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<SEC-DOCUMENT>0000950123-09-053150.txt : 20091026
<SEC-HEADER>0000950123-09-053150.hdr.sgml : 20091026
<ACCEPTANCE-DATETIME>20091026160548
ACCESSION NUMBER:		0000950123-09-053150
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20091020
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20091026
DATE AS OF CHANGE:		20091026

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HOVNANIAN ENTERPRISES INC
		CENTRAL INDEX KEY:			0000357294
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				221851059
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08551
		FILM NUMBER:		091137006

	BUSINESS ADDRESS:	
		STREET 1:		110 WEST FRONT STREET
		STREET 2:		PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
		BUSINESS PHONE:		7327477800

	MAIL ADDRESS:	
		STREET 1:		110 WEST FRONT STREET PO BOX 500
		STREET 2:		110 WEST FRONT STREET  PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c91350e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="margin-left: 0.25in; width: 7.2in;font-family: 'Times New Roman',Times,serif">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): October 20, 2009</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>HOVNANIAN ENTERPRISES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD nowrap align="center" valign="top"><B>Delaware
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>1-8551
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>22-1851059</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Commission File Number)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD align="center" valign="top"><B>110 West Front Street<BR> P.O. Box
500<br>
Red Bank, New Jersey
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="bottom"><B>&nbsp;<BR>07701</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(Address of principal executive offices)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: <B>(732) 747-7800</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="border-top: 1px solid #000000">(Former name or former address, if changed since last report.)</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio --> </DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;1.01. <U>Entry into a Material Definitive Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On October&nbsp;20, 2009, K. Hovnanian Enterprises, Inc. (&#147;K. Hovnanian&#148;), a wholly owned
subsidiary of Hovnanian Enterprises, Inc. (&#147;Hovnanian&#148;), entered into an Indenture among K.
Hovnanian, Hovnanian, the other guarantors named therein and Wilmington Trust Company, as trustee
(the &#147;Indenture&#148;), under which K. Hovnanian issued $785,000,000 aggregate principal amount of
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016 (the &#147;New Secured Notes&#148;) which are
guaranteed by Hovnanian and substantially all of its subsidiaries. A
copy of the press release announcing the closing of the offering of
the New Secured Notes is attached hereto as Exhibit&nbsp;99.1 and is
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each of Hovnanian&#146;s subsidiaries, except for certain of its financial service subsidiaries and
joint ventures and subsidiaries holding interests in joint ventures, is a guarantor of the New
Secured Notes. The New Secured Notes and the guarantees are secured, subject to permitted liens
and certain exceptions, by a first-priority lien on substantially all of the assets owned by K.
Hovnanian, Hovnanian and the other guarantors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The New Secured Notes bear interest at 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% per annum and mature on
October&nbsp;15, 2016. Interest is payable semi-annually on April&nbsp;15 and October&nbsp;15 of each year,
beginning on April&nbsp;15, 2010, to holders of record at the close of business on April 1 or October&nbsp;1,
as the case may be, immediately preceding each such interest payment date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Indenture contains restrictive covenants that limit among other things, the ability of
Hovnanian and certain of its subsidiaries, including K. Hovnanian, to incur additional
indebtedness, pay dividends and make distributions on common and preferred stock, repurchase senior
secured, senior and subordinated notes and common and preferred stock, make other restricted
payments, make investments, sell certain assets, incur liens, consolidate, merge, sell or otherwise
dispose of all or substantially all of its assets and enter into certain transactions with
affiliates. The Indenture also contains customary events of default which would permit the holders
of the New Secured Notes to declare those New Secured Notes to be immediately due and payable if
not cured within applicable grace periods, including the failure to make timely payments on the New
Secured Notes or other material indebtedness, the failure to satisfy covenants, the failure of the
documents granting security for the New Secured Notes to be in full force and effect, the failure
of the liens on any material portion of the collateral securing the New Secured Notes to be valid
and perfected and specified events of bankruptcy and insolvency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;2.03. <U>Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance
Sheet Arrangement of a Registrant</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The information set forth above under Item&nbsp;1.01 of this Current Report on Form 8-K is
incorporated by reference into this Item&nbsp;2.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;8.01. <U>Other Events</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On
October&nbsp;20, 2009, Hovnanian issued a press release announcing
the expiration and final results of the previously
announced tender offers and consent solicitations by K. Hovnanian. A copy of the press release is attached hereto as Exhibit&nbsp;99.1 and is
incorporated herein by reference.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Item&nbsp;9.01. <U>Financial Statements and Exhibits</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(d) <I>Exhibits.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture dated as of October&nbsp;20, 2009, relating to the
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016, among K. Hovnanian
Enterprises, Inc., Hovnanian Enterprises, Inc., the other
guarantors named therein and Wilmington Trust Company, as
Trustee, including the form of 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes
due 2016.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of October&nbsp;20, 2009, to the
Intercreditor Agreement dated as of May&nbsp;27, 2008.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of October&nbsp;20, 2009, to the
Intercreditor Agreement dated as of December&nbsp;3, 2008.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Lien Pledge Agreement, dated as of October&nbsp;20, 2009,
relating to the 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior
Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Lien Security Agreement, dated as of October&nbsp;20,
2009, relating to the 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior
Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Intellectual Property Security Agreement, dated as
of October&nbsp;20, 2009, relating to the
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release issued October&nbsp;20, 2009.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>SIGNATURES</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/          Peter S. Reinhart
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Peter S. Reinhart&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" nowrap>Senior Vice President and General Counsel&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date:
October 26, 2009
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>INDEX TO EXHIBITS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture dated as of October&nbsp;20, 2009, relating to the
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016, among K. Hovnanian
Enterprises, Inc., Hovnanian Enterprises, Inc., the other
guarantors named therein and Wilmington Trust Company, as
Trustee, including the form of 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes
due 2016.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of October&nbsp;20, 2009, to the
Intercreditor Agreement dated as of May&nbsp;27, 2008.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Amendment, dated as of October&nbsp;20, 2009, to the
Intercreditor Agreement dated as of December&nbsp;3, 2008.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Lien Pledge Agreement, dated as of October&nbsp;20, 2009,
relating to the 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior
Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Lien Security Agreement, dated as of October&nbsp;20,
2009, relating to the 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior
Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Intellectual Property Security Agreement, dated as
of October&nbsp;20, 2009, relating to the
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release issued October&nbsp;20, 2009.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>c91350exv4w1.htm
<DESCRIPTION>EXHIBIT 4.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 4.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;4.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 6pt; margin-top: 20pt; width: 100%; border-top: 3px double #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>K. HOVNANIAN ENTERPRISES, INC.,<BR>
as Issuer</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>HOVNANIAN ENTERPRISES, INC.<BR>
and<BR>
the other Guarantors party hereto</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>and</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>WILMINGTON TRUST COMPANY,<BR>
as Trustee</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 6pt; margin-top: 20pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Indenture</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Dated as of October&nbsp;20, 2009</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 6pt; margin-top: 20pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>10</B><SUP style="font-size: 85%; vertical-align: text-top"><B>5</B></SUP><B>/</B><SUB style="font-size: 85%; vertical-align: text-bottom"><B>8</B></SUB><B>% Senior Secured Notes Due 2016</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 6pt; margin-top: 20pt; width: 100%; border-top: 3px double #000000">&nbsp;</DIV></DIV>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>CROSS-REFERENCE TABLE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">TIA Sections</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Indenture Sections</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">310(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right" nowrap>&nbsp;7.03, 7.08(a)(iii), 7.08(e)</TD>
    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">&nbsp;Inapplicable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">311</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">312(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;13.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">313(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;5.10(b), 7.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">314(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;4.15(c), 4.16(c)</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;6.10, 11.05(a), 13.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;13.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>&nbsp;6.10, 11.05(a), 11.05(b), 13.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;13.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(f)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">&nbsp;Inapplicable</TD>
    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">315(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(d)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;7.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(e)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">&nbsp;Inapplicable</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">316(a)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;5.04</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;5.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(c)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&nbsp;13.02(d)</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">317(a)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;5.13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(a)(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;5.12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:35px; text-indent:-15px">(b)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;2.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">318</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;13.01</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>TABLE OF CONTENTS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 6pt; margin-top: 20pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" colspan="4">RECITALS</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 1<br>
<FONT style="font-variant: SMALL-CAPS">Definitions and Incorporation by Reference</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.01. <I>Definitions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.02. <I>Rules of Construction</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 2<br>
<FONT style="font-variant: SMALL-CAPS">The Notes</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.01. <I>Form, Dating and Denominations; Legends</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.02. <I>Execution and Authentication; Exchange Notes; Additional Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.03. <I>Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in Trust</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.04<I>. Replacement Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.05. <I>Outstanding Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.06<I>. Temporary Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.07. <I>Cancellation</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.08. <I>CUSIP and ISIN Numbers</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.09. <I>Registration, Transfer and Exchange</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.10. <I>Restrictions on Transfer and Exchange</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2.11. <I>Regulation&nbsp;S Temporary Global Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 3<br>
<FONT style="font-variant: SMALL-CAPS">Redemption; Offer to Purchase</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.01. <I>Optional Redemption</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.02<I>. Redemption with Proceeds of Equity Offering</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.03<I>. Sinking Fund; Mandatory Redemption</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.04<I>. Method and Effect of Redemption</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.05<I>. Offer to Purchase</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 4<br>
<FONT style="font-variant: SMALL-CAPS">Covenants</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.01. <I>Payment of Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.02. <I>Maintenance of Office or Agency</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.03. <I>Existence</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.04. <I>Payment of Taxes and Other Claims</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.05. <I>Maintenance of Properties and Insurance</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.06. <I>Limitations on Indebtedness</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.07. <I>Limitations on Restricted Payments</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.08. <I>Limitations on Liens</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.09<I>. Limitations on Restrictions Affecting Restricted Subsidiaries</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.10<I>. Limitations on Dispositions of Assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.11<I>. Guarantees by Restricted Subsidiaries</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.12<I>. Repurchase of Notes upon Change of Control</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.13<I>. Limitations on Transactions with Affiliates</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.14<I>. Limitations on Mergers, Consolidations and Sales of Assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.15. <I>Reports to Holders of Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.16. <I>Reports to Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.17. <I>Notice of Other Defaults</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.18<I>. Collateral Requirement; Further Assurances; Costs</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 5<br>
<FONT style="font-variant: SMALL-CAPS">Remedies</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.01. <I>Events of Default</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.02. <I>Other Remedies</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.03. <I>Waiver of Defaults by Majority of Holders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.04<I>. Direction of Proceedings</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.05. <I>Application of Moneys Collected by Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.06<I>. Proceedings by Holders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.07<I>. Proceedings by Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.08. <I>Remedies Cumulative and Continuing</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.09. <I>Undertaking to Pay Costs</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.10<I>. Notice of Defaults</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.11. <I>Waiver of Stay, Extension or Usury Laws</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.12. <I>Trustee May File Proof of Claim</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.13<I>. Payment of Notes on Default; Suit Therefor</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 6<br>
<FONT style="font-variant: SMALL-CAPS">Guarantees; Release of Guarantor</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.01. <I>Guarantee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.02<I>. Obligations of each Guarantor Unconditional</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.03. <I>Release of a Guarantor</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.04. <I>Execution and Delivery of Guarantee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.05. <I>Limitation on Guarantor Liability</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.06. <I>Article&nbsp;6 not to Prevent Events of Default</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.07. <I>Waiver by the Guarantors</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.08. <I>Subrogation and Contribution</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.09. <I>Stay of Acceleration</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.10<I>. Guarantors as &#147;obligors&#148; for Provisions Included in this Indenture Pursuant to the Trust Indenture Act</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 7<br>
<FONT style="font-variant: SMALL-CAPS">The Trustee</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.01. <I>General</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.02<I>. Certain Rights of the Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.03<I>. Individual Rights of the Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.04. <I>Trustee&#146;s Disclaimer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.05. <I>Reserved</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.06. <I>Reports by Trustee to Holders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.07. <I>Compensation and Indemnity</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.08. <I>Replacement of Trustee</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.09. <I>Successor Trustee by Merger</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.10. <I>Eligibility</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.11. <I>Money Held in Trust</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 8<br>
<FONT style="font-variant: SMALL-CAPS">Defeasance and Discharge</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.01<I>. Legal Defeasance and Discharge</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.02<I>. Covenant Defeasance</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.03<I>. Conditions to Legal or Covenant Defeasance</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.04<I>. Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.05<I>. Repayment to Issuer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.06<I>. Reinstatement</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.07<I>. Survival</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.08<I>. Satisfaction and Discharge of Indenture</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 9<br>
<FONT style="font-variant: SMALL-CAPS">Amendments, Supplements and Waivers</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.01<I>. Amendments Without Consent of Holders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.02. <I>Amendments with Consent of Holders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.03. <I>Effect of Consent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.04. <I>Trustee&#146;s Rights and Obligations</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.05. <I>Conformity with Trust Indenture Act</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9.06. <I>Payments for Consents</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 10<br>
<FONT style="font-variant: SMALL-CAPS">&#091;reserved&#093;</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 11<br>
<FONT style="font-variant: SMALL-CAPS">Collateral and Security</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.01<I>. Security Documents</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->iv<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->

