Document:

REIMBURSEMENT AGREEMENT DATED APRIL 28, 2004

 Exhibit 10.1 
  
 REIMBURSEMENT AGREEMENT 
  
 THIS REIMBURSEMENT AGREEMENT, dated as of April 28, 2004 (this “Agreement”), between Cybex International, Inc.
(“Cybex”), a New York corporation, and UM Holdings, Ltd. (“UM Holdings”), a New Jersey corporation. 
  
 WHEREAS, a judgment in the Kirila litigation (herein generally referred to as the “Kirila Matter”) has been entered in the Pennsylvania
Superior Court, Mercer County (the “Court”) against Cybex and Peter Haines and Arthur W. Hicks, Jr., who were officers of Trotter, Inc., a former wholly-owned subsidiary of UM Holdings which was acquired by Cybex in 1997;

  
 WHEREAS, such judgment is in the amount of 2,452,783 (the
“Judgment Amount”) and Cybex believes this judgment to be in error both in amount and on its merits; 
  
 WHEREAS, in order to appeal such judgment, Cybex must post security with the Court in the amount of 120% of the Judgment Amount, which security Cybex
intends to satisfy by delivering a letter of credit (the “Wachovia LC”) issued by Wachovia Bank in the amount of $2,945,722 (the Wachovia LC, and any addition to or replacement of the Wachovia LC, being herein collectively referred
to as the “Security’); and 
  
 WHERAS, given its
substantial investment in Cybex, and given certain assurances to be contained herein, UM Holdings is willing to obtain and provide the guarantee and collateral required for the issuance of the Security; 
  
 NOW, THEREFORE, in consideration of the promises and the mutual covenants and
agreements contained herein, and intending to be legally bound hereby, Cybex and UM Holdings hereby agree as follows: 
  
 SECTION 1.01. Agreement to Reimburse. Cybex hereby unconditionally agrees to reimburse and guarantees payment to UM Holdings for all amounts UM
Holdings might incur in connection with UM Holdings’ agreement to obtain and provide a guarantee and collateral regarding the Security, specifically including but not limited to any payment UM Holdings might be required to make in connection
with a draw on the Wachovia LC or similar instruments provided as the Security, interest paid by UM Holdings on the Security, any bank or third party fees, attorney fees (to the extent such are reasonable) and all other reasonable fees or expenses
paid by UM Holdings on behalf of Cybex with regard to the Security. Any obligation of Cybex to make a payment to UM Holdings pursuant to this Section 1.01 is herein referred to as a “Reimbursement Obligation.” 
  
 SECTION 1.02. Manner of Reimbursement. Upon the occurrence of any
payment obligation which, if paid by UM Holdings, would result in a Reimbursement Obligation, UM Holdings shall first approach Cybex and request that Cybex make the required payment. If Cybex in unable or unwilling to do so or if the circumstances
are such that UM Holdings believes it needs to make such payment, UM Holdings may make such payment, in which event a Reimbursement Obligation has occurred. Once UM Holdings makes such required payment, UM Holdings shall give Cybex written notice of
and the details regarding such payment, and Cybex agrees to reimburse UM Holdings for the full amount of such payment 

 within ten (10) days of receiving such notice from UM Holdings. All payments under this Agreement shall be made without
defense, set-off or counterclaim and in immediately available funds and delivered to the account of UM Holdings specified by UM Holdings from time to time. 
  
 SECTION 1.03 Subordination. (a) Notwithstanding any contrary provision contained herein, the right of UM Holdings to receive any payment with
respect to a Reimbursement Obligation is junior and subordinate to the Senior Debt (as defined below). Except with the prior written consent of all holders of the Senior Debt, any Reimbursement Obligation shall constitute subordinated indebtedness
of Cybex, and Cybex will not make, and UM Holdings will not accept, any payment of current interest or principal thereon until the Senior Debt shall have been indefeasibly paid in full. If UM Holdings receives any payment in violation of this
Section 1.03, it will hold such payment in trust for the holders of the Senior Debt. Upon the request of the holders of the Senior Debt, Cybex and UM Holdings will enter into a subordination agreement in form and substance satisfactory to such
holders, consistent with this Section 1.03. 
  
