained in the
Credit Agreement shall, on and after the Effective Date (defined below), refer
to the Credit Agreement as amended hereby. 
References herein to section or subsection numbers are references to
Sections or Subsections of the Credit Agreement unless otherwise stated.

 

(b)         Deleted Definitions.  The definitions of the following terms in Section 1.1
[Certain Definitions] of the Credit Agreement are deleted as of the Effective
Date:

 

	
  Adjusted Leverage Ratio

  	
   

  	
  Interim Value

  
	
  Consolidated Tangible Net Worth

  	
   

  	
  Sold Dwelling Units

  
	
  Deferred Tax Valuation Allowance

  	
   

  	
  Sold Homes

  
	
  Finished Lots and Land Under Development

  	
   

  	
  Unsecured Borrowing Base

  
	
  Fixed Charge Coverage Ratio

  	
   

  	
  Unsold Dwelling Units

  
	
  Interim Additional Mortgaged Collateral

  	
   

  	
  Unsold Homes

  

 

 

(c)          Existing Definitions.  The following existing definitions in Section 1.1
[Certain Definitions] of the Credit Agreement are amended and restated in their
entirety as follows as of the Effective Date:

 

Applicable Margin shall mean, as
applicable:

 

(A)                              the percentage spread to be
added to Base Rate under the Base Rate Option according to the Pricing Grid
below the heading “Base Rate Margin”,

 

(B)                                the percentage spread to be
added to LIBOR Rate under the LIBOR Rate Option according to the Pricing Grid
below the heading “LIBOR Margin”, and

 

(C)                                the percentage spread to be
added to the Index Rate under the Index Rate Option according to the Pricing
Grid below the heading “Index Rate Margin”.

 

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

 

Applicable Commitment Fee Rate shall mean the
percentage rate per annum according to the Pricing Grid below the heading “Commitment
Fee.”

 

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

 

(a)                              100% of cash and cash
equivalents maintained in the Cash Collateral Accounts; and

 

(b)                             33.33% of the aggregate
amount of the Adjusted Appraised Values of all of the Mortgaged Collateral,
less the amount by which the Collateral Reserves exceeds $25,000,000; and

 

(c)                              25% of the book value of
Interim Mortgaged Collateral

 

provided
however that the Borrowing Base shall exclude in all events (i) the Dollar
amount of all Excluded Property and (ii) the amount by which the value of
the Borrowing Base attributable to Mortgages on real estate (other than the
Existing Mortgaged Collateral) located in Mortgage Tax States exceeds 25% of
the Borrowing Base (after giving effect to any such exclusion).

 

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

 

Borrowing Base Certificate shall mean the
Borrowing Base Certificate substantially 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].

 

Cash Collateral Account shall mean one
or more deposit or securities 

 

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accounts or money market mutual fund
investments at or maintained by the Agent or any of the Lenders or any one or
more Affiliates of Agent or any of the Lenders in which the Agent holds for the
benefit of the Lenders a first priority perfected security interest securing
the payment and performance of the Obligations.

 

Due Diligence Period shall mean with
respect to: (i) Existing Mortgaged Collateral that is comprised of
approximately 170 properties the list of which was provided to Agent on or
about March 19, 2008, that period from the Closing Date through July 31,
2008 (as such date may be extended for an additional 30 days by Agent in its
reasonable discretion), (ii)Existing Mortgaged Collateral that is comprised of
approximately 28 properties the list of which was provided to Agent on or about
March 27, 2008, that period from the Closing Date through September 30,
2008, and (iii) the Proposed Initial Mortgaged Collateral, the period
commencing on the Effective Senior Secured Five Year Notes Date, and continuing
through the date on which Agent confirms in writing to Borrower that the Due
Diligence Tasks have been completed with respect to the Initial Mortgaged
Collateral as reasonably determined by the Agent.

 

Mortgaged Collateral shall mean the
Existing Mortgaged Collateral for which all Due Diligence Tasks have been
completed, Initial Mortgaged Collateral and Additional Mortgaged Collateral.

 

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

 

Purchase Money Mortgage shall mean any
mortgage on real property granted to secure Indebtedness of a Loan Party to a
seller the proceeds of which were used to acquire such property.

 

Secured Borrowing Base shall mean Borrowing Base.

 

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
$10,000,000.

 

(d)         Modification to
Existing Definitions.

 

(1)                                        The period at
the end of Clause (vi) of the definition of “Limited
Permitted Liens” is replaced with “; and”, and the following Clause (vii) is
added to such definition as of the Effective Date:

 

(vii)                           The Liens securing the Senior Secured Five
Year Notes and the Liens securing the Third Lien Debt so long as such Liens
shall be subordinate to the Liens of the Agent and Lenders in the Collateral
and remain second and third in priority, respectively, to the first priority
perfected Liens of the Agent and Lenders in the Collateral.

 

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(2)                                  Clause (vi)(A) of the definition of “Permitted Liens” is replaced as of the Effective Date with: (A) Purchase
Money Mortgages, provided that the aggregate principal amount of Indebtedness
secured by Purchase Money Mortgages that are recourse to any one or more Loan
Parties does not exceed $20,000,000.

 

(e)          New Definitions.  The following definitions are hereby inserted
in the appropriate alphabetical order in Section 1.1 [Certain Definitions]
of the Credit Agreement as of the Effective Date:

 

Borrowing Base Start Date shall mean July 31, 2008, as such date may be extended by up to
sixty (60) days by the Agent in its reasonable discretion (but in no event
shall the Borrowing Base Start Date occur before that date to which the Due Diligence
Period has been extended for the Existing Mortgaged Collateral comprised of
approximately 170 properties the list of which was provided to Agent on or
about March 19, 2008).

 

Effective Senior Secured Five Year Notes Date shall mean that date on which the Senior
Secured Five Year Notes have been issued and purchased.

 

Excluded Accounts shall mean at any time those deposit, checking or securities accounts
of any of the Loan Parties (i) that individually have an average monthly
balance (over the most recently ended 3-month period) less than $250,000 and
which together do not have an average monthly balance (for such 3-month period)
in excess of $2,000,000 in the aggregate, (ii) all escrow accounts (in
which funds are held for or of others by virtue of customary real estate
practice or contractual or legal requirements), and (iii) such other
accounts with respect to which the Agent reasonably determines that the cost of
perfecting a Lien thereon is excessive in relation to the benefit thereof.

 

Excluded Property shall mean any real property that is

 

(i)                                     located outside
of the United States of America,

 

(ii)                                  subject to a
Purchase Money Mortgage,

 

(iii)                               Unentitled
Land,

 

(iv)                              located in a
community under development with a dollar amount of investment as of the most
recent month-end (determined in accordance with GAAP) less than $2.0 million or
which property has less than 10 lots remaining, or

 

(v)                                 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.

 

Existing Mortgaged Collateral shall mean all real property of each of the Loan Parties on which the
Agent holds for the benefit of the Lenders a first priority recorded Mortgage ,
subject only to Limited Permitted Liens, which was recorded in the appropriate
real estate records on or before the Effective Senior Secured Five Year Notes
Date.

 

Intercreditor Agreement shall mean the Intercreditor Agreement substantially in the form of Exhibit 1.1(I) among,
inter alia, the Agent on behalf of the
Lenders and the Trustee on behalf of the 

 

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holders
of the Senior Secured Five Year Notes.

 

Interim Mortgaged Collateral shall mean real property owned by any Loan Party subject to a first
priority recorded Mortgage as to which the Due Diligence Tasks (including an
Acceptable Appraisal) are being diligently pursued and which is not otherwise
excludable from the Borrowing Base.

 

Mortgage Tax States shall mean Florida, Minnesota, Maryland, Washington, D.C., Virginia,
New York, and Georgia, and any other state(s) which requires a significant
payment of mortgage recording taxes or other fees or taxes of a comparable
nature and magnitude as that of any of the foregoing Mortgage Tax States.

 

Permitted Dividends shall mean dividends paid upon Qualified Preferred Equity in an amount
in any fiscal year not to exceed $10,000,000.

 

Permitted Refinancings shall mean (A) the issuance or sale of equity, including
Qualified Preferred Equity, to the extent such proceeds thereof are utilized in
the refinancing of Subordinated Debt or unsecured Senior Debt (and consisting
of the repayment of such debt with the net proceeds of such issuance or sale of
equity, including Qualified Preferred Equity, of Hovnanian to any Person in
substantially the same amount before or after 90 days of such repayment), (B) the
repayment of Subordinated Debt and/or unsecured Senior Debt at any time
subsequent to the Effective Date with up to $145,000,000 of net proceeds
received by Hovnanian from the offering of up to 16,100,000 Class A common
shares on May 8, 2008, including any shares issued within 30 days thereof
in conjunction with the overallotment, (C) the issuance of secured debt
having a maturity at least one year beyond the Expiration Date and secured by
collateral that is junior and subordinate to the Liens of the Agent and Lenders
on the Collateral and to the Liens securing payment of the Senior Secured Five
Year Notes, to the extent the proceeds of such secured debt are utilized in
exchange for or to refinance unsecured Subordinated Debt or unsecured Senior
Debt (and consisting of the repayment of such unsecured debt with the net
proceeds of such secured debt by Hovnanian in substantially the same amount
before or after 90 days of such repayment), and (D) the refinancing of
Subordinated Debt with similarly subordinated debt subject to similar terms
that are not materially more restrictive on the debtor, in the reasonable
determination of the Agent, than those for the Subordinated Debt being
refinanced.

 

Revolving Loan Limit shall mean (i) during the period commencing on the Effective
Senior Secured Five Year Notes Date, and continuing through the Borrowing Base
Start Date, $25,000,000, and (ii) thereafter $100,000,000.

 

Senior Secured Five Year Notes shall mean that indebtedness in a principal amount of $600,000,000
issued by Hovnanian in May or June, 2008, and secured by second priority
Liens which are subordinate and junior to those of the Agent and Lenders on
substantially all of the Collateral and which Liens are further subject to the
Intercreditor Agreement.

 

Third Lien Debt
shall mean that debt to be issued by Hovnanian after the Effective Senior
Secured Five Year Notes Date, in exchange for or to refinance Subordinated Debt
or Senior Notes in existence prior to the Effective Senior Secured Five Year
Notes Date, in an aggregate principal amount not in excess of $700,000,000,
upon terms not materially more restrictive on Hovnanian than the unsecured debt
being refinanced (other than the pledging of collateral) in the reasonable
determination of the Agent, with an out-of-pocket interest cost not greater
than 120% of the interest cost on the debt being refinanced and secured by
third priority Liens, which are subordinate and junior to those of the Agent
and Lenders and to those securing the Senior Secured Five Year Notes ,on
substantially all of the 

 

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Collateral
and which Liens are further subject to the Intercreditor Agreement or otherwise
an intercreditor agreement which is reasonably satisfactory to Agent.

 

2.              Schedules, Exhibits.

 

(a)          Schedules.  As of the Effective Date, the following
Schedules to the Credit Agreement are amended and restated in their entirety
respectively by Schedules of the same designation accompanying this Amendment:

 

(i)                                     Schedule 1.1(A)(1)  -  Applicable Margin, and

 

(ii)                                  Schedule 1.1(B)    -   
Commitments of Lenders and Addresses for Notices

 

(b)         Exhibits.  As of the Effective Date: Exhibit 7.3.3.2(A) is
deleted; Exhibit 7.3.3.2(B) is redesignated as Exhibit 7.3.3.2;
Exhibit 1.1(I) - Intercreditor Agreement is added; and, the
following Exhibits to the Credit Agreement are amended and restated in their
entirety, or hereby added to the Credit Agreement, as the case may be,
respectively by Exhibits of the same designation accompanying this Amendment:

 

(i)                                     Exhibit 1.1(I)     -    
Intercreditor Agreement

 

(ii)                                  Exhibit 1.1(S)(1)  -  Security Agreement

 

(iii)                               Exhibit 7.3.3.1    -   
Quarterly Compliance Certificate, and

 

(iv)                              Exhibit 7.3.3.2  - 
Borrowing Base Certificate

 

3.              Amendment of Section 2.

 

(a)          Section 2.1.1
[Revolving Credit Loans] is amended and restated in its entirety as of the
Effective Date as follows:

 

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, (b) Revolving Facility Usage
shall not exceed the lesser of the Revolving Credit Commitments and the
Borrowing Base at such time, and (c) in no event shall the aggregate
amount of Revolving Credit Loans and Swing Loans outstanding at any time (other
than Revolving Credit Loans or Swing Loans utilized pursuant to Section 2.9.3.3
in connection with Letters of Credit) exceed the Revolving Loan Limit at such
time.  Within such limits of time and
amount and subject to the other provisions of this Agreement, the Borrower may
borrow, repay and reborrow pursuant to this Section 2.1.  Revolving Credit Loans, as defined in and
outstanding under the Prior Credit Agreement, are hereby deemed to be Revolving
Credit Loans hereunder.

 

6

 

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.

 

(b)         The penultimate
sentence of Section 2.9.1 [Issuance of Letters of Credit] is amended and
restated in its entirety as of the Effective Date as follows:

 

In
no event shall the aggregate amount of Letter of Credit Outstandings and
Revolving Credit Loans exceed, at any one time, the Revolving Credit
Commitments.

 

(c)          The first
sentence of Section 2.9.11 [Cash Collateral] is amended and restated in
its entirety as of the Effective Date as follows:

 

If
there exist any Letter of Credit Outstandings on the date which is 30 days
prior to the Expiration Date, the Borrower shall immediately pledge and deposit
with or deliver to Agent, for the benefit of each Letter of Credit Lender and
the Lenders, as collateral for all outstanding Letters of Credit, Reimbursement
Obligations and Letter of Credit Borrowings, cash or deposit account balances
in an amount equal to 105% of the amount of all Letter of Credit Outstandings
as of such date (or as of the Expiration Date if greater) pursuant to
documentation in form and substance reasonably satisfactory to Agent and each
Letter of Credit Lender (which documents are hereby consented to by the
Lenders).

 

(d)         Section 2.11.2
[Designation of Non-Restricted Person].  Section 2.11.2
is amended and restated in its entirety as of the Effective Date as follows:

 

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;
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.

 

4.              Amendment of Section 4.

 

(a)          Section 4.5.1
[Revolving Facility Usage in Excess of Commitments].  Section 4.5.1 is amended and restated in
its entirety as of the Effective Date as follows:

 

4.5.1                        Revolving Facility Usage in Excess of
Commitments.

 

The Borrower shall make mandatory payments of principal on the Revolving
Credit Loans (together with accrued interest thereon) to the Agent to the
extent by which Revolving Facility Usage exceeds at any time the Commitments
(as they may be reduced pursuant to Section 2.1. [Voluntary Reduction of
Commitment], Section 2.10.2 [Approval by 66-2/3% Lenders] or otherwise)
and the Borrower shall make mandatory payments of principal on the Revolving
Credit Loans (together with accrued interest thereon) to the Agent to the
extent by which Revolving Credit Loans exceeds at any time the Revolving Loan
Limit, in each case 

 

7

 

within
three (3) Business Days after such excess is calculated.

 

(b)         Section 4.5.2
[Cash in Excess of $100 Million].    Section 4.5.2 is deleted and replaced
with “[Reserved]” as of the Effective Date.

 

(c)          Section 4.5.3
[Issuance of Capital Stock,; Incurrence of Indebtedness - Initial Preference
Period].    Section 4.5.3 is
deleted and replaced with “[Reserved]” as of the Effective Date.

 

5.              Amendment of Section 7.

 

(a)          Section 7.1.12
[Excess Cash During Preference Period].  Section 7.1.12 is deleted and replaced
with “[Reserved]” as of t he Effective Date.

