Patrick O. Zalupski - Oct 9, 2024 Form 4 Insider Report for Dream Finders Homes, Inc. (DFH)

Signature
/s/ Robert E. Riva by Power of Attorney
Stock symbol
DFH
Transactions as of
Oct 9, 2024
Transactions value $
-$1,113,686
Form type
4
Date filed
10/11/2024, 04:34 PM
Previous filing
Sep 25, 2024
Next filing
Oct 24, 2024

Transactions Table

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Ownership Footnotes
transaction DFH Class A common stock, par value $0.01 per share Sale -$562K -17K -1.9% $33.09 877K Oct 9, 2024 Direct F1, F2
transaction DFH Class A common stock, par value $0.01 per share Sale -$552K -17.1K -1.95% $32.20 860K Oct 10, 2024 Direct F2, F3
transaction DFH Class A common stock, par value $0.01 per share Sale -$33 -1 0% $32.65 860K Oct 10, 2024 Direct F2
holding DFH Class B common stock, par value $0.01 per share 57.8M Oct 9, 2024 Direct F4
holding DFH Class B common stock, par value $0.01 per share 809K Oct 9, 2024 By Trust F4, F5
holding DFH Class B common stock, par value $0.01 per share 596K Oct 9, 2024 See Footnote F4, F6

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type Sym Class Transaction Value $ Shares Change % * Price $ Shares After Date Underlying Class Amount Exercise Price Ownership Footnotes
holding DFH Prepaid Variable Forward Sale Contract 1M Oct 9, 2024 Class A Common Stock 1M Direct F7, F8, F9, F10, F11
* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Buy Plan / Sale Plan: These are also open market purchases/sales of shares, but in this case the transaction is part of a trading plan. Rule 10b5-1 allows insiders to setup a trading plan to buy/sell stocks over a certain period of time. Since the purchases/sales are predetermined, this protects the insiders from violating insider trading law.

Transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Explanation of Responses:

Id Content
F1 The price reported in Column 4 is a weighted average price. The prices sold ranged from $32.80 to $33.68. The reporting person will provide the issuer, any security holder of the issuer, or the SEC staff, upon request, full information regarding the number of shares sold at each separate price within the range.
F2 Includes 6,141 shares held in a 401(k) account.
F3 The price reported in Column 4 is a weighted average price. The prices sold ranged from $31.61 to $32.59. The reporting person will provide the issuer, any security holder of the issuer, or the SEC staff, upon request, full information regarding the number of shares sold at each separate price within the range.
F4 Each share of Class B Common Stock is convertible at the option of the reporting person into one share of Class A Common Stock ("Common Stock") of Dream Finders Homes, Inc. and has no expiration date.
F5 Trust established for the benefit of the reporting person's children.
F6 Shares held by POZ Holdings, Inc., which is controlled by the reporting person.
F7 The reporting person entered into a prepaid variable forward sale contract with an unaffiliated third party buyer whereby the reporting person pledged an aggregate of 1,000,000 shares (the "Pledged Shares") of Dream Finders Homes, Inc. Class B common stock to secure its obligations under the contract, and retained dividend and voting rights in the Pledged Shares during the term of the pledge.
F8 The contract obligates the reporting person to deliver to the buyer, on the applicable settlement date for each of the 10 components, up to one hundred percent (100%) of the number of Pledged Shares for such component or, at the reporting person's option, an equivalent amount of cash. The number of shares of Common Stock to be delivered to the buyer on the settlement date (or on which to base the amount of cash to be delivered to the buyer on the settlement date) is to be determined as follows: (a) if the volume-weighted average price of the Common Stock on the designated valuation date for the applicable component within the period from 8/16/2027 to 8/27/2027 (each, a "Settlement Price") is less than or equal to $22.12 (the "Floor Price"), the reporting person will deliver to the buyer all of the Pledged Shares for the applicable component;
F9 (Continued from Footnote 8) (b) if such Settlement Price is greater than the Floor Price but less than or equal to $55.30 (the "Cap Price"), the reporting person will deliver to the buyer the number of shares equal to one hundred percent (100%) of the Pledged Shares for the applicable component multiplied by a fraction, the numerator of which is the Floor Price and the denominator of which is such Settlement Price and
F10 (Continued from Footnote 9) (c) if such Settlement Price is greater than the Cap Price, the reporting person will deliver to the buyer the number of shares equal to one hundred percent (100%) of Pledged Shares for the applicable component multiplied by a fraction, the numerator of which is the Floor Price plus the excess of such Settlement Price over the Cap Price, and the denominator of which is such Settlement Price.
F11 In connection with the entry into the forward contract described in Footnote (7), the reporting person is entitled to receive an upfront cash payment of $16,064,650.00.