Document:

Fulfillment Agreement

 Exhibit 10.1 
 FULFILLMENT AGREEMENT 
 This Fulfillment Agreement (the “Agreement”) is dated and
effective as of the 20th day of March, 2007 (the “Effective Date”) by and between CYBEX INTERNATIONAL, INC (“Cybex”), a New York corporation, with its principal offices at 10 Trotter Drive, Medway, Massachusetts, and eNOVA GROUP
LIMITED LIABILITY COMPANY, a Washington limited liability company (hereinafter referred to as “eNOVA”), with its principal place of business at 6505 N.E. Sundance Lane, Bainbridge Island, Washington 98110, and the Persons listed on
Schedule A attached hereto (each hereinafter referred to as a “Principal” and, collectively, as “Principals”), each having an address at 6505 N.E. Sundance Lane, Bainbridge Island, Washington 98110. 
 W I T N E S S E T H 
 WHEREAS, Cybex
is in the business of developing, manufacturing, marketing and selling fitness equipment and related products (collectively “Cybex Fitness Equipment”); and 
 WHEREAS, eNOVA is in the business of acquiring and exploiting intellectual property related to health fitness equipment, including without limitation new product engineering and designs, and marketing concepts for the
same (collectively, “eNOVA Technology”); and 
 WHEREAS, the Principals own all of the outstanding equity interests of eNOVA; and

 WHEREAS, on the date hereof, Cybex has acquired eNOVA’s rights to a line of strength products which is in a preliminary stage of
development and which it is contemplated will utilize a new method of load management known as Dynamic Load ManagementTM (DLMTM), as such line is more particularly identified and described in a certain Asset Purchase Agreement, dated and effective as of March 16, 2007, by and between Cybex, eNOVA and the
Principals (the “Purchase Agreement”), including Schedule B thereto (the “DLM Product Line”); and 
 WHEREAS,
eNOVA and its Principals intend to continue to acquire, engineer and/or develop new eNOVA Technology and Cybex desires to receive from eNOVA and the Principals new eNOVA Technology as developed, and eNOVA and the Principals desire to transfer to
Cybex the rights to new eNOVA Technology pursuant to the terms of this Agreement and in fulfillment of certain commitments made by eNOVA and the Principals under the terms of the Purchase Agreement; and 
 WHEREAS, it is a condition to the consummation of the transactions contemplated by the Purchase Agreement that this Agreement be executed and delivered
by Cybex, eNOVA and the Principals. 
 NOW, THEREFORE, in consideration of the covenants and mutual premises contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Principals, eNOVA and Cybex hereby agree as follows: 

 1. Product Development; Consideration. 
 (a) Subject to the terms and provisions of this Agreement, eNOVA and the Principals will provide
Cybex, during the Term (as such term is defined hereinafter), with continuing product design, product development, marketing and sales concepts for eNOVA Technology as engineered and developed including without limitation DLMTM Products (as such term is defined in the Purchase Agreement) (collectively, the “Fulfillment Products”). The
Fulfillment Products shall include, without limitation, product design, product development, marketing and sales concepts for new and unique fitness equipment products as specifically agreed upon by Cybex and eNOVA from time to time pursuant to the
terms and provisions of a written product development plan (all such products being referred to herein as “New Fulfillment Products”). The Fulfillment Products shall also include product design, product development, marketing and sales
concepts for (i) modifications or improvements made to existing Cybex products, (ii) fitness equipment products that replace an existing Cybex product, or (iii) new fitness equipment products being designed or developed by Cybex
personnel (all such products being referred to herein as “Cybex Fulfillment Products”). 
 (b) The design and development of all
Fulfillment Products and the performance of all other obligations to be performed by eNOVA pursuant to the terms and provisions of this Agreement will be directly provided and performed by the Principals. Each of the Principals hereby agrees that he
will continue to be actively employed by eNOVA on a full-time basis throughout the Term of this Agreement. 
 (c) eNOVA and the Principals
will meet with Cybex at such times and at such locations as may be reasonably requested by Cybex to discuss and report on the status of the Fulfillment Products being developed, or to be developed, by eNOVA and/or the Principals hereunder. Cybex
agrees to reimburse Principals for all reasonable travel costs incurred by the Principals to attend any such meeting, so long as such costs have been approved in advance in writing by Cybex. 
 (d) eNOVA will make such of its facilities and technology available to Cybex as may be reasonably necessary to enable Cybex to monitor the progress of
all Fulfillment Products being developed by eNOVA and/or the Principals hereunder. 
 (e) For the product design, product development, marketing and sales concepts to be provided by eNOVA and the Principals hereunder, Cybex will pay to eNOVA during the Term an annual advance acquisition fee in the amount of Four Hundred
Thousand Dollars ($400,000.00) (the “Annual Development Fee”). The Annual Development Fee will be payable by Cybex to eNOVA in twelve equal, monthly installments on or before the 10th day of each calendar month. 
 (f) As additional
compensation for the Fulfillment Products being developed by eNOVA and the Principals hereunder, Cybex will pay to eNOVA incentive consideration (the “Incentive Acquisition Fee”) in an amount equal to five percent (5%) of the Net
Sales Price (as such term is defined hereinafter) of all DLMTM Products, and any New Fulfillment Products developed hereunder, which are sold by Cybex. For purposes of this Agreement, the term “Net Sales Price” shall mean the gross
sales price, less all uncollected invoices, returns, allowances, 

