BrightView EXEMPT Consolidated Financial Statements l

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BrightView Acquisition Holdings, Inc. Notes to the Consolidated Financial Statements For the Years Ended December 31, 2016 and 2015 (in thousands) Statements of Operations based on the change in the deferred compensation obligation related to earnings credited to participants as well as changes in the fair value of diversified investments. The net increase/(decrease) in compensation expense recorded in selling, general and administrative expense for the years ended December 31, 2016 and 2015 was $660 and $(50), respectively. The diversified investments held in the trust were $9,060 and $8,067 as of December 31, 2016 and 2015, respectively, and are recorded at their fair value, based on quoted market prices. These investments are considered trading securities and therefore the changes in the fair value of the diversified assets are included in other income and expenses, net in the accompanying Consolidated Statements of Operations. The Company recorded an investment gain for the year ended December 31, 2016 of $660 and an investment loss of $50 for the year ended December 31, 2015. Multi-employer Pension Plans Certain designated craftsmen employed by one of the Company’s subsidiaries are participants in multi-employer collective bargaining agreements, which represent approximately 7.1% and 6.8% of the Company’s labor force at December 31, 2016 and December 31, 2015 respectively. These agreements provide defined benefit pension plans for these employees. Contributions to such plans are determined in accordance with the provisions of negotiated labor contracts and are generally based on the number of hours worked. The Company contributed approximately $4,843 and $3,465 to these plans for the year ended December 31, 2016 and December 31, 2015, respectively. These contributions are recorded in Cost of services provided in the accompanying Consolidated Statements of Operations. Risks of participating in a multi-employer plan differs from single-employer plans for the following reasons: (1) assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers; (2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (3) if a participating employer stops participating, it may be required to pay those plans an amount based on the unfunded status of the plan, referred to as the withdrawal liability. The Company has no intention of withdrawing from any multi-employer plans or taking any other action that could result in an effective termination or reportable event for any of the plans. Each multi-employer plan in which the Company participates has a certified zone status as currently defined by the Pension Protection Act of 2006. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. The following are descriptions of the zone status types based on criteria established under the Internal Revenue Code (IRC): •“Red” Zone – Plan has been determined to be in “critical status” and is generally less than 65% funded. A rehabilitation plan, as required under the IRC, must be adopted by plans in the “red” zone. Plan participants may be responsible for the payment of surcharges, in addition to the contribution rate specified in the applicable collective bargaining agreement, for a plan in “critical status”, in accordance with the requirements of the IRC. •“Yellow” Zone – Plan has been determined to be in “endangered status” and is generally less than 80% funded. A funding improvement plan, as required under the IRC, must be adopted. •“Green” Zone – Plan has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. 22 Confidential