Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 49

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 49
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. Wyatt received 1,176 target PSUs with a grant date fair value of $140,120. Mr. Alexander Hovnanian: In fiscal 2024, Mr. Alexander Hovnanian received 4,616 target PSUs with a grant date fair value of $549,996. 93 The number of PSUs tied to absolute EBIT levels which become earned PSUs shall equal the product of the target number of PSUs multiplied by the applicable Performance Multiplier set forth below. For this purpose, “EBIT” shall mean (1) income (loss) before interest and income tax expense during the performance period as reflected on the Company’s financial statements for such performance period; (2) minus the Company’s share of unconsolidated joint venture income (loss) as reflected on the Company’s financial statements; and (3) plus income (loss) before interest and income tax expense for the Company’s unconsolidated joint ventures as reflected on their respective financial statements for the twelve months ending April 30, 2025, excluding: (a) expense/income recorded during the performance period from any phantom share based awards related to changes in the stock price above or below the stock price at the date of grant; (b) the impact of any items deemed by the Committee to be unusual or nonrecurring items; and (c) losses from land impairments and gains or losses from debt repurchases/debt retirement such as call premiums and related issuance costs.

| EBIT for the                
 4 Quarters Ending           
 April 30, 2025              | Performance                                                                                                     
 Multiplier*                                                                                                     |
|:----------------------------|:----------------------------------------------------------------------------------------------------------------|
| More than 6.7% below target | 50%                                                                                                             |
| Target                      | 100%                                                                                                            |
| 13.3% or more above target  | 200%                                                                                                            |
|                             | *The applicable Performance Multiplier is interpolated on a linear basis between the points shown in the table. |

The number of PSUs tied to absolute EBIT Return on Investment which become earned PSUs shall equal the product of the target number of PSUs multiplied by the applicable Performance Multiplier as set forth below. “EBIT Return on Investment” shall mean the quotient resulting from dividing EBIT by Average Investment. “EBIT” shall mean income (loss) before interest and income tax expense during the performance period as reflected on the Company’s financial statements for such performance period, excluding: (1) expense