UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

SCHEDULE 13D

UNDER THE SECURITIES EXCHANGE ACT OF 1934

(Amendment No. 6)*

 

 

F45 Training Holdings Inc.

(Name of Issuer)

Common Stock, par value $0.00005 per share

(Title and Class of Securities)

30322L101

(CUSIP Number)

Anthony Pasqua

Kennedy Lewis Management LP

225 Liberty Street, Suite 4210

New York, NY 10281

(212) 782-3480

Daniel I. Fisher

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park

New York, NY 10036

(212) 872-1000

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

October 20, 2023

(Date of Event Which Requires Filing of Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box. ☐

 

 

Note. Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent.

 

 

 

*

The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes)

 

 

 

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Management LP

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 14,061,993

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 14,061,993

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 14,061,993

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 14.4%

(14)  

 Type of Reporting Person (See Instructions):

 

 PN, IA

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 KLM GP LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 14,061,993

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 14,061,993

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 14,061,993

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 14.4%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO, HC

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Investment Management LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 14,061,993

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 14,061,993

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 14,061,993

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 14.4%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO, HC

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Investment Holdings LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 2,109,759

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 2,109,759

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 2,109,759

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 2.2%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Investment Holdings II LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 11,952,234

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 11,952,234

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 11,952,234

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 12.3%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Capital Partners Master Fund LP

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 WC

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Cayman Islands

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 2,109,759

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 2,109,759

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 2,109,759

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 2.2%

(14)  

 Type of Reporting Person (See Instructions):

 

 PN

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis GP LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 2,109,759

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 2,109,759

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 2,109,759

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 2.2%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Capital Partners Master Fund II LP

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 WC

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Cayman Islands

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 9,728,141

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 9,728,141

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 9,728,141

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 10.0%

(14)  

 Type of Reporting Person (See Instructions):

 

 PN

Schedule 13D

CUSIP No. 30322L101

 

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis GP II LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 9,728,141

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 9,728,141

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 9,728,141

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 10.0%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis Capital Partners Master Fund III LP

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 WC

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Cayman Islands

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 2,224,093

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 2,224,093

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 2,224,093

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 2.3%

(14)  

 Type of Reporting Person (See Instructions):

 

 PN

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Kennedy Lewis GP III LLC

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 Delaware

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 2,224,093

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 2,224,093

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 2,224,093

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 2.3%

(14)  

 Type of Reporting Person (See Instructions):

 

 OO

Schedule 13D

CUSIP No. 30322L101

 

 (1)    

 Name of Reporting Persons:

 

 Darren Richman

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 USA

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 14,061,993

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 14,061,993

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 14,061,993

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 14.4%

(14)  

 Type of Reporting Person (See Instructions):

 

 IN, HC

Schedule 13D

CUSIP No. 30322L101

 

 

 (1)    

 Name of Reporting Persons:

 

 David Chene

 (2)  

 Check the Appropriate Box if a Member of a Group (See Instructions):

 (a) ☐  (b) ☐

 

 (3)  

 SEC Use Only:

 

 (4)  

 Source of Funds (See Instructions):

 

 AF

 (5)  

 Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e):

 

 ☐

 (6)  

 Citizenship or Place of Organization:

 

 USA

NUMBER OF

SHARES

 BENEFICIALLY 

OWNED BY

EACH

REPORTING

PERSON

WITH:

 

     (7)     

 Sole Voting Power

 

 14,061,993

    (8)   

 Shared Voting Power

 

 0

    (9)   

 Sole Dispositive Power

 

 14,061,993

   (10)   

 Shared Dispositive Power

 

 0

(11)    

 Aggregate Amount Beneficially Owned by Each Reporting Person:

 

 14,061,993

(12)  

 Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions):

 

 ☐

(13)  

 Percent of Class Represented by Amount in Row (11):

 

 14.4%

(14)  

 Type of Reporting Person (See Instructions):

 