  

 2 

 
rebates, and discounts, and less any taxes, insurance charges, or transportation charges included on the invoice, as determined by Cybex in its reasonable
discretion. Incentive Acquisition Fees will be paid by Cybex to eNOVA quarterly, based upon invoice date, within thirty (30) days following the end of each calendar quarter. Each Incentive Acquisition Fee payment made by Cybex to eNOVA
hereunder shall be accompanied by the written report (the “Payment Reports”) prepared by Cybex and certified by the Chief Financial Officer of Cybex as accurate setting forth the total Net Sales Price received by Cybex from the sale of
DLMTM Products, and any New Fulfillment Products by Cybex during the preceding quarter and the method of computing the Incentive Acquisition Fee. Each Payment Report shall be deemed to be accepted by eNOVA and the Principals unless a written
notice of objection, setting forth the basis for the dispute, is received by Cybex from eNOVA or a Principal within fifteen (15) days of eNOVA’s receipt of the applicable Payment Report. 
 (g) Notwithstanding anything to the contrary set forth herein, unless otherwise agreed to in writing by Cybex and eNOVA, no Incentive Acquisition Fee
will be payable by Cybex to eNOVA hereunder with respect to any Cybex Fulfillment Product. 
 (h) Notwithstanding anything to the contrary
set forth herein, Incentive Acquisition Fees will be payable by Cybex to eNOVA hereunder on each New Fulfillment Product and DLMTM Product for three (3) years from the date of the first shipment of such product by Cybex to a customer, and
Cybex will owe no Incentive Compensation with respect to sales made after such three (3) year period. 
 (i) Notwithstanding anything to
the contrary set forth herein, the amount of any Incentive Acquisition Fee owed by Cybex to eNOVA hereunder shall be reduced by the aggregate amount of Annual Development Fees theretofore paid by Cybex to eNOVA hereunder (to the extent such fees
have not been previously applied as a reduction to any other Incentive Acquisition Fee payment owed hereunder). 
 (j) In addition to the
payment of Incentive Acquisition Fees and Annual Development Fees, Cybex will pay eNOVA Fifteen Thousand Dollars ($15,000.00) for each of the first two (2) Non-DLM Prototypes (as such term is defined hereinafter in subsection 2(b)(ii))
delivered to Cybex hereunder and which Cybex, in its sole discretion, elects to market. The maximum amount of compensation to which eNOVA shall be entitled pursuant to this subsection (j) shall be Thirty Thousand Dollars ($30,000.00).

