Company: SDHC
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001982518-25-000012
Chunk: 35

Company: Smith Douglas Homes Corp.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 35
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 not eligible to receive long-term cash incentive bonuses.

#### Equity compensation
Prior to the IPO, we did not maintain an equity incentive plan for our service providers, and we did not grant equity or equity-based awards to our named executive officers.

In connection with the IPO we adopted, and our stockholders approved, the 2024 Incentive Award Plan (the “2024 Plan”) in order to facilitate the grant of cash and equity incentives to directors, employees (including our named executive officers) and our consultants and certain of our affiliates and to enable us to obtain and retain services of these individuals, which is essential to our long-term success.

IPO equity awards

Our board of directors approved the grant of restricted stock unit awards pursuant to the 2024 Plan to certain of our directors and employees, including Mr. Devendorf in connection with the IPO.

The dollar-denominated value approved by our board of directors of the award granted to Mr. Devendorf was $6,000,000 and the number of shares of our Class A common stock subject to such award was determined based on the IPO price per share of our Class A common stock.

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Mr. Devendorf’s award vested with respect to one-sixth of such award on January 16, 2025, and the remainder of the award will vest in substantially equal installments on each of the next five anniversaries of the closing date of the IPO, subject to his continued employment through the applicable vesting date. Additionally, Mr. Devendorf’s award will accelerate and vest in full upon a termination of his employment by us without “cause” (as defined in the 2024 Plan) or by the executive for “good reason” (as defined in the applicable executive’s employment agreement), in either case, that occurs within two years following a “change in control” (as defined in the 2024 Plan), subject to the timely execution and non-revocation of a release of claims in our favor.

Messrs. Bennett and Bradbury were not granted equity awards in 2024.

Long-Term Incentives

In fiscal year 2024, Messrs. Bennett and Devendorf were eligible to earn a long-term incentive award to be paid in restricted stock units (the “LTIP”). The executives’ LTIP target values were $2,000,000 and $500,000, respectively. Messrs. Bennett and Devendorf were eligible to earn up to 100%