Document:

Exhibit 10.19

 

SELLING STOCKHOLDER AGREEMENT

 

THIS SELLING STOCKHOLDER AGREEMENT (“Agreement”) dated the date
set forth on the signature page hereof, is by and between Trans World
Corporation, a Nevada corporation (“TWC” or the “Company”), and
the undersigned (the “Selling Stockholder”) identified on the signature
page hereof. Each of TWC and the Selling Stockholder is a “party” to
this Agreement, and together, they are the “parties” hereto.

 

RECITALS:

 

1.     The
Company has agreed to register the shares of Company common stock, $0.001 par
value per share (the “Common Stock”), acquired by the Selling
Stockholder pursuant to that Subscription Agreement by and between the Company
and such Selling Stockholder dated on or about December 22 or 27, 2006 (as
applicable) (the “Subscription Agreement”).

 

2.     The
Company has also agreed, pursuant to a resolution of its Board of Directors, to
register certain shares of Common Stock to be acquired, or that were previously
acquired, in a private or public exchange of senior secured debt of the Company
for Common Stock and through the exercise of warrants by certain investors in
the Company’s 12% Senior Secured Notes in 1998 and 1999, including Value
Partners, Ltd., one of the Selling Stockholders and an affiliate of the Company,
and others.

 

3.     The
Company intends to file a Form SB-2 registration statement (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”)
to register such shares (the “Registrable Securities”) under the
Securities Act of 1933, as amended (the “Securities Act”), and will
qualify the resale of the Registrable Securities in the United States under the
Blue Sky laws of certain states.

 

4.     In
order to accomplish the registration and qualification of the Registrable
Securities, the parties hereto desire to agree to certain terms and conditions
regarding the registration, qualification and resale of the Registrable
Securities as set forth herein.

 

AGREEMENT:

 

Therefore, in consideration of the foregoing, the mutual promises made
herein and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the undersigned parties hereto hereby agree as follows:

 

1.     Authorization
and Appointment. The undersigned Selling
Stockholder hereby appoints the Company as its exclusive agent to register with
the SEC and to qualify in certain states all of the shares of Common Stock held
by it as set forth on the signature page hereof (i.e., the Registrable
Securities), and the Company hereby accepts such appointment subject to the
terms and conditions of this Agreement. For purposes of clarification, the
Company will undertake to register and qualify such shares, but will not take
any actions that would result in a determination that the Company is acting as
an underwriter, placement agent, selling agent, salesman, broker or dealer or
otherwise to facilitate the resale of such shares. The Company

 

 

shall have no obligation to
sell on behalf of the Selling Stockholder, or to purchase from the Selling
Stockholder, any of the Registrable Securities.

 

2.     Obligations
of the Company. The Company hereby agrees to:

 

(a)   Prepare
and file with the SEC a Registration Statement, a draft copy of which is
attached hereto as Exhibit A, with respect to such Registrable
Securities and use all reasonable efforts to cause such Registration Statement
to become effective, and, upon the request of the Selling Stockholders who hold
a majority of the Registrable Securities registered thereunder (the “Majority
Holders”), keep such Registration Statement effective until the earlier of
December 31, 2007 or until all of the Selling Stockholders have either
completed the distribution related thereto, or may sell all of their shares
under SEC Rule 144 (or any similar or successor rule) within a three (3) month
period. The Company shall not be required to file, cause to become effective or
maintain the effectiveness of any registration statement that contemplates a
distribution of securities on a delayed or continuous basis pursuant to Rule
415 under the Securities Act after December 31, 2007.

 

(b)   Prepare
and file with the SEC such amendments and supplements to such Registration
Statement and the prospectus used in connection with such Registration
Statement as it may be amended or supplemented (the “Prospectus”) as may
be necessary to comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such Registration Statement for
the period set forth in paragraph (a) above.

 

(c)   Furnish
to the Selling Stockholder such numbers of copies of a final Prospectus, in
conformity with the requirements of the Securities Act, and such other
documents as it may reasonably request in order to facilitate the disposition
of Registrable Securities owned by such Selling Stockholder.

 

(d)   Use
its reasonable efforts to qualify the Selling Stockholders’ Registrable
Securities covered by such Registration Statement under such other securities
or Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Selling Stockholder in writing; provided that the Company shall not be required
in connection therewith or as a condition thereto to qualify to do business,
pay taxes or to file a general consent to service of process in any such states
or jurisdictions.

 

(e)   Notify
the Selling Stockholder of Registrable Securities covered by such Registration
Statement at any time when a Prospectus relating thereto is required to be
delivered under the Securities Act of the happening of any event as a result of
which the Prospectus included in such Registration Statement, as then in
effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing.

 

(f)    Upon
the Company being notified in writing by the Selling Stockholder that any
material arrangement has been entered into with a broker-dealer for the sale of
the Registrable Securities through a block trade, special offering, exchange distribution
or secondary

 

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distribution or a purchase by a
broker or dealer, a supplement to the Prospectus will be filed, if required,
pursuant to Rule 424(b) under the Securities Act, disclosing (to the extent of
the Company’s knowledge) (i) the name of such Selling Stockholder and of the
participating broker-dealer(s), (ii) the number of shares involved, (iii) the
price at which such shares of the Registrable Securities were sold, (iv) the
commissions paid or discounts or concessions allowed to such broker-dealer(s),
where applicable, (v) that such broker-dealer(s) did not conduct any
investigation to verify the information set out or incorporated by reference in
the Prospectus, and (vi) other facts material to the transaction.

 

(g)   Upon
the Company being notified in writing by a Selling Stockholder that one of its
donees or pledgees intends to sell more than five hundred (500) shares of the
Registrable Securities, a supplement to the Prospectus will be filed if then
required in accordance with applicable securities law.

 

(h)   Upon
surrender of the original stock certificate(s) duly endorsed for transfer or
accompanied by a properly completed stock power to the Company’s transfer agent
together with instructions regarding re-issuance as a result of a sale of the
Registrable Securities pursuant to the Registration Statement, the Company will
issue new, unlegended shares to the new holder of record, as permitted by
applicable securities laws, and will issue to the Selling Stockholder any
remainder shares containing the appropriate restrictive legends.

 

3.     Exceptions
to the Company’s Obligations.

 

The Company shall not be required to effect a registration of the
Registrable Securities:

 

(a)   after
the Registration Statement has been declared or ordered effective by the SEC;

 

(b)   if
within thirty (30) days after the execution of this Agreement by the last
Selling Stockholder to sign, the Company gives notice to the Selling
Stockholder of the Company’s intention to make a public offering within ninety
(90) days;

 

(c)   if
the Company shall furnish to the Selling Stockholder a certificate, signed by
the Company’s Chief Executive Officer, stating that in the good faith judgment
of the Board of Directors of the Company it would be seriously detrimental to
the Company and its shareholders for such Registration Statement to be effected
at such time, in which event the Company shall have the right to defer such
filing for a period of not more than one hundred twenty (120) days after the
date of such notice; provided that such right to delay the filing of the
Registration Statement shall be exercised by the Company not more than twice in
any twelve (12) month period; or,

 

(d)   if
the Selling Stockholder fails to reasonably and timely cooperate with the
Company by failing to perform its obligations hereunder, in which case the
Company shall have the right and authority to exclude the Selling Stockholder
and its shares from the Registration Statement in the Company’s discretion.

 

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4.     Expenses
of Registration.  Except
as specifically provided herein, all Registration Expenses incurred in
connection with any registration, qualification or compliance pursuant to
Section 2 hereof shall be borne by the Company. For purposes of this Agreement,
“Registration Expenses” include, but are not limited to, all
registration and filing fees, printing expense, fees and disbursements of
counsel for the Company, Blue Sky fees and expenses, but do not include Selling
Expenses defined below. Notwithstanding the first sentence of this Section, all
legal, accounting or expert’s fees and expenses incurred for the benefit of the
Selling Stockholder and underwriting discounts and/or selling fees or expenses applicable
to the sale of the Registrable Securities charged by underwriters, brokers,
dealers, salesmen or agents (“Selling Expenses”) incurred in connection
with the registration hereunder, shall be borne by the holders of the
securities so registered. In addition, the Company shall not be required to pay
for, and shall be entitled to a pro rata reimbursement of, its Registration
Expenses of any registration proceeding begun pursuant to Section 2 and such
Selling Stockholder’s right to have its shares registered by the Company
hereunder shall be forfeited, where the Registrable Securities are subsequently
withdrawn from the Registration Statement by the Selling Stockholder, unless
the withdrawal is based upon material adverse information concerning the Company
that was not publicly available at the time of the execution of this Agreement
and prior to the date the Registration Statement is declared or ordered
effective by the SEC. If the Selling Stockholders are required to pay or
reimburse the Registration Expenses, such expenses shall be borne by the
holders of Registrable Securities in proportion to the number of shares for
which registration was requested hereunder.

 

5.     Plan
of Distribution.  (a)  Only after the Registration Statement is
declared or ordered effective by the SEC, the Selling Stockholder may, from
time to time, sell any or all of its Registrable Securities on any stock
exchange, market or trading facility on which shares of Company Common Stock
are traded or in private transactions. These sales may be at fixed or
negotiated prices. The Selling Stockholder may use any one or more of the
following methods when selling the Registrable Securities:  (i) ordinary brokerage transactions and
transactions in which the broker-dealer solicits investors; (ii) block trades
in which the broker-dealer will attempt to sell the shares as agent but may
position and resell a portion of the block as principal to facilitate the
transaction; (iii) purchases by a broker-dealer as principal and resale by the
broker-dealer for its account; (iv) an exchange distribution in accordance with
the rules of the applicable exchange; (v) privately negotiated transactions;
(vi) to cover short sales made after the date that the Registration Statement
is declared or ordered effective by the SEC; (vii) broker-dealers may agree
with the Selling Stockholders to sell a specified number of the Registrable
Securities at a stipulated price per share; (viii) a combination of any such
methods of sale; and (ix) any other method permitted pursuant to applicable
law.

 

(b)   The
Selling Stockholder may also sell shares under Rule 144 under the Securities
Act, if available, rather than under the Prospectus.

 

(c)   The
Selling Stockholder hereby acknowledges receipt of the Company’s Insider
Trading Policy, a copy of which is attached hereto as Exhibit B and
agrees that no sale of any Registrable Securities will be made in violation of
such policy. The Selling Stockholder hereby agrees to report each sale of any
Registrable Securities to the Company within twenty-four (24) hours of receipt
of the trade confirmation and to comply with all of the reporting

 

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requirements of the Securities
Exchange Act of 1934, as amended, and the regulations and policies of the SEC
thereunder (the “Exchange Act”). The Company shall have no obligation or
liability to notice, remind, file or otherwise comply with the Exchange Act for
or on behalf of the Selling Stockholder.

 

(d)   The
Selling Stockholder acknowledges and agrees that it may not use shares
registered in the Registration Statement to cover short sales of Company Common
Stock made prior to the date on which the Registration Statement is declared or
ordered effective by the SEC.

 

(e)   The
Selling Stockholder acknowledges and agrees that if any Registrable Securities
are sold pursuant to the use of the Prospectus included in the Registration
Statement, that such Selling Stockholder will be subject to, and agrees to
comply with, the Prospectus delivery requirements of the Securities Act.

 

(f)    The
Selling Stockholder acknowledges and agrees to comply with all other applicable
provisions of the Securities Act and the Exchange Act and the rules and
regulations promulgated thereunder, including Regulation M, as applicable to the
Selling Stockholder in connection with its resale of the Registrable Securities
under the Registration Statement.

 

(g)   Broker-dealers
engaged by the Selling Stockholder may arrange for other brokers or dealers to
participate in sales of the Registrable Securities. Broker-dealers may receive
commissions or discounts from the Selling Stockholder (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated by and between the broker-dealer(s) and the Selling Stockholder. The
Selling Stockholder agrees that these commissions and discounts will not exceed
what is customary in the types of transactions involved.

 

(h)   The
Selling Stockholder agrees to promptly notify the Company in writing if any
material arrangement has been entered into with a broker-dealer for the sale of
the Company’s Registrable Securities through a block trade, special offering,
exchange distribution or secondary distribution or a purchase by a broker or
dealer, which notice will disclose, at a minimum, (i) the name of each such
Selling Stockholder and of the participating broker-dealer(s), (ii) the number
of shares involved, (iii) the price at which such shares of Registrable
Securities were sold, (iv) the commissions paid or discounts or concessions
allowed to such broker-dealer(s), where applicable, (v) that such
broker-dealer(s) did not conduct any investigation to verify the information
set out or incorporated by reference in the Company’s Prospectus, and (vi)
other facts material to the transaction.

 

(i)    The
Selling Stockholder agrees to promptly notify the Company in writing that a
donee or pledgee intends to sell more than five hundred (500) shares of Common
Stock, which notice will disclose, at a minimum, the identity, contact information
and tax identification number, if known or reasonably obtainable, of the donee
or pledgee and the items set forth in Section 5(h)(i) through (iii), above,
inclusive.

 

6.     Delay
of Registration; Furnishing Information. 
(a)  The
Selling Stockholder shall not have any right to obtain or seek an injunction
restraining or otherwise delaying the

 

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Registration Statement or any
Prospectus as the result of any controversy that might arise with respect to the
interpretation or implementation of this Agreement.

 

(b)   It
shall be a condition precedent to the obligations of the Company to take any
action pursuant to Section 2 hereof that the Selling Stockholder shall promptly
furnish to the Company upon request such information regarding itself, the
Registrable Securities held by it and the intended method of disposition of
such securities as the Company shall, in its judgment, determine to be required
to effect the registration of their Registrable Securities.

 

7.     Indemnification.
 In the event
any Registrable Securities are included in a Registration Statement under
Section 2:

 

(a)   to
the extent permitted by law, the Company will indemnify and hold harmless the
Selling Stockholder, the partners, officers and directors of the Selling
Stockholder, any underwriter (as defined in the Securities Act) for such
Selling Stockholder and each person, if any, who controls such Selling
Stockholder or underwriter within the meaning of the Securities Act or the
Exchange Act, against any losses, claims, damages, or liabilities (or actions
in respect thereof) that arise out of or are based upon any of the following
statements, omissions or violations (collectively, a “Violation”) by the
Company:  (i) any untrue statement or
alleged untrue statement of a material fact contained in such Registration
Statement, including any final prospectus contained therein or any amendments
or supplements thereto, (ii) the omission or alleged omission to state therein
a material act required to be stated therein, or necessary to make the
statements therein not misleading, or (iii) any violation or alleged violation
by the Company of the Securities Act, the Exchange Act, any state securities
law or any rule or regulation promulgated under the Securities Act, the
Exchange Act or any state securities law in connection with the offering
covered by such Registration Statement; and the Company will pay to such
Selling Stockholder, partner, officer, director, underwriter or controlling
person for any documented legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability or action if it is judicially determined that there was such a
Violation; provided however, that the indemnity agreement contained in this
Section 7(a) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
written consent of the Company, which consent shall not be unreasonably withheld,
nor shall the Company be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with written
information (including, but not limited to, this Agreement) furnished expressly
for use in connection with such Registration Statement by such Selling
Stockholder, partner, officer, director, underwriter or controlling person of
such Selling Stockholder.

 

(b)   To
the extent permitted by law, the Selling Stockholder will, if Registrable
Securities held by such Selling Stockholder are included in the securities as
to which such registration, qualification or compliance is being effected,
indemnify and hold harmless the Company, each of its directors, its officers
and each person, if any, who controls the Company within the meaning of the
Securities Act, any underwriter and any other Selling Stockholder selling
securities under such Registration Statement or any of such other Selling
Stockholder’s partners, directors or officers or any person who controls such
Selling Stockholder, against any

 

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losses, claims, damages or
liabilities (joint or several) to which the Company or any such director,
officer, controlling person, underwriter or other such Selling Stockholder, or
partner, director, officer or controlling person of such other Selling
Stockholder may become subject under the Securities Act, the Exchange Act or
other federal or state law, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Selling Stockholder to be used in connection with such
registration (including but not limited to, information included in this
Agreement); and each such Selling Stockholder will pay any documented legal or
other expenses reasonably incurred by the Company or any such director,
officer, controlling person, underwriter or other Selling Stockholder in
connection with investigating or defending any such loss, claim, damage,
liability or action if it is judicially determined that there was such a
Violation; provided, however, that the indemnity agreement contained in this
Section 7(b) shall not apply to amounts paid in settlement of any such loss,
claim, damage, liability or action if such settlement is effected without the
consent of the indemnifying Selling Stockholder, which consent shall not be
unreasonably withheld; provided further, that in no event shall any indemnity
under this Section 7(b) exceed the proceeds from the offering received or to be
received by such Selling Stockholder.

 

(c)   Promptly
after receipt by an indemnified party under this Section 7 of notice of the
commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 7, deliver to the indemnifying party
a written notice of the commencement thereof and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually and reasonably satisfactory to the
parties; provided, however, that an indemnified party shall have the right to
retain its own counsel, with the fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate based on an opinion
of counsel that there are actual or potential differing interests between such
indemnified party and any other party represented by such counsel in such
proceeding, which would result in a conflict of interests. The failure to
deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action, if materially prejudicial to its ability
to defend such action, shall relieve such indemnifying party of any liability
to the indemnified party under this Section 7.

 

(d)   The
obligations of the Company and the Selling Stockholder under this Section 7
shall survive completion of any offering of Registrable Securities in a
Registration Statement and the termination of this Agreement. No indemnifying
party, in the defense of any such claim or litigation, shall, except with the
consent of each indemnified party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

 

8.     Assignment
of Registration Rights.  The
rights to have the Registrable Securities registered pursuant to this Agreement
may be assigned by a Selling Stockholder only to a

 

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transferee or assignee of
Registrable Securities which (a) is a subsidiary, parent, general partner,
limited partner, or member of a Selling Stockholder, or (b) is a member of the
Selling Stockholder’s immediate family or a trust for the benefit of an
individual Selling Stockholder or member of his/her immediate family; provided,
however, (i) the transferor shall, within ten (10) days after such transfer,
furnish to the Company written notice of the name and address of such
transferee or assignee and identify the securities with respect to which such
registration rights are being assigned and (ii) such transferee shall agree in
writing to be subject to all restrictions set forth in this Agreement. Any such
assignment must comply with the Subscription Agreement and applicable law and
regulation.

 

9.     “Market
Stand-Off” Agreement; Agreement to Furnish Information.  The Selling
Stockholder hereby agrees that such Selling Stockholder shall not sell,
transfer, make any short sale of, grant an option for the purchase of, or enter
into any hedging or similar transaction with the same economic effect as a
sale, of any Common Stock (or other equity securities) of the Company held by
such Selling Stockholder (other than those included, and pursuant to the plan
of distribution described, in the Registration Statement) for a period of
ninety (90) days following the effective date of a registration statement
(other than the Registration Statement) of the Company filed under the
Securities Act in connection with any Company offering of securities; provided
that all officers and directors of the Company enter into similar agreements. The
Company may impose stop-transfer instructions with respect to the shares of
Common Stock (or other securities) subject to the foregoing restriction until the
end of said ninety (90) day period.

 

10.  Rule
144 Reporting.  With
a view of making available to the Selling Stockholder the benefits of certain
rules and regulations of the SEC which may permit the sale of the Registrable
Securities to the public without registration, the Company agrees to use its
reasonable efforts to:  (a) make and keep
public information available, as those terms are understood and defined in SEC
Rule 144 or any similar rule promulgated under the Securities Act, during the
term of this Agreement; (b) file with the SEC, in a timely manner, all reports
and other documents required of the Company under the Exchange Act; and (c)
furnish to a Selling Stockholder promptly upon its written request:  a written statement by the Company as to its
compliance with the reporting requirements of said Rule 144 of the Securities
Act, and of the Exchange Act; a copy of the most recent annual or quarterly
report of the Company, and a copy of such other reports and documents as a
Selling Stockholder may reasonably request in writing in availing itself of any
rule or regulation of the SEC allowing the Selling Stockholder to sell any such
securities without registration. The Selling Stockholder shall promptly report
all such sales to the Company in writing, stating the date and method of sale,
the sales price and any brokerage commission paid.

 

11.  Representations
and Warranties of the Selling Stockholder.  The Selling
Stockholder severally represents and warrants to the Company as follows:

 

(a)   The
Selling Stockholder: (i) if a natural person, represents that the undersigned
has reached the age of 21 and has the full legal power and authority to execute
and deliver this Agreement and all other related agreements, instruments,
documents or certificates and to perform the provisions hereof and thereof and
to sell, dispose of, convey, transfer and deliver the

 

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Registrable Securities; this
Agreement has been duly executed and delivered on behalf of the undersigned and
constitutes a legal, valid and binding obligation of such person; (ii) if a
corporation, partnership, limited liability company, association, joint stock
company, trust, unincorporated organization or other entity, represents that
such entity is duly organized and in good standing in the state of its
organization and the state(s) where it does business; the consummation of the
transactions contemplated hereby are authorized by, and will not result in a
violation of state law or its charter or other organizational documents; such
entity has full legal power and authority to execute and deliver this Agreement
and all other related agreements, instruments, documents or certificates and to
perform the provisions hereof and thereof and to sell, dispose of, convey,
transfer and deliver the Registrable Securities; the execution and delivery of
this Agreement has been duly authorized by all necessary action; this Agreement
has been duly executed and delivered on behalf of such entity and constitutes a
legal, valid and binding obligation of such entity; or (iii) if executing this
Agreement in a representative or fiduciary capacity, such representative or
fiduciary represents that it is properly appointed or elected and has not been
terminated or replaced, the consummation of the transactions contemplated
hereby is authorized by, and will not result in a violation of, state law or
its organization documents; it has full legal power and authority to execute
and deliver this Agreement and all other related agreements, instruments,
documents or certificates in such capacity and on behalf of the selling
individual, ward, partnership, trust, estate, corporation, or limited liability
company or other individual or entity for whom the undersigned is executing
this Agreement, and such individual or entity has the full legal power and
authority to perform this Agreement and to sell, dispose of, convey, transfer
and deliver the Registrable Securities; and represents that this Agreement and
all other related agreements, instruments, documents or certificates have been
duly authorized by all necessary action, have been duly executed and delivered
on behalf of such entity and constitutes a legal, valid and binding obligation
of such individual or entity; the consummation of the transactions contemplated
hereby are authorized by, and will not result in a violation of, state law or
its organization or appointive documents.

 

(b)   The
execution and delivery of this Agreement will not violate or be in conflict
with any order, judgment, injunction, agreement or controlling document to
which the undersigned is a party to or by which it is bound or which affects
its ability to freely sell, dispose of, convey or transfer the Registrable
Securities free and clear of any liens, encumbrances, equities, claims,
charges, court orders or plans, insolvency, bankruptcy or condemnation
proceedings, options, conditional sales agreements, restructuring, litigation,
arbitration, covenants, or title defects of any kind (“Liens”).

 

(c)   Such
Selling Stockholder has as of the date hereof, and on the date that the
Registration Statement is declared or ordered effective by the SEC will have,
good, marketable and valid title to the Registrable Securities which may be
sold by such Selling Stockholder, free and clear of any Liens, which sale will
be in accordance with the terms and conditions of the Registration Statement.

 

(d)   Such
Selling Stockholder has not taken and will not take, directly or indirectly,
any action designed to, or which has constituted, or might reasonably be
expected to cause or result in stabilization or manipulation of the price of
the Common Stock of the Company.

 

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(e)   Neither
the Selling Stockholder nor any of its affiliates or associates (except for
Value Partners, Ltd.): (i) is an officer, director or employee of the Company
or any subsidiary thereof; (ii) except for the Subscription Agreement and this
Agreement, had since January 1, 2003 or presently have any interest in any
transaction or proposed transaction with the Company; (iii) except for the
Subscription Agreement and this Agreement, is a party to any contract,
agreement, arrangement or understanding with the Company that was entered into
on or after January 1, 2003; or (iv) is a party to, or has an interest in, any
threatened or pending legal proceeding where the Company is also a party or
which is, or which may be considered to be, adverse to the Company. For
purposes of this Agreement:  (x) an “affiliate”
of a specified person is a person that directly, or through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the person specified; and (y) the term “associate” means (i) any corporation or
organization (except the Company) of which the Selling Stockholder is an
officer or partner, of which the Selling Stockholder is, directly or
indirectly, the beneficial owner of 10 percent or more of any class of equity
securities of the Company, (ii) any trust or other estate in which the Selling
Stockholder has a beneficial interest or as to which the Selling Stockholder
serves as trustee or in a similar fiduciary capacity, or (iii) the Selling
Stockholder’s spouse, or any of his/her relatives or relative of his/her spouse
who shares Selling Stockholder’s home or who is a director or officer of the
Company.

 

(f)    The
Selling Stockholder, or any affiliate or associate thereof, has no family
relationship (including a relationship by blood, marriage or adoption) with any
director, officer or 10% or greater stockholder of the Company.

 

(g)   The
Selling Stockholder is not, directly or indirectly, or is not an affiliate or
associate of, any member firm of the National Association of Securities
Dealers, Inc.

 

(h)   The
Selling Stockholder has timely complied with its reporting obligations under
the Exchange Act prior to the date of this Agreement.

 

(i)    The
Selling Stockholder has read and approved the sections in the Company’s
Prospectus (attached hereto as part of Exhibit A) entitled “Selling
Stockholders” and “Plan of Distribution” and agrees that the information
contained in those sections of the Prospectus are based on information provided
to the Company by the Selling Stockholder (in the Section “Selling
Stockholders,” only as it pertains to the undersigned Selling Stockholder) and
is true and correct as of the date of this Agreement.

 

(j)    The
Selling Stockholder will immediately notify the Company in writing if any of
its representations, warranties, covenants or agreements herein or if any of
the disclosure in the Prospectus under the sections “Selling Shareholders” or “Plan
of Distribution” becomes materially false, or if it discovers that it has made
an omission of a material fact herein.

 

(k)   None
of the Registrable Securities is subject to any pledge, hypothecation,
stockholder’s agreement or voting trust agreement, understanding or
arrangement, whether written or oral, indicating, without limitation, any
mortgage, indenture, note, guarantee, lease, license, contract, deed of trust,
proxy, purchase, sale or other agreement relating to the

 

10

 

Registrable Securities,
including any agreement relating to the voting or disposition of the
Registrable Securities.

 

(l)    No
filing, notice, consent, approval, acquiescence or non-disapproval is required
to be made to, or obtained from, any third party or governmental authority in
order to effectuate the sale of the Registrable Securities pursuant to this
Agreement, except for the SEC and state securities commissions as otherwise
described herein.

 

(m)  There
are no claims, actions, suits, proceedings, arbitrations, investigations or
inquiries pending or, to the best knowledge of the Selling Stockholder,
threatened, at law or in equity or before or by any federal, state, local, foreign
or other governmental department, agency, arbitrator, court, instrumentality or
authority by or against the Selling Stockholder which could restrain or
prohibit or otherwise adversely affect the Registration Statement, the sale by
the Selling Stockholder of the Registrable Securities or the consummation of
the transactions contemplated hereby.

 

(n)   As
of the date hereof, the Selling Stockholder, except for the inclusion of the
Registrable Securities in the Registration Statement, has no agreement, arrangement
or understanding for the sale or disposition of the Registrable Securities. The
Selling Stockholder is the registered owner of the Registrable Securities.

 

(n)   During
the last five years, the Selling Stockholder has not been:  (i) convicted or nor pleaded nolo contendere to any felony or misdemeanor in connection
with the purchase or sale of any security or in connection with the making of
any false filing with the SEC or any state securities administrator, or of any
felony involving fraud or deceit, including but not limited to, forgery,
embezzlement, obtaining money under false pretenses, larceny, conspiracy to
defraud or theft; (ii) subject to any order, judgment, or decree of any court
of competent jurisdiction temporarily or preliminarily restraining or
enjoining, or is subject to any order, judgment, or decree of any court of
competent jurisdiction, permanently restraining or enjoining that person from
engaging in or continuing any conduct or practice in connection with the
purchase or sale of any security or in connection with the making of any false
filing with the SEC or any state securities administrator; (iii) subject to a
United States Postal Service false representation order; or, (iv) subject to
any state administrative order entered by a state securities administrator in
which fraud or deceit was found.

 

12.  Termination
of Covenants.  All
covenants of the Company to register the Registrable Securities contained in
this Agreement shall expire and terminate as to each Selling Stockholder upon
the earlier of (a) December 31, 2007, or (b) upon (i) the sale, lease,
liquidation, or other disposition of all or substantially all of the assets of
the Company, or (ii) an acquisition of the Company by another corporation or
entity by consolidation, merger or other reorganization in which the holders of
the Company’s outstanding voting stock immediately prior to such transaction
own, immediately after such transaction, securities representing less than
fifty percent (50%) of the voting power of the corporation or other entity
surviving such transaction, provided that this Section 12 shall not apply to
merger effected exclusively for the purpose of changing the domicile of the
Company (a “Change in Control”).

 

11

 

13.  Governing
Law.  This
Agreement shall be governed by, and be the construed under, the laws of the
State of New York as applied to agreements among New York residents entered
into and to be performed entirely within New York.

 

14.  Survival.
 The
representations, warranties, covenants, and agreements made herein shall
survive any investigation made by any Selling Stockholder and the closing of
the transactions contemplated hereby. All statements as to factual matters
contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant hereto in connection with the transactions contemplated
hereby shall be deemed to be representations and warranties by the Company
hereunder solely as of the date of such certificate or instrument.

 

15.  Successors
and Assigns.  Except
as otherwise expressly provided herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the successors, assigns, heirs, executors,
and administrators of the parties hereto and shall inure to the benefit of and
be enforceable by each person who shall be a permitted holder of Registrable
Securities from time to time and shall not be affected by, and shall survive
the death, incapacity, liquidation or insolvency of the Selling Stockholder;
provided, however, that prior to the receipt by the Company of adequate written
notice of the transfer of any Registrable Securities specifying the full name
and address of the transferee, the Company may deem and treat the person listed
as the holder of such shares in its records as the absolute owner and holder of
such shares for all purposes, including the payment of dividends. This
Agreement, while made with a number of different Selling Stockholders, is
enforceable only by the Company and the undersigned and their respective
successors, assigns, heirs, executors and administrators, and no stockholder of
the Company who may be a “Selling Stockholder” under a separate Selling
Stockholder Agreement, or other party, is meant to be a third party beneficiary
of this or of any other Selling Stockholder Agreement to which it is not a
party.

 

16.  Waiver.
 In
consideration of the Company’s agreement to register the Registrable Securities
hereby, each Selling Stockholder hereby waives any claim it has, had or may
have against the Company or any of its directors, officers, employees, agents,
affiliates or associates relating to, arising from or in connection with the
Selling Stockholder’s purchase of Common Stock pursuant to the Subscription
Agreement.

 

17.  Entire
Agreement.  This
Agreement and the Exhibits hereto and the Prospectus constitute the full and
entire understanding and agreement between the parties hereto with regard to
the subject matter hereof and no party shall be liable or bound to any other in
any manner by any representations, warranties, covenants and agreements except
as specifically set forth herein and therein. The Selling Stockholder hereby
agrees that the Company and its counsel may rely on the representations,
warranties, covenants and agreements made by the Selling Stockholder hereby for
purposes of, inter alia, preparing and filing
the Registration Statement (including the Prospectus), the legal opinions
relating thereto and providing information to the SEC, state securities
commissions and other governmental agencies or courts. There is no requirement
for the terms and conditions of this Agreement to conform, in any respect, to
any other Selling Stockholder Agreement to which the Company may be a party. All
remedies, either under this Agreement, by law, or otherwise afforded to any
party, shall be cumulative and not alternative.

 

12

 

18.  Severability.
 In the event
one or more of the provisions of this Agreement should, for any reason, be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions of this
Agreement, and this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

 

19.  Amendment
and Waiver.  (a)
Except as otherwise expressly provided, this Agreement may be amended or
modified only upon the written consent of the Company and the Selling
Stockholder or the Majority Holders as defined in Section 2(a) above. If this
Agreement is amended by the Company and the Majority Holders, the Company shall
give to the Selling Stockholder prompt written notice of any such amendment.

 

(b)   It
is agreed that any waiver, permit, consent, or approval of any kind or
character by any party of any breach, default or noncompliance under the
Agreement or any waiver by such party of any provisions or conditions of this
Agreement must be in writing, signed by the Company and the Selling Stockholder
or the Majority Holders, and shall be effective only to the extent specifically
set forth in such writing. If any provision of this Agreement is waived, or a
waiver is approved, by the Majority Holders, the Company shall give to the
Selling Stockholder prompt written notice of such waiver.

 

20.  Delay
or Omissions.  The
Company shall not be liable in damages for any delay or default in performing
hereunder if such delay or default is caused by conditions beyond its control
including, but not limited to acts of nature; governmental delays,
restrictions, limitations or requests; terrorist acts; infrastructure (i.e.,
telecommunications, electrical, transportation or similar) damage or failure;
wars, insurrections and/or any other cause beyond the reasonable control of the
Company. It is agreed that no delay or omission to exercise any right, power,
or remedy accruing to any party, upon any breach, default or noncompliance of
the other party under this Agreement shall impair any such right, power, or
remedy, nor shall it be construed to be a waiver of any such breach, default or
noncompliance, or any acquiescence therein, or of any similar breach, default
or noncompliance thereafter occurring.

 

21.  Notice.
 All notices
required or permitted hereunder shall be in writing and shall be deemed
effectively given:  (a) upon personal
delivery to the party to be notified; (b) when sent by confirmed telex or
facsimile if sent during normal business hours of the recipient; if not, then
on the next business day; (c) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d)
one (1) day after deposit with a nationally recognized overnight courier,
specifying and paying for next day delivery, with written verification of
receipt. All communications shall be sent to the party to be notified at the
address as set forth on the signature pages hereof or at such other address as
such party may designate by ten (10) days advance written notice to the other
parties hereto. For purposes of this Agreement, a “business day” is any
day that the New York Stock Exchange is open for normal trading.

 

22.  Further
Assistance.  Each
Selling Stockholder agrees to execute and deliver such other agreements
documents, instruments and certificates as may be reasonably requested by the
Company which are consistent with the terms of this Agreement or which are
necessary to give further effect thereto. In addition, if requested by the
Company, each Selling Stockholder shall

 

13

 

provide, within five (5) days
of such request, such information as may be required by the Company in
connection with the completion of the public offering of the Registrable
Securities pursuant to the Registration Statement filed under the Securities
Act. Any failure to provide such assistance as requested by the Company will
permit the Company to exclude such Selling Stockholder’s Registrable Securities
from the Registration Statement.

 

23.  Attorneys’
Fees.  In
the event that any suit or action is instituted to enforce any provision in
this Agreement, the substantially prevailing party in such dispute shall be
entitled to recover from the non-prevailing party all fees, costs and expense
of enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable and documented fees
and expenses of attorneys and accountants, which shall include, without
limitation, all fees, costs and expenses of investigation, preparation,
settlement or appeal.

 

24.  Titles
and Subtitles.  The
titles of the sections of this Agreement are for convenience of reference only
and are not to be considered in construing this Agreement. This Agreement is
meant to be gender neutral and gender references should be interpreted as they
may apply to each Selling Stockholder.

 

25.  Counterparts.
 This Agreement
may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.

 

[Signatures Are to Be Affixed on Next Page.]

 

14

 

SIGNATURE PAGE

 

The parties have caused this Selling Stockholder Agreement to be duly
executed and delivered by the individual stockholder or by its duly authorized
officers or representatives as of the date and year set forth below as accepted
by the Company.

 

1. Signature and Selling Stockholder Information.

 

	
   

  	
  SELLING STOCKHOLDER

  
	
   

  	
   

  
	
   

  	
  Name of

  
	
   

  	
  Selling

  
	
   

  	
  Stockholder:

  	
   

  
	
   

  	
   

  	
  (Please Print)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Sign Here. If the
  Registrable Securities are held by more than one person or entity, all such
  persons or entities must sign. Please use multiple Signature Pages. For
  individuals in community property states, your spouse must sign a separate
  Signature Page even if the spouse is not a registered or beneficial owner).

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
   

  	
  Citizenship of

  
	
   

  	
  Selling

  
	
   

  	
  Stockholder

  
	
   

  	
  (If an Individual):

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
  Telephone No.:

  	
   

  
	
   

  	
   

  
	
   

  	
  Fax No.:

  	
   

  
	
   

  	
   

  
	
   

  	
  E-Mail Address:

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security or Tax ID No.:

  	
   

  
	
   

  	
   

  
	
   

  	
  State or Country of Organization:

  	
   

  
												

 

2. Multiple or Fiduciary Selling Stockholders Should Complete the
Information Below:

 

Please indicate how the Registrable
Securities are held [check appropriate box]:

 

	
  o

  	
  Tenants in Common

  	
  o

  	
  Joint Tenants With Right of Survivorship

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Names of Tenants)

  	
   

  	
   

  	
  (Names of
  Tenants)

  
	
   

  	
   

  	
   

  	
   

  
	
  o

  	
  Tenants by the Entireties

  	
  o

  	
  Uniform Gift/Transfers to Minor Act of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (State)

  
	
   

  	
   

  	
  (Names of Tenants)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
  Trust:

  	
   

  	
   

  	
  for

  	
   

  
	
   

  	
   

  	
  (Name/Date of Trust Agreement)

  	
   

  	
   

  	
  (Name of Minor(s))

  
	
   

  	
   

  	
   

  	
   

  
	
  o

  	
  IRA

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name/Date)

  	
   

  	
   

  
											

 

 

	
  3.
  Number of Shares of Common Stock to be Registered:

  	
   

  
	
   

  
	
  4. List the Stock Certificate Numbers:

  	
   

  
	
   

  
	
  5. List States Where Stock is Intended to be Sold (If unknown, so
  state):

  	
   

  
				

 

 

Accepted on the          
day of                                        
2006:

 

 

	
   

  	
  COMPANY:

  	
  TRANS WORLD CORPORATION

  
	
   

  	
   

  	
  545 Fifth Avenue

  
	
   

  	
   

  	
  Suite 940

  
	
   

  	
   

  	
  New York, New York 10017

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

EXHIBIT A

 

Draft of Registration Statement

 

 

EXHIBIT B

 

Trans World Corporation

 

Insider Trading Policy

 

 

Objective:

 

To
outline the policy and procedures governing trading of the Company’s stock by
Insiders, in compliance with the SEC Exchange Act, Rule 10b.5.

 

Definitions:

 

(a) Blackout Periods.

 

The
four Blackout Periods begin on March 31st, June 30th, September 30th and
December 31st of each year, and end when two full NASDAQ trading days (48-hour
rule) have passed after
the Company’s announcement of results for the preceding fiscal period.

 

(b) Insiders

 

“Insiders”
are (i) members of TWC’s Board of Directors, corporate officers and employees;
(ii) TWC consultants and other persons associated with the Company and its
subsidiaries, including distributors, sales agents and joint venture partners,
who receive or have access to the Company’s Material Non-Public Information;
and (iii) household and immediate family members of those listed in (i) and
(ii).

 

(c) Material Information

 

Information
is deemed to be material if there is a reasonable likelihood that it would be
considered important to an investor in making a decision regarding the purchase
or sale of securities. While it is not possible to define all categories of
material information, there are various categories of information that are
particularly sensitive and, as a general rule, should always be considered
material. Examples of such information include:

 

•                  Financial results

•                  Projections of future earnings or losses

•                  News of a pending or proposed merger

•                  Acquisitions/Divestitures

•                  Impending bankruptcy or financial liquidity
problems

•                  Gain or loss of a substantial customer or
supplier

•                  Changes in dividend policy

•                  New product announcements of a significant
nature

•                  Significant pricing changes

•                  Stock splits

•                  New equity or debt offerings

•                  Significant litigation exposure due to actual
or threatened litigation

•                  Major changes in senior management.

 

Either
positive or negative information may be material.

 

(d) Non-Public Information

 

Non-Public
Information is information that has not been disclosed to the general public
and is not available to the general public. Non-Public Information will be
deemed to be public after two full trading days have passed on the NASDAQ
following the date when the information is disclosed publicly.

 

1

 

Statement of Policy:

 

I.                 No
Trading During Blackout Periods. No director, officer or employee may trade
in Company securities outside of the applicable trading windows or during any
special blackout periods that the Compliance Officer may designate. No
director, officer or employee may disclose to any outside third party that a
special blackout period has been designated.

 

II.             No
Trading During Trading Windows While in the Possession of Material Nonpublic
Information.
No employee, officer or director possessing material nonpublic information
concerning the Company may trade in Company securities even during applicable
trading windows. Persons possessing such information may trade during a
specified trading window only after the opening of trading on the third full trading
day (48-hour rule) following the Company’s widespread public release of the
information.

 

III.         No
Insider may disclose the Company’s Non-Public Information to Third
Parties.

 

IV.         No public disclosure by Insiders. No Insider who receives or has access to the
Company’s Material Non-Public Information may comment on stock movement or
rumors of other corporate developments that are of possible significance to the
investing public, unless specifically authorized by the Compliance Officer in
each instance.

 

2Exhibit
10.1

 

$1,500,000,000 REVOLVING CREDIT FACILITY

SIXTH AMENDED AND RESTATED CREDIT AGREEMENT

 

by
and among

 

K.
HOVNANIAN ENTERPRISES, INC.

(as the Borrower)

 

HOVNANIAN
ENTERPRISES, INC.

(as a Guarantor)

 

and

 

THE
LENDERS PARTY HERETO

 

and

 

PNC
BANK, NATIONAL ASSOCIATION, as Administrative Agent,

 

Bank
of America, N.A.

 

and

 

Wachovia
Bank, National Association,

 

as

 

Syndication
Agents

 

and

 

BANC
OF AMERICA SECURITIES LLC

 

and

 

WACHOVIA
CAPITAL MARKETS, LLC,

 

as

 

Joint
Lead Arrangers and Joint Book Runners

 

and

 

The
Royal Bank of Scotland plc

 

and

 

JPMorgan
Chase Bank, N.A.,

 

as

 

Documentation
Agents

 

Amended and
Restated May 31, 2006

 

 

TABLE OF CONTENTS

 

 

	
  SECTION

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  1.

  	
  CERTAIN DEFINITIONS

  	
  1

  
	
  1.1

  	
  Certain Definitions.

  	
  1

  
	
  1.2

  	
  Construction.

  	
  24

  
	
   

  	
  1.2.1.

  	
  Number; Inclusion

  	
  24

  
	
   

  	
  1.2.2.

  	
  Determination

  	
  24

  
	
   

  	
  1.2.3.

  	
  Agent’s Discretion and
  Consent

  	
  24

  
	
   

  	
  1.2.4.