 IN, HC

AMENDMENT NO. 6 TO SCHEDULE 13D

The following constitutes Amendment No. 6 (“Amendment No. 6”) to the Schedule 13D filed with the Securities and Exchange Commission (“SEC”) by Kennedy Lewis Management LP (the “Adviser”), KLM GP LLC (“KLM”), Kennedy Lewis Investment Management LLC (“Kennedy Lewis Investment Management”), Kennedy Lewis Investment Holdings LLC (“Holdings I”), Kennedy Lewis Investment Holdings II LLC (“Holdings II”), Kennedy Lewis Capital Partners Master Fund LP (“Master Fund I”), Kennedy Lewis GP LLC (“Fund I GP”), Kennedy Lewis Capital Partners Master Fund II LP (“Master Fund II”), Kennedy Lewis GP II LLC (“Fund II GP”), Kennedy Lewis Capital Partners Master Fund III LP (“Master Fund III”), Kennedy Lewis GP III LLC (“Fund III GP”), Darren Richman and David Chene (collectively, the “Reporting Persons”) on August 31, 2022, as amended by Amendment No. 1 filed on September 30, 2022, Amendment No. 2 filed on October 18, 2022, Amendment No. 3 filed on February 15, 2023, Amendment No. 4 filed on May 26, 2023, and Amendment No. 5 filed on July 27, 2023. This Amendment No. 6 amends and supplements the Schedule 13D as specifically set forth herein.

All capitalized terms contained herein but not otherwise defined shall have the meanings ascribed to such terms in the Schedule 13D, as amended. Information given in response to each item shall be deemed incorporated by reference in all other items, as applicable.

 

ITEM 2.

IDENTITY AND BACKGROUND

Items 2(c), (d) and (e) of the Schedule 13D are hereby amended and restated as follows:

(c) The Reporting Persons are primarily engaged in the business of investing. The Adviser acts as investment adviser to Master Fund I, Master Fund II and Master Fund III (collectively, the “Funds”). KLM is the general partner of the Adviser. Kennedy Lewis Investment Management is the sole owner and control person of KLM. Kennedy Lewis Investment Management is controlled by its board of managers. Messrs. David Chene and Darren Richman are the effective control persons of Kennedy Lewis Investment Management. Fund I GP is the general partner of Master Fund I. Holdings I is the managing member of Fund I GP. Holdings I is controlled by its board of managers. Messrs. Chene and Richman are the effective control persons of Holdings I. Fund II GP is the general partner of Master Fund II. Holdings II is the managing member of Fund II GP. Holdings II is controlled by its board of managers. Messrs. Chene and Richman are the effective control persons of Holdings II. Fund III GP is the general partner of Master Fund III. Holdings II is the managing member of Fund III GP. Holdings II is controlled by its board of managers. Messrs. Chene and Richman are the effective control persons of Holdings II. Schedule A hereto sets forth the names and other required information regarding the members of the board of managers of each of Kennedy Lewis Investment Management, Holdings I and Holding II (collectively, the “Scheduled Persons”). Except as otherwise disclosed in the Schedule 13D, as amended, none of the Scheduled Persons beneficially owns any securities of the Issuer.

(d) and (e) During the past five years, none of the Reporting Persons nor any of the Scheduled Persons has been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

ITEM 4.

PURPOSE OF TRANSACTION

Item 4 of this Schedule 13D is supplemented and superseded, as the case may be, as follows:

Letter Agreement

On October 20, 2023, in connection with the entry by the Issuer into the First Amendment to Subordinated Credit Agreement (the “Credit Agreement Amendment”), entered into as of October 20, 2023, by and among the Issuer, certain subsidiaries of the Issuer, the lenders party thereto, and Alter Domus (US) LLC, as administrative agent for the secured parties under the Credit Agreement Amendment, the Issuer, Kennedy Lewis Investment Management, Master Fund II and Master Fund III entered into a letter agreement (the “Letter Agreement”) with respect to certain matters relating to the Board of Directors (the “Board”) of the Issuer and to extend the timeline to identify a Chief

Financial Officer candidate under the previously disclosed letter agreement, dated February 14, 2023, among the Issuer, Master Fund II and Master Fund III (the “February Letter Agreement”). Pursuant to the Letter Agreement, the Issuer agreed that promptly after the time that the initial funding under the Credit Agreement Amendment has occurred (the “Funding Time”) (and in any event within five days thereof), the size of the Board will be reduced to 11 directors, and from and after the Funding Time, the Issuer agreed that Kennedy Lewis Investment Management will have the right to nominate up to six individuals to the Board (the “KLIM Directors”). In the Letter Agreement, Kennedy Lewis Investment Management acknowledges and agrees that each of the following existing directors of the Issuer shall be deemed to constitute a KLIM Director as of the date of the Letter Agreement: Eugene Davis, Elizabeth Josefsberg, Anthony Pasqua, Richard Monje and Timothy Bernlohr. To the extent that there are not six KLIM Directors appointed to the Board, the Issuer agreed to take all actions within its control as may be necessary to cause up to six KLIM Directors to be appointed to the Board, with each appointment to occur promptly after designation of an individual as a KLIM Director. The Issuer further agreed that the following directors have tendered their irrevocable resignations, effective immediately following the Funding Time: Lisa Gavales, Steven Scheiwe and Raphael Wallander.

