Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 324

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 324
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| March 31, 2024       |     |                              |  18,067 |     |                                           |  14,867 |     |                               |  3,200 |
| June 30, 2024        |     |                              |  18,864 |     |                                           |  14,283 |     |                               |  4,581 |
| September 30, 2024   |     |                              |  18,758 |     |                                           |  14,351 |     |                               |  4,407 |
| December 31, 2024    |     |                              |  19,453 |     |                                           |  13,951 |     |                               |  5,502 |
| Total                |     | $                            | 220,192 |     | $                                         | 181,971 |     | $                             | 38,221 |

(1) Management Fee incurred as reflected in the previously issued financial statements prior to the effect of discontinued operation, as applicable.

(2) Lugano was acquired on September 3, 2021. The overpayment of Management fee in 2021 is limited to the three months ended December 31, 2021.

LLC Agreement

The LLC agreement gives Holders the right to distributions pursuant to a profit allocation formula upon the occurrence of a Sale Event or a Holding Event. The Holders are entitled to receive and as such can elect to receive, if due pursuant to the profit allocation formula, an allocation payment upon the sale of a business (a "Sale Event") and upon election of the Holders during the 30-day period following the fifth anniversary of the date upon which we acquired a controlling interest in a business (Holding Event). Holders received $ 48.9million and $ 26.5million in distributions related to Sale and Holding Events that occurred during 2024 and 2023, respectively. There were no profit allocation payments during the year ended December 31, 2022. Refer to " Note K - Stockholders' Equity " for a description of the profit allocation payments.

The Lugano bankruptcy will be a Sale Event and any corresponding loss on such Sale Event will have the effect of reducing future allocation payments. The LLC Agreement also contains a mechanism to adjust future profit allocation payments by over-paid and under-paid profit distributions. The Company intends to cause future allocation payments to be adjusted, as necessary, to reflect the impact of the rest