Company: FOACW
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001193125-25-065614
Chunk: 56

Company: Finance of America Companies Inc.
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 56
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 represent indemnity holdback units (the “Indemnity Holdback Units”). The Indemnity Holdback Units are issuable to AAG/Bloom in certain increments on the second and third anniversary of the closing date of the AAG Transactions and, until such time, are subject to offset in the event of a claim for indemnification by the Company pursuant to the terms of the AAG Agreements (“Buyer Indemnification Claims”). As of December 31, 2024, the Indemnity Holdback Units have been reduced by 14,288 FOA Units to offset the Company’s losses incurred in connection with certain Buyer Indemnification Claims. Further, pursuant to the AAG Agreements, the Company agreed, for a period of three years following the closing date of the AAG Transaction, to fund costs and expenses arising from certain specified litigation liabilities (the “Specified Litigation Expenses”) in an aggregate amount up to $5 million (the “Litigation Expense Cap”). To the extent incurred, the Company is entitled to offset Specified Litigation Expenses in excess of $2.1 million and up to the Litigation Expense Cap against the Indemnity Holdback Units. As of December 31, 2024, the Company has paid $0.4 million of such Specified Litigation Expenses, without offset against the Indemnity Holdback Units.

As of December 31, 2024, AAG/Bloom owns 1,875,140 FOA Units (representing (a) 1,969,299 Closing FOA Units, plus (b) 705,841 Additional FOA Units issued to AAG/Bloom, minus (c) 800,000 Closing FOA Units already exchanged for 800,000 shares of Class A Common Stock), which FOA Units are exchangeable for 1,875,140 shares of Class A Common Stock pursuant to the Exchange Agreement. As of December 31, 2024, 699,938 FOA Units remain issuable (but are not already issued) to AAG/Bloom under the AAG Purchase Agreements (representing (a) 714,226 Indemnity Holdback Units, minus (b) 14,288 Indemnity Holdback Units already reduced from the Indemnity Holdback Units to offset the Company’s losses incurred in connection with certain Buyer Indemnification Claims), which FOA Units would be exchangeable for 699,