Document:

Loan Modification Agreement September 24, 2009

 Exhibit 10.3 
 LOAN MODIFICATION AGREEMENT 
 Wachovia Bank, National Association

 190 River Road 
 Summit, New
Jersey 07901 
 (Hereinafter referred to as the “Bank”) 
 Cybex International, Inc. 
 10 Trotter Drive 
 Medway, MA 02053-2299 
 (Individually and
collectively “Borrower”) 
 This Loan Modification Agreement (“Agreement”) is entered into on
September 24, 2009, by and between Bank and Borrower. 
 This Agreement applies to a $7,000,000 loan dated July 30,
2007, a $3,000,000 loan dated March 25, 2008 and a $1,000,000 loan dated March 2, 2009 (collectively the “Loans”), as those Loans have been amended or modified from time to time. The terms “Loan Documents” and
“Obligations,” as used in this Agreement are defined in the original notes (the “Notes”) executed in connection with the Loans. 
 Borrower has recently amended and modified its loans with RBS Citizens, National Association (“RBS Citizens”) and has requested that the Bank modify and amend its Loan Documents so that some of
the financial covenants, terms, and conditions of the Loan Documents are consistent with the RBS Citizens loan documents (the “RBS Citizens Loan Documents”). 
 Bank has agreed to amend and modify the Loans, Notes and Loan Documents in accordance with the terms and conditions of this Agreement. Other than as modified in this Agreement, all of the terms and
conditions of the Notes, Loans and Loan Documents will remain in full force and effect, as same have been modified and amended and to the extent not inconsistent with this Agreement. 
 The Notes and Loan Documents are modified and amended so that the following terms and conditions are incorporated into the Loan Documents
and will be binding upon the Borrower from the date hereof and will be applicable to the Loan: 
 1. Leverage Ratio. At
all times, the Borrower’s Leverage Ratio shall not exceed 1.25 to 1.0. This covenant is to be tested quarterly, with the first test as of September 26, 2009. As used herein, “Leverage Ratio” shall mean, for any applicable period
of computation, the ratio of the following for the Borrower and its subsidiaries on a consolidated basis determined in accordance with GAAP: (a) Total Liabilities of the Borrower and its subsidiaries as of the end of such period to
(b) Tangible Net Worth as of the date of the end of such period. 

 2. Minimum Debt Service Coverage. At all times, the Borrower shall generate a minimum
Debt Service Coverage Ratio of 1.20x. The Debt Service Coverage Ratio shall be established by taking the Borrower’s EBITDA, less unfinanced capital expenditures, less dividends paid, divided by interest expense, plus regularly scheduled
payments of principal paid on Indebtedness plus cash taxes for the period in question. This covenant is to be tested quarterly, with the first test as of June 26, 2010, on a trailing twelve (12) month basis. The Borrower and the Bank have
agreed to suspend the requirement of the Borrower’s compliance with this Debt Service Coverage Ratio covenant for the testing periods ending September 26, 2009, December 31, 2009, and March 27, 2010; provided however, that
this suspension of the Debt Service Coverage Ratio covenant is granted on a one time basis, shall not apply to any subsequent period, and shall not result in an obligation of the Bank to grant any additional suspensions or waivers in the future. For
purposes of measuring the Debt Service Coverage Ratio, the payment of a one-time “bullet” payment to the Bank in the amount of $1,000,000.00 due in December 2009 shall be excluded from the calculation of “regularly scheduled payments
of principal paid on Indebtedness.” 
 3. Consolidated EBITDA. Commencing with the fiscal quarter ending
September 26, 2009, and measured quarterly as of the final day of each fiscal quarter thereafter for the cumulative periods as set forth below, the Borrower shall not permit the EBITDA to be less than the following: 
  

			
	 Cumulative Period:
	  	 Minimum EBITDA

	 3 Months ending September 26, 2009
	  	Not less than $0.00
	 6 months ending December 31, 2009
	  	$2,500,000.00
	 9 months ending March 27, 2010
	  	$3,500,000.00

 4. Effect Upon Existing Covenants. The financial covenants set forth in
paragraphs 1 through 3 above are in substitution and replacement in full of the Minimum Debt Service Coverage and Leverage Ratio financial covenants set forth in Loan Documents 
 5. Maximum Capital Expenditures. The Borrower, will not permit, directly or indirectly, its aggregate Capital Expenditures for the
purchase, fabrication, lease (capital leases), or creation of fixed assets to exceed the amount of $2,000,000 for the twelve (12) month period ending June 26, 2010. 
 6. For the purpose of determining the above financial covenants the following definitions will apply: 
 Total Liabilities means, total Indebtedness as determined by GAAP. 
 Intangible Assets means assets that in accordance with GAAP are properly classifiable as intangible assets, including, but not
limited to, goodwill, franchises, licenses, patents, trademarks, trade names and copyrights. 
  

