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applicable pursuant to Section 11.1(d) at the time Business Criteria and Performance Target(s) are established for any Year or Years.", "hash": "5426e2b42d345a06d5b8f41792a05189", "id": 10}], "next_curs": "CmYSYGoVc35sYXdpbnNpZGVyY29udHJhY3RzckILEhpEZWZpbml0aW9uU25pcHBldEdyb3VwX3Y1NiIiYWRqdXN0ZWQtb3BlcmF0aW5nLWluY29tZSMwMDAwMDAwYQyiAQJlbhgAIAA=", "definition": {"title": "Adjusted Operating Income", "size": 228, "snippet": "for each year in the Performance Period is defined as the Company\u2019s net income from continuing operations as reported in the Company\u2019s financial statements (including accompanying footnotes and management\u2019s discussion and analysis), adjusted as set forth in the immediately following sentence. In calculating Adjusted Operating Income, net income from continuing operations shall be adjusted as follows: first (A) remove the after-tax effects of the following items: (i) losses (net of reinsurance) from catastrophes (as designated by the Insurance Service Office\u2019s Property Claims Service Group, the Lloyd\u2019s Claim Office, Swiss Reinsurance Company\u2019s sigma report, or a comparable report or organization generally recognized by the insurance industry, and reported by the Company as a catastrophe); asbestos and environmental reserve charges (or releases); net realized investment gains or losses in the fixed maturities and real estate portfolios; and (ii) extraordinary items, the cumulative effect of accounting changes and federal income tax rate changes, and restructuring charges, each as defined by generally accepted accounting principles in the United States, and each as reported in the Company\u2019s financial statements (including accompanying footnotes and management\u2019s discussion and analysis); (B) reduced, as to the first year in the Performance Period (20XX), by $XXXXXX, as to the second year in the Performance Period (20XX), by $XXXXXX times the ratio of: the Company\u2019s 20XX consolidated personal lines homeowners net written premium plus commercial lines property net written premium plus 50% of commercial lines multi peril net written premium divided by the Company\u2019s 20XX consolidated personal lines homeowners net written premium plus commercial lines property net written premium plus 50% of commercial lines multi peril net written premium, and as to the third year in the Performance Period (20XX), by $XXXXXX times the ratio of: the Company\u2019s 20XX consolidated personal lines homeowners net written premium plus commercial lines property net written premium plus 50% of commercial lines multi peril net written premium divided by the Company\u2019s 20XX consolidated personal lines homeowners net written premium plus commercial lines property net written premium plus 50% of commercial lines multi peril net written premium; and (C) reduced by an amount intended, as of the date of this award, to approximate historical levels of credit losses (on an after-tax basis) associated with the Company\u2019s fixed income investments, determined by (i) multiplying a fixed factor, expressed as 2.25 basis points, by the amortized cost of the Company\u2019s fixed maturity investment portfolio at the beginning of each quarter during the relevant year in the Performance Period and (ii) adding the after-tax sum of the amounts resulting from (i) for such year in the Performance Period.", "id": "adjusted-operating-income", "examples": ["The wages that they will earn from overtime work will be those determined by Article 68.", "Holdings will not permit the ratio of (i) Adjusted Consolidated Debt to (ii) <strong>Adjusted Operating Income</strong> for any Test Period to be more than 3.95 to 1.00.", "For this purpose, the Adjusted EBITDA and <strong>Adjusted Operating Income</strong> for any partial fiscal year shall both be annualized (e.g., multiplied by 4/3 if the partial period is three quarters) before determining the Annual EBITDA Payout Factor for that fiscal year, and the EBITDA Payout Factor shall be determined by averaging however many full and partial fiscal years for which an Annual EBITDA Payout Factor shall have been determined.", "Holdings will not permit the ratio of (i) <strong>Adjusted Operating Income</strong> to (ii) Consolidated Cash Interest Expense for any Test Period to be less than 3.00 to 1.00.", "<strong>Adjusted Operating Income</strong> shall mean for any period the sum of (x) consolidated net income of Hovnanian for such period, (y) to the extent deducted in arriving at such net income, consolidated income taxes, consolidated interest expense, Letter of Credit Fees, depreciation, amortization, non-cash valuation charges or adjustments and (z) cash distributions received by any Loan Party from Non-Restricted Persons during such period.", "Notwithstanding the foregoing, in the event of a Change in Control, or in the event Participant\u2019s continuous Service is terminated due to Participant\u2019s death or Permanent Disability (a \u201cQualifying Termination\u201d), the Performance Period will be deemed to end upon the first to occur of the consummation of the Change in Control (the \u201cClosing\u201d) or the date of the Qualifying Termination for purposes of calculating the Company\u2019s <strong>Adjusted Operating Income</strong>.", "Any distribution made pursuant to this Section shall be made in a manner consistent with Section 6.5, including, but not limited to, all notice and consent requirements of Code \u00a7\u00a7411(a)(11) and 417 and the Regulations thereunder.", "The number of Restricted Stock Units that become eligible to vest (the \u201cEligible Restricted Stock Units\u201d) will depend upon the Company\u2019s <strong>Adjusted Operating Income</strong> as of the Period End Date, as described herein.", "For the Performance Period, the Company achieves Currency Neutral Net Revenue of $____ and <strong>Adjusted Operating Income</strong> of $____.", "The Company and other Loan Parties will cause, for each Quarter, the ratio of Annual <strong>Adjusted Operating Income</strong> for the period ending with such Quarter to Annual Total Interest Expense for the period ending with such Quarter to be at least 2.50 to 1.00 at all times during such periods."], "related": [["consolidated-operating-income", "Consolidated Operating Income", "Consolidated Operating Income"], ["adjusted-operating-cash-flow", "Adjusted Operating Cash Flow", "Adjusted Operating Cash Flow"], ["adjusted-net-operating-income", "Adjusted Net Operating Income", "Adjusted Net Operating Income"], ["net-operating-income", "Net Operating Income", "Net Operating Income"], ["operating-income", "Operating Income", "Operating Income"]], "related_snippets": [], "updated": "2026-03-29T04:25:46+00:00"}, "json": true, "cursor": ""}}