<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.02<I>. Collateral Agent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.03<I>. Authorization of Actions to be Taken</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.04<I>. Release of First-Priority Liens</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11.05<I>. Filing, Recording and Opinions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">101</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 12<br>
<FONT style="font-variant: SMALL-CAPS">Release of Issuer and Guarantors</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;12.01<I>. Release of Issuer</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD align="center" colspan="4">ARTICLE 13<br>
<FONT style="font-variant: SMALL-CAPS">Miscellaneous</FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.01. <I>Trust Indenture Act of 1939</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.02. <I>Holder Communications; Holder Actions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.03. <I>Notices</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.04. <I>Certificate and Opinion as to Conditions Precedent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.05. <I>Statements Required in Certificate or Opinion</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">105</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.06. <I>Payment Date Other Than a Business Day</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.07. <I>Governing Law</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.08<I>. No Adverse Interpretation of Other Agreements</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.09. <I>Successors</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.10. <I>Duplicate Originals</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.11. <I>Separability</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.12. <I>Table of Contents and Headings</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.13. <I>No Liability of Directors, Officers, Employees, Partners, Incorporators and Stockholders</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;13.14<I>. Provisions of Indenture for the Sole Benefit of Parties and Holders of Notes</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->v<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">EXHIBITS
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Note and Guarantee</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Supplemental Indenture</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restricted Legend</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DTC Legend</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulation&nbsp;S Certificate</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT F
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule&nbsp;144A Certificate</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT G
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Institutional Accredited Investor Certificate</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT H
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Beneficial Ownership</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT I
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulation&nbsp;S Temporary Global Note Legend</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT J
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unrestricted Subsidiaries</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT K
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">OID Legend</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->vi<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">INDENTURE, dated as of October&nbsp;20, 2009, among K. HOVNANIAN ENTERPRISES, INC., a California
corporation (the &#147;<B>Issuer</B>&#148;), HOVNANIAN ENTERPRISES, INC., a Delaware corporation (the &#147;<B>Company</B>&#148;),
each of the other Guarantors (as defined hereafter) and WILMINGTON TRUST COMPANY, a Delaware
banking corporation, as Trustee (the &#147;<B>Trustee</B>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Issuer has duly authorized the execution and delivery of this Indenture to provide for the
issuance of up to $785,000,000 aggregate principal amount of the Issuer&#146;s
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes Due 2016 and, if and when issued, any Additional
Notes (together with any Exchange Notes issued therefor as provided herein, the &#147;<B>Notes</B>&#148;). All
things necessary to make this Indenture a valid agreement of the Issuer, in accordance with its
terms, have been done, and the Issuer has done all things necessary to make the Notes (in the case
of any Additional Notes, when duly authorized), when duly issued and executed by the Issuer and
authenticated and delivered by the Trustee, the valid obligations of the Issuer as hereinafter
provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition, the Guarantors party hereto have duly authorized the execution and delivery of
this Indenture as guarantors of the Notes. All things necessary to make this Indenture a valid
agreement of each Guarantor, in accordance with its terms, have been done, and each Guarantor has
done all things necessary to make the Guarantees (in the case of the Guarantee of any Additional
Notes, when duly authorized), when duly issued and executed by each Guarantor and when the Notes
have been authenticated and delivered by the Trustee, the valid obligation of such Guarantor as
hereinafter provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Indenture is subject to, and will be governed by, the provisions of the Trust Indenture
Act that are required to be a part of, and govern indentures qualified under, the Trust Indenture
Act, <I>provided </I>that in each case the provisions of TIA &#167;314(b) and &#167;314(d) shall only apply
following qualification of this Indenture under the TIA.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>THIS INDENTURE WITNESSETH</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
the parties hereto covenant and agree, for the equal and proportionate benefit of all Holders, as
follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 1<BR>
<FONT style="font-variant: SMALL-CAPS">Definitions and Incorporation by Reference</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;1.01. <I>Definitions</I>.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Acquired Indebtedness</B>&#148; means (a)&nbsp;with respect to any Person that becomes a Restricted
Subsidiary (or is merged into the Company, the Issuer or any Restricted Subsidiary) after the Issue
Date, Indebtedness of such Person or any of its Subsidiaries existing at the time such Person
becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted
Subsidiary) that was not incurred in connection with, or in contemplation of, such Person becoming
a Restricted Subsidiary (or being merged into the Company, the Issuer or any Restricted Subsidiary)
and (b)&nbsp;with respect to the Company, the Issuer or any Restricted Subsidiary, any Indebtedness
expressly assumed by the Company, the Issuer or any Restricted Subsidiary in connection with the
acquisition of any assets from another Person (other than the Company, the Issuer or any Restricted
Subsidiary), which Indebtedness was not incurred by such other Person in connection with or in
contemplation of such acquisition. Indebtedness incurred in connection with or in contemplation of
any transaction described in clause (a)&nbsp;or (b)&nbsp;of the preceding sentence shall be deemed to have
been incurred by the Company or a Restricted Subsidiary, as the case may be, at the time such
Person becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted
Subsidiary) in the case of clause (a)&nbsp;or at the time of the acquisition of such assets in the case
of clause (b), but shall not be deemed Acquired Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Additional Interest</B>&#148; means additional interest or liquidated damages owed to the Holders
pursuant to a Registration Rights Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Additional Notes</B>&#148; means any notes of the Issuer issued under this Indenture in addition to
the Original Notes, including any Exchange Notes issued in exchange for such Additional Notes,
having the same terms in all respects as the Original Notes, except that interest will accrue on
the Additional Notes from their date of issuance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Affiliate</B>&#148; means, when used with reference to a specified Person, any Person directly or
indirectly controlling, or controlled by or under direct or indirect common control with, the
Person specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Affiliate Transaction</B>&#148; has the meaning ascribed to it in Section&nbsp;4.13 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Agent</B>&#148; means any Registrar, Paying Agent or Authenticating Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Agent Member</B>&#148; means a member of, or a participant in, the Depositary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Asset Acquisition</B>&#148; means (a)&nbsp;an Investment by the Company, the Issuer or any Restricted
Subsidiary in any other Person if, as a result of such Investment, such Person shall become a
Restricted Subsidiary or shall be consolidated or merged with or into the Company, the Issuer or
any Restricted Subsidiary or (b)&nbsp;the acquisition by the Company, the Issuer or any Restricted
Subsidiary of the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">assets of any Person, which constitute all or substantially all of the assets or of an
operating unit or line of business of such Person or which is otherwise outside the ordinary course
of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Asset Disposition</B>&#148; means any sale, transfer, conveyance, lease or other disposition
(including, without limitation, by way of merger, consolidation or sale and leaseback or sale of
shares of Capital Stock in any Subsidiary) (each, a &#147;<B>transaction</B>&#148;) by the Company, the Issuer or
any Restricted Subsidiary to any Person of any Property having a Fair Market Value in any
transaction or series of related transactions of at least $5&nbsp;million. The term &#147;<B>Asset Disposition</B>&#148;
shall not include:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;a transaction between the Company, the Issuer and any Restricted Subsidiary or a
transaction between Restricted Subsidiaries,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;a transaction in the ordinary course of business, including, without limitation, sales
(directly or indirectly), dedications and other donations to governmental authorities, leases and
sales and leasebacks of (i)&nbsp;homes, improved land and unimproved land and (ii)&nbsp;real estate
(including related amenities and improvements),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;a transaction involving the sale of Capital Stock of, or the disposition of assets in, an
Unrestricted Subsidiary,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;any exchange or swap of assets of the Company, the Issuer or any Restricted Subsidiary for
assets (including Capital Stock of any Person that is or will be a Restricted Subsidiary following
receipt thereof) that (i)&nbsp;are to be used by the Company, the Issuer or any Restricted Subsidiary in
the ordinary course of its Real Estate Business and (ii)&nbsp;have a Fair Market Value not less than the
Fair Market Value of the assets exchanged or swapped (<I>provided </I>that (except as permitted by clause
(c)&nbsp;under the definition of &#147;Permitted Investment&#148;) to the extent that the assets exchanged or
swapped were Collateral, the assets received are pledged as Collateral under the Security Documents
substantially simultaneously with such exchange or swap, with the Lien on such assets received
being of the same priority with respect to the Notes as the Lien on the assets disposed of),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;any sale, transfer, conveyance, lease or other disposition of assets and properties that
is governed by Section&nbsp;4.14 hereof,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;dispositions of mortgage loans and related assets and mortgage-backed securities in the
ordinary course of a mortgage lending business, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;the creation of a Permitted Lien and dispositions in connection with Permitted Liens.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Attributable Debt</B>&#148; means, with respect to any Capitalized Lease Obligations, the capitalized
amount thereof determined in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Authenticating Agent</B>&#148; refers to a Person engaged to authenticate the Notes in the stead of
the Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Bankruptcy Law</B>&#148; means title 11 of the United States Code, as amended, or any similar federal
or state law for the relief of debtors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Board of Directors</B>&#148; means, when used with reference to the Issuer or the Company, as the case
may be, the board of directors or any duly authorized committee of that board or any director or
directors and/or officer or officers to whom that board or committee shall have duly delegated its
authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Business Day</B>&#148; means any day except a Saturday, Sunday or other day on which commercial banks
in New York City or in the city where the Corporate Trust Office of the Trustee is located are
authorized or required by law or regulation to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Capital Stock</B>&#148; means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of or in such Person&#146;s capital stock or
other equity interests, and options, rights or warrants to purchase such capital stock or other
equity interests, whether now outstanding or issued after the Issue Date, including, without
limitation, all Disqualified Stock and Preferred Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Capitalized Lease Obligations</B>&#148; of any Person means the obligations of such Person to pay rent
or other amounts under a lease that is required to be capitalized for financial reporting purposes
in accordance with GAAP, and the amount of such obligations will be the capitalized amount thereof
determined in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Cash Equivalents</B>&#148; means
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;U.S. dollars;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;securities issued or directly and fully guaranteed or insured by the U.S. government or
any agency or instrumentality thereof having maturities of one year or less from the date of
acquisition;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;certificates of deposit and eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers&#146; acceptances with maturities not exceeding six months and
overnight bank deposits, in each case with any domestic commercial bank having capital and surplus
in excess of $500&nbsp;million;
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;repurchase obligations with a term of not more than seven days for underlying securities
of the types described in clauses (b)&nbsp;and (c)&nbsp;of this definition entered into with any financial
institution meeting the qualifications specified in clause (c)&nbsp;of this definition;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;commercial paper rated P-1, A-1 or the equivalent thereof by Moody&#146;s or S&#038;P, respectively,
and in each case maturing within six months after the date of acquisition; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;investments in money market funds substantially all of the assets of which consist of
securities described in the foregoing clauses (a)&nbsp;through (e)&nbsp;of this definition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>cash transaction</B>&#148; has the meaning ascribed to it in Section&nbsp;7.03 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Certificate of Beneficial Ownership</B>&#148; means a certificate substantially in the form of Exhibit
H.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Certificated Note</B>&#148; means a Note in registered individual form without interest coupons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Change of Control</B>&#148; means
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;any sale, lease or other transfer (in one transaction or a series of transactions) of all
or substantially all of the consolidated assets of the Company and its Restricted Subsidiaries to
any Person (other than a Restricted Subsidiary); <I>provided</I>, <I>however</I>, that a transaction where the
holders of all classes of Common Equity of the Company immediately prior to such transaction own,
directly or indirectly, more than 50% of all classes of Common Equity of such Person immediately
after such transaction shall not be a Change of Control;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;a &#147;<B>person</B>&#148; or &#147;<B>group</B>&#148; (within the meaning of Section 13(d) of the Exchange Act (other than
(x)&nbsp;the Company or (y)&nbsp;the Permitted Hovnanian Holders)) becomes the &#147;<B>beneficial owner</B>&#148; (as defined
in Rule&nbsp;13d-3 under the Exchange Act) of Common Equity of the Company representing more than 50% of
the voting power of the Common Equity of the Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Continuing Directors cease to constitute at least a majority of the Board of Directors of
the Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;the stockholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; <I>provided</I>, <I>however</I>, that a liquidation or dissolution of the Company
which is part of a transaction that does not constitute a Change of Control under the proviso
contained in clause (a)&nbsp;of this definition shall not constitute a Change of Control; or
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;a change of control shall occur as defined in the instrument governing any publicly traded
debt securities of the Company or the Issuer which requires the Company or the Issuer to repay or
repurchase such debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Clearstream</B>&#148; means Clearstream Banking, soci&#233;t&#233; anonyme, Luxembourg, formerly Cedelbank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral</B>&#148; means all property or assets of the Issuer and the Guarantors (whether now owned
or hereafter arising or acquired) that secures First-Priority Lien Obligations under the Security
Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral Agent</B>&#148; means the Trustee acting as the collateral agent for the holders of the
First-Priority Lien Obligations under the Security Documents and any successor acting in such
capacity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral Ratio&#148; </B>has the meaning ascribed to it in Section&nbsp;4.07(b)(iii)(C).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateralized Debt</B>&#148; means (i)&nbsp;the aggregate principal amount of all Indebtedness and all
letters of credit secured by Liens on the Collateral plus (ii)&nbsp;the aggregate amount of all unfunded
commitments under all revolving credit facilities or revolving lines of credit secured by Liens on
the Collateral plus (iii)&nbsp;without duplication, the aggregate principal amount of Indebtedness that
at such time would be permitted to be incurred under this Indenture and secured by Liens on the
Collateral pursuant to clauses (i)(a) and (i)(b) of the definition of &#147;Permitted Liens&#148; but
excluding Indebtedness, letters of credit and unfunded commitments secured by Liens on the
Collateral that rank junior to the Liens on the Collateral securing the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Commission</B>&#148; means the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Common Equity</B>&#148; of any Person means Capital Stock of such Person that is generally entitled to
(a)&nbsp;vote in the election of directors of such Person or (b)&nbsp;if such Person is not a corporation,
vote or otherwise participate in the selection of the governing body, partners, managers or others
that will control the management or policies of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Company</B>&#148; has the meaning ascribed to it in the preamble hereof and shall also refer to any
successor obligor under this Indenture and its Guarantee(s).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Consolidated Cash Flow Available for Fixed Charges</B>&#148; means, for any period, Consolidated Net
Income for such period plus (each to the extent deducted in calculating such Consolidated Net
Income and determined in accordance with GAAP) the sum for such period, without duplication, of:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;income taxes,
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Consolidated Interest Expense,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;depreciation and amortization expenses and other non-cash charges to earnings, and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;interest and financing fees and expenses which were previously capitalized and which are
amortized to cost of sales, <I>minus</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">all other non-cash items (other than the receipt of notes receivable) increasing such Consolidated
Net Income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Consolidated Fixed Charge Coverage Ratio</B>&#148; means, with respect to any determination date, the
ratio of (x)&nbsp;Consolidated Cash Flow Available for Fixed Charges for the prior four full fiscal
quarters (the &#147;<B>Four Quarter Period</B>&#148;) for which financial results have been reported immediately
preceding the determination date (the &#147;<B>Transaction Date</B>&#148;), to (y)&nbsp;the aggregate Consolidated
Interest Incurred for the Four Quarter Period. For purposes of this definition, &#147;<B>Consolidated Cash
Flow Available for Fixed Charges</B>&#148; and &#147;<B>Consolidated Interest Incurred</B>&#148; shall be calculated after
giving effect on a <I>pro forma </I>basis for the period of such calculation to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;the incurrence or the repayment, repurchase, defeasance or other discharge or the
assumption by another Person that is not an Affiliate (collectively, &#147;<B>repayment</B>&#148;) of any
Indebtedness of the Company, the Issuer or any Restricted Subsidiary (and the application of the
proceeds thereof) giving rise to the need to make such calculation, and any incurrence or repayment
of other Indebtedness (and the application of the proceeds thereof), at any time on or after the
first day of the Four Quarter Period and on or prior to the Transaction Date, as if such incurrence
or repayment, as the case may be (and the application of the proceeds thereof), occurred on the
first day of the Four Quarter Period, except that Indebtedness under revolving credit facilities
shall be deemed to be the average daily balance of such Indebtedness during the Four Quarter Period
(as reduced on such <I>pro forma </I>basis by the application of any proceeds of the incurrence of
Indebtedness giving rise to the need to make such calculation);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;any Asset Disposition or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of the Company, the Issuer
or any Restricted Subsidiary (including any Person that becomes a Restricted Subsidiary as a result
of any such Asset Acquisition) incurring Acquired Indebtedness at any time on or after the first
day of the Four Quarter Period and on or prior to the Transaction Date), as if such Asset
Disposition or Asset Acquisition (including the incurrence or repayment of any such Indebtedness)
and the inclusion, notwithstanding clause (b)&nbsp;of the definition of &#147;Consolidated Net Income,&#148; of
any Consolidated Cash Flow Available for Fixed Charges associated with such Asset Acquisition as if
it
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">occurred on the first day of the Four Quarter Period; <I>provided, however</I>, that the Consolidated
Cash Flow Available for Fixed Charges associated with any Asset Acquisition shall not be included
to the extent the net income so associated would be excluded pursuant to the definition of
&#147;Consolidated Net Income,&#148; other than clause (b)&nbsp;thereof, as if it applied to the Person or assets
involved before they were acquired; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;the Consolidated Cash Flow Available for Fixed Charges and the Consolidated Interest
Incurred attributable to discontinued operations, as determined in accordance with GAAP, shall be
excluded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Furthermore, in calculating &#147;Consolidated Cash Flow Available for Fixed Charges&#148; for purposes
of determining the denominator (but not the numerator) of this &#147;Consolidated Fixed Charge Coverage
Ratio,&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;interest on Indebtedness in respect of which a <I>pro forma </I>calculation is required that is
determined on a fluctuating basis as of the Transaction Date (including Indebtedness actually
incurred on the Transaction Date) and which will continue to be so determined thereafter shall be
deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness
in effect on the Transaction Date, and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;notwithstanding the immediately preceding clause (a), interest on such Indebtedness
determined on a fluctuating basis, to the extent such interest is covered by agreements relating to
Interest Protection Agreements, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Consolidated Interest Expense</B>&#148; of the Company for any period means the Interest Expense of
the Company, the Issuer and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Consolidated Interest Incurred</B>&#148; for any period means the Interest Incurred of the Company,
the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Consolidated Net Income</B>&#148; for any period means the aggregate net income (or loss) of the
Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with
GAAP; <I>provided</I>, that there will be excluded from such net income (loss) (to the extent otherwise
included therein), without duplication:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;the net income (or loss) of (x)&nbsp;any Unrestricted Subsidiary (other than a Mortgage
Subsidiary) or (y)&nbsp;any Person (other than a Restricted Subsidiary or a Mortgage Subsidiary) in
which any Person other than the Company, the Issuer or any Restricted Subsidiary has an ownership
interest, except, in each
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">case, to the extent that any such income has actually been received by the Company, the Issuer
or any Restricted Subsidiary in the form of cash dividends or similar cash distributions during
such period, which dividends or distributions are not in excess of the Company&#146;s, the Issuer&#146;s or
such Restricted Subsidiary&#146;s (as applicable) <I>pro rata </I>share of such Unrestricted Subsidiary&#146;s or
such other Person&#146;s net income earned during such period,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;except to the extent includable in Consolidated Net Income pursuant to clause (a)&nbsp;of this
definition, the net income (or loss) of any Person that accrued prior to the date that (i)&nbsp;such
Person becomes a Restricted Subsidiary or is merged with or into or consolidated with the Company,
the Issuer or any of its Restricted Subsidiaries (except, in the case of an Unrestricted Subsidiary
that is redesignated a Restricted Subsidiary during such period, to the extent of its retained
earnings from the beginning of such period to the date of such redesignation) or (ii)&nbsp;the assets of
such Person are acquired by the Company or any Restricted Subsidiary,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;the net income of any Restricted Subsidiary to the extent that (but only so long as) the
declaration or payment of dividends or similar distributions by such Restricted Subsidiary of that
income is not permitted by operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary during such period,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;the gains or losses, together with any related provision for taxes, realized during such
period by the Company, the Issuer or any Restricted Subsidiary resulting from (i)&nbsp;the acquisition
of securities, or extinguishment of Indebtedness, of the Company or any Restricted Subsidiary or
(ii)&nbsp;any Asset Disposition by the Company or any Restricted Subsidiary, and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;any extraordinary gain or loss together with any related provision for taxes, realized by
the Company, the Issuer or any Restricted Subsidiary;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>provided, further</I>, that for purposes of calculating Consolidated Net Income solely as it relates to
clause (iii)&nbsp;of Section&nbsp;4.07(a) hereof, clause (d)(ii) of this definition shall not be applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Continuing Director</B>&#148; means a director who either was a member of the Board of Directors of
the Company on the Issue Date or who became a director of the Company subsequent to such date and
whose election or nomination for election by the Company&#146;s stockholders was duly approved by a
majority of the Continuing Directors on the Board of Directors of the Company at the time of such
approval, either by a specific vote or by approval of the proxy statement issued by the Company on
behalf of the entire Board of Directors of the Company in which such individual is named as nominee
for director.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>control</B>&#148; when used with respect to any Person, means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms &#147;<B>controlling</B>&#148; and &#147;<B>controlled</B>&#148; have meanings
correlative to the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Corporate Trust Office</B>&#148; means the office of the Trustee at which the corporate trust business
of the Trustee is principally administered, which at the date of this Indenture is located at
Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-1600.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Covenant Defeasance</B>&#148; has the meaning ascribed to it in Section&nbsp;8.02 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Credit Facilities</B>&#148; means, collectively, one or more credit facilities and lines of credit
among or between the Company or one or more Restricted Subsidiaries and one or more lenders
pursuant to which the Company or one or more Restricted Subsidiaries may incur indebtedness for
working capital and general corporate purposes (including acquisitions), as any such facility or
line of credit may be amended, restated, supplemented or otherwise modified from time to time, and
includes any agreement extending the maturity of, increasing the amount of, or restructuring, all
or any portion of the Indebtedness under such facility or line of credit or any successor
facilities or lines of credit and includes any facility or line of credit with one or more lenders
refinancing or replacing all or any portion of the Indebtedness under such facility or line of
credit or any successor facility or line of credit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Currency Agreement</B>&#148; of any Person means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement designed to protect such Person or any of its
Subsidiaries against fluctuations in currency values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Custodian</B>&#148; means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Default</B>&#148; means any event, act or condition that is, or after notice or the passage of time or
both would be, an Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Depositary</B>&#148; means the depositary of each Global Note, which will initially be DTC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Designation Amount</B>&#148; has the meaning ascribed to it in the definition of &#147;Unrestricted
Subsidiary.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Disqualified Stock</B>&#148; means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon the happening of
any event, (a)&nbsp;matures or is mandatorily redeemable,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the
holder thereof, in whole or in part, on or prior to the final maturity date of the Notes or (b)&nbsp;is
convertible into or exchangeable or exercisable for (whether at the option of the issuer or the
holder thereof) (i)&nbsp;debt securities or (ii)&nbsp;any Capital Stock referred to in (a)&nbsp;above, in each
case, at any time prior to the final maturity date of the Notes; <I>provided</I>, <I>however</I>, that any
Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving
holders thereof (or the holders of any security into or for which such Capital Stock is
convertible, exchangeable or exercisable) the right to require the Company to repurchase or redeem
such Capital Stock upon the occurrence of a change in control or asset disposition occurring prior
to the final maturity date of the Notes shall not constitute Disqualified Stock if the change in
control or asset disposition provision applicable to such Capital Stock are no more favorable to
such holders than the provisions of Section&nbsp;4.10 or Section&nbsp;4.12 hereof (as applicable) and such
Capital Stock specifically provides that the Company will not repurchase or redeem any such Capital
Stock pursuant to such provisions prior to the Company&#146;s repurchase of the Notes as are required
pursuant to provisions of Section&nbsp;4.10 or Section&nbsp;4.12 hereof (as applicable).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>DTC</B>&#148; means The Depository Trust Company, a New York corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>DTC Legend</B>&#148; means the legend set forth in Exhibit&nbsp;D.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Equity Offering</B>&#148; means any public or private sale, after the Issue Date, of Qualified Stock
of the Company, other than (i)&nbsp;an Excluded Contribution, (ii)&nbsp;public offerings registered on Form
S-4 or S-8 or any successor form thereto or (iii)&nbsp;any issuance pursuant to employee benefit plans
or otherwise in compensation to officers, directors or employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Euroclear</B>&#148; means Euroclear Bank S.A./N.V. and its successors or assigns, as operator of the
Euroclear System.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Event of Default</B>&#148; has the meaning ascribed to such term in Section&nbsp;5.01.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Exchange Act</B>&#148; means the Securities Exchange Act of 1934, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Exchange Notes</B>&#148; means the notes of the Issuer issued under this Indenture in exchange for,
and in an aggregate principal amount equal to, the Initial Notes or any Initial Additional Notes in
compliance with the terms of a Registration Rights Agreement and containing terms substantially
identical to the Initial Notes or any Initial Additional Notes (except that (i)&nbsp;such Exchange Notes
will be registered under the Securities Act and will not be subject to transfer restrictions or
bear the Restricted Legend, and (ii)&nbsp;the provisions relating to Additional Interest will be
eliminated).
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Exchange Offer</B>&#148; means an offer by the Issuer to the Holders of the Initial Notes or any
Initial Additional Notes to exchange such Notes for Exchange Notes, as provided for in the
applicable Registration Rights Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Exchange Offer Registration Statement</B>&#148; means the Exchange Offer Registration Statement as
defined in a Registration Rights Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Excluded Contribution</B>&#148; means cash or Cash Equivalents received by the Company as capital
contributions to its equity (other than through the issuance of Disqualified Stock) or from the
issuance or sale (other than to a Subsidiary) of Qualified Stock of the Company, in each case,
after January&nbsp;31, 2008 and to the extent designated as an Excluded Contribution pursuant to an
Officers&#146; Certificate of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Excluded Property</B>&#148; means (a)&nbsp;any pledges of stock of a Guarantor or of K. Hovnanian JV
Holdings, L.L.C. to the extent that Rule&nbsp;3-16 of Regulation&nbsp;S-X under the Securities Act requires
or would require (or is replaced with another rule or regulation, or any other law, rule or
regulation is adopted, that would require) the filing with the Commission of separate financial
statements of such Guarantor or of K. Hovnanian JV Holdings, L.L.C. that are not otherwise required
to be filed, but only to the extent necessary to not be subject to such requirement, (b)&nbsp;up to
$50.0&nbsp;million of assets received in connection with Asset Dispositions and asset swaps or exchanges
as permitted by clause (c)&nbsp;of the definition of <font style="white-space: nowrap">&#147;Permitted Investment,&#148;</font> (c)&nbsp;personal property where
the cost of obtaining a security interest or perfection thereof exceeds its benefits (as reasonably
determined by the Company&#146;s Board of Directors in a board resolution delivered to the Collateral
Agent), (d)&nbsp;real property subject to a Lien securing Indebtedness incurred for the purpose of
financing the acquisition thereof, (e)&nbsp;real property located outside the United States, (f)
Unentitled Land, (g)&nbsp;real property that is leased or held for the purpose of leasing to
unaffiliated third parties, (h)&nbsp;equity interests in Unrestricted Subsidiaries, except for K.
Hovnanian JV Holdings, L.L.C., and subject to future grants under the terms of this Indenture, (i)
any real property in a community under development with a dollar amount of investment as of the
most recent month-end (as determined in accordance with GAAP) of less than $2.0&nbsp;million or with
less than 10 lots remaining, (j)&nbsp;any assets or property excluded from the Collateral pursuant to
clause (ii)&nbsp;of the proviso of Article 2 of the Security Agreement and (k)&nbsp;up to $25.0&nbsp;million of
cash or cash equivalents that are pledged to secure obligations permitted to be secured pursuant to
clause (d)&nbsp;of the definition of &#147;Permitted Liens&#148; if, after the use of commercially reasonable
efforts by the Company to obtain a Lien on such cash or cash equivalents for the benefit of the
Holders of the Notes, the holders of the obligations secured by such cash and cash equivalents do
not consent to the granting of such Liens.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Existing Revolving Credit Agreement</B>&#148; means that certain Seventh Amended and Restated Credit
Agreement dated as of March&nbsp;7, 2008, as amended by Amendment No.&nbsp;1 thereto dated May&nbsp;16, 2008,
among the Issuer, the Company, the administrative agent named therein, and a syndicate of lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Existing Subordinated Debt</B>&#148; has the meaning ascribed to it in the definition of &#147;Refinancing
Indebtedness&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>expiration date</B>&#148; has the meaning ascribed to it in Section&nbsp;3.05(b) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Fair Market Value</B>&#148; means, with respect to any asset, the price (after taking into account any
liabilities relating to such assets) that would be negotiated in an arm&#146;s-length transaction for
cash between a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction, as such price is determined in good faith by the Board of
Directors of the Company or a duly authorized committee thereof, as evidenced by a resolution of
such Board or committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>First-Priority Lien Obligations</B>&#148; means all Indebtedness secured pursuant to clauses (i)(a)
and (i)(b) of the definition of &#147;Permitted Liens&#148;, and all Obligations in respect thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>&#147;First-Priority Liens</B>&#148; means all Liens that secure the First-Priority Lien Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>GAAP</B>&#148; means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant segment of the
accounting profession of the United States, as in effect on the Issue Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Global Note</B>&#148; means a Note in registered, global form without interest coupons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Guarantee</B>&#148; means the guarantee of the Notes by each Guarantor under this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>guarantee</B>&#148; means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and, without limiting the generality
of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person: (a)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness of
such other Person (whether arising by virtue of partnership arrangements, or by agreement to
keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">maintain financial statement conditions or otherwise) or (b)&nbsp;entered into for purposes of
assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect
such obligee against loss in respect thereof, in whole or in part; <I>provided</I>, that the term
&#147;<B>guarantee</B>&#148; does not include endorsements for collection or deposit in the ordinary course of
business. The term &#147;<B>guarantee</B>&#148; used as a verb has a corresponding meaning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Guarantors</B>&#148; means (a)&nbsp;initially, the Company and each of the other Guarantors signatory
hereto as set forth on Schedule&nbsp;A hereto, which includes each of the Company&#146;s Restricted
Subsidiaries in existence on the Issue Date, other than the Issuer and K. Hovnanian Poland,
sp.zo.o. and (b)&nbsp;each of the Company&#146;s Subsidiaries that becomes a Guarantor of the Notes pursuant
to the provisions of this Indenture, and their successors, in each case until released from its
respective Guarantee pursuant to this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Holder</B>&#148;, &#147;<B>Holders</B>&#148;, &#147;<B>Holder of Notes</B>&#148; or &#147;<B>Holders of Notes</B>&#148; means the Person or each Person
in whose name a Note is registered in the books of the Registrar for the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>incurrence</B>&#148; has the meaning ascribed to it in Section&nbsp;4.06(a) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Indebtedness</B>&#148; of any Person means, without duplication,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;any liability of such Person (i)&nbsp;for borrowed money or under any reimbursement obligation
relating to a letter of credit or other similar instruments (other than standby letters of credit
or similar instruments issued for the benefit of, or surety, performance, completion or payment
bonds, earnest money notes or similar purpose undertakings or indemnifications issued by, such
Person in the ordinary course of business), (ii)&nbsp;evidenced by a bond, note, debenture or similar
instrument (including a purchase money obligation) given in connection with the acquisition of any
businesses, properties or assets of any kind or with services incurred in connection with capital
expenditures (other than any obligation to pay a contingent purchase price which, as of the date of
incurrence thereof, is not required to be recorded as a liability in accordance with GAAP), or
(iii)&nbsp;in respect of Capitalized Lease Obligations (to the extent of the Attributable Debt in
respect thereof),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;any Indebtedness of others that such Person has guaranteed to the extent of the guarantee;
<I>provided</I>, <I>however</I>, that Indebtedness of the Company and its Restricted Subsidiaries will not
include the obligations of the Company or a Restricted Subsidiary under warehouse lines of credit
of Mortgage Subsidiaries to repurchase mortgages at prices no greater than 98% of the principal
amount thereof, and upon any such purchase the excess, if any, of the purchase price thereof over
the Fair Market Value of the mortgages acquired, will constitute Restricted Payments subject to
Section&nbsp;4.07 hereof,
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;to the extent not otherwise included, the obligations of such Person under Currency
Agreements or Interest Protection Agreements to the extent recorded as liabilities not constituting
Interest Incurred, net of amounts recorded as assets in respect of such agreements, in accordance
with GAAP, and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;all Indebtedness of others secured by a Lien on any asset of such Person, whether or not
such Indebtedness is assumed by such Person;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>provided</I>, that Indebtedness shall not include accounts payable, liabilities to trade creditors of
such Person or other accrued expenses arising in the ordinary course of business. The amount of
Indebtedness of any Person at any date shall be (i)&nbsp;the outstanding balance at such date of all
unconditional obligations as described above, net of any unamortized discount to be accounted for
as Interest Expense, in accordance with GAAP, (ii)&nbsp;the maximum liability of such Person for any
contingent obligations under clause (a)&nbsp;of this definition at such date, net of an unamortized
discount to be accounted for as Interest Expense in accordance with GAAP, and (iii)&nbsp;in the case of
clause (d)&nbsp;of this definition, the lesser of (x)&nbsp;the fair market value of any asset subject to a
Lien securing the Indebtedness of others on the date that the Lien attaches and (y)&nbsp;the amount of
the Indebtedness secured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Indenture</B>&#148; means this indenture, as amended or supplemented from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Initial Additional Notes</B>&#148; means Additional Notes of the Issuer issued under this Indenture in
an offering not registered under the Securities Act and any Notes issued in replacement therefor,
but not including any Exchange Notes issued in exchange therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Initial Notes</B>&#148; means the Notes of the Issuer issued under this Indenture on the Issue Date
and any Notes issued in replacement thereof, but not including any Exchange Notes issued in
exchange therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Initial Purchasers</B>&#148; means the initial purchasers party to a purchase agreement with the
Issuer, the Company and the Guarantors party thereto relating to the sale of the Initial Notes, or
any Initial Additional Notes, as the case may be, by the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Institutional Accredited Investor Certificate</B>&#148; means a certificate substantially in the form
of Exhibit&nbsp;G hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Intercreditor Agreements</B>&#148; mean the Intercreditor Agreements as amended as of the Issue Date
among the Collateral Agent, Wilmington Trust Company, the Junior Collateral Agents, the Trustee,
the Junior Trustees, the Issuer, the Company and each other Guarantor named therein, as applicable,
as such agreements may be amended, restated, supplemented or otherwise modified from time to time.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Interest Expense</B>&#148; of any Person for any period means, without duplication, the aggregate
amount of (a)&nbsp;interest which, in conformity with GAAP, would be set opposite the caption &#147;interest
expense&#148; or any like caption on an income statement for such Person (including, without limitation,
imputed interest included in Capitalized Lease Obligations, all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers&#146; acceptance financing, the net
costs (but reduced by net gains) associated with Currency Agreements and Interest Protection
Agreements, amortization of other financing fees and expenses, the interest portion of any deferred
payment obligation, amortization of discount or premium, if any, and all other noncash interest
expense (other than interest and other charges amortized to cost of sales)), and (b)&nbsp;all interest
actually paid by the Company or a Restricted Subsidiary under any guarantee of Indebtedness
(including, without limitation, a guarantee of principal, interest or any combination thereof) of
any Person other than the Company, the Issuer or any Restricted Subsidiary during such period;
<I>provided</I>, that Interest Expense shall exclude any expense associated with the complete write-off of
financing fees and expenses in connection with the repayment of any Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Interest Incurred</B>&#148; of any Person for any period means, without duplication, the aggregate
amount of (a)&nbsp;Interest Expense and (b)&nbsp;all capitalized interest and amortized debt issuance costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Interest Payment Date</B>&#148; means each April&nbsp;15 and October&nbsp;15 of each year, commencing April&nbsp;15,
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Interest Protection Agreement</B>&#148; of any Person means any interest rate swap agreement, interest
rate collar agreement, option or futures contract or other similar agreement or arrangement
designed to protect such Person or any of its Subsidiaries against fluctuations in interest rates
with respect to Indebtedness permitted to be incurred under this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Investments</B>&#148; of any Person means (a)&nbsp;all investments by such Person in any other Person in
the form of loans, advances or capital contributions, (b)&nbsp;all guarantees of Indebtedness or other
obligations of any other Person by such Person, (c)&nbsp;all purchases (or other acquisitions for
consideration) by such Person of Indebtedness, Capital Stock or other securities of any other
Person and (d)&nbsp;all other items that would be classified as investments in any other Person
(including, without limitation, purchases of assets outside the ordinary course of business) on a
balance sheet of such Person prepared in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Issue Date</B>&#148; means October&nbsp;20, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Issuer</B>&#148; has the meaning ascribed to it in the preamble hereof and shall also refer to any
successor obligor under this Indenture.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Junior Collateral Agents</B>&#148; means Wilmington Trust Company, a Delaware banking corporation, as
collateral agent, on a junior-priority basis, for the benefit of holders of any of the Issuer&#146;s
111/2% Senior Secured Notes due 2013 that are Outstanding Junior Secured Notes and Wilmington Trust
Company, a Delaware banking corporation, as collateral agent, on a junior-priority basis, for the
benefit of holders of any of the Issuer&#146;s 18% Senior Secured Notes due 2017 that are Outstanding
Junior Secured Notes and any collateral agent for any future Indebtedness secured by Liens on the
Collateral junior to the Liens securing the First-Priority Lien Obligations as permitted by this
Indenture and the Intercreditor Agreements, together with any successors to such collateral agents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Junior Notes&#148; </B>means the Outstanding Junior Secured Notes and any future Indebtedness secured
by Liens on the Collateral junior to the Liens securing the First-Priority Lien Obligations as
permitted by this Indenture and the Intercreditor Agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Junior Trustees&#148; </B>means the trustees for, or representatives of, any Junior Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>L/C Collateral</B>&#148; means cash and cash equivalents that secure obligations permitted to be
secured pursuant to clause (d)&nbsp;of the definition of &#147;Permitted Liens&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Legal Defeasance</B>&#148; has the meaning ascribed to it in Section&nbsp;8.01 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Lien</B>&#148; means, with respect to any Property, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such Property. For purposes of this definition, a
Person shall be deemed to own, subject to a Lien, any Property which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease
or other title retention agreement relating to such Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Marketable Securities</B>&#148; means (a)&nbsp;equity securities that are listed on the New York Stock
Exchange, the American Stock Exchange or The Nasdaq Stock Market and (b)&nbsp;debt securities that are
rated by a nationally recognized rating agency, listed on the New York Stock Exchange or the
American Stock Exchange or covered by at least two reputable market makers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Moody&#146;s</B>&#148; means Moody&#146;s Investors Service, Inc. or any successor to its debt rating business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Mortgage Subsidiary</B>&#148; means any Subsidiary of the Company substantially all of whose
operations consist of the mortgage lending business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Net Cash Proceeds</B>&#148; means with respect to an Asset Disposition, payments received in cash
(including any such payments received by way of
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">deferred payment of principal pursuant to a note or installment receivable or otherwise
(including any cash received upon sale or disposition of such note or receivable), but only as and
when received), excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to the Property disposed of in such
Asset Disposition or received in any other non-cash form unless and until such non-cash
consideration is converted into cash therefrom, in each case, net of all legal, title and recording
tax expenses, commissions and other fees and expenses incurred, and all federal, state and local
taxes required to be accrued as a liability under GAAP as a consequence of such Asset Disposition,
and in each case net of a reasonable reserve for the after-tax cost of any indemnification or other
payments (fixed and contingent) attributable to the seller&#146;s indemnities or other obligations to
the purchaser undertaken by the Company, the Issuer or any of its Restricted Subsidiaries in
connection with such Asset Disposition, and net of all payments made on any Indebtedness which is
secured by or relates to such Property (other than Indebtedness secured by Liens on the Collateral)
in accordance with the terms of any Lien or agreement upon or with respect to such Property or
which such Indebtedness must by its terms or by applicable law be repaid out of the proceeds from
such Asset Disposition, and net of all contractually required distributions and payments made to
minority interest holders in Restricted Subsidiaries or joint ventures as a result of such Asset
Disposition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Non-Recourse Indebtedness</B>&#148; with respect to any Person means Indebtedness of such Person for
which (a)&nbsp;the sole legal recourse for collection of principal and interest on such Indebtedness is
against the specific property identified in the instruments evidencing or securing such
Indebtedness and such property was acquired with the proceeds of such Indebtedness or such
Indebtedness was incurred within 90&nbsp;days after the acquisition of such property and (b)&nbsp;no other
assets of such Person may be realized upon in collection of principal or interest on such
Indebtedness. Indebtedness which is otherwise Non-Recourse Indebtedness will not lose its character
as Non-Recourse Indebtedness because there is recourse to the borrower, any guarantor or any other
Person for (i)&nbsp;environmental warranties and indemnities, or (ii)&nbsp;indemnities for and liabilities
arising from fraud, misrepresentation, misapplication or non-payment of rents, profits, insurance
and condemnation proceeds and other sums actually received by the borrower from secured assets to
be paid to the lender, waste and mechanics&#146; liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Non-U.S. Person</B>&#148; means a Person that is not a &#147;U.S. person,&#148; as such term is defined in
Regulation&nbsp;S.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Notes</B>&#148; has the meaning ascribed to it in the Recitals hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Obligations</B>&#148; means with respect to any Indebtedness, all obligations (whether in existence on
the Issue Date or arising afterwards, absolute or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">contingent, direct or indirect) for or in respect of principal (when due, upon acceleration,
upon redemption, upon mandatory repayment or repurchase pursuant to a mandatory offer to purchase,
or otherwise), premium, interest, penalties, fees, indemnification, reimbursement and other amounts
payable and liabilities with respect to such Indebtedness, including all interest accrued or
accruing after the commencement of any bankruptcy, insolvency or reorganization or similar case or
proceeding at the contract rate (including, without limitation, any contract rate applicable upon
default) specified in the relevant documentation, whether or not the claim for such interest is
allowed as a claim in such case or proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>offer</B>&#148; has the meaning ascribed to it in Section&nbsp;3.05(a) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Offer to Purchase</B>&#148; has the meaning ascribed to it in Section&nbsp;3.05 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Officer</B>,&#148; when used with respect to the Issuer or the Company, means the chairman of the
Board of Directors, the president or chief executive officer, any vice president, the chief
financial officer, the treasurer, any assistant treasurer, the controller, any assistant
controller, the secretary or any assistant secretary of the Issuer or the Company, as the case may
be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Officers&#146; Certificate</B>,&#148; when used with respect to the Issuer or the Company, means a
certificate signed by the chairman of the Board of Directors, the president or chief executive
officer, or any vice president and by the chief financial officer, the treasurer, any assistant
treasurer, the controller, any assistant controller, the secretary or any assistant secretary of
the Issuer or the Company, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>OID Legend</B>&#148; means the legend set forth in Exhibit&nbsp;K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Opinion of Counsel</B>&#148; means a written opinion signed by legal counsel of the Issuer or the
Company, who may be an employee of, or counsel to, the Issuer or the Company, and who shall be
reasonably satisfactory to the Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Original Notes</B>&#148; means the Initial Notes and any Exchange Notes issued in exchange therefor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Outstanding Junior Secured Notes</B>&#148; means, collectively, any of the Issuer&#146;s 111/2% Senior
Secured Notes due 2013 and 18% Senior Secured Notes due 2017 that are outstanding after
consummation of the Tender Offers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Paying Agent</B>&#148; refers to a Person engaged to perform the obligations of the Trustee in respect
of payments made or funds held hereunder in respect of the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Permanent Regulation&nbsp;S Global Note</B>&#148; means a Regulation&nbsp;S Global Note that does not bear the
Regulation&nbsp;S Temporary Global Note Legend.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Permitted Hovnanian Holders</B>&#148; means, collectively, Ara K. Hovnanian, the members of his
immediate family and the members of the immediate family of the late Kevork S. Hovnanian, the
respective estates, spouses, heirs, ancestors, lineal descendants, legatees and legal
representatives of any of the foregoing and the trustee of any <I>bona fide </I>trust of which one or more
of the foregoing are the sole beneficiaries or the grantors thereof, or any entity of which any of
the foregoing, individually or collectively, beneficially own more than 50% of the Common Equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Permitted Indebtedness</B>&#148; means
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Indebtedness under the Notes (and Exchange Notes and Guarantees thereof), other than
Additional Notes;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Indebtedness of the Company, the Issuer or any Guarantor that is (A)&nbsp;secured by Liens
permitted by clause (i)(a) of the definition of &#147;Permitted Liens&#148;, in an aggregate principal amount
that, after giving effect to the incurrence of such Indebtedness, does not result in outstanding
Indebtedness, so secured, in excess of the amount permitted by the proviso in clause (i)(a)(ii) of
the definition of &#147;Permitted Liens&#148; and (B)&nbsp;scheduled to mature on or after the maturity date of
the Notes (except with respect to Indebtedness incurred pursuant to this clause (b)&nbsp;under Credit
Facilities, which may be scheduled to mature on or prior to the maturity date of the Notes;
<I>provided </I>that such Indebtedness, together with any Refinancing Indebtedness permitted by the
proviso of paragraph (b)&nbsp;of the definition thereof then outstanding, does not exceed $150.0&nbsp;million
in aggregate principal amount);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Indebtedness in respect of obligations of the Company and its Subsidiaries to the trustees
under indentures for debt securities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;intercompany debt obligations of (i)&nbsp;the Company to the Issuer, (ii)&nbsp;the Issuer to the
Company, (iii)&nbsp;the Company or the Issuer to any Restricted Subsidiary and (iv)&nbsp;any Restricted
Subsidiary to the Company or the Issuer or any other Restricted Subsidiary; <I>provided</I>, <I>however</I>, that
any Indebtedness of any Restricted Subsidiary or the Issuer or the Company owed to any Restricted
Subsidiary or the Issuer that ceases to be a Restricted Subsidiary shall be deemed to be incurred
and shall be treated as an incurrence for purposes of Section&nbsp;4.06(a) hereof at the time the
Restricted Subsidiary in question ceases to be a Restricted Subsidiary;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;Indebtedness of the Company or the Issuer or any Restricted Subsidiary under any Currency
Agreements or Interest Protection Agreements in a notional amount no greater than the payments due
(at the time the related Currency Agreement or Interest Protection Agreement is entered into) with
respect to the Indebtedness or currency being hedged;
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;Purchase Money Indebtedness and Capitalized Lease Obligations in an aggregate principal
amount outstanding at any one time not to exceed $25.0&nbsp;million;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;obligations for, pledge of assets in respect of, and guaranties of, bond financings of
political subdivisions or enterprises thereof in the ordinary course of business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;Indebtedness secured only by office buildings owned or occupied by the Company or any
Restricted Subsidiary, which Indebtedness does not exceed $10&nbsp;million aggregate principal amount
outstanding at any one time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;Indebtedness under warehouse lines of credit, repurchase agreements and Indebtedness
secured by mortgage loans and related assets of mortgage lending Subsidiaries in the ordinary
course of a mortgage lending business; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;Indebtedness of the Company or any Restricted Subsidiary which, together with all other
Indebtedness under this clause (j), does not exceed $50&nbsp;million aggregate principal amount
outstanding at any one time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Permitted Investment</B>&#148; means
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Cash Equivalents;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;any Investment in the Company, the Issuer or any Restricted Subsidiary or any Person that
becomes a Restricted Subsidiary as a result of such Investment or that is consolidated or merged
with or into, or transfers all or substantially all of the assets of it or an operating unit or
line of business to, the Company or a Restricted Subsidiary;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;any receivables, loans or other consideration taken by the Company, the Issuer or any
Restricted Subsidiary in connection with any asset sale otherwise permitted by this Indenture;
<I>provided </I>that non-cash consideration received in an Asset Disposition or an exchange or swap of
assets shall be pledged as Collateral under the Security Documents to the extent the assets subject
to such Asset Disposition or exchange or swap of assets constituted Collateral, with the Lien on
such Collateral securing the Notes being of the same priority with respect to the Notes as the Lien
on the assets disposed of; <I>provided, further, </I>that notwithstanding the foregoing clause, up to an
aggregate of $50.0&nbsp;million of (x)&nbsp;non-cash consideration and consideration received as referred to
in Section&nbsp;4.10(b)(ii), (y)&nbsp;assets invested in pursuant to Section&nbsp;4.10(c) and (z)&nbsp;assets received
pursuant to clause (d)&nbsp;under the definition of &#147;Asset Disposition&#148; may be designated by the Company
or the Issuer as Excluded Property not required to be pledged as Collateral;
</DIV>
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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Investments received in connection with any bankruptcy or reorganization proceeding, or as
a result of foreclosure, perfection or enforcement of any Lien or any judgment or settlement of any
Person in exchange for or satisfaction of Indebtedness or other obligations or other property
received from such Person, or for other liabilities or obligations of such Person created, in
accordance with the terms of this Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;Investments in Currency Agreements or Interest Protection Agreements described in the
definition of &#147;Permitted Indebtedness&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;any loan or advance to an executive officer, director or employee of the Company or any
Restricted Subsidiary made in the ordinary course of business or in accordance with past practice;
<I>provided</I>, <I>however</I>, that any such loan or advance exceeding $1&nbsp;million shall have been approved by
the Board of Directors of the Company or a committee thereof consisting of disinterested members;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;Investments in interests in issuances of collateralized mortgage obligations, mortgages,
mortgage loan servicing, or other mortgage related assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;obligations of the Company or a Restricted Subsidiary under warehouse lines of credit of
Mortgage Subsidiaries to repurchase mortgages; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;Investments in an aggregate amount outstanding not to exceed $10&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Permitted Liens</B>&#148; means
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Liens for taxes, assessments or governmental or quasi-government charges or claims that
(i)&nbsp;are not yet delinquent, (ii)&nbsp;are being contested in good faith by appropriate proceedings and
as to which appropriate reserves have been established or other provisions have been made in
accordance with GAAP, if required, or (iii)&nbsp;encumber solely property abandoned or in the process of
being abandoned;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;statutory Liens of landlords and carriers&#146;, warehousemen&#146;s, mechanics&#146;, suppliers&#146;,
materialmen&#146;s, repairmen&#146;s or other Liens imposed by law and arising in the ordinary course of
business and with respect to amounts that, to the extent applicable, either (i)&nbsp;are not yet
delinquent or (ii)&nbsp;are being contested in good faith by appropriate proceedings and as to which
appropriate reserves have been established or other provisions have been made in accordance with
GAAP, if required;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Liens (other than any Lien imposed by the Employer Retirement Income Security Act of 1974,
as amended) incurred or deposits made in the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">ordinary course of business in connection with workers&#146; compensation, unemployment insurance
and other types of social security;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Liens incurred or deposits made to secure the performance of tenders, bids, leases,
statutory obligations, surety and appeal bonds, development obligations, progress payments,
government contacts, utility services, developer&#146;s or other obligations to make on-site or off-site
improvements and other obligations of like nature (exclusive of obligations for the payment of
borrowed money but including the items referred to in the parenthetical in clause (a)(i) of the
definition of &#147;Indebtedness&#148;), in each case incurred in the ordinary course of business of the
Company, the Issuer and the Restricted Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;attachment or judgment Liens not giving rise to a Default or an Event of Default;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;easements, dedications, assessment district or similar Liens in connection with municipal
or special district financing, rights-of-way, restrictions, reservations and other similar charges,
burdens, and other similar charges or encumbrances not materially interfering with the ordinary
course of business of the Company, the Issuer and the Restricted Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;zoning restrictions, licenses, restrictions on the use of real property or minor
irregularities in title thereto, which do not materially impair the use of such real property in
the ordinary course of business of the Company, the Issuer and the Restricted Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;Liens securing Indebtedness incurred pursuant to clauses (h)&nbsp;or (i)&nbsp;of the definition of
&#147;Permitted Indebtedness&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;Liens on the Collateral and other assets not constituting Collateral pursuant to clause
(a)&nbsp;of the definition of &#147;Excluded Property&#148; securing:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(a)&nbsp;(i)&nbsp;the Notes (other than Additional Notes) and Exchange Notes, the Guarantees thereof and
other Obligations under this Indenture and the Security Documents and in respect thereof and any
obligations owing to the Trustee or the Collateral Agent under this Indenture or the Security
Documents, (ii)&nbsp;other Indebtedness otherwise permitted to be incurred under this Indenture (and all
Obligations in respect thereof), which Liens incurred under this clause (a)(ii) may be on a
first-lien priority basis ranking equally with the Liens securing the Indebtedness and other
Obligations referred to in this clause (a), <I>provided </I>that the Indebtedness so secured pursuant to
this clause (a)(ii), when taken together with any Indebtedness secured pursuant to this clause (a)
outstanding at the time such other Indebtedness is incurred and so secured, does not exceed $785.0
million and (iii)&nbsp;any Refinancing Indebtedness (including pursuant to Credit Facilities) in respect
of clauses (a)(i) and (a)(ii), which Liens incurred under this clause (a)(iii)
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">may be on a first-lien priority basis ranking equally with the Liens securing the Indebtedness
and other Obligations referred to in this clause (a);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(b)&nbsp;(i)&nbsp;up to an additional $25.0&nbsp;million of Indebtedness otherwise permitted to be incurred
under this Indenture (and all Obligations arising thereunder) and any Refinancing Indebtedness in
respect thereof (including pursuant to Credit Facilities) and (ii)&nbsp;Refinancing Indebtedness
(including pursuant to Credit Facilities) in respect of Outstanding Junior Secured Notes and any
Refinancing Indebtedness in respect thereof (including pursuant to Credit Facilities), which Liens
incurred under this clause (b)&nbsp;may be on a first-lien priority basis ranking equally with the Liens
securing the Indebtedness and other Obligations referred to in clause (a)&nbsp;above; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(c)&nbsp;(i)&nbsp;any Outstanding Junior Secured Notes, the Guarantees thereof and other Obligations
under the related indentures and security documents and in respect thereof and any obligations
owing to the Junior Trustees or the Junior Collateral Agents under the applicable indentures and
security documents and (ii)&nbsp;any other Indebtedness permitted to be incurred under this Indenture
(and all Obligations in respect thereof); and any Refinancing Indebtedness (including pursuant to
Credit Facilities) in respect of the Indebtedness referred to in this clause (c), <I>provided </I>that the
Liens securing Indebtedness referred to in this clause (c)&nbsp;rank junior to the Liens on the
Collateral securing the Notes pursuant to the Intercreditor Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;Liens securing Non-Recourse Indebtedness of the Company, the Issuer or any Restricted
Subsidiary; <I>provided</I>, that such Liens apply only to the property financed out of the net proceeds
of such Non-Recourse Indebtedness within 90&nbsp;days after the incurrence of such Non-Recourse
Indebtedness;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(k)&nbsp;Liens securing Purchase Money Indebtedness; <I>provided</I>, that such Liens apply only to the
property acquired, constructed or improved with the proceeds of such Purchase Money Indebtedness
within 90&nbsp;days after the incurrence of such Purchase Money Indebtedness;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(l)&nbsp;Liens on property or assets of the Company, the Issuer or any Restricted Subsidiary
securing Indebtedness of the Company, the Issuer or any Restricted Subsidiary owing to the Company,
the Issuer or one or more Restricted Subsidiaries (other than K. Hovnanian Poland, sp.zo.o.);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(m)&nbsp;leases or subleases granted to others not materially interfering with the ordinary course
of business of the Company and the Restricted Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(n)&nbsp;purchase money security interests (including, without limitation, Capitalized Lease
Obligations); <I>provided</I>, that such Liens apply only to the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Property acquired and the related Indebtedness is incurred within 90&nbsp;days after the
acquisition of such Property;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(o)&nbsp;any right of first refusal, right of first offer, option, contract or other agreement to
sell an asset; <I>provided</I>, that such sale is not otherwise prohibited under this Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(p)&nbsp;any right of a lender or lenders to which the Company, the Issuer or a Restricted
Subsidiary may be indebted to offset against, or appropriate and apply to the payment of such,
Indebtedness any and all balances, credits, deposits, accounts or money of the Company, the Issuer
or a Restricted Subsidiary with or held by such lender or lenders or its Affiliates;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(q)&nbsp;any pledge or deposit of cash or property in conjunction with obtaining surety,
performance, completion or payment bonds and letters of credit or other similar instruments or
providing earnest money obligations, escrows or similar purpose undertakings or indemnifications in
the ordinary course of business of the Company, the Issuer and the Restricted Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(r)&nbsp;Liens for homeowner and property owner association developments and assessments;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(s)&nbsp;Liens securing Refinancing Indebtedness; <I>provided</I>, that such Liens extend only to the
assets securing the Indebtedness being refinanced and have the same or junior priority as the
initial Liens; <I>provided further </I>that no Liens may be incurred under this clause (s)&nbsp;in respect of
Refinancing Indebtedness incurred to refinance Indebtedness that is secured by Liens incurred under
clause (i)&nbsp;above;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(t)&nbsp;Liens incurred in the ordinary course of business as security for the obligations of the
Company, the Issuer and the Restricted Subsidiaries with respect to indemnification in respect of
title insurance providers;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(u)&nbsp;Liens on property of a Person existing at the time such Person is merged with or into or
consolidated with the Company or any Subsidiary of the Company or becomes a Subsidiary of the
Company; <I>provided</I>, that such Liens were in existence prior to the contemplation of such merger or
consolidation or acquisition and do not extend to any assets other than those of the Person merged
into or consolidated with the Company or the Subsidiary or acquired by the Company or its
Subsidiaries;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(v)&nbsp;Liens on property existing at the time of acquisition thereof by the Company or any
Subsidiary of the Company, <I>provided</I>, that such Liens were in existence prior to the contemplation
of such acquisition;
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(w)&nbsp;Liens existing on the Issue Date (other than Liens securing Obligations under the Notes
and the Outstanding Junior Secured Notes) and any extensions, renewals or replacements thereof; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(x)&nbsp;Liens on specific items of inventory or other goods and proceeds of any Person securing
such Person&#146;s obligations in respect of bankers&#146; acceptances issued or created for the account of
such Person to facilitate the purchase, shipment or storage of such inventory or other goods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Person</B>&#148; means any individual, corporation, partnership, limited liability company, joint
venture, incorporated or unincorporated association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Preferred Stock</B>&#148; of any Person means all Capital Stock of such Person which has a preference
in liquidation or with respect to the payment of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Property</B>&#148; of any Person means all types of real, personal, tangible, intangible or mixed
property owned by such Person, whether or not included in the most recent consolidated balance
sheet of such Person and its Subsidiaries under GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>purchase amount</B>&#148; has the meaning ascribed to it in Section&nbsp;3.05(b) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>purchase date</B>&#148; has the meaning ascribed to it in Section&nbsp;3.05(b) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Purchase Money Indebtedness</B>&#148; means Indebtedness of the Company, the Issuer or any Restricted
Subsidiary incurred for the purpose of financing all or any part of the purchase price, or the cost
of construction or improvement, of any property to be used in the ordinary course of business by
the Company, the Issuer and the Restricted Subsidiaries; <I>provided</I>, <I>however</I>, that (a)&nbsp;the aggregate
principal amount of such Indebtedness shall not exceed such purchase price or cost and (b)&nbsp;such
Indebtedness shall be incurred no later than 90&nbsp;days after the acquisition of such property or
completion of such construction or improvement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Qualified Collateral Appraisal</B>&#148; has the meaning ascribed to it in Section&nbsp;4.07(d) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Qualified Stock</B>&#148; means Capital Stock of the Company other than Disqualified Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Real Estate Business</B>&#148; means homebuilding, housing construction, real estate development or
construction and the sale of homes and related real estate activities, including the provision of
mortgage financing or title insurance.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Record Date</B>&#148; for the interest payable on any Interest Payment Date means the April 1 or
October 1 (whether or not a Business Day) immediately preceding such Interest Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Refinancing Indebtedness</B>&#148; means Indebtedness (to the extent not Permitted Indebtedness) that
refunds, refinances or extends any Indebtedness of the Company, the Issuer or any Restricted
Subsidiary (to the extent not Permitted Indebtedness) outstanding on the Issue Date or other
Indebtedness (to the extent not Permitted Indebtedness) permitted to be incurred by the Company,
the Issuer or any Restricted Subsidiary pursuant to the terms of this Indenture, but only to the
extent that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;the Refinancing Indebtedness is subordinated, if at all, to the Notes or the Guarantees,
as the case may be, to the same extent as the Indebtedness being refunded, refinanced or extended
(<I>provided </I>that Refinancing Indebtedness issued to refund, refinance or extend Subordinated
Indebtedness outstanding as of the Issue Date (such Subordinated Indebtedness, excluding the
Outstanding Junior Secured Notes, &#147;<B>Existing Subordinated Debt</B>&#148;) need not be subordinated to the
Notes or the Guarantees, as the case may, so long as any Liens securing such Indebtedness are
junior to the Liens securing the Notes or the Guarantees, as the case may be),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;the Refinancing Indebtedness is scheduled to mature either (x)&nbsp;no earlier than the
Indebtedness being refunded, refinanced or extended or (y)&nbsp;after the maturity date of the Notes
(unless the Refinancing Indebtedness is in respect of (i)&nbsp;Existing Subordinated Debt and is secured
by Liens on the Collateral, in which case the Refinancing Indebtedness must be scheduled to mature
after the maturity date of the Notes or (ii)&nbsp;Outstanding Junior Secured Notes (which Refinancing
Indebtedness will be secured on a first-lien priority basis by Liens on the Collateral) in which
case the Refinancing Indebtedness must be scheduled to mature on or after the maturity date of the
Notes), <I>provided </I>that up to a total of $150.0&nbsp;million at any one time outstanding of Indebtedness
under Credit Facilities incurred pursuant to clause (b)&nbsp;under the definition of &#147;Permitted
Indebtedness,&#148; together with any Refinancing Indebtedness that refinances the First-Priority Lien
Obligations or Outstanding Junior Secured Notes (which Refinancing Indebtedness will be secured on
a first-lien priority basis by Liens on the Collateral) pursuant to Credit Facilities, may be
scheduled to mature on or prior to the maturity date of the Notes,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on or
prior to the maturity date of the Notes has a Weighted Average Life to Maturity at the time such
Refinancing Indebtedness is incurred that is equal to or greater than the Weighted Average Life to
Maturity of the portion of the Indebtedness being refunded, refinanced or extended that is
scheduled to mature on or prior to the maturity date of the Notes, and
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;such Refinancing Indebtedness is in an aggregate principal amount that is equal to or less
than the aggregate principal amount then outstanding under the Indebtedness being refunded,
refinanced or extended (plus all accrued interest thereon and the amount of any premiums (including
tender premiums) and expenses incurred in connection with the refinancing thereof).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Register</B>&#148; has the meaning ascribed to it in Section&nbsp;2.09 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Registrar</B>&#148; means a Person engaged to maintain the Register.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Registration Rights Agreement</B>&#148; means (i)&nbsp;with respect to the Initial Notes, the Registration
Rights Agreement dated the Issue Date among the Issuer, the Company, the other Guarantors party
thereto and the Initial Purchasers with respect to the Initial Notes, and (ii)&nbsp;with respect to any
Initial Additional Notes, any registration rights agreements among the Issuer, the Company, the
other Guarantors party thereto and any initial purchasers or dealer managers party thereto relating
to rights given by the Issuer to the purchasers of Initial Additional Notes to register such
Initial Additional Notes or exchange them for Exchange Notes registered under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Regulation&nbsp;S</B>&#148; means Regulation&nbsp;S under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Regulation&nbsp;S Certificate</B>&#148; means a certificate substantially in the form of Exhibit&nbsp;E hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Regulation&nbsp;S Global Note</B>&#148; means a Global Note representing Notes issued and sold pursuant to
Regulation&nbsp;S.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Regulation&nbsp;S Temporary Global Note</B>&#148; means an Regulation&nbsp;S Global Note that bears the
Regulation&nbsp;S Temporary Global Note Legend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Regulation&nbsp;S Temporary Global Note Legend</B>&#148; means the legend set forth in Exhibit&nbsp;I.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Repurchase Date</B>&#148; has the meaning ascribed to it in Section&nbsp;4.12(a) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Responsible Officer</B>,&#148; when used with respect to the Trustee, means any officer of the Trustee
with direct responsibility for the administration of the trust created by this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Restricted Investment</B>&#148; means any Investment other than a Permitted Investment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Restricted Legend</B>&#148; means the legend set forth in Exhibit&nbsp;C.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Restricted Payment</B>&#148; means any of the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;the declaration or payment of any dividend or any other distribution on Capital Stock of
the Company, the Issuer or any Restricted Subsidiary or any payment made to the direct or indirect
holders (in their capacities as such) of Capital Stock of the Company, the Issuer or any Restricted
Subsidiary (other than (i)&nbsp;dividends or distributions payable solely in Qualified Stock and (ii)&nbsp;in
the case of the Issuer or Restricted Subsidiaries, dividends or distributions payable to the
Company, the Issuer or a Restricted Subsidiary);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;the purchase, redemption or other acquisition or retirement for value of any Capital Stock
of the Company, the Issuer or any Restricted Subsidiary (other than a payment made to the Company,
the Issuer or any Restricted Subsidiary);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;any Investment (other than any Permitted Investment), including any Investment in an
Unrestricted Subsidiary (including by the designation of a Subsidiary of the Company as an
Unrestricted Subsidiary) and any amounts paid in accordance with clause (b)&nbsp;of the definition of
&#147;Indebtedness&#148;; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;the purchase, repurchase, redemption, acquisition or retirement for value, prior to the
date for any scheduled maturity, sinking fund or amortization or other principal installment
payment, of any Subordinated Indebtedness (other than (a)&nbsp;Indebtedness permitted under clause (d)
of the definition of &#147;Permitted Indebtedness&#148; or (b)&nbsp;the purchase, repurchase, redemption,
defeasance, or other acquisition or retirement of Subordinated Indebtedness purchased in
anticipation of satisfying a sinking fund obligation, amortization or principal installment or
final maturity, in each case due within one year of the date of purchase, repurchase, redemption,
defeasance or other acquisition or retirement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Restricted Period</B>&#148; means the relevant 40-day &#147;distribution compliance period&#148; as such term is
defined in Regulation&nbsp;S, which, for each relevant Note, commences on the date such Note is issued.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Restricted Subsidiary</B>&#148; means any Subsidiary of the Company which is not an Unrestricted
Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Rule&nbsp;144A</B>&#148; means Rule&nbsp;144A under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Rule&nbsp;144A Certificate</B>&#148; means a certificate substantially in the form of Exhibit&nbsp;F hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Rule&nbsp;144A Global Note</B>&#148; means a Global Note that bears the Restricted Legend representing
Notes issued, transferred or exchanged pursuant to Rule&nbsp;144A.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>S&#038;P</B>&#148; means Standard &#038; Poor&#146;s Ratings Services, a division of The McGraw Hill Companies, Inc.,
a New York corporation, or any successor to its debt rating business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Securities Act</B>&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Security Agreement</B>&#148; means the First Lien Security Agreement, dated as of October&nbsp;20, 2009,
among the Issuer, the Company and each of the signatories listed on Schedule&nbsp;A thereto, in favor of
the Collateral Agent for the benefit of itself, the Trustee and the Holders, as amended, restated
or supplemented from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Security Documents</B>&#148; means (i)&nbsp;the Intercreditor Agreements and (ii)&nbsp;the security documents
granting or perfecting a security interest in any property or assets of any Person to secure the
Indebtedness and related Obligations under the Notes and the Guarantees as each may be amended,
restated, supplemented or otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>self-liquidating paper</B>&#148; has the meaning ascribed to it in Section&nbsp;7.03 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Significant Subsidiary</B>&#148; means any Subsidiary of the Company which would constitute a
&#147;<B>significant subsidiary</B>&#148; as defined in Rule&nbsp;1-02(w)(1) or (2)&nbsp;of Regulation&nbsp;S-X under the
Securities Act and the Exchange Act as in effect on the Issue Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Subordinated Indebtedness</B>&#148; means Indebtedness subordinated in right of payment to the Notes
pursuant to a written agreement and includes any Indebtedness ranking equally in right of payment
to the Notes but unsecured or secured by the Collateral on a basis entirely junior to that of the
Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Subsidiary</B>&#148; of any Person means any corporation or other entity of which a majority of the
Capital Stock having ordinary voting power to elect a majority of the Board of Directors or other
persons performing similar functions is at the time directly or indirectly owned or controlled by
such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Successor</B>&#148; has the meaning ascribed to it in Section&nbsp;4.14 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Tender Offers</B>&#148; means the Issuer&#146;s cash tender offer for, and solicitation of consents from,
(i)&nbsp;the holders of its 111/2% Senior Secured Notes due 2013 and (ii)&nbsp;the holders of its 18% Senior
Secured Notes due 2017, in each case, pursuant to the Issuer&#146;s Offer to Purchase and Consent
Solicitation Statement dated September&nbsp;21, 2009, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Trustee</B>&#148; means the party named as such in the preamble of this Indenture until such time, if
any, a successor replaces such party in accordance
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">with the applicable provisions of this Indenture and thereafter means the successor serving
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Trust Indenture Act</B>&#148; or &#147;<B>TIA</B>&#148; means the Trust Indenture Act of 1939, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>&#147;U.S. Government Obligations&#148; </B>means non-callable, non-payable bonds, notes, bills or other
similar obligations issued or guaranteed by the United States government or any agency thereof the
full and timely payment of which are backed by the full faith and credit of the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Unrestricted Subsidiary</B>&#148; means any Subsidiary of the Company so designated by a resolution
adopted by the Board of Directors of the Company or a duly authorized committee thereof as provided
below; <I>provided</I>, that (a)&nbsp;the holders of Indebtedness thereof do not have direct or indirect
recourse against the Company, the Issuer or any Restricted Subsidiary, and neither the Company, the
Issuer nor any Restricted Subsidiary otherwise has liability for, any payment obligations in
respect of such Indebtedness (including any undertaking, agreement or instrument evidencing such
Indebtedness), except, in each case, to the extent that the amount thereof constitutes a Restricted
Payment permitted by this Indenture, in the case of Non-Recourse Indebtedness, to the extent such
recourse or liability is for the matters discussed in the last sentence of the definition of
&#147;Non-Recourse Indebtedness,&#148; or to the extent such Indebtedness is a guarantee by such Subsidiary
of Indebtedness of the Company, the Issuer or a Restricted Subsidiary and (b)&nbsp;no holder of any
Indebtedness of such Subsidiary shall have a right to declare a default on such Indebtedness or
cause the payment thereof to be accelerated or payable prior to its stated maturity as a result of
a default on any Indebtedness of the Company, the Issuer or any Restricted Subsidiary. As of the
Issue Date, the Unrestricted Subsidiaries will be the subsidiaries of the Company named in Exhibit
J hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Subject to the foregoing, the Board of Directors of the Company or a duly authorized committee
thereof may designate any Subsidiary in addition to those named above to be an Unrestricted
Subsidiary; <I>provided</I>, <I>however</I>, that (a)&nbsp;the net amount (the &#147;<B>Designation Amount</B>&#148;) then outstanding
of all previous Investments by the Company and the Restricted Subsidiaries in such Subsidiary will
be deemed to be a Restricted Payment at the time of such designation and will reduce the amount
available for Restricted Payments under Section&nbsp;4.07 hereof to the extent provided therein, (b)&nbsp;the
Company must be permitted under Section&nbsp;4.07 hereof to make the Restricted Payment deemed to have
been made pursuant to clause (a)&nbsp;of this paragraph, and (c)&nbsp;after giving effect to such
designation, no Default or Event of Default shall have occurred or be continuing. In accordance
with the foregoing, and not in limitation thereof, Investments made by any Person in any Subsidiary
of such Person prior to such Person&#146;s merger with the Company or any Restricted Subsidiary (but not
in contemplation or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">anticipation of such merger) shall not be counted as an Investment by the Company or such
Restricted Subsidiary if such Subsidiary of such Person is designated as an Unrestricted
Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Board of Directors of the Company or a duly authorized committee thereof may also
redesignate an Unrestricted Subsidiary to be a Restricted Subsidiary; <I>provided, however</I>, that (a)
the Indebtedness of such Unrestricted Subsidiary as of the date of such redesignation could then be
incurred under Section&nbsp;4.06 hereof and (b)&nbsp;immediately after giving effect to such redesignation
and the incurrence of any such additional Indebtedness, the Company and the Restricted Subsidiaries
could incur $1.00 of additional Indebtedness under Section&nbsp;4.06(a) hereof. Any such designation or
redesignation by the Board of Directors of the Company or a committee thereof will be evidenced to
the Trustee by the filing with the Trustee of a certified copy of the resolution of the Board of
Directors of the Company or a committee thereof giving effect to such designation or redesignation
and an Officers&#146; Certificate certifying that such designation or redesignation complied with the
foregoing conditions and setting forth the underlying calculations of such Officers&#146; Certificate.
The designation of any Person as an Unrestricted Subsidiary shall be deemed to include a
designation of all Subsidiaries of such Person as Unrestricted Subsidiaries; <I>provided</I>, <I>however</I>,
that the ownership of the general partnership interest (or a similar member&#146;s interest in a limited
liability company) by an Unrestricted Subsidiary shall not cause a Subsidiary of the Company of
which more than 95% of the equity interest is held by the Company or one or more Restricted
Subsidiaries to be deemed an Unrestricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Unentitled Land</B>&#148; means land owned by the Issuer or a Guarantor which has not been granted
preliminary approvals ((i) in New Jersey, as defined in the Municipal Land Use Law (N.J.S.A.
40:55D-1 et seq.) and (ii)&nbsp;for states other than New Jersey, a point in time equivalent thereto)
for residential development.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Weighted Average Life to Maturity</B>&#148; means, when applied to any Indebtedness or portion thereof
at any date, the number of years obtained by dividing (a)&nbsp;the sum of the products obtained by
multiplying (i)&nbsp;the amount of each then remaining installment, sinking fund, serial maturity or
other required payment of principal, including, without limitation, payment at final maturity, in
respect thereof, by (ii)&nbsp;the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment by (b)&nbsp;the sum of all such payments
described in clause (a)(i) of this definition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Wilmington Trust Company</B>&#148; means Wilmington Trust Company in its capacity as Mortgage Tax
Collateral Agent with respect to Liens granted on real property located in certain states
identified under the Intercreditor Agreements and any successor thereto.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>$</B>&#148; means U.S. dollars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;1.02. <I>Rules of Construction. </I>Unless the context otherwise requires or except as
otherwise expressly provided,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;&#147;herein,&#148; &#147;hereof&#148; and other words of similar import refer to this Indenture as a whole
and not to any particular Section, Article other subdivision;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;all references to Sections or Articles or Exhibits refer to Sections or Articles or
Exhibits of or to this Indenture unless otherwise indicated;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;references to agreements or instruments, or to statutes or regulations, are to such
agreements or instruments, or statutes or regulations, as amended from time to time (or to
successor statutes and regulations); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;in the event that a transaction meets the criteria of more than one category of permitted
transactions or listed exceptions, the Issuer may classify such transaction as it, in its sole
discretion, determines.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 2<BR>
<FONT style="font-variant: SMALL-CAPS">The Notes</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.01. <I>Form, Dating and Denominations; Legends. </I>(a)&nbsp;The Notes and the Trustee&#146;s
certificate of authentication will be substantially in the form attached as Exhibit&nbsp;A. The terms
and provisions contained in the form of the Note annexed as Exhibit&nbsp;A constitute and are hereby
expressly made a part of this Indenture. The Notes may have notations, legends or endorsements
required by this Indenture, law, rules of or agreements with national securities exchanges to which
the Issuer is subject, or usage. Each Note will be dated the date of its authentication. The
Notes will be issuable in denominations of $2,000 in principal amount and any multiple of $1,000 in
excess thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b) (i)&nbsp;Except as otherwise provided in clause (c)&nbsp;of this Section&nbsp;2.01, Section
2.09(b)(iv), Section&nbsp;2.10(b)(iii), Section&nbsp;2.10(b)(v), or Section&nbsp;2.10(c), each Initial
Note or Initial Additional Note will bear the Restricted Legend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Each Global Note, whether or not an Original Note or Additional Note, will bear
the DTC Legend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;Each Regulation&nbsp;S Temporary Global Note will bear the Regulation&nbsp;S Temporary
Global Note Legend.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;Initial Notes and Initial Additional Notes offered and sold (or issued in an
exchange transaction) in reliance on Regulation&nbsp;S will be issued as provided in Section
2.11(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;Initial Notes and Initial Additional Notes offered and sold (or issued in an
exchange transaction) in reliance on any exception under the Securities Act other than
Regulation&nbsp;S and Rule&nbsp;144A will be issued, and upon the request of the Issuer to the
Trustee, Initial Notes and Initial Additional Notes offered and sold (or issued in an
exchange transaction) in reliance on Rule&nbsp;144A may be issued, in the form of Certificated
Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;Exchange Notes will be issued, subject to Section&nbsp;2.09(b), in the form of one or
more Global Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;All Notes will bear the OID Legend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;(i)&nbsp;If the Issuer determines (upon the advice of counsel and after consideration of other
certifications and evidence as the Issuer may reasonably require) that a Note is eligible for
resale pursuant to Rule&nbsp;144 under the Securities Act (or a successor provision) without being
subject to any conditions as provided in such Rule and that the Restricted Legend is no longer
necessary or appropriate in order to ensure that subsequent transfers of the Note (or a beneficial
interest therein) are effected in compliance with the Securities Act, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;after an Initial Note or any Initial Additional Note is
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(A)&nbsp;sold pursuant to an effective registration statement under the
Securities Act, filed pursuant to a Registration Rights Agreement or otherwise,
or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;is validly tendered for an Exchange Note pursuant to an Exchange Offer
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">then, the Issuer may instruct the Trustee to cancel the Note and issue to the Holder thereof (or to
its transferee) a new Note of like tenor and amount, registered in the name of the Holder thereof
(or its transferee), that does not bear the Restricted Legend, and the Trustee will comply with
such instruction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;By its acceptance of any Note bearing the Restricted Legend (or any beneficial interest in
such a Note), each Holder thereof and each owner of a beneficial interest therein acknowledges the
restrictions on transfer of such Note (and any such beneficial interest) set forth in this
Indenture and in the Restricted Legend and agrees that it will transfer such Note (and any such
beneficial interest) only in accordance with this Indenture and such legend.
</DIV>
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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.02. <I>Execution and Authentication; Exchange Notes; Additional Notes. </I>(a)An Officer
shall execute the Notes for the Issuer by facsimile or manual signature in the name and on behalf
of the Issuer. If an Officer whose signature is on a Note no longer holds that office at the time
the Note is authenticated, the Note will still be valid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;A Note will not be valid until the Trustee manually signs the certificate of
authentication on the Note, with the signature conclusive evidence that the Note has been
authenticated under this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;At any time and from time to time after the execution and delivery of this Indenture, the
Issuer may deliver Notes executed by the Issuer to the Trustee for authentication. The Trustee
will authenticate and deliver:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;Initial Notes for original issue in the aggregate principal amount not to exceed
$785,000,000,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Additional Notes (other than Exchange Notes) from time to time for original
issue in the aggregate principal amounts specified by the Issuer, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;Exchange Notes from time to time for issue in exchange for a like principal
amount of Initial Notes or Initial Additional Notes
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">after the following conditions have been met:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(A)&nbsp;Receipt by the Trustee of a certificate, executed by an Officer
specifying
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(1)&nbsp;the amount of Notes to be authenticated and the date on which
the Notes are to be authenticated,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(2)&nbsp;whether the Notes are to be Initial Notes, Initial Additional
Notes or Exchange Notes,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(3)&nbsp;in the case of Initial Additional Notes, that the issuance of
such Notes does not contravene any provision of Article&nbsp;4,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(4)&nbsp;whether the Notes are to be issued as one or more Global
Notes or Certificated Notes, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(5)&nbsp;other information the Issuer may determine to include or the
Trustee may reasonably request.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;In the case of Initial Additional Notes, receipt by the Trustee of an
Opinion of Counsel confirming that the Holders of the outstanding Notes will be
subject to federal income tax in the same amounts, in the same manner and at the
same times as would have been the case if such Initial Additional Notes were not
issued.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;In the case of Exchange Notes, effectiveness of an Exchange Offer
Registration Statement and Consummation (as defined in the applicable
Registration Rights Agreement) of the exchange offer thereunder (and receipt by
the Trustee of an Officers&#146; Certificate to that effect). Initial Notes or
Initial Additional Notes exchanged for Exchange Notes will be cancelled by the
Trustee, who will dispose of them in accordance with its normal procedures or
the written instructions of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.03. <I>Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in
Trust. </I>(a)&nbsp;The Issuer may appoint one or more Registrars and one or more Paying Agents, and the
Trustee may appoint an Authenticating Agent, in which case each reference in this Indenture to the
Trustee in respect of the obligations of the Trustee to be performed by that Agent will be deemed
to be references to the Agent. The Issuer may act as Registrar or (except for purposes of Article
8) Paying Agent. In each case, the Issuer and the Trustee will enter into an appropriate agreement
with the Agent implementing the provisions of this Indenture relating to the obligations of the
Trustee to be performed by the Agent and the related rights.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Issuer will require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of the Holders or the Trustee all money held by
the Paying Agent for the payment of principal of, premium, if any, and interest and Additional
Interest, if any, on, the Notes and will promptly notify the Trustee of any default by the Issuer
in making any such payment. The Issuer at any time may require a Paying Agent to pay all money
held by it to the Trustee and account for any funds disbursed, and the Trustee may at any time
during the continuance of any payment default, upon written request to a Paying Agent, require the
Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed.
Upon doing so, the Paying Agent will have no further liability for the money so paid over to the
Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.04<I>. Replacement Notes. </I>If a mutilated Note is surrendered to the Trustee or if a
Holder claims that its Note has been lost, destroyed or wrongfully taken, the Issuer will issue and
the Trustee will authenticate a replacement Note of like tenor and principal amount and bearing a
number not contemporaneously outstanding. Every replacement Note is an additional
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">obligation of the Issuer and entitled to the benefits of this Indenture. If required by the
Trustee or the Issuer, an indemnity must be furnished that is sufficient in the judgment of both
the Trustee and the Issuer to protect the Issuer and the Trustee from any loss they may suffer if a
Note is replaced. The Issuer may charge the Holder for the expenses of the Issuer and the Trustee
in replacing a Note. In case the mutilated, lost, destroyed or wrongfully taken Note has become or
is about to become due and payable, the Issuer in its discretion may pay the Note instead of
issuing a replacement Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.05. <I>Outstanding Notes. </I>(a)&nbsp;Notes outstanding at any time are all Notes that have
been authenticated by the Trustee except for:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;Notes cancelled by the Trustee or delivered to it for cancellation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;any Note which has been replaced pursuant to Section&nbsp;2.04 unless and until the
Trustee and the Issuer receive proof satisfactory to them that the replaced Note is held
by a protected purchaser; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;on or after the maturity date or any redemption date or date for purchase of
the Notes pursuant to an Offer to Purchase, those Notes payable or to be redeemed or
purchased on that date for which the Trustee (or Paying Agent, other than the Issuer or an
Affiliate of the Issuer) holds money sufficient to pay all amounts then due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;A Note does not cease to be outstanding because the Issuer or one of its Affiliates holds
the Note; <I>provided</I>, that in determining whether the Holders of the requisite principal amount of
the outstanding Notes have given or taken any request, demand, authorization, direction, notice,
consent, waiver or other action hereunder, Notes owned by the Issuer or any Affiliate of the Issuer
will be disregarded and deemed not to be outstanding (it being understood that in determining
whether the Trustee is protected in relying upon any such request, demand, authorization,
direction, notice, consent, waiver or other action, only Notes which a Responsible Officer of the
Trustee knows to be so owned will be so disregarded). Notes so owned which have been pledged in
good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee&#146;s right so to act with respect to such Notes and that the pledgee is not the
Issuer or any Affiliate of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.06<I>. Temporary Notes. </I>Until definitive Notes are ready for delivery, the Issuer may
prepare and the Trustee will authenticate temporary Notes. Temporary Notes will be substantially
in the form of definitive Notes but may have insertions, substitutions, omissions and other
variations determined to be appropriate by the Officer executing the temporary Notes, as evidenced
by the execution of the temporary Notes. If temporary Notes are issued, the Issuer will
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">cause definitive Notes to be prepared without unreasonable delay. After the preparation of
definitive Notes, the temporary Notes will be exchangeable for definitive Notes upon surrender of
the temporary Notes at the office or agency of the Issuer designated for the purpose pursuant to
Section&nbsp;4.02 without charge to the Holder. Upon surrender for cancellation of any temporary Notes,
the Issuer will execute and the Trustee will authenticate and deliver in exchange therefor a like
principal amount of definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes will be entitled to the same benefits under this Indenture as definitive Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.07. <I>Cancellation. </I>The Issuer at any time may deliver to the Trustee for
cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have
acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes
previously authenticated hereunder which the Issuer has not issued and sold. Any Registrar or the
Paying Agent will forward to the Trustee any Notes surrendered to it for transfer, exchange or
payment. The Trustee will cancel all Notes surrendered for transfer, exchange, payment or
cancellation and dispose of them in accordance with its normal procedures or the written
instructions of the Issuer. The Issuer may not issue new Notes to replace Notes that it has paid
in full or delivered to the Trustee for cancellation, except for Exchange Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.08. <I>CUSIP and ISIN Numbers. </I>The Issuer in issuing the Notes may use &#147;CUSIP&#148; and
&#147;ISIN&#148; numbers, and the Trustee will use CUSIP numbers or ISIN numbers in notices of redemption or
exchange or in Offers to Purchase as a convenience to Holders, the notice to state that no
representation is made as to the correctness of such numbers either as printed on the Notes or as
contained in any notice of redemption or exchange or Offer to Purchase. The Issuer will promptly
notify the Trustee in writing of any change in the CUSIP or ISIN numbers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.09. <I>Registration, Transfer and Exchange. </I>(a)&nbsp;The Notes will be issued in
registered form only, without coupons, and the Issuer shall cause the Trustee to maintain a
register (the &#147;<B>Register</B>&#148;) of the Notes, for registering the record ownership of the Notes by the
Holders and transfers and exchanges of the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;(i)&nbsp;Each Global Note will be registered in the name of the Depositary or its nominee and,
so long as DTC is serving as the Depositary thereof, will bear the DTC Legend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Each Global Note will be delivered to the Trustee as custodian for the
Depositary. Transfers of a Global Note (but not a beneficial interest therein) will be
limited to transfers thereof in whole, but not in part, to the Depositary, its successors
or their respective nominees,
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">except (A)&nbsp;as set forth in Section&nbsp;2.09(b)(iv) and (B)&nbsp;transfers of portions thereof
in the form of Certificated Notes may be made upon request of an Agent Member (for itself
or on behalf of a beneficial owner) by 20&nbsp;days&#146; prior written notice given to the Trustee
by or on behalf of the Depositary in accordance with customary procedures of the
Depositary and in compliance with this Section and Section&nbsp;2.10.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;Agent Members will have no rights under this Indenture with respect to any
Global Note held on their behalf by the Depositary, and the Depositary may be treated by
the Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner
and Holder of such Global Note for all purposes whatsoever. Notwithstanding the
foregoing, the Depositary or its nominee may grant proxies and otherwise authorize any
Person (including any Agent Member and any Person that holds a beneficial interest in a
Global Note through an Agent Member) to take any action which a Holder is entitled to take
under this Indenture or the Notes, and nothing herein will impair, as between the
Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of a holder of any security.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;If (x)&nbsp;the Depositary (i)&nbsp;notifies the Issuer that it is unwilling or unable to
continue as Depositary for a Global Note and a successor depositary is not appointed by
the Issuer within 90&nbsp;days of the notice or (ii)&nbsp;has ceased to be a clearing agency
registered under the Exchange Act, (y)&nbsp;the Issuer, at its option, notifies the Trustee in
writing that it elects to cause the issuance of Certificated Notes or (z)&nbsp;a Default or an
Event of Default with respect to the Notes has occurred and is continuing, the Trustee
will promptly exchange each beneficial interest in the Global Note for one or more
Certificated Notes in authorized denominations having an equal aggregate principal amount
registered in the name of the owner of such beneficial interest, as identified to the
Trustee by the Depositary, and thereupon the Global Note will be deemed canceled. If such
Note does not bear the Restricted Legend, then the Certificated Notes issued in exchange
therefor will not bear the Restricted Legend. If such Note bears the Restricted Legend,
then the Certificated Notes issued in exchange therefor will bear the Restricted Legend;
<I>provided</I>, that any Holder of any such Certificated Note issued in exchange for a
beneficial interest in a Regulation&nbsp;S Temporary Global Note will have the right upon
presentation to the Trustee of a duly completed Certificate of Beneficial Ownership after
the Restricted Period to exchange such Certificated Note for a Certificated Note of like
tenor and amount that does not bear the Restricted Legend, registered in the name of such
Holder.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Each Certificated Note will be registered in the name of the holder thereof or its
nominee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;A Holder may transfer a Note (or a beneficial interest therein) to another Person or
exchange a Note (or a beneficial interest therein) for another Note or Notes of any authorized
denomination by presenting to the Trustee a written request therefor stating the name of the
proposed transferee or requesting such an exchange, accompanied by any certification, opinion or
other document required by Section&nbsp;2.10. The Trustee will promptly register any transfer or
exchange that meets the requirements of this Section and Section&nbsp;2.10 noting the same in the
register maintained by the Trustee for the purpose; <I>provided</I>, that
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;no transfer or exchange will be effective until it is registered in such
register, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;the Trustee will not be required (x)&nbsp;to issue, register the transfer of or
exchange any Note for a period of 15&nbsp;days before a selection of Notes to be redeemed or
purchased pursuant to an Offer to Purchase, (y)&nbsp;to register the transfer of or exchange
any Note so selected for redemption or purchase in whole or in part, except, in the case
of a partial redemption or purchase, that portion of any Note not being redeemed or
purchased, or (z)&nbsp;if a redemption or a purchase pursuant to an Offer to Purchase is to
occur after a Record Date but on or before the corresponding Interest Payment Date, to
register the transfer of or exchange any Note on or after the Record Date and before the
date of redemption or purchase. Prior to the registration of any transfer, the Issuer,
the Trustee and their agents will treat the Person in whose name the Note is registered as
the owner and Holder thereof for all purposes (whether or not the Note is overdue), and
will not be affected by notice to the contrary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">From time to time the Issuer will execute and the Trustee will authenticate additional Notes
as necessary in order to permit the registration of a transfer or exchange in accordance with this
Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">No service charge will be imposed in connection with any transfer or exchange of any Note, but
the Issuer or the Trustee may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than a transfer tax or other
similar governmental charge payable upon exchange pursuant to subsection (b)(iv)).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e) (i) <I>Global Note to Global Note</I>. If a beneficial interest in a Global Note is
transferred or exchanged for a beneficial interest in another Global Note, the Trustee
will (x)&nbsp;record a decrease in the principal amount of the Global Note being transferred or
exchanged equal to the principal
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">amount of such transfer or exchange and (y)&nbsp;record a like increase in the principal
amount of the other Global Note. Any beneficial interest in one Global Note that is
transferred to a Person who takes delivery in the form of an interest in another Global
Note, or exchanged for an interest in another Global Note, will, upon transfer or
exchange, cease to be an interest in such Global Note and become an interest in the other
Global Note and, accordingly, will thereafter be subject to all transfer and exchange
restrictions, if any, and other procedures applicable to beneficial interests in such
other Global Note for as long as it remains such an interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii) <I>Global Note to Certificated Note</I>. If a beneficial interest in a Global Note is
transferred or exchanged for a Certificated Note, the Trustee will (x)&nbsp;record a decrease
in the principal amount of such Global Note equal to the principal amount of such transfer
or exchange and (y)&nbsp;deliver one or more new Certificated Notes in authorized denominations
having an equal aggregate principal amount to the transferee (in the case of a transfer)
or the owner of such beneficial interest (in the case of an exchange), registered in the
name of such transferee or owner, as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii) <I>Certificated Note to Global Note</I>. If a Certificated Note is transferred or
exchanged for a beneficial interest in a Global Note, the Trustee will (x)&nbsp;cancel such
Certificated Note, (y)&nbsp;record an increase in the principal amount of such Global Note
equal to the principal amount of such transfer or exchange and (z)&nbsp;in the event that such
transfer or exchange involves less than the entire principal amount of the canceled
Certificated Note, deliver to the Holder thereof one or more new Certificated Notes in
authorized denominations having an aggregate principal amount equal to the untransferred
or unexchanged portion of the canceled Certificated Note, registered in the name of the
Holder thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv) <I>Certificated Note to Certificated Note</I>. If a Certificated Note is transferred
or exchanged for another Certificated Note, the Trustee will (x)&nbsp;cancel the Certificated
Note being transferred or exchanged, (y)&nbsp;deliver one or more new Certificated Notes in
authorized denominations having an aggregate principal amount equal to the principal
amount of such transfer or exchange to the transferee (in the case of a transfer) or the
Holder of the canceled Certificated Note (in the case of an exchange), registered in the
name of such transferee or Holder, as applicable, and (z)&nbsp;if such transfer or exchange
involves less than the entire principal amount of the canceled Certificated Note, deliver
to the Holder thereof one or more Certificated Notes in authorized denominations having an
aggregate principal amount equal to the untransferred or unexchanged portion of the
canceled Certificated Note, registered in the name of the Holder thereof.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.10. <I>Restrictions on Transfer and Exchange. </I>(a)&nbsp;The transfer or exchange of any
Note (or a beneficial interest therein) may only be made in accordance with this Section and
Section&nbsp;2.09 and, in the case of a Global Note (or a beneficial interest therein), the applicable
rules and procedures of the Depositary. The Trustee shall refuse to register any requested
transfer or exchange that does not comply with the preceding sentence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Subject to paragraph (c)&nbsp;of this Section, the transfer or exchange of any Note (or a
beneficial interest therein) of the type set forth in column A below for a Note (or a beneficial
interest therein) of the type set forth opposite in column B below may only be made in compliance
with the certification requirements (if any) described in the clause of this paragraph set forth
opposite in column C below.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>A</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>B</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>C</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rule&nbsp;144A Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule 144A Global Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="right">(i)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rule&nbsp;144A Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulation S Global Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(ii)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rule&nbsp;144A Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificated Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(iii)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Regulation&nbsp;S Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule 144A Global Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(iv)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Regulation&nbsp;S Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulation S Global Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD align="right">(i)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Regulation&nbsp;S Global Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificated Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">(v)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificated Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rule 144A Global Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(iv)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificated Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regulation S Global Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(ii)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificated Note</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificated Note</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" nowrap align="right">(iii)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;No certification is required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee a duly completed Regulation&nbsp;S Certificate; <I>provided</I>, that if the
requested transfer or exchange is made by the Holder of a Certificated Note that does not
bear the Restricted Legend, then no certification is required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee (x)&nbsp;a duly completed Rule&nbsp;144A Certificate, (y)&nbsp;a duly completed
Regulation&nbsp;S Certificate or (z)&nbsp;a duly completed Institutional Accredited Investor
Certificate, and/or an opinion of counsel and such other certifications and evidence as
the Issuer or the Trustee may reasonably require in order to determine that the proposed
transfer or exchange is being made in compliance with the Securities Act and any
applicable securities laws of any state of the United States; <I>provided</I>, that if the
requested transfer or exchange is made by the Holder of a Certificated Note that does not
bear the Restricted Legend, then no certification is required. In the event that a Rule
144A Global
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Note or a Certificated Note that does not bear the Restricted Legend is surrendered
for transfer or exchange, upon transfer or exchange the Trustee will deliver a
Certificated Note that does not bear the Restricted Legend.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;The Person requesting the transfer or exchange must deliver or cause to be
delivered to the Trustee a duly completed Rule&nbsp;144A Certificate and must comply with all
applicable securities laws of any state of the United States or any other jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;If the requested transfer involves a beneficial interest in a Regulation&nbsp;S
Temporary Global Note, the Person requesting the registration of transfer must deliver or
cause to be delivered to the Trustee (x)&nbsp;a duly completed Rule&nbsp;144A Certificate or (y)&nbsp;a
duly completed Institutional Accredited Investor Certificate and/or an opinion of counsel
and such other certifications and evidence as the Issuer or the Trustee may reasonably
require in order to determine that the proposed transfer is being made in compliance with
the Securities Act and any applicable securities laws of any state of the United States.
If the requested transfer or exchange involves a beneficial interest in a Permanent
Regulation&nbsp;S Global Note, no certification is required and the Trustee will deliver a
Certificated Note that does not bear the Restricted Legend. Notwithstanding anything to
the contrary contained herein, no such exchange is permitted if the requested exchange
involves a beneficial interest in a Regulation&nbsp;S Temporary Global Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;No certification is required in connection with any transfer or exchange of any Note (or a
beneficial interest therein)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;after such Note is eligible for resale pursuant to Rule&nbsp;144 under the Securities
Act (or a successor provision) without being subject to any conditions as provided in such
Rule; <I>provided</I>, that the Issuer has provided the Trustee with a certificate to that
effect, and the Issuer or the Trustee may require from any Person requesting a transfer or
exchange in reliance upon this clause (i)&nbsp;an opinion of counsel and any other reasonable
certifications and evidence in order to support such certificate; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii) (A)&nbsp;sold pursuant to an effective registration statement under the Securities
Act, filed pursuant to a Registration Rights Agreement or otherwise or (B)&nbsp;which is
validly tendered for exchange into an Exchange Note pursuant to an Exchange Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any Certificated Note delivered in reliance upon this paragraph will not bear the Restricted
Legend.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Trustee will retain copies of all certificates, opinions and other documents received
in connection with the registration of transfer or exchange of a Note (or a beneficial interest
therein), and the Issuer will have the right to inspect and make copies thereof at any reasonable
time upon written notice to the Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;2.11. <I>Regulation&nbsp;S Temporary Global Notes. </I>(a)&nbsp;Each Initial Note and Initial
Additional Note originally sold (or issued in an exchange transaction) in reliance upon Regulation
S will be evidenced by one or more Regulation&nbsp;S Global Notes that bear the Regulation&nbsp;S Temporary
Global Note Legend.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;An owner of a beneficial interest in a Regulation&nbsp;S Temporary Global Note (or a Person
acting on behalf of such an owner) may provide to the Trustee (and the Trustee will accept) a duly
completed Certificate of Beneficial Ownership at any time after the Restricted Period (it being
understood that the Trustee will not accept any such certificate during the Restricted Period).
Promptly after acceptance of a Certificate of Beneficial Ownership with respect to such a
beneficial interest, the Trustee will cause such beneficial interest to be exchanged for an
equivalent beneficial interest in a Permanent Regulation&nbsp;S Global Note, and will (x)&nbsp;permanently
reduce the principal amount of such Regulation&nbsp;S Temporary Global Note by the amount of such
beneficial interest and (y)&nbsp;increase the principal amount of such Permanent Regulation&nbsp;S Global
Note by the amount of such beneficial interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Notwithstanding anything to the contrary contained herein, beneficial interests in a
Regulation&nbsp;S Temporary Global Note may be held through the Depositary only through Euroclear or
Clearstream and their respective direct and indirect participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Notwithstanding paragraph (b), if after the Restricted Period any Initial Purchaser owns a
beneficial interest in a Regulation&nbsp;S Temporary Global Note, such Initial Purchaser may, upon
written request to the Trustee accompanied by a certification as to its status as an Initial
Purchaser, exchange such beneficial interest for an equivalent beneficial interest in a Permanent
Regulation&nbsp;S Global Note, and the Trustee will comply with such request and will (x)&nbsp;permanently
reduce the principal amount of such Regulation&nbsp;S Temporary Global Note by the amount of such
beneficial interest and (y)&nbsp;increase the principal amount of such Permanent Regulation&nbsp;S Global
Note by the amount of such beneficial interest.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 3<BR>
<FONT style="font-variant: SMALL-CAPS">Redemption; Offer to Purchase</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.01. <I>Optional Redemption. </I>At any time and from time to time on or after October&nbsp;15,
2012, the Issuer may redeem the Notes, in whole or in part, at a redemption price equal to the
percentage of principal amount set forth below plus accrued and unpaid interest and Additional
Interest thereon, if any, to the applicable redemption date.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">107.969</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">105.313</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">102.656</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2015 and thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.000</TD>
    <TD nowrap>%</TD>
</TR>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.02<I>. Redemption with Proceeds of Equity Offering. </I>At any time and from time to time
prior to October&nbsp;15, 2012, the Issuer may redeem Notes with the net cash proceeds received by the
Issuer from any Equity Offering at a redemption price equal to 110.625% of the principal amount
plus accrued and unpaid interest to the redemption date, in an aggregate principal amount for all
such redemptions not to exceed 35% of the original aggregate principal amount of the Notes
(including Additional Notes), <I>provided </I>that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;in each case the redemption takes place not later than 60&nbsp;days after the closing
of the related Equity Offering, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;not less than 65% of the original aggregate principal amount of the Notes
(including Additional Notes) remains outstanding immediately thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.03<I>. Sinking Fund; Mandatory Redemption. </I>There is no sinking fund for, or mandatory
redemption of, the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.04<I>. Method and Effect of Redemption. </I>(a)&nbsp;If the Issuer elects to redeem Notes, it
must notify the Trustee of the redemption date and the principal amount of Notes to be redeemed by
delivering an Officers&#146; Certificate at least 45&nbsp;days before the redemption date (unless a shorter
period is satisfactory to the Trustee). If fewer than all of the Notes are being redeemed, the
Officers&#146; Certificate must also specify a record date not less than 15&nbsp;days after the date of the
notice of redemption is given to the Trustee, and the Trustee will select the Notes to be redeemed
<I>pro rata</I>, or as nearly a <I>pro rata </I>basis as is practicable (subject to the procedures of DTC),
unless such method is otherwise prohibited, in which case, by lot or by any other method the
Trustee in its sole discretion deems fair and appropriate, in denominations of $2,000 principal
amount or any multiple of $1,000 in excess thereof. The Trustee will notify the Issuer promptly of
the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Notes or portions of Notes to be called for redemption. Notice of redemption must be sent by
the Issuer or, at the Issuer&#146;s request, by the Trustee in the name and at the expense of the Issuer
to Holders whose Notes are to be redeemed at least 30&nbsp;days but not more than 60&nbsp;days before the
redemption date. Notices of redemption may not be conditional.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The notice of redemption will identify the Notes to be redeemed and will include or state
the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;the redemption date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;the redemption price, including the portion thereof representing any accrued
interest or Additional Interest, if any;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;the place or places where Notes are to be surrendered for redemption (Notes
called for redemption must be so surrendered in order to collect the redemption price);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;that on the redemption date, the redemption price will become due and payable on
Notes called for redemption, and interest on Notes called for redemption will cease to
accrue on and after the redemption date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;that if any Note is redeemed in part, the portion of the principal amount thereof
to be redeemed, and that on and after the redemption date, upon surrender of such Note,
new Notes equal in principal amount to the unredeemed portion will be issued; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;if any Note contains a CUSIP or ISIN number, no representation is being made as
to the correctness of the CUSIP or ISIN number either as printed on the Notes or as
contained in the notice of redemption and that the Holder should rely only on the other
identification numbers printed on the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Once notice of redemption is sent to the Holders, Notes called for redemption become due
and payable at the redemption price on the redemption date, and upon surrender of the Notes called
for redemption, the Issuer shall redeem such Notes at the redemption price. Commencing on the
redemption date, Notes redeemed will cease to accrue interest. Upon surrender of any Note redeemed
in part, the Holder will receive a new Note equal in principal amount to the unredeemed portion of
the surrendered Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.05<I>. Offer to Purchase. </I>(a)&nbsp;An &#147;<B>Offer to Purchase</B>&#148; means an offer by the Issuer to
purchase Notes as required by this Indenture. An Offer to Purchase must be made by written offer
(the &#147;<B>offer</B>&#148;) sent to the Holders. The Issuer will notify the Trustee at least 15&nbsp;days (or such
shorter period as is
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">acceptable to the Trustee) prior to sending the offer to Holders of its obligation to make an
Offer to Purchase, and the offer will be sent by the Issuer or, at the Issuer&#146;s request, by the
Trustee in the name and at the expense of the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The offer must include or state the following as to the terms of the Offer to Purchase:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;the provision of this Indenture pursuant to which the Offer to Purchase is being
made;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;the aggregate principal amount of the outstanding Notes offered to be purchased
by the Issuer pursuant to the Offer to Purchase (including, if less than 100%, the manner
by which such amount has been determined pursuant to this Indenture) (the &#147;<B>purchase
amount</B>&#148;);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;the purchase price, including the portion thereof representing accrued interest
and Additional Interest, if any;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;an expiration date (the &#147;<B>expiration date</B>&#148;) not less than 30&nbsp;days or more than 60
days after the date of the offer, and a settlement date for purchase (the &#147;<B>purchase date</B>&#148;)
not more than five Business Days after the expiration date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;information concerning the business of the Company, the Issuer and its
Subsidiaries which the Issuer in good faith believes will enable the Holders to make an
informed decision with respect to the Offer to Purchase, at a minimum to include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(A)&nbsp;the most recent annual and quarterly financial statements and
&#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations&#148; for the Company,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;a description of material developments in the Company&#146;s business
subsequent to the date of the latest of the financial statements (including a
description of the events requiring the Issuer to make the Offer to Purchase),
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;if applicable, appropriate <I>pro forma </I>financial information concerning
the Offer to Purchase and the events requiring the Issuer to make the Offer to
Purchase;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;a Holder may tender all or any portion of its Notes, subject to the requirement
that any portion of a Note tendered must be in denominations of $2,000 principal amount
and any multiple of $1,000 in excess thereof;
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;the place or places where Notes are to be surrendered for tender pursuant to
the Offer to Purchase;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(viii)&nbsp;each Holder electing to tender a Note pursuant to the offer will be required
to surrender such Note at the place or places specified in the offer prior to the close of
business on the expiration date (such Note being, if the Issuer or the Trustee so
requires, duly endorsed or accompanied by a duly executed written instrument of transfer);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ix)&nbsp;interest on any Note not tendered, or tendered but not purchased by the Issuer
pursuant to the Offer to Purchase, will continue to accrue;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(x)&nbsp;on the purchase date the purchase price will become due and payable on each Note
accepted for purchase, and interest on Notes purchased will cease to accrue on and after
the purchase date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xi)&nbsp;Holders are entitled to withdraw Notes tendered by giving notice, which must be
received by the Issuer or the Trustee not later than the close of business on the
expiration date, setting forth the name of the Holder, the principal amount of the
tendered Notes, the certificate number of the tendered Notes and a statement that the
Holder is withdrawing all or a portion of the tender;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xii) (A)&nbsp;if Notes in an aggregate principal amount less than or equal to the
purchase amount are duly tendered and not withdrawn pursuant to the Offer to Purchase, the
Issuer will purchase all such Notes, and (B)&nbsp;if the Offer to Purchase is for less than all
of the outstanding Notes and Notes in an aggregate principal amount in excess of the
purchase amount are tendered and not withdrawn pursuant to the offer, the Issuer will
purchase Notes having an aggregate principal amount equal to the purchase amount on a <I>pro
rata </I>basis, with adjustments so that only Notes in denominations of $2,000 principal
amount and any multiples of $1,000 in excess thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xiii)&nbsp;if any Note is purchased in part, new Notes equal in principal amount to the
unpurchased portion of the Note will be issued; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xiv)&nbsp;if any Note contains a CUSIP or ISIN number, no representation is being made as
to the correctness of the CUSIP or ISIN number either as printed on the Notes or as
contained in the offer and that the Holder should rely only on the other identification
numbers printed on the Notes.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Prior to the purchase date, the Issuer will accept tendered Notes for purchase as required
by the Offer to Purchase and deliver to the Trustee all Notes so accepted together with an
Officers&#146; Certificate specifying which Notes have been accepted for purchase. On the purchase
date, the purchase price will become due and payable on each Note accepted for purchase, and
interest on Notes purchased will cease to accrue on and after the purchase date. The Trustee will
promptly return to Holders any Notes not accepted for purchase and send to Holders new Notes equal
in principal amount to any unpurchased portion of any Notes accepted for purchase in part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Issuer will comply with Rule&nbsp;14e-1 under the Exchange Act and all other applicable
laws in making any Offer to Purchase, and the above procedures will be deemed modified as necessary
to permit such compliance.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 4<BR>
<FONT style="font-variant: SMALL-CAPS">Covenants</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.01. <I>Payment of Notes. </I>(a)&nbsp;The Issuer agrees to pay the principal of, premium, if
any, and interest and Additional Interest, if any, on the Notes on the dates and in the manner
provided in the Notes and this Indenture. The Issuer shall pay Additional Interest, if any, in the
amounts set forth in the applicable Registration Rights Agreement. Not later than 9:00 A.M. (New
York City time) on the due date of any principal of, premium, if any, or interest and Additional
Interest, if any, on, any Notes, or any redemption or purchase price of the Notes, the Issuer will
deposit with the Trustee (or Paying Agent) money in immediately available funds sufficient to pay
such amounts; <I>provided</I>, that if the Issuer or any Affiliate of the Issuer is acting as Paying
Agent, it will, on or before each due date, segregate and hold in a separate trust fund for the
benefit of the Holders a sum of money sufficient to pay such amounts until paid to such Holders or
otherwise disposed of as provided in this Indenture. In each case, the Issuer will promptly notify
the Trustee of its compliance with this paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;An installment of principal, premium, if any, or interest and Additional Interest, if any,
will be considered paid on the date due if the Trustee (or Paying Agent, other than the Issuer or
any Affiliate of the Issuer) holds on that date money designated for and sufficient to pay the
installment. If the Issuer or any Affiliate of the Issuer acts as Paying Agent, an installment of
principal, premium, if any, or interest and Additional Interest, if any, will be considered paid on
the due date only if paid to the Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Issuer agrees to pay interest on overdue principal, and, to the extent lawful, overdue
installments of interest and Additional Interest, if any, at the rate per annum specified in the
Notes.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Payments in respect of the Notes represented by the Global Notes are to be made by wire
transfer of immediately available funds to the accounts specified by the Holders of the Global
Notes. With respect to Certificated Notes, the Issuer will make all payments by wire transfer of
immediately available funds to the accounts specified by the Holders thereof or, if no such account
is specified, by mailing a check to each Holder&#146;s registered address.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.02. <I>Maintenance of Office or Agency. </I>The Company and the Issuer will maintain an
office or agency where Notes may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon the Company and the Issuer in
respect of the Notes and this Indenture may be served. The Issuer and the Company hereby initially
designate the Corporate Trust Office of the Trustee as such office of the Issuer and the Company.
The Issuer will give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Issuer and the Company fail to maintain any
such required office or agency or fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served to the Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Issuer may also from time to time designate one or more other offices or agencies where
the Notes may be surrendered or presented for any of such purposes and may from time to time
rescind such designations. The Issuer will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other office or agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.03. <I>Existence. </I>The Company and the Issuer will each do or cause to be done all
things necessary to preserve and keep in full force and effect their existence and the existence of
each of the Restricted Subsidiaries in accordance with their respective organizational documents,
and the material rights, licenses and franchises of the Company, the Issuer and each Restricted
Subsidiary; <I>provided</I>, that the Company and the Issuer are not required to preserve any such right,
license or franchise, or the existence of any Restricted Subsidiary, if the maintenance or
preservation thereof is no longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries taken as a whole; and <I>provided</I>, <I>further</I>, that this Section not prohibit any
transaction otherwise permitted by Section&nbsp;4.10 or Section&nbsp;4.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.04. <I>Payment of Taxes and Other Claims. </I>The Company will pay or discharge, and
cause each of its Subsidiaries to pay or discharge before the same become delinquent (a)&nbsp;all
material taxes, assessments and governmental charges levied or imposed upon the Company or any
Subsidiary or its income or profits or property, and (b)&nbsp;all material lawful claims for labor,
materials and supplies that, if unpaid, might by law become a Lien upon the property of the Company
or any Subsidiary, other than any such tax, assessment, charge or claim
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the amount, applicability or validity of which is being contested in good faith by appropriate
proceedings and for which adequate reserves have been established.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.05. <I>Maintenance of Properties and Insurance. </I>(a)&nbsp;The Company will cause all
properties used or useful in the conduct of its business or the business of any of its Restricted
Subsidiaries to be maintained and kept in good condition, repair and working order as in the
judgment of the Company may be necessary so that the business of the Company and its Restricted
Subsidiaries may be properly and advantageously conducted at all times; <I>provided</I>, that nothing in
this Section prevents the Company or any Restricted Subsidiary from discontinuing the use,
operation or maintenance of any of such properties or disposing of any of them, if such
discontinuance or disposal is, in the judgment of the Company, desirable in the conduct of the
business of the Company and its Restricted Subsidiaries taken as a whole.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Company will provide or cause to be provided, for itself and its Restricted
Subsidiaries, insurance (including appropriate self-insurance) against loss or damage of the kinds
customarily insured against by corporations similarly situated and owning like properties,
including, but not limited to, products liability insurance and public liability insurance, with
reputable insurers, in such amounts, with such deductibles and by such methods as are customary for
corporations similarly situated in the industry in which the Company and its Restricted
Subsidiaries are then conducting business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.06. <I>Limitations on Indebtedness</I>. (a)&nbsp;The Company and the Issuer will not, and
will not cause or permit any Restricted Subsidiary, directly or indirectly, to create, incur,
assume, become liable for or guarantee the payment of (collectively, an &#147;<B>incurrence</B>&#148;) any
Indebtedness (including Acquired Indebtedness) unless, after giving effect thereto and the
application of the proceeds therefrom, the Consolidated Fixed Charge Coverage Ratio on the date
thereof would be at least 2.0 to 1.0.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Notwithstanding the foregoing, the provisions of this Indenture will not prevent the
incurrence of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;Permitted Indebtedness,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Refinancing Indebtedness,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;Non-Recourse Indebtedness,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;any Guarantee of Indebtedness represented by the Notes,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;any guarantee of Indebtedness incurred under Credit Facilities in compliance with
this Indenture, and
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;any guarantee by the Issuer, the Company or any Guarantor of Indebtedness that
is permitted to be incurred in compliance with this Indenture; <I>provided </I>that in the event
such Indebtedness that is being guaranteed is subordinated to the Notes or a Guarantee, as
the case may be, then the related guarantee shall be subordinated in right of payment to
the Notes or such Guarantee, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;For purposes of determining compliance with this covenant, in the event that an item of
Indebtedness may be incurred through the first paragraph of this covenant or by meeting the
criteria of one or more of the types of Indebtedness described in the second paragraph of this
covenant (or the definitions of the terms used therein), the Company, in its sole discretion,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;may classify such item of Indebtedness under and comply with either of such
paragraphs (or any of such definitions), as applicable,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;may classify and divide such item of Indebtedness into more than one of such
paragraphs (or definitions), as applicable, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;may elect to comply with such paragraphs (or definitions), as applicable, in
any order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Company and the Issuer will not, and will not cause or permit any Guarantor to,
directly or indirectly, in any event incur any Indebtedness that purports to be by its terms (or by
the terms of any agreement governing such Indebtedness) subordinated to any other Indebtedness of
the Company or of such Guarantor, as the case may be, unless such Indebtedness is also by its terms
(or by the terms of any agreement governing such Indebtedness) made expressly subordinated to the
Notes or the Guarantee of such Guarantor, as the case may be, to the same extent and in the same
manner as such Indebtedness is subordinated to such other Indebtedness of the Company or such
Guarantor, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.07. <I>Limitations on Restricted Payments. </I>(a)&nbsp;The Company and the Issuer will not,
and will not cause or permit any Restricted Subsidiary to, directly or indirectly, make any
Restricted Payment unless:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;no Default or Event of Default shall have occurred and be continuing at the time
of or immediately after giving effect to such Restricted Payment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;immediately after giving effect to such Restricted Payment, the Company could
incur at least $1.00 of Indebtedness pursuant to Section&nbsp;4.06(a) hereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;immediately after giving effect to such Restricted Payment, the aggregate
amount of all Restricted Payments (including the Fair
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Market Value of any non-cash Restricted Payment) declared or made on or after the
Issue Date does not exceed the sum of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(A)&nbsp;50% of the Consolidated Net Income of the Company on a cumulative basis
during the period (taken as one accounting period) from and including the Issue
Date and ending on the last day of the Company&#146;s fiscal quarter immediately
preceding the date of such Restricted Payment (or in the event such Consolidated
Net Income shall be a deficit, minus 100% of such deficit), <I>plus</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;100% of the aggregate net cash proceeds of and the Fair Market Value of
Property received by the Company from (1)&nbsp;any capital contribution to the
Company after the Issue Date or any issue or sale after the Issue Date of
Qualified Stock (other than (x)&nbsp;to any Subsidiary of the Company or (y)&nbsp;any
Excluded Contribution) and (2)&nbsp;the issue or sale after the Issue Date of any
Indebtedness or other securities of the Company convertible into or exercisable
for Qualified Stock of the Company that have been so converted or exercised, as
the case may be, <I>plus</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;in the case of the disposition or repayment of any Investment
constituting a Restricted Payment (or if the Investment was made prior to the
Issue Date, that would have constituted a Restricted Payment if made after the
Issue Date, if such disposition or repayment results in cash received by the
Company, the Issuer or any Restricted Subsidiary), an amount (to the extent not
included in the calculation of Consolidated Net Income referred to in (A)) equal
to the lesser of (x)&nbsp;the return of capital with respect to such Investment
(including by dividend, distribution or sale of Capital Stock) and (y)&nbsp;the
amount of such Investment that was treated (or would have been treated when
made) as a Restricted Payment, in either case, less the cost of the disposition
or repayment of such Investment (to the extent not included in the calculation
of Consolidated Net Income referred to in (A)), <I>plus</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(D)&nbsp;with respect to any Unrestricted Subsidiary that is redesignated as a
Restricted Subsidiary after the Issue Date, in accordance with the definition of
&#147;Unrestricted Subsidiary&#148; (so long as the designation of such Subsidiary as an
Unrestricted Subsidiary was treated as a Restricted Payment made after the Issue
Date, and only to the extent not included in the calculation of Consolidated Net
Income referred to in (A)), an amount equal to the lesser of (x)&nbsp;the
proportionate interest of the Company or a
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Restricted Subsidiary in an amount equal to the excess of (I)&nbsp;the total
assets of such Subsidiary, valued on an aggregate basis at the lesser of book
value and Fair Market Value thereof, over (II)&nbsp;the total liabilities of such
Subsidiary, determined in accordance with GAAP, and (y)&nbsp;the Designation Amount
at the time of such Subsidiary&#146;s designation as an Unrestricted Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;Clauses (ii)&nbsp;and (iii)&nbsp;of Section&nbsp;4.07(a) will not prohibit:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;the payment of any dividend within 60&nbsp;days of its declaration if such dividend
could have been made on the date of its declaration without violation of the provisions of
this Indenture;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;the purchase, repayment, repurchase, redemption, defeasance or other acquisition
or retirement for value of any Subordinated Indebtedness of the Issuer, the Company or any
Restricted Subsidiary or shares of Capital Stock of the Company in exchange for, or out of
the net proceeds of the substantially concurrent sale (other than to a Subsidiary of the
Company or constituting an Excluded Contribution) of, shares of Qualified Stock;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii) (A)&nbsp;the purchase, repayment, redemption, repurchase, defeasance or other
acquisition or retirement for value of Subordinated Indebtedness of the Issuer, the
Company or any Restricted Subsidiary in exchange for, or out of proceeds of, Refinancing
Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;the purchase, repayment, redemption, repurchase, defeasance or other
acquisition or retirement for value of Subordinated Indebtedness of the Issuer,
the Company or any Restricted Subsidiary or the making of Restricted Investments
in joint ventures:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(1)&nbsp;in an aggregate amount not to exceed $50.0&nbsp;million (after
giving effect to all subsequent reductions in the amount of any
Restricted Investment in a joint venture made pursuant to this clause
(B)(1) as a result of the repayment or disposition thereof for cash,
not to exceed the amount of such Restricted Investment previously made
pursuant to this clause (B)(1)); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%; text-indent: 4%">(2)&nbsp;in an aggregate amount made under this clause (B)(2) not to
exceed Excluded Contributions (after giving effect to all subsequent
reductions in the amount of any Restricted Investment in a joint
venture made pursuant to this clause (B)(2) as a result of the
repayment or disposition thereof for cash, not to exceed the amount
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">of such Restricted Investment previously made pursuant to this
clause (B)(2)); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;the purchase, repayment, redemption, repurchase, defeasance or other
acquisition or retirement for value of Subordinated Indebtedness of the Issuer,
the Company or any Restricted Subsidiary or the making of Restricted Investments
in joint ventures (after giving effect to all subsequent reductions in the
amount of any Restricted Investment in a joint venture made pursuant to this
clause (C)&nbsp;as a result of the repayment or disposition thereof for cash, not to
exceed the amount of such Restricted Investment previously made pursuant to this
clause (C)), in an aggregate amount not to exceed $150.0&nbsp;million less the
aggregate amount of Restricted Payments previously made under clause (iii)(B)(1)
of this Section&nbsp;4.07(b); <I>provided </I>that, on a pro forma basis after giving effect
to any such Restricted Payment, the aggregate fair market value of the
Collateral (as determined in good faith by the Company&#146;s chief financial
officer) is equal to at least 200% of the aggregate principal amount of
Collateralized Debt (such ratio as calculated, the &#147;<B>Collateral Ratio</B>&#148;) as of
such date (or, in the case of a Restricted Investment in a joint venture, on the
date the Company determines to make such Investment, so long as the Investment
is completed within 120&nbsp;days of such determination date), such fair market value
to be determined, with respect to real property Collateral, by reference to (x)
the most recent Qualified Collateral Appraisal, as adjusted by the Company&#146;s
chief financial officer in good faith to reflect changes since the date of such
appraisal or (y)&nbsp;following receipt of a Qualified Collateral Appraisal
establishing a Collateral Ratio of at least 300%, book value pursuant to GAAP;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;the payment of dividends on Preferred Stock and Disqualified Stock up to an
aggregate amount of $10&nbsp;million in any fiscal year; <I>provided </I>that immediately after giving
effect to any declaration of such dividend, the Company could incur at least $1.00 of
Indebtedness pursuant to Section&nbsp;4.06(a);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;the purchase, redemption or other acquisition, cancellation or retirement for
value of Capital Stock, or options, warrants, equity appreciation rights or other rights
to purchase or acquire Capital Stock, of the Company or any Subsidiary held by officers or
employees or former officers or employees of the Company or any Subsidiary (or their
estates or beneficiaries under their estates) not to exceed $10&nbsp;million in the aggregate
since the Issue Date; and
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;the purchase, repayment, redemption, repurchase, defeasance or other acquisition
or retirement for value of Subordinated Indebtedness of the Issuer, the Company or any
Restricted Subsidiary from time to time with the proceeds of the offering of the Notes as
described in the Issuer&#146;s Confidential Offering Circular dated October&nbsp;5, 2009 under &#147;Use
of Proceeds;&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>provided</I>, <I>however</I>, that each Restricted Payment described in clauses (i)&nbsp;and (ii)&nbsp;of this Section
4.07(b) shall be taken into account for purposes of computing the aggregate amount of all
Restricted Payments pursuant to clause (iii)&nbsp;of Section&nbsp;4.07(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;For purposes of determining the aggregate and permitted amounts of Restricted Payments
made, the amount of any guarantee of any Investment in any Person that was initially treated as a
Restricted Payment and which was subsequently terminated or expired, net of any amounts paid by the
Company or any Restricted Subsidiary in respect of such guarantee, shall be deducted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;In determining the &#147;Fair Market Value of Property&#148; for purposes of clause (iii)&nbsp;of Section
4.07(a), Property other than cash, Cash Equivalents and Marketable Securities shall be deemed to be
equal in value to the &#147;equity value&#148; of the Capital Stock or other securities issued in exchange
therefor. The equity value of such Capital Stock or other securities shall be equal to (i)&nbsp;the
number of shares of Common Equity issued in the transaction (or issuable upon conversion or
exercise of the Capital Stock or other securities issued in the transaction) multiplied by the
closing sale price of the Common Equity on its principal market on the date of the transaction
(less, in the case of Capital Stock or other securities which require the payment of consideration
at the time of conversion or exercise, the aggregate consideration payable thereupon) or (ii)&nbsp;if
the Common Equity is not then traded on the New York Stock Exchange, American Stock Exchange or
Nasdaq Stock Market, or if the Capital Stock or other securities issued in the transaction do not
consist of Common Equity (or Capital Stock or other securities convertible into or exercisable for
Common Equity), the value (if more than $10&nbsp;million) of such Capital Stock or other securities as
determined by a nationally recognized investment banking firm retained by the Board of Directors of
the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Solely for the purpose of making Restricted Payments under clause (iii)(C) of Section&nbsp;4.07(b),
the Company shall seek appraisals of any real property Collateral from an independent appraiser at
least once every eighteen months with respect to any one item of real property Collateral. Such
appraisal is referred to as a &#147;<B>Qualified Collateral Appraisal</B>&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any restricted payments (without giving effect to the change in the definition of restricted
payment pursuant to the Third Supplemental Indenture,
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">dated as of October&nbsp;6, 2009, among the Issuer, the Company, the other guarantors party thereto
and Wilmington Trust Company (as successor to Deutsche Bank National Trust Company), as trustee)
that were made on or after May&nbsp;27, 2008 and prior to the Issue Date under the provisions of the
Indenture dated as of May&nbsp;27, 2008, among the Issuer, the Company, each of the guarantors party
thereto and Wilmington Trust Company (as successor to Deutsche Bank Trust Company), as trustee,
that are substantially identical to paragraph (iii)(B)(2) of Section&nbsp;4.07(b) shall be treated as
Restricted Payments made under paragraph (iii)(B)(2) of Section&nbsp;4.07(b) under this Indenture (and
subsequent reductions in any Restricted Investments made with such restricted payments shall be
given effect as well).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.08. <I>Limitations on Liens. </I>The Company and the Issuer will not, and will not cause
or permit any Restricted Subsidiary to, create, incur, assume or suffer to exist any Liens, other
than Permitted Liens, on any of its Property, or on any shares of Capital Stock or Indebtedness of
any Restricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.09<I>. Limitations on Restrictions Affecting Restricted Subsidiaries. </I>The Company and
the Issuer will not, and will not cause or permit any Restricted Subsidiary to, create, assume or
otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction
(other than encumbrances or restrictions imposed by law or by judicial or regulatory action or by
provisions of agreements that restrict the assignability thereof) on the ability of any Restricted
Subsidiary to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;pay dividends or make any other distributions on its Capital Stock or any other interest
or participation in, or measured by, its profits, owned by the Company or any other Restricted
Subsidiary, or pay interest on or principal of any Indebtedness owed to the Company or any other
Restricted Subsidiary,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;make loans or advances to the Company or any other Restricted Subsidiary, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;transfer any of its property or assets to the Company or any other Restricted Subsidiary,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">except for:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;encumbrances or restrictions existing under or by reason of applicable law,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;contractual encumbrances or restrictions in effect at or entered into on the
Issue Date and any amendments, modifications, restatements, renewals, supplements,
refundings, replacements or refinancings thereof; <I>provided</I>, that such amendments,
modifications, restatements, renewals, supplements, refundings, replacements or
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">refinancings are no more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in such contractual encumbrances or
restrictions, as in effect at or entered into on the Issue Date,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;any restrictions or encumbrances arising under Acquired Indebtedness; <I>provided</I>,
that such encumbrance or restriction applies only to either the assets that were subject
to the restriction or encumbrance at the time of the acquisition or the obligor on such
Indebtedness and its Subsidiaries prior to such acquisition,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;any restrictions or encumbrances arising in connection with Refinancing
Indebtedness; <I>provided</I>, <I>however</I>, that any restrictions and encumbrances of the type
described in this clause (iv)&nbsp;that arise under such Refinancing Indebtedness shall not be
materially more restrictive or apply to additional assets than those under the agreement
creating or evidencing the Indebtedness being refunded, refinanced, replaced or extended,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;any Permitted Lien, or any other agreement restricting the sale or other
disposition of property, securing Indebtedness permitted by this Indenture if such
Permitted Lien or agreement does not expressly restrict the ability of a Subsidiary of the
Company to pay dividends or make or repay loans or advances prior to default thereunder,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;reasonable and customary borrowing base covenants set forth in agreements
evidencing Indebtedness otherwise permitted by this Indenture,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;customary non-assignment provisions in leases, licenses, encumbrances,
contracts or similar assets entered into or acquired in the ordinary course of business,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(viii)&nbsp;any restriction with respect to a Restricted Subsidiary imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all of the
Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or
disposition,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ix)&nbsp;encumbrances or restrictions existing under or by reason of this Indenture, the
Notes or the Guarantees,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(x)&nbsp;purchase money obligations that impose restrictions on the property so acquired
of the nature described in clause (c)&nbsp;of this Section&nbsp;4.09,
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xi)&nbsp;Liens permitted under this Indenture securing Indebtedness that limit the right
of the debtor to dispose of the assets subject to such Lien,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xii)&nbsp;provisions with respect to the disposition or distribution of assets or
property in joint venture agreements, assets sale agreements, stock sale agreements and
other similar agreements,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xiii)&nbsp;customary provisions of any franchise, distribution or similar agreements,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xiv)&nbsp;restrictions on cash or other deposits or net worth imposed by contracts
entered into in the ordinary course of business, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(xv)&nbsp;any encumbrance or restrictions of the type referred to in clauses (a), (b)&nbsp;or
(c)&nbsp;of this Section&nbsp;4.09 imposed by any amendments, modifications, restatements, renewals,
supplements, refundings, replacements or refinancings of the contracts, instruments or
obligations referred to in clauses (i)&nbsp;through (xiv)&nbsp;of this Section&nbsp;4.09; <I>provided</I>, that
such amendments, modifications, restatements, renewals, supplements, refundings,
replacements or refinancings are, in the good faith judgment of the Company&#146;s Board of
Directors, no more restrictive with respect to such dividend and other payment
restrictions than those contained in the dividend or other payment restrictions prior to
such amendment, modification, restatement, renewal, supplement, refunding, replacement or
refinancing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.10<I>. Limitations on Dispositions of Assets. </I>(a)&nbsp;The Company and the Issuer will
not, and will not cause or permit any Restricted Subsidiary to, make any Asset Disposition unless:
(x)&nbsp;the Company (or such Restricted Subsidiary, as the case may be) receives consideration at the
time of such Asset Disposition at least equal to the Fair Market Value thereof, and (y)&nbsp;not less
than 70% of the consideration received by the Company (or such Restricted Subsidiary, as the case
may be) is in the form of cash, Cash Equivalents and Marketable Securities (which must be pledged
as Collateral if the assets disposed of constituted Collateral).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The amount of (i)&nbsp;any Indebtedness (other than any Subordinated Indebtedness) of the
Company or any Restricted Subsidiary that is actually assumed by the transferee in such Asset
Disposition and (ii)&nbsp;the fair market value (as determined in good faith by the Board of Directors
of the Company) of any property or assets (including Capital Stock of any Person that will be a
Restricted Subsidiary following receipt thereof) received that are used or useful in a Real Estate
Business (<I>provided </I>that (except as permitted by clause (c)&nbsp;under the definition of &#147;Permitted
Investment&#148;) to the extent that the assets disposed of in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">such Asset Disposition were Collateral, such property or assets are pledged as Collateral
under the Security Documents substantially simultaneously with such sale, with the Lien on such
Collateral securing the Notes being of the same priority with respect to the Notes as the Lien on
the assets disposed of), shall be deemed to be consideration required by clause (y)&nbsp;of Section
4.10(a) for purposes of determining the percentage of such consideration received by the Company or
the Restricted Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Net Cash Proceeds of an Asset Disposition shall, within one year, at the Company&#146;s
election, (1)&nbsp;be used by the Company or a Restricted Subsidiary to invest in assets (including
Capital Stock of any Person that is or will be a Restricted Subsidiary following investment
therein) used or useful in the business of the construction and sale of homes conducted by the
Company and the Restricted Subsidiaries (<I>provided </I>that (except as permitted by clause (c)&nbsp;under the
definition of &#147;Permitted Investment&#148; to the extent that the assets disposed of in such Asset
Disposition were Collateral, such assets are pledged as Collateral under the Security Documents
with the Lien on such Collateral securing the Notes being of the same priority with respect to the
Notes as the Lien on the assets disposed of), (2)&nbsp;be used to permanently prepay or permanently
repay any (i)&nbsp;Indebtedness which had been secured by the assets sold in the relevant Asset
Disposition, to the extent the assets sold were not Collateral or (ii)&nbsp;Indebtedness of a Restricted
Subsidiary that is not a Guarantor, to the extent the assets sold were not Collateral, or (3)&nbsp;be
applied to make an Offer to Purchase Notes and, if the Company or a Restricted Subsidiary elects or
is required to do so, to repay, purchase or redeem any other First-Priority Lien Obligations (or
cash collateralize letters of credit that constitute First-Priority Lien Obligations incurred in
connection with a Credit Facility) and, if the Company or a Restricted Subsidiary elects or is
required to do so and the assets disposed of were not Collateral, repay, purchase or redeem any
unsubordinated Indebtedness (on a <I>pro rata </I>basis if the amount available for such repayment,
purchase, redemption or cash collateralization is less than the aggregate amount of (x)&nbsp;the
principal amount of the Notes tendered in such Offer to Purchase, (y)&nbsp;the lesser of the principal
amount, or accreted value, of such other First-Priority Lien Obligations tendered or to be repaid,
redeemed, repurchased or cash collateralized and (z)&nbsp;the lesser of the principal amount, or
accreted value, of such unsubordinated Indebtedness tendered or to be repaid, repurchased or
redeemed, plus, in each case, accrued interest to the date of repayment, purchase or redemption) at
100% of the principal amount or accreted value thereof, as the case may be, plus accrued and unpaid
interest, if any, to the date of repurchase, repayment or redemption. Pending any such application
under this Section&nbsp;4.10(c), Net Cash Proceeds may be used to temporarily reduce Indebtedness or
otherwise be invested in any manner not prohibited by this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Notwithstanding the foregoing, (A)&nbsp;the Company will not be required to apply such Net Cash
Proceeds in accordance with clauses (2)&nbsp;or (3)&nbsp;of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Section&nbsp;4.10(c) except to the extent that such Net Cash Proceeds, together with the aggregate
Net Cash Proceeds of prior Asset Dispositions (other than those so used) which have not been
applied in accordance with this provision and as to which no prior prepayments or repayments shall
have been made and no Offer to Purchase shall have been made, exceed $25&nbsp;million and (B)&nbsp;in
connection with an Asset Disposition, the Company and the Restricted Subsidiaries will not be
required to comply with the requirements of clause (y)&nbsp;of Section&nbsp;4.10(a) to the extent that the
non-cash consideration received in connection with such Asset Disposition, together with the sum of
all non-cash consideration received in connection with all prior Asset Dispositions that has not
yet been converted into cash, Cash Equivalents or Marketable Securities, does not exceed $25
million; <I>provided, however</I>, that when any non-cash consideration is converted into cash, Cash
Equivalents or Marketable Securities, such cash shall constitute Net Cash Proceeds and be subject
to Section&nbsp;4.10(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.11<I>. Guarantees by Restricted Subsidiaries. </I>Each existing Restricted Subsidiary
(other than the Issuer (for so long as it remains the Issuer) and K. Hovnanian Poland, sp.zo.o.)
will be a Guarantor. The Company is permitted to cause any Unrestricted Subsidiary to be a
Guarantor. If the Issuer, the Company or any of its Restricted Subsidiaries acquires or creates a
Restricted Subsidiary after the Issue Date, such Restricted Subsidiary shall execute a guarantee
substantially in the form included in Exhibit&nbsp;A, execute a supplemental indenture in the form of
Exhibit&nbsp;B, and deliver an Opinion of Counsel to the Trustee to the effect that the supplemental
indenture has been duly authorized, executed and delivered by the new Restricted Subsidiary and
constitutes a valid and binding obligation of the new Restricted Subsidiary, enforceable against
the new Restricted Subsidiary in accordance with its terms (subject to customary exceptions).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.12<I>. Repurchase of Notes upon Change of Control. </I>(a)&nbsp;In the event that there shall
occur a Change of Control, each Holder of Notes shall have the right, at such Holder&#146;s option, to
require the Issuer to purchase all or any part of such Holder&#146;s Notes on a date (the &#147;<B>Repurchase
Date</B>&#148;) that is no later than 90&nbsp;days after notice of the Change of Control, at 101% of the
principal amount thereof plus accrued and unpaid interest and Additional Interest, if any, to the
Repurchase Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;On or before the thirtieth day after any Change of Control, the Issuer is obligated to
mail, or cause to be mailed, to all Holders of record of Notes and the Trustee, a notice regarding
the Change of Control and the repurchase right. The notice shall state the Repurchase Date, the
date by which the repurchase right must be exercised, the price for the Notes and the procedure
which the Holder must follow to exercise such right. Substantially simultaneously with mailing of
the notice, the Issuer shall cause a copy of such notice to be published in a newspaper of general
circulation in the Borough of Manhattan, The City of New
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">York. To exercise such right, the Holder of such Note must deliver, at least ten days prior
to the Repurchase Date, written notice to the Issuer (or an agent designated by the Issuer for such
purpose) of the Holder&#146;s exercise of such right, together with the Note with respect to which the
right is being exercised, duly endorsed for transfer; <I>provided</I>, <I>however</I>, that if mandated by
applicable law, a Holder may be permitted to deliver such written notice nearer to the Repurchase
Date than may be specified by the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Issuer will comply with applicable law, including Section 14(e) of the Exchange Act
and Rule&nbsp;14e-1 thereunder, if applicable, if the Issuer is required to give a notice of a right of
repurchase as a result of a Change of Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.13<I>. Limitations on Transactions with Affiliates. </I>(a)&nbsp;The Company and the Issuer
will not, and will not cause or permit any Restricted Subsidiary to, make any loan, advance,
guarantee or capital contribution to, or for the benefit of, or sell, lease, transfer or otherwise
dispose of any property or assets to or for the benefit of, or purchase or lease any property or
assets from, or enter into or amend any contract, agreement or understanding with, or for the
benefit of, any Affiliate of the Company or any Affiliate of any of the Company&#146;s Subsidiaries or
any holder of 10% or more of the Common Equity of the Company (including any Affiliates of such
holders), in a single transaction or series of related transactions (each, an &#147;<B>Affiliate
Transaction</B>&#148;), except for any Affiliate Transaction the terms of which are at least as favorable as
the terms which could be obtained by the Company, the Issuer or such Restricted Subsidiary, as the
case may be, in a comparable transaction made on an arm&#146;s-length basis with Persons who are not
such a holder, an Affiliate of such a holder or an Affiliate of the Company or any of the Company&#146;s
Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;In addition, the Company and the Issuer will not, and will not cause or permit any
Restricted Subsidiary to, enter into an Affiliate Transaction unless:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;with respect to any such Affiliate Transaction involving or having a value of
more than $1&nbsp;million, the Company shall have (x)&nbsp;obtained the approval of a majority of
the Board of Directors of the Company and (y)&nbsp;either obtained the approval of a majority
of the Company&#146;s disinterested directors or obtained an opinion of a qualified independent
financial advisor to the effect that such Affiliate Transaction is fair to the Company,
the Issuer or such Restricted Subsidiary, as the case may be, from a financial point of
view, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;with respect to any such Affiliate Transaction involving or having a value of
more than $10&nbsp;million, the Company shall have (x)&nbsp;obtained the approval of a majority of
the Board of Directors of the Company and (y)&nbsp;delivered to the Trustee an opinion of a
qualified
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">independent financial advisor to the effect that such Affiliate Transaction is fair
to the Company, the Issuer or such Restricted Subsidiary, as the case may be, from a
financial point of view.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;Notwithstanding the foregoing, an Affiliate Transaction will not include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;any contract, agreement or understanding with, or for the benefit of, or plan for
the benefit of, employees of the Company or its Subsidiaries generally (in their
capacities as such) that has been approved by the Board of Directors of the Company,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Capital Stock issuances to directors, officers and employees of the Company or
its Subsidiaries pursuant to plans approved by the stockholders of the Company,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;any Restricted Payment otherwise permitted under Section&nbsp;4.07 hereof,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;any transaction between or among the Company and one or more Restricted
Subsidiaries or between or among Restricted Subsidiaries (<I>provided, however</I>, no such
transaction shall involve any other Affiliate of the Company (other than an Unrestricted
Subsidiary to the extent the applicable amount constitutes a Restricted Payment permitted
by this Indenture)),
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;any transaction between one or more Restricted Subsidiaries and one or more
Unrestricted Subsidiaries where all of the payments to, or other benefits conferred upon,
such Unrestricted Subsidiaries are substantially contemporaneously dividended, or
otherwise distributed or transferred without charge, to the Company or a Restricted
Subsidiary,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;issuances, sales or other transfers or dispositions of mortgages and
collateralized mortgage obligations in the ordinary course of business between Restricted
Subsidiaries and Unrestricted Subsidiaries of the Company, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;the payment of reasonable and customary fees to, and indemnity provided on
behalf of, officers, directors, employees or consultants of the Company, the Issuer or any
Restricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.14<I>. Limitations on Mergers, Consolidations and Sales of Assets. </I>Neither the Issuer
nor any Guarantor will consolidate or merge with or into, or sell, lease, convey or otherwise
dispose of all or substantially all of its assets (including, without limitation, by way of
liquidation or dissolution), or assign any
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">of its obligations under the Notes, the Guarantees or this Indenture (as an entirety or
substantially as an entirety in one transaction or in a series of related transactions), to any
Person (in each case other than in a transaction in which the Company, the Issuer or a Restricted
Subsidiary is the survivor of a consolidation or merger, or the transferee in a sale, lease,
conveyance or other disposition) unless:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;the Person formed by or surviving such consolidation or merger (if other than the
Company, the Issuer or the Guarantor, as the case may be), or to which such sale, lease,
conveyance or other disposition or assignment will be made (collectively, the
&#147;<B>Successor</B>&#148;), is a corporation or other legal entity organized and existing under the laws
of the United States or any state thereof or the District of Columbia, and the Successor
assumes by supplemental indenture in a form reasonably satisfactory to the Trustee all of
the obligations of the Company, the Issuer or the Guarantor, as the case may be, under the
Notes or a Guarantee, as the case may be, and this Indenture and the Security Documents,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;immediately after giving effect to such transaction, no Default or Event of
Default has occurred and is continuing, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;immediately after giving effect to such transaction, the Company (or its
Successor) could incur at least $1.00 of Indebtedness pursuant to Section&nbsp;4.06(a) hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The foregoing provisions shall not apply to: (i)&nbsp;a transaction involving the sale or
disposition of Capital Stock of a Guarantor, or the consolidation or merger of a Guarantor, or the
sale, lease, conveyance or other disposition of all or substantially all of the assets of a
Guarantor, that in any such case results in such Guarantor being released from its Guarantee
pursuant to Section&nbsp;6.03, or (ii)&nbsp;a transaction the purpose of which is to change the state of
incorporation of the Company, the Issuer or any Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.15. <I>Reports to Holders of Notes. </I>(a)&nbsp;The Company shall file with the Commission
the annual reports and the information, documents and other reports required to be filed pursuant
to Section&nbsp;13 or 15(d) of the Exchange Act. The Company shall file with the Trustee and mail to
each Holder of record of Notes such reports, information and documents within 15&nbsp;days after it
files them with the Commission. In the event that the Company is no longer subject to these
periodic reporting requirements of the Exchange Act, it will nonetheless continue to file reports
with the Commission and the Trustee and mail such reports to each Holder of Notes as if it were
subject to such reporting requirements. Regardless of whether the Company is required to furnish
such reports to its stockholders pursuant to the Exchange Act, the Company will cause its
consolidated financial statements and a &#147;Management&#146;s Discussion and Analysis of Results of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Operations and Financial Condition&#148; written report, similar to those that would have been
required to appear in annual or quarterly reports, to be delivered to Holders of Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;For so long as any of the Notes remain outstanding and constitute &#147;restricted securities&#148;
under Rule&nbsp;144, the Company will furnish to the Holders of Notes and prospective investors, upon
their request, the information required to be delivered pursuant to Rule&nbsp;144A(d)(4) under the
Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;All &#147;obligors,&#148; as that term is defined under the Trust Indenture Act, on the Notes,
including the Issuer and the Guarantors, will comply with Section 314(a) of the Trust Indenture
Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The posting of the reports, information and documents referred to above on the Company&#146;s
website or one maintained on its behalf for such purpose shall be deemed to satisfy the Company&#146;s
delivery obligations to the Trustee and the Holders. In addition, availability of the foregoing
materials on the SEC&#146;s EDGAR service shall be deemed to satisfy the Company&#146;s delivery obligations
to the Trustee and the Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee&#146;s receipt of them will not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Issuer&#146;s and/or the Company&#146;s compliance with any of its covenants in this Indenture (as to which
the Trustee is entitled to rely exclusively on Officers&#146; Certificates).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.16. <I>Reports to Trustee. </I>(a)&nbsp;The Company will deliver to the Trustee within 120
days after the end of each fiscal year a written statement by the Company&#146;s independent public
accountants stating (i)&nbsp;that their audit examination has included a review of the terms of this
Indenture and the Notes as they relate to accounting matters, and (ii)&nbsp;whether, in connection with
their audit examination, any Default has come to their attention and, if a Default has come to
their attention, specifying the nature and period of the existence thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Company shall deliver to the Trustee, on or prior to each Interest Payment Date, an
Officers&#146; Certificate setting forth the amount of Additional Interest, if any, the Issuer is
required to pay on that Interest Payment Date. If no Additional Interest is required to be paid on
a given Interest Payment Date, no such Officers&#146; Certificate is required to be delivered to the
Trustee for that Interest Payment Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;All &#147;obligors,&#148; as that term is defined under the Trust Indenture Act, on the Notes,
including the Issuer and the Guarantors, will comply with Section 314(a) of the Trust Indenture
Act. The Company will notify the Trustee when any Notes are listed on any national securities
exchange and of any delisting.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.17. <I>Notice of Other Defaults</I>. In the event that any Indebtedness of the Issuer or
any Guarantor is declared due and payable before its maturity because of the occurrence of any
default under such Indebtedness, the Issuer or the relevant Guarantor, as the case may be, shall
promptly deliver to the Trustee an Officers&#146; Certificate stating such declaration; <I>provided</I>, that
the term &#147;Indebtedness&#148; as used in this Section&nbsp;4.17 shall not include Non-Recourse Indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Section&nbsp;4.18<I>. Collateral Requirement; Further Assurances; Costs.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;On the Issue Date, the Issuer and each Guarantor shall grant Liens on all their property
(other than Excluded Property) and take all appropriate steps to cause such Liens to be perfected
first-priority liens (subject to Permitted Liens), including through recordation of mortgages,
entry into control agreements, filing of UCC-1 financing statements or otherwise, pursuant to, and
to the extent required by, the Security Documents to be entered into on the Issue Date and this
Indenture. For the avoidance of doubt, the requirements of this Section&nbsp;4.18(a) are subject to
Section&nbsp;4.18(d) below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If the Issuer or any of the Guarantors at any time grants, assumes, perfects or becomes
subject to any Lien upon any of its property (other than Excluded Property of the type referred to
in clause (a)&nbsp;of the definition thereof) then owned or thereafter acquired as security for any
other First-Priority Lien Obligation, the Issuer will, or will cause such Guarantor to, as promptly
as practical (subject to Section&nbsp;4.18(d) below):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;grant a Lien on such property to the Collateral Agent for the benefit of the
Holders and, to the extent such grant would require the execution and delivery of a
Security Document, the Issuer or such Guarantor shall execute and deliver a Security
Document on substantially the same terms as the agreement or instrument executed and
delivered to secure such other First-Priority Lien Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;cause the Lien granted in such Security Document to be duly perfected in any
manner permitted by law to the same extent as the Liens granted for the benefit of such
other First-Priority Lien Obligations are perfected; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;instruct the Collateral Agent to take all action necessary in connection with
the foregoing provisions of this Section&nbsp;4.18(b), including as necessary under the
Security Documents and determining whether Collateral constitutes Mortgage Tax Collateral
or Junior Mortgage Tax Collateral, as the case may be, for purposes of the Intercreditor
Agreements.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;If the Issuer or any Guarantor at any time after the Issue Date acquires any new property
(other than Excluded Property) that is not automatically subject to a Lien under the Security
Documents, or a Restricted Subsidiary becomes a Guarantor, the Issuer will, or will cause such
Guarantor, subject to the requirements of the Security Documents, to as soon as practical after
such property&#146;s acquisition or it no longer being Excluded Property (subject to Section&nbsp;4.18(d)
below):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;grant a Lien on such property (or, in the case of a new Guarantor, all of its
assets except Excluded Property) to the Collateral Agent for the benefit of the Holders
(and, to the extent such grant would require the execution and delivery of a Security
Document, the Issuer or such Guarantor shall execute and deliver a Security Document on
substantially the same terms as the Security Documents executed and delivered on the Issue
Date);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;cause the Lien granted in such Security Document to be duly perfected in any
manner permitted by law to the same extent as the Liens granted on the Issue Date are
perfected; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;instruct the Collateral Agent to take all action necessary in connection with
the foregoing provisions of this Section&nbsp;4.18(c) including as necessary under the Security
Documents and determining whether Collateral constitutes Mortgage Tax Collateral or Junior
Mortgage Tax Collateral, as the case may be, for purposes of the Intercreditor Agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Issuer or such Guarantor shall deliver an Opinion of Counsel to the Trustee in respect of any
Lien grant referred to in this Section&nbsp;4.18(c) by a new Guarantor or with respect to real property,
addressing customary matters (and containing customary exceptions) consistent with the Opinion of
Counsel delivered on the Issue Date in respect of such matters; <I>provided, that, </I>an Opinion of
Counsel shall not be required with respect to any mortgage or similar instrument for real property
located in a jurisdiction for which an Opinion of Counsel has been previously delivered to the
Trustee pursuant to this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Notwithstanding anything to the contrary set forth in this Section&nbsp;4.18 or elsewhere in
this Indenture or any Security Document:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;any mortgages or similar instruments (and any related Security Documents)
required to be granted pursuant to this Indenture or the Security Documents with respect
to real property owned by the Issuer or a Guarantor on the Issue Date shall be granted,
together with Opinions of Counsel delivered to the Trustee in respect of the
enforceability and validity of such mortgages and similar instruments, addressing
customary
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">matters (and containing customary exceptions), as soon as commercially reasonable
following the Issue Date, but in no event later than 120&nbsp;days following the Issue Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;any control, intercreditor or similar agreements or other Security Documents
with respect to L/C Collateral (other than Excluded Property) and any deposit, checking
and securities accounts required to be provided pursuant to this Indenture or the Security
Documents on the Issue Date shall be provided as soon as commercially reasonable following
the Issue Date, but in no event later than 90&nbsp;days following the Issue Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;in the event that Rule&nbsp;3-16 of Regulation&nbsp;S-X under the Securities Act requires
or would require (or is replaced with another rule or regulation, or any other law, rule
or regulation is adopted, which would require) the filing with the Commission of separate
financial statements of a Guarantor or of K. Hovnanian JV Holdings, L.L.C. that are not
otherwise required to be filed, then the capital stock or other securities of such Person
need not be pledged pursuant to this Section&nbsp;4.18 and shall automatically be deemed
released and to not be and to not have been part of the Collateral, but only to the extent
necessary to not be subject to such requirement. In such event, the Security Documents may
be amended or modified, without the consent of any Holder of Notes, to the extent
necessary to evidence the release of Liens securing the Notes and the Guarantees on the
 shares of capital stock or other securities that are so deemed to no longer constitute
part of the Collateral; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;any control, intercreditor or similar agreements or other Security Documents
required pursuant to this Indenture or the Security Documents with respect to L/C
Collateral (other than Excluded Property) may provide that the Collateral Agent for the
benefit of the Holders has a security interest in such Collateral that is junior to the
lien granted to the holders of the obligations secured by such L/C Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;The Issuer will bear and pay all legal expenses, collateral audit and valuation costs,
filing fees, insurance premiums and other costs associated with the performance of the obligations
of the Issuer and the Guarantors set forth in this Section&nbsp;4.18 and will also pay or reimburse the
Trustee and Collateral Agent for all reasonable out-of-pocket expenses, disbursements and advances
incurred or made by the Trustee and Collateral Agent in connection therewith, including the
reasonable compensation and expenses of the Trustee and Collateral Agent&#146;s agents and counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;Neither the Issuer nor any of the Guarantors will be permitted to take any action, or
knowingly or negligently omit to take any action, which action
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">or omission might or would have the result of materially impairing the security interest with
respect to the Collateral for the benefit of the Trustee and the Holders of the Notes.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 5<BR>
<FONT style="font-variant: SMALL-CAPS">Remedies</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.01. <I>Events of Default. </I>&#147;<B>Event of Default</B>&#148; means any one or more of the following
events:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;the failure by the Company, the Issuer and the Guarantors to pay interest on, or
Additional Interest, if any, with respect to, any Note when the same becomes due and
payable and the continuance of any such failure for a period of 30&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;the failure by the Company, the Issuer and the Guarantors to pay the principal
or premium of any Note when the same becomes due and payable at maturity, upon
acceleration or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;the failure by the Company, the Issuer or any Restricted Subsidiary to comply
with any of its agreements or covenants in, or provisions of, the Notes, the Guarantees or
this Indenture and such failure continues for the period and after the notice specified
below (except in the case of a default under Section&nbsp;4.12 and 4.14, which will constitute
Events of Default with notice but without passage of time);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;the acceleration of any Indebtedness (other than Non-Recourse Indebtedness) of
the Company, the Issuer or any Restricted Subsidiary that has an outstanding principal
amount of $10&nbsp;million or more, individually or in the aggregate, and such acceleration
does not cease to exist, or such Indebtedness is not satisfied, in either case within 30
days after such acceleration;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v)&nbsp;the failure by the Company, the Issuer or any Restricted Subsidiary to make any
principal or interest payment in an amount of $10&nbsp;million or more, individually or in the
aggregate, in respect of Indebtedness (other than Non-Recourse Indebtedness) of the
Company or any Restricted Subsidiary within 30&nbsp;days of such principal or interest becoming
due and payable (after giving effect to any applicable grace period set forth in the
documents governing such Indebtedness);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vi)&nbsp;a final judgment or judgments that exceed $10&nbsp;million or more, individually or
in the aggregate, for the payment of money having been entered by a court or courts of
competent jurisdiction against the
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Company, the Issuer or any of its Restricted Subsidiaries and such judgment or
judgments is not satisfied, stayed, annulled or rescinded within 60&nbsp;days of being entered;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;the Company, the Issuer or any Restricted Subsidiary that is a Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(A)&nbsp;commences a voluntary case,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;consents to the entry of an order for relief against it in an
involuntary case,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;consents to the appointment of a Custodian of it or for all or
substantially all of its property, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 12%">(D)&nbsp;makes a general assignment for the benefit of its creditors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(viii)&nbsp;a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(A)&nbsp;is for relief against the Company, the Issuer or any Restricted
Subsidiary that is a Significant Subsidiary as debtor in an involuntary case,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(B)&nbsp;appoints a Custodian of the Company, the Issuer or any Restricted
Subsidiary that is a Significant Subsidiary or a Custodian for all or
substantially all of the property of the Company or any Restricted Subsidiary
that is a Significant Subsidiary, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%; text-indent: 4%">(C)&nbsp;orders the liquidation of the Company, the Issuer or any Restricted
Subsidiary that is a Significant Subsidiary,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">and the order or decree remains unstayed and in effect for 60&nbsp;days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ix)&nbsp;any Guarantee of a Guarantor which is a Significant Subsidiary ceases to be in
full force and effect (other than in accordance with the terms of such Guarantee and this
Indenture) or is declared null and void and unenforceable or found to be invalid or any
Guarantor denies its liability under its Guarantee (other than by reason of release of a
Guarantor from its Guarantee in accordance with the terms of this Indenture and the
Guarantee); or
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(x)&nbsp;the Liens created by the Security Documents shall at any time not constitute
valid and perfected Liens on any material portion of the Collateral intended to be covered
thereby (to the extent perfection by filing, registration, recordation or possession is
required by this Indenture or the Security Documents) other than in accordance with the
terms of the relevant Security Document and this Indenture and other than the satisfaction
in full of all Obligations under this Indenture or the release or amendment of any such
Lien in accordance with the terms of this Indenture or the Security Documents, or, except
for expiration in accordance with its terms or amendment, modification, waiver,
termination or release in accordance with the terms of this Indenture and the relevant
Security Document, any of the Security Documents shall for whatever reason be terminated
or cease to be in full force and effect, if in either case, such default continues for 30
days after notice, or the enforceability thereof shall be contested by the Issuer or any
Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">A Default as described in subclause (iii)&nbsp;of this Section&nbsp;5.01 will not be deemed an Event of
Default until the Trustee notifies the Company, or the Holders of at least 25&nbsp;percent in principal
amount of the then outstanding Notes notify the Company and the Trustee, of the Default and (except
in the case of a default with respect to Section&nbsp;4.12 and 4.14 hereof) the Company does not cure
the Default within 60&nbsp;days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a &#147;Notice of Default.&#148; If such a Default is cured
within such time period, it ceases.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If an Event of Default (other than an Event of Default with respect to the Company or the
Issuer resulting from subclauses (vii)&nbsp;or (viii)&nbsp;of this Section&nbsp;5.01), shall have occurred and be
continuing under this Indenture, the Trustee by notice to the Company, or the Holders of at least
25&nbsp;percent in principal amount of the Notes then outstanding by notice to the Company and the
Trustee, may declare all Notes to be due and payable immediately. Upon such declaration of
acceleration, the amounts due and payable on the Notes will be due and payable immediately. If an
Event of Default with respect to the Company or the Issuer specified in subclauses (vii)&nbsp;or (viii)
of this Section&nbsp;5.01 occurs, such an amount will <I>ipso facto </I>become and be immediately due and
payable without any declaration, notice or other act on the part of the Trustee and the Company or
any Holder. This provision, however, is subject to the condition that, if at any time after the
unpaid principal amount (or such specified amount) of the Notes shall have been so declared due and
payable and before any judgment or decree for the payment of the moneys due shall have been
obtained or entered as hereinafter provided, the Issuer shall pay or shall deposit with the Trustee
a sum sufficient to pay all matured installments of interest and Additional Interest, if any, upon
all of the Notes and the principal of all the Notes which shall have become due otherwise than by
acceleration (with interest on overdue installments of interest and Additional Interest, if any, to
the extent that payment of such interest is
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">enforceable under applicable law and on such principal at the rate borne by the Notes to the
date of such payment or deposit) and the reasonable compensation, disbursements, expenses and
advances of the Trustee and all other amounts due the Trustee under Section&nbsp;7.07, and any and all
defaults under this Indenture, other than the nonpayment of such portion of the principal amount of
and accrued interest and Additional Interest, if any, on Notes which shall have become due by
acceleration, shall have been cured or shall have been waived in accordance with Section&nbsp;5.03 or
provision deemed by the Trustee to be adequate shall have been made therefor, then and in every
such case the Holders of a majority in aggregate principal amount of the Notes then outstanding, by
written notice to the Issuer and to the Trustee, may rescind and annul such declaration and its
consequences; but no such rescission and annulment shall extend to or shall affect any subsequent
default, or shall impair any right consequent thereon. Notwithstanding the previous sentence, no
waiver shall be effective against any Holder for any Event of Default or event which with notice or
lapse of time or both would be an Event of Default with respect to any covenant or provision which
cannot be modified or amended without the consent of the Holder of each outstanding Note affected
thereby, unless all such affected Holders agree, in writing, to waive such Event of Default or
other event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission or annulment or
for any reason or shall have been determined to be adverse to the Trustee, then and in every such
case the Issuer, the Trustee and the Holders of Notes shall be restored respectively to their
several positions and rights hereunder, and all rights, remedies and powers of the Issuer, the
Trustee and the Holders of Notes shall continue as though no such proceeding had been taken.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Except with respect to an Event of Default pursuant to clauses (i)&nbsp;or (ii)&nbsp;of this Section
5.01, the Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to the Trustee by the Issuer, a Paying Agent or any Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.02. <I>Other Remedies</I>. If an Event of Default occurs and is continuing, the Trustee
may pursue, in its own name or as trustee of an express trust, any available remedy by proceeding
at law or in equity to collect the payment of principal of, premium, if any, and interest or
Additional Interest, if any, on the Notes or to enforce the performance of any provision of the
Notes, this Indenture or the Security Documents. The Trustee may maintain a proceeding even if it
does not possess any of the Notes or does not produce any of them in the proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.03. <I>Waiver of Defaults by Majority of Holders. </I>By written notice to the Trustee
and the Company, the Holders of a majority in aggregate
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">principal amount of the Notes then outstanding may on behalf of the Holders of all of the
Notes waive any past Default or Event of Default hereunder and its consequences, except a Default
in the payment of interest and Additional Interest, if any, on, or the principal of, the Notes.
Upon any such waiver, the Issuer, the Trustee and the Holders of Notes shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent thereon. Whenever
any Default or Event of Default hereunder shall have been waived as permitted by this Section&nbsp;5.03,
said Default or Event of Default shall for all purposes of the Notes and this Indenture be deemed
to have been cured and to be not continuing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.04<I>. Direction of Proceedings</I>. The Holders of a majority in aggregate principal
amount of the outstanding Notes shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee with respect to the Notes; <I>provided</I>, <I>however</I>, that (subject to the
provisions of Section&nbsp;7.01) the Trustee shall have the right to decline to follow any such
direction if the Trustee shall determine upon advice of counsel that the action or proceeding so
directed may not lawfully be taken or if the Trustee in good faith by its board of directors, its
executive committee, or a trust committee of directors or Responsible Officers or both shall
determine that the action or proceeding so directed would involve the Trustee in personal
liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.05. <I>Application of Moneys Collected by Trustee</I>. Any moneys collected by the
Trustee pursuant to this Article (including any proceeds from Collateral received pursuant to the
terms of the Security Documents) with respect to outstanding Notes shall be applied in the order
following, at the date or dates fixed by the Trustee for the distribution of such moneys, upon
presentation of the Notes and stamping thereon the payment, if only partially paid, and upon
surrender thereof, if fully paid:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">FIRST: To the payment of costs and expenses of collection and reasonable compensation
to the Trustee, its agents, attorneys and counsel, and all other expenses and liabilities
incurred, and all advances made, by the Trustee pursuant to Section&nbsp;7.07 except as a
result of its negligence or bad faith;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">SECOND: If the principal of the Notes shall not have become due and be unpaid, to the
payment of interest or Additional Interest, if any, on the Notes, in the order of the
maturity of the installments of such interest or Additional Interest, if any, with
interest (to the extent that such interest has been collected by the Trustee) upon the
overdue installments of interest and Additional Interest, if any, at the rate borne by the
Notes, such payment to be made ratably to the Persons entitled thereto;
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">THIRD: If the principal of the Notes shall have become due, by declaration or
otherwise, to the payment of the whole amount then owing and unpaid upon the Notes for
principal, interest and Additional Interest, if any, with interest on the overdue
principal and (to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest and Additional Interest, if any, at the rate borne by the
Notes, and in case such moneys shall be insufficient to pay in full the whole amounts so
due and unpaid upon the Notes, then to the payment of such principal and interest and
Additional Interest, if any, without preference or priority of principal over interest or
Additional Interest, if any, or of interest or Additional Interest, if any, over
principal, or of interest over Additional Interest, if any, or of any installment of
interest, if any, or Additional Interest, if any, over any other installment of interest
or Additional Interest, if any, ratably to the aggregate of such principal and accrued and
unpaid interest and Additional Interest, if any; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">FOURTH: To the payment of any surplus then remaining to the Issuer, its successors or
assigns, or to whomsoever may be lawfully entitled to receive the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">No claim for interest which in any manner at or after maturity shall have been transferred or
pledged separate or apart from the Notes to which it relates, or which in any manner shall have
been kept alive after maturity by an extension (otherwise than pursuant to an extension made
pursuant to a plan proposed by the Issuer to the Holders of all Notes), purchase, funding or
otherwise by or on behalf or with the consent or approval of the Issuer shall be entitled, in case
of a default hereunder, to any benefit of this Indenture, except after prior payment in full of the
principal of all Notes and of all claims for interest not so transferred, pledged, kept alive,
extended, purchased or funded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.06<I>. Proceedings by Holders</I>. No holder of any Notes shall have any right by virtue
of or by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture for the appointment of a receiver
or trustee or similar official, or for any other remedy hereunder, unless such Holder previously
shall have given to the Trustee written notice of default and of the continuance thereof, as
hereinbefore provided, and unless the Holders of not less than 25% in aggregate principal amount of
the Notes then outstanding shall have made written request to the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered such reasonable
indemnity as the Trustee may require against the costs, expenses and liabilities to be incurred
therein or thereby, and the Trustee for 60&nbsp;days after its receipt of such notice, request and offer
of indemnity shall have neglected or refused to institute any such action, suit or proceeding, it
being understood and intended, and being expressly covenanted by the Holder of every Note with
every other Holder and the Trustee, that no one or
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">more Holders of Notes shall have any right in any manner whatever by virtue of or by availing
of any provision of this Indenture or of the Notes to affect, disturb or prejudice the rights of
any other Holder of Notes, or to obtain or seek to obtain priority over or preference as to any
other such Holder, or to enforce any right under this Indenture or the Notes, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Notwithstanding any other provisions in this Indenture, however, the right of any Holder of
any Note to receive payment of the principal of, premium, if any, and interest and Additional
Interest, if any, on such Note, on or after the maturity thereof, or to institute suit for the
enforcement of any such payment on or after such respective dates shall not be impaired or affected
without the consent of such Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.07<I>. Proceedings by Trustee</I>. In case of an Event of Default hereunder, the Trustee
may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by
such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any of such rights, either by suit in equity or by action at law or by proceedings in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to
enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.08. <I>Remedies Cumulative and Continuing</I>. All powers and remedies given by this
Article&nbsp;5 to the Trustee or to the Holders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any thereof or of any other powers and remedies available to the
Trustee or the Holders, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture, and no delay or omission of
the Trustee or of any Holder to exercise any right or power accruing upon any default occurring and
continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver
of any such default or an acquiescence therein; and, subject to the provisions of Section&nbsp;5.06,
every power and remedy given by this Article&nbsp;5 or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the
Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.09. <I>Undertaking to Pay Costs</I>. All parties to this Indenture agree, and each Holder
of any Note by his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, or in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by
any party litigant in such suit of an undertaking to pay the cost of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys&#146;
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">fees and expenses, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the provisions of this
Section&nbsp;5.09 shall not apply to any suit instituted by the Trustee, to any suit instituted by any
Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the then
outstanding Notes, or to any suit instituted by any Holders for the enforcement of the payment of
the principal of, premium, if any, or interest or Additional Interest, if any, on any Note against
the Issuer on or after the due date of such Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.10<I>. Notice of Defaults</I>. (a)&nbsp;The Company is required to deliver to the Trustee an
annual statement regarding compliance with this Indenture, and include in such statement, if any
officer of the Company is aware of any Default or Event of Default, a statement specifying such
Default or Event of Default and what action the Company is taking or proposes to take with respect
thereto. In addition, the Company is required to deliver to the Trustee prompt written notice of
the occurrence of any Default or Event of Default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Trustee shall, within 90&nbsp;days after the occurrence of a default known to the Trustee,
with respect to the Notes, mail to all Holders of Notes, as the names and the addresses of such
Holders appear upon the Register, notice of all defaults, unless such defaults shall have been
cured before the giving of such notice (the term &#147;<B>default</B>&#148; for the purpose of this Section&nbsp;5.10(b)
being hereby defined to be the events specified in clauses (i), (ii), (iii), (iv), (v), (vi),
(vii), (viii), (ix)&nbsp;and (x)&nbsp;of Section&nbsp;5.01, not including periods of grace, if any, provided for
therein and irrespective of the giving of the written notice specified in said clause (iii)&nbsp;but in
the case of any default of the character specified in said clause (iii)&nbsp;no such notice to Holders
shall be given until at least 60&nbsp;days after the giving of written notice thereof to the Company
pursuant to said clause (iii)); <I>provided</I>, <I>however</I>, that, except in the case of default in the
payment of the principal of, premium, if any, or interest and Additional Interest, if any, on any
of the Notes, or in the payment or satisfaction of a purchase obligation, the Trustee shall be
protected in withholding such notice if and so long as the board of directors, the executive
committee, a trust committee of directors or a Responsible Officer of the Trustee in good faith
determines that the withholding of such notice is in the best interests of the Holders. Notice to
Holders under this Section shall be given in the manner and to the extent provided in Trust
Indenture Act Section&nbsp;313(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.11. <I>Waiver of Stay, Extension or Usury Laws. </I>The Company, the Issuer and each
Guarantor covenants, to the extent permitted by applicable law, that it will not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive the Company, the Issuer
or the Guarantor from paying all or any portion of the principal of, premium, if any, or interest
or Additional Interest, if any, on the Notes as contemplated herein, wherever enacted, now or at
any time hereafter in force, or that may affect the
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">covenants or the performance of this Indenture. The Company, the Issuer and each Guarantor
hereby expressly waives, to the extent that it may lawfully do so, all benefit or advantage of any
such law and covenants that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such power as though no
such law had been enacted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.12. <I>Trustee May File Proof of Claim</I>. The Trustee may file proofs of claim and
other papers or documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee hereunder) and the Holders
allowed in any judicial proceedings relating to the Company, the Issuer or any Guarantor or their
respective creditors or property, and is entitled and empowered to collect, receive and distribute
any money, securities or other property payable or deliverable upon conversion or exchange of the
Notes or upon any such claims. Any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, if the Trustee consents to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any
other amounts due the Trustee hereunder. Nothing in this Indenture will be deemed to empower the
Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any
such proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.13<I>. Payment of Notes on Default; Suit Therefor. </I>The Issuer covenants that (a)&nbsp;if
default shall be made in the payment of any installment of interest and Additional Interest, if
any, upon the Notes as and when the same shall become due and payable, and such default shall have
continued for a period of 30&nbsp;days, or (b)&nbsp;if default shall be made in the payment of the principal
of, and premium, if any, on the Notes as and when the same shall have become due and payable,
whether at maturity of the Notes or upon redemption or by declaration or otherwise, then, upon
demand of the Trustee, the Issuer will pay to the Trustee, for the benefit of the Holders, the
whole amount that then shall have become due and payable on all such Notes for principal, and
premium, if any, or interest and Additional Interest, if any, or both, as the case may be, with
interest upon the overdue principal and (to the extent that payment of such interest is enforceable
under applicable law) upon the overdue installments of interest and Additional Interest, if any, at
the rate borne by the Notes; and, in addition thereto, such further amount as shall be sufficient
to cover the costs and expenses of collection, including a reasonable compensation to the Trustee,
its agent, attorneys and
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">counsel, and any expenses or liabilities incurred by the Trustee hereunder other than through
its negligence or bad faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its
own name and as trustee of an express trust, shall be entitled and empowered to institute any
actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and
may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Issuer or any other obligor on the Notes and collect in the
manner provided by law out of the property of the Issuer or any other obligor on the Notes,
wherever situated, the moneys adjudged or decreed to be payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If there shall be pending proceedings for the bankruptcy or for the reorganization of the
Issuer or any other obligor on the Notes under any bankruptcy, insolvency or other similar law now
or hereafter in effect, or if a receiver or trustee or similar official shall have been appointed
for the property of the Issuer or such other obligor, or in the case of any other similar judicial
proceedings relative to the Issuer or other obligor on the Notes, or to the creditors or property
of the Issuer or such other obligor, the Trustee, irrespective of whether the principal of the
Notes shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this
Section&nbsp;5.13, shall be entitled and empowered by intervention in such proceedings or otherwise to
file and prove a claim or claims for the whole amount of principal, premium, if any, interest and
Additional Interest, if any, owing and unpaid in respect of the Notes, and, in case of any judicial
proceedings, to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee and of the Holders allowed in such judicial
proceedings relative to the Issuer or any other obligor on the Notes, its or their creditors, or
its or their property, and to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute the same after the deduction of its charges and
expenses, and any receiver, assignee or trustee or similar official in bankruptcy or reorganization
is hereby authorized by each of the Holders to make such payments to the Trustee, and, if the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee
any amount due it for compensation and expenses or otherwise pursuant to Section&nbsp;7.07, including
counsel fees and expenses incurred by it up to the date of such distribution. To the extent that
such payment of reasonable compensation, expenses and counsel fees and expenses out of the estate
in any such proceedings shall be denied for any reason, payment of the same shall be secured by a
lien on, and shall be paid out of, any and all distributions, dividends, moneys, securities and
other property which the Holders of Notes may be entitled to receive in such proceedings, whether
in liquidation or under any plan of reorganization or arrangement or otherwise.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All rights of action and of asserting claims under this Indenture, or under any of the Notes,
may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall be for the ratable benefit of the Holders of Notes in respect of which
such judgment has been recovered.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 6<BR>
<FONT style="font-variant: SMALL-CAPS">Guarantees; Release of Guarantor</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.01. <I>Guarantee. </I>Each of the Guarantors hereby unconditionally guarantees, jointly
and severally with each other Guarantor, to each Holder and to the Trustee and its successors and
assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the
obligations of the Issuer hereunder or thereunder, that: (i)&nbsp;the due and punctual payment of the
principal of, premium, if any, and interest or Additional Interest, if any, on the Notes, whether
at maturity or on an interest payment date, by acceleration, pursuant to an Offer to Purchase or
otherwise, to the extent lawful, and all other obligations of the Issuer to the Holders or the
Trustee hereunder or thereunder shall be promptly paid in full when due, all in accordance with the
terms hereof and thereof, including all amounts payable to the Trustee under Section&nbsp;7.07 hereof,
and (ii)&nbsp;in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, the same shall be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If the Issuer fails to make any payment when due of any amount so guaranteed for whatever
reason, each Guarantor shall be obligated, jointly and severally with each other Guarantor, to pay
the same immediately. Each Guarantor hereby agrees that its obligations hereunder shall be
continuing, absolute and unconditional, irrespective of, and shall be unaffected by, the validity,
regularity or enforceability of the Notes, this Indenture, the absence of any action to enforce the
same, any waiver or consent by any Holder or the Trustee with respect to any provisions hereof or
thereof, the recovery of any judgment against the Issuer, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of
such Guarantor. If any Holder or the Trustee is required by any court or otherwise to return to
the Issuer or any Guarantor, or any custodian, trustee, liquidator or other similar official acting
in relation to the Issuer or such Guarantor, any amount paid by the Issuer or any Guarantor to the
Trustee or such Holder, this Article&nbsp;6, to the extent theretofore discharged with respect to any
Guarantee, shall be reinstated in full force and effect. Each Guarantor agrees that it shall not
be entitled to any right of subrogation in relation to the Holders in
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">respect of any obligations guaranteed hereby by such Guarantor until payment in full of all
such obligations. Each Guarantor further agrees that, as between such Guarantor, on the one hand,
and the Holders of Notes and the Trustee on the other hand, (i)&nbsp;the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article&nbsp;5 hereof for the purposes of such
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration
in respect of the obligations guaranteed hereby and (ii)&nbsp;in the event of any acceleration of such
obligations as provided in Article&nbsp;5 hereof such obligations (whether or not due and payable) shall
forthwith become due and payable by such Guarantor, jointly and severally with each other
Guarantor, for the purpose of this Article&nbsp;6. In addition, without limiting the foregoing, upon
the effectiveness of an acceleration under Article&nbsp;5, the Trustee may make a demand for payment on
the Notes under any Guarantee provided hereunder and not discharged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Guarantee set forth in this Section&nbsp;6.01 and as annexed to any Note shall not be valid or
become obligatory for any purpose with respect to a Note until the certificate of authentication on
such Note shall have been signed by the Trustee or any duly appointed agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.02<I>. Obligations of each Guarantor Unconditional</I>. Nothing contained in this Article
6 or elsewhere in this Indenture or in any Note is intended to or shall impair, as between each
Guarantor and the Holders, the obligations of such Guarantor which are absolute and unconditional,
to pay to the Holders the principal of, premium, if any, and interest and Additional Interest, if
any, on the Notes as and when the same shall become due and payable in accordance with the
provisions of their Guarantee or is intended to or shall affect the relative rights of the Holders
and creditors of such Guarantor, nor shall anything herein or therein prevent the Trustee or any
Holder from exercising all remedies otherwise permitted by applicable law upon any Default under
this Indenture in respect of cash, property or securities of such Guarantor received upon the
exercise of any such remedy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Upon any distribution of assets of a Guarantor referred to in this Article&nbsp;6, the Trustee,
subject to the provisions of Article&nbsp;7, and the Holders shall be entitled to rely upon any order or
decree made by any court of competent jurisdiction in which such dissolution, winding up,
liquidation or reorganization proceedings are pending, or a certificate of the liquidating trustee
or agent or other person making any distribution to the Trustee or to such Holders for the purpose
of ascertaining the persons entitled to participate in such distribution, the holders of other
indebtedness of such Guarantor, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article&nbsp;6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.03. <I>Release of a Guarantor</I>. (a)&nbsp;If all or substantially all of the assets of any
Guarantor other than the Company or all of the Capital Stock of any
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Guarantor other than the Company is sold (including by consolidation, merger, issuance or
otherwise) or disposed of (including by liquidation, dissolution or otherwise) by the Company or
any of its Subsidiaries, or, unless the Company elects otherwise, if any Guarantor other than the
Company is designated an Unrestricted Subsidiary in accordance with the terms of this Indenture,
then such Guarantor (in the event of a sale or other disposition of all of the Capital Stock of
such Guarantor or a designation as an Unrestricted Subsidiary) or the Person acquiring such assets
(in the event of a sale or other disposition of all or substantially all of the assets of such
Guarantor) shall be deemed automatically and unconditionally released and discharged from any of
its obligations under this Indenture without any further action on the part of the Trustee or any
Holder of Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;An Unrestricted Subsidiary that is a Guarantor shall be deemed automatically and
unconditionally released and discharged from all obligations under its Guarantee upon notice from
the Company to the Trustee to such effect, without any further action required on the part of the
Trustee or any Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.04. <I>Execution and Delivery of Guarantee. </I>The execution by each Guarantor of this
Indenture (or a supplemental indenture in the form of Exhibit&nbsp;B) together with an executed
guarantee substantially in the form included in Exhibit&nbsp;A evidences the Guarantee of such
Guarantor, whether or not the person signing as an officer of the Guarantor still holds that office
at the time of authentication of any Note. The delivery of any Note by the Trustee after
authentication constitutes due delivery of the Guarantee on behalf of each Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.05. <I>Limitation on Guarantor Liability</I>. Notwithstanding anything to the contrary in
this Article&nbsp;6, each Guarantor, and by its acceptance of a Note, each Holder, hereby confirms that
it is the intention of all such parties that the Guarantee of such Guarantor not constitute a
fraudulent conveyance under applicable fraudulent conveyance provisions of the United States
Bankruptcy Code or any comparable provision of state law. To effectuate that intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of each
Guarantor under its Guarantee are limited to the maximum amount that would not render the
Guarantor&#146;s obligations subject to avoidance under applicable fraudulent conveyance provisions of
the United States Bankruptcy Code or any comparable provision of state law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.06. <I>Article&nbsp;6 not to Prevent Events of Default</I>. The failure to make a payment on
account of principal, premium, if any, or interest or Additional Interest, if any, on the Notes by
reason of any provision in this Article&nbsp;6 shall not be construed as preventing the occurrence of
any Event of Default under Section&nbsp;5.01.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.07. <I>Waiver by the Guarantors. </I>To the extent permitted by applicable law, each
Guarantor hereby irrevocably waives diligence, presentment, demand of payment, demand of
performance, filing of claims with a court in the event of insolvency of bankruptcy of the Issuer,
any right to require a proceeding first against the Issuer, the benefit of discussion, protest,
notice and all demand whatsoever and covenants that this Guarantee shall not be discharged except
by complete performance of the obligations contained in the Notes, in this Indenture and in this
Article&nbsp;6.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.08. <I>Subrogation and Contribution. </I>Upon making any payment with respect to any
obligation of the Issuer under this Article, the Guarantor making such payment will be subrogated
to the rights of the payee against the Issuer with respect to such obligation; <I>provided</I>, that the
Guarantor may not enforce either any right of subrogation, or any right to receive payment in the
nature of contribution, or otherwise, from any other Guarantor, with respect to such payment so
long as any amount payable by the Issuer hereunder or under the Notes remains unpaid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Guarantor that makes a payment under its Guarantee shall be entitled, upon payment in
full of all guaranteed obligations under this Indenture, to seek and receive contribution from and
against each other Guarantor in an amount equal to such other Guarantors <I>pro rata </I>portion of such
payment based on the respective net assets of all the Guarantors at the time of such payment
determined in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.09. <I>Stay of Acceleration. </I>If acceleration of the time for payment of any amount
payable by the Issuer under this Indenture or the Notes is stayed upon the insolvency, bankruptcy
or reorganization of the Issuer, all such amounts otherwise subject to acceleration under the terms
of this Indenture are nonetheless payable by the Guarantors hereunder forthwith on demand by the
Trustee or the Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.10<I>. Guarantors as &#147;obligors&#148; for Provisions Included in this Indenture Pursuant to
the Trust Indenture Act. </I>Each provision included in this Indenture which is required to be
included by any of Sections&nbsp;310 to 317 of the Trust Indenture Act, inclusive, or is deemed
applicable to this Indenture by virtue of the provisions of the Trust Indenture Act, and which
applies to an &#147;obligor,&#148; as that term is defined under the Trust Indenture Act, shall apply to each
of the Guarantors; <I>provided </I>that in each case the provisions of TIA &#167;314(b) and &#167;314(d) shall only
apply following qualification of this Indenture under the TIA.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 7<BR>
<FONT style="font-variant: SMALL-CAPS">The Trustee</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.01. <I>General. </I>(a)&nbsp;The duties and responsibilities of the Trustee are as provided by
the Trust Indenture Act and as set forth herein. Whether or not expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability of, or affording
protection to, the Trustee is subject to this Article.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Except during the continuance of an Event of Default, the Trustee need perform only those
duties that are specifically set forth in this Indenture and no others, and no implied covenants or
obligations will be read into this Indenture against the Trustee. In case an Event of Default has
occurred and is continuing, the Trustee shall exercise those rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.02<I>. Certain Rights of the Trustee. </I>Subject to Trust Indenture Act Sections 315(a)
through (d):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Trustee may rely, and will be protected in acting or refraining from acting,
upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document believed by it to be genuine and to have been signed or presented by the
proper Person. The Trustee need not investigate any fact or matter stated in the
document, but the Trustee, in its discretion, may make further inquiry or investigation
into such facts or matters as it sees fit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Before the Trustee acts or refrains from acting, it may require an Officers&#146;
Certificate or an Opinion of Counsel conforming to Section&nbsp;13.05 and the Trustee will not
be liable for any action it takes or omits to take in good faith in reliance on such a
certificate or opinion. Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Issuer or the Company, as applicable, shall
be sufficient if signed by an Officer of the Issuer or the Company, as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Trustee may act through its attorneys and agents and will not be responsible
for the misconduct or negligence of any agent appointed with due care.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Trustee will be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the Holders, unless
such Holders have offered to the
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Trustee reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred by it in compliance with such request or direction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;The Trustee will not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers or for any action
it takes or omits to take in accordance with the direction of the Holders in accordance
with Section&nbsp;5.04 relating to the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;The Trustee may consult with counsel, and the written advice of such counsel or
any Opinion of Counsel will be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;No provision of this Indenture will require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of its duties
hereunder, or in the exercise of its rights or powers, unless it receives indemnity
satisfactory to it against any loss, liability or expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;The Trustee may request that the Company (on behalf of itself and the Issuer)
deliver an Officers&#146; Certificate setting forth the name of the individuals and/or titles
of Officers authorized at such time to take specific actions pursuant to this Indenture,
which Officers&#146; Certificate may be signed by any person authorized to sign an Officers&#146;
Certificate, including any person specified as so authorized in any such Officers&#146;
Certificate previously delivered and not superseded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;In no event shall the Trustee be liable, directly or indirectly, for any special,
indirect or consequential damages, even if the Trustee has been advised of the possibility
of such damages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;The rights, privileges, protections, immunities and benefits given to the
Trustee, including, without limitation, its right to be indemnified, are extended to, and
shall be enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.03<I>. Individual Rights of the Trustee. </I>The Trustee, in its individual or any other
capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the
same with like
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">rights. However, the Trustee is subject to Trust Indenture Act Sections 310(b) and 311. For
purposes of Trust Indenture Act Section&nbsp;311(b)(4) and (6):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a) &#147;<B>cash transaction</B>&#148; means any transaction in which full payment for goods or
securities sold is made within seven days after delivery of the goods or securities in
currency or in checks or other orders drawn upon banks or bankers and payable upon demand;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b) &#147;<B>self-liquidating paper</B>&#148; means any draft, bill of exchange, acceptance or
obligation which is made, drawn, negotiated or incurred for the purpose of financing the
purchase, processing, manufacturing, shipment, storage or sale of goods, wares or
merchandise and which is secured by documents evidencing title to, possession of, or a
lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the
sale of the goods, wares or merchandise previously constituting the security, provided the
security is received by the Trustee simultaneously with the creation of the creditor
relationship arising from the making, drawing, negotiating or incurring of the draft, bill
of exchange, acceptance or obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.04. <I>Trustee&#146;s Disclaimer. </I>The Trustee (a)&nbsp;makes no representation as to the
validity or adequacy of this Indenture or the Notes, (b)&nbsp;is not accountable for the Company&#146;s use
or application of the proceeds from the Notes and (c)&nbsp;is not responsible for any statement in the
Notes other than its certificate of authentication.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Section&nbsp;7.05. <I>Reserved.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.06. <I>Reports by Trustee to Holders. </I>Within 60&nbsp;days after each May&nbsp;1, beginning with
May&nbsp;1, 2010, the Trustee will mail to each Holder, as provided in Trust Indenture Act Section
313(c) a brief report dated as of such May&nbsp;1, if required by Trust Indenture Act Section&nbsp;313(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.07. <I>Compensation and Indemnity. </I>(a)&nbsp;The Company will pay the Trustee compensation
as agreed upon in writing for its services. The compensation of the Trustee is not limited by any
law on compensation of a trustee of an express trust. The Company will reimburse the Trustee upon
request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by
the Trustee, including the reasonable compensation and expenses of the Trustee&#146;s agents and
counsel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;In addition to any other indemnity provided to the Trustee hereunder, the Company will
indemnify the Trustee for, and hold it harmless against, any loss or liability or expense incurred
by it without negligence or bad faith on its part arising out of or in connection with the
acceptance or administration of this Indenture and its duties under this Indenture and the Notes,
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">including the costs and expenses of defending itself against any claim or liability and of
complying with any process served upon it or any of its officers in connection with the exercise or
performance of any of its powers or duties under this Indenture and the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;To secure the Company&#146;s payment obligations in this Section or as otherwise provided in
this Indenture, the Trustee will have a lien prior to the Notes on all money or property held or
collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay
principal of, premium, if any, and interest or Additional Interest, if any, on particular Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;When the Trustee incurs expenses or renders services after an Event of Default specified
in Section&nbsp;5.01(vii) or Section&nbsp;5.01(viii) hereof occurs, the expenses and the compensation for the
services (including the fees and expenses of its agents and counsel) are intended, to the extent
permitted by law, to constitute expenses of administration under any Bankruptcy Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.08. <I>Replacement of Trustee. </I>(a) (i)&nbsp;The Trustee may resign at any time by
written notice to the Issuer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;The Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by written notice to the Trustee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;If the Trustee is no longer eligible under Section&nbsp;7.10 or in the circumstances
described in Trust Indenture Act Section&nbsp;310(b), any Holder that satisfies the
requirements of Trust Indenture Act Section 310(b) may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;The Issuer may remove the Trustee if: (A)&nbsp;the Trustee is no longer eligible
under Section&nbsp;7.10; (B)&nbsp;the Trustee is adjudged bankrupt or an insolvent; (C)&nbsp;a receiver
or other public officer takes charge of the Trustee or its property; or (D)&nbsp;the Trustee
becomes incapable of acting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">A resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee&#146;s acceptance of appointment as provided in this Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If the Trustee has been removed by the Holders, Holders of a majority in principal amount
of the Notes may appoint a successor Trustee with the consent of the Issuer. Otherwise, if the
Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the
Issuer will promptly appoint a successor Trustee. If the successor Trustee does not deliver its
written acceptance within 30&nbsp;days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Issuer or the Holders of a majority in principal amount of the
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">outstanding Notes may petition, at the expense of the Issuer, any court of competent
jurisdiction for the appointment of a successor Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Upon delivery by the successor Trustee of a written acceptance of its appointment to the
retiring Trustee and to the Issuer, (i)&nbsp;the retiring Trustee will transfer all property held by it
as Trustee to the successor Trustee, subject to the lien provided for in Section&nbsp;7.07, (ii)&nbsp;the
resignation or removal of the retiring Trustee will become effective, and (iii)&nbsp;the successor
Trustee will have all the rights, powers and duties of the Trustee under this Indenture. Upon
request of any successor Trustee, the Issuer will execute any and all instruments for fully and
vesting in and confirming to the successor Trustee all such rights, powers and trusts. The Issuer
will give notice of any resignation and any removal of the Trustee and each appointment of a
successor Trustee to all Holders, and include in the notice the name of the successor Trustee and
the address of its Corporate Trust Office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Notwithstanding replacement of the Trustee pursuant to this Section, Issuer&#146;s obligations
under Section&nbsp;7.07 will continue for the benefit of the retiring Trustee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;The Trustee agrees to give the notices provided for in, and otherwise comply with, Trust
Indenture Act Section&nbsp;310(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.09. <I>Successor Trustee by Merger. </I>If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation or national banking association, the resulting, surviving or transferee corporation or
national banking association without any further act will be the successor Trustee with the same
effect as if the successor Trustee had been named as the Trustee in this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.10. <I>Eligibility. </I>The Indenture must always have a Trustee that satisfies the
requirements of Trust Indenture Act Section 310(a) and has a combined capital and surplus of at
least $25,000,000 as set forth in its most recent published annual report of condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.11. <I>Money Held in Trust. </I>The Trustee will not be liable for interest on any money
received by it except as it may agree with the Issuer. Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law and except for money held in
trust under Article&nbsp;8.
</DIV>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 8<BR>
<FONT style="font-variant: SMALL-CAPS">Defeasance and Discharge</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.01<I>. Legal Defeasance and Discharge. </I>The Issuer, the Company and the Guarantors
shall, subject to the satisfaction of the conditions set forth in Section&nbsp;8.03 hereof, be deemed to
have been discharged from their respective obligations with respect to the Notes, the Guarantees
and under the Security Documents and cause the release of all Liens on the Collateral granted under
the Security Documents, on the date the conditions set forth below are satisfied (hereinafter,
&#147;<B>Legal Defeasance</B>&#148;). For this purpose, Legal Defeasance means that the Issuer shall be deemed to
have paid and discharged the entire Indebtedness represented by the Notes, which shall thereafter
be deemed to be outstanding only for the purposes of Section&nbsp;8.04 hereof and the other Sections of
this Indenture referred to in clauses (a)&nbsp;through (f)&nbsp;of this Section&nbsp;8.01, and the Issuer, the
Company and the Guarantors shall be deemed to have satisfied all of their respective obligations
under the Notes, the Guarantees, this Indenture and the Security Documents (and the Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments delivered to it by the
Issuer acknowledging the same), except of the following provisions which shall survive until
otherwise terminated or discharged hereunder: (a)&nbsp;the rights of Holders of Notes to receive
payments in respect of the principal, premium, if any, and interest and Additional Interest, if
any, on the Notes when such payments are due from the trust referred to below; (b)&nbsp;the Issuer&#146;s
obligations with respect to the Notes concerning mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments held in trust; (c)
the rights, powers, trusts, duties and immunities of the Trustee, and the Issuer&#146;s and the
Guarantors&#146; obligations in connection therewith; (d)&nbsp;the Legal Defeasance provisions of this
Indenture; (e)&nbsp;the rights of registration of transfer and exchange of the Notes; and (f)&nbsp;the rights
of Holders that are beneficiaries with respect to property so deposited with the Trustee payable to
all or any of them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.02<I>. Covenant Defeasance. </I>The Issuer, the Company and the Guarantors shall, subject
to the satisfaction of the conditions set forth in Section&nbsp;8.03 hereof, be released from their
obligations with respect to the Notes and the Guarantees under the covenants contained in Sections
4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12 and 4.13, clause (iii)&nbsp;of Section&nbsp;4.14, Section&nbsp;4.15,
Section&nbsp;4.18 and Article&nbsp;6 (except for Section&nbsp;6.03 and Section&nbsp;6.10) and each Guarantor&#146;s
obligation under its Guarantee, on and after the date that the conditions set forth in Section&nbsp;8.03
are satisfied and the Liens on the Collateral granted under the Security Documents will be released
(hereinafter, &#147;<B>Covenant Defeasance</B>&#148;), and the Notes shall thereafter be deemed not outstanding for
the purposes of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed
outstanding for all other purposes hereunder (it being understood that the Notes shall not be
deemed outstanding for accounting purposes). For this
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">purpose, Covenant Defeasance means that, with respect to the Notes and the Guarantees, the
Issuer, the Company and the Guarantors may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default under Section&nbsp;5.01 hereof,
but, except as specified above, the remainder of this Indenture and the Notes shall be unaffected
thereby. Subject to the satisfaction of the conditions set forth in Section&nbsp;8.03 hereof, Sections
5.01(iii) (with respect to the covenants so defeased), 5.01(iv), 5.01(v), 5.01(vi), 5.01(ix) and
5.01(x) shall not constitute Events of Default or Defaults hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.03<I>. Conditions to Legal or Covenant Defeasance. </I>The following shall be the
conditions to the application of either Section&nbsp;8.01 or Section&nbsp;8.02 hereof to the Notes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">In order to exercise either Legal Defeasance or Covenant Defeasance:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;the Issuer must irrevocably deposit, or cause to be deposited, with the Trustee, in trust,
for the benefit of the Holders of Notes, cash in U.S. dollars, U.S. Government Obligations, or a
combination thereof, in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants, to pay, without reinvestment, the principal of,
premium, if any, and interest and Additional Interest, if any, on the Notes on the stated maturity
thereof or on the applicable redemption date, as the case may be, and the Issuer must specify
whether the Notes are being defeased to maturity or to a particular redemption date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;in the case of Legal Defeasance, the Issuer must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that the Issuer has received from, or there
has been published by, the Internal Revenue Service a ruling, or there has been a change in the
applicable United States federal income tax law after the date of this Indenture, in either case to
the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of Notes
will not recognize income, gain or loss for United States federal income tax purposes as a result
of such Legal Defeasance, and will be subject to United States federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;in the case of Covenant Defeasance, the Issuer must deliver to the Trustee an Opinion of
Counsel reasonably acceptable to the Trustee confirming that the Holders of Notes will not
recognize income, gain or loss for United States federal income tax purposes as a result of such
Covenant Defeasance, and such
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Holders will be subject to United States federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant Defeasance had not
occurred;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;no Default or Event of Default shall have occurred and be continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to be
applied to such deposit) or insofar as Events of Default from bankruptcy or insolvency events are
concerned, at any time in the period ending on the 91<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day after the date of deposit;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than this Indenture) to
which the Issuer or any of its Restricted Subsidiaries is a party or by which the Issuer or any of
its Restricted Subsidiaries is bound;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;the Issuer must deliver to the Trustee an Officers&#146; Certificate stating that the deposit
was not made by the Issuer with the intent of preferring the Holders of Notes over other creditors
of the Issuer, or with the intent of defeating, hindering, delaying or defrauding creditors of the
Issuer or others; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;the Issuer must deliver to the Trustee an Officers&#146; Certificate and an Opinion of Counsel
in the United States reasonably acceptable to the Trustee, each stating that the conditions
precedent provided for or relating to Legal Defeasance or Covenant Defeasance, as applicable, in
the case of the Officers&#146; Certificate, in clauses (a)&nbsp;through (f)&nbsp;and, in the case of the Opinion
of Counsel, in clauses (b)&nbsp;and (c)&nbsp;of this Section&nbsp;8.03, have been complied with.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.04<I>. Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions. </I>Subject to Section&nbsp;8.05 hereof, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively, and solely for purposes of this Section&nbsp;8.04, the &#147;Trustee&#148;) pursuant to
Section&nbsp;8.03 or Section&nbsp;8.08 hereof in respect of the Notes shall be held in trust and applied by
the Trustee, in accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or indirectly or through any paying agent (including the Issuer acting as paying
agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, interest and Additional Interest, if any, but
such money need not be segregated from other funds except to the extent required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to
Section&nbsp;8.03 or Section&nbsp;8.08 hereof or the principal, premium, if any, interest and Additional
Interest, if any,
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">received in respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Subject to the preceding paragraph and Section&nbsp;7.07 herein, anything in this Article&nbsp;8 to the
contrary notwithstanding, the Trustee shall deliver or pay, solely to the extent available in such
trust, to the Issuer from time to time upon the request of the Issuer any money or non-callable
U.S. Government Obligations held by it as provided in Section&nbsp;8.03 or Section&nbsp;8.08 hereof which, in
the opinion of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee (which may be the opinion delivered under
Section&nbsp;8.03(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.05<I>. Repayment to Issuer. </I>Any money deposited with the Trustee or any paying agent,
or then held by the Issuer, in trust for the payment of the principal, premium, if any, interest
and Additional Interest, if any, on the Notes and remaining unclaimed for two years after such
principal, premium, if any, interest and Additional Interest, if any, has become due and payable
shall be paid to the Issuer on its request or (if then held by the Issuer) shall be discharged from
such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to
the Issuer for payment thereof, and all liability of the Trustee or such paying agent with respect
to such trust money, and all liability of the Issuer as trustee thereof, shall thereupon cease;
<I>provided, however, </I>that the Trustee or such paying agent, before being required to make any such
repayment, may at the expense of the Issuer cause to be published once, in <I>The New York Times </I>and
<I>The Wall Street Journal </I>(national editions), notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30&nbsp;days from the date of such
notification or publication, any unclaimed balance of such money then remaining will be repaid to
the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.06<I>. Reinstatement. </I>If the Trustee or paying agent is unable to apply any money or
non-callable U.S. Government Obligations in accordance with Section&nbsp;8.01, Section&nbsp;8.02 or Section
8.08 hereof, as the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the Issuer&#146;s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section&nbsp;8.01, Section&nbsp;8.02 or Section&nbsp;8.08 hereof until such time as the
Trustee or paying agent is permitted to apply all such money in accordance with Section&nbsp;8.01,
Section&nbsp;8.02 or Section&nbsp;8.08 hereof, as the case may be; <I>provided</I>, <I>however</I>, that, if the Issuer
makes any payment of principal of, premium, if any, or interest or Additional Interest, if any, on
any Note following the reinstatement of its obligations, the Issuer shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money held by the Trustee or
paying agent.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.07<I>. Survival. </I>The Trustee&#146;s rights under Article&nbsp;7 and this Article&nbsp;8 shall
survive the termination of this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.08<I>. Satisfaction and Discharge of Indenture. </I>If at any time (a) (i)&nbsp;the Issuer
shall have paid or caused to be paid the principal of, premium, if any, and interest and Additional
Interest, if any, on all the outstanding Notes (other than Notes which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section&nbsp;2.04) as and when the same shall
have become due and payable, or (ii)&nbsp;the Issuer shall have delivered to the Trustee for
cancellation all Notes theretofore authenticated (other than Notes which have been destroyed, lost
or stolen and which have been replaced or paid as provided in Section&nbsp;2.04), or (b) (i)&nbsp;the Notes
mature within one year, or all of them are to be called for redemption within one year under
arrangements satisfactory to the Trustee for giving the notice of redemption, (ii)&nbsp;the Issuer
irrevocably deposits in trust with the Trustee, as trust funds solely for the benefit of the
Holders, money or U.S. Government Obligations or a combination thereof sufficient, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written
certificate delivered to the Trustee, without consideration of any reinvestment, to pay principal
of and premium, interest and Additional Interest, if any, on the Notes to maturity or redemption,
as the case may be, and to pay all other sums payable by it hereunder, (iii)&nbsp;no Default has
occurred and is continuing on the date of the deposit, (iv)&nbsp;the deposit will not result in a breach
or violation of, or constitute a default under, this Indenture or any other agreement or instrument
to which the Issuer is a party or by which it is bound, and (v)&nbsp;the Issuer delivers to the Trustee
an Officers&#146; Certificate and an Opinion of Counsel, in each case stating that all conditions
precedent provided for herein relating to the satisfaction and discharge of this Indenture have
been complied with; and if, in any such case, the Issuer shall also pay or cause to be paid all
other sums payable hereunder by the Issuer (including all amounts, payable to the Trustee pursuant
to Section&nbsp;7.07), then, (x)&nbsp;after satisfying the conditions in clause (a), only the Company&#146;s
obligations under Sections&nbsp;7.07 and 8.04 will survive or (y)&nbsp;after satisfying the conditions in
clause (b), only the Issuer&#146;s or the Company&#146;s, as applicable, obligations in Article&nbsp;2 and
Sections&nbsp;4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 will survive, and, in either case, the
Trustee, on demand of the Issuer accompanied by an Officers&#146; Certificate and an Opinion of Counsel,
each stating that all conditions precedent relating to the satisfaction and discharge contemplated
by this provision have been complied with, and at the cost and expense of the Issuer, shall execute
proper instruments acknowledging such satisfaction and discharging of this Indenture and the
Security Documents and cause the release of all Liens on the Collateral granted under the Security
Documents. The Issuer agrees to reimburse the Trustee for any costs or expenses thereafter
reasonably and properly incurred, and to compensate the Trustee for any services thereafter
reasonably and properly rendered, by the Trustee in connection with this Indenture or the Notes.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 9<BR>
<FONT style="font-variant: SMALL-CAPS">Amendments, Supplements and Waivers</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.01<I>. Amendments Without Consent of Holders. </I>The Company, the Issuer, the
Guarantors, the Trustee, the Collateral Agent and Wilmington Trust Company (as applicable) may
amend, supplement or waive this Indenture, the Notes, the Guarantees or the Security Documents
without notice to or the consent of any Holder:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;to evidence the succession of another Person to the Issuer or the Company or successive
successions, and the assumption by the successor Person of the covenants, agreements and
obligations of the Issuer or the Company herein and in the Notes or the Guarantees;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;to add to the covenants of the Issuer or the Company such further covenants, restrictions,
conditions or provisions for the protection of the Holders of Notes, or to surrender any right or
power herein conferred upon the Issuer or the Company, and to make the occurrence, or the
occurrence and continuance, of a default in any such additional covenants, restrictions, conditions
or provisions an Event of Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; <I>provided</I>, <I>however</I>, that in respect of any such
additional covenants, restrictions, conditions or provisions such amendment, supplemented indenture
or waiver may provide for a particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may provide for an immediate
enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon
such an Event of Default or may limit the right of the Holders of a majority in aggregate principal
amount of the Notes to waive such an Event of Default;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;to cure any ambiguity, defect or inconsistency in this Indenture, the Notes, the
Guarantees or the Security Documents;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;to comply with any requirements of the Commission in connection with the qualification of
this Indenture under the Trust Indenture Act;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;to evidence and provide for the acceptance of appointment hereunder by a successor or
replacement Trustee or under the Security Documents of a successor or replacement Collateral Agent
or Mortgage Tax Collateral Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;to provide for uncertificated Notes in addition to, or in place of, Certificated Notes;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;to provide for any Guarantee of the Notes, to add security to or for the benefit of the
Notes and, in the case of the Security Documents, to or for the benefit of the other secured
parties named therein, or to confirm and evidence the
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">release, termination or discharge of any Guarantee of the Notes or Lien securing the Notes or
any Guarantee when such release, termination or discharge is permitted by this Indenture and the
Security Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(h)&nbsp;to provide for, or confirm the issuance of, Additional Notes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(i)&nbsp;to evidence compliance with Section&nbsp;4.14;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;to make any other change that does not adversely affect the legal rights of any Holder; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(k)&nbsp;to conform any provision of this Indenture, the Notes, the Guarantees or the Security
Documents to the &#145;&#145;Description of Notes&#146;&#146; contained in the Issuer&#146;s Confidential Offering Circular
dated October&nbsp;5, 2009 to the extent that the &#145;&#145;Description of Notes&#146;&#146; was intended to be a verbatim
recitation of a provision in this Indenture, the Notes, the Guarantees or the Security Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition, the Collateral Agent, the Trustee and Wilmington Trust Company (as applicable)
may amend the Security Documents to add additional secured parties to the extent Liens securing
Indebtedness and other Obligations held by such parties are permitted under this Indenture,
including that after so securing any such additional secured parties, the amount of First-Priority
Lien Obligations does not exceed the amounts permitted by clauses (i)(a) and (i)(b) of the
definition of &#147;Permitted Liens.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.02. <I>Amendments with Consent of Holders. </I>(a)&nbsp;Except as otherwise provided in
Sections&nbsp;5.01, 5.03 and 5.06 or Section&nbsp;9.02(b), the Company, the Issuer, the Guarantors, the
Trustee, the Collateral Agent and Wilmington Trust Company (when acting with respect to the Notes)
may amend or supplement this Indenture, the Notes, the Guarantees and the Security Documents with
the consent of the Holders of a majority in principal amount of the outstanding Notes (which may
include written consents obtained in connection with a tender offer or exchange offer for Notes),
and the Holders of a majority in principal amount of the outstanding Notes by written notice to the
Trustee may waive future compliance by the Company, the Issuer and the Guarantors with any
provision of this Indenture, the Notes, the Guarantees or the Security Documents (which may include
waivers obtained in connection with a tender offer or exchange offer for Notes).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Notwithstanding the provisions of paragraph (a)&nbsp;of this Section&nbsp;9.02, without the consent
of each Holder affected, an amendment or waiver may not:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;reduce the amount of Notes whose Holders must consent to an amendment, supplement
or waiver,
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;reduce the rate of, or extend the time for payment of, any interest, including
default interest, on any Note,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;reduce principal of, or change the fixed maturity of, any Note or alter the
provisions (including related definitions) with respect to redemptions described under
Article&nbsp;3 or with respect to mandatory offers to repurchase Notes described under Section
4.10 and Section&nbsp;4.12,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(iv)&nbsp;make any Note payable in money other than that stated in the Note,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(v)&nbsp;modify the ranking or priority of the Notes or any Guarantee,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">(vi)&nbsp;make any change in Sections&nbsp;5.03 or 5.06,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(vii)&nbsp;release any Guarantor from any of its obligations under its Guarantee or this
Indenture otherwise than in accordance with this Indenture,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(viii)&nbsp;waive a continuing Default or Event of Default in the payment of principal of,
premium, if any, or interest or Additional Interest, if any, on the Notes, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ix)&nbsp;effect a release of all or substantially all of the Collateral other than
pursuant to the terms of the Security Documents or as otherwise permitted under this
Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;It is not necessary for Holders to approve the particular form of any proposed amendment,
supplement or waiver, but is sufficient if their consent approves the substance thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;An amendment, supplement or waiver under this Section will become effective on receipt by
the Trustee of written consents from the Holders of the requisite percentage in principal amount of
the outstanding Notes. After an amendment, supplement or waiver under this Section becomes
effective, the Issuer (or the Trustee at the request and expense of the Issuer) will send to the
Holders affected thereby a notice briefly describing the amendment, supplement or waiver. The
Issuer will send supplemental indentures to Holders upon request. Any failure of the Issuer to
send such notice, or any defect therein, will not, however, in any way impair or affect the
validity of any such supplemental indenture, amendment or waiver.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.03. <I>Effect of Consent. </I>(a)&nbsp;After an amendment, supplement or waiver becomes
effective, it will bind every Holder unless it is of the type requiring the consent of each Holder
affected. If the amendment, supplement or
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">waiver is of the type requiring the consent of each Holder affected, the amendment, supplement
or waiver will bind each Holder that has consented to it and every subsequent Holder of a Note that
evidences the same debt as the Note of the consenting Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require
the Holder to deliver it to the Trustee so that the Trustee may place an appropriate notation of
the changed terms on the Note and return it to the Holder, or exchange it for a new Note that
reflects the changed terms. The Trustee may also place an appropriate notation on any Note
thereafter authenticated. However, the effectiveness of the amendment, supplement or waiver shall
not be affected or impaired by any failure to annotate or exchange Notes in this fashion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.04. <I>Trustee&#146;s Rights and Obligations. </I>The Trustee is entitled to receive, in
addition to the documents required by Section&nbsp;13.04, and will be fully protected in relying upon,
an Opinion of Counsel stating (i)&nbsp;that the execution of any amendment, supplement or waiver
authorized pursuant to this Article is authorized or permitted by this Indenture or the applicable
Security Document and (ii)&nbsp;in the case of an amendment, supplement or waiver in connection with
Section&nbsp;9.01(j) that such amendment, supplement or waiver does not adversely affect the legal
rights of any Holder of Notes affected by such change. If the Trustee has received such Opinion of
Counsel, it shall sign the amendment, supplement or waiver so long as the same does not adversely
affect the rights of the Trustee. The Trustee may, but is not obligated to, execute any amendment,
supplement or waiver that affects the Trustee&#146;s own rights, duties or immunities under this
Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.05. <I>Conformity with Trust Indenture Act. </I>Every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust Indenture Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;9.06. <I>Payments for Consents. </I>Neither the Issuer, the Company nor any of its
Subsidiaries or Affiliates may, directly or indirectly, pay or cause to be paid any consideration,
whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent,
waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid or agreed to be paid to all Holders of Notes that consent,
waive or agree to amend such term or provision within the time period set forth in the solicitation
documents relating to the consent, waiver or amendment.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 10<BR>
<FONT style="font-variant: SMALL-CAPS">&#091;reserved&#093;</FONT>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 11<BR>
<FONT style="font-variant: SMALL-CAPS">Collateral and Security</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11.01<I>. Security Documents. </I>The payment of the principal of and interest and premium,
if any, on the Notes when due, whether on an interest payment date, at maturity, by acceleration,
repurchase, redemption or otherwise and whether by the Issuer pursuant to the Notes or by any
Guarantor pursuant to its Guarantee, the payment of all other First-Priority Lien Obligations and
the performance of all other obligations of the Issuer and the Guarantors under this Indenture, the
Notes, the Guarantees and the Security Documents are secured by first-priority Liens on the
Collateral, subject to Permitted Liens, as provided in the Security Documents which the Issuer and
the Guarantors have entered into simultaneously with the execution of this Indenture, or in certain
circumstances, subsequent to the Issue Date, and will be secured as provided in the Security
Documents hereafter delivered as required or permitted by this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11.02<I>. Collateral Agent.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Issuer hereby appoints the Trustee to act as Collateral Agent, and the Collateral
Agent shall have the privileges, powers and immunities as set forth herein and in the Security
Documents. The Issuer and the Guarantors hereby agree that the Collateral Agent shall hold the
Collateral in trust for the benefit of all of the Holders and the Trustee, in each case, pursuant
to the terms of the Security Documents and the Collateral Agent is hereby authorized to execute and
deliver the Security Documents. Subject to the Intercreditor Agreements, the Collateral Agent is
authorized and empowered to appoint one or more co-Collateral Agents as it deems necessary or
appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Subject to Section&nbsp;7.01, neither the Trustee nor the Collateral Agent nor any of their
respective officers, directors, employees, attorneys or agents will be responsible or liable for
the existence, genuineness, value or protection of any Collateral, for the legality,
enforceability, effectiveness or sufficiency of the Security Documents, for the creation,
perfection, priority, sufficiency or protection of any First-Priority Lien, or for any defect or
deficiency as to any such matters, or for any failure to demand, collect, foreclose or realize upon
or otherwise enforce any of the First-Priority Liens or Security Documents or any delay in doing
so.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The Collateral Agent will be subject to such directions as may be given it by the Trustee
from time to time (as required or permitted by this Indenture). Except as directed by the Trustee
as required or permitted by this
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Indenture or as required or permitted by the Security Documents, the Collateral Agent will not
be obligated:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(1)&nbsp;to act upon directions purported to be delivered to it by any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(2)&nbsp;to foreclose upon or otherwise enforce any First-Priority Lien with respect to
the Notes and the Guarantees; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(3)&nbsp;to take any other action whatsoever with regard to any or all of the
First-Priority Liens with respect to the Notes and the Guarantees, Security Documents or
Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Collateral Agent will be accountable only for amounts that it actually receives as a
result of the enforcement of the First-Priority Liens with respect to the Notes and the Guarantees
or the Security Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;In acting as Collateral Agent or co-Collateral Agent, the Collateral Agent and each
co-Collateral Agent may rely upon and enforce for its own benefit each and all of the rights,
powers, immunities, indemnities and benefits of the Trustee under Article&nbsp;7 hereof, each of which
shall also be deemed to be for the benefit of the Collateral Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;At all times when the Trustee is not itself the Collateral Agent, the Issuer will deliver
to the Trustee copies of all Security Documents delivered to the Collateral Agent and copies of all
documents delivered to the Collateral Agent pursuant to the Security Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11.03<I>. Authorization of Actions to be Taken.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Each Holder of Notes, by its acceptance thereof, consents and agrees to the terms of each
Security Document, as originally in effect on the Issue Date and as amended, supplemented or
replaced from time to time in accordance with its terms or the terms of this Indenture, authorizes
and directs the Trustee and the Collateral Agent to execute and deliver the Security Documents to
which it is a party and authorizes and empowers the Trustee and the Collateral Agent to bind the
Holders of Notes and other holders of First-Priority Lien Obligations as set forth in the Security
Documents to which it is a party and to perform its obligations and exercise its rights and powers
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Collateral Agent and the Trustee are authorized and empowered to receive for the
benefit of the Holders of Notes any funds collected or distributed under the Security Documents to
which the Collateral Agent or Trustee is a party and to make further distributions of such funds to
the Holders of Notes according to the provisions of this Indenture.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Subject to the provisions of Section&nbsp;7.01 and Section&nbsp;7.02, the Trustee may, in its sole
discretion and without the consent of the Holders of Notes, direct, on behalf of the Holders of
Notes, the Collateral Agent to take all actions it deems necessary or appropriate in order to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(1)&nbsp;foreclose upon or otherwise enforce any or all of the First-Priority Liens;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(2)&nbsp;enforce any of the terms of the Security Documents to which the Collateral Agent
or Trustee is a party; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(3)&nbsp;collect and receive payment of any and all First-Priority Lien Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Subject to Section&nbsp;7.01 and Section&nbsp;7.02, the Trustee is authorized and empowered to institute
and maintain, or direct the Collateral Agent to institute and maintain, such suits and proceedings
as it may deem expedient to protect or enforce the First-Priority Liens or the Security Documents
to which the Collateral Agent or Trustee is a party or to prevent any impairment of Collateral by
any acts that may be unlawful or in violation of the Security Documents to which the Collateral
Agent or Trustee is a party or this Indenture, and such suits and proceedings as the Trustee or the
Collateral Agent may deem expedient to preserve or protect its interests and the interests of the
Holders of Notes in the Collateral, including power to institute and maintain suits or proceedings
to restrain the enforcement of or compliance with any legislative or other governmental enactment,
rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or
compliance with, such enactment, rule or order would impair the security interest hereunder or be
prejudicial to the interests of Holders of Notes, the Trustee or the Collateral Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11.04<I>. Release of First-Priority Liens.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The First-Priority Liens will be released, with respect to the Notes and the Guarantees:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(1)&nbsp;in whole, upon payment in full of the principal of, accrued and unpaid interest
and premium, if any, on the Notes and payment in full of all other First-Priority Lien
Obligations in respect thereof that are due and payable at or prior to the time such
principal, accrued and unpaid interest and premium, if any, on the Notes are paid;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(3)&nbsp;in whole, upon satisfaction and discharge of this Indenture pursuant to Section
8.08;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(4)&nbsp;in whole, upon a legal defeasance or covenant defeasance pursuant to Article&nbsp;8;
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(5)&nbsp;in part, as to any property constituting Collateral that (a)&nbsp;is sold or otherwise
disposed of by the Issuer or one of the Restricted Subsidiaries to any Person other than
the Company, the Issuer or any of its Restricted Subsidiaries (but excluding any
transaction subject to Section&nbsp;4.14 where the recipient is required to become the obligor
on the Notes or a Guarantee) in a transaction permitted by this Indenture, at the time of
such sale or disposition, to the extent of the interest sold or disposed of, (b)&nbsp;is owned
or at any time acquired by a Restricted Subsidiary that has been released from its
Guarantee under this Indenture, concurrently with the release of such Guarantee, or (c)
consists of securities of a Guarantor or of K. Hovnanian JV Holdings, L.L.C. to be
released as contemplated by Section&nbsp;4.18(d)(iii); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(6)&nbsp;in accordance with and subject to the provisions of Article&nbsp;9, with the consent
of Holders of a majority in principal amount of the outstanding Notes or each Holder
affected if required by Section&nbsp;9.02(b)(ix) (including consents obtained in connection
with a tender offer or exchange offer).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If an instrument confirming the release of the First-Priority Liens pursuant to Section
11.04(a) is requested by the Issuer or a Guarantor, then upon delivery to the Trustee of an
Officers&#146; Certificate requesting execution of such an instrument, accompanied by:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(1)&nbsp;an Opinion of Counsel confirming that such release is permitted by Section
11.04(a);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(2)&nbsp;all instruments requested by the Issuer to effectuate or confirm such release;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(3)&nbsp;such other certificates and documents as the Trustee or Collateral Agent may
reasonably request to confirm the matters set forth in Section&nbsp;11.04(a) that are required
by this Indenture or the Security Documents,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the Trustee will, if such instruments and documents are reasonably satisfactory to the Trustee and
Collateral Agent, instruct the Collateral Agent to execute and deliver, and the Collateral Agent
will promptly execute and deliver, such instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;All instruments effectuating or confirming any release of any First-Priority Liens will
have the effect solely of releasing such First-Priority Liens as to the Collateral described
therein, on customary terms and without any recourse, representation, warranty or liability
whatsoever.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Issuer will bear and pay all costs and expenses associated with any release of
First-Priority Liens pursuant to this Section&nbsp;11.04, including all reasonable fees and
disbursements of any attorneys or representatives acting for the Trustee or for the Collateral
Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;11.05<I>. Filing, Recording and Opinions.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Issuer will comply with the provisions of TIA &#167;314(b) and &#167;314(d), in each case
following qualification of this Indenture pursuant to the TIA. Any certificate or opinion required
by TIA &#167;314(d) may be made by an Officer of the Issuer except in cases where TIA &#167;314(d) requires
that such certificate or opinion be made by an independent engineer, appraiser or other expert, who
shall be reasonably satisfactory to the Trustee. Notwithstanding anything to the contrary herein,
the Issuer and the Guarantors will not be required to comply with all or any portion of TIA &#167;314(d)
if they determine, in good faith based on advice of counsel (which may be internal counsel), that
under the terms of that section and/or any interpretation or guidance as to the meaning thereof of
the Commission and its staff, including &#147;no action&#148; letters or exemptive orders, all or any portion
of TIA &#167;314(d) is inapplicable to the released Collateral. Following the qualification of this
Indenture pursuant to the TIA, to the extent the Issuer is required to furnish to the Trustee an
Opinion of Counsel pursuant to TIA &#167;314(b)(2), the Issuer will furnish such opinion prior to each
October&nbsp;20.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any release of Collateral permitted by Section&nbsp;11.04 hereof or the Security Documents will be
deemed not to impair the Liens under this Indenture and the Security Documents in contravention
thereof and any person that is required to deliver a certificate or opinion pursuant to Section
314(d) of the TIA or otherwise under this Indenture or the Security Documents, shall be entitled to
rely upon the foregoing as a basis for delivery of such certificate or opinion. The Trustee may,
to the extent permitted by Section&nbsp;7.01 and 7.02 hereof, accept as conclusive evidence of
compliance with the foregoing provisions the appropriate statements contained in such documents and
opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If any Collateral is released in accordance with this Indenture or any Security Document
at a time when the Trustee is not itself also the Collateral Agent and if the Issuer has delivered
the certificates and documents required by the Security Documents and permitted to be delivered by
Section&nbsp;11.04 (if any), the Trustee will determine whether it has received all documentation
required by TIA &#167;314(d) in connection with such release and, based on such determination and the
Opinion of Counsel delivered pursuant to Section&nbsp;11.04, if any, will, upon request, deliver a
certificate to the Collateral Agent setting forth such determination.
</DIV>
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<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 12<BR>
<FONT style="font-variant: SMALL-CAPS">Release of Issuer and Guarantors</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;12.01<I>. Release of Issuer. </I>(a)&nbsp;The Issuer shall be released from its obligations
under this Indenture and the Notes, without the consent of the Holders, if: (1)&nbsp;the Company or any
successor to the Company has assumed the obligations of the Issuer under this Indenture and the
Notes, by supplemental indenture executed and delivered to the Trustee and satisfactory in form to
the Trustee, (2)&nbsp;the Company delivers an Opinion of Counsel to the Trustee to the effect that
Holders will not recognize income, gain or loss for United States federal income tax purposes as a
result of such release and such Holders will be subject to United States federal income tax on the
same amounts, in the same manner and at the same times as would have been the case if such release
had not occurred and (3)&nbsp;the Issuer shall (w)&nbsp;become a Guarantor subject to the provisions of
Article&nbsp;6 and Section&nbsp;4.11 hereof, (x)&nbsp;execute a Guarantee, (y)&nbsp;execute a supplemental indenture
evidencing its Guarantee and (z)&nbsp;deliver an Opinion of Counsel to the Trustee to the effect that
the supplemental indenture has been duly authorized, executed and delivered by the Issuer and
constitutes a valid and binding obligation of the Issuer, enforceable against the Issuer in
accordance with its terms (subject to customary exceptions).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;A Guarantor may be released from its obligations under this Indenture, the Notes and its
Guarantee in accordance with the provisions contained in Section&nbsp;6.03 herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 13<BR>
<FONT style="font-variant: SMALL-CAPS">Miscellaneous</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.01. <I>Trust Indenture Act of 1939. </I>The Indenture shall incorporate and be governed
by the provisions of the Trust Indenture Act that are required to be part of and to govern
indentures qualified under the Trust Indenture Act. To the extent permitted by applicable law, in
the event of any inconsistency between the terms of the Notes and the terms of this Indenture, the
terms of this Indenture will control; <I>provided however </I>that provisions of TIA &#167;314(b) and &#167;314(d),
in each case, shall not apply until qualification of this Indenture under the TIA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.02. <I>Holder Communications; Holder Actions. </I>(a)&nbsp;The rights of Holders to
communicate with other Holders with respect to this Indenture or the Notes are as provided by the
Trust Indenture Act, and the Company and the Issuer shall comply with the requirements of Trust
Indenture Act &#167; 312(a). Neither the Company, the Issuer nor the Trustee will be held accountable
by reason of any disclosure of information as to names and addresses of Holders made pursuant to
the Trust Indenture Act.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;(i)&nbsp;any request, demand, authorization, direction, notice, consent to amendment,
supplement or waiver or other action provided by this Indenture to be given or taken by a Holder
(an &#147;<B>act</B>&#148;) may be evidenced by an instrument signed by the Holder delivered to the Trustee. The
fact and date of the execution of the instrument, or the authority of the person executing it, may
be proved in any manner that the Trustee deems sufficient.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;The Trustee may make reasonable rules for action by or at a meeting of Holders,
which will be binding on all the Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Any act by the Holder of any Note binds that Holder and every subsequent Holder of a Note
that evidences the same debt as the Note of the acting Holder, even if no notation thereof appears
on the Note. Subject to Section&nbsp;13.02(d), a Holder may revoke an act as to its Notes, but only if
the Trustee receives the notice of revocation before the date the amendment or waiver or other
consequence of the act becomes effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The Issuer may, but is not obligated to, fix a record date (which need not be within the
time limits otherwise prescribed by Trust Indenture Act &#167; 316(c)) for the purpose of determining
the Holders entitled to act with respect to any amendment or waiver or in any other regard, except
that during the continuance of an Event of Default, only the Trustee may set a record date as to
notices of Default, any declaration or acceleration or any other remedies or other consequences of
the Event of Default. If a record date is fixed, those Persons that were Holders at such record
date and only those Persons will be entitled to act, or to revoke any previous act, whether or not
those Persons continue to be Holders after the record date. No act will be valid or effective for
more than 90&nbsp;days after the record date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.03. <I>Notices. </I>(a)&nbsp;Any notice or communication to the Issuer or the Company will be
deemed given if in writing (i)&nbsp;when delivered in person or (ii)&nbsp;five days after mailing when mailed
by first class mail or (iii)&nbsp;when sent by facsimile transmission, with transmission confirmed.
Notices or communications to a Guarantor will be deemed given if given to the Company. Any notice
to the Trustee will be effective only upon receipt. In each case the notice or communication
should be addressed as follows:
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>if to the Issuer or the Company</I>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">K. Hovnanian Enterprises, Inc.<br>
110 West Front Street<br>
P.O. Box 500<br>
Red Bank, NJ 07701<br>
Facsimile: (732)&nbsp;383-2945<br>
Attention: General Counsel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>if to the Trustee:</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Wilmington Trust Company<br>
Rodney Square North<br>
1100 North Market Street<br>
Wilmington, DE 19890-1600<br>
Facsimile: 302-636-4149<br>
Attention: Corporate Client Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The Issuer or the Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Except as otherwise expressly provided with respect to published notices, any notice or
communication to a Holder will be deemed given when mailed to the Holder at its address as it
appears on the Register by first class mail or, as to any Global Note registered in the name of DTC
or its nominee, as agreed by the Issuer, the Trustee and DTC. Copies of any notice or
communication to a Holder, if given by the Issuer or the Company, will be mailed to the Trustee at
the same time. Defect in mailing a notice or communication to any particular Holder will not
affect its sufficiency with respect to other Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Where this Indenture provides for notice, the notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and the waiver will be
the equivalent of the notice. Waivers of notice by Holders must be filed with the Trustee, but
such filing is not a condition precedent to the validity of any action taken in reliance upon such
waivers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.04. <I>Certificate and Opinion as to Conditions Precedent. </I>Upon any request or
application by the Issuer or the Company to the Trustee to take any action under this Indenture,
the Issuer or the Company will furnish to the Trustee:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;an Officers&#146; Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;an Opinion of Counsel stating that all such conditions precedent relating to the
proposed action have been complied with.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.05. <I>Statements Required in Certificate or Opinion. </I>Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this Indenture must
include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;a statement that each person signing the certificate or opinion has read the
covenant or condition and the related definitions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;a brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in the certificate or opinion is based;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;a statement that, in the opinion of each such person, that person has made such
examination or investigation as is necessary to enable the person to express an informed
opinion as to whether or not such covenant or condition has been complied with; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;a statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with, <I>provided</I>, that an Opinion of Counsel may
rely on an Officers&#146; Certificate or certificates of public officials with respect to
matters of fact.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any certificate, statement or opinion of an Officer of the Issuer or the Company, as
applicable, may be based, insofar as it relates to legal matters, upon a certificate or opinion of
or representations by counsel, unless such Officer knows that the certificate or opinion or
representations with respect to the matters upon which such certificate, statement or opinion may
be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the
same are erroneous. Any certificate, statement or Opinion of Counsel may be based, insofar as it
relates to factual matters on information with respect to which is in the possession of the Issuer,
or the Company, as applicable, upon the certificate, statement or opinion of or representations by
an officer or officers of the Issuer, or the Company, as applicable, unless such counsel knows that
the certificate, statement or opinion or representations with respect to the matters upon which
such certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable care should know that the same are erroneous.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any certificate, statement or opinion of an Officer of the Issuer or the Company, as
applicable, or of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of accountants in the employ
of the Issuer or the Company, as applicable, unless such Officer or counsel, as the case may be,
knows that the certificate or opinion or representations with respect to the accounting matters
upon which such certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->105<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any certificate or opinion of any independent firm of public accountants filed with and
directed to the Trustee shall contain a statement that such firm is independent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.06. <I>Payment Date Other Than a Business Day. </I>If any payment with respect to a
payment of any principal of, premium, if any, or interest or Additional Interest, if any, on any
Note (including any payment to be made on any date fixed for redemption or purchase of any Note) is
due on a day which is not a Business Day, then the payment need not be made on such date, but may
be made on the next Business Day with the same force and effect as if made on such date, and no
interest will accrue for the intervening period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.07. <I>Governing Law. </I>This Indenture, the Guarantees and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.08<I>. No Adverse Interpretation of Other Agreements. </I>The Indenture may not be used
to interpret another indenture or loan or debt agreement of the Issuer, the Company or any
Subsidiary of the Company, and no such indenture or loan or debt agreement may be used to interpret
this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.09. <I>Successors. </I>All agreements of the Issuer, the Company or any Guarantor in
this Indenture and the Notes will bind its successors. All agreements of the Trustee in this
Indenture will bind its successor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.10. <I>Duplicate Originals. </I>The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.11. <I>Separability. </I>To the extent permitted by applicable law, in case any
provision in this Indenture or in the Notes is invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions will not in any way be affected or impaired
thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.12. <I>Table of Contents and Headings. </I>The Table of Contents, Cross-Reference Table
and headings of the Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Indenture and in no way modify or restrict
any of the terms and provisions of this Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.13. <I>No Liability of Directors, Officers, Employees, Partners, Incorporators and
Stockholders. </I>No recourse under or upon any obligation, covenant or agreement contained in this
Indenture, or in the Notes, or because of any indebtedness evidenced thereby, shall be had against
any incorporator, as such or against any past, present or future stockholder, officer, director or
employee, as such, of the Issuer, the Company or the Guarantors or any partner of
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->106<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the Issuer, the Company or the Guarantors or of any successor, either directly or through the
Issuer, the Company or the Guarantors or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise, all such liability being expressly waived and released by the acceptance
of the Notes by the Holders thereof and as part of the consideration for the issue of the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;13.14<I>. Provisions of Indenture for the Sole Benefit of Parties and Holders of Notes.</I>
Nothing in this Indenture or in the Notes, expressed or implied, shall give or be construed to give
to any Person, other than the parties hereto and their successors and the Holders of Notes, any
legal or equitable right, remedy or claim under this Indenture or under any covenant or provision
herein contained, all such covenants and provisions being for the sole benefit of the parties
hereto and their successors and of the Holders of Notes.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>&#091;Signature page follows&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->107<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the parties hereto have caused the Indenture to be duly executed as of the
date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC., as Issuer<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.,<BR>
as the Company and a Guarantor<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">On behalf of each entity named in Schedule&nbsp;A hereto, as a Guarantor<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Signature page to the Indenture&#093;
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->108<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><U>SCHEDULE A</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>GUARANTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Auddie Enterprises, L.L.C.<BR>
Builder Services NJ, L.L.C.<BR>
Builder Services NY, L.L.C.<BR>
Builder Services PA, L.L.C.<BR>
Dulles Coppermine, L.L.C.<BR>
Eastern Title Agency, Inc.<BR>
F&#038;W Mechanical Services, L.L.C.<BR>
Founders Title Agency of Maryland, L.L.C.<BR>
Founders Title Agency, Inc.<BR>
Governor&#146;s Abstract Co., Inc.<BR>
Homebuyers Financial Services, L.L.C.<BR>
Hovnanian Developments of Florida, INC.<BR>
Hovnanian Land Investment Group of California, L.L.C.<BR>
Hovnanian Land Investment Group of Florida, L.L.C.<BR>
Hovnanian Land Investment Group of Georgia, L.L.C.<BR>
Hovnanian Land Investment Group of Maryland, L.L.C.<BR>
Hovnanian Land Investment Group of New Jersey, L.L.C.<BR>
Hovnanian Land Investment Group of North Carolina, L.L.C.<BR>
Hovnanian Land Investment Group of Pennsylvania, L.L.C.<BR>
Hovnanian Land Investment Group of Texas LLC<BR>
Hovnanian Land Investment Group of Virginia, L.L.C.<BR>
Hovnanian Land Investment Group, L.L.C.<BR>
K. H. San Marcos Conservancy Holdings, L.L.C.<BR>
K. HOV International, Inc.<BR>
K. HOV IP, II, Inc.<BR>
K. HOV IP, Inc.<BR>
K. Hovnanian Acquisitions, Inc.<BR>
K. Hovnanian at 4S, LLC<BR>
K. Hovnanian at Acqua Vista, LLC<BR>
K. Hovnanian at Aliso, LLC<BR>
K. Hovnanian at Allenberry, L.L.C.<BR>
K. Hovnanian at Allentown, L.L.C.<BR>
K. Hovnanian at Almond Estates, LLC<BR>
K. Hovnanian at Arbor Heights, LLC<BR>
K. Hovnanian at Avenue One, L.L.C.<BR>
K. Hovnanian at Bakersfield 463, L.L.C.<BR>
K. Hovnanian at Barnegat I, L.L.C.<BR>
K. Hovnanian at Barnegat II, L.L.C.<BR>
K. Hovnanian at Bella Lago, LLC<BR>
K. Hovnanian at Berkeley, L.L.C.<BR>
K. Hovnanian at Bernards IV, Inc.