 (k) Cybex will reimburse eNOVA, upon receipt of documented invoices, for all out-of-pocket expenses incurred by eNOVA and/or the
Principals (such as materials, outside vendors, etc.) in connection with the development of one prototype for each DLMTM Product hereunder, up to a maximum amount of Three Thousand Dollars ($3,000.00) per prototype. Cybex, eNOVA and the
Principals agree to use their best efforts, and to cooperate with one another, to minimize the cost of all prototypes developed hereunder. It is understood and agreed by the parties hereto that, except as expressly set forth herein, Cybex
shall not be liable in any way for any costs, expenses, taxes, or fees incurred by eNOVA or any Principal in connection with the development of any products or the performance of any other obligations hereunder, all of which shall be borne
exclusively by eNOVA and/or the Principals unless reimbursement is expressly authorized in writing in advance by Cybex. 
  

 3 

 (l) During the ninety (90) day period following the second (2nd) anniversary of the Effective
Date, upon written notice to eNOVA and the Principals, and the payment by Cybex to eNOVA of a fee in the amount of One Million Four Hundred Fifty Thousand Dollars ($1,450,000.00) (the “Termination Payment”), Cybex shall have no obligation
to make any additional payments to eNOVA or any Principal hereunder with respect to any Annual Development Fee or any Incentive Acquisition Fee which would otherwise become payable by Cybex under this Agreement for any period after the second
(2nd) anniversary of the Effective Date. This Agreement, and the parties’ respective rights and obligations hereunder, shall otherwise remain in full force and effect following the receipt by eNOVA of the Termination Payment as provided
for in subsection 2(c) below. 
 2. Term; Termination. 
 (a) The term of this Agreement will commence on the Effective Date and continue in effect for a period of three (3) years (the “Initial Term”) unless earlier terminated in accordance with the terms
hereof. This Agreement will automatically renew for successive one (1) year renewal terms (each, a “Renewal Term,” and collectively along with the Initial Term, the “Term”) unless or until a party hereto gives the other
parties hereto written notice at least sixty (60) days prior to the termination of the then-current term of its intent not to renew. 
 (b) This Agreement may be terminated: 
 (i) By either party, to the extent permitted under applicable law, if the other ceases to
function as a going concern, becomes insolvent, makes an assignment for the benefit of creditors, files a petition in bankruptcy, permits a petition in bankruptcy to be filed against it and such petition is not dismissed within sixty (60) days
of filing, or admits in writing its inability to pay its debts as they mature, or if a receiver is appointed over a substantial part of its assets. 
 (ii) By either party by reason of any other material breach of this Agreement by the other party which breach has not resulted in a reasonably acceptable plan for remedy or cure or which breach has not been remedied
or cured after at least thirty (30) days’ written notice delivered by the aggrieved party to the other party. 
 (iii) By Cybex at
any time following the eighteen (18) month anniversary of the Effective Date, upon written notice to eNOVA and the Principals, if eNOVA shall have failed to provide Cybex, during said eighteen (18) month period, with at least two
(2) fully functional eNOVA Technology product prototypes that are not based upon or derivative of the DLM Product Line in any manner (each such prototype being hereinafter referred to as a “Non-DLM Prototype”) which Cybex, in its sole
discretion, shall have elected to market. 
 (iv) By Cybex at any time if either Principal is unable for any reason, including without
limitation death or disability, to perform his duties hereunder for a period of more than thirty (30) consecutive days or if a Principal is no longer actively employed on a full-time basis by eNOVA. 
 (c) In the event of termination of this Agreement for any reason, all rights and obligations contained herein which by their nature should survive
including, without limitation Sections 1(e)-(h), 2, 3, 4, 6, 7, 8, and 10-17, shall so survive, and all other rights and obligations shall terminate. 
  