 (b) The term
“Senior Debt” as utilized herein refers to all present and future indebtedness (whether principal, interest (including without limitation, interest accruing after the commencing of a bankruptcy proceeding by or against Cybex), fees,
collection costs, expenses, liabilities, obligations (including, without limitation, letter of credit reimbursement obligations), and other amounts now or hereafter owing by Cybex, whether direct or indirect, absolute or contingent, secured or
unsecured, due or to become due, liquidated or unliquidated, whether now existing or hereafter arising, pursuant to or arising out of (x) the Financing Agreement, between Cybex and the CIT Group/Business Credit, Inc., dated as of July 16, 2003 (as
the same may be amended, renewed, extended or supplemented from time to time), and (y) the Financing Agreement, between Cybex and Hilco Capital, LP, dated as of July 16, 2003 (as the same may be amended, renewed, extended or supplemented from time
to time). 
  
 SECTION 1.04. Fees. In exchange for arranging
the placement of the Security, Cybex agrees to pay to UM Holdings a fee of four percent (4%) per annum of the face amount of the Security, such fee to be paid on a quarterly basis for so long as the Security arranged by UM Holdings remains in place.

  
 SECTION 1.05. Change in Control. In the course of
negotiating any of the following events, Cybex agrees to disclose this Agreement and to make any of the following events conditional upon the complete and full reimbursement, release and replacement of UM Holdings obligations under this Agreement:
any transfer or transfers of the capital stock or other ownership interests of Cybex, or in the event of the issuance of additional stock or ownership interests, which: (a) results in the ownership of forty percent (40%) or more of Cybex being
different than on the date hereof (exclusive of changes caused by the conversion of the Cybex Preferred Stock by UM Holdings or its subsidiaries); or (b) results in any change in the management or control of Cybex. Even if UM Holdings approves a
particular transaction, such shall not have the effect of releasing Cybex from any liability for the payment of indebtedness incurred in connection with this Agreement. 

 SECTION 2.01. Representations and Warranties of Cybex. In order to induce UM Holdings to enter
into this Agreement, Cybex makes each of the following representations and warranties to UM Holdings and its assignees, all of which shall survive the execution and delivery of this Agreement: 
  
 (a) Organizational Status. Cybex is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York. Cybex has all requisite corporate power and authority to own its properties and assets and to engage in the business in which it is currently engaged. Cybex is duly
qualified or authorized to do business and is in good standing in all jurisdictions where it is required to be so qualified or authorized, except where the failure to be so qualified or authorized would not have a material adverse effect.

  
 (b) Organizational Power and Authority. Cybex has all
requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of Cybex, enforceable against Cybex in accordance with its
terms. 
  
 SECTION 3.01 Remedies. Subject to the provisions
of Section 1.03 above, if a Reimbursement Obligation occurs and if such Reimbursement Obligation remains unpaid ten (10) days after Cybex has been given notice of such Reimbursement Obligation, then Cybex shall be in default of this Agreement. To
the extent permissible under its current debt obligations, upon the occurrence of a default in this Agreement, UM Holdings shall be entitled to take whatever steps it deems necessary to end all guaranty on the Security regardless of the effect of
such actions on Cybex and UM Holdings and its assignees shall have all the rights and remedies provided by law 
  
 SECTION 3.02 Remedies are Cumulative. No failure on the part of UM Holdings and its assignees to exercise, and no delay in exercising, any right,
power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by UM Holdings or any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any right, power or
remedy. The remedies herein provided are cumulative and are not exclusive of any remedies provided by law or in equity. 
  
 SECTION 3.03 Rights of UM Holdings. In addition to all rights given to UM Holdings and its assignees by this Agreement, UM Holdings shall have all
the rights and remedies of a creditor under any applicable law. 

 SECTION 4.01. Notices. All notices, requests, claims, demands and other communications hereunder
shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by telecopy or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the
following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 4.01): 
  

			
	 (a)
	 	If to UM Holdings:
		
	 	 	            UM Holdings Ltd.
	 	 	            56 Haddon Avenue
	 	 	            Haddonfield, N.J. 08033
	 	 	            Telecopier: (856) 354-2216
	 	 	            Attention: President
		
	 (b)
	 	If to Cybex:
		
	 	 	            Cybex International, Inc.
	 	 	            10 Trotter Drive
	 	 	            Medway, MA 02053
	 	 	            Telecopier: (508) 533-5500
	 	 	            Attention: Chief Financial Officer

  
 SECTION 4.02.
Benefit; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, provided, however, that Cybex may not assign its rights and
obligations under this Agreement without the express written consent of UM Holdings, which consent may be granted or withheld in the sole reasonable judgement of UM Holdings. UM Holdings may assign its rights and obligations under this Agreement.