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Bernards V, L.L.C.<BR>
K. Hovnanian at Blue Heron Pines, L.L.C.<BR>
K. Hovnanian at Branchburg III, INC.<BR>
K. Hovnanian at Bridgeport, Inc.<BR>
K. Hovnanian at Bridgewater I, L.L.C.<BR>
K. Hovnanian at Bridgewater VI, Inc.<BR>
K. Hovnanian at Broad and Walnut, L.L.C.<BR>
K. Hovnanian at Burlington III, Inc.<BR>
K. Hovnanian at Burlington, Inc.<BR>
K. Hovnanian at Calabria, Inc.<BR>
K. Hovnanian at Camden I, L.L.C.<BR>
K. Hovnanian at Cameron Chase, Inc.<BR>
K. Hovnanian at Camp Hill, L.L.C.<BR>
K. Hovnanian at Capistrano, L.L.C.<BR>
K. Hovnanian at Carmel Del Mar, Inc.<BR>
K. Hovnanian at Carmel Village, LLC<BR>
K. Hovnanian at Castile, Inc.<BR>
K. Hovnanian at Cedar Grove III, L.L.C.<BR>
K. Hovnanian at Cedar Grove IV, L.L.C.<BR>
K. Hovnanian at Chaparral, Inc.<BR>
K. Hovnanian at Charter Way, LLC<BR>
K. Hovnanian at Chester I, L.L.C.<BR>
K. Hovnanian at Chesterfield, L.L.C.<BR>
K. Hovnanian at Cielo, L.L.C.<BR>
K. Hovnanian at Clarkstown, INC.<BR>
K. Hovnanian at Clifton II, L.L.C.<BR>
K. Hovnanian at Clifton, L.L.C.<BR>
K. Hovnanian at Coastline, L.L.C.<BR>
K. Hovnanian at Cortez Hill, LLC<BR>
K. Hovnanian at Cranbury, L.L.C.<BR>
K. Hovnanian at Crestline, Inc.<BR>
K. Hovnanian at Curries Woods, L.L.C.<BR>
K. Hovnanian at Denville, L.L.C.<BR>
K. Hovnanian at Deptford Township, L.L.C.<BR>
K. Hovnanian at Dominguez Hills, Inc.<BR>
K. Hovnanian at Dover, L.L.C.<BR>
K. Hovnanian at East Brandywine, L.L.C.<BR>
K. Hovnanian at East Whiteland I, Inc.<BR>
K. Hovnanian at Eastlake, LLC<BR>
K. Hovnanian at Edgewater II, L.L.C.<BR>
K. Hovnanian at Edgewater, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch II, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-2<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Elk Township, L.L.C.<BR>
K. Hovnanian at Encinitas Ranch, LLC<BR>
K. Hovnanian at Evergreen, L.L.C.<BR>
K. Hovnanian at Ewing, L.L.C.<BR>
K. Hovnanian at Fiddyment Ranch, LLC<BR>
K. Hovnanian at Fifth Avenue, L.L.C.<BR>
K. Hovnanian at Florence I, L.L.C.<BR>
K. Hovnanian at Florence II, L.L.C.<BR>
K. Hovnanian at Forest Meadows, L.L.C.<BR>
K. Hovnanian at Forks Twp. I, L.L.C.<BR>
K. Hovnanian at Franklin, L.L.C.<BR>
K. Hovnanian at Freehold Township I, Inc.<BR>
K. Hovnanian at Freehold Township, L.L.C.<BR>
K. Hovnanian at Fresno, LLC<BR>
K. Hovnanian at Galloway, L.L.C.<BR>
K. Hovnanian at Gaslamp Square, L.L.C.<BR>
K. Hovnanian at Great Notch, L.L.C.<BR>
K. Hovnanian at Gridley, LLC<BR>
K. Hovnanian at Guttenberg, L.L.C.<BR>
K. Hovnanian at Hackettstown II, L.L.C.<BR>
K. Hovnanian at Hackettstown, Inc.<BR>
K. Hovnanian at Hamburg Contractors, L.L.C.<BR>
K. Hovnanian at Hamburg, L.L.C.<BR>
K. Hovnanian at Hawthorne, L.L.C.<BR>
K. Hovnanian at Hazlet, L.L.C.<BR>
K. Hovnanian at Hershey&#146;s Mill, Inc.<BR>
K. Hovnanian at Highland Shores, L.L.C.<BR>
K. Hovnanian at Highland Vineyards, Inc.<BR>
K. Hovnanian at Hilltop, L.L.C.<BR>
K. Hovnanian at Hopewell IV, Inc.<BR>
K. Hovnanian at Hopewell VI, Inc.<BR>
K. Hovnanian at Howell Township, Inc.<BR>
K. Hovnanian at Hudson Pointe, L.L.C.<BR>
K. Hovnanian at Jackson I, L.L.C.<BR>
K. Hovnanian at Jackson, L.L.C.<BR>
K. Hovnanian at Jaeger Ranch, LLC<BR>
K. Hovnanian at Jersey City IV, L.L.C.<BR>
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.<BR>
K. Hovnanian at Keyport, L.L.C.<BR>
K. Hovnanian at King Farm, L.L.C.<BR>
K. Hovnanian at Kings Grant I, Inc.<BR>
K. Hovnanian at La Costa Greens, L.L.C.<BR>
K. Hovnanian at La Costa, LLC<BR>
K. Hovnanian at La Habra Knolls, LLC<BR>
K. Hovnanian at La Laguna, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at La Terraza, Inc.<BR>
K. Hovnanian at Lafayette Estates, L.L.C.<BR>
K. Hovnanian at Lake Rancho Viejo, LLC<BR>
K. Hovnanian at Lake Ridge Crossing, L.L.C.<BR>
K. Hovnanian at Lake Terrapin, L.L.C.<BR>
K. Hovnanian at Lakewood, Inc.<BR>
K. Hovnanian at Landmark, LLC<BR>
K. Hovnanian at LaPaz, LLC<BR>
K. Hovnanian at Larkspur, LLC<BR>
K. Hovnanian at Lawrence V, L.L.C.<BR>
K. Hovnanian at Lee Square, L.L.C.<BR>
K. Hovnanian at Linwood, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Contractors, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor III, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor, L.L.C<BR>
K. Hovnanian at Live Oak II, LLC<BR>
K. Hovnanian at Long Branch I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township II, L.L.C.<BR>
K. Hovnanian at Lower Makefield Township I, L.L.C.<BR>
K. Hovnanian at Lower Moreland I, L.L.C.<BR>
K. Hovnanian at Lower Moreland II, L.L.C.<BR>
K. Hovnanian at Lower Moreland III, L.L.C.<BR>
K. Hovnanian at Lower Saucon, Inc.<BR>
K. Hovnanian at Macungie, L.L.C.<BR>
K. Hovnanian at Mahwah II, INC.<BR>
K. Hovnanian at Mahwah VI, Inc.<BR>
K. Hovnanian at Mahwah VII, Inc.<BR>
K. Hovnanian at Malan Park, L.L.C.<BR>
K. Hovnanian at Manalapan III, L.L.C.<BR>
K. Hovnanian at Manalapan, Inc.<BR>
K. Hovnanian at Mansfield I, L.L.C.<BR>
K. Hovnanian at Mansfield II, L.L.C.<BR>
K. Hovnanian at Mansfield III, L.L.C.<BR>
K. Hovnanian at Maple Avenue, L.L.C.<BR>
K. Hovnanian at Marlboro II, Inc.<BR>
K. Hovnanian at Marlboro Township III, Inc.<BR>
K. Hovnanian at Marlboro Township IV, Inc.<BR>
K. Hovnanian at Marlboro Township IX, L.L.C.<BR>
K. Hovnanian at Marlboro Township V, L.L.C.<BR>
K. Hovnanian at Marlboro Township VIII, L.L.C.<BR>
K. Hovnanian at Marlboro VI, L.L.C.<BR>
K. Hovnanian at Marlboro VII, L.L.C.<BR>
K. Hovnanian at Matsu, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Melanie Meadows, LLC<BR>
K. Hovnanian at Mendham Township, L.L.C.<BR>
K. Hovnanian at Menifee, LLC<BR>
K. Hovnanian at Middle Township II, L.L.C.<BR>
K. Hovnanian at Middle Township, L.L.C.<BR>
K. Hovnanian at Middletown II, L.L.C.<BR>
K. Hovnanian at Middletown, L.L.C.<BR>
K. Hovnanian at Millville I, L.L.C.<BR>
K. Hovnanian at Millville II, L.L.C.<BR>
K. Hovnanian at Monroe II, INC.<BR>
K. Hovnanian at Monroe III, L.L.C.<BR>
K. Hovnanian at Monroe IV, L.L.C.<BR>
K. Hovnanian at Monroe NJ, L.L.C.<BR>
K. Hovnanian at Montgomery I, Inc.<BR>
K. Hovnanian at Montvale, L.L.C.<BR>
K. Hovnanian at Mosaic, LLC<BR>
K. Hovnanian at Mt. Olive Township, L.L.C.<BR>
K. Hovnanian at Muirfield, LLC<BR>
K. Hovnanian at New Brunswick Urban Renewal, L.L.C.<BR>
K. Hovnanian at New Windsor, L.L.C.<BR>
K. Hovnanian at North Bergen. L.L.C.<BR>
K. Hovnanian at North Brunswick VI, L.L.C.<BR>
K. Hovnanian at North Caldwell II, L.L.C.<BR>
K. Hovnanian at North Caldwell III, L.L.C.<BR>
K. Hovnanian at North Caldwell, L.L.C.<BR>
K. Hovnanian at North Haledon, L.L.C.<BR>
K. Hovnanian at North Wildwood, L.L.C.<BR>
K. Hovnanian at Northampton. L.L.C.<BR>
K. Hovnanian at Northern Westchester, INC.<BR>
K. Hovnanian at Northfield, L.L.C.<BR>
K. Hovnanian at Northlake, Inc.<BR>
K. Hovnanian at Ocean Township, Inc<BR>
K. Hovnanian at Ocean Walk, INC.<BR>
K. Hovnanian at Oceanport, L.L.C.<BR>
K. Hovnanian at Old Bridge, L.L.C.<BR>
K. Hovnanian at Olde Orchard, LLC<BR>
K. Hovnanian at Pacific Bluffs, LLC<BR>
K. Hovnanian at Paramus, L.L.C.<BR>
K. Hovnanian at Park Lane, LLC<BR>
K. Hovnanian at Parkside, LLC<BR>
K. Hovnanian at Parsippany-Troy Hills, L.L.C.<BR>
K. Hovnanian at Perkiomen I, Inc.<BR>
K. Hovnanian at Perkiomen II, Inc.<BR>
K. Hovnanian at Philadelphia II, L.L.C.<BR>
K. Hovnanian at Philadelphia III, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Philadelphia IV, L.L.C.<BR>
K. Hovnanian at Piazza D&#146;Oro, L.L.C.<BR>
K. Hovnanian at Piazza Serena, L.L.C<BR>
K. Hovnanian at Pittsgrove, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal IV, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal V, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VI, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VII, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VIII, L.L.C.<BR>
K. Hovnanian at Prado, L.L.C.<BR>
K. Hovnanian at Rancho Cristianitos, Inc.<BR>
K. Hovnanian at Rancho Santa Margarita, LLC<BR>
K. Hovnanian at Randolph I, L.L.C.<BR>
K. Hovnanian at Rapho, L.L.C<BR>
K. Hovnanian at Readington II, L.L.C.<BR>
K. Hovnanian at Red Bank, L.L.C.<BR>
K. Hovnanian at Reservoir Ridge, Inc.<BR>
K. Hovnanian at Ridgemont, L.L.C.<BR>
K. Hovnanian at Ridgestone, L.L.C.<BR>
K. Hovnanian at Riverbend, LLC<BR>
K. Hovnanian at Rivercrest, LLC<BR>
K. Hovnanian at Roderuck, L.L.C.<BR>
K. Hovnanian at Rosemary Lantana, L.L.C.<BR>
K. Hovnanian at Rowland Heights, LLC<BR>
K. Hovnanian at Sage, L.L.C.<BR>
K. Hovnanian at San Sevaine, Inc.<BR>
K. Hovnanian at Santa Nella, LLC<BR>
K. Hovnanian at Saratoga, Inc.<BR>
K. Hovnanian at Sawmill, Inc.<BR>
K. Hovnanian at Sayreville, L.L.C.<BR>
K. Hovnanian at Scotch Plains II, INC.<BR>
K. Hovnanian at Scotch Plains, L.L.C.<BR>
K. Hovnanian at Sierra Estates, LLC<BR>
K. Hovnanian at Silver Spring, L.L.C.<BR>
K. Hovnanian at Skye Isle, LLC<BR>
K. Hovnanian at Smithville III, L.L.C.<BR>
K. Hovnanian at Smithville, Inc.<BR>
K. Hovnanian at Somers Point, L.L.C.<BR>
K. Hovnanian at South Brunswick V, Inc.<BR>
K. Hovnanian at South Brunswick, L.L.C.<BR>
K. Hovnanian at Sparta, L.L.C.<BR>
K. Hovnanian at Springco, L.L.C.<BR>
K. Hovnanian at Stone Canyon, Inc.<BR>
K. Hovnanian at Stony Point, INC.<BR>
K. Hovnanian at Sunsets, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Sycamore, Inc.<BR>
K. Hovnanian at Tannery Hill, Inc.<BR>
K. Hovnanian at Teaneck, L.L.C.<BR>
K. Hovnanian at The Bluff, Inc.<BR>
K. Hovnanian at The Crosby, LLC<BR>
K. Hovnanian at The Gables, LLC<BR>
K. Hovnanian at The Monarch, L.L.C.<BR>
K. Hovnanian at The Preserve, LLC<BR>
K. Hovnanian at Thompson Ranch, LLC<BR>
K. Hovnanian at Thornbury, Inc.<BR>
K. Hovnanian at Tierrasanta, Inc.<BR>
K. Hovnanian at Trail Ridge, LLC<BR>
K. Hovnanian at Trenton, L.L.C.<BR>
K. Hovnanian at Trovata, Inc.<BR>
K. Hovnanian at Union Township I, Inc.<BR>
K. Hovnanian at Union Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township I, Inc.<BR>
K. Hovnanian at Upper Freehold Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township III, L.L.C.<BR>
K. Hovnanian at Upper Makefield I, Inc.<BR>
K. Hovnanian at Upper Uwchlan II, L.L.C.<BR>
K. Hovnanian at Upper Uwchlan, L.L.C.<BR>
K. Hovnanian at Vail Ranch, Inc.<BR>
K. Hovnanian at Valle Del Sol, LLC<BR>
K. Hovnanian at Verona Urban Renewal, L.L.C.<BR>
K. Hovnanian at Victorville, L.L.C.<BR>
K. Hovnanian at Vineland, L.L.C.<BR>
K. Hovnanian at Vista Del Sol, L.L.C.<BR>
K. Hovnanian at Wall Township VI, Inc.<BR>
K. Hovnanian at Wall Township VIII, Inc.<BR>
K. Hovnanian at Wanaque, L.L.C.<BR>
K. Hovnanian at Warren Township, L.L.C.<BR>
K. Hovnanian at Washington, L.L.C.<BR>
K. Hovnanian at Washingtonville, INC.<BR>
K. Hovnanian at Wayne III, Inc.<BR>
K. Hovnanian at Wayne IX, L.L.C.<BR>
K. Hovnanian at Wayne V, Inc.<BR>
K. Hovnanian at Wayne, VIII, L.L.C.<BR>
K. Hovnanian at West Bradford, L.L.C.<BR>
K. Hovnanian at West Milford, L.L.C.<BR>
K. Hovnanian at West View Estates, L.L.C.<BR>
K. Hovnanian at West Windsor, L.L.C.<BR>
K. Hovnanian at Westshore, LLC<BR>
K. Hovnanian at Wheeler Ranch, LLC<BR>
K. Hovnanian at Wildrose, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Wildwood Bayside, L.L.C.<BR>
K. Hovnanian at Willow Brook, L.L.C.<BR>
K. Hovnanian at Winchester, LLC<BR>
K. Hovnanian at Woodcreek West, LLC<BR>
K. Hovnanian at Woodhill Estates, L.L.C.<BR>
K. Hovnanian at Woolwich I, L.L.C.<BR>
K. Hovnanian Cambridge Homes, L.L.C.<BR>
K. Hovnanian Central Acquisitions, L.L.C.<BR>
K. Hovnanian Classics CIP, L.L.C.<BR>
K. Hovnanian Classics, L.L.C.<BR>
K. Hovnanian Communities, Inc.<BR>
K. Hovnanian Companies Metro D.C. North, L.L.C.<BR>
K. Hovnanian Companies Northeast, Inc.<BR>
K. Hovnanian Companies of California, Inc.<BR>
K. Hovnanian Companies of Maryland, Inc.<BR>
K. Hovnanian Companies of New York, Inc.<BR>
K. Hovnanian Companies of Pennsylvania, Inc.<BR>
K. Hovnanian Companies of Southern California, Inc.<BR>
K. Hovnanian Companies of Virginia, Inc.<BR>
K. Hovnanian Companies, LLC<BR>
K. Hovnanian Connecticut Acquisitions, L.L.C.<BR>
K. Hovnanian Construction II, Inc.<BR>
K. Hovnanian Construction III, Inc.<BR>
K. Hovnanian Construction Management, Inc.<BR>
K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.<BR>
K. Hovnanian Delaware Acquisitions, L.L.C.<BR>
K. Hovnanian Developments of Arizona, Inc.<BR>
K. Hovnanian Developments of California, Inc.<BR>
K. Hovnanian Developments of Connecticut, Inc.<BR>
K. Hovnanian Developments of D.C., Inc.<BR>
K. Hovnanian Developments of Delaware, Inc.<BR>
K. Hovnanian Developments of Georgia, Inc.<BR>
K. Hovnanian Developments of Illinois, Inc.<BR>
K. Hovnanian Developments of Indiana, Inc.<BR>
K. Hovnanian Developments of Kentucky, Inc.<BR>
K. Hovnanian Developments of Maryland, Inc.<BR>
K. Hovnanian Developments of Michigan, Inc.<BR>
K. Hovnanian Developments of Minnesota, Inc.<BR>
K. Hovnanian Developments of New Jersey II, Inc.<BR>
K. Hovnanian Developments of New Jersey, Inc.<BR>
K. Hovnanian Developments of New York, Inc.<BR>
K. Hovnanian Developments of North Carolina, Inc.<BR>
K. Hovnanian Developments of Ohio, Inc.<BR>
K. Hovnanian Developments of Pennsylvania, Inc.<BR>
K. Hovnanian Developments of South Carolina, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Developments of Texas, Inc.<BR>
K. Hovnanian Developments of Virginia, Inc.<BR>
K. Hovnanian Developments of West Virginia, Inc.<BR>
K. Hovnanian Eastern Pennsylvania, L.L.C.<BR>
K. Hovnanian Enterprises, Inc.<BR>
K. Hovnanian First Homes, L.L.C.<BR>
K. Hovnanian Florida Realty, L.L.C.<BR>
K. Hovnanian Forecast Homes Northern, Inc.<BR>
K. Hovnanian Four Seasons @ Historic Virginia, LLC<BR>
K. Hovnanian Four Seasons at Gold Hill, LLC<BR>
K. Hovnanian Great Western Building Company, LLC<BR>
K. Hovnanian Great Western Homes, LLC<BR>
K. Hovnanian Holdings NJ, L.L.C.<BR>
K. Hovnanian Homes &#151; DFW, L.L.C.<BR>
K. Hovnanian Homes at Cameron Station, LLC<BR>
K. Hovnanian Homes at Camp Springs, L.L.C.<BR>
K. Hovnanian Homes at Fairwood, L.L.C.<BR>
K. Hovnanian Homes at Forest Run, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 1, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 2, L.L.C.<BR>
K. Hovnanian Homes at Maxwell Place, L.L.C.<BR>
K. Hovnanian Homes at Payne Street, L.L.C.<BR>
K. Hovnanian Homes at Primera, L.L.C.<BR>
K. Hovnanian Homes at Renaissance Plaza, L.L.C.<BR>
K. Hovnanian Homes at Russett, L.L.C.<BR>
K. Hovnanian Homes of D.C., L.L.C.<BR>
K. Hovnanian Homes of Delaware, L.L.C.<BR>
K. Hovnanian Homes of Georgia, L.L.C.<BR>
K. Hovnanian Homes of Houston, L.L.C.<BR>
K. Hovnanian Homes of Indiana, L.L.C.<BR>
K. Hovnanian Homes of Maryland, L.L.C.<BR>
K. Hovnanian Homes of Minnesota, L.L.C.<BR>
K. Hovnanian Homes of North Carolina, Inc.<BR>
K. Hovnanian Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Homes of South Carolina, LLC<BR>
K. Hovnanian Homes of Virginia, Inc.<BR>
K. Hovnanian Homes of West Virginia, L.L.C.<BR>
K. Hovnanian North Central Acquisitions, L.L.C.<BR>
K. Hovnanian North Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Northeast Services, L.L.C.<BR>
K. Hovnanian of Houston II, L.L.C.<BR>
K. Hovnanian Ohio Realty, L.L.C.<BR>
K. Hovnanian Oster Homes, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-9<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Pa Real Estate, Inc.<BR>
K. Hovnanian Pennsylvania Acquisitions, L.L.C.<BR>
K. Hovnanian Port Imperial Urban Renewal, Inc.<BR>
K. Hovnanian Properties of Red Bank, Inc.<BR>
K. Hovnanian Shore Acquisitions, L.L.C.<BR>
K. Hovnanian South Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Southern New Jersey, L.L.C.<BR>
K. Hovnanian Standing Entity, L.L.C.<BR>
K. Hovnanian Summit Holdings, L.L.C.<BR>
K. Hovnanian Summit Homes of Kentucky, L.L.C.<BR>
K. Hovnanian Summit Homes of Michigan, L.L.C.<BR>
K. Hovnanian Summit Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Summit Homes of West Virginia, L.L.C.<BR>
K. Hovnanian Summit Homes, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Florida, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Illinois, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.<BR>
K. Hovnanian T&#038;C Investment, L.L.C.<BR>
K. Hovnanian T&#038;C Management Co., L.L.C.<BR>
K. Hovnanian Venture I, L.L.C.<BR>
K. Hovnanian Windward Homes, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bakersfield, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Beaumont, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Charlottesville, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hemet, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Huntfield,L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Los Banos, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Renaissance, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Westshore, LLC<BR>
K. Hovnanian&#146;s Four Seasons, LLC<BR>
K. Hovnanian&#146;s Parkside at Towngate, L.L.C.<BR>
K. Hovnanian&#146;s Private Home Portfolio, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">KHIP, L.L.C.<BR>
Landarama, Inc.<BR>
M &#038; M at Long Branch, Inc.<BR>
M&#038;M at Chesterfield, LLC<BR>
M&#038;M at Copper Beech, L.L.C.<BR>
M&#038;M at Crescent Court, L.L.C.<BR>
M&#038;M at East Rutherford, L.L.C.<BR>
M&#038;M at Morristown, L.L.C.<BR>
M&#038;M at Spinnaker Pointe, L.L.C.<BR>
M&#038;M at Spruce Hollow, L.L.C.<BR>
M&#038;M at Spruce Run, L.L.C.<BR>
M&#038;M at Station Square, L.L.C.<BR>
M&#038;M at Tamarack Hollow, L.L.C.<BR>
M&#038;M at Union, L.L.C.<BR>
M&#038;M at West Orange, L.L.C.<BR>
M&#038;M at Wheatena Urban Renewal, L.L.C.<BR>
M&#038;M Investments, L.P.<BR>
Matzel &#038; Mumford at Egg Harbor, L.L.C.<BR>
Matzel &#038; Mumford at Montgomery, L.L.C.<BR>
Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.<BR>
MCNJ, Inc.<BR>
Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services, L.L.C.<BR>
Mmip, L.L.C.<BR>
Natomas Central Neighborhood Housing, L.L.C.<BR>
New Land Title Agency, L.L.C.<BR>
Paddocks, L.L.C.<BR>
Park Title Company, LLC<BR>
Pine Ayr, LLC<BR>
Ridgemore Utility Associates of Pennsylvania, L.L.C.<BR>
Ridgemore Utility, L.L.C.<BR>
Seabrook Accumulation Corporation<BR>
Stonebrook Homes, Inc.<BR>
Terrapin Realty, L.L.C.<BR>
The Matzel &#038; Mumford Organization, Inc.<BR>
Washington Homes at Columbia Town Center, L.L.C.<BR>
Washington Homes, Inc.<BR>
Westminster Homes of Alabama, L.L.C.<BR>
Westminster Homes of Mississippi, LLC<BR>
Westminster Homes of Tennessee, Inc.<BR>
Westminster Homes, Inc.<BR>
WH Land I, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">WH Properties, Inc.<BR>
WH/PR Land Company, L.L.C.<BR>
Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->Sch. A-12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;FACE OF NOTE&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN ENTERPRISES, INC.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes Due 2016
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CUSIP No.: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">No.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#091;, or such other
amount as is provided in the schedule
of exchanges of interests in global
notes attached hereto&#093;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">K.&nbsp;Hovnanian Enterprises, Inc., a California corporation (the &#147;<B>Issuer</B>,&#148; which term includes
any successor under the Indenture hereinafter referred to), for value received, promises to pay to
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, or its registered assigns, the principal sum of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> DOLLARS
($<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>), &#091;or such other amount as is provided in the schedule of exchanges of interests in global
notes attached hereto&#093;<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>, on October&nbsp;15, 2016.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interest Rate: 10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% per annum.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interest Payment Dates: April&nbsp;15 and October&nbsp;15, commencing April&nbsp;15, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Record Dates: April 1 and October 1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which will for all purposes have the same effect as if set forth at this place.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>For Global Notes.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Dated:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Form of&#093; Trustee&#146;s Certificate of Authentication
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This is one of the 10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes Due 2016 described in the Indenture referred to
in this Note.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Authorized Signatory&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;REVERSE SIDE OF NOTE&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN ENTERPRISES, INC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes Due 2016
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Capitalized terms used herein are used as defined in the Indenture referred to below unless
otherwise indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1. <I>Principal and Interest.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">K.&nbsp;Hovnanian Enterprises, Inc. (the &#147;<B>Issuer</B>,&#148; which term includes any successor under the
Indenture hereinafter referred to), a California corporation, promises to pay the principal of this
Note on October&nbsp;15, 2016.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Issuer promises to pay interest on the principal amount of this Note on each interest
payment date, as set forth on the face of this Note, at the rate of 10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% per annum.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on the April 1 or October 1 immediately preceding the interest payment date) on each
interest payment date, commencing April&nbsp;15, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#091;The Holder of this Note is entitled to the benefits of the Registration Rights Agreement,
dated &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>, among the Issuer, the Guarantors party thereto and the
Initial Purchasers named therein (the &#147;<B>Registration Rights Agreement</B>&#148;). In the event of a
Registration Default (as defined in the Registration Rights Agreement), the Holder shall be
entitled to Additional Interest as specified in the Registration Rights Agreement until the
Registration Default is cured.&#093;<SUP style="font-size: 85%; vertical-align: text-top">2</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interest on this Note will accrue from the most recent date to which interest has been paid on
this Note or the Note surrendered in exchange for this Note (or, if there is no existing default in
the payment of interest and if this Note is authenticated between a regular record date and the
next interest payment date, from such interest payment date) or, if no interest has been paid, from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2. <I>Paying Agent and Registrar.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Initially, Wilmington Trust Company (the &#147;<B>Trustee</B>&#148;) will act as Paying Agent and Registrar.
The Issuer may change or appoint any Paying Agent, Registrar or co-Registrar without notice to any
Holder. The Issuer or any of its Subsidiaries may act as Paying Agent, Registrar or co-Registrar.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>For Initial Notes and Initial Additional Notes only.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3. <I>Indenture; Liens; Guarantees.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This is one of the Notes issued under an Indenture dated as of October&nbsp;20, 2009 (as amended
from time to time, the &#147;<B>Indenture</B>&#148;), among the Issuer, the Guarantors party thereto and the
Trustee. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and
Holders are referred to the Indenture and the Trust Indenture Act for a statement of all such
terms. To the extent permitted by applicable law, in the event of any inconsistency between the
terms of this Note and the terms of the Indenture, the terms of the Indenture will control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Notes are general obligations of the Issuer, secured by first-priority Liens on the
Collateral as described in the Indenture and the Security Documents. The Indenture limits the
original aggregate principal amount of the Notes issued thereunder to $785,000,000 but Additional
Notes may be issued pursuant to the Indenture (subject to the conditions stated therein), and the
originally issued Notes and all such Additional Notes vote together for all purposes as a single
class. This Note is guaranteed by the Guarantors as set forth in the Indenture and the Guarantee
endorsed hereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Reference is hereby made to the Indenture for a statement of the respective rights, duties and
obligations thereunder of the Issuer, Guarantors, the Trustee and the Holders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4. <I>Optional Redemption; Redemption with Proceeds of Equity Offering.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At any time and from time to time on or after October&nbsp;15, 2012, the Issuer may redeem the
Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set
forth below plus accrued and unpaid interest and Additional Interest thereon, if any, to the
applicable redemption date.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">107.969</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">105.313</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">102.656</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">October&nbsp;15, 2015 and thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">100.000</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At any time and from time to time prior to October&nbsp;15, 2012, the Issuer may redeem Notes with
the net cash proceeds received by the Issuer from any Equity Offering at a redemption price equal
to 110.625% of the principal amount plus accrued and unpaid interest to the redemption date, in an
aggregate principal amount for all such redemptions not to exceed 35% of the original aggregate
principal amount of the Notes (including Additional Notes), <I>provided </I>that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(i)&nbsp;in each case the redemption takes place not later than 60&nbsp;days after the closing of the related
Equity Offering, and
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(ii)&nbsp;not less than 65% of the original aggregate principal amount of the Notes (including
Additional Notes) remains outstanding immediately thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If less than all of the Notes are to be redeemed at any time, the Trustee will select Notes
for redemption on a <I>pro rata </I>basis, by lot or by such other method as the Trustee in its sole
discretion shall deem appropriate and fair.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">No Notes of $2,000 in original principal amount or less shall be redeemed in part. Notices of
redemption may not be conditional.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If any Note is to be redeemed in part only, the notice of redemption that relates to that Note
shall state the portion of the principal amount thereof to be redeemed. A new Note in principal
amount equal to the unredeemed portion of the original Note will be issued in the name of the
Holder thereof upon cancellation of the original Note. Notes called for redemption become due on
the date fixed for redemption. On and after the redemption date, interest ceases to accrue on
Notes or portions thereof called for redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>5. Repurchase Provisions.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If a Change of Control occurs, each Holder shall have the right, at such Holder&#146;s option, to
require the Issuer to purchase all or any part (equal to $2,000 principal amount or any multiple of
$1,000 in excess thereof of such Holder&#146;s Notes on a date that is no later than 90&nbsp;days after
notice of the Change of Control, at a purchase price equal to 101% of the principal amount thereof,
plus accrued and unpaid interest and Additional Interest, if any, to the date of repurchase as
provided in, and subject to the terms of, the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;<I>Mandatory Redemption</I>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">There is no sinking fund for, or mandatory redemption of, the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>7. Discharge and Defeasance.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If the Issuer deposits with the Trustee money and/or U.S. Government Obligations sufficient to
pay the then outstanding principal of, premium, interest and Additional Interest, if any, and
accrued interest on the Notes to redemption or maturity, as the case may be, the Issuer, the
Company and the Guarantors may in certain circumstances be discharged from the Indenture, the
Notes, the Guarantees and the Security Documents or may be discharged from certain of their
obligations under certain provisions of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">8. <I>Registered Form; Denominations; Transfer; Exchange.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Notes are in registered form only without coupons in denominations of $2,000 principal
amount and any multiple of $1,000 in excess thereof. A Holder may
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">register the transfer or exchange of Notes in accordance with the Indenture. The Trustee may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture. Pursuant to the
Indenture, there are certain periods during which the Trustee will not be required to issue,
register the transfer of, or exchange any Note or certain portions of a Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">9. <I>Persons Deemed Owners.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The registered Holder of this Note shall be treated as the owner of it for all purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">10. <I>Defaults and Remedies.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Notes may declare all the Notes to be due and payable immediately. If a
bankruptcy or insolvency default with respect to the Issuer or the Company occurs and is
continuing, the Notes automatically become immediately due and payable. Holders may not enforce
the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations,
Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in
its exercise of remedies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">11. <I>Amendment, Supplement and Waiver.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Subject to certain exceptions, the Indenture, the Notes, the Guarantees and the Security
Documents may be amended or supplemented, or future compliance therewith may be waived, with the
consent of the Holders of a majority in principal amount of the outstanding Notes. Without notice
to or the consent of any Holder, the Company, the Issuer, the Guarantors and the Trustee, and with
respect to the Security Documents, the Collateral Agent and Wilmington Trust Company (as Mortgage
Tax Collateral Agent), may amend or supplement the Indenture, the Notes, the Guarantees or the
Security Documents to, among other things, cure any ambiguity, defect or inconsistency or if such
amendment or supplement does not adversely affect the legal rights of any Holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12. <I>Trustee Dealings With Issuer.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Trustee, in its individual or any other capacity, may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its affiliates, with the same rights as if it were not
Trustee; <I>however</I>, if it acquires any conflicting interest (as defined in the Trust Indenture Act),
it must eliminate such conflict, apply to the Commission for permission to continue or resign.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">13. <I>No Recourse Against Others.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">An incorporator, and any past, present or future director, officer, partner, employee or
stockholder, as such, of the Issuer, the Company or the Guarantors shall not have any liability for
any obligations of the Issuer, the Company or the Guarantors under the Notes, the Indenture or the
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">14. <I>Governing Law.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">15. <I>CUSIP Numbers.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification
Procedures, the Issuer has caused CUSIP numbers to be printed on the Notes, and the Trustee may use
CUSIP numbers in notices as a convenience to Holders. No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice and reliance may be
placed only on the other identification numbers placed thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">16. <I>Authentication.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Note is not valid until the Trustee (or Authenticating Agent) manually signs the
certificate of authentication on the other side of this Note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">17. <I>Abbreviations.</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and U/G/M/A/ (= Uniform Gifts to
Minors Act).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Issuer will furnish a copy of the Indenture to any Holder upon written request and without
charge.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;FORM OF TRANSFER NOTICE&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Insert Social Security or Taxpayer Identification No.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 100%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 100%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">Please print or typewrite name and address, including zip code, of assignee</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 100%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 100%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">the within Note and all rights thereunder, hereby irrevocably constituting and appointing</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 100%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">agent to transfer this Note on the books of the Issuer with full power of substitution in the
premises.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">Dated:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap">Signed:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px; font-size: 1pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left">(sign exactly as name appears on the other side of this Note)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">Signature Guarantee<SUP style="font-size: 85%; vertical-align: text-top">3</SUP>:</FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Signatures must be guaranteed by an &#147;<B>eligible guarantor
institution</B>&#148; meeting the requirements of the Registrar, which requirements
include membership or participation in the Note Transfer Agent Medallion
Program (&#147;<B>STAMP&#148;</B>) or such other &#147;<B>signature guarantee program</B>&#148; as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;THE FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES<BR>
BEARING A RESTRICTED LEGEND&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In connection with any transfer of this Note occurring prior to the date which is the date
following the first anniversary of the original issuance of this Note, the undersigned confirms
that such transfer is made without utilizing any general solicitation or general advertising in
connection with the transfer and further as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>Check One</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><FONT face="Wingdings">&#111;</FONT> (1)&nbsp;This Note is being transferred to a &#147;qualified institutional buyer&#148; in compliance with Rule
144A under the Securities Act of 1933, as amended, and certification in the form of Exhibit&nbsp;F to
the Indenture is being furnished herewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><FONT face="Wingdings">&#111;</FONT> (2)&nbsp;This Note is being transferred to a non-&#147;U.S. Person,&#148; as defined in Rule&nbsp;902 of Regulation&nbsp;S
under the Securities Act in compliance with the exemption from registration under the Securities
Act of 1933, as amended, provided by Regulation&nbsp;S thereunder, and certification in the form of
Exhibit&nbsp;E to the Indenture is being furnished herewith.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>or</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><FONT face="Wingdings">&#111;</FONT> (3)&nbsp;This Note is being transferred other than in accordance with (1)&nbsp;or (2)&nbsp;above and documents
are being furnished herewith which comply with the conditions of transfer set forth in this Note
and the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If none of the foregoing boxes is checked, the Trustee is not obligated to register this Note
in the name of any Person other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in the Indenture have been satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dated:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp; &nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transferor</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signed:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="3"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">NOTICE: The signature to this assignment must correspond
with the name as written upon the face of the
within-mentioned instrument in every particular, without
alteration or any change whatsoever.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="white-space: nowrap">Signature Guarantee:<SUP style="font-size: 85%; vertical-align: text-top">4</SUP></FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="bottom" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px; font-size: 1pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="bottom" align="left">(To be executed by an executive officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Signatures must be guaranteed by an &#147;<B>eligible guarantor
institution</B>&#148; meeting the requirements of the Registrar, which requirements
include membership or participation in the Note Transfer Agent Medallion
Program (&#147;<B>STAMP&#148;</B>) or such other &#147;<B>signature guarantee program</B>&#148; as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Securities Exchange Act of 1934, as amended.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">OPTION OF HOLDER TO ELECT PURCHASE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If you wish to have all of this Note purchased by the Issuer pursuant to Section&nbsp;4.10 or
Section&nbsp;4.12 of the Indenture, check the box: <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">If you wish to have a portion of this Note purchased by the Issuer pursuant to Section&nbsp;4.10 or
Section&nbsp;4.12 of the Indenture, state the amount (in original principal amount) below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">$<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Your Signature:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">(Sign exactly as your name appears on the other side of this Note)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Signature Guarantee:<SUP style="font-size: 85%; vertical-align: text-top">5</SUP> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Signatures must be guaranteed by an &#147;<B>eligible guarantor
institution&#148; </B>meeting the requirements of the Trustee, which requirements
include membership or participation in the Note Transfer Agent Medallion
Program (&#147;<B>STAMP</B>&#148;) or such other &#147;<B>signature guarantee program</B>&#148; as may be
determined by the Trustee in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SCHEDULE OF EXCHANGES OF INTERESTS IN GLOBAL NOTES<SUP style="font-size: 85%; vertical-align: text-top">6</SUP>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The following exchanges of a part of this Global Note for Certificated Notes or an interest in
another Global Note, or exchanges of a part of another Global Note or Certificated Note for an
interest in this Global Note, have been made:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>of this Global Note</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>decrease in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>increase in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>following such</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Signature of</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>principal amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>principal amount</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>decrease or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>authorized officer</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date of Exchange</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of this Global Note</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of this Global Note</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>increase</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of Trustee</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>For Global Notes.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-13<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;FORM OF NOTATION ON NOTE RELATING TO GUARANTEE&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">GUARANTEE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The undersigned (the &#147;<B>Guarantors</B>&#148;) have unconditionally guaranteed, jointly and severally
(such guarantee by each Guarantor being referred to herein as the &#147;<B>Guarantee</B>&#148;) (i)&nbsp;the due and
punctual payment of the principal of and interest and Additional Interest, if any, on the Issuer&#146;s
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;), whether at maturity or on an interest payment
date, by acceleration or otherwise, on the Notes, to the extent lawful, and of all other
obligations of the Issuer to the Holders or the Trustee all in accordance with the terms set forth
in Article&nbsp;6 of the Indenture and (ii)&nbsp;in case of any extension of time of payment or renewal of
any Notes or any of such other obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">No past, present or future stockholder, officer, director, employee, partner or incorporator,
as such, of any of the Guarantors shall have any liability under the Guarantee evidenced hereby by
reason of such person&#146;s status as stockholder, officer, director, employee, partner or
incorporator. Each Holder of a Note by accepting a Note waives and releases all such liability.
This waiver and release are part of the consideration for the issuance of the Guarantee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Holder of a Note by accepting a Note agrees that any Guarantor named below shall have no
further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in
respect of its Guarantee in accordance with the terms of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Guarantee evidenced hereby shall not be valid or obligatory for any purpose until the
certificate of authentication on the Notes upon which the Guarantee is noted shall have been
executed by the Trustee under the Indenture by the manual signature of one of its authorized
officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Guarantee shall be governed by, and construed in accordance with, the laws of the State
of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Hovnanian Enterprises, Inc.<BR>
Auddie Enterprises, L.L.C.<BR>
Builder Services NJ, L.L.C.<BR>
Builder Services NY, L.L.C.<BR>
Builder Services PA, L.L.C.<BR>
Dulles Coppermine, L.L.C.<BR>
Eastern Title Agency, Inc.<BR>
F&#038;W Mechanical Services, L.L.C.<BR>
Founders Title Agency of Maryland, L.L.C.<BR>
Founders Title Agency, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Governor&#146;s Abstract Co., Inc.<BR>
Homebuyers Financial Services, L.L.C.<BR>
Hovnanian Developments of Florida, INC.<BR>
Hovnanian Land Investment Group of California, L.L.C.<BR>
Hovnanian Land Investment Group of Florida, L.L.C.<BR>
Hovnanian Land Investment Group of Georgia, L.L.C.<BR>
Hovnanian Land Investment Group of Maryland, L.L.C.<BR>
Hovnanian Land Investment Group of New Jersey, L.L.C.<BR>
Hovnanian Land Investment Group of North Carolina, L.L.C.<BR>
Hovnanian Land Investment Group of Pennsylvania, L.L.C.<BR>
Hovnanian Land Investment Group of Texas LLC<BR>
Hovnanian Land Investment Group of Virginia, L.L.C.<BR>
Hovnanian Land Investment Group, L.L.C.<BR>
K. H. San Marcos Conservancy Holdings, L.L.C.<BR>
K. HOV International, Inc.<BR>
K. HOV IP, II, Inc.<BR>
K. HOV IP, Inc.<BR>
K. Hovnanian Acquisitions, Inc.<BR>
K. Hovnanian at 4S, LLC<BR>
K. Hovnanian at Acqua Vista, LLC<BR>
K. Hovnanian at Aliso, LLC<BR>
K. Hovnanian at Allenberry, L.L.C.<BR>
K. Hovnanian at Allentown, L.L.C.<BR>
K. Hovnanian at Almond Estates, LLC<BR>
K. Hovnanian at Arbor Heights, LLC<BR>
K. Hovnanian at Avenue One, L.L.C.<BR>
K. Hovnanian at Bakersfield 463, L.L.C.<BR>
K. Hovnanian at Barnegat I, L.L.C.<BR>
K. Hovnanian at Barnegat II, L.L.C.<BR>
K. Hovnanian at Bella Lago, LLC<BR>
K. Hovnanian at Berkeley, L.L.C.<BR>
K. Hovnanian at Bernards IV, Inc.<BR>
K. Hovnanian at Bernards V, L.L.C.<BR>
K. Hovnanian at Blue Heron Pines, L.L.C.<BR>
K. Hovnanian at Branchburg III, INC.<BR>
K. Hovnanian at Bridgeport, Inc.<BR>
K. Hovnanian at Bridgewater I, L.L.C.<BR>
K. Hovnanian at Bridgewater VI, Inc.<BR>
K. Hovnanian at Broad and Walnut, L.L.C.<BR>
K. Hovnanian at Burlington III, Inc.<BR>
K. Hovnanian at Burlington, Inc.<BR>
K. Hovnanian at Calabria, Inc.<BR>
K. Hovnanian at Camden I, L.L.C.<BR>
K. Hovnanian at Cameron Chase, Inc.<BR>
K. Hovnanian at Camp Hill, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-15<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Capistrano, L.L.C.<BR>
K. Hovnanian at Carmel Del Mar, Inc.<BR>
K. Hovnanian at Carmel Village, LLC<BR>
K. Hovnanian at Castile, Inc.<BR>
K. Hovnanian at Cedar Grove III, L.L.C.<BR>
K. Hovnanian at Cedar Grove IV, L.L.C.<BR>
K. Hovnanian at Chaparral, Inc.<BR>
K. Hovnanian at Charter Way, LLC<BR>
K. Hovnanian at Chester I, L.L.C.<BR>
K. Hovnanian at Chesterfield, L.L.C.<BR>
K. Hovnanian at Cielo, L.L.C.<BR>
K. Hovnanian at Clarkstown, INC.<BR>
K. Hovnanian at Clifton II, L.L.C.<BR>
K. Hovnanian at Clifton, L.L.C.<BR>
K. Hovnanian at Coastline, L.L.C.<BR>
K. Hovnanian at Cortez Hill, LLC<BR>
K. Hovnanian at Cranbury, L.L.C.<BR>
K. Hovnanian at Crestline, Inc.<BR>
K. Hovnanian at Curries Woods, L.L.C.<BR>
K. Hovnanian at Denville, L.L.C.<BR>
K. Hovnanian at Deptford Township, L.L.C.<BR>
K. Hovnanian at Dominguez Hills, Inc.<BR>
K. Hovnanian at Dover, L.L.C.<BR>
K. Hovnanian at East Brandywine, L.L.C.<BR>
K. Hovnanian at East Whiteland I, Inc.<BR>
K. Hovnanian at Eastlake, LLC<BR>
K. Hovnanian at Edgewater II, L.L.C.<BR>
K. Hovnanian at Edgewater, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch II, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch, L.L.C.<BR>
K. Hovnanian at Elk Township, L.L.C.<BR>
K. Hovnanian at Encinitas Ranch, LLC<BR>
K. Hovnanian at Evergreen, L.L.C.<BR>
K. Hovnanian at Ewing, L.L.C.<BR>
K. Hovnanian at Fiddyment Ranch, LLC<BR>
K. Hovnanian at Fifth Avenue, L.L.C.<BR>
K. Hovnanian at Florence I, L.L.C.<BR>
K. Hovnanian at Florence II, L.L.C.<BR>
K. Hovnanian at Forest Meadows, L.L.C.<BR>
K. Hovnanian at Forks Twp. I, L.L.C.<BR>
K. Hovnanian at Franklin, L.L.C.<BR>
K. Hovnanian at Freehold Township I, Inc.<BR>
K. Hovnanian at Freehold Township, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-16<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Fresno, LLC<BR>
K. Hovnanian at Galloway, L.L.C.<BR>
K. Hovnanian at Gaslamp Square, L.L.C.<BR>
K. Hovnanian at Great Notch, L.L.C.<BR>
K. Hovnanian at Gridley, LLC<BR>
K. Hovnanian at Guttenberg, L.L.C.<BR>
K. Hovnanian at Hackettstown II, L.L.C.<BR>
K. Hovnanian at Hackettstown, Inc.<BR>
K. Hovnanian at Hamburg Contractors, L.L.C.<BR>
K. Hovnanian at Hamburg, L.L.C.<BR>
K. Hovnanian at Hawthorne, L.L.C.<BR>
K. Hovnanian at Hazlet, L.L.C.<BR>
K. Hovnanian at Hershey&#146;s Mill, Inc.<BR>
K. Hovnanian at Highland Shores, L.L.C.<BR>
K. Hovnanian at Highland Vineyards, Inc.<BR>
K. Hovnanian at Hilltop, L.L.C.<BR>
K. Hovnanian at Hopewell IV, Inc.<BR>
K. Hovnanian at Hopewell VI, Inc.<BR>
K. Hovnanian at Howell Township, Inc.<BR>
K. Hovnanian at Hudson Pointe, L.L.C.<BR>
K. Hovnanian at Jackson I, L.L.C.<BR>
K. Hovnanian at Jackson, L.L.C.<BR>
K. Hovnanian at Jaeger Ranch, LLC<BR>
K. Hovnanian at Jersey City IV, L.L.C.<BR>
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.<BR>
K. Hovnanian at Keyport, L.L.C.<BR>
K. Hovnanian at King Farm, L.L.C.<BR>
K. Hovnanian at Kings Grant I, Inc.<BR>
K. Hovnanian at La Costa Greens, L.L.C.<BR>
K. Hovnanian at La Costa, LLC<BR>
K. Hovnanian at La Habra Knolls, LLC<BR>
K. Hovnanian at La Laguna, L.L.C.<BR>
K. Hovnanian at La Terraza, Inc.<BR>
K. Hovnanian at Lafayette Estates, L.L.C.<BR>
K. Hovnanian at Lake Rancho Viejo, LLC<BR>
K. Hovnanian at Lake Ridge Crossing, L.L.C.<BR>
K. Hovnanian at Lake Terrapin, L.L.C.<BR>
K. Hovnanian at Lakewood, Inc.<BR>
K. Hovnanian at Landmark, LLC<BR>
K. Hovnanian at LaPaz, LLC<BR>
K. Hovnanian at Larkspur, LLC<BR>
K. Hovnanian at Lawrence V, L.L.C.<BR>
K. Hovnanian at Lee Square, L.L.C.<BR>
K. Hovnanian at Linwood, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Contractors, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Little Egg Harbor III, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor, L.L.C<BR>
K. Hovnanian at Live Oak II, LLC<BR>
K. Hovnanian at Long Branch I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township II, L.L.C.<BR>
K. Hovnanian at Lower Makefield Township I, L.L.C.<BR>
K. Hovnanian at Lower Moreland I, L.L.C.<BR>
K. Hovnanian at Lower Moreland II, L.L.C.<BR>
K. Hovnanian at Lower Moreland III, L.L.C.<BR>
K. Hovnanian at Lower Saucon, Inc.<BR>
K. Hovnanian at Macungie, L.L.C.<BR>
K. Hovnanian at Mahwah II, INC.<BR>
K. Hovnanian at Mahwah VI, Inc.<BR>
K. Hovnanian at Mahwah VII, Inc.<BR>
K. Hovnanian at Malan Park, L.L.C.<BR>
K. Hovnanian at Manalapan III, L.L.C.<BR>
K. Hovnanian at Manalapan, Inc.<BR>
K. Hovnanian at Mansfield I, L.L.C.<BR>
K. Hovnanian at Mansfield II, L.L.C.<BR>
K. Hovnanian at Mansfield III, L.L.C.<BR>
K. Hovnanian at Maple Avenue, L.L.C.<BR>
K. Hovnanian at Marlboro II, Inc.<BR>
K. Hovnanian at Marlboro Township III, Inc.<BR>
K. Hovnanian at Marlboro Township IV, Inc.<BR>
K. Hovnanian at Marlboro Township IX, L.L.C.<BR>
K. Hovnanian at Marlboro Township V, L.L.C.<BR>
K. Hovnanian at Marlboro Township VIII, L.L.C.<BR>
K. Hovnanian at Marlboro VI, L.L.C.<BR>
K. Hovnanian at Marlboro VII, L.L.C.<BR>
K. Hovnanian at Matsu, L.L.C.<BR>
K. Hovnanian at Melanie Meadows, LLC<BR>
K. Hovnanian at Mendham Township, L.L.C.<BR>
K. Hovnanian at Menifee, LLC<BR>
K. Hovnanian at Middle Township II, L.L.C.<BR>
K. Hovnanian at Middle Township, L.L.C.<BR>
K. Hovnanian at Middletown II, L.L.C.<BR>
K. Hovnanian at Middletown, L.L.C.<BR>
K. Hovnanian at Millville I, L.L.C.<BR>
K. Hovnanian at Millville II, L.L.C.<BR>
K. Hovnanian at Monroe II, INC.<BR>
K. Hovnanian at Monroe III, L.L.C.<BR>
K. Hovnanian at Monroe IV, L.L.C.<BR>
K. Hovnanian at Monroe NJ, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-18<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Montgomery I, Inc.<BR>
K. Hovnanian at Montvale, L.L.C.<BR>
K. Hovnanian at Mosaic, LLC<BR>
K. Hovnanian at Mt. Olive Township, L.L.C.<BR>
K. Hovnanian at Muirfield, LLC<BR>
K. Hovnanian at New Brunswick Urban Renewal, L.L.C.<BR>
K. Hovnanian at New Windsor, L.L.C.<BR>
K. Hovnanian at North Bergen. L.L.C.<BR>
K. Hovnanian at North Brunswick VI, L.L.C.<BR>
K. Hovnanian at North Caldwell II, L.L.C.<BR>
K. Hovnanian at North Caldwell III, L.L.C.<BR>
K. Hovnanian at North Caldwell, L.L.C.<BR>
K. Hovnanian at North Haledon, L.L.C.<BR>
K. Hovnanian at North Wildwood, L.L.C.<BR>
K. Hovnanian at Northampton. L.L.C.<BR>
K. Hovnanian at Northern Westchester, INC.<BR>
K. Hovnanian at Northfield, L.L.C.<BR>
K. Hovnanian at Northlake, Inc.<BR>
K. Hovnanian at Ocean Township, Inc<BR>
K. Hovnanian at Ocean Walk, INC.<BR>
K. Hovnanian at Oceanport, L.L.C.<BR>
K. Hovnanian at Old Bridge, L.L.C.<BR>
K. Hovnanian at Olde Orchard, LLC<BR>
K. Hovnanian at Pacific Bluffs, LLC<BR>
K. Hovnanian at Paramus, L.L.C.<BR>
K. Hovnanian at Park Lane, LLC<BR>
K. Hovnanian at Parkside, LLC<BR>
K. Hovnanian at Parsippany-Troy Hills, L.L.C.<BR>
K. Hovnanian at Perkiomen I, Inc.<BR>
K. Hovnanian at Perkiomen II, Inc.<BR>
K. Hovnanian at Philadelphia II, L.L.C.<BR>
K. Hovnanian at Philadelphia III, L.L.C.<BR>
K. Hovnanian at Philadelphia IV, L.L.C.<BR>
K. Hovnanian at Piazza D&#146;Oro, L.L.C.<BR>
K. Hovnanian at Piazza Serena, L.L.C<BR>
K. Hovnanian at Pittsgrove, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal IV, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal V, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VI, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VII, L.L.C.<BR>
K. Hovnanian at Port Imperial Urban Renewal VIII, L.L.C.<BR>
K. Hovnanian at Prado, L.L.C.<BR>
K. Hovnanian at Rancho Cristianitos, Inc.<BR>
K. Hovnanian at Rancho Santa Margarita, LLC<BR>
K. Hovnanian at Randolph I, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Rapho, L.L.C<BR>
K. Hovnanian at Readington II, L.L.C.<BR>
K. Hovnanian at Red Bank, L.L.C.<BR>
K. Hovnanian at Reservoir Ridge, Inc.<BR>
K. Hovnanian at Ridgemont, L.L.C.<BR>
K. Hovnanian at Ridgestone, L.L.C.<BR>
K. Hovnanian at Riverbend, LLC<BR>
K. Hovnanian at Rivercrest, LLC<BR>
K. Hovnanian at Roderuck, L.L.C.<BR>
K. Hovnanian at Rosemary Lantana, L.L.C.<BR>
K. Hovnanian at Rowland Heights, LLC<BR>
K. Hovnanian at Sage, L.L.C.<BR>
K. Hovnanian at San Sevaine, Inc.<BR>
K. Hovnanian at Santa Nella, LLC<BR>
K. Hovnanian at Saratoga, Inc.<BR>
K. Hovnanian at Sawmill, Inc.<BR>
K. Hovnanian at Sayreville, L.L.C.<BR>
K. Hovnanian at Scotch Plains II, INC.<BR>
K. Hovnanian at Scotch Plains, L.L.C.<BR>
K. Hovnanian at Sierra Estates, LLC<BR>
K. Hovnanian at Silver Spring, L.L.C.<BR>
K. Hovnanian at Skye Isle, LLC<BR>
K. Hovnanian at Smithville III, L.L.C.<BR>
K. Hovnanian at Smithville, Inc.<BR>
K. Hovnanian at Somers Point, L.L.C.<BR>
K. Hovnanian at South Brunswick V, Inc.<BR>
K. Hovnanian at South Brunswick, L.L.C.<BR>
K. Hovnanian at Sparta, L.L.C.<BR>
K. Hovnanian at Springco, L.L.C.<BR>
K. Hovnanian at Stone Canyon, Inc.<BR>
K. Hovnanian at Stony Point, INC.<BR>
K. Hovnanian at Sunsets, LLC<BR>
K. Hovnanian at Sycamore, Inc.<BR>
K. Hovnanian at Tannery Hill, Inc.<BR>
K. Hovnanian at Teaneck, L.L.C.<BR>
K. Hovnanian at The Bluff, Inc.<BR>
K. Hovnanian at The Crosby, LLC<BR>
K. Hovnanian at The Gables, LLC<BR>
K. Hovnanian at The Monarch, L.L.C.<BR>
K. Hovnanian at The Preserve, LLC<BR>
K. Hovnanian at Thompson Ranch, LLC<BR>
K. Hovnanian at Thornbury, Inc.<BR>
K. Hovnanian at Tierrasanta, Inc.<BR>
K. Hovnanian at Trail Ridge, LLC<BR>
K. Hovnanian at Trenton, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Trovata, Inc.<BR>
K. Hovnanian at Union Township I, Inc.<BR>
K. Hovnanian at Union Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township I, Inc.<BR>
K. Hovnanian at Upper Freehold Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township III, L.L.C.<BR>
K. Hovnanian at Upper Makefield I, Inc.<BR>
K. Hovnanian at Upper Uwchlan II, L.L.C.<BR>
K. Hovnanian at Upper Uwchlan, L.L.C.<BR>
K. Hovnanian at Vail Ranch, Inc.<BR>
K. Hovnanian at Valle Del Sol, LLC<BR>
K. Hovnanian at Verona Urban Renewal, L.L.C.<BR>
K. Hovnanian at Victorville, L.L.C.<BR>
K. Hovnanian at Vineland, L.L.C.<BR>
K. Hovnanian at Vista Del Sol, L.L.C.<BR>
K. Hovnanian at Wall Township VI, Inc.<BR>
K. Hovnanian at Wall Township VIII, Inc.<BR>
K. Hovnanian at Wanaque, L.L.C.<BR>
K. Hovnanian at Warren Township, L.L.C.<BR>
K. Hovnanian at Washington, L.L.C.<BR>
K. Hovnanian at Washingtonville, INC.<BR>
K. Hovnanian at Wayne III, Inc.<BR>
K. Hovnanian at Wayne IX, L.L.C.<BR>
K. Hovnanian at Wayne V, Inc.<BR>
K. Hovnanian at Wayne, VIII, L.L.C.<BR>
K. Hovnanian at West Bradford, L.L.C.<BR>
K. Hovnanian at West Milford, L.L.C.<BR>
K. Hovnanian at West View Estates, L.L.C.<BR>
K. Hovnanian at West Windsor, L.L.C.<BR>
K. Hovnanian at Westshore, LLC<BR>
K. Hovnanian at Wheeler Ranch, LLC<BR>
K. Hovnanian at Wildrose, Inc.<BR>
K. Hovnanian at Wildwood Bayside, L.L.C.<BR>
K. Hovnanian at Willow Brook, L.L.C.<BR>
K. Hovnanian at Winchester, LLC<BR>
K. Hovnanian at Woodcreek West, LLC<BR>
K. Hovnanian at Woodhill Estates, L.L.C.<BR>
K. Hovnanian at Woolwich I, L.L.C.<BR>
K. Hovnanian Cambridge Homes, L.L.C.<BR>
K. Hovnanian Central Acquisitions, L.L.C.<BR>
K. Hovnanian Classics CIP, L.L.C.<BR>
K. Hovnanian Classics, L.L.C.<BR>
K. Hovnanian Communities, Inc.<BR>
K. Hovnanian Companies Metro D.C. North, L.L.C.<BR>
K. Hovnanian Companies Northeast, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Companies of California, Inc.<BR>
K. Hovnanian Companies of Maryland, Inc.<BR>
K. Hovnanian Companies of New York, Inc.<BR>
K. Hovnanian Companies of Pennsylvania, Inc.<BR>
K. Hovnanian Companies of Southern California, Inc.<BR>
K. Hovnanian Companies of Virginia, Inc.<BR>
K. Hovnanian Companies, LLC<BR>
K. Hovnanian Connecticut Acquisitions, L.L.C.<BR>
K. Hovnanian Construction II, Inc.<BR>
K. Hovnanian Construction III, Inc.<BR>
K. Hovnanian Construction Management, Inc.<BR>
K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.<BR>
K. Hovnanian Delaware Acquisitions, L.L.C.<BR>
K. Hovnanian Developments of Arizona, Inc.<BR>
K. Hovnanian Developments of California, Inc.<BR>
K. Hovnanian Developments of Connecticut, Inc.<BR>
K. Hovnanian Developments of D.C., Inc.<BR>
K. Hovnanian Developments of Delaware, Inc.<BR>
K. Hovnanian Developments of Georgia, Inc.<BR>
K. Hovnanian Developments of Illinois, Inc.<BR>
K. Hovnanian Developments of Indiana, Inc.<BR>
K. Hovnanian Developments of Kentucky, Inc.<BR>
K. Hovnanian Developments of Maryland, Inc.<BR>
K. Hovnanian Developments of Michigan, Inc.<BR>
K. Hovnanian Developments of Minnesota, Inc.<BR>
K. Hovnanian Developments of New Jersey II, Inc.<BR>
K. Hovnanian Developments of New Jersey, Inc.<BR>
K. Hovnanian Developments of New York, Inc.<BR>
K. Hovnanian Developments of North Carolina, Inc.<BR>
K. Hovnanian Developments of Ohio, Inc.<BR>
K. Hovnanian Developments of Pennsylvania, Inc.<BR>
K. Hovnanian Developments of South Carolina, Inc.<BR>
K. Hovnanian Developments of Texas, Inc.<BR>
K. Hovnanian Developments of Virginia, Inc.<BR>
K. Hovnanian Developments of West Virginia, Inc.<BR>
K. Hovnanian Eastern Pennsylvania, L.L.C.<BR>
K. Hovnanian Enterprises, Inc.<BR>
K. Hovnanian First Homes, L.L.C.<BR>
K. Hovnanian Florida Realty, L.L.C.<BR>
K. Hovnanian Forecast Homes Northern, Inc.<BR>
K. Hovnanian Four Seasons @ Historic Virginia, LLC<BR>
K. Hovnanian Four Seasons at Gold Hill, LLC<BR>
K. Hovnanian Great Western Building Company, LLC<BR>
K. Hovnanian Great Western Homes, LLC<BR>
K. Hovnanian Holdings NJ, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Homes &#151; DFW, L.L.C.<BR>
K. Hovnanian Homes at Cameron Station, LLC<BR>
K. Hovnanian Homes at Camp Springs, L.L.C.<BR>
K. Hovnanian Homes at Fairwood, L.L.C.<BR>
K. Hovnanian Homes at Forest Run, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 1, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 2, L.L.C.<BR>
K. Hovnanian Homes at Maxwell Place, L.L.C.<BR>
K. Hovnanian Homes at Payne Street, L.L.C.<BR>
K. Hovnanian Homes at Primera, L.L.C.<BR>
K. Hovnanian Homes at Renaissance Plaza, L.L.C.<BR>
K. Hovnanian Homes at Russett, L.L.C.<BR>
K. Hovnanian Homes of D.C., L.L.C.<BR>
K. Hovnanian Homes of Delaware, L.L.C.<BR>
K. Hovnanian Homes of Georgia, L.L.C.<BR>
K. Hovnanian Homes of Houston, L.L.C.<BR>
K. Hovnanian Homes of Indiana, L.L.C.<BR>
K. Hovnanian Homes of Maryland, L.L.C.<BR>
K. Hovnanian Homes of Minnesota, L.L.C.<BR>
K. Hovnanian Homes of North Carolina, Inc.<BR>
K. Hovnanian Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Homes of South Carolina, LLC<BR>
K. Hovnanian Homes of Virginia, Inc.<BR>
K. Hovnanian Homes of West Virginia, L.L.C.<BR>
K. Hovnanian North Central Acquisitions, L.L.C.<BR>
K. Hovnanian North Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Northeast Services, L.L.C.<BR>
K. Hovnanian of Houston II, L.L.C.<BR>
K. Hovnanian Ohio Realty, L.L.C.<BR>
K. Hovnanian Oster Homes, L.L.C.<BR>
K. Hovnanian Pa Real Estate, Inc.<BR>
K. Hovnanian Pennsylvania Acquisitions, L.L.C.<BR>
K. Hovnanian Port Imperial Urban Renewal, Inc.<BR>
K. Hovnanian Properties of Red Bank, Inc.<BR>
K. Hovnanian Shore Acquisitions, L.L.C.<BR>
K. Hovnanian South Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Southern New Jersey, L.L.C.<BR>
K. Hovnanian Standing Entity, L.L.C.<BR>
K. Hovnanian Summit Holdings, L.L.C.<BR>
K. Hovnanian Summit Homes of Kentucky, L.L.C.<BR>
K. Hovnanian Summit Homes of Michigan, L.L.C.<BR>
K. Hovnanian Summit Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Summit Homes of West Virginia, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Summit Homes, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Florida, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Illinois, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.<BR>
K. Hovnanian T&#038;C Investment, L.L.C.<BR>
K. Hovnanian T&#038;C Management Co., L.L.C.<BR>
K. Hovnanian Venture I, L.L.C.<BR>
K. Hovnanian Windward Homes, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bakersfield, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Beaumont, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Charlottesville, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hemet, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Huntfield,L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Los Banos, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Renaissance, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Westshore, LLC<BR>
K. Hovnanian&#146;s Four Seasons, LLC<BR>
K. Hovnanian&#146;s Parkside at Towngate, L.L.C.<BR>
K. Hovnanian&#146;s Private Home Portfolio, L.L.C.<BR>
KHIP, L.L.C.<BR>
Landarama, Inc.<BR>
M &#038; M at Long Branch, Inc.<BR>
M&#038;M at Chesterfield, LLC<BR>
M&#038;M at Copper Beech, L.L.C.<BR>
M&#038;M at Crescent Court, L.L.C.<BR>
M&#038;M at East Rutherford, L.L.C.<BR>
M&#038;M at Morristown, L.L.C.<BR>
M&#038;M at Spinnaker Pointe, L.L.C.<BR>
M&#038;M at Spruce Hollow, L.L.C.<BR>
M&#038;M at Spruce Run, L.L.C.<BR>
M&#038;M at Station Square, L.L.C.<BR>
M&#038;M at Tamarack Hollow, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">M&#038;M at Union, L.L.C.<BR>
M&#038;M at West Orange, L.L.C.<BR>
M&#038;M at Wheatena Urban Renewal, L.L.C.<BR>
M&#038;M Investments, L.P.<BR>
Matzel &#038; Mumford at Egg Harbor, L.L.C.<BR>
Matzel &#038; Mumford at Montgomery, L.L.C.<BR>
Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.<BR>
MCNJ, Inc.<BR>
Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services, L.L.C.<BR>
Mmip, L.L.C.<BR>
Natomas Central Neighborhood Housing, L.L.C.<BR>
New Land Title Agency, L.L.C.<BR>
Paddocks, L.L.C.<BR>
Park Title Company, LLC<BR>
Pine Ayr, LLC<BR>
Ridgemore Utility Associates of Pennsylvania, L.L.C.<BR>
Ridgemore Utility, L.L.C.<BR>
Seabrook Accumulation Corporation<BR>
Stonebrook Homes, Inc.<BR>
Terrapin Realty, L.L.C.<BR>
The Matzel &#038; Mumford Organization, Inc.<BR>
Washington Homes at Columbia Town Center, L.L.C.<BR>
Washington Homes, Inc.<BR>
Westminster Homes of Alabama, L.L.C.<BR>
Westminster Homes of Mississippi, LLC<BR>
Westminster Homes of Tennessee, Inc.<BR>
Westminster Homes, Inc.<BR>
WH Land I, Inc.<BR>
WH Properties, Inc.<BR>
WH/PR Land Company, L.L.C.<BR>
Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">&#091;This Guarantee relates to K. Hovnanian&#146;s 10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016 &#151; CUSIP No.: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093;
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->A-25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT B</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SUPPLEMENTAL INDENTURE
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">dated as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, ____
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">among
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN ENTERPRISES, INC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">HOVNANIAN ENTERPRISES, INC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The Other Guarantors Party Hereto
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">and
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">WILMINGTON TRUST COMPANY
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">as Trustee
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; SUPPLEMENTAL INDENTURE (this &#147;&#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; <B>Supplemental Indenture</B>&#148;), entered
into as of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
_____, among K. Hovnanian Enterprises, Inc., a California corporation (the
&#147;<B>Issuer</B>&#148;), Hovnanian Enterprises, Inc. (the &#147;<B>Company</B>&#148;), &#091;each of the guarantors listed on Schedule
I hereto&#093; (each an &#147;<B>Undersigned</B>&#148;) and Wilmington Trust Company, a Delaware banking corporation, as
Trustee (the &#147;<B>Trustee</B>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Company, the other Guarantors party thereto and the Trustee entered into
an indenture, dated as of October&nbsp;20, 2009 (the &#147;<B>Indenture</B>&#148;), relating to the Company&#146;s 10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>%
Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, as a condition to the purchase of the Notes by the Holders, the Company agreed
pursuant to the Indenture to cause any newly acquired or created Restricted Subsidiaries to provide
Guarantees.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and
intending to be legally bound, the parties hereto hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 1. Capitalized terms used herein and not otherwise defined herein are used
as defined in the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 2. Each Undersigned, by its execution of this &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; Supplemental
Indenture, agrees to be a Guarantor under the Indenture and to be bound by the terms of the
Indenture applicable to Guarantors, including, but not limited to, Article&nbsp;6 thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 3. This &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; Supplemental Indenture shall be governed by and
construed in accordance with the laws of the State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 4. This &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; Supplemental Indenture may be signed in various
counterparts which together will constitute one and the same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 5. This &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; Supplemental Indenture is an amendment supplemental to
the Indenture (as amended and supplemented to the date hereof) and
the Indenture and this &#091;____&#093; Supplemental Indenture will henceforth be read together.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><FONT style="font-variant: SMALL-CAPS">Section</FONT> 6. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-2<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Indenture or for or in respect of the Recitals contained herein, all of which are made solely
by the Issuer, the Company and each of the undersigned.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, the parties hereto have caused this &#091;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&#093; Supplemental Indenture to
be duly executed as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC., as Issuer<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">On behalf of each of the entities listed on Schedule&nbsp;I hereto<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->B-4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT C</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">RESTRICTED LEGEND
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS NOTE (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE &#147;<B>SECURITIES ACT</B>&#148;), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT
AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN,
THE HOLDER:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(1)&nbsp;REPRESENTS THAT (A)&nbsp;IT IS A &#147;QUALIFIED INSTITUTIONAL BUYER&#148; (AS DEFINED IN RULE 144A UNDER
THE SECURITIES ACT) (A &#147;<B>QIB</B>&#148;), (B)&nbsp;IT HAS ACQUIRED THIS NOTE IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C)&nbsp;IT IS AN INSTITUTIONAL &#147;ACCREDITED
INVESTOR&#148; (AS DEFINED IN RULE 501(a) (1), (2), (3)&nbsp;OR (7)&nbsp;OF REGULATION D UNDER THE SECURITIES ACT)
(AN &#147;<B>IAI</B>&#148;),
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(2)&nbsp;AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST
HEREIN, EXCEPT (A)&nbsp;TO THE ISSUER, THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B)&nbsp;TO A PERSON WHOM THE
SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C)&nbsp;IN AN OFFSHORE TRANSACTION MEETING THE
REQUIREMENTS OF RULE 903 OR 904 OF REGULATION S OF THE SECURITIES ACT, (D)&nbsp;IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (E)&nbsp;TO AN IAI THAT, PRIOR TO SUCH TRANSFER,
FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO
THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH
TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF
COUNSEL ACCEPTABLE TO THE ISSUER AND THE TRUSTEE THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE
SECURITIES ACT, (F)&nbsp;IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER AND THE TRUSTEE) OR
(G)&nbsp;PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->C-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE
JURISDICTION AND
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(3)&nbsp;AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">AS USED HEREIN, THE TERMS &#147;OFFSHORE TRANSACTIONS&#148; AND &#147;UNITED STATES&#148; HAVE THE MEANINGS GIVEN
TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE
FOREGOING.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->C-2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT D</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">DTC LEGEND
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (&#147;<B>DTC</B>&#148;), TO THE ISSUER OR ANY OF ITS SUBSIDIARIES OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE &#038; CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE &#038; CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &#038; CO., HAS A BENEFICIAL
INTEREST HEREIN.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED.
TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY DTC TO A
NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER
PROVISIONS OF THE INDENTURE.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->D-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT E</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Regulation&nbsp;S Certificate
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, ____
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Wilmington Trust Company<BR>
Rodney Square North<BR>
1100 North Market Street<BR>
Wilmington, DE 19890-1600<BR>
Facsimile: 302-636-4149<BR>
Attention: Corporate Client Services

