Compass Diversified Holdings

The risk factors disclosed in our 2025 Form 10-K for the fiscal year ended December 31, 2025 should be considered together with information included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 and should not be considered the only risks to which we are exposed. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial also may impair our business, including our results of operations, liquidity and financial condition. We believe there have been no material changes from the risk factors previously disclosed.

Second Amended and Restated Employment Agreement

On November 2, 2026, the Manager and Stephen Keller, who is seconded by the Manager to the Company to serve as its Chief Financial Officer, entered into a Second Amended and Restated Employment Agreement (the “Amended Employment Agreement”), effective as of November 2, 2026. The Amended Employment Agreement amends and restates the First Amended and Restated Employment Agreement (the “Prior Employment Agreement”) entered on January 13, 2025, by and between the Manager and Mr. Keller, to, among other things, (i) provide Mr. Keller with a continuity award of $300,000, subject to his continued employment through the date of the timely and accurate filing of the Company’s Annual Report on Form 10-K for the fiscal year 2026 and certain other conditions, and another continuity award of $300,000, subject to his continued employment through December 31, 2027 and certain other conditions, and (ii) reflect Mr. Keller’s current annual base salary of $612,000 and increase his severance payment upon termination by the Manager (other than for death, disability or proper cause) or by Mr. Keller for good reason to 100% of his base salary.

The preceding description is only a summary of the Amended Employment Agreement and the changes made to the Prior Employment Agreement, does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended Employment Agreement, which is attached hereto as Exhibit 10.3 and incorporated herein by reference.

Fourth Amended and Restated Trust Agreement & Seventh Amended and Restated Operating Agreement

On November 1, 2026, (i) the Company, as sponsor, BNY Mellon Trust of Delaware, as Delaware trustee, and Elias J. Sabo and Stephen Keller, as regular trustees, entered into the Fourth Amended and Restated Trust Agreement of the Trust (the “Amended Trust Agreement”) to amend the Third Amended and Restated Trust Agreement of the Trust, dated as of August 3, 2021 and as further amended, and (ii) the Trust, as the holder of all trust interests of the Company, and Sostratus LLC, as the holder of all Allocation Interest of the Company, entered into the Seventh Amended and Restated Operating Agreement of the Company (the “Amended LLC Agreement” and, together with the “Amended Trust Agreement,” the “Amendments”) to amend the Sixth Amended and Restated Operating Agreement of the Company, dated as of August 3, 2021 and as further amended.

The Amendments, among other things, updated the provisions related to the notice requirement for shareholders to nominate directors for election by the shareholders of the Trust, including (i) requiring director nominees (other than as a director appointed by the holder of the Allocation Interests) to make themselves available for interviews with the Company’s board of directors or its committees if requested; (ii) requiring additional disclosures and representations from such director nominees, proposing shareholders and/or certain associated persons, with further updates such that information provided is true and correct in all material respects as of (a) the record date for the shareholders’ meeting and (b) the date that is 10 business days prior to the meeting; and (iii) requiring the proposing shareholders and certain associated persons to comply with Rule 14a-19 under the Exchange Act in soliciting proxies in support of director nominees, along with certain evidence for such compliance.

The foregoing brief descriptions of the changes in the Amendments to the procedures by which shareholders may recommend nominees to the Company's board of directors do not purport to be complete and are qualified in their entirety by reference to the full text of the Amended Trust Agreement and the Amended LLC Agreement, which are incorporated herein by reference.