Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 76

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 76
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 have on the market price of our Class A Common Stock.

We will be required to make payments under the Tax Receivable Agreement for certain tax benefits we may claim, and the amounts of such payments could be significant.

In connection with the consummation 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 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.

The payment obligations under the Tax Receivable Agreement are our obligations and not obligations of Legence
Holdings. For purposes of the Tax Receivable Agreement, cash savings in tax generally are calculated by comparing our actual tax liability to the amount we would have been required to pay had we not been able to utilize any of the tax benefits
subject to the Tax Receivable Agreement. The amounts payable, as well as the timing of any payments, under the Tax Receivable Agreement are dependent upon future events and assumptions, including the timing of the exchanges of LGN Units along with
surrendering a corresponding

48

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

number