Document:

FIRST AMENDMENT TO FINANCING AGREEMENT DATED MAY 4, 2004

 Exhibit 10.3 
  
 EXECUTION COPY 
  
 FIRST AMENDMENT TO FINANCING AGREEMENT 
  
 THIS FIRST AMENDMENT TO FINANCING AGREEMENT, dated as of May 4, 2004 (this “Amendment”), is made between CYBEX INTERNATIONAL, INC., a New
York corporation (the “Borrower”), and THE CIT GROUP/BUSINESS CREDIT, INC., a New York corporation (“CIT”). 
  
 RECITALS: 
  
 A. The Borrower and CIT 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, CIT extended to the Borrower a loan facility. 
  
 B. The Borrower has requested that the Financing Agreement be amended. 
  
 C. CIT has agreed to such request, upon the terms and subject to the
conditions and limitations set forth herein, and, to accomplish the foregoing, the Borrower and CIT 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 
  
 The Financing Agreement is hereby amended as follows: 
  
 1.1 Section 1 of the Financing Agreement is hereby amended by adding the following defined terms in the appropriate order alphabetically: 
  
 Availability Block shall mean, for each period set forth in
the table below, the corresponding amount for each such period as set forth in the table below: 
  

			
	 Period

	  	 Availability Block

	 First Amendment Effective Date through November 30, 2004
	  	$1,000,000
	 December 1, 2004 and thereafter
	  	$1,500,000

 First Amendment Effective Date shall mean May 4, 2004. 
  
 1.2 Section 3.1 of the Financing Agreement is hereby amended in its entirety
to read as follows: 
  
 3.1 CIT agrees,
subject to the terms and conditions of this Financing Agreement, from time to time (but subject to CIT’s right to make Overadvances), to make loans and advances to the Company on a revolving basis (i.e. subject to the limitations set forth
herein, the Company may borrow, repay and re-borrow Revolving Loans) in the following amounts: (a) up to the lesser of (i) $9,000,000 or (ii) the Domestic Borrowing Base less Availability Reserves; and (b) up to the lesser of (i) $5,000,000
or (ii) the Foreign Borrowing Base less Availability Reserves; provided, however, CIT shall be under no obligation to make any Revolving Loan if Availability is less than an amount equal to the Availability Block then in effect after
the making of such Revolving Loan. All requests for loans and advances must be received by an officer of CIT no later than (i) 2:00 p.m., New York time, of the Business Day on which any such Chase Bank Rate Loans and advances are required or (ii)
three Business Days prior to any requested LIBOR Loan. Should CIT for any reason honor requests for Overadvances, any such Overadvances shall be made in CIT’s sole discretion and subject to any additional terms CIT deems necessary. 

 
 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. 
  
 ARTICLE II 
  
 REDUCTION, ETC. AND CONSENT 
  
 2.1 CIT hereby agrees to a reduction of the UM Holdings Letter of Credit to
$1,000,000. It is understood and agreed that the Borrower will obtain a letter of credit in the amount of $2,945,722 (the “Kirila Letter of Credit”) to secure a potential judgment against the Borrower relating to the case of
Kirila v. Cybex International, Inc. (the “Case”). The Kirila Letter of Credit shall constitute Permitted Indebtedness under the Financing Agreement. In connection therewith, UM Holdings, Ltd has granted a security interest in
certain collateral to secure the Borrower’s obligations under the Borrower’s reimbursement agreement for the Kirila Letter of Credit. The Borrower’s obligations under the reimbursement agreement for the Kirila Letter of Credit will
not be secured by assets of the Borrower. It is further understood and 
  

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 agreed that any amounts paid by UM Holdings, Ltd on behalf of the Borrower in connection with the Case, may be evidenced
as Subordinated Debt, provided that there shall be no current interest or principal payable under such Subordinated Debt without the prior written consent of CIT and Hilco. 
  
 2.2 CIT hereby consents to the amendment to the Hilco Loan Agreement attached hereto as Schedule A. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 The Borrower hereby represents and warrants to CIT as follows: 
  
 3.1 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. 
  
 3.2 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 CIT has consented to such changes or such changes are not prohibited by the terms of the Financing Agreement. 
  
