Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 24

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 24
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 of Class A Common Stock of Legence on                                                                                                   
 a one-for-one basis (the “Exchange Right”), subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications,                                                                                               
 or, at our option, an equivalent amount of cash. “Certain Relationships and Related Party Transactions—Exchange Agreement” contains more information.                                                                                               |

| Tax receivable agreement | Future exchanges of LGN Units for shares of Class A Common Stock are expected to result in increases in the tax basis of the tangible and                                                                                                                
 intangible assets of Legence Holdings. The anticipated basis adjustments are expected to increase (for tax purposes) our depreciation, depletion and amortization deductions and may also decrease our gains (or increase our losses) on future          
 dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. Such increased deductions and losses and reduced gains may reduce the amount of tax that we would otherwise be required to pay in the future. Prior 
 to the completion of this offering, we will enter into a Tax Receivable Agreement with the TRA Members. 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, asset sales and other forms of business combinations and certain changes to the composition of our board of directors) with respect to any      
 taxable periods ending on or after such early termination event, in each case, as a result of (i) our allocable share of existing tax basis acquired in connection with this offering and increases to such allocable share of existing tax basis;       
 (ii) our utilization of certain tax attributes of the Blocker Entities; (iii) Basis Adjustments; and (iv) certain additional tax benefits arising from payments made under the Tax Receivable Agreement. We will retain                                  |

12

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83

| the benefit of the remaining 15% of these cash savings, if any. If the Tax Receivable Agreement terminates early, we could be required to make a substantial, immediate lump-sum payment.