EXHIBIT 4.4
SENIOR SUBORDINATED NOTES
A/B EXCHANGE
REGISTRATION RIGHTS AGREEMENT
Dated as of March 26, 2002
by and among
▇. ▇▇▇▇▇▇▇▇▇ Enterprises, Inc.
Hovnanian Enterprises, Inc.
And certain of its Subsidiaries
and
▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
Banc of America Securities LLC
Credit Suisse First Boston Corporation
================================================================================
This Registration Rights Agreement (this "AGREEMENT") is made and entered into
as of March 26, 2002, by and among ▇. ▇▇▇▇▇▇▇▇▇ Enterprises, Inc., a New Jersey
corporation (the "COMPANY"), Hovnanian Enterprises, Inc., a Delaware corporation
(the "HOVNANIAN"), and certain subsidiary guarantors of Hovnanian party hereto
(together with Hovnanian, the "GUARANTORS") and ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc., Banc
of America Securities LLC, Credit Suisse First Boston Corporation, (each an
"INITIAL PURCHASER" and, collectively, the "INITIAL PURCHASERS"), each of whom
has agreed to purchase the Company's 8.875% Series A Senior Subordinated Notes
due 2012 (the "SERIES A SENIOR SUBORDINATED NOTES") pursuant to the Purchase
Agreement (as defined below).
This Agreement is made pursuant to the Purchase Agreement, dated March 19,
2002 (the "PURCHASE AGREEMENT"), by and among the Company, the Guarantors and
the Initial Purchasers. In order to induce the Initial Purchasers to purchase
the Series A Senior Subordinated Notes, the Company has agreed to provide the
registration rights set forth in this Agreement. The execution and delivery of
this Agreement is a condition to the obligations of the Initial Purchasers set
forth in Section 9 of the Purchase Agreement. Capitalized terms used herein and
not otherwise defined shall have the meaning assigned to them by the Indenture,
dated March 26, 2002 by and among the Company, the Guarantors and First Union
National Bank, as Trustee, relating to the Series A Senior Subordinated Notes
(the "INDENTURE").
The parties hereby agree as follows:
SECTION 1. DEFINITIONS
As used in this Agreement, the following capitalized terms shall have the
following meanings:
ACT: The Securities Act of 1933, as amended.
AFFILIATE: As defined in Rule 144 of the Act.
BROKER-DEALER: Any broker or dealer registered under the Exchange Act.
CERTIFICATED SECURITIES: Definitive Notes, as defined in the Indenture.
CLOSING DATE: The date hereof.
COMMISSION: The Securities and Exchange Commission.
CONSUMMATE: An Exchange Offer shall be deemed "Consummated" for purposes
of this Agreement upon the occurrence of (a) the filing and effectiveness under
the Act of the Exchange Offer Registration Statement relating to the Series B
Senior Subordinated Notes to be issued in the Exchange Offer, (b) the
maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the period
required pursuant to Section 3(b) hereof and (c) the delivery by the Company to
the Registrar under the Indenture of Series B Senior Subordinated Notes in the
same aggregate principal amount as the aggregate principal amount of Series A
Senior Subordinated Notes tendered by Holders thereof pursuant to the Exchange
Offer.
CONSUMMATION DEADLINE: As defined in Section 3(b) hereof.
EFFECTIVENESS DEADLINE: As defined in Sections 3(a) and 4(a) hereof.
EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.
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EXCHANGE OFFER: The exchange and issuance by the Company of a principal
amount of Series B Senior Subordinated Notes (which shall be registered pursuant
to the Exchange Offer Registration Statement) equal to the outstanding principal
amount of Series A Senior Subordinated Notes that are tendered by such Holders
in connection with such exchange and issuance.
EXCHANGE OFFER REGISTRATION STATEMENT: The Registration Statement relating
to the Exchange Offer, including the related Prospectus.
EXEMPT RESALES: The transactions in which the Initial Purchasers propose
to sell the Series A Senior Subordinated Notes to certain "qualified
institutional buyers," as such term is defined in Rule 144A under the Act and
pursuant to Regulation S under the Act.
FILING DEADLINE: As defined in Sections 3(a) and 4(a) hereof.
HOLDERS: As defined in Section 2 hereof.
PROSPECTUS: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.
RECOMMENCEMENT DATE: As defined in Section 6(d) hereof.
REGISTRATION DEFAULT: As defined in Section 5 hereof.
REGISTRATION STATEMENT: Any registration statement of the Company and the
Guarantors relating to (a) an offering of Series B Senior Subordinated Notes
pursuant to an Exchange Offer or (b) the registration for resale of Transfer
Restricted Securities pursuant to the Shelf Registration Statement, in each
case, (i) that is filed pursuant to the provisions of this Agreement and (ii)
including the Prospectus included therein, all amendments and supplements
thereto (including post-effective amendments) and all exhibits and material
incorporated by reference therein.
REGULATION S: Regulation S promulgated under the Act.
RULE 144: Rule 144 promulgated under the Act.
SERIES B SENIOR NOTES: The Company's 8.000% Series B Senior Notes due 2012
to be issued pursuant to a Senior Indenture, dated March 26, 2002 among the
Company, the Guarantors and First Union National Bank, as Trustee: (i) in the
Exchange Offer or (ii) as contemplated by Section 4 hereof.
SERIES B SENIOR SUBORDINATED NOTES: The Company's 8.875% Series B Senior
Subordinated Notes due 2012 to be issued pursuant to the Indenture: (i) in the
Exchange Offer or (ii) as contemplated by Section 4 hereof.
SHELF REGISTRATION STATEMENT: As defined in Section 6(b) hereof.
SUSPENSION NOTICE: As defined in Section 6(d) hereof.
TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as
in effect on the date of the Indenture.
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TRANSFER RESTRICTED SECURITIES: Each Series A Senior Subordinated Note,
until the earliest to occur of (a) the date on which such Series A Senior
Subordinated Note is exchanged in the Exchange Offer for a Series B Senior
Subordinated Note which is entitled to be resold to the public by the Holder
thereof without complying with the prospectus delivery requirements of the Act,
(b) the date on which such Series A Senior Subordinated Note has been disposed
of in accordance with a Shelf Registration Statement (and the purchasers thereof
have been issued Series B Senior Subordinated Notes), or (c) the date on which
such Series A Senior Subordinated Note is distributed to the public pursuant to
Rule 144 or Regulation S under the Act (and purchasers thereof have been issued
Series B Senior Subordinated Notes) and each Series B Senior Subordinated Note
until the date on which such Series B Senior Subordinated Note is disposed of by
a Broker-Dealer pursuant to the "Plan of Distribution" contemplated by the
Exchange Offer Registration Statement (including the delivery of the Prospectus
contained therein).
SECTION 2. HOLDERS
A Person is deemed to be a holder of Transfer Restricted Securities (each,
a "HOLDER") whenever such Person owns Transfer Restricted Securities.
SECTION 3. REGISTERED EXCHANGE OFFER
(a) Unless the Exchange Offer shall not be permitted by applicable federal
law (after the procedures set forth in Section 6(a)(i) below have been complied
with), the Company and the Guarantors shall (i) cause the Exchange Offer
Registration Statement to be filed with the Commission as soon as practicable
after the Closing Date, but in no event later than 90 days after the Closing
Date (such 90th day being the "FILING DEADLINE"), (ii) use its reasonable best
efforts to cause such Exchange Offer Registration Statement to become effective
at the earliest possible time, but in no event later than 150 days after the
Closing Date (such 150th day being the "EFFECTIVENESS DEADLINE"), (iii) in
connection with the foregoing, (A) file all pre-effective amendments to such
Exchange Offer Registration Statement as may be necessary in order to cause it
to become effective, (B) file, if applicable, a post-effective amendment to such
Exchange Offer Registration Statement pursuant to Rule 430A under the Act and
(C) cause all necessary filings, if any, in connection with the registration and
qualification of the Series B Senior Subordinated Notes to be made under the
Blue Sky laws of such jurisdictions as are necessary to permit Consummation of
the Exchange Offer, and (iv) upon the effectiveness of such Exchange Offer
Registration Statement, commence and Consummate the Exchange Offer. The Exchange
Offer shall be on the appropriate form permitting (i) registration of the Series
B Senior Subordinated Notes to be offered in exchange for the Series A Senior
Subordinated Notes that are Transfer Restricted Securities and (ii) resales of
Series B Senior Subordinated Notes by Broker-Dealers that tendered into the
Exchange Offer Series A Senior Subordinated Notes that such Broker-Dealer
acquired for its own account as a result of market making activities or other
trading activities (other than Series A Senior Subordinated Notes acquired
directly from the Company or any of its Affiliates) as contemplated by Section
3(c) below.
