SEC Filing Document

Company: ERock, Inc.
Ticker: 
CIK: 2110029
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2026-04-01
Accession Number: 0001193125-26-138217
Exchange: 
SIC Code: 3620
SIC Description: Electrical Industrial Apparatus
URL: https://www.sec.gov/Archives/edgar/data/2110029/000119312526138217/filename1.htm

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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’ 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. Any such exchanges generally will be completed on a one-for-one basis (or for
a corresponding amount of cash) in the manner described above (subject to any adjustment to the exchange ratio discussed above). Such exchanges therefore are not expected to result in a material economic benefit to the exchanging holder that
materially reduces the value of ERock, Inc. to other investors. As discussed above, however, it is possible that disparities will arise between the value of the

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Class B Units and the Class A common stock because any proceeds that we receive from ER Holdings and choose to retain or reinvest (instead of distributing to holders of our Class A
common stock) would increase the value of the Class A common stock but would not correspondingly increase the value of the Class B Units, and a Continuing Equity Unitholder who exchanges their Class B Units at a time when we have
retained or reinvested proceeds could receive Class A common stock that is worth more than the exchanged Class B Units. The A&R LLCA will include mechanisms designed to reduce or eliminate any such benefit. Specifically, the A&R
LLCA will provide that if we retain or reinvest any such proceeds (other than immaterial proceeds), ER Holdings may adjust either the number of Class B Units or the exchange ratio between Class B Units and Class A common stock to
maintain parity between the Class B Units and the Class A common stock (i.e., to ensure, to the extent possible, that the value of the Class B Unit exchanged equals the value of the shares of Class A Common Stock received in that
exchange). There can be no assurance, however, that these mechanisms will fully prevent in whole or in part the economic benefit described above. Holders of our Class A common stock should be aware that this structural feature of our
organization may result in the Continuing Equity Unitholders receiving disproportionate economic benefits relative to pre-exchange holders of our Class A common stock, particularly during periods of significant distributions by ER Holdings.
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 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. When a Class B Unit is surrendered for exchange, it will not be available for reissuance.

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 upon any transfer of membership interests to a person other than in a qualified transfer (as defined therein), in the case of violation of the transfer provisions of the A&R LLCA and, 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.

We 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.

The holders of interests in ER Holdings, including us, will incur U.S. federal, state and local
income taxes on their proportionate share of any taxable income of ER Holdings. The portion of the net profits and net losses of ER Holdings allocated to the holders of Class A and Class B Units generally will be allocated to the holders
of those Units (including us) on a pro rata basis in accordance with the number of those units held by such holder;

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