Company: LGN
Filing Date: 2025-09-02
Form Type: S-1/A
Source: 0001193125-25-193346
Chunk: 226

Company: Legence Corp.
Filing Date: 2025-09-02
Form: S-1/A
Chunk 226
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 transferees thereof) may, subject to the terms of the Exchange Agreement and the
Legence Holdings LLC Agreement, exchange its LGN

162

Units, along with a corresponding number of shares of Class B Common Stock, for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock
splits, stock dividends and reclassifications. At our election and solely from the net cash proceeds of a public offering or private sale of newly issued shares of Class A Common Stock, we may give the exchanging LGN Unit Holders, including Legence
Parent, cash in an amount equal to the value of such Class A Common Stock instead of shares of Class A Common Stock. The Exchange Agreement also provides such LGN Unit Holders will not have the right to exchange LGN Units if we or Legence Holdings
determine that such exchange would be prohibited by law or regulation. We or Legence Holdings may impose additional restrictions on any exchange that either of us determines to be necessary or advisable so that Legence Holdings is not treated as a
“publicly traded partnership” for U.S. federal income tax purposes. As a LGN Unit Holder exchanges LGN Units, along with a corresponding number of shares of Class B Common Stock, for shares of Class A Common Stock, the number of LGN
Units held by us will be correspondingly increased as we acquire the exchanged LGN Units. In accordance with the Exchange Agreement, any LGN Unit Holder who surrenders all (or a portion) of its LGN Units for exchange must concurrently surrender all
(or an equal portion of) shares of Class B Common Stock held by it (including fractions thereof) to Legence Holdings.

Tax Receivable Agreement

We will enter into a Tax Receivable Agreement with Legence Parent and Legence Parent II, as the initial TRA Members, and any other
TRA Members that may from time to time become party to such agreement following the consummation of this offering. This agreement generally provides for the payment by us to the TRA Members of 85% of the net cash savings, if any, in U.S. federal,
state and local income tax that we (a) actually realize with respect to taxable periods ending after this offering or (b) are deemed to realize in the event the Tax Receivable Agreement terminates early at our election, as a result of our
breach or upon a change of control (as defined under the Tax Receivable Agreement, which includes certain mergers