 

(b)         Section 7.1.13
[Post-Closing Collateral Matters].  Clauses (i) through (vii) of Section 7.1.13
are amended and restated in their entirety as of the Effective Date as follows:

 

(i)                                     Delivery of
Mortgage Information.  As soon as
reasonably practical after the Effective Senior Secured Five Year Notes Date,
the Borrower shall provide to the Agent a list of all real property (that is
not Existing Mortgaged Collateral and which is not Excluded Property) of each
of the Loan Parties (the “Proposed Initial Mortgaged
Collateral”) specifying the state and county for each parcel of real
estate and the related legal description thereof, satisfactory evidence of the
book value thereof, details of any PAPA affecting any such real estate, names
of the owners of record thereof, copies of any owner’s policies of title
insurance relating thereto, and existing surveys (to the extent requested by
the Agent) with respect to the same; unless rejected or otherwise excluded in
accordance with the terms hereof, all such property shall be added to the
Secured Borrowing Base.  As soon as
practical after receipt of the list of Proposed Initial Mortgaged Collateral,
the Agent shall order appraisals on such Proposed Initial Mortgaged Collateral.

 

(ii)                                  Initial
Mortgages - Execution and Delivery, Value.  No later than July 31, 2008 (which date
may be extended by up to 60 days by the Agent in its reasonable discretion but
in no event beyond any date for the taking of Liens on such property required
by the terms applicable to the Senior Secured Five Year Notes or any other
permitted indebtedness hereunder), the Borrower and Restricted Subsidiaries shall
execute in favor of the Agent for the benefit of the Lenders first priority
recorded Mortgages on the Proposed Initial Mortgaged Collateral (subject only
to Limited Permitted Liens) (subject (1) to an amount of additional time
for real estate of de minimus value or for real estate as to which
unanticipated complications of taking a Mortgage have arisen and are being
diligently addressed to the satisfaction of the Agent so long as the recording
of mortgages on such real estate securing the Senior Secured Five Year Notes or
any other permitted indebtedness hereunder has not yet occurred and (2) to
exclusion or rejection from the due diligence and other qualification
requirements hereof and from the Secured Borrowing Base, including in the case
of real estate of de minimus value or real estate as to which unanticipated
complications of completing Due Diligence Tasks or becoming Qualified Real
Property have arisen after being diligently pursued and the cost of achieving
such status significantly outweighs the benefit to the Lenders of including
such real estate in the Secured Borrowing Base, as determined in the reasonable
judgment of the Agent); the Agent shall cause the recording of such Mortgages
as soon as practical thereafter and prior to the recording of mortgages on such
real estate securing the other Permitted Secured Debt.

 

8

 

(iii)                               Initial
Mortgages, Existing Mortgages - Completion of Due Diligence.  On or prior to the last day of the Due
Diligence Period with respect to the Proposed Initial Mortgaged Collateral, the
Loan Parties shall have completed all such actions and satisfied all
requirements necessary to enable the Proposed Initial Mortgaged Collateral to
qualify as Qualified Real Property (all such actions and all such requirements
shall be referred to herein as “Due Diligence Tasks”).  All Proposed Initial Mortgaged Collateral,
unless rejected or otherwise excluded in accordance with the terms hereof,
which meets the requirements of Qualified Real Property and which is subject to
a first priority recorded Lien (subject only to Limited Permitted Liens) in
favor of the Agent for the benefit of the Lenders pursuant to a Mortgage shall
be included in the Secured Borrowing Base (and is referred to herein as the “Initial Mortgaged Collateral”).  All Due Diligence Tasks shall have been
completed with respect to the Existing Mortgaged Collateral on or prior to the
last day of the Due Diligence Period with respect to such Existing Mortgaged
Collateral and all Existing Mortgaged Collateral, unless rejected or otherwise
excluded in accordance with the terms hereof, which meets the requirements of
Qualified Real Property and which is subject to a first priority recorded Lien
(subject only to Limited Permitted Liens) in favor of the Agent for the benefit
of the Lenders pursuant to a Mortgage shall be included in the Secured
Borrowing Base.

 

(iv)                              Additional
Mortgaged Collateral.  As soon as
practical after its acquisition or after it is no longer Excluded Property or
otherwise, all real property of any Loan Party (other than Excluded Property)
that is not Mortgaged Collateral shall be made subject to a first priority
recorded Mortgage (subject only to Limited Permitted Liens) given by the
appropriate Loan Party in favor of the Agent for the benefit of the Lenders and
the Agent, and all Due Diligence Tasks shall, unless any such property is
rejected or otherwise not included in accordance with the terms hereof, be
satisfactorily completed and all such real property shall become Qualified Real
Property, whereupon such real property shall be included in the Secured
Borrowing Base and referred to herein as “Additional Mortgaged
Collateral” (subject, however, to exclusion or rejection from the
due diligence and other qualification requirements hereof and from the Secured
Borrowing Base, including in the case of real estate of de minimus value or
real estate as to which unanticipated complications of completing Due Diligence
Tasks or becoming Qualified Real Property have arisen after being diligently
pursued and the cost of achieving such status significantly outweighs the
benefit to the Lenders of including such real estate in the Secured Borrowing
Base, as determined in the reasonable judgment of the Agent).  Notwithstanding that any such real estate
that is rejected or otherwise not included during Due Diligence may not be
included in the Secured Borrowing Base, it shall nevertheless be subject to a
first priority recorded Mortgage (subject only to Limited Permitted Liens) in
favor of the Agent for the benefit of the Lenders unless Agent expressly
rejects such Mortgage or unless such real estate is Excluded Property.

 

(v)                                 Mortgaged
Collateral in Mortgage Tax Jurisdictions, Limitation.  Interim Mortgaged Collateral, Initial Mortgaged
Collateral and Additional Mortgaged Collateral located in the Mortgage Tax
States shall secure payment of indebtedness in favor of the Lenders, the
holders of the Senior Secured Five Year Notes and holders of Third Lien Debt in
an aggregate amount equal to the most recent book value of such real property
and each such Mortgage shall be a single document which secures the Obligations
and the Senior Secured Five-Year Notes and which, upon the request of Borrower,
will be modified to secure the Third Lien Debt, provided however that each such
Mortgage shall provide for the first priority payment of the Obligations until
the Obligations are paid in full.

 

9

 

(vi)                              Accounts,
Ownership Certificates.  As
soon as reasonably practicable after the Effective Senior Secured Five Year
Notes Date, Borrower shall have provided to Agent for the benefit of the
Lenders such control agreements with respect to all concentration, aggregation,
and operating deposit, checking and securities accounts of any of the Loan
Parties, other than Excluded Accounts, as the Agent shall reasonably request,
and shall have the ongoing obligation to provide to Agent for the benefit of
the Lenders possession of all certificated shares of stock and other
certificated equity interests in Restricted Subsidiaries held by any Loan
Party, together with such assignments or stock powers executed in blank by the
owner thereof as Agent shall reasonably request.

 

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

 

(c)          Section 7.2.2.
[Liens].  Section 7.2.2 is amended
and restated in its entirety as of the Effective Date as follows:

 

Each of the Loan Parties shall not at any time create, incur, assume or
suffer to exist any Lien on any of its property or assets, tangible or
intangible, now owned or hereafter acquired, or agree or become liable to do
so, except Permitted Liens; provided, however,
that the Cash Collateral Accounts shall be subject to no Liens other than the
first priority perfected security interest of the Agent for the benefit of the
Lenders, the second priority perfected security interest in favor of the
holders of the Senior Secured Five Year Notes, and the third priority perfected
security interest in favor of the holders of the Third Lien Debt.

 

(d)         Section 7.2.5.
[Dispositions of Assets or Subsidiaries].  Clause (v) of Section 7.2.5 is
amended and restated in its entirety as of the Effective Date as follows:

 

(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 covenant at Section 7.2.13
[Operating Cash Flow Coverage, Liquidity]) 
and no Potential Default or Event of Default exists or would result
therefrom, and (2) any such sale does not constitute all or substantially
all of the assets of the Loan Parties taken as a whole.

 

(e)          Section 7.2.6.
[Restricted Payments; Restricted Investments; Investments in Related
Businesses].  Section 7.2.6.1
is amended and restated in its entirety as of the Effective Date as follows:

 

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

 

10

 

aggregate the sum of:

 

(i)                                     $50,000,000 or,
after such time that the aggregate Adjusted Appraised Values of the Mortgaged
Collateral as reflected in the most recent Borrowing Base Certificate are at
least two times the sum of the Commitments and the aggregate principal amount
outstanding under the Senior Secured Five Year Notes, $400,000,000;

 

(ii)                                  50% of net
income of Hovnanian (calculated and consolidated in accordance with GAAP) for
all fiscal quarters, commencing on February 1, 2008, and thereafter, to
the extent such income is positive on a quarterly basis; 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 the Effective Senior Secured Five Year
Notes Date, and thereafter (but excluding any Permitted Refinancings and
Permitted Dividends).

 

For the purposes of this Section 7.2.6.1, Restricted Payments
shall not include Permitted Refinancings or Permitted Dividends.

 

(f)            Section 7.2.10
[Borrowing Base].  Clauses (a) through
(c) and Clauses (f) and (h) of Section 7.2.10 are amended
and restated in their entirety as of the Effective Date as follows:

 

(a)                                  [Reserved]

 

(b)                                 Limitation,
Maintenance of Secured Borrowing Base.  Upon and after the Borrowing Base Start Date,
the Loan Parties shall not permit the Revolving Facility Usage to exceed the
Secured Borrowing Base at any time.  At
any time that the Revolving Facility Usage exceeds the Secured Borrowing Base,
Borrower shall do any one or more of the following in order to reduce to zero
($0) any such excess: (i) add cash or cash equivalents to any of the Cash
Collateral Accounts or (ii) reduce the Revolving Facility Usage.

 

(c)                                  [Reserved]

 

(f)                                    [Reserved]

 

(h)                                 Releases.  Agent on behalf of the Lenders shall provide
a release in recordable form of their Liens on any real property of any of the
Loan Parties which is rejected or removed by the Agent from being subject to a
Mortgage; and, in connection with any release given by Agent in connection with
any of the foregoing or in connection with any other provision of this Section 7.2.10,
each Lender hereby consents thereto without the necessity of any further action
on the part of Agent or any Loan Party, and the Agent shall execute and deliver
to Borrower, Hovnanian or such other Loan Party all documents that Borrower,
Hovnanian or such other Loan Party shall reasonably request to evidence such
release and the Agent and Borrower shall administer the logistics thereof in
any manner as may be reasonably acceptable to Borrower and Agent.  The Loan Parties may withdraw cash and cash
equivalents from the Cash Collateral Accounts and the other deposit, checking
and securities accounts of any of the Loan Parties and close Cash Collateral
Accounts and the other deposit, checking and securities accounts of any of the
Loan Parties, at any time and from time to time, so long as there exists no
Potential Default or continuing Event of Default and no Event of Default or
Potential Default would result after 

 

11

 

giving effect to such withdrawal or closure; and, all such cash and
cash equivalents withdrawn and all such Cash Collateral Accounts closed in
compliance therewith are hereby released without any further action of Agent or
any of the Lenders.

 

(g)         Section 7.2.11
[Minimum CTNW].    Section 7.2.11
is deleted and replaced with “[Reserved]” as of the Effective Date.

 

(h)         Section 7.2.12
[Leverage Ratio].    Section 7.2.12
is deleted and replaced with “[Reserved]” as of the Effective Date.

 

(i)             Section 7.2.13
[Fixed Charge Coverage Ratio Triggers].    Section 7.2.13 is amended and restated
in its entirety as follows as of the Effective Date:

 

Section 7.2.13.  Operating
Cash Flow Coverage, Liquidity.

 

The Loan Parties shall not permit the Operating Cash Flow Coverage
Ratio as of the last day of each fiscal quarter commencing with the fiscal
quarter ending on July 31, 2008, to be less than 1.50 to 1.0 unless
Liquidity as of such date is equal to or greater than $100,000,000.

 

(j)             Section 7.2.14
[Inventory Limits].    Section 7.2.14
is deleted and replaced with “[Reserved]” as of the Effective Date.

 

(k)          Section 7.3.3.2(a) [Borrowing
Base Certificate; Inventory Updates].  Section 7.3.3.2(a) is amended and
restated in its entirety as follows as of the Effective Date:

 

(a)                                  As soon as
available, but not later than fifty-five (55) days after the end of each month,
a Borrowing Base Certificate as of the end of such month, appropriately
completed, executed and delivered by an Authorized Officer, together with a
certificate of the Borrower signed by the Chief Executive Officer, President,
Treasurer or Chief Financial Officer or principal accounting officer of the
Borrower, substantially in the form of Exhibit 7.3.3.2, reflecting the
Borrowing Base 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.

 

6.              Amendment of Section 8.

 

(a)          Section 8.1.3
[Breach of Certain Negative Covenants].  Section 8.1.3 is amended and restated in
its entirety as follows as of the Effective Date:

 

Any of the Loan Parties shall default in the observance or performance
of any covenant contained in 
Sections 7.2.10 [Borrowing Base], or 7.2.13 [Operating Cash Flow
Coverage, Liquidity];

 

(b)         Section 8.2.3
[Set-Off].  Section 8.2.3
is amended and restated in its entirety as follows as of the Effective
Date:

 

12

 

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, but solely after notice to,
consultation with and obtaining the written consent of Agent or the Required
Lenders, 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

 

7.              Representations and Warranties.  To induce the Lenders to execute and deliver
this Amendment, the Loan Parties jointly and severally represent and warrant to
the Lenders (which representations and warranties shall survive the execution
and delivery of this Amendment) that as of the date hereof: (a) the
execution, delivery and performance of this Amendment and any and all other
documents executed or delivered in connection herewith (i) have been
authorized by all requisite corporate or limited liability company action, as
the case may be, on the part of the Loan Parties (ii) do not require the
consent or approval of any Official Body or any material creditor of any of the
Loan Parties, and (iii) will not contravene, conflict with, violate nor
result in the breach of any law, charter, certificate or articles of
organization or limited liability company operating agreement, or any provision
of any material indenture, agreement or other instrument to which any Loan
Party is a party or by which any properties or assets of any Loan Party are or
may be bound, (b) the Credit Agreement and all other Loan Documents are
and remain legal, valid, binding and enforceable obligations in accordance with
the terms thereof and there are no set-offs, claims, defenses, counterclaims,
causes of action, or deductions of any nature against any of the Obligations, (c) no
Event of Default or Potential Default has occurred or would result from the
execution, delivery and performance of this Amendment, and (d) the
representations and warranties of the Loan Parties contained in the Credit
Agreement and the other Loan Documents are true and correct on and as of the
date hereof with the same force and effect as though made by the Loan Parties
on such date (except representations and warranties which relate solely to an
earlier date or time).

 

8.              Closing Date.  On May 16, 2008 (for purposes solely of
this Amendment, the “Closing Date”)
the following conditions shall have been met (the “Closing
Conditions”):

 

(a)          All of the Loan Parties and
the Required Lenders, as applicable, shall have executed this Agreement;

 

(b)         The representations and
warranties of the Loan Parties contained in Section 5 [Representations and
Warranties] of the Credit Agreement as amended hereby and in the other Loan
Documents shall be true and correct in all material respects with the same
effect as though such representations and warranties had been made on and as of
the Closing Date (except representations and warranties which expressly relate
solely to an earlier date or time, which representations and warranties 

 

13

 

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;

 

(c)          No Material Adverse Change
shall have occurred since March 7, 2008;

 

(d)         The Description of Notes in
the preliminary offering memorandum with respect to the Senior Secured Five
Year Notes shall be satisfactory to the Lenders and shall conform in all
material respects to the Summary of Terms accompanying this Amendment as Exhibit A;
and

 

(e)          the Loan Parties shall have
paid or caused to be paid all fees, costs and expenses for which the Agent or
any of the Lenders is entitled to be paid or reimbursed.