  	
  Documents Taken as a Whole

  	
  24

  
	
   

  	
  1.2.5.

  	
  Headings

  	
  25

  
	
   

  	
  1.2.6.

  	
  Implied References to this
  Agreement

  	
  25

  
	
   

  	
  1.2.7.

  	
  Persons

  	
  25

  
	
   

  	
  1.2.8.

  	
  Modifications to Documents

  	
  25

  
	
   

  	
  1.2.9.

  	
  From, To and Through

  	
  25

  
	
   

  	
  1.2.10.

  	
  Shall; Will

  	
  25

  
	
  1.3

  	
  Accounting Principles

  	
  25

  
	
   

  	
   

  	
   

  
	
  2.

  	
  REVOLVING CREDIT AND SWING
  LOAN FACILITIES

  	
  26

  
	
  2.1

  	
  Revolving Credit
  Commitments

  	
  26

  
	
   

  	
  2.1.1.

  	
  Revolving Credit Loans

  	
  26

  
	
   

  	
  2.1.2.

  	
  Swing Loan Commitment

  	
  26

  
	
   

  	
  2.1.3

  	
  Voluntary Reduction of
  Commitment

  	
  27

  
	
  2.2

  	
  Nature of Lenders’
  Obligations with Respect to Revolving Credit Loans

  	
  27

  
	
  2.4

  	
  Revolving Credit Loan
  Requests; Swing Loan Requests

  	
  28

  
	
   

  	
  2.4.1.

  	
  Revolving Credit Loan
  Requests

  	
  28

  
	
   

  	
  2.4.2.

  	
  Swing Loan Requests

  	
  28

  
	
  2.5

  	
  Making Revolving Credit
  Loans and Swing Loans

  	
  29

  
	
   

  	
  2.5.1.

  	
  Generally

  	
  29

  
	
   

  	
  2.5.2.

  	
  Making Swing Loans

  	
  29

  
	
  2.6

  	
  Swing Loan Note

  	
  29

  
	
  2.7

  	
  Use of Proceeds

  	
  29

  
	
  2.8

  	
  Borrowings to Repay Swing
  Loans

  	
  30

  
	
  2.9

  	
  Letter of Credit
  Subfacility

  	
  30

  
	
   

  	
  2.9.1.

  	
  Issuance of Letters of
  Credit

  	
  30

  
	
   

  	
  2.9.2.

  	
  Letter of Credit Fees

  	
  31

  
	
   

  	
  2.9.3.

  	
  Disbursements,
  Reimbursement

  	
  31

  
	
   

  	
  2.9.4.

  	
  Repayment of Participation
  Advances

  	
  32

  
	
   

  	
  2.9.5.

  	
  Documentation

  	
  33

  
	
   

  	
  2.9.6.

  	
  Determinations to Honor
  Drawing Requests

  	
  33

  
	
   

  	
  2.9.7.

  	
  Nature of Participation and
  Reimbursement Obligations

  	
  33

  
	
   

  	
  2.9.8.

  	
  Indemnity

  	
  34

  
	
   

  	
  2.9.9.

  	
  Liability for Acts and
  Omissions

  	
  35

  
	
   

  	
  2.9.10.

  	
  Sharing Letter of Credit
  Documentation

  	
  36

  
	
   

  	
  2.9.11.

  	
  Cash Collateral

  	
  36

  

 

i

 

	
  2.10

  	
  Extension by Lenders of
  the Expiration Date

  	
  36

  
	
   

  	
  2.10.1.

  	
  Requests; Approval by All
  Lenders

  	
  36

  
	
   

  	
  2.10.2.

  	
  Approval by 66-2/3%
  Lenders

  	
  36

  
	
  2.11

  	
  Designation of
  Subsidiaries and Release of Guarantors

  	
  37

  
	
   

  	
  2.11.1.

  	
  Release of Guarantors

  	
  37

  
	
   

  	
  2.11.2.

  	
  Designation of
  Non-Restricted Person

  	
  38

  
	
   

  	
  2.11.3.

  	
  Automatic Designation of
  Non-Restricted Person

  	
  38

  
	
   

  	
  2.11.4.

  	
  Designation of Restricted
  Subsidiary

  	
  39

  
	
  2.12

  	
  Increase in Commitments

  	
  39

  
	
   

  	
  2.12.1

  	
  Increasing Lenders and New
  Lenders

  	
  39

  
	
   

  	
  2.12.2

  	
  Treatment of Outstanding
  Loans and Letters of Credit

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  INTEREST RATES

  	
  41

  
	
  3.1

  	
  Interest Rate Options

  	
  41

  
	
   

  	
  3.1.1.

  	
  Revolving Credit Interest
  Rate Options

  	
  41

  
	
   

  	
  3.1.2.

  	
  Rate Quotations

  	
  41

  
	
  3.2

  	
  Interest Periods

  	
  42

  
	
  3.3

  	
  Interest After Default

  	
  42

  
	
   

  	
  3.3.1.

  	
  Default Rate

  	
  42

  
	
   

  	
  3.3.2.

  	
  Acknowledgment

  	
  42

  
	
  3.4

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

  	
  42

  
	
   

  	
  3.4.1.

  	
  Unascertainable

  	
  42

  
	
   

  	
  3.4.2.

  	
  Illegality; Increased
  Costs; Deposits Not Available

  	
  43

  
	
   

  	
  3.4.3.

  	
  Agent’s and Lender’s
  Rights

  	
  43

  
	
  3.5

  	
  Selection of Interest Rate
  Options

  	
  44

  
	
   

  	
   

  	
   

  
	
  4.

  	
  PAYMENTS

  	
  44

  
	
  4.1

  	
  Payments

  	
  44

  
	
  4.2

  	
  Pro Rata Treatment of
  Lenders

  	
  44

  
	
  4.3

  	
  Interest Payment Dates

  	
  45

  
	
  4.4

  	
  Voluntary Prepayments

  	
  45

  
	
   

  	
  4.4.1.

  	
  Right to Prepay

  	
  45

  
	
   

  	
  4.4.2.

  	
  Replacement of a Lender

  	
  46

  
	
   

  	
  4.4.3.

  	
  Change of Lending Office

  	
  47

  
	
  4.5

  	
  Mandatory Payments

  	
  47

  
	
  4.6

  	
  Additional Compensation in
  Certain Circumstances

  	
  47

  
	
   

  	
  4.6.1.

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

  	
  47

  
	
   

  	
  4.6.2.

  	
  Indemnity

  	
  48

  
	
  4.7

  	
  Notes

  	
  49

  
	
  4.8

  	
  Settlement Date Procedures

  	
  49

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
  49

  
	
  5.1

  	
  Representations and
  Warranties

  	
  49

  
	
   

  	
  5.1.1.

  	
  Organization and
  Qualification

  	
  50

  

 

ii

 

	
   

  	
  5.1.2.

  	
  Subsidiaries

  	
  50

  
	
   

  	
  5.1.3.

  	
  Power and Authority

  	
  50

  
	
   

  	
  5.1.4.

  	
  Validity and Binding
  Effect

  	
  50

  
	
   

  	
  5.1.5.

  	
  No Conflict

  	
  51

  
	
   

  	
  5.1.6.

  	
  Litigation

  	
  51

  
	
   

  	
  5.1.7.

  	
  Title to Properties

  	
  51

  
	
   

  	
  5.1.8.

  	
  Financial Statements

  	
  51

  
	
   

  	
  5.1.9.

  	
  Use of Proceeds; Margin
  Stock

  	
  52

  
	
   

  	
  5.1.10.

  	
  Full Disclosure

  	
  52

  
	
   

  	
  5.1.11.

  	
  Taxes

  	
  53

  
	
   

  	
  5.1.12.

  	
  Consents and Approvals

  	
  53

  
	
   

  	
  5.1.13.

  	
  No Event of Default;
  Compliance with Instruments

  	
  53

  
	
   

  	
  5.1.14.

  	
  Patents, Trademarks,
  Copyrights, Licenses, Etc.

  	
  53

  
	
   

  	
  5.1.15.

  	
  Insurance

  	
  54

  
	
   

  	
  5.1.16.

  	
  Compliance with Laws

  	
  54

  
	
   

  	
  5.1.17.

  	
  Burdensome Restrictions

  	
  54

  
	
   

  	
  5.1.18.

  	
  Investment Companies; Regulated
  Entities

  	
  54

  
	
   

  	
  5.1.19.

  	
  Plans and Benefit
  Arrangements

  	
  54

  
	
   

  	
  5.1.20.

  	
  Employment Matters

  	
  55

  
	
   

  	
  5.1.21.

  	
  Environmental Matters

  	
  55

  
	
   

  	
  5.1.22.

  	
  Senior Debt Status

  	
  56

  
	
  5.2

  	
  Continuation of
  Representations

  	
  56

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CONDITIONS OF LENDING AND
  ISSUANCE OF LETTERS OF CREDIT

  	
  56

  
	
  6.1

  	
  First Loans and Letters of
  Credit

  	
  56

  
	
   

  	
  6.1.1.

  	
  Officer’s Certificate

  	
  56

  
	
   

  	
  6.1.2.

  	
  Incumbency Certificate

  	
  57

  
	
   

  	
  6.1.3.

  	
  Delivery of Loan Documents

  	
  57

  
	
   

  	
  6.1.4.

  	
  Opinion of Counsel

  	
  57

  
	
   

  	
  6.1.5.

  	
  Legal Details

  	
  57

  
	
   

  	
  6.1.6.

  	
  Payment of Fees

  	
  58

  
	
   

  	
  6.1.7.

  	
  Consents

  	
  58

  
	
   

  	
  6.1.8.

  	
  Officer’s Certificate
  Regarding MACs

  	
  58

  
	
   

  	
  6.1.9.

  	
  No Actions or Proceedings

  	
  58

  
	
   

  	
  6.1.10

  	
  Lien Search

  	
  58

  
	
  6.2

  	
  Each Additional Loan or
  Letter of Credit

  	
  58

  
	
   

  	
   

  	
   

  
	
  7.

  	
  COVENANTS

  	
  59

  
	
  7.1

  	
  Affirmative Covenants

  	
  59

  
	
   

  	
  7.1.1.

  	
  Preservation of Existence,
  Etc.

  	
  59

  
	
   

  	
  7.1.2.

  	
  Payment of Liabilities,
  Including Taxes, Etc.

  	
  59

  
	
   

  	
  7.1.3.

  	
  Maintenance of Insurance

  	
  59

  
	
   

  	
  7.1.4.

  	
  Maintenance of Properties
  and Leases

  	
  60

  
	
   

  	
  7.1.5.

  	
  Maintenance of Patents,
  Trademarks, Etc.

  	
  60

  
	
   

  	
  7.1.6.

  	
  Visitation Rights

  	
  60

  
	
   

  	
  7.1.7.

  	
  Keeping of Records and
  Books of Account

  	
  60

  

 

iii

 

	
   

  	
  7.1.8.

  	
  Plans and Benefit
  Arrangements

  	
  60

  
	
   

  	
  7.1.9.

  	
  Compliance with Laws

  	
  61

  
	
   

  	
  7.1.10.

  	
  Use of Proceeds

  	
  61

  
	
   

  	
  7.1.11

  	
  Anti-Terrorism Laws

  	
  61

  
	
  7.2

  	
  Negative Covenants

  	
  61

  
	
   

  	
  7.2.1.

  	
  Indebtedness

  	
  61

  
	
   

  	
  7.2.2.

  	
  Liens

  	
  62

  
	
   

  	
  7.2.3.

  	
  Loans and Investments

  	
  62

  
	
   

  	
  7.2.4.

  	
  Liquidations, Mergers,
  Consolidations, Acquisitions

  	
  62

  
	
   

  	
  7.2.5.

  	
  Dispositions of Assets or
  Subsidiaries

  	
  63

  
	
   

  	
  7.2.6.

  	
  Restricted Payments;
  Restricted Investments; Investments in Related Businesses

  	
  64

  
	
   

  	
  7.2.7.

  	
  Subsidiaries, Partnerships
  and Joint Ventures

  	
  64

  
	
   

  	
  7.2.8.

  	
  Continuation of or Change
  in Business

  	
  65

  
	
   

  	
  7.2.9.

  	
  Plans and Benefit
  Arrangements

  	
  65

  
	
   

  	
  7.2.10.

  	
  Borrowing Base

  	
  65

  
	
   

  	
  7.2.11.

  	
  Minimum CTNW

  	
  65

  
	
   

  	
  7.2.12.

  	
  Leverage Ratio

  	
  65

  
	
   

  	
  7.2.13.

  	
  Fixed Charge Coverage
  Ratio

  	
  65

  
	
   

  	
  7.2.14.

  	
  Inventory Limits

  	
  65

  
	
   

  	
  7.2.15.

  	
  Fiscal Year

  	
  66

  
	
   

  	
  7.2.16.

  	
  Changes in Subordinated
  Debt Documents

  	
  66

  
	
  7.3

  	
  Reporting Requirements

  	
  66

  
	
   

  	
  7.3.1.

  	
  Quarterly Financial
  Statements

  	
  67

  
	
   

  	
  7.3.2.

  	
  Annual Financial Statements

  	
  67

  
	
   

  	
  7.3.3.

  	
  Certificates of the
  Borrower

  	
  67

  
	
   

  	
  7.3.4.

  	
  Notice of Default

  	
  68

  
	
   

  	
  7.3.5.

  	
  Notice of Litigation

  	
  69

  
	
   

  	
  7.3.6.

  	
  Notice of Change in Debt
  Rating

  	
  69

  
	
   

  	
  7.3.7.

  	
  Budgets, Forecasts, Other
  Reports and Information

  	
  69

  
	
   

  	
  7.3.8.

  	
  Notices Regarding Plans
  and Benefit Arrangements

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  DEFAULT

  	
  71

  
	
  8.1

  	
  Events of Default

  	
  71

  
	
   

  	
  8.1.1.

  	
  Payments Under Loan
  Documents

  	
  71

  
	
   

  	
  8.1.2.

  	
  Breach of Warranty

  	
  71

  
	
   

  	
  8.1.3.

  	
  Breach of Certain Negative
  Covenants

  	
  71

  
	
   

  	
  8.1.4.

  	
  Breach of Other Covenants

  	
  71

  
	
   

  	
  8.1.5.

  	
  Defaults in Other Agreements
  or Indebtedness

  	
  71

  
	
   

  	
  8.1.6.

  	
  Final Judgments or Orders

  	
  72

  
	
   

  	
  8.1.7.

  	
  Loan Document
  Unenforceable

  	
  72

  
	
   

  	
  8.1.8.

  	
  Uninsured Losses;
  Proceedings Against Assets

  	
  72

  
	
   

  	
  8.1.9.

  	
  Notice of Lien or
  Assessment

  	
  72

  
	
   

  	
  8.1.10.

  	
  Insolvency

  	
  72

  
	
   

  	
  8.1.11.

  	
  Events Relating to Plans
  and Benefit Arrangements

  	
  73

  
	
   

  	
  8.1.13.

  	
  Change of Control

  	
  73

  

 

iv

 

	
   

  	
  8.1.14.

  	
  Involuntary Proceedings

  	
  73

  
	
   

  	
  8.1.15.

  	
  Voluntary Proceedings

  	
  74

  
	
  8.2

  	
  Consequences of Event of
  Default

  	
  74

  
	
   

  	
  8.2.1.

  	
  Events of Default Other
  Than Bankruptcy, Insolvency or Reorganization Proceedings

  	
  74

  
	
   

  	
  8.2.2.

  	
  Bankruptcy, Insolvency or
  Reorganization Proceedings

  	
  74

  
	
   

  	
  8.2.3.

  	
  Set-off

  	
  75

  
	
   

  	
  8.2.4.

  	
  Suits, Actions,
  Proceedings

  	
  75

  
	
   

  	
  8.2.5.

  	
  Application of Proceeds

  	
  75

  
	
   

  	
  8.2.6.

  	
  Other Rights and Remedies

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  THE AGENT

  	
  76

  
	
  9.1

  	
  Appointment

  	
  76

  
	
  9.2

  	
  Delegation of Duties

  	
  76

  
	
  9.3

  	
  Nature of Duties;
  Independent Credit Investigation

  	
  76

  
	
  9.4

  	
  Actions in Discretion of
  Agent; Instructions From the Lenders

  	
  77

  
	
  9.5

  	
  Reimbursement and
  Indemnification of Agent by the Borrower

  	
  77

  
	
  9.6

  	
  Exculpatory Provisions;
  Limitation of Liability

  	
  78

  
	
  9.7

  	
  Reimbursement and
  Indemnification of Agent by Lenders

  	
  79

  
	
  9.8

  	
  Reliance by Agent

  	
  79

  
	
  9.9

  	
  Notice of Default

  	
  80

  
	
  9.10

  	
  Notices

  	
  80

  
	
  9.11

  	
  Lenders in Their
  Individual Capacities; Agents in its Individual Capacity

  	
  80

  
	
  9.12

  	
  Holders of Notes

  	
  80

  
	
  9.13

  	
  Equalization of Lenders

  	
  81

  
	
  9.14

  	
  Successor Agent

  	
  81

  
	
  9.15

  	
  Agent’s Fee

  	
  82

  
	
  9.16

  	
  Availability of Funds

  	
  82

  
	
  9.17

  	
  Calculations

  	
  82

  
	
  9.18

  	
  Beneficiaries

  	
  82

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MISCELLANEOUS

  	
  83

  
	
  10.1

  	
  Modifications, Amendments
  or Waivers

  	
  83

  
	
   

  	
  10.1.1.

  	
  Increase of Commitments

  	
  83

  
	
   

  	
  10.1.2.

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

  	
  83

  
	
   

  	
  10.1.3.

  	
  Release of Borrower

  	
  83

  
	
   

  	
  10.1.4.

  	
  Miscellaneous

  	
  83

  
	
  10.2

  	
  No Implied Waivers;
  Cumulative Remedies; Writing Required

  	
  84

  
	
  10.3

  	
  Reimbursement and
  Indemnification of Lenders by the Borrower; Taxes

  	
  84

  
	
  10.4

  	
  Holidays

  	
  85

  
	
  10.5

  	
  Funding by Branch,
  Subsidiary or Affiliate

  	
  85

  
	
   

  	
  10.5.1.

  	
  Notional Funding

  	
  85

  
	
   

  	
  10.5.2.

  	
  Actual Funding

  	
  86

  
	
  10.6

  	
  Notices

  	
  86

  
	
  10.7

  	
  Severability

  	
  87

  

 

v

 

	
  10.8

  	
  Governing Law

  	
  87

  
	
  10.9

  	
  Prior Understanding

  	
  87

  
	
  10.10

  	
  Duration; Survival

  	
  87

  
	
  10.11

  	
  Successors and Assigns

  	
  88

  
	
  10.12

  	
  Confidentiality

  	
  89

  
	
   

  	
  10.12.1.

  	
  General

  	
  89

  
	
   

  	
  10.12.2.

  	
  Sharing Information With
  Affiliates of the Lenders

  	
  89

  
	
  10.13

  	
  Counterparts

  	
  90

  
	
  10.14

  	
  Agent’s or Lender’s
  Consent

  	
  90

  
	
  10.15

  	
  Exceptions

  	
  90

  
	
  10.16

  	
  CONSENT
  TO FORUM; WAIVER OF JURY TRIAL

  	
  90

  
	
  10.17

  	
  Certifications From
  Lenders and Participants

  	
  91

  
	
   

  	
  10.17.1

  	
  Tax Withholding Clause

  	
  91

  
	
  10.18

  	
  Joinder of Guarantors

  	
  92

  
	
  10.19

  	
  Concerning Agent Terms

  	
  92

  
	
  10.20

  	
  Ratification of Notes and
  Loan Documents and Existing Obligations

  	
  92

  
	
  10.21

  	
  No Reliance on Agent’s
  Customer Identification Program

  	
  92

  

 

LIST OF SCHEDULES AND EXHIBITS

 

	
  SCHEDULES

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1.1(A)(1)

  	
   

  	
  -

  	
   

  	
  APPLICABLE MARGIN

  
	
  SCHEDULE 1.1(A)(2)

  	
   

  	
  -

  	
   

  	
  AUTHORIZED OFFICERS AS OF
  THE CLOSING DATE

  
	
  SCHEDULE 1.1(B)

  	
   

  	
  -

  	
   

  	
  COMMITMENTS OF LENDERS AND
  ADDRESSES FOR NOTICES

  
	
  SCHEDULE 1.1(C)

  	
   

  	
  -

  	
   

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

  
	
  SCHEDULE 1.1(P)

  	
   

  	
  -

  	
   

  	
  PERMITTED LIENS

  
	
  SCHEDULE 2.9.1

  	
   

  	
  -

  	
   

  	
  EXISTING LETTERS OF CREDIT

  
	
  SCHEDULE 5.1.8

  	
   

  	
  -

  	
   

  	
  MATERIAL EVENTS SINCE
  OCTOBER 31, 2005

  
	
  SCHEDULE 5.1.12

  	
   

  	
  -

  	
   

  	
  CONSENTS AND APPROVALS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT 1.1(A)

  	
   

  	
  -

  	
   

  	
  ASSIGNMENT AND ASSUMPTION
  AGREEMENT

  
	
  EXHIBIT 1.1(G)(1)

  	
   

  	
  -

  	
   

  	
  GUARANTY AGREEMENT

  
	
  EXHIBIT 1.1(G)(2)

  	
   

  	
  -

  	
   

  	
  GUARANTOR JOINDER

  
	
  EXHIBIT 1.1(R)

  	
   

  	
  -

  	
   

  	
  REVOLVING CREDIT NOTE

  
	
  EXHIBIT 1.1(S)

  	
   

  	
  -

  	
   

  	
  SWING LOAN NOTE

  
	
  EXHIBIT 2.4.1

  	
   

  	
  -

  	
   

  	
  LOAN REQUEST

  
	
  EXHIBIT 2.4.2

  	
   

  	
  -

  	
   

  	
  SWING LOAN REQUEST

  
	
  EXHIBIT 2.12.1-1

  	
   

  	
  -

  	
   

  	
  REVOLVING CREDIT
  COMMITMENT INCREASE AGREEMENT

  
	
  EXHIBIT 2.12.1-2

  	
   

  	
  -

  	
   

  	
  LENDER JOINDER AND
  ASSUMPTION AGREEMENT

  
									

 

vi

 

	
  EXHIBIT 7.3.3.1

  	
   

  	
  -

  	
   

  	
  QUARTERLY COMPLIANCE
  CERTIFICATE

  
	
  EXHIBIT 7.3.3.2

  	
   

  	
  -

  	
   

  	
  BORROWING BASE CERTIFICATE

  

 

vii

 

SIXTH
AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SIXTH
AMENDED AND RESTATED CREDIT AGREEMENT is dated May 31, 2006 and is made by and
among K. HOVNANIAN ENTERPRISES, INC., a California corporation (the “Borrower”),
HOVNANIAN ENTERPRISES, INC., a Delaware corporation (“Hovnanian” and a “Guarantor”),
the LENDERS (as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in
its capacity as administrative agent for the Lenders under this Agreement
(hereinafter referred to in such capacity as the “Agent”).

 

WITNESSETH:

 

WHEREAS, the Lenders provided a
$1,200,000,000 revolving credit facility to the Borrower pursuant to an Amended
and Restated Credit Agreement dated June 14, 2005 among the parties hereto (the
“Prior Credit Agreement”);

 

WHEREAS, the Borrower and the Lenders have
agreed that the Prior Credit Agreement be amended and restated as provided
herein;

 

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

 

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

 

1.                                       CERTAIN
DEFINITIONS

 

1.1                                 Certain
Definitions.

 

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

 

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

 

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

 

 

with GAAP, and
(D) if the Low Fixed Charge Coverage Ratio Period is in effect and Borrower or
its Subsidiaries have made any payments in respect of any Qualified Preferred
Equity while such Low Fixed Charge Coverage Ratio Period has been in effect,
such Qualified Preferred Equity as of such date.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Applicable Margin
shall mean, as applicable:

 

(A)                              the percentage spread to
be added to Base Rate under the Base Rate Option which shall be zero percent
(0%), and

 

2

 

(B)                                the percentage spread
to be added to LIBO-Rate under the LIBO-Rate Option based on the Leverage Ratio
and level of Debt Rating then in effect according to the Pricing Grid below the
heading “Euro-Rate Spread”.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)                                     100%
of Excess Cash;

 

3

 

(ii)                                  95%
of Sold Homes;

 

(iii)                               75%of
Unsold Homes; and

 

(iv)                              60% of Finished Lots and
Land Under Development;

 

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

 

(i)                                     property
located outside of the United States of America;

 

(ii)                                  Unentitled
Land;

 

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

 

(iv)                              properties
subject to any Purchase Money Mortgage.

 

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

 

Borrowing Base Certificate
shall mean the Borrowing Base Certificate in the form of Exhibit 7.3.3.2
duly completed and delivered by the Borrower pursuant to Section 7.3.3.2
[Borrowing Base Certificate].

 

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

 

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

 

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

 

Capital Stock Retirement
shall mean any repurchase, redemption, acquisition or retirement of any capital
stock or other ownership interest of Hovnanian or of any warrants, options or
other rights to purchase such capital stock or other

 

4

 

ownership
interest; provided that “Capital Stock Retirement” shall not include the
conversion or exchange of any of the foregoing into shares of capital stock of
Hovnanian.

 

Closing Date shall
mean May 31, 2006, which shall be the date hereof.

 

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

 

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

 

Compliance Certificate
shall have the meaning assigned to such term in Section 7.3.3 [Certificates of
the Borrower].

 

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

 

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

 

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

 

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

 

Debt Rating shall
mean the rating of Hovnanian’s senior unsecured long-term debt by each of the
Qualified Rating Agencies, subject to the provisions contained on the Pricing
Grid.

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

Environmental Laws
shall mean all federal, state, local and foreign Laws and any consent decrees,
settlement agreements, judgments, orders, directives, policies or programs
issued by or entered into with an Official Body pertaining or relating to:
(i) pollution or pollution control; (ii) protection of human health
or the environment; (iii) employee safety in the workplace; (iv) the
presence, use, management, generation, manufacture, processing, extraction,
treatment, recycling, refining, reclamation, labeling, transport, storage,
collection, distribution, disposal or release or threat of release of Regulated
Substances; (v) the presence of Contamination; (vi) the protection of
endangered or threatened species; and (vii) the protection of
Environmentally Sensitive Areas.

 

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

 

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

 

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

 

6

 

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

 

Excess Cash shall
mean cash that would appear on a consolidated balance sheet of Hovnanian (to
the extent not pledged or encumbered in any way (other than in connection with
a Permitted Lien of the type described in item (xii) of the definition of Permitted
Liens, but only to the extent that no outstanding Indebtedness or other
liabilities are owed to the applicable institution or such institution is a
Lender)) in excess of $10,000,000.

 

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

 

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

 

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

 

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

 

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

 

Federal Funds Open Rate  shall mean the rate per annum determined by
the Agent in accordance with its usual procedures (which determination shall be
conclusive absent manifest error) to be the “open” rate for federal funds
transactions as of the opening of business for federal funds transactions among
members of the Federal Reserve System arranged by federal funds brokers on such
day, as quoted by Garvin Guybutler, any successor entity thereto, or any other
broker selected by the Agent, as set forth on the applicable Telerate display
page; provided, however; that if such day is not a Business Day, the Federal
Funds Open Rate for such day shall be the “open rate” on the immediately
preceding Business Day, or if no such rate shall be quoted by a Federal funds
broker at such time, such other rate as determined by the Agent in accordance
with its usual procedures.

 

7

 

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

 

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

 

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

 

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

 

Fixed Charge Coverage Ratio
shall mean the ratio, as of any date of determination, of (i) Adjusted
Operating Income for the prior twelve (12) months to (ii) four (4) multiplied
by Fixed Charges for the most-recently ended fiscal quarter.

 

Fixed Charges shall
mean as of the last day of any fiscal quarter the sum, without duplication, of
(i) interest cost incurred on all Senior Homebuilding Indebtedness over the
past fiscal quarter; (ii) interest cost incurred on the Subordinated Debt over
the past fiscal quarter; (iii) 50% of the interest cost incurred on all
Purchase Money Mortgages over the past fiscal quarter; (iv) Letter of Credit
Fees accrued over the past fiscal quarter; (v) the interest component of
capitalized leases over the past fiscal quarter, and (vi) dividends on any
preferred equity issued by Hovnanian or any of its Subsidiaries which is not
Qualified Preferred Equity.

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

consolidated
basis in accordance with GAAP, or (vi) any Guaranty of Indebtedness for
borrowed money. Indebtedness shall not include Qualified Preferred Equity.

 

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

 

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

 

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

 

Interest Rate Option
shall mean any LIBO-Rate Option or Base Rate Option.

 

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

 

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

 

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

 

10

 

	
  Rating Agency

  	
   

  	
  Minimum Level for

  “Investment Grade” Rating

  	
   

  
	
  Standard
  & Poor’s

  	
   

  	
  BBB-

  	
   

  
	
  Moody’s

  	
   

  	
  Baa3

  	
   

  
	
  Fitch

  	
   

  	
  BBB-

  	
   

  

 

Investment Grade Period shall
mean the period commencing on the date on which the Borrower delivers to
the  Agent evidence satisfactory to
the  Agent that Hovnanian’s senior
unsecured long-term debt is rated at or above the Investment Grade Level by at
least two of any of the Qualified Rating Agencies and shall terminate on the
date on which Hovnanian’s senior unsecured long-term debt ceases to be rated at
the Investment Grade Level or higher by at least two of such Qualified Rating
Agencies.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

LIBO-Rate shall
mean, with respect to the Loans comprising any Borrowing Tranche to which the
LIBO-Rate Option applies for any Interest Period, the interest rate per annum
determined by the Agent by dividing (the resulting quotient rounded upwards, if
necessary, to the nearest 1/100th of 1% per annum) (i) the rate of
interest determined by the Agent in accordance with its usual procedures (which
determination shall be conclusive absent manifest error) to be the average of
the London interbank offered rates for U.S. Dollars quoted by the British
Bankers’ Association as set forth on Moneyline Telerate (or appropriate
successor or, if the British Bankers’ Association or its successor ceases to
provide such quotes, a comparable replacement determined by the Agent) display
page 3750 (or such other display page on the 
Moneyline Telerate service as may replace display page 3750) two (2)
Business Days prior to the first day of such Interest Period for an amount
comparable to such Borrowing Tranche and having a borrowing date and a maturity
comparable to such Interest Period by (ii) a number equal to 1.00 minus
the LIBO-Rate Reserve Percentage. The LIBO-Rate may also be expressed by the
following formula:

 

	
  LIBO-Rate =

  	
   

  	
  Average of
  London interbank offered rates quoted

  	
   

  
	
   

  	
   

  	
  by BBA or
  appropriate successor as shown on

  	
   

  
	
   

  	
   

  	
  Moneyline
  Telerate Service display page 3750

  	
   

  
	
   

  	
   

  	
  1.00 - LIBO-Rate Reserve Percentage

  	
   

  

 

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

 

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

 

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

 

Lien shall mean any
mortgage, deed of trust, pledge, lien, security interest, charge or other
encumbrance or security arrangement of any nature whatsoever, whether
voluntarily or involuntarily given, including any conditional sale or title
retention

 

12

 

arrangement,
and any assignment, deposit arrangement or lease intended as, or having the
effect of, security.

 

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

 

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

 

Loan Parties shall
mean the Borrower and the Guarantors.

 

Loan Request  shall have the meaning assigned to that term
in Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests].

 

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

 

Low Fixed Charge Coverage Ratio Period
shall be deemed to be in effect during any time at which the Fixed Charge
Coverage Ratio as of the last day of the most recent fiscal quarter is less
than 1.5 to 1.0.

 

Majority Lenders
shall mean

 

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

 

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

 

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

 

Material Adverse Change
shall mean any set of circumstances or events which (a) has or could
reasonably be expected to have any material adverse effect whatsoever upon the
validity or enforceability of this Agreement or any other Loan Document,
(b) is or could reasonably be expected to be material and adverse to the

 

13

 

business,
properties, assets, financial condition, results of operations or business
prospects of the Loan Parties taken as a whole, (c) impairs materially or
could reasonably be expected to impair materially the ability of the Loan
Parties taken as a whole to duly and punctually pay or perform their material
Indebtedness for borrowed money, or (d) impairs materially or could
reasonably be expected to impair materially the ability of the Agent or any of
the Lenders, to the extent permitted, to enforce their legal remedies pursuant
to this Agreement, the Notes or the Guaranty Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

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

 

Permitted Liens
shall mean:

 

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

 

(ii)                                  Pledges or deposits
made in the ordinary course of business to secure payment of workers’
compensation, or to participate in any fund in connection with workers’
compensation, unemployment insurance, old-age pensions or other social security
programs;

 

(iii)                               Mechanics’, materialmen’s,
warehousemen’s, carriers’ or other like liens arising in the ordinary course of
business securing obligations which are not overdue for a period longer than 30
days or which are being contested in good faith by appropriate proceedings;

 

(iv)                              Pledges or deposits made
in the ordinary course of business to secure performance of bids, tenders,
contracts (other than for the repayment of borrowed money) or leases, not in
excess of the aggregate amount due thereunder, or to secure statutory
obligations, or surety, appeal, indemnity, performance or other similar bonds
required in the ordinary course of business;

 

(v)                                 Encumbrances
consisting of zoning restrictions, easements or other restrictions on the use
of real property, none of which materially impairs the use of such property or
the value thereof, and none of which is violated in any material respect by
existing or proposed structures or land use;

 

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

 

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

 

16

 

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

 

(ix)                                (A) Purchase Money
Mortgages, provided that the aggregate principal amount of Indebtedness secured
by Purchase Money Mortgages that are recourse to a Loan Party does not exceed
$20,000,000, (B) Purchase Money Security Interests and (C) Liens on the real
property owned by Hovnanian or a Corporate Office Subsidiary and occupied
primarily by employees of Hovnanian or its subsidiaries, including Liens on the
real property  which serves as  Hovnanian’s headquarters in Red Bank, New
Jersey securing Indebtedness not to exceed in aggregate $25,000,000 principal
amount; and

 

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

 

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

 

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

 

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

 

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

 

(xi)                                Liens, security
interests, mortgages, or deeds of trust on real estate in conjunction with
purchase contracts for the purchase of the land comprising such real estate,
which secure future payments due to the land sellers at the time of the sale of
the homes on such land and which are contingent on the sale price of such
homes, including (A) adjustments to the land purchase price, (B) profit
participations, (C) community marketing fees and community enhancement fees,
and (D) reimbursable costs paid by the land developer (in each case (of items
(A) through (D)) so long as: (x) such purchase contracts are on market
terms  and (y) no default exists with respect to such purchase contracts;

 

(xii)                             Liens arising under
applicable Law (as opposed to

 

17

 

consensual Liens granted by contract), or confirmations or
acknowledgments thereof, created in the ordinary course of business in favor of
banks or other financial institutions over credit balances in any bank account
at such bank or financial institution;

 

(xiii)                          Liens securing obligations
under the Credit Agreement and other Senior Homebuilding Indebtedness of the
Borrower or its Restricted Subsidiaries provided that (A) such Liens shall
secure the Obligations hereunder on a pari passu basis with such Senior
Homebuilding Indebtedness, (B) the Borrower shall deliver to the Agent copies
of the documentation governing such senior Indebtedness and Liens, and (C) such
Liens shall be subject to an intercreditor agreement or other documentation
reasonably acceptable to the Agent as confirmed by the Agent in writing; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

Qualified Preferred Equity
shall mean preferred equity issued by Hovnanian or any wholly-owned subsidiary
thereof provided that each of the following conditions is met: (i) the total
book value thereof shall not at any time exceed $500,000,000, (ii) the term
thereof shall be perpetual and such Qualified Preferred Equity shall not
contain any mandatory redemption provisions, put rights in favor of the holders
thereof, or any provisions that may obligate the issuer to repurchase any or
all of such Qualified Preferred Equity prior to the date that is 20 years after
the Expiration Date, (iii) such Qualified Preferred Equity shall not provide
the holders with cumulative dividends rights, and (iv) the Borrower shall have
disclosed to the Agent the terms of such Qualified Preferred Equity prior to
the issuance thereof.

 

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

 

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

 

Regulated Substances
shall mean any substance, material or waste defined under Environmental Laws as
a “hazardous substance,” “pollutant,” “pollution,” “contaminant,” “hazardous or
toxic substance,” “extremely hazardous substance,” “toxic chemical,” “toxic
substance,” “toxic waste,” “hazardous waste,” “special handling waste,” “industrial
waste,” “residual waste,” “solid waste,” “municipal waste,” “mixed waste,” “infectious
waste,” “chemotherapeutic waste,” “medical waste,” or “regulated substance” or
any other material, substance or waste which otherwise is regulated by Environmental
Laws.

 

19

 

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

 

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

 

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

 

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

 

Required Lenders
shall mean

 

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

 

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

 

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

 

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

 

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

 

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

 

Restricted
Payments shall mean

 

20

 

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

 

(ii)                                 Payments
(whether in the form of principal payments, note repurchases or similar items)
to the holder of Subordinated Debt made on or after January 31, 2001; provided,
however, with respect to this item (ii), a refinancing of the
Subordinated Debt to the extent consisting of the repayment of the Subordinated
Debt and the incurring of new “Subordinated Debt” within 60 days of such
repayment shall not constitute a “Restricted Payment”; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

Senior Notes shall
mean the (i) $150,000,000 principal amount of 10-1/2% Senior Notes of the
Borrower and guaranteed by Hovnanian due October 2007; (ii) $100,000,000
principal amount  8.0% Senior Notes of the Borrower due April
2012 and guaranteed by Hovnanian; (iii) $215,000,000 principal amount 6.50%
Senior Notes of the Borrower due January 2014 and guaranteed by Hovnanian; (iv)
$150,000,000 principal amount 6.375% Senior Notes of the Borrower due 2014 and
guaranteed by Hovnanian; (v) $300,000,000 7.5% Senior Notes due May, 2016, (vi)
$200,000,000 6.25% Senior Notes due January, 2015, (vii) $300,000,000 6.25%
Senior Notes due January, 2016, and (viii) other notes sold or guaranteed by
Hovnanian or the Borrower from time to time after the Closing Date on terms not
materially less favorable to the Lenders (as determined by the Agent) as those
described in clauses (i) and (ii) above.

 

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

 

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

 

Split in Ratings
shall mean with respect to any two ratings of Hovnanian’s senior unsecured
long-term debt by Qualified Rating Agencies, that the Level for purposes of the
Pricing Grid of such ratings differs.

 

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

 

Subordinated
Debt shall mean (i) the $150,000,000 principal amount
8.875% Senior Subordinated Notes due in April 2012; (ii) the $150,000,000
principal amount 7.75% Senior Subordinated Notes due in 2013; (iii)
$100,000,000 principal amount 6.0% Senior Subordinated Notes due in January
2010, and (iv) any other unsecured indebtedness of the Borrower, Hovnanian, or
any other Loan Party which is subordinated by its terms to the prior payment in
full of the Obligations evidenced by this Agreement, the Notes and

 

22

 

 

the Letters of Credit, as may be outstanding
from time to time, in a manner no less favorable to the Lenders in any material
respect than the terms of the Subordinated Debt described in clause (i) above
and which contain covenants that are not materially less favorable to
Hovnanian, the Borrower or any other Loan Party than those contained in the
Subordinated Debt described in clause (i) above.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

23

 

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

 

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

 

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

 

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

 

1.2                                 Construction.

 

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

 

1.2.1.                     Number;
Inclusion.

 

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

 

1.2.2.                     Determination.

 

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

 

1.2.3.                     Agent’s
Discretion and Consent.

 

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

 

1.2.4.                     Documents
Taken as a Whole.

 

the words “hereof,” “herein,” “hereunder,” “hereto”
and similar terms in this Agreement or any other Loan Document refer to this
Agreement or such

 

24

 

other Loan
Document as a whole and not to any particular provision of this Agreement or
such other Loan Document;

 

1.2.5.                     Headings.

 

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

 

1.2.6.                     Implied
References to this Agreement.

 

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

 

1.2.7.                     Persons.

 

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

 

1.2.8.                     Modifications
to Documents.

 

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

 

1.2.9.                     From, To
and Through.

 

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

 

1.2.10. Shall;
Will.

 

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

 

1.3                                 Accounting
Principles.

 

Except as otherwise provided in this
Agreement, all computations and determinations as to accounting or financial
matters and all financial statements to be delivered pursuant to this Agreement
shall be made and prepared in accordance with GAAP (including principles of
consolidation where appropriate), and all accounting or financial terms shall
have

 

25

 

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

 

2.                                       REVOLVING
CREDIT AND SWING LOAN FACILITIES

 

2.1                                 Revolving Credit
Commitments.

 

2.1.1.                     Revolving
Credit Loans.

 

Subject to the terms and conditions hereof
and relying upon the representations and warranties herein set forth, each
Lender severally agrees to make Revolving Credit Loans to the Borrower at any
time or from time to time on or after the date hereof to the Expiration Date
provided that after giving effect to such Loan (a) the aggregate amount of
Revolving Credit Loans from such Lender shall not exceed such Lender’s Revolving
Credit Commitment minus such Lender’s Ratable Share of the Letter of Credit
Outstandings and its Ratable Share of the outstanding Swing Loans and (b) the
Borrower shall be in compliance with the covenant contained in the first
sentence of Section 7.2.10 [Borrowing Base] (provided that the
requirements of such Section 7.2.10 shall apply only if the Investment
Grade Period is not in effect).  Within
such limits of time and amount and subject to the other provisions of this
Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.

 

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

 

2.1.2.                     Swing Loan
Commitment.

 

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

 

26

 

Grade Period
is not in effect).  Within such limits of
time and amount and subject to the other provisions of this Agreement, the
Borrower may borrow, repay and reborrow pursuant to this Section 2.1.2.  Swing Loans shall, at the option of PNC Bank
after consultation with the Borrower, be repaid by the proceeds of a Revolving
Credit Loan deemed to have been made for such purpose pursuant to Section 2.8
[Borrowings to Repay Swing Loans] and shall be subject to the provisions of Section 4.8
[Settlement Date Procedures].

