Company: LGN
Filing Date: 2025-05-14
Form Type: DRS/A
Source: 0000950123-25-005247
Chunk: 212

Company: Legence Corp.
Filing Date: 2025-05-14
Form: DRS/A
Chunk 212
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 Aggregator I pursuant to which it (including certain permitted transferees thereof) may, subject to the terms of the Exchange Agreement and the
Legence Holdings LLC Agreement, exchange its LGN Units, along with a corresponding number of shares of Class B Common Stock, for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock
splits, stock dividends and reclassifications. At our election we may give the exchanging LGN Unit Holders, including Aggregator I, cash in an amount equal to the value of such Class A Common Stock instead of shares of Class A Common Stock. The
Exchange Agreement also provides such LGN Unit Holders will not have the right to exchange LGN Units if we or Legence Holdings determine that such exchange would be prohibited by law or regulation. We or Legence Holdings may impose additional
restrictions on any exchange that either of us determines to be necessary or advisable so that Legence Holdings is not treated as a “publicly traded partnership” for U.S. federal income tax purposes. As a LGN Unit Holder exchanges LGN
Units, along with a corresponding number of shares of Class B Common Stock, for shares of Class A Common Stock, the number of LGN Units held by us will be correspondingly increased as we acquire the exchanged LGN Units. In accordance with the
Exchange Agreement, any LGN Unit Holder who surrenders all (or a portion) of its LGN Units for exchange must concurrently surrender all (or an equal portion of) shares of Class B Common Stock held by it (including fractions thereof) to Legence
Holdings.

Tax Receivable Agreement

We will enter into a Tax Receivable Agreement with Aggregator I and Aggregator II, as the initial TRA Members, and any other TRA Members that
may from time to time become party to such agreement following the consummation of this offering. This agreement generally provides for the payment by us to the TRA Members of 85% of the net cash savings, if any, in U.S. federal, state and local
income tax that we (a) actually realize with respect to taxable periods ending after this offering or (b) are 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