 3.3 No Event of Default. No Default or Event of Default exists under the Financing Agreement and the other Loan
Documents. 
  
 ARTICLE IV 
  
 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 CIT of the following conditions precedent: 
  
 (a) Receipt by CIT of this Amendment, duly executed by the Borrower, and consented to by each of the Guarantors; 
  
 (b) Receipt of evidence satisfactory to CIT that Hilco shall have approved
this Amendment; 
  
 (c) Receipt by Moore & Van Allen, PLLC, of
its fees and expenses in connection with the preparation of this Amendment, which shall be charged to the Revolving Loan Account as of the date hereof; and 
  

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 (d) Receipt by CIT of such other documents, instruments, and agreements as CIT and its counsel may
reasonably request. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 5.1 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. 
  
 5.2 Applicable Law. This Amendment shall be governed by and construed in accordance with the internal laws and judicial decisions of the State of North Carolina. 
  
 5.3 Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one and the same instrument. 
  
 5.4 Headings. The headings in this Amendment are for the purpose of reference only and shall not affect the construction of this Amendment.

  
 5.5 Waiver of Jury Trial. TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE BORROWER AND CIT EACH 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.

  

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 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

	
	 THE CIT GROUP/BUSINESS CREDIT, INC.

		
	 By:
	 	 /s/ Robert H. Newman

	 Name:
	 	 Robert H. Newman

	 Title:
	 	 Vice President

  

 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 The CIT Group/Business Credit, Inc., a New York corporation (“CIT”), pursuant to that certain Guaranty,
dated July 16, 2003, executed by each of the Guarantors in favor of CIT, 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 CIT. 
  
 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

  

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 SCHEDULE A 
  

[Hilco Amendment] 
  

 7Fourth Amendment to Rights Agreement dated July 26, 2004

 Exhibit 4.1 
  

FOURTH AMENDMENT TO RIGHTS AGREEMENT 
  
 This FOURTH AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”), dated as of July 26, 2004, is by and among Health Net, Inc., a Delaware
corporation (f/k/a Foundation Health Systems, Inc. f/k/a Health Systems International, Inc.) (the “Company”), Computershare Investor Services, L.L.C., a Delaware limited liability company (“Computershare”) and Wells Fargo Bank,
N.A., a national banking association (“Wells Fargo”). Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Rights Agreement as defined below. 
  
 RECITALS 
  
 WHEREAS, the Company and Harris Trust and Savings Bank, an Illinois banking corporation (“Harris Bank”), entered
into a Rights Agreement dated as of June 1, 1996 and amended as of October 1, 1996, May 3, 2001 and May 14, 2004 (as so amended, the “Rights Agreement”); 
  
 WHEREAS, under the Rights Agreement, Computershare replaced Harris Bank as the Rights Agent effective as of May 3, 2001;

  
 WHEREAS, the parties hereto now desire that Wells Fargo be
appointed Rights Agent under the Rights Agreement, effective as of July 26, 2004; 
  
 WHEREAS, the Company deems it advisable to amend the Rights Agreement to reflect the appointment of Wells Fargo as Rights Agent and in certain other respects; 
  
 WHEREAS, pursuant to Section 27 of the Rights Agreement, the board of
directors of the Company has determined that an amendment to the Rights Agreement as set forth herein is necessary and desirable, and the parties hereto desire to evidence such amendment in writing. 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereby agree as follows: 
  

	1.	APPOINTMENT OF SUCCESSOR RIGHTS AGENT. The Company hereby appoints Wells Fargo to act as agent for the Company and the holders of the Rights (who, in accordance with Section 3 of
the Rights Agreement, shall, prior to the Distribution Date, also be the holders of the Common Stock) in accordance with the terms and conditions hereof, and Wells Fargo hereby accepts such appointment to serve as Rights Agent. The appointment of
Wells Fargo as Rights Agent is deemed effective as of July 26, 2004 (the “Appointment Date”). As of the Appointment Date, all references in the Rights Agreement to “Rights Agent” shall be deemed to refer to Wells Fargo.
Computershare shall no long be the Rights Agent and Wells Fargo shall be fully responsible for all responsibilities and obligations of Rights Agent under the Rights Agreement. 

