Common use of Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade Clause in Contracts

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian and its Restricted Subsidiaries’ obligations to comply with the provisions of the Indenture under this Article 3 (except for Sections 3.01, 3.02, 3.03, 3.04, 3.10, 3.12 (other than clause (c) of the first paragraph thereof), 3.13 and 3.15 hereof) will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated Investment Grade; provided that if the Notes subsequently cease to be rated Investment Grade, then, from and after the time the Notes cease to be rated Investment Grade, the Issuer’s, Hovnanian’s and its Restricted Subsidiaries’ obligation to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4, 1999 will be calculated as though Section 3.06 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian obligations of the Company and its Restricted Subsidiaries’ obligations Subsidiaries to comply with the provisions of the Indenture under this Article 3 (except for Sections 3.016.02, 3.026.04, 3.036.05, 3.046.06, 3.106.07, 3.12 (other than clause (c6.08, 6.09(iv) of the first paragraph thereof), 3.13 and 3.15 hereof) 6.11 hereof will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first each date when the Notes issued under the Indenture are rated Investment Grade; provided provided, that if the Notes subsequently cease to be rated Investment Grade, then, from and after the each such time as the Notes cease to be rated Investment Grade until such time as the Notes are again rated Investment Grade, the Issuer’s, Hovnanian’s obligations of the Company and its Restricted Subsidiaries’ obligation Subsidiaries to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided provided, that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4June 30, 1999 1997 will be calculated as though Section 3.06 6.04 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian obligations of the Company and its Restricted Subsidiaries’ obligations Subsidiaries to comply with the provisions of the Indenture under this Article 3 Sections 4.06, 4.08, 4.09, 4.10, 4.11, 4.12, and 4.14 and paragraph (except for Sections 3.01, 3.02, 3.03, 3.04, 3.10, 3.12 (other than clause (cd) of the first paragraph thereof), 3.13 and 3.15 hereof) Section 5.01 hereof will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first each date when the Notes issued under the this Indenture are rated Investment Grade; provided that if the Notes subsequently cease to be rated Investment Grade, then, from and after the each such time as the Notes cease to be rated Investment Grade until such time as the Notes are again rated Investment Grade, the Issuer’s, Hovnanian’s obligations of the Company and its Restricted Subsidiaries’ obligation Subsidiaries to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the this Indenture upon reinstatement; provided that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4, 1999 the Original Issue Date will be calculated as though Section 3.06 4.08 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer’s, Hovnanian the Company’s and its Restricted Subsidiaries’ obligations to comply with the provisions of the Indenture under this Article 3 4 (except for Sections 3.014.01, 3.024.02, 3.034.03, 3.044.04, 3.104.05, 3.12 4.08, 4.11 (subject to Section 6.03(b)), 4.12, 4.14 (other than clause (ciii) of the first paragraph thereof), 3.13 4.15, 4.16, 4.17 and 3.15 hereof) this Section 4.18, will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated Investment Grade; provided provided, that if the Notes subsequently cease to be rated Investment Grade, then, from and after the time the Notes cease to be rated Investment Grade, the Issuer’s, Hovnanianthe Company’s and its Restricted Subsidiaries’ obligation to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian the Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided provided, that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4, 1999 will be calculated as though Section 3.06 4.07 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian obligation of the Company and its Restricted Subsidiaries’ obligations Subsidiaries to comply with the provisions of the Indenture under this Article 3 4 (except for Sections 3.014.01, 3.024.02, 3.034.03, 3.044.06, 3.104.09, 3.12 (other than clause (c4.12, 4.13 and 4.14) of the first paragraph thereof), 3.13 and 3.15 hereofSection 5.01(a)(iii)(3) will terminate be suspended (such terminated suspended covenants, the “Extinguished Suspended Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated have an Investment GradeGrade Rating; provided provided, that if the Notes subsequently cease to be rated have an Investment Grade, Grade Rating then, from and after the time the Notes cease to be rated Investment Gradesuch time, the Issuer’s, Hovnanian’s obligation of the Company and its Restricted Subsidiaries’ obligation Subsidiaries to comply with the Extinguished Suspended Covenants shall be reinstated. (b) In Notwithstanding the foregoing, in the event of any such reinstatement of the obligation to comply with the Extinguished Covenantsreinstatement, no action taken or omitted to be taken by the Issuer, Hovnanian Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided that (1) with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made on or after May 4the Issue Date, 1999 for purposes of Section 4.05(a)(3), will be calculated as though Section 3.06 hereof such covenant had been in effect during the entire period after such date; (2) all Debt, Incurred, during the suspension period will be deemed to have been Incurred pursuant to Section 4.04(b)(8), and (3) promptly, and in any event within 10 Business Days of such reinstatement, any Restricted Subsidiary that would have been required prior to such reinstatement by Section 4.08 to execute a supplemental indenture and Guarantee the Notes (but for the suspension of such covenant) will execute such supplemental indenture required by such covenant.