Company: CODI-PB
Filing Date: 2025-04-14
Form Type: DEF 14A
Source: 0001140361-25-013771
Chunk: 38

Company: Compass Diversified Holdings
Filing Date: 2025-04-14
Form: DEF 14A
Chunk 38
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’s current and former Chief Financial Officers, owned (directly or indirectly) approximately 54.0% of the equity interests in the Allocation Member at December 31, 2024, and approximately 62.0% of the equity interests in the Allocation Member at December 31, 2023. This ownership entitles them to receive distributions from the Allocation Member when and if the Allocation Member receives a profit allocation payment from the Company. Of the remaining 46.0% at December 31, 2024 and 38.0% at December 31, 2023, 5.0% was held by CGI Diversified Holdings LP, 5.0% was held by a former Company director, and the remaining percentage was held by the former founding partners and certain former employees of the Manager. For the years ended at December 31, 2024, and 2023, the Allocation Member received payments of $48.9 million and $26.5 million in respect of Sale Events and Holding Events that occurred during 2024 and 2023, respectively. There were no profit allocation payments during the year ended December 31, 2022. Integration Services Agreements In the first year of an acquired subsidiary’s ownership, our Manager provides integration services to the newly acquired company including, familiarizing the subsidiary management team with the Company’s periodic reporting, corporate governance and Sarbanes Oxley Act of 2002, as amended (“SOX”) obligations; familiarizing the subsidiary management team with the Company’s sustainability framework and establishing a baseline measurement of certain ESG factors identified by the Company; reviewing the new subsidiary’s policies and procedures and, where appropriate, aligning such policies and procedures with the Company and other of the Company’s subsidiaries; and assisting in establishing a new governance framework, including identifying and engaging outside and independent

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director resources to serve on the subsidiary’s board of directors, if appropriate. Prior to the MSA Amendment these services were performed pursuant to an integration services agreement entered into by such subsidiary and our Manager. The Honey Pot Company, which we acquired in 2024, entered into an integration services agreement pursuant to which it will pay our Manager an integration services fee of $3.5 million, in equal quarterly installments, over the twelve-month period which commenced on June 30, 2024. PrimaLoft, Inc., which we acquired in July 2022, entered into an