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 Indebtedness means all obligations that in accordance with GAAP should be classified
as liabilities upon a balance sheet. 
 Total Assets means, total assets as determined by GAAP. 
 Tangible Net Worth means, as of the applicable measurement date, Total Assets minus the sum of: (i) Intangible Assets, and
(ii) Total Liabilities. 
 The definition of “EBITDA” included in the Loan Documents is modified to add
back to the earnings of the Borrower any non-cash charges for stock based compensation, to the extent deducted when calculating such earnings. 
 7. Cross-Default. Borrower and Bank agree that the failure by the Borrower to comply with any of the terms and conditions of the RBS Citizens Loan Documents, subject to any notice or cure periods
included in the RBS Citizens Loan Documents, may, at the option of the Bank, result in a default under the Loan Documents. 
 8.
The Borrower hereby certifies that: (a) all of its representations and warranties in the Loan Documents, as amended by this Agreement, are, except as may otherwise be stated in this Agreement: (i) true and correct as of the date of this
Agreement, (ii) ratified and confirmed without condition as if made anew, and (iii) incorporated into this Agreement by reference, (b) other than the Financial Covenant default noted above, no other Event of Default or event which,
with the passage of time or the giving of notice or both, would constitute an Event of Default, exists under any Loan Document which will not be cured by the execution and effectiveness of this Agreement, (c) no consent, approval, order or
authorization of, or registration or filing with, any third party is required in connection with the execution, delivery and carrying out of this Agreement or, if required, has been obtained, and (d) this Agreement has been duly authorized,
executed and delivered so that it constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms. The Borrower confirms that the Obligations remain outstanding without defense, set off, counterclaim,
discount or charge of any kind as of the date of this Agreement. Borrower does hereby release any and all claims, assertions or chose in action that it may have either now or in the future against Lender, this being a general and universal release
of claims. 
 9. The Borrower hereby confirms that any collateral for the Obligations, including liens, security interests,
mortgages, and pledges granted by the Borrower or third parties (if applicable), shall continue unimpaired and in full force and effect, and shall cover and secure all of the Borrower’s existing and future Obligations to the Bank, as modified
by this Amendment. 
 10. This Amendment may be signed in any number of counterpart copies and by the parties to this Amendment
on separate counterparts, but all such copies shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile transmission shall be effective as delivery of a manually executed
counterpart. Any party so executing this Amendment by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile
transmission. 
  

 3 

 11. This Amendment has been delivered to and accepted by the Bank and will be deemed to be
made in the State of New Jersey. This Amendment will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State of New Jersey, excluding its conflict of laws rules. 
 12. Except as amended hereby, the terms and provisions of the Loan Documents remain unchanged, are and shall remain in full force and effect
unless and until modified or amended in writing in accordance with their terms, and are hereby ratified and confirmed. 
 Except as expressly
provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with respect to any provision of any Loan Document, a waiver of any default or Event of Default under any Loan Document, or a waiver or release of any of
the Bank’s rights and remedies (all of which are hereby reserved). 
 13. Borrower shall promptly pay all fees and costs of
the Bank in connection with this Agreement including the reasonable fees and costs of Bank counsel. 
 14. This Agreement may be
signed in any number of counterpart copies and by the parties to this Agreement on separate counterparts, but all such copies shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement by
facsimile transmission shall be effective as delivery of a manually executed counterpart. Any party so executing this Agreement by facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so
shall not affect the validity of the counterpart executed by facsimile transmission. This Agreement will be binding upon and inure to the benefit of the Borrower and the Bank and their respective successors and assigns. 
 REST OF PAGE LEFT INTENTIONALLY BLANK 
 Signatures on Separate Page 
  

 4 

 IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above, have caused
this Agreement to be executed under seal. 
  

					
	WITNESS/ATTEST:	 		 	Wachovia Bank, National Association
			
	/s/ Harry E. Ellis	 		 	/s/ Jeanette A. Griffin
		 		 	Name: Jeanette A. Griffin
		 		 	Title: Senior Vice President
			
	WITNESS/ATTEST:	 		 	Cybex International, Inc.
			
	/s/ Rebecca Price	 		 	/s/ Arthur W. Hicks, Jr.
		 		 	Name: Arthur W. Hicks, Jr.
		 		 	Title: President

  