Pursuant to the Letter Agreement, each KLIM Director will be nominated by the Issuer for election to serve as a director on the Board at each applicable annual or special meeting of the Issuer’s stockholders from and after the Funding Time and (i) the Board will recommend that the stockholders of the Issuer vote to elect each KLIM Director as a director of the Issuer at any such annual or special meeting, (ii) the Issuer will use its commercially reasonable efforts (which will include the solicitation of proxies) to obtain the election of each KLIM Director at any such annual or special meeting and (iii) the Issuer will cause all shares of Common Stock represented by proxies granted to it (or any of its representatives) to be voted in favor of the election of each KLIM Director as a director of the Issuer at any such annual or special meeting to the extent permitted pursuant to such proxies. If any KLIM Director is unable or unwilling to serve as a director, resigns as a director, is removed as a director or ceases to be a director for any other reason (including any failure of a KLIM Director to be elected at any meeting of the Issuer’s stockholders), Kennedy Lewis Investment Management shall have the right to designate a replacement KLIM Director and the Issuer shall promptly take all actions within its control to cause such replacement KLIM Director to be appointed to the Board.

If at any time after the previously described changes to the composition of the Board have been implemented (i) the KLIM Directors appointed to the Board represent less than a majority of the directors in office at such time and (ii) Kennedy Lewis Investment Management has designated one or more KLIM Directors that have not been appointed to the Board but if so appointed the KLIM Directors would represent a majority of the directors in office at such time, the Issuer agreed that the Board will not approve any action until such time as the KLIM Directors that have been designated by Kennedy Lewis Investment Management have been appointed to the Board in accordance with the Letter Agreement. In addition, effective upon the Funding Time and for so long as Kennedy Lewis Investment Management has Board designation rights under the Letter Agreement, Kennedy Lewis Investment Management waived the Board nomination right under Article IV of the Stockholders’ Agreement.

In addition, pursuant to the Letter Agreement, the Board has passed a resolution waiving the application of Section 203 of the Delaware General Corporation Law (“Section 203”) to Kennedy Lewis Investment Management and its affiliates. Kennedy Lewis Investment Management acknowledged and agreed that, if at any time following the date of the Letter Agreement, the Issuer has a class of voting stock that is (a) listed on a national securities exchange, or (b) held of record by more than 2,000 stockholders, it shall be a condition to Kennedy Lewis Investment Management or any of its affiliates (as defined in Section 203) entering into or otherwise consummating a business combination (as defined in Section 203) with the Issuer that such business combination be approved by a majority of the members of the Board who are not employees or investment professionals of Kennedy Lewis Investment Management or any of its affiliated investment funds.

Further, promptly after the Funding Time (and in any event within five days thereof), the Board will form a Litigation and Non-Recurring Payables Committee of the Board that will be chaired by Richard Monje, Managing Director and the Head of Legal Affairs and Strategy of the Adviser, and composed only of members subject to the approval of Kennedy Lewis Investment Management.

Pursuant to the Letter Agreement, the parties also agreed to amend the February Side Letter to extend the amount of time for the Issuer to identify a CFO candidate to no later than 270 days following the effective date of the New Credit Agreement; provided, that if the Issuer is using commercially reasonable efforts to identify a CFO candidate, then such 270-day period shall be automatically extended by a single additional 15 days upon notice from the Issuer to Master Fund II and Master Fund III.

The foregoing description of the Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Letter Agreement, which is filed as Exhibit 99.1 and is incorporated herein by reference.

Other Potential Activities

As previously disclosed, on September 30, 2022, the Adviser delivered a Non-Binding Proposal (the “Proposal”) to the Board in respect of a potential offer by one or more funds advised by the Adviser to acquire all of the outstanding shares of Common Stock of the Issuer not already beneficially owned by the Adviser or other stockholders participating in the proposed transaction, at a price per share equal to $4.00 in cash. The Adviser has withdrawn the Proposal.

