Company: LGN
Filing Date: 2025-04-30
Form Type: DRS/A
Source: 0000950123-25-003868
Chunk: 205

Company: Legence Corp.
Filing Date: 2025-04-30
Form: DRS/A
Chunk 205
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 % economic interest in Legence (or % if the underwriters’ option to purchase additional shares is exercised in full and
after giving effect to the application of the net proceeds therefrom).

Each share of Class A Common Stock and Class B
Common Stock will entitle its holder to one vote on all matters to be voted on by stockholders. Holders of Class A Common Stock and Class B Common Stock will vote together as a single class on all matters presented to our stockholders for
their vote or approval, except as otherwise required by applicable law or by our amended and restated certificate of incorporation. We do not intend to list the Class B Common Stock on any stock exchange.

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

136

Confidential Treatment Requested by Legence Corp. Pursuant to 17 C.F.R. Section 200.83 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 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-sumpayment. “Certain Relationships and Related Party Transactions—Tax Receivable Agreement” contains more information. The Corporate Reorganization lacks economic substance under GAAP and therefore will be accounted for in a manner consistent with a reorganization of entities under common control. As a result, the consolidated financial statements of the Company will recognize the assets and liabilities received in the reorganization at their historical