 

2.1.3                        Voluntary
Reduction of Commitment

 

The Borrower shall have the right at any time
after the Closing Date (i) upon five (5) days’ prior written notice
to the Agent to permanently reduce (ratably among the Lenders in proportion to
their Ratable Shares) the Revolving Credit Commitments, in a minimum amount of
$500,000 and whole multiples of $100,000 (provided that in no event shall the
aggregate Revolving Credit Commitments be reduced to an amount less than
$750,000,000) or (ii) at any time upon prepayment in full of the
Obligations, terminate completely the Commitments, without penalty or premium
except as hereinafter set forth, provided that any such reduction or
termination shall be accompanied by prepayment of the Notes, together with
outstanding Commitment Fees, and the full amount of interest accrued on the
principal sum to be prepaid (and all amounts referred to in Section 4.6.2
[Indemnity] hereof), to the extent that the aggregate amount thereof then
outstanding exceeds the Commitments as so reduced or terminated.  Any notice to reduce the Revolving Credit
Commitments under this Section 2.1. shall be irrevocable.

 

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

 

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

 

2.3                                 Commitment Fees.

 

Accruing from the date hereof until the
Expiration Date, the Borrower agrees to pay to the Agent for the account of
each Lender, as consideration for such Lender’s Revolving Credit Commitment
hereunder, a nonrefundable commitment fee (the “Commitment Fee”) equal to the
Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366  days,
as the case may be, and actual days elapsed) on the average daily difference
between the amount of (i) such Lender’s Revolving Credit Commitment as the
same may be constituted from time to time and the (ii) the sum of such
Lender’s Revolving Credit Loans outstanding (plus, in the case of PNC Bank, its
Swing Loans outstanding) plus its Ratable Share of Letter of Credit
Outstandings.  All Commitment Fees shall
be payable quarterly in arrears on the fifteenth (15)

 

27

 

day of each calendar quarter
(for the calendar quarter most recently ended) after the date hereof and on the
Expiration Date or upon acceleration of the Obligations.

 

2.4                                 Revolving
Credit Loan Requests; Swing Loan Requests.

 

2.4.1.                     Revolving
Credit Loan Requests.

 

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

 

2.4.2.                     Swing Loan
Requests.

 

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

 

28

 

2.5                                 Making
Revolving Credit Loans and Swing Loans.

 

2.5.1. Generally.

 

The Agent shall, promptly after receipt by it
of a Loan Request pursuant to Section 2.4.1 [Revolving Credit Loan
Requests], but not later than 12:00 noon, Eastern time, notify the Lenders of
its receipt of such Loan Request specifying: 
(i) the proposed Borrowing Date and the time and method of
disbursement of the Revolving Credit Loans requested thereby; (ii) the
amount and type of each such Revolving Credit Loan and the applicable Interest
Period (if any); and (iii) the apportionment among the Lenders of such
Revolving Credit Loans as determined by the Agent in accordance with Section 2.2
[Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].  Each Lender shall remit the principal amount
of each Revolving Credit Loan to the Agent such that the Agent is able to, and
the Agent shall, to the extent the Lenders have made funds available to it for
such purpose and subject to Section 6.2 [Each Additional Loan or Letter of
Credit], fund such Revolving Credit Loans to the Borrower in U.S. Dollars and
immediately available funds at the Principal Office prior to 2:30 p.m.,
Eastern time, on the applicable Borrowing Date, provided that if any
Lender fails to remit such funds to the Agent in a timely manner, the Agent may
elect in its sole discretion to fund with its own funds the Revolving Credit
Loans of such Lender on such Borrowing Date, and such Lender shall be subject
to the repayment obligation in Section 9.16 [Availability of Funds].

 

2.5.2.                     Making
Swing Loans.

 

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

 

2.6                                 Swing
Loan Note.

 

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

 

2.7                                 Use
of Proceeds.

 

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

 

29

 

2.8                                 Borrowings
to Repay Swing Loans.

 

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

 

2.9                                 Letter
of Credit Subfacility.

 

2.9.1.                     Issuance
of Letters of Credit.

 

The Borrower may request the issuance of a
letter of credit (each a “Letter of Credit”) on behalf of itself or another
Loan Party by the Agent or any Lender which issues a Letter of Credit hereunder
(such Lender, with respect to the issuance of the Letter of Credit so requested
by the Borrower, being a “Letter of Credit Lender”) by delivering to the Agent
and the Letter of Credit Lender a completed application and agreement for
letters of credit in such form as the Letter of Credit Lender and the Agent may
specify from time to time by no later than 10:00 a.m., Eastern time, at
least three (3) Business Days, or such shorter period as may be agreed to
by the Letter of Credit Lender, in advance of the proposed date of
issuance.  Each letter of credit issued
by any Lender and described on Schedule 2.9.1 shall be deemed to be
a “Letter of Credit” hereunder as of the Closing Date.  Subject to the terms and conditions hereof
and in reliance on the agreements of the other Lenders set forth in this Section 2.9,
the Letter of Credit Lender will issue a Letter of Credit, unless such Letter
of Credit Lender has received written notice from the Agent or the Borrower, at
least one Business Day prior to the requested date of issuance or amendment of
the applicable Letter of Credit, that one or more applicable conditions
contained in Section 6.2 shall not be satisfied.  Each Letter of Credit shall have a maximum
stated maturity of no later than the Letter of Credit Expiration Date.  For purposes of this subsection, “stated
maturity” is the expiration date of the Letter of Credit without giving effect
to any future extension thereof under an automatic renewal provision, provided
that such automatic renewal provision permits the Letter of Credit Lender to
elect not to extend by giving written notice of cancellation to the
beneficiary.  In no event shall Letter of
Credit Outstandings exceed, at any one time, the greater of (i) 50% times
the amount of the Revolving Credit Commitments, or (ii) $750,000,000.  After giving effect to the issuance of any
Letter of Credit, the Borrower shall be

 

30

 

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

 

2.9.2.                     Letter of
Credit Fees.

 

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

 

2.9.3.                     Disbursements,
Reimbursement.

 

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

 

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

 

2.9.3.3               Each Lender shall
upon any notice pursuant to Section 2.9.3.2 [Disbursements, Reimbursement]
make available to the Agent on behalf of the Letter of Credit Lender an amount
in immediately available funds equal to its Ratable Share of the amount of the
drawing, whereupon the participating Lenders shall (subject to Section 2.9.3.4
[Disbursements, Reimbursement]) each be deemed to have made a Revolving Credit
Loan under

 

31

 

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

 

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

 

2.9.4.                     Repayment
of Participation Advances.

 

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

 

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

 

32

 

interest
thereon from the date such demand is made to the date such amounts are returned
by such Lender to the Agent, at a rate per annum equal to the Federal Funds
Effective Rate in effect from time to time.

 

2.9.5.                     Documentation.

 

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

 

2.9.6.                     Determinations
to Honor Drawing Requests.

 

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

 

2.9.7.                     Nature of
Participation and Reimbursement Obligations.

 

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

 

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

 

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

 

33

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2.9.8.                     Indemnity.

 

In addition to amounts payable as provided in
Section 9.5 [Reimbursement and Indemnification of Agent by the Borrower], the Borrower hereby agrees to protect,
indemnify, pay and save harmless the Agent and any Letter of Credit Lender from
and against any and all claims, demands, liabilities, damages, losses, costs,
charges and expenses (including reasonable fees, expenses and disbursements of
counsel and allocated costs of internal counsel) which the Agent or any Letter
of Credit Lender may incur or be subject to as a consequence, direct or indirect,
of the issuance of any Letter of Credit, other than as a result of

 

34

 

(A) the
gross negligence or willful misconduct of the Agent or any Letter of Credit
Lender as determined by a final judgment of a court of competent jurisdiction
or (B) the wrongful dishonor by the Letter of Credit Lender of a proper
demand for payment made under any Letter of Credit, except if such dishonor
resulted from any act or omission, whether rightful or wrongful, of any present
or future de jure or de facto government or governmental authority (all such
acts or omissions herein called “Governmental Acts”).

 

2.9.9.                     Liability
for Acts and Omissions.

 

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

 

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

 

35

 

2.9.10.               Sharing
Letter of Credit Documentation.

 

Each Letter of Credit Lender shall furnish to
the Agent copies of any letter of credit application and related documentation
to which such Letter of Credit Lender and a Loan Party are parties and promptly
after issuance, a copy of any Letter of Credit or amendment to any Letter of
Credit issued by such Lender.

 

2.9.11.               Cash
Collateral.

 

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

 

2.10                           Extension
by Lenders of the Expiration Date.

 

2.10.1.               Requests;
Approval by All Lenders.

 

After delivery by the Borrower of the annual
financial statements to be provided under Section 7.3.2 [Annual Financial
Statements] for the fiscal year ending October 31, 2006 or any subsequent
fiscal year, the Borrower may request either a one-year or two-year extension
(provided that any such extension may not cause the remaining term of this
Agreement to exceed 5 years) of the
Expiration Date, by written notice to the Lenders made by May 30 of the
year in which such financial statements are due, and the Lenders agree to
respond to the Borrower’s request for an extension no later than thirty (30)
days following receipt of the request; provided, however, that the
failure of any Lender to respond within such time period shall not in any
manner constitute an agreement by such Lender to extend the Expiration
Date.  If all Lenders elect to extend,
the Expiration Date shall be extended for a period of one year or two years, as
requested by the Borrower.  If one or
more Lenders decline to extend or do not respond to Borrower’s request, the
provisions of Section 2.10.2 [Approval by 66-2/3% Lenders] shall apply.

 

2.10.2.               Approval by 66-2/3%
Lenders.

 

In the event that one or more Lenders do not
agree to extend the Expiration Date or do not respond to Borrower’s request for
an extension within the time required under Section 2.10.1 [Requests;
Approval by All Lenders] (each a “Non-approving Lender”), but 66-2/3% of the
Lenders (measured by their Ratable Shares and not per capita) agree to such
extension within such time (each such agreeing Lender being an “Extending
Lender”), then the Borrower may, at the Borrower’s option, on or before July 31
of the year in

 

36

 

which the Borrower made its request for an extension, notify the Agent
and the Lenders that the Borrower intends to employ one or more of the
following three (3) options: (i) cause the Commitment of each Non-approving
Lender to be terminated (after which time such Non-approving Lender shall cease
to be a “Lender” hereunder) and cause the aggregate Commitments to be reduced
by the amount of such terminated Commitments, or (ii) require the
Non-approving Lenders to sell, and allow (upon prior notice to the Agent) the
Extending Lenders which have agreed to such extension within the time required
under Section 2.10.1 [Requests; Approval by All Lenders] or any financial
institution approved by the Agent and (absent an Event of Default) the Borrower
(each such Person referred to in this clause (ii) being an “Assignee
Lender”) to purchase all of the outstanding Loans if any, of the Non-approving
Lenders and succeed to and assume the Commitments and all other rights, interests
and obligations of the Non-approving Lenders under this Agreement and the other
Loan Documents, or (iii) require the Non-approving Lender to remain a
Lender and require it to maintain its Commitment and retain for such
Non-approving Lender’s Commitment the “Expiration Date” established prior to
the extension referred to in this Section 2.10.2, all subject to the other
provisions of this Agreement.  Any such
purchase and assumption pursuant to clause (ii) above shall be (1) pursuant
to an Assignment and Assumption Agreement and (2) subject to and in
accordance with Section 10.11 [Successors and Assigns].  The Borrower shall pay all amounts due and
payable to the Non-approving Lender on the effective date of such Assignment
and Assumption Agreement.  In the event
that the Agent shall become a Non-approving Lender, the provisions of this Section 2.10
[Extension by Lenders of the Expiration Date] shall be subject to Section 9.14
[Successor Agent].  In the event that the
Borrower has selected the option described in clause (ii) above and if the
Loans and Commitments of a Non-approving Lender are, nevertheless, not fully
assigned and assumed pursuant to this Section 2.10.2, or terminated or
retained pursuant to clause (i) or clause (iii) above, as applicable,
on or before August 31 of the year in which the Borrower made its request
for an extension, then the Expiration Date shall not be extended for any
Lender.  Nothing in this Section 2.10.2
shall expand the options provided in Section 4.4.2 [Replacement of a Lender].

 

2.11                           Designation
of Subsidiaries and Release of Guarantors.

 

2.11.1.               Release of
Guarantors.

 

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

 

(a)                                  For the release of (i) any
Guarantor whose assets are principally comprised of residential or commercial
property which is leased or held for the purposes of leasing to unaffiliated
third parties or (ii) any Guarantor in which any Loan Party (or Loan
Parties in the aggregate) has, at the time of such release, a Subsidiary
Investment less than $1,000,000, (iii) Corporate Office Subsidiary
incident to it becoming a Non-Restricted Person, or (iv) any Guarantor at
the time that such Guarantor enters into a newly-formed Joint Venture with a person
which is not an Affiliate of the Loan Parties and transfers all or a
substantial portion of its assets
to such Joint Venture provided that such Guarantor is a Non-Restricted Person
(or simultaneously with the Borrower’s request for such release the Borrower
has designated such

 

37

 

Guarantor as a
“Non-Restricted Person” in compliance with Section 2.11.2), no consent of
the Lenders shall be required and such request of the Borrower shall be granted
absent an Event of Default or Potential Default, effective on the date
specified by the Borrower which shall not be earlier than five (5) Business
Days after the receipt by the Agent of such request;

 

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

 

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

 

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

 

2.11.2.               Designation of
Non-Restricted Person.

 

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

 

2.11.3.               Automatic
Designation of Non-Restricted Person.

 

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

 

38

 

2.11.4.               Designation of
Restricted Subsidiary.

 

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

 

2.12                           Increase
in Commitments.

 

2.12.1                  Increasing
Lenders and New Lenders.

 

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

 

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

 

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

 

(iii)                               Aggregate
Revolving Credit Commitments.  After
giving effect to such increase, the total Revolving Credit Commitments shall
not exceed $2,000,000,000.

 

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

 

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

 

39

 

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

 

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

 

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

 

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

 

2.12.2                  Treatment of
Outstanding Loans and Letters of Credit.

 

2.12.2.1         Repayment
of Outstanding Loans; Borrowing of New Loans.

 

On the Revolving Credit Commitment Increase
Date, the Borrower shall repay all Loans outstanding on the Revolving Credit
Commitment Increase Date, subject to the Borrower’s indemnity obligations under
Section 4.6.2 [Indemnity] provided that it may borrow new Loans with a
Borrowing Date on the Revolving Credit Commitment Increase Date. Each of the
Lenders shall participate in any new Loans made on or after the Revolving
Credit Commitment Increase Date in accordance with their respective Ratable
Shares after giving effect to the increase in Revolving Credit Commitments contemplated
by this Section 2.12.

 

2.12.2.2         Outstanding
Letters of Credit.

 

On the Commitment Increase Date, each
Increasing Lender and each New Lender (a) will be deemed to have purchased
a participation in each then

 

40

 

outstanding
Letter of Credit equal to its Ratable Share of each such Letter of Credit and
the participation of each other Lender in each such Letter of Credit shall be
adjusted accordingly and (b) will acquire, (and will pay to the Agent, for
the account of each Lender, in immediately available funds, an amount equal to)
its Ratable Share of all outstanding Participation Advances.

 

3.                                       INTEREST
RATES

 

3.1                                 Interest
Rate Options.

 

The Borrower shall pay interest in respect of
the outstanding unpaid principal amount of the Loans as selected by it from the
Base Rate Option or LIBO-Rate Option set forth below applicable to the Loans,
it being understood that, subject to the provisions of this Agreement, the
Borrower may select different Interest Rate Options and different Interest
Periods to apply simultaneously to the Loans comprising different Borrowing
Tranches and may convert to or renew one or more Interest Rate Options with
respect to all or any portion of the Loans comprising any Borrowing Tranche, provided
that there shall not be at any one time outstanding more than ten (10) Borrowing
Tranches in the aggregate among all of the Loans, and provided further
that only the Base Rate Option shall apply to the Swing Loans.  If at any time the designated rate applicable
to any Loan made by any Lender exceeds such Lender’s highest lawful rate, the
rate of interest on such Lender’s Loan shall be limited to such Lender’s
highest lawful rate.

 

3.1.1.                     Revolving
Credit Interest Rate Options.

 

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

 

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

 

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

 

3.1.2.                     Rate
Quotations.

 

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

 

41

 

3.2                                 Interest
Periods.

 

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

 

3.3                                 Interest
After Default.

 

3.3.1.                     Default
Rate.

 

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

 

3.3.2.                     Acknowledgment.

 

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

 

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

 

3.4.1.                     Unascertainable.

 

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

 

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

 

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

 

42

 

3.4.2.                     Illegality;
Increased Costs; Deposits Not Available.

 

If at any time any Lender shall have
determined that:

 

(i)                                     the
making, maintenance or funding of any Loan to which a LIBO-Rate Option applies
has been made impracticable or unlawful by compliance by such Lender in good
faith with any Law or any interpretation or application thereof by any Official
Body or with any request or directive of any such Official Body (whether or not
having the force of Law), or

 

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

 

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

 

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

 

3.4.3.                     Agent’s
and Lender’s Rights.

 

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

 

43

 

prepayment,
such Loan shall automatically be converted to the Base Rate Option otherwise
available with respect to such Loan upon such specified date.

 

3.5                                 Selection
of Interest Rate Options.

 

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

 

4.                                       PAYMENTS

 

4.1                                 Payments.

 

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

 

4.2                                 Pro
Rata Treatment of Lenders.

 

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

 

44

 

amounts from the Borrower with
respect to Swing Loans shall be made by or to PNC Bank according to Section 2
[Revolving Credit and Swing Loan Facilities].

 

4.3                                 Interest
Payment Dates.

 

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

 

4.4                                 Voluntary
Prepayments.

 

4.4.1.                     Right to
Prepay.

 

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

 

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

 

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

 

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

 

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

 

All prepayment notices shall be
irrevocable.  The principal amount of the
Loans for which a prepayment notice is given, together with interest on such
principal amount except with respect to Loans to which the Base Rate Option
applies, shall be

 

45

 

due and
payable on the date specified in such prepayment notice as the date on which
the proposed prepayment is to be made. 
Except as provided in Section 3.4.3 [Agent’s and Lender’s Rights],
if the Borrower prepays a Loan but fails to specify the applicable Borrowing
Tranche which the Borrower is prepaying, the prepayment shall be applied first
to Swing Loans, then to Loans to which the Base Rate Option applies, and then
to Loans to which the LIBO-Rate Option applies. 
Any prepayment hereunder shall be subject to the Borrower’s Obligation
to indemnify the Lenders under Section 4.6.2 [Indemnity].

 

4.4.2.                     Replacement
of a Lender.

 

(a)                                  In the event any
Lender (i) gives notice under Section 3.4 [LIBO-Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available] or Section 4.6.1
[Increased Costs or Reduced Return Resulting from Taxes, Reserves, Capital
Adequacy Requirements, Expenses, Etc.], (ii) does not fund Revolving
Credit Loans because the making of such Loans would contravene any Law
applicable to such Lender, or (iii) becomes subject to the control of an
Official Body (other than normal and customary supervision), then the Borrower
shall have the right at its option, with the consent of the Agent, which shall
not be unreasonably withheld, to prepay the Loans of such Lender in whole,
together with all interest accrued thereon and all other Obligations owing to
such Lender, and terminate such Lender’s Commitment within ninety (90) days
after (x) receipt of such Lender’s notice under Section 3.4
[LIBO-Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available]
or 4.6.1 [Increased Costs or Reduced Return Resulting from Taxes, Reserves,
Capital Adequacy Requirements, Expenses, Etc.], (y) the date such Lender
has failed to fund Revolving Credit Loans because the making of such Loans
would contravene Law applicable to such Lender, or (z) the date such
Lender became subject to the control of an Official Body, as applicable; provided
that the Borrower shall also pay to such Lender at the time of such prepayment
any amounts required under Section 4.6 [Additional Compensation in Certain
Circumstances] and any accrued interest due on such amount and any related
fees; provided, further, the remaining Lenders shall have no obligation
hereunder to increase their Commitments. 
Notwithstanding the foregoing, the Agent may only be replaced subject to
the requirements of Section 9.14 [Successor Agent].

 

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

 

46

 

4.4.3.                     Change of
Lending Office.

 

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

 

4.5                                 Mandatory
Payments.

 

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

 

4.6                                 Additional
Compensation in Certain Circumstances.

 

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

 

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

 

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

 

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

 

47

 

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

 

and the result of any of the foregoing is to
increase the cost to, reduce the income receivable by, or impose any expense
upon any Lender with respect to this Agreement, or the making, maintenance or
funding of any part of the Loans (or, in the case of any capital adequacy or
similar requirement, to have the effect of reducing the rate of return on any
Lender’s capital, taking into consideration such Lender’s customary policies
with respect to capital adequacy) by an amount which such Lender in its sole
discretion deems to be material, such Lender shall from time to time notify the
Borrower and the Agent of the amount determined in good faith (using any
averaging and attribution methods employed in good faith) by such Lender to be
necessary to compensate such Lender for such increase in cost, reduction of
income, additional expense or reduced rate of return.  Such notice shall set forth in reasonable
detail the basis for such determination, provided however, that any such
determination shall be conclusive and binding absent manifest error.  Such amount shall be due and payable by the
Borrower to such Lender ten (10) Business Days after such notice is given.

 

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

 

4.6.2.                     Indemnity.

 

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

 

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

 

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

 

48

 

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

 

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

 

4.7                                 Notes.

 

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

 

4.8                                 Settlement
Date Procedures.

 

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

 

5.                                       REPRESENTATIONS
AND WARRANTIES

 

5.1                                 Representations
and Warranties.

 

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

 

49

 

5.1.1.                     Organization
and Qualification.

 

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

 

5.1.2.                     Subsidiaries.

 

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

 

5.1.3.                     Power and
Authority.

 

Each Loan Party has full power to enter into,
execute, deliver and carry out this Agreement and the other Loan Documents to
which it is a party, to incur the Indebtedness contemplated by the Loan
Documents and to perform its Obligations under the Loan Documents to which it
is a party, and all such actions have been duly authorized by all necessary
proceedings on its part.

 

5.1.4.                     Validity
and Binding Effect.

 

This Agreement has been duly and validly
executed and delivered by each Loan Party, and each other Loan Document which
any Loan Party is required to execute and deliver on or after the date hereof
will have been duly executed and delivered by such Loan Party on the required
date of delivery of such Loan Document. 
This Agreement and each other Loan Document constitutes, or will
constitute, legal, valid and binding obligations of each Loan Party which is or
will be a party thereto on and after its date of delivery thereof,

 

50

 

enforceable
against such Loan Party in accordance with its terms, except to the extent that
enforceability of any of such Loan Document may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the enforceability
of creditors’ rights generally or limiting the right of specific performance.

 

5.1.5.                     No
Conflict.

 

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

 

5.1.6.                     Litigation.

 

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

 

5.1.7.                     Title to
Properties.

 

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

 

5.1.8.                     Financial
Statements.

 

(i)                                     Historical
Statements.  The Borrower has
delivered to the Agent copies of Hovnanian’s audited consolidated year-end
financial statements for and as of the end of the fiscal year ended October 31,
2005 (the “Annual Statements”) and unaudited consolidated quarter-end financial
statements for and as of the end of the fiscal quarter ended January 31,
2006 (the Annual Statements are also sometimes referred to as the “Historical
Statements”).  The Historical Statements
were compiled from the books and records maintained by Hovnanian’s management,
are correct and complete in all material respects and fairly

 

51

 

represent in
all material respects the consolidated financial condition of Hovnanian and its
Subsidiaries as of their dates and the results of operations for the fiscal
periods then ended and have been prepared in accordance with GAAP consistently
applied.  The Historical Statements
accurately reflect the liabilities in all material respects of Hovnanian and
its Subsidiaries.

 

(ii)                                  Financial
Projections.  The Borrower has delivered
to the Agent and the Lenders financial projections of Hovnanian and its
Subsidiaries for the period ending October 31, 2010 derived from various
assumptions of Hovnanian’s management (the “Financial Projections”).  The Financial Projections represent a
reasonable range of possible results in light of the history of the business,
present and foreseeable conditions and the intentions of Hovnanian’s management
(it being understood that actual results may vary materially from the Financial
Projections).

 

(iii)                               Accuracy
of Financial Statements.  As of the
Closing Date, neither Hovnanian nor any Subsidiary of Hovnanian has any
liabilities, contingent or otherwise, or forward or long-term commitments that
are required by GAAP to be, but are not, disclosed in the Historical Statements
or in the notes thereto, and except as disclosed therein there are no
unrealized or anticipated losses from any commitments of Hovnanian or any
Subsidiary of Hovnanian which may cause a Material Adverse Change.  Except as disclosed on Schedule 5.1.8,
since October 31, 2005, no Material Adverse Change has occurred.

 

5.1.9.                     Use of
Proceeds; Margin Stock.

 

5.1.9.1               General.

 

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

 

5.1.9.2               Margin Stock.

 

None of the Loan Parties engages or intends
to engage principally, or as one of its important activities, in the business
of extending credit for the purpose, immediately, incidentally or ultimately,
of purchasing or carrying margin stock (within the meaning of Regulation
U).  No part of the proceeds of any Loan
has been or will be used, immediately, incidentally or ultimately, to purchase
or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock or to refund Indebtedness originally
incurred for such purpose, or for any purpose which entails a violation of or
which is inconsistent with the provisions of the regulations of the Board of
Governors of the Federal Reserve System. 
None of the Loan Parties holds or intends to hold margin stock in such
amounts that more than 25% of the reasonable value of the assets of such Loan
Party are or will be represented by margin stock.

 

5.1.10.               Full Disclosure.

 

Neither this Agreement nor any other Loan
Document, nor any certificate, statement, agreement or other documents
furnished to the Agent or any Lender in connection herewith or therewith,
contains any untrue statement of a material fact or omits to

 

52

 

state a
material fact necessary in order to make the statements contained herein and
therein, in light of the circumstances under which they were made, not
misleading in any material respect. 
There is no fact known to any Loan Party which materially adversely
affects the business, property, assets, financial condition, results of
operations or business prospects of the Loan Parties taken as a whole which has
not been set forth in this Agreement or in the certificates, statements,
agreements or other documents furnished in writing to the Agent and the Lenders
prior to or at the date hereof in connection with the transactions contemplated
hereby.

 

5.1.11.               Taxes.

 

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

 

5.1.12.               Consents and
Approvals.

 

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

 

5.1.13.               No Event of
Default; Compliance with Instruments.

 

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

 

5.1.14.               Patents,
Trademarks, Copyrights, Licenses, Etc.

 

Each Loan Party owns or possesses all the
material patents, trademarks, service marks, trade names, copyrights, licenses,
registrations, franchises, permits and rights necessary to own and operate its
properties and to carry on its business as presently

 

53

 

conducted and
planned to be conducted by such Loan Party, without known possible, alleged or
actual material conflict with the rights of others.

 

5.1.15.               Insurance.

 

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

 

5.1.16.               Compliance with
Laws.

 

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

 

5.1.17.               Burdensome
Restrictions.

 

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

 

5.1.18.               Investment
Companies; Regulated Entities.

 

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

 

5.1.19.               Plans and
Benefit Arrangements.

 

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

 

54

 

ordinary
course which are not overdue and (iii) have not had asserted against them
any penalty for failure to fulfill the minimum funding requirements of Section 302
of ERISA; and (e) all Plans and Benefit Arrangements have been
administered in material compliance with their terms and applicable Law.

 

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

 

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

 

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

 

5.1.20.               Employment
Matters.

 

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

 

5.1.21.               Environmental
Matters.

 

None of the Loan Parties has received any
Environmental Complaint, including but not limited to those from any Official
Body or private Person alleging that such Loan Party or any prior owner,
operator or occupant of any of the Property is a

 

55

 

potentially
responsible party under the Comprehensive Environmental Response, Cleanup and
Liability Act, 42 U.S.C. § 9601, et  seq., the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901, et  seq. or
any analogous state or local Law, which could reasonably be expected to
constitute a Material Adverse Change and none of the Loan Parties has any
reason to believe that such an Environmental Complaint might be received.  There are no pending or, to any Loan Party’s
knowledge, threatened Environmental Complaints relating to any Loan Party or,
to any Loan Party’s knowledge, any prior owner, operator or occupant of any of
the Properties pertaining to, or arising out of, any Contamination or
violations of Environmental Laws or Required Environmental Permits which could
reasonably be expected to constitute a Material Adverse Change.

 

5.1.22.               Senior Debt
Status.

 

The Obligations of each Loan Party under this
Agreement, the Guaranty Agreement and each of the other Loan Documents to which
it is a party do rank and will rank at least pari  passu in
priority of payment with all other Indebtedness of such Loan Party except
Indebtedness of such Loan Party to the extent secured by Permitted Liens.  There is no Lien upon or with respect to any
of the properties or income of any Loan Party which secures Indebtedness or
other obligations of any Person except for Permitted Liens.

 

5.2                                 Continuation
of Representations.

 

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

 

6.                                       CONDITIONS
OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

 

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

 

6.1                                 First
Loans and Letters of Credit.

 

On the Closing Date:

 

6.1.1.                     Officer’s
Certificate.

 

The representations and warranties of each of
the Loan Parties contained in Section 5 [Representation and Warranties]
and in each of the other Loan Documents shall be true and correct on and as of
the Closing Date with the same effect as though such representations and
warranties had been made on and as of such date (except representations and
warranties which relate solely to an earlier date or time, which
representations and warranties shall be true and correct on and as of the
specific dates or times

 

56

 

referred to
therein), and each of the Loan Parties shall have performed and complied with
all covenants and conditions hereof and thereof, no Event of Default or
Potential Default shall have occurred and be continuing or shall exist; and
there shall be delivered to the Agent for the benefit of each Lender a
certificate of each of Hovnanian and the Borrower, dated the Closing Date and
signed by the Chief Executive Officer, President or Chief Financial Officer of
each of the Loan Parties, to each such effect.

 

6.1.2.                     Incumbency
Certificate.

 

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

 

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

 

(ii)                                  the
names of the officer or officers authorized to sign this Agreement and the
other Loan Documents and the true signatures of such officer or officers and
specifying the Authorized Officers permitted to act on behalf of each Loan
Party for purposes of this Agreement and the true signatures of such officers,
on which the Agent and each Lender may conclusively rely; and

 

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

 

6.1.3.                     Delivery
of Loan Documents.

 

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

 

6.1.4.                     Opinion of
Counsel.

 

There shall be delivered to the Agent for the
benefit of each Lender a written opinion of Peter Reinhart, Esquire, in-house
counsel for the Loan Parties, dated the Closing Date and in form and substance
reasonably satisfactory to the Agent and its counsel.

 

6.1.5.                     Legal
Details.

 

All legal details and proceedings in
connection with the transactions contemplated by this Agreement and the other
Loan Documents shall be in form and substance reasonably satisfactory to the
Agent and counsel for the Agent, and the Agent shall

 

57

 

 

have received
all such other counterpart originals or certified or other copies of such
documents and proceedings in connection with such transactions, in form and
substance reasonably satisfactory to the Agent and said counsel, as the Agent
or said counsel may reasonably request.

 

6.1.6.                     Payment of
Fees.

 

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

 

6.1.7.                     Consents.

 

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

 

6.1.8.                     Officer’s
Certificate Regarding MACs.

 

Since October 31, 2005, no Material
Adverse Change shall have occurred, and there shall have been delivered to the
Agent for the benefit of each Lender a certificate dated the Closing Date and
signed by the Chief Executive Officer, President or Chief Financial Officer of
each Loan Party to each such effect.

 

6.1.9.                     No Actions
or Proceedings.

 

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

 

6.1.10                  Lien Search.

 

The Borrower shall have delivered reasonably
satisfactory results of a lien search to the Agent evidencing no liens on
Hovnanian or the Borrower which are not Permitted Liens.

 

6.2                                 Each
Additional Loan or Letter of Credit.

 

At the time of making any Loans or issuing
any Letters of Credit other than Loans made or Letters of Credit issued on the
Closing Date and after giving effect to the proposed extensions of credit:  the representations and warranties of the
Loan Parties contained in Section 5 [Representations and Warranties] and
in the other Loan Documents shall be true and correct in all material respects
on and as of the date of such additional Loan or Letter of Credit with the same
effect as though such representations and warranties had been made on and as of
such date (except representations and warranties which expressly relate solely
to an earlier date or time, which representations and warranties shall be true
and correct in all material respects on and as of the specific dates or times
referred to therein); no Event of Default or Potential Default

 

58

 

shall have occurred and be
continuing or shall exist; and the Borrower shall have delivered to the Agent a
duly executed and completed Loan Request or application for a Letter of Credit
as the case may be (each such application shall be deemed to be a
representation by the Borrower that the conditions under this Section 6.2
for the issuance of such additional Letter of Credit have been satisfied even
if not so stated in such application).

 

7.                                       COVENANTS

 

7.1                                 Affirmative
Covenants.

 

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

 

7.1.1.                     Preservation
of Existence, Etc.

 

Each Loan Party shall maintain its legal
existence as a corporation, limited partnership or limited liability company
and its license or qualification and good standing in each jurisdiction in
which its ownership or lease of property or the nature of its business makes
such license or qualification necessary, except as otherwise expressly
permitted in Section 7.2.4 [Liquidations, Mergers, Consolidations,
Acquisitions] and except where failure to do so could not reasonably be
expected to constitute a Material Adverse Change with respect to the Borrower
or Hovnanian or with respect to the Loan Parties taken as a whole.

 

7.1.2.                     Payment of
Liabilities, Including Taxes, Etc.

 

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

 

7.1.3.                     Maintenance
of Insurance.

 

Each Loan Party shall insure its properties
and assets against loss or damage by fire and such other insurable hazards as
such assets are commonly insured (including fire, extended coverage, property
damage, workers’ compensation, public

 

59

 

liability,
flood and business interruption insurance) and against other risks (including
errors and omissions) in such amounts as similar properties and assets are
insured by prudent companies in similar circumstances carrying on similar
businesses, and with reputable and financially sound insurers, including
self-insurance to the extent customary.

 

7.1.4.                     Maintenance
of Properties and Leases.

 

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

 

7.1.5.                     Maintenance
of Patents, Trademarks, Etc.

 

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

 

7.1.6.                     Visitation
Rights.

 

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

 

7.1.7.                     Keeping of
Records and Books of Account.

 

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

 

7.1.8.                     Plans and
Benefit Arrangements.

 

The Loan
Parties shall, and shall cause each member of the ERISA Group that is a
Subsidiary to, and shall use its reasonable best efforts to cause each other
member of the ERISA Group to, comply with ERISA, the Internal Revenue Code and
other applicable Laws applicable to Plans and, as to the Borrower, Benefit
Arrangements, except where such failure, alone or in

 

60

 

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

 

7.1.9.                     Compliance
with Laws.

 

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

 

7.1.10.               Use of Proceeds.

 

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

 

7.1.11                  Anti-Terrorism Laws.

 

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

 

7.2                                 Negative
Covenants.

 

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

 

7.2.1.                     Indebtedness.

 

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

 

61

 

7.2.2.                     Liens.

 

Each of the Loan Parties shall not at any
time create, incur, assume or suffer to exist any Lien on any of its property
or assets, tangible or intangible, now owned or hereafter acquired, or agree or
become liable to do so, except
Permitted Liens.

 

7.2.3.                     Loans and
Investments.

 

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

 

7.2.4.                     Liquidations,
Mergers, Consolidations, Acquisitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

62

 

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

 

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

 

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

 

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

 

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

 

7.2.5.                     Dispositions
of Assets or Subsidiaries.

 

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

 

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

 

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

 

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

 

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

 

(v)                                 any
other sale, transfer or lease of assets not included in clauses (i) through
(iv) above provided that (1) after giving effect to such sale the
Loan Parties are in compliance with the covenants under this agreement
(including the financial covenants in Sections 7.2.11 [Minimum ATNW], 7.2.12
[Leverage Ratio], and 7.2.13 [Fixed

 

63

 

Charge
Coverage Ratio]) and no Potential Default or Event of Default, and (2) any
such sale does not constitute all or substantially all of the assets of the
Loan Parties taken as a whole.

 

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

 

7.2.6.1                   The
Loan Parties shall not pay or make Restricted Payments, Restricted Investments
or Investments by Loan Parties in other Loan Parties engaged in Related
Businesses (“Investments in Related Businesses”) from and after January 31,
2001 which exceed in the aggregate the sum of:

 

(i)                                     $45,000,000;

 

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

 

(iii)                               50%
of the proceeds (less costs of issuance) of any issuance or sale of equity,
including Qualified Preferred Equity, of Hovnanian to any Person other than a
Loan Party during all fiscal quarters commencing on February 1, 2001 and
thereafter.

 

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

 

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

 

7.2.7.                     Subsidiaries,
Partnerships and Joint Ventures.

 

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

 

64

 

7.2.8.                     Continuation
of or Change in Business.

 

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

 

7.2.9.                     Plans and
Benefit Arrangements.

 

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

 

7.2.10.               Borrowing Base.

 

At any time that the Investment Grade Period
is not in effect, the Loan Parties shall not permit Senior Homebuilding Indebtedness
minus the face amount of outstanding letters of credit (whether “Letters of
Credit” or not) in respect of which a Loan Party is obligated and which is
issued to guaranty or assure the installation of site improvements on (or
appurtenant to) land owned by a Loan Party to exceed the Borrowing Base at such
time.  Pursuant thereto, the Borrower
shall make (or cause to be made), on the Business Day following the date on
which any such excess is calculated, payments of principal of Senior
Homebuilding Indebtedness sufficient to reduce to zero ($0) on such date any
such excess.

 

7.2.11.              Minimum
CTNW.

 

The Loan Parties shall not permit
Consolidated Tangible Net Worth as of the last day of any fiscal quarter to be
less than the sum of: (i) $1,300,000,000 and (ii) 50% of Hovnanian’s
consolidated net income (calculated and consolidated in accordance with GAAP)
for each fiscal quarter commencing on February 1, 2006 and thereafter in
which net income was earned (as opposed to a net loss), (iii) 50% of the
proceeds (less costs of issuance) of any issuance or sale of equity of
Hovnanian (including Qualified Preferred Equity) to any Person other than a
Loan Party during each fiscal quarter commencing on February 1, 2006 and
thereafter.

 

7.2.12.              Leverage
Ratio.

 

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

 

7.2.13.              Fixed
Charge Coverage  Ratio.

 

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

 

65

 

7.2.14.              Inventory
Limits.

 

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

 

(i)                                     The
Dollar value of Unentitled Land to exceed twenty percent (20%) of the sum of (A) Consolidated
Tangible Net Worth plus (B) the lesser of (i) 50% of the principal
amount of the Subordinated Debt, or (ii) $500,000,000, as calculated as of
the end of each fiscal quarter;

 

(ii)                                  The
Dollar value of Finished Lots and Land under Development plus Unentitled Land
to exceed 1.25 times the sum of (A) Consolidated Tangible Net Worth plus (B) the
lesser of (i) 50% of the principal amount of the Subordinated Debt, or (ii) $500,000,000,
as calculated as of the end of each fiscal quarter; or

 

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

 

7.2.15.               Fiscal Year.

 

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

 

7.2.16.               Changes in
Subordinated Debt Documents.

 

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

 

7.3                                 Reporting
Requirements.

 

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

 

66

 

7.3.1.                     Quarterly
Financial Statements.

 

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

 

7.3.2.                     Annual
Financial Statements.

 

As soon as available and in any event within
ninety (90) days after the end of each fiscal year of Hovnanian, financial
statements of Hovnanian consisting of a consolidated balance sheet as of the
end of such fiscal year, and related consolidated statements of income, stockholders’
equity and cash flows for the fiscal year then ended, all in reasonable detail
and setting forth in comparative form the financial statements as of the end of
and for the preceding fiscal year, and certified by independent certified
public accountants of nationally recognized standing reasonably satisfactory to
the Agent.  The certificate or report of
accountants shall be free of qualifications (other than any consistency
qualification that may result from a change in the method used to prepare the
financial statements as to which such accountants concur) and shall not
indicate the occurrence or existence of any event, condition or contingency
which would materially impair the prospect of payment or performance of any
covenant, agreement or duty of any Loan Party under any of the Loan Documents
or cause or constitute an Event of Default. 
The Loan Parties will be deemed to have complied with the delivery
requirements of this Section 7.3.2 if within ninety (90) days after the
end of Hovnanian’s fiscal year, the Borrower delivers to the Agent a copy of
Hovnanian’s Annual Report and Form 10-K as filed with the SEC and the
financial statements and separately delivers the above-referenced certification
of public accountants.

 

7.3.3.                     Certificates
of the Borrower.

 

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

 

(a)                                  a certificate of the
Borrower signed by the Chief Executive Officer, President, Treasurer or Chief
Financial Officer or principal accounting officer of the Borrower, in the form
of Exhibit 7.3.3.1 (each a “Compliance Certificate”), to the effect
that, except as described pursuant to Section 7.3.3.2 [Borrowing Base
Certificate], (i) the

 

67

 

representations and warranties of the Borrower contained in Section 5.1
[Representations and Warranties] and in the other Loan Documents are true and
correct in all material respects on and as of the date of such certificate with
the same effect as though such representations and warranties had been made on
and as of such date (except representations and warranties which expressly relate
solely to an earlier date or time), (ii) no Event of Default or Potential
Default exists and is continuing on the date of such certificate and (iii) containing
calculations in sufficient detail to demonstrate compliance as of the date of
such financial statements with all financial covenants contained in Section 7.2
[Negative Covenants].

 

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

 

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

 

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

 

7.3.3.2               Borrowing
Base Certificate.

 

As soon as available, but not later than
fifty-five (55) days after the end of each month, a Borrowing Base Certificate
as of the end of such month, appropriately completed, executed and delivered by
an Authorized Officer, together with a certificate of the Borrower signed by
the Chief Executive Officer, President, Treasurer or Chief Financial Officer or
principal accounting officer of the Borrower, in the form of Exhibit 7.3.3.2,
to the effect that, except as described pursuant to Section 7.3.4 [Notice of
Default], no Event of Default or Potential Default exists and is continuing on
the date of such Borrowing Base Certificate; provided, however,
the Borrowing Base Certificate delivered with respect to the month of October,
in any year, may be in draft form, subject to change as a result of the
year-end audit, but in no event shall be executed and delivered in final form
later than ninety (90) days after the end of such fiscal year.  The Borrower shall be required to deliver a
Borrowing Base Certificate as of the end of a month even if the Investment
Grade Period is in effect as of such month-end.

 

7.3.4.                     Notice of
Default.

 

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

 

68

 

7.3.5.                     Notice of
Litigation.

 

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

 

7.3.6.                     Notice of
Change in Debt Rating.

 

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

 

7.3.7.                     Budgets,
Forecasts, Other Reports and Information.

 

Promptly upon their becoming available to any
Loan Party:

 

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

 

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

 

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

 

7.3.8.                     Notices
Regarding Plans and Benefit Arrangements.

 

7.3.8.1               Certain Events.

 

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

 

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

 

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

 

69

 

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

 

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

 

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

 

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

 

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

 

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

 

7.3.8.2               Notices of
Involuntary Termination and Annual Reports.

 

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

 

7.3.8.3               Notice of
Voluntary Termination.

 

Where a termination of any Plan would result
in a Material Adverse Change, promptly upon the filing thereof, copies of any Form 5310,
or any successor or equivalent form to Form 5310, filed with the PBGC in
connection with the termination of any Plan.