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Hovnanian Enterprises, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issued under the Indenture (the &#147;<B>Indenture</B>&#148;) dated as</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">as of October&nbsp;20, 2009 relating to the Notes</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Dear Sirs:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Terms are used in this Certificate as used in Regulation&nbsp;S (&#147;<B>Regulation&nbsp;S</B>&#148;) under the
Securities Act of 1933, as amended (the &#147;<B>Securities Act</B>&#148;), except as otherwise stated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>&#091;CHECK A OR B AS APPLICABLE.&#093;</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Certificate relates to our proposed transfer of $_____ principal amount
of Notes issued under the Indenture. We hereby certify as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The offer and sale of the Notes was not and will
not be made to a person in the United States (unless such person is
excluded from the definition of &#147;U.S. person&#148; pursuant to Rule
902(k)(2)(vi) or the account held by it for which it is acting is
excluded from the definition of &#147;U.S. person&#148; pursuant to Rule
902(k)(2)(i) under the circumstances described in Rule&nbsp;902(g)(3)) and
such offer and sale was not and will not be specifically targeted at an
identifiable group of U.S. citizens abroad.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless the circumstances described in the
parenthetical in paragraph 1 above are applicable, either (a)&nbsp;at the
time the buy order was originated, the buyer was outside the United
States or we and any person acting</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->E-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on our behalf reasonably believed that the buyer was outside the
United States or (b)&nbsp;the transaction was executed in, on or through
the facilities of a designated offshore securities market, and
neither we nor any person acting on our behalf knows that the
transaction was pre-arranged with a buyer in the United States.</TD>
</TR>
<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither we, any of our affiliates, nor any person
acting on our or their behalf has made any directed selling efforts in
the United States with respect to the Notes.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The proposed transfer of Notes is not part of a
plan or scheme to evade the registration requirements of the Securities
Act.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we are a dealer or a person receiving a
selling concession, fee or other remuneration in respect of the Notes,
and the proposed transfer takes place during the Restricted Period (as
defined in the Indenture), or we are an officer or director of the
Company or an Initial Purchaser (as defined in the Indenture), we
certify that the proposed transfer is being made in accordance with the
provisions of Rule 904(b) of Regulation&nbsp;S.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Certificate relates to our proposed exchange of $_____ principal amount
of Notes issued under the Indenture for an equal principal amount of Notes to be
held by us. We hereby certify as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the time the offer and sale of the Notes was
made to us, either (i)&nbsp;we were not in the United States or (ii)&nbsp;we were
excluded from the definition of &#147;U.S. person&#148; pursuant to Rule
902(k)(2)(vi) or the account held by us for which we were acting was
excluded from the definition of &#147;U.S. person&#148; pursuant to Rule
902(k)(2)(i) under the circumstances described in Rule&nbsp;902(g)(3); and we
were not a member of an identifiable group of U.S. citizens abroad.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless the circumstances described in paragraph
1(ii) above are applicable, either (a)&nbsp;at the time our buy order was
originated, we were outside the United States or (b)&nbsp;the transaction was
executed in, on or through the facilities of a designated offshore
securities market and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->E-2<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt"><TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we did not pre-arrange the transaction in the United States.</TD>
</TR>
<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The proposed exchange of Notes is not part of a
plan or scheme to evade the registration requirements of the Securities
Act.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR><BR>
&#091;NAME OF SELLER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Upon transfer of certificated Notes, the Notes would be registered in the name of the new
beneficial owner as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>

