Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 168

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 168
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 the government customer, but the Company may be exposed to loss for the proportion of work yet to be accepted by the government. In addition, reputational harm may result from
the termination of a contract for default that could impact a contractor’s ability to obtain new government contract awards. Violations of specific laws or regulations including ethical requirements could lead to fines, contract termination and
the possibility of being suspended or debarred for

113

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

purposes of receiving future government contract awards. A small portion of the Company’s work requires one of the Company’s brands to maintain security clearances, both for itself and
for certain employees, which the government has substantial discretion in maintaining in the future.

Anti-Corruption and Trade Regulations. Some of the components and materials used in our business are purchased from foreign parties, such as steel and aluminum. In connection with such purchases, we may be subject to anti-corruption laws prohibiting bribery of both
domestic and foreign government officials, including the U.S. FCPA, as well to the restrictions imposed by economic sanctions regulations or sourcing and transportation requirements.

Project-Specific Regulations. From time to time, we may take on projects that require us to comply with project-specific rules or
requirements, including regulations relating to the handling, treatment, storage and disposal of hazardous materials, regulations relating to aviation activities, limitations on the availability or sourcing of materials or components for our
clients’ projects, public health regulations, or regulations regarding the engagement of suppliers and subcontractors that meet diverse-ownership or disadvantaged-business requirements. For example, our projects involving healthcare facilities
have in the past required any personnel assigned to those projects to receive certain vaccines. Project-specific requirements may cause delays in initiating or completing such projects as we seek to hire qualified personnel or acquire appropriate
materials. Further, our relative unfamiliarity with certain regimes may increase our risk of noncompliance.

Failure to comply with
applicable regulations, however, could cause delays, subject us to lawsuits, substantial fines, revocation of our operating licenses, and/or give rise to termination or cancellation rights under our contracts or disqualify us from future bidding
opportunities, among other things. Further, we incur substantial costs in complying with, and monitoring our compliance with applicable rules and regulations. See the sections titled “Risk Factors—Risks Related to Regulations” and
“Risk Factors—Risks Related to the Environment,