 

9.              Conditions to Effectiveness of Amendment.

 

This Amendment shall become effective upon that date (the “Effective Date”) when each of the following conditions has
been met:

 

(a)          The Senior Secured Five Year
Notes and related documents shall provide for the payment of a portion of the
proceeds of the issuance of the Senior Secured Five Year Notes directly by the
trustee for the noteholders thereof to the Agent as a prepayment in such amount
of the Revolving Credit Loans and Swing Loans, if any, outstanding, and the
Senior Secured Five Year Notes and related documents shall substantially
conform to the Summary of Terms accompanying this Amendment as Exhibit A
and the Description of Notes in the preliminary offering memorandum for the
Senior Secured Five Year Notes; provided that any changes or additions to
covenants, terms or conditions of the Senior Secured Five Year Notes from those
set forth in such Exhibit or preliminary Description of Notes shall not be
materially more restrictive to any of the Loan Parties than those of the Credit
Agreement as amended hereby (as determined by the Agent in its reasonable
discretion);

 

(b)         The Senior Secured Five Year
Notes shall have been issued in a principal amount not less than $600,000,000
and a portion of the proceeds of the Senior Secured Five Year Notes shall be
paid directly by the issuer thereof to the Agent as a prepayment in such amount
of the Revolving Credit Loans and Swing Loans, if any, outstanding.

 

(c)          The Loan Parties, Agent and
Lenders, as appropriate shall have executed and delivered replacement
promissory notes substantially in the form of Exhibits 1.1(R) and 1.1(S)(2) (reflecting
the revised Commitments), and an amended and restated Security Agreement in
substantially the form attached hereto as Exhibit 1.1(S)(1).

 

(d)         There shall have been
delivered to the Agent for the benefit of each Lender written opinions of (i) Peter
Reinhart, Esquire, in house counsel to the Loans Parties and (ii) Simpson
Thacher & Bartlett LLP, New York counsel to the Loan Parties, in each
case dated as of the date of issuance of the Senior Secured Five Year Notes
substantially similar in scope to the opinion letter received in connection
with the Credit Agreement, including no conflict of this Amendment with the
terms of existing or new indebtedness of the Loan Parties and no conflict
between the terms of the Senior Secured Five-Year Notes and existing
indebtedness of the Loan Parties, and otherwise in form and substance
reasonably satisfactory to the Agent and its counsel and covering such matters
relating to the Loan Parties and the Loan Documents, including this Amendment,
as the Agent shall reasonably request.

 

(e)          The representations and
warranties of the Loan Parties contained in Section 5 

 

14

 

[Representations and Warranties] of the
Credit Agreement as amended hereby and in the other Loan Documents shall be
true and correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the Effective Senior
Secured Five Year Notes Date (such term being used in this Clause (e) as
defined at Section 1(e) hereof) (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, Borrower and Hovnanian make the following additional
representations and warranties each of which shall be true and correct as of
the Effective Senior Secured Five Year Notes Date:

 

(i)                                     First Quarter Statements.  The
Borrower has delivered to the Agent copies of Hovnanian’s consolidated
financial statements for and as of the end of the first fiscal quarter ended January 31,
2008 (the “First Quarter Statements”).  The First Quarter  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
period then ended and have been prepared in accordance with GAAP consistently
applied (subject to normal year-end audit adjustments).  The Historical Statements accurately reflect
the liabilities in all material respects of Hovnanian and its Subsidiaries.

 

(ii)                                  Accuracy of Financial Statements.  As
of the Effective Senior Secured Five Year Notes 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 First Quarter 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.

 

(iii)                               Solvency.  As of the Effective Senior
Secured Five Year Notes Date, the Loan Parties are, taken as a whole and after
giving effect to the incurrence of all Indebtedness and obligations incurred in
connection herewith and in connection with the Senior Secured Five Year Notes
as of such date, will be and will continue to be Solvent.

 

(f)            No Material Adverse Change
shall have occurred since March 7, 2008;

 

(g)         The Closing Conditions shall
have been met and all consents, if any, required to effectuate the transactions
contemplated hereby shall have been obtained;

 

(h)         Other than as addressed at
Paragraph 10 below, all legal details and proceedings in connection with the
transactions contemplated by this Amendment shall be in form and substance
reasonably satisfactory to the Agent, and the Agent shall have received all
such 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

 

(i)             The Loan Parties shall have
paid or caused to be paid all fees, costs and expenses for which the Agent or
any of the Lenders is entitled to be paid or reimbursed.

 

10.       Post Effectiveness Requirements.  Within 45 days of the Effective Senior
Secured Five Year Notes Date (or such later date as extended by Agent in its
reasonable discretion), the Loan Parties, Agent and Lenders, as appropriate
shall have executed and delivered such modifications to the Security 

 

15

 

Documents together with any additional control and
other documents, instruments and agreements, or modifications thereto, as the
Agent shall reasonably request in order to grant or perfect the Liens created
or required to be created pursuant to the Credit Agreement (as amended hereby).

 

11.       Force and Effect.

 

Upon the Effective Date, the Credit Agreement
is hereby amended in accordance with the terms hereof and any reference to the
Credit Agreement in any Loan Document or any document, instrument, or agreement
shall hereafter mean and include the Credit Agreement, as amended hereby.  No novation is intended or shall occur by or
as a result of this Amendment.  The Loan
Parties reconfirm, restate, and ratify the Credit Agreement, each of the other
Loan Documents and all other documents executed in connection therewith except
to the extent any such documents are expressly modified or amended by this
Amendment.  This Amendment is not
intended to constitute, nor does it constitute, an interruption, suspension of
continuity, satisfaction, discharge of prior duties, novation, or termination
of the liens, security interests, indebtedness, loans, liabilities, expenses,
or obligations under the Credit Agreement or the other Loan Documents.  The Loan Parties, the Agent and each of the
Lenders acknowledge and agree that (i) the Collateral and other liens and security
interests in favor of the Agent and the Lenders under the Loan Documents have
continued to secure the indebtedness, loans, liabilities, expenses, and
obligations under the Credit Agreement since the date of execution of each
applicable Loan Document, and (ii) all liens and security interests in the
Collateral and all other liens and security interests which were granted
pursuant to any of the Loan Documents shall remain in full force and effect
from and after the date hereof.

 

12.       Joinder of Guarantors.  Each of the Guarantors hereby joins in this
Amendment to evidence its consent hereto, and each Guarantor hereby reaffirms
its obligations set forth in the Credit Agreement, as hereby amended, and in
the Guaranty Agreement and each other Loan Document given by it.

 

13.       Lenders’ Consent to Amendment and Intercreditor Agreement.  Each Lender, by its execution
hereof, hereby consents to (i) this Amendment pursuant Section 10.1
of the Credit Agreement, (ii) the execution of the Intercreditor Agreement
by the Agent on behalf of such Lender, (iii) the execution by the Agent on
behalf of such Lender of an amendment or modification to the Intercreditor
Agreement (or of a new intercreditor agreement) governing, inter alia,
the priority of the Liens securing the Third Lien Debt and which shall be in
substantially the form of the Intercreditor Agreement and which shall provide
that the Liens in favor of the holders of Third-Lien Debt are subordinated to
the Liens of the Agent and Lenders and to the Liens of the holders of the
Senior Secured Five Year Notes such that the holders of Third-Lien Debt will be
treated with regard to the holders of the Senior Secured Five Year Notes in a
manner substantially the same as the manner in which the holders of the Senior
Secured Five Year Notes are treated under the Intercreditor Agreement with
respect to the Liens of the Agent and Lenders, and (iv) such mechanical,
logistical, or ministerial agency amendment or modification, if any, to the
Intercreditor Agreement to accommodate the reasonable and customary needs of a
to-be-determined collateral agent for any of the Mortgages on real estate
located in Mortgage Tax States.

 

14.       Governing Law.  This Amendment shall be deemed to be a
contract under the laws of the State of New York and for all purposes shall be
governed by and construed and enforced in accordance with the laws of the State
of New York.

 

15.       Counterparts, Telecopy Signatures.  This Amendment may
be signed in any number of 

 

16

 

counterparts each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument; and, delivery of executed signature pages hereof by telecopy
transmission, or other electronic transmission in .pdf
or similar format, from one party to another shall constitute effective and
binding execution and delivery of this Amendment by such party.

 

[SIGNATURES APPEAR ON THE
FOLLOWING PAGES]

 

17

 

[SIGNATURE PAGE 1 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have
executed this Amendment No. 1 on the date first written.

 

	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  

 

 

[SIGNATURE PAGE 2 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
  as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Douglas G. Paul

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 3 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  WACHOVIA BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: R. Scott Holtzapple

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 4 OF 28 TO AMENDMENT
NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Stephen R. Carlson

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

[SIGNATURE PAGE 5 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Kimberly L. Turner

  
	
   

  	
   

  
	
   

  	
  Title: Executive Director

  

 

 

[SIGNATURE PAGE 6 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: William McGinty

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 7 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: J. D. Gilbreath

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 8 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  GUARANTY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Ross Evans

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

[SIGNATURE PAGE 9 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE 10 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:
  Michael Raarup

  
	
   

  	
   

  
	
   

  	
  Title:
  Senior Vice President

  

 

 

[SIGNATURE PAGE 11 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Monique Vialatou

  
	
   

  	
   

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Michael Kowalczuk

  
	
   

  	
   

  
	
   

  	
  Title: Vice-President

  

 

 

[SIGNATURE PAGE 12 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CALYON NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Robert Smith

  
	
   

  	
   

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Brian Myers

  
	
   

  	
   

  
	
   

  	
  Title: Managing Director

  

 

 

[SIGNATURE PAGE 13 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: David J. Campbell

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 14 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  WASHINGTON MUTUAL BANK, FA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE 15 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Sean Apicella

  
	
   

  	
   

  
	
   

  	
  Title: Assistant Vice President

  

 

 

[SIGNATURE PAGE 16 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CITICORP NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Mark Floyd

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

[SIGNATURE PAGE 17 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: T. Gregory Donohue

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 18 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  REGIONS BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Daniel E. McClurkin

  
	
   

  	
   

  
	
   

  	
  Title: Assistant Vice President

  

 

 

[SIGNATURE PAGE 19 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE 20 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS
  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Mikhail Faybusovich

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  and

  

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Laurence Lapeyre

  
	
   

  	
   

  
	
   

  	
  Title: Associate

  

 

 

[SIGNATURE PAGE 21 OF 28 TO
THE AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  UBS LOAN FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Irja R. Otsa

  
	
   

  	
   

  
	
   

  	
  Title: Associate Director

  
	
   

  	
   

  
	
   

  	
  and

  

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Richard L. Tavrow

  
	
   

  	
   

  
	
   

  	
  Title: Director

  

 

 

[SIGNATURE PAGE 22 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  LASALLE BANK NATIONAL
  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Stephen B. Carlson

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

[SIGNATURE PAGE 23 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CITY NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Mary Bowman

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 24 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CALIFORNIA BANK &
  TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

[SIGNATURE PAGE 25 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  COMPASS BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Helen L. Chase

  
	
   

  	
   

  
	
   

  	
  Title: Vice President

  

 

 

[SIGNATURE PAGE 26 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  NATIXIS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Marie-Edith Dugeny

  
	
   

  	
   

  
	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
  and

  

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Zineb Bouazzaoui

  
	
   

  	
   

  
	
   

  	
  Title: Associate

  

 

 

[SIGNATURE PAGE 27 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

	
   

  	
  CAPITAL ONE, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Philip Davi

  
	
   

  	
   

  
	
   

  	
  Title: Senior Vice President

  

 

 

[SIGNATURE PAGE 28 OF 28 TO
AMENDMENT NO. 1

TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT]

 

ACCEPTED AND AGREED:

 

	
  HOVNANIAN ENTERPRISES, INC.

  	
   

  
	
  as a Guarantor

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name: Kevin C. Hake

  	
   

  
	
   

  	
   

  
	
  Title: Senior Vice President and Treasurer

  	
   

  
			

 

 

SCHEDULE 1.1(A)(1)

 

K. HOVNANIAN ENTERPRISES, INC.

PRICING GRID & FEES

 

(expressed in basis points)

 

Pricing Grid:

 

	
  LIBOR

  Margin

  	
   

  	
  Base Rate

  Margin

  	
   

  	
  Index Rate

  Margin

  	
   

  	
  Commitment Fee

  	
   

  
	
  450

  	
   

  	
  275

  	
   

  	
  462.5

  	
   

  	
  55

  	
   

  

 

 

SCHEDULE 1.1(B)

 

K. HOVNANIAN ENTERPRISES, INC.

 

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

 

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

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender
  Name (also Agent):

  PNC Bank, National Association

  	
   

  	
  $

  	
  19,600,000.00

  	
   

  	
  6.533333333

  	
  %

  
	
  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.

  Address for Notices:

  231 S. LaSalle Street

  Mail Code IL 1-231-10-35

  Chicago, IL 60697

  Attention:              Stephen B.
  Carlson

  Telephone:            (312) 828-6405

  Telecopy:              (312) 974-4970

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  8.333333333

  	
  %

  
	
  Address of Lending
  Office:

  901 Main Street

  14th Floor

  Dallas, TX 75202

  Attention:              Eldred Sholars

  Telephone:            (214) 209-3044

  Telecopy:              (214) 290-9429

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Wachovia
  Bank, National Association

  Address for Notices:

  401 S. Tryon St., NC1193

  Charlotte, NC  28288

  Attention:  Scott Holtzapple

  Telephone:  704-383-0474

  Telecopy:  704-383-7146

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  8.333333333

  	
  %

  
	
  Address of Lending Office:

  401 S. Tryon St., NC1193

  Charlotte, NC  28288

  Attention:  Scott Holtzapple

  Telephone:  704-383-0474

  Telecopy:  704-383-7146

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  JPMorgan Chase Bank, N.A.

  Address for Notices:

  277 Park Avenue, Floor 3

  New York, NY 10172

  Attention:              Kimberly
  Turner

  Telephone:            (212) 622-8177

  Telecopy:              (646) 534-0574

  	
   

  	
  $

  	
  19,300,000.00

  	
   

  	
  $

  	
   6.433333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending
  Office:

  277 Park Avenue, Floor 3

  New York, NY 10172

  Attention:              Donald
  Shokrian

  Telephone:            (212) 622-2166

  Telecopy:              (646) 534-0574

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  The Royal Bank of Scotland plc

  Address for Notices:

  101 Park Avenue

  New York, NY 10178

  Attention:              David Apps

  Telephone:            (212) 401-3745

  Telecopy:              (212) 401-3456

  	
   

  	
  $

  	
  19,300,000.00

  	
   

  	
  $

  	
  6.433333333

  	
  %

  
	
  Address of Lending
  Office:

  101 Park Avenue

  New York, NY 10178

  Attention:              Devia Anand

  Telephone:            (212) 401-3552

  Telecopy:              (212) 401-3456

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  KeyBank National Association

  Address for Notices

  1200 Abernathy Road, Suite 1550

  Atlanta, GA 30328

  Attention:              Jeff V. Aycock

  Telephone:            (770) 510-2105

  Telecopy:              (770) 510-2195

  	
   

  	
  $

  	
  14,600,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  KeyBank Real
  Estate Capital
 1200 Abernathy Road, Suite 1550

  Atlanta, GA 30328

  Attention:              Jacky Krieger

  Telephone:            (770) 510-2109

  Telecopy:              (770) 510-2195

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  SunTrust Bank

  Address for Notices:

  303 Peachtree Street, N.E.

  9th Floor

  Atlanta, GA 30308

  Attention:              Lauren P. Carrigan

  Telephone:            (404) 588-7082

  Telecopy:              (404) 724-3875

  	
   

  	
  $

  	
  14,600,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address
  of Lending Office:

  America Center West
  8330 Boone Blvd.