Going forward, the Reporting Persons will, as and when they deem appropriate, evaluate their equity position in the Issuer and may from time to time, in their discretion, consider proposals and transactions, including, but not limited to, open market purchases of Common Stock of the Issuer, a tender offer to purchase shares of Common Stock of the Issuer, the acquisition of all of the Common Stock of the Issuer not already beneficially owned by the Reporting Persons or other stockholders participating in the applicable transaction, and, proposals related to any of the items in subparagraphs (a) though (j) of Item 4 of Schedule 13D.

The Reporting Persons intend to have discussions with members of the Issuer’s management and members of the Issuer’s Board in connection with the Reporting Persons’ investment in the Issuer and may from time to time have further discussions with directors and officers of the Issuer, or discussions with other stockholders or third parties regarding the Issuer’s business operations, strategies, capital structure, potential strategic transactions, assets, liabilities and other matters related to the Issuer. The Reporting Persons may engage in a number of conversations that may relate to one or more of the items in subparagraphs (a) through (j) of Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.

The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to time and at any time in the future depending on various factors, including, without limitation, the Issuer’s financial position and strategic direction, actions taken by the Board (to the extent public), price levels of the Issuer’s securities, other investment opportunities available to the Reporting Persons, conditions in the securities market and general economic and industry conditions, take such actions with respect to the investment in the Issuer as they deem appropriate. These actions may include: (i) acquiring additional shares of Common Stock and/or other equity, notes, other securities, derivatives or other instruments that are based upon or relate to the value of securities of the Issuer, or any debt of the Issuer or its affiliates, irrespective of whether it is a security (collectively, “Instruments”) in the open market or otherwise or (ii) disposing of any or all of their Instruments in the open market or otherwise.

 

ITEM 5.

INTEREST IN SECURITIES OF THE ISSUER

Item 5 of the Schedule 13D is hereby amended and restated as follows:

(a) and (b) Items 7 through 11 and 13 of each of the cover pages of this Schedule 13D are incorporated herein by reference. Such information is based on 97,516,791 shares of Common Stock of the Issuer outstanding as of October 19, 2023, as reported in the Issuer’s Form 10-K filed with the SEC on October 23, 2023.

The Funds delegated to the Adviser voting and investment power over the securities held by the Funds pursuant to an Investment Management Agreement with the Funds. As a result, each of the Adviser, KLM, as the general partner of the Adviser, Kennedy Lewis Investment Management, as the owner of KLM, and Messrs. Richman and Chene, as the effective control persons of Kennedy Lewis Investment Management, and effective control persons of each of Holding I and Holdings II, may be deemed to exercise voting and investment power over the shares of Common Stock directly held by the Funds. Each of the Funds may be deemed the beneficial owner of the Common Stock such Fund holds. Fund I GP, as general partner of Master Fund I and Holdings I, as managing member of Fund I GP, may be deemed beneficial owners of the Common Stock held by Master Fund I. Fund II GP, as general partner of Master Fund II and Holdings II, as managing member of Fund II GP, may be deemed beneficial owners of the Common Stock held by Master Fund II. Fund III GP, as general partner of Master Fund III and Holdings II, as managing member of Fund III GP, may be deemed beneficial owners of the Common Stock held by Master Fund III.

(c) There have been no transactions in the shares of Common Stock effected by the Reporting Persons on behalf of the Funds in the past 60 days.

(d) The disclosure regarding the relationship between the Reporting Persons in Item 2(c) of this Schedule 13D is incorporated by reference herein. All securities reported in this Schedule 13D are directly held by the Funds, investment management clients of the Adviser. The investors in the Funds have the right to participate in the receipt of dividends from, or proceeds from the sale of, the shares of Common Stock held by the Funds in accordance with their respective investment percentages in the Funds.

(e) Not applicable.

 

ITEM 6.

CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER

Item 6 of this Schedule 13D is supplemented and superseded, as the case may be, as follows:

The disclosure in Item 4 is incorporated herein by reference.

The Letter Agreement is filed as Exhibit 99.1 and is incorporated herein by reference.

 

ITEM 7.