  
 SECTION 4.03. Expenses. All parties shall pay their own
costs and expenses (including attorneys’ fees and expenses) associated with this Agreement and the transactions contemplated hereby. 
  
 SECTION 4.04. Amendment. This Agreement and any provision hereof may be amended only by a written instrument executed by the party or parties to be
bound thereby. 
  
 SECTION 4.05. Applicable Law. THIS
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. ALL ACTIONS AND PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE HEARD AND DETERMINED EXCLUSIVELY IN ANY COURT OF COMPETENT JURISDICTION SITTING IN THE STATE OF NEW
YORK. 
  
 SECTION 4.06. 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 RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. Each
party hereto (a) certifies that no representative, agent or 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 party
hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certification in this Section 4.06. 
  
 SECTION 4.07. No Third Party Beneficiaries. No person or entity other than a party hereto and such party’s permitted successors and assigns
shall have any rights or remedies under this Agreement. 
  
 SECTION 4.08. Severability. If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party. Upon a determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
  
 SECTION 4.09. Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of
which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. 
  
 SECTION 4.10. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. 
  
 SECTION 4.11. Obligations
Unimpared. The obligations and undertakings of Cybex under this Agreement shall not be affected or impaired by reason of the happening from time to time of any of the following with respect to the following: (a) the waiver by UM Holdings of the
observance or performance by Cybex of any of the obligations or undertakings contained in this Agreement; (b) the extension of the time for payment of any amount owing or payable or the performance of any other obligation under this Agreement, or
the extension or the renewal of any thereof; (c) the modification or amendment (whether material or otherwise) of, or the release (whether by operation of the law or otherwise) of Cybex from, any obligation or undertaking set forth in this
Agreement; (d) any failure, omission, delay or lack on the part of UM Holdings to enforce, assert or exercise any right, power or remedy conferred on it in the Agreement against Cybex, or any action on the part of UM Holdings granting to Cybex
indulgence or extension in any form; or (e) any other cause, whether similar or dissimilar to the foregoing. 

 IN WITNESS WHEREOF, UM Holdings and Cybex have caused this Agreement to be executed effective as of the
date first written above by their respective officers thereunto duly authorized. 
  

			
	 UM HOLDINGS, LTD.

		
	 By
	 	 /s/ John Aglialoro

	 Name:
	 	 John Aglialoro

	 Title:
	 	 Chairman and Chief Executive Officer

	
	 CYBEX INTERNATIONAL, INC.

		
	 By
	 	 /s/ Arthur W. Hicks, Jr.

	 Name:
	 	 Arthur W. Hicks, Jr.

	 Title:
	 	 Chief Financial OfficerFIRST AMENDMENT TO FINANCING AGREEMENT DATED MAY 4, 2004

 Exhibit 10.2 
  
 EXECUTION VERSION 
  
 FIRST AMENDMENT TO FINANCING AGREEMENT 
  
 THIS FIRST AMENDMENT TO FINANCING AGREEMENT, dated as of May 4, 2004 (this “Amendment”), is made by and among CYBEX INTERNATIONAL, INC.,
a New York corporation (the “Borrower”), the lenders identified on the signature pages hereto (the “Lenders”) and HILCO CAPITAL LP, a Delaware limited partnership, as a Lender and as agent for the Lenders (in such
capacity, the “Agent”). 
  
 RECITALS:

  
 A. The Borrower, the Lenders and the Agent are parties to
that certain Financing Agreement, dated as of July 16, 2003 (as the same may be further amended, modified, restated or supplemented from time to time, the “Financing Agreement”), pursuant to which, among other things, the Agent and
the Lenders extended to the Borrower a loan facility. 
  
 B. The
Borrower has requested that the Financing Agreement be amended. 
  
 C. The Agent and the Lenders have agreed to such request, upon the terms and subject to the conditions and limitations set forth herein, and, to accomplish the foregoing, the Borrower, the Agent and the Lenders have agreed to execute this
Amendment. 
  
