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.

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 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 GradeGrade (the “Suspension Date”); 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 Suspended Covenants shall be reinstated.

Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. (a) The Notwithstanding this Article 4, the Issuer’s, Hovnanian the Company’s and its Restricted Subsidiaries’ obligations to comply with the provisions of the this Indenture described above under this Article 3 (except for Sections 3.014.06, 3.024.07, 3.034.09, 3.044.10, 3.10, 3.12 (other than 4.13 and clause (ciii) of the first paragraph thereof), 3.13 and 3.15 hereof) of Section 4.14 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 this Indenture are rated Investment GradeGrade (the “Suspension Date”); 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 Suspended Covenants shall be reinstated.