<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">Taxpayer ID number:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->E-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT F</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Rule&nbsp;144A Certificate
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, ____
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Wilmington Trust Company<BR>
Rodney Square North<BR>
1100 North Market Street<BR>
Wilmington, DE 19890-1600<BR>
Facsimile: 302-636-4149<BR>
Attention: Corporate Client Services

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Hovnanian Enterprises, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issued under the Indenture (the &#147;<B>Indenture</B>&#148;) dated as</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">as of October&nbsp;20, 2009 relating to the Notes</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Certificate relates to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>&#091;CHECK A OR B AS APPLICABLE.&#093;</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our proposed purchase of $_____ principal amount of Notes issued under the
Indenture.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our proposed transfer or exchange of $_____ principal amount of Notes issued
under the Indenture for an equal principal amount of Notes to be held by us.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We and, if applicable, each account for which we are acting, are a qualified institutional
buyer within the meaning of Rule&nbsp;144A (&#147;<B>Rule&nbsp;144A</B>&#148;) under the Securities Act of 1933, as amended
(the &#147;<B>Securities Act</B>&#148;). If we are acting on behalf of an account, we exercise sole investment
discretion with respect to such account. We are aware that the transfer of Notes to us, or such
exchange, as applicable, is being made in reliance upon the exemption from the provisions of
Section&nbsp;5 of the Securities Act provided by Rule&nbsp;144A. Prior to the date of this Certificate we
have received such information regarding the Company as we have requested pursuant to Rule
144A(d)(4) or have determined not to request such information.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR><br>
&#091;NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Upon transfer of certificated Notes, the Notes would be registered in the name of the new
beneficial owner as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">Taxpayer ID number:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT G</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Institutional Accredited Investor Certificate
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Wilmington Trust Company<BR>
Rodney Square North<BR>
1100 North Market Street<BR>
Wilmington, DE 19890-1600<BR>
Facsimile: 302-636-4149<BR>
Attention: Corporate Client Services

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Hovnanian Enterprises, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issued under the Indenture (the &#147;<B>Indenture</B>&#148;) dated as</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">as of October&nbsp;20, 2009 relating to the Notes</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Certificate relates to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>&#091;CHECK A, B OR C AS APPLICABLE.&#093;</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our proposed purchase of $_____ principal amount of Notes issued under the
Indenture.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our proposed purchase of $_____ principal amount of a beneficial interest in
a Global Note</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our proposed transfer or exchange of $_____ principal amount of Notes issued
under the Indenture for an equal principal amount of Notes to be held by us.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We hereby confirm that:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are an institutional &#147;accredited investor&#148; as
defined in Rule&nbsp;501(a)(1), (2), (3)&nbsp;or (7)&nbsp;of Regulation&nbsp;D under the
Securities Act of 1933, as amended (the &#147;<B>Securities Act</B>&#148;) (an
&#147;<B>Institutional Accredited Investor</B>&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any acquisition of Notes by us will be for our
own account or for the account of one or more other Institutional
Accredited Investors as to which we exercise sole investment discretion.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->G-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have such knowledge and experience in
financial and business matters that we are capable of evaluating the
merits and risks of an investment in the Notes and we and any accounts
for which we are acting are able to bear the economic risks of and an
entire loss of our or their investment in the Notes.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are not acquiring the Notes or beneficial
interest therein with a view to any distribution thereof in a
transaction that would violate the Securities Act or the securities laws
of any State of the United States or any other applicable jurisdiction;
<I>provided</I>, that the disposition of our property and the property of any
accounts for which we are acting as fiduciary will remain at all times
within our and their control.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We acknowledge that the Notes have not been
registered under the Securities Act and that the Notes may not be
offered or sold within the United States or to or for the benefit of
U.S. persons except as set forth below.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The principal amount of Notes to which this
Certificate relates is at least equal to $250,000.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We agree for the benefit of the Issuer and the Guarantors, on our own behalf and on behalf of
each account for which we are acting, that we will not resell or otherwise transfer this Note or
any beneficial interest herein except (A)&nbsp;to the Issuer, the Company or any of its subsidiaries,
(B)&nbsp;to a person whom we reasonably believe is a QIB purchasing for its own account or for the
account of a QIB in a transaction meeting the requirements of Rule&nbsp;144A, (C)&nbsp;in an offshore
transaction meeting the requirements of Rule&nbsp;903 or 904 of Regulation&nbsp;S of the Securities Act, (D)
in a transaction meeting the requirements of Rule&nbsp;144 under the Securities Act, (E)&nbsp;to an
Institutional Accredited Investor that, prior to such transfer, furnishes the Trustee a signed
letter containing certain representations and agreements relating to the transfer of the Notes (the
form of which can be obtained from the Trustee) and, if such transfer is in respect of an aggregate
principal amount of Notes less than $250,000, an opinion of counsel acceptable to the Issuer and
the Trustee that such transfer is in compliance with the Securities Act, (F)&nbsp;in accordance with
another exemption form the registration requirements of the Securities Act (and based upon an
opinion of counsel acceptable to the Issuer and the Trustee) or (G)&nbsp;pursuant to an effective
Registration Statement and, in each case, in accordance with the applicable securities laws of any
state of the United States or any other applicable jurisdiction.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->G-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Prior to the registration of any transfer or exchange, we acknowledge that the Issuer reserves
the right to require the delivery of such legal opinions, certifications or other evidence as may
reasonably be required in order to determine that the proposed transfer or exchange is being made
in compliance with the Securities Act and applicable state securities laws. We acknowledge that no
representation is made as to the availability of any Rule&nbsp;144 exemption from the registration
requirements of the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We understand that the Trustee will not be required to accept for registration of transfer or
exchange any Notes acquired by us, except upon presentation of evidence satisfactory to the Issuer
and the Trustee that the foregoing restrictions on transfer have been complied with. We further
agree to deliver to each person acquiring any of the Notes or any beneficial interest therein from
us a notice advising such person that resales of the Notes are restricted as stated herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We agree to notify you promptly in writing if any of our acknowledgments, representations or
agreements herein ceases to be accurate and complete.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We represent to you that we have full power to make the foregoing acknowledgments,
representations and agreements on our own behalf and on behalf of any account for which we are
acting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR><BR>
&#091;NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->G-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Upon transfer of certificated Notes, the Notes would be registered in the name of the new
beneficial owner as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
<td>&nbsp;</td>
</tr>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><FONT style="white-space: nowrap">Taxpayer ID number:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->G-4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT H</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>&#091;COMPLETE FORM I OR FORM II AS APPLICABLE.&#093;</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>&#091;FORM I&#093;</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>Certificate of Beneficial Ownership</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">To: Wilmington Trust Company<BR>
Rodney Square North<BR>
1100 North Market Street<BR>
Wilmington, DE 19890-1600<BR>
Facsimile: 302-636-4149<BR>
Attention: Corporate Client Services

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">&#091;Euroclear Bank S.A./N.V., as operator of the Euroclear System&#093; <I>OR</I><br><br>
&#091;Clearstream Banking, <I>soci&#233;t&#233; anonyme</I>&#093;
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Hovnanian Enterprises, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issued under the Indenture (the &#147;<B>Indenture</B>&#148;) dated as</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">as of October&nbsp;20, 2009 relating to the Notes</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are the beneficial owner of $_____ principal amount of Notes issued under the Indenture and
represented by a Regulation&nbsp;S Temporary Global Note (as defined in the Indenture).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><I>&#091;CHECK A OR B AS APPLICABLE.&#093;</I>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are a non-U.S. person (within the meaning of Regulation&nbsp;S under the
Securities Act of 1933, as amended).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT>&nbsp;B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are a U.S. person (within the meaning of Regulation&nbsp;S under the
Securities Act of 1933, as amended) that purchased the Notes in a transaction that
did not require registration under the Securities Act of 1933, as amended.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->H-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR><BR>
&#091;NAME OF BENEFICIAL OWNER&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>&#091;FORM II&#093;</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><I>Certificate of Beneficial Ownership</I>
</DIV>


<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">To:</TD>
    <TD>&nbsp;</TD>
    <TD>Wilmington Trust Company<br>
Rodney Square North<br>
1100 North Market Street<br>
Wilmington, DE 19890-1600<br>
Facsimile: 302-636-4149<br>
Attention: Corporate Client Services</TD>
</TR>
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Hovnanian Enterprises, Inc.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (the &#147;<B>Notes</B>&#148;)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Issued under the Indenture (the &#147;<B>Indenture</B>&#148;) dated as</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">as of October&nbsp;20, 2009 relating to the Notes</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Ladies and Gentlemen:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This is to certify that based solely on certifications we have received in writing, by tested
telex or by electronic transmission from member organizations (&#147;<B>Member Organizations</B>&#148;) appearing in
our records as persons being entitled to a portion of the principal amount of Notes represented by
a Regulation&nbsp;S Temporary Global Note issued under the above-referenced Indenture, that as of the
date hereof, $_____ principal amount of Notes represented by the Regulation&nbsp;S Temporary Global Note
being submitted herewith for exchange is beneficially owned by persons that are either (i)&nbsp;non-U.S.
persons (within the meaning of Regulation&nbsp;S under the Securities Act of 1933, as amended) or (ii)
U.S. persons that purchased the Notes in a transaction that did not require registration under the
Securities Act of 1933, as amended.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->H-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We further certify that (i)&nbsp;we are not submitting herewith for exchange any portion of such
Regulation&nbsp;S Temporary Global Note excepted in such Member Organization certifications and (ii)&nbsp;as
of the date hereof we have not received any notification from any Member Organization to the effect
that the statements made by such Member Organization with respect to any portion of such Regulation
S Temporary Global Note submitted herewith for exchange are no longer true and cannot be relied
upon as of the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized
to produce this Certificate or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Yours faithfully,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&#091;EUROCLEAR BANK S.A./N.V., as operator of the Euroclear System&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="center">
OR<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="LEFT">&#091;CLEARSTREAM BANKING, <I>soci&#233;t&#233; anonyme</I>&#093;<BR>

&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Address:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT I</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE
HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY PERSON OTHER THAN (1)&nbsp;A NON-U.S. PERSON
OR (2)&nbsp;A U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER
THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE &#147;<B>SECURITIES ACT</B>&#148;). BENEFICIAL INTERESTS HEREIN
ARE NOT EXCHANGEABLE FOR CERTIFICATED NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH
THE TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN REGULATION S UNDER THE
SECURITIES ACT.
</DIV>
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</DIV>

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<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT J</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>UNRESTRICTED SUBSIDIARIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12TH* STREET RESIDENTIAL, LTD.<BR>
77 HUDSON STREET JOINT DEVELOPMENT, L.L.C.<BR>
BRIGHTBEACH DEVELOPMENT, LTD.<BR>
BRIGHTCHASE, LTD.<BR>
BRIGHTON HOMES AT WALDEN MANAGEMENT, L.L.C.<BR>
BRIGHTON HOMES AT WALDEN, LTD.<BR>
COBBLESTONE SQUARE DEVELOPMENT, L.L.C.<BR>
FIRST MORTGAGE LENDERS OF FLORIDA, L.L.C.<BR>
HERITAGE PINES, L.L.C.<BR>
HEXTER-FAIR LAND TITLE COMPANY I, INC.<BR>
HOVSITE CATALINA LLC<BR>
HOVSITE CHURCHILL CLUB LLC<BR>
HOVSITE CIDER GROVE LLC<BR>
HOVSITE FIRENZE LLC<BR>
HOVSITE FLORIDA HOLDINGS LLC<BR>
HOVSITE GREENWOOD MANOR LLC<BR>
HOVSITE HOLDINGS LLC<BR>
HOVSITE HUNT CLUB LLC<BR>
HOVSITE ILLINOIS HOLDINGS LLC<BR>
HOVSITE IRISH PRAIRIE LLC<BR>
HOVSITE LIBERTY LAKES LLC<BR>
HOVSITE MONTEVERDE 1 &#038; 2 LLC<BR>
HOVSITE MONTEVERDE 3 &#038; 4 LLC<BR>
HOVSITE PROVIDENCE LLC<BR>
HOVSITE SOUTHAMPTON LLC<BR>
HOVSTONE HOLDINGS, L.L.C.<BR>
HOVSTONE PROPERTIES FLORIDA, L.L.C.<BR>
HOVSTONE PROPERTIES ILLINOIS, L.L.C.<BR>
HOVSTONE PROPERTIES MINNESOTA, L.L.C.<BR>
HOVWEST LAND ACQUISITION, LLC<BR>
JAEGER ROAD 530, L.L.C.<BR>
K. HOVNANIAN 77 HUDSON STREET INVESTMENTS, L.L.C.<BR>
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C.<BR>
K. HOVNANIAN AT 77 HUDSON STREET URBAN RENEWAL COMPANY, L.L.C.<BR>
K. HOVNANIAN AT COBBLESTONE SQUARE CONDOMINIUMS, L.L.C.<BR>
K. HOVNANIAN AT DELRAY BEACH, L.L.C.<BR>
K. HOVNANIAN AT EAGLE&#146;S POINT, L.L.C.<BR>
K. HOVNANIAN AT MANALAPAN II, L.L.C.<BR>
K. HOVNANIAN AT PHILADELPHIA I, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL II, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL III, L.L.C.<BR>
K. HOVNANIAN AT TRENTON II, L.L.C.<BR>
K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C.<BR>
K. HOVNANIAN GT INVESTMENT, L.L.C.<BR>
K. HOVNANIAN HOVWEST HOLDINGS, L.L.C.<BR>
K. HOVNANIAN INVESTMENTS, L.L.C.<BR>
K. HOVNANIAN JV HOLDINGS, L.L.C.<BR>
K. HOVNANIAN JV SERVICES COMPANY, L.L.C.<BR>
K. HOVNANIAN MANALAPAN INVESTMENT, L.L.C.<BR>
K. HOVNANIAN NASSAU GROVE HOLDINGS, L.L.C.<BR>
K. HOVNANIAN POLAND, SP .Z.O.O.<BR>
LAUREL HIGHLANDS, LLC<BR>
M&#038;M AT MONROE WOODS, L.L.C.<BR>
MILLENNIUM TITLE AGENCY, LTD.<BR>
MM-BEACHFRONT NORTH I, L.L.C.<BR>
MM-BEACHFRONT NORTH II, L.L.C.<BR>
MSHOV HOLDING COMPANY, L.L.C.<BR>
Nassau Grove Enterprises, L.L.C.<BR>
NORTH MANATEE, L.L.C.<BR>
OLD CITY DELAWARE, L.L.C.<BR>
OLD CITY DEVELOPMENT, INC.<BR>
OLD CITY JOINT DEVELOPMENT, L.L.C.<BR>
PI INVESTMENTS I, L.L.C.<BR>
PRESTON GRANDE HOMES, INC.<BR>
PRESTON PARKER, L. P.<BR>
RR HOUSTON DEVELOPERS, LLC<BR>
RR HOUSTON DEVELOPMENT, L.P.<BR>
RR HOUSTON INVESTMENT, L.P.<BR>
RR HOUSTON INVESTORS, LLC<BR>
TOWN HOMES AT MONTGOMERY, L.L.C.<BR>
WHI-REPUBLIC, LLC<BR>
WINDWARD HOME MORTGAGE, L.L.C.<BR>
WOODMORE RESIDENTIAL, L.L.C.<BR>
WRIGHT FARM, LLC<BR>
WTC VENTURES, L.L.C.<BR>


</DIV>
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<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT K</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">THIS NOTE HAS BEEN ISSUED WITH &#147;ORIGINAL ISSUE DISCOUNT&#148; (WITHIN THE MEANING OF SECTION 1273 OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED). A HOLDER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL
ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTE BY SUBMITTING A WRITTEN REQUEST FOR
SUCH INFORMATION TO K. HOVNANIAN ENTERPRISES, INC. AT THE FOLLOWING ADDRESS: 110 WEST FRONT STREET,
P.O. BOX 500, RED BANK, NEW JERSEY 07701, ATTENTION: SECRETARY.
</DIV>


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</DIV>



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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>c91350exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FIRST AMENDMENT<BR>
TO<BR>
INTERCREDITOR AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>THIS FIRST AMENDMENT</B>, dated as of October&nbsp;20, 2009 (the &#147;<B>First Amendment</B>&#148;) to the
Intercreditor Agreement (as defined below), is entered into by and among HOVNANIAN ENTERPRISES,
INC. (&#147;<B>Hovnanian</B>&#148;), K. HOVNANIAN ENTERPRISES, INC. (the &#147;<B>Company</B>&#148;), each of the entities listed on
Schedule&nbsp;1 hereto (each a &#147;<B>Guarantor</B>&#148;), Wilmington Trust Company, as trustee under the First Lien
Indenture (as defined below ) (in such capacity, together with its successors and assigns, the
&#147;<B>First Lien Trustee</B>&#148;) and collateral agent under the security documents relating to the First Lien
Indenture (in such collateral agent capacity, together with its successors and assigns, the &#147;<B>First
Lien Collateral Agent</B>&#148;), Wilmington Trust Company, as successor to Deutsche Bank National Trust
Company as Trustee under the Indenture (in such capacity, together with its successors and assigns,
the &#147;<B>Noteholder Trustee</B>&#148;) and as collateral agent under the Noteholder Collateral Documents (in
such collateral agent capacity, together with its successors and assigns, the &#147;<B>Noteholder
Collateral Agent</B>&#148;), and Wilmington Trust Company, as collateral agent for the Mortgage Tax
Collateral (in such capacity, together with its successors and assigns, the &#147;<B>Mortgage Tax
Collateral Agent</B>&#148;) and, solely for the purpose of Section&nbsp;2(a), PNC Bank National Association as
administrative agent and collateral agent under the Original Credit Agreement (as defined below)
(in such capacities, the &#147;<B>Original First Lien Agent</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, Hovnanian, the Company, each other Guarantor, the Original First Lien Agent, the
Mortgage Tax Collateral Agent, the Noteholder Trustee and the Noteholder Collateral Agent are
parties to the Intercreditor Agreement dated as of May&nbsp;27, 2008 (the &#147;<B>Intercreditor Agreement</B>);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>the Company, in connection with a replacement and refinancing of the Seventh Amended
and Restated Credit Agreement, dated as of March&nbsp;7, 2008 (as subsequently amended, the &#147;<B>Original
Credit Agreement</B>&#148;) has issued 10 5/8% Senior Secured Notes due 2016 under the Indenture dated as of
October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise modified from time to
time, the &#147;<B>First Lien Indenture</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, accordingly, the Original First Lien Agent, effective upon repayment of the
obligations under the Original Credit Agreement, wishes to assign its rights and obligations as the
&#147;First-Lien Administrative Agent&#148;, &#147;Senior Credit Agent&#148; and &#147;an agent of the Senior Lenders&#148; under
the Intercreditor Agreement to Wilmington Trust Company, as First Lien Trustee and First Lien
Collateral Agent (in such capacity(ies), together with any successor or assigns, the &#147;<B>First-Lien
Administrative Agent</B>&#148; or &#147;<B>Senior Credit Agent</B>&#148;) and Wilmington Trust Company in such capacities
wishes to accept such assignment;
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>the Company has obtained the required consent from the Holders of the Notes
outstanding under the Indenture to effect the amendments set forth in this First Amendment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, all other acts and proceedings required by law, by the Indenture and by the charter
documents of the Company, Hovnanian and the other Guarantors to make this First Amendment a valid
and binding agreement for the purposes expressed herein, in accordance with its terms, have been
duly done and performed;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>NOW, THEREFORE</B>, in consideration of the premises and the covenants and agreements contained
herein, and for other good and valuable consideration the receipt of which is hereby acknowledged,
the Company, Hovnanian, the other Guarantors, the First Lien Trustee, the First Lien Collateral
Agent, the Noteholder Trustee, the Noteholder Collateral Agent, the Mortgage Tax Collateral Agent,
and the Original First Lien Agent hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;1.
</B><U>Definitions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any capitalized term used (including those in the recitals), but not otherwise defined, herein
shall have the meaning ascribed to it in the Intercreditor Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;2</B>.
<U>Assignment and Affirmation of Rights and Obligations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Original First Lien Agent hereby assigns, without representation, warranty or
recourse, to Wilmington Trust Company as trustee under the First Lien Indenture and collateral
agent under the security documents relating to the First Lien Indenture, effective upon repayment
of the obligations under the Original Credit Agreement (the &#147;<B>Effective Time</B>&#148;), its rights and
obligations as the &#147;First-Lien Administrative Agent&#148;, &#147;Senior Credit Agent&#148; and &#147;an agent of the
Senior Lenders&#148; under the Intercreditor Agreement and shall, from the Effective Time, have no
further obligations or rights with respect to the Intercreditor Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Wilmington Trust Company, in its capacities as First Lien Trustee and First Lien
Collateral Agent, hereby agrees that effective as of the Effective Time it hereby is, and shall be
deemed to be, together with its successors and assigns, the &#147;<B>First-Lien Administrative Agent</B>&#148;,
&#147;<B>Senior Credit Agent</B>&#148; and &#147;<B>an agent of the Senior Lenders</B>&#148; under the Intercreditor Agreement and it
shall perform, comply with and be subject to and bound by each of the terms and provisions of this
Intercreditor Agreement, as amended hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Each of Hovnanian, the Company, the Guarantors, the Noteholder Trustee, the Noteholder
Collateral Agent and the Mortgage Tax Collateral Agent
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">hereby reaffirms and agrees to each of the terms of, and its obligations under, the Intercreditor
Agreement, as amended hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Each of the parties hereto further agrees that the replacement and the refinancing of the
Original Credit Agreement (and the release of the liens related thereto) shall not be deemed to be
a Discharge of Senior Lender Claims for purposes of the Intercreditor Agreement, as amended, and
that the First Lien Indenture is within the definition of &#147;Credit Agreement&#148; under the
Intercreditor Agreement, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;3.
</B><U>Modifications to the Intercreditor Agreement</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The definition of &#147;Additional Mortgage Collateral&#148; in Section 1(a) of the Intercreditor
Agreement is hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<U>Additional Mortgaged Collateral</U>&#148; means any real property collateral, with respect to
which a lien on and security interest in, was and is required to be granted to the Noteholder
Collateral Agent pursuant to Section&nbsp;4.18(a) and Section&nbsp;4.18(b) of the Indenture (other than as
set forth in Section&nbsp;4.18(c) of the Indenture).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The definition of &#147;Credit Agreement&#148; in Section 1(a) of the Intercreditor Agreement is
hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<U>Credit
Agreement</U>&#148; means that Indenture, dated as of October&nbsp;20, 2009, among the Company,
Hovnanian, the other Grantors party thereto, and Wilmington Trust Company, as trustee, as it may be
amended, restated, supplemented, renewed, modified, refunded, replaced, revised, restructured or
refinanced in whole or in part from time to time, and if at any time a Discharge of Senior Lender
Claims occurs with respect to the Credit Agreement, then the term &#147;Credit Agreement&#148; shall mean the
Future First-Lien Indebtedness designated by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The definition of &#147;First-Lien Indebtedness&#148; in Section 1(a) of the Intercreditor Agreement
is hereby amended by replacing &#147;$300,000,000&#148; with &#147;$800,000,000&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The definition of &#147;Initial Mortgage Collateral&#148; in Section 1(a) of the Intercreditor
Agreement is hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<U>Initial Mortgaged Collateral</U>&#148; means any real property collateral, with respect to
which a lien on and security interest in, was required to have been granted to the Noteholder
Collateral Agent pursuant to Section&nbsp;4.18(c)(i) of the Indenture by July&nbsp;31, 2008, which date may
have been extended for up to 60&nbsp;days as described in such Section&nbsp;4.18(c)(i);
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;Section&nbsp;2.5 of the Intercreditor Agreement is hereby amended by adding to the end thereof
the phrase &#147;; provided, however, that so long as there is no prohibition in the Credit Agreement on
incurrence of Third-Lien Obligations in excess of $700,000,000, the First Lien Administrative
Agent, the Senior Credit Agent and the Mortgage Tax Collateral Agent (acting on behalf of the
Senior Lenders), for itself and on behalf of each of the Senior Lenders, authorizes the Company to
incur Third-Lien Obligations in excess of $700,000,000, to the extent otherwise in compliance with
the provisions of this Section&nbsp;2.5, the Credit Agreement and to the extent the Noteholder Trustee,
the Noteholder Collateral Agent and the Mortgage Tax Collateral Agent (acting on behalf of the
Noteholders) consent to such incurrence.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;The upper-case &#147;Collateral&#148; as it appears in Section&nbsp;5.6 before the words &#147;shall also be
subject to a Lien in favor of the Senior Lenders&#148; shall be changed to lower-case &#147;collateral&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;For each appearance in Section&nbsp;5.7(c) of the capitalized term &#147;Collateral&#148; (other than as
part of a multi-word defined term) or the capitalized term &#147;Additional Collateral&#148;, substitute
&#147;Common Collateral&#148; for such term; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;Section&nbsp;6.1(a)(ii) of the Intercreditor Agreement is hereby amended by deleting the
phrase: &#147;and the aggregate principal amount of the DIP Financing together with the aggregate
principal amount of the First-Lien Indebtedness does not exceed $400&nbsp;million&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;4.
</B><U>Designations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">For all purposes of the Intercreditor Agreement (as amended hereby) and the Indenture, the
Company hereby designates the Indebtedness incurred pursuant to the First Lien Indenture as
First-Lien Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;5</B>. <U>First Lien Administrative Agent</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">It is understood and agreed that Wilmington
Trust Company is entering into this First Amendment in its capacity as First Lien Trustee under the
First Lien Indenture and First Lien Collateral Agent under the security documents relating to the
First Lien Indenture and the provisions of Article&nbsp;7 of the First Lien Indenture applicable to the
Trustee thereunder shall also apply to Wilmington Trust Company in its capacities as First-Lien
Administrative Agent, Senior Credit Agent and &#147;an agent of the Senior Lenders&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;6</B>.
<U>Effectiveness</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">This First Amendment will become effective immediately upon its execution and delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;7.
</B><U>Governing Law</U>.
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This First Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;8.
</B><U>Binding on Successors and Assigns</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This First Amendment shall be binding upon the First-Lien Administrative Agent, the Senior
Credit Agent, the Senior Lenders, the Mortgage Tax Collateral Agent, the Trustee, the Noteholder
Collateral Agent, the Noteholders, Hovnanian, the Company, the Guarantors, the Original First Lien
Agent and their respective permitted successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;9.
</B><U>Section&nbsp;Titles</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The section titles contained in this First Amendment are and shall be without substantive
meaning or content of any kind whatsoever and are not a part of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;10.
</B><U>Counterparts; Telecopy Signatures</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U> </U> This First Amendment may be signed in any number of counterparts each of which shall
be an original, but all of which together shall constitute one and the same instrument; and,
delivery of executed signature pages hereof by telecopy transmission, or other electronic
transmission in <I>pdf </I>or similar format, from one party to another shall constitute effective and
binding execution and delivery of this First Amendment by such party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;11.
</B><U>Authorization</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">By its signature, each Person executing this First Amendment on behalf of a party hereto
represents and warrants to the other parties hereto that it is duly authorized to execute this
First Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">&#091;REMAINDER OF PAGE LEFT BLANK INTENTIONALLY&#093;
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, each of the undersigned has caused this First Amendment to be duly
executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">On behalf of each of the entities listed on<BR>
Schedule&nbsp;1 hereto<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY,<BR>
as First Lien Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Patrick
J. Healy</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY,<BR>
as First Lien Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Patrick
J. Healy</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY,<BR>
as Noteholder Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Patrick
J. Healy</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY,<BR>
as Noteholder Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/&nbsp;Patrick
J. Healy</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as<BR>
Mortgage Tax Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ James A. Hanley
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James A. Hanley&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PNC BANK, NATIONAL<BR>
ASSOCIATION , as Original First Lien<BR>
Agent under Original Credit Agreement<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  James R. Litton
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James R. Litton&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PNC BANK, NATIONAL <BR>
ASSOCIATION , as Collateral Agent<BR>
under Original Credit Agreement<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  James R. Litton
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James R. Litton&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE 1</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Auddie Enterprises, L.L.C.<BR>
Builder Services NJ, L.L.C.<BR>
Builder Services NY, L.L.C.<BR>
Builder Services PA, L.L.C.<BR>
Dulles Coppermine, L.L.C.<BR>
EASTERN TITLE AGENCY, INC.<BR>
F&#038;W MECHANICAL SERVICES, L.L.C.<BR>
Founders Title Agency of Maryland, L.L.C.<BR>
FOUNDERS TITLE AGENCY, INC.<BR>
Governor&#146;s Abstract Co., Inc.<BR>
Homebuyers Financial Services, L.L.C.<BR>
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.<BR>
Hovnanian Land Investment Group of California, L.L.C.<BR>
HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.<BR>
Hovnanian Land Investment Group of Georgia, L.L.C.<BR>
Hovnanian Land Investment Group of Maryland, L.L.C.<BR>
Hovnanian Land Investment Group of New Jersey, L.L.C.<BR>
Hovnanian Land Investment Group of North Carolina, L.L.C.<BR>
Hovnanian Land Investment Group of Pennsylvania, L.L.C.<BR>
Hovnanian Land Investment Group of Texas LLC<BR>
Hovnanian Land Investment Group of Virginia, L.L.C.<BR>
Hovnanian Land Investment Group, L.L.C.<BR>
K. H. San Marcos Conservancy Holdings, L.L.C.<BR>
K. HOV INTERNATIONAL, INC.<BR>
K. HOV IP, II, Inc.<BR>
K. HOV IP, INC.<BR>
K. Hovnanian Acquisitions, Inc.<BR>
K. Hovnanian at 4S, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Acqua Vista, LLC<BR>
K. Hovnanian at Aliso, LLC<BR>
K. Hovnanian at Allenberry, L.L.C.<BR>
K. Hovnanian at Allentown, L.L.C.<BR>
K. Hovnanian at Almond Estates, LLC<BR>
K. Hovnanian at Arbor Heights, LLC<BR>
K. HOVNANIAN AT AVENUE ONE, L.L.C.<BR>
K. Hovnanian at Bakersfield 463, L.L.C.<BR>
K. Hovnanian at Barnegat I, L.L.C.<BR>
K. Hovnanian at Barnegat II, L.L.C.<BR>
K. Hovnanian at Bella Lago, LLC<BR>
K. Hovnanian at Berkeley, L.L.C.<BR>
K. Hovnanian at Bernards IV, Inc.<BR>
K. Hovnanian at Bernards V, L.L.C.<BR>
K. Hovnanian at Blue Heron Pines, L.L.C.<BR>
K. HOVNANIAN AT BRANCHBURG III, INC.<BR>
K. Hovnanian at Bridgeport, Inc.<BR>
K. Hovnanian at Bridgewater I, L.L.C.<BR>
K. Hovnanian at Bridgewater VI, Inc.<BR>
K. Hovnanian at Broad and Walnut, L.L.C.<BR>
K. Hovnanian at Burlington III, Inc.<BR>
K. HOVNANIAN AT BURLINGTON, INC.<BR>
K. Hovnanian at Calabria, Inc.<BR>
K. Hovnanian at Camden I, L.L.C.<BR>
K. Hovnanian at Cameron Chase, Inc.<BR>
K. HOVNANIAN AT CAMP HILL, L.L.C.<BR>
K. HOVNANIAN AT CAPISTRANO, L.L.C.<BR>
K. Hovnanian at Carmel Del Mar, Inc.<BR>
K. Hovnanian at Carmel Village, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Castile, Inc.<BR>
K. Hovnanian at Cedar Grove III, L.L.C.<BR>
K. Hovnanian at Cedar Grove IV, L.L.C.<BR>
K. Hovnanian at Chaparral, Inc.<BR>
K. Hovnanian at Charter Way, LLC<BR>
K. Hovnanian at Chester I, L.L.C.<BR>
K. Hovnanian at Chesterfield, L.L.C.<BR>
K. Hovnanian at Cielo, L.L.C.<BR>
K. HOVNANIAN AT CLARKSTOWN, INC.<BR>
K. Hovnanian at Clifton II, L.L.C.<BR>
K. Hovnanian at Clifton, L.L.C.<BR>
K. Hovnanian at Coastline, L.L.C.<BR>
K. Hovnanian at Cortez Hill, LLC<BR>
K. Hovnanian at Cranbury, L.L.C.<BR>
K. Hovnanian at Crestline, Inc.<BR>
K. Hovnanian at Curries Woods, L.L.C.<BR>
K. Hovnanian at Denville, L.L.C.<BR>
K. Hovnanian at Deptford Township, L.L.C.<BR>
K. Hovnanian at Dominguez Hills, Inc.<BR>
K. Hovnanian at Dover, L.L.C.<BR>
K. Hovnanian at East Brandywine, L.L.C.<BR>
K. Hovnanian At East Whiteland I, Inc.<BR>
K. Hovnanian at Eastlake, LLC<BR>
K. Hovnanian at Edgewater II, L.L.C.<BR>
K. Hovnanian at Edgewater, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch II, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Elk Township, L.L.C.<BR>
K. Hovnanian at Encinitas Ranch, LLC<BR>
K. Hovnanian at Evergreen, L.L.C.<BR>
K. Hovnanian at Ewing, L.L.C.<BR>
K. Hovnanian at Fiddyment Ranch, LLC<BR>
K. Hovnanian at Fifth Avenue, L.L.C.<BR>
K. Hovnanian at Florence I, L.L.C.<BR>
K. Hovnanian at Florence II, L.L.C.<BR>
K. Hovnanian at Forest Meadows, L.L.C.<BR>
K. HOVNANIAN AT FORKS TWP. I, L.L.C.<BR>
K. Hovnanian at Franklin, L.L.C.<BR>
K. Hovnanian at Freehold Township I, Inc.<BR>
K. Hovnanian at Freehold Township, L.L.C.<BR>
K. Hovnanian at Fresno, LLC<BR>
K. Hovnanian at Galloway, L.L.C.<BR>
K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.<BR>
K. Hovnanian at Great Notch, L.L.C.<BR>
K. Hovnanian at Gridley, LLC<BR>
K. Hovnanian at Guttenberg, L.L.C.<BR>
K. Hovnanian at Hackettstown II, L.L.C.<BR>
K. Hovnanian at Hackettstown, Inc.<BR>
K. Hovnanian at Hamburg Contractors, L.L.C.<BR>
K. Hovnanian at Hamburg, L.L.C.<BR>
K. Hovnanian at Hawthorne, L.L.C.<BR>
K. Hovnanian at Hazlet, L.L.C.<BR>
K. Hovnanian at Hershey&#146;s Mill, Inc.<BR>
K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.<BR>
K. Hovnanian at Highland Vineyards, Inc.<BR>
K. Hovnanian at Hilltop, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Hopewell IV, Inc.<BR>
K. Hovnanian at Hopewell VI, Inc.<BR>
K. Hovnanian at Howell Township, Inc.<BR>
K. HOVNANIAN AT HUDSON POINTE, L.L.C.<BR>
K. Hovnanian at Jackson I, L.L.C.<BR>
K. Hovnanian at Jackson, L.L.C.<BR>
K. Hovnanian at Jaeger Ranch, LLC<BR>
K. Hovnanian at Jersey City IV, L.L.C.<BR>
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.<BR>
K. Hovnanian at Keyport, L.L.C.<BR>
K. Hovnanian at King Farm, L.L.C.<BR>
K. Hovnanian at Kings Grant I, Inc.<BR>
K. Hovnanian at La Costa Greens, L.L.C.<BR>
K. Hovnanian at La Costa, LLC<BR>
K. Hovnanian at La Habra Knolls, LLC<BR>
K. Hovnanian at La Laguna, L.L.C.<BR>
K. Hovnanian at La Terraza, Inc.<BR>
K. Hovnanian At Lafayette Estates, L.L.C.<BR>
K. Hovnanian at Lake Rancho Viejo, LLC<BR>
K. Hovnanian at Lake Ridge Crossing, L.L.C.<BR>
K. Hovnanian at Lake Terrapin, L.L.C.<BR>
K. Hovnanian at Lakewood, Inc.<BR>
K. Hovnanian at Landmark, LLC<BR>
K. Hovnanian at LaPaz, LLC<BR>
K. Hovnanian at Larkspur, LLC<BR>
K. Hovnanian at Lawrence V, L.L.C.<BR>
K. Hovnanian at Lee Square, L.L.C.<BR>
K. Hovnanian at Linwood, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Contractors, L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Little Egg Harbor III, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor, L.L.C<BR>
K. Hovnanian at Live Oak II, LLC<BR>
K. Hovnanian at Long Branch I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township II, L.L.C.<BR>
K. Hovnanian at Lower Makefield Township I, L.L.C.<BR>
K. Hovnanian at Lower Moreland I, L.L.C.<BR>
K. Hovnanian at Lower Moreland II, L.L.C.<BR>
K. Hovnanian at Lower Moreland III, L.L.C.<BR>
K. Hovnanian at Lower Saucon, Inc.<BR>
K. Hovnanian at Macungie, L.L.C.<BR>
K. HOVNANIAN AT MAHWAH II, INC.<BR>
K. Hovnanian at Mahwah VI, Inc.<BR>
K. Hovnanian at Mahwah VII, Inc.<BR>
K. Hovnanian at Malan Park, L.L.C.<BR>
K. Hovnanian at Manalapan III, L.L.C.<BR>
K. Hovnanian at Manalapan, Inc.<BR>
K. Hovnanian at Mansfield I, L.L.C.<BR>
K. Hovnanian at Mansfield II, L.L.C.<BR>
K. Hovnanian at Mansfield III, L.L.C.<BR>
K. Hovnanian at Maple Avenue, L.L.C.<BR>
K. Hovnanian at Marlboro II, Inc.<BR>
K. Hovnanian at Marlboro Township III, Inc.<BR>
K. Hovnanian at Marlboro Township IV, Inc.<BR>
K. Hovnanian at Marlboro Township IX, L.L.C.<BR>
K. Hovnanian at Marlboro Township V, L.L.C.<BR>
K. Hovnanian at Marlboro Township VIII, L.L.C.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Marlboro VI, L.L.C.<BR>
K. Hovnanian at Marlboro VII, L.L.C.<BR>
K. Hovnanian at Matsu, L.L.C.<BR>
K. Hovnanian at Melanie Meadows, LLC<BR>
K. Hovnanian at Mendham Township, L.L.C.<BR>
K. Hovnanian at Menifee, LLC<BR>
K. Hovnanian at Middle Township II, L.L.C.<BR>
K. Hovnanian at Middle Township, L.L.C.<BR>
K. Hovnanian at Middletown II, L.L.C.<BR>
K. Hovnanian at Middletown, L.L.C.<BR>
K. Hovnanian at Millville I, L.L.C.<BR>
K. Hovnanian at Millville II, L.L.C.<BR>
K. HOVNANIAN AT MONROE II, INC.<BR>
K. Hovnanian at Monroe III, L.L.C.<BR>
K. Hovnanian at Monroe IV, L.L.C.<BR>
K. Hovnanian at Monroe NJ, L.L.C.<BR>
K. Hovnanian at Montgomery I, Inc.<BR>
K. Hovnanian at Montvale, L.L.C.<BR>
K. Hovnanian at Mosaic, LLC<BR>
K. Hovnanian at Mt. Olive Township, L.L.C.<BR>
K. Hovnanian at Muirfield, LLC<BR>
K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at New Windsor, L.L.C.<BR>
K. Hovnanian at North Bergen. L.L.C.<BR>
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.<BR>
K. Hovnanian at North Caldwell II, L.L.C.<BR>
K. Hovnanian at North Caldwell III, L.L.C.<BR>
K. Hovnanian at North Caldwell, L.L.C.<BR>
K. Hovnanian at North Haledon, L.L.C.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at North Wildwood, L.L.C.<BR>
K. Hovnanian at Northampton. L.L.C.<BR>
K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.<BR>
K. Hovnanian at Northfield, L.L.C.<BR>
K. Hovnanian at Northlake, Inc.<BR>
K. Hovnanian at Ocean Township, Inc.<BR>
K. HOVNANIAN AT OCEAN WALK, INC.<BR>
K. Hovnanian at Oceanport, L.L.C.<BR>
K. Hovnanian at Old Bridge, L.L.C.<BR>
K. Hovnanian at Olde Orchard, LLC<BR>
K. Hovnanian at Pacific Bluffs, LLC<BR>
K. Hovnanian at Paramus, L.L.C.<BR>
K. Hovnanian at Park Lane, LLC<BR>
K. Hovnanian at Parkside, LLC<BR>
K. Hovnanian at Parsippany-Troy Hills, L.L.C.<BR>
K. Hovnanian at Perkiomen I, Inc.<BR>
K. Hovnanian at Perkiomen II, Inc.<BR>
K. Hovnanian at Philadelphia II, L.L.C.<BR>
K. Hovnanian at Philadelphia III, L.L.C.<BR>
K. Hovnanian at Philadelphia IV, L.L.C.<BR>
K. Hovnanian at Piazza D&#146;Oro, L.L.C.<BR>
K. Hovnanian at Piazza Serena, L.L.C<BR>
K. Hovnanian at Pittsgrove, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.<BR>
K. Hovnanian at Prado, L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Rancho Cristianitos, Inc.<BR>
K. Hovnanian at Rancho Santa Margarita, LLC<BR>
K. Hovnanian at Randolph I, L.L.C.<BR>
K. HOVNANIAN AT RAPHO, L.L.C<BR>
K. Hovnanian at Readington II, L.L.C.<BR>
K. Hovnanian at Red Bank, L.L.C.<BR>
K. Hovnanian at Reservoir Ridge, Inc.<BR>
K. Hovnanian at Ridgemont, L.L.C.<BR>
K. Hovnanian at Ridgestone, L.L.C.<BR>
K. Hovnanian at Riverbend, LLC<BR>
K. Hovnanian at Rivercrest, LLC<BR>
K. Hovnanian at Roderuck, L.L.C.<BR>
K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.<BR>
K. Hovnanian at Rowland Heights, LLC<BR>
K. Hovnanian at Sage, L.L.C.<BR>
K. Hovnanian at San Sevaine, Inc.<BR>
K. Hovnanian at Santa Nella, LLC<BR>
K. Hovnanian at Saratoga, Inc.<BR>
K. Hovnanian at Sawmill, Inc.<BR>
K. Hovnanian at Sayreville, L.L.C.<BR>
K. HOVNANIAN AT SCOTCH PLAINS II, INC.<BR>
K. Hovnanian at Scotch Plains, L.L.C.<BR>
K. Hovnanian at Sierra Estates, LLC<BR>
K. Hovnanian at Silver Spring, L.L.C.<BR>
K. Hovnanian at Skye Isle, LLC<BR>
K. Hovnanian at Smithville III, L.L.C.<BR>
K. Hovnanian at Smithville, Inc.<BR>
K. Hovnanian at Somers Point, L.L.C.<BR>
K. Hovnanian at South Brunswick V, Inc.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at South Brunswick, L.L.C.<BR>
K. Hovnanian at Sparta, L.L.C.<BR>
K. HOVNANIAN AT SPRINGCO, L.L.C.<BR>
K. Hovnanian at Stone Canyon, Inc.<BR>
K. HOVNANIAN AT STONY POINT, INC.<BR>
K. Hovnanian at Sunsets, LLC<BR>
K. Hovnanian at Sycamore, Inc.<BR>
K. Hovnanian at Tannery Hill, Inc.<BR>
K. Hovnanian at Teaneck, L.L.C.<BR>
K. Hovnanian at The Bluff, Inc.<BR>
K. Hovnanian at The Crosby, LLC<BR>
K. Hovnanian at The Gables, LLC<BR>
K. Hovnanian at The Monarch, L.L.C.<BR>
K. Hovnanian at The Preserve, LLC<BR>
K. Hovnanian at Thompson Ranch, LLC<BR>
K. Hovnanian at Thornbury, Inc.<BR>
K. Hovnanian at Tierrasanta, Inc.<BR>
K. Hovnanian at Trail Ridge, LLC<BR>
K. Hovnanian at Trenton, L.L.C.<BR>
K. Hovnanian at Trovata, Inc.<BR>
K. Hovnanian at Union Township I, Inc.<BR>
K. Hovnanian at Union Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township I, Inc.<BR>
K. Hovnanian at Upper Freehold Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township III, L.L.C.<BR>
K. Hovnanian at Upper Makefield I, Inc.<BR>
K. Hovnanian at Upper Uwchlan II, L.L.C.<BR>
K. Hovnanian at Upper Uwchlan, L.L.C.<BR>
K. Hovnanian at Vail Ranch, Inc.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Valle Del Sol, LLC<BR>
K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at Victorville, L.L.C.<BR>
K. HOVNANIAN AT VINELAND, L.L.C.<BR>
K. Hovnanian at Vista Del Sol, L.L.C.<BR>
K. Hovnanian at Wall Township VI, Inc.<BR>
K. Hovnanian at Wall Township VIII, Inc.<BR>
K. Hovnanian at Wanaque, L.L.C.<BR>
K. Hovnanian at Warren Township, L.L.C.<BR>
K. Hovnanian at Washington, L.L.C.<BR>
K. HOVNANIAN AT WASHINGTONVILLE, INC.<BR>
K. Hovnanian at Wayne III, Inc.<BR>
K. Hovnanian at Wayne IX, L.L.C.<BR>
K. Hovnanian at Wayne V, Inc.<BR>
K. HOVNANIAN AT WAYNE, VIII, L.L.C.<BR>
K. Hovnanian at West Bradford, L.L.C.<BR>
K. Hovnanian at West Milford, L.L.C.<BR>
K. Hovnanian at West View Estates, L.L.C.<BR>
K. Hovnanian at West Windsor, L.L.C.<BR>
K. Hovnanian at Westshore, LLC<BR>
K. Hovnanian at Wheeler Ranch, LLC<BR>
K. Hovnanian at Wildrose, Inc.<BR>
K. Hovnanian at Wildwood Bayside, L.L.C.<BR>
K. Hovnanian at Willow Brook, L.L.C.<BR>
K. HOVNANIAN AT WINCHESTER, LLC<BR>
K. Hovnanian at Woodcreek West, LLC<BR>
K. Hovnanian at Woodhill Estates, L.L.C.<BR>
K. Hovnanian at Woolwich I, L.L.C.<BR>
K. Hovnanian Cambridge Homes, L.L.C.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.<BR>
K. Hovnanian Classics CIP, L.L.C.<BR>
K. Hovnanian Classics, L.L.C.<BR>
K. Hovnanian Communities, Inc.<BR>
K. Hovnanian Companies Metro D.C. North, L.L.C.<BR>
K. Hovnanian Companies Northeast, Inc.<BR>
K. Hovnanian Companies of California, Inc.<BR>
K. HOVNANIAN COMPANIES OF MARYLAND, INC.<BR>
K. HOVNANIAN COMPANIES OF NEW YORK, INC.<BR>
K. Hovnanian Companies of Pennsylvania, Inc.<BR>
K. Hovnanian Companies of Southern California, Inc.<BR>
K. Hovnanian Companies of Virginia, Inc.<BR>
K. Hovnanian Companies, LLC<BR>
K. Hovnanian Connecticut Acquisitions, L.L.C.<BR>
K. Hovnanian Construction II, Inc<BR>
K. Hovnanian Construction III, Inc<BR>
K. Hovnanian Construction Management, Inc.<BR>
K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.<BR>
K. Hovnanian Delaware Acquisitions, L.L.C.<BR>
K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.<BR>
K. Hovnanian Developments of California, Inc.<BR>
K. Hovnanian Developments of Connecticut, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF D.C., INC.<BR>
K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.<BR>
K. Hovnanian Developments of Georgia, Inc.<BR>
K. Hovnanian Developments of Illinois, Inc.<BR>
K. Hovnanian Developments of Indiana, Inc.<BR>
K. Hovnanian Developments of Kentucky, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Developments of Michigan, Inc.<BR>
K. Hovnanian Developments of Minnesota, Inc.<BR>
K. Hovnanian Developments of New Jersey II, Inc.<BR>
K. Hovnanian Developments of New Jersey, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.<BR>
K. Hovnanian Developments of North Carolina, Inc.<BR>
K. Hovnanian Developments of Ohio, Inc.<BR>
K. Hovnanian Developments of Pennsylvania, Inc.<BR>
K. Hovnanian Developments of South Carolina, Inc.<BR>
K. Hovnanian Developments of Texas, Inc.<BR>
K. Hovnanian Developments of Virginia, Inc.<BR>
K. Hovnanian Developments of West Virginia, Inc.<BR>
K. Hovnanian Eastern Pennsylvania, L.L.C.<BR>
K. HOVNANIAN FIRST HOMES, L.L.C.<BR>
K. Hovnanian Florida Realty, L.L.C.<BR>
K. Hovnanian Forecast Homes Northern, Inc.<BR>
K. Hovnanian Four Seasons @ Historic Virginia, LLC<BR>
K. Hovnanian Four Seasons at Gold Hill, LLC<BR>
K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC<BR>
K. HOVNANIAN GREAT WESTERN HOMES, LLC<BR>
K. Hovnanian Holdings NJ, L.L.C.<BR>
K. Hovnanian Homes &#151; DFW, L.L.C.<BR>
K. Hovnanian Homes at Cameron Station, LLC<BR>
K. Hovnanian Homes at Camp Springs, L.L.C.<BR>
K. Hovnanian Homes at Fairwood, L.L.C.<BR>
K. Hovnanian Homes at Forest Run, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 1, L.L.C.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Homes at Jones Station 2, L.L.C.<BR>
K. Hovnanian Homes at Maxwell Place, L.L.C.<BR>
K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.<BR>
K. Hovnanian Homes at Primera, L.L.C.<BR>
K. Hovnanian Homes at Renaissance Plaza, L.L.C.<BR>
K. Hovnanian Homes at Russett, L.L.C.<BR>
K. Hovnanian Homes of D.C., L.L.C.<BR>
K. HOVNANIAN HOMES OF DELAWARE, L.L.C.<BR>
K. Hovnanian Homes of Georgia, L.L.C.<BR>
K. Hovnanian Homes of Houston, L.L.C.<BR>
K. Hovnanian Homes of Indiana, L.L.C.<BR>
K. Hovnanian Homes of Maryland, L.L.C.<BR>
K. Hovnanian Homes of Minnesota, L.L.C.<BR>
K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.<BR>
K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.<BR>
K. Hovnanian Homes of South Carolina, LLC<BR>
K. Hovnanian Homes of Virginia, Inc.<BR>
K. Hovnanian Homes of West Virginia, L.L.C.<BR>
K. Hovnanian North Central Acquisitions, L.L.C.<BR>
K. Hovnanian North Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Northeast Services, L.L.C.<BR>
K. Hovnanian of Houston II, L.L.C.<BR>
K. Hovnanian Ohio Realty, L.L.C.<BR>
K. HOVNANIAN OSTER HOMES, L.L.C.<BR>
K. Hovnanian PA Real Estate, Inc.<BR>
K. Hovnanian Pennsylvania Acquisitions, L.L.C.<BR>
K. Hovnanian Port Imperial Urban Renewal, Inc.<BR>
K. Hovnanian Properties of Red Bank, Inc.<BR>
K. Hovnanian Shore Acquisitions, L.L.C.