(b) The Company and the Guarantors shall use their respective reasonable
best efforts to cause the Exchange Offer Registration Statement to be effective
continuously for the period specified in Section 3(c) below, and shall keep the
Exchange Offer open for a period of not less than the minimum period required
under applicable federal and state securities laws to Consummate the Exchange
Offer; PROVIDED, HOWEVER, that in no event shall such period be less than 20
Business Days. The Company and the Guarantors shall cause the Exchange Offer to
comply with all applicable federal and state securities laws. No securities
other than the Series B Senior Notes and the Series B Senior Subordinated Notes
shall be included in the Exchange Offer Registration Statement. The Company and
the Guarantors shall use their respective best efforts to cause the Exchange
Offer to be Consummated on the earliest practicable date after the Exchange
Offer Registration Statement has become effective, but in no event later than 40
business days thereafter (such 40th day being the "CONSUMMATION DEADLINE").
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(c) The Company shall include a "Plan of Distribution" section in the
Prospectus contained in the Exchange Offer Registration Statement and indicate
therein that any Broker-Dealer who holds Transfer Restricted Securities that
were acquired for the account of such Broker-Dealer as a result of market-making
activities or other trading activities (other than Series A Senior Subordinated
Notes acquired directly from the Company or any Affiliate of the Company), may
exchange such Transfer Restricted Securities pursuant to the Exchange Offer.
Such "Plan of Distribution" section shall also contain all other information
with respect to such sales by such Broker-Dealers that the Commission may
require in order to permit such sales pursuant thereto, but such "Plan of
Distribution" shall not name any such Broker-Dealer or disclose the amount of
Transfer Restricted Securities held by any such Broker-Dealer, except to the
extent required by the Commission as a result of a change in policy, rules or
regulations after the date of this Agreement. See the Shearman & Sterling
no-action letter (available July 2, 1993).
Because such Broker-Dealer may be deemed to be an "underwriter" within the
meaning of the Act and must, therefore, deliver a prospectus meeting the
requirements of the Act in connection with its initial sale of any Series B
Senior Subordinated Notes received by such Broker-Dealer in the Exchange Offer,
the Company and Guarantors shall permit the use of the Prospectus contained in
the Exchange Offer Registration Statement by such Broker-Dealer to satisfy such
prospectus delivery requirement. To the extent necessary to ensure that the
prospectus contained in the Exchange Offer Registration Statement is available
for sales of Series B Senior Subordinated Notes by Broker-Dealers, the Company
and the Guarantors agree to use their respective best efforts to keep the
Exchange Offer Registration Statement continuously effective, supplemented,
amended and current as required by and subject to the provisions of Sections
6(a) and (c) hereof and in conformity with the requirements of this Agreement,
the Act and the policies, rules and regulations of the Commission as announced
from time to time, for a period of one year from the Consummation Deadline or
such shorter period as will terminate when all Transfer Restricted Securities
covered by such Registration Statement have been sold pursuant thereto. The
Company and the Guarantors shall provide sufficient copies of the latest version
of such Prospectus to such Broker-Dealers, promptly upon request, and in no
event later than one day after such request, at any time during such period.
SECTION 4. SHELF REGISTRATION
(a) SHELF REGISTRATION. If (i) the Exchange Offer is not permitted by
applicable law (after the Company and the Guarantors have complied with the
procedures set forth in Section 6(a)(i) below) or (ii) if any Holder of Transfer
Restricted Securities shall notify the Company within 20 Business Days following
the Consummation Deadline that (A) such Holder was prohibited by law or
Commission policy from participating in the Exchange Offer or (B) such Holder
may not resell the Series B Senior Subordinated Notes acquired by it in the
Exchange Offer to the public without delivering a prospectus and the Prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder or (C) such Holder is a Broker-Dealer
and holds Series A Senior Subordinated Notes acquired directly from the Company
or any of its Affiliates, then the Company and the Guarantors shall:
(x) cause to be filed, on or prior to 30 days after the earlier of (i) the
date on which the Company determines that the Exchange Offer Registration
Statement cannot be filed as a result of clause (a)(i) above and (ii) the date
on which the Company receives the notice specified in clause (a)(ii) above,
(such earlier date, the "FILING DEADLINE"), a shelf registration statement
pursuant to Rule 415 under the Act (which may be an amendment to the Exchange
Offer Registration Statement (the "SHELF REGISTRATION STATEMENT")), relating to
all Transfer Restricted Securities, and
(y) shall use their respective reasonable best efforts to cause such Shelf
Registration Statement to become effective on or prior to 90 days after the
Filing Deadline for the Shelf Registration Statement (such 90th day the
"EFFECTIVENESS DEADLINE").
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If, after the Company has filed an Exchange Offer Registration Statement
that satisfies the requirements of Section 3(a) above, the Company is required
to file and make effective a Shelf Registration Statement solely because the
Exchange Offer is not permitted under applicable federal law (i.e., clause
(a)(i) above), then the filing of the Exchange Offer Registration Statement
shall be deemed to satisfy the requirements of clause (x) above; PROVIDED that,
in such event, the Company shall remain obligated to meet the Effectiveness
Deadline set forth in clause (y).
To the extent necessary to ensure that the Shelf Registration Statement is
available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company and
the Guarantors shall use their respective reasonable best efforts to keep any
Shelf Registration Statement required by this Section 4(a) continuously
effective, supplemented, amended and current as required by and subject to the
provisions of Sections 6(b) and (c) hereof and in conformity with the
requirements of this Agreement, the Act and the policies, rules and regulations
of the Commission as announced from time to time, for a period of at least two
years (as extended pursuant to Section 6(d)) following the Closing Date, or such
shorter period as will terminate when all Transfer Restricted Securities covered
by such Shelf Registration Statement have been sold pursuant thereto.
(b) PROVISION BY HOLDERS OF CERTAIN INFORMATION IN CONNECTION WITH THE
SHELF REGISTRATION STATEMENT. No Holder of Transfer Restricted Securities may
include any of its Transfer Restricted Securities in any Shelf Registration
Statement pursuant to this Agreement unless and until such Holder furnishes to
the Company in writing, within 20 days after receipt of a request therefor, the
information specified in Item 507 or 508 of Regulation S-K, as applicable, of
the Act for use in connection with any Shelf Registration Statement or
Prospectus or preliminary Prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to liquidated damages pursuant to
Section 5 hereof unless and until such Holder shall have provided all such
information. Each selling Holder agrees to promptly furnish additional
information required to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially misleading.
SECTION 5. LIQUIDATED DAMAGES
If (i) any Registration Statement required by this Agreement is not filed
with the Commission on or prior to the applicable Filing Deadline, (ii) any such
Registration Statement has not been declared effective by the Commission on or
prior to the applicable Effectiveness Deadline, (iii) the Exchange Offer has not
been Consummated on or prior to the Consummation Deadline or (iv) any
Registration Statement required by this Agreement is filed and declared
effective but shall thereafter cease to be effective or fail to be usable for
its intended purpose without being succeeded immediately by a post-effective
amendment to such Registration Statement that cures such failure and that is
itself declared effective within 5 days of filing such post-effective amendment
to such Registration Statement (each such event referred to in clauses (i)
through (iv), a "REGISTRATION DEFAULT"), then the Company and the Guarantors
hereby jointly and severally agree to pay to each Holder of Transfer Restricted
Securities affected thereby liquidated damages in an amount equal to $.05 per
week per $1,000 in principal amount of Transfer Restricted Securities held by
such Holder for each week or portion thereof that the Registration Default
continues for the first 90-day period immediately following the occurrence of
such Registration Default. The amount of the liquidated damages shall increase
by an additional $.05 per week per $1,000 in principal amount of Transfer
Restricted Securities with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum amount of liquidated
damages of $.25 per week per $1,000 in principal amount of Transfer Restricted
Securities; PROVIDED that the Company and the Guarantors shall in no event be
required to pay liquidated damages for more than one Registration Default at any
given time. Notwithstanding anything to the contrary set forth herein, (1) upon
filing of the Exchange Offer Registration Statement (and/or, if applicable, the
Shelf Registration Statement), in the case of (i) above, (2) upon the
effectiveness of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration
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Statement), in the case of (ii) above, (3) upon Consummation of the Exchange
Offer, in the case of (iii) above, or (4) upon the filing of a post-effective
amendment to the Registration Statement or an additional Registration Statement
that causes the Exchange Offer Registration Statement (and/or, if applicable,
the Shelf Registration Statement) to again be declared effective or made usable
in the case of (iv) above, the liquidated damages payable with respect to the
Transfer Restricted Securities as a result of such clause (i), (ii), (iii) or
(iv), as applicable, shall cease.