MATERIAL TO BE FILED AS EXHIBITS

 

Exhibit   

Description

99.1    Letter Agreement, dated October 20, 2023, by among F45 Training Holdings Inc., Kennedy Lewis Investment Management LLC, Kennedy Lewis Capital Partners Master Fund II LP, and Kennedy Lewis Capital Partners Master Fund III LP.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated as of October 24, 2023

 

KENNEDY LEWIS MANAGEMENT LP
By:   KLM GP LLC, its general partner
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Chief Operating Officer
KLM GP LLC
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS INVESTMENT MANAGEMENT LLC
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS INVESTMENT HOLDINGS LLC
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS INVESTMENT HOLDINGS II LLC
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS CAPITAL PARTNERS MASTER FUND LP
By:   Kennedy Lewis GP LLC, its general partner
By:   Kennedy Lewis Investment Holdings LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person

KENNEDY LEWIS GP LLC
By:   Kennedy Lewis Investment Holdings LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS CAPITAL PARTNERS MASTER FUND II LP
By:   Kennedy Lewis GP II LLC, its general partner
By:   Kennedy Lewis Investment Holdings II LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS GP II LLC
By:   Kennedy Lewis Investment Holdings II LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS CAPITAL PARTNERS MASTER FUND III LP
By:   Kennedy Lewis GP III LLC, its general partner
By:   Kennedy Lewis Investment Holdings II LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
KENNEDY LEWIS GP III LLC
By:   Kennedy Lewis Investment Holdings II LLC, its managing member
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Person
By:  

/s/ Darren Richman

By:  

/s/ David Chene

SCHEDULE A

Set forth below are the members of the Board of Managers of Kennedy Lewis Investment Management

 

Name

   

Business Address

   

Present Principal

Occupation

   

Citizenship

Darren Richman   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
David Chene   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
Doug Logigian   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
Anthony Pasqua   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States

Set forth below are the members of the Board of Managers of Holdings I

 

Name

   

Business Address

   

Present Principal

Occupation

   

Citizenship

Darren Richman   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
David Chene   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States

Set forth below are the members of the Board of Managers of Holdings II

 

Name

   

Business Address

   

Present Principal

Occupation

   

Citizenship

Darren Richman   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
David Chene   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
Doug Logigian   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States
Anthony Pasqua   

225 Liberty Street, Suite 4210

New York, NY 10281

    Manager    United States

Exhibit 99.1

October 20, 2023

F45 Training Holdings Inc.

3601 South Congress Avenue, Building E

Austin, Texas 78704

Ladies and Gentlemen:

Reference is made to (i) that certain First Amendment to Subordinated Credit Agreement (the “Credit Agreement Amendment”) made and entered into as of October 20, 2023, by and among F45 Training Holdings Inc., a Delaware corporation (the “Company”), the other Loan Parties thereto, the Lenders party thereto, and Alter Domus (US) LLC, in its capacity as administrative agent for the Secured Parties; and (ii) that certain Letter Agreement, dated as of February 14, 2023 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “February Side Letter”), among the Company and the lenders party thereo (the “Required Lenders”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Credit Agreement Amendment.

In connection with the execution and delivery of the Credit Agreement Amendment, (i) the Company and Kennedy Lewis Investment Management LLC (“KLIM”), an affiliate of certain of the Lenders under the Credit Agreement Amendment, desire to enter into this letter agreement (this “Agreement”) to, among other things, define certain rights and obligations of the Parties with respect to the board of directors (the “Board”) of the Company from and after, and subject to, the initial funding under Credit Agreement Amendment (the “Funding Time”), and (ii) the Company and the Required Lenders desire to enter into this Agreement to extend the timeline to identify a CFO candidate. KLIM, the Required Lenders and the Company are referred to collectively in this Agreement as the “Parties” and each a “Party.”

Now therefore, in consideration of the Credit Agreement Amendment, the obligations of the Parties under this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree, intending to be legally bound, as follows:

1. Board Related Rights.

(a) The Company agrees that each individual member of the Board set forth below under the heading “Resigning Directors” has tendered to the Board his or her irrevocable resignation as a member thereof, effective immediately following the Funding Time.

Resigning Directors:

Lisa Gavales

Steven Scheiwe

Raphael Wallander

 

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(b) The Company hereby agrees that promptly after the Funding Time (and in any event within five (5) days thereof), size of the Board will be reduced to eleven (11) directors.

(c) The Company hereby covenants and agrees that, from and after the Funding Time, KLIM shall have the right to nominate up to six (6) individuals designated by KLIM to the Board (each a “KLIM Director”), which may include one or more directors of the Company as of the date of this Agreement. KLIM acknowledges and agrees that each of the following existing directors of the Company shall be deemed to constitute a KLIM director as of the date of this Agreement: Eugene Davis, Elizabeth Josefsberg, Anthony Pasqua, Richard Monje and Timothy Bernlohr. To the extent that there are not six (6) KLIM Directors appointed to the Board as of the earlier of the dates set forth in clauses (i) and (ii) above, the Company agrees to take all actions within its control as may be necessary to cause up to six KLIM Directors to be appointed to the Board, with each appointment to occur promptly after designation of an individual as a KLIM Director.