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian South Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Southern New Jersey, L.L.C.<BR>
K. HOVNANIAN STANDING ENTITY, L.L.C.<BR>
K. Hovnanian Summit Holdings, L.L.C.<BR>
K. Hovnanian Summit Homes of Kentucky, L.L.C.<BR>
K. Hovnanian Summit Homes of Michigan, L.L.C.<BR>
K. Hovnanian Summit Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Summit Homes of West Virginia, L.L.C.<BR>
K. Hovnanian Summit Homes, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Florida, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Illinois, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.<BR>
K. HOVNANIAN T&#038;C INVESTMENT, L.L.C.<BR>
K. Hovnanian T&#038;C Management Co., L.L.C.<BR>
K. Hovnanian Venture I, L.L.C.<BR>
K. HOVNANIAN WINDWARD HOMES, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT BAKERSFIELD, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Beaumont, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hemet, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Huntfield,L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Los Banos, LLC

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT RENAISSANCE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Westshore, LLC<BR>
K. Hovnanian&#146;s Four Seasons, LLC<BR>
K. Hovnanian&#146;s Parkside at Towngate, L.L.C.<BR>
K. Hovnanian&#146;s Private Home Portfolio, L.L.C.<BR>
KHIP, L.L.C.<BR>
LANDARAMA, INC.<BR>
M &#038; M at Long Branch, Inc<BR>
M&#038;M at Chesterfield, LLC<BR>
M&#038;M AT Copper Beech, L.L.C.<BR>
M&#038;M AT Crescent Court, L.L.C.<BR>
M&#038;M at East Rutherford, L.L.C.<BR>
M&#038;M AT MORRISTOWN, L.L.C.<BR>
M&#038;M AT SPINNAKER POINTE, L.L.C.<BR>
M&#038;M AT SPRUCE HOLLOW, L.L.C.<BR>
M&#038;M AT SPRUCE RUN, L.L.C.<BR>
M&#038;M at Station Square, L.L.C.<BR>
M&#038;M at Tamarack Hollow, L.L.C.<BR>
M&#038;M AT UNION, L.L.C.<BR>
M&#038;M at West Orange, L.L.C.<BR>
M&#038;M at Wheatena Urban Renewal, L.L.C.<BR>
M&#038;M INVESTMENTS, L.P.<BR>
Matzel &#038; Mumford at Egg Harbor, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">MATZEL &#038; MUMFORD AT MONTGOMERY, L.L.C.<BR>
Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.<BR>
MCNJ, Inc.<BR>
Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.<BR>
MIDWEST BUILDING PRODUCTS &#038; CONTRACTOR SERVICES, L.L.C.<BR>
MMIP, L.L.C.<BR>
Natomas Central Neighborhood Housing, L.L.C.<BR>
New Land Title Agency, L.L.C.<BR>
PADDOCKS, L.L.C.<BR>
PARK TITLE COMPANY, LLC<BR>
Pine Ayr, LLC<BR>
RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.<BR>
Ridgemore Utility, L.L.C.<BR>
SEABROOK ACCUMULATION CORPORATION<BR>
STONEBROOK HOMES, INC.<BR>
Terrapin Realty, L.L.C.<BR>
The Matzel &#038; Mumford Organization, Inc<BR>
Washington Homes at Columbia Town Center, L.L.C.<BR>
Washington Homes, Inc.<BR>
Westminster Homes of Alabama, L.L.C.<BR>
Westminster Homes of Mississippi, LLC<BR>
Westminster Homes of Tennessee, Inc.<BR>
WESTMINSTER HOMES, INC.<BR>
WH LAND I, INC<BR>
WH PROPERTIES, INC.<BR>
WH/PR Land Company, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>c91350exv10w2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.2</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>FIRST AMENDMENT<BR>
TO<BR>
INTERCREDITOR AGREEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>THIS FIRST AMENDMENT</B>, dated as of October&nbsp;20, 2009 (the &#147;<B>First Amendment</B>&#148;) to the
Intercreditor Agreement (as defined below), is entered into by and among HOVNANIAN ENTERPRISES,
INC. (&#147;<B>Hovnanian</B>&#148;), K. HOVNANIAN ENTERPRISES, INC. (the &#147;<B>Company</B>&#148;), each of the entities listed on
Schedule&nbsp;1 hereto (each a &#147;<B>Guarantor</B>&#148;), Wilmington Trust Company, as successor trustee under the
First Lien Indenture (as defined below) (in such capacity, together with its successors and
assigns, the &#147;<B>First Lien Trustee</B>&#148;) and collateral agent under the security documents relating to
the First Lien Indenture (in such collateral agent capacity, together with its successors and
assigns, the &#147;<B>First Lien Collateral Agent</B>&#148;), Wilmington Trust Company, as collateral agent under
the Senior Noteholder Collateral Documents (the &#147;<B>Senior Noteholder Collateral Agent</B>&#148;), Wilmington
Trust Company, as the Senior Trustee, Wilmington Trust Company, as the Initial Junior Trustee,
Wilmington Trust Company, as the collateral agent for the Mortgage Tax Collateral (the &#147;<B>Mortgage
Tax Collateral Agent</B>&#148;), Wilmington Trust Company, as collateral agent with respect to the Initial
Junior Notes under the Junior Noteholder Collateral Documents (the &#147;<B>Initial Junior Noteholder
Collateral Agent</B>&#148;) and, solely for the purpose of Section&nbsp;2(a), PNC Bank, National Association, as
administrative agent and collateral agent under the Original Credit Agreement (as defined below)
(in such capacities, the &#147;<B>Original First Lien Agent</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, Hovnanian, the Company, each other Guarantor, the Original First Lien Agent, the
Senior Noteholder Collateral Agent, the Senior Trustee, the Initial Junior Trustee, the Mortgage
Tax Collateral Agent, the Initial Junior Noteholder Collateral Agent are parties to the
Intercreditor Agreement dated as of December&nbsp;3, 2008 (the &#147;<B>Intercreditor Agreement</B>);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Company, in connection with a replacement and refinancing of the Seventh Amended
and Restated Credit Agreement, dated as of March&nbsp;7, 2008 (as subsequently amended, the &#147;<B>Original
Credit Agreement</B>&#148;) has issued 10 5/8% Senior Secured Notes due 2016 under the Indenture dated as of
October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise modified from time to
time, the &#147;<B>First Lien Indenture</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, accordingly, the Original First Lien Agent, effective upon repayment of the
obligations under the Original Credit Agreement, wishes to assign its rights and obligations as the
&#147;First-Lien Administrative Agent&#148;, &#147;Senior Credit Agent&#148; and &#147;an agent of the Senior Lenders&#148; under
the Intercreditor
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Agreement to Wilmington Trust Company, as First Lien Trustee and First Lien Collateral Agent (in
such capacity(ies), together with any successor or assigns, the &#147;<B>First-Lien Administrative Agent</B>&#148;
or &#147;<B>Senior Credit Agent</B>&#148;) and Wilmington Trust Company in such capacities wishes to accept such
assignment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>the Company has obtained the required consent from the Holders of the Notes
outstanding under the Indenture to effect the amendments set forth in this First Amendment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, all other acts and proceedings required by law, by the Indenture and by the charter
documents of the Company, Hovnanian and the other Guarantors to make this First Amendment a valid
and binding agreement for the purposes expressed herein, in accordance with its terms, have been
duly done and performed;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>NOW, THEREFORE</B>, in consideration of the premises and the covenants and agreements contained
herein, and for other good and valuable consideration the receipt of which is hereby acknowledged,
the Company, Hovnanian, the other Guarantors, the First Lien Trustee, the First Lien Collateral
Agent, the Senior Noteholder Collateral Agent, the Mortgage Tax Collateral Agent, the Initial
Junior Trustee, the Initial Junior Noteholder Collateral Agent, and the Original First Lien Agent
hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;1. </B><U>Definitions.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any capitalized term used (including those in the recitals), but not otherwise defined, herein
shall have the meaning ascribed to it in the Intercreditor Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;2. </B><U>Assignment and Affirmation of Rights and Obligations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Original First Lien Agent hereby assigns, without representation, warranty or
recourse, to Wilmington Trust Company as trustee under the First Lien Indenture and collateral
agent under the security documents relating to the First Lien Indenture, effective upon repayment
of the obligations under the Original Credit Agreement (the &#147;<B>Effective Time</B>&#148;), its rights and
obligations as the &#147;First-Lien Administrative Agent&#148;, &#147;Senior Credit Agent&#148; and &#147;an agent of the
Senior Lenders&#148; under the Intercreditor Agreement and shall, from the Effective Time, have no
further obligations or rights with respect to the Intercreditor Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Wilmington Trust Company, in its capacities as First Lien Trustee and First Lien
Collateral Agent, hereby agrees that effective as of the Effective Time it hereby is, and shall be
deemed to be, together with its successors and assigns,
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the &#147;First-Lien Administrative Agent&#148;,
&#147;Senior Credit Agent&#148; and &#147;an agent of the Senior Lenders&#148; under the Intercreditor Agreement and it
shall perform, comply with and be subject to and bound by each of the terms and provisions of this Intercreditor
Agreement, as amended hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Each of Hovnanian, the Company, the Guarantors, the Senior Noteholder Collateral Agent,
the Mortgage Tax Collateral Agent, the Initial Junior Trustee and the Initial Junior Noteholder
Collateral Agent hereby reaffirms and agrees to each of the terms of, and its obligations under,
the Intercreditor Agreement, as amended hereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Each of the parties hereto further agrees that the replacement and the refinancing of the
Original Credit Agreement (and the release of the liens related thereto) shall not be deemed to be
a Discharge of Senior Lender Claims for purposes of the Intercreditor Agreement, as amended, and
that the First Lien Indenture is within the definition of &#147;Credit Agreement&#148; under the
Intercreditor Agreement, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;3.
</B><U>Modifications to the Intercreditor Agreement.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The definition of &#147;Additional Mortgage Collateral&#148; in Section 1(a) of the Intercreditor
Agreement is hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;Additional Mortgaged Collateral&#148; means any real property collateral, with respect to which a
lien on and security interest in, was and is required to be granted to the Senior Noteholder
Collateral Agent pursuant to Section&nbsp;4.18(a) and Section&nbsp;4.18(b) of the Senior Indenture (other
than as set forth in Section&nbsp;4.18(c) of the Senior Indenture);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The definition of &#147;Credit Agreement&#148; in Section 1(a) of the Intercreditor Agreement is
hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;Credit Agreement&#148; means that Indenture, dated as of October&nbsp;20, 2009, among the Company,
Hovnanian, the other Grantors party thereto, and Wilmington Trust Company, as trustee, as it may be
amended, restated, supplemented, renewed, modified, refunded, replaced, revised, restructured or
refinanced in whole or in part from time to time, and if at any time a Discharge of Senior Lender
Claims occurs with respect to the Credit Agreement, then the term &#147;Credit Agreement&#148; shall mean the
Future First-Lien Indebtedness designated by the Company.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The definition of &#147;First-Lien Indebtedness&#148; in Section 1(a) of the Intercreditor Agreement
is hereby amended by replacing &#147;$300,000,000&#148; with &#147;$800,000,000&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The definition of &#147;Initial Mortgage Collateral&#148; in Section 1(a) of the Intercreditor
Agreement is hereby amended and restated in its entirety as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;Initial Mortgaged Collateral&#148; means any real property collateral, with respect to which a
lien on and security interest in, was required to have been granted to the Senior Noteholder
Collateral Agent pursuant to Section&nbsp;4.18(c)(i) of the Senior Indenture by July&nbsp;31, 2008, which
date may have been extended for up to 60&nbsp;days as described in such Section&nbsp;4.18(c)(i);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;The upper-case &#147;Collateral&#148; as it appears in Section&nbsp;5.7 before the words &#147;shall also be
subject to a Lien in favor of the Senior Lenders&#148; shall be changed to lower-case &#147;collateral&#148;; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;For each appearance in Section&nbsp;5.8(c) of the capitalized term &#147;Collateral&#148; (other than as
part of a multi-word defined term) or the capitalized term &#147;Additional Collateral&#148;, substitute
&#147;Common Collateral&#148; for such term;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;4.
</B><U>Designations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">For all purposes of the Intercreditor Agreement (as amended hereby) and the Indenture, the
Company hereby designates the Indebtedness incurred pursuant to the First Lien Indenture as
First-Lien Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;5. </B><U>First Lien Administrative Agent</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">It is understood and agreed that Wilmington Trust Company is entering into this First
Amendment in its capacity as First Lien Trustee under the First Lien Indenture and First Lien
Collateral Agent under the security documents relating to the First Lien Indenture and the
provisions of Article&nbsp;7 of the First Lien Indenture applicable to the Trustee thereunder shall also
apply to Wilmington Trust Company in its capacities as First-Lien Administrative Agent, Senior
Credit Agent and &#147;an agent of the Senior Lenders&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;6</B>.
<U>Effectiveness</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">This First Amendment will become effective immediately upon its execution and delivery.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;7.
</B><U>Governing Law</U>.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This First Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;8.
</B><U>Binding on Successors and Assigns</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This First Amendment will bind the Company, Hovnanian, the Guarantors, the First-Lien
Administrative Agent, the Senior Credit Agent, the Senior Lenders, the Second Lien Notes Collateral
Agent, the Second Lien Notes Trustee, the
Initial Junior Trustee, the Original First Lien Agent and the Mortgage Tax Collateral Agent, and
their respective permitted successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;9.
</B><U>Section&nbsp;Titles</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The section titles contained in this First Amendment are and shall be without substantive
meaning or content of any kind whatsoever and are not a part of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;10.
</B><U>Counterparts; Telecopy Signatures</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This First Amendment may be signed in any number of counterparts each of which shall be an
original, but all of which together shall constitute one and the same instrument; and, delivery of
executed signature pages hereof by telecopy transmission, or other electronic transmission in <I>pdf</I>
or similar format, from one party to another shall constitute effective and binding execution and
delivery of this First Amendment by such party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;11.
</B><U>Authorization</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">By its signature, each Person executing this First Amendment on behalf of a party hereto
represents and warrants to the other parties hereto that it is duly authorized to execute this
First Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">&#091;REMAINDER OF PAGE LEFT BLANK INTENTIONALLY&#093;
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, each of the undersigned has caused this First Amendment to be duly
executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">On behalf of each of the entities listed on<BR>
Schedule&nbsp;1 hereto<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as First Lien<BR>
Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as First<BR>
Lien Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Senior<BR>
Noteholder Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Senior<BR>
Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as<BR>
Initial Junior Trustee<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as<BR>
Mortgage Tax Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ James A. Hanley
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James A. Hanley&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as<BR>
Initial Junior Noteholder Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PNC BANK, NATIONAL ASSOCIATION, as<BR>
Original First Lien Agent under Original Credit Agreement<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  James R. Litton
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James R. Litton&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PNC BANK, NATIONAL ASSOCIATION, as<BR>
Collateral Agent under Original<BR>
Credit Agreement<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  James R. Litton
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James R. Litton&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE 1</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Auddie Enterprises, L.L.C.<BR>
Builder Services NJ, L.L.C.<BR>
Builder Services NY, L.L.C.<BR>
Builder Services PA, L.L.C.<BR>
Dulles Coppermine, L.L.C.<BR>
EASTERN TITLE AGENCY, INC.<BR>
F&#038;W MECHANICAL SERVICES, L.L.C.<BR>
Founders Title Agency of Maryland, L.L.C.<BR>
FOUNDERS TITLE AGENCY, INC.<BR>
Governor&#146;s Abstract Co., Inc.<BR>
Homebuyers Financial Services, L.L.C.<BR>
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.<BR>
Hovnanian Land Investment Group of California, L.L.C.<BR>
HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.<BR>
Hovnanian Land Investment Group of Georgia, L.L.C.<BR>
Hovnanian Land Investment Group of Maryland, L.L.C.<BR>
Hovnanian Land Investment Group of New Jersey, L.L.C.<BR>
Hovnanian Land Investment Group of North Carolina, L.L.C.<BR>
Hovnanian Land Investment Group of Pennsylvania, L.L.C.<BR>
Hovnanian Land Investment Group of Texas LLC<BR>
Hovnanian Land Investment Group of Virginia, L.L.C.<BR>
Hovnanian Land Investment Group, L.L.C.<BR>
K. H. San Marcos Conservancy Holdings, L.L.C.<BR>
K. HOV INTERNATIONAL, INC.<BR>
K. HOV IP, II, Inc.<BR>
K. HOV IP, INC.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Acquisitions, Inc.<BR>
K. Hovnanian at 4S, LLC<BR>
K. Hovnanian at Acqua Vista, LLC<BR>
K. Hovnanian at Aliso, LLC<BR>
K. Hovnanian at Allenberry, L.L.C.<BR>
K. Hovnanian at Allentown, L.L.C.<BR>
K. Hovnanian at Almond Estates, LLC<BR>
K. Hovnanian at Arbor Heights, LLC<BR>
K. HOVNANIAN AT AVENUE ONE, L.L.C.<BR>
K. Hovnanian at Bakersfield 463, L.L.C.<BR>
K. Hovnanian at Barnegat I, L.L.C.<BR>
K. Hovnanian at Barnegat II, L.L.C.<BR>
K. Hovnanian at Bella Lago, LLC<BR>
K. Hovnanian at Berkeley, L.L.C.<BR>
K. Hovnanian at Bernards IV, Inc.<BR>
K. Hovnanian at Bernards V, L.L.C.<BR>
K. Hovnanian at Blue Heron Pines, L.L.C.<BR>
K. HOVNANIAN AT BRANCHBURG III, INC.<BR>
K. Hovnanian at Bridgeport, Inc.<BR>
K. Hovnanian at Bridgewater I, L.L.C.<BR>
K. Hovnanian at Bridgewater VI, Inc.<BR>
K. Hovnanian at Broad and Walnut, L.L.C.<BR>
K. Hovnanian at Burlington III, Inc.<BR>
K. HOVNANIAN AT BURLINGTON, INC.<BR>
K. Hovnanian at Calabria, Inc.<BR>
K. Hovnanian at Camden I, L.L.C.<BR>
K. Hovnanian at Cameron Chase, Inc.<BR>
K. HOVNANIAN AT CAMP HILL, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN AT CAPISTRANO, L.L.C.<BR>
K. Hovnanian at Carmel Del Mar, Inc.<BR>
K. Hovnanian at Carmel Village, LLC<BR>
K. Hovnanian at Castile, Inc.<BR>
K. Hovnanian at Cedar Grove III, L.L.C.<BR>
K. Hovnanian at Cedar Grove IV, L.L.C.<BR>
K. Hovnanian at Chaparral, Inc.<BR>
K. Hovnanian at Charter Way, LLC<BR>
K. Hovnanian at Chester I, L.L.C.<BR>
K. Hovnanian at Chesterfield, L.L.C.<BR>
K. Hovnanian at Cielo, L.L.C.<BR>
K. HOVNANIAN AT CLARKSTOWN, INC.<BR>
K. Hovnanian at Clifton II, L.L.C.<BR>
K. Hovnanian at Clifton, L.L.C.<BR>
K. Hovnanian at Coastline, L.L.C.<BR>
K. Hovnanian at Cortez Hill, LLC<BR>
K. Hovnanian at Cranbury, L.L.C.<BR>
K. Hovnanian at Crestline, Inc.<BR>
K. Hovnanian at Curries Woods, L.L.C.<BR>
K. Hovnanian at Denville, L.L.C.<BR>
K. Hovnanian at Deptford Township, L.L.C.<BR>
K. Hovnanian at Dominguez Hills, Inc.<BR>
K. Hovnanian at Dover, L.L.C.<BR>
K. Hovnanian at East Brandywine, L.L.C.<BR>
K. Hovnanian At East Whiteland I, Inc.<BR>
K. Hovnanian at Eastlake, LLC<BR>
K. Hovnanian at Edgewater II, L.L.C.<BR>
K. Hovnanian at Edgewater, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch II, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch, L.L.C.<BR>
K. Hovnanian at Elk Township, L.L.C.<BR>
K. Hovnanian at Encinitas Ranch, LLC<BR>
K. Hovnanian at Evergreen, L.L.C.<BR>
K. Hovnanian at Ewing, L.L.C.<BR>
K. Hovnanian at Fiddyment Ranch, LLC<BR>
K. Hovnanian at Fifth Avenue, L.L.C.<BR>
K. Hovnanian at Florence I, L.L.C.<BR>
K. Hovnanian at Florence II, L.L.C.<BR>
K. Hovnanian at Forest Meadows, L.L.C.<BR>
K. HOVNANIAN AT FORKS TWP. I, L.L.C.<BR>
K. Hovnanian at Franklin, L.L.C.<BR>
K. Hovnanian at Freehold Township I, Inc.<BR>
K. Hovnanian at Freehold Township, L.L.C.<BR>
K. Hovnanian at Fresno, LLC<BR>
K. Hovnanian at Galloway, L.L.C.<BR>
K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.<BR>
K. Hovnanian at Great Notch, L.L.C.<BR>
K. Hovnanian at Gridley, LLC<BR>
K. Hovnanian at Guttenberg, L.L.C.<BR>
K. Hovnanian at Hackettstown II, L.L.C.<BR>
K. Hovnanian at Hackettstown, Inc.<BR>
K. Hovnanian at Hamburg Contractors, L.L.C.<BR>
K. Hovnanian at Hamburg, L.L.C.<BR>
K. Hovnanian at Hawthorne, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Hazlet, L.L.C.<BR>
K. Hovnanian at Hershey&#146;s Mill, Inc.<BR>
K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.<BR>
K. Hovnanian at Highland Vineyards, Inc.<BR>
K. Hovnanian at Hilltop, L.L.C.<BR>
K. Hovnanian at Hopewell IV, Inc.<BR>
K. Hovnanian at Hopewell VI, Inc.<BR>
K. Hovnanian at Howell Township, Inc.<BR>
K. HOVNANIAN AT HUDSON POINTE, L.L.C.<BR>
K. Hovnanian at Jackson I, L.L.C.<BR>
K. Hovnanian at Jackson, L.L.C.<BR>
K. Hovnanian at Jaeger Ranch, LLC<BR>
K. Hovnanian at Jersey City IV, L.L.C.<BR>
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.<BR>
K. Hovnanian at Keyport, L.L.C.<BR>
K. Hovnanian at King Farm, L.L.C.<BR>
K. Hovnanian at Kings Grant I, Inc.<BR>
K. Hovnanian at La Costa Greens, L.L.C.<BR>
K. Hovnanian at La Costa, LLC<BR>
K. Hovnanian at La Habra Knolls, LLC<BR>
K. Hovnanian at La Laguna, L.L.C.<BR>
K. Hovnanian at La Terraza, Inc.<BR>
K. Hovnanian At Lafayette Estates, L.L.C.<BR>
K. Hovnanian at Lake Rancho Viejo, LLC<BR>
K. Hovnanian at Lake Ridge Crossing, L.L.C.<BR>
K. Hovnanian at Lake Terrapin, L.L.C.<BR>
K. Hovnanian at Lakewood, Inc.<BR>
K. Hovnanian at Landmark, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at LaPaz, LLC<BR>
K. Hovnanian at Larkspur, LLC<BR>
K. Hovnanian at Lawrence V, L.L.C.<BR>
K. Hovnanian at Lee Square, L.L.C.<BR>
K. Hovnanian at Linwood, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Contractors, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor III, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor, L.L.C<BR>
K. Hovnanian at Live Oak II, LLC<BR>
K. Hovnanian at Long Branch I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township II, L.L.C.<BR>
K. Hovnanian at Lower Makefield Township I, L.L.C.<BR>
K. Hovnanian at Lower Moreland I, L.L.C.<BR>
K. Hovnanian at Lower Moreland II, L.L.C.<BR>
K. Hovnanian at Lower Moreland III, L.L.C.<BR>
K. Hovnanian at Lower Saucon, Inc.<BR>
K. Hovnanian at Macungie, L.L.C.<BR>
K. HOVNANIAN AT MAHWAH II, INC.<BR>
K. Hovnanian at Mahwah VI, Inc.<BR>
K. Hovnanian at Mahwah VII, Inc.<BR>
K. Hovnanian at Malan Park, L.L.C.<BR>
K. Hovnanian at Manalapan III, L.L.C.<BR>
K. Hovnanian at Manalapan, Inc.<BR>
K. Hovnanian at Mansfield I, L.L.C.<BR>
K. Hovnanian at Mansfield II, L.L.C.<BR>
K. Hovnanian at Mansfield III, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Maple Avenue, L.L.C.<BR>
K. Hovnanian at Marlboro II, Inc.<BR>
K. Hovnanian at Marlboro Township III, Inc.<BR>
K. Hovnanian at Marlboro Township IV, Inc.<BR>
K. Hovnanian at Marlboro Township IX, L.L.C.<BR>
K. Hovnanian at Marlboro Township V, L.L.C.<BR>
K. Hovnanian at Marlboro Township VIII, L.L.C.<BR>
K. Hovnanian at Marlboro VI, L.L.C.<BR>
K. Hovnanian at Marlboro VII, L.L.C.<BR>
K. Hovnanian at Matsu, L.L.C.<BR>
K. Hovnanian at Melanie Meadows, LLC<BR>
K. Hovnanian at Mendham Township, L.L.C.<BR>
K. Hovnanian at Menifee, LLC<BR>
K. Hovnanian at Middle Township II, L.L.C.<BR>
K. Hovnanian at Middle Township, L.L.C.<BR>
K. Hovnanian at Middletown II, L.L.C.<BR>
K. Hovnanian at Middletown, L.L.C.<BR>
K. Hovnanian at Millville I, L.L.C.<BR>
K. Hovnanian at Millville II, L.L.C.<BR>
K. HOVNANIAN AT MONROE II, INC.<BR>
K. Hovnanian at Monroe III, L.L.C.<BR>
K. Hovnanian at Monroe IV, L.L.C.<BR>
K. Hovnanian at Monroe NJ, L.L.C.<BR>
K. Hovnanian at Montgomery I, Inc.<BR>
K. Hovnanian at Montvale, L.L.C.<BR>
K. Hovnanian at Mosaic, LLC<BR>
K. Hovnanian at Mt. Olive Township, L.L.C.<BR>
K. Hovnanian at Muirfield, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at New Windsor, L.L.C.<BR>
K. Hovnanian at North Bergen. L.L.C.<BR>
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.<BR>
K. Hovnanian at North Caldwell II, L.L.C.<BR>
K. Hovnanian at North Caldwell III, L.L.C.<BR>
K. Hovnanian at North Caldwell, L.L.C.<BR>
K. Hovnanian at North Haledon, L.L.C.<BR>
K. Hovnanian at North Wildwood, L.L.C.<BR>
K. Hovnanian at Northampton. L.L.C.<BR>
K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.<BR>
K. Hovnanian at Northfield, L.L.C.<BR>
K. Hovnanian at Northlake, Inc.<BR>
K. Hovnanian at Ocean Township, Inc<BR>
K. HOVNANIAN AT OCEAN WALK, INC.<BR>
K. Hovnanian at Oceanport, L.L.C.<BR>
K. Hovnanian at Old Bridge, L.L.C.<BR>
K. Hovnanian at Olde Orchard, LLC<BR>
K. Hovnanian at Pacific Bluffs, LLC<BR>
K. Hovnanian at Paramus, L.L.C.<BR>
K. Hovnanian at Park Lane, LLC<BR>
K. Hovnanian at Parkside, LLC<BR>
K. Hovnanian at Parsippany-Troy Hills, L.L.C.<BR>
K. Hovnanian at Perkiomen I, Inc.<BR>
K. Hovnanian at Perkiomen II, Inc.<BR>
K. Hovnanian at Philadelphia II, L.L.C.<BR>
K. Hovnanian at Philadelphia III, L.L.C.<BR>
K. Hovnanian at Philadelphia IV, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Piazza D&#146;Oro, L.L.C.<BR>
K. Hovnanian at Piazza Serena, L.L.C<BR>
K. Hovnanian at Pittsgrove, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.<BR>
K. Hovnanian at Prado, L.L.C.<BR>
K. Hovnanian at Rancho Cristianitos, Inc.<BR>
K. Hovnanian at Rancho Santa Margarita, LLC<BR>
K. Hovnanian at Randolph I, L.L.C.<BR>
K. HOVNANIAN AT RAPHO, L.L.C<BR>
K. Hovnanian at Readington II, L.L.C.<BR>
K. Hovnanian at Red Bank, L.L.C.<BR>
K. Hovnanian at Reservoir Ridge, Inc.<BR>
K. Hovnanian at Ridgemont, L.L.C.<BR>
K. Hovnanian at Ridgestone, L.L.C.<BR>
K. Hovnanian at Riverbend, LLC<BR>
K. Hovnanian at Rivercrest, LLC<BR>
K. Hovnanian at Roderuck, L.L.C.<BR>
K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.<BR>
K. Hovnanian at Rowland Heights, LLC<BR>
K. Hovnanian at Sage, L.L.C.<BR>
K. Hovnanian at San Sevaine, Inc.<BR>
K. Hovnanian at Santa Nella, LLC<BR>
K. Hovnanian at Saratoga, Inc.<BR>
K. Hovnanian at Sawmill, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Sayreville, L.L.C.<BR>
K. HOVNANIAN AT SCOTCH PLAINS II, INC.<BR>
K. Hovnanian at Scotch Plains, L.L.C.<BR>
K. Hovnanian at Sierra Estates, LLC<BR>
K. Hovnanian at Silver Spring, L.L.C.<BR>
K. Hovnanian at Skye Isle, LLC<BR>
K. Hovnanian at Smithville III, L.L.C.<BR>
K. Hovnanian at Smithville, Inc.<BR>
K. Hovnanian at Somers Point, L.L.C.<BR>
K. Hovnanian at South Brunswick V, Inc.<BR>
K. Hovnanian at South Brunswick, L.L.C.<BR>
K. Hovnanian at Sparta, L.L.C.<BR>
K. HOVNANIAN AT SPRINGCO, L.L.C.<BR>
K. Hovnanian at Stone Canyon, Inc.<BR>
K. HOVNANIAN AT STONY POINT, INC.<BR>
K. Hovnanian at Sunsets, LLC<BR>
K. Hovnanian at Sycamore, Inc.<BR>
K. Hovnanian at Tannery Hill, Inc.<BR>
K. Hovnanian at Teaneck, L.L.C.<BR>
K. Hovnanian at The Bluff, Inc.<BR>
K. Hovnanian at The Crosby, LLC<BR>
K. Hovnanian at The Gables, LLC<BR>
K. Hovnanian at The Monarch, L.L.C.<BR>
K. Hovnanian at The Preserve, LLC<BR>
K. Hovnanian at Thompson Ranch, LLC<BR>
K. Hovnanian at Thornbury, Inc.<BR>
K. Hovnanian at Tierrasanta, Inc.<BR>
K. Hovnanian at Trail Ridge, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Trenton, L.L.C.<BR>
K. Hovnanian at Trovata, Inc.<BR>
K. Hovnanian at Union Township I, Inc.<BR>
K. Hovnanian at Union Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township I, Inc.<BR>
K. Hovnanian at Upper Freehold Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township III, L.L.C.<BR>
K. Hovnanian at Upper Makefield I, Inc.<BR>
K. Hovnanian at Upper Uwchlan II, L.L.C.<BR>
K. Hovnanian at Upper Uwchlan, L.L.C.<BR>
K. Hovnanian at Vail Ranch, Inc.<BR>
K. Hovnanian at Valle Del Sol, LLC<BR>
K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at Victorville, L.L.C.<BR>
K. HOVNANIAN AT VINELAND, L.L.C.<BR>
K. Hovnanian at Vista Del Sol, L.L.C.<BR>
K. Hovnanian at Wall Township VI, Inc.<BR>
K. Hovnanian at Wall Township VIII, Inc.<BR>
K. Hovnanian at Wanaque, L.L.C.<BR>
K. Hovnanian at Warren Township, L.L.C.<BR>
K. Hovnanian at Washington, L.L.C.<BR>
K. HOVNANIAN AT WASHINGTONVILLE, INC.<BR>
K. Hovnanian at Wayne III, Inc.<BR>
K. Hovnanian at Wayne IX, L.L.C.<BR>
K. Hovnanian at Wayne V, Inc.<BR>
K. HOVNANIAN AT WAYNE, VIII, L.L.C.<BR>
K. Hovnanian at West Bradford, L.L.C.<BR>
K. Hovnanian at West Milford, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at West View Estates, L.L.C.<BR>
K. Hovnanian at West Windsor, L.L.C.<BR>
K. Hovnanian at Westshore, LLC<BR>
K. Hovnanian at Wheeler Ranch, LLC<BR>
K. Hovnanian at Wildrose, Inc.<BR>
K. Hovnanian at Wildwood Bayside, L.L.C.<BR>
K. Hovnanian at Willow Brook, L.L.C.<BR>
K. HOVNANIAN AT WINCHESTER, LLC<BR>
K. Hovnanian at Woodcreek West, LLC<BR>
K. Hovnanian at Woodhill Estates, L.L.C.<BR>
K. Hovnanian at Woolwich I, L.L.C.<BR>
K. Hovnanian Cambridge Homes, L.L.C.<BR>
K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.<BR>
K. Hovnanian Classics CIP, L.L.C.<BR>
K. Hovnanian Classics, L.L.C.<BR>
K. Hovnanian Communities, Inc.<BR>
K. Hovnanian Companies Metro D.C. North, L.L.C.<BR>
K. Hovnanian Companies Northeast, Inc.<BR>
K. Hovnanian Companies of California, Inc.<BR>
K. HOVNANIAN COMPANIES OF MARYLAND, INC.<BR>
K. HOVNANIAN COMPANIES OF NEW YORK, INC.<BR>
K. Hovnanian Companies of Pennsylvania, Inc.<BR>
K. Hovnanian Companies of Southern California, Inc.<BR>
K. Hovnanian Companies of Virginia, Inc.<BR>
K. Hovnanian Companies, LLC<BR>
K. Hovnanian Connecticut Acquisitions, L.L.C.<BR>
K. Hovnanian Construction II, Inc.<BR>
K. Hovnanian Construction III, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Construction Management, Inc.<BR>
K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.<BR>
K. Hovnanian Delaware Acquisitions, L.L.C.<BR>
K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.<BR>
K. Hovnanian Developments of California, Inc.<BR>
K. Hovnanian Developments of Connecticut, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF D.C., INC.<BR>
K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.<BR>
K. Hovnanian Developments of Georgia, Inc.<BR>
K. Hovnanian Developments of Illinois, Inc.<BR>
K. Hovnanian Developments of Indiana, Inc.<BR>
K. Hovnanian Developments of Kentucky, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.<BR>
K. Hovnanian Developments of Michigan, Inc.<BR>
K. Hovnanian Developments of Minnesota, Inc.<BR>
K. Hovnanian Developments of New Jersey II, Inc.<BR>
K. Hovnanian Developments of New Jersey, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.<BR>
K. Hovnanian Developments of North Carolina, Inc.<BR>
K. Hovnanian Developments of Ohio, Inc.<BR>
K. Hovnanian Developments of Pennsylvania, Inc.<BR>
K. Hovnanian Developments of South Carolina, Inc.<BR>
K. Hovnanian Developments of Texas, Inc.<BR>
K. Hovnanian Developments of Virginia, Inc.<BR>
K. Hovnanian Developments of West Virginia, Inc.<BR>
K. Hovnanian Eastern Pennsylvania, L.L.C.<BR>
K. HOVNANIAN FIRST HOMES, L.L.C.<BR>
K. Hovnanian Florida Realty, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Forecast Homes Northern, Inc.<BR>
K. Hovnanian Four Seasons @ Historic Virginia, LLC<BR>
K. Hovnanian Four Seasons at Gold Hill, LLC<BR>
K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC<BR>
K. HOVNANIAN GREAT WESTERN HOMES, LLC<BR>
K. Hovnanian Holdings NJ, L.L.C.<BR>
K. Hovnanian Homes &#151; DFW, L.L.C.<BR>
K. Hovnanian Homes at Cameron Station, LLC<BR>
K. Hovnanian Homes at Camp Springs, L.L.C.<BR>
K. Hovnanian Homes at Fairwood, L.L.C.<BR>
K. Hovnanian Homes at Forest Run, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 1, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 2, L.L.C.<BR>
K. Hovnanian Homes at Maxwell Place, L.L.C.<BR>
K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.<BR>
K. Hovnanian Homes at Primera, L.L.C.<BR>
K. Hovnanian Homes at Renaissance Plaza, L.L.C.<BR>
K. Hovnanian Homes at Russett, L.L.C.<BR>
K. Hovnanian Homes of D.C., L.L.C.<BR>
K. HOVNANIAN HOMES OF DELAWARE, L.L.C.<BR>
K. Hovnanian Homes of Georgia, L.L.C.<BR>
K. Hovnanian Homes of Houston, L.L.C.<BR>
K. Hovnanian Homes of Indiana, L.L.C.<BR>
K. Hovnanian Homes of Maryland, L.L.C.<BR>
K. Hovnanian Homes of Minnesota, L.L.C.<BR>
K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.<BR>
K. Hovnanian Homes of South Carolina, LLC<BR>
K. Hovnanian Homes of Virginia, Inc.<BR>
K. Hovnanian Homes of West Virginia, L.L.C.<BR>
K. Hovnanian North Central Acquisitions, L.L.C.<BR>
K. Hovnanian North Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Northeast Services, L.L.C.<BR>
K. Hovnanian of Houston II, L.L.C.<BR>
K. Hovnanian Ohio Realty, L.L.C.<BR>
K. HOVNANIAN OSTER HOMES, L.L.C.<BR>
K. Hovnanian PA Real Estate, Inc.<BR>
K. Hovnanian Pennsylvania Acquisitions, L.L.C.<BR>
K. Hovnanian Port Imperial Urban Renewal, Inc.<BR>
K. Hovnanian Properties of Red Bank, Inc.<BR>
K. Hovnanian Shore Acquisitions, L.L.C.<BR>
K. Hovnanian South Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Southern New Jersey, L.L.C.<BR>
K. HOVNANIAN STANDING ENTITY, L.L.C.<BR>
K. Hovnanian Summit Holdings, L.L.C.<BR>
K. Hovnanian Summit Homes of Kentucky, L.L.C.<BR>
K. Hovnanian Summit Homes of Michigan, L.L.C.<BR>
K. Hovnanian Summit Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Summit Homes of West Virginia, L.L.C.<BR>
K. Hovnanian Summit Homes, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Florida, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Illinois, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.<BR>
K. HOVNANIAN T&#038;C INVESTMENT, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian T&#038;C Management Co., L.L.C.<BR>
K. Hovnanian Venture I, L.L.C.<BR>
K. HOVNANIAN WINDWARD HOMES, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT BAKERSFIELD, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Beaumont, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hemet, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Huntfield, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Los Banos, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT RENAISSANCE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Westshore, LLC<BR>
K. Hovnanian&#146;s Four Seasons, LLC<BR>
K. Hovnanian&#146;s Parkside at Towngate, L.L.C.<BR>
K. Hovnanian&#146;s Private Home Portfolio, L.L.C.<BR>
KHIP, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">LANDARAMA, INC.<BR>
M &#038; M at Long Branch, Inc<BR>
M&#038;M at Chesterfield, LLC<BR>
M&#038;M AT Copper Beech, L.L.C.<BR>
M&#038;M AT Crescent Court, L.L.C.<BR>
M&#038;M at East Rutherford, L.L.C.<BR>
M&#038;M AT MORRISTOWN, L.L.C.<BR>
M&#038;M AT SPINNAKER POINTE, L.L.C.<BR>
M&#038;M AT SPRUCE HOLLOW, L.L.C.<BR>
M&#038;M AT SPRUCE RUN, L.L.C.<BR>
M&#038;M at Station Square, L.L.C.<BR>
M&#038;M at Tamarack Hollow, L.L.C.<BR>
M&#038;M AT UNION, L.L.C.<BR>
M&#038;M at West Orange, L.L.C.<BR>
M&#038;M at Wheatena Urban Renewal, L.L.C.<BR>
M&#038;M INVESTMENTS, L.P.<BR>
Matzel &#038; Mumford at Egg Harbor, L.L.C.<BR>
MATZEL &#038; MUMFORD AT MONTGOMERY, L.L.C.<BR>
Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.<BR>
MCNJ, Inc.<BR>
Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.<BR>
MIDWEST BUILDING PRODUCTS &#038; CONTRACTOR SERVICES, L.L.C.<BR>
MMIP, L.L.C.<BR>
Natomas Central Neighborhood Housing, L.L.C.<BR>
New Land Title Agency, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">PADDOCKS, L.L.C.<BR>
PARK TITLE COMPANY, LLC<BR>
Pine Ayr, LLC<BR>
RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.<BR>
Ridgemore Utility, L.L.C.<BR>
SEABROOK ACCUMULATION CORPORATION<BR>
STONEBROOK HOMES, INC.<BR>
Terrapin Realty, L.L.C.<BR>
The Matzel &#038; Mumford Organization, Inc<BR>
Washington Homes at Columbia Town Center, L.L.C.<BR>
Washington Homes, Inc.<BR>
Westminster Homes of Alabama, L.L.C.<BR>
Westminster Homes of Mississippi, LLC<BR>
Westminster Homes of Tennessee, Inc.<BR>
WESTMINSTER HOMES, INC.<BR>
WH LAND I, INC<BR>
WH PROPERTIES, INC.<BR>
WH/PR Land Company, L.L.C.<BR>
Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>