 

70

 

8.                                       DEFAULT

 

8.1                                 Events
of Default.

 

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

 

8.1.1.                     Payments
Under Loan Documents.

 

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

 

8.1.2.                     Breach of
Warranty.

 

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

 

8.1.3.                     Breach of
Certain Negative Covenants.

 

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

 

8.1.4.                     Breach of
Other Covenants.

 

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

 

8.1.5.                     Defaults
in Other Agreements or Indebtedness.

 

Either (i) a default or event of default
shall occur at any time under the terms of any other agreement involving
borrowed money or the extension of credit or any other Indebtedness (excluding
any surety bonds) under which any Loan Party may be obligated as a borrower or
guarantor in excess of $25,000,000in the aggregate, and such breach, default or
event of default consists of the failure to pay (beyond any period of grace
permitted with respect thereto, whether waived or not) any Indebtedness when
due (whether at

 

71

 

stated
maturity, by acceleration or otherwise) or if such breach or default permits or
causes the acceleration of any Indebtedness (whether or not such right shall
have been waived) or the termination of any commitment to lend, or (ii) draws
shall be made on surety bonds in excess of $25,000,000in the aggregate issued
on behalf of any Loan Party and such Loan Party shall fail to reimburse the
providers thereof within 60 days after the date of the applicable draws;

 

8.1.6.                     Final
Judgments or Orders.

 

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

 

8.1.7.                     Loan
Document Unenforceable.

 

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

 

8.1.8.                     Uninsured
Losses; Proceedings Against Assets.

 

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

 

8.1.9.                     Notice of
Lien or Assessment.

 

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

 

8.1.10.               Insolvency.

 

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

 

72

 

8.1.11.               Events Relating
to Plans and Benefit Arrangements.

 

Any of the following occurs:  (i) any Reportable Event with respect to
a Plan, which the Agent reasonably determines in good faith constitutes grounds
for the termination of any Plan by the PBGC or the appointment of a trustee to
administer or liquidate any Plan, shall have occurred and be continuing; (ii) proceedings
shall have been instituted or other action taken to terminate any Plan, or a
termination notice shall have been filed with respect to any Plan; (iii) a
trustee shall be appointed to administer or liquidate any Plan; (iv) the
PBGC shall give notice of its intent to institute proceedings to terminate any
Plan or Plans or to appoint a trustee to administer or liquidate any Plan; and,
in the case of the occurrence of (i), (ii), (iii) or (iv) above, the
Agent reasonably determines in good faith that the amount of any Loan Party’s
liability is likely to result in a Material Adverse Change; (v) any “accumulated
funding deficiency” (as defined in Section 302 of ERISA) shall exist with
respect to any Plan, or any Lien in favor of the PBGC or a Plan shall arise on
the assets of the Borrower or any other member of the ERISA Group,  (vi) any Loan Party or any other member
of the ERISA Group shall make any amendment to a Plan with respect to which
security is required under Section 307 of ERISA; (vii) any Loan Party
or any other member of the ERISA Group shall incur any liability in connection
with a withdrawal  from a Multiemployer
Plan; (viii) any Loan Party or any other member of the ERISA Group shall
withdraw under Section 4063 of ERISA (or shall be deemed under Section 4062(e) of
ERISA to withdraw) from a Plan; or (ix) any applicable Law is adopted,
changed or interpreted by any Official Body with respect to or otherwise
affecting one or more Plans, Multiemployer Plans or Benefit Arrangements and,
with respect to any of the events specified in (v), (vi), (vii), (viii) or
(ix), the Agent reasonably determines in good faith that any such occurrence,
together with all other such events, would be reasonably likely to result in a
Material Adverse Change;

 

8.1.13.               Change of
Control.

 

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

 

8.1.14.               Involuntary
Proceedings.

 

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

 

73

 

effect for a
period of sixty (60) consecutive days or such court shall enter a decree or
order granting any of the relief sought in such proceeding; or

 

8.1.15.               Voluntary
Proceedings.

 

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

 

8.2                                 Consequences
of Event of Default.

 

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

 

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

 

8.2.2.                     Bankruptcy,
Insolvency or Reorganization Proceedings.

 

If an Event of Default specified under Section 8.1.14
[Involuntary Proceedings] or 8.1.15 [Voluntary Proceedings] shall occur, the
Lenders shall be under no further obligations to make Loans or issue Letters of
Credit hereunder and the unpaid principal amount of the Loans then outstanding
and all interest accrued thereon, any unpaid fees and all other Indebtedness of
the Borrower to the Lenders hereunder and thereunder shall be immediately due
and payable, without presentment, demand, protest or notice of any kind, all of

 

74

 

which are
hereby expressly waived and the Borrower shall upon such occurrence, deposit in
an interest-bearing account with the Agent, as cash collateral for its
Obligations under the Loan Documents, an amount equal to the maximum amount
currently or at any time thereafter available to be drawn on all outstanding
Letters of Credit, and the Borrower hereby pledges to the Agent and the
Lenders, and grants to the Agent and the Lenders a security interest in, all
such cash as security for such Obligations; and

 

8.2.3.                     Set-off.

 

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

 

8.2.4.                     Suits,
Actions, Proceedings.

 

If an Event of Default shall occur and be
continuing, and whether or not the Agent shall have accelerated the maturity of
Loans pursuant to any of the foregoing provisions of this Section 8.2
[Consequences of Event of Default], the Agent or any Lender, if owed any amount
with respect to the Loans, may proceed to protect and enforce its rights by
suit in equity, action at law and/or other appropriate proceeding, whether for
the specific performance of any covenant or agreement contained in this
Agreement or the other Loan Documents, including as permitted by applicable Law
the obtaining of the ex  parte appointment of a receiver, and, if
such amount shall have become due, by declaration or otherwise, proceed to
enforce the payment thereof or any other legal or equitable right of the Agent
or such Lender; and

 

8.2.5.                     Application
of Proceeds.

 

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

 

(i)                                     first,
to reimburse the Agent and the Lenders for out-of-pocket costs, expenses and
disbursements, including reasonable attorneys’ and paralegals’

 

75

 

fees and legal
expenses, incurred by the Agent or the Lenders in connection with collection of
any Obligations of any of the Loan Parties under any of the Loan Documents;

 

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

 

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

 

8.2.6.                     Other
Rights and Remedies.

 

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

 

9.                                       THE
AGENT

 

9.1                                 Appointment.

 

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

 

9.2                                 Delegation
of Duties.

 

The Agent may perform any of its duties
hereunder by or through agents or employees (provided such delegation
does not constitute a relinquishment of its duties as Agent) and, subject to Sections 9.5
[Reimbursement and Indemnification of Agent by the Borrower] and 9.6
[Exculpatory Provisions; Limitation of Liability], shall be entitled to engage
and pay for the advice or services of any attorneys, accountants or other
experts concerning all matters pertaining to its duties hereunder and to rely
upon any advice so obtained.

 

9.3                                 Nature
of Duties; Independent Credit Investigation.

 

The Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement and no
implied covenants, functions, responsibilities, duties, obligations, or
liabilities shall be read into this Agreement or otherwise exist.  The duties of the Agent shall be mechanical
and administrative in nature; the Agent shall not have by reason of this Agreement
a

 

76

 

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

 

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

 

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

 

9.5                                 Reimbursement
and Indemnification of Agent by the Borrower.

 

The Borrower unconditionally agrees to pay or
reimburse the Agent, its Affiliates and their respective directors, officers,
employees, agents and advisors and hold such Persons harmless against (a) liability
for the payment of all reasonable out-of-pocket costs, expenses and
disbursements, including fees and expenses of counsel (including the allocated
costs of staff counsel), incurred by such Persons (i) in connection with
the development, negotiation, preparation, printing, execution, administration,
syndication, interpretation and performance of this Agreement and the other
Loan Documents, (ii) relating to any requested amendments, waivers or
consents pursuant to the provisions hereof, (iii) in connection with the
enforcement of this Agreement or any other Loan Document or collection of
amounts due hereunder or thereunder or the proof and allowability of any claim
arising under this Agreement or any other

 

77

 

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

 

9.6                                 Exculpatory
Provisions; Limitation of Liability.

 

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

 

78

 

suspected to exist in its
favor.  The Agent shall promptly
distribute to each Lender copies of financial statements delivered by the
Borrower pursuant to Section 7.3.1 and Section 7.3.2 and the
Borrowing Base Certificates delivered pursuant to Section 7.3.3.2.  Each Lender agrees that, except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Agent hereunder or given to the Agent for the account of or with copies
for the Lenders, the Agent and each of its directors, officers, employees,
agents, attorneys or Affiliates shall not have any duty or responsibility to
provide any Lender with credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Loan Parties which may come into the possession of the
Agent or any of its directors, officers, employees, agents, attorneys or
Affiliates.

 

9.7                                 Reimbursement
and Indemnification of Agent by Lenders.

 

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

 

9.8                                 Reliance
by Agent.

 

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

 

79

 

9.9                                 Notice
of Default.

 

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

 

9.10                           Notices.

 

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

 

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

 

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

 

9.12                           Holders
of Notes.

 

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

 

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9.13                           Equalization
of Lenders.

 

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

 

9.14                           Successor
Agent.

 

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

 

81

 

9.15                           Agent’s
Fee.

 

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

 

9.16                           Availability
of Funds.

 

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

 

9.17                           Calculations.

 

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

 

9.18                           Beneficiaries.

 

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

 

82

 

10.                                 MISCELLANEOUS

 

10.1                           Modifications,
Amendments or Waivers.

 

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

 

10.1.1.               Increase of
Commitments.

 

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

 

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

 

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

 

10.1.3.               Release of
Borrower.

 

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

 

10.1.4.               Miscellaneous

 

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

 

83

 

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

 

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

 

10.2                           No
Implied Waivers; Cumulative Remedies; Writing Required.

 

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

 

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

 

The Borrower agrees unconditionally upon
demand to pay or reimburse to each Lender (other than the Agent, as to which
the Borrower’s Obligations are set forth in Section 9.5 [Reimbursement and
Indemnification of Agent by the Borrower]) and its Affiliates, and their
respective directors, officers, employees, agents and advisors and to save such
Persons harmless against (i) liability for the payment of all reasonable out-of-pocket
costs, expenses and disbursements (including fees and expenses of counsel
(including allocated costs of staff counsel) for each  such Person except with respect to (a) and
(b) below), incurred by such Person (a) in connection with the
administration and interpretation of this Agreement, and other instruments and
documents to be delivered hereunder, (b) relating to any amendments,
waivers or consents pursuant to the provisions hereof, (c) in connection
with the enforcement of this Agreement or any other Loan Document, or
collection of amounts due hereunder or thereunder or the proof and allowability
of any claim arising under this Agreement or any other Loan Document, whether
in bankruptcy or receivership proceedings or otherwise, and (d) in any workout
or restructuring or in connection with the protection, preservation, exercise
or enforcement of any of the terms hereof or of any rights hereunder or under
any other Loan Document or in connection with any foreclosure, collection or
bankruptcy proceedings, or (ii) all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by or
asserted against such Person, in its capacity as such, in any way relating to
or arising out of this Agreement or any other Loan Documents or any action
taken or omitted by such Person

 

84

 

hereunder or thereunder, provided
that the Borrower shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements (A) if the same results from such Person’s gross
negligence or willful misconduct or from the gross negligence or willful
misconduct of any of such Person’s Affiliates, directors, officers, employees,
agents or advisors, or (B) if the Borrower was not given notice of the
subject claim and the opportunity to participate in the defense thereof, at its
expense (except that the Borrower shall remain liable to the extent such
failure to give notice does not result in a loss to the Borrower), or (C) if
the same results from a compromise or settlement agreement entered into without
the consent of the Borrower, which shall not be unreasonably withheld. The
Borrower agrees unconditionally to pay all stamp, document, transfer, recording
or filing taxes or fees and similar impositions now or hereafter determined by
the Agent or any Lender to be payable in connection with this Agreement or any
other Loan Document, and the Borrower agrees unconditionally to save the Agent
and the Lenders harmless from and against any and all present or future claims,
liabilities or losses with respect to or resulting from any omission to pay or
delay in paying any such taxes, fees or impositions.

 

10.4                           Holidays.

 

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

 

10.5                           Funding
by Branch, Subsidiary or Affiliate.

 

10.5.1.               Notional Funding.

 

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

 

85

 

10.5.2.               Actual Funding.

 

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

 

10.6                           Notices.

 

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

 

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

 

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

 

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

 

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

 

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

 

86

 

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

 

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

 

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

 

10.7                           Severability.

 

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

 

10.8                           Governing
Law.

 

Each Letter of Credit and Section 2.10
[Letter of Credit Subfacility] shall be subject to the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500, as the same may be revised or amended from
time to time, and to the extent not inconsistent therewith, the internal laws
of the State of New Jersey without regard to its conflict of laws principles,
and the balance of this Agreement shall be deemed to be a contract under the
Laws of the State of New Jersey and for all purposes shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
Jersey without regard to its conflict of laws principles.

 

10.9                           Prior
Understanding.

 

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

 

10.10                     Duration;
Survival.

 

All representations and warranties of the
Borrower and Hovnanian contained herein or made in connection herewith shall
survive the making of Loans and issuance of Letters of Credit and shall not be
waived by the execution and delivery of this Agreement, any investigation by the
Agent or the Lenders, the making of Loans, issuance of Letters of Credit, or
payment in full of the Loans.  All
covenants and agreements of the Borrower and Hovnanian contained in
Sections 7.1 [Affirmative Covenants], 7.2 [Negative Covenants] and 7.3 [Reporting
Requirements] herein shall continue in full force and effect from and after the
date hereof so long as the Borrower may borrow or request Letters of Credit
hereunder and until termination of the Commitments and payment in full of the
Loans and expiration or termination of all Letters of

 

87

 

Credit.  All covenants and agreements of the Borrower
contained herein relating to the payment of principal, interest, premiums,
additional compensation or expenses and indemnification, including those set
forth in Section 4 [Payments] and Sections 9.5 [Reimbursement and
Indemnification of Agent by the Borrower], 9.7 [Reimbursement and
Indemnification of Agent by Lenders] and 10.3 [Reimbursement and Indemnification
of Lenders by Borrower; Taxes], shall survive payment in full of the Loans,
expiration or termination of the Letters of Credit and termination of the
Commitments.

 

10.11                     Successors
and Assigns.

 

10.11.1            This Agreement shall
be binding upon and shall inure to the benefit of the Lenders, the Agent, the
Loan Parties  a party hereto  and their respective successors and assigns,
except that none of the Loan Parties a party hereto may assign or transfer any
of its rights and obligations hereunder or any interest herein.  Each Lender may, at its own cost, make
assignments of or sell participations in all or any part of its Commitments and
the Loans made by it to one or more banks or other entities, subject to the
consent of the Borrower and the Agent with respect to any assignee, such
consent not to be unreasonably withheld or delayed provided that (1) no
consent of the Borrower shall be required (A) if an Event of Default
exists and is continuing, (B) in the case of an assignment by a Lender to
an Affiliate of such Lender, or (C) in respect of the sale of a
participation, (2) any assignment by a Lender to a Person other than an
Affiliate of such Lender may not be made in amounts less than the lesser of
$10,000,000 or the amount of the assigning Lender’s Commitment and (3) no
consent of the Agent shall be required in the case of an assignment by a Lender
to an Affiliate of such Lender.  In the
case of an assignment, upon receipt by the Agent of the Assignment and
Assumption Agreement, the assignee shall have, to the extent of such assignment
(unless otherwise provided therein), the same rights, benefits and obligations
as it would have if it had been a signatory Lender hereunder, the Commitments
shall be adjusted accordingly, and upon surrender of any Note subject to such
assignment, the Borrower shall execute and deliver a new Note to the assignee,
if such assignee requests such a Note in an amount equal to the amount of the
Revolving Credit Commitment assumed by it and a new Revolving Credit Note to
the assigning Lender, if the assigning Lender requests such a Note, in an
amount equal to the Revolving Credit Commitment or retained by it
hereunder.  Any Lender which assigns any
or all of its Commitment or Loans to a Person other than an Affiliate of such
Lender shall pay to the Agent a service fee in the amount of $3,500 for each
assignment.  In the case of a
participation, the participant shall only have the rights specified in Section 8.2.3
[Set-off] (the participant’s rights against such Lender in respect of such participation
to be those set forth in the agreement executed by such Lender in favor of the
participant relating thereto and not to include any voting rights except with
respect to changes of the type referenced in Sections 10.1.1 [Increase of
Commitment, Extension of Expiration Date], or 10.1.2 [Extension of Payment;
Reduction of Principal, Interest or Fees; Modification of Terms of Payment]),
all of such Lender’s obligations under this Agreement or any other Loan
Document shall remain unchanged, and all amounts payable by any Loan Party
hereunder or thereunder shall be determined as if such Lender had not sold such
participation.

 

10.11.2            Each Lender or
assignee or participant of a Lender that is not incorporated under the laws of
the United States of America or a state thereof (and, upon the written request
of the Agent, each other Lender or assignee or participant of a

 

88

 

Lender) shall
deliver to the Borrower and the Agent a Withholding Certificate as described in
Section 10.17 [Tax Withholding Clause] relating to federal income tax
withholding.  Each Lender may furnish any
publicly available information concerning Hovnanian or any Loan Party and any
other information concerning Hovnanian or any Loan Party in the possession of
such Lender from time to time to assignees and participants (including
prospective assignees or participants), provided that such assignees and
participants agree to be bound by the provisions of Section 10.12
[Confidentiality].

 

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

 

10.12                     Confidentiality.

 

10.12.1.  General.

 

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

 

10.12.2.         Sharing Information
With Affiliates of the Lenders.

 

Each Loan
Party a party hereto acknowledges that from time to time financial advisory,
investment banking and other services (including the provision of swaps,
derivatives, securitizations or other financial products) may be offered or
provided to the Borrower or one or more of its Affiliates (in connection with this
Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each of the Loan Parties a party hereto hereby
authorizes each Lender to share any information delivered to such

 

89

 

 

Lender by such
Loan Party and its Subsidiaries pursuant to this Agreement, or in connection
with the decision of such Lender to enter into this Agreement, to any such
Subsidiary or Affiliate of such Lender, it being understood that any such
Subsidiary or Affiliate of any Lender receiving such information shall be bound
by the provisions of Section 10.12 [Confidentiality] as if it were a
Lender hereunder.  Such Authorization
shall survive the repayment of the Loans and other Obligations and the
termination of the Commitments.

 

10.13                     Counterparts.

 

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

 

10.14                     Agent’s or
Lender’s Consent.

 

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

 

10.15                     Exceptions.

 

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

 

10.16                 CONSENT TO
FORUM; WAIVER OF JURY TRIAL.

 

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

 

90

 

RELATED
TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR ANY COLLATERAL TO THE FULL EXTENT
PERMITTED BY LAW.

 

10.17       Certifications
From Lenders and Participants.

 

10.17.1            Tax Withholding Clause.

 

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

 

91

 

10.17.2    USA PATRIOT Act.

 

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

 

10.18                     Joinder of
Guarantors.

 

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

 

10.19                     Concerning
Agent Terms.

 

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

 

10.20                     Ratification
of Notes and Loan Documents and Existing Obligations.

 

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

 

10.21       No
Reliance on Agent’s Customer Identification Program.

 

Each Lender acknowledges and agrees that
neither such Lender, nor any of its Affiliates, participants or assignees, may
rely on the Agent to carry out such Lender’s, Affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or

 

 

92

 

imposed under or pursuant to
the USA Patriot Act or the regulations thereunder, including the regulations
contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP
Regulations”), or any other Anti-Terrorism Law, including any programs
involving any of the following items relating to or in connection with any of
the Loan Parties, their Affiliates or their agents, the Loan Documents or the
transactions hereunder or contemplated hereby: (1) any identity
verification procedures, (2) any recordkeeping, (3) comparisons with
government lists, (4) customer notices or (5) other procedures
required under the CIP Regulations or such other Laws.

 

[SIGNATURES
CONTINUED ON NEXT PAGE]

 

93

 

 

[SIGNATURE
PAGE 1 OF 28 TO THE CREDIT AGREEMENT]

 

 

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

 

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  J. Larry
  Sorsby

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice
  President and Chief

  Financial Officer

  
					

 

94

 

[SIGNATURE
PAGE 2 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION

  
	
   

  	
  as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

95

 

[SIGNATURE
PAGE 3 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  WACHOVIA
  BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

96

 

[SIGNATURE
PAGE 4 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

97

 

[SIGNATURE
PAGE 5 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

98

 

[SIGNATURE
PAGE 6 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  THE
  ROYAL BANK OF SCOTLAND

  plc

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

99

 

[SIGNATURE
PAGE 7 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

100

 

[SIGNATURE
PAGE 8 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  GUARANTY
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

101

 

[SIGNATURE
PAGE 9 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  SUNTRUST
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

102

 

[SIGNATURE
PAGE 10 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

103

 

[SIGNATURE
PAGE 11 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  BNP
  PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  and

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

104

 

[SIGNATURE
PAGE 12 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  CALYON
  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  and

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

105

 

[SIGNATURE
PAGE 13 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  COMERICA
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

106

 

[SIGNATURE
PAGE 14 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  WASHINGTON
  MUTUAL BANK, FA

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

107

 

[SIGNATURE
PAGE 15 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  NATIONAL
  CITY BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

108

 

[SIGNATURE
PAGE 16 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  CITICORP
  NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

109

 

[SIGNATURE
PAGE 17 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  SOVEREIGN
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

110

 

[SIGNATURE
PAGE 18 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  AMSOUTH
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

111

 

[SIGNATURE
PAGE 19 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  UNION
  BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

112

 

[SIGNATURE
PAGE 20 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  CREDIT SUISSE,
  CAYMAN ISLANDS

  BRANCH

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

113

 

[SIGNATURE
PAGE 21 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  UBS LOAN
  FINANCE LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

114

 

[SIGNATURE
PAGE 22 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  LASALLE
  BANK NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

115

 

[SIGNATURE
PAGE 23 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  CITY
  NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

116

 

[SIGNATURE
PAGE 24 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  CALIFORNIA
  BANK & TRUST

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

117

 

[SIGNATURE
PAGE 25 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
   

  	
  COMPASS
  BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

118

 

[SIGNATURE
PAGE 26 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  NATEXIS
  BANQUES POPULAIRES

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

119

 

[SIGNATURE
PAGE 27 OF 28 TO
THE CREDIT AGREEMENT]

 

 

	
   

  	
  NORTH
  FORK BANK

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

120

 

[SIGNATURE
PAGE 28 OF 28 TO THE CREDIT AGREEMENT]

 

 

	
  ACCEPTED AND
  AGREED:

  
	
   

  
	
  HOVNANIAN
  ENTERPRISES, INC.

  
	
  as a Guarantor

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  J. Larry Sorsby

  
	
   

  	
   

  
	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  
				

 

121

 

 

SCHEDULE 1.1(A)(1)

 

PRICING
GRID—

VARIABLE
PRICING AND FEES

 

(expressed in
basis points)

 

	
  Pricing Level

  	
   

  	
  Debt Rating

  	
   

  	
  Leverage Ratio

  	
   

  	
  Euro-Rate Spread

  	
   

  	
  Commitment Fee

  	
   

  
	
  I

  	
   

  	
  BBB/Baa2

  	
   

  	
  <
  0.75x

  	
   

  	
  65.0 bps

  	
   

  	
  15.0 bps

  	
   

  
	
  II

  	
   

  	
  BBB-/Baa3

  	
   

  	
  > 0.75x -
  < 1.00x

  	
   

  	
  80.0 bps

  	
   

  	
  17.5 bps

  	
   

  
	
  III

  	
   

  	
  BB+/Ba1

  	
   

  	
  >1.00x - <
  1.25x

  	
   

  	
  110.0 bps

  	
   

  	
  20.0 bps

  	
   

  
	
  IV

  	
   

  	
  BB/Ba2

  	
   

  	
  > 1.25x -
  < 1.75x

  	
   

  	
  125.0 bps

  	
   

  	
  22.5 bps

  	
   

  
	
  V

  	
   

  	
  BB-/Ba3

  	
   

  	
  > 1.75x

  	
   

  	
  150.0 bps

  	
   

  	
  25.0 bps

  	
   

  

 

For purposes of this Pricing Grid:     

 

A.                                    Determining
the Debt Rating:          

 

(1)                                  if
fewer than two of the Qualified Rating Agencies have issued a rating of the
Hovnanian’s senior unsecured long-term debt, no Debt Rating shall be deemed to
exist;

 

(2)                                  if
two of the Qualified Rating Agencies have rated Hovnanian’s senior unsecured
long-term debt and there exists a Split in Ratings, the Debt Rating of the
Borrower shall be:   

 

(a)                                        the
higher rating (i.e., lower pricing) if such ratings are one level apart, and

 

(b)                                       one
level lower than the higher rating if they are more than one level apart, and

 

(3)                                  if
all three of the Qualified Rating Agencies have rated Hovnanian’s senior
unsecured long-term debt and there exists a Split in Ratings, then:          

 

(a)                                        if
two of such three ratings are at the same level and the third rating is at
another level, the third rating shall be disregarded, and

 

(b)                                       if
all three ratings are at different levels, the highest and lowest rating shall
be disregarded.

 

B.                                    Determining
the Pricing Level:       

 

In the event
the Leverage Ratio and the Debt Rating of the Borrower are not at the same
Pricing Level, then the Applicable Margin and the Applicable Commitment Fee
Rate shall be at (a) the higher level (i.e., lower pricing) if they are
only one level apart and (b) one level lower than the higher level if they
are more than one level apart.

 

 

If fewer than
two of the Qualified Rating Agencies have issued a rating of the Hovnanian’s
senior unsecured long-term debt (so that no Debt Rating shall be deemed to
exist), the pricing level shall be determined solely by the Leverage Ratio.

 

The Applicable Margin and the
Applicable Commitment Fee Rate shall be determined on the Closing Date based on
the Leverage Ratio computed as of January 31, 2006 pursuant to a
Compliance Certificate to be delivered on or prior to the Closing Date and on
the Debt Rating as of the Closing Date.

 

The Applicable Margin and the
Applicable Commitment Fee Rate shall be subsequently adjusted (i) as a
result of any change in the Debt Rating on the effective date of such change (provided
that any reduction in the Applicable Margin and the Applicable Commitment Fee
Rate resulting from a change in the Debt Rating shall not occur until the
Borrower has notified the  Agent of such
change), and (ii) as a result of any change in the Leverage Ratio for any
quarter end on the date on which the Compliance Certificate for such quarter
end is due to be delivered under Section 7.3.3.

 

2

 

SCHEDULE 1.1(A)(2)

AUTHORIZED OFFICERS AS OF THE CLOSING DATE

 

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

 

Peter
Reinhart, Senior Vice President and General Counsel

 

Paul
Buchanan, Senior Vice President and Corporate Controller

 

Kevin
C. Hake, Senior Vice President and Treasurer

 

Brad
O’Connor, Vice President and Associate Corporate Controller

 

Nancy
Marrazzo, Assistant Vice President and Assistant Treasurer

 

 

SCHEDULE
1.1(B)

 

COMMITMENTS
OF LENDERS AND ADDRESSES FOR NOTICES

 

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

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name (also Agent):

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PNC Bank, National Association

  Address for Notices:

  Two Tower Center, 18th Floor

  E. Brunswick, NJ 08816

  Attention:              Douglas
  G. Paul

  Telephone:            (732)
  220-3566

  Telecopy:              (732)
  220-3744

   

  Address of Lending
  Office:

  PNC Firstside Center

  500 First Avenue, 4th Floor

  Pittsburgh, PA 15219

  Attention:              Rini
  Davis

  Telephone:            (412)
  762-7638

  Telecopy:              (412)
  762-8672

  	
   

  	
  $

  	
  98,000,000.00

  	
   

  	
  6.533333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending
  Office:

  901 Main Street

  14th Floor

  Dallas, TX 75202

  Attention:              Eldred
  Sholars

  Telephone:            (214)
  209-3044

  Telecopy:              (214)
  290-9429

  	
   

  	
  $

  	
  125,000,000.00

  	
   

  	
  8.333333333

  	
  %

  

 

1

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wachovia
  Bank, National Association

  Address for Notices:

  Commercial
  Real Estate Group

  2840 Morris
  Avenue; 3rd Floor

  Union, NJ
  07083

  Attention:              John Powers

  Telephone:            (908) 624-2857

  Telecopy:              (908) 624-2870

   

  Address of Lending Office:

  Commercial
  Real Estate Group

  2840 Morris
  Avenue; 3rd Floor

  Union, NJ
  07083

  Attention:              John Powers

  Telephone:            (908) 624-2857

  Telecopy:              (908) 624-2870

  	
   

  	
  $

  	
  125,000,000.00

  	
   

  	
  8.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  277 Park
  Avenue, Floor 3

  New York, NY 10172

  Attention:              Donald Shokrian

  Telephone:            (212) 622-2166

  Telecopy:              (646) 534-0574

  	
   

  	
  $

  	
  96,500,000.00

  	
   

  	
  6.433333333

  	
  %

  

 

2

 

	
  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, New York 10178

  Attention:              David
  Apps

  Telephone:            (212)
  401-3745

  Telecopy:              (212)
  401-3456

   

  Address of Lending Office:

  101 Park Avenue

  New York, New York 10178

  Attention:              Devia
  Anand

  Telephone:            (212)
  401-3552

  Telecopy:              (212)
  401-3456

  	
   

  	
  $

  	
  96,500,000.00

  	
   

  	
  6.433333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  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

  	
   

  	
  $

  	
  73,000,000.00

  	
   

  	
  4.866666667

  	
  %

  

 

3

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SunTrust Bank

  Address for Notices:

  8245 Boone Boulevard

  Suite 820

  Vienna, VA 22182

  Attention:              John
  Wendler

  Telephone:            (703)
  442-1563

  Telecopy:              (703)
  442-1570

   

  Address of Lending Office:

  10710 Midlothian Turnpike,

  Richmond, VA 23235

  Attn: DeCar Jeter

  Telephone:            804-594-1072

  Telecopy:              804-594-1139

  	
   

  	
  $

  	
  73,000,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guaranty Bank

  Address for Notices:

  8333 Douglas Avenue

  Dallas, Texas 75225

  Attention:              Dustin
  Ortmann

  Telephone:            (214)
  360-2672

  Telecopy:              (214)
  360-4892

   

  Address of Lending Office:

  8333 Douglas Avenue

  Dallas, Texas 75225

  Attention:              Juanita
  Vidal

  Telephone:            (214)
  360-1632

  Telecopy:              (214)
  360-4852

  	
   

  	
  $

  	
  57,000,000.00

  	
   

  	
  3.800000000

  	
  %

  

 

4

 

	
  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

   

  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

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  787 Seventh Avenue

  New York, NY 10019

  Attention:              Wei
  Monaghan

  Telephone:            (212)
  841-2980

  Telecopy:              (212)
  841-2745

  	
   

  	
  $

  	
  73,000,000.00

  	
   

  	
  4.866666667

  	
  %

  

 

5

 

	
  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

   

  Address of Lending Office:

  2200 Ross Avenue, Suite 4400 West

  Dallas, TX 75201

  Attention:              Darren
  Abrams

  Telephone:            (214)
  220-2312

  Telecopy:              (214)
  220-2323

   

  	
   

  	
  $

  	
  73,000,000.00

  	
   

  	
  4.866666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  500 Woodward Avenue

  MC 3256

  Detroit, MI 48226

  Attention:              Keshia
  Boone

  Telephone:            (313)
  222-9284

  Telecopy:              (313)
  222-3697

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  

 

6

 

	
  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

   

  Address of Lending Office:

  620 W. Germantown Pike

  Suite 200

  Plymouth Meeting, PA

  Attention:              Chris
  Heckman

  Telephone:            (610)
  238-6940

  Telecopy:              (610)
  828-9657

  	
   

  	
  $

  	
  45,000,000.00

  	
   

  	
  3.000000000

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  390 Greenwich Street

  New York, NY 10013

  Attention:              Michelle
  J. Liu

  Telephone:            (212)
  723-4709

  Telecopy:              (646)
  291-3705

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  

 

7

 

	
  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

   

  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

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  75 State Street

  Mail Code MA1 SST 04-11

  Boston, MA 02109

  Attention:              Erin
  Aslakson

  Telephone:            (617)
  757-5564

  Telecopy:              (617)
  757-5652

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  2.333333333

  	
  %

  

 

8

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AmSouth Bank

  Address for Notices:

  1900 5th Avenue North

  Mail Code BAC15

  Birmingham, AL 35203

  Attention:              Ronny
  Hudspeth

  Telephone:            (205)
  307-4227

  Telecopy:              (205)
  801-0138

   

  Address of Lending Office:

  1900 5th Avenue North

  Mail Code BAC15

  Birmingham, AL 35203

  Attention:              Daniel
  McClurkin

  Telephone:            (205)
  264-4109

  Telecopy:              (205)
  801-0138

   

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  	
  2.666666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  350 California Street, 7th Floor

  San Francisco, CA 94104

  Attention:              Gary
  Roberts

  Telephone:            (415)
  705-5035

  Telecopy:              (415)
  433-7438

  	
   

  	
  $

  	
  30,000,000.00

  	
   

  	
  2.000000000

  	
  %

  

 

9

 

	
  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

   

  Address of Lending Office:

  One Madison Avenue

  New York, NY 10010

  Attention:              Ed
  Markowski

  Telephone:            (212)
  538-3380

  Telecopy:              (212)
  325-9049

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  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

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  3.333333333

  	
  %

  

 

10

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LaSalle Bank National
  Association

  Address for Notices:

  620 Newport Center Drive

  Suite 900

  Newport Beach, CA 92660

  Attention:              Leticia
  Ruiz

  Telephone:            (949)
  219-8968

  Telecopy:              (949)
  219-8977

   

  Address of Lending Office:

  620 Newport Center Drive

  Suite 900

  Newport Beach, CA 92660

  Attention:              Russ
  Ruhnke

  Telephone:            (949)
  219-8967

  Telecopy:              (312)
  904-6691

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  2.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  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

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  1.666666667

  	
  %

  

 

11

 

	
  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

   

  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

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  1.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

   

  Address of Lending Office:

  15 South 20th Street

  Birmingham, AL 35233

  Attention:              Jamie
  McClure

  Telephone:            (205)
  297-3297

  Telecopy:              (205)
  297-3901

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  1.333333333

  	
  %

  

 

12

 

	
  Lender

  	
   

  	
  Amount of

  Commitment for

  Revolving

  Credit Loans

  	
   

  	
  Ratable Share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Natexis Banques Populaires

  Address for Notices:

  1251 Avenue of the Americas - 34th Floor

  New York, NY 10020

  Attention:              Marie-Edith
  Dugeny

  Telephone:            (212)
  872-5132

  Telecopy:              (212)
  354-9095

   

  Address of Lending Office:

  1251 Avenue of the Americas - 34th Floor

  New York, NY 10020

  Attention:              Zineb
  Bouazzaoui

  Telephone:            (212)
  872-5081

  Telecopy:              (212)
  354-9095

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  2.333333333

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lender Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  North Fork Bank

  Address for Notices:

  275 Broadhollow Road

  Melville, NY 11747

  Attention:              Philip
  A. Davi

  Telephone:            (631)
  531-2388

  Telecopy:              (631)
  531-2752

   

  Address of Lending Office:

  275 Broadhollow Road

  Melville, NY 11747

  Attention:              Enrico
  Panno

  Telephone:            (631)
  531-2395

  Telecopy:              (631)
  531-2752

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  1.666666667

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  1,500,000,000.00

  	
   

  	
  100.00

  	
  %

  

 

13

 

AGENT

	
  Name:

  	
   

  	
  Douglas G. Paul, Senior Vice President

  
	
  Address:

  	
   

  	
  PNC Bank, National Association

  
	
   

  	
   

  	
  Two Tower Center, 18th Floor

  
	
   

  	
   

  	
  East Brunswick, New Jersey 08816

  
	
  Telephone:

  	
   

  	
  (732) 220-3566

  
	
  Telecopy:

  	
   

  	
  (732) 220-3744

  
	
   

  	
   

  	
   

  
	
  BORROWER:

  	
   

  
	
  Name:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
  Address:

  	
   

  	
  10 Route 35, P.O. Box 500

  
	
   

  	
   

  	
  Red Bank, NJ 07701

  
	
  Attention:

  	
   

  	
  Kevin C. Hake

  
	
  Telephone:

  	
   

  	
  (732) 747-7800

  
	
  Telecopy:

  	
   

  	
  (732) 747-6835

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  
	
  Name:

  	
   

  	
  [name of Guarantor]

  
	
  Address:

  	
   

  	
  c/o K. Hovnanian Enterprises, Inc.

  
	
   

  	
   

  	
  10 Route 35, P.O. Box 500

  
	
   

  	
   

  	
  Red Bank, NJ 07701

  
	
  Attention:

  	
   

  	
  Kevin C. Hake

  
	
  Telephone:

  	
   

  	
  (732) 747-7800

  
	
  Telecopy:

  	
   

  	
  (732) 747-6835

  

 

 

SCHEDULE 1.1(C)

LISTING OF RESTRICTED SUBSIDIARIES, JOINT
VENTURES,

MORTGAGE SUBSIDIARIES AND NON-RESTRICTED PERSONS

 

 

	
  Type of Entity (Note, 

  if entity is L.P. and

  100% owned by HOV,

  then could be

  non-resticted guar.;

  otherwise a joint

  venture (non rest) or

  non-rest subsidiary.

  	
   

  	
  Legal Entity
  Name

  	
   

  	
  State

  of

  Formation

  	
   

  	
  Parent Company
  Member/Shareholder

  	
   

  	
  Restricted

  or

  Non-Restricted Subsidiary

  	
   

  	
  Subsidiary

  or

  Joint Venture

  or

  Corporate

  Office 

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  	
  %

  Controlled by Primary Member (majority of subsidiaries are 100% owned by the member
  if no percentage is provided)

  	
   

  	
  Name of Other
  Members/

  Owner

  	
   

  	
  %

  of other Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  ARROW PROPERTIES,
  INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Corporate Office Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  HOVNANIAN
  DEVELOPMENTS OF FLORIDA, INC.

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  HOVNANIAN
  ENTERPRISES, INC (PARENT COMPANY)

  	
   

  	
  DE

  	
   

  	
  IS THE PARENT
  COMPANY

  	
   

  	
  Parent

  	
   

  	
  Parent

  	
   

  	
  Parent

  	
   

  	
  Parent

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOV
  INTERNATIONAL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOV
  IP, II, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOV IP, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  ACQUISITIONS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BERNARDS IV, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BRANCHBURG III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BRIDGEPORT, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BRIDGEWATER VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BURLINGTON III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  BURLINGTON, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CALABRIA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CARMEL DEL MAR, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CASTILE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CHAPARRAL, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CLARKSTOWN, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  CRESTLINE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian Developments
  of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  DOMINGUEZ HILLS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  EAST WHITELAND I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  FREEHOLD TOWNSHIP I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HACKETTSTOWN, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HERSHEY’S MILL, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HIGHLAND VINEYARDS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HOPEWELL IV, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HOPEWELL VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  HOWELL TOWNSHIP, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  KINGS GRANT I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  KLOCKNER FARMS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  LA TERRAZA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  LAKEWOOD, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  LOWER SAUCON, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MAHWAH II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MAHWAH V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MAHWAH VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MAHWAH VII, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MANALAPAN, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP IV, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  METRO DC SOUTH, INC.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MONROE II, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MONTCLAIR NJ, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  MONTGOMERY I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  NORTHERN WESTCHESTER, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  NORTHLAKE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  OCEAN TOWNSHIP, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  OCEAN WALK, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  PERKIOMEN I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  PERKIOMEN II, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  PLAINSBORO III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  PRINCETON, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  RANCHO CRISTIANITOS, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  RESERVOIR RIDGE, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SAN SEVAINE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SARATOGA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SAWMILL, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SCOTCH PLAINS II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SMITHVILLE, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SOUTH BRUNSWICK III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SOUTH BRUNSWICK V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  STONE CANYON, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  STONY POINT, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  SYCAMORE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  TANNERY HILL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  THE BLUFF, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  THE CEDARS, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  THORNBURY, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  TIERRASANTA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  TROVATA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  TUXEDO, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  UNION TOWNSHIP I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  UPPER FREEHOLD TOWNSHIP I, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian Developments
  of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  UPPER MAKEFIELD I, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  VAIL RANCH, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WALL TOWNSHIP VI, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WALL TOWNSHIP VIII, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WASHINGTONVILLE, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WAYNE III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WAYNE V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN AT
  WILDROSE, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES NORTHEAST, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF CALIFORNIA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF MARYLAND, INC.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF METRO WASHINGTON, INC.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF NEW YORK, INC.

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian
  Developments of New York, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF PENNSYLVANIA, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN
  COMPANIES OF SOUTHERN CALIFORNIA, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION II, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of NJ, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION III, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of NJ, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION MANAGEMENT, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF ARIZONA, INC.

  	
   

  	
  AZ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF CALIFORNIA, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN DEVELOPMENTS
  OF CONNECTICUT, INC.

  	
   

  	
  CT

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

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

  	
   

  	
  DC

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF DELAWARE, INC.

  	
   

  	
  DE

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF GEORGIA, INC.

  	
   

  	
  GA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF ILLINOIS, INC.

  	
   

  	
  IL

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF INDIANA, INC.

  	
   

  	
  IN

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF MARYLAND, INC.

  	
   

  	
  MD

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF MICHIGAN, INC.

  	
   

  	
  MI

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF MINNESOTA, INC.

  	
   

  	
  MN

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF NEW JERSEY II, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF NEW JERSEY, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF NEW YORK, INC.

  	
   

  	
  NY

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF NORTH CAROLINA, INC.

  	
   

  	
  NC

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF OHIO, INC.

  	
   

  	
  OH

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF PENNSYLVANIA, INC.

  	
   

  	
  PA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF SOUTH CAROLINA, INC.

  	
   

  	
  SC

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF TEXAS, INC.

  	
   

  	
  TX

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF VIRGINIA, INC.

  	
   

  	
  VA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF WEST VIRGINIA, INC.