All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated damages
are due cease to be Transfer Restricted Securities, all obligations of the
Company and the Guarantors to pay liquidated damages with respect to securities
shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full.
SECTION 6. REGISTRATION PROCEDURES
(a) EXCHANGE OFFER REGISTRATION STATEMENT. In connection with the Exchange
Offer, the Company and the Guarantors shall (x) comply with all applicable
provisions of Section 6(c) below, (y) use their respective reasonable best
efforts to effect such exchange and to permit the resale of Series B Senior
Subordinated Notes by Broker-Dealers that tendered in the Exchange Offer Series
A Senior Subordinated Notes that such Broker-Dealer acquired for its own account
as a result of its market making activities or other trading activities (other
than Series A Senior Subordinated Notes acquired directly from the Company or
any of its Affiliates) being sold in accordance with the intended method or
methods of distribution thereof, and (z) comply with all of the following
provisions:
(i) If, following the date hereof there has been announced a change in
Commission policy with respect to exchange offers such as the Exchange Offer,
that in the reasonable opinion of counsel to the Company raises a substantial
question as to whether the Exchange Offer is permitted by applicable federal
law, the Company and the Guarantors hereby agree to seek a no-action letter
or other favorable decision from the Commission allowing the Company and the
Guarantors to Consummate an Exchange Offer for such Transfer Restricted
Securities. The Company and the Guarantors hereby agree to pursue the
issuance of such a decision to the Commission staff level. In connection with
the foregoing, the Company and the Guarantors hereby agree to take all such
other actions as may be requested by the Commission or otherwise required in
connection with the issuance of such decision, including without limitation
(A) participating in telephonic conferences with the Commission, (B)
delivering to the Commission staff an analysis prepared by counsel to the
Company setting forth the legal bases, if any, upon which such counsel has
concluded that such an Exchange Offer should be permitted and (C) diligently
pursuing a resolution (which need not be favorable) by the Commission staff.
(ii) As a condition to its participation in the Exchange Offer, each
Holder of Transfer Restricted Securities (including, without limitation, any
Holder who is a Broker Dealer) shall furnish, upon the request of the
Company, prior to the Consummation of the Exchange Offer, a written
representation to the Company and the Guarantors (which may be contained in
the letter of transmittal contemplated by the Exchange Offer Registration
Statement) to the effect that (A) it is not an Affiliate of the Company, (B)
it is not engaged in, and does not intend to engage in, and has no
arrangement or understanding with any person to participate in, a
distribution of the Series B Senior Subordinated Notes to be issued in the
Exchange Offer and (C) it is acquiring the Series B Senior Subordinated Notes
in its ordinary course of business. As a condition to its participation in
the Exchange Offer each Holder using the Exchange Offer to participate in a
distribution of the Series B Senior Subordinated Notes shall acknowledge and
agree that, if the resales are of Series B Senior Subordinated Notes obtained
by such Holder in exchange for Series A Senior Subordinated Notes acquired
directly from the Company or an Affiliate thereof, it (1) could not, under
Commission policy as in effect on
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the date of this Agreement, rely on the position of the Commission enunciated
in ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ AND CO., INC. (available June 5, 1991) and EXXON CAPITAL
HOLDINGS CORPORATION (available May 13, 1988), as interpreted in the
Commission's letter to SHEARMAN & STERLING dated July 2, 1993, and similar
no-action letters (including, if applicable, any no-action letter obtained
pursuant to clause (i) above), and (2) must comply with the registration and
prospectus delivery requirements of the Act in connection with a secondary
resale transaction and that such a secondary resale transaction must be
covered by an effective registration statement containing the selling
security holder information required by Item 507 or 508, as applicable, of
Regulation S-K.
(iii) Prior to effectiveness of the Exchange Offer Registration
Statement, the Company and the Guarantors shall provide a supplemental letter
to the Commission (A) stating that the Company and the Guarantors are
registering the Exchange Offer in reliance on the position of the Commission
enunciated in EXXON CAPITAL HOLDINGS CORPORATION (available May 13, 1988),
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ AND CO., INC. (available June 5, 1991) as interpreted in the
Commission's letter to SHEARMAN & STERLING dated July 2, 1993, and, if
applicable, any no-action letter obtained pursuant to clause (i) above, (B)
including a representation that neither the Company nor any Guarantor has
entered into any arrangement or understanding with any Person to distribute
the Series B Senior Subordinated Notes to be received in the Exchange Offer
and that, to the best of the Company's and each Guarantor's information and
belief, each Holder participating in the Exchange Offer is acquiring the
Series B Senior Subordinated Notes in its ordinary course of business and has
no arrangement or understanding with any Person to participate in the
distribution of the Series B Senior Subordinated Notes received in the
Exchange Offer and (C) any other undertaking or representation required by
the Commission as set forth in any no-action letter obtained pursuant to
clause (i) above, if applicable.
(b) SHELF REGISTRATION STATEMENT. In connection with the Shelf
Registration Statement, the Company and the Guarantors shall:
(i) comply with all the provisions of Section 6(c) below and use their
respective reasonable best efforts to effect such registration to permit the
sale of the Transfer Restricted Securities being sold in accordance with the
intended method or methods of distribution thereof (as indicated in the
information furnished to the Company pursuant to Section 4(b) hereof), and
pursuant thereto the Company and the Guarantors will prepare and file with the
Commission a Registration Statement relating to the registration on any
appropriate form under the Act, which form shall be available for the sale of
the Transfer Restricted Securities in accordance with the intended method or
methods of distribution thereof within the time periods and otherwise in
accordance with the provisions hereof.
(ii) issue, upon the request of any Holder or purchaser of Series A
Senior Subordinated Notes covered by any Shelf Registration Statement
contemplated by this Agreement, Series B Senior Subordinated Notes having an
aggregate principal amount equal to the aggregate principal amount of Series A
Senior Subordinated Notes sold pursuant to the Shelf Registration Statement and
surrendered to the Company for cancellation; the Company shall register Series B
Senior Subordinated Notes on the Shelf Registration Statement for this purpose
and issue the Series B Senior Subordinated Notes to the purchaser(s) of
securities subject to the Shelf Registration Statement in the names as such
purchaser(s) shall designate.
(c) GENERAL PROVISIONS. In connection with any Registration Statement and
any related Prospectus required by this Agreement, the Company and the
Guarantors shall:
(i) use their respective reasonable best efforts to keep such
Registration Statement continuously effective and provide all requisite
financial statements for the period specified in Section 3 or 4 of this
Agreement, as applicable. Upon the occurrence of any event that would cause
any such Registration Statement or the Prospectus contained therein (A) to
contain an untrue statement of material fact or omit to state any material
fact necessary to make the statements therein not misleading or (B) not to be
effective and usable for resale of Transfer Restricted Securities during the
period required by this Agreement, the Company
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and the Guarantors shall file promptly an appropriate amendment to such
Registration Statement curing such defect, and, if Commission review is
required, use their respective best efforts to cause such amendment to be
declared effective as soon as practicable.
