Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 244

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 244
---
 assumptions to determine
the fair value of stock-based awards. The expected life assumption represents the period of time the interests are expected to be outstanding while the risk-free rate is based on the U.S. Treasury yield for a term consistent with the expected life.
The expected volatility assumption is based on the volatility of guideline public companies, adjusted for the Company’s size and leverage. Since the Parent’s interests do not have a provision for dividends, the Company’s expected
dividend yield assumption is nil.

Once vested, the holders of the Series A Profits Interests may participate in distributions of the Company’s
earnings, assets and properties upon liquidation or a distribution as directed by the Parent’s board of directors. The proceeds are distributed first to the holders of Common Interests until their unreturned contributions are reduced to zero,
and thereafter to the holders of vested Series A Profits Interests and Common Interests pro rata based on their aggregate percentage interests (taking into account any applicable participation thresholds). Please refer to “” for additional information regarding Common Interests. The Series A Profits Interests are subject to certain forfeiture and repurchase provisions in the event of interest holder termination.

F-16

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

Legence Holdings LLC and Subsidiaries

Notes to Consolidated Financial Statements

Parent issued Restricted Series C Common Interests to certain employees. Restricted Series C Common Interests
participate in distributions alongside Common Interests and are subject to the same forfeiture and repurchase provisions as the Series A Profits Interests. Holders of Restricted Series C Common Interests must repay any distributions received on
unvested Restricted Series C Common Interests within 15 days of forfeiture.

Please refer to “” for
additional information and further disclosures regarding stock-based compensation.

Income Taxes

Parent is treated as a partnership for federal and state income tax purposes and indirectly owns 100% of the shares of multiple corporations. As a result, the
members of Parent are taxed individually on their proportionate share of Parent’s income or loss. The corporations indirectly owned by Parent are subject to entity-level taxation and, as a result, provision for federal, state and local income
taxes.

Income taxes for the corporations are provided for under the asset and liability method. Under this method, deferred tax assets and liabilities
are determined based on the difference between the Consolidated Balance Sheet and tax basis of assets and liabilities that will result in