Document:

FIRST AMENDMENT TO FORBEARANCE AGREEMENT

 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. 

	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.

		
	 Print Name:
	 	     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

	
	 CYBEX CAPITAL CORP.

	
	 By     /s/ Arthur W. Hicks, Jr.

		
	 Print Name:
	 	     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

	
	 EAGLE PERFORMANCE SYSTEMS, INC.

	
	 By     /s/ Arthur W. Hicks, Jr.

		
	 Print Name:
	 	     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

	
	 GENERAL MEDICAL EQUIPMENT, LTD.

	
	 By     /s/ Arthur W. Hicks, Jr.

		
	 Print Name:
	 	     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

	
	 LUMEX BED SYSTEMS, INC.

	
	 By     /s/ Arthur W. Hicks, Jr.

		
	 Print Name:
	 	     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

  

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	CYBEX FITNESS GERATE VERTRIEBS,
GMBH
	
	 By    /s/ Arthur W. Hicks, Jr.

	
	 Print Name:     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

	
	TECTRIX FITNESS EQUIPMENT, INC.
	
	 By    /s/ Arthur W. Hicks, Jr.

	
	 Print Name:     Arthur W. Hicks, Jr.

	
	 Title:     Vice President

  
 AGREED AND ACCEPTED BY:

  
 WACHOVIA BANK NATIONAL ASSOCIATION, as Administrative Agent and a
Lender 
  

	 By:         /s/ Ron R. Ferguson

	 Print Name: Ron R. Ferguson

	 Title: Managing Director

  

	FLEET NATIONAL BANK, as Lender
	
	 By:         /s/ Kevin M. Behan

	 Print Name: Kevin M. Behan

	 Title: Vice President

  

	FLEET CAPITAL CORPORATION, as Lender
	
	 By:     /s/ Robert A. Mahoney

	 Print Name: Robert A. Mahoney

	 Title: Senior Vice President

  

 4EMPLOYMENT AGREEMENT BETWEEN COMPANY AND JOHN AGLIALORO

 Exhibit 10.4 
  
 MANAGEMENT EMPLOYMENT AGREEMENT 
  
 The following agreement is hereby entered into between John Aglialoro (hereinafter known as Executive) and CYBEX INTERNATIONAL (together
with its affiliated corporations hereinafter known as the “Company”) and having its principal offices at 10 Trotter Drive, Medway, MA. 02053. 
  

	1.	 	DUTIES AND RESPONSIBILITIES 

  
 Executive agrees to hold the position of Chief Executive Officer with duties/responsibilities of that position and shall be directly responsible to the
Board of Directors. 
  

	2.	 	BEST EFFORTS 

  
 Executive agrees to devote best efforts to his/her employment with the Company on a full-time basis. He/she further agrees not to use the facilities,
personnel or property of the Company for personal or private business benefit. 
  

	3.	 	ETHICAL CONDUCT 

  
 Executive will conduct himself/herself in a professional and ethical manner at all times and will comply with all company policies as well as all State
and Federal regulations and laws as they may apply to the services, products, and business of the Company. 
  

	4.	 	COMPENSATION 

  

	 	a)	 	Salary shall be $360,000/year payable in equal installments as per the company’s payroll policy. Salary shall be considered on an annual basis and may be adjusted based on
performance as approved by the Board. 

  

	 	b)	 	Benefits shall be the standard benefits of the Company as they shall exist from time to time. 

  

	 	c)	 	Other specific benefits as they may be negotiated.  

  

	5.	 	NON-DISCLOSURE 

  
 Executive acknowledges that employment with the Company requires him/her to have access to confidential information and material belonging to the Company,
including customer lists, contracts, proposals, operating procedures, and trade secrets. Upon termination of employment for any reason, Executive agrees to return to the Company any such confidential information and material in his/her possession
with no copies thereof retained. Executive further agrees, whether during employment with the Company or any time after the termination thereof (regardless of the reason for such termination), he/she will not disclose nor use in any manner, any
confidential or other material relating to the business, operations, or prospects of the Company except as authorized in writing by the Company. The foregoing restrictions shall not apply to any 
  

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information which is presently public knowledge or which becomes public knowledge through a source or sources other than employee. 
  