(ii) prepare and file with the Commission such amendments and
post-effective amendments to the applicable Registration Statement as may be
necessary to keep such Registration Statement effective for the applicable
period set forth in Section 3 or 4 hereof, as the case may be; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as
so supplemented to be filed pursuant to Rule 424 under the Act, and to comply
fully with Rules 424, 430A and 462, as applicable, under the Act in a timely
manner; and comply with the provisions of the Act with respect to the
disposition of all securities covered by such Registration Statement during
the applicable period in accordance with the intended method or methods of
distribution by the sellers thereof set forth in such Registration Statement
or supplement to the Prospectus;
(iii) advise each Holder promptly and, if requested by such Holder,
confirm such advice in writing, (A) when the Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to
any applicable Registration Statement or any post-effective amendment
thereto, when the same has become effective, (B) of any request by the
Commission for amendments to the Registration Statement or amendments or
supplements to the Prospectus or for additional information relating thereto,
(C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement under the Act or of the
suspension by any state securities commission of the qualification of the
Transfer Restricted Securities for offering or sale in any jurisdiction, or
the initiation of any proceeding for any of the preceding purposes, and (D)
of the existence of any fact or the happening of any event that makes any
statement of a material fact made in the Registration Statement, the
Prospectus, any amendment or supplement thereto or any document incorporated
by reference therein untrue, or that requires the making of any additions to
or changes in the Registration Statement in order to make the statements
therein not misleading, or that requires the making of any additions to or
changes in the Prospectus in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. If at
any time the Commission shall issue any stop order suspending the
effectiveness of the Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted
Securities under state securities or Blue Sky laws, the Company and the
Guarantors shall use their respective reasonable best efforts to obtain the
withdrawal or lifting of such order at the earliest possible time;
(iv) subject to Section 6(c)(i), if any fact or event contemplated by
Section 6(c)(iii)(D) above shall exist or have occurred, prepare a supplement
or post-effective amendment to the Registration Statement or related
Prospectus or any document incorporated therein by reference or file any
other required document so that, as thereafter delivered to the purchasers of
Transfer Restricted Securities, the Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which
they were made, not misleading;
(v) furnish to each Holder in connection with such exchange or sale,
if any, before filing with the Commission, copies of any Registration
Statement or any Prospectus included therein or any amendments or supplements
to any such Registration Statement or Prospectus (including all documents
incorporated by reference after the initial filing of such Registration
Statement), which documents will be subject to the review and comment of such
Holders in connection with such sale, if any, for a period of at least five
Business Days, and the Company will not file any such Registration Statement
or Prospectus or any amendment or supplement to any such Registration
Statement or Prospectus (including all such documents incorporated by
reference) to which such Holders shall reasonably object within five Business
Days after the receipt thereof. A Holder shall be deemed to have reasonably
objected to such filing if such Registration Statement, amendment, Prospectus
or supplement, as applicable, as proposed to be filed, contains an untrue
statement of a material fact or omit to
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state any material fact necessary to make the statements therein not
misleading or fails to comply with the applicable requirements of the Act;
(vi) promptly prior to the filing of any document that is to be
incorporated by reference into a Registration Statement or Prospectus,
provide copies of such document to each Holder in connection with such
exchange or sale, if any, make the Company's and the Guarantors'
representatives available for discussion of such document and other customary
due diligence matters, and include such information in such document prior to
the filing thereof as such Holders may reasonably request;
(vii) make available, at reasonable times, for inspection by each
Holder and any attorney or accountant retained by such Holders, all financial
and other records, pertinent corporate documents of the Company and the
Guarantors and cause the Company's and the Guarantors' officers, directors
and employees to supply all information reasonably requested by any such
Holder, attorney or accountant in connection with such Registration Statement
or any post-effective amendment thereto subsequent to the filing thereof and
prior to its effectiveness;
(viii) if requested by any Holders in connection with such exchange or
sale, promptly include in any Registration Statement or Prospectus, pursuant
to a supplement or post-effective amendment if necessary, such information as
such Holders may reasonably request to have included therein, including,
without limitation, information relating to the "Plan of Distribution" of the
Transfer Restricted Securities; and make all required filings of such
Prospectus supplement or post-effective amendment as soon as practicable
after the Company is notified of the matters to be included in such
Prospectus supplement or post-effective amendment;
(ix) furnish to each Holder in connection with such exchange or sale,
without charge, at least one copy of the Registration Statement, as first
filed with the Commission, and of each amendment thereto, including all
documents incorporated by reference therein and all exhibits (including
exhibits incorporated therein by reference);
(x) deliver to each Holder without charge, as many copies of the
Prospectus (including each preliminary prospectus) and any amendment or
supplement thereto as such Persons reasonably may request; the Company and
the Guarantors hereby consent to the use (in accordance with law) of the
Prospectus and any amendment or supplement thereto by each selling Holder in
connection with the offering and the sale of the Transfer Restricted
Securities covered by the Prospectus or any amendment or supplement thereto;
(xi) upon the request of any Holder, enter into such agreements
(including underwriting agreements) and make such representations and
warranties and take all such other actions in connection therewith in order
to expedite or facilitate the disposition of the Transfer Restricted
Securities pursuant to any applicable Registration Statement contemplated by
this Agreement as may be reasonably requested by any Holder in connection
with any sale or resale pursuant to any applicable Registration Statement. In
such connection, the Company and the Guarantors shall:
(A) upon request of any Holder, furnish (or in the case of paragraphs
(2) and (3), use its best efforts to cause to be furnished) to each
Holder, upon Consummation of the Exchange Offer or upon the effectiveness
of the Shelf Registration Statement, as the case may be:
(1) a certificate, dated such date, signed on behalf of the
Company and each Guarantor by (x) the President or any Vice President
and (y) a principal financial or accounting officer of the Company and
such Guarantor, confirming, as of the date thereof, the matters set
forth in Sections 6(x), 9(a) and 9(b) of the Purchase Agreement and
such other similar matters as such Holders may reasonably request;
9
(2) an opinion, dated the date of Consummation of the Exchange
Offer or the date of effectiveness of the Shelf Registration
Statement, as the case may be, of counsel for the Company and the
Guarantors covering matters similar to those set forth in paragraph
(e) of Section 9 of the Purchase Agreement and such other matter as
such Holder may reasonably request, and in any event including a
statement to the effect that such counsel has participated in
conferences with officers and other representatives of the Company and
the Guarantors, representatives of the independent public accountants
for the Company and the Guarantors and have considered the matters
required to be stated therein and the statements contained therein,
although such counsel has not independently verified the accuracy,
completeness or fairness of such statements; and that such counsel
advises that, on the basis of the foregoing (relying as to materiality
to the extent such counsel deems appropriate upon the statements of
officers and other representatives of the Company and the Guarantors
and without independent check or verification), no facts came to such
counsel's attention that caused such counsel to believe that the
applicable Registration Statement, at the time such Registration
Statement or any post-effective amendment thereto became effective
and, in the case of the Exchange Offer Registration Statement, as of
the date of Consummation of the Exchange Offer, contained an untrue
statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading, or that the Prospectus contained in such
Registration Statement as of its date and, in the case of the opinion
dated the date of Consummation of the Exchange Offer, as of the date
of Consummation, contained an untrue statement of a material fact or
omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they
were made, not misleading. Without limiting the foregoing, such
counsel may state further that such counsel assumes no responsibility
for, and has not independently verified, the accuracy, completeness or
fairness of the financial statements, notes and schedules and other
financial data included in any Registration Statement contemplated by
this Agreement or the related Prospectus; and
(3) a customary comfort letter, dated the date of Consummation of
the Exchange Offer, or as of the date of effectiveness of the Shelf
Registration Statement, as the case may be, from the Company's
independent accountants, in the customary form and covering matters of
the type customarily covered in comfort letters to underwriters in
connection with underwritten offerings, and affirming the matters set
forth in the comfort letter delivered pursuant to Section 9(h) of the
Purchase Agreement; and
(B) deliver such other documents and certificates as may be reasonably
requested by the selling Holders to evidence compliance with the matters
covered in clause (A) above and with any customary conditions contained in
any agreement entered into by the Company and the Guarantors pursuant to
this clause (xi);
(xii) prior to any public offering of Transfer Restricted Securities,
cooperate with the selling Holders and their counsel in connection with the
registration and qualification of the Transfer Restricted Securities under
the securities or Blue Sky laws of such jurisdictions as the selling Holders
may request and do any and all other acts or things necessary or advisable to
enable the disposition in such jurisdictions of the Transfer Restricted
Securities covered by the applicable Registration Statement; PROVIDED,
HOWEVER, that neither the Company nor any Guarantor shall be required to
register or qualify as a foreign corporation or other entity, as applicable,
where it is not now so qualified or to take any action that would subject it
to the service of process in suits or to taxation, other than as to matters
and transactions relating to the Registration Statement, in any jurisdiction
where it is not now so subject;
(xiii) in connection with any sale of Transfer Restricted Securities
that will result in such securities no longer being Transfer Restricted
Securities, cooperate with the Holders to facilitate the timely preparation
and delivery of certificates representing Transfer Restricted Securities to
be sold and not bearing any
10
restrictive legends; and to register such Transfer Restricted Securities in
such denominations and such names as the selling Holders may request at least
two Business Days prior to such sale of Transfer Restricted Securities;
(xiv) use their respective reasonable best efforts to cause the
disposition of the Transfer Restricted Securities covered by the Registration
Statement to be registered with or approved by such other governmental
agencies or authorities as may be necessary to enable the seller or sellers
thereof to consummate the disposition of such Transfer Restricted Securities,
subject to the proviso contained in clause (xii) above;
(xv) provide a CUSIP number for all Transfer Restricted Securities not
later than the effective date of a Registration Statement covering such
Transfer Restricted Securities and provide the Trustee under the Indenture
with printed certificates for the Transfer Restricted Securities which are in
a form eligible for deposit with the Depository Trust Company;
(xvi) otherwise use their respective reasonable best efforts to comply
with all applicable rules and regulations of the Commission, and make
generally available to its security holders with regard to any applicable
Registration Statement, as soon as practicable, a consolidated earnings
statement meeting the requirements of Rule 158 (which need not be audited)
covering a twelve-month period beginning after the effective date of the
Registration Statement (as such term is defined in paragraph (c) of Rule 158
under the Act);
(xvii) cause the Indenture to be qualified under the TIA not later
than the effective date of the first Registration Statement required by this
Agreement and, in connection therewith, cooperate with the Trustee and the
Holders to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use its best efforts to cause the Trustee to execute, all
documents that may be required to effect such changes and all other forms and
documents required to be filed with the Commission to enable such Indenture
to be so qualified in a timely manner; and
(xviii) provide promptly to each Holder, upon request, each document
filed with the Commission pursuant to the requirements of Section 13 or
Section 15(d) of the Exchange Act.
