Company: HOVVB
Filing Date: 2025-02-07
Form Type: DEF 14A
Source: 0001140361-25-003579
Chunk: 45

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-07
Form: DEF 14A
Chunk 45
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 Ready Home (ZERH) Multi-Family tax credit, $1,500 for each home that closed in the East Group and generated the $2,500 ENERGY STAR tax credit and $3,000 for each home that closed in the East Group and generated the $5,000 ZERH Single Family tax credit. Average Inventory Balancefor this purpose is calculated as the average balance in the inventory accounts utilizing the last day ending balances of these accounts for each of the five consecutive fiscal quarters ending with the last quarter of the fiscal year. Customer Satisfactionis based on the average score for the “How likely would you be to recommend K. Hovnanian Homes to family and friends” question on the 45/60 day survey or its successor. It is evaluated quarterly based on the higher of the previous quarter’s results or the available cumulative results beginning August 1st of the previous fiscal year. Mortgage Captureis calculated based on all closings net of cash sales and Mt. Laurel obligations. In addition, certain denied or specialty loans that K. Hovnanian Mortgage cannot offer may be excluded from the capture rate provided that K. Hovnanian Mortgage’s conditions for backing out denied/specialty loans are met. 88 The bonus formula for Mr. Wyatt is illustrated by the following tables. Mr. Wyatt*

| East Group          
 Return on Inventory | Mr. Wyatt                          
 Bonus                              |
| 0.00 – 10.00%       | 1.25% of East Group Pre-tax Profit |
| 15.00%              | 1.50% of East Group Pre-tax Profit |
| 20.00%              | 1.75% of East Group Pre-tax Profit |
| 25.00% or more      | 2.00% of East Group Pre-tax Profit |

Plus

| East Group            
 Customer Satisfaction | Mr. Wyatt             
 Bonus                 |
| 85.00%                | 10.00% of base salary |
| 88.00%                | 20.00% of base salary |
| 91.00% or more        | 30.00% of base salary |

89 Plus

| East Group       
 Mortgage Capture | Mr. Wyatt             
 Bonus                 |
| 80.00%           | 5.00% of base salary  |
| 82.50%           | 10.00% of base salary |
| 85.00% or more   | 15.00% of base salary |

| *