  8th Floor   Vienna VA 22182
 Attn: Connie Dores
 Telephone:            (703)
  442-1546

  Telecopy:              (703) 442-1570

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Guaranty Bank

  Address for Notices:

  8333 Douglas Avenue

  Dallas, TX 75225

  Attention:              Dustin Ortmann

  Telephone:            (214) 360-2672

  Telecopy:              (214) 360-4892

  	
   

  	
  $

  	
  11,400,000.00

  	
   

  	
  3.800000000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  8333 Douglas Avenue

  Dallas, TX 75225

  Attention:              Juanita Vidal

  Telephone:            (214) 360-1632

  Telecopy:              (214) 360-4852

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  U.S. Bank National Association

  Address for Notices:

  US Bancorp

  Commercial Real Estate

  800 Nicollet Mall, 3rd Floor

  Minneapolis, MN 55402-7020

  Attention:              Leslie Lynch

  Telephone:            (612) 303-3595

  Telecopy:              (612) 303-2270

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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
 Address for Notices:

  787 Seventh Avenue

  New York, NY 10019

  Attention:              Duane
  Helkowski

  Telephone:            (212) 841-2940

  Telecopy:              (212) 841-3830

  	
   

  	
  $

  	
  14,600,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  787 Seventh Avenue

  New York, NY 10019

  Attention:              Wei Monaghan

  Telephone:            (212) 841-2980

  Telecopy:              (212) 841-2745

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  CALYON New York Branch

  Address for Notices:

  2200 Ross Avenue, Suite 4400 West

  Dallas, TX 75201

  Attention:              Robert Smith

  Telephone:            (214) 220-2311

  Telecopy:              (214) 220-2323

  	
   

  	
  $

  	
  14,600,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  2200 Ross Avenue, Suite 4400 West

  Dallas, TX 75201

  Attention:              Darren Abrams

  Telephone:            (214) 220-2312

  Telecopy:              (214) 220-2323

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Comerica Bank
 Address for Notices:

  500 Woodward Avenue MC 3256

  Detroit, MI 48226

  Attention:              Charles Weddell

  Telephone:            (313) 222-3323

  Telecopy:              (313) 222-9295

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
  Address of Lending Office:

  500 Woodward Avenue MC 3256

  Detroit, MI 48226

  Attention:              Keshia Boone

  Telephone:            (313) 222-9284

  Telecopy:              (313) 222-3697

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Washington Mutual Bank

  Address for Notices:

  3929 W. John Carpenter Freeway

  Suite 100

  Irving, TX 75063

  Attention:              Brad Johnson

  Telephone:            (214) 492-4377

  Telecopy:              (972) 870-3603

  	
   

  	
  $

  	
  9,000,000.00

  	
   

  	
  3.000000000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  620 W. Germantown Pike Suite 200

  Plymouth Meeting, PA 19462

  Attention:              Chris
  Heckman  

  Telephone:            (610)
  238-6940

  Telecopy:              (610) 828-9657

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Citicorp North America, Inc.

  Address for Notices:

  390 Greenwich Street

  New York, NY 10013

  Attention:              Jeanne
  M. Craig

  Telephone:            (212) 723-9229

  Telecopy:              (212) 723-8547

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  390 Greenwich Street

  New York, NY 10013

  Attention:              Michelle J. Liu

  Telephone:            (212) 723-4709

  Telecopy:              (646) 291-3705

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  National City Bank

  Address for Notices:

  One South Broad Street

  14th Floor

  Philadelphia, PA 19107-3304

  Attention:              Brian Gallagher

  Telephone:            (267) 256-4088

  Telecopy:              (267) 256-4001 

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  One South Broad Street,14th Floor

  Philadelphia, PA 19107-3304

  Attention:              William J Lloyd

  Telephone:            (267) 256-4059

  Telecopy:              (267) 256-4001

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Sovereign Bank

  Address for Notices:

  75 State Street
 Mail Code MA1 SST 04-11

  Boston, MA 02109

  Attention:              T.
  Gregory Donohue

  Telephone:            (617) 757-5578

  Telecopy:              (617) 757-5653

  	
   

  	
  $

  	
  7,000,000.00

  	
   

  	
  2.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  75 State Street

  Mail Code MA1 SST 04-11

  Boston, MA 02109

  Attention:              T.
  Gregory Donohue

  Telephone:            (617) 757-5578

  Telecopy:              (617) 757-5653

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Regions Bank, formerly AmSouth Bank
 Address for Notices:

  1900 5th Avenue North

  Mail Code BAC 15

  Birmingham, AL 35203

  Attention:              Ronny Hudspeth

  Telephone:            (205) 307-4227

  Telecopy:              (205) 801-0138

  	
   

  	
  $

  	
  8,000,000.00

  	
   

  	
  2.666666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  1900 5th Avenue North

  Mail Code BAC 15  

  Birmingham, AL 35203

  Attention:              Daniel McClurkin

  Telephone:            (205) 264-4109

  Telecopy:              (205) 801-0138

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Union Bank of California, N.A.

  Address for Notices:

  350 California Street, 7th Floor

  San Francisco, CA 94104

  Attention:              Gary Roberts

  Telephone:            (415) 705-5035

  Telecopy:              (415) 433-7438 

  	
   

  	
  $

  	
  6,000,000.00

  	
   

  	
  2.000000000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  350 California Street, 7th Floor

  San Francisco, CA 94104

  Attention:              Gary
  Roberts

  Telephone:            (415) 705-5035

  Telecopy:              (415) 433-7438

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Credit Suisse, Cayman Islands Branch

  Address for Notices:

  Eleven Madison Avenue

  New York, NY 10010

  Attention:              William O’Daly

  Telephone:            (212) 325-1986

  Telecopy:              (212) 743-2254 

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  One Madison Avenue

  New York, NY 10010

  Attention:              Ed
  Markowski

  Telephone:            (212) 538-3380

  Telecopy:              (212) 325-9049

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  UBS Loan Finance LLC

  Address for Notices:

  UBS AG, Stamford Branch

  677 Washington Blvd., 6-South

  Stamford, CT 06901

  Attention:              Wilfred Saint

  Telephone:            (203) 719-4330

  Telecopy:              (203) 719-3888 

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  UBS AG, Stamford Branch

  677 Washington Blvd., 6-South

  Stamford, CT 06901

  Attention:              Anthony Finocchi

  Telephone:            (203) 719-3377

  Telecopy:              (203) 719-3888

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  LaSalle Bank National Association

  Address for Notices:

  135 S. LaSalle Street

  Chicago, IL 60603

  Attention:              Liz Matias

  Telephone:            (312) 992-1473

  Telecopy:              (312) 904-6392 

  	
   

  	
  $

  	
  7,000,000.00

  	
   

  	
  2.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending
  Office:

  Bank of America, N.A.

  231 S. LaSalle Street

  Chicago, Il 60604

  Attention:              Stephen
  Carlson

  Telephone:            (312)
  828-6405

  Telecopy:              (312)
  974.4970

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  City National Bank

  Address for Notices:

  2001 N. Main Street, Suite 200

  Walnut Creek, CA 94596

  Attention:              Mary Bowman

  Telephone:            (925) 274-2793

  Telecopy:              (925) 274-2758 

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  1.666666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  2001 N. Main Street, Suite 200
  

  Walnut Creek, CA 94596

  Attention:              Xavier Barrera

  Telephone:            (925) 274-2783

  Telecopy:              (925) 274-2758

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  California Bank & Trust

  Address for Notices:

  2929 N. Central Avenue Suite 1200

  Phoenix, AZ 85012

  Attention:              Stephanie L.
  Lantz

  Telephone:            (602) 241-2227

  Telecopy:              (602) 230-1345 

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  1.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  2929 N. Central Avenue Suite 1200

  Phoenix, AZ 85012

  Attention:              Stephanie L.
  Lanty

  Telephone:            (602) 241-2227

  Telecopy:              (602) 230-1345

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Compass Bank

  Address for Notices:

  15 South 20th Street, 15th Floor

  Birmingham, AL 35233

  Attention:              Johanna Duke
  Paley

  Telephone:            (205) 297-3851

  Telecopy:              (205) 297-7994

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  1.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  15 South 20th Street

  Birmingham, AL 35233

  Attention:              Jamie McClure

  Telephone:            (205) 297-3297

  Telecopy:              (205) 297-3901

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

	
  Lender

  	
   

  	
  Amount of Commitment for

  Revolving Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  NATIXIS, formerly known as Natexis Banques

  Populaires

  Address for Notices:

  1251 Avenue of the Americas - 34th Floor

  New York, NY 10020

  Attention:              Marie-Edith
  Dugeny

  Telephone:            (212) 872-5132

  Telecopy:              (212) 354-9095 

  	
   

  	
  $

  	
  7,000,000.00

  	
   

  	
  2.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  1251 Avenue of the Americas - 34th Floor

  New York, NY 10020

  Attention:              Zineb Bouazzaoui

  Telephone:            (212) 872-5081

  Telecopy:              (212) 354-9095

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  Capital One, N.A.

  Address for Notices:

  275 Broadhollow Road

  Melville, NY 11747

  Attention:              Philip
  A. Davi

  Telephone:            (631) 531-2388

  Telecopy:              (631) 531-2752 

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  1.666666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address of Lending Office:

  275 Broadhollow
  Road

  Melville, NY 11747

  Attention:              Enrico Panno

  Telephone:            (631) 531-2395

  Telecopy:              (631) 531-2752

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  	
  100.00

  	
  %

  
								

 

 

	
  AGENT:

  
	
  Name:

  	
   

  	
  Douglas
  G. Paul, Senior Vice President

  
	
  Address:

  	
   

  	
  PNC Bank, National Association

  
	
   

  	
   

  	
  Two
  Tower Center, 18th Floor

  
	
   

  	
   

  	
  East
  Brunswick, NJ 08816

  
	
  Telephone:

  	
   

  	
  (732)
  220-3566

  
	
  Telecopy:

  	
   

  	
  (732)
  220-3744

  
	
   

  	
   

  	
   

  
	
  BORROWER:

  
	
  Name:

  	
   

  	
  K.
  HOVNANIAN ENTERPRISES, INC.

  
	
  Address:

  	
   

  	
  110 West Front Street

  
	
   

  	
   

  	
  Red
  Bank, NJ 07701

  
	
  Attention:

  	
   

  	
  Kevin
  C. Hake

  
	
  Telephone:

  	
   

  	
  (732)
  747-7800

  
	
  Telecopy:

  	
   

  	
  (732)
  747-6835

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  
	
  Name:

  	
   

  	
  [name
  of Guarantor]

  
	
  Address:

  	
   

  	
  c/o K. Hovnanian Enterprises, Inc.

  
	
   

  	
   

  	
  110
  West Front Street

  
	
   

  	
   

  	
  Red
  Bank, NJ 07701

  
	
  Attention:

  	
   

  	
  Kevin
  C. Hake

  
	
  Telephone:

  	
   

  	
  (732)
  747-7800

  
	
  Telecopy:

  	
   

  	
  (732)
  747-6835Exhibit 10.5

 

 

AMENDED AND RESTATED

SECURITY AGREEMENT

 

made by

 

K. HOVNANIAN ENTERPRISES, INC.,

HOVNANIAN ENTERPRISES, INC.

 

and
certain of their respective Subsidiaries

in favor of

 

PNC BANK, NATIONAL ASSOCIATION,

 

as
Administrative Agent

 

Dated
as of May 27, 2008

 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINED TERMS

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Other Definitional Provisions

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GRANT OF SECURITY
  INTEREST

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  6

  
	
  3.1

  	
  Title: No Other Liens

  	
  6

  
	
  3.2

  	
  Perfected First Priority Liens

  	
  6

  
	
  3.3

  	
  Jurisdiction of Organization; Chief Executive Office

  	
  7

  
	
  3.4

  	
  Farm Products

  	
  7

  
	
  3.5

  	
  Investment Property

  	
  7

  
	
  3.6

  	
  Receivables

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  COVENANTS

  	
  7

  
	
  4.1

  	
  Maintenance of Perfected Security Interest; Further Documentation

  	
  7

  
	
  4.2

  	
  Changes in Name, etc

  	
  8

  
	
  4.3

  	
  Delivery of Instruments, Certificated Securities and Chattel Paper

  	
  8

  
	
  4.4

  	
  Intellectual Property

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 5. 

  	
  INVESTING AMOUNTS
  IN THE SECURITIES ACCOUNTS

  	
  8

  
	
  5.1

  	
  Investments

  	
  8

  
	
  5.2

  	
  Liability

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REMEDIAL PROVISIONS

  	
  9

  
	
  6.1

  	
  Certain Matters Relating to Receivables

  	
  9

  
	
  6.2

  	
  Communications with Obligors: Grantors Remain Liable

  	
  9

  
	
  6.3

  	
  Proceeds to be Turned Over To Agent

  	
  10

  
	
  6.4

  	
  Application of Proceeds

  	
  10

  
	
  6.5

  	
  Code and Other Remedies

  	
  10

  
	
  6.6

  	
  Subordination

  	
  11

  
	
  6.7

  	
  Deficiency

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  THE AGENT

  	
  12

  
	
  7.1

  	
  Agent’s Appointment as Attorney-in-Fact. etc

  	
  12

  
	
  7.2

  	
  Duty of Agent

  	
  13

  
	
  7.3

  	
  Execution of Financing Statements

  	
  13

  
	
  7.4

  	
  Authority of Agent

  	
  14

  

 

i

 

	
  SECTION 8.

  	
  MISCELLANEOUS

  	
  14

  
	
  8.1

  	
  Amendments in Writing

  	
  14

  
	
  8.2

  	
  Notices

  	
  14

  
	
  8.3

  	
  No Waiver by Course of Conduct; Cumulative Remedies

  	
  14

  
	
  8.4

  	
  Enforcement Expenses; Indemnification

  	
  14

  
	
  8.5

  	
  Successors and Assigns

  	
  15

  
	
  8.6

  	
  Set-Off

  	
  15

  
	
  8.7

  	
  Counterparts

  	
  15

  
	
  8.8

  	
  Severability

  	
  16

  
	
  8.9

  	
  Section Headings

  	
  16

  
	
  8.10

  	
  Integration

  	
  16

  
	
  8.11

  	
  GOVERNING LAW

  	
  16

  
	
  8.12

  	
  Submission To Jurisdiction; Waivers

  	
  16

  
	
  8.13

  	
  Acknowledgements

  	
  17

  
	
  8.14

  	
  Additional Grantors

  	
  17

  
	
  8.15

  	
  Releases

  	
  18

  
	
  8.16

  	
  Automatic Release of Collateral

  	
  18

  
	
  8.17

  	
  WAIVER OF JURY TRIAL

  	
  18

  
	
  8.18

  	
  No Novation

  	
  18

  
	
  8.19

  	
  Control Agreements

  	
  19

  
	
  8.20

  	
  Cash Collateral Account

  	
  19

  
	
   

  	
   

  	
   

  
	
  Schedule A - Cash Collateral Accounts

  	
   

  
	
  Schedule B - Commercial Tort Claims

  	
   

  
	
  Schedule C - Actions Required to Perfect

  	
   

  

 

ii

 

AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED
SECURITY AGREEMENT (the “Agreement”), dated as of May 27, 2008, is made by
each of the signatories hereto (together with any other entity that may become
a party hereto as provided herein, the “Grantors”), in favor of PNC
Bank, National Association, as Administrative Agent (in such capacity, the “Agent”)
for the banks and other financial institutions or entities (the “Lenders”)
from time to time parties to the Seventh Amended and Restated Credit Agreement,
dated as of March 7, 2008 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among K. Hovnanian
Enterprises, Inc., a California corporation (the “Borrower”),
Hovnanian Enterprises, Inc., a Delaware corporation (“Hovnanian”
and a Guarantor (as defined below)), the Lenders and the Agent.

 

W  I  T  N
E  S  S  E  T  H:

 

WHEREAS, pursuant to the
Credit Agreement, the Lenders have severally agreed to make extensions of
credit to the Borrower upon the terms and subject to the conditions set forth
therein;

 

WHEREAS, the Borrower is a
member of an affiliated group of companies that includes Hovnanian, the
Borrower’s parent company, and each other Grantor;

 

WHEREAS, the proceeds of the
extensions of credit under the Credit Agreement will be used in part to enable
the Borrower to make valuable transfers to one or more of the other Grantors in
connection with the operation of their respective businesses;

 

WHEREAS, the Borrower and
the other Grantors are engaged in related businesses, and each Grantor will
derive substantial direct and indirect benefit from the making of the
extensions of credit under the Credit Agreement;

 

WHEREAS, pursuant to and
under the Credit Agreement, the Borrower and the other Grantors entered into a
Security Agreement dated as of March 7, 2008 (as amended and supplemented,
the “Original Security Agreement”) pursuant to which the Grantors granted
security interests in certain of their respective assets, for the ratable
benefit of the Secured Parties (defined below);

 

WHEREAS, pursuant to the
Amendment No. 1 to the Seventh Amended and Restated Credit Agreement dated
as of May 16, 2008 (“Amendment No. 1”), the Borrower and the other
Grantors have agreed to amend and restate the Original Security Agreement in
order to grant a perfected security interest in, and Lien on, substantially all
of the assets of each Grantor, for the ratable benefit of the Secured Parties;
and

 

NOW, THEREFORE, in
consideration of the premises and to induce the Agent and the Lenders to enter
into the Credit Agreement and to induce the Lenders to make their respective
extensions of credit to the Borrower under the Credit Agreement, each Grantor
hereby agrees with the Agent, for the ratable benefit of the Secured Parties,
as follows:

 

SECTION 1. DEFINED TERMS

 

1.1           Definitions.

 

(a)           Definitions set forth above are incorporated herein and unless otherwise
defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings respectively given to them in the Credit Agreement, and the
following terms are used herein as defined in the New York 

 

 

UCC:  Accounts, Chattel Paper, Commercial Tort
Claims, Deposit Account, Documents, Equipment, Electronic Chattel Paper, Farm
Products, General Intangibles, Goods, Payment Intangibles, Instruments,
Inventory, Investment Property, Letter of Credit Rights, Payment Intangibles,
Software and Supporting Obligations.