(d) If any KLIM Director is unable or unwilling to serve as a director, resigns as a director, is removed as a director or ceases to be a director for any other reason (including any failure of a KLIM Director to be elected at any meeting of Company stockholders), KLIM shall have the right to designate a replacement KLIM Director and the Company shall promptly take all actions within its control to cause such replacement KLIM Director to be appointed to the Board. If at any time after the changes to the size and composition of the Board contemplated by Section 1(b) and Section 1(c) above have been implemented (i) the KLIM Directors appointed to the Board represent less than a majority of the directors in office at such time and (ii) KLIM has designated one or more KLIM Directors that have not been appointed to the Board but if so appointed the KLIM Directors would represent a majority of the directors in office at such time, the Company hereby agrees that the Board will not approve any action until such time as the KLIM Directors that have been designated by KLIM have been appointed to the Board in accordance with this Agreement.

(e) Each KLIM Director will be nominated by the Company for election to serve as a director on the Board at each applicable annual or special meeting of the Company’s stockholders from and after the Funding Time and (i) the Board will recommend that the stockholders of the Company vote to elect each KLIM Director as a director of the Company at any such annual or special meeting, (ii) the Company will use its commercially reasonable efforts (which will include the solicitation of proxies) to obtain the election of each KLIM Director at any such annual or special meeting and (iii) the Company will cause all shares of Company common stock represented by proxies granted to it (or any of its representatives) to be voted in favor of the election of each KLIM Director as a director of the Company at any such annual or special meeting to the extent permitted pursuant to such proxies.

(f) Promptly after the Funding Time (and in any event within five (5) days thereof), the Board will form a Litigation and Non-Recurring Payables Committee of the Board (the “Litigation and Non-Recurring Payables Committee”) with such committee to have such powers and responsibilities as set forth on Schedule A attached hereto (the “Committee Responsibilities”). Any amendment to the Committee Responsibilities will require the consent of KLIM. The Board, following the formation of the Litigation and Non-Recurring Payables Committee, shall appoint Richard Monje (or such other KLIM Director as designated by KLIM) as the chair of the Litigation and Non-Recurring Payable Committee. The Company agrees that the other members of the Litigation and Non-Recurring Payable Committee (including any replacements thereof) shall be subject to the approval of KLIM.

 

2

(g) Each KLIM Director shall be entitled to the same retainer, equity compensation and other fees or compensation, including travel and expense reimbursement, paid to the non-employee directors of the Company for service as a director, including for serving on any committee of the Board. The Company’s non-employee director compensation program (both amount and form) shall be subject to the approval of KLIM. Any director minimum share ownership requirements shall be deemed satisfied in respect of the KLIM Directors by any shares of common stock held by KLIM or one or more of its Affiliates.

(h) Each KLIM Director, in each case upon appointment to the Board, shall be entitled to the same indemnification rights as other non-employee directors of the Company and the Company shall enter into an indemnification agreement with each KLIM Director (in the form signed by each current member of the Board) and the Company shall use its commercially reasonable efforts to maintain, in full force and effect, directors’ and officers’ liability insurance to the same extent that it provides insurance, as of the date hereof, for the non-employee directors on the Board. The Company acknowledges and agrees that it is the indemnitor of first resort (with respect to each KLIM Director in connection with matters arising from service as a director of the Company).

(i) Effective upon the Funding Time and for so long as KLIM has Board designation rights under this Agreement, KLIM hereby waives its rights under Article IV of that certain Third Amended and Restated Stockholders’ Agreement of the Company, dated as of July 14, 2021, by and among the Company and the stockholders of the Company named therein.

2. Business Combination Transaction. On or prior to the date of this Agreement, the Board has passed a resolution, in form and substance acceptable to KLIM, waiving the application of Section 203 of the Delaware General Corporation Law (“Section 203”) to KLIM and its affiliates. KLIM acknowledges and agrees that, if at any time following the date of this Agreement, the Company has a class of voting stock that is (a) listed on a national securities exchange, or (b) held of record by more than 2,000 stockholders, it shall be a condition to KLIM or any of its affiliates (as defined in Section 203(c) of the Delaware General Corporation Law) entering into otherwise consummating a business combination (as defined in Section 203) with the Company that such business combination be approved by a majority of the members of the Board who are not employees or investment professionals of KLIM or any of its affiliated investment funds.