  	
   

  	
  WV

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  	
   

  	
  CA

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  EQUITIES, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  FORECAST HOMES, INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  HOMES OF NORTH CAROLINA, INC.

  	
   

  	
  NC

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  HOMES OF VIRGINIA, INC.

  	
   

  	
  VA

  	
   

  	
  Washington
  Homes, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  INVESTMENT PROPERTIES OF NEW JERSEY, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PA
  REAL ESTATE, INC.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Developments of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN PORT
  IMPERIAL URBAN RENEWAL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

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

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  PROPERTIES OF NORTH BRUNSWICK V, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  K. HOVNANIAN
  PROPERTIES OF WALL, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  KHC ACQUISITION,
  INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  LANDARAMA, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  M&M AT LONG
  BRANCH, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  MATZEL &
  MUMFORD OF DELAWARE, INC.

  	
   

  	
  DE

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  MCNJ, Inc.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  PINE BROOK
  COMPANY, INC.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Corporate Office Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  CORP

  	
   

  	
  REFLECTIONS OF
  YOU INTERIORS, INC.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian
  Developments of Texas, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  SEABROOK
  ACCUMULATION CORPORATION

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  STONEBROOK HOMES,
  INC.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  THE
  MATZEL & MUMFORD ORGANIZATION, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  WASHINGTON HOMES,
  INC.

  	
   

  	
  DE

  	
   

  	
  Hovnanian Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  WESTMINSTER HOMES
  OF TENNESSEE, INC.

  	
   

  	
  TN

  	
   

  	
  Washington
  Homes, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  WESTMINSTER
  HOMES, INC.

  	
   

  	
  NC

  	
   

  	
  Washington
  Homes, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  WH LAND I, INC

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CORP

  	
   

  	
  WH PROPERTIES,
  INC.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Limited Partnership
  (a restricted subsidiary)

  	
   

  	
  GOODMAN FAMILY OF
  BUILDERS, L.P.

  	
   

  	
  TX

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  
	
  Limited
  Partnership (a restricted subsidiary)

  	
   

  	
  K. HOVNANIAN OF
  HOUSTON II, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  
	
  Limited
  Partnership (a restricted subsidiary)

  	
   

  	
  K. HOVNANIAN OF
  HOUSTON, L.P.

  	
   

  	
  TX

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of Texas, Inc.

  	
   

  	
  0.10%

  	
   

  
	
  Limited
  Partnership (a restricted subsidiary)

  	
   

  	
  M&M
  INVESTMENTS, L.P.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.44%

  	
   

  	
  The Matzel & Mumford Organization, Inc.

  	
   

  	
  0.56%

  	
   

  
	
  LLC

  	
   

  	
  ALFORD, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  DULLES
  COPPERMINE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  HLIG INVESTMENT
  I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  MSHOV Holding
  Company, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  GA

  	
   

  	
  K. Hovnanian
  Developments of Georgia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NC

  	
   

  	
  K. Hovnanian
  Developments of North Carolina, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  TX

  	
   

  	
  Goodman Family of
  Builders, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  ALLENTOWN, L.L.C

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  ARBOR HEIGHTS, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  EASTLAKE, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  HAWTHORNE, L.L.C

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian
  Developments of Minnesota, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  LA HABRA KNOLLS, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  LITTLE TOKYO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  MANALAPAN III, LLC

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  MANSFIELD I, LLC

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  MANSFIELD II, LLC

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  MOSAIC, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at
  Northern Westchester, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  OLDE ORCHARD, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  PACIFICA SAN JUAN, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  PARAMUS, LLC

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100.00%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian
  Developments of Minnesota, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  SOMERS POINT, LLC

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  TOWNGATE, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN AT
  WEST FRONT STREET, L.L.C.

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

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

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at
  Northern Westchester, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at
  Northern Westchester, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NY

  	
   

  	
  K. Hovnanian at
  Northern Westchester, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  CLASSICS, L.L.C.

  	
   

  	
  NJ

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  COMPANIES, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Enterprises, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of New Jersey II, Inc.

  	
   

  	
  0.10%

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  CT

  	
   

  	
  K. Hovnanian
  Developments of Connecticut, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  GA

  	
   

  	
  K. Hovnanian
  Developments of Georgia, Inc

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  SC

  	
   

  	
  K. Hovnanian
  Developments of South Carolina, Inc

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Developments of Delaware, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian at
  Perkiomen II, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN FCS,
  L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  SC

  	
   

  	
  K. Hovnanian
  Developments of South Carolina, INC.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  FRANCISCUS HOMES, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian Developments
  of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  K. HOVNANIAN
  GREAT WESTERN BUILDING COMPANY, LLC

  	
   

  	
  AZ

  	
   

  	
  K. Hovnanian
  Developments of Arizona, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  AZ

  	
   

  	
  K. Hovnanian
  Developments of Arizona, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOLDINGS NJ, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Developments of New Jersey, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  99.90%

  	
   

  	
  K. Hovnanian Developments of New Jersey II, Inc.

  	
   

  	
  0.10%

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES AT BANYON COVE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments
  of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

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

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

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

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Homes of Maryland, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES AT RENAISSANCE PLAZA, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES AT RUSSETT, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES AT THE EASTON, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF D.C., L.L.C.

  	
   

  	
  District of Columbia

  	
   

  	
  K. Hovnanian
  Developments of DC, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF DELAWARE, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Developments of Delaware, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF INDIANA, L.L.C.

  	
   

  	
  IN

  	
   

  	
  K. Hovnanian
  Developments of Indiana, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF MARYLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF MINNESOTA, L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian
  Developments of Minnesota, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF SOUTH CAROLINA, L.L.C.

  	
   

  	
  SC

  	
   

  	
  K. Hovnanian
  Developments of South Carolina, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  HOMES OF WEST VIRGINIA, L.L.C.

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian
  Developments of West Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  INTERNATIONAL, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  INVESTMENTS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  NORTH CENTRAL ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  NORTH JERSEY ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  NORTHEAST SERVICES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN OHIO
  REALTY, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian
  Developments of Ohio, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  OSTER HOMES, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian
  Developments of Ohio, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  K. HOVNANIAN
  PENNSYLVANIA ACQUISITIONS, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SHORE ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SOUTH JERSEY ACQUISITIONS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SOUTHERN NEW JERSEY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  STANDING ENTITY, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SUMMIT HOLDINGS, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SUMMIT HOMES OF MICHIGAN, L.L.C

  	
   

  	
  MI

  	
   

  	
  K. Hovnanian
  Developments of Michigan, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SUMMIT HOMES OF PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SUMMIT HOMES OF WEST VIRGINIA, L.L.C.

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian
  Developments of West Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  SUMMIT HOMES, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian
  Developments of Ohio, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  T&C HOMES AT FLORIDA, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  T&C HOMES AT ILLINOIS, L.L.C.

  	
   

  	
  IL

  	
   

  	
  K. Hovnanian
  Developments of Illinois, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  T&C HOMES AT MINNESOTA, L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian
  Developments of Minnesota, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  T&C INVESTMENT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
  Note: involved in Hovstone Joint Venture Ownership
  Structure

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  T&C MANAGEMENT CO., L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
  Note: involved in Hovstone Joint Venture Ownership
  Structure

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  VENTURE I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian at
  Raritan I, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN
  WINDWARD HOMES, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Hovnanian
  Developments of Florida, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT ASHBURN VILLAGE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT BAKERSFIELD, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT DULLES DISCOVERY CONDOMINIUM, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT DULLES DISCOVERY, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT HEMET, LLC

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT HUNTFIELD, L.L.C.

  	
   

  	
  WV

  	
   

  	
  K. Hovnanian
  Developments of West Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT KENT ISLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT MENIFEE VALLEY, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT NEW KENT, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT PALM SPRINGS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT RUSH CREEK, L.L.C.

  	
   

  	
  MN

  	
   

  	
  K. Hovnanian
  Developments of Minnesota, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS AT VINT HILL, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K. Hovnanian
  Developments of Virginia, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  FOUR SEASONS, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K. Hovnanian
  Developments of California, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  K. HOVNANIAN’S
  PRIVATE HOME PORTFOLIO, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  KHIP, LLC

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  KINGS COURT AT
  MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  Matzel &
  Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT APPLE
  RIDGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  BROOKHILL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  CHESTERFIELD, LLC

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT EAST
  MILL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT EAST
  RUTHERFORD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  HERITAGE WOODS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  KENSINGTON WOODS, LLC

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  MORRISTOWN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT ROBERT
  MORRIS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  SHERIDAN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  SPARTA, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  SPINNAKER POINTE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE
  HOLLOW, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE
  MEADOWS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT SPRUCE
  RUN, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  TAMARACK HOLLOW, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT THE
  CHATEAU, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT THE
  HIGHLANDS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT WEST
  ORANGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M &
  M Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  WESTPORT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  M&M AT
  WHEATENA URBAN RENEWAL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT CRANBURY KNOLL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT EGG HARBOR, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT FREEHOLD, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT HERITAGE LANDING, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT PHILLIPSBURG, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M & M
  Investments, L.P.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT SOUTH BRUNSWICK, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MATZEL &
  MUMFORD AT WOODLAND CREST, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MIDWEST BUILDING
  PRODUCTS & CONTRACTOR SERVICES, L.L.C.

  	
   

  	
  OH

  	
   

  	
  K. Hovnanian
  Developments of Ohio, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  MMIP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M and M
  Investments, LP

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  NORTHEAST
  BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  PADDOCKS, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Homes of Maryland, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  PINE AYR, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Homes of Maryland, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  RIDGEMORE UTILITY
  ASSOCIATES OF PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K. Hovnanian
  Companies of Pennsylvania, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  RIDGEMORE
  UTILITY, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  TERRAPIN REALTY,
  L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K. Hovnanian
  Holdings NJ, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  THE LANDINGS AT
  SPINNAKER POINTE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  WASHINGTON HOMES
  AT COLUMBIA TOWN CENTER, LLC

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian Developments
  of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  WESTMINSTER HOMES
  OF ALABAMA, L.L.C.

  	
   

  	
  AL

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  WESTMINSTER HOMES
  OF MISSISSIPPI, L.L.C.

  	
   

  	
  MS

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LLC

  	
   

  	
  WOODLAND LAKES
  CONDOS AT BOWIE NEW TOWN, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K. Hovnanian
  Developments of Maryland, Inc.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  NON-GUARANTORS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Type of Entity

  (Note, if entity is

  L.P. and 100% owned

  by HOV, then could

  be non-resticted guar.;

  otherwise a joint venture

  (non rest) or non-rest

  subsidiary.

  	
   

  	
  Legal
  Entity Name

  	
   

  	
  State

  of

  Formation

  	
   

  	
  Parent
  Company Member/Shareholder

  	
   

  	
  Restricted

  or

  Non-Restricted Subsidiary

  	
   

  	
  Subsidiary

  or

  Joint Venture

  or

  Corporate

  Office 

  Subsidiary

  	
   

  	
  Consolidated

  	
   

  	
  Guarantor

  	
   

  	
  %

  Controlled by Primary Member (majority of subsidiaries are 100% owned by the
  member if no percentage is provided)

  	
   

  	
  Name of
  Other Members/

  Owner

  	
   

  	
  %

  of other Owner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture

  	
   

  	
  FIRST
  FLORIDA TITLE INSURANCE AGENCY, L.L.C.

  	
   

  	
  FL

  	
   

  	
  Windward
  Homes, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50

  	
   

  	
  First American Title Insurance Co.

  	
   

  	
  50

  	
   

  
	
  OTHER;
  Joint Venture

  	
   

  	
  K.
  HOVNANIAN AT PHILADELPHIA II, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K.
  Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Lehman Brothers

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture

  	
   

  	
  WINDWARD
  HOME MORTGAGE, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian Windward Homes, LLC

  	
   

  	
  Non-Restricted

  	
   

  	
  Mortgage

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50

  	
   

  	
  Wells Fargo Ventures, LLC

  	
   

  	
  50

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  77
  HUDSON STREET JOINT DEVELOPMENT, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian 77 Hudson Street Investments, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of 77 Hudson Street Joint Development

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  COBBLESTONE
  SQUARE DEVELOPMENTS, L.L.C.

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Homes of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Cobblestone Square, LLC c/o Garrett Development
  Corporation

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HERITAGE
  PINES, L.L.C.

  	
   

  	
  NC

  	
   

  	
  K.
  Hovnanian Developments of North Carolina, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  U.S. Home Corp.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HOVSTONE
  HOLDINGS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian T&C Investment, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  BRE/Hovstone, L.L.C.

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HOVSTONE
  PROPERTIES FLORIDA, L.L.C.

  	
   

  	
  DE

  	
   

  	
  Hovstone
  Holdings, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of Hovstone Joint Venture

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HOVSTONE
  PROPERTIES ILLINOIS, L.L.C.

  	
   

  	
  DE

  	
   

  	
  Hovestone
  Holdings, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of Hovstone Joint Venture

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HOVSTONE
  PROPERTIES MINNESOTA, L.L.C.

  	
   

  	
  DE

  	
   

  	
  Hovestone
  Holdings, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of Hovstone Joint Venture

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  HUDSON
  POINTE JOINT DEVELOPMENT, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian Hudson Pointe Investments, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of Hovstone Joint Venture

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  INGLEWOOD
  NORTH, L.L.C.

  	
   

  	
  MD

  	
   

  	
  Hovnanian
  Land Investment Group of Maryland, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  30%

  	
   

  	
  Petrie Inglewood

  	
   

  	
  70%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  JAEGER
  ROAD 530, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K.
  Hovnanian Forecast Homes, Inc

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50/50 voting, but more like 90/10 (Hov/AKT) in terms of
  equity invested

  	
   

  	
  AKT Jaeger 530 LLC (commercial developer) and managing
  member

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN 77 HUDSON STREET INVESTMENTS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of 77 Hudson Street Joint Development

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT 77 HUDSON STREET URBAN RENEWAL COMPANY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  77
  Hudson Street Joint Development, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  part of 77 Hudson Street Joint Development

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT LAKE RANCHO VIEJO, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K.
  Hovnanian Developments of California, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  80%

  	
   

  	
  Hearthstone

  	
   

  	
  20%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT MANALAPAN II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Manalapan Investment, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Marathon Manalapan Investment Co., L.L.C.

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PHILADELPHIA I, L.L.C.

  	
   

  	
  PA

  	
   

  	
  Old
  City Joint Development, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  99.90%

  	
   

  	
  Old City Development Inc.

  	
   

  	
  0.1%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI
  Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI
  Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI
  Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI
  Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  

 

 

	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  PI
  Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  K.
  HOVNANIAN INVESTMENTS II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  involved in Port Imperial structure/Lehman

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  LAUREL
  HIGHLANDS, LLC

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Homes of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Eagle Homes/Virginia, Inc.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  M&M
  AT MONROE WOODS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M&M
  Investments, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Realty Management, LLC

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  MM-BEACHFRONT
  NORTH I, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M
  & M Investments, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  M&M at Long Branch, Inc.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  MM-BEACHFRONT
  NORTH II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  M
  & M Investments, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  M&M at Long Branch, Inc.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  MSHOV
  HOLDING COMPANY, L.L.C.

  	
   

  	
  DE

  	
   

  	
  Hovnanian
  Land Investment Group of New Jersey, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Morgan Stanley

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  NRD,
  L.L.C.

  	
   

  	
  FL

  	
   

  	
  K.
  Hovnanian Homes of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  KB Home Tampa. LLC

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  OLD
  CITY DELAWARE, L.L.C.

  	
   

  	
  DE

  	
   

  	
  Old
  City Joint Development, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  Involved in Old City Organizational Structure

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  OLD
  CITY DEVELOPMENT, INC.

  	
   

  	
  DE

  	
   

  	
  Old
  City Joint Development, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  Involved in Old City Organizational Structure

  	
   

  	
   

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  OLD
  CITY JOINT DEVELOPMENT, L.L.C.

  	
   

  	
  PA

  	
   

  	
  K.
  Hovnanian Companies of Pennsylvania, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Old City Holdings, LLC (Lehman)

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  PI
  INVESTMENTS I, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian Investments, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Lehman

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  RR
  HOUSTON DEVELOPERS, LLC

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Dickson Partners, LLC (25%)

  Tousa Homes, Inc. (25%)

  	
   

  	
  25%

  25%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  RR
  HOUSTON INVESTORS, LLC

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  22%

  	
   

  	
  J. Dickson Rogers, LP (25%)

  KB Homes Lone Star(31%)

  Tousa Homes, Inc. (22%)

  	
   

  	
  25%

  31%

  22%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  THOMPSON
  RANCH JOINT DEVELOPMENT, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian at Thompson Ranch, LLC

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  20%

  	
   

  	
  Thompson Ranch-Santa Clarita, LLC

  	
   

  	
  80%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  WHI-REPUBLIC,
  LLC

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Homes of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Kramer/Republic, LLC

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LLC

  	
   

  	
  WRIGHT
  FARM, LLC

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Homes of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  U.S. Home Corporation

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LP

  	
   

  	
  PRESTON
  PARKER, L. P.

  	
   

  	
  DE

  	
   

  	
  Preston
  Parker, LLC (General Partner)

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Toll TX III, LP & Goodman Family of Builders, LP
  (limited partners)

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Joint Venture; LP

  	
   

  	
  RR
  HOUSTON DEVELOPMENT, L.P.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston, LP (49%)

  Tousa Ventures, LLC (49%)

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  98%

  	
   

  	
  RR Houston Developers, LLC

  	
   

  	
  2%

  	
   

  

 

 

	
  OTHER;
  Joint Venture; LP

  	
   

  	
  RR
  HOUSTON INVESTMENT, L.P.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston, LP (21.5%)

  J. Dickson Rogers, LP (24.5%)

  Tousa Ventures, LLC (21.5%)

  KB Homes Lone Star, LP (30.5%)

  	
   

  	
  Non-Restricted

  	
   

  	
  Joint Venture

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  98%

  	
   

  	
  RR Houston Investor, LLC

  	
   

  	
  2%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  12TH*
  STREET RESIDENTIAL, LTD.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Lakeland Development

  	
   

  	
  20% profit

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  BRIGHTBEACH
  DEVELOPMENT, LTD.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Lakeland Development

  	
   

  	
  20% profit

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  BRIGHTCHASE,
  LTD.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100% Invest./80% profit

  	
   

  	
  Texas Land Development, Inc.

  	
   

  	
  20% profit

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  BRIGHTON
  HOMES AT WALDEN MANAGEMENT, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  BHHO, ltd.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  BRIGHTON
  HOMES AT WALDEN, LTD.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  49.50%

  	
   

  	
  BHHO, Ltd (49.5%) & Brighton Homes at Walden Mgt,
  L.L.C. (1%)

  	
   

  	
  49.5%

  1%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  EASTERN
  TITLE AGENCY, INC.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  F&W
  MECHANICAL SERVICES, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  FOUNDERS
  TITLE AGENCY OF MARYLAND, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K.
  Hovnanian Developments of Maryland, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  FOUNDERS
  TITLE AGENCY, INC.

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Developments of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  GOSLING
  ROAD DEVELOPMENT CO., INC.

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston II, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  GOVERNOR'S
  ABSTRACT CO., INC.

  	
   

  	
  PA

  	
   

  	
  Eastern
  Title Agency, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  GREENWAY
  FARMS UTILITY ASSOCIATES, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K.
  Hovnanian Developments of Maryland, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  HEXTER-FAIR
  LAND TITLE COMPANY I, INC.

  	
   

  	
  TX

  	
   

  	
  Goodman
  Family of Builders, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  HOVNANIAN
  FINANCIAL SERVICES I, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  HOVNANIAN
  FINANCIAL SERVICES II, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  HOVNANIAN
  FINANCIAL SERVICES IV, INC.

  	
   

  	
  NJ

  	
   

  	
  Hovnanian
  Enterprises, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  HUNTER
  MILL VILLAGE, L.L.C.

  	
   

  	
  VA

  	
   

  	
  Hovnanian
  Land Investments Group of Virginia, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN AMERICAN MORTGAGE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Mortgage

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN AT HUDSON POINTE, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL II, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL III, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN CHESTERFIELD INVESTMENT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN HUDSON POINTE INVESTMENTS, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN INVESTMENT PROPERTIES, INC.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN MANALAPAN INVESTMENT, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN MORTGAGE FUNDING, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian American Mortgage, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Mortgage

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN NETHERLANDS B.V.

  	
   

  	
  INT'L

  	
   

  	
  K.
  Hovnanian International, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN POLAND, SP .Z.O.O.

  	
   

  	
  INT"L

  	
   

  	
  K.
  Hovnanian Enterprises, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  69%

  	
   

  	
  K. Hovnanian International, Inc.

  	
   

  	
  31%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN PROPERTIES OF RED BANK, INC.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Developments of New Jersey, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Corporate Office
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  K.
  HOVNANIAN'S FOUR SEASONS AT BEAUMONT, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K.
  Hovnanian Developments of California, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
  Structured Lot Option

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  MILLENNIUM
  TITLE AGENCY, LTD.

  	
   

  	
  OH

  	
   

  	
  K.
  Hovnanian Oster Homes, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  NATOMAS
  CENTRAL NEIGHBORHOOD HOUSING, L.L.C.

  	
   

  	
  CA

  	
   

  	
  K.
  Hovnanian Developments of California, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  NEW
  HOMEBUYERS TITLE CO. (VIRGINIA) L.L.C.

  	
   

  	
  VA

  	
   

  	
  K.
  Hovnanian Developments of Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Nova Land Title Co.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  NEW
  HOMEBUYERS TITLE COMPANY, L.L.C.

  	
   

  	
  MD

  	
   

  	
  K.
  Hovnanian Developments of Maryland, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Real Pro, Inc.

  	
   

  	
  50%

  	
   

  

 

 

	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  NEW
  HOMEBUYERS TITLE, L.L.C. (WV)

  	
   

  	
  WV

  	
   

  	
  K.
  Hovnanian Developments of West Virginia, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  George Street LLC

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  NORTH
  MANATEE, L.L.C.

  	
   

  	
  DE

  	
   

  	
  MSHOV
  Holding Company, L.L.C.

  	
   

  	
  Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  Yes

  	
   

  	
  100%

  	
   

  	
  Morgan Stanley

  	
   

  	
  0

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  PARK
  TITLE COMPANY, LLC

  	
   

  	
  TX

  	
   

  	
  K.
  Hovnanian of Houston, L.P.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  K. Hovnanian of Houston II, L.P.

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  PARKWAY
  DEVELOPMENT COMPANY

  	
   

  	
  NC

  	
   

  	
  K.
  Hovnanian Developments of North Carolina, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Monumental Life Insurance Company

  	
   

  	
  50%

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  PI
  INVESTMENTS II, L.L.C.

  	
   

  	
  DE

  	
   

  	
  K.
  Hovnanian Investments II, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  No

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER;
  Non-Restricted Sub.

  	
   

  	
  TOWN
  HOMES AT MONTGOMERY, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  The
  Matzel & Mumford Organization, Inc.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  50%

  	
   

  	
  Meyer Gold

  	
   

  	
  50%

  	
   

  
	
  Other;
  Non-Restricted Sub.; LLC

  	
   

  	
  K.
  HOVNANIAN AT HILLTOP, L.L.C.

  	
   

  	
  NJ

  	
   

  	
  K.
  Hovnanian Holdings NJ, L.L.C.

  	
   

  	
  Non-Restricted

  	
   

  	
  Subsidiary

  	
   

  	
  Yes

  	
   

  	
  No

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE 1.1(P)

PERMITTED LIENS

 

None.

 

 

	
  SCHEDULE 2.9.1

  
	
  EXISTING LETTERS OF CREDIT

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $500,000,000
  Sublimit

  	
   

  	
  K.
  HOVNANIAN ENTERPRISES

  
	
   

  	
   

  	
   

  	
   

  	
  CA
  Expires 7/30/09

  	
   

  	
  LETTERS
  OF CREDIT

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  OUTSTANDING
  AS OF 5/31/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Perf.or

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CURRENT

  	
   

  	
  DATE

  	
   

  	
  EXPIRY

  	
   

  
	
  Financial

  	
   

  	
  LC No.

  	
   

  	
  BENEFICIARY

  	
   

  	
  AMOUNT

  	
   

  	
  ISSUED

  	
   

  	
  DATE

  	
   

  
	
  Fin.

  	
   

  	
  201811

  	
   

  	
  Reliance
  Insurance Co.

  	
   

  	
  $

  	
  121,771.00

  	
   

  	
  2/7/1995

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  201812

  	
   

  	
  Township
  of Upper Makefield

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  3/1/1995

  	
   

  	
  3/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  201813

  	
   

  	
  Township
  of Upper Makefield

  	
   

  	
  $

  	
  169,391.63

  	
   

  	
  3/2/1995

  	
   

  	
  3/2/2007

  	
   

  
	
  Fin.

  	
   

  	
  201814

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  29,341.00

  	
   

  	
  4/17/1997

  	
   

  	
  4/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201819

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  149,560.00

  	
   

  	
  4/17/1997

  	
   

  	
  4/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201820

  	
   

  	
  Township
  of Mahwah

  	
   

  	
  $

  	
  10,000.00

  	
   

  	
  12/17/1996

  	
   

  	
  12/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  201821

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  9,201.72

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201822

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  19,304.24

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201823

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  8,164.80

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  201824

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  10,292.50

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  201828

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  7,678.08

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201829

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  30,029.51

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201830

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  84,329.06

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201831

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  6,300.00

  	
   

  	
  6/19/1996

  	
   

  	
  6/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  201832

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  6,283.49

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  201833

  	
   

  	
  Township
  of East Brunswick

  	
   

  	
  $

  	
  24,448.34

  	
   

  	
  10/29/1996

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  204048

  	
   

  	
  Orloff,
  Lowenbach, Stifelman, etc.

  	
   

  	
  $

  	
  375,000.00

  	
   

  	
  10/28/1997

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  207799

  	
   

  	
  Upper
  Makefield Township

  	
   

  	
  $

  	
  90,728.04

  	
   

  	
  4/22/1998

  	
   

  	
  4/22/2007

  	
   

  
	
  Perf.

  	
   

  	
  208660

  	
   

  	
  Harvard
  Industries, Inc.

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  6/16/1998

  	
   

  	
  6/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  217502

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  121,756.08

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2007

  	
   

  
	
  Perf.

  	
   

  	
  217533

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  19,342.69

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2007

  	
   

  
	
  Perf.

  	
   

  	
  217536

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  2,820.51

  	
   

  	
  4/23/1999

  	
   

  	
  4/26/2007

  	
   

  
	
  Perf.

  	
   

  	
  225922

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  20,841.11

  	
   

  	
  1/21/2000

  	
   

  	
  1/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  225923

  	
   

  	
  Township
  of Lawrence

  	
   

  	
  $

  	
  162,164.76

  	
   

  	
  1/21/2000

  	
   

  	
  1/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  229543

  	
   

  	
  Summit
  Ventures LLC

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  5/25/2000

  	
   

  	
  5/25/2007

  	
   

  
	
  Fin.

  	
   

  	
  236140

  	
   

  	
  National
  Union Fire Ins. (etc)

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  1/10/2001

  	
   

  	
  10/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  238446

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  319,184.66

  	
   

  	
  5/11/2001

  	
   

  	
  5/15/2007

  	
   

  
	
  Perf.

  	
   

  	
  241202

  	
   

  	
  Delaware
  Valley Tennis Club

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  7/24/2001

  	
   

  	
  7/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  243450

  	
   

  	
  Steadfast
  Insurance Co.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  11/30/2001

  	
   

  	
  10/31/2006

  	
   

  

 

 

	
  Fin.

  	
   

  	
  243452

  	
   

  	
  Zurich
  American Insurance Co.

  	
   

  	
  $

  	
  700,000.00

  	
   

  	
  11/30/2001

  	
   

  	
  10/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  247101

  	
   

  	
  Essex
  County Improvement Auth.

  	
   

  	
  $

  	
  1,243,740.00

  	
   

  	
  4/23/2002

  	
   

  	
  4/23/2007

  	
   

  
	
  Perf.

  	
   

  	
  250326

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  442,797.64

  	
   

  	
  9/18/2002

  	
   

  	
  9/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  250328

  	
   

  	
  Hackettstown
  Municipal Utilities

  	
   

  	
  $

  	
  231,340.50

  	
   

  	
  7/16/2002

  	
   

  	
  7/16/2007

  	
   

  
	
  Perf.

  	
   

  	
  250329

  	
   

  	
  Hackettstown
  Municipal Utilities

  	
   

  	
  $

  	
  108,246.75

  	
   

  	
  7/16/2002

  	
   

  	
  7/16/2007

  	
   

  
	
  Perf.

  	
   

  	
  251552

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  290,000.00

  	
   

  	
  8/26/2002

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  251992

  	
   

  	
  Commonwealth
  of Pennsylvania

  	
   

  	
  $

  	
  427,581.70

  	
   

  	
  9/12/2002

  	
   

  	
  9/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  252499

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  28,844.75

  	
   

  	
  9/30/2002

  	
   

  	
  9/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  252579

  	
   

  	
  Northampton,
  Bucks County

  	
   

  	
  $

  	
  839,419.73

  	
   

  	
  10/3/2002

  	
   

  	
  11/12/2006

  	
   

  
	
  Fin.

  	
   

  	
  252773

  	
   

  	
  Travelers
  Indemnity Company

  	
   

  	
  $

  	
  599,000.00

  	
   

  	
  10/11/2002

  	
   

  	
  10/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  253440

  	
   

  	
  Township
  of Cedar Grove

  	
   

  	
  $

  	
  104,967.00

  	
   

  	
  11/18/2002

  	
   

  	
  11/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  253721

  	
   

  	
  Township
  of Northampton

  	
   

  	
  $

  	
  2,229,443.77

  	
   

  	
  11/19/2002

  	
   

  	
  11/20/2006

  	
   

  
	
  Perf.

  	
   

  	
  255203

  	
   

  	
  South
  Knolls LLC

  	
   

  	
  $

  	
  2,200,000.00

  	
   

  	
  2/11/2003

  	
   

  	
  2/11/2007

  	
   

  
	
  Perf.

  	
   

  	
  255313

  	
   

  	
  Karr
  Associates

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  2/4/2003

  	
   

  	
  2/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  255567

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  144,787.32

  	
   

  	
  2/24/2003

  	
   

  	
  2/20/2007

  	
   

  
	
  Perf.

  	
   

  	
  255770

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  32,454.00

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2007

  	
   

  
	
  Perf.

  	
   

  	
  255771

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  134,108.47

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2007

  	
   

  
	
  Perf.

  	
   

  	
  255772

  	
   

  	
  Berkeley
  Twp.

  	
   

  	
  $

  	
  136,323.00

  	
   

  	
  2/25/2003

  	
   

  	
  2/25/2007

  	
   

  
	
  Perf.

  	
   

  	
  257242

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  1,033,879.65

  	
   

  	
  5/6/2003

  	
   

  	
  12/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  257243

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  201,750.00

  	
   

  	
  5/6/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  257975

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  3,500,000.00

  	
   

  	
  6/9/2003

  	
   

  	
  6/9/2007

  	
   

  
	
  Perf.

  	
   

  	
  258407

  	
   

  	
  Town
  of Monroe

  	
   

  	
  $

  	
  4,223,275.00

  	
   

  	
  6/23/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  258408

  	
   

  	
  Town
  of Monroe

  	
   

  	
  $

  	
  346,500.00

  	
   

  	
  6/23/2003

  	
   

  	
  6/23/2006

  	
   

  
	
  Perf.

  	
   

  	
  258679

  	
   

  	
  Jaindl
  Land Co.

  	
   

  	
  $

  	
  99,000.00

  	
   

  	
  7/7/2003

  	
   

  	
  7/7/2006

  	
   

  
	
  Perf.

  	
   

  	
  259320

  	
   

  	
  Lehigh
  County Authority

  	
   

  	
  $

  	
  20,385.00

  	
   

  	
  7/30/2003

  	
   

  	
  7/30/2006

  	
   

  
	
  Perf.

  	
   

  	
  259796

  	
   

  	
  Wynmere
  Hunt Associates

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  8/11/2003

  	
   

  	
  8/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  261399

  	
   

  	
  Penny
  Plate Inc.

  	
   

  	
  $

  	
  450,000.00

  	
   

  	
  11/19/2003

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  261918

  	
   

  	
  RTKL
  New Jersey Architects

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  1/2/2004

  	
   

  	
  1/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  265174

  	
   

  	
  American
  Properties at Chesterfield

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  	
  3/26/2004

  	
   

  	
  3/26/2007

  	
   

  
	
  Perf

  	
   

  	
  266395

  	
   

  	
  Hearthstone
  Multi-Asset

  	
   

  	
  $

  	
  9,691,746.00

  	
   

  	
  5/13/2004

  	
   

  	
  5/13/2007

  	
   

  
	
  Perf

  	
   

  	
  18100182

  	
   

  	
  260
  Huffman LLC

  	
   

  	
  $

  	
  1,495,000.00

  	
   

  	
  6/16/2004

  	
   

  	
  6/16/2006

  	
   

  
	
  Perf.

  	
   

  	
  18100252

  	
   

  	
  Pinchus-Kiejdan
  Marital Trust B

  	
   

  	
  $

  	
  720,000.00

  	
   

  	
  10/4/2004

  	
   

  	
  10/4/2006

  	
   

  
	
  Perf

  	
   

  	
  18100404

  	
   

  	
  Genco
  Homes-Millville LLC

  	
   

  	
  $

  	
  115,000.00

  	
   

  	
  8/13/2004

  	
   

  	
  8/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18100405

  	
   

  	
  Genco
  Homes-Parvins Mill LLC

  	
   

  	
  $

  	
  135,000.00

  	
   

  	
  8/13/2004

  	
   

  	
  8/13/2006

  	
   

  
	
  Perf

  	
   

  	
  18100460

  	
   

  	
  General
  Electric Capital Business

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  9/10/2004

  	
   

  	
  6/30/2006

  	
   

  
	
  Perf

  	
   

  	
  18100469

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  795,473.42

  	
   

  	
  8/25/2004

  	
   

  	
  8/25/2006

  	
   

  
	
  Perf

  	
   

  	
  18100741

  	
   

  	
  Natomas
  Investors

  	
   

  	
  $

  	
  18,570,562.00

  	
   

  	
  12/15/2004

  	
   

  	
  5/31/2006

  	
   

  

 

 

	
  Perf

  	
   

  	
  18100757

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  2,090,572.16

  	
   

  	
  11/5/2004

  	
   

  	
  11/5/2006

  	
   

  
	
  Perf

  	
   

  	
  18100885

  	
   

  	
  Ramapo
  Land Co.

  	
   

  	
  $

  	
  1,000,000.00

  	
   

  	
  1/3/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Perf

  	
   

  	
  18101001

  	
   

  	
  Lower
  Macungie Township

  	
   

  	
  $

  	
  410,061.98

  	
   

  	
  1/10/2005

  	
   

  	
  1/10/2007

  	
   

  
	
  Perf

  	
   

  	
  18101063

  	
   

  	
  Flaster
  Greenberg PC Trust

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  1/13/2005

  	
   

  	
  1/13/2007

  	
   

  
	
  Perf

  	
   

  	
  18101134

  	
   

  	
  Township
  of Rapho

  	
   

  	
  $

  	
  1,110,029.80

  	
   

  	
  1/31/2005

  	
   

  	
  1/31/2007

  	
   

  
	
  Perf

  	
   

  	
  18101135

  	
   

  	
  Mt.
  Joy Properites Inc.

  	
   

  	
  $

  	
  587,749.80

  	
   

  	
  2/3/2005

  	
   

  	
  2/3/2007

  	
   

  
	
  Perf

  	
   

  	
  18101174

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  17,581,250.00

  	
   

  	
  2/8/2005

  	
   

  	
  2/8/2007

  	
   

  
	
  Perf

  	
   

  	
  18101175

  	
   

  	
  Roseland/Port
  Imperial Partners

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  2/8/2005

  	
   

  	
  2/8/2007

  	
   

  
	
  Perf

  	
   

  	
  18101323

  	
   

  	
  Lehigh
  County Authority

  	
   

  	
  $

  	
  23,364.00

  	
   

  	
  3/23/2005

  	
   

  	
  3/23/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101458

  	
   

  	
  Texas
  State Bank

  	
   

  	
  $

  	
  750,000.00

  	
   

  	
  5/10/2005

  	
   

  	
  7/29/2008

  	
   

  
	
  Perf.

  	
   

  	
  18101626

  	
   

  	
  Borough
  of West Paterson

  	
   

  	
  $

  	
  152,283.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/10/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101627

  	
   

  	
  City
  of Clifton

  	
   

  	
  $

  	
  253,404.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/13/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101628

  	
   

  	
  Borough
  of West Paterson

  	
   

  	
  $

  	
  505,495.00

  	
   

  	
  5/13/2005

  	
   

  	
  5/13/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101730

  	
   

  	
  1401
  Tower Partners LP

  	
   

  	
  $

  	
  676,923.05

  	
   

  	
  5/27/2005

  	
   

  	
  5/27/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101733

  	
   

  	
  K
  & M Associates Inc.

  	
   

  	
  $

  	
  322,000.00

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Perf

  	
   

  	
  18101809

  	
   

  	
  Lower
  Moreland Township

  	
   

  	
  $

  	
  180,000.00

  	
   

  	
  8/4/2005

  	
   

  	
  8/4/2007

  	
   

  
	
  Perf.

  	
   

  	
  18101819

  	
   

  	
  GBF/LIC
  288, Ltd.

  	
   

  	
  $

  	
  3,091,185.09

  	
   

  	
  6/17/2005

  	
   

  	
  6/17/2007

  	
   

  
	
  Fin

  	
   

  	
  18101942

  	
   

  	
  Texas
  State Bank

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  7/15/2005

  	
   

  	
  7/15/2006

  	
   

  
	
  Perf

  	
   

  	
  18101962

  	
   

  	
  Colonial
  Title & Abstract

  	
   

  	
  $

  	
  3,481,852.50

  	
   

  	
  8/26/2005

  	
   

  	
  8/26/2006

  	
   

  
	
  Fin

  	
   

  	
  18102009

  	
   

  	
  Twp
  of Manalapan

  	
   

  	
  $

  	
  4,397,344.00

  	
   

  	
  9/26/2005

  	
   

  	
  9/26/2007

  	
   

  
	
  Fin

  	
   

  	
  18102010

  	
   

  	
  Twp
  of Manalapan

  	
   

  	
  $

  	
  2,165,856.00

  	
   

  	
  9/26/2005

  	
   

  	
  9/26/2007

  	
   

  
	
  Perf

  	
   

  	
  18102098

  	
   

  	
  North
  17rh Street Assoc.

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  9/2/2005

  	
   

  	
  9/2/2007

  	
   

  
	
  Perf

  	
   

  	
  18102165

  	
   

  	
  ERP
  Operating Ltd Partnership

  	
   

  	
  $

  	
  5,500,000.00

  	
   

  	
  9/12/2005

  	
   

  	
  9/12/2006

  	
   

  
	
  Perf

  	
   

  	
  18102440

  	
   

  	
  S
  & P Philmont LP

  	
   

  	
  $

  	
  210,000.00

  	
   

  	
  11/18/2005

  	
   

  	
  11/18/2007

  	
   

  
	
  Fin

  	
   

  	
  18102478

  	
   

  	
  Old
  Republic Insurance Co.

  	
   

  	
  $

  	
  5,000,000.00

  	
   

  	
  11/23/2005

  	
   

  	
  11/23/2006

  	
   

  
	
  Fin

  	
   

  	
  18102491

  	
   

  	
  Continental
  Casualty Co.

  	
   

  	
  $

  	
  2,361,750.00

  	
   

  	
  12/1/2005

  	
   

  	
  12/2/2006

  	
   

  
	
  Perf

  	
   

  	
  18102554

  	
   

  	
  Northampton,
  Bucks County

  	
   

  	
  $

  	
  74,693.55

  	
   

  	
  12/21/2005

  	
   

  	
  6/21/2007

  	
   

  
	
  Perf

  	
   

  	
  18102557

  	
   

  	
  Silvergate
  Associates

  	
   

  	
  $

  	
  650,000.00

  	
   

  	
  12/14/2005

  	
   

  	
  12/14/2007

  	
   

  
	
  Perf

  	
   

  	
  18102614

  	
   

  	
  Phillip
  Perskie, Esq.

  	
   

  	
  $

  	
  1,600,000.00

  	
   

  	
  12/21/2005

  	
   

  	
  12/17/2006

  	
   

  
	
  Perf

  	
   

  	
  18102481

  	
   

  	
  Nordan
  Realty Corp.