 

(b)           The following terms shall have the following meanings:

 

“Agreement”:  this Security Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

 

“Cash Equivalents”: (i) cash,
marketable direct obligations of the United States of America or any agency
thereof, and certificates of deposit, demand deposits, time deposits, or
repurchase agreements issued by any Lender or any bank with a capital and
surplus of at least $25,000,000 organized under the laws of the United States
of America or any state thereof, state or municipal securities with a rating of
A-1 or better by Standard & Poor’s or by Moody’s or F-1 by Fitch,
provided that such obligations, certificates of deposit, demand deposits, time
deposits, and repurchase agreements have a maturity of less than one year from
the date of purchase, and (ii) investment grade commercial paper or debt
or commercial paper issued by a Lender or a bank holding company of a Lender
having a maturity date of one year or less from the date of purchase, and (iii) funds
holding assets primarily consisting of those described in clause (i) and
(ii).

 

“Collateral”:  as defined in Section 2.

 

“Contracts”:  any contracts and agreements for the
purchase, acquisition or sale of real or personal property or the receipt or
performance of services, any contract rights relating thereto, and all other
rights to such contract or agreements and any right to payment for or to
receive moneys due or to become due for items sold or leased or for services
rendered, together with all rights of any Grantor to damages arising thereunder
or to perform and to exercise all remedies thereunder.

 

“Collateral Account”:  any collateral account established by the
Agent as provided in Section 6.1 or 6.3.

 

“Copyright Licenses”:  any written agreement naming any Grantor as
licensor or licensee, granting any right under any Copyright, including,
without limitation, the grant of rights to 
distribute, exploit and sell materials derived from any Copyright.

 

“Copyrights”:  (i) all copyrights arising under the
laws of the United States, any other country or any political subdivision
thereof, whether registered or unregistered and whether published or
unpublished, all registrations and recordings thereof, and all applications in
connection therewith, including, without limitation, all registrations,
recordings and applications in the United States Copyright Office, and (ii) the
right to obtain all renewals thereof.

 

“Deposit Accounts”:  the collective reference to each Deposit
Account (as such term is defined in Section 1(a) hereof) in the name
of the applicable Grantor, together with any one or more securities accounts
into which any monies on deposit in any such Deposit Account may be swept or
otherwise transferred now or hereafter and from time to time, and any
additional, substitute or successor Deposit Account.

 

“Guarantors”:  the collective reference to each Grantor
other than the Borrower.

 

2

 

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges, whether arising under United States, multinational
or foreign laws, in, to and under the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and
all rights to sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom.

 

“Investment Property”:  the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York
UCC, and (ii) whether or not constituting “investment property” as so
defined, all Pledged Notes.

 

“Issuers”:  the collective reference to each issuer of
any Investment Property.

 

“New York UCC”:  the Uniform Commercial Code as from time to
time in effect in the State of New York.

 

“Patent License”:  all
written agreements providing for the grant by or to any Grantor of any right to
manufacture, use or sell any invention covered in whole or in part by a Patent.

 

“Patents”:  (i) all letters patent of the United
States, any other country or any political subdivision thereof, all reissues
and extensions thereof, (ii) all applications for letters patent of the
United States or any other country and all divisions, continuations and
continuations-in-part thereof, and (iii) all rights to obtain any reissues
or extensions of the foregoing.

 

“Pledged Notes”:  all promissory notes issued to or held by any
Grantor.

 

“Proceeds”:  all “proceeds” as such term is defined in Section 9-102(a)(64)
of the New York UCC and, in any event, shall include, without limitation, all
dividends or other income from the Investment Property, collections thereon or
distributions or payments with respect thereto.

 

“Receivable”:  any right to payment for real or personal
property sold or leased or for services rendered, whether or not such right is
evidenced by a Contract, an Instrument or Chattel Paper and whether or not it
has been earned by performance (including, without limitation, any Account).

 

“Secured Obligations”:  all now existing and hereafter arising
Obligations (as defined in the Credit Agreement) of each and every Grantor and
other Loan Party to the Agent, the Lenders, or any of their respective
Affiliates under the Credit Agreement or any of the other Loan Documents,
together with any extensions, renewals, replacements or refundings thereof, and
all costs and expenses of enforcement and collection, including reasonable
attorney’s fees.

 

“Secured Parties”:  the collective reference to the Agent and the
Lenders or any Affiliate of any Lender to which any Secured Obligations are
owed.

 

“Securities Accounts”:  the collective reference to the securities
accounts in the name of the applicable Grantor and any additional, substitute
or successor account.

 

“Trademark License”:  any written agreement providing for the grant
by or to any Grantor of any right to use any Trademark.

 

“Trademarks”:  (i) all trademarks, trade names,
corporate names, company names, business names, fictitious business names,
trade styles, service marks, logos and other source or business identifiers,
and all goodwill associated therewith, now owned or hereafter acquired, all
registrations and 

 

3

 

recordings
thereof, and all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political
subdivision thereof, and all common-law rights related thereto, and (ii) the
right to obtain all renewals thereof.

 

“Vehicles”:  all cars, trucks, trailers, construction and
earth moving equipment and other vehicles covered by a certificate of title law
of any state and all tires and other appurtenances to any of the foregoing.

 

1.2           Other Definitional Provisions.

 

(a)                                  The
words “hereof,” “herein”, “hereto” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.

 

(b)                                 The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

(c)                                  Where
the context requires, terms relating to the Collateral or any part thereof,
when used in relation to a Grantor, shall refer to such Grantor’s Collateral or
the relevant part thereof.

 

SECTION 2.
GRANT OF SECURITY INTEREST

 

Each
Grantor hereby grants to the Agent, for the ratable benefit of the Secured
Parties, a security interest in, all of the following property now owned or at
any time hereafter acquired by such Grantor or in which such Grantor now has or
at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”), as collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Secured Obligations:

 

(a)                                  all
Accounts;

 

(b)                                 all
Cash Collateral Accounts listed on Schedule A hereto, as such schedule is
amended or supplemented from time to time;

 

(c)                                  all
Chattel Paper (including, Electronic Chattel Paper);

 

(d)                                 all
Commercial Tort Claims (including those claims listed on Schedule B hereto, in
which the claim amount individually exceeds $2,000,000, as such schedule is
amended or supplemented from time to time);

 

(e)                                  all
Contracts;

 

(f)                                    all
Securities Accounts;

 

(g)                                 all
Deposit Accounts;

 

(h)                                 all
Documents (other than title documents with respect to vehicles);

 

(i)                                     all
Equipment;

 

4

 

(j)                                     all
Fixtures;

 

(k)                                  all
General Intangibles;

 

(l)                                     all
Goods;

 

(m)                               all
Instruments;

 

(n)                                 all
Intellectual Property;

 

(o)                                 all
Inventory;

 

(p)                                 all
Investment Property;

 

(q)                                 all
Letters of Credit;

 

(r)                                    all
Letter of Credit Rights;

 

(s)                                  all
Payment Intangibles;

 

(t)                                    all
Vehicles and title documents with respect to Vehicles;

 

(u)                                 all
Receivables;

 

(v)                                 all
Software;

 

(w)                               all
Supporting Obligations;

 

(x)                                   to the
extent, if any, not included in clauses (a) through (w) above, each
and every other item of personal property whether now existing or hereafter
arising or acquired;

 

(y)                                 all
books and records pertaining to any of the Collateral; and

 

(z)                                   to the
extent not otherwise included, all Proceeds, Supporting Obligations and
products of any and all of the foregoing and all collateral security and
guarantees given by any Person with respect to any of the foregoing;

 

provided, however, that
notwithstanding any of the other provisions set forth in this Section 2
(and notwithstanding any recording of the Agent’s Lien in the U.S. Patent and
Trademark Office or other registry office in any jurisdiction), this Agreement
shall not constitute a grant of a security interest in, and the Collateral
shall not include, any property to the extent that such grant of a security interest
is prohibited by any applicable Law of an Official Body, requires a consent not
obtained of any Official Body pursuant to such Law or is prohibited by, or
constitutes a breach or default under or results in the termination of or gives
rise to any right of acceleration, modification or cancellation or requires any
consent not obtained under, any contract, license, agreement, instrument or
other document evidencing or giving rise to such property or, in the case of
any Investment Property, or Pledged Note, any applicable shareholder or similar
agreement, except to the extent that such Law or the term in such contract,
license, agreement, instrument or other document or shareholder or similar
agreement providing for such prohibition, breach, default or termination or
requiring such consent is ineffective under applicable Law including Sections
9-406, 9-407, 9-408 or 9-409 of the New York UCC (or any successor provision or

 

5

 

provisions); provided,
further, that no security interest shall be granted in United States “intent-to-use”
trademark or service mark application unless and until acceptable evidence of
use of the trademark or service mark has been filed with and accepted by the
U.S. Patent and Trademark Office pursuant to Section 1(c) or Section 1(d) of
the Lanham Act (U.S.C. 1051, et. seq.), and to the extent that, and solely
during the period in which, the grant of a security interest therein would
impair the validity or enforceability of such intent-to-use trademark or
service mark applications under applicable federal Law.  After such period and after such evidence of
use has been filed and accepted, each Grantor acknowledges that such interest
in such trademark or service mark applications will become part of the
Collateral.  The Agent agrees that, at
any Grantor’s reasonable request and expense, it will provide such Grantor
confirmation that the assets described in this paragraph are in fact excluded
from the Collateral during such limited period only.

 

SECTION 3.
REPRESENTATIONS AND WARRANTIES

 

To
induce the Agent and the Lenders to enter into the Amendment No. 1 to
Credit Agreement and to induce the Lenders to continue existing, and to make
their respective new extensions of credit to the Borrower under the Credit
Agreement, each Grantor hereby represents and warrants to the Agent and each
other Secured Party that:

 

3.1           Title: 
No Other Liens.

 

Except for the security
interest granted to the Agent for the ratable benefit of the Secured Parties
pursuant to this Agreement: (i) such Grantor owns each item of the Cash
Collateral Accounts free and clear of any and all Liens or claims of others,
except for the second priority perfected security interest in favor of the
holders of the Senior Secured Five Year Notes and the third priority perfected
security interest in favor of the holders of the Third Lien Debt, as permitted
in Section 7.2.2 of the Credit Agreement and (ii) such Grantor owns
each other item of the Collateral free and clear of any and all Liens or claims
of others except with respect to the Collateral referred to in this clause (ii) for
the Permitted Liens permitted to exist on the Collateral by Section 7.2.2
of the Credit Agreement.  No financing
statement or other public notice with respect to all or any part of the
Collateral is on file or of record in any public office, except such as have
been filed in favor of the Agent, for the ratable benefit of the Secured
Parties, pursuant to this Agreement or as are permitted by the Credit Agreement.

 

3.2           Perfected First Priority Liens.

 

The security interests
granted pursuant to this Agreement (a) upon completion of the filings and
other actions specified on Schedule C (which, in the case of all filings and
other documents referred to on said Schedule, have been delivered to the Agent
in completed and duly executed form) will constitute valid perfected (to the
extent such security interest can be perfected by such filings or actions)
security interests in all of the Collateral in favor of the Agent, for the
ratable benefit of the Secured Parties, as collateral security for the Secured
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral
in existence on the date hereof except, (i) in the case of Collateral
other than the Cash Collateral Accounts, for Permitted Liens permitted by Section 7.2.2
of the Credit Agreement and (ii) in the case of the Cash Collateral
Accounts, for the second priority perfected security interest in favor of the
holders of the Senior Secured Five Year Notes and the third priority perfected
security interest in favor of the holders of the Third Lien Debt, as permitted
by Section 7.2.2 to the Credit Agreement.

 

6

 

3.3           Jurisdiction of Organization; Chief Executive
Office.

 

On the date hereof, such
Grantor’s exact legal name, jurisdiction of organization, identification number
from the jurisdiction of organization (if any), and the location of such
Grantor’s chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 1.1(C) to
the Credit Agreement.

 

3.4           Farm Products.

 

None of the Collateral
constitutes, or is the Proceeds of, Farm Products.

 

3.5           Investment Property.

 

Such Grantor is the record
and beneficial owner of, and has good title to, the Investment Property pledged
by it hereunder, free of any and all Liens or options in favor of, or claims
of, any other Person, except the security interest created by this Agreement
and the security interests permitted pursuant to Section 7.2.2 of the
Credit Agreement.

 

3.6           Receivables.

 

No amount payable in excess
of $2,000,000 in the aggregate to all Grantors under or in connection with any
Receivables is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Agent.

 

SECTION 4.
COVENANTS

 

Each
Grantor covenants and agrees with the Agent and the other Secured Parties that,
from and after the date of this Agreement until the Expiration Date and the
indefeasible payment in full of all outstanding Secured Obligations (or, with
respect to outstanding Letters of Credit, cash collateralization or other arrangements
reasonably satisfactory to the Letter of Credit Lender therefor and the Agent):

 

4.1           Maintenance of Perfected Security Interest;
Further Documentation.

 

(a)           Such Grantor shall maintain the security interest created by this
Agreement as a perfected security interest to the extent required by this
Agreement having at least the priority described in Section 3.2 and shall
defend such security interest against the claims and demands of all Persons
whomsoever other than(i) in the case of Collateral other than the Cash
Collateral Accounts,  any holder of
Permitted Liens permitted by Section 7.2.2 of the Credit Agreement and (ii) in
the case of the Cash Collateral Accounts, any holder of the Senior Five Year
Secured Notes (as defined in the Credit Agreement) and any holder of Third Lien
Debt (as defined in the Credit Agreement) to the extent such holders are
permitted to hold liens as permitted in Section 7.2.2 of the Credit
Agreement, in each case, subject to the rights of such Grantor under the Loan
Documents to dispose of the Collateral.

 

(b)           At any time and from time to time, upon the written reasonable request of
the Agent, and at the sole expense of such Grantor, such Grantor will promptly
and duly execute and deliver, and have recorded, such further instruments and
documents and take such further actions as the Agent may reasonably request for
the purpose of obtaining, perfecting or preserving the security interests
purported to be granted under this Agreement and of the rights and remedies
herein granted, including, without limitation, (i) filing any financing or
continuation statements under the Uniform Commercial Code (or other similar
laws) in effect in any jurisdiction with respect to the security interests
created hereby and (ii) in the case of the Deposit Accounts, Investment
Property, Letter of Credit Rights and the 

 

7

 

Securities
Accounts and any other relevant Collateral, taking any actions necessary to
enable the Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

 

(c)           If any Grantor shall at any time acquire a Commercial Tort Claim, in which
the claim amount individually exceeds $2,000,000, such Grantor shall promptly
notify the Agent in a writing signed by such Grantor of the details thereof and
grant to the Agent for the benefit of the Secured Parties in such writing a
security interest therein and in the Proceeds thereof, with such writing to be
in form and substance satisfactory to the Agent and such writing shall
constitute a supplement to Schedule B hereto.