 4 

 3. Nature of Relationship; Exclusivity. 
 (a) It is understood and agreed that eNOVA and the Principals are, and at all times during the Term shall remain, independent contractors of Cybex. At no
time shall either eNOVA or any Principal represent to any third party that it is an agent of Cybex without Cybex’s express prior written consent in each instance. In no event shall eNOVA or any Principal at any time have authority to make any
contracts, commitments or undertake any obligations on behalf of Cybex. Without limiting the foregoing, eNOVA and each Principal agrees that it will not, during or after the Term, represent to any person that it acts for or on behalf of Cybex or
make use of Cybex’s name, or advertise its relationship with Cybex, without Cybex’s express prior written consent in each instance. 
 (b) Cybex may, during the Term and at any time thereafter, seek third-party development of fitness equipment products from sources other than eNOVA or the Principals, or may develop fitness equipment products internally using its own
development staff, without first giving eNOVA and/or any Principal an opportunity to provide the same products hereunder; provided, however, that Cybex may not incorporate in any such fitness equipment product any concept or idea disclosed by eNOVA
to Cybex in connection with any product developed under this Agreement and for which United States patent protection has been obtained unless an Incentive Acquisition Fee is paid by Cybex to eNOVA pursuant to the terms and provisions of this
Agreement. 
 (c) The continuing product development, product marketing and sales concepts and related services to be provided by eNOVA and
the Principals to Cybex under the terms and provisions of this Agreement will be provided to Cybex on an exclusive basis. Without limiting the generality of the foregoing, during the Term of this Agreement, neither eNOVA nor any Principal, nor any
of their respective affiliates, shall directly or indirectly provide products, eNOVA Technology, or services to, or disclose any information with respect to products or product development projects to, any individual, company or firm engaged in any
way in the fitness industry, nor will eNOVA or any Principal, or any of their respective affiliates, directly or indirectly attempt to manufacture, sell or market any fitness equipment product, even if Cybex declines to sell or market such product
when presented to it under the terms of this Agreement. Any ideas, designs, inventions, discoveries, improvements, written materials, or the like that eNOVA or any Principal, or any of their respective affiliates, may conceive, make, invent,
produce, develop or suggest during the Term of this Agreement relating to or useful in the fitness industry shall be the absolute property of, and shall be promptly disclosed in writing to, Cybex. 
  

 5 

 4. Intellectual Property Ownership. 
 (a) eNOVA and each Principal hereby irrevocably assigns to Cybex, and Cybex shall be the exclusive owner of, all right, title and interest in and to any
ideas, designs, inventions, discoveries, improvements, written materials, or the like that eNOVA or any Principal, or any of their respective affiliates, may conceive, make, invent, produce, develop or suggest during the Term of this Agreement
relating to or useful in the fitness industry and all work product and documentation produced pursuant to or in connection with this Agreement (the “Developed Works”) including, without limitation, all eNOVA Technology and all applicable
Intellectual Property Rights (as such term is defined hereinafter) thereto. For purposes of this Agreement, the term “Intellectual Property Rights” shall mean any and all now known or hereafter known tangible or intangible (i) rights
associated with works of authorship throughout the universe, including but not limited to copyrights, moral rights, and mask works, (ii) trademark and trade name rights and similar rights, (iii) trade secret rights, (iv) patents,
designs, algorithms and other industrial property rights, (v) all other intellectual and industrial property rights (of every kind and nature throughout the universe and however designated), whether arising by operation of law, contract,
license or otherwise, and (vi) all registrations, initial applications, renewals, extensions, continuations, divisions or reissues thereof now or hereafter in force (including any rights in any of the foregoing). All ideas, designs, inventions,
discoveries, improvements, written materials, or the like that eNOVA or any Principal, or any of their respective affiliates, may conceive, make, invent, produce, develop or suggest relating to or useful in the fitness industry which are
incorporated into any product which is sold and shipped by eNOVA, the Principals or any third party to an end-user during the ten-month period following the Term of this Agreement shall automatically be deemed to be a Developed Work for purposes of
this Agreement. 
 (b) If eNOVA or any Principal has any rights described in Section 4(a) above that cannot be assigned to Cybex, eNOVA
and each Principal hereby waives the enforcement of such rights, and if eNOVA or any Principal has any rights that cannot be assigned or waived, eNOVA or such Principal, as applicable hereby grants to Cybex a worldwide, exclusive, sublicensable
(through multiple tiers), assignable, royalty-free, perpetual, irrevocable license to such rights. 
 (c) eNOVA and each Principal
acknowledges that there are, and may be, future rights that Cybex may otherwise become entitled to with respect to the Developed Works and the Intellectual Property Rights that do not yet exist, as well as new uses, media, means and forms of
exploitation throughout the universe exploiting current or future technology yet to be developed, and eNOVA and each Principal specifically intends the foregoing assignment of rights to Cybex to include all such known or unknown uses, media and
forms of exploitation throughout the universe. eNOVA and each Principal must obtain the prior written consent of Cybex before utilizing in any way any aspect or component of any Developed Work or Intellectual Property Right for purposes other than
providing eNOVA Technology or Fulfillment Products to Cybex pursuant to this Agreement. 
  