(d) RESTRICTIONS ON HOLDERS. Each Holder agrees by acquisition of a
Transfer Restricted Security that, upon receipt of the notice referred to in
Section 6(c)(iii)(C) or any notice from the Company of the existence of any fact
of the kind described in Section 6(c)(iii)(D) hereof (in each case, a
"SUSPENSION NOTICE"), such Holder will forthwith discontinue disposition of
Transfer Restricted Securities pursuant to the applicable Registration Statement
until (i) such Holder has received copies of the supplemented or amended
Prospectus contemplated by Section 6(c)(iv) hereof, or (ii) such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and has received copies of any additional or supplemental filings that are
incorporated by reference in the Prospectus (in each case, the "RECOMMENCEMENT
DATE"). Each Holder receiving a Suspension Notice hereby agrees that it will
either (i) destroy any Prospectuses, other than permanent file copies, then in
such Holder's possession which have been replaced by the Company with more
recently dated Prospectuses or (ii) deliver to the Company (at the Company's
expense) all copies, other than permanent file copies, then in such Holder's
possession of the Prospectus covering such Transfer Restricted Securities that
was current at the time of receipt of the Suspension Notice. The time period
regarding the effectiveness of such Registration Statement set forth in Section
3 or 4 hereof, as applicable, shall be extended by a number of days equal to the
number of days in the period from and including the date of delivery of the
Suspension Notice to the date of delivery of the Recommencement Date.
SECTION 7. REGISTRATION EXPENSES
11
(a) All expenses incident to the Company's and the Guarantors' performance
of or compliance with this Agreement will be borne by the Company, regardless of
whether a Registration Statement becomes effective, including without
limitation: (i) all registration and filing fees and expenses; (ii) all fees and
expenses of compliance with federal securities and state Blue Sky or securities
laws; (iii) all expenses of printing (including printing certificates for the
Series B Senior Subordinated Notes to be issued in the Exchange Offer and
printing of Prospectuses), messenger and delivery services and telephone; (iv)
all fees and disbursements of counsel for the Company, the Guarantors and the
Holders of Transfer Restricted Securities; (v) all application and filing fees
in connection with listing the Series B Senior Subordinated Notes on a national
securities exchange or automated quotation system pursuant to the requirements
hereof; and (vi) all fees and disbursements of independent certified public
accountants of the Company and the Guarantors (including the expenses of any
special audit and comfort letters required by or incident to such performance).
The Company will, in any event, bear its and the Guarantors' internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expenses of
any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.
(b) In connection with any Registration Statement required by this
Agreement (including, without limitation, the Exchange Offer Registration
Statement and the Shelf Registration Statement), the Company and the Guarantors
will reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities who are tendering Series A Senior Subordinated Notes in the Exchange
Offer and/or selling or reselling Series A Senior Subordinated Notes or Series B
Senior Subordinated Notes pursuant to the "Plan of Distribution" contained in
the Exchange Offer Registration Statement or the Shelf Registration Statement,
as applicable, for the reasonable fees and disbursements of not more than one
counsel, who shall be ▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇▇▇, unless another firm shall be chosen
by the Holders of a majority in principal amount of the Transfer Restricted
Securities for whose benefit such Registration Statement is being prepared.
Notwithstanding the foregoing, such Holders shall be responsible for any and all
underwriting discounts and commissions and prior to employing counsel in
connection with an Exchange Offer, the Initial Purchasers will notify the
Company and the Company's counsel and provide them reasonable opportunity to
discuss the need for separate counsel; PROVIDED, HOWEVER, the Initial Purchasers
shall at all times retain the sole right to employ separate counsel.
SECTION 8. INDEMNIFICATION
(a) Each of the Company and the Guarantors agrees, jointly and severally,
to indemnify and hold harmless each Holder, its directors, officers and each
Person, if any, who controls such Holder (within the meaning of Section 15 of
the Act or Section 20 of the Exchange Act), from and against any and all losses,
claims, damages, liabilities, judgments, (including without limitation, any
legal or other expenses incurred in connection with investigating or defending
any matter, including any action that could give rise to any such losses,
claims, damages, liabilities or judgments) caused by any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement, preliminary prospectus or Prospectus (or any amendment or supplement
thereto) provided by the Company to any Holder or any prospective purchaser of
Series B Senior Subordinated Notes or registered Series A Senior Subordinated
Notes, or caused by any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as such losses, claims, damages, liabilities or
judgments are caused by an untrue statement or omission or alleged untrue
statement or omission that is based upon information relating to any of the
Holders furnished in writing to the Company by any of the Holders.
(b) Each Holder of Transfer Restricted Securities agrees, severally and
not jointly, to indemnify and hold harmless the Company and the Guarantors, and
their respective directors and officers, and each person, if any, who controls
(within the meaning of Section 15 of the Act or Section 20 of the Exchange Act)
the Company, or the
12
Guarantors to the same extent as the foregoing indemnity from the Company and
the Guarantors set forth in Section 8(a) above, but only with reference to
information relating to such Holder furnished in writing to the Company by such
Holder expressly for use in any Registration Statement. In no event shall any
Holder, its directors, officers or any Person who controls such Holder be liable
or responsible for any amount in excess of the amount by which the total amount
received by such Holder with respect to its sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities and (ii) the amount of any
damages that such Holder, its directors, officers or any Person who controls
such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.
(c) In case any action shall be commenced involving any person in respect
of which indemnity may be sought pursuant to Section 8(a) or 8(b) (the
"INDEMNIFIED PARTY"), the indemnified party shall promptly notify the person
against whom such indemnity may be sought (the "INDEMNIFYING PERSON") in writing
and the indemnifying party shall assume the defense of such action, including
the employment of counsel reasonably satisfactory to the indemnified party and
the payment of all fees and expenses of such counsel, as incurred (except that
in the case of any action in respect of which indemnity may be sought pursuant
to both Sections 8(a) and 8(b), a Holder shall not be required to assume the
defense of such action pursuant to this Section 8(c), but may employ separate
counsel and participate in the defense thereof, but the fees and expenses of
such counsel, except as provided below, shall be at the expense of the Holder).