 

4.2           Changes in Name, etc.

 

Such Grantor will, within
thirty (30) calendar days after any change its jurisdiction of organization or
change its name, provide written notice thereof to the Agent.

 

4.3           Delivery of Instruments, Certificated
Securities and Chattel Paper.

 

If any amount in excess of
$2,000,000 in the aggregate payable under or in connection with any of the
Collateral shall be or become evidenced by any Instrument, certificated
security or Chattel Paper, such Instrument, certificated security or Chattel
Paper shall be promptly delivered to the Agent, duly indorsed in a manner
reasonably satisfactory to the Agent, to be held as Collateral pursuant to this
Agreement.

 

4.4           Intellectual Property.

 

(a)           Whenever such Grantor, either by itself or through any agent, employee,
licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the
United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, such Grantor shall report such
filing to the Agent on or before the date upon which the Borrower is required
to deliver financial statements pursuant to Section 7.3.1 of the Credit
Agreement for the fiscal quarter in which such filing occurs.  Upon request of the Agent, such Grantor shall
execute and deliver, and have recorded, any and all agreements, instruments,
documents, and papers as the Agent may reasonably request to evidence the Agent’s
and the other Secured Parties’ security interest in any Copyright, Patent or
Trademark and the goodwill and General Intangibles of such Grantor relating
thereto or represented thereby.

 

(b)           Such Grantor shall execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Agent may reasonably
request to evidence the Agent’s and the Secured Parties’ security interest in
such Intellectual Property and the goodwill and General Intangibles of such
Grantors relating thereto or represented thereby, including the Intellectual
Property Security Agreement attached hereto as Exhibit A.

 

SECTION 5.
INVESTING AMOUNTS IN THE SECURITIES ACCOUNTS

 

5.1           Investments.

 

If requested by the
Borrower, the Agent will, from time to time, invest amounts on deposit in the
Deposit Accounts or Securities Accounts in which the Agent for the benefit of
the Lenders holds a first priority, perfected security interest, in Cash
Equivalents pursuant to the written instructions of the Borrower.  All investments may, at the option of the
Agent, be made in the name of the Agent or a nominee of the Agent and in a
manner that preserves the Borrower’s ownership of, and the Agent’s perfected
first priority Lien on, such investments. 
All income received from such investments shall 

 

8

 

accrue for the benefit of
the Borrower and shall be credited (immediately upon receipt by the Agent) to a
Deposit Account or Securities Account, in which Agent for the benefit of the
Secured Parties holds a first priority, perfected security interest.  The Agent will only make investments in which
it can obtain a first priority, perfected security interest, and the Borrower
hereby agrees to execute promptly any documents which the Agent may reasonably
require the Borrower to execute to implement or effectuate the provisions of
this Section.

 

5.2           Liability.

 

The Agent shall have no
responsibility to the Borrower for any loss or liability arising in respect of
the investments in the Deposit Accounts or Securities Accounts in which the
Agent for the benefit of the Secured Parties holds a first priority perfected
security interest (including, without limitation, as a result of the liquidation
of any thereof before maturity), except to the extent that such loss or
liability is found to be based on the Agent’s gross negligence or willful
misconduct as determined by a final and nonappealable decision of a court of
competent jurisdiction.

 

SECTION 6.
REMEDIAL PROVISIONS

 

6.1           Certain Matters Relating to Receivables.

 

(a)           At any time during the continuance of an Event of Default, the Agent shall
have the right to make test verifications of the Receivables in any manner and
through any medium that it reasonably considers advisable, and each Grantor
shall furnish all such assistance and information as the Agent may require in
connection with such test verifications. 
The Agent shall endeavor to provide the Borrower with notice at or about
the time of such verifications, provided that the failure to provide such
notice shall not in any way compromise or adversely affect the exercise of such
remedy or the Agent’s rights hereunder.

 

(b)           Subject to Section 7.2.10 of the Credit Agreement, the Agent hereby
authorizes each Grantor to collect such Grantor’s Receivables and the Agent may
curtail or terminate said authority at any time after the occurrence and during
the continuance of an Event of Default. 
The Agent shall endeavor to provide the Borrower with notice at or about
the time of the exercise of its rights pursuant to the preceding sentence,
provided that the failure to provide such notice shall not in any way
compromise or adversely affect the exercise of any rights or remedies
hereunder.  If requested in writing by
the Agent at any time after the occurrence and during the continuance of an
Event of Default, any payments of Receivables, when collected by any Grantor, (i) shall
be forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the Agent
if required, in a Collateral Account maintained under the sole dominion and
control of the Agent, subject to withdrawal by the Agent for the account of the
Secured Parties only as provided in Section 6.4, and (ii) until so
turned over, shall be held by such Grantor in trust for the Agent and the
Secured Parties, segregated from other funds of such Grantor.

 

(c)           At the Agent’s written request at any time after the occurrence and during
the continuance of an Event of Default, each Grantor shall deliver to the Agent
all original and other documents evidencing, and relating to, the agreements
and transactions which gave rise to the Receivables, including without
limitation, all original orders, invoices and shipping receipts.

 

6.2           Communications with Obligors:  Grantors Remain Liable.

 

(a)           The Agent in its own name or in the name of others may after the
occurrence and during the continuance of an Event of Default communicate with
obligors under the Receivables and 

 

9

 

parties
to the Contracts to verify with them to the Agent’s satisfaction the existence,
amount and terms of any Receivables or Contracts.  The Agent shall endeavor to provide the
Borrower with notice at or about the time of the exercise of its rights
pursuant to the preceding sentence, provided that the failure to provide such
notice shall not in any way compromise or adversely affect the exercise of any
rights or remedies hereunder.

 

(b)           Upon the written request of the Agent at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall notify
obligors on the Receivables and parties to the Contracts that the Receivables
and the Contracts, as the case may be, have been assigned to the Agent for the
ratable benefit of the Secured Parties and that payments in respect thereof
shall be made directly to the Agent.

 

(c)           Anything herein to the contrary notwithstanding, each Grantor shall remain
liable under each of the Receivables and Contracts to observe and perform all
the conditions and obligations to be observed and performed by it thereunder,
all in accordance with the terms of any agreement giving rise thereto.  Neither the Agent nor any Secured Party shall
have any obligation or liability under any Receivable (or any agreement giving
rise thereto) or Contract by reason of or arising out of this Agreement or the
receipt by the Agent or any Secured Party of any payment relating thereto, nor
shall the Agent or any Secured Party be obligated in any manner to perform any
of the obligations of any Grantor under or pursuant to any Receivable (or any
agreement giving rise thereto) or Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any payment received by it or as
to the sufficiency of any performance by any party thereunder, to present or
file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

 

6.3           Proceeds to be Turned Over To Agent.

 

In addition to the rights of
the Agent and the Secured Parties specified in Section 6.1 with respect to
payments of Receivables, if an Event of Default shall occur and be continuing,
upon written request from the Agent, all Proceeds received by any Grantor
consisting of cash, checks and other near-cash items shall be held by such
Grantor in trust for the Agent and the Secured Parties, segregated from other
funds of such Grantor, and shall, forthwith upon receipt by such Grantor, be
turned over to the Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Agent, if requested).  All Proceeds received by the Agent hereunder
shall be held by the Agent in a Collateral Account maintained under its sole
dominion and control.  All such Proceeds
while held by the Agent in a Collateral Account (or by such Grantor in trust
for the Agent and the Secured Parties) shall continue to be held as collateral
security for all the Secured Obligations and shall not constitute payment
thereof until applied as provided in Section 6.4.

 

6.4           Application of Proceeds.

 

At such intervals as may be
agreed upon by the Borrower and the Agent, or, if an Event of Default shall
have occurred and be continuing, at any time at the Agent’s election, the Agent
may apply all or any part of the Collateral, whether or not held in the Deposit
Accounts, the Securities Accounts or any other Collateral Account, in payment
of the Secured Obligations in the order set forth in Section 8.2.5 of the
Credit Agreement.

 

6.5           Code and Other Remedies.

 

If an Event of Default shall
occur and be continuing, the Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any 

 

10

 

other instrument or
agreement securing, evidencing or relating to the Secured Obligations, all
rights and remedies of a secured party under the New York UCC or any other
applicable law.  Without limiting the
generality of the foregoing, the Agent, without prior demand of performance or
other demand, presentment, protest, advertisement or notice of any kind (except
any prior notice required by law referred to below) to or upon any Grantor or
any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived), may in such circumstances forthwith collect,
receive, appropriate and realize upon the Collateral, or any part thereof,
and/or may forthwith sell, lease, assign, give option or options to purchase,
or otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the Agent
or any Secured Party or elsewhere upon such terms and conditions as it may deem
advisable and at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk.  The Agent shall endeavor to provide the
Borrower with notice at or about the time of the exercise of remedies in the
proceeding sentence, provided that the failure to provide such notice shall not
in any way compromise or adversely affect the exercise of such remedies or the
Agent’s rights hereunder.  The Agent or
any Secured Party shall have the right upon any such public sale or sales, and,
to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in any Grantor, which right or equity is hereby waived and
released.  Each Grantor further agrees,
at the Agent’s request, to assemble the Collateral and make it available to the
Agent at places which the Agent shall reasonably select, whether at such
Grantor’s premises or elsewhere.  The
Agent shall apply the net proceeds of any action taken by it pursuant to this Section 6.5,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the Agent
and the Secured Parties hereunder, including, without limitation, reasonable
attorneys’ fees and disbursements, to the payment in whole or in part of the
Secured Obligations, in such order as the Agent may elect, and only after such
application and after the payment by the Agent of any other amount required by
any provision of law, including, without limitation, Section 9-615(a)(3) of
the New York UCC, need the Agent account for the surplus, if any, to any
Grantor.  To the extent permitted by
applicable law, each Grantor waives all claims, damages and demands it may
acquire against the Agent or any Secured Party arising out of the exercise by
them of any rights hereunder.  If any
prior notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at
least 10 days before such sale or other disposition.

 

6.6           Subordination.

 

Each Grantor hereby agrees
that, upon the occurrence and during the continuance of an Event of Default,
unless otherwise agreed by the Agent, all Indebtedness owing to it by the
Borrower or any Subsidiary of the Borrower shall be fully subordinated to the
indefeasible payment in full in cash of the Secured Obligations.

 

6.7           Deficiency.

 

Each Grantor shall remain
liable for any deficiency if the proceeds of any sale or other disposition of
the Collateral are insufficient to pay the Secured Obligations and the fees and
disbursements of any attorneys employed by the Agent or any Secured Party to
collect such deficiency.

 

11

 

SECTION 7. THE AGENT

 

7.1           Agent’s Appointment as
Attorney-in-Fact. etc.

 

(a)           Each Grantor hereby irrevocably constitutes and appoints the Agent and any
officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, to take any and
all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, each Grantor
hereby gives the Agent the power and right, on behalf of such Grantor, without
prior notice to or assent by such Grantor, to do any or all of the following:

 

(i)            in the name of
such Grantor or its own name, or otherwise, take possession of and indorse and
collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable or Contract or with respect to any
other Collateral and file any claim or take any other action or proceeding in
any court of law or equity or otherwise deemed appropriate by the Agent for the
purpose of collecting any and all such moneys due under any Receivable or
Contract or with respect to any other Collateral whenever payable;

 

(ii)           in the case of any
Intellectual Property, execute and deliver, and have recorded, any and all
agreements, instruments, documents and papers as the Agent may request to
evidence the Agent’s and the Secured Parties’ security interest in such
Intellectual Property and the goodwill and General Intangibles of such Grantors
relating thereto or represented thereby;

 

(iii)          pay or
discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this
Agreement and pay all or any part of the premiums therefor and the costs
thereof;

 

(iv)          execute, in
connection with any sale provided for in Section 6.5, any endorsements,
assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

 

(v)           (1) direct
any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the Agent or as
the Agent shall direct; (2) ask or demand for, collect, and receive
payment of and receipt for, any and all moneys, claims and other amounts due or
to become due at any time in respect of or arising out of any Collateral; (3) sign
and indorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral; (4) commence
and prosecute any suits, actions or proceedings at law or in equity in any
court of competent jurisdiction to collect the Collateral or any portion
thereof and to enforce any other right in respect of any Collateral; (5) defend
any suit, action or proceeding brought against such Grantor with respect to any
Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as
the Agent may deem appropriate; (7) assign any Copyright, Patent or
Trademark (along with the goodwill of the business to which any such Copyright,
Patent or Trademark pertains), through the world for such term or terms, on
such conditions, in such manner, as the Agent shall in its sole discretion
determine; and (8) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as fully
and completely as though the Agent were the absolute owner thereof for all 

 

12

 

purposes,
and do, at the Agent’s option and such Grantor’s expense, at any time, or from
time to time, all acts and things which the Agent deems necessary to protect,
preserve or realize upon the Collateral and the Agent’s and the Secured Parties’
security interests therein and to effect the intent of this Agreement, all as
fully and effectively as such Grantor might do.

 

The Agent shall endeavor to provide the
Borrower with  notice at or about the
time of the exercise of its rights in the preceding clause (a), provided that
the failure to provide such notice shall not in any way compromise or adversely
affect the exercise of any rights or remedies hereunder.

 

(b)           If any Grantor fails to perform or comply with any of its agreements
contained herein, the Agent, at its option, but without any obligation so to
do, may perform or comply, or otherwise cause performance or compliance, with
such agreement.

 

(c)           The expenses of the Agent incurred in connection with actions undertaken
as provided in this Section 7.1, together with, if past due, interest
thereon at a rate per annum equal to the Default Rate, from the date when due
to the Agent to the date reimbursed by the relevant Grantor, shall be payable
by such Grantor to the Agent upon not less than five (5) Business Days
notice.

 

(d)           Each Grantor hereby ratifies all that said attorneys shall lawfully do or
cause to be done by virtue hereof.  All
powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

 

7.2           Duty of Agent.

 

The Agent’s sole duty with
respect to the custody, safekeeping and physical preservation of the Collateral
in its possession, under Section 9-207 of the New York UCC or otherwise,
shall be to deal with it in the same manner as the Agent deals with similar
property for its own account.  Neither
the Agent, any Secured Party nor any of their respective officers, directors,
employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
any Grantor or any other Person or to take any other action whatsoever with
regard to the Collateral or any part thereof. 
The powers conferred on the Agent and the Secured Parties hereunder are
solely to protect the Agent’s and the Secured Parties’ interests in the
Collateral and shall not impose any duty upon the Agent or any Secured Party to
exercise any such powers.  The Agent and
the Secured Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of
their officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

 

7.3           Execution of Financing
Statements.

 

Pursuant to any applicable
law, each Grantor authorizes the Agent to file or record financing statements
and other filing or recording documents or instruments with respect to the
Collateral without the signature of such Grantor in such form and in such
offices as the Agent determines appropriate to perfect the security interests
of the Agent under this Agreement.  Each
Grantor authorizes the Agent to use the collateral description “all personal
property” or “all assets” in any such financing statements or in any other
manner that the Agent, in its sole discretion, deems necessary, advisable or
prudent to ensure the perfection of the security interests granted hereunder.

 

13

 

7.4           Authority of Agent.

 

Each Grantor acknowledges
that the rights and responsibilities of the Agent under this Agreement with
respect to any action taken by the Agent or the exercise or non-exercise by the
Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as
between the Agent and the Secured Parties, be governed by the Credit Agreement
and by such other agreements with respect thereto as may exist from time to
time among them, but, as between the Agent and the Grantors, the Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such authority.

 

SECTION 8. MISCELLANEOUS

 

8.1           Amendments in Writing.

 

None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except in accordance with Section 10.1 of the Credit Agreement.

 

8.2           Notices.

 

All notices, requests and demands to or upon
the Agent or any Grantor hereunder shall be effected in the manner provided for
in Section 10.6 of the Credit Agreement; provided that any such notice,
request or demand to or upon any Grantor other than the Borrower shall be
addressed to such Grantor at its notice address set forth on Schedule 1.1(B) to
the Credit Agreement under the heading “Borrower” or “Guarantors,” as
applicable.

