Document:

EX-10.1

 Exhibit 10.1 

CONFIDENTIAL 
  

 
 FAFC LLC 

LIMITED LIABILITY COMPANY AGREEMENT 

 
 Dated as of May 16, 2022

 THE UNITS REPRESENTED BY THIS LIMITED LIABILITY COMPANY AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE WITH THE OTHER
RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN. 

  
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 THIS LIMITED LIABILITY COMPANY AGREEMENT OF FAFC LLC (this
“Agreement”) is entered into as of May 16, 2022 (the “Effective Date”), by and among (i) Club Sports Group LLC, a Delaware limited liability company (“CSG”),
(ii) F45 Training Holdings Inc., a Delaware corporation (“F45”), and (iii) each other Person admitted to FAFC LLC, a Delaware limited liability company (the “Company”), as a member and listed
on the Schedule of Members attached hereto from time to time (all such admitted Persons, collectively with CSG and F45, the “Members” and each, a “Member”). 

W I T N E S S E T H: 

WHEREAS, the Company was formed as a limited liability company on May13, 2022 pursuant to the Delaware Limited Liability Company
Act, as amended (the “Act”) by the filing of a Certificate of Formation (the “Certificate”) with the Secretary of State of the State of Delaware; and 

WHEREAS, the Members desire to set forth certain provisions in this Agreement to dictate the structure and governance of the Company.

 NOW, THEREFORE, in consideration of the promises and the agreements herein contained and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Members, intending to be legally bound, hereby agree as follows: 
 I.
FORMATION 
 1.1 Formation; Name; Office. The Company was organized and formed under and pursuant to the Act and is
conducted under the name FAFC LLC or such other name as the Members shall determine from time to time. The primary business office of the Company shall be located at such place or places the Members may from time to time designate. The Company and
the Members hereby approve, ratify and confirm all actions taken in executing, and filing with the Secretary State of the State of Delaware, the Company’s Certificate. 

1.2 Purposes. The purpose for which the Company has been formed is to make, hold and monetize certain loans (the
“Loans”) to prospective franchisees of F45 (or its subsidiaries, as applicable) (each a “Borrower”, and collectively, the “Borrowers”), secured by first priority senior liens on
the equity interests of such Borrower and all or substantially all assets of such Borrower and its subsidiaries (if applicable), subject to any exclusions to be mutually agreed (the “Collateral”), in each case, pursuant to
the terms and conditions set forth in the definitive documents executed and delivered by Borrowers and other parties identified therein to and for the benefit of the Company (collectively, the “Loan Documents”). The Company
may also acquire, hold, sell, transfer or otherwise monetize the Collateral (“Foreclosed Assets”; together with the Loans, the “Investments”). The Company may also engage in any other lawful act or
activity for which limited liability companies may be formed under the Act. 
 1.3 Duration. The term of existence of the Company
commenced on the date of the filing of the Certificate with the Secretary of State of the State of Delaware and shall cease on the soonest date after which all Investments are fully resolved or otherwise sold and all other Company matters related to
the Investments have been wound up, unless the Company is earlier dissolved in accordance with either the terms of this Agreement or the Act (the “Term”). 

  
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 1.4 Designated Agent. The designated agent of the Company upon whom process against
the Company may be served shall be set forth in the Certificate or any amendment thereof. The designated agent may be changed from time to time by the Members. If the Company’s designated agent shall ever resign, then the Members shall promptly
appoint a successor. 
 1.5 Title to the Property of the Company. Title to any and all property, real, personal or mixed, tangible or
intangible, owned by, or leased to, the Company (including all rights afforded under the Loan Documents) shall be held in the name of the Company or any wholly-owned subsidiary. No Member individually shall have any direct ownership in the property
of the Company. 
 II. CAPITAL CONTRIBUTIONS; UNITS 

2.1 Capital Contributions; Units. Limited liability company interests in the Company shall be represented by 100,000 common units (the
“Units”), all of which are hereby authorized by the Members. In no event shall the total Units exceed 100,000 unless agreed upon by the Members in writing. Each Member agrees to remit the initial capital contribution to fund
the Loans (each an “Initial Capital Contribution”) set forth opposite their name on the attached Schedule of Members (as such schedule may be amended from time to time pursuant to and in accordance with this Agreement, the
“Schedule of Members”) in exchange for the number of Units set forth therein, which shall be calculated based on a per Unit purchase price of $1,000. All Capital Contributions shall be made concurrently by the Members to the
Company on a 50% by CSG and 50% by F45 basis. The Units shall not be certificated unless otherwise determined in writing by the Members. The number of Units owned by each Member shall be set forth opposite each such Member’s name. The
percentage interests of the respective Members in the Company shall be referred to as the “Percentage Interests”, which, for each Member as of a particular time of determination, shall be a percentage equal to the quotient
obtained by dividing (x) the number of Units then held by such Member by (y) the number of Units then held by all Members (excluding any Units that are not vested). The number of Units and the Percentage Interest of each Member are subject
to adjustment in accordance with the terms and provisions of this Agreement. To the extent that any such adjustment is required pursuant to this Agreement, the Members acknowledge and agree that the Schedule of Members shall automatically be deemed
amended and restated to reflect the correct Units and Percentage Interests of each Member without further action by any of the Members. 

2.2 Additional Capital Contributions. 

(a) From time to time, additional capital contributions from the Members shall be necessary to (a) fund operating expenses
of the Company, (b) provide for the management of existing Investments or related expenses or, (c) to make or provide for funding of new Investments and expenses related thereto (each an “Additional Capital
Contribution” and together with each Initial Capital Contribution, each a “Capital Contribution”); provided, however, that (i) no Member shall be required to fund any Additional Capital Contributions after
the end of the Investment Period Termination Date (as defined below), and (ii) no Member shall be required to fund aggregate Capital Contributions in excess of fifty million dollars ($50,000,000.00) plus their pro rata share of any
administrative expenses incurred by the Company, including without limitation the preparation of tax returns, the audit of financial statements and legal expenses. 

  
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 (b) The Company shall direct the Servicer to prepare a monthly funding
schedule for requested Additional Capital Contributions (the “Monthly Funding Schedule”), which shall be updated from time to time based on the then-existing Investments and shall be delivered to the Members on the last day
of each month (the amount to be funded in a particular month pursuant to the Monthly Funding Schedule, the “Monthly Capital Call”). Such Additional Capital Contributions shall be used for the permitted
purposes of the Company described in Section 1.2, including the financing of new Loans approved by the Members (up to the per Loan limit described below). In addition, Servicer may also request that the Members fund
Additional Capital Contributions from time to time as reasonably required for the permitted purposes of the Company described in Section 1.2; provided, that any Additional Capital Contribution to be utilized to fund an
individual Loan to a Borrower in excess of $400,000 in the aggregate (an “Excess Loan Amount”) shall require the prior written approval of each of CSG and F45 (any such requested (and approved to the extent applicable)
amount, the “Additional Capital Call” and, together with the Monthly Capital Call, the “Capital Call”). Each Member shall be required to, and each Member agrees to, contribute its pro rata share of
such Additional Capital Contribution to the Company on a monthly basis in accordance with the Monthly Funding Schedule, in the case of a Monthly Capital Call, or within ten (10) days, in the case of an Additional Capital Call. If any Member (a
“Delinquent Member”) does not submit its Additional Capital Contribution upon the terms and in the time frame required (or, in the case of an Excess Loan Amount, either CSG or F45 but not both has approved the funding of such
Excess Loan Amount), then, in addition to the rights provided under Section 3.4 below (provided, that a Member electing not to approve an Excess Loan Amount shall not be considered a default under this Agreement), any other
Member that has submitted the full amount of its Additional Capital Contribution may submit the Delinquent Member’s Additional Capital Contribution (including its share of any Excess Loan Amount) in the Delinquent Member’s place, with
notice thereof to such Delinquent Member, and the Percentage Interests of the Members, along with the Schedule of Members, will be adjusted accordingly. Any Member who submits an Additional Capital Contribution (including an Excess Loan Amount) for
a Delinquent Member shall be entitled to receive an 18% per annum return on such Additional Capital Contribution, and such Additional Capital Contribution and 18% per annum return shall be senior and preferred to any other Capital Contributions and
returns thereon (as provided in Section 7.2). 
 2.3 Additional Members. Upon the written consent of the
Members, a Person may be admitted to the Company as a Member of the Company (an “Additional Member”) upon meeting the conditions set forth in this Agreement and furnishing to the Company: (i) an executed counterpart to
this Agreement, and (ii) such other documents or instruments as may be necessary or appropriate to effect such Person’s admission as a Member. Such admission shall become effective on the date on which the Company determines that such
conditions have been satisfied. Upon the admission of an Additional Member, the Schedule of Members attached hereto shall be amended to reflect the name, address and Units and other interests in the Company of such Additional Member. 

  
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 2.4 Members’ Liability. Except as otherwise provided in the Act, no Member shall
be personally liable for any debt, obligation or liability of the Company, whether arising in contract or otherwise, by reason of being a Member of the Company. 

2.5 Uses of Capital Contributions. Any funds received by the Company shall be utilized by the Company for the Investments or for such
other Company purposes pursuant to an action approved by the Members. Except as expressly set forth herein, no Member shall receive any interest on his, her or its Capital Contributions to the Company. 

2.6 Withdrawal of Capital. Without the written consent of the Members, and except as otherwise provided in this Agreement, no Member
shall have the right to withdraw any part of such Member’s Capital Contributions prior to the liquidation and dissolution of the Company pursuant to this Agreement. 

2.7 Source of Distributions. No Member shall be personally liable for the return of the Capital Contributions of any other Member, or
any portion thereto. 
 2.8 Company Loans. Notwithstanding anything herein to the contrary, any Member shall have the right to advance
additional funds as loans to the Company on such commercially reasonable terms as consented to in writing by the Members. 
 2.9
Members’ Intent. The Members intend that the Company be treated as a “partnership” for United States federal and state income tax purposes. The Members intend that the Company shall not be a partnership (including without
limitation, a limited partnership) or joint venture, and that no Member shall be a partner or joint venturer of any other Member, if applicable, for any purposes other than federal and state tax purposes, and that this Agreement not be construed to
suggest otherwise. 
 III. MANAGEMENT OF THE COMPANY 

3.1 Appointment of Servicer. 

(a) The Company shall have a servicer (the “Servicer”) who shall be designated from time to time by the Members and
engaged by the Company pursuant to an servicing agreement between the Company and the Servicer (a “Servicing Agreement”); provided, however, that the Servicer as of the Effective Date shall be Club Sports Group LLC or an
affiliate thereof (“CSG Servicer”). Subject to Section 3.2(g), upon the termination of a Servicing Agreement for any reason, the Members shall designate a replacement Servicer and the Company shall
enter into a Servicing Agreement with such replacement Servicer approved by the Members. 
 (b) Management of Company. 

(a) Except for the powers specifically delegated to the Servicer pursuant to the Servicing Agreement, the Company will be
managed by its Members in accordance with the provisions of this Article III. 

  
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 (b) Except as set forth below and in accordance with the terms and subject
to the conditions in the Servicing Agreement, the Servicer shall have the full power to manage the day-to day operations of the Company and execute, for and on behalf of the Company, any and all documents and
instruments that may be necessary or desirable to carry on the business of the Company, including, without limitation, any and all deeds, contracts, leases, mortgages, deeds of trust, promissory notes, security contracts, and financing statements
pertaining to the Company’s assets or obligations; provided, for the avoidance of doubt, that the Servicer shall not take or permit any action that would be a Major Decision hereunder without the prior approval of such action by the
Members in accordance with Section 3.2. 
 3.2 Major Decisions. To the extent that the Servicer or either
Member proposes that the Company take any of the following actions, then, notwithstanding anything herein to the contrary, the following actions shall require the consent of each of CSG and F45, such consent to be provided in the sole discretion of
each of CSG and F45 (each, a “Major Decision”): 
 (a) entry into any Loan Document and funding of
any Loan thereunder (including any protective advances); 
 (b) except in connection with an EOD pursuant to
Section 3.6, with respect to each Loan, (i) modification, amendment, restatement or termination of any of the Loan Documents or any waiver of Company’s rights thereunder, (ii) release of any party or parties
now or hereafter liable for the payment of any Loan or the performance of any other obligation relating thereto, including in connection with any guaranty, and (iii) release or subordination of all or any portion of the Company’s liens on
the Collateral securing any Loan or subordination of any payment and claim rights of the Company under the Loan Documents; 

(c) entering into any agreement or arrangement with an Affiliate of either Member not expressly permitted by this Agreement
(for the avoidance of doubt, the engagement of CSG as the initial Servicer as of the Effective Date is deemed approved for purposes of this clause); 

(d) modifications of this Agreement; 

(e) sale (including any participation interest) or pledge of any Investment or any other assets of the Company (other than in
connection with an EOD pursuant to Section 3.6(b)); 
 (f) dissolution or liquidation of the
Company; or 
 (g) the terms of, any amendment or modification to or, except with respect to a termination pursuant to
Section 3.5(f), the termination of any Servicing Agreement. 
 Without limitation on any other terms or conditions contained
herein, the Members may appoint any Person as an authorized person to execute any documents on behalf of the Company and bind the Company thereby. As of the date hereof, each of Jay Galluzzo, Adam Gilchrist and Chris Payne, are appointed as an
“Authorized Person” of the Company and shall have the power and authority to execute any documents approved by the Members and bind the Company thereby; but, for the avoidance of default, no such individual has any authority to execute
documents unless any 

  
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consent or approvals required under this Agreement have been obtained. In the event that a Member does not provided its written consent in respect of any Major Decision, the Members shall
cooperate in good faith to resolve the disagreement between the Members with respect to such Major Decision as promptly as practicable. 

3.3 Authority. No Person dealing with F45 or CSG with respect to any matter related to the Company enumerated herein need inquire
concerning the validity or propriety of any document or instrument executed in the name of the Company, F45 or CSG, or as to the F45’s or CSG’s authority executing the same. Any action taken by F45 or CSG in accordance with this Agreement
shall constitute the act of and bind the Company. 
 3.4 Material Breach or Dispute. Notwithstanding anything contained in this
Agreement to the contrary notwithstanding, if a Member materially breaches any provision of this Agreement (including Section 6.1), which breach cannot be cured or, if curable, is not cured within ten (10) days of
notice thereof (a “Material Breach”), then the non-breaching Member shall have the right, for thirty (30) days after the Material Breach (the “Deadlock Initiation
Period”), to initiate the deadlock sale procedure under this Section 3.5 (the “Deadlock Sale Procedure”) by delivering to the breaching Member a Deadlock Sale Notice (as hereinafter
defined). 
 3.5 Deadlock Sale. 

(a) Initiation of Deadlock Sale. In the event of a Material Breach, the
non-breaching Member shall have the right, in its sole and absolute discretion, during the thirty (30) day period immediately following the date of Material Breach to elect to institute the Deadlock Sale
Procedure by delivering a Deadlock Sale Notice to the breaching Member; provided, however, that if the non-breaching Member determines to institute and prosecute proceedings in any court of
competent jurisdiction, either at law or in equity, to enforce the specific performance of the terms and provisions of this Agreement, to enjoin further violations of the terms and provisions of this Agreement and/or to obtain damages in connection
with such Material Breach, then the Member may defer delivery of a Deadlock Sale Notice pending the outcome of such action; provided, further, that delivery of such Deadlock Sale Notice may not be deferred more than 180 days. 

(b) Election. In the event that a Member gives to the other Member written notice of its election to institute the
Deadlock Sale Procedure in accordance with Section 3.5 (a “Deadlock Sale Notice”), which notice shall set forth the basis for the Material Breach and the Designated Property Value, then F45 shall
purchase the entire Interest of CSG on the terms and conditions set forth below in this Section 3.6. 

(c) Procedure. The following terms shall apply to the Deadlock Sale Procedure: 

(i) Deadlock Sale Purchase Price. The “Deadlock Sale Purchase Price” shall be equal to
(A) the amount which CSG would receive under this Agreement if all of the assets of the Company, including without limitation the Investments, were sold on the Deadlock Sale Closing Date by the Company in an
all-cash sale for a “net price” (i.e., an all-cash 

  
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price that has already been reduced by seller closing costs) equal to the Designated Property Value and the Company and its subsidiaries had been dissolved and wound up immediately following such
sale, all of the debts and liabilities of the Company and its subsidiaries had been paid (or adequate reserves for such debts and liabilities had been set aside), and the remaining proceeds of such sale (including cash) and all other assets of the
Company (and any subsidiaries of the Company) had been distributed to the Members in accordance with the provisions of this Agreement on the Deadlock Sale Closing Date, less, solely in the event that the breaching Member in connection
with the Deadlock Sale Notice is CSG, (B) the amount of any losses, damages or other out-of-pocket costs actually incurred or reasonably estimated to be so
incurred by the Company as a result of or arising out of any one or more Material Breaches specified in the Deadlock Sale Notice. 