Any indemnified party shall have the right to employ separate counsel in any
such action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of the indemnified party unless (i) the
employment of such counsel shall have been specifically authorized in writing by
the indemnifying party, (ii) the indemnifying party shall have failed to assume
the defense of such action or employ counsel reasonably satisfactory to the
indemnified party or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been advised by such counsel that
there may be one or more legal defenses available to it which are different from
or additional to those available to the indemnifying party (in which case the
indemnifying party shall not have the right to assume the defense of such action
on behalf of the indemnified party). In any such case, the indemnifying party
shall not, in connection with any one action or separate but substantially
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the fees and expenses of
more than one separate firm of attorneys (in addition to any local counsel) for
all indemnified parties and all such fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by a majority of the
Holders, in the case of the parties indemnified pursuant to Section 8(a), and by
the Company and Guarantors, in the case of parties indemnified pursuant to
Section 8(b). The indemnifying party shall indemnify and hold harmless the
indemnified party from and against any and all losses, claims, damages,
liabilities and judgments by reason of any settlement of any action (i) effected
with its written consent or (ii) effected without its written consent if the
settlement is entered into more than twenty business days after the indemnifying
party shall have received a request from the indemnified party for reimbursement
for the fees and expenses of counsel (in any case where such fees and expenses
are at the expense of the indemnifying party) and, prior to the date of such
settlement, the indemnifying party shall have failed to comply with such
reimbursement request. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement or compromise of, or
consent to the entry of judgment with respect to, any pending or threatened
action in respect of which the indemnified party is or could have been a party
and indemnity or contribution may be or could have been sought hereunder by the
indemnified party, unless such settlement, compromise or judgment (i) includes
an unconditional release of the indemnified party from all liability on claims
that are or could have been the subject matter of such action and (ii) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of the indemnified party.
(d) To the extent that the indemnification provided for in this Section 8
is unavailable to an indemnified party in respect of any losses, claims,
damages, liabilities or judgments referred to therein, then each indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or judgments (i) in such proportion as is
13
appropriate to reflect the relative benefits received by the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, from their sale
of Transfer Restricted Securities or (ii) if the allocation provided by clause
8(d)(i) is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause 8(d)(i) above
but also the relative fault of the Company and the Guarantors, on the one hand,
and of the Holder, on the other hand, in connection with the statements or
omissions which resulted in such losses, claims, damages, liabilities or
judgments, as well as any other relevant equitable considerations. The relative
fault of the Company and the Guarantors, on the one hand, and of the Holder, on
the other hand, shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company or such Guarantor, on the one hand, or by the Holder, on the other hand,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.
The Company, the Guarantors and each Holder agree that it would not be
just and equitable if contribution pursuant to this Section 8(d) were determined
by pro rata allocation (even if the Holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or judgments referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such indemnified party in
connection with investigating or defending any matter, including any action that
could have given rise to such losses, claims, damages, liabilities or judgments.
Notwithstanding the provisions of this Section 8, no Holder, its directors, its
officers or any Person, if any, who controls such Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the
total received by such Holder with respect to the sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities and (ii) the amount of any
damages which such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Holders' obligations to contribute
pursuant to this Section 8(d) are several in proportion to the respective
principal amount of Transfer Restricted Securities held by each Holder hereunder
and not joint.
SECTION 9. RULE 144A AND RULE 144
The Company and each Guarantor agree with each Holder, for so long as any
Transfer Restricted Securities remain outstanding and during any period in which
the Company or such Guarantor (i) is not subject to Section 13 or 15(d) of the
Exchange Act, to make available, upon request of any Holder, to such Holder or
beneficial owner of Transfer Restricted Securities in connection with any sale
thereof and any prospective purchaser of such Transfer Restricted Securities
designated by such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A, and (ii) is subject to Section 13 or 15 (d) of
the Exchange Act, to make all filings required thereby in a timely manner in
order to permit resales of such Transfer Restricted Securities pursuant to Rule
144.
SECTION 10. MISCELLANEOUS
(a) REMEDIES. The Company and the Guarantors acknowledge and agree that
any failure by the Company and/or the Guarantors to comply with their respective
obligations under Sections 3 and 4 hereof may result in material irreparable
injury to the Initial Purchasers or the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchasers or
any Holder may obtain such relief as may be required to specifically enforce the
Company's and the Guarantor's obligations under Sections 3 and 4 hereof. The
Company and the Guarantors further agree to waive the defense in any action for
specific performance that a remedy at law would be adequate.
14
(b) NO INCONSISTENT AGREEMENTS. Neither the Company nor any Guarantor
will, on or after the date of this Agreement, enter into any agreement with
respect to its securities that is inconsistent with the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof.
Neither the Company nor any Guarantor has previously entered into any agreement
granting any registration rights with respect to its securities to any Person.
The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Company's and
the Guarantors' securities under any agreement in effect on the date hereof.
(c) AMENDMENTS AND WAIVERS. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to or departures from
the provisions hereof may not be given unless (i) in the case of Section 5
hereof and this Section 10(c)(i), the Company has obtained the written consent
of Holders of all outstanding Transfer Restricted Securities and (ii) in the
case of all other provisions hereof, the Company has obtained the written
consent of Holders of a majority of the outstanding principal amount of Transfer
Restricted Securities (excluding Transfer Restricted Securities held by the
Company or its Affiliates). Notwithstanding the foregoing, a waiver or consent
to departure from the provisions hereof that relates exclusively to the rights
of Holders whose Transfer Restricted Securities are being tendered pursuant to
the Exchange Offer, and that does not affect directly or indirectly the rights
of other Holders whose Transfer Restricted Securities are not being tendered
pursuant to such Exchange Offer, may be given by the Holders of a majority of
the outstanding principal amount of Transfer Restricted Securities subject to
such Exchange Offer.
(d) THIRD PARTY BENEFICIARY. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent they may
deem such enforcement necessary or advisable to protect its rights or the rights
of Holders hereunder.
(e) NOTICES. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail
(registered or certified, return receipt requested), telex, telecopier, or air
courier guaranteeing overnight delivery:
(i) if to a Holder, at the address set forth on the records of the
Registrar under the Indenture, with a copy to the Registrar under the
Indenture; and
(ii) if to the Company or the Guarantors:
c/o Hovnanian Enterprises, Inc.
▇▇ ▇▇▇▇▇▇▇ ▇▇
▇.▇. ▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Telecopier No.: ▇▇▇-▇▇▇-▇▇▇▇
Attention: Corporate Controller
With a copy to:
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇.
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Telecopier No.: ▇▇▇-▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇., Esq.
15
All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business
Days after being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and on the next business day, if timely delivered
to an air courier guaranteeing overnight delivery.
Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.
(f) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties, including
without limitation and without the need for an express assignment, subsequent
Holders; PROVIDED, that nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Transfer Restricted Securities in violation of
the terms hereof or of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Transfer Restricted Securities in any
manner, whether by operation of law or otherwise, such Transfer Restricted
Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement, including the restrictions on resale set
forth in this Agreement and, if applicable, the Purchase Agreement, and such
Person shall be entitled to receive the benefits hereof.
(g) COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.
(h) HEADINGS. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.
(i) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
(j) SEVERABILITY. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.
(k) ENTIRE AGREEMENT. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein
with respect to the registration rights granted with respect to the Transfer
Restricted Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.
16
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
▇. ▇▇▇▇▇▇▇▇▇ ENTERPRISES, INC.
/s/ J. ▇▇▇▇▇ ▇▇▇▇▇▇
---------------------
By: J. ▇▇▇▇▇ ▇▇▇▇▇▇
Title: Executive Vice President
Chief Financial Officer
HOVNANIAN ENTERPRISES, INC.
/s/ J. ▇▇▇▇▇ ▇▇▇▇▇▇
---------------------
By: J. ▇▇▇▇▇ ▇▇▇▇▇▇
Title: Executive Vice President
Chief Financial Officer
GUARANTORS:
ALL SEASONS, INC.
ARROW PROPERTIES, INC.
BALLANTRAE DEVELOPMENT CORP.
BALLANTRAE HOME SALES, INC.
CONDOMINIUM COMMUNITY (BOWIE NEW TOWN), INC.
CONDOMINIUM COMMUNITY (LARGO TOWN), INC.
CONDOMINIUM COMMUNITY (PARK PLACE), INC.
CONDOMINIUM COMMUNITY (QUAIL RUN), INC.
CONDOMINIUM COMMUNITY (▇▇▇▇▇▇ DRIVE), INC.
CONSULTANTS CORPORATION
DESIGNED CONTRACTS. INC.
EXC, INC.
FORTIS HOMES, INC.
HOUSING-HOME SALES, INC.
HOVNANIAN AT TARPON LAKES I, INC.
HOVNANIAN DEVELOPMENTS OF FLORIDA, INC.