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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>c91350exv10w3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.3</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.3</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>FIRST LIEN PLEDGE AGREEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>THIS FIRST LIEN PLEDGE AGREEMENT</B>, dated as of October&nbsp;20, 2009 (as restated, amended, modified
or supplemented from time to time, the &#147;<U>Agreement</U>&#148;), is given by <B>K. HOVNANIAN ENTERPRISES,
INC.</B>, a California corporation (the &#147;<U>Issuer</U>&#148;), <B>HOVNANIAN ENTERPRISES, INC.</B>, a Delaware
corporation (&#147;<U>Hovnanian</U>&#148;), <B>EACH OF THE UNDERSIGNED PARTIES LISTED ON SCHEDULE A HERETO AND
EACH OF THE OTHER PERSONS AND ENTITIES THAT BECOME BOUND HEREBY FROM TIME TO TIME BY JOINDER,
ASSUMPTION OR OTHERWISE </B>(together with the Issuer and Hovnanian, each a &#147;<U>Pledgor&#148;</U> and
collectively the &#147;<U>Pledgors</U>&#148;), as a Pledgor of the equity interests in the Companies (as
defined herein), as more fully set forth herein, to <B>WILMINGTON TRUST COMPANY</B>, in its capacity as
collateral agent, for the benefit of itself, the Trustee (as defined below) and the Noteholders (as
defined below) (the &#147;<U>Collateral Agent</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian, and each of the other Guarantors have entered into the
Indenture dated as of October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the &#147;<U>Indenture</U>&#148;) with Wilmington Trust Company, a Delaware
banking corporation, as trustee (in such capacity, the &#147;<U>Trustee</U>&#148;), pursuant to which the
Issuer has issued, and may from time to time issue, its 10 5/8% Senior Secured Notes due 2016
(collectively, the &#147;<U>Secured Notes</U>&#148;) upon the terms and subject to the conditions set forth
therein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian and each of the other Guarantors party thereto entered into the
indenture dated as of May&nbsp;27, 2008, as amended, supplemented, amended and restated or otherwise
modified from time to time, with Wilmington Trust Company (as successor to Deutsche Bank National
Trust Company) as trustee pursuant to which the Issuer issued its 11 1/2 % Senior Secured Notes due
2013;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian and each of the other Guarantors party thereto have entered
into the indenture dated as of December&nbsp;3, 2008, as amended, supplemented, amended and restated or
otherwise modified from time to time, with Wilmington Trust Company as trustee pursuant to which
the Issuer issued its 18.0% Senior Secured Notes due 2017;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and Wilmington Trust Company, as Mortgage Tax
Collateral Agent have entered into the Intercreditor Agreement dated as of May&nbsp;27, 2008, as amended
by the First Amendment dated as of October&nbsp;20, 2009 (as amended, supplemented, amended, amended or
restated or otherwise modified from time to time, the &#147;<U>May&nbsp;2008 Intercreditor Agreement</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and First-Lien Administrative Agent, the Senior
Trustee, the Senior Noteholder Collateral Agent, the Junior Trustee, the Junior Agent and
Wilmington Trust Company, as Mortgage Tax Collateral Agent have entered into the Intercreditor
Agreement dated as of December&nbsp;3, 2008, as amended by the First Amendment dated as of October&nbsp;20,
2009 (as amended, supplemented, amended or restated or otherwise modified from time to time,
together with the May&nbsp;2008 Intercreditor Agreement, the &#147;<U>Intercreditor Agreements</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Secured Notes constitute First Lien Indebtedness under each of the Intercreditor
Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, in connection with the Indenture, the Pledgors are required to execute and deliver
this Agreement to secure their obligations with respect to the Indenture and the Secured Notes; and
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, each Pledgor owns the outstanding capital stock, shares, securities, member
interests, partnership interests and other ownership interests of the Companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, intending to be legally bound hereby, the parties hereto hereby agree as
follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">1. <U>Defined Terms</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Except as otherwise expressly provided herein, capitalized terms used in this Agreement
shall have the respective meanings assigned to them in the Indenture. Where applicable and except
as otherwise expressly provided herein, terms used herein (whether or not capitalized) that are
defined in Article&nbsp;8 or Article&nbsp;9 of the Uniform Commercial Code as enacted in the State of New
York, as amended from time to time (the &#147;<U>Code</U>&#148;), and are not otherwise defined herein or in
the Indenture shall have the same meanings herein as set forth therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;&#147;<U>Collateral Agency Agreement</U>&#148; shall have the meaning ascribed to such term in the
Security Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;&#147;<U>Company</U>&#148; shall mean individually each Restricted Subsidiary and
&#147;<U>Companies</U>&#148; shall mean collectively, all Restricted Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;&#147;<U>Law</U>&#148; 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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e) &#147;<U>Noteholder</U>&#148; shall mean &#147;Holder&#148; or &#147;Holder of Notes&#148; as defined in the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;&#147;<U>Noteholder Collateral Document</U>&#148; shall mean any agreement, document or instrument
pursuant to which a Lien is granted by the Issuer or any Guarantor to secure any Secured
Obligations or under which rights or remedies with respect to any such Liens are governed, as the
same may be amended, restated or otherwise modified from time to time
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;&#147;<U>Noteholder Document</U>&#148; shall mean collectively (a)&nbsp;the Indenture, the Secured Notes
and the Noteholder Collateral Documents and (b)&nbsp;any other related document or instrument executed
and delivered pursuant to any Noteholder Document described in clause (a)&nbsp;above evidencing or
governing any Secured Obligations as the same may be amended, restated or otherwise modified from
time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;&#147;<U>Official Body</U>&#148;: any national, federal, state, local or other governmental 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;&#147;<U>Pledged Collateral</U>&#148; shall mean and include the following with respect to each
Company: (i)&nbsp;the capital stock, shares, securities, investment property, member interests,
partnership interests, warrants, options, put rights, call rights, similar rights, and all other
ownership or participation interests, in any Company and K. Hovnanian JV Holdings, L.L.C. owned or
held by any Pledgor at any time including those in any Company hereafter formed or acquired, and
(ii)&nbsp;all rights and privileges pertaining thereto, including without limitation, all present and
future securities, shares, capital stock, investment property, dividends, distributions and other
ownership interests receivable in respect of or in exchange for any of the foregoing, all present
and future rights to subscribe for securities, shares, capital stock, investment property or other
ownership interests incident to or arising from ownership of any of the foregoing, all present and
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">future cash, interest, stock or other dividends or distributions paid or payable on any of the
foregoing, and all present and future books and records (whether paper, electronic or any other
medium) pertaining to any of the foregoing, including, without limitation, all stock record and
transfer books and (iii)&nbsp;whatever is received when any of the foregoing is sold, exchanged,
replaced or otherwise disposed of, including all proceeds, as such term is defined in the Code,
thereof. Notwithstanding the foregoing, in the event that Rule&nbsp;3-16 of Regulation&nbsp;S-X under the
Securities Act requires (or is replaced with another rule or regulation, or any other law, rule or
regulation is adopted, which would require) the filing with the SEC of separate financial
statements of any Guarantor or K. Hovnanian JV Holdings, L.L.C. that are not otherwise required to
be filed, then the capital stock or other securities of such Guarantor or K. Hovnanian JV Holdings,
L.L.C. shall automatically be deemed released and not to be and not to have been part of the
Pledged Collateral but only to the extent necessary to not be subject to such requirement. In such
event, this Agreement may be amended or modified, without the consent of any Noteholder upon the
Collateral Agent&#146;s receipt of a written authorization from the Issuer stating that such amendment
is permitted hereunder, which the Agent shall be entitled to conclusively rely upon, to the extent
necessary to evidence the release of the lien created hereby on the shares of capital stock or
other securities that are so deemed to no longer constitute part of the Pledged Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;&#147;<U>Secured Obligations</U>&#148; shall mean and include all Indebtedness and other
Obligations under the Indenture, the Secured Notes, the Guarantees and the Noteholder Collateral
Documents (as defined in the Security Agreement), together with any extensions, renewals,
replacements or refundings thereof, and all costs and expenses of enforcement and collection,
including reasonable attorney&#146;s fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(k)&nbsp;&#147;<U>Security Agreement</U>&#148; shall mean the first lien security agreement dated as of the
date hereof among the Issuer, Hovnanian and certain of their respective subsidiaries and the
Collateral Agent, as amended, supplemented, amended and restated or otherwise modified from time to
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">2. <U>Grant of Security Interests</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;To secure on a first priority perfected basis the payment and performance of all Secured
Obligations, in full, each Pledgor hereby grants to the Collateral Agent a continuing first
priority security interest under the Code in and hereby pledges to Collateral Agent, in each case
for its benefit and the benefit of the Trustee and each Noteholder and their respective Affiliates,
all of such Pledgor&#146;s now existing and hereafter acquired or arising right, title and interest in,
to, and under the Pledged Collateral, whether now or hereafter existing and wherever located.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Upon the execution and delivery of this Agreement, each Pledgor shall deliver to and
deposit with the Collateral Agent (or with a Person designated by Collateral Agent to hold the
Pledged Collateral on behalf of Collateral Agent) in pledge, all of such Pledgor&#146;s certificates,
instruments or other documents comprising or evidencing the Pledged Collateral, together with
undated stock powers or similar transfer documents signed in blank by such Pledgor. In the event
that any Pledgor should ever acquire or receive certificates, securities, instruments or other
documents evidencing the Pledged Collateral, such Pledgor shall deliver to and deposit with the
Collateral Agent in pledge, all such certificates, securities, instruments or other documents which
evidence the Pledged Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">3. <U>Further Assurances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Prior to or concurrently with the execution of this Agreement, and thereafter at any time and
from time to time, each Pledgor (in its capacity as a Pledgor and in its capacity as a Company)
shall execute and deliver to the Collateral Agent all financing statements, continuation financing
statements, assignments, certificates and documents of title, affidavits, reports, notices,
schedules of account, letters of authority, further pledges, powers of attorney and all other
documents (collectively, the &#147;<U>Security </U>
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U>Documents</U>&#148;) as may be required under applicable law to perfect and continue perfected
and to create and maintain the first priority status of the Collateral Agent&#146;s security interest in
the Pledged Collateral and to fully consummate the transactions contemplated under this Agreement.
Each Pledgor authorizes the Collateral Agent to record any one or more financing statements under
the applicable Uniform Commercial Code with respect to the pledge and security interest herein
granted. Each Pledgor hereby irrevocably makes, constitutes and appoints the Collateral Agent (and
any of the Collateral Agent&#146;s officers or employees or agents designated by the Collateral Agent)
as such Pledgor&#146;s true and lawful attorney with power to sign the name of such Pledgor on all or
any of the Security Documents which, pursuant to applicable law, must be executed, filed, recorded
or sent in order to perfect or continue perfected the Collateral Agent&#146;s security interest in the
Pledged Collateral in any jurisdiction. Such power, being coupled with an interest, is irrevocable
until all of the Secured Obligations have been indefeasibly paid, in cash, in full.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">4. <U>Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Pledgor hereby, jointly and severally, represents and warrants to the Collateral Agent as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Pledged Collateral of such Pledgor does not include Margin Stock. &#147;<U>Margin
Stock</U>&#148; as used in this clause (a)&nbsp;shall have the meaning ascribed to such term by Regulation&nbsp;U
of the Board of Governors of the Federal Reserve System of the United States;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Such Pledgor has and will continue to have (or, in the case of after-acquired Pledged
Collateral, at the time such Pledgor acquires rights in such Pledged Collateral, will have and will
continue to have), title to its Pledged Collateral, free and clear of all Liens other than
Permitted Liens;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The capital stock, shares, securities, member interests, partnership interests and other
ownership interests constituting the Pledged Collateral of such Pledgor have been duly authorized
and validly issued to such Pledgor, are fully paid and nonassessable and constitute one hundred
percent (100%) of the issued and outstanding capital stock, member interests or partnership
interests of each Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Upon the completion of the filings and other actions specified on <U>Schedule&nbsp;C</U>
attached hereto, the security interests in the Pledged Collateral granted hereunder by such Pledgor
shall be are valid, perfected and of first priority, subject to the Lien of no other Person (other
than a Permitted Liens);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;There are no restrictions upon the transfer of the Pledged Collateral and such Pledgor has
the power and authority and unencumbered right to transfer the Pledged Collateral owned by such
Pledgor free of any Lien (other than a Permitted Liens) and without obtaining the consent of any
other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;Such Pledgor has all necessary power to execute, deliver and perform this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;This Agreement has been duly executed and delivered and constitutes the valid and legally
binding obligation of each Pledgor, enforceable in accordance with its terms, except to the extent
that enforceability of this Agreement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar Laws affecting the enforceability of creditors&#146; rights
generally or limiting the right of specific performance;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;Neither the execution or delivery by each Pledgor of this Agreement, nor the compliance
with the terms and provisions hereof, will violate any provision of any Law or conflict with or
result in a breach of any of the terms, conditions or provisions of any judgment, order,
injunction, decree or ruling of any Official Body to which any Pledgor or any of its property is
subject or any provision of any material
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">agreement or instrument to which Pledgor is a party or by which such Pledgor or any of its
property is bound;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(i)&nbsp;Each Pledgor&#146;s exact legal name is as set forth on such Pledgor&#146;s signature page hereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;The jurisdiction of incorporation, formation or organization, as applicable, of each
Pledgor is as set forth on <U>Schedule (D</U>) to the Security Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(k)&nbsp;Such Pledgor&#146;s chief executive office is as set forth on <U>Schedule (D</U>) to the
Security Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(l)&nbsp;All rights of such Pledgor in connection with its ownership of each of the Companies are
evidenced and governed solely by the stock certificates, instruments or other documents (if any)
evidencing ownership of each of the Companies and the organizational documents of each of the
Companies, and no shareholder, voting, or other similar agreements are applicable to any of the
Pledged Collateral or any of any Pledgor&#146;s rights with respect thereto, and no such certificate,
instrument or other document provides that any member interest, partnership interest or other
intangible ownership interest in any limited liability company or partnership constituting Pledged
Collateral is a &#147;security&#148; within the meaning of and subject to Article&nbsp;8 of the Code, except
pursuant to Section 5(f) hereof; and the organizational documents of each Company contain no
restrictions on the rights of shareholders, members or partners other than those that normally
would apply to a company organized under the laws of the jurisdiction of organization of each of
the Companies; and none of the limited liability company interests or partnership interest
constituting Pledged Collateral is represented by a certificate, except with respect to the
Companies as set forth on <U>Schedule&nbsp;B</U> attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">5. <U>General Covenants</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Each Pledgor, jointly and severally, hereby covenants and agrees as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;Each Pledgor shall do all reasonable acts that may be necessary and appropriate to
maintain, preserve and protect the Pledged Collateral; and each Pledgor shall be responsible for
the risk of loss of, damage to, or destruction of the Pledged Collateral owned by such Pledgor,
unless such loss is the result of the gross negligence or willful misconduct of the Collateral
Agent;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Each Pledgor shall appear in and defend any action or proceeding of which such Pledgor is
aware which could reasonably be expected to affect, in any material respect, any Pledgor&#146;s title
to, or the Collateral Agent&#146;s interest in, the Pledged Collateral or the proceeds thereof;
<U>provided</U>, <U>however</U>, that with the prior written consent of the Collateral Agent,
such Pledgor may settle such actions or proceedings with respect to the Pledged Collateral;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The books and records of each of the Pledgors and Companies, as applicable, shall disclose
the Collateral Agent&#146;s security interest in the Pledged Collateral;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;To the extent, following the date hereof, any Pledgor acquires capital stock, shares,
securities, member interests, partnership interests, investment property and other ownership
interests of any of the Companies or any other Restricted Subsidiary or any of the rights, property
or securities, shares, capital stock, member interests, partnership interests, investment property
or any other ownership interests described in the definition of Pledged Collateral with respect to
any of the Companies or any other Restricted Subsidiary, all such ownership interests shall be
subject to the terms hereof and, upon such acquisition, shall be deemed to be hereby pledged to the
Collateral Agent; and each Pledgor thereupon, in confirmation thereof, shall promptly deliver all
such securities, shares, capital stock, member interests,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">partnership interests, investment property and other ownership interests (to the extent such
items are certificated), to the Collateral Agent, together with undated stock powers or other
similar transfer documents, and all such control agreements, financing statements, and any other
documents necessary to implement the provisions and purposes of this Agreement as the Collateral
Agent may request related thereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;Each Pledgor shall notify the Collateral Agent in writing within thirty (30)&nbsp;calendar days
after any change in any Pledgor&#146;s chief executive office address, legal name, or state of
incorporation, formation or organization; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;Subject to Section 4(l) hereof, during the term of this Agreement, no Pledgor shall permit
or cause any Company which is a limited liability company or a limited partnership to (and no
Pledgor (in its capacity as Company) shall) issue any certificates evidencing the ownership
interests of such Company or elect to treat any ownership interests as securities that are subject
to Article&nbsp;8 of the Code unless such securities are immediately delivered to the Collateral Agent
upon issuance, together with all evidence of such election and issuance and all Security Documents
as set forth in Section&nbsp;3 hereof, and an updated <U>Schedule&nbsp;B </U>hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">6. <U>Other Rights With Respect to Pledged Collateral</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition to the other rights with respect to the Pledged Collateral granted to the
Collateral Agent hereunder, at any time and from time to time, after and during the continuation of
an Event of Default, the Collateral Agent, at its option and at the expense of the Pledgors, may,
subject to any Collateral Agency Agreement, (a)&nbsp;transfer into its own name, or into the name of its
nominee, all or any part of the Pledged Collateral, thereafter receiving all dividends, income or
other distributions upon the Pledged Collateral; (b)&nbsp;take control of and manage all or any of the
Pledged Collateral; (c)&nbsp;apply to the payment of any of the Secured Obligations, whether any be due
and payable or not, any moneys, including cash dividends and income from any Pledged Collateral,
now or hereafter in the hands of the Collateral Agent or any Affiliate of the Collateral Agent, on
deposit or otherwise, belonging to any Pledgor, as the Collateral Agent in its sole discretion
shall determine; and (d)&nbsp;do anything which any Pledgor is required but fails to do hereunder. The
Collateral Agent shall endeavor to provide the Issuer with notice at or about the time of the
exercise of its rights pursuant to the preceding sentence, provided that the failure to provide
such notice shall not in any way compromise or adversely affect the exercise of any rights or
remedies hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">7. <U>Additional Remedies Upon Event of Default</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Upon the occurrence of any Event of Default and while such Event of Default shall be
continuing, the Collateral Agent shall have, in addition to all rights and remedies of a secured
party under the Code or other applicable Law, and in addition to its rights under Section&nbsp;6 above
and under the other Noteholder Documents, the following rights and remedies, in each case subject
to any Collateral Agency Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Collateral Agent may, after ten (10)&nbsp;days&#146; advance notice to a Pledgor, sell, assign,
give an option or options to purchase or otherwise dispose of such Pledgor&#146;s Pledged Collateral or
any part thereof at public or private sale, at any of the Collateral Agent&#146;s offices or elsewhere,
for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may
deem commercially reasonable. Each Pledgor agrees that ten (10)&nbsp;days&#146; advance notice of the time
and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale
of Pledged Collateral regardless of notice of sale having been given. The Collateral Agent may
adjourn any public or private sale from time to time by announcement at
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. Each Pledgor recognizes that the Collateral Agent may
be compelled to resort to one or more private sales of the Pledged Collateral to a restricted group
of purchasers who will be obliged to agree, among other things, to acquire such securities, shares,
capital stock, member interests, partnership interests, investment property or ownership interests
for their own account for investment and not with a view to the distribution or resale thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The proceeds of any collection, sale or other disposition of the Pledged Collateral, or
any part thereof, shall, after the Collateral Agent has made all deductions of expenses, including
but not limited to attorneys&#146; fees (including the allocated costs of staff counsel) and other
expenses incurred in connection with repossession, collection, sale or disposition of such Pledged
Collateral or in connection with the enforcement of the Collateral Agent&#146;s rights with respect to
the Pledged Collateral, including in any insolvency, bankruptcy or reorganization proceedings, be
applied against the Secured Obligations, whether or not all the same be then due and payable, as
provided in the Indenture.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">8. <U>Collateral Agent&#146;s Duties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The powers conferred on the Collateral Agent hereunder are solely to protect its interest (on
behalf of itself, the Trustee and the Noteholders) in the Pledged Collateral and shall not impose
any duty upon it to exercise any such powers. Except for the safe custody of any Pledged
Collateral in its possession and the accounting for moneys actually received by it hereunder, the
Collateral Agent shall have no duty as to any Pledged Collateral or as to the taking of any
necessary steps to preserve rights against prior parties or any other rights pertaining to any
Pledged Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">9. <U>Additional Pledgors</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">It is anticipated that additional persons may from time to time become Subsidiaries of the
Issuer or a Guarantor, each of whom will be required to join this Agreement as a Pledgor hereunder
to the extent that such new Subsidiary owns equity interests in any other Person that is a
Restricted Subsidiary. It is acknowledged and agreed that such new Subsidiaries of the Issuer or a
Guarantor may become Pledgors hereunder and will be bound hereby simply by executing and delivering
to the Collateral Agent a Supplemental Indenture (in the form of Exhibit&nbsp;B to the Indenture) and a
Joinder Agreement in the form of Exhibit&nbsp;B to the Security Agreement. No notice of the addition of
any Pledgor shall be required to be given to any pre-existing Pledgor, and each Pledgor hereby
consents thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">10. <U>No Waiver; Cumulative Remedies</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">No failure to exercise, and no delay in exercising, on the part of the Collateral Agent, any
right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any further exercise thereof
or the exercise of any other right, power or privilege. No waiver of a single Event of Default
shall be deemed a waiver of a subsequent Event of Default. The remedies herein provided are
cumulative and not exclusive of any remedies provided under the other Noteholder Documents or by
Law, rule or regulation and the Collateral Agent may enforce any one or more remedies hereunder
successively or concurrently at its option. Each Pledgor waives any right to require the
Collateral Agent to proceed against any other Person or to exhaust any of the Pledged Collateral or
other security for the Secured Obligations or to pursue any remedy in the Collateral Agent&#146;s power.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">11. <U>Waivers</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Pledgor hereby waives any and all defenses which any Pledgor may now or hereafter have
based on principles of suretyship, impairment of collateral, or the like and each Pledgor hereby
waives any defense to or limitation on its obligations under this Agreement arising out of or based
on any event or circumstance referred to in the immediately preceding Section hereof. Without
limiting the generality of the foregoing and to the fullest extent permitted by applicable law,
each Pledgor hereby further waives each of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;All notices, disclosures and demands of any nature which otherwise might be
required from time to time to preserve intact any rights against such Pledgor, including the
following: any notice of any event or circumstance described in the immediately preceding
Section hereof; any notice required by any law, regulation or order now or hereafter in
effect in any jurisdiction; any notice of nonpayment, nonperformance, dishonor, or protest
under any Noteholder Document or any of the Secured Obligations; any notice of the
incurrence of any Secured Obligation; any notice of any default or any failure on the part
of such Pledgor or the Borrower or any other Person to comply with any Noteholder Document
or any of the Secured Obligations or any requirement pertaining to any direct or indirect
security for any of the Secured Obligations; and any notice or other information pertaining
to the business, operations, condition (financial or otherwise), or prospects of the
Borrower or any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;Any right to any marshalling of assets, to the filing of any claim against such
Pledgor or the Borrower or any other Person in the event of any bankruptcy, insolvency,
reorganization, or similar proceeding, or to the exercise against such Pledgor or the
Issuer, or any other Person of any other right or remedy under or in connection with any
Noteholder Document or any of the Secured Obligations or any direct or indirect security for
any of the Secured Obligations; any requirement of promptness or diligence on the part of
the Collateral Agent, the Trustee, the Noteholders or any other Person; any requirement to
exhaust any remedies under or in connection with, or to mitigate the damages resulting from
default under, any Noteholder Document or any of the Secured Obligations or any direct or
indirect security for any of the Secured Obligations; any benefit of any statute of
limitations; and any requirement of acceptance of this Agreement or any other Noteholder
Document, and any requirement that any Pledgor receive notice of any such acceptance; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;Any defense or other right arising by reason of any Law now or hereafter in
effect in any jurisdiction pertaining to election of remedies (including anti-deficiency
laws, &#147;one action&#148; laws, or the like), or by reason of any election of remedies or other
action or inaction by the Collateral Agent, the Trustee or the Noteholders (including
commencement or completion of any judicial proceeding or nonjudicial sale or other action in
respect of collateral security for any of the Secured Obligations), which results in denial
or impairment of the right of the Collateral Agent, the Trustee or the Noteholders to seek a
deficiency against the Issuer or any other Person or which otherwise discharges or impairs
any of the Secured Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">12. <U>Assignment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All rights of the Collateral Agent under this Agreement shall inure to the benefit of its
successors and assigns. All obligations of each Pledgor shall bind its successors and assigns;
<U>provided</U>, <U>however</U>, that no Pledgor may assign or transfer any of its rights and
obligations hereunder or any interest herein, and any such purported assignment or transfer shall
be null and void.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">13. <U>Severability</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Any provision (or portion thereof) of this Agreement which shall be held invalid or
unenforceable shall be ineffective without invalidating the remaining provisions hereof (or
portions thereof).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">14. <U>Governing Law</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Agreement and the rights and obligations of the parties under this Agreement shall be
governed by, and construed and interpreted in accordance with, the Law of the State of New York,
except to the extent the validity or perfection of the security interests or the remedies hereunder
in respect of any Pledged Collateral are governed by the law of a jurisdiction other than the State
of New York.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">15. <U>Notices</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">All notices, requests, demands, directions and other communications (collectively,
&#147;<U>notices</U>&#148;) given to or made upon any party hereto under the provisions of this Agreement
shall be given or made as set forth in Section &#091;13.03&#093; of the Indenture, and the Pledgors (in their
capacity as Pledgors and in their capacity as Companies) shall simultaneously send to the
Collateral Agent any notices such Pledgor or such Company delivers to each other regarding any of
the Pledged Collateral.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">16. <U>Specific Performance</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Pledgor acknowledges and agrees that, in addition to the other rights of the Collateral
Agent hereunder and under the other Noteholder Documents, because the Collateral Agent&#146;s remedies
at law for failure of any Pledgor to comply with the provisions hereof relating to the Collateral
Agent&#146;s rights (i)&nbsp;to inspect the books and records related to the Pledged Collateral, (ii)&nbsp;to
receive the various notifications any Pledgor is required to deliver hereunder, (iii)&nbsp;to obtain
copies of agreements and documents as provided herein with respect to the Pledged Collateral,
(iv)&nbsp;to enforce the provisions hereof pursuant to which any Pledgor has appointed the Collateral
Agent its attorney-in-fact, and (v)&nbsp;to enforce the Collateral Agent&#146;s remedies hereunder, would be
inadequate and that any such failure would not be adequately compensable in damages, such Pledgor
agrees that each such provision hereof may be specifically enforced.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">17. <U>Voting Rights in Respect of the Pledged Collateral</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">So long as no Event of Default shall occur and be continuing under the Indenture, each Pledgor
may exercise any and all voting and other consensual rights pertaining to the Pledged Collateral or
any part thereof for any purpose not inconsistent with the terms of this Agreement or the other
Noteholder Documents; <U>provided</U>, <U>however</U>, that such Pledgor will not exercise or
will refrain from exercising any such voting and other consensual right pertaining to the Pledged
Collateral, as the case may be, if such action would have a material adverse effect on the value of
any Pledged Collateral. At any time and from time to time, after and during the continuation of an
Event of Default, no Pledgor shall be permitted to exercise any of its respective voting and other
consensual rights whatsoever pertaining to the Pledged Collateral or any part thereof;
<U>provided</U>, <U>however</U>, in addition to the other rights with respect to the Pledged
Collateral granted to the Collateral Agent, the Trustee and the Noteholders for the benefit of
itself and the Noteholders, hereunder, at any time and from time to time, after and during the
continuation of an Event of Default and subject to the provisions of any Collateral Agency
Agreement, the Collateral Agent may exercise any and all voting and other consensual rights of each
and every Pledgor pertaining to the Pledged Collateral or any part thereof. The Collateral Agent
shall endeavor to provide the Issuer with notice at or about the time of the exercise by Collateral
Agent of the voting or other consensual rights of such Pledgor pertaining to the Pledged
Collateral, provided that the failure to provide such notice shall not in any way compromise or
adversely affect the exercise of Collateral
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Agent&#146;s rights or remedies hereunder. Without limiting the generality of the foregoing and in
addition thereto, Pledgors shall not vote to enable, or take any other action to permit, any
Company to: (i)&nbsp;issue any other ownership interests of any nature or to issue any other
securities, investment property or other ownership interests convertible into or granting the right
to purchase or exchange for any other ownership interests of any nature of any such Company, except
as expressly permitted by the Indenture; or (ii)&nbsp;to enter into any agreement or undertaking
restricting the right or ability of such Pledgor or the Collateral Agent to sell, assign or
transfer any of the Pledged Collateral without the Collateral Agent&#146;s prior written consent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">18. <U>Consent to Jurisdiction</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Pledgor (as a Pledgor and as a Company) and each of the Companies (i)&nbsp;hereby irrevocably
submits to the nonexclusive jurisdiction of the courts of the State of New York and the United
States District Court for the Southern District of New York, or any successor to said court
(hereinafter referred to as the &#147;<U>New York Courts</U>&#148;) for purposes of any suit, action or
other proceeding which relates to this Agreement or any other Noteholder Document, (ii)&nbsp;to the
extent permitted by applicable Law, hereby waives and agrees not to assert by way of motion, as a
defense or otherwise in any such suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of the New York Courts, that such suit, action or proceeding is brought
in an inconvenient forum, that the venue of such suit, action or proceeding is improper, or that
this Agreement or any Noteholder Document may not be enforced in or by the New York Courts,
(iii)&nbsp;hereby agrees not to seek, and hereby waives, any collateral review by any other court, which
may be called upon to enforce the judgment of any of the New York Courts, of the merits of any such
suit, action or proceeding or the jurisdiction of the New York Courts, and (iv)&nbsp;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&nbsp;15 hereof and service so made shall
be deemed to be completed upon actual receipt thereof. Nothing herein shall limit the Collateral
Agent&#146;s, Trustee&#146;s or any Noteholder &#145;s right to bring any suit, action or other proceeding against
any Pledgor or any of any Pledgor&#146;s assets or to serve process on any Pledgor by any means
authorized by Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">19. <U>Waiver of Jury Trial</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">EXCEPT AS PROHIBITED BY LAW, EACH PLEDGOR (AS A PLEDGOR AND AS A COMPANY), EACH OF THE
COMPANIES AND THE COLLATERAL AGENT, ON BEHALF OF ITSELF, THE TRUSTEE AND THE NOTEHOLDERS, HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY A JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER DOCUMENTS OR
TRANSACTIONS RELATING THERETO.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">20. <U>Entire Agreement; Additional Pledgors; Amendments</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;This Agreement constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements relating to a grant of a security
interest in the Pledged Collateral by any Pledgor to the Collateral Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;At any time after the initial execution and delivery of this Agreement to the Collateral
Agent, the Trustee and the Noteholders, additional Persons may become parties to this Agreement
and thereby acquire the duties and rights of being Pledgors hereunder by executing and delivering
to the Collateral Agent a Joinder Agreement pursuant to the Security Agreement. No notice of the
addition of any Pledgor shall be required to be given to any pre-exiting Pledgor and each Pledgor
hereby consents thereto.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Except as expressly provided in (i)&nbsp;Section&nbsp;5(f) with respect to certificated securities
issued by Companies that are limited liability companies or limited partnerships, (ii)&nbsp;in Section&nbsp;9
with respect to additional Pledgors, (iii)&nbsp;in Section&nbsp;21 with respect to the release of Pledgors
and Companies, and (iv)&nbsp;Section&nbsp;8.1 of the Security Agreement with respect to reflecting the
incurrence of Additional Secured Obligations (as defined in the Security Agreement) and the
granting of Additional Pari Passu Liens (as defined in the Security Agreement), this Agreement may
not be amended or supplemented except by a writing signed by the Collateral Agent and the Pledgors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">21. <U>Automatic Release of Related Collateral and Equity</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At any time after the initial execution and delivery of this Agreement to the Collateral
Agent, the Pledgors and their respective Pledged Collateral and the Companies and K. Hovnanian JV
Holdings, L.L.C. may be released from this Agreement in accordance with and pursuant to Section
11.04 of the Indenture. No notice of such release of any Pledgor or such Pledgor&#146;s Pledged
Collateral shall be required to be given to any other Pledgor and each Pledgor hereby consents
thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">22. <U>Counterparts; Telecopy Signatures</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Agreement may be executed in any number of counterparts, and by different parties hereto
in separate counterparts, each of which, when so executed, shall be deemed an original, but all
such counterparts shall constitute one and the same instrument. Each Pledgor acknowledges and
agrees that a telecopy or electronic (i.e., &#147;e-mail&#148; or &#147;portable document folio&#148; (&#147;pdf&#148;))
transmission to the Collateral Agent of the signature pages hereof purporting to be signed on
behalf of any Pledgor shall constitute effective and binding execution and delivery hereof by such
Pledgor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">23. <U>Construction</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The rules of construction contained in Section &#091;1.02&#093; of the Indenture apply to this
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">24. <U>Collateral Agent Privileges, Powers and Immunities</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In the performance of its obligations, powers and rights hereunder, the Collateral Agent shall
be entitled to the privileges, powers and immunities afforded to it as Collateral Agent under the
Indenture. The Collateral Agent shall be entitled to refuse to take or refrain from taking any
discretionary action or exercise any discretionary powers set forth in this Agreement unless it has
received with respect thereto written direction of the Issuer or a majority of Noteholders in
accordance with the Indenture. Notwithstanding anything to the contrary contained herein, the
Collateral Agent shall have no responsibility for the creation, perfection, priority, sufficiency
or protection of any liens securing Secured Obligations (including, but not limited to, no
obligation to prepare, record, file, re-record or re-file any financing statement, continuation
statement or other instrument in any public office).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>&#091;SIGNATURE PAGES FOLLOW&#093;</B>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have caused this
Agreement to be duly executed as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>WILMINGTON TRUST COMPANY</B>, as Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Pledgors:</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>K. HOVNANIAN ENTERPRISES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>HOVNANIAN ENTERPRISES, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>ON BEHALF OF EACH OF THE ENTITIES
LISTED ON SCHEDULE A HERETO</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SCHEDULE A<BR>
TO<BR>
PLEDGE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Auddie Enterprises, L.L.C.<BR>
Builder Services NJ, L.L.C.<BR>
Builder Services NY, L.L.C.<BR>
Builder Services PA, L.L.C.<BR>
Dulles Coppermine, L.L.C.<BR>
EASTERN TITLE AGENCY, INC.<BR>
F&#038;W MECHANICAL SERVICES, L.L.C.<BR>
Founders Title Agency of Maryland, L.L.C.<BR>
FOUNDERS TITLE AGENCY, INC.<BR>
Governor&#146;s Abstract Co., Inc.<BR>
Homebuyers Financial Services, L.L.C.<BR>
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.<BR>
Hovnanian Land Investment Group of California, L.L.C.<BR>
HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.<BR>
Hovnanian Land Investment Group of Georgia, L.L.C.<BR>
Hovnanian Land Investment Group of Maryland, L.L.C.<BR>
Hovnanian Land Investment Group of New Jersey, L.L.C.<BR>
Hovnanian Land Investment Group of North Carolina, L.L.C.<BR>
Hovnanian Land Investment Group of Pennsylvania, L.L.C.<BR>
Hovnanian Land Investment Group of Texas LLC<BR>
Hovnanian Land Investment Group of Virginia, L.L.C.<BR>
Hovnanian Land Investment Group, L.L.C.<BR>
K. H. San Marcos Conservancy Holdings, L.L.C.<BR>
K. HOV INTERNATIONAL, INC.<BR>
K. HOV IP, II, Inc.<BR>
K. HOV IP, INC.<BR>
K. Hovnanian Acquisitions, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at 4S, LLC<BR>
K. Hovnanian at Acqua Vista, LLC<BR>
K. Hovnanian at Aliso, LLC<BR>
K. Hovnanian at Allenberry, L.L.C.<BR>
K. Hovnanian at Allentown, L.L.C.<BR>
K. Hovnanian at Almond Estates, LLC<BR>
K. Hovnanian at Arbor Heights, LLC<BR>
K. HOVNANIAN AT AVENUE ONE, L.L.C.<BR>
K. Hovnanian at Bakersfield 463, L.L.C.<BR>
K. Hovnanian at Barnegat I, L.L.C.<BR>
K. Hovnanian at Barnegat II, L.L.C.<BR>
K. Hovnanian at Bella Lago, LLC<BR>
K. Hovnanian at Berkeley, L.L.C.<BR>
K. Hovnanian at Bernards IV, Inc.<BR>
K. Hovnanian at Bernards V, L.L.C.<BR>
K. Hovnanian at Blue Heron Pines, L.L.C.<BR>
K. HOVNANIAN AT BRANCHBURG III, INC.<BR>
K. Hovnanian at Bridgeport, Inc.<BR>
K. Hovnanian at Bridgewater I, L.L.C.<BR>
K. Hovnanian at Bridgewater VI, Inc.<BR>
K. Hovnanian at Broad and Walnut, L.L.C.<BR>
K. Hovnanian at Burlington III, Inc.<BR>
K. HOVNANIAN AT BURLINGTON, INC.<BR>
K. Hovnanian at Calabria, Inc.<BR>
K. Hovnanian at Camden I, L.L.C.<BR>
K. Hovnanian at Cameron Chase, Inc.<BR>
K. HOVNANIAN AT CAMP HILL, L.L.C.<BR>
K. HOVNANIAN AT CAPISTRANO, L.L.C.<BR>
K. Hovnanian at Carmel Del Mar, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Carmel Village, LLC<BR>
K. Hovnanian at Castile, Inc.<BR>
K. Hovnanian at Cedar Grove III, L.L.C.<BR>
K. Hovnanian at Cedar Grove IV, L.L.C.<BR>
K. Hovnanian at Chaparral, Inc.<BR>
K. Hovnanian at Charter Way, LLC<BR>
K. Hovnanian at Chester I, L.L.C.<BR>
K. Hovnanian at Chesterfield, L.L.C.<BR>
K. Hovnanian at Cielo, L.L.C.<BR>
K. HOVNANIAN AT CLARKSTOWN, INC.<BR>
K. Hovnanian at Clifton II, L.L.C.<BR>
K. Hovnanian at Clifton, L.L.C.<BR>
K. Hovnanian at Coastline, L.L.C.<BR>
K. Hovnanian at Cortez Hill, LLC<BR>
K. Hovnanian at Cranbury, L.L.C.<BR>
K. Hovnanian at Crestline, Inc.<BR>
K. Hovnanian at Curries Woods, L.L.C.<BR>
K. Hovnanian at Denville, L.L.C.<BR>
K. Hovnanian at Deptford Township, L.L.C.<BR>
K. Hovnanian at Dominguez Hills, Inc.<BR>
K. Hovnanian at Dover, L.L.C.<BR>
K. Hovnanian at East Brandywine, L.L.C.<BR>
K. Hovnanian At East Whiteland I, Inc.<BR>
K. Hovnanian at Eastlake, LLC<BR>
K. Hovnanian at Edgewater II, L.L.C.<BR>
K. Hovnanian at Edgewater, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Egg Harbor Township, L.L.C.<BR>
K. Hovnanian at El Dorado Ranch II, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at El Dorado Ranch, L.L.C.<BR>
K. Hovnanian at Elk Township, L.L.C.<BR>
K. Hovnanian at Encinitas Ranch, LLC<BR>
K. Hovnanian at Evergreen, L.L.C.<BR>
K. Hovnanian at Ewing, L.L.C.<BR>
K. Hovnanian at Fiddyment Ranch, LLC<BR>
K. Hovnanian at Fifth Avenue, L.L.C.<BR>
K. Hovnanian at Florence I, L.L.C.<BR>
K. Hovnanian at Florence II, L.L.C.<BR>
K. Hovnanian at Forest Meadows, L.L.C.<BR>
K. HOVNANIAN AT FORKS TWP. I, L.L.C.<BR>
K. Hovnanian at Franklin, L.L.C.<BR>
K. Hovnanian at Freehold Township I, Inc.<BR>
K. Hovnanian at Freehold Township, L.L.C.<BR>
K. Hovnanian at Fresno, LLC<BR>
K. Hovnanian at Galloway, L.L.C.<BR>
K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.<BR>
K. Hovnanian at Great Notch, L.L.C.<BR>
K. Hovnanian at Gridley, LLC<BR>
K. Hovnanian at Guttenberg, L.L.C.<BR>
K. Hovnanian at Hackettstown II, L.L.C.<BR>
K. Hovnanian at Hackettstown, Inc.<BR>
K. Hovnanian at Hamburg Contractors, L.L.C.<BR>
K. Hovnanian at Hamburg, L.L.C.<BR>
K. Hovnanian at Hawthorne, L.L.C.<BR>
K. Hovnanian at Hazlet, L.L.C.<BR>
K. Hovnanian at Hershey&#146;s Mill, Inc.<BR>
K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.<BR>
K. Hovnanian at Highland Vineyards, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Hilltop, L.L.C.<BR>
K. Hovnanian at Hopewell IV, Inc.<BR>
K. Hovnanian at Hopewell VI, Inc.<BR>
K. Hovnanian at Howell Township, Inc.<BR>
K. HOVNANIAN AT HUDSON POINTE, L.L.C.<BR>
K. Hovnanian at Jackson I, L.L.C.<BR>
K. Hovnanian at Jackson, L.L.C.<BR>
K. Hovnanian at Jaeger Ranch, LLC<BR>
K. Hovnanian at Jersey City IV, L.L.C.<BR>
K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.<BR>
K. Hovnanian at Keyport, L.L.C.<BR>
K. Hovnanian at King Farm, L.L.C.<BR>
K. Hovnanian at Kings Grant I, Inc.<BR>
K. Hovnanian at La Costa Greens, L.L.C.<BR>
K. Hovnanian at La Costa, LLC<BR>
K. Hovnanian at La Habra Knolls, LLC<BR>
K. Hovnanian at La Laguna, L.L.C.<BR>
K. Hovnanian at La Terraza, Inc.<BR>
K. Hovnanian At Lafayette Estates, L.L.C.<BR>
K. Hovnanian at Lake Rancho Viejo, LLC<BR>
K. Hovnanian at Lake Ridge Crossing, L.L.C.<BR>
K. Hovnanian at Lake Terrapin, L.L.C.<BR>
K. Hovnanian at Lakewood, Inc.<BR>
K. Hovnanian at Landmark, LLC<BR>
K. Hovnanian at LaPaz, LLC<BR>
K. Hovnanian at Larkspur, LLC<BR>
K. Hovnanian at Lawrence V, L.L.C.<BR>
K. Hovnanian at Lee Square, L.L.C.<BR>
K. Hovnanian at Linwood, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Little Egg Harbor Contractors, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor III, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor Township II, L.L.C.<BR>
K. Hovnanian at Little Egg Harbor, L.L.C<BR>
K. Hovnanian at Live Oak II, LLC<BR>
K. Hovnanian at Long Branch I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township I, L.L.C.<BR>
K. Hovnanian at Lower Macungie Township II, L.L.C.<BR>
K. Hovnanian at Lower Makefield Township I, L.L.C.<BR>
K. Hovnanian at Lower Moreland I, L.L.C.<BR>
K. Hovnanian at Lower Moreland II, L.L.C.<BR>
K. Hovnanian at Lower Moreland III, L.L.C.<BR>
K. Hovnanian at Lower Saucon, Inc.<BR>
K. Hovnanian at Macungie, L.L.C.<BR>
K. HOVNANIAN AT MAHWAH II, INC.<BR>
K. Hovnanian at Mahwah VI, Inc.<BR>
K. Hovnanian at Mahwah VII, Inc.<BR>
K. Hovnanian at Malan Park, L.L.C.<BR>
K. Hovnanian at Manalapan III, L.L.C.<BR>
K. Hovnanian at Manalapan, Inc.<BR>
K. Hovnanian at Mansfield I, L.L.C.<BR>
K. Hovnanian at Mansfield II, L.L.C.<BR>
K. Hovnanian at Mansfield III, L.L.C.<BR>
K. Hovnanian at Maple Avenue, L.L.C.<BR>
K. Hovnanian at Marlboro II, Inc.<BR>
K. Hovnanian at Marlboro Township III, Inc.<BR>
K. Hovnanian at Marlboro Township IV, Inc.<BR>
K. Hovnanian at Marlboro Township IX, L.L.C.<BR>
K. Hovnanian at Marlboro Township V, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Marlboro Township VIII, L.L.C.<BR>
K. Hovnanian at Marlboro VI, L.L.C.<BR>
K. Hovnanian at Marlboro VII, L.L.C.<BR>
K. Hovnanian at Matsu, L.L.C.<BR>
K. Hovnanian at Melanie Meadows, LLC<BR>
K. Hovnanian at Mendham Township, L.L.C.<BR>
K. Hovnanian at Menifee, LLC<BR>
K. Hovnanian at Middle Township II, L.L.C.<BR>
K. Hovnanian at Middle Township, L.L.C.<BR>
K. Hovnanian at Middletown II, L.L.C.<BR>
K. Hovnanian at Middletown, L.L.C.<BR>
K. Hovnanian at Millville I, L.L.C.<BR>
K. Hovnanian at Millville II, L.L.C.<BR>
K. HOVNANIAN AT MONROE II, INC.<BR>
K. Hovnanian at Monroe III, L.L.C.<BR>
K. Hovnanian at Monroe IV, L.L.C.<BR>
K. Hovnanian at Monroe NJ, L.L.C.<BR>
K. Hovnanian at Montgomery I, Inc.<BR>
K. Hovnanian at Montvale, L.L.C.<BR>
K. Hovnanian at Mosaic, LLC<BR>
K. Hovnanian at Mt. Olive Township, L.L.C.<BR>
K. Hovnanian at Muirfield, LLC<BR>
K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at New Windsor, L.L.C.<BR>
K. Hovnanian at North Bergen. L.L.C.<BR>
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.<BR>
K. Hovnanian at North Caldwell II, L.L.C.<BR>
K. Hovnanian at North Caldwell III, L.L.C.<BR>
K. Hovnanian at North Caldwell, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at North Haledon, L.L.C.<BR>
K. Hovnanian at North Wildwood, L.L.C.<BR>
K. Hovnanian at Northampton. L.L.C.<BR>
K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.<BR>
K. Hovnanian at Northfield, L.L.C.<BR>
K. Hovnanian at Northlake, Inc.<BR>
K. Hovnanian at Ocean Township, Inc<BR>
K. HOVNANIAN AT OCEAN WALK, INC.<BR>
K. Hovnanian at Oceanport, L.L.C.<BR>
K. Hovnanian at Old Bridge, L.L.C.<BR>
K. Hovnanian at Olde Orchard, LLC<BR>
K. Hovnanian at Pacific Bluffs, LLC<BR>
K. Hovnanian at Paramus, L.L.C.<BR>
K. Hovnanian at Park Lane, LLC<BR>
K. Hovnanian at Parkside, LLC<BR>
K. Hovnanian at Parsippany-Troy Hills, L.L.C.<BR>
K. Hovnanian at Perkiomen I, Inc.<BR>
K. Hovnanian at Perkiomen II, Inc.<BR>
K. Hovnanian at Philadelphia II, L.L.C.<BR>
K. Hovnanian at Philadelphia III, L.L.C.<BR>
K. Hovnanian at Philadelphia IV, L.L.C.<BR>
K. Hovnanian at Piazza D&#146;Oro, L.L.C.<BR>
K. Hovnanian at Piazza Serena, L.L.C<BR>
K. Hovnanian at Pittsgrove, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.<BR>
K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Prado, L.L.C.<BR>
K. Hovnanian at Rancho Cristianitos, Inc.<BR>
K. Hovnanian at Rancho Santa Margarita, LLC<BR>
K. Hovnanian at Randolph I, L.L.C.<BR>
K. HOVNANIAN AT RAPHO, L.L.C<BR>
K. Hovnanian at Readington II, L.L.C.<BR>
K. Hovnanian at Red Bank, L.L.C.<BR>
K. Hovnanian at Reservoir Ridge, Inc.<BR>
K. Hovnanian at Ridgemont, L.L.C.<BR>
K. Hovnanian at Ridgestone, L.L.C.<BR>
K. Hovnanian at Riverbend, LLC<BR>
K. Hovnanian at Rivercrest, LLC<BR>
K. Hovnanian at Roderuck, L.L.C.<BR>
K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.<BR>
K. Hovnanian at Rowland Heights, LLC<BR>
K. Hovnanian at Sage, L.L.C.<BR>
K. Hovnanian at San Sevaine, Inc.<BR>
K. Hovnanian at Santa Nella, LLC<BR>
K. Hovnanian at Saratoga, Inc.<BR>
K. Hovnanian at Sawmill, Inc.<BR>
K. Hovnanian at Sayreville, L.L.C.<BR>
K. HOVNANIAN AT SCOTCH PLAINS II, INC.<BR>
K. Hovnanian at Scotch Plains, L.L.C.<BR>
K. Hovnanian at Sierra Estates, LLC<BR>
K. Hovnanian at Silver Spring, L.L.C.<BR>
K. Hovnanian at Skye Isle, LLC<BR>
K. Hovnanian at Smithville III, L.L.C.<BR>
K. Hovnanian at Smithville, Inc.<BR>
K. Hovnanian at Somers Point, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at South Brunswick V, Inc.<BR>
K. Hovnanian at South Brunswick, L.L.C.<BR>
K. Hovnanian at Sparta, L.L.C.<BR>
K. HOVNANIAN AT SPRINGCO, L.L.C.<BR>
K. Hovnanian at Stone Canyon, Inc.<BR>
K. HOVNANIAN AT STONY POINT, INC.<BR>
K. Hovnanian at Sunsets, LLC<BR>
K. Hovnanian at Sycamore, Inc.<BR>
K. Hovnanian at Tannery Hill, Inc.<BR>
K. Hovnanian at Teaneck, L.L.C.<BR>
K. Hovnanian at The Bluff, Inc.<BR>
K. Hovnanian at The Crosby, LLC<BR>
K. Hovnanian at The Gables, LLC<BR>
K. Hovnanian at The Monarch, L.L.C.<BR>
K. Hovnanian at The Preserve, LLC<BR>
K. Hovnanian at Thompson Ranch, LLC<BR>
K. Hovnanian at Thornbury, Inc.<BR>
K. Hovnanian at Tierrasanta, Inc.<BR>
K. Hovnanian at Trail Ridge, LLC<BR>
K. Hovnanian at Trenton, L.L.C.<BR>
K. Hovnanian at Trovata, Inc.<BR>
K. Hovnanian at Union Township I, Inc.<BR>
K. Hovnanian at Union Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township I, Inc.<BR>
K. Hovnanian at Upper Freehold Township II, L.L.C.<BR>
K. Hovnanian at Upper Freehold Township III, L.L.C.<BR>
K. Hovnanian at Upper Makefield I, Inc.<BR>
K. Hovnanian at Upper Uwchlan II, L.L.C.<BR>
K. Hovnanian at Upper Uwchlan, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian at Vail Ranch, Inc.<BR>
K. Hovnanian at Valle Del Sol, LLC<BR>
K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.<BR>
K. Hovnanian at Victorville, L.L.C.<BR>
K. HOVNANIAN AT VINELAND, L.L.C.<BR>
K. Hovnanian at Vista Del Sol, L.L.C.<BR>
K. Hovnanian at Wall Township VI, Inc.<BR>
K. Hovnanian at Wall Township VIII, Inc.<BR>
K. Hovnanian at Wanaque, L.L.C.<BR>
K. Hovnanian at Warren Township, L.L.C.<BR>
K. Hovnanian at Washington, L.L.C.<BR>
K. HOVNANIAN AT WASHINGTONVILLE, INC.<BR>
K. Hovnanian at Wayne III, Inc.<BR>
K. Hovnanian at Wayne IX, L.L.C.<BR>
K. Hovnanian at Wayne V, Inc.<BR>
K. HOVNANIAN AT WAYNE, VIII, L.L.C.<BR>
K. Hovnanian at West Bradford, L.L.C.<BR>
K. Hovnanian at West Milford, L.L.C.<BR>
K. Hovnanian at West View Estates, L.L.C.<BR>
K. Hovnanian at West Windsor, L.L.C.<BR>
K. Hovnanian at Westshore, LLC<BR>
K. Hovnanian at Wheeler Ranch, LLC<BR>
K. Hovnanian at Wildrose, Inc.<BR>
K. Hovnanian at Wildwood Bayside, L.L.C.<BR>
K. Hovnanian at Willow Brook, L.L.C.<BR>
K. HOVNANIAN AT WINCHESTER, LLC<BR>
K. Hovnanian at Woodcreek West, LLC<BR>
K. Hovnanian at Woodhill Estates, L.L.C.<BR>
K. Hovnanian at Woolwich I, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Cambridge Homes, L.L.C.<BR>
K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.<BR>
K. Hovnanian Classics CIP, L.L.C.<BR>
K. Hovnanian Classics, L.L.C.<BR>
K. Hovnanian Communities, Inc.<BR>
K. Hovnanian Companies Metro D.C. North, L.L.C.<BR>
K. Hovnanian Companies Northeast, Inc.<BR>
K. Hovnanian Companies of California, Inc.<BR>
K. HOVNANIAN COMPANIES OF MARYLAND, INC.<BR>
K. HOVNANIAN COMPANIES OF NEW YORK, INC.<BR>
K. Hovnanian Companies of Pennsylvania, Inc.<BR>
K. Hovnanian Companies of Southern California, Inc.<BR>
K. Hovnanian Companies of Virginia, Inc.<BR>
K. Hovnanian Companies, LLC<BR>
K. Hovnanian Connecticut Acquisitions, L.L.C.<BR>
K. Hovnanian Construction II, Inc.<BR>
K. Hovnanian Construction III, Inc.<BR>
K. Hovnanian Construction Management, Inc.<BR>
K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.<BR>
K. Hovnanian Delaware Acquisitions, L.L.C.<BR>
K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.<BR>
K. Hovnanian Developments of California, Inc.<BR>
K. Hovnanian Developments of Connecticut, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF D.C., INC.<BR>
K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.<BR>
K. Hovnanian Developments of Georgia, Inc.<BR>
K. Hovnanian Developments of Illinois, Inc.<BR>
K. Hovnanian Developments of Indiana, Inc.<BR>
K. Hovnanian Developments of Kentucky, Inc.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.<BR>
K. Hovnanian Developments of Michigan, Inc.<BR>
K. Hovnanian Developments of Minnesota, Inc.<BR>
K. Hovnanian Developments of New Jersey II, Inc.<BR>
K. Hovnanian Developments of New Jersey, Inc.<BR>
K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.<BR>
K. Hovnanian Developments of North Carolina, Inc.<BR>
K. Hovnanian Developments of Ohio, Inc.<BR>
K. Hovnanian Developments of Pennsylvania, Inc.<BR>
K. Hovnanian Developments of South Carolina, Inc.<BR>
K. Hovnanian Developments of Texas, Inc.<BR>
K. Hovnanian Developments of Virginia, Inc.<BR>
K. Hovnanian Developments of West Virginia, Inc.<BR>
K. Hovnanian Eastern Pennsylvania, L.L.C.<BR>
K. HOVNANIAN FIRST HOMES, L.L.C.<BR>
K. Hovnanian Florida Realty, L.L.C.<BR>
K. Hovnanian Forecast Homes Northern, Inc.<BR>
K. Hovnanian Four Seasons @ Historic Virginia, LLC<BR>
K. Hovnanian Four Seasons at Gold Hill, LLC<BR>
K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC<BR>
K. HOVNANIAN GREAT WESTERN HOMES, LLC<BR>
K. Hovnanian Holdings NJ, L.L.C.<BR>
K. Hovnanian Homes &#151; DFW, L.L.C.<BR>
K. Hovnanian Homes at Cameron Station, LLC<BR>
K. Hovnanian Homes at Camp Springs, L.L.C.<BR>
K. Hovnanian Homes at Fairwood, L.L.C.<BR>
K. Hovnanian Homes at Forest Run, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.<BR>
K. Hovnanian Homes at Greenway Farm, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Homes at Jones Station 1, L.L.C.<BR>
K. Hovnanian Homes at Jones Station 2, L.L.C.<BR>
K. Hovnanian Homes at Maxwell Place, L.L.C.<BR>
K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.<BR>
K. Hovnanian Homes at Primera, L.L.C.<BR>
K. Hovnanian Homes at Renaissance Plaza, L.L.C.<BR>
K. Hovnanian Homes at Russett, L.L.C.<BR>
K. Hovnanian Homes of D.C., L.L.C.<BR>
K. HOVNANIAN HOMES OF DELAWARE, L.L.C.<BR>
K. Hovnanian Homes of Georgia, L.L.C.<BR>
K. Hovnanian Homes of Houston, L.L.C.<BR>
K. Hovnanian Homes of Indiana, L.L.C.<BR>
K. Hovnanian Homes of Maryland, L.L.C.<BR>
K. Hovnanian Homes of Minnesota, L.L.C.<BR>
K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.<BR>
K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.<BR>
K. Hovnanian Homes of South Carolina, LLC<BR>
K. Hovnanian Homes of Virginia, Inc.<BR>
K. Hovnanian Homes of West Virginia, L.L.C.<BR>
K. Hovnanian North Central Acquisitions, L.L.C.<BR>
K. Hovnanian North Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Northeast Services, L.L.C.<BR>
K. Hovnanian of Houston II, L.L.C.<BR>
K. Hovnanian Ohio Realty, L.L.C.<BR>
K. HOVNANIAN OSTER HOMES, L.L.C.<BR>
K. Hovnanian PA Real Estate, Inc.<BR>
K. Hovnanian Pennsylvania Acquisitions, L.L.C.<BR>
K. Hovnanian Port Imperial Urban Renewal, Inc.<BR>
K. Hovnanian Properties of Red Bank, Inc.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian Shore Acquisitions, L.L.C.<BR>
K. Hovnanian South Jersey Acquisitions, L.L.C.<BR>
K. Hovnanian Southern New Jersey, L.L.C.<BR>
K. HOVNANIAN STANDING ENTITY, L.L.C.<BR>
K. Hovnanian Summit Holdings, L.L.C.<BR>
K. Hovnanian Summit Homes of Kentucky, L.L.C.<BR>
K. Hovnanian Summit Homes of Michigan, L.L.C.<BR>
K. Hovnanian Summit Homes of Pennsylvania, L.L.C.<BR>
K. Hovnanian Summit Homes of West Virginia, L.L.C.<BR>
K. Hovnanian Summit Homes, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Florida, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Illinois, L.L.C.<BR>
K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.<BR>
K. HOVNANIAN T&#038;C INVESTMENT, L.L.C.<BR>
K. Hovnanian T&#038;C Management Co., L.L.C.<BR>
K. Hovnanian Venture I, L.L.C.<BR>
K. HOVNANIAN WINDWARD HOMES, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT BAKERSFIELD, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Beaumont, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Hemet, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Huntfield,L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">K. Hovnanian&#146;s Four Seasons at Los Banos, LLC<BR>
K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC<BR>
K. HOVNANIAN&#146;S FOUR SEASONS AT RENAISSANCE, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.<BR>
K. Hovnanian&#146;s Four Seasons at Westshore, LLC<BR>
K. Hovnanian&#146;s Four Seasons, LLC<BR>
K. Hovnanian&#146;s Parkside at Towngate, L.L.C.<BR>
K. Hovnanian&#146;s Private Home Portfolio, L.L.C.<BR>
KHIP, L.L.C.<BR>
LANDARAMA, INC.<BR>
M &#038; M at Long Branch, Inc<BR>
M&#038;M at Chesterfield, LLC<BR>
M&#038;M AT Copper Beech, L.L.C.<BR>
M&#038;M AT Crescent Court, L.L.C.<BR>
M&#038;M at East Rutherford, L.L.C.<BR>
M&#038;M AT MORRISTOWN, L.L.C.<BR>
M&#038;M AT SPINNAKER POINTE, L.L.C.<BR>
M&#038;M AT SPRUCE HOLLOW, L.L.C.<BR>
M&#038;M AT SPRUCE RUN, L.L.C.<BR>
M&#038;M at Station Square, L.L.C.<BR>
M&#038;M at Tamarack Hollow, L.L.C.<BR>
M&#038;M AT UNION, L.L.C.<BR>
M&#038;M at West Orange, L.L.C.<BR>
M&#038;M at Wheatena Urban Renewal, L.L.C.<BR>
M&#038;M INVESTMENTS, L.P.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Matzel &#038; Mumford at Egg Harbor, L.L.C.<BR>
MATZEL &#038; MUMFORD AT MONTGOMERY, L.L.C.<BR>
Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.<BR>
MCNJ, Inc.<BR>
Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.<BR>
Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.<BR>
MIDWEST BUILDING PRODUCTS &#038; CONTRACTOR SERVICES, L.L.C.<BR>
MMIP, L.L.C.<BR>
Natomas Central Neighborhood Housing, L.L.C.<BR>
New Land Title Agency, L.L.C.<BR>
PADDOCKS, L.L.C.<BR>
PARK TITLE COMPANY, LLC<BR>
Pine Ayr, LLC<BR>
RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.<BR>
Ridgemore Utility, L.L.C.<BR>
SEABROOK ACCUMULATION CORPORATION<BR>
STONEBROOK HOMES, INC.<BR>
Terrapin Realty, L.L.C.<BR>
The Matzel &#038; Mumford Organization, Inc.<BR>
Washington Homes at Columbia Town Center, L.L.C.<BR>
Washington Homes, Inc.<BR>
Westminster Homes of Alabama, L.L.C.<BR>
Westminster Homes of Mississippi, LLC<BR>
Westminster Homes of Tennessee, Inc.<BR>
WESTMINSTER HOMES, INC.<BR>
WH LAND I, INC.<BR>
WH PROPERTIES, INC.

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">WH/PR Land Company, L.L.C.<BR>
Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SCHEDULE B<BR>
TO<BR>
PLEDGE AGREEMENT</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Entity Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>State of<BR>Formation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Members</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT BRIDGEWATER I,
L.L.C
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT CEDAR GROVE
IV, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT CHESTER I,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
DE
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT CHESTERFIELD,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT DEPTFORD
TOWNSHIP, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT EDGEWATER,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT EGG HARBOR
TOWNSHIP, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT FLORENCE I,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT FLORENCE II,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT FOREST
MEADOWS, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT FREEHOLD
TOWNSHIP, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT GREAT NOTCH,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT GUTTENBERG,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT HACKETTSTOWN
II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT HAWTHORNE,
L.L.C
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT JERSEY CITY V
URBAN RENEWAL COMPANY, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LONG BRANCH I,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LOWER MACUNGIE
TOWNSHIP I, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LOWER MACUNGIE
TOWNSHIP II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LOWER
MAKEFIELD TOWNSHIP I, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LOWER MORELAND
I, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT LOWER MORELAND
II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MANALAPAN III,
LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MANSFIELD I,
LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
DE
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MARLBORO
TOWNSHIP IX, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MARLBORO
TOWNSHIP V, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MARLBORO
TOWNSHIP VIII, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MENDHAM
TOWNSHIP, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MILLVILLE I,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MILLVILLE II,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MONROE III,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT MONTVALE,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT NORTH BERGEN,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT NORTH CALDWELL
II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT NORTH
CALDWELL, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT NORTH
WILDWOOD, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT PITTSGROVE,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT READINGTON II,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT RED BANK,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT SCOTCH PLAINS,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT SMITHVILLE
III, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT SOMERS POINT,
LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT TEANECK, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT UPPER FREEHOLD
TOWNSHIP II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT UPPER UWCHLAN
II, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN AT UPPER UWCHLAN,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN CAMBRIDGE HOMES,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">FL
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Hovnanian Developments of
Florida, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN EASTERN
PENNSYLVANIA, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian at Perkiomen II, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN GREAT WESTERN
BUILDING COMPANY, LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">AZ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Arizona, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN GREAT WESTERN
HOMES, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">AZ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Arizona, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN HOLDINGS NJ, LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of New
Jersey, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN NORTHEAST
SERVICES, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><BR>
K. Hovnanian Holdings NJ, L.L.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN OHIO REALTY,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">OH
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Ohio, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN PENNSYLVANIA
ACQUISITIONS, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Companies of
Pennsylvania, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN SUMMIT HOMES OF
MICHIGAN, L.L.C
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">MI
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Michigan, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN SUMMIT HOMES OF
WEST VIRGINIA, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">WV
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of West
Virginia, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN SUMMIT HOMES,
L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">OH
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Ohio, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. HOVNANIAN T&#038;C HOMES AT
MINNESOTA, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">MN
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">K. Hovnanian Developments of
Minnesota, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">M&#038;M AT CHESTERFIELD, LLC
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">The Matzel &#038; Mumford
Organization, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px">LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">M&#038;M AT TAMARACK HOLLOW, L.L.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">NJ
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">M&#038;M Investments, L.P.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SCHEDULE C</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>Actions to Perfect</B>

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Alabama as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Alabama
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Arizona as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Arizona
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of California as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the California
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Connecticut as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral the Connecticut
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Delaware as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Delaware
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the District of Columbia as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the District
of Columbia Recorder of Deeds.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Florida as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Florida Secured
Transaction Registry.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Georgia as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Office of the
Clerk of Superior Court of any County of Georgia.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Illinois as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Illinois
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Indiana as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Indiana
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Kentucky as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Statement that reasonably identifies the Pledged Collateral with the Kentucky Secretary of
State.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Maryland as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Maryland State
Department of Assessments and Taxation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Michigan as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Michigan
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Minnesota as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Minnesota
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Mississippi as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the
Mississippi Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of New Jersey as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the New Jersey
Division of Commercial Recording.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of New York as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the New York
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of North Carolina as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the North
Carolina Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Ohio as identified on
Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Pledged Collateral with the Ohio Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Pennsylvania as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the
Pennsylvania Secretary of the Commonwealth.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of South Carolina as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the South
Carolina Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Tennessee as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Tennessee
Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Texas as identified on
Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code Financing
Statement that</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">reasonably identifies the Pledged Collateral with the Texas Secretary of State.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of Virginia as identified
on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial Code
Financing Statement that reasonably identifies the Pledged Collateral with the Virginia State
Corporation Commission.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Pledgor organized under the laws of the state of West Virginia as
identified on Schedule&nbsp;1.1(C) of the Security Agreement, the filing of a Uniform Commercial
Code Financing Statement that reasonably identifies the Pledged Collateral with the West
Virginia Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to the Pledged Collateral constituting certificated securities, delivery of the
certificates representing such Pledged Collateral to the Collateral Agent in registered form,
indorsed in blank, by an effective endorsement or accompanied by undated stock powers with
respect thereto duly indorsed in blank by an effective endorsement.</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>c91350exv10w4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV style="border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FIRST LIEN SECURITY AGREEMENT</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">made by
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>K. HOVNANIAN ENTERPRISES, INC.,<BR>
HOVNANIAN ENTERPRISES, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">and certain of their respective Subsidiaries
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">in favor of
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>WILMINGTON TRUST COMPANY</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">as Collateral Agent
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Dated as of October&nbsp;20, 2009
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV style="border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><DIV align="center"><DIV style="font-size: 1pt; margin-top: 10pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff">
    <TD  colspan="5" align="center">ARTICLE 1<br><FONT style="font-variant: SMALL-CAPS">Defined Terms</FONT></TD>
</TR>
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.01<I>. Definitions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1.02<I>. Other Definitional Provisions</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="5" align="center">ARTICLE 2<br><FONT style="font-variant: SMALL-CAPS">Grant of Security Interest</FONT><BR></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD colspan="5" align="center">ARTICLE 3<br><FONT style="font-variant: SMALL-CAPS">Representations and Warranties</FONT><BR></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.01<I>. Title: No Other Liens</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.02<I>. Perfected First Priority Liens</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.03<I>. Jurisdiction of Organization; Chief Executive Office</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.04<I>. Farm Products</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.05<I>. Investment Property</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3.06<I>. Receivables</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="5" align="center">ARTICLE 4<br><FONT style="font-variant: SMALL-CAPS">Covenants</FONT><BR></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.01<I>. Maintenance of Perfected
Security Interest; Further Documentation</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.02<I>. Changes In Name, Etc.</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.03<I>. Delivery of Instruments,
Certificated Securities and Chattel Paper</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4.04<I>. Intellectual Property</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD  colspan="5" align="center">ARTICLE 5<br><FONT style="font-variant: SMALL-CAPS">Investing Amounts in the Securities Accounts</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.01<I>. Investments</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5.02<I>. Liability</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD  colspan="5" align="center">ARTICLE 6<br><FONT style="font-variant: SMALL-CAPS">Remedial Provisions</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.01<I>. Certain Matters Relating to Receivables</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.02<I>. Communications with Obligors: Grantors Remain Liable</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><FONT style="font-variant: SMALL-CAPS">Page</FONT></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.03<I>. Proceeds to Be Turned Over to Agent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.04<I>. Application of Proceeds</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.05<I>. Code and Other Remedies</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.06<I>. Subordination</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6.07<I>. Deficiency</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD  colspan="5" align="center">ARTICLE 7<br><FONT style="font-variant: SMALL-CAPS">The Agent</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.01<I>. Agent&#146;s Appointment as Attorney-in-fact, Etc.</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.02<I>. Duty of Agent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.03<I>. Execution of Financing Statements</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7.04<I>. Authority of Agent</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD  colspan="5" align="center">ARTICLE 8<br><FONT style="font-variant: SMALL-CAPS">Miscellaneous</FONT></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.01<I>. Amendments in Writing</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.02<I>. Notices</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.03<I>. No Waiver by Course of Conduct; Cumulative Remedies</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.04<I>. Enforcement Expenses; Indemnification</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.05<I>. Successors and Assigns</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.06<I>. Set-off</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.07<I>. Counterparts</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.08<I>. Severability</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.09<I>. Section&nbsp;Headings</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.10<I>. Integration</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.11<I>. Governing Law</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.12<I>. Submission to Jurisdiction; Waivers</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.13<I>. Acknowledgements</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.14<I>. Additional Grantors</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.15<I>. Releases</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.16<I>. Waiver of Jury Trial</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.17<I>. Control Agreements</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8.18<I>. Agent Privileges, Powers and Immunities</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Schedule&nbsp;A &#151; List of Entities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Schedule&nbsp;B &#151; Commercial Tort Claims</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Schedule&nbsp;C &#151; Perfection Certificate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Schedule&nbsp;D &#151; Actions Required To Perfect</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;A &#151; Intellectual Property Security Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exhibit&nbsp;B &#151; Joinder Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FIRST LIEN SECURITY AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">THIS FIRST LIEN SECURITY AGREEMENT (the &#147;<B>Agreement</B>&#148;), dated as of October&nbsp;20, 2009, is made by
K. Hovnanian Enterprises, Inc., a California corporation (the &#147;<B>Issuer</B>&#148;), Hovnanian Enterprises,
Inc., a Delaware corporation (&#147;<B>Hovnanian</B>&#148;) and each of the signatories listed on Schedule&nbsp;A hereto
(together with any other entity that may become a party hereto as provided herein, the &#147;<B>Grantors</B>&#148;),
in favor of Wilmington Trust Company, as Collateral Agent (in such capacity, the &#147;<B>Agent</B>&#148;) for the
benefit of itself, the Trustee (as defined below) and the Noteholders (as defined below).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><u>W</u> <u>I</u> <u>T</u> <u>N</u> <u>E</u> <u>S</u> <u>S</u> <u>E</u> <u>T</u> <u>H</u>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian and each of the other Guarantors have entered into the
Indenture dated as of October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the &#147;<B>Indenture</B>&#148;) with Wilmington Trust Company, a Delaware banking
corporation, as trustee (in such capacity, the &#147;<B>Trustee</B>&#148;), pursuant to which the Issuer has issued,
and may from time to time issue, its 10 5/8% Senior Secured Notes due 2016 (collectively, the
&#147;<B>Secured Notes</B>&#148;) upon the terms and subject to the conditions set forth therein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian and each of the other Guarantors party thereto entered into the
indenture dated as of May&nbsp;27, 2008, as amended, supplemented, amended and restated or otherwise
modified from time to time, with Wilmington Trust Company (as successor to Deutsche Bank National
Trust Company) as trustee pursuant to which the Issuer issued its 11 1/2 % Senior Secured Notes due
2013;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian and each of the other Guarantors party thereto have entered
into the indenture dated as of December&nbsp;3, 2008, as amended, supplemented, amended and restated or
otherwise modified from time to time, with Wilmington Trust Company as trustee pursuant to which
the Issuer issued its 18.0% Senior Secured Notes due 2017;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and Wilmington Trust Company, as Mortgage Tax
Collateral Agent have entered into the Intercreditor Agreement dated as of May&nbsp;27, 2008, as amended
by the First Amendment dated as of October&nbsp;20, 2009 (as amended, supplemented, amended or restated
or otherwise modified from time to time, the &#147;<B>May&nbsp;2008 Intercreditor Agreement</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">First-Lien Administrative Agent, the Senior Trustee, the Senior Noteholder Collateral Agent,
the Junior Trustee, the Junior Agent and Wilmington Trust Company, as Mortgage Tax Collateral Agent
have entered into the Intercreditor Agreement dated as of December&nbsp;3, 2008, as amended by the First
Amendment dated as of October&nbsp;20, 2009 (as amended, supplemented, amended or restated or otherwise
modified from time to time, together with the May&nbsp;2008 Intercreditor Agreement, the &#147;<B>Intercreditor
Agreements</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Secured Notes constitute First Lien Indebtedness under each of the Intercreditor
Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer is a member of an affiliated group of companies that includes Hovnanian,
the Issuer&#146;s parent company, and each other Grantor;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Issuer and the other Grantors are engaged in related businesses, and each Grantor
will derive substantial direct and indirect benefit from the issuance of the Secured Notes; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, in consideration of the premises and to induce Noteholders to purchase Secured
Notes, each Grantor hereby agrees with the Agent, for the ratable benefit of the Secured Parties,
as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 1<BR>
<FONT style="font-variant: SMALL-CAPS">Defined Terms</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;1.01<I>. Definitions. </I>(a)&nbsp;Definitions set forth above are incorporated herein and
unless otherwise defined herein, terms defined in the Indenture and used herein shall have the
meanings respectively given to them in the Indenture, and the following terms are used herein as
defined in the New York UCC: Accounts, Chattel Paper, Commercial Tort Claims, Deposit Account,
Documents, Equipment, Electronic Chattel Paper, Farm Products, Fixtures, General Intangibles,
Goods, Payment Intangibles, Instruments, Inventory, Investment Property, Letter of Credit Rights,
Payment Intangibles, Securities Accounts, Software and Supporting Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The following terms shall have the following meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Additional Pari Passu Liens</B>&#148;: any liens on the Collateral which secure Additional Secured
Obligations on an equal and ratable basis with the Secured Obligations, provided that such liens
are permitted by clauses (i)(a)(ii), (i)(a)(iii) and (i)(b) of the definition of Permitted Liens in
the Indenture.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Additional Pari Passu Collateral Agent</B>&#148;: the agent or other representative with respect to
any Additional Secured Obligations in favor of which any Additional Pari Passu Liens are granted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Additional Secured Obligations</B>&#148;: any obligations arising pursuant to any Indebtedness
permitted to be secured on a pari passu basis with the Secured Notes pursuant to clauses
(i)(a)(ii), (i)(a)(iii) and (i)(b) of the definition of Permitted Liens in the Indenture (including
for the avoidance of doubt any guarantees with respect thereto).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Agreement</B>&#148;: this Security Agreement, as the same may be amended, restated, supplemented or
otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Cash Equivalents</B>&#148;: (i)&nbsp;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 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 &#038; Poor&#146;s or by Moody&#146;s or F-1 by Fitch, provided that such
obligations, certificates of deposit, demand deposits, time deposits, and repurchase agreements
have a maturity of less than one year from the date of purchase, and (ii)&nbsp;investment grade
commercial paper or debt or commercial paper issued by 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
having a maturity date of one year or less from the date of purchase, and (iii)&nbsp;funds holding
assets primarily consisting of those described in clause (i)&nbsp;and (ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral</B>&#148;: as defined in Article&nbsp;2.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral Agency Agreement</B>&#148;: an intercreditor or collateral agency agreement entered into
between the Additional Pari Passu Collateral Agent(s) and the Agent on terms reasonably
satisfactory to the Agent, the Issuer and Hovnanian, setting forth the respective rights of the
Secured Parties and the Additional Pari Passu Collateral Agent(s) and the holders of Additional
Secured Obligations with respect to the Collateral and providing, among other things, that (x)&nbsp;the
Additional Pari Passu Liens shall rank equally with or junior to the liens securing the Secured
Obligations, (y)&nbsp;any proceeds of the Collateral shall be applied ratably to the Secured Obligations
and the Additional Secured Obligations and (z)&nbsp;the Agent, including at the direction of the
Noteholders, shall be entitled to take such actions, or to direct any agent appointed pursuant to
the Collateral Agency Agreement to take such actions, as are permitted hereby, by the Indenture and
by the Intercreditor Agreements independently of any direction or vote of the holders of the
Additional Secured Obligations.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Contracts</B>&#148;: any contracts and agreements for the purchase, acquisition or sale of real or
personal property or the receipt or performance of services, any contract rights relating thereto,
and all other rights to such contract or agreements and any right to payment for or to receive
moneys due or to become due for items sold or leased or for services rendered, together with all
rights of any Grantor to damages arising thereunder or to perform and to exercise all remedies
thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Collateral Account</B>&#148;: any collateral account established by the Agent as provided in Section
6.01 or 6.03.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Copyright Licenses</B>&#148;: any written agreement naming any Grantor as licensor or licensee,
granting any right under any Copyright, including, without limitation, the grant of rights to
distribute, exploit and sell materials derived from any Copyright.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Copyrights</B>&#148;: (i)&nbsp;all copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished, all registrations and recordings thereof, and all applications in
connection therewith, including, without limitation, all registrations, recordings and applications
in the United States Copyright Office, and (ii)&nbsp;the right to obtain all renewals thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Deposit Accounts</B>&#148;: the collective reference to each Deposit Account (as such term is defined
in Section&nbsp;1.01(a) hereof) in the name of the applicable Grantor, together with any one or more
securities accounts into which any monies on deposit in any such Deposit Account may be swept or
otherwise transferred now or hereafter and from time to time, and any additional, substitute or
successor Deposit Account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Excluded Accounts</B>&#148; shall mean at any time those deposit, checking or securities accounts of
any of the Grantors (i)&nbsp;that individually have an average monthly balance (over the most recent
ended 3-month period) less than $250,000 and which together do not have an average monthly balance
(for such 3-month period) in excess of $2,000,000 in the aggregate, (ii)&nbsp;all escrow accounts (in
which funds are held for or of others by virtue of customary real estate practice or contractual or
legal requirements) and (iii)&nbsp;such other accounts with respect to which Hovnanian determines that
the cost of perfecting a Lien thereon is excessive in relation to the benefit thereof (as
reasonably determined by Hovnanian&#146;s Board of Directors in a board resolution delivered to the
Agent).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Guarantors</B>&#148;: the collective reference to each Grantor other than the Issuer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Intellectual Property</B>&#148;: the collective reference to all rights, priorities and privileges,
whether arising under United States, multinational or foreign laws,
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">in, to and under the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the
Trademarks and the Trademark Licenses, and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all proceeds and damages
therefrom.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Investment Property</B>&#148;: the collective reference to (i)&nbsp;all &#147;investment property&#148; as such term
is defined in Section&nbsp;9-102(a)(49) of the New York UCC, and (ii)&nbsp;whether or not constituting
&#147;investment property&#148; as so defined, all Pledged Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Issuers</B>&#148;: the collective reference to each issuer of any Investment Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Law</B>&#148;: 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>New York UCC</B>&#148;: the Uniform Commercial Code as from time to time in effect in the State of New
York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Noteholder</B>&#148;: &#147;Holder&#148; or &#147;Holder of Notes&#148; as defined in the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Noteholder Collateral Document</B>&#148;: any agreement, document or instrument pursuant to which a
Lien is granted by the Issuer or any Guarantor to secure any Secured Obligations or under which
rights or remedies with respect to any such Liens are governed, as the same may be amended,
restated or otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Noteholder Document</B>&#148;: collectively, (a)&nbsp;the Indenture, the Secured Notes and the Noteholder
Collateral Documents and (b)&nbsp;any other related document or instrument executed and delivered
pursuant to any Noteholder Document described in clause (a)&nbsp;above evidencing or governing any
Secured Obligations as the same may be amended, restated or otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Official Body</B>&#148;: any national, federal, state, local or other governmental 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Patent License</B>&#148;: all written agreements providing for the grant by or to any Grantor of any
right to manufacture, use or sell any invention covered in whole or in part by a Patent.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Patents</B>&#148;: (i)&nbsp;all letters patent of the United States, any other country or any political
subdivision thereof, all reissues and extensions thereof, (ii)&nbsp;all applications for letters patent
of the United States or any other country and all divisions, continuations and
continuations-in-part thereof, and (iii)&nbsp;all rights to obtain any reissues or extensions of the
foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Perfection Certificate</B>&#148;: with respect to any Grantor, a certificate substantially in the form
of Schedule&nbsp;D, completed and supplemented with the schedules contemplated thereby, and signed by an
officer of such Grantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Pledged Notes</B>&#148;: all promissory notes issued to or held by any Grantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Proceeds</B>&#148;: all &#147;proceeds&#148; as such term is defined in Section&nbsp;9-102(a)(64) of the New York UCC
and, in any event, shall include, without limitation, all dividends or other income from the
Investment Property, collections thereon or distributions or payments with respect thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Receivable</B>&#148;: any right to payment for real or personal property sold or leased or for
services rendered, whether or not such right is evidenced by a Contract, an Instrument or Chattel
Paper and whether or not it has been earned by performance (including, without limitation, any
Account).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Secured Obligations</B>&#148;: all Indebtedness and other Obligations under the Indenture, the Secured
Notes, the Guarantees and the Noteholder Collateral Documents, together with any extensions,
renewals, replacements or refundings thereof and all costs and expenses of enforcement and
collection, including reasonable attorney&#146;s fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Secured Parties</B>&#148;: the collective reference to the Agent, the Trustee and the Noteholders, in
each case to which any Secured Obligations are owed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Securities Accounts</B>&#148;: the collective reference to the securities accounts in the name of the
applicable Grantor and any additional, substitute or successor account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Trademark License</B>&#148;: any written agreement providing for the grant by or to any Grantor of any
right to use any Trademark.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Trademarks</B>&#148;: (i)&nbsp;all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, logos and other source or business
identifiers, and all goodwill associated therewith, now owned or hereafter acquired, all
registrations and recordings thereof, and all applications in connection therewith, whether in the
United States Patent and Trademark Office or in any similar office or agency of the United States,
any State thereof or any other country or any political subdivision thereof,
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">and all common-law rights related thereto, and (ii)&nbsp;the right to obtain all renewals thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">&#147;<B>Vehicles</B>&#148;: all cars, trucks, trailers, construction and earth moving equipment and other
vehicles covered by a certificate of title law of any state and all tires and other appurtenances
to any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;1.02<I>. Other Definitional Provisions.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The words &#147;hereof,&#148; &#147;herein&#148;, &#147;hereto&#148; and &#147;hereunder&#148; and words of similar import when
used in this Agreement shall refer to this Agreement as a whole and not to any particular provision
of this Agreement, and Section and Schedule references are to this Agreement unless otherwise
specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor&#146;s Collateral or the relevant part
thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 2<BR>
<FONT style="font-variant: SMALL-CAPS">Grant of Security Interest</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Grantor hereby grants to the Agent, for the ratable benefit of the Secured Parties, a
security interest in, all of the following property now owned or at any time hereafter acquired by
such Grantor or in which such Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the &#147;<B>Collateral</B>&#148;), as collateral security for the prompt and
complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Secured Obligations:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;all Accounts;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;all Chattel Paper (including, Electronic Chattel Paper);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;all Commercial Tort Claims (including those claims listed on Schedule&nbsp;B hereto, in which
the claim amount individually exceeds $2,000,000, as such schedule is amended or supplemented from
time to time);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;all Contracts;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;all Securities Accounts;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(f)&nbsp;all Deposit Accounts;
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(g)&nbsp;all Documents (other than title documents with respect to vehicles);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(h)&nbsp;all Equipment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(i)&nbsp;all Fixtures;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(j)&nbsp;all General Intangibles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(k)&nbsp;all Goods;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(l)&nbsp;all Instruments;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(m)&nbsp;all Intellectual Property;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(n)&nbsp;all Inventory;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(o)&nbsp;all Investment Property;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(p)&nbsp;all letters of credit;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(q)&nbsp;all Letter of Credit Rights;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(r)&nbsp;all Payment Intangibles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(s)&nbsp;all Vehicles and title documents with respect to Vehicles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(t)&nbsp;all Receivables;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(u)&nbsp;all Software;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(v)&nbsp;all Supporting Obligations;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(w)&nbsp;to the extent, if any, not included in clauses (a)&nbsp;through (v)&nbsp;above, each and every other
item of personal property whether now existing or hereafter arising or acquired;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(x)&nbsp;all books and records pertaining to any of the Collateral; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(y)&nbsp;to the extent not otherwise included, all Proceeds, Supporting Obligations and products of
any and all of the foregoing and all collateral security and guarantees given by any Person with
respect to any of the foregoing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>provided</I>, <I>however</I>, that notwithstanding any of the other provisions set forth in this Article&nbsp;2
(and notwithstanding any recording of the Agent&#146;s Lien in the U.S. Patent and Trademark Office or
other registry office in any jurisdiction), this Agreement shall not constitute a grant of a
security interest in, and the Collateral shall not include, (i)&nbsp;any property or assets constituting
&#147;Excluded Property&#148; in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the Indenture or (ii)&nbsp;any property to the extent that such grant of a security interest is
prohibited by any applicable Law of an Official Body, requires a consent not obtained of any
Official Body pursuant to such Law or is prohibited by, or constitutes a breach or default under or
results in the termination of or gives rise to any right of acceleration, modification or
cancellation or requires any consent not obtained under, any contract, license, agreement,
instrument or other document evidencing or giving rise to such property or, in the case of any
Investment Property, or Pledged Note, any applicable shareholder or similar agreement, except to
the extent that such Law or the term in such contract, license, agreement, instrument or other
document or shareholder or similar agreement providing for such prohibition, breach, default or
termination or requiring such consent is ineffective under applicable Law including Sections&nbsp;9-406,
9-407, 9-408 or 9-409 of the New York UCC (or any successor provision or provisions); <I>provided</I>,
<I>further</I>, that no security interest shall be granted in United States &#147;intent-to-use&#148; trademark or
service mark applications unless and until acceptable evidence of use of the trademark or service
mark has been filed with and accepted by the U.S. Patent and Trademark Office pursuant to Section
1(c) or Section 1(d) of the Lanham Act (U.S.C. 1051, et. seq.), and to the extent that, and solely
during the period in which, the grant of a security interest therein would impair the validity or
enforceability of such intent-to-use trademark or service mark applications under applicable
federal Law. After such period and after such evidence of use has been filed and accepted, each
Grantor acknowledges that such interest in such trademark or service mark applications will become
part of the Collateral. The Agent agrees that, at any Grantor&#146;s reasonable request and expense, it
will provide such Grantor confirmation that the assets described in this paragraph are in fact
excluded from the Collateral during such limited period only upon receipt of an Officers&#146;
Certificate or an Opinion of Counsel to that effect. Notwithstanding the foregoing, in the event
that Rule&nbsp;3-16 of Regulation&nbsp;S X under the Securities Act requires (or is replaced with another
rule or regulation, or any other law, rule or regulation is adopted, which would require) the
filing with the SEC of separate financial statements of any Guarantor or of K. Hovnanian JV
Holdings, L.L.C., then the capital stock or other securities of such Guarantor or of K. Hovnanian
JV Holdings, L.L.C. shall automatically be deemed released and not to be and not to have been part
of the Collateral but only to the extent necessary to not be subject to such requirement. In such
event, this Agreement may be amended or modified, without the consent of any Noteholder, upon the
Agent&#146;s receipt of a written authorization from the Issuer stating that such amendment is permitted
hereunder, which the Agent shall be entitled to conclusively rely upon, to the extent necessary to
evidence the release of the lien created hereby on the shares of capital stock or other securities
that are so deemed to no longer constitute part of the Collateral. <U> </U>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 3<BR>
<FONT style="font-variant: SMALL-CAPS">Representations and Warranties</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">To induce the Noteholders to purchase the Secured Notes, each Grantor hereby represents and
warrants to the Agent and each other Secured Party that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.01<I>. Title: No Other Liens. </I>Except for the security interest granted to the Agent
for the ratable benefit of the Secured Parties pursuant to this Agreement, such Grantor owns each
item of the Collateral free and clear of any and all Liens or claims of others except for the
Permitted Liens. No financing statement or other public notice with respect to all or any part of
the Collateral is on file or of record in any public office, except with respect to Permitted
Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.02<I>. Perfected First Priority Liens. </I>The security interests granted pursuant to
this Agreement (a)&nbsp;upon completion of the filings and other actions specified on Schedule&nbsp;D (which,
in the case of all filings and other documents referred to on said Schedule, have been delivered,
or will be delivered within the time periods set forth in Schedule&nbsp;D, to the Agent in completed
form) will constitute valid perfected (to the extent such security interest can be perfected by
such filings or actions) security interests in all of the Collateral in favor of the Agent, for the
ratable benefit of the Secured Parties, as collateral security for the Secured Obligations,
enforceable in accordance with the terms hereof against all creditors of such Grantor and any
Persons purporting to purchase any Collateral from such Grantor and (b)&nbsp;are prior to all other
Liens on the Collateral in existence on the date hereof except for Permitted Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.03<I>. Jurisdiction of Organization; Chief Executive Office. </I>On the date hereof, such
Grantor&#146;s exact legal name, jurisdiction of organization, identification number from the
jurisdiction of organization (if any), and the location of such Grantor&#146;s chief executive office or
sole place of business or principal residence, as the case may be, are specified in the Perfection
Certificate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.04<I>. Farm Products. </I>None of the Collateral constitutes, or is the Proceeds of, Farm
Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.05<I>. Investment Property. </I>Such Grantor is the record and beneficial owner of, and
has good title to, the Investment Property pledged by it hereunder, free of any and all Liens or
options in favor of, or claims of, any other Person, except the Permitted Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;3.06<I>. Receivables. </I>No amount payable in excess of $2,000,000 in the aggregate to all
Grantors under or in connection with any Receivables is evidenced by any Instrument or Chattel
Paper which has not been delivered to the Agent.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 4<BR>
<FONT style="font-variant: SMALL-CAPS">Covenants</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Each Grantor covenants and agrees with the Agent and the other Secured Parties that, from and
after the date of this Agreement until the payment in full of all outstanding Secured Obligations:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.01<I>. Maintenance of Perfected Security Interest; Further Documentation. </I>(a)&nbsp;Such
Grantor shall maintain the security interest created by this Agreement as a perfected security
interest to the extent required by this Agreement having at least the priority described in Section
3.02 and shall defend such security interest against the claims and demands of all Persons
whomsoever other than any holder of Permitted Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;At any time and from time to time, and at the sole expense of such Grantor, such Grantor
will promptly and duly execute and deliver, and have recorded, such further instruments and
documents and take such further actions as shall be required by applicable law for the purpose of
obtaining, perfecting or preserving the security interests purported to be granted under this
Agreement and of the rights and remedies herein granted, including, without limitation, (i)&nbsp;filing
any financing or continuation statements under the Uniform Commercial Code (or other similar laws)
in effect in any jurisdiction with respect to the security interests created hereby and (ii)&nbsp;in the
case of the Deposit Accounts, Investment Property, Letter of Credit Rights and the Securities
Accounts and any other relevant Collateral, taking any actions necessary to enable the Agent to
obtain &#147;control&#148; (within the meaning of the applicable Uniform Commercial Code) with respect
thereto, provided that the Grantor shall not be required to take any of the actions set forth in
this clause (ii)&nbsp;with respect to Excluded Accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;If any Grantor shall at any time acquire a Commercial Tort Claim, in which the claim
amount individually exceeds $2,000,000, such Grantor shall promptly notify the Agent in a writing
signed by such Grantor of the details thereof and grant to the Agent for the benefit of the Secured
Parties in such writing a security interest therein and in the Proceeds thereof, with such writing
to be in form and substance required by applicable law and such writing shall constitute a
supplement to Schedule&nbsp;B hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.02<I>. Changes In Name, Etc. </I>Such Grantor will, within thirty (30)&nbsp;calendar days
after any change its jurisdiction of organization or change its name, provide written notice
thereof to the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.03<I>. Delivery of Instruments, Certificated Securities and Chattel Paper. </I>If any
amount in excess of $2,000,000 in the aggregate payable under or in connection with any of the
Collateral shall be or become evidenced by any Instrument, certificated
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">security or Chattel Paper,
such Instrument, certificated security or Chattel Paper shall be promptly delivered to the Agent, duly indorsed, to be held
as Collateral pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;4.04<I>. Intellectual Property. </I>(a)&nbsp;Whenever such Grantor, either by itself or through
any agent, employee, licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the United States
Copyright Office or any similar office or agency in any other country or any political subdivision
thereof, such Grantor shall report such filing to the Agent on or before the date upon which the
Issuer is required to file reports with the Trustee pursuant to Section &#091;4.15&#093; of the Indenture for
the fiscal quarter in which such filing occurs. Such Grantor shall execute and deliver, and have
recorded, any and all agreements, instruments, documents, and papers as may be necessary to create
and perfect the Agent&#146;s and the other Secured Parties&#146; security interest in any registered or
applied for Copyright, Patent or Trademark and the goodwill and General Intangibles of such Grantor
relating thereto or represented thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Such Grantor&#146;s obligations under Section&nbsp;4.04(a) above shall include executing and
delivering, and having recorded, with respect to such Collateral, an agreement substantially in the
form of the Intellectual Property Security Agreement attached hereto as Exhibit&nbsp;A.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 5<BR>
<FONT style="font-variant: SMALL-CAPS">Investing Amounts in the Securities Accounts</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.01<I>. Investments. </I>If requested by the Issuer in writing, the Agent will, from time
to time, invest amounts on deposit in the Deposit Accounts or Securities Accounts in which the
Agent for the benefit of the Secured Parties holds a first priority, perfected security interest,
in Cash Equivalents pursuant to the written instructions of the Issuer. All investments may, at
the option of the Agent, be made in the name of the Agent or a nominee of the Agent and in a manner
that preserves the Issuer&#146;s ownership of, and the Agent&#146;s perfected first priority Lien on, such
investments. All income received from such investments shall accrue for the benefit of the Issuer
and shall be credited (promptly upon receipt by the Agent) to a Deposit Account or Securities
Account, in which Agent for the benefit of the Secured Parties holds a first priority, perfected
security interest. The Issuer will only direct the Agent to make investments in which the Agent
can obtain a first priority, perfected security interest, and the Issuer hereby agrees to execute
promptly any documents which may be required to implement or effectuate the provisions of this
Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;5.02<I>. Liability. </I>The Agent shall have no responsibility to the Issuer for any loss
or liability arising in respect of the investments in the Deposit Accounts or Securities Accounts
in which the Agent for the benefit of the Secured
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Parties holds a first priority perfected security interest (including, without limitation, as
a result of the liquidation of any thereof before maturity), except to the extent that such loss or
liability is found to be based on the Agent&#146;s gross negligence or willful misconduct as determined
by a final and nonappealable decision of a court of competent jurisdiction.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 6<BR>
<FONT style="font-variant: SMALL-CAPS">Remedial Provisions</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.01<I>. Certain Matters Relating to Receivables.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;At any time during the continuance of an Event of Default, the Agent shall have the right
to make test verifications of the Receivables in any manner and through any medium that it
reasonably considers advisable, and each Grantor shall furnish all such assistance and information
as the Agent may require in connection with such test verifications. The Agent shall endeavor to
provide the Issuer with notice at or about the time of such verifications, <I>provided </I>that the
failure to provide such notice shall not in any way compromise or adversely affect the exercise of
such remedy or the Agent&#146;s rights hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;The Agent hereby authorizes each Grantor to collect such Grantor&#146;s Receivables and the
Agent may curtail or terminate said authority at any time after the occurrence and during the
continuance of an Event of Default. The Agent shall endeavor to provide the Issuer with notice at
or about the time of the exercise of its rights pursuant to the preceding sentence, provided that
the failure to provide such notice shall not in any way compromise or adversely affect the exercise
of any rights or remedies hereunder. If requested in writing by the Agent at any time after the
occurrence and during the continuance of an Event of Default, any payments of Receivables, when
collected by any Grantor, (i)&nbsp;shall be forthwith (and, in any event, within two Business Days)
deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the Agent if
required, in a Collateral Account maintained under the sole dominion and control of the Agent,
subject to withdrawal by the Agent for the account of the Secured Parties only as provided in
Section&nbsp;6.04, and (ii)&nbsp;until so turned over, shall be held by such Grantor in trust for the Agent
and the Secured Parties, segregated from other funds of such Grantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;At the Agent&#146;s written request at any time after the occurrence and during the continuance
of an Event of Default, each Grantor shall deliver to the Agent all original and other documents
evidencing, and relating to, the agreements and transactions which gave rise to the Receivables,
including without limitation, all original orders, invoices and shipping receipts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.02<I>. Communications with Obligors: Grantors Remain Liable.</I>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;The Agent in its own name or in the name of others may after the occurrence and during the
continuance of an Event of Default communicate with obligors under the Receivables and parties to
the Contracts to verify with them to the Agent&#146;s satisfaction the existence, amount and terms of
any Receivables or Contracts. The Agent shall endeavor to provide the Issuer with notice at or
about the time of the exercise of its rights pursuant to the preceding sentence, <I>provided </I>that the
failure to provide such notice shall not in any way compromise or adversely affect the exercise of
any rights or remedies hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Upon the written request of the Agent at any time after the occurrence and during the
continuance of an Event of Default, each Grantor shall notify obligors on the Receivables and
parties to the Contracts that the Receivables and the Contracts, as the case may be, have been
assigned to the Agent for the ratable benefit of the Secured Parties and that payments in respect
thereof shall be made directly to the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
each of the Receivables and Contracts to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto. Neither the Agent nor any Secured Party shall have any obligation or liability
under any Receivable (or any agreement giving rise thereto) or Contract by reason of or arising out
of this Agreement or the receipt by the Agent or any Secured Party of any payment relating thereto,
nor shall the Agent or any Secured Party be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto) or Contract, to make any payment, to make any inquiry as to the nature or the sufficiency
of any payment received by it or as to the sufficiency of any performance by any party thereunder,
to present or file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to it or to which it may be entitled at any
time or times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.03<I>. Proceeds to Be Turned Over to Agent. </I>In addition to the rights of the Agent
and the Secured Parties specified in Section&nbsp;6.01 with respect to payments of Receivables, if an
Event of Default shall occur and be continuing, upon written request from the Agent, all Proceeds
received by any Grantor consisting of cash, checks and other near-cash items shall be held by such
Grantor in trust for the Agent and the Secured Parties, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Agent in the
exact form received by such Grantor (duly indorsed by such Grantor to the Agent, if requested). All
Proceeds received by the Agent hereunder shall be held by the Agent in a Collateral Account
maintained under its sole dominion and control. All such Proceeds while held by the Agent in a
Collateral Account (or by such Grantor in trust for the Agent and the Secured Parties) shall
continue to be
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">held as collateral security for all the Secured Obligations and shall not constitute payment
thereof until applied as provided in Section&nbsp;6.04.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.04<I>. Application of Proceeds. </I>If an Event of Default shall have occurred and be
continuing, at any time at the Agent&#146;s election, subject to any Collateral Agency Agreement, the
Agent may apply all or any part of the Collateral, whether or not held in the Deposit Accounts, the
Securities Accounts or any other Collateral Account, in payment of the Secured Obligations in the
order set forth in the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.05<I>. Code and Other Remedies. </I>If an Event of Default shall occur and be continuing,
the Agent, on behalf of the Secured Parties, may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under
the New York UCC or any other applicable law. Without limiting the generality of the foregoing, the
Agent, without prior demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any prior notice required by law referred to below) to or upon any
Grantor or any other Person (all and each of which demands, defenses, advertisements and notices
are hereby waived), may in such circumstances forthwith collect, receive, appropriate and realize
upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or
options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at
any exchange, broker&#146;s board or office of the Agent or any Secured Party or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem best, for cash or
on credit or for future delivery without assumption of any credit risk. The Agent shall endeavor to
provide the Issuer with notice at or about the time of the exercise of remedies in the proceeding
sentence, <I>provided </I>that the failure to provide such notice shall not in any way compromise or
adversely affect the exercise of such remedies or the Agent&#146;s rights hereunder. The Agent or any
Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Agent&#146;s request, to assemble the
Collateral and make it available to the Agent at places which the Agent shall reasonably select,
whether at such Grantor&#146;s premises or elsewhere. The Agent shall apply the net proceeds of any
action taken by it pursuant to this Section&nbsp;6.05, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or safekeeping of any of
the Collateral or in any way relating to the Collateral or the rights of the Agent and the Secured
Parties hereunder, including, without limitation, reasonable attorneys&#146; fees and disbursements, to
the payment in whole or in part of the Secured Obligations, in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">such order as the Agent may elect, and only after such application and after the payment by
the Agent of any other amount required by any provision of law, including, without limitation,
Section&nbsp;9-615(a)(3) of the New York UCC, need the Agent account for the surplus, if any, to any
Grantor. To the extent permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Agent or any Secured Party arising out of the exercise by them
of any rights hereunder. If any prior notice of a proposed sale or other disposition of Collateral
shall be required by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.06<I>. Subordination. </I>Each Grantor hereby agrees that, upon the occurrence and during
the continuance of an Event of Default, unless otherwise agreed by the Agent, all Indebtedness
owing to it by the Issuer or any Subsidiary of the Issuer shall be fully subordinated to the
indefeasible payment in full in cash of the Secured Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;6.07<I>. Deficiency. </I>Each Grantor shall remain liable for any deficiency if the
proceeds of any sale or other disposition of the Collateral are insufficient to pay the Secured
Obligations and the fees and disbursements of any attorneys employed by the Agent or any Secured
Party to collect such deficiency.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 7<BR>
<FONT style="font-variant: SMALL-CAPS">The Agent</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.01<I>. Agent&#146;s Appointment as Attorney-in-fact, Etc. </I>(a)&nbsp;Each Grantor hereby
irrevocably constitutes and appoints the Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of such Grantor and in the name of such Grantor or in its own name, for the
purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or desirable to accomplish the
purposes of this Agreement, and, without limiting the generality of the foregoing, each Grantor
hereby gives the Agent the power and right, on behalf of such Grantor, without prior notice to or
assent by such Grantor, to do any or all of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i)&nbsp;in the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable or Contract or with respect to any other
Collateral and file any claim or take any other action or proceeding in any court of law
or equity or otherwise deemed appropriate by the Agent for the purpose of collecting any
and all such moneys due under any Receivable or Contract or with respect to any other
Collateral whenever payable;
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(ii)&nbsp;in the case of any Intellectual Property, execute and deliver, and have
recorded, any and all agreements, instruments, documents and papers as the Agent may
request to evidence the Agent&#146;s and the Secured Parties&#146; security interest in such
Intellectual Property and the goodwill and General Intangibles of such Grantors relating
thereto or represented thereby;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iii)&nbsp;pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or any insurance called for by the terms of this Agreement
and pay all or any part of the premiums therefor and the costs thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(iv)&nbsp;execute, in connection with any sale provided for in Section&nbsp;6.05, any
endorsements, assignments or other instruments of conveyance or transfer with respect to
the Collateral; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(v) (A)&nbsp;direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Agent or as
the Agent shall direct; (B)&nbsp;ask or demand for, collect, and receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any time in
respect of or arising out of any Collateral; (C)&nbsp;sign and indorse any invoices, freight or
express bills, bills of lading, storage or warehouse receipts, drafts against debtors,
assignments, verifications, notices and other documents in connection with any of the
Collateral; (D)&nbsp;commence and prosecute any suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect the Collateral or any portion
thereof and to enforce any other right in respect of any Collateral; (E)&nbsp;defend any suit,
action or proceeding brought against such Grantor with respect to any Collateral; (F)
settle, compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Agent may deem appropriate; (G)&nbsp;assign
any Copyright, Patent or Trademark (along with the goodwill of the business to which any
such Copyright, Patent or Trademark pertains), through the world for such term or terms,
on such conditions, in such manner, as the Agent shall in its sole discretion determine;
and (H)&nbsp;generally, sell, transfer, pledge and make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the Agent were
the absolute owner thereof for all purposes, and do, at the Agent&#146;s option and such
Grantor&#146;s expense, at any time, or from time to time, all acts and things which the Agent
deems necessary to protect, preserve or realize upon the Collateral and the Agent&#146;s and
the Secured Parties&#146; security interests therein and to effect the intent of this
Agreement, all as fully and effectively as such Grantor might do.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Agent shall endeavor to provide the Issuer with notice at or about the time of the
exercise of its rights in the preceding clause (a), <I>provided </I>that the failure to provide such
notice shall not in any way compromise or adversely affect the exercise of any rights or remedies
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;If any Grantor fails to perform or comply with any of its agreements contained herein, the
Agent, at its option, but without any obligation so to do, may perform or comply, or otherwise
cause performance or compliance, with such agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;The expenses of the Agent incurred in connection with actions undertaken as provided in
this Section&nbsp;7.01, together with, if past due, interest thereon at a rate per annum equal to the
interest rate on the Secured Notes, from the date when due to the Agent to the date reimbursed by
the relevant Grantor, shall be payable by such Grantor to the Agent upon not less than five (5)
Business Days notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;Each Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.02<I>. Duty of Agent. </I>The Agent&#146;s sole duty with respect to the custody, safekeeping
and physical preservation of the Collateral in its possession, under Section&nbsp;9-207 of the New York
UCC or otherwise, shall be to deal with it in the same manner as the Agent deals with similar
property for its own account. Neither the Agent, any Secured Party nor any of their respective
officers, directors, employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take
any other action whatsoever with regard to the Collateral or any part thereof. The powers conferred
on the Agent and the Secured Parties hereunder are solely to protect the Agent&#146;s and the Secured
Parties&#146; interests in the Collateral and shall not impose any duty upon the Agent or any Secured
Party to exercise any such powers. The Agent and the Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers, and neither they nor
any of their officers, directors, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful misconduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.03<I>. Execution of Financing Statements. </I>Pursuant to any applicable law, each
Grantor authorizes the Agent to file or record financing statements and other filing or recording
documents or instruments with respect to the Collateral without the signature of such Grantor in
such form and in such offices is required by applicable law to perfect the security interests of
the Agent
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">under this Agreement. Each Grantor authorizes the Agent to use the collateral description &#147;all
personal property&#148; or &#147;all assets&#148; in any such financing statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;7.04<I>. Authority of Agent. </I>Each Grantor acknowledges that the rights and
responsibilities of the Agent under this Agreement with respect to any action taken by the Agent or
the exercise or non-exercise by the Agent of any option, voting right, request, judgment or other
right or remedy provided for herein or resulting or arising out of this Agreement shall, as between
the Agent and the Secured Parties, be governed by the Indenture and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the Agent and the
Grantors, the Agent shall be conclusively presumed to be acting as agent for the Secured Parties
with full and valid authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">ARTICLE 8<BR>
<FONT style="font-variant: SMALL-CAPS">Miscellaneous</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.01<I>. Amendments in Writing. </I>None of the terms or provisions of this Agreement may
be waived, amended, supplemented or otherwise modified except in accordance with the Indenture.
For the avoidance of doubt, the Issuer and the Agent may, without the need to obtain the consent of
the Noteholders, amend, supplement or otherwise modify any provision hereof or of any other
Noteholder Collateral Document (including by entering into any Collateral Agency Agreement or any
other new or supplemental agreements) to reflect and give effect to the matters referred to in the
definition of Collateral Agency Agreement in connection with the incurrence of Additional Secured
Obligations and the granting of Additional Pari Passu Liens, to the extent such incurrence or grant
is permitted by, and in accordance with, the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.02<I>. Notices. </I>All notices, requests and demands to or upon the Agent or any Grantor
hereunder shall be effected in the manner provided for in Section &#091;13.03&#093; the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.03<I>. No Waiver by Course of Conduct; Cumulative Remedies. </I>Neither the Agent nor any
Secured Party shall by any act (except by a written instrument pursuant to Section&nbsp;8.01), delay,
indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. No failure to exercise, nor any delay in exercising,
on the part of the Agent or any Secured Party, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Agent or any Secured Party of any right or remedy hereunder on
any one
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">occasion shall not be construed as a bar to any right or remedy which the Agent or such
Secured Party would otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights
or remedies provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.04<I>. Enforcement Expenses; Indemnification. </I>(a)&nbsp;Each Grantor agrees to pay or
reimburse each Secured Party and the Agent for all its costs and expenses incurred in enforcing or
preserving any rights under this Agreement and the other Noteholder Documents to which such Grantor
is a party, including, without limitation, the reasonable fees and disbursements of counsel
(including the allocated fees and expenses of in-house counsel) to the Agent and the Secured
Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Each Grantor agrees to pay, and to save the Agent and the Secured Parties harmless from,
any and all liabilities with respect to, or resulting from any delay in paying, any and all stamp,
excise, sales or other taxes which may be payable or determined to be payable with respect to any
of the Collateral or in connection with any of the transactions contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Each Grantor agrees to pay, and to save the Agent and the Secured Parties harmless from,
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the Issuer would be
required to do so pursuant to Section&nbsp;7.07 of the Indenture except those resulting from the Agent&#146;s
or any Secured Party&#146;s willful misconduct or gross negligence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;The agreements in this Section&nbsp;8.04 shall survive repayment of the Secured Obligations and
termination of the Noteholder Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.05<I>. Successors and Assigns. </I>This Agreement shall be binding upon the successors
and assigns of each Grantor and shall inure to the benefit of the Agent and the Secured Parties and
their successors and assigns; <I>provided </I>that except as permitted by the Indenture, no Grantor may
assign, transfer or delegate any of its rights or obligations under this Agreement without the
prior written consent of the Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.06<I>. Set-off. </I>Each Grantor hereby irrevocably authorizes the Agent and each other
Secured Party at any time and from time to time while an Event of Default has occurred and is
continuing, without notice to such Grantor or any other Grantor, any such notice being expressly
waived by each Grantor, to set-off and appropriate and apply any and all deposits (general or
special, time or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">contingent, matured or unmatured, at any time held or owing by the Agent or such other Secured
Party to or for the credit or the account of such Grantor, or any part thereof in such amounts as
the Agent or such other Secured Party may elect, against and on account of the obligations and
liabilities of such Grantor to the Agent or such other Secured Party hereunder and claims of every
nature and description of the Agent or such other Secured Party against such Grantor, in any
currency, whether arising hereunder, under the Indenture or any other Noteholder Document, as the
Agent or such other Secured Party may elect, whether or not the Agent or any other Secured Party
has made any demand for payment and although such obligations, liabilities and claims may be
contingent or unmatured. The Agent and each other Secured Party shall endeavor to notify the Issuer
promptly of any such set-off and the application made by the Agent or such other Secured Party of
the proceeds thereof, <I>provided </I>that the failure to give such notice shall not affect the validity
of such set-off and application. The rights of the Agent and each other Secured Party under this
Section&nbsp;8.06 are in addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Agent or such other Secured Party may have.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.07<I>. Counterparts. </I>This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.08<I>. Severability. </I>Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.09<I>. Section&nbsp;Headings. </I>The Section headings used in this Agreement are for
convenience of reference only and are not to affect the construction hereof or be taken into
consideration in the interpretation hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.10<I>. Integration. </I>This Agreement and the other Noteholder Documents represent the
agreement of the Grantors, the Agent and the Secured Parties with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or warranties by the
Agent or any Secured Parties relative to subject matter hereof and thereof not expressly set forth
or referred to herein or in the other Noteholder Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.11<I>. Governing Law. </I>THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.12<I>. Submission to Jurisdiction; Waivers. </I>Each Grantor hereby irrevocably and
unconditionally:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Noteholder Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Grantor at its address referred to in Section&nbsp;8.02 or at such other address of
which the Agent shall have been notified pursuant thereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(e)&nbsp;waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.13<I>. Acknowledgements. </I>Each Grantor hereby acknowledges that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(a)&nbsp;it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Noteholder Documents to which it is a party;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;neither the Agent nor any Secured Party has any fiduciary relationship with or duty to any
Grantor arising out of or in connection with this Agreement or any of the other Noteholder
Documents, and the relationship between the Grantors, on the one hand, and the Agent and Secured
Parties, on the other hand, in connection herewith or therewith is solely that of debtor and
creditor; and
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;no joint venture is created hereby or by the other Noteholder Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Secured Parties or among the
Grantors and the Secured Parties;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(d)&nbsp;the Agent may at any time and from time to time appoint a collateral agent to maintain any
of the Collateral, maintain books and records regarding any Collateral, release Collateral, and
assist in any aspect arising in connection with the Collateral as Agent may desire; and the Agent
may appoint itself, any affiliate or a third party as the Collateral Agent, and all reasonable
costs of the Collateral Agent shall be borne by the Grantors;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.14<I>. Additional Grantors. </I>Each Restricted Subsidiary of Hovnanian shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of a
Joinder Agreement, substantially in the form of Exhibit&nbsp;B hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.15<I>. Releases. </I>(a)&nbsp;Upon the indefeasible payment in full of all outstanding Secured
Obligations, the Collateral shall be automatically released from the Liens created hereby, and this
Agreement and all obligations (other than those expressly stated to survive such termination) of
the Agent and each Grantor hereunder shall automatically terminate, all without delivery of any
instrument or performance of any act by any party, and all rights to the Collateral shall revert to
the Grantors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;All or a portion of the Collateral shall be released from the Liens created hereby, and a
Grantor may be released from its obligations hereunder, in each case pursuant to and as provided in
Section &#091;11.04&#093; of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.16<I>. Waiver of Jury Trial. </I>EACH GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
NOTEHOLDER DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.17<I>. Control Agreements. </I>In connection with each agreement made at any time
pursuant to Sections&nbsp;9-104 or 8-106 of the Uniform Commercial Code among the Agent, any one or more
Grantors, and any depository financial institution or issuer of uncertificated mutual fund shares
or other uncertificated securities and any other Person party thereto, the Agent shall not deliver
to any such depository or issuer, instructions directing the disposition of the deposit or
uncertificated fund shares or other securities unless an Event of Default has occurred and is
continuing at such time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Section&nbsp;8.18<I>. Agent Privileges, Powers and Immunities. </I>In the performance of its
obligations, powers and rights hereunder, the Agent shall be
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">entitled to the privileges, powers and immunities afforded to it as Collateral Agent under the
Indenture. The Agent shall be entitled to refuse to take or refrain from taking any discretionary
action or exercise any discretionary powers set forth in this Agreement unless it has received with
respect thereto written direction of the Issuer or a majority of Noteholders in accordance with the
Indenture. Notwithstanding anything to the contrary contained herein, the Agent shall have no
responsibility for the creation, perfection, priority, sufficiency or protection of any liens
securing Secured Obligations (including, but not limited to, no obligation to prepare, record,
file, re-record or re-file any financing statement, continuation statement or other instrument in
any public office).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>&#091;REMAINDER OF PAGE LEFT BLANK INTENTIONALLY&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, each of the undersigned has caused this Security Agreement to be duly
executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Secured Party:<BR>
<BR>
WILMINGTON TRUST COMPANY, as<BR>
Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Patrick J. Healy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patrick J. Healy&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">K. HOVNANIAN ENTERPRISES, INC., as Issuer<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveeda&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">HOVNANIAN ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveeda&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">On behalf of each of the entities listed on<BR>
Schedule&nbsp;A hereto<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ David G. Valiaveedan
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David G. Valiaveedan&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE A &#151; LIST OF ENTITIES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Auddie Enterprises, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Builder Services NJ, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Builder Services NY, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Builder Services PA, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Dulles Coppermine, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">EASTERN TITLE AGENCY, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">F&#038;W MECHANICAL SERVICES, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Founders Title Agency of Maryland, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">FOUNDERS TITLE AGENCY, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Governor&#146;s Abstract Co., Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Homebuyers Financial Services, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of California, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of Georgia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of Maryland, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of New Jersey, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of North Carolina, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of Pennsylvania, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of Texas LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group of Virginia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Hovnanian Land Investment Group, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. H. San Marcos Conservancy Holdings, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOV INTERNATIONAL, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOV IP, II, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOV IP, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Acquisitions, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at 4S, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Acqua Vista, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Aliso, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Allenberry, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Allentown, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Almond Estates, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Arbor Heights, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT AVENUE ONE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bakersfield 463, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Barnegat I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Barnegat II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bella Lago, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Berkeley, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bernards IV, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bernards V, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Blue Heron Pines, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT BRANCHBURG III, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bridgeport, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bridgewater I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Bridgewater VI, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Broad and Walnut, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Burlington III, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT BURLINGTON, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Calabria, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Camden I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cameron Chase, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT CAMP HILL, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT CAPISTRANO, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Carmel Del Mar, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Carmel Village, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Castile, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cedar Grove III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cedar Grove IV, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Chaparral, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Charter Way, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Chester I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Chesterfield, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cielo, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT CLARKSTOWN, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Clifton II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Clifton, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Coastline, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cortez Hill, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Cranbury, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Crestline, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Curries Woods, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Denville, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Deptford Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Dominguez Hills, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Dover, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at East Brandywine, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian At East Whiteland I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Eastlake, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Edgewater II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Edgewater, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Egg Harbor Township II, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Egg Harbor Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at El Dorado Ranch II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at El Dorado Ranch, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Elk Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Encinitas Ranch, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Evergreen, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Ewing, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Fiddyment Ranch, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Fifth Avenue, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Florence I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Florence II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Forest Meadows, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT FORKS TWP. I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Franklin, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Freehold Township I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Freehold Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Fresno, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Galloway, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT GASLAMP SQUARE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Great Notch, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Gridley, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Guttenberg, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hackettstown II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hackettstown, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hamburg Contractors, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hamburg, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hawthorne, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hazlet, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hershey&#146;s Mill, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT HIGHLAND SHORES, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Highland Vineyards, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hilltop, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hopewell IV, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Hopewell VI, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Howell Township, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT HUDSON POINTE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Jackson I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Jackson, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Jaeger Ranch, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Jersey City IV, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Jersey City V Urban Renewal Company, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Keyport, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at King Farm, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Kings Grant I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at La Costa Greens, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at La Costa, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at La Habra Knolls, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at La Laguna, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at La Terraza, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian At Lafayette Estates, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lake Rancho Viejo, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lake Ridge Crossing, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lake Terrapin, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lakewood, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Landmark, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at LaPaz, LLC

