Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 194

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 194
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) second, to establish cash reserves for contingent or unforeseen liabilities; and (iii) third, to the members in proportion to the number of LGN Units owned
by each of them.

Amended and Restated Certificate of Incorporation

Our amended and restated certificate of incorporation will provide Blackstone with the right to designate or nominate a majority of the members
of our board of directors so long as it and its affiliates collectively beneficially own more than % of the outstanding shares of our Common Stock. When Blackstone and its affiliates collectively beneficially own less than
% of the outstanding shares of our Common Stock, they will have the right to generally designate or nominate a proportional number of directors to our board of directors until it and its affiliates collectively beneficially own less
than % of the outstanding shares of our Common Stock.

Registration Rights Agreement

In connection with the closing of this offering, we will enter into a registration rights agreement with certain of the Existing Owners
granting them registration rights. Under the registration rights agreement, we will agree to register the sale of shares of our Common Stock held by the Existing Owners under certain circumstances, and to provide such stockholders with certain
customary underwritten offering, block trade and piggyback rights.

Tax Receivable Agreement

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