3. CFO Candidate. Section 2 of the February Side Letter is hereby amended and restated in its entirety to read as follows:

“From and after the Effective Date, the Board shall take all necessary actions to commence and diligently execute a formal search process for a CFO, including but not limited to retaining an executive search firm reasonably acceptable to the Required Lenders. The Company shall conduct such process as promptly as reasonably practicable, and shall identify a CFO candidate no later than two hundred and seventy (270) days following the Effective Date; provided, that if the Company is using

 

3

commercially reasonable efforts to identify a CFO candidate, then such two hundred and seventy (270) day period shall be automatically extended by a single additional fifteen (15) days upon notice from the Company to the Required Lenders. Subject to the consent of the Required Lenders as to such candidate, not to be unreasonably withheld, and subject to the Company and such candidate agreeing on mutually acceptable terms of employment, the Board shall take all necessary actions to appoint such candidate as CFO as promptly as practicable. If the Required Lenders do not reasonably consent to the CFO candidate proposed by the Company, the Board shall promptly identify an alternative candidate.”

4. No Assignment; Benefit of Parties; No Transfer. No Party may assign this Agreement or any of its rights or obligations hereunder without the prior written consent of the other Party, any such assignment being void ab initio. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns for the uses and purposes set forth and referred to herein. Except as explicitly set forth herein, nothing contained in this Agreement shall confer or is intended to confer on any third party or entity that is not a party hereto any rights under this Agreement.

5. Remedies; Event of Default. Each of the Parties shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach or violation of any provision of this Agreement and to exercise all other rights existing in their favor. KLIM acknowledges and agrees that under no circumstances shall the Company be deemed in breach of this Agreement if such breach is a result of KLIM or the KLIM Designees in their capacity as stockholders or directors, as applicable, failing to take action in furtherance of the Company’s or Board’s obligations under this Agreement. The Parties agree and acknowledge that a breach or violation of this Agreement would cause irreparable harm and that money damages would not be an adequate remedy for any such breach and that, in addition to other rights and remedies hereunder, each of the Parties shall be entitled to seek specific performance and/or injunctive or other equitable relief (without posting a bond or other security) from any court of law or equity of competent jurisdiction in order to enforce or prevent any breaches or violations of this Agreement.

6. Further Assurances. Each of the Parties hereby agrees that it shall hereafter execute and deliver any further document, agreement, instruments of assignment, transfer or conveyance as may be necessary or desirable to effectuate the purposes hereof. KLIM also agrees that (a) in its capacity as a stockholder of the Company, it shall take all actions necessary to effectuate the purposes of this Agreement and (b) it shall take all actions necessary to cause the KLIM Designees to effectuate the purposes of this Agreement, which, for the avoidance of doubt, shall include causing the KLIM Designees who are on the Board to take such actions as are necessary to appoint any KLIM Designees who are not then serving on the Board to the Board and to appoint Richard Monje (or such other KLIM Director as designated by KLIM) as the chair of the Litigation and Non-Recurring Payable Committee.

 

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7. Governing Law; Jurisdiction; Consent to Service of Process.

(a) This Agreement and any claims or causes of action arising out of or relating to this Agreement, the negotiation, execution or performance of this Agreement or the transactions contemplated hereby (whether in contract, in tort, under statute or otherwise) shall be governed by, and interpreted, construed and enforced in accordance with, the internal Laws of the State of Delaware, including its statutes of limitations, without giving effect to any choice or conflict of Laws rules or provisions (whether of the State of Delaware or any other jurisdiction) that would result in the application of the Laws of any jurisdiction other than the State of Delaware.

(b) Each Party irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement brought by any Party or its successors or assigns against the other Party shall be brought and determined in the Court of Chancery of the State of Delaware, provided, that if jurisdiction is not then available in the Court of Chancery of the State of Delaware, then any such legal action or proceeding may be brought in any federal court located in the State of Delaware or any other Delaware state court. Each of the Parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement and the transactions contemplated hereby. Each of the Parties agrees not to commence any action, suit or proceeding relating thereto except in the courts described above in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court in Delaware as described herein. Each of the Parties further agrees that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument that such service is insufficient. Each of the Parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

8. Mutual Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8.

9. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

5

10. Counterparts; Integration. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the Credit Agreement Amendment constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.