  	
   

  	
  $

  	
  6,000,000.00

  	
   

  	
  1/5/2006

  	
   

  	
  7/29/2009

  	
   

  
	
  Perf

  	
   

  	
  18102732

  	
   

  	
  Rockhill
  Developers LLC

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  1/24/2006

  	
   

  	
  1/24/2008

  	
   

  
	
  Perf

  	
   

  	
  18102765

  	
   

  	
  Borough
  of West Paterson

  	
   

  	
  $

  	
  156,003.00

  	
   

  	
  2/2/2006

  	
   

  	
  2/2/2007

  	
   

  
	
  Fin

  	
   

  	
  18102678

  	
   

  	
  Thomas
  M Williams, Mary J

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  2/24/2006

  	
   

  	
  2/24/2007

  	
   

  
	
  Fin

  	
   

  	
  18102770

  	
   

  	
  Borough
  of Camp Hill

  	
   

  	
  $

  	
  113,775.00

  	
   

  	
  3/13/2006

  	
   

  	
  3/13/2007

  	
   

  
	
  Perf

  	
   

  	
  18102859

  	
   

  	
  Silver
  Spring Township

  	
   

  	
  $

  	
  442,891.00

  	
   

  	
  4/19/2006

  	
   

  	
  4/19/2007

  	
   

  
	
  Perf

  	
   

  	
  18102869

  	
   

  	
  The
  Breeches at Allenberry LLC

  	
   

  	
  $

  	
  239,000.00

  	
   

  	
  3/6/2006

  	
   

  	
  3/6/2008

  	
   

  
	
  Perf

  	
   

  	
  18102878

  	
   

  	
  Lehigh
  County Authority

  	
   

  	
  $

  	
  148,610.00

  	
   

  	
  3/3/2006

  	
   

  	
  3/3/2007

  	
   

  

 

 

	
  Perf

  	
   

  	
  18102911

  	
   

  	
  Spall,
  Rydzewski and Anderson PC

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  3/8/2006

  	
   

  	
  7/8/2006

  	
   

  
	
  Perf

  	
   

  	
  18102939

  	
   

  	
  Jaindl
  Realty LP

  	
   

  	
  $

  	
  625,000.00

  	
   

  	
  3/13/2006

  	
   

  	
  3/13/2008

  	
   

  
	
  Perf

  	
   

  	
  18102971

  	
   

  	
  Garnet
  Associates LLC

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  3/17/2006

  	
   

  	
  3/17/2008

  	
   

  
	
  Perf

  	
   

  	
  18102980

  	
   

  	
  Borough
  of North Caldwell

  	
   

  	
  $

  	
  198,361.56

  	
   

  	
  3/22/2006

  	
   

  	
  3/22/2007

  	
   

  
	
  Perf

  	
   

  	
  18103106

  	
   

  	
  Township
  of Verona

  	
   

  	
  $

  	
  39,954.07

  	
   

  	
  4/18/2006

  	
   

  	
  4/18/2007

  	
   

  
	
  Perf

  	
   

  	
  18103122

  	
   

  	
  ERA
  South Residential 3 LLC

  	
   

  	
  $

  	
  2,200,000.00

  	
   

  	
  4/20/2006

  	
   

  	
  4/20/2007

  	
   

  
	
  Perf

  	
   

  	
  18103158

  	
   

  	
  Westrum
  Locust Grove LLC

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  4/24/2006

  	
   

  	
  4/24/2008

  	
   

  
	
  Perf

  	
   

  	
  18103173

  	
   

  	
  City
  of Clifton

  	
   

  	
  $

  	
  455,693.00

  	
   

  	
  4/26/2006

  	
   

  	
  4/26/2007

  	
   

  
	
  Perf

  	
   

  	
  18103200

  	
   

  	
  Jersey
  City Municipal Utilities

  	
   

  	
  $

  	
  618,165.00

  	
   

  	
  5/25/2006

  	
   

  	
  5/25/2007

  	
   

  
	
  Fin

  	
   

  	
  18103258

  	
   

  	
  Bellevue
  Properties Group LLC

  	
   

  	
  $

  	
  200,000.00

  	
   

  	
  5/22/2006

  	
   

  	
  5/22/2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  PNC - TOTAL

  	
   

  	
  $

  	
  159,726,825.48

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Perf.

  	
   

  	
  088742

  	
   

  	
  Bd
  of Cty Spv. Prince WM Cty.

  	
   

  	
  $

  	
  57,016.13

  	
   

  	
  2/3/1994

  	
   

  	
  8/7/2006

  	
   

  
	
  Perf.

  	
   

  	
  940740

  	
   

  	
  Brd
  of Cty Supervsrs.of Prc.William

  	
   

  	
  $

  	
  40,585.50

  	
   

  	
  12/26/2005

  	
   

  	
  6/26/2006

  	
   

  
	
  Perf.

  	
   

  	
  941035

  	
   

  	
  Staffordcounty
  board of supervisors

  	
   

  	
  $

  	
  68,702.93

  	
   

  	
  10/9/1998

  	
   

  	
  10/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3047004

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  3,500.00

  	
   

  	
  3/13/2002

  	
   

  	
  6/14/2006

  	
   

  
	
  Perf.

  	
   

  	
  3047140

  	
   

  	
  Bd.of
  Cty Comm. Hillsborough Cty

  	
   

  	
  $

  	
  11,500.00

  	
   

  	
  3/19/2002

  	
   

  	
  6/14/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064476

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  1,617,000.00

  	
   

  	
  7/28/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064488

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  543,173.19

  	
   

  	
  7/20/2004

  	
   

  	
  7/21/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064693

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  1,499,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064694

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  994,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064695

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  783,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064696

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  707,000.00

  	
   

  	
  8/5/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064720

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  309,171.75

  	
   

  	
  8/3/2004

  	
   

  	
  7/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064759

  	
   

  	
  Rainbow
  Municipal Water District

  	
   

  	
  $

  	
  406,972.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064760

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  65,850.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064761

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  19,600.00

  	
   

  	
  8/3/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064776

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064777

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  8/4/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064778

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064779

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064780

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3064807

  	
   

  	
  Young
  Conway Stargatt & Taylor LLP

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  8/4/2004

  	
   

  	
  3/1/2007

  	
   

  
	
  Perf.

  	
   

  	
  3064943

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  17,425.00

  	
   

  	
  8/12/2004

  	
   

  	
  8/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064954

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  805,456.00

  	
   

  	
  8/12/2004

  	
   

  	
  8/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3064990

  	
   

  	
  Egypt
  Road LLC

  	
   

  	
  $

  	
  197,606.62

  	
   

  	
  9/22/2004

  	
   

  	
  2/24/2007

  	
   

  

 

 

	
  Perf.

  	
   

  	
  3065049

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  229,799.00

  	
   

  	
  9/8/2004

  	
   

  	
  9/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065050

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  211,585.00

  	
   

  	
  9/8/2004

  	
   

  	
  9/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065079

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  179,266.00

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065080

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  99,470.00

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065081

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  73,537.58

  	
   

  	
  8/20/2004

  	
   

  	
  8/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3065222

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  546,376.00

  	
   

  	
  9/17/2004

  	
   

  	
  9/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065427

  	
   

  	
  Brazos
  River North South Ltd.

  	
   

  	
  $

  	
  130,000.00

  	
   

  	
  9/14/2004

  	
   

  	
  9/14/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065512

  	
   

  	
  Cottontree
  Ltd.

  	
   

  	
  $

  	
  500,000.00

  	
   

  	
  9/17/2004

  	
   

  	
  9/17/2006

  	
   

  
	
  Fin.

  	
   

  	
  3065629

  	
   

  	
  Gaslamp
  Phase Two LLC

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  	
  9/16/2004

  	
   

  	
  9/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065905

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  312,557.45

  	
   

  	
  10/5/2004

  	
   

  	
  10/5/2006

  	
   

  
	
  Perf.

  	
   

  	
  3065998

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  376,744.26

  	
   

  	
  10/8/2004

  	
   

  	
  10/8/2006

  	
   

  
	
  Fin.

  	
   

  	
  3066036

  	
   

  	
  Sandler
  at Olde Stage LLC

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  10/12/2004

  	
   

  	
  1/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  3066070

  	
   

  	
  Attman
  Real Estate Co.

  	
   

  	
  $

  	
  150,000.00

  	
   

  	
  10/13/2004

  	
   

  	
  10/13/2006

  	
   

  
	
  Perf.

  	
   

  	
  3066428

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  332,843.80

  	
   

  	
  11/2/2004

  	
   

  	
  11/2/2006

  	
   

  
	
  Perf.

  	
   

  	
  3071551

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  289,702.00

  	
   

  	
  11/9/2004

  	
   

  	
  11/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  3071552

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  282,175.00

  	
   

  	
  11/9/2004

  	
   

  	
  11/9/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071572

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071573

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071574

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071575

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071583

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00

  	
   

  	
  11/8/2004

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3071800

  	
   

  	
  Melissa
  Road Partners Ltd.

  	
   

  	
  $

  	
  463,800.00

  	
   

  	
  11/22/2004

  	
   

  	
  11/22/2006

  	
   

  
	
  Perf.

  	
   

  	
  3071883

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  411,668.44

  	
   

  	
  12/1/2004

  	
   

  	
  11/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  3071884

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  53,986.61

  	
   

  	
  12/1/2004

  	
   

  	
  5/23/2007

  	
   

  
	
  Fin.

  	
   

  	
  3071987

  	
   

  	
  Stelic
  Enterprises Inc.

  	
   

  	
  $

  	
  175,000.00

  	
   

  	
  12/3/2004

  	
   

  	
  11/30/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072040

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  309,039.59

  	
   

  	
  12/8/2004

  	
   

  	
  12/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  3072128

  	
   

  	
  Windjam
  Development Group LLC

  	
   

  	
  $

  	
  275,000.00

  	
   

  	
  1/10/2005

  	
   

  	
  12/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  3072185

  	
   

  	
  Legacy
  Bank of Texas

  	
   

  	
  $

  	
  818,600.00

  	
   

  	
  12/21/2004

  	
   

  	
  12/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072317

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  365,392.94

  	
   

  	
  12/22/2004

  	
   

  	
  12/17/2006

  	
   

  
	
  Perf.

  	
   

  	
  3072685

  	
   

  	
  Moreno
  Valley Properties

  	
   

  	
  $

  	
  248,000.00

  	
   

  	
  4/20/2005

  	
   

  	
  1/18/2007

  	
   

  
	
  Perf.

  	
   

  	
  3072686

  	
   

  	
  Moreno
  Valley Properties

  	
   

  	
  $

  	
  100,000.00

  	
   

  	
  4/20/2005

  	
   

  	
  1/18/2007

  	
   

  
	
  Perf.

  	
   

  	
  3072915

  	
   

  	
  Los
  Angeles Dept. of Water & Power

  	
   

  	
  $

  	
  399,052.00

  	
   

  	
  1/21/2005

  	
   

  	
  1/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  3072956

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  171,513.00

  	
   

  	
  1/24/2005

  	
   

  	
  1/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3072966

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  712,011.00

  	
   

  	
  3/8/2005

  	
   

  	
  7/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3073123

  	
   

  	
  Northpointe
  Developmt Partners

  	
   

  	
  $

  	
  250,000.00

  	
   

  	
  1/31/2005

  	
   

  	
  1/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  3073161

  	
   

  	
  Coachella
  Valley Water District

  	
   

  	
  $

  	
  45,863.20

  	
   

  	
  3/25/2005

  	
   

  	
  3/25/2007

  	
   

  
	
  Fin.

  	
   

  	
  3073203

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  18,644.00

  	
   

  	
  2/16/2005

  	
   

  	
  2/16/2007

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3073205

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  2,745.00
  

  	
   

  	
  2/16/2005

  	
   

  	
  2/16/2007

  	
   

  
	
  Perf.

  	
   

  	
  3073214

  	
   

  	
  The
  Prudential Insurance Co.

  	
   

  	
  $

  	
  6,494,193.00
  

  	
   

  	
  2/9/2005

  	
   

  	
  2/9/2007

  	
   

  
	
  Fin.

  	
   

  	
  3073219

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  61,333.15
  

  	
   

  	
  3/10/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073220

  	
   

  	
  U.S.
  Bank National Assoc.

  	
   

  	
  $

  	
  63,951.85
  

  	
   

  	
  3/10/2005

  	
   

  	
  11/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073346

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073347

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073348

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073349

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073350

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  2/10/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3073558

  	
   

  	
  County
  of San Diego

  	
   

  	
  $

  	
  242,360.00
  

  	
   

  	
  3/30/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3073917

  	
   

  	
  Baldwin
  Park Development Co.

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  3/17/2005

  	
   

  	
  3/17/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074011

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  686,171.00
  

  	
   

  	
  3/22/2005

  	
   

  	
  3/22/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074109

  	
   

  	
  Coachella
  Valley Water District

  	
   

  	
  $

  	
  18,714.85
  

  	
   

  	
  3/28/2005

  	
   

  	
  3/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074186

  	
   

  	
  Mitchell
  L. Phelps Inc.

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  4/6/2005

  	
   

  	
  4/6/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074231

  	
   

  	
  Residential
  Title & Escrow Co.

  	
   

  	
  $

  	
  950,000.00
  

  	
   

  	
  4/1/2005

  	
   

  	
  4/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074430

  	
   

  	
  Aeromaritime
  Investment Co.

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  4/13/2005

  	
   

  	
  3/15/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074488

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  61,300.00
  

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074489

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  13,110.00
  

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074671

  	
   

  	
  Melissa
  Road Partners Ltd.

  	
   

  	
  $

  	
  564,400.00
  

  	
   

  	
  4/21/2005

  	
   

  	
  4/21/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074710

  	
   

  	
  SCC-Canyon
  II, LLC

  	
   

  	
  $

  	
  4,311,666.00
  

  	
   

  	
  4/28/2005

  	
   

  	
  4/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074782

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  664,553.71
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074783

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  834,356.25
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074784

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  836,852.00
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074785

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  1,642,288.41
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074786

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  818,539.86
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074787

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  966,684.65
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074790

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  480,785.00
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074791

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  352,535.23
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074792

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  331,025.94
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074793

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  587,716.25
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074794

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  1,524,710.00
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Fin.

  	
   

  	
  3074795

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  644,357.50
  

  	
   

  	
  4/27/2005

  	
   

  	
  4/25/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074808

  	
   

  	
  Texas
  Bank

  	
   

  	
  $

  	
  306,000.00
  

  	
   

  	
  5/10/2005

  	
   

  	
  5/15/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074919

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074920

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074921

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074922

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2006

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3074923

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  5/5/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3074929

  	
   

  	
  Annapolis
  Towne Center at Parole LLC

  	
   

  	
  $

  	
  6,335,129.00
  

  	
   

  	
  5/9/2005

  	
   

  	
  5/9/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074941

  	
   

  	
  City
  of Eden Prairie

  	
   

  	
  $

  	
  287,530.00
  

  	
   

  	
  5/6/2005

  	
   

  	
  5/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074942

  	
   

  	
  City
  of Eden Prairie

  	
   

  	
  $

  	
  42,000.00
  

  	
   

  	
  5/6/2005

  	
   

  	
  5/6/2007

  	
   

  
	
  Fin.

  	
   

  	
  3074947

  	
   

  	
  Annapolis
  Towne Center at Parole LLC

  	
   

  	
  $

  	
  664,871.00
  

  	
   

  	
  5/9/2005

  	
   

  	
  5/9/2008

  	
   

  
	
  Perf.

  	
   

  	
  3074948

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  69,696.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074949

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  184,103.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074950

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  30,000.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074951

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  904,106.50
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074952

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  236,365.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074953

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  78,105.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074954

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  61,216.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3074955

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  29,194.00
  

  	
   

  	
  5/24/2005

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075010

  	
   

  	
  The
  Minnehaha Creek Watershed

  	
   

  	
  $

  	
  80,000.00
  

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075011

  	
   

  	
  The
  Minnehaha Creek Watershed

  	
   

  	
  $

  	
  6,700.00
  

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075027

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  78,176.00
  

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075028

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  5/11/2005

  	
   

  	
  5/11/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075032

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,313.00
  

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075033

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  323,161.00
  

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075034

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  164,393.00
  

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075035

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  17,850.00
  

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2007

  	
   

  
	
  Fin.

  	
   

  	
  3075133

  	
   

  	
  Ann
  Arundel Farms Ltd.

  	
   

  	
  $

  	
  50,400.00
  

  	
   

  	
  5/18/2005

  	
   

  	
  2/9/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075157

  	
   

  	
  First
  American Title Insurance Co.

  	
   

  	
  $

  	
  625,000.00
  

  	
   

  	
  5/18/2005

  	
   

  	
  3/29/2008

  	
   

  
	
  Perf.

  	
   

  	
  3075190

  	
   

  	
  City
  of Victoria

  	
   

  	
  $

  	
  1,832,902.00
  

  	
   

  	
  5/25/2005

  	
   

  	
  11/20/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075328

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  1,658,932.50
  

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075329

  	
   

  	
  Windsor
  Lakes Inc.

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  6/6/2005

  	
   

  	
  11/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075330

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  64,600.00
  

  	
   

  	
  5/31/2005

  	
   

  	
  5/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  3075385

  	
   

  	
  Acacia
  Credit Fund 10-A LLC

  	
   

  	
  $

  	
  5,427,323.00
  

  	
   

  	
  6/1/2005

  	
   

  	
  7/29/2008

  	
   

  
	
  Fin.

  	
   

  	
  3075396

  	
   

  	
  FC
  Caldwell LLC

  	
   

  	
  $

  	
  156,000.00
  

  	
   

  	
  6/1/2005

  	
   

  	
  6/1/2008

  	
   

  
	
  Fin.

  	
   

  	
  3075455

  	
   

  	
  Dublin
  Murphy Estates Ltd.

  	
   

  	
  $

  	
  96,000.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075515

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  200,000.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/19/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075537

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  311,742.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075538

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  487,530.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075539

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  59,000.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075540

  	
   

  	
  County
  of Culpeper

  	
   

  	
  $

  	
  105,200.00
  

  	
   

  	
  6/8/2005

  	
   

  	
  6/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3075623

  	
   

  	
  First
  American Title Insurance Co.

  	
   

  	
  $

  	
  1,100,000.00
  

  	
   

  	
  6/15/2005

  	
   

  	
  6/15/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075624

  	
   

  	
  City
  of Chaska

  	
   

  	
  $

  	
  97,900.00
  

  	
   

  	
  6/21/2005

  	
   

  	
  6/21/2006

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3075625

  	
   

  	
  City
  of Chaska

  	
   

  	
  $

  	
  822,040.00
  

  	
   

  	
  6/21/2005

  	
   

  	
  6/21/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075779

  	
   

  	
  Barrett
  Company No. 17 LC

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  6/22/2005

  	
   

  	
  6/22/2006

  	
   

  
	
  Fin.

  	
   

  	
  3075788

  	
   

  	
  Remington
  Pointe LLC

  	
   

  	
  $

  	
  200,000.00
  

  	
   

  	
  6/27/2005

  	
   

  	
  6/27/2007

  	
   

  
	
  Fin.

  	
   

  	
  3075789

  	
   

  	
  Chicago
  Title & Trust Company

  	
   

  	
  $

  	
  315,000.00
  

  	
   

  	
  6/27/2005

  	
   

  	
  6/27/2006

  	
   

  
	
  Perf.

  	
   

  	
  3075920

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  240,664.20
  

  	
   

  	
  6/29/2005

  	
   

  	
  6/29/2007

  	
   

  
	
  Perf.

  	
   

  	
  3075921

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  94,023.75
  

  	
   

  	
  6/29/2005

  	
   

  	
  6/29/2007

  	
   

  
	
  Perf.

  	
   

  	
  3076088

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  68,448.00
  

  	
   

  	
  7/8/2005

  	
   

  	
  7/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3076089

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  11,762.00
  

  	
   

  	
  7/8/2005

  	
   

  	
  7/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3076090

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  47,000.00
  

  	
   

  	
  7/8/2005

  	
   

  	
  7/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3076091

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  29,403.00
  

  	
   

  	
  7/8/2005

  	
   

  	
  7/8/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076173

  	
   

  	
  Stewart
  Title of Minnesota

  	
   

  	
  $

  	
  200,000.00
  

  	
   

  	
  7/20/2005

  	
   

  	
  7/20/2007

  	
   

  
	
  Fin.

  	
   

  	
  3076197

  	
   

  	
  Trout
  Land LLC

  	
   

  	
  $

  	
  900,000.00
  

  	
   

  	
  8/1/2005

  	
   

  	
  8/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  3076266

  	
   

  	
  M&T
  Mortgage Corp.

  	
   

  	
  $

  	
  9,167,970.60
  

  	
   

  	
  7/26/2005

  	
   

  	
  7/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076345

  	
   

  	
  The
  Ryland Group Inc.

  	
   

  	
  $

  	
  327,500.00
  

  	
   

  	
  7/25/2005

  	
   

  	
  7/25/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076437

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076438

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076439

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076440

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076441

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076458

  	
   

  	
  Oster
  Construction Inc.

  	
   

  	
  $

  	
  3,000,000.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  7/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076577

  	
   

  	
  Patapsco
  Landing LLC

  	
   

  	
  $

  	
  750,000.00
  

  	
   

  	
  8/2/2005

  	
   

  	
  10/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  3076611

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  21,456.00
  

  	
   

  	
  8/4/2005

  	
   

  	
  8/4/2006

  	
   

  
	
  Perf.

  	
   

  	
  3076796

  	
   

  	
  City
  of Maplewood

  	
   

  	
  $

  	
  120,000.00
  

  	
   

  	
  8/23/2005

  	
   

  	
  8/23/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076797

  	
   

  	
  Richard
  C Mills & Paulette D Mills

  	
   

  	
  $

  	
  25,000.00
  

  	
   

  	
  8/15/2005

  	
   

  	
  8/12/2007

  	
   

  
	
  Perf.

  	
   

  	
  3076854

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  179,859.00
  

  	
   

  	
  8/25/2005

  	
   

  	
  8/25/2007

  	
   

  
	
  Perf.

  	
   

  	
  3076855

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  367,238.00
  

  	
   

  	
  8/25/2005

  	
   

  	
  8/25/2007

  	
   

  
	
  Fin.

  	
   

  	
  3076903

  	
   

  	
  Baytown’s
  Highland Meadows LLC

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  8/23/2005

  	
   

  	
  2/23/2007

  	
   

  
	
  Fin.

  	
   

  	
  3076976

  	
   

  	
  Booth
  & Cook PA

  	
   

  	
  $

  	
  450,000.00
  

  	
   

  	
  9/2/2005

  	
   

  	
  9/2/2006

  	
   

  
	
  Fin.

  	
   

  	
  3076989

  	
   

  	
  Peoples
  First Community Bank

  	
   

  	
  $

  	
  650,000.00
  

  	
   

  	
  8/29/2005

  	
   

  	
  8/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  3077036

  	
   

  	
  Lo
  Land Assets LP

  	
   

  	
  $

  	
  7,462,104.00
  

  	
   

  	
  9/28/2005

  	
   

  	
  9/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  3077125

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  181,143.00
  

  	
   

  	
  9/6/2005

  	
   

  	
  9/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077126

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  2,138.00
  

  	
   

  	
  9/6/2005

  	
   

  	
  9/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077127

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  27,900.00
  

  	
   

  	
  9/6/2005

  	
   

  	
  9/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077128

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  3,267.00
  

  	
   

  	
  9/6/2005

  	
   

  	
  9/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077238

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  14,000.00
  

  	
   

  	
  9/8/2005

  	
   

  	
  9/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  3077239

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  47,813.00
  

  	
   

  	
  9/8/2005

  	
   

  	
  9/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077240

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  203,438.00
  

  	
   

  	
  9/8/2005

  	
   

  	
  9/8/2006

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3077310

  	
   

  	
  Security
  Title Agency

  	
   

  	
  $

  	
  283,507.00
  

  	
   

  	
  9/22/2005

  	
   

  	
  2/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3077469

  	
   

  	
  Security
  Title Agency

  	
   

  	
  $

  	
  311,857.00
  

  	
   

  	
  9/22/2005

  	
   

  	
  7/27/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077499

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  232,000.00
  

  	
   

  	
  9/27/2005

  	
   

  	
  9/27/2007

  	
   

  
	
  Perf.

  	
   

  	
  3077512

  	
   

  	
  Dept.
  of Public Works

  	
   

  	
  $

  	
  30,000.00
  

  	
   

  	
  9/27/2005

  	
   

  	
  9/27/2006

  	
   

  
	
  Perf.

  	
   

  	
  3077836

  	
   

  	
  Brightwood
  Farm Inc.

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  10/12/2005

  	
   

  	
  10/12/2006

  	
   

  
	
  Perf.

  	
   

  	
  3077837

  	
   

  	
  City
  of Ramsey

  	
   

  	
  $

  	
  1,125,000.00
  

  	
   

  	
  10/13/2005

  	
   

  	
  10/13/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078099

  	
   

  	
  Waterchase
  Lot Venture JV

  	
   

  	
  $

  	
  394,200.00
  

  	
   

  	
  10/28/2005

  	
   

  	
  10/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3078101

  	
   

  	
  Booth
  & Cook PA

  	
   

  	
  $

  	
  1,124,000.00
  

  	
   

  	
  10/26/2005

  	
   

  	
  10/26/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078142

  	
   

  	
  Dr.
  Bahram Sina and Pari Sina

  	
   

  	
  $

  	
  300,000.00
  

  	
   

  	
  10/28/2005

  	
   

  	
  7/29/2009

  	
   

  
	
  Fin.

  	
   

  	
  3078253

  	
   

  	
  Regional
  Homes LLC

  	
   

  	
  $

  	
  299,250.00
  

  	
   

  	
  11/1/2005

  	
   

  	
  11/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078254

  	
   

  	
  Odenton
  Investments LLC

  	
   

  	
  $

  	
  488,950.00
  

  	
   

  	
  11/1/2005

  	
   

  	
  11/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078255

  	
   

  	
  SK
  Properties Ltd.

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  11/2/2005

  	
   

  	
  11/2/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078296

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  11/3/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078297

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  11/3/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078298

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  11/3/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078299

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  11/3/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078300

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  11/3/2005

  	
   

  	
  12/31/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078341

  	
   

  	
  SCC-Canyon
  II, LLC

  	
   

  	
  $

  	
  2,640,720.00
  

  	
   

  	
  11/7/2005

  	
   

  	
  11/7/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078458

  	
   

  	
  Clarion
  Homes LLC

  	
   

  	
  $

  	
  387,200.00
  

  	
   

  	
  11/15/2005

  	
   

  	
  11/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  3078463

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  8,235.00
  

  	
   

  	
  11/15/2005

  	
   

  	
  11/15/2007

  	
   

  
	
  Perf.

  	
   

  	
  3078464

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  75,500.00
  

  	
   

  	
  11/15/2005

  	
   

  	
  11/15/2007

  	
   

  
	
  Fin.

  	
   

  	
  3078664

  	
   

  	
  Deboest,
  Stockman, Decker, Broughton

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  12/7/2005

  	
   

  	
  12/7/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078735

  	
   

  	
  Acacia
  Credit Fund 10-A LLC

  	
   

  	
  $

  	
  13,104,809.00
  

  	
   

  	
  12/29/2005

  	
   

  	
  12/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  3078831

  	
   

  	
  Sterling
  Projects Ltd.

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  1/11/2006

  	
   

  	
  1/11/2008

  	
   

  
	
  Perf.

  	
   

  	
  3078846

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  63,200.00
  

  	
   

  	
  12/5/2005

  	
   

  	
  12/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  3078847

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  59,100.00
  

  	
   

  	
  12/5/2005

  	
   

  	
  12/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  3078848

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  1,112,200.00
  

  	
   

  	
  12/5/2005

  	
   

  	
  12/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  3078849

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  1,527,500.00
  

  	
   

  	
  12/5/2005

  	
   

  	
  12/5/2007

  	
   

  
	
  Fin.

  	
   

  	
  3078850

  	
   

  	
  Davenport-Granville
  Properties

  	
   

  	
  $

  	
  135,000.00
  

  	
   

  	
  12/5/2005

  	
   

  	
  12/5/2008

  	
   

  
	
  Fin.

  	
   

  	
  3078895

  	
   

  	
  McCollom
  Interests LLC

  	
   

  	
  $

  	
  2,684,000.00
  

  	
   

  	
  1/4/2006

  	
   

  	
  7/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3078965

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  174,889.50
  

  	
   

  	
  12/9/2005

  	
   

  	
  12/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  3079066

  	
   

  	
  Baltimore
  county, MD

  	
   

  	
  $

  	
  210,809.50
  

  	
   

  	
  12/19/2005

  	
   

  	
  12/19/2007

  	
   

  
	
  Perf.

  	
   

  	
  3079067

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  30,000.00
  

  	
   

  	
  12/19/2005

  	
   

  	
  12/19/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079143

  	
   

  	
  Bricklemyer
  Smolker & Bolves, P.A.

  	
   

  	
  $

  	
  375,000.00
  

  	
   

  	
  12/19/2005

  	
   

  	
  12/19/2006

  	
   

  
	
  Fin.

  	
   

  	
  3079185

  	
   

  	
  Zions
  First National Bank

  	
   

  	
  $

  	
  114,397.25
  

  	
   

  	
  12/27/2005

  	
   

  	
  12/27/2006

  	
   

  
	
  Perf.

  	
   

  	
  3079207

  	
   

  	
  Board
  of County Comm. Of Frederick Cty

  	
   

  	
  $

  	
  333,810.50
  

  	
   

  	
  12/28/2005

  	
   

  	
  12/21/2006

  	
   

  
	
  Fin.

  	
   

  	
  3079226

  	
   

  	
  Regent
  Land Investment LLC

  	
   

  	
  $

  	
  4,335,860.00
  

  	
   

  	
  12/27/2005

  	
   

  	
  12/27/2006

  	
   

  

 

 

	
  Perf.

  	
   

  	
  3079281

  	
   

  	
  City
  of Oceanside

  	
   

  	
  $

  	
  31,395.00
  

  	
   

  	
  12/28/2005

  	
   

  	
  12/28/2006

  	
   

  
	
  Fin.

  	
   

  	
  3079282

  	
   

  	
  Texas-New
  Mexico Power Co.

  	
   

  	
  $

  	
  158,000.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079319

  	
   

  	
  Pelican’s
  Nest LP

  	
   

  	
  $

  	
  300,000.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079320

  	
   

  	
  Lennar
  Homes of Texas Land

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079321

  	
   

  	
  Lennar
  Homes of Texas Land

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079371

  	
   

  	
  Lo
  Land Assets LP

  	
   

  	
  $

  	
  9,755,000.00
  

  	
   

  	
  12/29/2005

  	
   

  	
  1/3/2007

  	
   

  
	
  Perf.

  	
   

  	
  3079372

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  67,876.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2008

  	
   

  
	
  Perf.

  	
   

  	
  3079373

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  52,352.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2008

  	
   

  
	
  Fin.

  	
   

  	
  3079407

  	
   

  	
  Springville
  Properties Inc.

  	
   

  	
  $

  	
  1,700,000.00
  

  	
   

  	
  1/3/2006

  	
   

  	
  1/3/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079552

  	
   

  	
  Lo
  Land Assets LP

  	
   

  	
  $

  	
  4,446,000.00
  

  	
   

  	
  1/10/2006

  	
   

  	
  1/10/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079648

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  2,000,000.00
  

  	
   

  	
  1/12/2006

  	
   

  	
  1/12/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079649

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  1/12/2006

  	
   

  	
  1/12/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079650

  	
   

  	
  Lowndes
  Drosdick Doster Kantor & Reed

  	
   

  	
  $

  	
  150,000.00
  

  	
   

  	
  1/12/2006

  	
   

  	
  1/12/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079651

  	
   

  	
  Aeromaritime
  Investment Co.

  	
   

  	
  $

  	
  200,000.00
  

  	
   

  	
  1/17/2006

  	
   

  	
  1/17/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079660

  	
   

  	
  Tenant-In-Common
  Owners

  	
   

  	
  $

  	
  51,305.79
  

  	
   

  	
  1/17/2006

  	
   

  	
  1/17/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079794

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  40,000.00
  

  	
   

  	
  1/20/2006

  	
   

  	
  2/1/2007

  	
   

  
	
  Perf.

  	
   

  	
  3079833

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  521,037.22
  

  	
   

  	
  1/24/2006

  	
   

  	
  1/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  3079853

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  279,490.55
  

  	
   

  	
  1/24/2006

  	
   

  	
  1/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3079955

  	
   

  	
  Swann
  & Hadley P.A.

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  1/30/2006

  	
   

  	
  1/30/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080036

  	
   

  	
  Regent
  Land Investment LLC

  	
   

  	
  $

  	
  5,254,208.00
  

  	
   

  	
  1/31/2006

  	
   

  	
  1/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080089

  	
   

  	
  Founders
  Title Company

  	
   

  	
  $

  	
  2,550,000.00
  

  	
   

  	
  2/1/2006

  	
   

  	
  2/1/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080112

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  182,966.97
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080113

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  52,966.00
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080114

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  156,366.00
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080115

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  177,394.00
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080116

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  191,716.80
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080117

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  250,170.00
  

  	
   

  	
  2/7/2006

  	
   

  	
  2/7/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080118

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  2/8/2006

  	
   

  	
  2/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080119

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  2/8/2006

  	
   

  	
  2/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080120

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  2/8/2006

  	
   

  	
  2/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080121

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  2/8/2006

  	
   

  	
  2/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080122

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  2/8/2006

  	
   

  	
  2/8/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080168

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  11,900.10
  

  	
   

  	
  2/6/2006

  	
   

  	
  2/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080329

  	
   

  	
  City
  of Cottage Grove

  	
   

  	
  $

  	
  1,088,309.11
  

  	
   

  	
  3/2/2006

  	
   

  	
  3/2/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080382

  	
   

  	
  Foley
  & Lardner LLP

  	
   

  	
  $

  	
  217,500.00
  

  	
   

  	
  2/16/2006

  	
   

  	
  2/16/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080461

  	
   

  	
  The
  City of Havre De Grace

  	
   

  	
  $

  	
  25,000.00
  

  	
   

  	
  2/27/2006

  	
   

  	
  2/27/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080462

  	
   

  	
  Troese
  Title Company

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  2/21/2006

  	
   

  	
  2/21/2007

  	
   

  

 

 

	
  Fin.

  	
   

  	
  3080464

  	
   

  	
  Dunlap
  & Morgan, Attys at Law

  	
   

  	
  $

  	
  250,000.00
  

  	
   

  	
  2/21/2006

  	
   

  	
  2/21/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080532

  	
   

  	
  Founders
  Title Company

  	
   

  	
  $

  	
  567,063.21
  

  	
   

  	
  2/23/2006

  	
   

  	
  2/23/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080500

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  220,427.00
  

  	
   

  	
  3/2/2006

  	
   

  	
  3/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080501

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  1,111,679.00
  

  	
   

  	
  3/2/2006

  	
   

  	
  3/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080503

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  391,655.00
  

  	
   

  	
  3/2/2006

  	
   

  	
  3/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080506

  	
   

  	
  Baltimore
  County, MD

  	
   

  	
  $

  	
  679,866.00
  

  	
   

  	
  3/2/2006

  	
   

  	
  3/2/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080777

  	
   

  	
  Kimbrell
  Fort Mill LP

  	
   

  	
  $

  	
  237,000.00
  

  	
   

  	
  3/9/2006

  	
   

  	
  6/30/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080814

  	
   

  	
  Board
  of County Comm. Of Frederick Cty

  	
   

  	
  $

  	
  74,763.66
  

  	
   

  	
  3/21/2006

  	
   

  	
  3/21/2008

  	
   

  
	
  Perf.

  	
   

  	
  3080815

  	
   

  	
  Town
  of Cary

  	
   

  	
  $

  	
  107,003.25
  

  	
   

  	
  3/9/2006

  	
   

  	
  3/9/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080845

  	
   

  	
  Acacia
  Credit Fund 10-A LLC

  	
   

  	
  $

  	
  7,876,543.00
  

  	
   

  	
  4/28/2006

  	
   

  	
  4/28/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080840

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  116,000.00
  

  	
   

  	
  3/15/2006

  	
   

  	
  2/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  3080846

  	
   

  	
  Acacia
  Credit Fund 10-A LLC

  	
   

  	
  $

  	
  9,413,749.00
  

  	
   

  	
  3/14/2006

  	
   

  	
  3/14/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080881

  	
   

  	
  City
  of Chanhassen

  	
   

  	
  $

  	
  2,258,657.72
  

  	
   

  	
  3/21/2006

  	
   

  	
  3/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  3080882

  	
   

  	
  City
  of Chanhassen

  	
   

  	
  $

  	
  28,459.00
  

  	
   

  	
  3/21/2006

  	
   

  	
  3/21/2009

  	
   

  
	
  Fin.

  	
   

  	
  3080899

  	
   

  	
  Edmund
  Cain Family Farms

  	
   

  	
  $

  	
  800,000.00
  

  	
   

  	
  3/22/2006

  	
   

  	
  3/22/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081060

  	
   

  	
  Guaranty
  Bank, as Agent

  	
   

  	
  $

  	
  5,000,000.00
  

  	
   

  	
  3/30/2006

  	
   

  	
  3/30/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081119

  	
   

  	
  Brightkeys
  Development LLC

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  3/28/2006

  	
   

  	
  3/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081225

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  91,680.00
  

  	
   

  	
  3/29/2006

  	
   

  	
  3/29/2007

  	
   

  
	
  Perf.

  	
   

  	
  3081260

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  98,600.00
  

  	
   

  	
  4/10/2006

  	
   

  	
  4/10/2007

  	
   

  
	
  Perf.

  	
   

  	
  3081261

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  1,486,700.00
  

  	
   

  	
  4/5/2006

  	
   

  	
  4/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  3081317

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  73,500.00
  

  	
   

  	
  4/11/2006

  	
   

  	
  2/1/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081404

  	
   

  	
  M&T
  Mortgage Corp.

  	
   

  	
  $

  	
  11,105,156.00
  

  	
   

  	
  4/10/2006

  	
   

  	
  4/10/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081499

  	
   

  	
  Branch
  Banking & Trust Co.

  	
   

  	
  $

  	
  1,471,634.40
  

  	
   

  	
  4/11/2006

  	
   

  	
  2/4/2009

  	
   

  
	
  Perf.

  	
   

  	
  3081500

  	
   

  	
  City
  of Sacramento

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  4/12/2006

  	
   

  	
  4/12/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081528

  	
   

  	
  GMAC
  Model Home Finance Inc.

  	
   

  	
  $

  	
  5,434,194.00
  

  	
   

  	
  4/13/2006

  	
   

  	
  4/13/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081601

  	
   

  	
  GMAC
  Model Home Finance Inc.

  	
   

  	
  $

  	
  5,591,199.90
  

  	
   

  	
  4/19/2006

  	
   

  	
  4/19/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081608

  	
   

  	
  Almeda/Orem
  100 Ltd.

  	
   

  	
  $

  	
  185,041.00
  

  	
   

  	
  4/24/2006

  	
   

  	
  4/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081609

  	
   

  	
  Almeda/Orem
  100 Ltd.

  	
   

  	
  $

  	
  210,861.00
  

  	
   

  	
  4/24/2006

  	
   

  	
  4/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081610

  	
   

  	
  Almeda/Orem
  100 Ltd.

  	
   

  	
  $

  	
  182,172.00
  

  	
   

  	
  4/24/2006

  	
   

  	
  4/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081611

  	
   

  	
  Almeda/Orem
  100 Ltd.

  	
   

  	
  $

  	
  121,926.00
  

  	
   

  	
  4/24/2006

  	
   

  	
  4/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081747

  	
   

  	
  GMAC
  Model Home Finance Inc.

  	
   

  	
  $

  	
  8,787,917.00
  

  	
   

  	
  4/28/2006

  	
   

  	
  4/28/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081939

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  5/8/2006

  	
   

  	
  5/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081940

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  81,000.00
  

  	
   

  	
  5/8/2006

  	
   

  	
  5/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081941

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  39,000.00
  

  	
   

  	
  5/8/2006

  	
   

  	
  5/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081942

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  35,000.00
  

  	
   

  	
  5/8/2006

  	
   

  	
  5/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081943

  	
   

  	
  The
  Fleming Family Ltd. Partnership

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  5/8/2006

  	
   

  	
  5/8/2007

  	
   

  
	
  Fin.

  	
   

  	
  3081685

  	
   

  	
  Regent
  Land Investment LLC

  	
   

  	
  $

  	
  6,247,124.00
  

  	
   

  	
  5/15/2006

  	
   

  	
  5/15/2007

  	
   

  

 

 

	
  Perf.

  	
   

  	
  3082061

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  1,432,900.00
  

  	
   

  	
  5/11/2006

  	
   

  	
  2/1/2008

  	
   

  
	
  Perf.

  	
   

  	
  3082062

  	
   

  	
  City
  of Maple Grove

  	
   

  	
  $

  	
  152,700.00
  

  	
   

  	
  5/23/2006

  	
   

  	
  2/1/2008

  	
   

  
	
  Fin.

  	
   

  	
  3082322

  	
   

  	
  Moore
  & Alphin PLLC

  	
   

  	
  $

  	
  800,000.00
  

  	
   

  	
  5/30/2006

  	
   

  	
  5/31/2008

  	
   

  
	
  Perf.

  	
   

  	
  7401633

  	
   

  	
  VA
  Department of Transportation

  	
   

  	
  $

  	
  30,000.00
  

  	
   

  	
  4/26/1999

  	
   

  	
  4/26/2007

  	
   

  
	
  Perf.

  	
   

  	
  7401777

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  29,728.54
  

  	
   

  	
  5/24/1999

  	
   

  	
  8/5/2006

  	
   

  
	
  Perf.

  	
   

  	
  7403137

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  35,527.00
  

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  7403139

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  1,000.00
  

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  7403140

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  34,624.00
  

  	
   

  	
  1/11/2000

  	
   

  	
  7/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  7403158

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  36,226.15
  

  	
   

  	
  1/13/2000

  	
   

  	
  7/13/2006

  	
   

  
	
  Perf.

  	
   

  	
  7403214

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  46,837.50
  

  	
   

  	
  1/27/2000

  	
   

  	
  4/26/2007

  	
   

  
	
  Fin.

  	
   

  	
  7404004

  	
   

  	
  Schulman,Treem,
  etc.

  	
   

  	
  $

  	
  3,000,000.00
  

  	
   

  	
  8/9/2000

  	
   

  	
  8/9/2006

  	
   

  
	
  Perf.

  	
   

  	
  7404762

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  179,137.23
  

  	
   

  	
  1/25/2001

  	
   

  	
  3/30/2007

  	
   

  
	
  Perf.

  	
   

  	
  7404842

  	
   

  	
   Bd.Of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  27,800.10
  

  	
   

  	
  2/8/2001

  	
   

  	
  1/3/2007

  	
   

  
	
  Perf.

  	
   

  	
  7405365

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  23,493.00
  

  	
   

  	
  5/22/2001

  	
   

  	
  5/22/2007

  	
   

  
	
  Perf.

  	
   

  	
  7405465

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  17,792.30
  

  	
   

  	
  6/18/2001

  	
   

  	
  6/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  7405467

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  8,073.80
  

  	
   

  	
  6/18/2001

  	
   

  	
  6/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  7405761

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  45,845.00
  

  	
   

  	
  9/5/2001

  	
   

  	
  2/5/2007

  	
   

  
	
  Fin.

  	
   

  	
  7405783

  	
   

  	
  Premier
  Title Inc.

  	
   

  	
  $

  	
  363,671.20
  

  	
   

  	
  8/31/2001

  	
   

  	
  8/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7406051

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  31,891.10
  

  	
   

  	
  11/16/2001

  	
   

  	
  11/15/2006

  	
   

  
	
  Perf.

  	
   

  	
  7406097

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  174,237.80
  

  	
   

  	
  11/29/2001

  	
   

  	
  5/29/2007

  	
   

  
	
  Perf.

  	
   

  	
  7408684

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  80,613.00
  

  	
   

  	
  1/29/2002

  	
   

  	
  1/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  7409171

  	
   

  	
  First
  State Bank & Fountain Ridge

  	
   

  	
  $

  	
  400,000.00
  

  	
   

  	
  3/13/2002

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7409177

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  301,758.68
  

  	
   

  	
  3/20/2002

  	
   

  	
  3/20/2007

  	
   

  
	
  Perf.