 D. All capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Financing Agreement, unless otherwise defined herein. 
  
 AGREEMENTS: 
  
 Accordingly, in consideration of the premises and the mutual covenants contained herein, and for other valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 AMENDMENTS AND
CONSENT 
  
 The Financing Agreement is hereby amended as
follows: 
  
 1.1 Section 1 of the Financing Agreement is hereby
amended by adding the following defined term in the appropriate order alphabetically: 
  
 “‘Kirila Letter of Credit’ shall mean that certain letter of credit in the amount of $2,945,722 issued for the
account of the Company and secured by collateral pledged by UM Holdings Ltd. to secure a potential judgment against the Company relating to the case of Kirila v. Cybex International, Inc.” 

 1.2 The definition of “Permitted Indebtedness” appearing in Section 1 of the Financing
Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Permitted Indebtedness” shall mean: (a) subject to the terms of the Intercreditor Agreement, the CIT Debt in an aggregate principal amount not to exceed at any time outstanding, the sum of (i) the
lower of (A) $14,000,000 and (B) the aggregate amount of Availability of the Company less $1,500,000, plus $1,250,000 and (ii) $5,000,000 less all principal payments received by CIT with respect to the term loans under the CIT Loan Agreement
as in effect on the date hereof, in each case plus interest, fees and expenses payable thereunder; (b) Indebtedness under the IRB, provided that such Indebtedness is not secured by any assets of the Company; (c) current Indebtedness (other than
Indebtedness for borrowed money) maturing in less than one year and incurred in the ordinary course of business for raw materials, supplies, equipment, services, Taxes or labor; (d) the Indebtedness secured by Purchase Money Liens; (e) Indebtedness
arising under this Agreement; (f) deferred Taxes and other expenses incurred in the ordinary course of business; (g) to the extent constituting Indebtedness, guarantees of third-party leases and other third party financing arrangements pertaining to
the Company’s products and related matters (the “Lease Support Guarantees”), provided that the maximum liability under all Lease Support Guarantees shall not at any time exceed $6,000,000 in the aggregate; (h) the Indebtedness
under the Kirila Letter of Credit, provided that (x) such Indebtedness is not secured by any assets of the Company and (y) the Company’s reimbursement obligations to UM Holdings Ltd., if any, in respect of such Indebtedness shall be
subordinated to the prior payment and satisfaction of the Obligations under this Agreement and the other Loan Documents pursuant to a subordination agreement in form and substance satisfactory to Hilco (it being understood that no current interest
or principal shall be payable under such subordinated Indebtedness without the prior written consent of CIT and HILCO); and (i) other Indebtedness existing on the date of execution of this Financing Agreement and listed in the most recent financial
statement delivered to HILCO or otherwise disclosed to HILCO in writing prior to the Closing Date. 
  
 1.3 The Financing Agreement and each of the other Loan Documents are amended to provide that any reference to the Financing Agreement in the Loan
Documents or any of the other Loan Documents shall mean the Financing Agreement as amended by this Amendment, and as it may be further amended, modified, restated or supplemented from time to time. 
  
 1.4 The Agent and the Lenders hereby consent to the First Amendment to the
CIT Loan Agreement, dated the date hereof, a copy of which is attached hereto as Exhibit A. 
  

 2 

 ARTICLE II 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower hereby represents and warrants to Hilco and the Lenders as follows: 
  
 2.1 Compliance with Financing Agreement and Other Loan Documents. After giving effect to this Amendment, the Borrower
is in compliance with all of the terms and provisions set forth in the Financing Agreement and in the other Loan Documents to be observed or performed by the Borrower. 
  
 2.2 Representations in Financing Agreement and Other Loan Documents. The representations and warranties of the
Borrower set forth in the Financing Agreement and the other Loan Documents are true and correct in all material respects except for changes in the Borrower’s business or operations that have occurred after the date the Financing Agreement
became effective, so long as Hilco and the Lenders have consented to such changes or such changes are not prohibited by the terms of the Financing Agreement. 
  
 2.3 No Event of Default. No Default or Event of Default exists under the Financing Agreement and the other Loan Documents. 
  
 ARTICLE III 
  
 CONDITIONS PRECEDENT 
  
 This Amendment shall become effective and be deemed effective as of the date
hereof upon the satisfaction by the Borrower or waiver by Hilco and the Lenders of the following conditions precedent: 
  
 (a) Receipt by Hilco of this Amendment, duly executed by the Borrower, and consented to by each of the Guarantors; 
  
 (b) Receipt of evidence satisfactory to Hilco that CIT shall have approved
this Amendment; 
  
 (c) The Borrower shall have paid to counsel
for Hilco the amount of reasonable fees and disbursements owed to such counsel in connection with this Amendment; and 
  
 (d) Receipt by Hilco of such other documents, instruments, and agreements as Hilco and its counsel may reasonably request. 
  
