Company: LGN
Filing Date: 2025-07-15
Form Type: DRS/A
Source: 0000950123-25-006399
Chunk: 110

Company: Legence Corp.
Filing Date: 2025-07-15
Form: DRS/A
Chunk 110
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-through income from 
 Legence Holdings, as well as corporate taxes that are incurred by its regarded subsidiaries. As described in “Corporate Reorganization,” upon completion of the Corporate Reorganization, Legence will become the managing member of Legence        
 Holdings. Legence, as managing member, will operate and control all of the business and affairs of Legence Holdings. As a result of the Transactions, Legence will own (including through the Pubco Subsidiaries) approximately % of the economic   
 interest in Legence Holdings and will have (including through the Pubco Subsidiaries)  % of the voting power and will control the management of Legence Holdings. Immediately following the completion of the Corporate Reorganization, the         
 ownership percentage held by noncontrolling interest will be approximately  %.                                                                                                                                                                      |

Represents an adjustment to equity reflecting (i) the par value for Class A Common Stock and Class B Common Stock, (ii) a decrease in $ of LGN Unit Holders’ interest to the noncontrolling interests related to the % economic interest held by the Existing Owners and (iii) reclassification of LGN Unit Holders’ interest of $ to additional paid-in capital.

| c) | Prior to the completion of the Offering Transactions, we will enter into a Tax Receivable Agreement with                                                                                                                                                 
 certain of our Existing Owners that provides for the payment by us to the TRA Members of 85% of the realized benefits, if any, as a result of increases in our share of existing tax basis and adjustments to the tax basis of the assets of Legence     
 Holdings as a result of sales or exchanges of LGN Units, and our utilization of certain tax attributes of the Blocker Entities and certain other tax benefits related to entering into the Tax Receivable Agreement, including tax benefits attributable 
 to payments under the Tax Receivable Agreement. Due to the uncertainty in the amount and timing of future redemptions or exchanges of LGN Units by the LGN Unit Holders, the unaudited pro forma consolidated financial information assumes that no      
 redemptions or exchanges of LGN Units have occurred and, therefore, no increases in tax basis in Legence Holdings’ assets or other tax benefits that may be realized thereunder have been assumed in the unaudited pro forma consolidated financial      
 information. The Tax Receivable Agreement will be accounted for as a contingent liability, with amounts accrued when considered probable and reasonably estimable. The following are the Tax Receivable Agreement adjustments:                           |

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