Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 21

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 21
---
 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 Legence to the TRA Members of 85% of the net cash savings, if any, in U.S. federal, state   
 and local income tax that Legence (a) actually realizes with respect to taxable periods ending after this offering or (b) is 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 the Legence 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) Legence’s allocable share of existing tax basis acquired in connection with this offering and increases to such allocable               
 share of existing tax basis; (ii) Legence’s 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. Legence will retain the benefit of the remaining 15% of these cash savings, if any. If the Tax Receivable                                                                                                                                     |

12

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

| Agreement terminates early, we could be required to make a substantial, immediate lump-sum payment. “Certain Relationships and Related Party 
 Transactions—Tax Receivable Agreement” contains more information.                                                                            |

| Listing and trading symbol | We intend to list our Class A Common Stock on the     under the symbol “LGN.” |

The information above excludes shares of Class A Common Stock reserved for issuance under our long-term incentive plan that we intend to adopt in connection with the completion of this offering