 ARTICLE IV 
  
 MISCELLANEOUS 
  
 4.1 Full Force and Effect. As expressly amended hereby, the Financing Agreement shall continue in full force and effect in accordance with the
provisions thereof. As used in the Financing Agreement, “hereinafter”, “hereto”, “hereof” or words of similar import, shall, unless the context otherwise requires, mean the Financing Agreement as amended by this
Amendment. 
  
 4.2 Applicable Law. This Amendment shall be
governed by and construed in accordance with the internal laws and judicial decisions of the State of New York. 
  

 3 

 4.3 Counterparts. This Amendment may be executed in one or more counterparts (including via
facsimile), each of which shall constitute an original, but all of which when taken together shall constitute but one and the same instrument. 
  
 4.4 Headings. The headings in this Amendment are for the purpose of reference only and shall not affect the construction of this Amendment.

  
 4.5 Waiver of Jury Trial. TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE BORROWER, HILCO AND EACH LENDER WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AMENDMENT, THE FINANCING AGREEMENT OR THE OTHER LOAN
DOCUMENTS. 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by
their respective proper and duly authorized officers as of the day and year first above written. 
  

			
	 CYBEX INTERNATIONAL, INC.

		
	 By:
	 	 /s/ Arthur W. Hicks, Jr.

	 Name:
	 	 Arthur W. Hicks, Jr.

	 Title:
	 	 Chief Financial Officer

	
	 HILCO CAPITAL LP, as Agent and a Lender

		
	 By:
	 	 /s/ Lewis E. Rieck

	 Name:
	 	 Lewis E. Rieck

	 Title:
	 	 Vice President

	
	 FORTRESS CREDIT OPPORTUNITIES I LP, as a Lender

	
	By: Fortress Credit Opportunities I GP LLC, its general partner
		
	 By:
	 	 /s/ Constantine Dakolias

	 Name:
	 	 Constantine Dakolias

	 Title:
	 	 Chief Credit Officer

	
	 FORTRESS CREDIT OPPORTUNITIES II LP, as a Lender

	
	By: Fortress Credit Opportunities II GP LLC, its general partner
		
	 By:
	 	 /s/ Constantine Dakolias

	 Name:
	 	 Constantine Dakolias

	 Title:
	 	 Chief Credit Officer

  

 5 

 CONSENT OF GUARANTORS 
  
 Each of the undersigned (individually, a “Guarantor” and, collectively, the “Guarantors”),
a Guarantor of all of the indebtedness, obligations or liabilities of Cybex International, Inc., a New York corporation, to Hilco Capital LP (“Hilco”) and certain other lenders, pursuant to that certain Guaranty, dated July 16,
2003, executed by each of the Guarantors in favor of Hilco, does hereby acknowledge receipt of a copy of the within and foregoing First Amendment to Financing Agreement, dated as of the same date hereof, and, in connection therewith, hereby consents
to the execution, delivery and performance thereof and agrees that nothing contained therein nor in any document, instrument or other agreement required or contemplated thereby, shall alter, discharge, release, cancel or impair the duties and
obligations of such Guarantor under the Guaranty and that the Guaranty shall continue to remain in full force and effect, enforceable against such Guarantor in accordance with its terms, without any right of offset, deduction, defense or
counterclaim in favor of such Guarantor against Hilco. 
  
 IN
WITNESS WHEREOF, each of the Guarantors has executed this Consent under seal as of the day and year first above written. 
  

			
	 CYBEX CAPITAL CORPORATION

		
	 By:
	 	 /s/ Arthur W. Hicks, Jr.

	 Name:
	 	 Arthur W. Hicks, Jr.

	 Title:
	 	 Chief Financial Officer

	
	 TECTRIX FITNESS EQUIPMENT, INC.

		
	 By:
	 	 /s/ Arthur W. Hicks, Jr.

	 Name:
	 	 Arthur W. Hicks, Jr.

	 Title:
	 	 Chief Financial Officer

	
	Signed as a deed by CYBEX INTERNATIONAL UK LIMITED acting by:
	
	     /s/ Arthur W. Hicks, Jr.

	 Director

	
	

	 Director

  

 6 

 Exhibit A 
  
 First Amendment to CIT Loan Agreement 
 (see attached) 
  

 7

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