 

8.3           No Waiver by Course of
Conduct; Cumulative Remedies.

 

Neither the Agent nor any Secured Party shall
by any act (except by a written instrument pursuant to Section 8.1),
delay, indulgence, omission or otherwise be deemed to have waived any right or
remedy hereunder or to have acquiesced in any Potential Default or Event of
Default.  No failure to exercise, nor any
delay in exercising, on the part of the Agent or any Secured Party, any right,
power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by the Agent or any Secured Party of
any right or remedy hereunder on any one occasion shall not be construed as a
bar to any right or remedy which the Agent or such Secured Party would
otherwise have on any future occasion. 
The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

 

8.4           Enforcement Expenses;
Indemnification.

 

(a)           Each Grantor agrees to pay or reimburse each Secured Party and the Agent
for all its costs and expenses incurred in enforcing or preserving any rights
under this Agreement and the other Loan Documents to which such Grantor is a
party, including, without limitation, the reasonable fees and disbursements of
counsel (including the allocated fees and expenses of in-house counsel) to the
Agent and the Lenders.

 

(b)           Each Grantor agrees to pay, and to save the Agent and the Secured Parties
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all 

 

14

 

stamp, excise, sales or
other taxes which may be payable or determined to be payable with respect to
any of the Collateral or in connection with any of the transactions
contemplated by this Agreement.

 

(c)           Each Grantor agrees to pay, and to save the Agent and the Secured Parties
harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Borrower would
be required to do so pursuant to Sections 9.5 and 10.3 of the Credit Agreement
except those resulting from the Agent’s or any Secured Party’s willful
misconduct or gross negligence.

 

(d)           The agreements in this Section 8.4 shall survive repayment of the Secured
Obligations and all other amounts payable under the Credit Agreement and the
other Loan Documents.

 

8.5           Successors and Assigns.

 

This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the Agent
and the Secured Parties and their successors and assigns; provided that except
as permitted by the Credit Agreement, no Grantor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the
prior written consent of the Agent.

 

8.6           Set-Off.

 

Each
Grantor hereby irrevocably authorizes the Agent and each other Secured Party at
any time and from time to time while an Event of Default has occurred and is
continuing, without notice to such Grantor or any other Grantor, any such
notice being expressly waived by each Grantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by the Agent or such other
Secured Party to or for the credit or the account of such Grantor, or any part
thereof in such amounts as the Agent or such other Secured Party may elect,
against and on account of the obligations and liabilities of such Grantor to
the Agent or such other Secured Party hereunder and claims of every nature and
description of the Agent or such other Secured Party against such Grantor, in
any currency, whether arising hereunder, under the Credit Agreement or any
other Loan Document, as the Agent or such other Secured Party may elect,
whether or not the Agent or any other Secured Party has made any demand for
payment and although such obligations, liabilities and claims may be contingent
or unmatured.  The Agent and each other
Secured Party shall endeavor to notify the Borrower promptly of any such
set-off and the application made by the Agent or such other Secured Party of
the proceeds thereof, provided that the failure to give such notice shall not
affect the validity of such set-off and application.  The rights of the Agent and each other
Secured Party under this Section 8.6 are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which the
Agent or such other Secured Party may have.

 

8.7           Counterparts.

 

This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

 

15

 

8.8           Severability.

 

Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.9           Section Headings.

 

The Section headings
used in this Agreement are for convenience of reference only and are not to
affect the construction hereof or be taken into consideration in the
interpretation hereof.

 

8.10         Integration.

 

This Agreement and the other
Loan Documents represent the agreement of the Grantors, the Agent and the
Secured Parties with respect to the subject matter hereof and thereof, and
there are no promises, undertakings, representations or warranties by the Agent
or any Secured Parties relative to subject matter hereof and thereof not
expressly set forth or referred to herein or in the other Loan Documents.

 

8.11         GOVERNING
LAW.

 

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

 

8.12         Submission To Jurisdiction;
Waivers.

 

Each Grantor hereby
irrevocably and unconditionally:

 

(a)           submits for itself and its property in any legal action or proceeding
relating to this Agreement and the other Loan Documents to which it is a party,
or for recognition and enforcement of any judgment in respect thereof, to the
non-exclusive general jurisdiction of the courts of the State of New York, the
courts of the United States of America for the Southern District of New York,
and appellate courts from any thereof;

 

(b)           consents that any such action or proceeding may be brought in such courts
and waives any objection that it may now or hereafter have to the venue of any
such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same;

 

(c)           agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the
Agent shall have been notified pursuant thereto;

 

(d)           agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction; and

 

16

 

(e)           waives, to the maximum extent not prohibited by law, any right it may have
to claim or recover in any legal action or proceeding referred to in this Section any
special, exemplary, punitive or consequential damages.

 

8.13         Acknowledgements.

 

Each Grantor hereby
acknowledges that:

 

(a)           it has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other Loan Documents to which it is a party;

 

(b)           neither the Agent nor any Secured Party has any fiduciary relationship
with or duty to any Grantor arising out of or in connection with this Agreement
or any of the other Loan Documents, and the relationship between the Grantors,
on the one hand, and the Agent and Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(c)           no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Secured Parties or among the Grantors and the Secured Parties;

 

(d)           the Agent may at any time and from time to time appoint a collateral agent
to maintain any of the Collateral, maintain books and records regarding any
Collateral, release Collateral, and assist in any aspect arising in connection
with the Collateral as Agent may desire; and the Agent may appoint itself, any
affiliate or a third party as the Collateral Agent, and all reasonable costs of
the Collateral Agent shall be borne by the Grantors;

 

(e)           the defined term Obligations has been amended pursuant to Amendment No. 1,
and accordingly, the Guaranteed Indebtedness (as defined in the Guaranty
Agreement) guaranteed by each Grantor and the Secured Obligations (as defined
in each of the other Loan Documents) have likewise been amended to reflect the
amendment to the term Obligations as identified above;

 

(f)            the Commitments have been amended by Amendment No. 1 and accordingly,
the Notes have been amended and restated to reflect the amended Commitments;

 

(g)           it reaffirms all of its obligations and agreements set forth in the
Guaranty Agreement, the Security Agreement, the Pledge Agreement, the Mortgages
and each of the other Loan Documents to which it is a party, each as amended,
modified, restated or supplemented to and including the effective date of
Amendment No. 1 (the “Effective Date”); and

 

(h)           from and after the Effective Date, all Loan Documents shall be in support
of and shall secure the Obligations as defined in the Credit Agreement as
amended by Amendment No. 1, and as it may hereafter be amended,
supplemented, restated or modified from time to time.

 

8.14         Additional Grantors.

 

Each Restricted Subsidiary
of Hovnanian shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of a Guarantor Joinder and Assumption
Agreement.

 

17

 

8.15         Releases.

 

(a)           Upon the indefeasible payment in full of all outstanding Secured
Obligations (or, with respect to outstanding Letters of Credit, cash
collateralization or other arrangements reasonably satisfactory to the Letter
of Credit Lender therefor and the Agent), the Collateral shall be automatically
released from the Liens created hereby, and this Agreement and all obligations (other
than those expressly stated to survive such termination) of the Agent and each
Grantor hereunder shall automatically terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the
Collateral shall revert to the Grantors. 
At the request and sole expense of any Grantor following any such
termination, the Agent shall deliver to such Grantor any Collateral held by the
Agent hereunder, and execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination.

 

(b)           If any of the Collateral shall be sold or otherwise transferred pursuant
to a transaction permitted by Section 7.2.10 of the Credit Agreement, the
Liens created hereby on such Collateral shall automatically terminate.  Upon indefeasible payment in full of all
outstanding Secured Obligations (or, with respect to outstanding Letters of
Credit, cash collateralization or other arrangements reasonably satisfactory to
the Letter of Credit Lender therefor and the Agent), or if any of the
Collateral shall be requested to be released by any Grantor pursuant to this
Agreement and in accordance with the Credit Agreement, then the Agent, at the
request and sole expense of such Grantor, shall execute and deliver to such
Grantor all releases or other documents reasonably necessary or desirable for
the release of the Liens created hereby on such Collateral.

 

8.16         Automatic Release of
Collateral.

 

At any time after the
initial execution and delivery of this Agreement to the Secured Parties,
Grantors and their respective Collateral may be released from this Agreement
pursuant to Section 2.11.1 [Release of Guarantors] and Section 2.11.5
[Automatic Release of Related Collateral and Equity] of the Credit
Agreement.  No notice of such release of
any Grantor or such Grantor’s Collateral shall be required to be given to any
other Grantor and each Grantor hereby consents thereto.

 

8.17         WAIVER OF
JURY TRIAL.

 

EACH
GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.18         No Novation.

 

No novation is intended or
shall occur by or as a result of the Amendment No. 1 or this Amended and
Restated Security Agreement.  The
Grantors reconfirm, restate, and ratify the Credit Agreement and each of the
other Loan Documents and all other documents executed in connection therewith
except to the extent any such documents are expressly modified by the Amendment
No. 1 or this Amended and Restated Security Agreement.  Each of the Amendment No. 1 and this
Amended and Restated Security Agreement is not intended to constitute, nor does
it constitute, and interruption, suspension of continuity, satisfaction,
discharge of prior duties, novation, or termination of the liens, security
interests, indebtedness, loans, liabilities, expenses or obligations under the
Credit Agreement or the other Loan Documents. 
The Grantors, the Agent and each of the Secured Parties acknowledge and
agree that the Collateral and other liens and security interests in favor of
the Agent and the Secured Parties have continued to secure the indebtedness,
loans, liabilities, expenses, and obligations under the Credit 

 

18

 

Agreement since the date of execution of each
applicable Loan Document, and all liens and security interests in the
Collateral, as amended hereby, and all other liens and security interests which
were granted pursuant to any of the Loan Documents shall remain in full force
and effect from and after the Effective Date hereof and the additional
collateral granted hereby and by the other Loan Documents on and after the
Effective Date hereof are included in the Collateral and serve as collateral,
as the case may be, (and, in confirmation thereof and in addition to and not in
derogation of any of the Loan Documents, the Grantors, as their interests may
appear, have each hereby and thereby granted to the Agent for the benefit of
the Secured Parties a security interest in all such assets now owned or
hereafter acquired (together with all present and future products and proceeds
thereof and attachments and accessories thereto) to secure payment and
performance of the Obligations.

 

8.19         Control
Agreements.

 

In connection with each
agreement made at any time pursuant to Sections 9-104 or 8-106 of the Uniform
Commercial Code among Agent, any one or more Grantors, and any depository
financial institution or issuer of uncertificated mutual fund shares or other
uncertificated securities, the Agent shall not deliver to any such depository
or issuer, instructions directing the disposition of the deposit or
uncertificated fund shares or other securities unless an Event of Default (as
defined in the Credit Agreement) has occurred and is continuing at such time.

 

8.20         Cash
Collateral Account.

 

Each of the Grantors and the
Agent agree that the definition of Cash Collateral Account in the Credit
Agreement (as amended by  Amendment No. 1)
is hereby amended and restated in its entirety to read as follows:

 

“Cash Collateral Account
shall mean the deposit accounts, securities accounts and money market mutual
fund shares or similar securities at or maintained or issued by the Agent or
any of the Lenders or any one or more Affiliates of Agent or any of the Lenders
and which are identified on Schedule A to the Security Agreement (as such
schedule may be amended, supplemented or modified from time to time) in which
the Agent for the benefit of the Lenders holds a first priority perfected
security interest securing payment and performance of the Obligations.”

 

[REMAINDER
OF PAGE LEFT BLANK INTENTIONALLY]

 

19

 

[SIGNATURE PAGE 1 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Security Agreement to be duly executed and delivered as of the
date first above written.

 

 

	
   

  	
  Secured Party:

  
	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL ASSOCIATION, as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

[SIGNATURE PAGE 2 OF 54 TO THE AMENDED AND RESTATED SECURITY
AGREEMENT]

 

	
   

  	
  Debtors:

  
	
   

  	
   

  
	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Kevin C. Hake

  
	
   

  	
  Title:

  	
  Senior Vice-President — Finance and Treasurer

  
					

 

 

[SIGNATURE PAGE 3 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Kevin C. Hake

  
	
   

  	
  Title:

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EASTERN
  TITLE AGENCY, INC.

  
	
   

  	
   

  
	
   

  	
  FOUNDERS
  TITLE AGENCY, INC.

  
	
   

  	
   

  
	
   

  	
  GOVERNOR’S
  ABSTRACT CO., INC.

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  DEVELOPMENTS OF FLORIDA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOV INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOV IP, II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOV IP, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN ACQUISITIONS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BERNARDS IV, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BRANCHBURG III, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BRIDGEPORT, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BRIDGEWATER VI, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BURLINGTON III, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BURLINGTON, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CALABRIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CAMERON CHASE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CARMEL DEL MAR, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CASTILE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 4 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT CHAPARRAL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CLARKSTOWN, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CRESTLINE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT DOMINGUEZ HILLS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT EAST WHITELAND I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT FREEHOLD TOWNSHIP I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HERSHEY’S MILL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HACKETTSTOWN, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HIGHLAND VINEYARDS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HOPEWELL IV, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HOPEWELL VI, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HOWELL TOWNSHIP, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT KINGS GRANT I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT LA TERRAZA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT LAKEWOOD, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT LOWER SAUCON, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MAHWAH II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MAHWAH VI, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MAHWAH VII, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MANALAPAN, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MARLBORO II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MARLBORO TOWNSHIP III, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MARLBORO TOWNSHIP IV, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MONTGOMERY I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MONROE II, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 5 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT NORTHERN WESTCHESTER, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT NORTHLAKE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT OCEAN TOWNSHIP, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT OCEAN WALK, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PERKIOMEN I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PERKIOMEN II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT RANCHO CRISTIANITOS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT RESERVOIR RIDGE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SAN SEVAINE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SARATOGA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SAWMILL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SCOTCH PLAINS II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SMITHVILLE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SOUTH BRUNSWICK V, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT STONE CANYON, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT STONY POINT, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SYCAMORE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TANNERY HILL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT THE BLUFF, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT THORNBURY, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TIERRASANTA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TROVATA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TUXEDO, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT UNION TOWNSHIP I, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 6 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT UPPER FREEHOLD TOWNSHIP I,

  INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT UPPER MAKEFIELD I, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT VAIL RANCH, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WALL TOWNSHIP VI, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WALL TOWNSHIP VIII, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WASHINGTONVILLE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WAYNE III, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WAYNE V, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT WILDROSE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMMUNITIES, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES NORTHEAST, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF NEW YORK, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF PENNSYLVANIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN COMPANIES OF VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN CONSTRUCTION II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN CONSTRUCTION III, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN CONSTRUCTION MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 7 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF CONNECTICUT, INC.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF GEORGIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF INDIANA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF MICHIGAN, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF NORTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF OHIO, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF SOUTH

  CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF TEXAS, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN FORECAST HOMES NORTHERN, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES OF NORTH CAROLINA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 8 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN HOMES OF VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN PA REAL ESTATE, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN PROPERTIES OF NORTH BRUNSWICK V, INC.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN PROPERTIES OF RED BANK, INC.

  
	
   

  	
   

  
	
   

  	
  KHC
  ACQUISITION, INC.

  
	
   

  	
   

  
	
   

  	
  LANDARAMA,
  INC.

  
	
   

  	
   

  
	
   

  	
  M&M
  AT LONG BRANCH, INC.

  
	
   

  	
   

  
	
   

  	
  MCNJ,
  INC.

  
	
   

  	
   

  
	
   

  	
  SEABROOK
  ACCUMULATION CORPORATION

  
	
   

  	
   

  
	
   

  	
  STONEBROOK
  HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  THE
  MATZEL & MUMFORD ORGANIZATION, INC.

  
	
   

  	
   

  
	
   

  	
  WASHINGTON
  HOMES, INC.

  
	
   

  	
   

  
	
   

  	
  WH
  LAND I, INC.

