SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS
Document Type: DRS
Date Filed: 2026-02-17
Accession Number: 0001193125-26-054926
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526054926/filename1.htm

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is dependent on the ability of ER Holdings to make distributions to us. The ability of ER Holdings to make such distributions will be subject to, among other things, restrictions of law or in the agreements governing our debt. If we are unable to make payments under the Tax Receivable Agreement for any reason, such payments will be deferred and will accrue interest until paid. Additionally, we shall be required to indemnify and reimburse the “TRA Representative” who will represent certain TRA Beneficiaries under the Tax Receivable Agreement, for all costs and expenses, including legal and accounting fees and any other costs arising from claims in connection with the TRA Representative’s duties under the Tax Receivable Agreement, provided, the TRA Representative has acted reasonably and in good faith in incurring such expenses and costs. It is expected that , in his capacity as , will serve as the TRA Representative.

Payments under the Tax Receivable Agreement will be based on the tax reporting positions that we
determine. Although we are not aware of any material issue that would cause the IRS to challenge a tax basis increase, we will not, in the event of a successful challenge, be reimbursed for any payments previously made under the Tax Receivable
Agreement (although we would reduce future amounts otherwise payable to a TRA Beneficiary under the Tax Receivable Agreement to the extent such TRA Beneficiary has received excess payments). No assurance can be given that the IRS will agree with our
tax reporting positions, including the allocation of value among our assets. As a result, in certain circumstances, payments could be made under the Tax Receivable Agreement significantly in excess of the benefit that we actually realize. We may not
be able to recoup those payments, which could adversely affect our financial condition and liquidity.

Generally, holders
of rights under the Tax Receivable Agreement (including the right to receive payments) may not transfer their rights to another person without our written consent, except that all such rights may be transferred to another person to the extent that
the corresponding Class B Units of ER Holdings are transferred in accordance with the A&R LLCA.

Limited
Liability Company Agreement

In connection with the IPO and the Reorganization, the members of ER Holdings will
amend and restate the Limited Liability Company Agreement of ER Holdings. In our capacity as the managing member (or as the owner of the managing member), we will control all of ER Holdings’s business and affairs. We will hold all of the
Class A Units of ER Holdings. Holders of Class A Units generally will be entitled to one vote per unit with respect to all matters as to which members are entitled to vote under the A&R LLCA. No person will have any voting rights in ER
Holdings on account of the Class B Units, except for the right to approve amendments to the A&R LLCA that adversely affect the rights of holders of Class B Units. Each Class A Unit and Class B Unit will have the same economic
rights per interest.

Following the IPO, any time we issue a share of Class A common stock for cash, the net proceeds
received by us will be promptly used to acquire a Class A Unit unless used to settle an exchange of a Class B Unit for cash. Any time we issue a share of Class A common stock upon an exchange of a Class B Unit or settle such an
exchange for cash, as described below, we will contribute the exchanged interest to ER Holdings and ER Holdings will issue to us a Class A Unit. If we issue other classes or series of equity securities, ER Holdings will issue to us an equal
amount of equity securities of ER Holdings with designations, preferences and other rights and terms that are substantially the same as our newly issued equity securities. Conversely, if we retire any shares of Class A common stock (or equity
securities of other classes or series) for cash, ER Holdings will, immediately prior to such retirement, redeem an equal number of Class A Units (or its equity securities of the corresponding

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classes or series) held by us, upon the same terms and for the same price, as the shares of our Class A common stock (or equity securities of such other classes or series) are retired. In
addition, membership interests of ER Holdings, as well as our common stock, will be subject to equivalent stock splits, dividends, reclassifications and other subdivisions.

The A&R LLCA will also entitle certain Continuing Equity Unitholders to exchange their Class B Units for shares of our
Class A common stock on a one-for-one basis or, at our election in our sole discretion, for cash. The exchange ratio is subject to appropriate adjustment by us in the event Class A Units are issued to us without issuance of a corresponding number of
shares of Class A common stock or in the event of certain reclassifications, reorganizations, recapitalizations or similar transactions.

The A&R LLCA will permit holders of the Class B Units to exercise their exchange rights subject to certain reasonable
timing procedures and other conditions. The A&R LLCA will provide that a holder will not have the right to exchange Class B Units if we determine that such exchange would be prohibited by law or regulation or would violate other agreements with
us, ER Holdings or any of their subsidiaries to which the holder is subject. We intend to impose additional restrictions on exchanges that we determine to be necessary or advisable so that ER Holdings is not treated as a “publicly traded
partnership” for U.S. federal income tax purposes.

The A&R LLCA also provides for mandatory exchanges under
certain circumstances, including at the option of US, if the number of Class A Units and Class B Units outstanding and held by its members (other than those held by us) is less than 15% of the outstanding Class A Units and Class B Units of ER
Holdings or in the discretion of us, with the consent of holders of at least 50% of the outstanding Class B Units.

will have the right to determine when distributions will be made to holders of interests and the amount of any such distributions, other than with respect to tax distributions as described below. If a distribution is authorized, except as described
below, such distribution will be made to the holders of Class A and Class B Units. Tax distributions to the Class A and Class B Units will be made on a pro rata basis in accordance with the number of units held by such
holder. No adjustments to the redemption or exchange ratio of interests in ER Holdings for shares of our Class A common stock will be made as a result of either (i) any cash distribution by us or (ii) any cash that we retain and do
not distribute to our stockholders. To the extent that we do not distribute such excess cash as dividends on our Class A common stock and instead, for example, hold such cash balances or lend them to ER Holdings, holders of interests in ER
Holdings would benefit from any value attributable to such cash balances as a result of their ownership of Class A common stock following a redemption or exchange of their interests in ER Holdings.