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|  | • | “Continuing Equity Owners” refers collectively to the owners of LLC Interests in Smith Douglas Holdings LLC prior to the consummation of the Transactions, who are also                holders of LLC Interests and our Class B common stock following consummation of the Transactions, including the Founder Fund and GSB Holdings, who may exchange at each of their respective options, in whole or in part from time to time,                their LLC Interests, as applicable, for, at our election (determined solely by our independent directors (within the meaning of the Exchange listing rules) who are disinterested), cash or newly-issued shares of our Class A common stock. In                connection with an exchange of LLC Interests, a corresponding number of shares of Class B common stock shall be immediately and automatically transferred to Smith Douglas Homes Corp. for no consideration and canceled. |
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|  | • | “DGCL” refers to the General Corporation Law of the State of Delaware |
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|  | • | “Exchange” refers to the New York Stock Exchange. |
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|  | • | “Exchange Act” refers to the Securities Exchange Act of 1934, as amended |
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|  | • | “Founder Fund” refers to The Bradbury Family Trust II A U/A/D December 29, 2015, for which our founder and Executive Chairman, Tom Bradbury, is co-trustee. |
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|  | • | “GSB Holdings” refers to GSB Holdings LLC, for which our Chief Executive Officer, President, and Vice Chairman, Greg Bennett, is the sole member and manager. |
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|  | • | “IPO” refers to our initial public offering, which we completed on January 16, 2024. |
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|  | • | “LLC Interests” refers to the membership units of Smith Douglas Holdings LLC, including those that we purchased with the net proceeds from the IPO. |
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|  | • | “Securities Act” refers to the Securities Act of 1933, as amended. |
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|  | • | “Sunset Date” refers to the date upon which the aggregate number of shares of Class B common stock then outstanding is less than 10% of the aggregate number of shares                of Class A common stock and Class B common stock then outstanding. |
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|  | • | “Transactions” refers to the organizational transactions described in our Annual Report on Form 10-K. |
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|  | • | 250,000,000 shares of Class A common stock, par value $0.0001 per share; |
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|  | • | 100,000,000 shares of Class B common stock, par value $0.0001 per share; and |
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|  | • | 10,000,000 shares of preferred stock, par value $0.0001 per share. |
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