(ii) Deadlock Sale Closing Date. The closing of the sale of CSG’s Interest (the “Deadlock
Sale”) shall occur on the date that the later of (A) thirty (30) days after delivery of the Deadlock Sale Notice and (B) five (5) Business Days after the determination of the Deadlock Sale Purchase Price pursuant to
Section 3.5(d)(vi), or such other date as may be agreed upon in writing by the Members (the “Deadlock Sale Closing Date”). 

(iii) Defined Terms. As used in this Section 3.6: 

(1) “Designated Property Value” means an aggregate value for the assets of the Company to be proposed in good
faith by the non-breaching Member in the Deadlock Sale Notice, which shall be set forth in the Deadlock Sale Notice. 

(2) “Executory Period” means the period beginning upon the delivery of a Deadlock Sale Notice and ending upon
the Deadlock Sale Closing Date. 
 (3) “Interest”, with respect to a Member, means the entire interest of
such Member in the Company and any and all rights (including voting rights), powers and benefits accorded such Member under this Agreement (including the right to receive distributions and other payments from the Company). 

(d) Deadlock Sale Closing Procedures. The closing of the Deadlock Sale shall occur on the Deadlock Sale Closing Date. At
the closing: 
 (i) CSG shall deliver to F45 a duly executed and acknowledged instrument of assignment, in form and
substance reasonably acceptable to F45; 

  
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 (ii) F45 shall deliver the Deadlock Sale Purchase Price to CSG by wire
transfer of immediately available U.S. federal funds; 
 (iii) Each of CSG and F45 shall deliver, and shall cause the
Company to deliver, such additional documents as may be reasonably required by the other in order to consummate the sale (provided the same do not increase in any material respect the costs to, or liability or obligations of, the delivering party in
a manner not otherwise provided for herein) and pay such transfer taxes as may be due, with the primary obligor under law being responsible for same; 

(iv) Any loans between CSG and any other Member or the Company pursuant to this Agreement shall be paid in full (provided,
that any amounts owed to F45 may be netted against the Deadlock Sale Purchase Price); 
 (v) Each of CSG and F45 shall pay
its own fees and expenses, but they shall share, on a pro rata basis (including, if applicable through a deduction from the Deadlock Sale Purchase Price), the actual closing costs (if any) incurred by the Company relating to the sale of the Interest
of CSG (including prepayment premiums or transfer fees that are actually required to be paid under any financing arrangement in connection with the sale of the Interest of CSG); 

(vi) If there is a dispute between the parties as to the calculation of the Deadlock Sale Purchase Price (including the amount
of any contingent liability), then the matter shall be referred to an independent certified public accounting firm of recognized national standing (which accounting firm shall not be the accountant to CSG, F45 or the Company) approved by CSG and F45
for final determination, whose determination shall be conclusive (absent fraud). Notwithstanding anything to the contrary in this Agreement, during the Executory Period, no Property nor any portion thereof may be sold or otherwise disposed of by the
Company. 
 (e) Default; Remedies. 

(i) If the closing of the Deadlock Sale fails to occur by the Deadlock Sale Closing Date by reason of the non-initiating Member’s default, then, at the election of the initiating Member, (A) the sale shall be canceled and the non-initiating Member shall reimburse the
initiating Member’s reasonable out-of-pocket expenses (including legal fees and costs), or (B) the initiating Member may seek specific performance of the non-initiating Member’s obligation to sell or buy, as applicable; and F45 shall have no other rights or remedies by reason of such breach (but without limitation upon its right to recover attorneys’ fees
and costs). 

  
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 (ii) If the closing of the Deadlock Sale fails to occur by the Deadlock
Sale Closing Date by reason of initiating Member’s default, then the non-initiating Member as its sole and exclusive remedy, may terminate the sale (without limitation upon such Member’s rights
to recover attorneys’ fees and costs or its rights under clause (iii) below); and such Member shall have no other rights or remedies by reason of such breach (but without limitation upon its right to recover attorneys’ fees and
costs); provided, however, such non-initiating Member shall not be entitled to payment for any attorneys’ fees and costs to the extent that the Deadlock Sale Procedure was initiated as a
result of such Member’s Material Breach. 
 (f) Termination. Notwithstanding anything to the contrary set forth
herein, F45 may, without the prior consent of CSG, cause the Company to exercise any right or remedy under the Servicing Agreement with CSG Servicer, including termination, in accordance with the terms thereof. 

(g) Assignment. F45 may, at any time prior to the closing of the Deadlock Sale, assign to any person, or entity its
right to receive the assignment of CSG’s Interest, but such assignment shall not relieve F45 of its obligations and liabilities hereunder. 

(h) Representations. The sale of CSG’s Interest shall be on an as-is basis
without any representations or warranties, except for the following representations and warranties: CSG owns the Interest free of any security, encumbrance, interest, pledge, mortgage, lien, charge, adverse claim, option, warrant, preferential
arrangement or restriction of any kind (collectively, an “Lien”), the sale is legal and validly binding on CSG, the assignment agreement is enforceable against CSG, CSG is duly authorized to enter into the assignment
agreement and to sell its Interest, and the assignment will not cause any conflicts with other agreements to which CSG is a party. 

(i) Future Liability. CSG shall have no liability for any obligations accruing under this Agreement after the closing of
the sale of the Deadlock Sale except as expressly provided in this Section 3.6 or the documents executed under this Section 3.6. F45 shall have no liability to CSG for any obligations accruing
under this Agreement after the closing of the Deadlock Sale. 
 (j) Remedies. Except as expressly set forth herein,
the remedies set forth herein for a breach of this Section 3.6 are not exclusive. 
 3.6 EOD. 

(a) EOD Declaration. Each Member and the Company shall promptly notify all Members if it becomes of aware of any events,
actions or circumstances that constitute, or would reasonably be expected to constitute, any default or “Event of Default” (or any similar term defined in the Loan Documents) under the Loan Documents (each, an
“EOD”). Upon the occurrence and continuance of any EOD, CSG may, in its sole discretion, cause the Company to deliver a notice of any such EOD to the Borrower. With respect to any EOD resulting from any nonpayment default,
bankruptcy default or any 

  
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other default for which no grace period has been expressly provided under the Loan Document (each, a “Material EOD”), CSG may, in its sole discretion, upon written notice
to the Company and F45, cause the Company to declare all outstanding obligations under the applicable Loan Documents immediately due and payable and direct the Company to take any enforcement action available to the Company under applicable law and
the Loan Documents (an “EOD Declaration”); provided that, no EOD Declaration may be made by CSG with respect to any EOD (other than a Material EOD) without the prior written consent of F45 (not to be unreasonably
withheld, conditioned or delayed). In the event of an EOD Declaration, then, to the extent one or more Material EODs have occurred and are continuing under any Loan Document, CSG shall have the right, within thirty (30) days after an EOD
Declaration (the “EOD Period”) to initiate a Servicer Transfer (as defined in the Service Agreement) by delivering to the Company and F45 a Servicer Transfer Notice (as defined in the Service Agreement. 

(b) EOD Procedures. 

(i) Solely with respect to the initial Servicer (or its permitted assigns), to the extent one or more Material EODs have
occurred and are continuing under any Loan Document and Servicer delivers a Servicer Transfer Notice (as defined in the Servicer Agreement) to the Company and F45 in accordance with the terms of the Servicer Agreement, then F45 and the Company shall
cooperate in good faith with CSG and Servicer to promptly consummate the Servicer Transfer (as defined in the Servicer Agreement) and shall execute and deliver such further instruments and documents and do such further acts and things as reasonably
requested by Servicer or CSG in furtherance thereof. 
 (ii) If the initial Servicer fails to deliver a Service Transfer
Notice within (30) days of an EOD Declaration (or if the initial Servicer notifies F45 that it does not intend to consummate a Servicer Transfer), then F45 may elect, upon written notice delivered to CSG within thirty (30) days of
receiving such notice or, if applicable, the expiration of the EOD Period (the “F45 Transfer Notice”), to acquire, directly or indirectly, all or a portion of the Collateral (including, without limitation, the equity
interests of the Borrower) for the EOD Purchase Price (an “F45 Transfer”). If F45 does not deliver the F45 Transfer Notice within such period (or if F45 notifies CSG that it does not intend to consummate a F45 Transfer), then
CSG and F45 may mutually agree to cause the Company to exercise any other enforcement actions or remedies available to the Company (including, without limitation, the acquisition, set-off, foreclosure or sale
of all or a portion of the Collateral) under the applicable Loan Documents or applicable law with respect to the applicable EOD. 

(iii) As used in this Section 3.6(b), the “EOD Purchase Price” means an
amount equal to the outstanding principal amount of the applicable Loan (together with any accrued but unpaid interest thereon). 

  
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 IV. OBLIGATIONS OF THE MEMBERS 

4.1 Confidentiality. 

(a) Each Member covenants and agrees that such Member and such Member’s employees, officers, directors, stockholders,
agents, representatives, Affiliates that receive Confidential Information (as defined below) and the successors and assigns thereof, shall retain in strict confidence, and shall not use for any purpose whatsoever, or divulge, disseminate or disclose
to any third party any non-public information relating to the Company or its business, including, without limitation, financial information, development plans, pricing information, business methods, management
information systems and software, customer lists, supplier lists, leads, solicitations and contacts, know-how, show-how, inventions, techniques, improvements,
specifications, trade secrets, agreements, research and development, business plans and marketing plans of the Company (all of such information being hereinafter referred to as “Confidential Information”). The provisions of
this Section 4.1 shall survive and continue to bind each Member notwithstanding any such Member ceasing to be a Member of the Company. 

(b) In the event that a Member is required by law rule, regulation or valid legal process (including, without limitation, by
deposition, interrogatory, request for documents, subpoena, civil investigation, demand, order or similar process) to disclose any Confidential Information, such Member will, unless prohibited by such law, rule regulation or legal process, provide
written notice to the Company (as soon as practicable) of such requirement so that the Company may, at its own expense, seek an appropriate protective order. If no protective order is obtained in time for such required disclosure, such Member may
disclose without liability hereunder that portion of the Confidential Information which it is advised by counsel is legally required to be disclosed. 

4.2 Additional Obligations of F45. 

(a) Borrower Candidates. F45 shall market the Loans to prospective Borrowers using its commercially reasonable efforts
and discretion, which may include by advertising the Loan program on F45’s company websites and social media accounts, placing general advertisements and contacting prospective Borrowers. F45 shall promptly review and evaluate Loan applications
from potential Borrowers. Within ten (10) days of receipt of a complete Loan application from a potential Borrower who (i) meets the applicable Borrower criteria, as agreed by the Members from time to time and (ii) otherwise satisfies
F45’s customary policy and practices for evaluating potential F45 franchisees, F45 shall prepare and deliver to CSG an initial underwriting package, detailing the terms of the requested Loan, the financial profile of the potential Borrower and
F45’s recommendation with respect to the requested Loan (the “Underwriting Package”). F45 shall use commercially reasonable efforts to provide such readily available additional information as CSG may reasonably request
in connection with its evaluation of the Underwriting Package. 

  
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 (b) Management Services Agreement. F45 or its affiliate shall
(i) enter into a franchise agreement and management services agreement with each Borrower, in each case, substantially in the form previously approved by the Members; (ii) perform its obligations under such agreements in accordance with
the terms and conditions thereof; and (iii) provide all customary franchisee support services to each Borrower on substantially similar terms as F45 provides to its other franchisees. 

(c) Performance Management Report. F45 shall, on a quarterly basis, provide to CSG and the Servicer regular reports of
its performance management program with respect to each Borrower. 
 V. ACCOUNTING PROVISIONS 

5.1 Fiscal Year. The fiscal and taxable year of the Company (the “Fiscal Year”) shall be the calendar year or as
otherwise provided in the Internal Revenue Code of 1986, as amended (the “Code”). 
 5.2 Books and Accounts.

 (a) Complete and accurate books and accounts shall be kept and maintained by Servicer or a third party designated by
Servicer for the Company at the principal place of business of the Company or at such other place as designated by the Members. The bank accounts of the Company, if any, shall be held at a banking institution selected by the Members. Such books and
accounts shall be kept on the an accrual basis under generally accepted accounting principles and practices, as the Members may select, in accordance with generally accepted accounting principles and practices and shall include separate accounts for
each Member. The Servicer shall also provide monthly, quarterly and annual financial statements for the Company to all the Members. A list of the names and addresses of the Members shall be maintained as part of the books and records of the Company.
The Company shall keep the books and records open to inspection and examination at reasonable times and upon reasonable notice by each Member and its duly authorized representatives for any purpose reasonably related to such Member’s ownership
of Units or other interest in the Company. 
 (b) The Company shall obtain an annual audit of the Company performed by an
auditor registered with the Public Company Accounting Oversight Board, which shall be at the sole cost and expense of the Company (to be borne by the Members on a pro rata basis). Such audit shall be delivered to the Members within 120 days after
December 31 of each calendar year. 
 (c) All funds received by the Company shall be deposited in the name of the
Company in such bank account or accounts as the Members may designate from time to time, and withdrawals therefrom shall be made upon the signature of the authorized signatory on behalf of the Company as the Members may designate from time to time.
All deposits and other funds not needed in the operation of the Company’s business may, in the discretion of the Members, be deposited in interest-bearing bank accounts or in a money market fund, or invested in treasury bills, certificates of
deposit, and/or U.S. government security-backed repurchase agreements or similar short-term money market instruments, or funds investing in any of the foregoing. 

  
 13 

 5.3 Tax Reports. The Company shall cause to be prepared after the end of each taxable
year of the Company and filed, on or before their respective due dates (as the same may be extended), all federal and state income tax returns of the Company for such taxable year, and the Members shall take all commercially reasonable action as may
be necessary to permit the Company’s accountants to prepare and timely file such returns. The Company shall cause the Company to use commercially reasonable efforts to deliver a Form 1065 (Schedule K-1)
to each Member within ninety (90) days after the end of each taxable year reflecting the Member’s pro rata share of income, loss, credit and deductions for such taxable year but shall furnish Form 1065, applicable Schedule K-1s, and required schedules and attachments to Form 1065 no later than June 30 following the end of the taxable year (e.g. June 30, 2023 for the year ended December 31, 2022) for review and approval
by the Members. 
 5.4 Tax Audits. 

(a) By joining this Agreement, each Member appoints and designates CSG as the “partnership representative” of the
Company within the meaning of Section 6223 of the Code, and to any equivalent or similar role under state, local, or non-U.S. law (the “Partnership Representative”). To the extent
CSG is not permitted to be the Partnership Representative under applicable law, each Member agrees CSG shall have the exclusive authority to appoint and designate the Partnership Representative (including, without limitation, a “designated
individual” within the meaning of Treasury Regulations Section 301.6223-1(b)(3) or any successor provision). The Partnership Representative shall have any powers necessary to perform fully in such
capacity, and shall be permitted to take any and all actions, to the extent permitted by law, in consultation with CSG if CSG is not the Partnership Representative. CSG shall have the exclusive authority to appoint and designate its affiliate as a
Partnership Representative. The Partnership Representative shall be reimbursed by the Company for all costs and expenses incurred by it, and indemnified by the Company with respect to any action brought against it, in its capacity as the Partnership
Representative. 
 (b) The Members agree that any and all actions taken by the Partnership Representative shall be binding on
the Company and all of the Members and the Members shall reasonably cooperate with the Company and the Partnership Representative, and undertake any action reasonably requested by the Company or the Partnership Representative, in connection with any
elections made by the Partnership Representative or as determined to be reasonably necessary by the Partnership Representative under any BBA provision. 

(c) Each Member further agrees that such Member will not treat any Company item inconsistently on such Member’s U.S.
federal, state, local and/or non-U.S. tax returns or in any claim for a refund with the treatment of the item on the Company’s tax returns, and will not independently act with respect to tax audits or tax
litigation affecting the Company, unless the prior written consent of CSG has been obtained. 
 (d) CSG may in its sole
discretion cause the Partnership to make all elections not otherwise expressly provided for in this Agreement required or permitted to be made by the Company under the Code and any state, local or non-U.S. tax
laws (including, but not limited to, making an election under Section 754 of the Code). Each Member will upon request supply any information necessary to give proper effect to such elections. 