  
	
   

  	
   

  
	
   

  	
  WH
  PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
  On
  behalf of, and as Senior Vice-President —
  Finance

  and Treasurer of each of the foregoing corporations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 9 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of D.C., Inc., as the sole member of the
  foregoing limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  GREENWAY
  FARMS UTILITY ASSOCIATES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  HOMEBUYERS
  FINANCIAL SERVICES, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT CIDER MILL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Maryland, Inc., as the sole member of each of
  the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
						

 

 

[SIGNATURE PAGE 10 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT GREENWAY FARM, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT RENAISSANCE PLAZA,

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  RIDGEMORE
  UTILITY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WASHINGTON
  HOMES AT COLUMBIA TOWN CENTER, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WH/PR
  LAND COMPANY, LLC

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Maryland, Inc., as the sole member of each of
  the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 11 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  ALFORD,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  DULLES
  COPPERMINE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN FRANCUSCUS HOMES, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT BELMONT OVERLOOK, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of each of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 12 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  AUDDIE
  ENTERPRISES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  BUILDER
  SERVICES NJ, L.L.C.

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF NEW JERSEY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT ABERDEEN URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT ALLENDALE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 13 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 14 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT DOVER, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT FIFTH AVENUE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 15 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT GALLOWAY, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HAWTHORNE, L.L.C

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 16 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT HAZLET, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT HILLTOP, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT KEYPORT, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 17 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MAPLE AVENUE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 18 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 19 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 20 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT OCEANPORT, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PEAPACK-GLADSTONE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 21 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT PRINCETON LANDING, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PRINCETON NJ, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT RIDGEMONT, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SOMERS POINT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE PAGE 22 OF 54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SPARTA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SPRINGCO, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TRENTON, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of each of the foregoing
  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey,

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 23 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT VINELAND, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member 

  of each of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 24 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN CLASSICS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN CLASSICS CIP, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES – DFW, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN OF HOUSTON II, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN NORTH CENTRAL ACQUISITIONS, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member 

  of each of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 25 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN SOUTHERN NEW JERSEY, L.LC.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  TERRAPIN
  REALTY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  KHIP,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member 

  of each of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 26 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  F&W
  MECHANICAL SERVICES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the managing 

  member of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 27 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  HUDSON
  POINTE JOINT DEVELOPMENT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Hudson Pointe Investments, L.L.C., its 

  sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

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

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New 

  Jersey, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance 

  and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 28 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT HUDSON POINTE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hudson
  Pointe Joint Development, L.L.C., its sole 

  member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Hudson Pointe Investments, 

  L.L.C., its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

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

  sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of 

  New Jersey, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance 

  and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
								

 

 

[SIGNATURE
PAGE 29 OF
54 TO THE
AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  PARK
  TITLE COMPANY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian of Houston II, L.L.C., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

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

  member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New 

  Jersey, Inc., as member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
									

 

 

[SIGNATURE
PAGE 30 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  PI
  INVESTMENTS II, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Investments II, L.L.C., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

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

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
							

 

 

[SIGNATURE
PAGE 31 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL 

  IV, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL 

  V, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL 

  VI, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  PI
  Investments II, L.L.C., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

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

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

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

  sole member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of

  New Jersey, Inc., as member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance 

  and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, 

  Inc., as member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
								

 

 

[SIGNATURE
PAGE 32 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF 

  CALIFORNIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT 3 CHAPMAN, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT AVENUE ONE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CIELO, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT COASTLINE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT EASTLAKE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT EVERGREEN, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 33 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT LA HABRA KNOLLS, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MATSU, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MOCKINGBIRD CANYON, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PIAZZA D’ORO, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT PRADO, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT RANCHO SANTA MARGARITA, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT ROSEMARY LATANA, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT SAGE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 34 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN INTERNATIONAL, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT BEAUMONT, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT MENIFEE 

  VALLEY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  NATOMAS
  CENTRAL NEIGHBORHOOD HOUSING, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of each of the foregoing limited liability
  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 35 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey, Inc., as 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
						

 

 

[SIGNATURE
PAGE 36 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  BUILDER
  SERVICES, PA, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT ALLENBERRY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT ALLENTOWN, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT BROAD AND WALNUT, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT CAMPHILL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K
  HOVNANIAN AT EAST BRANDYWINE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K
  HOVNANIAN AT FORKS TWP. I, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT LOWER MAKEFIELD TOWNSHIP I, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT MACUNGIE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Companies of Pennsylvania, Inc., as the 

  sole member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 37 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT SILVER SPRING, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MIDWEST
  BUILDING PRODUCTS & CONTRACTOR 

  SERVICES OF PENNSYLVANIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  RIDGEMORE
  UTILITY ASSOCIATES OF 

  PENNSYLVANIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Companies of Pennsylvania, Inc., as the 

  sole member of each of the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 38 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF FLORIDA, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN FIRST HOMES, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN FLORIDA REALTY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN STANDING ENTITY, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian
  Developments of Florida, Inc., as the sole 

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 39 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN COMPANIES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Enterprises, Inc., as member of the foregoing limited
  liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of New Jersey II, Inc., as 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian at Perkiomen II, Inc., as the sole member 

  of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
					

 

 

[SIGNATURE
PAGE 40 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN CRAFTBUILT HOMES OF SOUTH 

  CAROLINA, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of South Carolina, Inc., as 

  the sole member of each of the foregoing limited 

  liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN GREAT WESTERN BUILDING 

  COMPANY, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  NEW
  LAND TITLE AGENCY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

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

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 41 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN AT RIDGESTONE, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, 

  L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 42 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN OSTER HOMES, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  MIDWEST
  BUILDING PRODUCTS & CONTRACTOR 

  SERVICES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Ohio, Inc., as the sole 

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM
  TITLE AGENCY, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Oster Homes, L.L.C., its sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Ohio, Inc., as 

  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
						

 

 

[SIGNATURE
PAGE 43 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT HUNTFIELD, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  MIDWEST
  BUILDING PRODUCTS & CONTRACTOR 

  SERVICES OF WEST VIRGINIA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of West Virginia, Inc., as 

  the sole member of each of the foregoing limited 

  liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  MIDWEST
  BUILDING PRODUCTS & CONTRACTOR 

  SERVICES OF MICHIGAN, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

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

  sole member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 44 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The
  Matzel & Mumford Organization, Inc., as the sole 

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 45 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  M &
  M AT COPPER BEECH, L.L.C.

  
	
   

  	
   

  
	
   

  	
  M &
  M AT CRESCENT COURT, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  M &
  M AT STATION SQUARE, L.L.C.

  
	
   

  	
   

  
	
   

  	
  M &
  M AT UNION, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  M&M
  AT THE CHATEAU, L.LC.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  M&M
  AT WESTPORT, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  MATZEL &
  MUMFORD AT SOUTH BOUND BROOK 

  URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  
	
   

  	
  MMIP,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  M&M
  Investments, L.P., as the sole member of each of 

  the foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 46 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT JONES STATION 1, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT JONES STATION 2, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  PADDOCKS,
  L.L.C.

  
	
   

  	
   

  
	
   

  	
  PINE
  AYR, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Homes of Maryland, L.L.C., as the sole 

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF TEXAS, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Homes - DFW, L.L.C., as the sole 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian Holdings NJ, L.L.C., as the sole member of the foregoing limited
  liability 

  company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and 

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 47 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  
	
   

  	
   

  
	
   

  	
  BUILDER
  SERVICES NY, L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT 

  HAMPTONBURGH, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian at Northern Westchester, Inc., as the sole 

  member of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN DELAWARE ACQUISITIONS, L.L.C.

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN HOMES AT NASSAU GROVE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  sole member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 48 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN AT MENIFEE VALLEY 

  CONDOMINIUMS, L.L.C.

  
	
   

  	
  By:

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF NORTH 

  CAROLINA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of North Carolina, Inc., as 

  the sole member of the foregoing limited liability 

  company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 49 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT BAILEY’S GLENN, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT OLDE LIBERTY, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  K.
  HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, 

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Homes of North Carolina, Inc. as the sole member of the
  foregoing limited liability companies

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 50 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN HOMES OF INDIANA, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Indiana, Inc., as the sole 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  MIDWEST
  BUILDING PRODUCTS & CONTRACTOR 

  SERVICES OF KENTUCKY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  sole member of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 51 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  K.
  HOVNANIAN CONNECTICUT ACQUISITIONS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  sole member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Illinois, Inc., as the sole 

  member of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOVNANIAN
  LAND INVESTMENT GROUP OF GEORGIA, 

  L.L.C

  
	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  K.
  Hovnanian Developments of Georgia, Inc., as the sole member of each of
  the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  

 

 

[SIGNATURE
PAGE 52 OF 54
TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

  	
  WESTMINSTER
  HOMES OF ALABAMA, L.L.C.

  
	
   

  	
   

  
	
   

  	
  WESTMINSTER
  HOMES OF MISSISSIPPI, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Washington
  Homes, Inc., as sole member of each of the 

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  K.
  HOVNANIAN AT EWING, L.L.C.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
  K.
  Hovnanian at Lakewood, Inc., as sole 

  member of the foregoing limited liability 

  company

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  	 

	
   

  	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Attest:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  	 

	
   

  	
   

  	
   

  	
   

  	
  Secretary

  	 

								

 

 

[SIGNATURE
PAGE 53 OF 54 TO THE AMENDED AND RESTATED SECURITY AGREEMENT]

 

	
   

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

  	 

	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Hovnanian
  Enterprises, Inc., as member.

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  	 

	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Attest:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  	 

	
   

  	
   

  	
   

  	
  Secretary

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  AND

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
  K.
  Hovnanian International, Inc., as member.

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  	 

	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Attest:

  	
   

  	 

	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  	 

	
   

  	
   

  	
   

  	
  Secretary

  	 

 

 

[SIGNATURE PAGE 54 OF 54 TO THE AMENDED AND RESTATED SECURITY
AGREEMENT]

 

	
   

  	
  M&M
  INVESTMENTS, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The
  Matzel & Mumford Organization, Inc., as general

  partner of the foregoing limited partnership.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  C. Hake

  
	
   

  	
   

  	
   

  	
  Senior Vice-President — Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Peter
  S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address
  for Notices for each of the foregoing Debtors:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  c/o K. Hovnanian
  Enterprises, Inc.

  
	
   

  	
  110 West Front St.,
  P.O. Box 500

  
	
   

  	
  Red Bank, NJ 07701

  
	
   

  	
  Attention: Kevin C. Hake

  
	
   

  	
  Telephone: (732) 747-7800

  
	
   

  	
  Telecopy: (732) 747-6835

  

 

 

SCHEDULE A

 

Cash Collateral Accounts

 

A-1

 

SCHEDULE B

 

Commercial Tort Claims

 

B-1

 

SCHEDULE C

 

Actions Required to Perfect

 

	
  1.

  	
  With
  respect to each Loan Party organized under the laws of the state of Alabama
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Alabama Secretary of State.

  
	
   

  	
   

  
	
  2.

  	
  With
  respect to each Loan Party organized under the laws of the state of Arizona
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Arizona Secretary of State.

  
	
   

  	
   

  
	
  3.

  	
  With
  respect to each Loan Party organized under the laws of the state of
  California as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the California Secretary of State.

  
	
   

  	
   

  
	
  4.

  	
  With
  respect to each Loan Party organized under the laws of the state of
  Connecticut as identified on Schedule 1.1(C) of the Credit Agreement,
  the filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral the Connecticut Secretary of State.

  
	
   

  	
   

  
	
  5.

  	
  With
  respect to each Loan Party organized under the laws of the state of Delaware
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Delaware Secretary of State.

  
	
   

  	
   

  
	
  6.

  	
  With
  respect to each Loan Party organized under the laws of the District of
  Columbia as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the District of Columbia Recorder of Deeds.

  
	
   

  	
   

  
	
  7.

  	
  With
  respect to each Loan Party organized under the laws of the state of Florida
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Florida Secured Transaction Registry.

  
	
   

  	
   

  
	
  8.

  	
  With
  respect to each Loan Party organized under the laws of the state of Georgia
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Office of the Clerk of Superior Court of any County of
  Georgia.

  
	
   

  	
   

  
	
  9.

  	
  With
  respect to each Loan Party organized under the laws of the state of Illinois
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Illinois Secretary of State.

  
	
   

  	
   

  
	
  10.

  	
  With
  respect to each Loan Party organized under the laws of the state of Indiana
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Indiana Secretary of State.

  
	
   

  	
   

  
	
  11.

  	
  With
  respect to each Loan Party organized under the laws of the state of Kentucky
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Kentucky Secretary of State.

  

 

C-1

 

	
  12.

  	
  With
  respect to each Loan Party organized under the laws of the state of Maryland
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Maryland State Department of Assessments and Taxation.

  
	
   

  	
   

  
	
  13.

  	
  With
  respect to each Loan Party organized under the laws of the state of Michigan
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Michigan Secretary of State.

  
	
   

  	
   

  
	
  14.

  	
  With
  respect to each Loan Party organized under the laws of the state of Minnesota
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Minnesota Secretary of State.

  
	
   

  	
   

  
	
  15.

  	
  With
  respect to each Loan Party organized under the laws of the state of
  Mississippi as identified on Schedule 1.1(C) of the Credit Agreement,
  the filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the Mississippi Secretary of State.

  
	
   

  	
   

  
	
  16.

  	
  With
  respect to each Loan Party organized under the laws of the state of New
  Jersey as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the New Jersey Division of Commercial
  Recording.

  
	
   

  	
   

  
	
  17.

  	
  With
  respect to each Loan Party organized under the laws of the state of New York
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the New York Secretary of State.

  
	
   

  	
   

  
	
  18.

  	
  With
  respect to each Loan Party organized under the laws of the state of North
  Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the North Carolina Secretary of State.

  
	
   

  	
   

  
	
  19.

  	
  With
  respect to each Loan Party organized under the laws of the state of Ohio as
  identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
  Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Ohio Secretary of State.

  
	
   

  	
   

  
	
  20.

  	
  With
  respect to each Loan Party organized under the laws of the state of
  Pennsylvania as identified on Schedule 1.1(C) of the Credit Agreement,
  the filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the Pennsylvania Secretary of the
  Commonwealth.

  
	
   

  	
   

  
	
  21.

  	
  With
  respect to each Loan Party organized under the laws of the state of South
  Carolina as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the South Carolina Secretary of State.

  
	
   

  	
   

  
	
  22.

  	
  With
  respect to each Loan Party organized under the laws of the state of Tennessee
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Tennessee Secretary of State.

  
	
   

  	
   

  
	
  23.

  	
  With
  respect to each Loan Party organized under the laws of the state of Texas as
  identified on Schedule 1.1(C) of the Credit Agreement, the filing of a
  Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Texas Secretary of State.

  

 

C-2

 

	
  24.

  	
  With
  respect to each Loan Party organized under the laws of the state of Virginia
  as identified on Schedule 1.1(C) of the Credit Agreement, the filing of
  a Uniform Commercial Code Financing Statement that reasonably identifies the
  Collateral with the Virginia State Corporation Commission.

  
	
   

  	
   

  
	
  25.

  	
  With
  respect to each Loan Party organized under the laws of the state of West
  Virginia as identified on Schedule 1.1(C) of the Credit Agreement, the
  filing of a Uniform Commercial Code Financing Statement that reasonably
  identifies the Collateral with the West Virginia Secretary of State.

  
	
   

  	
   

  
	
  26.

  	
  With
  respect to the Securities Accounts and the Deposit Accounts, the bank with
  which such Securities Account and such Deposit Account are maintained
  agreeing that it will comply with instructions originated by the Agent
  directing disposition of the funds in such Securities Account and such
  Deposit Account without further consent of the relevant Grantor.

  
	
   

  	
   

  
	
  27.

  	
  With
  respect to each Grantor, the filing of a short form security agreement that
  reasonably identifies such Grantor’s registered and applied for Trademarks
  with the United States Patent and Trademark Office.

  
	
   

  	
   

  
	
  28.

  	
  With
  respect to each Grantor, the filing of a short form security agreement that
  reasonably identifies such Grantor’s Patents and Patent applications with the
  United States Patent and Trademark Office.

  
	
   

  	
   

  
	
  29.

  	
  With
  respect to each Grantor, the filing of a short form security agreement that
  reasonably identifies such Grantor’s registered and applied for Copyrights
  with the United States Copyright Office.

  

 

C-3

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