HOVNANIAN PENNSYLVANIA, INC.
K. HOV INTERNATIONAL, INC.
▇. ▇▇▇▇▇▇▇▇▇ ACQUISITIONS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇ VILLAGE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ATLANTIC CITY, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BALLANTRAE ESTATES, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BARRINGTON, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BEDMINSTER II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BEDMINSTER, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BELMONT, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BERNARDS IV, INC.
17
▇. ▇▇▇▇▇▇▇▇▇ AT BRANCHBURG III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BRIDGEPORT, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BRIDGEWATER IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BRIDGEWATER V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BRIDGEWATER VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BULL RUN, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BURLINGTON III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT BURLINGTON, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CALABRIA, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇ ▇▇▇▇▇, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CARMEL DEL MAR, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CAROLINA COUNTRY CLUB I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CAROLINA COUNTRY CLUB II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CAROLINA COUNTRY CLUB III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CASTILE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CEDAR GROVE I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CEDAR GROVE II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CHAPARRAL, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CLARKSTOWN, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT COCONUT CREEK, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT CRESTLINE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇ SPRINGS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇▇▇, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT DOMINION RIDGE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT EAST BRUNSWICK VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT EAST BRUNSWICK VIII, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT EAST WHITELAND I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT EXETER HILLS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FAIR LAKES ▇▇▇▇, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FAIR LAKES, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FREEHOLD TOWNSHIP, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FREEHOLD TOWNSHIP I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FT. ▇▇▇▇▇ I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT FT. ▇▇▇▇▇ II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT GREAT NOTCH, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HACKETTSTOWN, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HALF MOON BAY, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇ OAKS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HANOVER, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇'▇ MILL, INC. (a PA Corp)
▇. ▇▇▇▇▇▇▇▇▇ AT HIGHLAND VINEYARDS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ CREST, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HOPEWELL IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HOPEWELL V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HOPEWELL VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇ TOWNSHIP, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT HUNTER ESTATES, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT JACKSONVILLE II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT JEFFERSON, INC.
18
▇. ▇▇▇▇▇▇▇▇▇ AT JERSEY CITY III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT KINGS GRANT I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT KLOCKNER FARMS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT LA TERRAZA, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT LA TROVATA, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT LAKEWOOD, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇▇ V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT LOWER SAUCON II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT LOWER SAUCON, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH IV, INC. (Whalepond)
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH IX, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH VI, INC. (Norfolk)
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH VII, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MAHWAH VIII, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MANALAPAN, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MARLBORO II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MARLBORO TOWNSHIP IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MARLBORO TOWNSHIP VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MARLBORO TOWNSHIP VII, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MARLBORO TOWNSHIP III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MEDFORD I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MERRIMACK, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT METRO DC SOUTH, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MONTCLAIR NJ, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT MONTCLAIR, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇▇▇▇ I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NEWARK URBAN RENEWAL
CORPORATION I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NEWARK URBAN RENEWAL
CORPORATION IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NEWARK URBAN RENEWAL
CORPORATION V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NORTH BERGEN, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NORTH BRUNSWICK IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NORTHERN WESTCHESTER, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT NORTHLAKE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT OCEAN WALK, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT P.C. PROPERTIES, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PARK RIDGE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PASCO I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ ▇▇, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PEEKSKILL, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PEMBROKE SHORES, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PERKIOMEN I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PERKIOMEN II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PLAINSBORO III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT POLO TRACE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PORT IMPERIAL NORTH, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT PRINCETON, INC.
19
▇. ▇▇▇▇▇▇▇▇▇ AT RANCHO CHRISTIANITOS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT RARITAN I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT READINGTON II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT RESERVOIR RIDGE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT RIVER OAKS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SAN SEVAINE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SARATOGA, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SCOTCH PLAINS II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SCOTCH PLAINS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SENECA CROSSING, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SMITHVILLE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SMITHVILLE III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇ POINT, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SOUTH BRUNSWICK II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SOUTH BRUNSWICK III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SOUTH BRUNSWICK IV, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SOUTH BRUNSWICK V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SPRING RIDGE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ CANYON, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT STONEGATE, INC. (a CA
Corporation)
▇. ▇▇▇▇▇▇▇▇▇ AT STONEGATE, INC. (a VA
Corporation)
▇. ▇▇▇▇▇▇▇▇▇ AT STONY POINT, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇ ROAD, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SULLY STATION, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SUMMERWOOD, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT SYCAMORE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT TANNERY HILL, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT THE BLUFF, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT THE CEDARS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT THE ▇▇▇▇, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT THE RESERVE AT MEDFORD, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT THORNBURY, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT TIERRASANTA, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT TUXEDO, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT UNION TOWNSHIP I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT UPPER FREEHOLD TOWNSHIP I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT UPPER MAKEFIELD I, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT UPPER MERION, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇ RANCH, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT VALLEYBROOK II, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT VALLEYBROOK, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT WALL TOWNSHIP VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT WALL TOWNSHIP VIII, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT WASHINGTONVILLE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ III, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ V, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ VI, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇ VII, INC.
20
▇. ▇▇▇▇▇▇▇▇▇ AT WILDROSE, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇ TRAILS, INC.
▇. ▇▇▇▇▇▇▇▇▇ AT WOODMONT, INC.
▇. ▇▇▇▇▇▇▇▇▇ AVIATION, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES NORTHEAST, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF CALIFORNIA, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF FLORIDA, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF MARYLAND, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF METRO
WASHINGTON, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF NEW YORK, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF NORTH CAROLINA, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF PENNSYLVANIA, INC.
▇. ▇▇▇▇▇▇▇▇▇ COMPANIES OF SOUTHERN
CALIFORNIA, INC.
▇. ▇▇▇▇▇▇▇▇▇ CONSTRUCTION MANAGEMENT, INC.
▇. ▇▇▇▇▇▇▇▇▇'▇ DESIGN GALLERY, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF CALIFORNIA, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF MARYLAND, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF METRO
WASHINGTON, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF NEW JERSEY, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF NEW YORK, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF SOUTH
CAROLINA, INC.
▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF TEXAS, INC.
▇. ▇▇▇▇▇▇▇▇▇ EQUITIES, INC.
▇. ▇▇▇▇▇▇▇▇▇ FLORIDA DIVISION, INC.
▇. ▇▇▇▇▇▇▇▇▇ FORECAST ACQUISITION, INC.
▇. ▇▇▇▇▇▇▇▇▇ FORECAST HOMES, INC.
▇. ▇▇▇▇▇▇▇▇▇ INVESTMENT PROPERTIES OF NEW
JERSEY, INC.
▇. ▇▇▇▇▇▇▇▇▇ MARINE, INC.
▇. ▇▇▇▇▇▇▇▇▇ PORT IMPERIAL URBAN RENEWAL, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF EAST BRUNSWICK II,
INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF NB THEATRE, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF NEWARK URBAN
RENEWAL CORPORATION, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF NORTH BRUNSWICK
II, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF NORTH BRUNSWICK
V, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF PISCATAWAY, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF RED BANK, INC.
▇. ▇▇▇▇▇▇▇▇▇ PROPERTIES OF WALL, INC.
▇. ▇▇▇▇▇▇▇▇▇ REAL ESTATE INVESTMENT, INC.
21
▇. ▇▇▇▇▇▇▇▇▇ REAL ESTATE OF FLORIDA, INC.
▇. ▇▇▇▇▇▇▇▇▇ SOUTHEAST FLORIDA, INC.
▇. ▇▇▇▇▇▇▇▇▇ SOUTHEAST REGION, INC.
▇. ▇▇▇▇▇▇▇▇▇'▇ FOUR SEASONS OF THE PALM
BEACHES, INC.
KHC ACQUISITION, INC.
KINGS GRANT EVESHAM CORP.
LANDARAMA, INC.
MATZEL & MUMFORD OF DELAWARE, INC.
M & M AT LONG BRANCH, INC.
NEW ▇. ▇▇▇▇▇▇▇▇▇ DEVELOPMENTS OF FLORIDA, INC.
PARK VILLAGE REALTY, INC.
PARTHENON GROUP, INC.
PINE BROOK CO., INC.
QUE CORPORATION
REFLECTIONS OF YOU INTERIORS, INC.
STONEBROOK HOMES, INC.
THE MATZEL & MUMFORD ORGANIZATION, INC.