  
 14 

 (e) Notwithstanding anything to the contrary herein, the Partnership
Representative shall promptly notify the Members if any tax return of the Partnership is audited or if any adjustments are proposed to any items of Partnership income, gain, loss, deduction or credit, under the BBA. In addition, the Partnership
Representative shall (i) promptly furnish to the Members all notices concerning administrative or judicial proceedings relating to federal income tax matters as required under the Code, (ii) inform each Member of all significant matters
that come to its attention in its capacity as Partnership Representative by giving notice thereof reasonably promptly after becoming aware thereof and (iii) within a reasonable time, forward to each Member copies of all significant written
communications it receives or submits in its capacity as Partnership Representative. During the pendency of any audit of the Company pursuant to the BBA, the Partnership Representative shall keep the Members reasonably informed of the status of any
such audit. 
 (f) The obligations set forth in this Section 5.4 shall survive the termination of
any Member’s interest in the Company, the termination of this Agreement and/or the termination, dissolution, liquidation or winding up of the Company, and shall remain binding on each Member for the period of time necessary to resolve with the
IRS (or any other applicable taxing authority) all income tax matters relating to the Company and for Members to satisfy their indemnification obligations, if any, pursuant to this Section 5.4.] 

5.5 Financial Reporting. Servicer shall prepare, or cause to be prepared, financial statements on a monthly, quarterly and annual basis
for the Company, which shall include statement of operations, balance sheet, statement of cash flows and statement of each Member’s equity. Servicer shall deliver reporting in a timely fashion to the Company on or before (i) fifteen (15)
days after the end of each calendar month, (ii) thirty (30) days after the end of each calendar quarter and (iii) sixty (60) days after the end of each fiscal year. 

VI. TRANSFERS OF UNITS; SALE OF THE COMPANY 

6.1 Transfers. A Member may not, directly or indirectly, sell, transfer, gift, assign or otherwise dispose of, or permit, voluntarily or
involuntarily or by operation of law, any Lien upon all or any portion of such Member’s Units or any interest therein (hereinafter collectively referred to as a “Transfer”) without the prior written consent of the other
Members; provided, however, that a transaction that is a pledge in connection with a bona fide financing arrangement shall not be deemed to be a Transfer but a foreclosure pursuant thereto shall be deemed to be a Transfer. Upon such
consent only, the transferee shall be deemed a “Permitted Transferee”. Any such Transfer in violation of this Agreement shall be invalid and void, shall not bind the Company and shall have no effect whatsoever on the Company
or its Members. Notwithstanding the foregoing, any Transfer by a Member to its Affiliate shall be permitted, but shall not release the assigning Member from its Capital Commitment obligations. 

  
 15 

 6.2 Further Limitations on Transfers. 

(a) In no event may a Transfer by any Member be made if the Transfer would result in (i) the Company to being a
“publicly traded partnership”, as such term is defined in Sections 469(k)(2) or 7704(b) of the Code or the Treasury Regulations promulgated thereunder or otherwise treated as an association classified as a corporation for U.S. federal
income tax purposes, (ii) the Company being in violation of any applicable law, or (iii) the dissolution of the Company, and if so attempted in any such case, the Transfer shall be void and shall not bind the Company. 

(b) Each Member, by its acceptance of an Interest, is deemed to agree to not take any action, or refrain from taking any
action, which would cause the Company to be, for U.S. federal income tax purposes, classified as a publicly traded partnership or as a taxable mortgage pool or otherwise to be treated as a corporation for U.S. federal income tax purposes. 

(c) In connection with any BBA provision, and to the fullest extent permitted by law, any Member that Transfers or withdraws
all or any portion of its Interest agrees to reasonably cooperate with the Company and CSG, timely to file income tax returns, and timely to pay or bear income taxes, including any interest and penalties, with respect to its Interest so transferred
or withdrawn for any pre-Transfer or pre-withdrawal taxable years (or any portion thereof). 

6.3 Transfers by Operation of Law. In the event of any Involuntary Transfer (as defined below) of a Member’s Units, the transferee
shall not be substituted as a Member and shall not have any rights as a Member of the Company, including, without limitation, any voting rights attached to such Transferred Units. “Involuntary Transfer” shall mean any
involuntary Transfer or Transfer by operation of law (including Transfers by will or by the laws of decent) of the Units held by any Member by or in which such Member shall be deprived or divested of any right, title or interest in or to such Units,
including, without limitation, by seizure under levy of attachment or execution, by foreclosure upon a pledge, in connection with any voluntary or involuntary bankruptcy or other court proceeding to a debtor in possession, trustee in bankruptcy or
receiver or other officer or agency, pursuant to any statute pertaining to escheat or abandoned property, pursuant to a divorce or separation agreement or a final decree of a court in a divorce action, upon or occasioned by the incompetence of any
Member and to a legal representative of any such Member. In such instance, the Company shall have the sole and exclusive right to purchase the involuntarily transferred Units from the transferee based on their fair market value, and the transferee
shall be obligated to sell such involuntarily transferred Units back to the Company. 
 6.4 Substituted Members. 

(a) A Permitted Transferee of any Units in accordance with the provisions of this Article VI, shall
be admitted to the Company as a Member (a “Substituted Member”) and entitled to all the rights of a Member with respect to such Transferred Units if and only if (i) the transferring Member gives the Permitted
Transferee such right, (ii) the transferee is a Permitted Transferee and (iii) the Permitted Transferee has agreed in writing to be bound by the provisions of this Agreement. 

  
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 (b) The Company shall be entitled to treat the record owner of any Units or
other interest in the Company as the absolute owner thereof and shall incur no liability for distributions made in good faith to such owner until such time as a written assignment of such Units or other interest in the Company, which assignment is
permitted pursuant to and made in accordance with the terms and conditions of this Article VI, has been received and accepted by the Company, has been recorded on the books of the Company and all fees and expenses of the
Company incurred in connection with such transfer have been paid in full in accordance with Section 6.3. Upon the admission of a Substituted Member, the Schedule of Members attached hereto shall be amended to reflect the
Transfer to the Substituted Member. 
 (c) Following a Transfer of Units that is permitted under this
Article VI, the Permitted Transferee of such Units who is admitted as a Substituted Member shall be treated as having made all of the Capital Contributions in respect of, and received all of the allocations and
distributions received in respect of, such Units, shall succeed to the Capital Account (as defined below) associated with such Units and any Permitted Transferee shall receive allocations and distributions in respect of such Units as if such
transferee were a Member. 
 VII. DISTRIBUTIONS AND ALLOCATIONS 

7.1 Capital Accounts. The Company shall establish and maintain a capital account for each Member (each, a “Capital
Account”), which shall take into effect, as applicable, that: 
 (a) Each Member’s Capital Account shall be
increased by (i) the amount of cash (or the fair market value of other property, if any, net of liabilities secured by such property that the Company assumes or take subject to) contributed by such Member to the Company, and
(ii) allocations to the Member of Profits of the Company. 
 (b) Each Member’s Capital Account shall be decreased
by (i) the amount of money and the fair market value of property (net of liabilities secured by such distributed property that such Member assumes or takes subject to) distributed to it by the Company, and (ii) allocations to the Member of
Loss of the Company. 
 (c) Each Member’s Capital Account shall be further adjusted as may be necessary in order for the
Members’ Capital Accounts to be determined and maintained in accordance with Income Treasury Regulations Section 1.704-1(b)(2)(iv). 

(d) In the event of any Transfer of Units, the Transferee shall succeed to the Capital Account of the transferor with respect
to the interest Transferred. 
 (e) In the discretion of the Members, the Capital Accounts of the Members shall be increased
or decreased to reflect a revaluation of property of the Company (including intangible assets such as goodwill) on the Company’s books upon the occurrence of a revaluation event as described in Treasury Regulations Section 1.704-1(b)(2)(iv)(f). Upon such revaluation: (i) the Gross Asset Value of all assets of the Company shall be adjusted based on the fair market value of such property (taking into account Code
Section 7701(g)) 

  
 17 

 
on the revaluation date, and (ii) the unrealized income, gain, loss or deduction with respect to such property (that has not been reflected in the Capital Accounts previously) shall be
allocated among the Members as if there were a taxable disposition of such property for such fair market value on the revaluation date. 

7.2 Distributions. The Company shall make distributions, on or prior to the fifteenth
(15th) Business Day of each month to the Members from Available Cash as follows: 

(a) First, 100% to any Member who has made an Additional Capital Contribution for a Delinquent Member until such Member
receives the amount of such Additional Capital Contribution and an 18% per annum senior preferred return on the Additional Capital Contribution made for such Delinquent Member; 

(b) Second, to CSG until CSG has received the Senior Interest Amount accrued on 80% of (i) all CSG Capital
Contributions funded hereunder minus (ii) the aggregate amount of prior Distributions to CSG made by the Company that constitute a return of Capital Contributions therefor pursuant to Section 7.2(c); 

(c) Third, to CSG until CSG has received Distributions in an amount equal to 80% of all CSG Capital Contributions funded
hereunder; 
 (d) Fourth, to F45 until F45 has received the Junior Interest Amount accrued on 80% of (i) F45
Capital Contributions funded hereunder minus (ii) the aggregate amount of prior Distributions to F45 made by the Company that constitute a return of Capital Contributions therefor pursuant to Section 7.2(e); 

(e) Fifth, to F45 until F45 has received Distributions in an amount equal to 80% of all F45 Capital Contributions funded
hereunder; and 
 (f) Sixth, to the Members, pro rata based on the Percentage Interest held by each Member. 

The obligation to make payments pursuant to the foregoing shall be cumulative and shall accrue on all such Capital Contributions from the date
such contributions are made until they are returned to the contributing Member. At the election of the Company (with such election to be made by CSG), the cash amounts payable pursuant to Section 7.2(b) and Section 7.2(d) above may be paid
in kind in the form of Units and the dollar value of such amounts shall be considered a Capital Contribution of the applicable Member (made as of the applicable payment date) for all purposes under this Agreement. 

As used in this Section 7.2, the following terms have the meanings ascribed thereto: 

“Available Cash” means all cash and cash equivalents of the Company from interest, asset sales, principal prepayments,
refinancings, settlement proceeds, fees or other sources at any time available for Distribution after payment of or set aside for (i) all operating expenses and fees of the Company or its subsidiaries (including trustee fees, custodial fees,
all Servicing Fees, any arising under an asset management agreement with a 

  
 18 

 
replacement Servicer, legal, auditing and other similar fees and other operational expenses), in each case, in the ordinary course of business, (ii) the funding of reserves as determined in
accordance with this Agreement; and (iii) all prior Distributions, as determined by the Members pursuant to Section 3.3(h). For the avoidance of doubt, Available Cash shall include any proceeds received by the Company
in connection with an EOD, including as a result of a Servicer Transfer or F45 Transfer under Section 3.6(b). 

“Junior Interest Amount” shall mean the amount accruing on F45’s Units from the time of issuance on a daily basis
(compounding annually), at a rate of 5.00% per annum on (a) the Unreturned F45 Contributions plus (b) the Junior Interest Amount thereon for all prior annual periods which has not been distributed with respect to such Units pursuant to
this Section 7.2 or Section 8.4. In calculating the amount of any Distribution to be made during a period, the portion of the Junior Interest Amount with respect to F45’s Units for the portion
of the period elapsing before such Distribution is made shall be taken into account in determining the amount of such Distribution. 

“Senior Interest Amount” shall mean the amount accruing on CSG’s Units from the time of issuance on a daily basis
(compounding annually), at the rate per annum determined pursuant to Exhibit B as of the applicable calculation date on (a) the Unreturned CSG Contributions plus (b) the Senior Interest Amount thereon for all prior annual periods which has
not been distributed with respect to such Units pursuant to this Section 7.2 or Section 8.4. In calculating the amount of any Distribution to be made during a period, the portion of the Senior
Interest Amount with respect to CSG’s Units for the portion of the period elapsing before such Distribution is made shall be taken into account in determining the amount of such Distribution. 

“Unreturned F45 Contribution” shall mean an amount equal to (a) the amount of F45’s Capital Contributions
minus (b) the aggregate amount of prior Distributions made by the Company that constitute a return of Capital Contributions therefor pursuant to Section 7.2(e). 

“Unreturned CSG Contribution” shall mean an amount equal to (a) the amount of CSG’s Capital Contributions
minus (b) the aggregate amount of prior Distributions made by the Company that constitute a return of Capital Contributions therefor pursuant to Section 7.2(c). 

7.3 Allocation of Profits and Losses. 

(a) General. Except as otherwise required by Code Section 704 and the Treasury Regulations thereunder, Profit or
Loss, for each Fiscal Year or other period (“Period”) of the Company shall be allocated among the Members in such a manner that, as of the end of such Period, the Adjusted Capital Account Balance of each Member is equal to
the respective net amount that would be distributed to such Member under this Agreement, determined as if the Company were to sell the assets of the Company for an amount of cash equal to their Gross Asset Value, pay the liabilities of the Company,
and distribute the proceeds pursuant to Section 7.2. 
  

  
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 (b) Book-Tax Accounting
Disparities. Solely for federal income tax purposes, if property of the Company is reflected in the Capital Accounts of the Members at a Gross Asset Value that differs from the adjusted tax basis of such property, allocations of Depreciation,
amortization, income, gain or loss with respect to such property shall be made among the Members, using such method as determined by the Members, in a manner which takes such difference into account in accordance with Code Section 704(c) and
the Treasury Regulations thereunder. 
 (c) Adjustment to Capital Accounts for Distributions of Property. If the
Company distributes property that is reflected in the Capital Accounts of the Members at a Gross Asset Value that differs from the fair market value of such property at the time of distribution, the difference shall be treated as Profit or Loss on
the sale of such property and shall be allocated among the Members as of the time immediately prior to such distribution in accordance with Section 7.3(a). 

(d) Allocations in Event of Transfer. If an interest in the Company is transferred in accordance with this Agreement,
allocations of Profits and Losses as between the transferor and transferee shall be made using any method selected by the Members and permitted under Code Section 706. 

(e) Tax Allocations. Items of Company income, gain, loss, deduction or credit recognized for federal income tax purposes
shall be allocated among the Members for federal income tax purposes on the same basis as their respective book items but in a manner that is consistent with the requirements of the Code and the Treasury Regulations. 

(f) Modifications to Preserve Underlying Economic Objectives. In the event that there is a change in the federal income
tax law, or the allocations provided for in this Agreement do not comply with the substantial economic effect and capital account rules set forth under Code Section 704 and the Treasury Regulations thereunder or otherwise properly reflect the
economic interests of the Members, CSG, acting in its reasonable discretion after consultation with F45 and with the tax advisors to the Company, shall make such modifications to the allocation provisions of this Agreement necessary to preserve the
underlying economic objectives of the Members and to comply with such provisions of the Code and the Treasury Regulations. 

(g) U.S. Treasury Regulations. The provisions of Section 7.1 and this
Section 7.3 relating to the maintenance of Capital Accounts and allocations of income, gain, loss, expense or deduction are intended to comply with U.S. Treasury Regulations section
1.704-1(b) (including, without limitation, the “minimum gain chargeback” and “qualified income offset” provisions contained therein) and shall be interpreted and applied in a manner
consistent with such U.S. Treasury Regulations. 

  
 20 

 7.4 No Return of Distributions. No Member shall have any obligation to refund to the
Company any amount that shall have been distributed to such Member pursuant to this Agreement, subject, however, to the rights of any third party creditor under law. 