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Larkspur, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lawrence V, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lee Square, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Linwood, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Little Egg Harbor Contractors, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Little Egg Harbor III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Little Egg Harbor Township II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Little Egg Harbor, L.L.C

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Live Oak II, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Long Branch I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Macungie Township I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Macungie Township II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Makefield Township I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Moreland I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Moreland II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Moreland III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Lower Saucon, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Macungie, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT MAHWAH II, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mahwah VI, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mahwah VII, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Malan Park, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Manalapan III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Manalapan, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mansfield I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mansfield II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mansfield III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Maple Avenue, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro II, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro Township III, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro Township IV, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro Township IX, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro Township V, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro Township VIII, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro VI, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Marlboro VII, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Matsu, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Melanie Meadows, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mendham Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Menifee, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Middle Township II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Middle Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Middletown II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Middletown, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Millville I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Millville II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT MONROE II, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Monroe III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Monroe IV, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Monroe NJ, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Montgomery I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Montvale, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mosaic, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Mt. Olive Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Muirfield, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT NEW BRUNSWICK URBAN RENEWAL, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at New Windsor, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Bergen. L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Caldwell II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Caldwell III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Caldwell, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Haledon, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at North Wildwood, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Northampton. L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT NORTHERN WESTCHESTER, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Northfield, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Northlake, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Ocean Township, Inc

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT OCEAN WALK, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Oceanport, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Old Bridge, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Olde Orchard, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Pacific Bluffs, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Paramus, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Park Lane, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Parkside, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Parsippany-Troy Hills, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Perkiomen I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Perkiomen II, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Philadelphia II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Philadelphia III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Philadelphia IV, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Piazza D&#146;Oro, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Piazza Serena, L.L.C

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Pittsgrove, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Prado, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Rancho Cristianitos, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Rancho Santa Margarita, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Randolph I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT RAPHO, L.L.C

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Readington II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Red Bank, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Reservoir Ridge, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Ridgemont, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Ridgestone, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Riverbend, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Rivercrest, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Roderuck, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Rowland Heights, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sage, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at San Sevaine, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Santa Nella, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Saratoga, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sawmill, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sayreville, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT SCOTCH PLAINS II, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Scotch Plains, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sierra Estates, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Silver Spring, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Skye Isle, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Smithville III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Smithville, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Somers Point, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at South Brunswick V, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at South Brunswick, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sparta, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT SPRINGCO, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Stone Canyon, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT STONY POINT, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sunsets, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Sycamore, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Tannery Hill, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Teaneck, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at The Bluff, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at The Crosby, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at The Gables, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at The Monarch, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at The Preserve, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Thompson Ranch, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Thornbury, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Tierrasanta, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Trail Ridge, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Trenton, L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Trovata, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Union Township I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Union Township II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Freehold Township I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Freehold Township II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Freehold Township III, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Makefield I, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Uwchlan II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Upper Uwchlan, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Vail Ranch, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Valle Del Sol, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Victorville, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT VINELAND, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Vista Del Sol, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wall Township VI, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wall Township VIII, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wanaque, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Warren Township, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Washington, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT WASHINGTONVILLE, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wayne III, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wayne IX, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wayne V, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT WAYNE, VIII, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at West Bradford, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at West Milford, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at West View Estates, L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at West Windsor, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Westshore, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wheeler Ranch, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wildrose, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Wildwood Bayside, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Willow Brook, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN AT WINCHESTER, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Woodcreek West, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Woodhill Estates, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian at Woolwich I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Cambridge Homes, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Classics CIP, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Classics, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Communities, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies Metro D.C. North, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies Northeast, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies of California, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN COMPANIES OF MARYLAND, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN COMPANIES OF NEW YORK, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies of Pennsylvania, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies of Southern California, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies of Virginia, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Companies, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Connecticut Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K.
Hovnanian Construction II, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K.
Hovnanian Construction III, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Construction Management, Inc.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian CraftBuilt Homes of South Carolina, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Delaware Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of California, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Connecticut, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN DEVELOPMENTS OF D.C., INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Georgia, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Illinois, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Indiana, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Kentucky, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Michigan, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Minnesota, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of New Jersey II, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of New Jersey, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of North Carolina, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Ohio, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Pennsylvania, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of South Carolina, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Texas, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of Virginia, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Developments of West Virginia, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Eastern Pennsylvania, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN FIRST HOMES, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Florida Realty, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Forecast Homes Northern, Inc.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Four Seasons @ Historic Virginia, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Four Seasons at Gold Hill, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN GREAT WESTERN BUILDING COMPANY, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN GREAT WESTERN HOMES, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Holdings NJ, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes &#151; DFW, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Cameron Station, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Camp Springs, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Fairwood, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Forest Run, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Greenway Farm Park Towns, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Greenway Farm, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Jones Station 1, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Jones Station 2, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Maxwell Place, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN HOMES AT PAYNE STREET, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Primera, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Renaissance Plaza, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes at Russett, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of D.C., L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN HOMES OF DELAWARE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Georgia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Houston, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Indiana, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Maryland, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Minnesota, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN HOMES OF NORTH CAROLINA, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of South Carolina, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of Virginia, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Homes of West Virginia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian North Central Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian North Jersey Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Northeast Services, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian of Houston II, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Ohio Realty, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN OSTER HOMES, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian PA Real Estate, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Pennsylvania Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Port Imperial Urban Renewal, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Properties of Red Bank, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Shore Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian South Jersey Acquisitions, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Southern New Jersey, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN STANDING ENTITY, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Holdings, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Homes of Kentucky, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Homes of Michigan, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Homes of Pennsylvania, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Homes of West Virginia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Summit Homes, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian T&#038;C Homes at Florida, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian T&#038;C Homes at Illinois, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian T&#038;C Homes at Minnesota, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN T&#038;C INVESTMENT, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian T&#038;C Management Co., L.L.C.

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian Venture I, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN WINDWARD HOMES, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Ashburn Village, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Bailey&#146;s Glenn, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN&#146;S FOUR SEASONS AT BAKERSFIELD, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Beaumont, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN&#146;S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Dulles Discovery Condominium, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Dulles Discovery, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Hamptonburgh, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Hemet, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Huntfield, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Kent Island Condominiums, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Kent Island, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Los Banos, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Moreno Valley, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at New Kent Vineyards, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Palm Springs, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. HOVNANIAN&#146;S FOUR SEASONS AT RENAISSANCE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Rush Creek, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at St. Margarets Landing, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Vint Hill, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons at Westshore, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Four Seasons, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Parkside at Towngate, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">K. Hovnanian&#146;s Private Home Portfolio, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">KHIP, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">LANDARAMA, INC.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M &#038; M
at Long Branch, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at Chesterfield, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT Copper Beech, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT Crescent Court, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at East Rutherford, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT MORRISTOWN, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT SPINNAKER POINTE, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT SPRUCE HOLLOW, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT SPRUCE RUN, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at Station Square, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at Tamarack Hollow, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M AT UNION, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at West Orange, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M at Wheatena Urban Renewal, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">M&#038;M INVESTMENTS, L.P.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Matzel &#038; Mumford at Egg Harbor, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">MATZEL &#038; MUMFORD AT MONTGOMERY, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Matzel &#038; Mumford at South Bound Brook Urban Renewal, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">MCNJ, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Midwest Building Products &#038; Contractor Services of Kentucky, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Midwest Building Products &#038; Contractor Services of Michigan, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Midwest Building Products &#038; Contractor Services of Pennsylvania, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Midwest Building Products &#038; Contractor Services of West Virginia, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">MIDWEST BUILDING PRODUCTS &#038; CONTRACTOR SERVICES, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">MMIP, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Natomas Central Neighborhood Housing, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">New Land Title Agency, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">PADDOCKS, L.L.C.

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">PARK TITLE COMPANY, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Pine Ayr, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">RIDGEMORE UTILITY ASSOCIATES OF PENNSYLVANIA, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Ridgemore Utility, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">SEABROOK ACCUMULATION CORPORATION

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">STONEBROOK HOMES, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Terrapin Realty, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">The Matzel
&#038; Mumford Organization, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Washington Homes at Columbia Town Center, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Washington Homes, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Westminster Homes of Alabama, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Westminster Homes of Mississippi, LLC

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Westminster Homes of Tennessee, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">WESTMINSTER HOMES, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">WH LAND I,
INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">WH PROPERTIES, INC.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">WH/PR Land Company, L.L.C.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Woodland Lake Condominiums at Bowie New Town, L.L.C.

</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE B</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><U><B>COMMERCIAL TORT CLAIMS</B></U>

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE C</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><U><B>FORM OF PERFECTION CERTIFICATE</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The undersigned is a duly authorized officer of each of the entities listed on <U>Schedule
1</U> hereto (each such entity, a &#147;<B>Grantor</B>&#148;). With reference to the Security Agreement dated as of
October&nbsp;20, 2009 among <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, the Guarantors party thereto and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, as
Collateral Agent (terms defined therein being used herein as therein defined), each of the
undersigned certifies to the Collateral Agent and each other Secured Party as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;<I>Names</I>. The exact legal name of each of Grantor (as it appears in each respective
certificate or articles of incorporation, limited liability membership agreement or similar
organizational documents), the type of organization, the jurisdiction of organization (or
formation, as applicable) and the organizational identification number for each Grantor is set
forth in <U>Schedule&nbsp;1 </U>hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;<I>Lien Search Guarantors</I>. (a)&nbsp;Set forth on Schedule 2(a) is the name of each Grantor selected
for lien searches (the &#147;<B>Lien Search Grantors</B>&#148;) and the county in which each Lien Search Grantor&#146;s
chief executive office is located, if such office is not located at <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;Set forth in <U>Schedule&nbsp;2(b)</U> hereto is each other corporate name (including trade
names or similar appellations) each Lien Search Grantor has had in the last five years, together
with the date of the relevant change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(c)&nbsp;Except as set forth in <U>Schedule&nbsp;2(c)</U> hereto, no Lien Search Grantor has changed
its identity or corporate structure in any way within the past five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">3.&nbsp;<I>UCC Filings</I>. In order to perfect the Liens granted by the Grantor, a duly completed
financing statement on Form UCC-1, with the collateral described as set forth on <U>Schedule&nbsp;3</U>
hereto, has been delivered to the Collateral Agent for filing in the Uniform Commercial Code filing
office in each jurisdiction identified in paragraph 1 above, as applicable.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, I have hereunto set my hand this
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> day of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
2009.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&#091;Name of Grantor&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>SCHEDULE D</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ACTIONS REQUIRED TO PERFECT</B></U>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Alabama as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Alabama Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Arizona as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Arizona Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of California as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the California Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Connecticut as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral the Connecticut Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Delaware as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Delaware Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the District of Columbia as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the District of Columbia Recorder of
Deeds.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Florida as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Florida Secured Transaction
Registry.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Georgia as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Office of the Clerk of Superior
Court of any County of Georgia.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Illinois as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Illinois</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Indiana as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Indiana Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Kentucky as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Kentucky Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Maryland as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Maryland State Department of
Assessments and Taxation.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Michigan as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Michigan Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Minnesota as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Minnesota Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Mississippi as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Mississippi Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of New Jersey as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the New Jersey Division of Commercial
Recording.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of New York as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the New York Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of North Carolina as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the North Carolina Secretary of
State.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Ohio as identified
on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing Statement
that reasonably identifies the Collateral with the Ohio Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Pennsylvania as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Pennsylvania Secretary of the
Commonwealth.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of South Carolina as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the South Carolina Secretary of
State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Tennessee as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Tennessee Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Texas as identified
on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing Statement
that reasonably identifies the Collateral with the Texas Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of Virginia as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the Virginia State Corporation
Commission.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Loan Party organized under the laws of the state of West Virginia as
identified on Schedule&nbsp;D of this Agreement, the filing of a Uniform Commercial Code Financing
Statement that reasonably identifies the Collateral with the West Virginia Secretary of State.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to the Securities Accounts and the Deposit Accounts (other than the Excluded
Accounts), the bank with which such Securities Account and such Deposit Account are maintained
agreeing that it will comply with instructions originated by the Perfection Agent directing
disposition of the funds in such Securities Account and such Deposit Account without further
consent of the relevant Grantor; provided that the Grantors shall not be required to deliver
any such agreements on the Issue Date, but will deliver such agreements as soon as
commercially reasonable thereafter, but in no event later than 90&nbsp;days following the Issue
Date.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to each Grantor that owns registered or applied for Intellectual Property, the
filing of an Intellectual Property Security Agreement that reasonably identifies such
Grantor&#146;s registered and applied for Trademarks, Patents and Copyrights with</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">the United States Patent and Trademark Office or the United States Copyright Office, as
applicable.
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>Form of Intellectual Property Security Agreement</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>INTELLECTUAL PROPERTY SECURITY AGREEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Intellectual Property Security Agreement (the &#147;<B>Agreement</B>&#148;), dated as of October&nbsp;20, 2009
is made by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a California corporation (&#147;the <B>Grantor</B>&#148;) in favor of Wilmington Trust
Company, as Collateral Agent (in such capacity, the &#147;<B>Agent</B>&#148;) for the benefit of itself, the Trustee
(as defined below) and the Noteholders (as defined below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, K. Hovnanian Enterprises, Inc., a California corporation (the &#147;<B>Borrower</B>&#148;), Hovnanian
Enterprises, Inc. (&#147;<B>Hovnanian</B>&#148;) and each of the other Guarantors party thereto entered into the
indenture dated as of May&nbsp;27, 2008, as amended, supplemented, amended and restated or otherwise
modified from time to time, with Wilmington Trust Company (as successor to Deutsche Bank National
Trust Company) as trustee pursuant to which the Issuer issued 11 1/2 % Senior Secured Notes due
2013;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian and each of the other Guarantors party thereto have entered
into the indenture dated as of December&nbsp;3, 2008, as amended, supplemented, amended and restated or
otherwise modified from time to time, with Wilmington Trust Company as trustee pursuant to which
the Issuer issued 18.0% Senior Secured Notes due 2017;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian and each of the other Guarantors have entered into the
Indenture dated as of October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the &#147;<B>Indenture</B>&#148;) with Wilmington Trust Company, a Delaware banking
corporation, as trustee (in such capacity, the &#147;<B>Trustee</B>&#148;), pursuant to which the Issuer (as defined
in the Indenture) issued 10 5/8% Senior Secured Notes due 2016 (collectively, the &#147;<B>Secured Notes</B>&#148;)
upon the terms and subject to the conditions set forth therein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and Wilmington Trust Company, as Mortgage Tax
Collateral Agent have entered into the Intercreditor Agreement dated as of May&nbsp;27, 2008 (the &#147;<B>May
2008 Intercreditor Agreement</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and First-Lien Administrative Agent, the Senior
Trustee, the Senior Noteholder Collateral Agent, the Junior Trustee, the Junior Agent and
Wilmington Trust
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Company, as Mortgage Tax Collateral Agent have entered into the Intercreditor Agreement dated
as of December&nbsp;3, 2008, as amended, supplemented, amended or restated or otherwise modified from
time to time (together with the May&nbsp;2008 Intercreditor Agreement, the &#147;<B>Intercreditor Agreements</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Secured Notes constitute First Lien Indebtedness under each of the Intercreditor
Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower is a member of an affiliated group of companies that includes Hovnanian,
the Borrower&#146;s parent company, and each other Guarantor;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower and the other Guarantors are engaged in related businesses, and each
Guarantor will derive substantial direct and indirect benefit from the issuance of the Secured
Notes;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, pursuant to and under the Indenture and the First Lien Security Agreement dated as of
October&nbsp;20, 2009 (the &#147;<B>Security Agreement</B>&#148;) among the Borrower, Hovnanian, each of the signatories
listed on Schedule&nbsp;A thereto (together with any other entity that may become a party thereto) and
the Agent, the Grantor has agreed to enter into this Agreement in order to grant a security
interest to the Agent in certain Patents, Trademarks, Copyrights and other Intellectual Property as
security for such loans and other obligations as more fully described herein; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;Defined Terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;Except as otherwise expressly provided herein, (i)&nbsp;capitalized terms used in this
Agreement shall have the respective meanings assigned to them in the Security Agreement
and (ii)&nbsp;the rules of construction set forth in Section&nbsp;1.02 of the Indenture shall apply
to this Agreement. Where applicable and except as otherwise expressly provided herein,
terms used herein (whether or not capitalized) shall have the respective meanings assigned
to them in the Uniform Commercial Code as enacted in New York as amended from time to time
(the &#147;<B>Code</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) &#147;<B>Copyright Licenses</B>&#148; shall mean any written agreement naming any Grantor as
licensor or licensee, granting any right under any Copyright, including, without
limitation, the grant of rights to distribute, exploit and sell materials derived from any
Copyright, including, without limitation, any of the foregoing referred to in Schedule&nbsp;A.
</DIV>
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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) &#147;<B>Copyrights</B>&#148; shall mean (i)&nbsp;all copyrights arising under the laws of the United
States, any other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, all registrations and recordings
thereof, and all applications in connection therewith, including, without limitation, all
registrations, recordings and applications in the United States Copyright Office referred
to in Schedule&nbsp;A, and (ii)&nbsp;the right to obtain all renewals thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) &#147;<B>Intellectual Property</B>&#148; shall mean the collective reference to all rights,
priorities and privileges, whether arising under United States, multinational or foreign
laws, in, to and under the Copyrights, the Copyright Licenses, the Patents, the Patent
Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) &#147;<B>Patent License</B>&#148; shall mean all written agreements providing for the grant by or
to any Grantor of any right to manufacture, use or sell any invention covered in whole or
in part by a Patent, including, without limitation, any of the foregoing referred to in
Schedule&nbsp;A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) &#147;<B>Patents</B>&#148; shall mean (i)&nbsp;all letters patent of the United States, any other
country or any political subdivision thereof, all reissues and extensions thereof,
including, without limitation, any of the foregoing referred to in Schedule&nbsp;A, (ii)&nbsp;all
applications for letters patent of the United States or any other country and all
divisions, continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule&nbsp;A, and (iii)&nbsp;all rights to obtain any
reissues or extensions of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) &#147;<B>Secured Obligations</B>&#148; shall mean all now existing and hereafter arising
Obligations (as defined in the Indenture) of the Borrower and each and every other
Grantor, together with any extensions, renewals, replacements or refundings thereof, and
all costs and expenses of enforcement and collection, including reasonable attorney&#146;s
fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) &#147;<B>Secured Parties</B>&#148; shall mean the collective reference to the Agent, the Trustee
and the Noteholders, in each case to which any Secured Obligations are owed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i) &#147;<B>Trademarks</B>&#148; shall mean (i)&nbsp;all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks, logos and
other source or business identifiers, and all goodwill associated therewith, now owned or
hereafter
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other country or
any political subdivision thereof, and all common-law rights related thereto, including,
without limitation, any of the foregoing referred to in Schedule&nbsp;A, and (ii)&nbsp;the right to
obtain all renewals thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(j) &#147;<B>Trademark License</B>&#148; shall mean any written agreement providing for the grant by
or to any Grantor of any right to use any Trademark, including, without limitation, any of
the foregoing referred to in Schedule&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;To secure the full payment and performance of all Secured Obligations, the Grantor hereby
grants to the Agent a security interest in the entire right, title and interest of such Grantor in
and to all of its Intellectual Property; provided, however, that notwithstanding any of the other
provisions set forth in this Section&nbsp;2 (and notwithstanding any recording of the Agent&#146;s Lien made
in the U.S. Patent and Trademark Office, U.S. Copyright Office, or other registry office in any
other jurisdiction), this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by any applicable Law
of an Official Body, requires a consent not obtained of any Official Body pursuant to such Law or
is prohibited by, or constitutes a breach or default under or results in the termination of or
gives rise to any right of acceleration, modification or cancellation or requires any consent not
obtained under, any contract, license, agreement, instrument or other document evidencing or giving
rise to such property, except to the extent that such Law or the term in such contract, license,
agreement, instrument or other document or similar agreement providing for such prohibition,
breach, default or termination or requiring such consent is ineffective under applicable Law
including 9-406, 9-407, 9-408 or 9-409 of the New York UCC (or any successor provision or
provisions); <I>provided, further</I>, that no security interest shall be granted in any United States
&#147;intent-to-use&#148; trademark or service mark applications unless and until acceptable evidence of use
of the trademark or service mark has been filed with and accepted by the U.S. Patent and Trademark
Office pursuant to Section 1(c) or Section 1(d) of the Lanham Act (U.S.C. 1051, et seq.), and to
the extent that, and solely during the period in which, the grant of a security interest therein
would impair the validity or enforceability of such &#147;intent-to-use&#148; trademark or service mark
applications under applicable federal Law. After such period and after such evidence of use has
been filed and accepted, the Grantor acknowledges that such interest in such trademark or service
mark applications will become part of the Collateral. The Agent agrees that, at the Grantor&#146;s
reasonable request and expense, it will provide such Grantor confirmation that the assets described
in this paragraph are in fact excluded from
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">the Collateral during such limited period only upon receipt of an Officer&#146;s Certificate or an
Opinion of Counsel to that effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">3.&nbsp;The Grantor covenants and warrants that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;To the knowledge of the Grantor, on the date hereof, all material Intellectual
Property owned by the Grantor is valid, subsisting and unexpired, has not been abandoned
and does not, to the knowledge of the Grantor, infringe the intellectual property rights
of any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;The Grantor is the owner of each item of Intellectual Property listed on Schedule
A, free and clear of any and all Liens or claims of others except for the Permitted Liens.
No financing statement or other public notice with respect to all or any part of the
Collateral is on file or of record in any public office, except as permitted pursuant to
this Agreement or as permitted by the Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.&nbsp;The Grantor agrees that, until all of the Secured Obligations shall have been indefeasibly
satisfied in full, it will not enter into any agreement (for example, a license agreement) which is
inconsistent with Grantor&#146;s obligations under this Agreement, without Agent&#146;s prior written consent
which shall not be unreasonably withheld except Grantor may license technology in the ordinary
course of business without the Agent&#146;s consent to suppliers and customers to facilitate the
manufacture and use of such Grantor&#146;s products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">5.&nbsp;Agent shall have, in addition to all other rights and remedies given it by this Agreement
and those rights and remedies set forth in the Security Agreement and the Indenture, those allowed
by applicable Law and the rights and remedies of a secured party under the Uniform Commercial Code
as enacted in any jurisdiction in which the Intellectual Property may be located and, without
limiting the generality of the foregoing, solely if an Event of Default has occurred and is
continuing, Agent may immediately, without demand of performance and without other notice (except
as set forth below) or demand whatsoever to the Grantor, all of which are hereby expressly waived,
and without advertisement, sell at public or private sale or otherwise realize upon, in a city that
the Agent shall designate by notice to the Grantor, in Pittsburgh, Pennsylvania or elsewhere, the
whole or from time to time any part of the Intellectual Property, or any interest which the Grantor
may have therein and, after deducting from the proceeds of sale or other disposition of the
Intellectual Property all expenses (including fees and expenses for brokers and attorneys), shall
apply the remainder of such proceeds toward the payment of the Secured Obligations as the Agent, in
its sole discretion, shall determine. Any remainder of the proceeds after payment in full of the
Secured Obligations shall be paid over to the Grantor. Notice of any sale or other disposition of
the Intellectual Property shall be given to the Grantor at least ten (10)&nbsp;days before the time of
any intended public or private sale or other
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->55<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">disposition of the Intellectual Property is to be made, which the Grantor hereby agrees shall
be reasonable notice of such sale or other disposition. At any such sale or other disposition,
Agent may, to the extent permissible under applicable Law, purchase the whole or any part of the
Intellectual Property sold, free from any right of redemption on the part of the Grantor, which
right is hereby waived and released. The Agent shall endeavor to provide the Borrower with notice
at or about the time of the exercise of remedies in the preceding sentence, provided that the
failure to provide such notice shall not in any way compromise or adversely affect the exercise of
such remedies or the Agent&#146;s rights hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">6.&nbsp;All of Agent&#146;s rights and remedies with respect to the Intellectual Property, whether
established hereby, by the Security Agreement or by the Indenture or by any other agreements or by
Law, shall be cumulative and may be exercised singularly or concurrently. In the event of any
irreconcilable inconsistency in the terms of this Agreement and the Security Agreement, the
Security Agreement shall control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">7.&nbsp;The provisions of this Agreement are severable, and if any clause or provision shall be
held invalid and 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
clause or provision of this Agreement in any jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">8.&nbsp;The benefits and burdens of this Agreement shall inure to the benefit of and be binding
upon the respective successors and permitted assigns of the parties, provided, however, that except
as permitted by the Indenture, the Grantor may not assign or transfer any of its rights or
obligations hereunder or any interest herein and any such purported assignment or transfer shall be
null and void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.&nbsp;This Agreement and the rights and obligations of the parties under this agreement shall be
governed by, and construed and interpreted in accordance with, the Law of the State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.&nbsp;The Grantor (i)&nbsp;hereby irrevocably submits to the nonexclusive general jurisdiction of the
courts of the State of New York and the courts of the United States of America for the Southern
District of New York, or any successor to said court (hereinafter referred to as the &#147;New York
Courts&#148;) for purposes of any suit, action or other proceeding which relates to this Agreement or
any other Noteholder Document, (ii)&nbsp;to the extent permitted by applicable Law, hereby waives and
agrees not to assert by way of motion, as a defense or otherwise in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of the New York Courts,
that such suit, action or proceeding is brought in an inconvenient forum, that the venue of such
suit, action or proceeding is improper, or that this Agreement or any Noteholder Document may
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">not be enforced in or by the New York Courts, (iii)&nbsp;hereby agrees not to seek, and hereby
waives, any collateral review by any other court, which may be called upon to enforce the judgment
of any of the New York Courts, of the merits of any such suit, action or proceeding or the
jurisdiction of the New York Courts, and (iv)&nbsp;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&nbsp;13 hereof or at such other address of which the Agent shall have been
notified pursuant thereto and service so made shall be deemed to be completed upon actual receipt
thereof. Nothing herein shall limit any Secured Party&#146;s right to bring any suit, action or other
proceeding against the Grantor or any of any of the Grantor&#146;s assets or to serve process on the
Grantor by any means authorized by Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">11.&nbsp;This Agreement may be executed by one or more of the parties to this Agreement on any
number of separate counterparts (including by telecopy), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">12.&nbsp;THE GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY A JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER NOTEHOLDER DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">13.&nbsp;All notices, requests and demands to or upon the Agent or the Grantor shall be effected in
the manner provided for in Section&nbsp;13.03 of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.&nbsp;In the performance of its obligations, powers and rights hereunder, the Agent shall be
entitled to the privileges, powers and immunities afforded to it as Collateral Agent under the
Indenture. The Agent shall be entitled to refuse to take or refrain from taking any discretionary
action or exercise any discretionary powers set forth in the Security Agreement unless it has
received with respect thereto written direction of the Issuer or a majority of Noteholders in
accordance with the Indenture. Notwithstanding anything to the contrary contained herein, the
Agent shall have no responsibility for the creation, perfection, priority, sufficiency or
protection of any liens securing Secured Obligations (including, but not limited to, no obligation
to prepare, record, file, re-record or re-file any financing statement, continuation statement or
other instrument in any public office).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;SIGNATURES APPEAR ON FOLLOWING PAGE&#093;
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->57<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Grantor:<BR>
<BR>
&#091;Name of Grantor&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->58<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT B</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>Form of Joinder Agreement</B>

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">This JOINDER AND ASSUMPTION AGREEMENT is made <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, a
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (the &#147;<B>New Grantor</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Reference is made to (i)&nbsp;the Indenture dated as of October&nbsp;20, 2009 (as amended, supplemented,
amended and restated or otherwise modified from time to time, the &#147;<U>Indenture</U>&#148;) between the
K. Hovnanian Enterprises, Inc., a California corporation (&#147;<U>Issuer</U>&#148;), Hovnanian Enterprises,
Inc., a Delaware corporation (&#147;<U>Hovnanian</U>&#148;), each of the other Guarantors party thereto and
Wilmington Trust Company, a Delaware banking corporation, as trustee (in such capacity, the
&#147;<U>Trustee</U>&#148;), pursuant to which the Issuer has issued, and may from time to time issue, its
10<SUP style="font-size: 85%; vertical-align: text-top">5</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Secured Notes due 2016 (collectively, the &#147;<U>Secured Notes</U>&#148;), (ii)&nbsp;the
Supplemental Indenture dated &#091;_____&#093; pursuant to which the New Grantor became party to the Indenture
as a Guarantor, (iii)&nbsp;the First Lien Security Agreement by each of the Grantors (as defined
therein) in favor of the Collateral Agent (in such capacity, the &#147;<U>Agent</U>&#148;) for the benefit
of itself, the Trustee and the Noteholders (as the same may be modified, supplemented, amended or
restated, the &#147;<U>Security Agreement</U>&#148;), (iv)&nbsp;the First Lien Pledge Agreement by each of the
Pledgors (as defined therein) in favor of the Agent for the benefit of itself, the Trustee and the
Noteholders (as the same may be modified, supplemented, amended or restated, the &#147;<U>Pledge
Agreement</U>&#148;), (v)&nbsp;the Intercreditor Agreement, dated as of May&nbsp;27, 2009, among the Issuer,
Hovnanian, certain subsidiaries of Hovnanian, the Collateral Agent, and Wilmington Trust Company,
as Mortgage Tax Collateral Agent, as amended by the First Amendment dated as of October&nbsp;20, 2009
(the &#147;<U>Senior Intercreditor Agreement</U>&#148;) and (vi)&nbsp;Intercreditor Agreement, dated as of
December&nbsp;3, 2009, among the Issuer, Hovnanian, certain subsidiaries of Hovnanian, the Collateral
Agent, and Wilmington Trust Company, as Mortgage Tax Collateral Agent, as amended by the First
Amendment dated as of October&nbsp;20, 2009 (the &#147;<U>Junior Lien Intercreditor Agreement</U>&#148;).
Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the
Security Agreement or, if not defined therein, the Pledge Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The New Grantor hereby agrees that effective as of the date hereof it hereby is, and shall be
deemed to be, a Grantor under the Security Agreement and the Intercreditor Agreement and a Pledgor
under the Pledge Agreement and agrees that from the date hereof until the payment in full of the
Secured Obligations and the performance of all other obligations of Issuer under the Noteholder
Documents, New Grantor has assumed the obligations of a Grantor and Pledgor under, and New Grantor
shall perform, comply with and be subject to and bound by, jointly and severally, each of the
terms, provisions and waivers of, the Security Agreement, the Pledge Agreement, the Intercreditor
Agreement and each of the other Noteholder Documents which are stated to apply to or are made by a
Grantor. Without limiting the generality of the foregoing, the New Grantor hereby represents and
warrants that each of the representations and warranties set forth in the Security Agreement and
the Pledge Agreement is true and correct as to New Grantor on and as of the date hereof as if made
on and as of the date hereof by New Grantor.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->59<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">New Grantor hereby makes, affirms, and ratifies in favor of the Secured Parties and the Agent the
Security Agreement, the Pledge Agreement and each of the other Noteholder Documents given by the
Grantors to the Agent. In furtherance of the foregoing, New Grantor 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 to carry out
more effectively the provisions and purposes of this Joinder Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">IN WITNESS WHEREOF, the New Grantor has duly executed this Joinder Agreement and delivered the same
to the Agent for the benefit of the Secured Parties, as of the date and year first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&#091;NAME OF NEW GRANTOR&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->60<!-- /Folio -->
</DIV>




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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>7
<FILENAME>c91350exv10w5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;10.5</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 10pt"><B>FORM
OF INTELLECTUAL PROPERTY SECURITY AGREEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This Intellectual Property Security Agreement (the &#147;<B>Agreement</B>&#148;), dated as of October&nbsp;20, 2009
is made by <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,
a <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
(&#147;the <B>Grantor</B>&#148;) in favor of Wilmington Trust Company, as
Collateral Agent (in such capacity, the &#147;<B>Agent</B>&#148;) for the benefit of itself, the Trustee (as defined
below) and the Noteholders (as defined below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, K. Hovnanian Enterprises, Inc., a California corporation (the &#147;<B>Borrower</B>&#148;), Hovnanian
Enterprises, Inc. (&#147;<B>Hovnanian</B>&#148;) and each of the other Guarantors party thereto entered into the
indenture dated as of May&nbsp;27, 2008, as amended, supplemented, amended and restated or otherwise
modified from time to time, with Wilmington Trust Company (as successor to Deutsche Bank National
Trust Company) as trustee pursuant to which the Issuer issued 11 1/2 % Senior Secured Notes due
2013;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian and each of the other Guarantors party thereto have entered
into the indenture dated as of December&nbsp;3, 2008, as amended, supplemented, amended and restated or
otherwise modified from time to time, with Wilmington Trust Company as trustee pursuant to which
the Issuer issued 18.0% Senior Secured Notes due 2017;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian and each of the other Guarantors have entered into the
Indenture dated as of October&nbsp;20, 2009 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the &#147;<B>Indenture</B>&#148;) with Wilmington Trust Company, a Delaware banking
corporation, as trustee (in such capacity, the &#147;<B>Trustee</B>&#148;), pursuant to which the Issuer (as defined
in the Indenture) issued 10 5/8% Senior Secured Notes due 2016 (collectively, the &#147;<B>Secured Notes</B>&#148;)
upon the terms and subject to the conditions set forth therein;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and Wilmington Trust Company, as Mortgage Tax
Collateral Agent have entered into the Intercreditor Agreement dated as of May&nbsp;27, 2008 (the &#147;<B>May
2008 Intercreditor Agreement</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower, Hovnanian, certain subsidiaries of Hovnanian party thereto, PNC Bank,
National Association, as Senior Credit Agent and First-Lien Administrative Agent, the Senior
Trustee, the Senior Noteholder Collateral Agent, the Junior Trustee, the Junior Agent and
Wilmington Trust Company, as Mortgage Tax Collateral Agent have entered into the Intercreditor
Agreement dated as of December&nbsp;3, 2008, as amended, supplemented, amended
or restated or otherwise modified from time to time (together with the May&nbsp;2008 Intercreditor
Agreement, the &#147;<B>Intercreditor Agreements</B>&#148;);
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Secured Notes constitute First Lien Indebtedness under each of the Intercreditor
Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower is a member of an affiliated group of companies that includes Hovnanian,
the Borrower&#146;s parent company, and each other Guarantor;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, the Borrower and the other Guarantors are engaged in related businesses, and each
Guarantor will derive substantial direct and indirect benefit from the issuance of the Secured
Notes;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">WHEREAS, pursuant to and under the Indenture and the First Lien Security Agreement dated as of
October&nbsp;20, 2009 (the &#147;<B>Security Agreement</B>&#148;) among the Borrower, Hovnanian, each of the signatories
listed on Schedule&nbsp;A thereto (together with any other entity that may become a party thereto) and
the Agent, the Grantor has agreed to enter into this Agreement in order to grant a security
interest to the Agent in certain Patents, Trademarks, Copyrights and other Intellectual Property as
security for such loans and other obligations as more fully described herein; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">1.&nbsp;Defined Terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;Except as otherwise expressly provided herein, (i)&nbsp;capitalized terms used in this
Agreement shall have the respective meanings assigned to them in the Security Agreement
and (ii)&nbsp;the rules of construction set forth in Section&nbsp;1.02 of the Indenture shall apply
to this Agreement. Where applicable and except as otherwise expressly provided herein,
terms used herein (whether or not capitalized) shall have the respective meanings assigned
to them in the Uniform Commercial Code as enacted in New York as amended from time to time
(the &#147;<B>Code</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b) &#147;<B>Copyright Licenses</B>&#148; shall mean any written agreement naming any Grantor as
licensor or licensee, granting any right under any Copyright, including, without
limitation, the grant of rights to distribute, exploit and sell materials derived from any
Copyright, including, without limitation, any of the foregoing referred to in Schedule&nbsp;A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(c) &#147;<B>Copyrights</B>&#148; shall mean (i)&nbsp;all copyrights arising under the laws of the United
States, any other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, all registrations and recordings
thereof, and all applications in connection therewith, including, without limitation, all
registrations, recordings and applications in the United States Copyright Office
referred to in Schedule&nbsp;A, and (ii)&nbsp;the right to obtain all renewals thereof.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(d) &#147;<B>Intellectual Property</B>&#148; shall mean the collective reference to all rights,
priorities and privileges, whether arising under United States, multinational or foreign
laws, in, to and under the Copyrights, the Copyright Licenses, the Patents, the Patent
Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(e) &#147;<B>Patent License</B>&#148; shall mean all written agreements providing for the grant by or
to any Grantor of any right to manufacture, use or sell any invention covered in whole or
in part by a Patent, including, without limitation, any of the foregoing referred to in
Schedule&nbsp;A.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(f) &#147;<B>Patents</B>&#148; shall mean (i)&nbsp;all letters patent of the United States, any other
country or any political subdivision thereof, all reissues and extensions thereof,
including, without limitation, any of the foregoing referred to in Schedule&nbsp;A, (ii)&nbsp;all
applications for letters patent of the United States or any other country and all
divisions, continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule&nbsp;A, and (iii)&nbsp;all rights to obtain any
reissues or extensions of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(g) &#147;<B>Secured Obligations</B>&#148; shall mean all now existing and hereafter arising
Obligations (as defined in the Indenture) of the Borrower and each and every other
Grantor, together with any extensions, renewals, replacements or refundings thereof, and
all costs and expenses of enforcement and collection, including reasonable attorney&#146;s
fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(h) &#147;<B>Secured Parties</B>&#148; shall mean the collective reference to the Agent, the Trustee
and the Noteholders, in each case to which any Secured Obligations are owed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(i) &#147;<B>Trademarks</B>&#148; shall mean (i)&nbsp;all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks, logos and
other source or business identifiers, and all goodwill associated therewith, now owned or
hereafter acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other country or
any political subdivision thereof, and all common-law rights related thereto, including,
without limitation, any of the foregoing referred to in Schedule&nbsp;A, and (ii)&nbsp;the right to
obtain all renewals thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(j) &#147;<B>Trademark License</B>&#148; shall mean any written agreement providing for the grant by
or to any Grantor of any right to use any
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Trademark, including, without limitation, any of the foregoing referred to in Schedule&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">2.&nbsp;To secure the full payment and performance of all Secured Obligations, the Grantor hereby
grants to the Agent a security interest in the entire right, title and interest of such Grantor in
and to all of its Intellectual Property; provided, however, that notwithstanding any of the other
provisions set forth in this Section&nbsp;2 (and notwithstanding any recording of the Agent&#146;s Lien made
in the U.S. Patent and Trademark Office, U.S. Copyright Office, or other registry office in any
other jurisdiction), this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by any applicable Law
of an Official Body, requires a consent not obtained of any Official Body pursuant to such Law or
is prohibited by, or constitutes a breach or default under or results in the termination of or
gives rise to any right of acceleration, modification or cancellation or requires any consent not
obtained under, any contract, license, agreement, instrument or other document evidencing or giving
rise to such property, except to the extent that such Law or the term in such contract, license,
agreement, instrument or other document or similar agreement providing for such prohibition,
breach, default or termination or requiring such consent is ineffective under applicable Law
including 9-406, 9-407, 9-408 or 9-409 of the New York UCC (or any successor provision or
provisions); <I>provided, further</I>, that no security interest shall be granted in any United States
&#147;intent-to-use&#148; trademark or service mark applications unless and until acceptable evidence of use
of the trademark or service mark has been filed with and accepted by the U.S. Patent and Trademark
Office pursuant to Section 1(c) or Section 1(d) of the Lanham Act (U.S.C. 1051, et seq.), and to
the extent that, and solely during the period in which, the grant of a security interest therein
would impair the validity or enforceability of such &#147;intent-to-use&#148; trademark or service mark
applications under applicable federal Law. After such period and after such evidence of use has
been filed and accepted, the Grantor acknowledges that such interest in such trademark or service
mark applications will become part of the Collateral. The Agent agrees that, at the Grantor&#146;s
reasonable request and expense, it will provide such Grantor confirmation that the assets described
in this paragraph are in fact excluded from the Collateral during such limited period only upon
receipt of an Officer&#146;s Certificate or an Opinion of Counsel to that effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">3.&nbsp;The Grantor covenants and warrants that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(a)&nbsp;To the knowledge of the Grantor, on the date hereof, all material Intellectual
Property owned by the Grantor is valid, subsisting and unexpired, has not been abandoned
and does not, to the knowledge of the Grantor, infringe the intellectual property rights
of any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%; text-indent: 4%">(b)&nbsp;The Grantor is the owner of each item of Intellectual Property listed on Schedule
A, free and clear of any and all Liens or claims of others except for the Permitted Liens.
No financing statement or
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">other public notice with respect to all or any part of the
Collateral is on file or of record in any public office, except as permitted pursuant to
this Agreement or as permitted by the Indenture;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">4.&nbsp;The Grantor agrees that, until all of the Secured Obligations shall have been indefeasibly
satisfied in full, it will not enter into any agreement (for example, a license agreement) which is
inconsistent with Grantor&#146;s obligations under this Agreement, without Agent&#146;s prior written consent
which shall not be unreasonably withheld except Grantor may license technology in the ordinary
course of business without the Agent&#146;s consent to suppliers and customers to facilitate the
manufacture and use of such Grantor&#146;s products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">5.&nbsp;Agent shall have, in addition to all other rights and remedies given it by this Agreement
and those rights and remedies set forth in the Security Agreement and the Indenture, those allowed
by applicable Law and the rights and remedies of a secured party under the Uniform Commercial Code
as enacted in any jurisdiction in which the Intellectual Property may be located and, without
limiting the generality of the foregoing, solely if an Event of Default has occurred and is
continuing, Agent may immediately, without demand of performance and without other notice (except
as set forth below) or demand whatsoever to the Grantor, all of which are hereby expressly waived,
and without advertisement, sell at public or private sale or otherwise realize upon, in a city that
the Agent shall designate by notice to the Grantor, in Pittsburgh, Pennsylvania or elsewhere, the
whole or from time to time any part of the Intellectual Property, or any interest which the Grantor
may have therein and, after deducting from the proceeds of sale or other disposition of the
Intellectual Property all expenses (including fees and expenses for brokers and attorneys), shall
apply the remainder of such proceeds toward the payment of the Secured Obligations as the Agent, in
its sole discretion, shall determine. Any remainder of the proceeds after payment in full of the
Secured Obligations shall be paid over to the Grantor. Notice of any sale or other disposition of
the Intellectual Property shall be given to the Grantor at least ten (10)&nbsp;days before the time of
any intended public or private sale or other disposition of the Intellectual Property is to be
made, which the Grantor hereby agrees shall be reasonable notice of such sale or other disposition.
At any such sale or other disposition, Agent may, to the extent permissible under applicable Law,
purchase the whole or any part of the Intellectual Property sold, free from any right of redemption
on the part of the Grantor, which right is hereby waived and released. The Agent shall endeavor to
provide the Borrower with notice at or about the time of the exercise of remedies in the preceding
sentence, provided that the failure to provide such notice shall not in any way compromise or
adversely affect the exercise of such remedies or the Agent&#146;s rights hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">6.&nbsp;All of Agent&#146;s rights and remedies with respect to the Intellectual Property, whether
established hereby, by the Security Agreement or by the
Indenture or by any other agreements or by Law, shall be cumulative and may be exercised
singularly or concurrently. In the event of any irreconcilable
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">inconsistency in the terms of this
Agreement and the Security Agreement, the Security Agreement shall control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">7.&nbsp;The provisions of this Agreement are severable, and if any clause or provision shall be
held invalid and 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
clause or provision of this Agreement in any jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">8.&nbsp;The benefits and burdens of this Agreement shall inure to the benefit of and be binding
upon the respective successors and permitted assigns of the parties, provided, however, that except
as permitted by the Indenture, the Grantor may not assign or transfer any of its rights or
obligations hereunder or any interest herein and any such purported assignment or transfer shall be
null and void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">9.&nbsp;This Agreement and the rights and obligations of the parties under this agreement shall be
governed by, and construed and interpreted in accordance with, the Law of the State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">10.&nbsp;The Grantor (i)&nbsp;hereby irrevocably submits to the nonexclusive general jurisdiction of the
courts of the State of New York and the courts of the United States of America for the Southern
District of New York, or any successor to said court (hereinafter referred to as the &#147;New York
Courts&#148;) for purposes of any suit, action or other proceeding which relates to this Agreement or
any other Noteholder Document, (ii)&nbsp;to the extent permitted by applicable Law, hereby waives and
agrees not to assert by way of motion, as a defense or otherwise in any such suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of the New York Courts,
that such suit, action or proceeding is brought in an inconvenient forum, that the venue of such
suit, action or proceeding is improper, or that this Agreement or any Noteholder Document may not
be enforced in or by the New York Courts, (iii)&nbsp;hereby agrees not to seek, and hereby waives, any
collateral review by any other court, which may be called upon to enforce the judgment of any of
the New York Courts, of the merits of any such suit, action or proceeding or the jurisdiction of
the New York Courts, and (iv)&nbsp;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&nbsp;13 hereof or at such other address of which the Agent shall have been notified pursuant
thereto and service so made shall be deemed to be completed upon actual receipt thereof. Nothing
herein shall limit any Secured Party&#146;s right to bring any suit, action or other proceeding against
the Grantor or any of any of the Grantor&#146;s assets or to serve process on the Grantor by any means
authorized by Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">11.&nbsp;This Agreement may be executed by one or more of the parties to this Agreement on any
number of separate counterparts (including by telecopy),
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">12.&nbsp;THE GRANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY A JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER NOTEHOLDER DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">13.&nbsp;All notices, requests and demands to or upon the Agent or the Grantor shall be effected in
the manner provided for in Section&nbsp;13.03 of the Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">14.&nbsp;In the performance of its obligations, powers and rights hereunder, the Agent shall be
entitled to the privileges, powers and immunities afforded to it as Collateral Agent under the
Indenture. The Agent shall be entitled to refuse to take or refrain from taking any discretionary
action or exercise any discretionary powers set forth in the Security Agreement unless it has
received with respect thereto written direction of the Issuer or a majority of Noteholders in
accordance with the Indenture. Notwithstanding anything to the contrary contained herein, the
Agent shall have no responsibility for the creation, perfection, priority, sufficiency or
protection of any liens securing Secured Obligations (including, but not limited to, no obligation
to prepare, record, file, re-record or re-file any financing statement, continuation statement or
other instrument in any public office).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;SIGNATURES APPEAR ON FOLLOWING PAGE&#093;
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY, as Collateral Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Grantor:&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top"><BR>By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SCHEDULE A</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>LIST OF REGISTERED AND APPLIED FOR PATENTS, COPYRIGHTS<BR>
AND TRADEMARKS</B>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>8
<FILENAME>c91350exv99w1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Exhibit&nbsp;99.1</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="justify" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="justify" valign="top">HOVNANIAN ENTERPRISES, INC<B>.</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>For Immediate Release</B></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Contact:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">J. Larry Sorsby
</TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Jeffrey T. O&#146;Keefe</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Executive Vice President &#038; CFO
</TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Director of Investor Relations</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">732-747-7800
</TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">732-747-7800</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>HOVNANIAN ENTERPRISES, INC. ANNOUNCES CLOSING OF $785 MILLION SENIOR<BR>SECURED NOTES OFFERING AND
EXPIRATION AND FINAL RESULTS OF CASH TENDER <BR>OFFERS AND RELATED CONSENT SOLICITATIONS FOR ITS SENIOR
SECURED AND UNSECURED NOTES</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>New Secured Notes</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">RED BANK, NJ, October&nbsp;20, 2009 &#150; Hovnanian Enterprises,&nbsp;Inc. (NYSE: HOV) (the &#147;Company&#148;) announced
the closing today of the private placement offering of $785.0&nbsp;million of
10<SUP style="font-size: 85%; vertical-align: text-top">5</SUP>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</SUB>% Senior Secured Notes due 2016 (the &#147;New Secured Notes&#148;) issued by K.
Hovnanian Enterprises, Inc. (&#147;K. Hovnanian&#148;), a wholly owned subsidiary of the Company, and
guaranteed by the Company and substantially all of its subsidiaries. The New Secured Notes and the
guarantees thereof will be secured on a first-priority lien basis by substantially all the assets
owned by the Company and the guarantors, subject to permitted liens and certain exceptions. The
proceeds of the New Secured Notes offering were used, together with cash on hand, to fund the
Tender Offers discussed below. In connection with the New Secured Notes Offering, K. Hovnanian
terminated its revolving credit facility and entered into certain letter of credit facilities.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The New Secured Notes were offered in a private placement to qualified institutional buyers
pursuant to Rule&nbsp;144A and outside the United States in compliance with Regulation&nbsp;S under the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The New Secured Notes have not been and will not be registered under the Securities Act, and may
not be offered or sold in the United States absent registration or an applicable exemption from
registration requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Tender Offers</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company also announced the expiration and final results of K. Hovnanian&#146;s tender offers to
purchase for cash (i)&nbsp;any and all of its outstanding 11<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Secured Notes due 2013 (the &#147;2013
Secured Notes&#148;) (the &#147;2013 Secured Notes Tender Offer&#148;), (ii)&nbsp;any and all of its outstanding 18%
Senior Secured Notes due 2017 (the &#147;2017 Secured Notes&#148; and, together with the 2013 Secured Notes,
the &#147;Secured Notes&#148;) (the &#147;2017 Secured Notes Tender Offer&#148; and, together with the 2013 Secured
Notes Tender Offer, the &#147;Secured Notes Tender Offers&#148;) and (iii)&nbsp;the maximum aggregate principal
amount of its outstanding 8% Senior Notes due 2012 (the &#147;8% 2012 Notes&#148;), 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Notes due 2014
(the &#147;6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2014 Notes&#148;), 6<SUP style="font-size: 85%; vertical-align: text-top">3</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Notes due 2014 (the &#147;6<SUP style="font-size: 85%; vertical-align: text-top">3</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% 2014 Notes&#148;), 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% Senior Notes due 2015
(the &#147;6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% 2015 Notes&#148;), 7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Notes due 2016 (the &#147;7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2016 Notes&#148;) and 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% Senior Notes due
2016 (the &#147;6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% 2016 Notes&#148; and collectively with the 8% 2012 Notes, 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2014 Notes, 6<SUP style="font-size: 85%; vertical-align: text-top">3</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% 2014 Notes,
6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% 2015 Notes and 7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2016 Notes, the &#147;Unsecured Notes,&#148; and, together with the Secured Notes, the
&#147;Notes&#148;) to be purchased for a maximum aggregate consideration, excluding accrued and unpaid
interest, of $100.0&nbsp;million (the &#147;Unsecured Notes Tender Offer&#148; and, together with the Secured
Notes Tender Offers the &#147;Tender Offers&#148;). In connection with the 2013 Secured Notes Tender Offer
and the 2017 Secured Notes Tender Offer, K. Hovnanian solicited and, as previously announced,
received, consents (the &#147;Consent Solicitations&#148;) to amend certain provisions of the indentures
governing the Secured Notes.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Each Tender Offer expired at 12:00 midnight, New York City time, on October&nbsp;19, 2009 (with respect
to each Tender Offer, the &#147;Expiration Date&#148;). Holders of Notes were required to have validly
tendered and not withdrawn their Notes on or prior to 5:00 p.m., New York City time, on October&nbsp;2,
2009 (with respect to each Tender Offer, the &#147;Early Tender Date&#148;), in order to receive the Total
Consideration for their Notes. The Total Consideration includes an early tender consideration of
$50 for each $1,000 principal amount of Notes validly tendered on or before the Early Tender Date
and accepted in the applicable Tender Offer (with respect to each Tender Offer, the &#147;Early Tender
Consideration&#148;). Holders that validly tendered their Notes after the Early Tender Date and on or
prior to the Expiration Date received only the Tender Offer Consideration for such Notes, which is
equal to the Total Consideration for such Notes less the Early Tender Consideration. Holders of
Notes tendered and accepted in the Tender Offers also received accrued and unpaid interest from the
applicable last interest payment date to, but not including, the payment date for the Tender
Offers.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The table below shows the amount of Notes validly tendered and not validly withdrawn at the
Expiration Date.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Percentage of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Tendered as of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Outstanding </B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Acceptance Priority</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="justify" style="border-bottom: 1px solid #000000"><B>Title of Security</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Expiration Date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Notes Tendered</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Level</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Secured Notes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">11<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Secured Notes due 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">600,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">599,522,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">99.9</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">18% Senior Secured Notes due 2017</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">29,299,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">17,597,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">60.1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N/A</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Unsecured Notes</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">8% Senior Notes due 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">43,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">7,946,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">18.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Notes due 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">144,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">57,101,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">39.7</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<SUP style="font-size: 85%; vertical-align: text-top">3</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% Senior Notes due 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">114,300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">23,554,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">20.6</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% Senior Notes due 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">129,300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">36,632,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">28.3</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% Senior Notes due 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">172,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">64,668,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">37.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% Senior Notes due 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">173,200,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="justify">$</TD>
    <TD align="right">73,588,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="justify">&nbsp;</TD>
    <TD align="right">42.5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><DIV align="justify"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="justify"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>As of July&nbsp;31, 2009.</TD>
</TR>

</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Secured Notes Tender Offers and Related Consent Solicitations</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">K.&nbsp;Hovnanian accepted for purchase all $599,522,000 of the 2013 Secured Notes and all $17,597,000
of the 2017 Secured Notes that were validly tendered (and not withdrawn).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Based on the consents received in the Consent Solicitations, K. Hovnanian, the Company, the
guarantors and the applicable trustee under the indentures for the Secured Notes have entered into
supplemental indentures that among other things, (i)&nbsp;permit the incurrence of additional first lien
secured debt, (ii)&nbsp;eliminate the limitation on repurchase of certain debt (iii)&nbsp;amend the
definition of refinancing indebtedness (in the case of the 2017 Secured Notes) and (iv)&nbsp;permit the
incurrence of additional debtor-in-possession financing (in the case of the 2013 Secured Notes).
The supplemental indentures became effective today upon acceptance for payment of the Secured Notes
tendered pursuant to the Secured Notes Tender Offers.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Unsecured Notes Tender Offer</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">K.&nbsp;Hovnanian accepted for purchase all 8% 2012 Notes, 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2014 Notes, 6<SUP style="font-size: 85%; vertical-align: text-top">3</sup>/<SUB style="font-size: 85%; vertical-align: text-bottom">8</sub>% 2014 Notes and 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% 2015
Notes and $198,000 7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2016 Notes validly tendered (and not withdrawn). Because the Unsecured
Notes Tender Offer was oversubscribed, K. Hovnanian accepted Unsecured Notes tendered in accordance
with the &#147;Acceptance Priority Level&#148; as set forth in the table above, with Level 1 being the
highest priority. The amount of 7<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT>% 2016 Notes K. Hovnanian accepted was based on a proration
factor of 0.33%. None of the 6<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">4</FONT>% 2016 Notes were accepted for payment in the Unsecured Notes
Tender Offer.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">K.&nbsp;Hovnanian did not solicit any consents from the holders of Unsecured Notes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The terms and conditions of the Tender Offers and Consent Solicitations are described in the Offer
to Purchase and Consent Solicitation Statement, dated September&nbsp;21, 2009, as amended and
supplemented, and in the related
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Consent and Letter of Transmittal. Credit Suisse Securities (USA)&nbsp;LLC (&#147;Credit Suisse&#148;) served as
dealer manager for the Tender Offers and as solicitation agent for the Consent Solicitations, and
Bondholder Communications Group served as the information and tender agent.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This press release does not constitute an offer to purchase or a solicitation of any offer to sell,
the New Secured Notes or any other securities.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>About Hovnanian Enterprises</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is headquartered in Red Bank,
New Jersey. The Company is one of the nation&#146;s largest homebuilders with operations in Arizona,
California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New
York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The
Company&#146;s homes are marketed and sold under the trade names K. Hovnanian<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>
Homes<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, Matzel &#038; Mumford, Brighton Homes, Parkwood Builders, Town &#038; Country Homes, Oster
Homes, First Home Builders of Florida and CraftBuilt Homes. As the developer of K.
Hovnanian&#146;s<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Four Seasons communities, the Company is also one of the nation&#146;s largest
builders of active adult homes.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Forward-Looking Statements</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">All statements in this press release that are not historical facts should be considered as
&#147;forward-looking statements&#148;. Such statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by
the forward-looking statements. Such risks, uncertainties and other factors include, but are not
limited to, (1)&nbsp;changes in general and local economic and industry and business conditions, (2)
adverse weather conditions and natural disasters, (3)&nbsp;changes in market conditions and seasonality
of the Company&#146;s business, (4)&nbsp;changes in home prices and sales activity in the markets where the
Company builds homes, (5)&nbsp;government regulation, including regulations concerning development of
land, the home building, sales and customer financing processes, and the environment, (6)
fluctuations in interest rates and the availability of mortgage financing, (7)&nbsp;shortages in, and
price fluctuations of, raw materials and labor, (8)&nbsp;the availability and cost of suitable land and
improved lots, (9)&nbsp;levels of competition, (10)&nbsp;utility shortages and outages or rate fluctuations,
(11)&nbsp;levels of indebtedness and restrictions on&nbsp;the Company&#146;s&nbsp;operations and activities imposed
by&nbsp;the agreements governing the Company&#146;s outstanding indebtedness, (12)&nbsp;operations through joint
ventures with third parties, (13)&nbsp;product liability litigation and warranty claims, (14)&nbsp;successful
identification and integration of acquisitions, (15)&nbsp;significant influence of the Company&#146;s
controlling stockholders, (16)&nbsp;geopolitical risks, terrorist acts and other acts of war and (17)
other factors described in detail in the Company&#146;s Annual Report on Form&nbsp;10-K for the year ended
October&nbsp;31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended January&nbsp;31, 2009, April
30, 2009 and July&nbsp;31, 2009. Except as otherwise required by applicable securities laws, we
undertake no obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, future events, changed circumstances or any other reason.
</DIV>


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