 6 

 (d) Cybex shall retain ownership of all of the intellectual property rights in and to all information and
materials it owns and supplies to eNOVA or any Principal pursuant to this Agreement or otherwise (collectively, “Cybex Intellectual Property”). Cybex hereby grants to eNOVA and each Principal a non-exclusive, worldwide, non-transferable,
non-sublicenseable, royalty-free license for the Term of this Agreement to make, have made, use, sell, copy, modify, display, distribute and perform the Cybex Intellectual Property for the sole benefit of Cybex in connection with the performance of
this Agreement. 
 (e) Cybex will bear the cost of all intellectual property protection of any eNOVA Technology acquired by it. 

5. Mutual Representations and Warranties. Each party hereto hereby represents and warrants to the other parties hereto that: 
 (a) It has the legal power and authority to enter into this Agreement. 
 (b) It will abide by all applicable laws, treaties and regulations in connection with its performance of this Agreement. 
 (c) Its execution and performance of this Agreement does not conflict with, or otherwise give rise to a breach of, any duty, obligation, warranty, representation or covenant contained in any other agreement entered
into by it. 
 (d) It will perform its obligations hereunder in a timely, professional and workmanlike manner. 
 6. Warranties. 
 (a) In addition to
any warranties that may be required by Cybex for a particular Developed Work produced hereunder, eNOVA and each Principal jointly and severally represents and warrants to Cybex that: 
 (i) No Developed Work shall infringe the intellectual or proprietary rights of any third party (provided, however, that neither eNOVA nor any Principal
makes any warranty with respect to any Intellectual Property Right furnished by Cybex hereunder for incorporation into any Developed Work). 
 (ii) Each Developed Work will, at time of delivery to Cybex, and thereafter for a period of twelve (12) months, be free from design defects of any kind, and will conform to any specifications and/or any documentation pertaining to the
Developed Work delivered to or approved by Cybex. 
 (b) Cybex shall promptly notify eNOVA and the Principals of any breach of the foregoing
warranty in subsection (a)(ii) above. In such an event, eNOVA and the Principals shall use good faith efforts to repair the defective Developed Work. 
  

 7 

 7. Confidential Information. 
 (a) In connection with the performance of this Agreement, a party may disclose to the other parties to this Agreement its confidential and/or proprietary
Information (as such term is defined hereinafter). For purposes of this Agreement, the term “Information” shall mean all information relating to the discloser which is marked confidential or proprietary, if in writing or, if provided by
oral communication, confirmed in writing as confidential or proprietary within ten (10) days of its disclosure. 
 (b) All Information
disclosed by a party shall remain the property of that party. The recipient of Information shall keep the Information secret and confidential, and shall not provide or otherwise make available or disclose the Information to any third party. The
recipient of Information may use the Information solely for purposes of fulfilling its obligations under this Agreement. The recipient of Information shall be liable to the discloser for any breaches or violations of this Agreement by any director,
officer, employee, consultant, subcontractor, or agent of the recipient. 
 (c) Upon the written request of a discloser of Information, and
in any case, upon the termination of this Agreement, the recipient of such Information shall promptly return to the discloser all tangible material (including all copies, models and samples thereof) that discloses or relates to any of the
Information. 
 (d) The obligations of the parties under this Section 7 shall not apply to: (i) Information which, at the time of
disclosure thereof, is in the public domain; (ii) Information which, after disclosure, becomes a part of the public domain by publication or otherwise, except by breach of this Agreement by the recipient; (iii) Information which the
recipient receives from a third party who has the right to, and legally does, disclose the same to the recipient; or (iv) Information which is required to be disclosed by judicial or administrative process or, in the opinion of counsel, by
other mandatory requirements of law. 
 (e) Each recipient of Information hereunder agrees that the provisions of this Section are reasonable
and necessary to protect the interests of the discloser of Information and that the discloser’s remedies of law for a breach of any of the provisions of this Section will be inadequate and that, in connection with any such breach, the discloser
will be entitled, in addition to any other available remedies (whether at law or in equity), to seek temporary and permanent injunctive relief without the necessity of proving actual damage or immediate or irreparable harm, or of the posting of a
bond. Notwithstanding the foregoing, if a court of competent jurisdiction shall determine any of the provisions of this Section to be unreasonable, the recipient agrees that the court shall amend such provisions found to be unreasonable in such
manner to give them a reasonable meaning. 
 8. Indemnification. 
 (a) Each party shall indemnify and hold the other party and its affiliates, and their respective directors, officers, employees, agents, and
representatives, from and against all 