7.5 Tax Distributions. Subject to Section 7.4, to the extent that a Member is allocated taxable income from
the Company as a result of it being a Member, the Company may make distributions to the Members in amounts to be determined as set forth in the immediately following sentence. The amounts distributable pursuant to this
Section 7.5 shall be the amounts necessary to enable the Members (or any Persons whose tax liability is determined by reference to the income of a Member) to discharge their U.S. federal, state, local and foreign income tax
liabilities arising from the allocations made pursuant to this Agreement, assuming that each Member is a taxable Person and subject to the maximum applicable federal, state, local and foreign income tax rates, and otherwise based on such reasonable
assumptions as CSG determines in good faith to be appropriate (including without limitation giving effect to prior year loss allocations; provided that distributions to a Member pursuant to this Section 7.5 shall count
against and reduce subsequent Distributions to such Member pursuant to Section 7.2, and provided further that Distributions to a Member pursuant to Section 7.2 during a particular year shall reduce
distributions to which such Member is entitled with respect to such year pursuant to this Section 7.5. 
 7.6
Withholding. Notwithstanding any other provision of this Agreement, the Company is authorized to take any action that it reasonably determines to be necessary or appropriate to cause the Company to comply with any foreign or United States
federal, state or local withholding or composite tax payment requirement with respect to any allocation, payment or distribution by the Company to any Member or other Person. All amounts so withheld or paid, and, in the manner determined by CSG,
amounts withheld or paid with respect to any direct or indirect allocation, payment or distribution by any Person to the Company (or otherwise, including pursuant to Section 1446(f)(4)) of the Code, shall be treated as distributions to the
applicable Member under the applicable provisions of this Agreement, as the case may be. If any such withholding or composite tax payment requirement with respect to any Member exceeds the amount distributable to such Member under applicable
provisions of this Agreement or if any such withholding or composite tax payment requirement was not satisfied with respect to any amount previously allocated, paid or distributed to such Member, such Member and any successor or Permitted Transferee
with respect to such Member’s Units hereby agrees to repay to the Company and hold harmless the other Members and the Company for such excess amount or such withholding or payment requirement, as the case may be; it being understood that no
such indemnification will be considered a Capital Contribution for purposes of this Agreement. Any amount so withheld by the Company shall be promptly paid by the Company to the appropriate federal, state or local taxing authority. A Member’s
obligation to so indemnify shall survive the Transfer or assignment of such Member’s Units and the liquidation and dissolution of the Company or the Member’s Units, and the Company may pursue and enforce all rights and remedies it may have
against each such Member under this Section 7.6. Each Member, by its acceptance of a Unit agrees to timely furnish to the Company or their agents any U.S. federal income tax form or certification (including, without
limitation, IRS Form W-8BEN, IRS Form W-8BEN-E, IRS Form W-8IMY (with appropriate
attachments), or IRS Form W-9 or any successor to such IRS form) at the time of entering into this Agreement, and at such time or times as required by law or that the Company or their agents may reasonably
request. Any “imputed underpayment” within 

  
 21 

 
the meaning of Section 6225 of the Code paid by the Company as a result of an adjustment with respect to any Company item, including any interest or penalties with respect to any such
adjustment, shall be treated as if it were an amount withheld as described in this Section 7.6 with respect to the appropriate Members. 

7.7 Limitations. Notwithstanding anything to the contrary herein, the Company shall not make a distribution to any Member on account of
its Units if such distribution would violate the Act or other applicable law. 
 VIII. LIQUIDATION AND TERMINATION OF THE COMPANY

 8.1 Dissolution. The Company shall be dissolved and its affairs shall be wound up on the first to occur of the following: 

(a) the soonest date after which all Loans are repaid in full and all other Company matters related to the Investments have
been wound up; or 
 (b) the entry of a decree of judicial dissolution of the Company under Section 702 of the Act. 

The death, retirement, resignation, expulsion, withdrawal, bankruptcy or dissolution of any Member shall not cause the dissolution of the
Company and thereafter the Company shall continue its existence. 
 8.2 General. Upon the termination of the Company, the Company
shall be liquidated in accordance with this Article VIII and the Act. The liquidation shall be conducted and supervised by the Members or a Person appointed by the Members (the “Liquidating Agent”). The Liquidating
Agent shall have all of the rights and powers with respect to the assets and liabilities of the Company in connection with the liquidation and termination of the Company that the Members would have with respect to the assets and liabilities of the
Company during the Term. Without limiting the foregoing, the Liquidating Agent is hereby expressly authorized and empowered to execute and deliver any and all documents which are necessary or desirable to effectuate the liquidation and termination
of the Company and the transfer of any asset or liability of the Company. The Liquidating Agent shall have the right from time to time, by revocable powers of attorney, to delegate to one or more Persons any or all of such rights and powers and such
authority and power to execute and deliver documents, and, in connection therewith, to fix the reasonable compensation of each such Person, which compensation shall be charged as an expense of liquidation. The Liquidating Agent is also expressly
authorized to distribute the Company’s property to the Members subject to Liens. 
 8.3 Statements on Termination. Each Member
shall be furnished with a statement prepared by the Company’s regular accountants setting forth the assets and liabilities of the Company as of the date of complete liquidation, and each Member’s share thereof. Upon compliance with the
distribution plan set forth in Section 8.4 below, the Members shall cease to be such, and the Liquidating Agent shall execute, acknowledge and cause to be filed, where appropriate under law, a certificate of dissolution of
the Company. 

  
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 8.4 Priority on Liquidation. The Liquidating Agent shall, to the extent feasible,
liquidate the assets of the Company as promptly as shall be practicable. To the extent that the proceeds are sufficient therefor, as the Liquidating Agent shall deem appropriate, the proceeds of such liquidation shall be applied and distributed in
the following order of priority (the “Liquidation Distribution”): 
 (a) First, to pay the costs and
expenses of the liquidation and termination; 
 (b) Second, to pay the matured or fixed debts and liabilities of the Company
including any debts to any Member or other amounts owed to a Member as permitted hereunder (other than loans owed by Delinquent Members, which shall be paid in accordance with Section 8.4(d)); 

(c) Third, to establish any reserves that the Liquidating Agent may deem necessary for any contingent, unmatured or unforeseen
liability of the Company; and 
 (d) The balance, if any, shall be distributed to the Members in accordance with
Section 7.2. 
 8.5 Distribution of Non-Liquid Assets. If the
Liquidating Agent shall determine that it is not practicable to liquidate all of the assets of the Company, then the Liquidating Agent shall cause the fair market value of the assets not so liquidated to be determined by appraisal by an independent
appraiser from an appraiser designated by CSG. Such assets, as so appraised, shall be retained or distributed by the Liquidating Agent as follows: 

(a) The Liquidating Agent shall retain assets having a fair market value equal to the amount, if any, by which the net proceeds
of liquidated assets are insufficient to satisfy the debts and liabilities of the Company (other than any debt or liability for which neither the Company nor the Members are personally liable), to pay the costs and expenses of the dissolution and
liquidation, and to establish reserves, all subject to the provisions of Section 8.4. The foregoing shall not be construed, however, to prohibit the Liquidating Agent from distributing, pursuant to
Section 8.4, property subject to Liens at the value of the Company’s equity therein. 
 (b)
The remaining assets (including, without limitation, receivables, if any) shall be distributed to the Members by way of undivided interests therein in such proportions as shall be equal to the respective amounts to which each Member is entitled
pursuant to Section 8.4. If, in the judgment of the Liquidating Agent, it shall not be practicable to distribute to each Member an undivided aliquot share of each asset, the Liquidating Agent may allocate and distribute
specific assets to one or more Members as tenants-in-common as the Liquidating Agent shall determine to be fair and equitable, taking into consideration, inter
alia, the basis for tax purposes of each asset distributed. 
 (c) Nothing contained in this
Article VIII or elsewhere in this Agreement is intended to cause any in-kind distributions to be treated as sales for value. 

  
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 8.6 Orderly Liquidation. A reasonable time shall be allowed for the orderly
liquidation of the assets of the Company and the discharge of liabilities to creditors, so as to minimize the losses normally attendant upon liquidation. 

IX. EXCULPATION AND INDEMNIFICATION 

9.1 Exculpation. No officer nor his agent shall be liable to the Company or to any Member for (a) any loss suffered by the Company
unless such loss is caused by such Person’s gross negligence, willful misconduct, or knowing and intentional violation of law or (b) any errors in judgment or for any acts or omissions that do not constitute gross negligence, intentional
misconduct, knowing violation of law or material breach of this Agreement. 
 9.2 Right to Indemnification. Subject to the limitations
and conditions as provided in this Article IX, each Person who was or is made a party or is threatened to be made a party to or is involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative, arbitrative (hereinafter a “Proceeding”), or any appeal in such a Proceeding or any inquiry or investigation that could lead to such a Proceeding, by reason of the fact that he, or a Person of whom he is the
legal representative, is or was a Member and/or an officer of the Company, or while a Member and/or officer is or was serving at the request of the Company as an officer, partner, venturer, proprietor, trustee, employee, agent or similar functionary
of another foreign or domestic limited liability company, corporation, partnership, joint venture, sole proprietorship, trust or other enterprise shall be indemnified by the Company to the fullest extent permitted under applicable law, as the same
exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than said law permitted the Company to provide prior to such amendment)
against judgments, penalties, fines, settlements and reasonable expenses (including, without limitation, attorneys’ fees) actually incurred by such Person in connection with such Proceeding; provided that (a) such Person’s
course of conduct was pursued in good faith and believed by him to be in the best interests of the Company and (b) such course of conduct did not constitute gross negligence, intentional misconduct, or knowing violation of law on the part of
such Person and otherwise was materially in accordance with the terms of this Agreement. Indemnification under this Article IX shall continue with respect to a Person who has ceased to serve in the capacity which initially entitled such
Person to indemnity hereunder. The rights granted pursuant to this Article IX shall be deemed contractual rights, and no amendment, modification or repeal of this Article IX shall have the effect of limiting or denying any such rights
with respect to actions taken or Proceedings arising prior to any amendment, modification or repeal. It is expressly acknowledged that the indemnification provided in this Article IX could involve indemnification for negligence. 

9.3 Advance Payment. The right to indemnification conferred in this Article IX shall include the right to be paid or reimbursed
by the Company the reasonable expenses incurred by a Person of the type entitled to be indemnified under Section 9.2 who was, is or is threatened to be made a named defendant or respondent in a Proceeding in advance of the
final disposition of the Proceeding and without any determination as to the Person’s ultimate entitlement to indemnification; provided that the payment of such expenses incurred by any such Person in advance of the final disposition of a
Proceeding shall be made only upon delivery to the Company of a written affirmation by such Person of his good faith belief that he has met the standard of conduct necessary for indemnification under Article IX and a written undertaking, by
or on behalf of such Person, to repay all amounts so advanced if it shall ultimately be determined that such indemnified Person is not entitled to be indemnified under this Article IX or otherwise. 

 

  
 24 

 9.4 Indemnification of Employees and Agents. The Company may indemnify and advance
expenses to any Person, as determined by the Members, by reason of the fact that such Person was an employee or agent of the Company or is or was serving at the request of the Company as an officer, partner, venturer, proprietor, trustee, employee,
agent or similar functionary of another Person against any liability asserted against him and incurred by him in such a capacity or arising out of his status as such a Person to the same extent that it shall indemnify and advance expenses to Members
under this Article IX. 
 9.5 Appearance as a Witness. Notwithstanding any other provision of this Article IX, the
Company may pay or reimburse reasonable out-of-pocket expenses incurred by a Member, officer or employee in connection with his or her appearance as a witness or other
participation in a Proceeding related to or arising out of the business of the Company at a time when he or she is not a named defendant or respondent in the Proceeding. 

9.6 Non-exclusivity of Rights. The right to indemnification and the advancement and payment of
expenses conferred in this Article IX shall not be exclusive of any other right which a Member, officer or other Person indemnified pursuant to this Article IX may have or hereafter acquire under any law (common or statutory),
provision of the Certificate or this Agreement, separate contractual arrangement or otherwise. 
 9.7 Insurance. The Company may
purchase and maintain insurance, at its expense, to protect itself and any Person who is or was serving as an officer, employee or agent of the Company or is or was serving at the request of the Company as an officer, partner, venturer, proprietor,
trustee, employee, agent or similar functionary of another foreign or domestic limited liability company, corporation, partnership, joint venture, sole proprietorship, trust, employee benefit plan or other enterprise against any expense, liability
or loss, whether or not the Company would have the power to indemnify such Person against such expense, liability or loss under this Article IX. 

9.8 Savings Clause. If this Article IX or any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify and hold harmless each Member, officer or any other Person indemnified pursuant to this Article IX as to costs, charges and expenses (including attorneys’ fees), judgments,
fines and amounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative to the fullest extent permitted by any applicable portion of this Article IX that shall not have
been invalidated and to the fullest extent permitted by applicable law. 
 9.9 Transactions between the Company and the Members.
Notwithstanding that it may constitute a conflict of interest, the Members or their Affiliates may engage in any transaction (including, without limitation, the purchase, sale, lease or exchange of any property or rendering of any service or the
establishment of any salary, other compensation or other terms of employment) with the Company so long as such transaction is approved in advance by CSG and F45. 

  
 25 

 X. SPECIFIC PERFORMANCE 

10.1 Specific Performance. The parties recognize and acknowledge that their Units are closely held and that, accordingly, in the event
of a breach or default, or threatened breach or default, by one or more of the parties hereto of the terms and conditions of this Agreement, the damages to the remaining parties to this Agreement, or any one or more of them, may be impossible to
ascertain and such parties will not have an adequate remedy at law. In the event of any such breach or default, or such threatened breach or default, in the performance of the terms and provisions of this Agreement, any party or parties thereof
aggrieved thereby shall be entitled to institute and prosecute proceedings in any court of competent jurisdiction, either at law or in equity, to enforce the specific performance of the terms and provisions of this Agreement, to enjoin further
violations of the terms and provisions of this Agreement and/or to obtain damages. Such remedies shall, however, be cumulative and not exclusive and shall be in addition to any other remedies which any party may have under this Agreement or at law.
Each Member hereby waives any requirement for security or the posting of any bond or other surety and proof of damages in connection with any temporary or permanent award of injunctive, mandatory or other equitable relief and further agrees to waive
the defense in any action for specific performance that a remedy at law would be adequate. 
 XI. GOVERNING PROVISIONS 

11.1 Governing Law. The limited liability company law of the State of Delaware shall govern all issues and questions concerning the
relative rights of the Company and its Members. All other issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to any choice of law or conflict of law, rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
Delaware. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons or
circumstances are not affected thereby and that provision shall be enforced to the greatest extent permitted by law. 
 11.2 Consent to
Jurisdiction; WAIVER OF JURY TRIAL. All actions and proceedings arising out of, or relating to, this Agreement shall be heard and determined in any state or federal court sitting in New York, New York. The undersigned, by execution and delivery
of this Agreement, expressly and irrevocably: (i) consents and submits to the personal jurisdiction of any of such courts in any such action or proceeding; (ii) consents to the service of any complaint, summons, notice or other process
relating to any such action or proceeding by delivery thereof to such party by hand or by certified mail, delivered or addressed as set forth in Section 11.4; and (iii) waives any claim or defense in any such action or
proceeding based on any alleged lack of personal jurisdiction, improper venue or forum non conveniens or any similar basis. THE COMPANY AND EACH MEMBER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT THAT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT. 

  
 26 

 11.3 Entire Agreement. This Agreement (including the Schedule of Members and the
executed signature pages attached hereto) constitutes the entire understanding among the parties hereto. No waiver or modification of the provisions of this Agreement shall be valid unless it is in writing and signed by the party to be charged and
then only to the extent therein set forth. 
 11.4 Notices. Any notice, demand, request, instruction, correspondence, or other
document required or permitted to be given hereunder by any party to the other shall be in writing and delivered (i) in person, (ii) by a nationally recognized overnight courier service requiring acknowledgment of receipt of delivery,
(iii) by United States certified mail, postage prepaid and return receipt requested, or (iv) by email, as follows: 
  

	 	(a)	 CSG: 

Club Sports Group LLC 

80 Fifth Avenue, Suite 1101 

New York, NY 10011 

Attn: Jay Galluzzo 

Email: jgalluzzo@clubsportsgroup.com 

Kennedy Lewis Investment Management, LLC 

111 West 33rd Street, Suite 1910 

New York, NY 10120 

Attn: Adam Goldberg 

Telephone: (212) 782-3465 

Email: Adam.goldberg@klimllc.com 
  

	 	(b)	 F45: 

3601 South Congress Avenue 

Building E 

Austin, TX 78704 

Attn: Patrick Grosso 

Telephone: (949) 322-3379 

Email: pgrosso@f45hq.com 

Attn: Ryan Mayes 

Telephone: (440) 552-7856 

Email: rmayes@f45hq.com 
 Notice
shall be deemed given, received, and effective on: (i) if given by personal delivery or courier service, the date of actual receipt by the receiving party, or if delivery is refused on the date delivery was first attempted; (ii) if given
by certified mail, the third day after being so mailed if posted with the United States Postal Service; and (iii) if given by email, the date on which the email is transmitted during the transmitter’s normal business hours, or at the
beginning of the next 

  
 27 

 
Business Day after transmission if confirmed at any time other than the transmitter’s normal business hours. Any Person entitled to notice may change any address to which notice is to be
given to it by giving notice of such change of address as provided in this Section 11.4. The inability to deliver notice because of changed address or facsimile number of which no notice was given shall be deemed to be
receipt of the notice as of the date such attempt was first made. A party’s authorized counsel may deliver any notice on such party’s behalf. 

