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

Chunk 75 of 104
Word Count: 1500
Character Count: 9211

Document Content:

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; Table of Contents

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 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 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.

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

Table of Contents

(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.

The 2025 Convertible Notes bear interest at 15.0% per annum, compounding quarterly, with PIK. Interest begins accruing on the
original issue date of the applicable 2025 Convertible Note and continues until the earlier of the note’s maturity or any event that triggers conversion or repayment prior to maturity. Amounts outstanding under the 2025 Convertible Notes will
mature on December 27, 2026, with respect to 2025 Convertible Notes originally issued under the 2024 Note Purchase Agreement, or on April 29, 2027, with respect to 2025 Convertible Notes originally issued on or after the effective date of
the A&R Note Purchase Agreement. For more information on the A&R Convertible Notes, see Note 19 – Subsequent Events, to our consolidated financial statements included in this prospectus.

Policies and Procedures for Review of Related Person Transactions

Our board of directors will adopt a written related person transactions policy prior to the completion of this offering. Under
the SEC rules and this policy, a “Related Person Transaction” is a transaction, arrangement or relationship in which we or any of our subsidiaries was, is or will be a participant, the amount of which involved exceeds $120,000, and in
which any related person had, has or will have a direct or indirect material interest. For purposes of SEC rules and the policy, a “Related Person” means:

• any person who is, or at any time during the applicable period was, one of our executive officers or one of
our directors;

• any person who is known by us to be the beneficial owner of more than 5.0% of any class of our common stock;
and

• any immediate family member of any of the foregoing persons, which means any child, stepchild, parent,
stepparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law or sister-in-law of a director, executive officer or a beneficial owner of more than 5.0% of any class of our
common stock, and any person (other than a tenant or employee) sharing the household of such director, executive officer or beneficial owner of more than 5.0% of any class of our common stock.

In approving or disapproving any Related Person Transaction, we expect that our audit committee will consider the relevant
facts and circumstances available and deemed relevant to the audit committee. Any member of the audit committee who is a Related Person with respect to a transaction under review will not be permitted to participate in the deliberations or vote on
approval or disapproval of the transaction. We did not have a formal review and approval policy for related person transactions at the time of any transaction described above.