Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 55

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 55
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 fiscal 2022, 2023 and 2024). After the performance period, the awards remain subject to a mandatory two-year post-vesting delayed delivery such that the awards will not be completely distributed until five years after the beginning of the performance period, or October 31, 2026. Like PSU and other LTIP awards, in accordance with the Committee’s intentions, the payout under the 2022 LTIP was determined based on the Company’s performance. 99 Award payouts were based on a specific target multiple of the NEO’s base salary in effect on January 1, 2022. The following describes the target multiple of base salary and form of payout for each NEO:

|                            | Target Multiple 
  of Base Salary | Payout Method |
| Mr. Ara K. Hovnanian       |            1.35 | 100% shares   |
| Mr. Brad G. O’Connor       |            0.75 | 100% shares   |
| Mr. Michael P. Wyatt       |           0.675 | 100% shares   |
| Mr. Alexander A. Hovnanian |           0.675 | 100% shares   |

The Awards were reflected in the Summary Compensation Table as “Stock Awards” in fiscal 2022 for Mr. Ara Hovnanian and Mr. O’Connor even though they remain subject to mandatory delayed delivery restrictions through fiscal 2026, as discussed above. For purposes of the 2022 LTIP, “Pre-tax Profit” is defined as income (loss) before income tax expense and before income (loss) from unconsolidated joint ventures as reflected on the Company’s audited financial statements plus income (loss) before income tax expense for the Company’s unconsolidated joint ventures as reflected on their respective financial statements for the thirty-six month period ending October 31, 2024, excluding the impact of any items deemed by the Committee to be unusual or nonrecurring items and excluding losses from land impairments and gains or losses from debt repurchases/debt retirement such as call premiums and related issuance costs. “Annualized Interest Incurred” is defined as the annualized interest due on the outstanding Homebuilding Debt as of October 31, 2024. “Homebuilding Debt” is defined as total (recourse) notes payable, including the outstanding balances at October 31, 2024 on any revolving credit agreements, and non-recourse property-specific debt, excluding accrued interest,