  

	2.	AMENDMENT OF SECTION 3(c). Section 3(c) of the Rights Agreement is hereby amended by deleting such section and inserting in lieu thereof the following: 

  
 Rights shall be issued in respect of all shares of Common Stock which are
issued (whether originally issued or from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date or in certain circumstances provided in Section 22 hereof, after the Distribution
Date. 

  

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Certificates representing such shares of Common Stock shall also be deemed to be certificates for Rights, and shall bear the following legend: 
  
 This certificate also evidences and entitles the holder hereof to certain
Rights as set forth in the Rights Agreement between Health Systems International, Inc. (the “Company”) and Harris Trust and Savings Bank (the “Rights Agent”) dated as of June 1, 1996, as amended from time to time (the
“Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will
be evidenced by separate certificates and will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after
receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or held by, any Person who is, was or becomes an Acquiring Person or an Adverse Person or any Affiliate or Associate thereof (as
such terms are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 
  

provided that any such certificates dated July 26, 2004 or later shall instead bear the following legend: 
  
 This certificate also evidences and entitles the holder hereof to certain
Rights as set forth in the Rights Agreement between Health Net, Inc. (f/k/a Health Systems International, Inc.) (the “Company”) and the Rights Agent thereunder dated as of June 1, 1996, as amended from time to time (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced
by separate certificates and will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after receipt of a
written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or held by, any Person who is, was or becomes an Acquiring Person or an Adverse Person or any Affiliate or Associate thereof (as such terms
are defined in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void. 
  
 With respect to such certificates containing either of the foregoing legends, until the earlier of (i) the Distribution Date or (ii) the Expiration Date,
the Rights associated with the Common Stock represented by such certificates shall be 

  

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evidenced by such certificates alone and registered holders of Common Stock shall also be the registered holders of the associated Rights, and the transfer
of any of such certificates shall also constitute the transfer of the Rights associated with the Common Stock represented by such certificates. 
  

	3.	AMENDMENT OF SECTION 26. Section 26 of the Rights Agreement is hereby amended, effective July 26, 2004, by deleting the address given for the Rights Agent and inserting in lieu
thereof the following: 

  
 Wells Fargo Bank, N.A.

 Shareowner Services 
 161
North Concord Exchange 
 South St. Paul, MN 55075 
 Attention: Darren Larson 
  

	4.	EFFECTIVENESS. This Amendment shall be deemed effective as of the date first written above, as if executed on such date. Except as amended hereby, the Rights Agreement shall remain
in full force and effect and shall be otherwise unaffected hereby. 

  

	5.	GOVERNING LAW. This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. 

  

	6.	MISCELLANEOUS. 

  

	 	(a)	This Amendment may be executed in any number of counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together
constitute but one and the same instrument. 

  

	 	(b)	If any provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, illegal or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

  
 [Signature page follows.] 
  

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 EXECUTED under seal as of the date first set forth above. 
  

									
	 Attest:
	 	 	 	 HEALTH NET, INC.

					
	 	 	/s/    ANGELEE FOX        	 	 	 	 	 	/s/    B. CURTIS WESTEN        
	 Name:
	 	Angelee Fox	 	 	 	 Name:
	 	B. Curtis Westen
	 Title:
	 	Vice President, Assistant General Counsel	 	 	 	 Title:
	 	Senior Vice President, General Counsel and Secretary
			
	 Attest:
	 	 	 	 COMPUTERSHARE INVESTOR SERVICES, L.L.C.

					
	 	 	/s/    CYNTHIA NISLEY        	 	 	 	 	 	/s/    BLANCHE HURT        
	 Name:
	 	Cynthia Nisley	 	 	 	 Name:
	 	Blanche Hurt
	 Title:
	 	Director Relationship Management	 	 	 	 Title:
	 	General Counsel & Secretary
			
	 Attest:
	 	 	 	 WELLS FARGO BANK, N.A.

					
	 	 	/s/    JOHN D. BAKER        	 	 	 	 	 	/s/    DARREN LARSON        
	 Name:
	 	John D. Baker	 	 	 	 Name:
	 	Darren Larson
	 Title:
	 	Vice President	 	 	 	 Title:
	 	Assistant Vice President

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