	6.	 	NON-COMPETITION 

  
 During employment with the Company and for a period of two years thereafter (regardless of the reason for termination) Executive agrees he/she will not,
directly or indirectly, in any way for his/her own account, as Executive, stockholder, partner, or otherwise, or for the account of any other person, corporation, or entity: 
  

	 	a)	 	Engage, within any geographic area in which the Company is then conducting its business, in any business segment in which he/she has actively participated as an Executive of the
Company; or 

  

	 	b)	 	Solicit customers who, during the period of employment, were customers of the Company or were actively solicited as customers of the Company; or 

  

	 	c)	 	Offer employment to any employee of the Company in any capacity whatsoever, or attempt to induce or cooperate with any other firm in an attempt to induce an employee of the Company
to leave the employ of the Company; or 

  

	 	d)	 	Attempt or cooperate with any other firm in an attempt to induce any independent contractor of the Company to cease providing services to the Company. 

  

	7.	 	INVENTIONS 

  
 Executive agrees to promptly disclose to the Company each discovery, improvement, or invention conceived, made, or reduced to practice (whether during
working hours or otherwise) during the term of employment. Executive agrees to grant to the Company the entire interest in all of such discoveries, improvements, and inventions and to sign all patent/copyright applications or other documents needed
to implement the provisions of this paragraph without additional consideration. Executive further agrees that all works of authorship subject to statutory copyright protection developed jointly or solely, while employed shall be considered a work
made for hire and any copyright thereon shall belong to the Company. Any invention, discovery, or improvement conceived, made, or disclosed, during the one year period following the termination of employment with the Company shall be deemed to have
been made, conceived, or discovered during employment with the Company. 
  
 Executive acknowledges that the only discoveries, improvements, and other inventions made prior to the date hereof which have not been filed in the United States Patent Office are attached as Exhibit A. 
  

	8.	 	NO CURRENT CONFLICT 

  
 Executive hereby assures the Company that he/she is not currently restricted by any existing employment or non-compete agreement that would conflict with
the terms of this Agreement. 
  

	9.	 	TERMINATION AND TERMINATION BENEFITS 

  

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 Employment is “at will” which means that either the Company or Executive may terminate at any
time, with or without cause or good reason. 
  

	 	a)	 	The Company may terminate other than for “cause” at any time upon written notice to Executive. 

  

	 	b)	 	The Company may terminate employment for “cause” at any time upon written notice setting forth the nature of such cause and in the case of clause (1) or (4), the failure
or default shall not have been fully cured to the reasonable satisfaction of the Company within 30 days after the date such notification is provided. The following, as determined by the Company in its reasonable judgment, shall constitute
“cause” for termination: 

  

	 	(1)	 	Executive’s failure to perform his duties and responsibilities to the Company, which failure is either (a) the result of the intentional conduct of Executive or (b) substantial
and prolonged in nature. 

  

	 	(2)	 	Any Executive misconduct which, in the discretion of the Company, is injurious to the business or interests of the Company. 

  

	 	(3)	 	Violation of any federal, state, or local law applicable to the business of the Company. 

  

	 	(4)	 	Any material breach of this agreement. 

  

	 	c)	 	Executive may terminate employment at any time, with or without good reason, upon 60 days written notice to the Company. 

  

	 	d)	 	If Executive resigns or employment is terminated by the Company for cause, the Company shall have no further obligation to Executive other than for Annual Salary earned through the
date of termination. No severance pay or other benefits of any kind will be provided. 

  

	 	e)	 	In the event the Company terminates Executive’s employment other than “for cause” as defined above, the Company shall, as a severance benefit, continue to pay
Executive his normal salary ending on the first to occur of (1) the second anniversary of the date of termination; or (2) the date Executive obtains other substantially similar employment. In the event Executive obtains other employment which is not
substantially similar, the Company shall pay the difference between Executive’s new salary and that which he received as an Employee of the Company. 

  

	 	f)	 	Regardless of the reason for termination, Executive shall have such rights as may be provided by COBRA and as may be provided pursuant to any retirement plan which is qualified
pursuant to ERISA and in which Executive participates. 

  

	10.	 	MISCELLANEOUS 

  

	 	a)	 	This Agreement and any disputes arising herefrom shall be governed by New Jersey law. 

  

	 	b)	 	In the event that any provision of this Agreement is held to be invalid or unenforceable for any reason, including without limitation the geographic or 

  

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business scope or duration thereof, this Agreement shall be construed as if such provision had been more narrowly drawn so as not to be invalid or
unenforceable. 

  

	 	c)	 	This Agreement supersedes all prior agreements, arrangements, and understandings, written or oral, relating to the subject matter. 

  

	 	d)	 	The failure of either party at any time or times to require performance of any provision hereof shall in no way affect the right at a later time to enforce the same.

  

	 For Executive:
	 	 For the Company:

	 /s/ John
Aglialoro                                       
             
	 	     /s/ Jerry
Lee                                        
                    

		
	 Date: April 8,
2003                                        
        
	 	 Date: April 8,
2003                                        
        

  

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