THE NEW FORTIS CORPORATION
THE SOUTHAMPTON CORPORATION
TROPICAL SERVICE BUILDERS, INC.
WASHINGTON HOMES OF DELAWARE, INC.
WASHINGTON HOMES OF WEST VIRGINIA, INC.
WASHINGTON HOMES, INC.
WASHINGTON HOMES, INC. OF VIRGINIA
WESTMINSTER HOMES (CHARLOTTE), INC.
WESTMINSTER HOMES OF TENNESSEE, INC.
WESTMINSTER HOMES, INC.
WH LAND I, INC
WH LAND II, INC.
WH PROPERTIES, INC.
ARBOR WEST, L.L.C.
K. HOVNANIAN AT ST. MARGARETS, L.L.C.
K. HOVNANIAN AT ARBOR HEIGHTS, L.L.C.
K. HOVNANIAN AT ASHBURN VILLAGE, L.L.C.
K. HOVNANIAN AT BARNEGAT I, L.L.C.
K. HOVNANIAN AT BERKELEY, L.L.C.
K. HOVNANIAN AT BERNARDS V, L.L.C.
K. HOVNANIAN AT BLOOMS CROSSING, L.L.C.
K. HOVNANIAN AT BLUE HERON PINES, L.L.C.
K. HOVNANIAN AT BRENBROOKE, L.L.C.
K. HOVNANIAN AT CAMDEN I, L.L.C.
K. HOVNANIAN AT CARMEL VILLAGE, L.L.C.
K. HOVNANIAN AT CEDAR GROVE III, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇ I, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT COLUMBIA TOWN CENTER, L.L.C.
K. HOVNANIAN AT CRANBURY, L.L.C.
K. HOVNANIAN AT CURRIES ▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT ENCINITAS RANCH, L.L.C.
22
▇. ▇▇▇▇▇▇▇▇▇ AT FORECAST, L.L.C.
K. HOVNANIAN AT GUTTENBERG, L.L.C.
K. HOVNANIAN AT HAMBURG, L.L.C.
K. HOVNANIAN AT HAMBURG CONTRACTORS, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT JERSEY CITY IV, L.L.C.
K. HOVNANIAN AT KENT ISLAND, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT KING FARM, L.L.C.
K. HOVNANIAN AT LAFAYETTE ESTATES, L.L.C.
K. HOVNANIAN AT LAKE RIDGE CROSSING, L.L.C.
K. HOVNANIAN AT LAKE TERRAPIN, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇▇ V, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C.
K. HOVNANIAN AT LITTLE EGG HARBOR
CONTRACTORS, L.L.C.
K. HOVNANIAN AT LOWER ▇▇▇▇▇▇▇▇ I, L.L.C.
K. HOVNANIAN AT LOWER MORELAND II, L.L.C.
K. HOVNANIAN AT LOWER SAUCON II, L.L.C.
K. HOVNANIAN AT MANSFIELD I, LLC
▇. ▇▇▇▇▇▇▇▇▇ AT ▇▇▇▇▇▇▇▇▇ II, LLC
▇. ▇▇▇▇▇▇▇▇▇ AT MANSFIELD III, L.L.C.
K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C.
K. HOVNANIAN AT MARLBORO VI, L.L.C.
K. HOVNANIAN AT MARLBORO VII, L.L.C.
K. HOVNANIAN AT MENIFEE, L.L.C.
K. HOVNANIAN AT MIDDLETOWN, L.L.C.
K. HOVNANIAN AT MT. OLIVE TOWNSHIP, L.L.C.
K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C.
K. HOVNANIAN AT NORTH HALEDON, L.L.C.
K. HOVNANIAN AT NORTHAMPTON, L.L.C.
K. HOVNANIAN AT NORTHFIELD, L.L.C.
K. HOVNANIAN AT PACIFIC BLUFFS, L.L.C.
K. HOVNANIAN AT PARAMUS, L.L.C.
K. HOVNANIAN AT PARK LANE, L.L.C.
K. HOVNANIAN AT PRINCE ▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT RANCHO SANTA ▇▇▇▇▇▇▇▇▇, L.L.C.
K. HOVNANIAN AT RIVERBEND, L.L.C.
K. HOVNANIAN AT RODERUCK. L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇▇▇ HEIGHTS, L.L.C.
K. HOVNANIAN AT SAYREVILLE, L.L.C.
K. HOVNANIAN AT SOUTH AMBOY, L.L.C.
K. HOVNANIAN AT SOUTH BANK, L.L.C.
K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C.
K. HOVNANIAN AT SPRING HILL ROAD, L.L.C.
K. HOVNANIAN AT ST. MARGARETS, L.L.C.
K. HOVNANIAN AT SUNSETS, L.L.C.
K. HOVNANIAN AT THE GABLES, L.L.C.
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP II,
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L.L.C.
K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III,
L.L.C.
K. HOVNANIAN AT WANAQUE, L.L.C.
K. HOVNANIAN AT WASHINGTON, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇ VIII, L.L.C.
K. HOVNANIAN AT ▇▇▇▇▇ IX, L.L.C.
K. HOVNANIAN AT WEST MILFORD, L.L.C.
K. HOVNANIAN AT WEST WINDSOR, L.L.C.
K. HOVNANIAN AT WILLOW BROOK, L.L.C.
K. HOVNANIAN AT WINCHESTER, L.L.C.
K. HOVNANIAN AT WOODHILL ESTATES, L.L.C.
K. HOVNANIAN AT WOOLWICH, L.L.C.
K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C.
K. HOVNANIAN COMPANIES OF METRO D.C. NORTH,
L.L.C.
K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C.
K. HOVNANIAN FORECAST, L.L.C.
K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C.
K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C.
K. HOVNANIAN SHORE ACQUISITIONS, L.L.C.
K. HOVNANIAN SOUTH JERSEY ACQUISITION, L.L.C.
K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C.
K. HOVNANIAN'S FOUR SEASONS, L.L.C.
K. HOVNANIAN'S PRIVATE HOME PORTFOLIO, L.L.C.
KINGS COURT AT ▇▇▇▇▇▇▇▇▇▇, L.L.C.
M&M AT APPLE RIDGE, L.L.C.
M&M AT BROOKHILL, L.L.C.
M&M AT HERITAGE ▇▇▇▇▇, L.L.C.
M&M AT THE HIGHLANDS, L.L.C.
M&M AT EAST MILL, L.L.C.
M&M AT MORRISTOWN, L.L.C.
M&M AT ROOSEVELT, L.L.C.
M&M AT SHERIDAN, L.L.C.
M&M AT SPARTA, L.L.C.
M&M AT SPINNAKER POINTE, L.L.C.
M&M AT SPRUCE HOLLOW, L.L.C.
M&M AT SPRUCE ▇▇▇▇▇▇▇, L.L.C.
M&M AT SPRUCE RUN, L.L.C.
MATZEL & MUMFORD AT CRANBURY ▇▇▇▇▇, L.L.C.
MATZEL & MUMFORD AT FREEHOLD, L.L.C.
MATZEL & MUMFORD AT HERITAGE LANDING, L.L.C.
MATZEL & MUMFORD AT ▇▇▇▇▇▇▇▇▇▇, L.L.C.
MATZEL & MUMFORD AT PHILLIPSBURG, L.L.C.
MATZEL & MUMFORD AT SOUTH BRUNSWICK, L.L.C.
MATZEL & MUMFORD AT WOODLAND CREST, L.L.C.
SECTION 14 OF THE HILLS, L.L.C.
THE LANDINGS AT SPINNAKER POINTE, L.L.C.
WESTMINSTER HOMES OF ALABAMA, L.L.C.
WESTMINSTER HOMES OF MISSISSIPPI, L.L.C.
▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇, L.L.C.
▇▇▇▇▇▇▇ FAMILY BUILDERS, L.P.
M & M INVESTMENTS, L.P.
WASHABAMA, L.P.
/s/ J. ▇▇▇▇▇ ▇▇▇▇▇▇
---------------------
By: J. ▇▇▇▇▇ ▇▇▇▇▇▇
Title: Executive Vice President
Chief Financial Officer
25
▇▇▇▇▇▇▇ ▇▇▇▇▇ BARNEY INC.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
-----------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Title: Director
BANC OF AMERICA SECURITIES LLC
By: /s/ S. T. ▇▇▇▇▇▇
-------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
CREDIT SUISSE FIRST BOSTON CORPORATION
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
-----------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Managing Director
26