 52010 Directors Annual Compensation Program

 Exhibit 10.1 
 2010 DIRECTORS ANNUAL COMPENSATION PROGRAM 
 AXIS
Capital Holdings Limited (the “Company”) has established the 2010 Directors Annual Compensation Program (the “Program”) to compensate the directors of the Company for their service to the Board of Directors (the
“Board”) and its committees. The terms of the Program are as set forth herein. 
 1. Eligibility. Any member of
the Board who is not an employee of the Company or any of its subsidiaries shall be entitled to the compensation specified herein and shall be a “Participant” in the Program from and after January 1, 2010 or, if later, the date on
which such person becomes a member of the Board and is otherwise eligible to participate in the Program. Members of the Board who become Participants after January 1 of any year shall be entitled to a pro rated portion of any cash compensation
and shall not be entitled to any equity compensation (or cash compensation in lieu thereof) until January 1 of the next year. 
 2. Cash Compensation. Each Participant shall be entitled to a cash amount determined annually by the Board, in consultation with the Compensation Committee of the Board (the “Committee”), and as set forth on Attachment
A hereto, consisting of an annual retainer and a meeting fee based on the number of Board and committee meetings held during the fiscal year, the number of presentations by the Company at which members of the Board are requested to attend and
whether the Participant serves as a chairman of a committee or as the lead independent director. Participants may elect to receive common shares of the Company in lieu of the cash compensation that would otherwise be payable to them by notifying the
Company of such election prior to January 1 of the year for which the election will be effective. Any common shares issued to Participants pursuant to such election will be issued under the 2007 Long-Term Equity Compensation Plan (the
“2007 Plan”) or any similar plan subsequently adopted by the Board. 
 3. Equity Compensation. Each Participant
shall be entitled to an annual equity award under the 2007 Plan, as set forth on Attachment A hereto. The amount of shares of common stock awarded shall be determined using the fair market value of the common shares of the Company on the
tenth business day after January 1 of each year. Subject to the prior approval of the Committee, Participants may elect to receive cash compensation in lieu of the equity compensation that would otherwise be payable to them by notifying the
Company of such election prior to January 1 of the year for which the election will be effective. All equity awards shall be made effective as of the tenth business day after January 1 of each year. 
 4. Payment. Participants shall receive a lump sum payment of the annual retainer for any fiscal year prior to January 31 of that
fiscal year (or, in the case of any person who becomes a Participant after January 31 of a fiscal year, as soon as practicable after the date on which such person becomes a participant, pro rated as provided in paragraph 1) and a lump sum
payment of the meeting fees, committee chair fees and presiding director fee for any fiscal year prior to January 31 of the next fiscal year or, if earlier, within 60 days after retiring or resigning from the Board. 

 5. Deferral. The ability to defer compensation for services rendered terminated as of
January 1, 2009. Amounts deferred prior to that date must be included as income as of the date the deferred amount is distributed or, if no distribution has occurred, as of the later of (a) the last taxable year beginning before 2018 or
(b) the first taxable year the amounts are no longer subject to a substantial risk of forfeiture. 
 6. Interpretation
of Program. The Committee shall have the authority to administer and to interpret the Program. Any such determinations or interpretations made by the Committee shall be binding on all persons. 
 7. Governing Law. The Program shall be governed by the laws of Bermuda. 
 8. Successors. All obligations of the Company under the Program shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect merger, consolidation, purchase of all or substantially all of the business and/or assets of the Company or otherwise. 
 9. Amendment and Termination. This Program may be amended or terminated at any time by the Board; provided, that no amendment shall
be given effect to the extent that it would have the effect of reducing a Participant’s existing awards under the Program. 
  

 2 

 ATTACHMENT A 
 AXIS CAPITAL HOLDINGS LIMITED 
 NON-EMPLOYEE DIRECTOR
COMPENSATION 
 (effective as of January 1, 2010) 
 Cash Compensation 
  

	1)	Annual retainer for all non-employee directors of $50,000 

  

	2)	Committee Chairs receive the following additional annual cash payments: 

  

				
	 Committee Chair
	  	Annual Payments
	 Corporate Governance and Nominating Committee
	  	$	5,000
	 Risk Committee
	  	$	10,000
	 Finance Committee
	  	$	10,000
	 Compensation Committee
	  	$	10,000
	 Audit Committee
	  	$	30,000

  

	3)	The lead (presiding) director of meetings of non-management directors receives an additional annual cash payment of $15,000. 

  

	4)	Fees for attendance at meetings as follows: 

  

				
	 Type of Meeting
	  	Attendance Fee
	 Board meetings
	  	$	3,000
	 Committee meetings
	  	$	1,500

 Equity Compensation 
 Each non-employee director is entitled to an annual grant of common stock, valued at $100,000 based on the fair market value of the common
shares on the tenth business day after January 1. 
 Compensation Elections 
 Prior to each calendar year, each non-employee director can elect to receive common shares in lieu of their cash compensation or cash in lieu
of their equity compensation otherwise payable to the director in that calendar year. 
 Deferred Compensation Plan

  

	1)	 Effective January 1, 2009, AXIS discontinued Director participation in the AXIS Capital Holdings Limited 2003 Directors Deferred Compensation
Plan, an unfunded nonqualified

  

 A-1 

 
deferred compensation plan. Prior to January 1, 2009, the plan allowed participating directors to elect (1) the amount of cash or stock received as fees for services to be deferred
(expressed as a dollar amount, number of shares or percentage) and (2) the form in which payment is to be made (lump sum or three annual installments) following termination of service as a director. All deferred amounts are 100% vested.

  

	2)	Directors who chose to defer fees otherwise payable in shares were credited a number of phantom stock units equal in amount to the number of shares of stock deferred.
When a cash dividend is paid on the stock, the portion of the participant’s deferral account denominated in phantom share units is credited with additional phantom share units. 

  

	3)	Directors who chose to defer fees otherwise payable in cash were credited with interest on their cash deferral, compounded annually, at a rate of 1% above the 12-month
LIBOR rate for deposits of U.S. dollars reported on the first business day of the year. 

  

 A-2

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