  	
   

  	
  7409222

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  197,823.00
  

  	
   

  	
  3/27/2002

  	
   

  	
  3/27/2007

  	
   

  
	
  Fin.

  	
   

  	
  7409328

  	
   

  	
  Lennar
  Homes of Texas Land

  	
   

  	
  $

  	
  232,000.00
  

  	
   

  	
  4/26/2002

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7410151

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  147,586.38
  

  	
   

  	
  8/14/2002

  	
   

  	
  2/14/2007

  	
   

  
	
  Perf.

  	
   

  	
  7410330

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  569,175.22
  

  	
   

  	
  9/13/2002

  	
   

  	
  6/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  7410606

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  122,793.80
  

  	
   

  	
  10/24/2002

  	
   

  	
  4/21/2007

  	
   

  
	
  Fin.

  	
   

  	
  7410650

  	
   

  	
  Ohio
  Savings Bank

  	
   

  	
  $

  	
  2,250,000.00
  

  	
   

  	
  10/31/2002

  	
   

  	
  10/30/2006

  	
   

  
	
  Fin.

  	
   

  	
  7410858

  	
   

  	
  Miles
  & Stockbridge P.C.

  	
   

  	
  $

  	
  600,000.00
  

  	
   

  	
  12/18/2002

  	
   

  	
  3/17/2007

  	
   

  
	
  Fin.

  	
   

  	
  7410894

  	
   

  	
  Heartland/MSK
  Realty Ventures

  	
   

  	
  $

  	
  4,000,000.00
  

  	
   

  	
  12/23/2002

  	
   

  	
  12/31/2006

  	
   

  
	
  Perf.

  	
   

  	
  7410959

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  268,286.61
  

  	
   

  	
  1/2/2003

  	
   

  	
  12/23/2006

  	
   

  
	
  Fin.

  	
   

  	
  7410968

  	
   

  	
  Laurel
  Highlands LLC

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  1/6/2003

  	
   

  	
  1/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  7411051

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  82,247.43
  

  	
   

  	
  1/24/2003

  	
   

  	
  7/25/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411069

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  263,047.09
  

  	
   

  	
  1/23/2003

  	
   

  	
  7/24/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411130

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  152,219.00
  

  	
   

  	
  2/5/2003

  	
   

  	
  5/21/2007

  	
   

  
	
  Perf.

  	
   

  	
  7411453

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  106,093.25
  

  	
   

  	
  4/9/2003

  	
   

  	
  10/11/2006

  	
   

  

 

 

	
  Perf.

  	
   

  	
  7411505

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  55,391.35
  

  	
   

  	
  4/28/2003

  	
   

  	
  4/28/2007

  	
   

  
	
  Perf.

  	
   

  	
  7411515

  	
   

  	
  Board
  of Supervisors Fairfax County

  	
   

  	
  $

  	
  94,600.00
  

  	
   

  	
  4/28/2003

  	
   

  	
  10/28/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411592

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  86,709.00
  

  	
   

  	
  5/7/2003

  	
   

  	
  5/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  7411692

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  1,273,870.93
  

  	
   

  	
  6/6/2003

  	
   

  	
  6/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  7411693

  	
   

  	
  Burgess
  & Comm.of Walkersville

  	
   

  	
  $

  	
  64,600.00
  

  	
   

  	
  6/6/2003

  	
   

  	
  6/6/2006

  	
   

  
	
  Perf.

  	
   

  	
  7412110

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  177,192.23
  

  	
   

  	
  8/11/2003

  	
   

  	
  2/5/2007

  	
   

  
	
  Perf.

  	
   

  	
  7412116

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00
  

  	
   

  	
  8/8/2003

  	
   

  	
  8/8/2006

  	
   

  
	
  Perf.

  	
   

  	
  7412117

  	
   

  	
  Bd.of
  Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00
  

  	
   

  	
  8/8/2003

  	
   

  	
  8/8/2006

  	
   

  
	
  Fin.

  	
   

  	
  7412158

  	
   

  	
  New
  Homebuyer’s Title Co.

  	
   

  	
  $

  	
  450,000.00
  

  	
   

  	
  8/18/2003

  	
   

  	
  8/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  7412402

  	
   

  	
  Bd
  of Supervisors of Prince Wm.Cty.

  	
   

  	
  $

  	
  25,000.00
  

  	
   

  	
  9/24/2003

  	
   

  	
  9/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  7412572

  	
   

  	
  City
  of Palm Springs

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  10/15/2003

  	
   

  	
  9/30/2006

  	
   

  
	
  Perf.

  	
   

  	
  7412763

  	
   

  	
  Board
  of Supervisors /Prince William

  	
   

  	
  $

  	
  230,558.90
  

  	
   

  	
  11/5/2003

  	
   

  	
  6/5/2007

  	
   

  
	
  Fin.

  	
   

  	
  7413466

  	
   

  	
  Windsor
  Lakes Inc.

  	
   

  	
  $

  	
  2,000,000.00
  

  	
   

  	
  2/17/2004

  	
   

  	
  6/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413575

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  7,500.00
  

  	
   

  	
  2/12/2004

  	
   

  	
  2/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413576

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  92,970.00
  

  	
   

  	
  2/12/2004

  	
   

  	
  2/6/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413818

  	
   

  	
  Board
  of Cty Spv Prince William Cty

  	
   

  	
  $

  	
  167,314.65
  

  	
   

  	
  3/12/2004

  	
   

  	
  9/15/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413878

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  60,000.00
  

  	
   

  	
  3/31/2004

  	
   

  	
  3/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413879

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  17,115.00
  

  	
   

  	
  3/31/2004

  	
   

  	
  3/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413880

  	
   

  	
  Baltimore
  County, Md

  	
   

  	
  $

  	
  28,314.00
  

  	
   

  	
  3/31/2005

  	
   

  	
  3/31/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413913

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  704,625.00
  

  	
   

  	
  3/26/2004

  	
   

  	
  3/23/2007

  	
   

  
	
  Fin.

  	
   

  	
  7413914

  	
   

  	
  Whi-Republic
  LLC

  	
   

  	
  $

  	
  1,000,000.00
  

  	
   

  	
  3/24/2004

  	
   

  	
  3/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  7413922

  	
   

  	
  Ohio
  Savings Bank

  	
   

  	
  $

  	
  5,000,000.00
  

  	
   

  	
  3/25/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Perf.

  	
   

  	
  7413986

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  169,278.00
  

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413987

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  15,528.40
  

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2007

  	
   

  
	
  Perf.

  	
   

  	
  7413988

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  171,882.00
  

  	
   

  	
  4/2/2004

  	
   

  	
  4/2/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414178

  	
   

  	
  New
  Forest West Ltd.

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  4/29/2004

  	
   

  	
  4/29/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414179

  	
   

  	
  New
  Forest West Ltd.

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  4/29/2004

  	
   

  	
  4/29/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414206

  	
   

  	
  Wilmeth
  Road Partners Ltd.

  	
   

  	
  $

  	
  898,200.00
  

  	
   

  	
  6/15/2004

  	
   

  	
  6/24/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414245

  	
   

  	
  Northwest
  Building Ltd.

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  5/6/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414268

  	
   

  	
  Commissioner
  of Ins. State of Vermont

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  6/1/2004

  	
   

  	
  5/11/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414343

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  35,072.00
  

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  7414344

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,688.00
  

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2007

  	
   

  
	
  Perf.

  	
   

  	
  7414345

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  245,180.00
  

  	
   

  	
  5/24/2004

  	
   

  	
  5/24/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414373

  	
   

  	
  Sully
  North LC & DD-Simmons LC

  	
   

  	
  $

  	
  500,000.00
  

  	
   

  	
  5/26/2004

  	
   

  	
  5/26/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414407

  	
   

  	
  Shady
  Oaks TB Ltd.

  	
   

  	
  $

  	
  152,000.00
  

  	
   

  	
  5/27/2004

  	
   

  	
  7/29/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414531

  	
   

  	
  Fortuna
  Regency LLC

  	
   

  	
  $

  	
  850,000.00
  

  	
   

  	
  6/16/2004

  	
   

  	
  6/16/2007

  	
   

  
	
  Perf.

  	
   

  	
  7414581

  	
   

  	
  City
  of Temple Terrace, Florida

  	
   

  	
  $

  	
  205,227.00
  

  	
   

  	
  6/23/2004

  	
   

  	
  5/19/2007

  	
   

  

 

 

	
  Perf.

  	
   

  	
  7414582

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  83,111.24
  

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414583

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  5,625.00
  

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2006

  	
   

  
	
  Perf.

  	
   

  	
  7414584

  	
   

  	
  Stafford
  County Board of Supervisors

  	
   

  	
  $

  	
  379,988.00
  

  	
   

  	
  7/1/2004

  	
   

  	
  7/1/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414623

  	
   

  	
  New
  River Partners Ltd.

  	
   

  	
  $

  	
  2,500,000.00
  

  	
   

  	
  6/28/2004

  	
   

  	
  12/31/2007

  	
   

  
	
  Fin.

  	
   

  	
  7414691

  	
   

  	
  Timber
  Hill Ltd.

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  7/6/2004

  	
   

  	
  7/6/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414731

  	
   

  	
  Marco
  Investments

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  7/8/2004

  	
   

  	
  7/8/2006

  	
   

  
	
  Fin.

  	
   

  	
  7414732

  	
   

  	
  Marco
  Investments

  	
   

  	
  $

  	
  50,000.00
  

  	
   

  	
  7/8/2004

  	
   

  	
  7/8/2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Bank of America - Total

  	
   

  	
  $

  	
  270,343,329.50 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fin.

  	
   

  	
  F842364

  	
   

  	
  Williams
  Schifino Mangione & Steady

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  12/5/2003

  	
   

  	
  11/22/2006

  	
   

  
	
  Fin.

  	
   

  	
  F843796

  	
   

  	
  Lowndes
  Drosdick Doster Kantor

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  4/4/2005

  	
   

  	
  9/23/2006

  	
   

  
	
  Fin.

  	
   

  	
  F846399

  	
   

  	
  Williams
  Schifino Mangione & Steady

  	
   

  	
  $

  	
  200,000.00
  

  	
   

  	
  5/17/2005

  	
   

  	
  5/17/2007

  	
   

  
	
  Perf

  	
   

  	
  P002376

  	
   

  	
  Board
  of Cty Superv. Prince William Cty.

  	
   

  	
  $

  	
  3,105.00
  

  	
   

  	
  7/28/2005

  	
   

  	
  1/28/2007

  	
   

  
	
  Perf

  	
   

  	
  P002403

  	
   

  	
  Board
  of Cty Superv. Prince William Cty.

  	
   

  	
  $

  	
  373,864.77
  

  	
   

  	
  7/28/2005

  	
   

  	
  11/20/2006

  	
   

  
	
  Perf

  	
   

  	
  P002516

  	
   

  	
  Board
  of Cty Superv. Prince William Cty.

  	
   

  	
  $

  	
  245,992.13
  

  	
   

  	
  8/31/2005

  	
   

  	
  2/28/2007

  	
   

  
	
  Perf

  	
   

  	
  P002861

  	
   

  	
  Board
  of Cty Superv. Prince William Cty.

  	
   

  	
  $

  	
  275,459.96
  

  	
   

  	
  1/20/2006

  	
   

  	
  7/20/2007

  	
   

  
	
  Perf

  	
   

  	
  P003060

  	
   

  	
  Board
  of Cty Superv. Prince William Cty.

  	
   

  	
  $

  	
  396,639.60
  

  	
   

  	
  3/22/2006

  	
   

  	
  3/22/2008

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Sun Trust - Total

  	
   

  	
  $

  	
  1,670,061.46 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fin.

  	
   

  	
  S051174

  	
   

  	
  Dev.
  Guaranty Group-PG

  	
   

  	
  $

  	
  75,000.00
  

  	
   

  	
  4/3/1995

  	
   

  	
  4/3/2007

  	
   

  
	
  Perf.

  	
   

  	
  S133745

  	
   

  	
  Prince
  William County

  	
   

  	
  $

  	
  48,043.89
  

  	
   

  	
  10/14/1999

  	
   

  	
  8/18/2006

  	
   

  
	
  Perf.

  	
   

  	
  S133754

  	
   

  	
  Dev.
  Guaranty Group-PG

  	
   

  	
  $

  	
  67,500.00
  

  	
   

  	
  10/11/1997

  	
   

  	
  4/23/2007

  	
   

  
	
  Perf.

  	
   

  	
  S136733

  	
   

  	
  Stafford
  Cty. Board of Supervisors

  	
   

  	
  $

  	
  12,042.00
  

  	
   

  	
  11/1/1997

  	
   

  	
  11/10/2006

  	
   

  
	
  Fin.

  	
   

  	
  SM201604W

  	
   

  	
  Trinity
  Lake Corp.

  	
   

  	
  $

  	
  91,000.00
  

  	
   

  	
  1/13/2003

  	
   

  	
  12/4/2006

  	
   

  
	
  Fin.

  	
   

  	
  SM411715

  	
   

  	
  National
  Home Insurance Co.

  	
   

  	
  $

  	
  150,000.00
  

  	
   

  	
  2/10/2000

  	
   

  	
  2/10/2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Wachovia - Total

  	
   

  	
  $

  	
  443,585.89 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Perf.

  	
   

  	
  1222

  	
   

  	
  Sowell
  Interests-Parkside LP

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  3/18/2005

  	
   

  	
  3/18/2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Guaranty Bank

  	
   

  	
  $

  	
  100,000.00 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fin.

  	
   

  	
  CPCS-255426

  	
   

  	
  Chicago
  Title & Trust Co.

  	
   

  	
  $

  	
  100,000.00
  

  	
   

  	
  5/3/2006

  	
   

  	
  2/28/2007

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  J P Morgan Chase

  	
   

  	
  $

  	
  100,000.00 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  New Total

  	
   

  	
   

  	
   

  	
  $

  	
  432,383,802.33 

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE 5.1.8

 

MATERIAL ADVERSE EVENTS SINCE OCTOBER 31, 2005

 

None.

 

 

SCHEDULE 5.1.12

CONSENTS AND APPROVALS

 

None.

 

 

EXHIBIT
1.1(A)

 

FORM OF

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

This ASSIGNMENT AND ASSUMPTION AGREEMENT (the
“Assignment”) is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor]
(the “Assignor”) and [Insert name of Assignee]
(the “Assignee”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Credit Agreement identified below (as
amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in
Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment as if set forth herein in full.

 

For an agreed consideration, the Assignor
hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Agent as contemplated below, the interest
in and to all of the Assignor’s rights and obligations under the Credit
Agreement and any other documents or instruments delivered pursuant thereto
that represents the amount and percentage interest identified below of all of
the Assignor’s outstanding rights and obligations under the respective
facilities identified below (including, to the extent included in any such
facilities, letters of credit and swingline loans) (the “Assigned Interest”).
Such sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment, without representation or warranty by
the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
                                                            [and
  is an Affiliate(1)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrower:

  	
   

  	
  K. Hovnanian Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Agent:

  	
   

  	
  PNC Bank, National Association, as the
  agent under the Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
   

  	
  The Sixth Amended and Restated Credit Agreement
  dated May 31, 2006 among K. Hovnanian Enterprises, Inc. (the “Borrower”),
  Hovnanian Enterprises, Inc., as a Guarantor, the Lenders now or hereafter
  party thereto and PNC Bank, National Association, as administrative agent
  (the “Agent”)

  

 

(1) Insert if applicable.

 

 

6.             Assigned Interest:

 

	
  Facility Assigned

  	
   

  	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment/Loans(2)

  	
   

  
	
   

  	
  (3)

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

Effective Date:                             
      , 20      
[TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION
OF TRANSFER IN THE REGISTER THEREFOR.](4)

 

The terms set forth in this Assignment are
hereby agreed to:

 

	
   

  	
  ASSIGNOR

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  
					

 

	
  [Consented to and](5) Accepted:

  
	
   

  
	
  PNC BANK, NATIONAL ASSOCIATION, as

  
	
    Agent

  
	
   

  
	
  By

  	
   

  	
   

  
	
    Name:

  
	
    Title:

  

 

(2) Set forth, to at least 9
decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

(3) Fill in the appropriate
terminology for the types of facilities under the Credit Agreement that are
being assigned under this Assignment (e.g. "Revolving Credit
Commitment", "Term Loan Commitment", etc.) The same percentage
of each facility owned by the Assignor shall be assigned to the Assignee

(4) Assignor shall pay a fee of
$3,500 to the Agent in connection with the Assignment.

(5) To be added only if the
consent of the Agent is required by the terms of the Credit Agreement.

 

2

 

	
  [Consented to:](6)

  
	
   

  
	
  [NAME OF BORROWER OR OTHER RELEVANT PARTY]

  
	
   

  
	
  By

  	
   

  	
   

  
	
    Name:

  
	
    Title:

  

 

(6) To be added only if the consent of the
Borrower and/or other parties (e.g. Swingline Lender, L/C Issuer) is required
by the terms of the Credit Agreement

 

3

 

ANNEX 1

 

[                                    ](7)

 

STANDARD TERMS AND CONDITIONS
FOR ASSIGNMENT

 

AND ASSUMPTION AGREEMENT

 

1.             Representations
and Warranties.

 

1.1           Assignor. The
Assignor (a) represents and warrants that (i) it is the legal and beneficial
owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of
any lien, encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and to consummate the transactions contemplated hereby; and (b)
assumes no responsibility with respect to (i) any statements, warranties or representations
made in or in connection with any Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document delivered pursuant thereto, other
than this Assignment (herein collectively the “Loan Documents”), or any
collateral thereunder, (iii) the financial condition of the Borrower, any of
its Subsidiaries or Affiliates or any other Person obligated in respect of any
Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

 

1.2.          Assignee.
The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) it meets all requirements, if any, of
an eligible assignee under the Credit Agreement, (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement
and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements delivered pursuant
to Section 7.3 thereof, as applicable, and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into this Assignment and to purchase the Assigned Interest on the basis
of which it has made such analysis and decision, and (v) if Assignee is not
incorporated or organized under the laws of the United States of America or any
State thereof, attached to the Assignment is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed
and executed by the Assignee; and (b) agrees that (i) it will, independently
and without reliance on the Agent, the Assignor or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Loan Documents, and (ii) it will perform in accordance with their terms all
of the obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

 

2.             Payments.
From and after the Effective Date, the Agent shall make all payments in respect
of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignor for amounts which have accrued to but excluding
the Effective Date and to the Assignee for amounts which have accrued from and
after the Effective Date.(8)

 

3.             General
Provisions. This Assignment shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns. This
Assignment may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature
page of this Assignment by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment. This Assignment shall be
governed by, and construed in accordance with, the laws of the State of New
Jersey.

 

(7) Describe Credit Agreement
at option of Agent.

(8) Agent should consider
whether this method conforms to its systems. 
In some circumstances, the following alternative language may be
appropriate:  "From and after the
Effective Date, the Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignee whether such amounts have accrued prior to or on or after the
Effective Date.  The Assignor and the
Assignee shall make all appropriate adjustments in payments by the Agent for
periods prior to the Effective Date or with respect to the making of this
assignment directly between themselves."

 

 

EXHIBIT 1.1(G)(1)

 

FORM OF

AMENDED AND RESTATED GUARANTY AND SURETYSHIP AGREEMENT

 

THIS
AMENDED AND RESTATED GUARANTY AND SURETYSHIP AGREEMENT (the “Guarantee”) is
made and entered into May 31, 2006, by each of the entities listed on the
signature pages hereto (each a “Guarantor” and collectively, the “Guarantors”),
in favor of PNC BANK, NATIONAL ASSOCIATION, including its successors and
assigns, as administrative agent for the Lenders under the Credit Agreement
described below (the “Agent”).

 

BACKGROUND:

 

In
order to induce the Lenders to make loans to K. Hovnanian Enterprises, Inc., a
California corporation (the “Borrower”), in accordance with that certain Sixth Amended
and Restated Credit Agreement of even date herewith (as it may hereafter from
time to time be amended, restated, modified or supplemented, the “Credit
Agreement”) by and among the Borrower, Hovnanian Enterprises, Inc. (one of the
Guarantors), the Agent, and the Lenders now or hereafter party thereto (the “Lenders”),
each Guarantor hereby unconditionally and irrevocably guarantees and becomes
surety as though it was a primary obligor for the full and timely payment when
due, whether at maturity, by declaration, acceleration or otherwise, of the
principal of and interest and fees on all Obligations (as defined in the Credit
Agreement), both those now in existence and those that shall hereafter be made,
of the Borrower to the Agent and the Lenders under the Credit Agreement and the
Notes issued by the Borrower in connection therewith and any extensions,
renewals, replacements or refundings thereof, and each and every other
obligation or liability (both those now in existence and those that shall
hereafter arise and including, without limitation, all costs and expenses of
enforcement and collection, including reasonable attorney’s fees) of the
Borrower to the Lenders under the Credit Agreement and the other Loan Documents
(as defined in the Credit Agreement), and any extensions, renewals,
replacements or refundings thereof (hereinafter referred to as the “Guaranteed
Indebtedness”), whether or not such Guaranteed Indebtedness or any portion
thereof shall hereafter be released or discharged or is for any reason invalid
or unenforceable.

 

1.             Capitalized terms used herein and not otherwise
defined herein shall have such meanings given to them in the Credit Agreement.

 

2.             Each Guarantor agrees to make such full payment
forthwith upon demand of the Agent when the Guaranteed Indebtedness or any
portion thereof is due to be paid by the Borrower to the Lenders, whether at
stated maturity, by declaration, acceleration or otherwise. Each Guarantor
agrees to make such full payment irrespective of whether or not any one or more
of the following events has occurred: 
(i) the Agent has made any demand on the Borrower or the other
Guarantors; (ii) the Agent has taken any action of any nature against the
Borrower or the other Guarantors; (iii) the Agent has pursued any rights
which it has against any other Person who may be liable for the Guaranteed
Indebtedness; (iv) the Agent holds or has resorted to any security for the
Guaranteed Indebtedness; or (v) the Agent has invoked any other remedy or
right it has available with respect to the Guaranteed Indebtedness. Each
Guarantor further agrees to

 

 

make full payment to the Lenders even if circumstances exist which
otherwise constitute a legal or equitable discharge of such Guarantor as surety
or guarantor.

 

3.             The terms, conditions and provisions of Section
5.1 [Representations and Warranties] of the Credit Agreement are incorporated
herein by reference as if fully set forth in this Guarantee. The Guarantors,
jointly and severally, without any further act or undertaking or the occurrence
of any other event, make the representations and warranties set forth in
Section 5.1 [Representations and Warranties] of the Credit Agreement to the
Agent and to each of the Lenders on the date hereof and on the Closing Date and
each date thereafter on which a Loan is made or a Letter of Credit is issued as
provided in and subject to Section 6.1 [First Loans and Letters of Credit] and
Section 6.2 [Each Additional Loan or Letter of Credit] of the Credit Agreement.
In addition, each Guarantor warrants to the Agent and the Lenders that:
(i) no other agreement, representation or special condition exists between
such Guarantor and the Agent or any Lender regarding the liability of such
Guarantor hereunder, nor does any understanding exist between such Guarantor
and any Lender that the obligations of such Guarantor hereunder are or will be
other than as set forth herein; and (ii) as of the date hereof, such
Guarantor has no defense whatsoever to any action or proceeding that may be
brought to enforce this Guarantee.

 

4.             Until all of the Guaranteed Indebtedness is paid
in full, each Guarantor waives and agrees not to enforce any of the rights of
such Guarantor against the Borrower or the other Guarantors, including, but not
limited to: (i) any right of such Guarantor to be subrogated in whole or
in part to any right or claim with respect to any Guaranteed Indebtedness or
any portion thereof to the Lenders which might otherwise arise from payment by
any Guarantor to the Lenders on the account of the Guaranteed Indebtedness or
any portion thereof; and (ii) any right of any Guarantor to require the
marshalling of assets of the Borrower or the other Guarantors which might
otherwise arise from payment by any Guarantor to the Lenders on account of the
Guaranteed Indebtedness or any portion thereof. If any amount shall be paid to
any Guarantor in violation of the preceding sentence, such amount shall be
deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Lenders and shall forthwith be paid to the Agent
and the Lenders to be credited and applied upon the Guaranteed Indebtedness,
whether matured or unmatured, in accordance with the terms of the Credit
Agreement. Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by the Credit Agreement
and that the waivers set forth in this Section are knowingly made in
contemplation of such benefits.

 

5.             Each Guarantor waives promptness and diligence by
the Lenders with respect to its rights under the Credit Agreement or any of the
other Loan Documents, including, but not limited to, this Guarantee.

 

6.             Each Guarantor waives any and all notice with
respect to:  (i) acceptance by the
Agent on behalf of the Lenders of this Guarantee; (ii) the provisions of
any note, instrument or agreement relating to the Guaranteed Indebtedness; and
(iii) any default in connection with the Guaranteed Indebtedness.

 

7.             Each Guarantor waives any presentment, demand,
notice of dishonor or nonpayment, protest, and notice of protest in connection
with the Guaranteed Indebtedness.

 

2

 

8.             Each Guarantor agrees that the Lenders may from
time to time and as many times as the Lenders, in their sole discretion, deem
appropriate, do any of the following without notice to any Guarantor and without
adversely affecting the validity or enforceability of this Guarantee:
(i) release, surrender, exchange, compromise, or settle the Guaranteed
Indebtedness or any portion thereof; (ii) change, renew, or waive the
terms of the Guaranteed Indebtedness or any portion thereof; (iii) change,
renew, or waive the terms, including without limitation, the rate of interest
charged to the Borrower or any Guarantor, of any note, instrument, or agreement
relating to the Guaranteed Indebtedness or any portion thereof; (iv) grant
any extension or indulgence with respect to the payment to the Lenders of the
Guaranteed Indebtedness or any portion thereof; (v) enter into any
agreement of forbearance with respect to the Guaranteed Indebtedness or any
portion thereof; (vi) release, surrender, exchange or compromise any
security held by the Agent on behalf of the Lenders for the Guaranteed
Indebtedness; (vii) release any Person who is a guarantor or surety or who
has agreed to purchase the Guaranteed Indebtedness or any portion thereof; and
(viii) release, surrender, exchange or compromise any security or lien
held by the Agent on behalf of the Lenders for the liabilities of any Person
who is a guarantor or surety for the Guaranteed Indebtedness or any portion
thereof. Each Guarantor agrees that the Agent on behalf of the Lenders may do
any of the above as it deems necessary or advisable, in its sole discretion,
without giving any notice to any Guarantor, and that each Guarantor will remain
liable for full payment to the Lenders of the Guaranteed Indebtedness.

 

9.             Each Guarantor agrees to be jointly and severally
bound by the terms of this Guarantee and jointly and severally liable under
this Guarantee. As a result of such liability, each Guarantor acknowledges that
the Lenders may, in their sole discretion, elect to enforce this Guarantee for
the total Guaranteed Indebtedness against any Guarantor without any duty or
responsibility to pursue the other Guarantors and that such an election by the
Lenders shall not be a defense to any action the Agent on behalf of the Lenders
may elect to take against any Guarantor.

 

10.           If any amount owing hereunder shall have become
due and payable (by acceleration or otherwise), any Lender and any branch,
subsidiary or affiliate of any Lender anywhere in the world shall each have the
right, at any time and from time to time to the fullest extent permitted by
Law, in addition to all other rights and remedies available to it, without
prior notice to any Guarantor, to set-off against and to appropriate and apply
to such due and payable amounts any debt owing to, and any other funds held in
any manner for the account of any Guarantor by any Lender or any such branch,
subsidiary or affiliate including, without limitation, all funds in all deposit
accounts (whether time or demand, general or special, provisionally credited or
finally credited, or otherwise) now or hereafter maintained by any Guarantor
with any Lender or such branch, subsidiary or affiliate. Such right shall exist
whether or not any Lender shall have given notice or made any demand hereunder
or under any of the Notes or Loan Documents, whether or not such debt owing to
or funds held for the account of any Guarantor is or are matured or unmatured,
and regardless of the existence or adequacy of any collateral, guarantee or any
other security, right or remedy available to any Lender. Each Guarantor hereby
consents to and confirms the foregoing arrangements, and confirms each Lenders
rights and each such branch’s, subsidiary’s and affiliate’s rights of banker’s
lien and set-off.

 

3

 

11.           Each Guarantor recognizes and agrees that the
Borrower, after the date hereof, may incur additional Obligations or other
obligations, fees and expenses to the Lenders under the Credit Agreement,
refinance existing Guaranteed Indebtedness or pay existing Guaranteed
Indebtedness and subsequently incur additional Obligations to the Lenders under
the Credit Agreement, and that in any such transaction, even if such transaction
is not now contemplated, the Lenders will rely in any such case upon this
Guarantee and the enforceability thereof against each Guarantor and that this
Guarantee shall remain in full force and effect with respect to such future
Obligations of the Borrower to the Lenders and such Obligations shall for all
purposes constitute Guaranteed Indebtedness.

 

12.           Each Guarantor further agrees that, if at any time
all or any part of any payment, from whomever received, theretofore applied by
the Lenders to any of the Guaranteed Indebtedness is or must be rescinded or
returned by the Lenders for any reason whatsoever including, without
limitation, the insolvency, bankruptcy or reorganization of any Guarantor, such
liability shall, for the purposes of this Guarantee, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in
existence, notwithstanding such application by any Lender, and this Guarantee
shall continue to be effective or be reinstated, as the case may be, as to such
liabilities, all as though such application by the Lenders had not been made.

 

13.           Each Guarantor agrees that no failure or delay on
the part of any Lender or of the Agent on behalf of the Lenders to exercise any
of its rights, powers or privileges under this Guarantee shall be a waiver of
such rights, powers or privileges or a waiver of any default, nor shall any
single or partial exercise of any of the Agent’s or of any Lenders’ rights,
powers or privileges preclude other or further exercise thereof or the exercise
of any other right, power or privilege or be construed as a waiver of any
default. Each Guarantor further agrees that no waiver or modification of any
rights of the Lenders or of the Agent under this Guarantee shall be effective
unless in writing and signed by each Lender and the Agent. Each Guarantor
further agrees that each written waiver shall extend only to the specific
instance actually recited in such written waiver and shall not impair the
rights of any Lender or of the Agent in any other respect.

 

14.           Each Guarantor unconditionally agrees to pay all
costs and expenses, including attorney’s fees, incurred by the Agent on behalf
of the Lenders in enforcing this Guarantee against any Guarantor.

 

15.           Each Guarantor agrees that this Guarantee and the
rights and obligations of the parties hereto shall for all purposes be governed
by and construed and enforced in accordance with the substantive law of the
State of New Jersey without giving effect to its principles of conflict of
laws.

 

16.           Each Guarantor acknowledges that in addition to
binding itself to this Guarantee, at the time of execution of this Guarantee
the Agent offered to such Guarantor a copy of this Guarantee in the form in
which it was executed and that by acknowledging this fact such Guarantor may
not later be able to claim that a copy of the Guarantee was not received by it.

 

4

 

17.           Each Guarantor agrees that this Guarantee shall be
binding upon each Guarantor and its successors and assigns; provided, however,
that no Guarantor may assign or transfer any of its rights and obligations
hereunder or any interest herein. Each Guarantor further agrees that
(i) this Guarantee is freely assignable and transferable by the Lenders in
connection with any assignment or transfer of the Guaranteed Indebtedness and
(ii) this Guarantee shall inure to the benefit of the Lenders, and their
successors and assigns.

 

18.           Each Guarantor agrees that if any Guarantor fails
to perform any covenant or agreement hereunder or if there occurs and continues
to exist an Event of Default under the Credit Agreement, all or any part of the
Guaranteed Indebtedness may be declared to be forthwith due and payable and, in
the case of an Event of Default described in Section 8.1.14 [Involuntary
Proceedings] or Section 8.1.15 [Voluntary Proceedings] of the Credit Agreement,
the Guaranteed Indebtedness shall be immediately due and payable, in any case
without presentment, demand, protest or notice of any kind, all of which are
hereby expressly waived.

 

19.           Each Guarantor agrees that the enumeration of the
Lenders’ rights and remedies set forth in this Guarantee is not intended to be
exhaustive and the exercise by any of the Lenders of any right or remedy shall
not preclude the exercise of any other rights or remedies, all of which shall
be cumulative and shall be in addition to any other right or remedy given
hereunder or under any other agreement among the parties to the Loan Documents
or which may now or hereafter exist at law or in equity or by suit or
otherwise.

 

20.           Each Guarantor agrees that all notices,
statements, requests, demands and other communications under this Guarantee
shall be given to each of the Guarantors at the address set forth below their
respective names on the signature page hereof in the manner provided in
Section 10.6 [Notices] of the Credit Agreement.

 

21.           (a)           Each Guarantor agrees that the provisions of this
Guarantee are severable, and in an action or proceeding involving any state or
federal bankruptcy, insolvency or other law affecting the rights of creditors
generally:

 

(i)            if any
clause or provision shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction and shall not
in any manner affect such clause or provision in any other jurisdiction, or any
other clause or provision in this Guarantee in any jurisdiction.

 

(ii)           if this
Guarantee would be held or determined to be void, invalid or unenforceable on
account of the amount of a Guarantor’s aggregate liability under this
Guarantee, then, notwithstanding any other provision of this Guarantee to the
contrary, the aggregate amount of such liability shall, without any further
action by the Lenders, such Guarantor or any other Person, be automatically
limited and reduced to the highest amount which is valid and enforceable as
determined in such action or proceeding, which (without limiting the generality
of the foregoing) may be an amount which is not greater than the greater of:

 

(A)          the fair
consideration actually received by such Guarantor under the terms of and as a
result of the Loan Documents, including, without limiting the

 

5

 

generality of the
foregoing, and to the extent not inconsistent with applicable federal and state
laws affecting the enforceability of guarantees, distributions or advances made
to such Guarantor with the proceeds of any credit extended under the Loan
Documents in exchange for its guaranty of the Guaranteed Indebtedness, or

 

(B)           the excess
of (1) the amount of the fair saleable value of the assets of such
Guarantor as of the date of this Guarantee as determined in accordance with
applicable federal and state laws governing determinations of the insolvency of
debtors as in effect on the date thereof over (2) the amount of all
liabilities of such Guarantor as of the date of this Guarantee, also as
determined on the basis of applicable federal and state laws governing the
insolvency of debtors as in effect on the date thereof.

 

(b)           If the
guarantee by any one or more Guarantors of the Guaranteed Indebtedness is held
or determined to be void, invalid or unenforceable, in whole or in part, such
holding or determination shall not impair or affect:

 

(i)            the
validity and enforceability of the guarantee hereunder by any other Guarantor,
which shall continue in full force and effect in accordance with its terms; or

 

(ii)           the
validity and enforceability of any clause or provision not so held to be void,
invalid or unenforceable.

 

22.           EACH GUARANTOR HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS GUARANTEE. EACH GUARANTOR (i) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY LENDER HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER, AND EXECUTION AND DELIVERY HEREOF BY EACH GUARANTOR, AND
(ii) ACKNOWLEDGES THAT THE ENTERING INTO OF THE CREDIT AGREEMENT BY THE
LENDERS HAS BEEN INDUCED BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS
SET FORTH IN THIS SECTION.

 

23.           Each Guarantor (i) hereby irrevocably submits
to the nonexclusive jurisdiction of the Superior Court of New Jersey, Law
Division, Middlesex County, or any successor to said court, and to the
nonexclusive jurisdiction of the United States District Court for the District
of New Jersey, or any successor to said court (hereinafter referred to as the “New
Jersey Courts”) for purposes of any suit, action or other proceeding which
relates to this Guarantee or any other Loan Document, (ii) to the extent
permitted by applicable Law, hereby waives and agrees not to assert by way of
motion, as a defense or otherwise in any such suit, action or proceeding, any
claim that it is not personally subject to the jurisdiction of the New Jersey
Courts; that such suit, action or proceeding is brought in an inconvenient
forum; that the venue of such suit, action or proceeding is improper; or that
this Guarantee or any Loan Document may not be enforced in or by the New Jersey
Courts, (iii) hereby agrees not to seek, and hereby waives, any collateral
review by any other court, which may be called upon to enforce the judgment of
any of the New

 

6

 

Jersey Courts, of the merits of any such suit, action or proceeding or the
jurisdiction of the New Jersey Courts, and (iv) waives personal service of
any and all process upon it and consents that all such service of process be
made by certified or registered mail addressed as provided in Section 20 hereof
and service so made shall be deemed to be completed upon actual receipt thereof.
Nothing herein shall limit any Lenders right to bring any suit, action or other
proceeding against any Guarantor or any of any Guarantor’s assets or to serve
process on any Guarantor by any means authorized by Law.

 

24.           Each Guarantor waives all defenses based on
suretyship not specifically waived.

 

25.           At
any time when the Borrower wishes to cause the Lenders to release a Guarantor
from its obligations under this Guarantee (whether directly or in connection
with the designation of a Restricted Subsidiary as a Non-Restricted Person),
the consent of the Lenders shall be required as described below and shall be
subject to the other provisions of this Section 25.

 

(a)           For
the release of (i) any Guarantor whose assets are principally comprised of
residential or commercial property which is leased or held for the purposes of
leasing to unaffiliated third parties or (ii) any Guarantor in which any Loan
Party (or Loan Parties in the aggregate) has, at the time of such release, a
Subsidiary Investment less than $1,000,000 or (iii) Corporate Office Subsidiary
incident to it becoming an Non-Restricted Person or (iv) any Guarantor at the
time such Guarantor enters into a newly-formed Joint Venture with a person
which is not an Affiliate of the Loan Parties and transfers all or a
substantial portion of its assets to such Joint Venture provided that such
Guarantor is a Non-Restricted Person (or simultaneously with Borrower’s request
for such release the Borrower has designated such Guarantor as a “Non-Restricted
Person” in compliance with Section 2.11.2 of the Credit Agreement), no consent
of the Lenders shall be required and such request of the Borrower shall be
granted absent an Event of Default or Potential Default, effective on the date
specified by the Borrower which shall not be earlier than five (5) Business
Days after the receipt by the Agent of such request;

 

(b)           For
the release of any Guarantor (not described in clause 26(a)(i) hereof) in which
any Loan Party (or Loan Parties in the aggregate) has, at the time of such
release, a Subsidiary Investment greater than or equal to $1,000,000 and less
than $5,000,000 (except Corporate Office Subsidiary, if otherwise applicable),
the consent of Required Lenders shall be required; and

 

(c)           For
the release of Hovnanian or any Guarantor (not described in clause 26(a)(i)
hereof) in which any Loan Party (or Loan Parties in the aggregate) has, at the
time of such release, a Subsidiary Investment greater than or equal to $5,000,000
(except Corporate Office Subsidiary, if otherwise applicable), the consent of
100% of the Lenders shall be required.

 

(d)           The
designation of a Person as a Non-Restricted Person for any reason shall not
itself constitute a release of any Guarantor and any such release of such
Person shall be in accordance with Section 2.11 of the Credit Agreement.

 

7

 

26.           All
of the terms, conditions and provisions of Sections 7.1 [Affirmative
Covenants], Section 7.2 [Negative Covenants] and Section 7.3 [Reporting
Requirements] of the Credit Agreement are incorporated herein by reference as
if fully set forth herein. Each of the Guarantors, jointly and severally,
without any further act or undertaking or the occurrence of any other event,
covenant and agree that until payment in full of the Loans, Reimbursement
Obligations and Letter of Credit Borrowings and interest thereon, expiration or
termination of all Letters of Credit, satisfaction of all of the Loan Parties’
other Obligations under the Credit Agreement and the satisfaction of the
Guaranteed Indebtedness under this Guarantee and termination of the
Commitments, they shall comply with the affirmative covenants set forth in
Section 7.1 [Affirmative Covenants] of the Credit Agreement, comply with the
negative covenants set forth in Section 7.2 [Negative Covenants] of the Credit
Agreement and comply with Section 7.3 [Reporting Requirements] of the Credit
Agreement. In particular, each of the Guarantors shall not own or create
directly or indirectly any Subsidiaries other than (i) any Subsidiary which has
joined this Guarantee as a Guarantor on the Closing Date, (ii) any Subsidiary
formed or acquired after the Closing Date which joins this Guarantee as a
Guarantor pursuant to Section 27 below or (iii) any Non-Restricted Person.
To the extent that the obligations set forth in Section 7.3 [Reporting
Requirements] are obligations which, by their nature, can only be performed
and/or satisfied by the Borrower and/or by Hovnanian, each of the Guarantors
shall fully cooperate with the Borrower and with Hovnanian in their respective
efforts to comply with their respective obligations set forth therein.

 

27.           Any
Subsidiary of Hovnanian which is required to join this Guarantee as a Guarantor
pursuant to Section 26 hereof or which is to become a Restricted
Subsidiary shall execute and deliver to the Agent (i) a Guarantor Joinder
pursuant to which it shall join as a Guarantor this Guarantee; and (ii) at the
request of the Agent, documents in the forms described in Section 6.1 [First
Loans and Letters of Credit] of the Credit Agreement, modified as appropriate
to relate to such new Guarantor. Such new Guarantor shall deliver such
Guarantor Joinder and any related documents that the Agent may reasonably
request to the Agent after the formation thereof and its designation as a
Restricted Subsidiary, and such Subsidiary shall not be a Restricted Subsidiary
until the delivery and effectiveness of the items required herein.

 

28.           All
of the representations and warranties of the Guarantors contained herein
(either directly or indirectly) or made in connection herewith shall survive
the making of Loans and issuance of Letters of Credit and shall not be waived
by the execution and delivery of the Credit Agreement by any other party,
including the Agent and the Lenders, any investigation by the Agent or the
Lenders, the making of Loans, issuance of Letters of Credit, or payment in full
of the Loans. All covenants and agreements of the Guarantors contained in this
Guarantee shall continue in full force and effect from and after the date
hereof so long as the Borrower may borrow or request Letters of Credit under
the Credit Agreement, and until termination of the Commitments and payment in
full of the Loans and expiration or termination of all Letters of Credit.

 

29.           Notwithstanding
the other provisions contained herein, at such time as the Guaranteed
Indebtedness shall have been paid in full, this Guarantee and all obligations
of the Agent and each Guarantor hereunder shall terminate, all without delivery
of any instrument or performance of any act by any party. At the request and
sole expense of the Guarantors,

 

8

 

following any such termination, the Agent shall execute and deliver to
the Guarantors such documents as the Guarantors shall reasonably request to
evidence such termination.

 

[SIGNATURES
APPEAR ON FOLLOWING PAGE]

 

9

 

IN
WITNESS WHEREOF, each Guarantor and the Agent, intending to be legally bound,
have executed this Guarantee on the date first above written.