11. Amendment; Waiver. No amendment of any provision of this Agreement shall be effective unless set forth in a written instrument executed by the Company and KLIM (or, in the case of Section 3, a written instrument executed by the Company and the Required Lenders). Except as otherwise provided herein, no waiver of any provision of this Agreement shall be effective unless set forth in a written instrument executed by the Party against whom the waiver is effective. The failure of any Party to enforce any provision hereof shall in no way be construed as a waiver of such provision or of any other provision and shall not affect the right of such Party thereafter to enforce each and every provision hereof in accordance with its terms. The rights and remedies in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

12. Notices. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by email, as follows:

If to the Company:

3601 South Congress Avenue, Building E

Austin, Texas 78704

Attention: Patrick Grosso

Email: pgrosso@f45hq.com

With a copy to (which shall not constitute notice):

Gibson, Dunn & Crutcher LLP

333 South Grand Avenue

Los Angeles, CA 90071-3197

Attention: Peter Wardle

Email: pwardle@gibsondunn.com

If to KLIM or the Required Lenders:

Kennedy Lewis Investment Management LLC

225 Liberty Street, Suite 4210

New York, NY 10281

Attention:

Email:

With a copy to (which shall not constitute notice):

 

6

Akin Gump Strauss Hauer & Feld LLP

One Bryant Park

New York, NY 10036

Attention: Dan Fisher

Email: dfisher@akingump.com

[Signature page follows]

 

7

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first indicated above.

 

COMPANY:

 

F45 TRAINING HOLDINGS INC.

By:  

/s/ Thomas Dowd

Name:   Thomas Dowd
Title:   Chief Executive Officer

[Signature Page to Credit Agreement Side Letter]

KLIM:

 

KENNEDY LEWIS INVESTMENT MANAGEMENT LLC

By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Signatory

REQUIRED LENDERS:
KENNEDY LEWIS CAPITAL
PARTNERS MASTER FUND II LP
By: Kennedy Lewis GP II, LLC, its general partner
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Signatory
KENNEDY LEWIS CAPITAL PARTNERS MASTER FUND III LP
By: Kennedy Lewis GP III, LLC, its
general partner
By:  

/s/ Anthony Pasqua

Name:   Anthony Pasqua
Title:   Authorized Signatory

Schedule A

Responsibilities of Litigation and Non-Recurring Payables Committee

 

  •  

Establish, approve, modify, monitor, oversee, conduct and direct the process and procedures related to material litigation and reports or inquiries from government or regulatory agencies (other than the SEC Inquiry for which the SEC Special Committee has oversight) (“Litigation and Investigative Matters”);

 

  •  

Supervise and direct outside counsel of the Company in regard to Litigation and Investigative Matters;

 

  •  

To the fullest extent permitted by the DGCL, to exercise any other power or authority that may be otherwise exercised by the Board that the Committee may deem necessary, appropriate or advisable to carry out and fulfill its duties and responsibilities with respect to Litigation and Investigative Matters;

 

  •  

Take such other actions related to or arising in connection with any Litigation and Investigative Matters as the Committee deems necessary, appropriate or advisable;

 

  •  

Provide reports and/or recommendations to the Board in regard to Litigation and Investigative Matters at such time as the Committee shall deem appropriate and consistent with its activities;

 

  •  

Retain, at the Company’s expense, any legal counsel, financial advisor, and other advisors, consultants and agents that are acceptable to the Committee in its sole discretion, as it deems necessary or desirable in connection with any Litigation and Investigative Matters;

 

  •  

Review from time to time the Company’s material non-recurring payables and provide the Company with strategic advice with respect thereto;

 

  •  

Utilize the services of any legal counsel, financial advisor, and other advisors, consultants and agents of the Company, the Board, or any other committee thereof, to the extent that the Committee deems appropriate and advisable in its sole discretion, to assist it in connection with fulfilling its duties as delegated by the Board; and

 

  •  

Direct and authorize its legal counsel, financial advisor, and other advisors, consultants and agents to take, or refrain from taking, such actions as the Committee shall determine in its sole discretion.

 

  •  

The officers, agents, employees and advisors of the Company shall be authorized and directed to assist the Litigation and Non-Recurring Payables Committee, and to provide it with all information and documents of the Company that the Litigation and Non-Recurring Payables Committee may request, including any books and records of the Company, in connection with the Litigation and Non-Recurring Payables Committee’s discharge of its duties.

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