11.5 Construction; Additional Definitions. 

(a) The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word
“including” shall mean including without limitation. In this Agreement, unless otherwise specified, the following rules of construction apply: (i) references to “Articles,” “Sections,” “Schedules” and
“Exhibits” are references to articles, sections or subsections, schedules and exhibits of this Agreement; (ii) references to any Person include references to such Person’s successors and permitted assigns; (iii) words
importing the singular include the plural and vice versa; (iv) words importing one gender include the other gender and the neuter; (v) the words “hereof,” “herein” and “hereunder” and words of similar import,
when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement; (vi) the word “or” shall mean “and/or”; and (vii) a defined term has its defined meaning throughout
this Agreement and in each Exhibit and Schedule to this Agreement, regardless of whether it appears before or after the place where it is defined. 

(b) As used in this Agreement: 

(i) “Adjusted Capital Account Balance” means, with respect to each Member, the balance in such
Member’s Capital Account after (A) increasing such balance with any amounts which such Member is obligated or treated as obligated to restore with respect to any deficit balance in such Capital Account pursuant to Treasury Regulations Section 1.704-1(b)(2)(ii)(c), or is deemed to be obligated to restore with respect to any deficit balance pursuant to the penultimate sentences of Treasury Regulations Sections
1.704-2(g)(1) and 1.704-(2)(i)(5) and (B) reducing such balance with the items described in Treasury Regulations Sections
1.704-1(b)(2)(ii)(d)(4), (5) and (6). 
 (ii) “Affiliate”
means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person (excluding, in the case of any Member, any portfolio
companies or other Persons that are investments of any investment vehicle managed by such Member and/or an Affiliate thereof). The term “control” (including the 

  
 28 

 
terms “controlled by” and “under common control with”) as used in this definition means the possession, directly or
indirectly (including through one or more intermediaries), of the power or authority to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. The term
“Affiliated” shall have a correlative meaning. Notwithstanding the foregoing, a non-discretionary sub-advising relationship shall
not confer Affiliate status. 
 (iii) “BBA” means Sections 6221 through 6241 of the Code, as amended
from time to time, and the Treasury Regulations thereunder (whether proposed, temporary or final), including any subsequent amendments, successor provisions or other guidance thereunder, and any equivalent provisions for U.S. federal, state, local,
or non-U.S. tax purposes. 
 (iv) “Business Day” means a day
other than a Saturday, Sunday or other day on which banks in New York City are authorized or required to close. 
 (v)
“Depreciation” means, for each Period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for such Period, except that if the
Gross Asset Value of an asset differs from its adjusted tax basis for federal income tax purposes at the beginning of such Period, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income
tax depreciation, amortization, or other cost recovery deduction for such Period bears to such beginning adjusted tax basis; provided, however, that if the adjusted tax basis for federal income tax purposes of an asset at the beginning
of such Period is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Members. 

(vi) “Gross Asset Value” means, with respect to any asset of the Company, the asset’s adjusted
basis for federal income tax purposes; provided, however, that if an asset is contributed to the Company, the initial Gross Asset Value of such property shall equal its fair market value as of the time of contribution;
provided, further, that the Gross Asset Value of an asset may be adjusted pursuant to Sections 7.1(e) and 7.3(c). 

(vii) “Person” means any individual, sole proprietorship, partnership, limited liability company,
joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, entity (whether or not legally formed) or government (whether federal, state, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or department thereof). 

  
 29 

 (viii) “Profit” and “Loss”
mean for each Period, an amount equal to the Company’s taxable income or loss for such Period determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, deduction or credit required to be stated
separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss) with the following adjustments: 
 (1) Any
income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profit or Loss pursuant to this definition shall be added to such taxable income or loss; 

(2) Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures
pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profit or Loss pursuant to this definition, shall be subtracted from such taxable income or
loss; 
 (3) Gain or loss resulting from any disposition of Company assets with respect to which gain or loss is recognized for federal
income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property may differ from its Gross Asset Value; 

(4) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for such Period; 
 (5) In the event the Gross Asset Value of any Company asset is adjusted
pursuant to Sections 7.1(e) or 7.3(c), the amount of such adjustment shall be taken into account as gain or loss for purposes of computing Profit or Loss; and 

(6) Any items of income, gain, loss, deduction or credit specially allocated pursuant to Section 7.3 shall not be
taken into account in computing Profit or Loss. 
 (ix) “Treasury Regulations” means the Income Tax
Regulations promulgated under the Code. 
 (c) Relationship of Members. Each Member agrees that, to the fullest extent
permitted by Section 18-1101 and other provisions of the Act and except to the extent expressly stated in this Agreement: 

(i) Duties. Neither of the Members shall have any fiduciary or other implied duty (including good faith and fair dealing),
responsibility or obligation to the Company or any other Member under the Act or other applicable law, including, without limitation, the principles of statutory, case or common law (and, to the extent permitted by applicable law, each Member hereby
expressly and irrevocably waives and releases the other Member from any such fiduciary or other implied duty, responsibility or obligation, included the implied duty of good faith and fair dealing) except as otherwise expressly provided in this
Agreement. 

  
 30 

 (ii) Contractual Duties Prevail. To the extent that, at law or in equity, a Member
has duties (including, for the avoidance of doubt, fiduciary duties) and liabilities relating thereto to the Company or to the other Members, a Member acting pursuant to and in accordance with this Agreement shall not be liable to the Company or to
any other Member except to the extent provided in this Agreement. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Member otherwise existing at law or in equity, are agreed by the parties hereto to
replace such other duties and liabilities of such Member. 
 (iii) Standard of Care. Whenever in this Agreement the Members or any
Affiliate of the Members is permitted or required to make a decision (A) in its “discretion”, “judgment” or under a grant of similar authority or latitude, the applicable Member or such Affiliate shall be entitled to
consider such interests and factors as it desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of, or any other factors affecting, any other Person, or (B) in “good
faith” or under another express standard, the applicable Member or such Affiliate shall act under such express standard and shall not be subject to any other or different standard imposed by this Agreement or other applicable law. 

11.6 Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed and original and which
together shall constitute one agreement binding on the parties hereto. Executed counterparts to this Agreement may be delivered via facsimile or via PDF in electronic mail. This Agreement and each other agreement or instrument entered into in
connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or email with scan or facsimile attachment, shall be treated in all manner
and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of the Company, each other party hereto or
thereto shall re-execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver a
signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or email as a defense to the formation or enforceability of a contract, and each such party forever waives any
such defense. 
 11.7 Amendments and Waivers. This Agreement may be amended, restated or otherwise modified in writing at any time and
from time to time with the approval, consent or vote of the Members. Each Member hereby waives to the maximum extent permitted by law any claim it may have that any such amendments, restatement or modifications are not in good faith. The Members
shall deliver (by any means) to each Member a copy of each executed amendment, restatement or modification of this Agreement. No provision of this Agreement may be waived without the prior written consent of the party against whom enforcement of
such waiver is sought. 
 11.8 Binding Effect. Except as otherwise provided herein, this Agreement shall be binding upon and shall
inure to the benefit of the respective heirs, executors, administrators, legal representatives, successors and Permitted Transferees of the parties hereto. 

11.9 Further Assurances. Each Member agrees to execute and deliver such further instruments and documents and do such further acts and
things as requested by the Members which may be required to carry out the intent and purposes of this Agreement. 

  
 31 

 11.10 No Third Party Beneficiaries. Except as is otherwise specifically provided for
in this Agreement or as may otherwise be specifically agreed in writing by all of the Members, the provisions of this Agreement are not intended to be for the benefit of any creditor or other Person to whom any debts, liabilities, or obligations are
owed by (or who otherwise has any claim against) the Company or any of the Members; and no such creditor or other Person shall obtain any benefit from such provisions or shall, by reason of any such foregoing provision, make any claim in respect of
any debt, liability, or obligation against the Company or any of the other Members. 
 11.11 Interpretation. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. 

11.12 Manner of Acting. For any action of the Company or consent of the Members required under this Agreement, the affirmative vote or
written consent of all Members shall be the act of the Members. 
 XII. INVESTMENTS 

12.1 Investment Restrictions. The Company will not, and the Members and Servicer will cause the Company not to, invest in any assets
other than the Investments (as defined in Section 1.2 of this Agreement). All Loans approved and made by the Company shall be based on the “Approved Loan Criteria” set forth in Exhibit A attached
hereto; provided that the Approved Loan Criteria may be amended, restated, supplemented or otherwise modified from time to time with the written consent of each of the Members. 

12.2 Investment Period. The period during which the Loans may be approved or funded by the Company shall commence on the Effective Date
and end on the first to occur of (i) the twenty-four (24) month anniversary of the Effective Date, (ii) a material breach by a Member of any provision of this Agreement (including Section 6.1), which breach
cannot be cured or, if curable, is not cured within ten (10) days of notice thereof and (iii) the date on which aggregate Capital Contributions equal or exceed $100,000,000 (the date to first occur, the “Investment Period
Termination Date”). Notwithstanding the foregoing or anything to the contrary contained herein, the Investment Period Termination Date may be extended by mutual written agreement of the Members. 

[SIGNATURE PAGES FOLLOW] 

  
 32 

 WHEREAS, the Members of the Company have set forth their signatures below. 

 

			
	MEMBERS:
	
	 Club Sports Group LLC,
 a Delaware
limited liability company

		
	By:	 	 /s/ Jay Galluzzo

		 	Name: Jay Galluzzo
		 	Title: Chief Executive Officer
	
	 F45 TRAINING HOLDINGS INC.,
 a
Delaware corporation

		
	By:	 	 /s/ Adam Gilchrist

		 	Name: Adam Gilchrist
		 	Title: Chief Executive Officer

 Signature Page to FAFC LLC Limited Liability Company AgreementEX-4.2

   

  Exhibit 4.2

  DESCRIPTION OF THE REGISTRANT'S SECURITIES

  REGISTERED PURSUANT TO SECTION 12 OF

  THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

  ATAI Life Sciences N.V. (the “Company,” “we,” “us” and “our”) has the following class of securities registered pursuant to Section 12(b) of the Exchange Act:

   

  				
	Title of each class
	 
	Trading Symbol(s)
	Name of each exchange on which registered

	Common shares, par value €0.10 per share
	 
	ATAI
	The Nasdaq Global Market

  DESCRIPTION OF SHARE CAPITAL AND ARTICLES OF ASSOCIATION 

  The following is a summary of relevant information concerning our share capital and our articles of association and applicable Dutch law. This summary does not constitute legal advice regarding those matters and should not be regarded as such. The following summary is not complete and is subject to, and is qualified in its entirety by reference to, the provisions of our articles of association, as amended from time to time, and which have been publicly filed with the U.S. Securities and Exchange Commission (“SEC”).

  General

  We are a Dutch a public company (naamloze vennootschap). Our affairs are governed by the provisions of our articles of association and internal rules, regulations and policies, as amended and restated from time to time, and by the provisions of applicable Dutch law. As provided in our articles of association, subject to Dutch law, we have full capacity to carry on or undertake any business or activity, do any act or enter into any transaction consistent with the objects specified in our articles of association, and, for such purposes, full rights, powers and privileges. 

  Share Capital 

  As of December 31, 2021, our authorized share capital amounted to €75,000,000, consisting of 750,000,000 shares, each with a nominal value of €0.10. 

  Common Shares 

  The following summarizes the main rights of holders of our common shares: 

  				
	 
	•
	 
	each holder of common shares is entitled to one vote per share on all matters to be voted on by shareholders generally, including the appointment of managing directors and supervisory directors; 

   

  				
	 
	•
	 
	there are no cumulative voting rights; 

   

  				
	 
	•
	 
	the holders of our common shares are entitled to dividends and other distributions as may be declared from time to time by us out of funds legally available for that purpose, if any; 

   

  				
	 
	•
	 
	upon our liquidation, dissolution or winding-up, the holders of common shares will be entitled to share ratably in the distribution of all of our assets remaining available for distribution after satisfaction of all our liabilities; 

   

  				
	 
	•
	 
	the holders of common shares have preemptive rights in case of share issuances or the grant or rights to subscribe for shares, except if such rights are limited or excluded by the corporate body authorized to do so and except in such cases as provided by Dutch law and our articles of association; and 

   

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	•
	 
	the Company may not make calls on shareholders in excess of the aggregate nominal value of the shares a shareholder has subscribed for. 

   

  Amendment of Articles of Association 

  The articles of association can only be amended by a general meeting of the shareholders proposed by the management board, with the approval of the supervisory board. A resolution of the general meeting of shareholders to amend the articles of association requires a majority of at least two thirds of the votes cast whereas that majority must represent more than half of the issued capital. 

  Shareholders’ Register 

  Pursuant to Dutch law and our articles of association, we must keep our shareholders’ register accurate and current. The board keeps our shareholders’ register and records names and addresses of all holders of shares, showing the date on which the shares were acquired, the date of the acknowledgement by or notification of us as well as the amount paid on each share. The register also includes the names and addresses of those with a right of use and enjoyment (vruchtgebruik) on shares belonging to another or a pledge (pandrecht) in respect of such shares. Part of the Shareholders Register may be kept outside The Netherlands to comply with applicable local law or pursuant to stock exchange rules. Our common shares shall be in registered form (op naam). 

  Corporate Objectives 

  Pursuant to our articles of association, our main corporate objectives are: 

  				
	 
	•
	 
	to build biotech companies globally by leveraging a decentralized, technology- and data-driven platform model to serve millions of people suffering with mental health disorders; 

   

  				
	 
	•
	 
	to acquire and efficiently develop innovative treatments that address significant unmet medical needs and lead to paradigm shifts in the mental health space; 

   

  				
	 
	•
	 
	to, either alone or jointly with others, acquire and dispose of affiliations or other interests in legal entities, companies and enterprises, and to collaborate with and to manage such legal entities, companies or enterprises; 

   

  				
	 
	•
	 
	to acquire, manage, turn to account, encumber and dispose of any property—including intellectual property rights—and to invest capital; 

   

  				
	 
	•
	 
	to supply or procure the supply of money loans, particularly—but not exclusively—to our subsidiaries, group companies and/or affiliates, as well as to draw or to procure the drawing of money loans; 

   

  				
	 
	•
	 
	to enter into agreements whereby we commit ourselves as guarantor or severally liable co-debtor, or grant security or declare ourselves jointly or severally liable with or for others, particularly—but not exclusively—to the benefit of companies as referred to above; 

   

  				
	 
	•
	 
	for purposes not related to the conduct of its business to make periodic payments for or towards pension funds or other objectives; and 

   

  				
	 
	•
	 
	to do all such things as are incidental or may be conducive to the above objects or any of them. 

  Limitations on the Rights to Own Securities 

  Our common shares may be issued to individuals, corporations, trusts, estates of deceased individuals, partnerships and unincorporated associations of persons. Our articles of association contain no limitation on the rights to own our shares and no limitation on the rights of nonresidents of the Netherlands or foreign shareholders to hold or exercise voting rights. 

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  Limitation on Liability and Indemnification Matters 

  Under Dutch law, managing directors, supervisory directors and certain other officers may be held liable for damages in the event of improper or negligent performance of their duties. They may be held jointly and severally liable for damages to the company and to third parties for infringement of the articles of association or of certain provisions of Dutch law. In certain circumstances, they may also incur additional specific civil and criminal liabilities. Subject to certain exceptions, our articles of association provide for indemnification of our current and former managing directors and supervisory directors (and other current and former officers and employees as designated by our management board). No indemnification shall be given under our articles of association to an indemnified person: 

  			
	 
	(a)
	if a competent court or arbitral tribunal has established, without having (or no longer having) the possibility for appeal, that the acts or omissions of such indemnified person that led to the financial losses, damages, expenses, suit, claim, action or legal proceedings as described above are of an unlawful nature (including acts or omissions which are considered to constitute malice, gross negligence, intentional recklessness and/or serious culpability attributable to such indemnified person); 

   

  			
	 
	(b)
	to the extent that his or her financial losses, damages and expenses are covered under insurance and the relevant insurer has settled, or has provided reimbursement for, these financial losses, damages and expenses (or has irrevocably undertaken to do so); 

   

  			
	 
	(c)
	in relation to proceedings brought by such indemnified person against the company, except for proceedings brought to enforce indemnification to which he is entitled pursuant to our articles of association, pursuant to an agreement between such indemnified person and the company which has been approved by the management board or pursuant to insurance taken out by the company for the benefit of such indemnified person; and 

   

  			
	 
	(d)
	for any financial losses, damages or expenses incurred in connection with a settlement of any proceedings effected without the company’s prior consent. 