  

 8 

 
claims, losses, expenses, damages, costs, and reasonable attorneys’ fees that they, or any of them, at any time incur by reason of any actions or suits
brought against them, or any of them, by any third party or parties (collectively, “Liabilities”) arising out of or related to (i) any unlawful acts, negligence, or willful misconduct on the part of such party or its officers,
directors, agents, employees, or subcontractors, or (ii) the breach of or default under any material provision of this Agreement, or misrepresentation contained in this Agreement, by such party or its officers, directors, agents, employees, or
subcontractors. 
 (b) With respect to any such claim or demand by any third party, the party seeking indemnification shall notify the party
from which indemnification is sought in writing promptly upon the assertion thereof and shall afford such party a reasonable opportunity to defend against same. 
 9. Assignment. This Agreement may not be assigned by eNOVA or any Principal without the prior written consent of Cybex, which may be withheld by Cybex in its sole discretion. Cybex may assign its rights and
obligations under this Agreement to any affiliate of Cybex or to any entity that succeeds to a material portion of the business or assets of Cybex. 
 10. Governing Law; Jurisdiction. This Agreement shall be governed and construed in all respects by the laws of the State of New York without giving effect to any applicable conflict of law principles. The parties hereto irrevocably
consent to the exclusive jurisdiction and venue of the courts located in the State of New York, with respect to any dispute or matter arising out of or related to this Agreement. 
 11. Notices. All notices required to be given under this Agreement shall be in writing and shall be validly given if delivered personally or sent
by registered or certified mail, postage prepaid to the address set forth in the Purchase Agreement (or to such other address as either party may designate by written notice to the other). 
 12. Entire Agreement; Amendment. This writing contains the entire agreement of the parties concerning the subject matter hereof. Except as
otherwise set forth herein, this Agreement may be amended only by a written instrument signed by all parties hereto. 
 13.
Severability. If any provision of this Agreement, or the application thereof, shall for any reason and to any extent be determined by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Agreement
shall be interpreted so as best to reasonably effect the intent of the parties. The parties further agree to replace any such invalid or unenforceable provisions with valid and enforceable provisions designed to achieve, to the extent possible, the
business purposes and intent of such invalid and unenforceable provisions. 
 14. Waiver. No waiver by a party of any of the
requirements of this Agreement or any of the rights hereunder shall be effective unless given in writing and signed by such party and no forbearance, delay or indulgence by any party in enforcing the provisions of this Agreement shall prejudice or
restrict the rights of that party, nor shall any waiver by any party of any of the requirements hereof or any of its rights hereunder lease any other party from full performance of its obligations hereunder. 
  