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian the Company and its Restricted Subsidiaries’ obligations to comply with the provisions of the Indenture under this Article 3 4 (except for Sections 3.014.01, 3.024.02, 3.034.03, 3.044.04, 3.104.05, 3.12 4.08, 4.11 (subject to Section 6.03(b)), 4.12, 4.14 (other than clause (ciii) of the first paragraph thereof), 3.13 4.15, 4.16, 4.17, 4.19 and 3.15 hereof) this Section 4.18, will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated Investment Grade; provided provided, that if the Notes subsequently cease to be rated Investment Grade, then, from and after the time the Notes cease to be rated Investment Grade, the Issuer’s, Hovnanianthe Company’s and its Restricted Subsidiaries’ obligation to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian the Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided provided, that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4, 1999 will be calculated as though Section 3.06 4.07 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian the Company and its Restricted Subsidiaries’ obligations to comply with the provisions of the Indenture under this Article 3 4 (except for Sections 3.014.01, 3.024.02, 3.034.03, 3.044.04, 3.104.05, 3.12 4.08, 4.11 (subject to Section 6.03(b)), 4.12, 4.14 (other than clause (ciii) of the first paragraph thereof), 3.13 4.15, 4.16, 4.17 and 3.15 hereof) this Section 4.18, will terminate (such terminated covenants, the “Extinguished Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated Investment Grade; provided provided, that if the Notes subsequently cease to be rated Investment Grade, then, from and after the time the Notes cease to be rated Investment Grade, the Issuer’s, Hovnanianthe Company’s and its Restricted Subsidiaries’ obligation to comply with the Extinguished Covenants shall be reinstated. (b) In the event of any such reinstatement of the obligation to comply with the Extinguished Covenants, no action taken or omitted to be taken by the Issuer, Hovnanian the Company or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the Indenture upon reinstatement; provided provided, that with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made after May 4, 1999 will be calculated as though Section 3.06 4.07 hereof had been in effect during the entire period after such date.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Issuer, Hovnanian obligation of the Issuer and its Restricted Subsidiaries’ obligations Subsidiaries to comply with the provisions of the Indenture under this Article 3 (except for Sections 3.014.03, 3.024.07, 3.034.08, 3.044.09, 3.104.10, 3.12 (4.11, 4.15, 4.18, 4.19 and 5.01 other than clause (ciii) of the first paragraph thereof), 3.13 and 3.15 hereofSection 5.01(a) will terminate be suspended (such terminated suspended covenants, the “Extinguished Suspended Covenants”) and cease to have any further effect from and after the first date when the Notes issued under the Indenture are rated Investment Grade; provided provided, that if the Notes subsequently cease to be rated have an Investment GradeGrade Rating, then, from and after the time the Notes cease to be rated Investment Gradesuch time, the Issuer’s, Hovnanian’s obligation of the Issuer and its Restricted Subsidiaries’ obligation Subsidiaries to comply with the Extinguished Suspended Covenants shall be reinstated. (b) In . Notwithstanding the foregoing, in the event of any such reinstatement of the obligation to comply with the Extinguished Covenantsreinstatement, no action taken or omitted to be taken by the Issuer, Hovnanian Issuer or any of its Subsidiaries prior to such reinstatement shall give rise to a Default or Event of Default under the this Indenture upon reinstatement; provided that (1) with respect to Restricted Payments made after any such reinstatement, the amount of Restricted Payments made on or after May 4, 1999 the Issue Date will be calculated as though Section 3.06 hereof 4.07 had been in effect during the entire period after such date; and (2) all Indebtedness, Incurred, during the suspension period will be deemed to have been Incurred as Existing Indebtedness and (3) promptly, and in any event within 10 Business Days of such reinstatement, any Restricted Subsidiary that would have been required prior to such reinstatement to execute become a Guarantor (but for the suspension of such covenant) will execute such supplemental indenture required by Section 4.15.