  Under our articles of association, our management board may stipulate additional terms, conditions and restrictions in relation to the indemnification described above. 

  Shareholders’ Meetings 

  General meetings of shareholders may be held in Amsterdam, or in Rotterdam, the Hague, at Schiphol Airport in the municipality of Haarlemmermeer, all in the Netherlands. The annual general meeting of shareholders must be held within six months of the end of each financial year. Additional extraordinary general meetings of shareholders may also be held, whenever considered appropriate by the management board or the supervisory board and shall be held within three months after our management board has considered it to be likely that our equity has decreased to an amount equal to or lower than half of its paid up and called up share capital, in order to discuss the measures to be taken if so required. 

  Pursuant to Dutch law, one or more shareholders or others with meeting rights under Dutch law who jointly represent at least one-tenth of the issued share capital may request us to convene a general meeting, setting out in detail the matters to be discussed. If we have not taken the steps necessary to ensure that such meeting can be held within six weeks after the request, the requesting party/parties may, on their application, be authorized by the competent Dutch court in preliminary relief proceedings to convene a general meeting of shareholders. The court shall disallow the application if it does not appear that the applicants have previously requested our management board and our supervisory board to convene a general meeting and neither our management board nor our supervisory board has taken the necessary steps so that the general meeting could be held within six weeks after the request. 

  General meetings of shareholders must be convened by a notice published in a Dutch daily newspaper with national distribution or by a notice in an electronic communication system, which each shall include an agenda, the time and place of the meeting, the record date (if any), the procedure for participating in the general meeting by proxy, as well as other information as required by Dutch law. The notice must be given at least 15 calendar days prior to the day of the meeting. The agenda for the annual general meeting of shareholders shall include, among other things, the 

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  adoption of the annual accounts, appropriation of our profits and proposals relating to the composition of the management board and supervisory board, including the filling of any vacancies. In addition, the agenda shall include such items as have been included therein by the management board or the supervisory board. The agenda shall also include such items requested by one or more shareholders, or others with meeting rights under Dutch law, representing at least 3% of the issued share capital. Requests must be made in writing or by electronic means and received by us at least 60 days before the day of the meeting. No resolutions shall be adopted on items other than those that have been included in the agenda. 

  In accordance with the Dutch Corporate Governance Code (DCGC) and our articles of association, shareholders having the right to put an item on the agenda under the rules described above shall exercise such right only after consulting the management board in that respect. If one or more shareholders intend to request that an item be put on the agenda that may result in a change in the company’s strategy (for example, the removal of managing directors or supervisory directors), the management board must be given the opportunity to invoke a reasonable period to respond to such intention. Such period shall not exceed 180 days (or such other period as may be stipulated for such purpose by Dutch law and/or the DCGC from time to time). If invoked, the management board must use such response period for further deliberation and constructive consultation, in any event with the shareholders(s) concerned, and shall explore the alternatives. At the end of the response time, the management board shall report on this consultation and the exploration of alternatives to the general meeting of shareholders. This shall be supervised by our supervisory board. The response period may be invoked only once for any given general meeting of shareholders and shall not apply: (a) in respect of a matter for which a response period has been previously invoked or (b) if a shareholder holds at least 75% of the company’s issued share capital as a consequence of a successful public bid. The response period may also be invoked in response to shareholders or others with meeting rights under Dutch law requesting that a general meeting of shareholders be convened, as described above. 

  Moreover, our management board, with the approval of our supervisory board, can invoke a cooling-off period of up to 250 days when shareholders, using their right to have items added to the agenda for a general meeting or their right to request a general meeting, propose an agenda item for our general meeting to dismiss, suspend or appoint one or more managing directors or supervisory directors (or to amend any provision in our articles of association dealing with those matters) or when a public offer for our company is made or announced without our support, provided, in each case, that our management board believes that such proposal or offer materially conflicts with the interests of our company and its business. During a cooling-off period, our general meeting cannot dismiss, suspend or appoint managing directors and supervisory directors (or amend the provisions in our articles of association dealing with those matters) except at the proposal of our management board. During a cooling-off period, our management board must gather all relevant information necessary for a careful decision-making process and at least consult with shareholders representing 3% or more of our issued share capital at the time the cooling-off period was invoked, as well as with our Dutch works council (if we or, under certain circumstances, any of our subsidiaries would have one). Formal statements expressed by these stakeholders during such consultations must be published on our website to the extent these stakeholders have approved that publication. Ultimately one week following the last day of the cooling-off period, our management board must publish a report in respect of its policy and conduct of affairs during the cooling-off period on our website. This report must remain available for inspection by shareholders and others with meeting rights under Dutch law at our office and must be tabled for discussion at the next general meeting. Shareholders representing at least 3% of our issued share capital may request the Enterprise Chamber of the Amsterdam Court of Appeal, or the Enterprise Chamber (Ondernemingskamer), for early termination of the cooling-off period. The Enterprise Chamber must rule in favor of the request if the shareholders can demonstrate that: 

  				
	 
	•
	 
	our management board, in light of the circumstances at hand when the cooling-off period was invoked, could not reasonably have concluded that the relevant proposal or hostile offer constituted a material conflict with the interests of our company and its business; 

   

  				
	 
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	our management board cannot reasonably believe that a continuation of the cooling-off period would contribute to careful policy-making; or 

  • other defensive measures, having the same purpose, nature and scope as the cooling-off period, have been activated during the cooling-off period and have not since been terminated or suspended within a reasonable period at the relevant shareholders’ request (i.e., no ‘stacking’ of defensive measures). 

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  The general meeting is presided over by the chairperson of the supervisory board or by the CEO or by the person designated thereto by the supervisory board, whether or not from its midst. If the chairperson and the CEO are absent and the supervisory board has not designated another person as aforesaid, the general meeting itself shall appoint its chairperson. Managing directors and supervisory directors may always attend a general meeting of shareholders. In these meetings, they have an advisory vote. The chairperson of the meeting may decide at his or her discretion to admit other persons to the meeting. 

  All shareholders and others with meeting rights under Dutch law are authorized to attend the general meeting of shareholders, to address the meeting and, in so far as they have such right, to vote pro rata to his or her shareholding. Shareholders may exercise these rights, if they are the holders of shares on the record date, if any, as required by Dutch law, which is currently the 28th day before the day of the general meeting of shareholders. Under our articles of association, shareholders and others with meeting rights under Dutch law must notify us in writing or by electronic means of their identity and intention to attend the general meeting of shareholders. This notice must be received by us ultimately on the seventh day prior to the general meeting, unless indicated otherwise when such meeting is convened. 

  Each common share confers the right on the holder to cast one vote at the general meeting of shareholders. Shareholders may vote by proxy. No votes may be cast at a general meeting of shareholders on shares held by us or our subsidiaries or on shares for which we or our subsidiaries hold depositary receipts. Nonetheless, the holders of a right of use and enjoyment (vruchtgebruik) and the holders of a right of pledge (pandrecht) in respect of shares held by us or our subsidiaries in our share capital are not excluded from the right to vote on such shares, if the right of use and enjoyment (vruchtgebruik) or the right of pledge (pandrecht) was granted prior to the time such shares were acquired by us or any of our subsidiaries. Neither we nor any of our subsidiaries may cast votes in respect of a share on which we or such subsidiary holds a right of use and enjoyment (vruchtgebruik) or a right of pledge (pandrecht). Shares which are not entitled to voting rights pursuant to the preceding sentences will not be taken into account for the purpose of determining the number of shareholders that vote and that are present or represented, or the amount of the share capital that is provided or that is represented at a general meeting of shareholders. 

  Decisions of the general meeting of shareholders are taken by an absolute majority of votes cast, except where Dutch law or our articles of association provide for a qualified majority or unanimity. 

  Managing Directors and Supervisory Directors 

  Appointment of Managing Directors and Supervisory Directors 

  Under our articles of association, the managing directors and supervisory directors are appointed by the general meeting of shareholders upon binding nomination by our supervisory board. Our articles of association provide that only managing directors that are resident in Germany may be appointed as CEO and that at least half of the managing directors should be German resident. However, the general meeting of shareholders may at all times overrule the binding nomination by a resolution adopted by at least a two-thirds majority of the votes cast, provided such majority represents more than half of the issued share capital. If the general meeting of shareholders overrules the binding nomination, the supervisory board shall make a new nomination. If the nomination is comprised of one candidate for a vacancy, a resolution concerning the nomination shall result in the appointment of the candidate, unless the nomination is overruled. 

  Our supervisory board has adopted a diversity policy for the composition of our management board and our supervisory board, as well as a profile for the composition of the supervisory board. The supervisory board shall make any nomination for the appointment of a managing director or supervisory director with due regard to the rules and principles set forth in such diversity policy and profile, as applicable. 

  At a general meeting of shareholders, a resolution to appoint a managing director or supervisory director can only be passed in respect of candidates whose names are stated for that purpose in the agenda of that general meeting of shareholders or in the explanatory notes thereto. 

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  Under Dutch law, when nominating a person for appointment or reappointment as a supervisory director, the nomination must be supported by reasons (if it concerns a reappointment, past performance must be taken into consideration) and the following information about such person must be provided: (i) age and profession; (ii) the aggregate nominal value of the shares held in the company’s capital; (iii) present and past positions, to the extent relevant for the performance of the tasks of a supervisory director and (iv) the name of each entity where such person already holds a position as supervisory director or non-executive director (in case of multiple entities within the same group, the name of the group shall suffice). 

  Duties and Liabilities of Managing Directors and Supervisory Directors 

  Under Dutch law, the management board is charged with the management of the company, subject to the restrictions contained in our articles of association, and the supervisory board is charged with the supervision of the policy of the management board and the general course of affairs of the company and of the business connected with it. Each managing director and supervisory director has a statutory duty to act in the corporate interest of the company and its business. Under Dutch law, the corporate interest extends to the interests of all corporate stakeholders, such as shareholders, creditors, employees, customers and suppliers. The duty to act in the corporate interest of the company also applies in the event of a proposed sale or break-up of the company, provided that the circumstances generally dictate how such duty is to be applied and how the respective interests of various groups of stakeholders should be weighed. Any resolution of the management board regarding a material change in our identity or character requires approval of the general meeting of shareholders. 

  Our board is entitled to represent our company. The power to represent our company also vests in the CEO individually, as well as in any other two managing directors acting jointly. 

  Dividends and Other Distributions 

  Dividends 

  We may only make distributions to our shareholders if our shareholders’ equity (eigen vermogen) exceeds the sum of the paid-up and called-up share capital plus any reserves required by Dutch law or by our articles of association. Under our articles of association, the management board may decide that all or part of the profits shown in our adopted annual accounts are carried to reserves. After reservation by the management board of any profit, the remaining profit will be at the disposal of the general meeting of shareholders at the proposal of our board for distribution, subject to restrictions of Dutch law and approval by our supervisory board. 

  We only make a distribution of dividends to our shareholders after the adoption of our annual accounts demonstrating that such distribution is legally permitted. The management board is permitted, subject to certain requirements, to declare interim dividends without the approval of the general meeting of shareholders, but only with the approval of the supervisory board. 

  Dividends and other distributions shall be made payable not later than the date determined by the management board. Claims to dividends and other distributions not made within five years from the date that such dividends or distributions became payable, will lapse and any such amounts will be considered to have been forfeited to us (verjaring). 

  We have not adopted a dividend policy with respect to future dividends. Subject the restrictions described above, any dividend policy (if we were to adopt one) will depend on many factors, such as our results of operations, financial condition, cash requirements, prospects and other factors deemed relevant by our management board and supervisory board. 

  We do not anticipate paying any cash dividends for the foreseeable future. 

  Exchange Controls 

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  Under Dutch law, there are no exchange controls applicable to the transfer to persons outside of the Netherlands of dividends or other distributions with respect to, or of the proceeds from the sale of, shares of a Dutch company, subject to applicable restrictions under sanctions and measures, including those concerning export control, pursuant to EU regulations, the Sanctions Act 1977 (Sanctiewet 1977) or other legislation, applicable anti-boycott regulations, anti-money laundering regulations and similar rules. 

  Squeeze-Out Procedures 

  Pursuant to Section 2:92a of the Dutch Civil Code, a shareholder who holds at least 95% of our issued share capital for his own account, alone or together with group companies, may initiate proceedings against the other shareholders jointly for the transfer of their shares to such shareholder. The proceedings are held before the Enterprise Chamber of the Amsterdam Court of Appeal, or the Enterprise Chamber, (Ondernemingskamer), and can be instituted by means of a writ of summons served upon each of the other shareholders in accordance with the provisions of the Dutch Code of Civil Procedure (Wetboek van Burgerlijke Rechtsvordering). The Enterprise Chamber may grant the claim for squeeze-out in relation to the other shareholders and will determine the price to be paid for the shares, if necessary, after appointment of one or three experts who will offer an opinion to the Enterprise Chamber on the value to be paid for the shares of the other shareholders. Once the order to transfer becomes final before the Enterprise Chamber, the person acquiring the shares shall give written notice of the date and place of payment and the price to the holders of the shares to be acquired whose addresses are known to him. Unless the addresses of all of them are known to the acquiring person, such person is required to publish the same in a daily newspaper with a national circulation. 

  Dissolution and Liquidation 

  Under our articles of association, we may be dissolved by a resolution of the general meeting of shareholders, subject to a proposal of the management board approved by our supervisory board. In the event of a dissolution, the liquidation shall be effected by the management board, under supervision of our supervisory board, unless the general meeting decides otherwise. During liquidation, the provisions of our articles of association will remain in force as far as possible. To the extent that any assets remain after payment of all debts, those assets shall be distributed to the holders of common shares. 

  Dutch Corporate Governance Code 

  As a listed Dutch public company (naamloze vennootschap), we will be subject to the DCGC. The DCGC contains both principles and best practice provisions that regulate relations between the management board, the supervisory board and the general meeting of shareholders and matters in respect of financial reporting, auditors, disclosure, compliance and enforcement standards. The DCGC is based on a “comply or explain” principle. Accordingly, companies are required to disclose in their statutory annual reports, filed in the Netherlands, whether they comply with the provisions of the DCGC. If they do not comply with these provisions (for example, because of a conflicting Nasdaq requirement), the company is required to give the reasons for such non-compliance. 

  We will not comply with all principles and best practice provisions of the DCGC, including in order to follow market practice or governance practices in the United States. 

   

  Dutch Financial Reporting Supervision Act 

  On the basis of the Dutch Financial Reporting Supervision Act (Wet toezicht financiële verslaggeving), or the FRSA, the Dutch Authority for the Financial Markets (Stichting Autoriteit Financiële Markten), or the AFM, supervises the application of financial reporting standards by Dutch companies whose securities are listed on a Dutch or foreign stock exchange. 

  Pursuant to the FRSA, the AFM has an independent right to (i) request an explanation from us regarding our application of the applicable financial reporting standards and (ii) recommend to us the making available of further explanations. If we do not comply with such a request or recommendation, the AFM may request that the Enterprise Chamber of the Amsterdam Court of Appeal (Ondernemingskamer) order us to (a) make available further explanations as recommended by the AFM, (b) provide an explanation of the way we have applied the applicable 

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  financial reporting standards to our financial reports or (c) prepare our financial reports in accordance with the Enterprise Chamber’s orders. 

  Foreign Investment Legislation 

  Under existing laws of the Netherlands, there are no exchange controls applicable to the transfer to persons outside of the Netherlands of dividends or other distributions with respect to, or of the proceeds from the sale of, shares of a Dutch company, subject to applicable restrictions under sanctions and measures, including those concerning export control, pursuant to EU regulations, the Sanctions Act 1977 (Sanctiewet 1977) or other legislation, applicable anti-boycott regulations, anti-money laundering regulations and similar rules. 

  Transfer Agent and Registrar 

  The transfer agent and registrar for the common shares will be Computershare Trust Company, N.A. 