 9 

 15. Set-off. Cybex may set-off or deduct from any monies due or to become due to eNOVA hereunder
or under the Purchase Agreement any monies due from eNOVA or any Principal to Cybex pursuant to this Agreement or the Purchase Agreement. 
 16. Mediation. Any dispute arising under or in connection with this Agreement shall be first submitted to mediation under the mediation rules of the American Arbitration Association. If the dispute to been resolved through said
mediation process to the satisfaction of all concerned parties within thirty (30) days (or any extension of said time period agreed to by the parties) from the date of commencement of the mediation process, then the parties shall proceed to
arbitration pursuant to Section 17 below. 
 17. Arbitration. If the parties fail to resolve any dispute arising under or in
connection with this Agreement by mediation, then the dispute will be settled by arbitration as set forth in this Section. No legal right of action may arise out of any such dispute until arbitration has been completed. Each party, however, will
have full access to the courts to compel compliance with these arbitration provisions, to enforce an arbitration award or to seek injunctive relief or other non-monetary judicial relief, whether or not arbitration is available or under way. The
arbitration will take place as follows: 
 (a) Notice. The party demanding arbitration must give the other party a written notice of
such demand. The written notice must contain, in addition to the demand for arbitration, a clear statement of the issue or issues to be resolved by arbitration, an appropriate reference to the provision of the Agreement which is involved, the relief
the party requests through arbitration, and the name and address of the arbitrator selected by the demanding party. 
 (b) Response.
The party receiving the notice of the demand for arbitration must provide a written response to the demand within fifteen (15) days following receipt of the notice. The response must contain a clear statement of the respondent’s position
concerning the issue or issues in dispute and the name and address of the arbitrator it selects as one of the arbitrators to hear the dispute. If the party receiving the notice of demand for arbitration fails to designate its arbitrator within the
time allowed, the demanding party may apply to the United States District Court in the district in which the demanding party has its principal place of business, to designate the second arbitrator. 
 (c) Third Arbitrator. Within seven (7) days following the selection of the second arbitrator, the two arbitrators selected in accordance with
subsections (a) and (b) above will select a third arbitrator. If they fail to do so within that time period, either party may apply to the United States District Court in the district in which the demanding party has its principal place of
business, to designate the third arbitrator. 
 (d) Arbitration Proceeding. The arbitrators will meet in principal place of business
of the demanding party within twenty (20) days after the selection of the third arbitrator and will allow each party an opportunity to submit oral and written evidence and argument concerning the issue in dispute. The arbitration hearing shall
be no longer than five (5) consecutive business days to be equally divided between the parties. The three (3) arbitrators may resolve only the question or questions submitted to arbitration and must include as part of their consideration a
full review of the Agreement and all material incorporated in the Agreement 

  

 10 

 
by reference. The arbitration proceeding must be completed through the rendering of the award within three (3) months of the selection of the
arbitrators. The timing requirements set forth herein cannot be modified unless mutually agreed by the Parties in writing. 
 (e)
Decision. The decision of a majority of the arbitrators will be final and will bind the parties. The award of the arbitrators may be monetary damages only. In no event may the arbitrators issue an award of any form of exemplary or punitive
damages. Nor may the arbitrators make any ruling, finding or award that does not conform to the terms and conditions of this Agreement. 
 (f) Consent to Change. By consent of all parties to any dispute under this Agreement, the method of selection of arbitrators, or even the arbitrators selected, may be changed at any time. 
 (g) Payment of Costs. In any arbitration proceeding conducted pursuant to this Section 17, each party will pay its own costs, witness fees,
and attorneys’ fees and the fees charged by the arbitrator it selects. The fees charged by the third arbitrator and the costs of the proceeding shall be borne equally. 
 18. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which taken together shall
constitute one and the same document. 
 IN WITNESS WHEREOF, the parties have signed this Agreement and intend that it be effective as of the
date set forth above. 
  

			
	 eNOVA GROUP LIMITED LIABILITY COMPANY

		
	 By:
	 	 /s/ Stephen M. Williams

		 	Stephen M. Williams, Manager
	
	 /s/ Stephen M. Williams

	STEPHEN M. WILLIAMS, Principal
	
	 /s/ Roy Simonson

	ROY SIMONSON, Principal
	
	CYBEX INTERNATIONAL, INC.
		
	 By:
	 	 /s/ John Aglialoro

		 	Chief Executive Officer

  

