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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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.

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 holds of those Units (including
us) on a pro rata basis in accordance with the number of those units held by such holder; however, under applicable tax rules, ER Holdings will be required to allocate net taxable income disproportionately to its members in certain
circumstances. The A&R LLCA will provide for periodic cash distributions, which we refer to as “tax distributions,” to the holders of the units generally equal to the taxable income allocated to each holder of units (with certain
adjustments) multiplied by an assumed tax rate. Generally, these tax distributions will be computed based on our estimate of the net taxable income of ER Holdings allocable per unit (based on the member which is allocated the largest amount of
taxable income on a per interest basis) multiplied by an assumed tax rate generally equal to the highest combined U.S. federal and applicable state and local tax rate applicable to any holder of Class B (taking into account certain other
assumptions, and subject to adjustment to the extent that state and local taxes are deductible for U.S. federal income tax purposes). The A&R LLCA generally will require tax distributions to holders of Class A and Class B Units to be
pro rata in accordance with the ownership of interests in ER Holdings; however, if the amount of tax distributions to be made exceeds the amount of funds available for distribution, we shall receive a tax distribution calculated using the
corporate tax rate, before the other members receive any distribution, and the balance, if any, of funds available for distribution shall be distributed first to the other partners pro rata in accordance with their assumed

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tax liabilities (also using the corporate tax rate), and then to all members (including us) pro rata until each member receives the full amount of its tax distribution. ER Holdings will
also make non-pro rata payments to us to reimburse us for corporate and other overhead expenses (which payments will not be treated as distributions under the A&R LLCA). Notwithstanding the foregoing, no distribution will be made pursuant
to the A&R LLCA to any member if such distribution would violate applicable law or result in ER Holdings or any of its subsidiaries being in default under any material agreement governing indebtedness.

The A&R LLCA is expected to provide that it may generally be amended, supplemented, waived or modified by us in our sole
discretion without the approval of any other holder of units, except that no amendment can adversely affect the rights of a holder of any class of units without the consent of holders of a majority of the units of such class.

The A&R LLCA will entitle the holders of Class B Units (and certain permitted transferees thereof) to exchange their
Class B Units for shares of Class A common stock on a one-for-one basis or, in our sole discretion, for cash.

The A&R LLCA will permit the holders of Class B Units to exercise their exchange rights subject to certain timing and
other conditions. The A&R LLCA will provide that a member 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 our or its subsidiaries, respectively, to which the member 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 will also provide 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 if the number of units
outstanding (other than those held by us) is less than a minimum percentage.

When a Class B Unit is surrendered for
exchange, it will not be available for reissuance.

The A&R LLCA contains certain drag-along and tag-along rights. If we or our affiliates desire to transfer membership interests that would constitute a change of control of ER Holdings to a third party that is not our affiliate, we may require each other member
of ER Holdings to either sell the same ratable share of its interests or to exchange its interests in ER Holdings. There are no dissenters’ rights, appraisal rights or similar rights in connection with the exercise of drag-along rights. If we
or our affiliates desire to transfer interests in ER Holdings to a third party that is not our affiliate, each other member will have the option to sell the same ratable share of its interests.

Proposed Transactions with Our Sponsor

Registration Rights Agreement

In connection with the closing of this offering, we will enter into a registration rights agreement with our Sponsor. We expect
that the agreement will contain provisions by which we agree to register under the federal securities laws the offer and resale of approximately    shares of our common stock by our Sponsor or certain of its affiliates or
permitted transferees under the registration rights agreement. These registration rights will be subject to certain conditions and limitations. We will generally be obligated to pay all of our registration expenses in connection with these
registration obligations, regardless of whether a registration statement is filed or becomes effective.

The form of the
registration rights agreement is filed as an exhibit to the registration statement of which this prospectus forms a part, and the foregoing description of the registration rights agreement is qualified by reference thereto.

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Historical Transactions with Our Sponsor

On December 27, 2024, pursuant to the 2024 Note Purchase Agreement, we issued the $10.0 million December 2024
Convertible Note to our Sponsor, with a maturity date of the later of (i) December 27, 2026 and (ii) for so long as the 2024 Credit Agreement remains outstanding, the date that is six months following the stated maturity date of the
2024 Credit Agreement. The December 2024 Convertible Note bears interest at 15% per annum, compounding quarterly, with PIK, meaning that accrued interest is added to the principal balance. Interest begins accruing on the issue date and continues
until the earlier of the note’s maturity or any event that triggers conversion or repayment prior to maturity, at the lender’s election. For more information on the December 2024 Convertible Note, see Note 11 – Debt, to our
consolidated financial statements included in this prospectus.

In January and February 2025, pursuant to the 2024 Note
Purchase Agreement, we issued a total of $10.0 million in Additional 2024 Convertible Notes to our Sponsor on substantially the same terms and conditions as the December 2024 Convertible Note.

In April 2025, in connection with the A&R Note Purchase Agreement, we amended and restated each of the December 2024
Convertible Note and the Additional 2024 Convertible Notes and issued an additional $15.3 million in 2025 Convertible Notes to our Sponsor.