   

   

  Comparison of Dutch Corporate Law and U.S. Corporate Law

  The following is a comparison between Dutch corporate law, which applies to us, and Delaware corporation law, the law under which many publicly listed corporations in the United States are incorporated. Although we believe this summary is materially accurate, the summary is subject to Dutch law, including Book 2 of the Dutch Civil Code and the DCGC and Delaware corporation law, including the Delaware General Corporation Law, or DGCL. 

  Corporate Governance 

  Duties of Managing and Supervisory Directors 

  The Netherlands. In the Netherlands, a listed company typically has a two-tier board structure with a management board (bestuur) comprised of the managing directors (executive directors) and a supervisory board (raad van commissarissen) comprised of the supervisory directors (non-executive directors). We have a two-tier board structure consisting of our management board and a separate supervisory board. 

  Under Dutch law, the management board is charged with the management of the company, subject to the restrictions contained in our articles of association, and the supervisory board is charged with the supervision of the policy of the management board and the general course of affairs of the company and of the business connected with it. The managing directors may divide their tasks among themselves in or pursuant to the internal rules applicable to the management board. Each managing director and supervisory director has a statutory duty to act in the corporate interest of the company and its business. Under Dutch law, the corporate interest extends to the interests of all corporate stakeholders, such as shareholders, creditors, employees, customers and suppliers. The duty to act in the corporate interest of the company also applies in the event of a proposed sale or break-up of the company, provided that the circumstances generally dictate how such duty is to be applied and how the respective interests of various groups of stakeholders should be weighed. Any resolution of the management board regarding a material change in our identity or character requires approval of the general meeting. 

  The approval of our supervisory board is required for resolutions of the management board, including concerning the following matters: the making of certain proposals to the general meeting (including the issue of shares or the granting of rights to subscribe for shares; the limitation or exclusion of pre-emption rights; the designation or granting of certain authorizations as referred to in our articles of association, the reduction of our issued share capital; the making of a distribution from the Company’s profits or reserves; the determination that all or part of a distribution, instead of being made in cash, shall be made in the form of shares or in the form of assets; the amendment of our articles of association; the entering into of a merger or demerger; the instruction of the management board to apply for the Company’s bankruptcy and our dissolution); the issue of shares or the granting of rights to subscribe for shares; the limitation or exclusion of pre-emption rights; the acquisition of shares by us in our own capital; the drawing up or amendment of our management board rules; the performance of legal acts relating to non-cash contributions on shares; material changes to the identity or the character of the company or its 

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  business; the charging of amounts to be paid up on shares against the company’s reserves; the making of an interim distribution the amendment of the articles of association, the entering into of a merger or demerger, the instruction to apply for the Company’s bankruptcy, the Company’s dissolution; and such other resolutions as the supervisory board shall have specified in a resolution to that effect and notified to the management board. The absence of the approval of the supervisory board shall result in the relevant resolution being null and void but shall not affect the powers of representation of the management board or of the managing directors. 

  Our management board is entitled to represent us. The power to represent us also vests in the chief executive officer individually, as well as in any other two managing directors acting jointly. 

  Delaware. The board of directors bears the ultimate responsibility for managing the business and affairs of a corporation. In discharging this function, directors of a Delaware corporation owe fiduciary duties of care and loyalty to the corporation and to its stockholders. Delaware courts have decided that the directors of a Delaware corporation are required to exercise informed business judgment in the performance of their duties. Informed business judgment means that the directors have informed themselves of all material information reasonably available to them. Delaware courts have also imposed a heightened standard of conduct upon directors of a Delaware corporation who take any action designed to defeat a threatened change in control of the corporation. In addition, under Delaware law, when the board of directors of a Delaware corporation approves the sale or break-up of a corporation, the board of directors may, in certain circumstances, have a duty to obtain the highest value reasonably available to the stockholders. 

  Director Terms 

  The Netherlands. The DCGC provides the following best practice recommendations on the terms for tenure of managing directors and supervisory directors: 

  				
	 
	•
	 
	Managing directors should be appointed for a maximum period of four years, without limiting the number of consecutive terms managing directors may serve. 

   

  				
	 
	•
	 
	Supervisory directors should be appointed for two consecutive periods of no more than four years. Thereafter, supervisory directors may be reappointed for a maximum of two consecutive periods of no more than two years, provided that the reasons for any reappointment after an eight-year term of office should be disclosed in the company’s annual report. 

  The general meeting shall at all times be entitled to suspend or dismiss a managing director or supervisory director. Under our articles of association, the general meeting may only adopt a resolution to suspend or dismiss such director by at least a two-thirds majority of the votes cast, provided that such majority represents more than half of the issued share capital, unless the resolution is passed at the proposal of the supervisory board, in which case a simple majority of the votes cast is sufficient. In addition, the supervisory board may at any time suspend a managing director. A suspension by the supervisory board can at any time be lifted by the general meeting. If a managing director is suspended and the general meeting does not resolve to dismiss him or her within three months from the date of such suspension, the suspension shall lapse. 

  Delaware. The DGCL generally provides for a one-year term for directors, but permits directorships to be divided into up to three classes with up to three-year terms, with the years for each class expiring in different years, if permitted by the certificate of incorporation, an initial bylaw or a bylaw adopted by the stockholders. A director elected to serve a term on a “classified” board may not be removed by stockholders without cause. There is no limit in the number of terms a director may serve. 

  Director Vacancies 

  The Netherlands. Our supervisory board can temporarily fill vacancies in its midst caused by temporary absence or incapacity of supervisory directors without requiring a shareholder vote. If all of our supervisory directors are absent or incapacitated, our management shall be attributed to the person who most recently ceased to hold office as the chairperson of our supervisory board, provided that if such former chairperson is unwilling or unable to accept that position, the our management shall be attributed to the person who most recently ceased to hold office as our Chief 

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  Executive Officer. If such former Chief Executive Officer is also unwilling or unable to accept that position, our management shall be attributed to one or more persons whom the general meeting. The person(s) charged with our management in this manner may designate one or more persons to be charged with our management instead of, or together with, such person(s). 

  Under Dutch law, managing directors and supervisory directors of a company like ours are appointed and reappointed by the general meeting. Under our articles of association, managing directors and supervisory directors are appointed by the general meeting upon the binding nomination by our supervisory board. However, the general meeting may at all times overrule the binding nomination by a resolution adopted by at least a two-thirds majority of the votes cast, provided that such majority represents more than half of the issued share capital. If the general meeting overrules the binding nomination, the supervisory board shall make a new nomination. 

  Our supervisory board has adopted a diversity policy for the composition of our management board and our supervisory board, as well as a profile for the composition of the supervisory board. The supervisory board shall make any nomination for the appointment of a managing director or supervisory director with due regard to the rules and principles set forth in such diversity policy and profile, as applicable. 

  Under Dutch law, when nominating a person for appointment or reappointment as a supervisory director, the nomination must be supported by reasons (if it concerns a reappointment, past performance must be taken into consideration) and the following information about such person must be provided: (i) age and profession; (ii) the aggregate nominal value of the shares held in the company’s capital; (iii) present and past positions, to the extent relevant for the performance of the tasks of a supervisory director; and (iv) the name of each entity where such person already holds a position as supervisory director or non-executive director (in case of multiple entities within the same group, the name of the group shall suffice). 

  Delaware. The DGCL provides that vacancies and newly created directorships may be filled by a majority of the directors then in office (even though less than a quorum) unless (i) otherwise provided in the certificate of incorporation or bylaws of the corporation or (ii) the certificate of incorporation directs that a particular class of stock is to elect such director, in which case any other directors elected by such class, or a sole remaining director elected by such class, will fill such vacancy. 

  Conflict-of-Interest Transactions 

  The Netherlands. Under Dutch law and our articles of association, our managing directors and supervisory directors shall not take part in any discussion or decision-making that involves a subject or transaction in relation to which he or she has a direct or indirect personal conflict of interest with us. Such a conflict of interest would generally arise if the managing director or supervisory director concerned is unable to serve our interests and business connected with it with the required level of integrity and objectivity due to the existence of the conflicting personal interest. Our articles of association provide that a managing director shall not participate in the deliberations and decision-making of the management board on a matter in relation to which he has a direct or indirect personal interest that conflicts with our interests and of the business connected with it. If, as a result thereof, no resolution can be passed by the management board, the resolution shall be passed by the supervisory board. Our articles of association further provide that a supervisory director shall not participate in the deliberations and decision-making of the supervisory board on a matter in relation to which he has a direct or indirect personal interest that conflicts with our interests and of business connected with it. If, as a result thereof, no resolution can be passed by the supervisory board, the resolution may nevertheless be passed by the supervisory board as if none of the supervisory directors has such conflict of interests. 

  The DCGC provides the following best practice recommendations in relation to conflicts of interests in respect of managing directors or supervisory directors: 

  				
	 
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	A managing director should report any potential conflict of interest in a transaction that is of material significance to the company and/or to such person to the chairperson of the supervisory board and to the other members of the management board without delay. The managing director should provide all relevant information in that regard, including the information relevant to the situation concerning his or her spouse, registered partner or other life companion, foster child and relatives by blood or marriage up to the second degree. 

   

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	A supervisory director should report any conflict of interest or potential conflict of interest in a transaction that is of material significance to the company and/or to such person to the chairman of the supervisory board without delay and should provide all relevant information in that regard, including the relevant information pertaining to his or her spouse, registered partner or other life companion, foster child and relatives by blood or marriage up to the second degree. If the chairman of the supervisory board has a conflict of interest or potential conflict of interest, he or she should report this to the vice-chairman of the supervisory board without delay.

   

  		
	 
	 

   

  				
	 
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	The supervisory board should decide, outside the presence of the managing director or supervisory director concerned, whether there is a conflict of interest. 

   

  				
	 
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	All transactions in which there are conflicts of interest with managing directors or supervisory directors should be agreed on terms that are customary in the market. 

   

  				
	 
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	Decisions to enter into transactions in which there are conflicts of interest with managing directors or supervisory directors that are of material significance to the company and/or to the relevant managing directors or supervisory directors should require the approval of the supervisory board. Such transactions should be published in the annual report, together with a description of the conflict of interest and a declaration that the relevant best practice provisions of the DCGC have been complied with. 

  Delaware. The DGCL generally permits transactions involving a Delaware corporation and an interested director of that corporation if: 

  				
	 
	•
	 
	the material facts as to the director’s relationship or interest are disclosed and a majority of disinterested directors consent; 

   

  				
	 
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	the material facts are disclosed as to the director’s relationship or interest and a majority of shares entitled to vote thereon consent; or 

   

  				
	 
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	the transaction is fair to the corporation at the time it is authorized by the board of directors, a committee of the board of directors or the stockholders. 

  Proxy Voting by Directors 

  The Netherlands. An absent managing director may issue a proxy for a specific management board meeting but only to another managing director in writing or by electronic means. An absent supervisory director may issue a proxy for a specific supervisory board meeting but only to another supervisory director in writing or by electronic means. 

  Delaware. A director of a Delaware corporation may not issue a proxy representing the director’s voting rights as a director. 

  Shareholder Rights 

  Voting Rights 

  The Netherlands. In accordance with Dutch law and our articles of association, each issued common share confers the right to cast one vote at the general meeting. Each holder of shares may cast as many votes as it holds shares. No votes may be cast on shares that are held by us or our direct or indirect subsidiaries or on shares for which we or our subsidiaries hold depository receipts. Nonetheless, the holders of a right of use and enjoyment (vruchtgebruik) and the holders of a right of pledge (pandrecht) in respect of shares held by us or our subsidiaries in our share capital are not excluded from the right to vote on such shares, if the right of use and enjoyment (vruchtgebruik) or the right of 

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  pledge (pandrecht) was granted prior to the time such shares were acquired by us or any of our subsidiaries. Neither we nor any of our subsidiaries may cast votes in respect of a share on which we or such subsidiary holds a right of use and enjoyment (vruchtgebruik) or a right of pledge (pandrecht). Shares which are not entitled to voting rights pursuant to the preceding sentences will not be taken into account for the purpose of determining the number of shareholders that vote and that are present or represented, or the amount of the share capital that is provided or that is represented at a general meeting of shareholders. 

   

  In accordance with our articles of association, for each general meeting, the management board may determine that a record date will be applied in order to establish which shareholders are entitled to attend and vote at the general meeting. Such record date shall be the 28th day prior to the day of the general meeting. The record date and the manner in which shareholders can register and exercise their rights will be set out in the notice of the meeting which must be published in a Dutch daily newspaper with national distribution at least 15 calendar days prior to the meeting (and such notice may therefore be published after the record date for such meeting). Under our articles of association, shareholders and others with meeting rights under Dutch law must notify us in writing or by electronic means of their identity and intention to attend the general meeting. This notice must be received by us ultimately on the seventh day prior to the general meeting, unless indicated otherwise when such meeting is convened. 

  Delaware. Under the DGCL, each stockholder is entitled to one vote per share of stock, unless the certificate of incorporation provides otherwise. In addition, the certificate of incorporation may provide for cumulative voting at all elections of directors of the corporation, or at elections held under specified circumstances. Either the certificate of incorporation or the bylaws may specify the number of shares and/or the amount of other securities that must be represented at a meeting in order to constitute a quorum, but in no event will a quorum consist of less than one-third of the shares entitled to vote at a meeting. 

  Stockholders as of the record date for the meeting are entitled to vote at the meeting, and the board of directors may fix a record date that is no more than 60 nor less than 10 days before the date of the meeting, and if no record date is set then the record date is the close of business on the day next preceding the day on which notice is given, or if notice is waived then the record date is the close of business on the day next preceding the day on which the meeting is held. The determination of the stockholders of record entitled to notice or to vote at a meeting of stockholders shall apply to any adjournment of the meeting, but the board of directors may fix a new record date for the adjourned meeting. 

  Shareholder Proposals 

  The Netherlands. Pursuant to our articles of association, extraordinary general meetings will be held whenever required under Dutch law or whenever our management board or supervisory board deems such to be appropriate or necessary. Pursuant to Dutch law, one or more shareholders or others with meeting rights under Dutch law representing at least one-tenth of the issued share capital may request us to convene a general meeting, setting out in detail the matters to be discussed. If we have not taken the steps necessary to ensure that such meeting can be held within six weeks after the request, the requesting party or parties may, on their application, be authorized by the competent Dutch court in preliminary relief proceedings to convene a general meeting. The court shall disallow the application of it does not appear that the requesting party or parties has/have previously requested our board to convene a general meeting of shareholders and or board has not taken the necessary steps so that the general meeting of shareholders could be held within six weeks after the request. 

  Also, the agenda for a general meeting shall include such items requested by one or more shareholders, and others with meeting rights under Dutch law, representing at least 3% of the issued share capital, except where the articles of association state a lower percentage. Our articles of association do not state such lower percentage. Requests must be made in writing or by electronic means and received by us at least 60 days before the day of the meeting. 

  In accordance with the DCGC and our articles of association, a shareholder shall exercise the right of putting an item on the agenda only after consulting the management board in that respect. If one or more shareholders intend to request that an item be put on the agenda that may result in a change in the company’s strategy (for example, the removal of managing directors or supervisory directors), the management board must be given the opportunity to invoke a reasonable period to respond to such intention. Such period shall not exceed 180 days (or such other period as may be stipulated for such purpose by Dutch law and/or the DCGC from time to time). If invoked, the 

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  management board must use such response period for further deliberation and constructive consultation, in any event with the shareholders(s) concerned, and shall explore the alternatives. At the end of the response time, the management board shall report on this consultation and the exploration of alternatives to the general meeting. This shall be supervised by our supervisory board. The response period may be invoked only once for any given general meeting and shall not apply: (a) in respect of a matter for which a response period has been previously invoked; or (b) if a shareholder holds at least 75% of the company’s issued share capital as a consequence of a successful public bid. The response period may also be invoked in response to shareholders or others with meeting rights under Dutch law requesting that a general meeting be convened, as described above. 

  Delaware. Delaware law does not specifically grant stockholders the right to bring business before an annual or special meeting. However, if a Delaware corporation is subject to the SEC’s proxy rules, a stockholder who owns at least $2,000 in market value, or 1% of the corporation’s securities entitled to vote, may propose a matter for a vote at an annual or special meeting in accordance with those rules. 

