Exhibit 10.3

 

FIRST AMENDMENT TO FORBEARANCE AGREEMENT

 

This First Amendment to Forbearance Agreement is entered into as of April 1,
2003 by and among:

 

Cybex International, Inc. (hereinafter, the “Borrower”), a New York corporation
with its principal executive offices at 10 Trotter Drive, Medway, Massachusetts;

 

The subsidiaries of the Borrower identified on the signature pages hereto
(individually, a “Guarantor” and collectively, the “Guarantors”);

 

The Lenders party to the Credit Agreement (defined below) (hereinafter
collectively, the “Lenders”);

 

Wachovia Bank National Association, as Agent for the Lenders (hereinafter, in
such capacity, the “Administrative Agent”), having an office at One First Union
Center, 301 South College Street, Charlotte, North Carolina,

 

in consideration of the mutual covenants herein contained and benefits to be
derived herefrom.

 

WITNESSETH:

 

1.   Background. The Administrative Agent, the Lenders, the Borrower, and the
Guarantors entered into a Forbearance Agreement as of April 1, 2003 (the
“Forbearance Agreement”), pursuant to which the Lenders agreed to forbear from
exercising certain of their rights and remedies upon default, subject to the
terms therein contained. The Administrative Agent, the Lenders, the Borrower,
and the Guarantors desire to amend the Forbearance Agreement on the terms set
forth herein.

 

NOW THEREFORE, the parties agree as follows:

 

2.   Definitions. All capitalized terms used herein and not otherwise defined
shall have the same meaning herein as in the Forbearance Agreement.

 

3.   Amendment to Forbearance Terms. The provisions of Section 5(d) of the
Forbearance Agreement are hereby deleted in their entirety and the following
substituted in their stead:

 

  d.   Amortization of Term Loans and LOC Reimbursement Term Loans; Payment of
Deferred Fee. All regularly scheduled principal payments required to be made on
account of Term Loan A, Term Loan B and each LOC Reimbursement Term Loan from
April l, 2003 through the expiration of the Forbearance Period, as well as the
payment of the Deferred Fee which was due on March 31, 2003, shall be extended
and shall become due on the earlier of the expiration of the Forbearance Period,
or the consummation of a sale of the Borrower and/or any of its subsidiaries.

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4.   Ratification of Credit Documents and Forbearance Agreement. The Borrower
and the Guarantors hereby ratify, confirm, and reaffirm, each of the terms and
conditions of the Credit Documents (including the Forbearance Agreement), and
warrant and represent that all of the terms and conditions of the Credit
Documents (including the Forbearance Agreement) remain in full force and effect
and the Borrower and Guarantors shall comply therewith in all respects (except
as provided herein). The Borrower and the Guarantors hereby ratify and confirm
each of the representations and warranties set forth in the Credit Documents
(including the Forbearance Agreement).

 

5.   General.

 

  a.   This First Amendment to Forbearance Agreement, together with the
Forbearance Agreement, constitute one entire agreement.

 

  b.   In entering into this First Amendment to Forbearance Agreement, the
Administrative Agent and the Lenders are not waiving any Existing Defaults.

 

  c.   This Agreement incorporates all discussions and negotiations among the
Borrower, the Guarantors, the Administrative Agent and the Lenders, either
express or implied, concerning the matters included herein, any custom, usage,
or course of dealings to the contrary notwithstanding. No such discussions,
negotiations, custom, usage, or course of dealings shall limit, modify, or
otherwise affect the provisions hereof.

 

  d.   Except as modified hereby, all terms and conditions of the Credit
Agreement, the Forbearance Agreement, and the other Credit Documents remain in
full force and effect. The Borrower and each Guarantor shall continue to comply
with all of the other terms and conditions of the Credit Agreement, the
Forbearance Agreement, and other Credit Documents, as modified hereby.

 

  e.   The Borrower and the Guarantors hereby warrant and represent to the
Administrative Agent and the Lenders that the Borrower and the Guarantors have
each read and understand each of the terms and conditions of this First
Amendment to Forbearance Agreement and that they are entering into this First
Amendment to Forbearance Agreement freely and voluntarily, without duress, after
having had an opportunity for consultation with independent counsel of their own
selection, and not in reliance upon any representations, warranties, or
agreements made by the Administrative Agent or the Lenders and not set forth in
this First Amendment to Forbearance Agreement.

 

  f.   This Agreement may be executed in several counterparts and by each party
on a separate counterpart, each of which when so executed and delivered shall be
an original, and all of which together shall constitute one instrument.

 

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument as
of the date first written above.

 

CYBEX INTERNATIONAL, INC.

By     /s/ Arthur W. Hicks, Jr.

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Print Name:

 

    Arthur W. Hicks, Jr.

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Title:     Vice President

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CYBEX CAPITAL CORP.

By     /s/ Arthur W. Hicks, Jr.

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Print Name:

 

    Arthur W. Hicks, Jr.

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Title:     Vice President

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EAGLE PERFORMANCE SYSTEMS, INC.

By     /s/ Arthur W. Hicks, Jr.

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Print Name:

 

    Arthur W. Hicks, Jr.

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Title:     Vice President

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GENERAL MEDICAL EQUIPMENT, LTD.

By     /s/ Arthur W. Hicks, Jr.

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Print Name:

 

    Arthur W. Hicks, Jr.

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Title:     Vice President

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LUMEX BED SYSTEMS, INC.

By     /s/ Arthur W. Hicks, Jr.

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Print Name:

 

    Arthur W. Hicks, Jr.

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Title:     Vice President

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CYBEX FITNESS GERATE VERTRIEBS,
GMBH

By    /s/ Arthur W. Hicks, Jr.

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Print Name:     Arthur W. Hicks, Jr.

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Title:     Vice President

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TECTRIX FITNESS EQUIPMENT, INC.

By    /s/ Arthur W. Hicks, Jr.

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Print Name:     Arthur W. Hicks, Jr.

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Title:     Vice President

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AGREED AND ACCEPTED BY:

 

WACHOVIA BANK NATIONAL ASSOCIATION, as Administrative Agent and a Lender

 

By:         /s/ Ron R. Ferguson

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Print Name: Ron R. Ferguson

Title: Managing Director

 

FLEET NATIONAL BANK, as Lender

By:         /s/ Kevin M. Behan

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Print Name: Kevin M. Behan

Title: Vice President

 

FLEET CAPITAL CORPORATION, as Lender

By:     /s/ Robert A. Mahoney

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Print Name: Robert A. Mahoney

Title: Senior Vice President

 

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