Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 321

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 321
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 any further action by the debtor entity or any other party. The automatic stay

<div align='center'>F-76</div>

### COMPASS DIVERSIFIED HOLDINGS

### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
remains in place until resolution of the bankruptcy case, or until otherwise waived by the debtor. The automatic stay generally protects only the debtor and does not usually extend to non-debtor parties who may be the subject of claims or litigation, including co-defendants named in litigation where Lugano is also defendant. In certain circumstances, a court may extend the stay to non-debtors if the debtor entity is a necessary party to the action. Thus, upon the filing of its bankruptcy petition, the automatic stay will immediately go into effect and prohibit further litigation against Lugano in courts outside of the Bankruptcy Court but will not necessarily prohibit continuation of actions against the Company in Lugano-related matters.

#### Exit Costs
During 2024, Arnold relocated two of its facilities located in Marengo, Illinois into one combined facility in Woodstock, Illinois. Arnold recorded $ 9.9million in exit costs related to the move of which $ 9.3million is recorded in selling, general and administrative expense and $ 0.6million is recorded in costs of revenues in the consolidated statement of operations in the year ended December 31, 2024. An additional $ 2.9million in expense was incurred related to the move to the new facility that were not classified as exit costs, for total expense of approximately $ 13.0million in the year ended December 31, 2024. The exit from the Marengo facility was substantially complete at December 31, 2024.

Note Q — Related Party Transactions (As Restated)

The LLC has entered into related party transactions with its Manager, CGM, and Sostratus LLC, an affiliate of CGM, including the following:

• Management Services Agreement

• LLC Agreement

• Integration Services Agreements

• Cost Reimbursement and Fees

Management Services Agreement

The LLC entered into a MSA with CGM effective May 16, 2006, as amended. Our Chief Executive Officer is a the managing member of CGM. The MSA, as in effect for fiscal year 2024, provides for, among other things, CGM to perform services for the LLC in exchange for a management fee paid quarterly and equal to 0.5% of the LLC’s adjusted net assets, as defined in the