 11 

 SCHEDULE A 
 LIST OF PRINCIPALS 
 Stephen M. Williams 
 Roy Simonson 
  

 12Form of Restricted Stock Grant Agreement Plan

 Exhibit 10.7 
 FARO Technologies 2004 Equity Incentive Plan 
 Restricted Stock Award Agreement 
 You have been selected to be a Participating Director in the FARO Technologies, Inc. 2004 Equity Incentive Plan (the “Plan”), as specified
below: 
 Participating Director: 
 Date of Grant: ____________________________________________________ 
 Number of Shares of
Restricted Stock Granted: ______________________________________ 
 THIS AGREEMENT evidences the grant of shares of restricted stock (the
“Restricted Stock”) by FARO Technologies, Inc., a Florida corporation (the “Company”), to the Non-Employee Director named above, pursuant to the provisions of the Plan. 
 The Plan provides a complete description of the terms and conditions governing the Restricted Stock. If there is any inconsistency between the terms of
this Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth
otherwise herein. The parties hereto agree as follows: 
 1. Grant of Restricted Stock. The Company hereby grants to the
Participating Director the number of Shares of Restricted Stock set forth above, subject to the terms and conditions of the Plan and this Agreement. 
 2. Vesting of Restricted Stock. The Restricted Stock will vest in one-third increments on each of the first three anniversaries of the Date of Grant. If the Participating Director ceases to be a director
for reasons other than death or disability (as determined by the Committee), the Shares of Restricted Stock that have not yet vested as of the date of such cessation will be immediately forfeited. If the Participating Director ceases to be a
director as a result of death or disability (as determined by the Committee) prior to the date all Shares of Restricted Stock have vested in full, then all such Shares shall vest on the date of such termination. 
 3. Dividends Paid on Restricted Stock. During the period between the Grant Date and the date the Shares of Restricted Stock are vested, the
Participating Director will receive all cash dividends and other distributions paid with respect to the Shares of Restricted Stock, in each case so long as the applicable record date occurs before the date of forfeiture of such Shares. If, however,
any such dividends or distributions are paid in Shares, such Shares will be subject to the same risk of forfeiture, restrictions on transferability and other terms of this Award as are the Shares of Restricted Stock with respect to which they were
paid. 
 4. Nontransferability of the Restricted Shares. The Shares of Restricted Stock may not be sold, transferred or
otherwise alienated or hypothecated until they are vested. 
 5. Escrow. The Shares of Restricted Stock will be held in escrow
by the Company, as escrow agent. The Company will give the Participating Director a receipt for the Shares held in escrow that will state that the Company holds such Shares in escrow for the Participating Director’s account, 

  

 1 of 3 

 
subject to the terms of this Award, and the Participating Director will give the Company a stock power for such Shares of Restricted Stock duly endorsed in
blank which will be used in the event such Shares are forfeited in whole or in part. As soon as practicable after the date a Share of Restricted Stock vests, such Share will cease to be held in escrow, and the Company will deliver certificate(s) for
such number of Shares to the Participating Director or, in the case of the Participating Director’s death, to his or her estate. 
 6. Powers of the Company Not Affected. The existence of this Award shall not affect in any way the right or power of the Company or its shareowners to make or authorize any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or prior preference stock senior to or affecting the Common
Stock or the rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of the Company’s assets or business or any other corporate act or proceeding, whether of a similar character or otherwise.

 7. Interpretation by Committee. As a condition of the granting of the Shares of Restricted Stock, the Participating Director
agrees, for himself or herself and his or her legal representatives or guardians, that this Agreement shall be interpreted by the Committee and that any interpretation by the Committee of the terms of this Agreement and any determination made by the
Committee pursuant to this Agreement shall be final, binding and conclusive. 
 8. Miscellaneous. 
 (a) This Agreement and the rights of the Participating Director hereunder are subject to all the terms and conditions of the Plan, as the same may be
amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. In addition to the restrictions described herein, the Committee shall have the right to impose such restrictions on any
Shares acquired pursuant to the Award, as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under applicable federal and state tax law, under the requirements of any stock exchange or market
upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. 
 (b) It is
expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participating Director.

 (c) The Participating Director agrees to take all steps necessary to comply with all applicable provisions of federal and state securities
and tax laws in exercising his or her rights under this Agreement. 
 (d) This Agreement shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 (e) All obligations
of the Company under the Plan and this Agreement shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or 

  

 2 of 3 

 
indirect purchase of all or substantially all of the business and/or assets of the Company, or the result of a merger, consolidation or otherwise.

 (f) To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the
State of Florida. 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Date of Grant. 
  

			
	FARO TECHNOLOGIES, INC.
		
	By:	 	  
	Name: 	 	  
	Title: 	 	  
	
	PARTICIPATING DIRECTOR
	
	  
	Name: 	 	  
	SSN: 	 	  

  

 3 of 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]