 

	
   

  	
   

  	
  HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kevin C. Hake

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARROW PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN DEVELOPMENTS
  OF FLORIDA,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOV INTERNATIONAL,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOV IP, II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOV IP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  ACQUISITIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BERNARDS IV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BRANCHBURG III, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BRIDGEPORT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BRIDGEWATER VI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BURLINGTON III, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  BURLINGTON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  CALABRIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT CARMEL
  DEL MAR, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  CASTILE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  CHAPARRAL, INC.

  

 

1

 

	
   

  	
   

  	
  K. HOVNANIAN AT
  CLARKSTOWN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  CRESTLINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  DOMINGUEZ HILLS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT EAST
  WHITELAND I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  FREEHOLD TOWNSHIP I,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HERSHEY’S MILL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HACKETTSTOWN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HIGHLAND VINEYARDS,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT HOPEWELL
  IV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HOPEWELL VI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT HOWELL
  TOWNSHIP,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT KINGS
  GRANT I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  KLOCKNER FARMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LA
  TERRAZA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  LAKEWOOD, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  SAUCON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MAHWAH
  II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MAHWAH
  V, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MAHWAH
  VI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MAHWAH
  VII, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MANALAPAN, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO II, INC.

  

 

2

 

	
   

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO TOWNSHIP

  IV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT METRO
  DC SOUTH, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MONTCLAIR NJ, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MONTGOMERY I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MONROE
  II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  NORTHERN

  WESTCHESTER, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  NORTHLAKE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT OCEAN
  TOWNSHIP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT OCEAN
  WALK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PERKIOMEN I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PERKIOMEN II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PLAINSBORO III, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PRINCETON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT RANCHO
  CRISTIANITOS,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  RESERVOIR RIDGE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SAN
  SEVAINE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SARATOGA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SAWMILL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SCOTCH
  PLAINS II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SMITHVILLE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK III,

  INC.

  

 

3

 

	
   

  	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK V,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT STONE
  CANYON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT STONY
  POINT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SYCAMORE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT TANNERY
  HILL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT THE
  BLUFF, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT THE
  CEDARS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  THORNBURY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  TIERRASANTA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  TROVATA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT TUXEDO,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT UNION
  TOWNSHIP I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT UPPER
  FREEHOLD

  TOWNSHIP I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT UPPER
  MAKEFIELD I,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT VAIL
  RANCH, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT WALL
  TOWNSHIP VI,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT WALL
  TOWNSHIP VIII,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  WASHINGTONVILLE,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT WAYNE
  III, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT WAYNE
  V, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  WILDROSE, INC.

  

 

4

 

	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  NORTHEAST,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  MARYLAND, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF METRO

  WASHINGTON, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF NEW YORK,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF

  PENNSYLVANIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF SOUTHERN

  CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION III, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  CONSTRUCTION 

  MANAGEMENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  VIRGINIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ARIZONA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  CALIFORNIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  CONNECTICUT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF D.C.,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  DELAWARE, INC.

  

 

5

 

	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  GEORGIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  ILLINOIS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  DEVELOPMENTS OF

  INDIANA, 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
  ENTERPRISES, INC.

  

 

6

 

	
   

  	
   

  	
  K. HOVNANIAN EQUITIES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN FORECAST
  HOMES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF
  NORTH

  CAROLINA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF VIRGINIA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN INVESTMENT
  PROPERTIES

  OF NEW JERSEY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN PA REAL
  ESTATE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN PORT
  IMPERIAL URBAN 

  RENEWAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NEWARK 

  URBAN RENEWAL CORPORATION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN PROPERTIES
  OF NORTH 

  BRUNSWICK V, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN PROPERTIES
  OF WALL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KHC ACQUISITION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDARAMA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT LONG BRANCH,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD OF
  DELAWARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MCNJ, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PINE BROOK COMPANY,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REFLECTIONS OF YOU
  INTERIORS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SEABROOK ACCUMULATION 

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STONEBROOK HOMES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE MATZEL &
  MUMFORD ORGANIZATION,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WASHINGTON HOMES, INC.

  

 

7

 

	
   

  	
   

  	
  WESTMINSTER HOMES OF
  TENNESSEE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WESTMINSTER HOMES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WH LAND I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WH PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
  On behalf of, and as Senior Vice-President - 

  Finance and Treasurer of each of the

  foregoing corporations

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF
  D.C., L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of D.C., Inc.,

  as the sole member of the foregoing limited 

  liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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.

  
										

 

8

 

	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF METRO D.C. 

  NORTH, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  BAYVIEW, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  CAMP SPRINGS, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  FOREST RUN, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WESTMINSTER HOMES OF
  ALABAMA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WESTMINSTER HOMES OF
  MISSISSIPPI,

  L.L.C.

  

 

9

 

	
   

  	
   

  	
  WOODLAND LAKES CONDOS
  AT BOWIE 

  NEWTOWN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Maryland,

  Inc., as the sole member of each of the 

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALFORD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DULLES COPPERMINE,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  VIRGINIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LAKE
  RIDGE CROSSING,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LAKE
  TERRAPIN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES
  OF METRO 

  WASHINGTON, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN FOUR
  SEASONS @ HISTORIC 

  VIRGINIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN FRANCUSCUS
  HOMES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  BANYON COVE, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  CAMERON 

  STATION, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  LAUREL 

  HIGHLANDS, L.L.C.

  
								

 

10

 

	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  PAYNE STREET, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  THE EASTON, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN SUMMIT
  HOLDINGS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS AT 

  ASHBURN VILLAGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS AT VINT 

  HILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of 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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF 

  NEW JERSEY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  ABERDEEN URBAN 

  RENEWAL, 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT BLUE
  HERON PINES,

  L.L.C.

  
								

 

11

 

	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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 FIFTH
  AVENUE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  FLORENCE I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  FLORENCE II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT FOREST
  MEADOWS,

  L.L.C.

  

 

12

 

	
   

  	
   

  	
  K. HOVNANIAN AT
  FRANKLIN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  FREEHOLD TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT GREAT
  NOTCH, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT GUTTENBERG,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HACKETTSTOWN 

  II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT HAMBURG
  

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HAMBURG, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HAWTHORNE, L.L.C

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT HAZLET,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT JACKSON
  I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  JACKSON, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT JERSEY
  CITY IV, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT JERSEY
  CITY V URBAN 

  RENEWAL COMPANY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  LAFAYETTE ESTATES, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  LAWRENCE V, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  LINWOOD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LITTLE
  EGG HARBOR 

  TOWNSHIP II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LITTLE
  EGG HARBOR

  CONTRACTORS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LITTLE
  EGG HARBOR, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LONG
  BRANCH I, L.L.C.

  

 

13

 

	
   

  	
   

  	
  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 I, 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO VI, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MARLBORO VII, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MENDHAM
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MIDDLE
  TOWNSHIP,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MIDDLETOWN II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MIDDLETOWN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MILLVILLE I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MILLVILLE II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MILLVILLE III, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MONROE
  III, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MONROE
  IV, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MONROE
  NJ, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MONTVALE, L.L.C.

  

 

14

 

	
   

  	
   

  	
  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,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT NORTH
  HALEDON, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT NORTH
  WILDWOOD, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  NORTHFIELD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT OLD
  BRIDGE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PARAMUS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PARSIPPANY-TROY 

  HILLS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PITTSGROVE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  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.

  

 

15

 

	
   

  	
   

  	
  K. HOVNANIAN AT SCOTCH
  PLAINS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SMITHVILLE III, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SOMERS
  POINT, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SOUTH
  BRUNSWICK, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT SPARTA,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  SPRINCO, 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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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
  FRONT STREET, 

  L.L.C.

  

 

16

 

	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN CENTRAL
  ACQUISITIONS, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN CLASSICS,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN CLASSICS
  CIP, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN
  INVESTMENTS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN NORTH
  CENTRAL 

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN NORTH
  JERSEY 

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN NORTHEAST
  SERVICES, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN SHORE
  ACQUISITIONS, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN SOUTHERN
  NEW JERSEY, 

  L.LC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN SOUTH
  JERSEY 

  ACQUISITIONS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN T&C
  INVESTMENT, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN’S PRIVATE
  HOME 

  PORTFOLIO, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NORTHEAST BUILDING
  PRODUCTS & 

  CONTRACTOR SERVICES, L.L.C.

  

 

17

 

	
   

  	
   

  	
  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

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF

  CALIFORNIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT 3 CHAPMAN,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  EVERGREEN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT 4S,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT ACQUA
  VISTA, L.L.C.

  
														

 

18

 

	
   

  	
   

  	
  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
  ROSEMARY LANTANA, 

  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LA
  HABRA KNOLLS, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LAKE
  HILLS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LITTLE
  TOKYO, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  MENIFEE, L.L.C.

  

 

19

 

	
   

  	
   

  	
  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 PACIFIC
  BLUFFS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  PACIFICA SAN JUAN, 

  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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
  TOWNGATE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT TRAIL
  RIDGE, L.L.C.

  

 

20

 

	
   

  	
   

  	
  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 

  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  
							

 

21

 

	
   

  	
   

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  MACUNGIE 

  TOWNSHIP I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  MACUNGIE 

  TOWNSHIP II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  MAKEFIELD 

  TOWNSHIP I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  MORELAND I, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT LOWER
  MORELAND II, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  NORTHAMPTON.

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT RAPHO,
  L.L.C.

  
							

 

22

 

	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RIDGEMORE UTILITY
  ASSOCIATES OF 

  PENNSYLVANIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN SUMMIT
  HOMES OF 

  PENNSYLVANIA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Companies
  of Pennsylvania, 

  Inc., as the sole member of each of the 

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF 

  FLORIDA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN CAMBRIDGE
  HOMES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN FCS,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN FIRST
  HOMES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN STANDING
  ENTITY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN T&C
  HOMES AT FLORIDA, 

  L.L.C.

  
							

 

23

 

	
   

  	
   

  	
  K. HOVNANIAN WINDWARD
  HOMES, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF
  MARYLAND,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Hovnanian Developments
  of Florida, Inc., as 

  the sole member of each of the foregoing 

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN COMPANIES,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Enterprises,
  Inc., as member 

  of the foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of New Jersey 

  II, Inc., as member of the foregoing limited 

  liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
							

 

24

 

	
   

  	
   

  	
  K. HOVNANIAN EASTERN
  PENNSYLVANIA, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian at
  Perkiomen II, Inc., as the 

  sole member of the foregoing limited 

  liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN 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.

  
							

 

25

 

	
   

  	
   

  	
  K. HOVNANIAN GREAT
  WESTERN HOMES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Arizona,

  Inc., as the sole member of each of the 

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  HIGHLAND SHORES,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT
  RIDGESTONE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF
  MINNESOTA,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN’S FOUR
  SEASONS AT RUSH 

  CREEK, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN T&C
  HOMES OF 

  MINNESOTA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Minnesota, 

  Inc., as the sole member of each of the 

  foregoing limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
							

 

26

 

	
   

  	
   

  	
  K. HOVNANIAN OHIO
  REALTY, 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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  
							

 

27

 

	
   

  	
   

  	
  K. HOVNANIAN SUMMIT
  HOMES OF 

  MICHIGAN, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Michigan, 

  Inc., as the sole member of the foregoing 

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KINGS COURT AT
  MONTGOMERY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT
  CHESTERFIELD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT APPLE RIDGE,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT BROOKHILL,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT EAST MILL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT HERITAGE
  WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT MORRISTOWN,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SHERIDAN,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SPARTA,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SPINNAKER
  POINTE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SPRUCE
  HOLLOW, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SPRUCE
  MEADOWS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT SPRUCE RUN,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT THE
  HIGHLANDS, L.L.C.

  
							

 

28

 

	
   

  	
   

  	
  MATZEL & MUMFORD AT
  CRANBURY 

  KNOLL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  EGG HARBOR,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  FREEHOLD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  HERITAGE 

  LANDING, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  MONTGOMERY,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  PHILLIPSBURG,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  SOUTH 

  BRUNSWICK, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  WOODLAND 

  CREST, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE LANDINGS AT
  SPINNAKER POINTE, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD OF
  DELAWARE, 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

  
							

 

29

 

	
   

  	
   

  	
  M&M AT EAST
  RUTHERFORD, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT KENSINGTON
  WOODS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT ROBERT
  MORRIS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT TAMARACK
  HOLLOW, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT THE CHATEAU,
  L.LC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT WEST ORANGE,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT WESTPORT,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  M&M AT WHEATENA
  URBAN RENEWAL, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MATZEL & MUMFORD AT
  SOUTH BOUND 

  BROOK URBAN RENEWAL, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MMIP, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  M&M Investments,
  L.P., as the sole member 

  of each of the foregoing limited liability 

  companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  FAIRWOOD, 

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  JONES STATION 

  1, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES AT
  JONES STATION 

  2, L.L.C.

  
							

 

30

 

	
   

  	
   

  	
  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:

  	
  Goodman Family of
  Builders, L.P., as the 

  sole member of the foregoing limited 

  liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of 

  Florida, as general partner of the 

  foregoing limited partnership.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President —

  Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
									

 

31

 

	
   

  	
   

  	
  K. HOVNANIAN AT NEW
  WINDSOR, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS
  I, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS
  II, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT YONKERS
  III, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian at
  Northern Westchester, Inc.,

  as the sole member of each of the foregoing 

  limited liability companies.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  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

  
							

 

32

 

	
   

  	
   

  	
  K. HOVNANIAN DELAWARE
  ACQUISITIONS,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN HOMES OF
  DELAWARE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Delaware, 

  Inc., as the sole member of the foregoing 

  limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN AT MENIFEE
  VALLEY

  CONDOMINIUMS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian’s Four
  Seasons At Menifee 

  Valley, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
							

 

33

 

	
   

  	
   

  	
  HOVNANIAN LAND
  INVESTMENT GROUP OF 

  NORTH CAROLINA, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of North 

  Carolina, Inc., as the sole member of the 

  foregoing limited liability company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN 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

  
							

 

34

 

	
   

  	
   

  	
  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 VENTURE I,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian at Raritan
  I, 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

  
							

 

35

 

	
   

  	
   

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HOVNANIAN CRAFTBUILT
  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

  
							

 

36

 

	
   

  	
   

  	
  HLIG INVESTMENT I,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MSHOV Holding Company,
  L.L.C., as sole 

  member of the foregoing limited liability 

  company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Holdings
  NJ, L.L.C., as the 

  
	
   

  	
   

  	
  sole member of the
  foregoing limited liability 

  company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  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

  
									

 

37

 

	
   

  	
   

  	
  GOODMAN FAMILY OF
  BUILDERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Florida, Inc. 

  as general partner of the foregoing limited 

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Texas, Inc. 

  as general partner of the foregoing limited 

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
							

 

38

 

	
   

  	
   

  	
  K. HOVNANIAN OF HOUSTON
  II, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K. HOVNANIAN OF
  HOUSTON, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of California, 

  Inc., as general partner of each of the 

  foregoing limited partnerships.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian
  Developments of Texas, Inc. 

  as limited partner of the foregoing limited 

  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
							

 

39

 

	
   

  	
   

  	
  M&M INVESTMENTS,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  K. Hovnanian Holdings
  NJ, L.L.C., as 

  general partner of the foregoing limited 

  partnership.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Kevin C. Hake

  
	
   

  	
   

  	
   

  	
   

  	
  Senior
  Vice-President — Finance and

  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Peter S. Reinhart

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notices for
  each of the foregoing

  Guarantors:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o K. Hovnanian
  Enterprises, Inc.

  
	
   

  	
   

  	
  110 West Front St.,
  P.O. Box 500

  
	
   

  	
   

  	
  Red Bank, NJ 07701

  
	
   

  	
   

  	
  Attention: Kevin C.
  Hake

  
	
   

  	
   

  	
  Telephone: (732)
  747-7800

  
	
   

  	
   

  	
  Telecopy: (732)
  747-6835

  
							

 

40

 

	
   

  	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
   

  	
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

41

 

EXHIBIT
1.1.(G)(2)

 

FORM OF

JOINDER AND ASSUMPTION AGREEMENT

 

 

This JOINDER AND
ASSUMPTION AGREEMENT is made                    
by                                                                  ,
a                                                        
(the “New Guarantor”).

 

BACKGROUND

 

Reference is made to (i)
the Sixth Amended and Restated Credit Agreement dated May 31, 2006 as the same
has been made and may be modified, supplemented or amended, including on the
date hereof, (the “Agreement”) among K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”),
HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders now or hereafter party
thereto and PNC BANK, NATIONAL ASSOCIATION, as administrative agent for itself
and the other Lenders under the Credit Agreement (the “Agent”), (ii) the
Guaranty Agreement of each of the Guarantors issued to Lenders and Agent, as
the same may be modified, supplemented or amended, and (iii) the other
Loan Documents referred to in the Agreement, as the same may be modified,
supplemented or amended. Capitalized terms defined in the Agreement are used
herein as defined therein.

 

In consideration of the
New Guarantor becoming a Guarantor entitled to receive loans or advances from
Borrower under the terms of the Agreement and in consideration of the value of
the synergistic benefits received by New Guarantor as a result of becoming
affiliated with Borrower and the Guarantors, the New Guarantor hereby agrees
that effective as of the date hereof it hereby is, and shall be deemed to be, a
Guarantor under the Agreement, the Guaranty Agreement and each of the other
Loan Documents to which the Guarantors are a party and agrees that from the
date hereof and so long as the Commitment of any Lender shall remain
outstanding and until the payment in full of the Loans and the Notes and the
performance of all other obligations of Borrower under the Loan Documents, New
Guarantor has assumed the obligations of a Guarantor under, and New Guarantor
shall perform, comply with and be subject to and bound by, jointly and
severally, each of the terms, provisions and waivers of the Agreement, the
Guaranty Agreement and each of the other Loan Documents which are stated to
apply to or are made by a Guarantor. Without limiting the generality of the
foregoing, the New Guarantor hereby represents and warrants that (i) each
of the representations and warranties set forth in Section 5 of the
Agreement is true and correct as to New Guarantor on and as of the date hereof
as if made on and as of the date hereof by New Guarantor and (ii) New Guarantor
has heretofore received a true and correct copy of the Agreement, the Guaranty
Agreement and each of the other Loan Documents (including any modifications
thereof or supplements or waivers thereto) as in effect on the date hereof.

 

 

New Guarantor hereby
makes, affirms, and ratifies in favor of the Lenders and the Agent the
Agreement, the Guaranty Agreement and each of the other Loan Documents given by
the Guarantors to Agent and any of the Lenders.

 

In furtherance of the
foregoing, New Guarantor shall execute and deliver or cause to be executed and
delivered at any time and from time to time such further instruments and
documents and do or cause to be done such further acts as may be reasonably
necessary or proper in the opinion of Agent to carry out more effectively the
provisions and purposes of this Joinder and Assumption Agreement.

 

IN WITNESS WHEREOF, the
New Guarantor has duly executed this Joinder and Assumption Agreement and
delivered the same to the Agent for the benefit of the Lenders, as of the date
and year first above written.

 

 

	
   

  	
  [NAME OF NEW GUARANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and
  accepted:

  	
   

  
	
   

  	
   

  
	
  PNC BANK, NATIONAL
  ASSOCIATION, as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
								

 

2

 

EXHIBIT 1.1 (R)

 

FORM OF 

[AMENDED AND RESTATED] REVOLVING CREDIT NOTE

 

 

	
   

  	
   

  	
  Pittsburgh,
  Pennsylvania

  
	
  $                       

  	
   

  	
  May 31, 2006

  

 

 

FOR
VALUE RECEIVED, the undersigned, K. HOVNANIAN ENTERPRISES, INC., a California
corporation (herein called the “Borrower”), hereby promises to pay to the order
of                                           
(the “Lender”) the lesser of (i) the principal sum of                                                         
U.S. Dollars (U.S. $                                ),
and (ii) the aggregate unpaid principal balance of all Revolving Credit
Loans made by the Lender to the Borrower pursuant to Section 2.1 of the Sixth
Amended and Restated Credit Agreement dated May 31, 2006 among the Borrower, Hovnanian
Enterprises, Inc., as a Guarantor, the Lenders now or hereafter party thereto,
PNC Bank, National Association, as administrative agent for the Lenders (the
“Agent”) and the Lender (the “Credit Agreement”), payable on the Expiration
Date.

 

The
Borrower shall pay interest on the unpaid principal balance hereof from time to
time outstanding from the date hereof at the rate or rates per annum specified
by the Borrower pursuant to Section 3.1 of, or as otherwise provided in,
the Credit Agreement.

 

To the
extent permitted by Law, upon the occurrence of an Event of Default under
Sections 8.1.1, 8.1.10, 8.1.14 and/or 8.1.15 of the Credit Agreement, or the
Obligations are accelerated under the Credit Agreement, and until such time
such Event of Default shall have been cured or waived, the Borrower shall pay
interest on all past due principal and all past due accrued interest thereon
and fees and expenses and each other past due Obligation at a rate per annum
equal to the sum of the rate of interest applicable under the Base Rate Option
plus an additional three hundred basis points (3.0% per annum) from the
time such Obligation becomes due and payable and until it is paid in full (the
“Default Rate”).

 

Interest
on this Revolving Credit Note will be payable as provided in the Credit
Agreement.

 

If any
payment or action to be made or taken hereunder shall be stated to be or become
due on a day which is not a Business Day, such payment or action shall be made
or taken on the next following Business Day (or the prior Business Day in
respect of certain Revolving Credit Loans to which the LIBO-Rate Option
applies) and such extension of time shall be included in computing interest or
fees, if any, in connection with such payment or action.

 

Subject
to the provisions of the Credit Agreement, payments of both principal and
interest shall be made without setoff, counterclaim or other deduction of any
nature at the Principal Office of the Agent, in lawful money of the United
States of America in immediately available funds.

 

1

 

This
Note is one of the Revolving Credit Notes referred to in, and is entitled to
the benefits of, the Credit Agreement and the other Loan Documents, including
the representations, warranties, covenants, conditions, security interests or
liens contained or granted therein. The Credit Agreement among other things
contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events and also for prepayment, in certain circumstances, on
account of principal hereof prior to maturity upon the terms and conditions
therein specified.

 

All
capitalized terms used herein shall, unless otherwise defined herein, have the
same meanings given to such terms in the Credit Agreement.

 

Except
as otherwise provided in the Credit Agreement, the Borrower waives presentment,
demand, notice, protest and all other demands and notices in connection with
the delivery, acceptance, performance, default or enforcement of this Note and
the Credit Agreement.

 

This
Note shall bind the Borrower and its successors and assigns, and the benefits
hereof shall inure to the benefit of the Lender, the Agent and their successors
and assigns. All references herein to the “Borrower”, the “Lender” and the
“Agent” shall be deemed to apply to the Borrower, the Lender and the Agent,
respectively, and their respective successors and assigns.

 

[This
Note replaces and supersedes the Amended and Restated Revolving Credit Note
dated June 14, 2005, in the principal amount of $                       ,
(the “Prior Note”). To the extent that the principal balance of this Note
includes the Borrower’s indebtedness hitherto evidenced by the Prior Note, this
Note (i) merely re-evidences the indebtedness hitherto evidenced by the Prior
Note, (ii) is given as substitution for, and not as payment of, the Prior Note,
and (iii) is in no way intended to constitute a novation of the Prior Note.
Maker hereby agrees that this Note shall in all respects take the place of and
include the principal amount of the Prior Note.]

 

This
Note and any other documents delivered in connection herewith and the rights
and obligations of the parties hereto and thereto shall for all purposes be
governed by and construed and enforced in accordance with the internal laws of
the State of New Jersey without giving effect to its conflicts of law
principles.

 

2

 

[SIGNATURE PAGE 1 OF 1 TO REVOLVING
CREDIT NOTE]

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Note by its duly authorized
officers.

 

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

3

 

EXHIBIT 1.1(S)

 

FORM OF

SWING LOAN NOTE

 

	
  $                      

  	
   

  	
  East
  Brunswick, New Jersey

  
	
   

  	
   

  	
  May 31, 2006

  

 

 

FOR
VALUE RECEIVED, the undersigned, K. HOVNANIAN ENTERPRISES, INC., a California
corporation (herein called the “Borrower”), hereby promises to pay to the order
of PNC BANK, NATIONAL ASSOCIATION (the “Lender”), the lesser of (i) the
principal sum of Thirty Million U.S. Dollars (U.S. $30,000,000) and (ii) the
aggregate unpaid principal amount of all “Swing Loans” made by the Lender to
the Borrower pursuant to the Sixth Amended and Restated Credit Agreement dated
May 31, 2006, among the Borrower, Hovnanian Enterprises, Inc., as Guarantor,
the Lenders now or hereafter party thereto and PNC Bank, National Association,
as administrative agent (the “Agent”) (as amended, the “Credit Agreement”),
payable on the Expiration Date. The Borrower shall pay interest on the unpaid
principal balance hereof from time to time outstanding from the date hereof at
the rate provided in the Credit Agreement.

 

Interest
hereon will be payable at the times specified in the Credit Agreement.

 

If any
payment of principal or interest on this Note shall be requested or is payable
on a day which is not a Business Day, such payment shall be made on the next
succeeding Business Day and such extension of time shall in such case be
included in computing interest in connection with payment.

 

Subject
to the provisions of the Credit Agreement, payments of both principal and
interest shall be made without setoff, counterclaim or other deduction of any
nature at the Principal Office of the Agent in lawful money of the United
States of America in immediately available funds.

 

This
Note is the Swing Loan Note and is subject to the provisions of, and is
entitled to the security provided for in and the other benefits of the Credit
Agreement and the other Loan Documents.

 

Except
as otherwise provided in the Credit Agreement, the Borrower waives presentment,
demand, notice, protest and all other demands and notices in connection with
the delivery, acceptance, performance, default or enforcement of this Note and
the Credit Agreement.

 

All
capitalized terms used herein shall, unless otherwise defined herein, have the
same meanings assigned to such terms in the Credit Agreement.

 

This
Note shall bind the Borrower and its respective successors and assigns, and the
benefits hereof shall inure to the benefit of the Agent, the Lenders and their
successors and

 

 

assigns. All
references herein to the “Borrower,” the “Agent” and the “Lenders” shall be
deemed to apply to the Borrower, the Agent and the Lenders, respectively, and
their respective successors and assigns.

 

This
Note and any other documents delivered in connection herewith and the rights
and obligations of the parties hereto and thereto shall for all purposes be
governed by and construed and enforced in accordance with the substantive law
of the State of New Jersey without giving effect to the principles of conflict
of laws.

 

2

 

[SIGNATURE PAGE 1 0F 1 TO SWING LOAN
NOTE]

 

IN
WITNESS WHEREOF, the undersigned has executed this Note by its duly authorized
officers.

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

3

 

 

EXHIBIT 2.4.1

 

FORM OF

LOAN REQUEST

 

 

TO:         PNC
BANK, NATIONAL ASSOCIATION, as agent

Telephone No.: 732-220-3566

Telecopier No.: 732-220-3744

Attention: Mr. Douglas G. Paul

 

FROM:   K. HOVNANIAN ENTERPRISES, INC.

 

RE:          Sixth
Amended and Restated Credit Agreement (the “Credit Agreement”) dated May
31, 2006 by and between K. HOVNANIAN ENTERPRISES, INC. (the “Company”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the Lenders
from time to time parties thereto, and PNC BANK, NATIONAL ASSOCIATION, as
administrative agent for the Lenders (the “Agent”). Capitalized terms used but
not defined herein shall have the meanings given to them in the Credit
Agreement.

 

A.            Pursuant to Section 2.4 of the Credit Agreement
the undersigned hereby makes the following Loan Request:

 

	
   

  	
  1.

  	
  Aggregate Principal
  Amount of Loan [amount shall be in integral multiples of $500,000 and not be
  less than $2,500,000 for each Borrowing Tranche to which the LIBO-Rate Option
  applies and amount shall be in integral multiples of $100,000 and not be less
  than $500,000 for each Borrowing Tranche to which to the Base Rate Option
  applies]

  	
   

  	
  U.S. $

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.

  	
  Proposed Borrowing Date:
  [must be at least 3 Business Days after
  receipt by 11:00 a.m. by Agent of this Loan Request with respect to Loans to
  which the LIBO-Rate Option applies and no earlier than the same day with
  respect to Loans to which the Base Rate Option applies]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.

  	
  Place of Payment:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.

  	
  Length of Interest
  Period

  (if LIBO-Rate Option elected):

  [must be: one, two, three or six months]

  	
   

  	
   

  

 

 

B.            Borrower elects that interest on the Loan
requested hereby shall be based on the LIBO-Rate Option/Base Rate Option
(circle one) and shall be calculated in accordance with Section 3 of the Credit
Agreement.

 

C.            As of the date hereof and the date of making of
the Loan:  the representations and
warranties contained in Section 5 of the Credit Agreement are and will be true
in all material respects (except representations and warranties that expressly
relate solely to an earlier date or time, which representations and warranties
were true in all material respects on and as of the specific date referred to
therein); and no Event of Default or Potential Default has occurred and is
continuing or shall exist. The undersigned certifies to the accuracy of the
foregoing.

 

[REMAINDER
OF THIS PAGE LEFT BLANK INTENTIONALLY]

 

 

[SIGNATURE
PAGE 1 OF 1 TO LOAN REQUEST]

 

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

 

EXHIBIT
2.4.2

 

FORM OF

SWING LOAN REQUEST

 

 

	
  TO:

  	
   

  	
  PNC
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
  Telephone No.: 732-220-3566

  
	
   

  	
   

  	
  Telecopier No.: 732-220-3744

  
	
   

  	
   

  	
  Attention: Mr. Douglas G. Paul

  
	
   

  	
   

  	
   

  
	
  FROM:

  	
   

  	
  K. HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
  RE:

  	
   

  	
  Sixth
  Amended and Restated Credit Agreement (the “Credit Agreement”) dated May 31,
  2006 by and among K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”), HOVNANIAN
  ENTERPRISES, INC., as a Guarantor, the Lenders now or hereafter party
  thereto, and PNC BANK, NATIONAL ASSOCIATION, in its capacity as
  administrative agent for the Lenders (the “Agent”), as amended, restated,
  supplemented or modified from time to time.

  

 

Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement.

 

Pursuant
to Section 2.4.2 of the Credit Agreement, the undersigned hereby makes the
following Swing Loan Request:

 

	
  1.

  	
   

  	
  Aggregate Principal
  Amount of Swing Loans: [amount shall not be less than $100,000]

  	
   

  	
  

  

  US$

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Proposed Borrowing
  Date: [this Swing Loan Request must be delivered to PNC Bank not later than
  2:00 p.m. Eastern time on the proposed Borrowing Date]

  	
   

  	
   

  

 

3.         As of the
date hereof and the date of making of the Swing Loan requested hereby: the
representations and warranties of the Loan Parties contained in Section 5
of the Credit Agreement and in the other Loan Documents are and will be true in
all material respects (except representations and warranties that expressly
relate solely to an earlier date or time, which representations and warranties
were true in all material respects on and as of the specific dates or times
referred to therein); and no Event of Default or Potential Default has occurred
and is continuing or shall exist.

 

[REMAINDER OF THIS PAGE LEFT
BLANK INTENTIONALLY]

 

 

[SIGNATURE PAGE 1 OF 1 TO SWING
LOAN REQUEST]

 

The
undersigned hereby certifies the accuracy of the foregoing.

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

2

 

EXHIBIT
2.12.1-1

 

FORM OF

REVOLVING
CREDIT COMMITMENT INCREASE AGREEMENT

 

 

This
Revolving Credit Commitment Increase Agreement (the “Acknowledgement”) is made                                                  
by                                     ,
a                                              
                                       
(the “Increasing Lender”).

 

Background

 

Reference
is made to the Sixth Amended and Restated Credit Agreement dated as of May 31,
2006 (the “Agreement”) by and among K HOVNANIAN ENTERPRISES, INC. (the
“Borrower”), HOVNANIAN ENTERPRISES, INC. as Guarantor, the Lenders now or
hereafter party thereto, and PNC BANK, NATIONAL ASSOCIATION, as administrative
agent for itself and the other Lenders under the Credit Agreement (the
“Agent”). Capitalized terms defined in the Agreement are used herein as defined
therein.

 

Agreement

 

The
Increasing Lender, and each of the other parties hereto agree that, except as
set forth below, effective as of the date hereof it shall increase its
commitment by $                      
so that its total commitment shall be $                       .
The Increasing Lender hereby acknowledges that it has heretofore received a new
Note in the amount of the commitment as increased as set forth above.

 

Reference
is made to Section 2.12.1 [Increase in Commitments] of the Agreement. Schedule
1.1(B) hereto sets forth the Commitments of the Increasing Lender and each of
the other Lenders after giving effect to the increase on the date hereof.
Schedule 1.1(B) to the Agreement is being amended and restated effective on the
date hereof to read as set forth on Schedule 1.1(B) hereto. Schedule 1 hereto
lists as of the date hereof the amount of Loans under each outstanding
Borrowing Tranche. Notwithstanding the foregoing (a) on the date hereof
the Borrower shall repay all outstanding Loans to which either of the Base Rate
Option or the LIBO-Rate Option applies and simultaneously reborrow a like
amount of Loans under each such Interest Rate Option from the Lenders
(including the Increasing Lender) according to the Ratable Shares set forth on
attached Schedule 1.1(B) and shall be subject to breakage fees and other
indemnities provided in Section 4.6.2.

 

IN
WITNESS WHEREOF, the Increasing Lender has duly executed and delivered this
Joinder as of the date and year first above written.

 

 

	
   

  	
   

  	
  [INCREASING LENDER]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED TO:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K.
  HOVNANIAN ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  (SEAL)

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PNC BANK, NATIONAL
  ASSOCIATION,

  
	
   

  	
   

  	
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

2

 

SCHEDULE
1.1(B)

 

COMMITMENTS OF
LENDERS

 

Attached Schedule
1.1(B)

 

 

SCHEDULE
1

 

OUTSTANDING
TRANCHES

 

 

EXHIBIT
2.12.1-2

 

FORM OF

LENDER JOINDER AND ASSUMPTION AGREEMENT

 

This
Lender Joinder and Assumption Agreement (the “Joinder”) is made as of                   ,
20    (the “Effective Date”) by                                           ,
(the “New Commitment Provider”).

 

Background

 

Reference
is made to the Sixth Amended and Restated Credit Agreement dated May 31, 2006
among K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”), HOVNANIAN ENTERPRISES,
INC., as a Guarantor, the Lenders now or hereafter party thereto and PNC Bank,
National Association, as administrative agent (the “Agent”) (as the same has
been and may hereafter be modified, supplemented or amended the “Agreement”).
Capitalized terms defined in the Agreement are used herein as defined therein.

 

Agreement

 

In
consideration of the Lenders’ permitting the New Commitment Provider to become
a Lender under the Agreement, the New Commitment Provider agrees that effective
as of the Effective Date it shall become, and shall be deemed to be, a Lender
under the Agreement and each of the other Loan Documents and agrees that from
the Effective Date and so long as the New Commitment Provider remains a party
to the Agreement, such New Commitment Provider shall assume the obligations of
a Lender under and perform, comply with and be bound by each of the provisions
of the Agreement which are stated to apply to a Lender and shall be entitled to
the benefits, rights and remedies set forth therein and in each of the other
Loan Documents. The New Commitment Provider hereby acknowledges that it has
heretofore received a true and correct copy of the Agreement (including any
modifications thereof or supplements or waivers thereto) as in effect on the
Effective Date [and the executed
original of its Note dated the Effective Date issued by the Borrowers under the
Agreement in the face amount of $                   ].

 

The
Commitments and Ratable Shares of the New Commitment Provider and each of the
other Lenders are as set forth on Schedule 1.1(B) to the Agreement. Schedule
1.1(B) to the Agreement is being amended and restated effective as of the
Effective Date hereof to read as set forth on Schedule 1.1(B) hereto. Schedule
1 hereto lists as of the date hereof the amount of Loans under each outstanding
Borrowing Tranche. Notwithstanding the foregoing (a) on the date hereof
the Borrower shall repay all outstanding Loans to which either of the Base Rate
Option or the LIBO-Rate Option applies and simultaneously reborrow a like
amount of Loans under each such Interest Rate Option from the Lenders
(including the New Commitment Provider) according to the Ratable Shares set
forth on attached Schedule 1.1(B) and shall be subject to breakage fees and
other indemnities provided in Section 4.6.2.

 

 

The
New Commitment Provider is executing and delivering this Joinder as of the
Effective Date and acknowledges that (A) it shall share ratably in all Base
Rate Loans borrowed by the Borrower on and after the Effective Date; (B) it
shall participate in all new LIBO-Rate Loans borrowed by the Borrower on and
after the Effective Date according to its Ratable Share; and (C) it shall
participate in all Letters of Credit outstanding on the Effective Date
according to its Ratable Share.

 

[SIGNATURE PAGES FOLLOW]

 

2

 

IN
WITNESS WHEREOF, the New Commitment Provider has duly executed and delivered
this Joinder as of the Effective Date.

 

	
   

  	
  [NEW LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED:

  	
   

  
	
   

  	
   

  
	
  PNC BANK, NATIONAL ASSOCIATION,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  K. HOVNANIAN ENTERPRISES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
										

 

 

EXHIBIT 7.3.3.1

 

FORM OF

QUARTERLY COMPLIANCE CERTIFICATE

 

                              ,
200  

 

 

PNC Bank, National
Association, as Agent

Two Tower Center, 18th
Floor

East Brunswick, New Jersey
08816

Attn:  Douglas G. Paul, Senior Vice President

Telecopy: (732) 220-3744

 

Ladies/Gentlemen:

 

1.             I refer to the Sixth Amended and Restated Credit Agreement
dated May    , 2006 (the “Credit Agreement”) by and among
K. HOVNANIAN ENTERPRISES, INC. (the “Borrower”), HOVNANIAN ENTERPRISES,
INC., as a Guarantor the several LENDERS and other financial institutions from
time to time parties thereto and  PNC BANK,
NATIONAL ASSOCIATION, as administrative agent for the Lenders (the “Agent”).
Unless otherwise defined herein, terms defined in the Credit Agreement are used
herein with the same meanings. I,                         
                        
the                
of the Borrower do hereby certify as of the [month/quarter/year] ended                         ,
200   (the “Report Date”), that the Borrower is in compliance
with the following covenants as more fully set forth and calculated on the
spreadsheets attached hereto as Exhibit A - “Borrowing Base Compliance
Calculations”, Exhibit B - “Summary Covenant Compliance Calculations”, and
Exhibit C - “Detailed Covenant Compliance Calculations”.

 

2.             Transactions subject to the restrictions set forth
in Section 7.2.4 of the Credit Agreement with respect to Liquidations, Mergers,
Consolidations and Acquisitions are described on the additional page attached
hereto.

 

	
  Compliance?

  	
   

  	
  Yes       

  	
  No       

  

 

 

3.             Transactions subject to the restrictions set forth
in Section 7.2.5 of the Credit Agreement with respect to Dispositions of Assets
or Subsidiaries are described on the additional page attached hereto.

 

	
  Compliance?

  	
   

  	
  Yes       

  	
  No       

  

 

 

4.             Transactions subject to the restrictions set forth
in Section 7.2.7 of the Credit Agreement with respect to Subsidiaries,
Partnerships and Joint Ventures are described on the additional page attached
hereto.

 

	
  Compliance?

  	
   

  	
  Yes       

  	
  No       

  

 

5.             Debt Rating. Based on the Debt Rating and the
Leverage Ratio, the Applicable Margin to become effective as of                            
shall be                .

 

6.             The Loan Parties are in compliance with, and since
the most recent prior Report Date has at all times complied with, the
provisions of the Credit Agreement, including, without limitation, the
representations and warranties contained in Article 6 thereof, except as
follows:                                                                                                             .

 

7.             No event has occurred that is continuing which
constitutes an Event of Default or Potential Default, except as follows:                                                                .

 

8.             With respect to all financial statements delivered
by or on behalf of the Loan Parties contemporaneously herewith, such statements
are true and correct in all material respects.

 

 

[SIGNATURE PAGE TO QUARTERLY
COMPLIANCE CERTIFICATE]

 

IN
WITNESS WHEREOF, the undersigned has executed this Compliance Certificate this    
day of                   ,
2006.

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

Exhibit A to
Exhibit 7.3.3.1

 

Borrowing Base
Compliance Calculations

 

 

Exhibit B to
Exhibit 7.3.3.1

 

Summary Covenant
Compliance Calculations

 

 

Exhibit C to
Exhibit 7.3.3.1

 

Detailed Covenant
Compliance Calculations

 

 

EXHIBIT
7.3.3.2

 

 

FORM OF

BORROWING
BASE CERTIFICATE

 

 

                              ,
         

 

PNC BANK, NATIONAL
ASSOCIATION, Agent

Two Tower Center, 18th
Floor

East Brunswick, New
Jersey  08816

Telecopy (732) 220-3744

 

Attn.:  Douglas G. Paul, Senior Vice President

 

Ladies/Gentlemen:

 

I
refer to the Sixth Amended and Restated Credit Agreement dated May 31, 2006
(the “Credit Agreement”) among K. HOVNANIAN ENTERPRISES, INC. (the
“Borrower”), HOVNANIAN ENTERPRISES, INC., as a Guarantor, the LENDERS now or
hereafter party thereto and PNC BANK, NATIONAL ASSOCIATION, as administrative
agent for the Lenders (the “Agent”).

 

Unless
otherwise defined herein, terms defined in the Credit Agreement are used herein
with the same meanings.  I,                                           
Chief Executive Officer, President, Treasurer, Chief Financial Officer or
principal accounting officer of the Borrower, do hereby certify on behalf of
the Borrower as of the end of the month ended                         ,
       (the “Report Date”), that the
“Borrowing Base” and the components thereof are calculated and set forth on the
spreadsheet attached hereto as Exhibit A - “Borrowing Base Compliance
Calculations”.

 

The
undersigned further certifies as follows:

 

1.             The
Loan Parties are in compliance with, and since the most recent prior Report
Date have at all times complied with, the provisions of the Credit Agreement.

 

2.             No
event has occurred that is continuing which constitutes an Event of Default or
Potential Default.

 

3.             With
respect to all financial statements delivered by or on behalf of the Loan
Parties contemporaneously herewith, such statements are true and correct in all
material respects.

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Borrowing Base Certificate
this      day of                   ,
      .

 

	
   

  	
  K. HOVANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer, President, Treasurer, Chief Financial Officer or principal
  accounting officer

  
				

 

 

Exhibit A to
Exhibit 7.3.3.2

 

Borrowing Base
Compliance Calculations

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