Common use of Restricted Payments; Restricted Investments Clause in Contracts

Restricted Payments; Restricted Investments. 7.2.6.1 The Loan Parties shall not pay or make Restricted Payments or Restricted Investments from and after January 31, 2001 which exceed in the aggregate the sum of: (i) $45,000,000; (ii) 50% of net income of Hovnanian (calculated and consolidated in accordance with GAAP) for all fiscal quarters commencing on February 1, 2001 and thereafter; and (iii) 50% of the proceeds (less costs of issuance) of any issuance or sale of equity of Hovnanian to any Person other than a Loan Party during all fiscal quarters commencing on February 1, 2001 and thereafter. 7.2.6.2 Each of the Loan Parties shall not enter into or carry out any transaction with any Affiliate (including purchasing property or services from or selling property or services to any Affiliate of any Loan Party or other Person but excluding transactions between Loan Parties) unless such transaction is not otherwise prohibited by this Agreement, is entered into in the ordinary course of business upon fair and reasonable arm's-length terms and is in accordance with all applicable Law. Without limiting the foregoing, the aggregate amount of all Indebtedness for owed or borrowed money owing to any Loan Party by any officer or director, or relative thereof, shall not exceed $4,000,000 in the aggregate owing at any one time and all such Indebtedness shall bear interest at a rate not less than the coupon rate on six month U.S. Treasury bills as of the date such Indebtedness is incurred. 7.2.6.3 The Loan Parties shall not pay or make (i) any Restricted Payment in respect of Dividends and Capital Stock Retirement during the period commencing on February 1, 2001 which, in the aggregate, exceed an amount equal to (x) $25,000,000 plus (y) 50% of Hovnanian's consolidated net income (calculated and consolidated in accordance with GAAP) generated after January 31, 2002 or (ii) any Restricted Payment in respect of the Subordinated Debt in excess of $25,000,000 in the aggregate after January 31, 2001. 7.2.7.

Restricted Payments; Restricted Investments. 7.2.6.1 The Loan Parties shall not pay or make Restricted Payments or Restricted Investments from and after January 31, 2001 which exceed in the aggregate the sum of: (i) $45,000,000; (ii) 50% of net income of Hovnanian (calculated and consolidated in accordance with GAAP) for all fiscal quarters commencing on February 1, 2001 and thereafter; and (iii) 50% of the proceeds (less costs of issuance) of any issuance or sale of equity of Hovnanian to any Person other than a Loan Party during all fiscal quarters commencing on February 1, 2001 and thereafter. 7.2.6.2 Each of the Loan Parties shall not enter into or carry out any transaction with any Affiliate (including purchasing property or services from or selling property or services to any Affiliate of any Loan Party or other Person but excluding transactions between Loan Parties) unless such transaction is not otherwise prohibited by this Agreement, is entered into in the ordinary course of business upon fair and reasonable arm's-length terms and is in accordance with all applicable Law. Without limiting the foregoing, the aggregate amount of all Indebtedness for owed or borrowed money owing to any Loan Party by any officer or director, or relative thereof, shall not exceed $4,000,000 in the aggregate owing at any one time and all such Indebtedness shall bear interest at a rate not less than the coupon rate on six month U.S. Treasury bills as of the date such Indebtedness is incurred. 7.2.6.3 The Loan Parties shall not pay or make (i) any Restricted Payment in respect of Dividends and Capital Stock Retirement during the period commencing on February 1, 2001 which, in excess of $25,000,000 in the aggregate, exceed an amount equal to (x) $25,000,000 plus (y) 50% of Hovnanian's consolidated net income (calculated and consolidated in accordance with GAAP) generated aggregate after January 31, 2002 2001 or (ii) any Restricted Payment in respect of the Subordinated Debt in excess of $25,000,000 in the aggregate after January 31, 2001. 7.2.7.

Restricted Payments; Restricted Investments. 7.2.6.1 7.2.6.1. The Loan Parties shall not pay or make Restricted Payments or Restricted Investments from and after January 31, 2001 which exceed in the aggregate the sum of: (i) $45,000,000; (ii) 50% of net income of Hovnanian (calculated and consolidated in accordance with GAAP) for all fiscal quarters commencing on February 1, 2001 and thereafter; and (iii) 50% of the proceeds (less costs of issuance) of any issuance or sale of equity of Hovnanian to any Person other than a Loan Party during all fiscal quarters commencing on February 1, 2001 and thereafter. 7.2.6.2 7.2.6.2. Each of the Loan Parties shall not enter into or carry out any transaction with any Affiliate (including purchasing property or services from or selling property or services to any Affiliate of any Loan Party or other Person but excluding transactions between Loan Parties) unless such transaction is not otherwise prohibited by this Agreement, is entered into in the ordinary course of business upon fair and reasonable arm's-length terms and is in accordance with all applicable Law. Without limiting the foregoing, the aggregate amount of all Indebtedness for owed or borrowed money owing to any Loan Party by any officer or director, or relative thereof, shall not exceed $4,000,000 in the aggregate owing at any one time and all such Indebtedness shall bear interest at a rate not less than the coupon rate on six month U.S. Treasury bills as of the date such Indebtedness is incurred. 7.2.6.3 7.2.6.3. The Loan Parties shall not pay or make (i) any Restricted Payment in respect of Dividends and Capital Stock Retirement during the period commencing on February 1, 2001 which, in excess of $25,000,000 in the aggregate, exceed an amount equal to (x) $25,000,000 plus (y) 50% of Hovnanian's consolidated net income (calculated and consolidated in accordance with GAAP) generated aggregate after January 31, 2002 2001 or (ii) any Restricted Payment in respect of the Subordinated Debt in excess of $25,000,000 in the aggregate after January 31, 2001. 7.2.7.