  Action by Written Consent 

  The Netherlands. Under Dutch law, shareholders’ resolutions may be adopted in writing without holding a meeting of shareholders, provided that (i) the articles of association allow such action by written consent, (ii) the company has not issued bearer shares or, with its cooperation, depository receipts for shares in its capital, and (iii) the resolution is adopted unanimously by all shareholders that are entitled to vote. Although our articles of association allow for shareholders’ resolutions to be adopted in writing, the requirement of unanimity renders the adoption of shareholder resolutions without holding a meeting not feasible for us as a publicly traded company. 

  Delaware. Although permitted by Delaware law, publicly listed companies do not typically permit stockholders of a corporation to take action by written consent. 

  Appraisal Rights 

  The Netherlands. Subject to certain exceptions, Dutch law does not recognize the concept of appraisal or dissenters’ rights. However, Dutch law does provide for squeeze-out procedures as described under “Dividends and Other Distributions — Squeeze-Out Procedures.” Also, Dutch law provides for cash exit rights in certain situations for dissenting shareholders of a company organized under Dutch law entering into certain types of mergers. In those situations, a dissenting shareholder may file a claim with the Dutch company for compensation. Such compensation shall then be determined by one or more independent experts. The shares of such shareholder that are subject to such claim will cease to exist as of the moment of entry into effect of the merger. 

  Delaware. The DGCL provides for stockholder appraisal rights, or the right to demand payment in cash of the judicially determined fair value of the stockholder’s shares, in connection with certain mergers and consolidations. 

  Shareholder Suits 

  The Netherlands. In the event a third-party is liable to a Dutch company, only the company itself can bring a civil action against that party. The individual shareholders do not have the right to bring an action on behalf of the company. Only in the event that the cause for the liability of a third-party to the company also constitutes a tortious act directly against a shareholder does that shareholder have an individual right of action against such third-party in its own name. Dutch law provides for the possibility to initiate such actions collectively, in which a foundation or an association can act as a class representative and has standing to commence proceedings and claim damages if certain criteria are met. The court will first determine if those criteria are met. If so, the case will go forward as a class action on the merits after a period allowing class members to opt out from the case has lapsed. All members of the class who are residents of the Netherlands and who did not opt-out will be bound to the outcome of the case. Residents of other countries must actively opt in in order to be able to benefit from the class action. The defendant is not required to file defenses on the merits prior to the merits phase having commenced. It is possible for the parties to reach a settlement during the merits phase. Such a settlement can be approved by the court, which approval will then bind the members of the class, subject to a second opt-out. This new regime applies to claims brought after January 1, 2020 and which relate to certain events that occurred prior to that date. For other matters, the old Dutch 

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  class actions regime will apply. Under the old regime, no monetary damages can be sought. Also, a judgment rendered under the old regime will not bind individual class members. Even though Dutch law does not provide for derivative suits, directors and officers can still be subject to liability under U.S. securities laws. 

  Delaware. Under the DGCL, a stockholder may bring a derivative action on behalf of the corporation to enforce the rights of the corporation. An individual also may commence a class action suit on behalf of himself and other similarly situated stockholders where the requirements for maintaining a class action under Delaware law have been met. A person may institute and maintain such a suit only if that person was a stockholder at the time of the transaction which is the subject of the suit. In addition, under Delaware case law, the plaintiff normally must be a stockholder at the time of the transaction that is the subject of the suit and throughout the duration of the derivative suit. Delaware law also requires that the derivative plaintiff make a demand on the directors of the corporation to assert the corporate claim before the suit may be prosecuted by the derivative plaintiff in court, unless such a demand would be futile. 

  Repurchase of Shares 

  The Netherlands. Under Dutch law, when issuing shares, a public company such as ours may not subscribe for newly issued shares in its own capital. Such company may, however, subject to certain restrictions of Dutch law and its articles of association, acquire shares in its own capital. A listed public company such as ours may acquire fully paid shares in its own capital at any time for no valuable consideration. Furthermore, subject to certain provisions of Dutch law and its articles of association, such company may repurchase fully paid shares in its own capital if (i) the company’s shareholders’ equity less the payment required to make the acquisition does not fall below the sum of paid-in and called-up share capital plus any reserves required by Dutch law or its articles of association and (ii) the aggregate nominal value of shares of the company which the company acquires, holds or on which the company holds a pledge (pandrecht) or which are held by a subsidiary of the company, would not exceed 50% of its then-current issued share capital. Such company may only acquire its own shares if its general meeting has granted the management board the authority to effect such acquisitions. 

  An acquisition of common shares for a consideration must be authorized by our general meeting. Such authorization may be granted for a maximum period of 18 months and must specify the number of common shares that may be acquired, the manner in which common shares may be acquired and the price limits within which common shares may be acquired. The actual acquisition may only be effected pursuant to a resolution of our management board, with the approval of our supervisory board. Our management board, subject to approval by our supervisory board, is authorized, for a period of 18 months after we converted into the legal form of an N.V. to cause the repurchase of common shares by us of up to 20% of our issued share capital, for a price per share not exceeding 110% of the average market price of our common shares on Nasdaq (such average market price being the average of the closing prices on each of the five consecutive trading days preceding the date the acquisition is agreed upon by us). These shares may be used to deliver shares underlying awards granted pursuant to our equity-based compensation plans. 

  No authorization of the general meeting is required if fully paid common shares are acquired by us with the intention of transferring such common shares to our employees under an applicable employee share purchase plan. 

  Delaware. Under the DGCL, a corporation may purchase or redeem its own shares unless the capital of the corporation is impaired or the purchase or redemption would cause an impairment of the capital of the corporation. A Delaware corporation may, however, purchase or redeem out of capital any of its preferred shares or, if no preferred shares are outstanding, any of its own shares if such shares will be retired upon acquisition and the capital of the corporation will be reduced in accordance with specified limitations. 

   

  Anti-Takeover Provisions 

  The Netherlands. Under Dutch law, various protective measures are possible and permissible within the boundaries set by Dutch law and Dutch case law. In this respect, certain provisions of our articles of association may make it more difficult for a third-party to acquire control of us or effect a change in our management board and supervisory board. These provisions include: 

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	a provision that our managing directors and supervisory directors are appointed on the basis of a binding nomination prepared by our supervisory board which can only be overruled by a two-thirds majority of votes cast representing more than 50% of our issued share capital; 

   

  				
	 
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	a provision that our managing directors and supervisory directors may only be dismissed by the general meeting by a two-thirds majority of votes cast representing more than 50% of our issued share capital (unless the dismissal is proposed by the supervisory board in which case a simple majority of the votes would be sufficient); 

   

  				
	 
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	a provision allowing, among other matters, the former chairman of our supervisory board or our former CEO, as applicable, to manage our affairs if all of our managing directors and supervisory directors are removed from office and to appoint others to be charged with the management and supervision of our affairs, until new managing directors and supervisory directors are appointed by the general meeting on the basis of a binding nomination discussed above; and 

   

  				
	 
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	a requirement that certain matters, including an amendment of our articles of association, may only be brought to our shareholders for a vote upon a proposal by our management board. 

  In addition, Dutch law allows for staggered multi-year terms of our managing directors and supervisory directors, as a result of which only part of our managing directors and supervisory directors may be subject to appointment or re-appointment in any one year. 

  Delaware. In addition to other aspects of Delaware law governing fiduciary duties of directors during a potential takeover, the DGCL also contains a business combination statute that protects Delaware companies from hostile takeovers and from actions following the takeover by prohibiting some transactions once an acquirer has gained a significant holding in the corporation. 

  Section 203 of the DGCL Law prohibits “business combinations,” including mergers, sales and leases of assets, issuances of securities and similar transactions by a corporation or a subsidiary with an interested stockholder that beneficially owns 15% or more of a corporation’s voting stock, within three years after the person becomes an interested stockholder, unless: 

  				
	 
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	the transaction that will cause the person to become an interested stockholder is approved by the board of directors of the target prior to the transactions; 

   

  				
	 
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	after the completion of the transaction in which the person becomes an interested stockholder, the interested stockholder holds at least 85% of the voting stock of the corporation not including shares owned by persons who are directors and officers of interested stockholders and shares owned by specified employee benefit plans; or 

   

  				
	 
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	after the person becomes an interested stockholder, the business combination is approved by the board of directors of the corporation and holders of at least 66.67% of the outstanding voting stock, excluding shares held by the interested stockholder. 

  A Delaware corporation may elect not to be governed by Section 203 by a provision contained in the original certificate of incorporation of the corporation or an amendment to the original certificate of incorporation or to the bylaws of the company, which amendment must be approved by a majority of the shares entitled to vote and may not be further amended by the board of directors of the corporation. Such an amendment is not effective until 12 months following its adoption. 

   

  Inspection of Books and Records 

  The Netherlands. The management board and the supervisory board provide the general meeting, within a reasonable amount of time, all information that the shareholders require for the exercise of their powers, unless this would be contrary to an overriding interest of our company. If the management board or supervisory board invokes such an overriding interest, it must give reasons. 

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  Delaware. Under the DGCL, any stockholder may inspect for any proper purpose certain of the corporation’s books and records during the corporation’s usual hours of business. 

  Dismissal of Directors 

  The Netherlands. Under our articles of association, the general meeting shall at all times be entitled to dismiss a managing director or supervisory director. The general meeting may only adopt a resolution to suspend or dismiss a managing director or supervisory director by at least a two-thirds majority of the votes cast, provided that such majority represents more than half of the issued share capital, unless the proposal was made by the supervisory board, in which latter case a simple majority is sufficient. The DCGC recommends that the general meeting can pass a resolution to dismiss a director by simple majority, representing no more than one-third of the issued share capital. 

  Delaware. Under the DGCL, any director or the entire board of directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors, except (i) unless the certificate of incorporation provides otherwise, in the case of a corporation whose board is classified, stockholders may effect such removal only for cause, or (ii) in the case of a corporation having cumulative voting, if less than the entire board is to be removed, no director may be removed without cause if the votes cast against his removal would be sufficient to elect him if then cumulatively voted at an election of the entire board of directors, or, if there are classes of directors, at an election of the class of directors of which he or she is a part. 

  Issuance of Shares 

  The Netherlands. Under Dutch law, a company’s general meeting is the corporate body authorized to resolve on the issuance of shares and the granting of rights to subscribe for shares. The general meeting can delegate such authority to another corporate body of the company, such as the management board, for a period not exceeding five years; this authorization may only be extended from time to time for a maximum period of five years. Our management board, with the approval of our supervisory board, is authorized, for a period of five years after we converted into the legal form of an N.V., to issue shares or grant rights to subscribe for shares up to our authorized share capital from time to time. We may not subscribe for our own shares on issue. 

  Delaware. All creation of shares require the board of directors to adopt a resolution or resolutions, pursuant to authority expressly vested in the board of directors by the provisions of the company’s certificate of incorporation. 

  Preemptive Rights 

  The Netherlands. Under Dutch law, in the event of an issuance of common shares, each shareholder will have a pro rata preemptive right in proportion to the aggregate nominal value of the common shares held by such holder (with the exception of common shares to be issued to employees or common shares issued against a contribution other than in cash or pursuant to the exercise of a previously acquired right to subscribe for shares). Under our articles of association, the preemptive rights in respect of newly issued common shares may be restricted or excluded by a resolution of the general meeting. Another corporate body, such as the management board, may restrict or exclude the preemptive rights in respect of newly issued common shares if it has been designated as the authorized body to do so by the general meeting. Such designation can be granted for a period not exceeding five years. A resolution of the general meeting to restrict or exclude the preemptive rights or to designate another corporate body as the authorized body to do so requires a majority of not less than two-thirds of the votes cast, if less than one-half of our issued share capital is represented at the meeting. Our management board, with the approval of our supervisory board, is authorized, for a period not exceeding five years after we converted into the legal form of an N.V. to limit or exclude preemptive rights in relation to an issuance of shares or a grant of rights to subscribe for shares that the management board is authorized to resolve upon (see “Issuance of Shares” above). 

  Delaware. Under the DGCL, stockholders have no preemptive rights to subscribe for additional issues of stock or to any security convertible into such stock unless, and to the extent that, such rights are expressly provided for in the certificate of incorporation. 

  Dividends 

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  The Netherlands. Dutch law provides that dividends (if it concerns a distribution of profits) may be distributed after adoption of the annual accounts by the general meeting from which it appears that such dividend distribution is allowed. Moreover, dividends may be distributed, whether as a distribution of profits or of freely distributable reserves, only to the extent the shareholders’ equity exceeds the amount of the paid-in and called-up issued share capital and the reserves that must be maintained under the law or the articles of association. Interim dividends may be declared as provided in the articles of association and may be distributed to the extent that the shareholders’ equity exceeds the amount of the paid-in and called-up issued share capital plus any reserves as described above as apparent from our interim financial statements prepared under Dutch law. 

  Under our articles of association, our management board, with the approval of our supervisory board, may decide that all or part of the profits are carried to reserves. After reservation of any profit, the remaining profit will be at the disposal of the general meeting for distribution, subject to restrictions of Dutch law and approval by our supervisory board. Our management board is permitted, subject to certain requirements, to declare interim dividends without the approval of the general meeting, but only with the approval of the supervisory board. Dividends and other distributions shall be made payable not later than the date determined by the management board. Claims to dividends and other distributions not made within five years from the date that such dividends or distributions became payable will lapse and any such amounts will be considered to have been forfeited to us (verjaring). 

  Delaware. Under the DGCL, a Delaware corporation may pay dividends out of its surplus (the excess of net assets over capital), or in case there is no surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year (provided that the amount of the capital of the corporation is not less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets). In determining the amount of surplus of a Delaware corporation, the assets of the corporation, including stock of subsidiaries owned by the corporation, must be valued at their fair market value as determined by the board of directors, without regard to their historical book value. Dividends may be paid in the form of common stock, property or cash. 

  Shareholder Vote on Certain Reorganizations 

  The Netherlands. Under Dutch law, the general meeting must approve resolutions of the management board relating to a significant change in the identity or the character of the company or the business of the company, which includes: 

  				
	 
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	a transfer of the business or virtually the entire business to a third party; 

   

  				
	 
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	the entry into or termination of a long-term cooperation of the company or a subsidiary with another legal entity or company or as a fully liable partner in a limited partnership or general partnership, if such cooperation or termination is of a far-reaching significance for the company; and 

	 
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	the acquisition or divestment by the company or a subsidiary of a participating interest in the capital of a company having a value of at least one-third of the amount of its assets according to its balance sheet and explanatory notes or, if the company prepares a consolidated balance sheet, according to its consolidated balance sheet and explanatory notes in the last adopted annual accounts of the company. 

  Delaware. Under the DGCL, the vote of a majority of the outstanding shares of capital stock entitled to vote thereon generally is necessary to approve a merger or consolidation or the sale of all or substantially all of the assets of a corporation. The DGCL permits a corporation to include in its certificate of incorporation a provision requiring for any corporate action the vote of a larger portion of the stock or of any class or series of stock than would otherwise be required. 

  Under the DGCL, no vote of the stockholders of a surviving corporation to a merger is needed, however, unless required by the certificate of incorporation, if (i) the agreement of merger does not amend in any respect the certificate of incorporation of the surviving corporation, (ii) the shares of stock of the surviving corporation are not changed in the merger and (iii) the number of shares of common stock of the surviving corporation into which any other shares, securities or obligations to be issued in the merger may be converted does not exceed 20% of the surviving corporation’s common stock outstanding immediately prior to the effective date of the merger. In addition, 

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  stockholders may not be entitled to vote in certain mergers with other corporations that own 90% or more of the outstanding shares of each class of stock of such corporation, but the stockholders will be entitled to appraisal rights. 

  Remuneration of Managing Directors and Supervisory Directors 

  The Netherlands. Dutch law does not provide for limitations with respect to the aggregate annual compensation paid to our directors, provided that such compensation is consistent with our compensation policy. Changes to such compensation policy will require a vote of our general meeting by simple majority of the votes cast. The supervisory board determines the remuneration of individual managing directors with due observance of the compensation policy at the recommendation of our compensation committee. A proposal with respect to remuneration schemes in the form of shares or rights to shares in which managing directors may participate is subject to approval by our general meeting. Such a proposal must set out at least the maximum number of shares or rights to subscribe for shares to be granted to the managing directors and the criteria for granting or amendment. The compensation for our supervisory directors is set by the general meeting. 

  Delaware. Under the DGCL, the stockholders do not generally have the right to approve the compensation policy for directors or the senior management of the corporation, although certain aspects of the compensation policy may be subject to stockholder vote due to the provisions of U.S. federal securities and tax law. 

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