On January 16, 2018, Hovnanian Enterprises, Inc. announced that its subsidiary, K. Hovnanian Enterprises, Inc. has received the requisite consents to adopt the proposed amendments to the indenture governing K. Hovnanian's 10.000% Senior Secured Notes due 2022 (the "2022 Notes") and 10.500% Senior Secured Notes due 2024 (the "2024 Notes," each of the 2022 Notes and 2024 Notes, a "Series" of Notes, and collectively, the "Notes") with respect to the 2024 Notes from holders of the 2024 Notes in connection with K. Hovnanian's previously announced solicitation of consents with respect thereto (the "Consent Solicitation"), which expired with respect to the 2024 Notes at 5:00 p.m., New York City time, on January 12, 2018 (the "Expiration Date"). The Consent Solicitations are made in accordance with the terms and subject to the conditions stated in a Consent Solicitation Statement, dated December 28, 2017. Following the receipt of the requisite consents with respect to the 2024 Notes, on January 16, 2018, K.Hovnanian, the Company, as guarantor, the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (in both such capacities, the "Trustee"), executed the Second Supplemental Indenture, dated as of January 16, 2018 (the "Supplemental Indenture"), to the indenture governing the Notes, dated as of July 27, 2017 (as then supplemented, amended or otherwise modified, the "Indenture"), among K. Hovnanian, the Company, as guarantor, the other guarantors party thereto and the Trustee, giving effect to the Proposed Amendments solely with respect to the 2024 Notes. The Supplemental Indenture with respect to the 2024 Notes eliminates the restrictions on K. Hovnanian's ability to purchase, repurchase, redeem, acquire or retire for value K. Hovnanian's 7.000% Senior Notes due 2019 and 8.000% Senior Notes due 2019 and refinancing or replacement indebtedness in respect thereof contained in the Indenture.