Document:

Exhibit 10.8

 

DynaVox Systems Holdings LLC

 

 

Management Incentive Bonus (“MIB”) Plan

 

 

March 2010

 

 

INTRODUCTION

 

This
document sets forth the terms and conditions of the DynaVox Systems Holdings
LLC Management Incentive Bonus Plan, as it may be amended and in effect from
time to time (the “Plan”). This Plan applies to all employees of the
Company that fulfill the eligibility requirements of the Plan and is intended,
subject to annual review by the Board or the Committee acting on behalf of the
Board, to be recurring annually.

 

PURPOSE

 

The
purpose of the Plan is to motivate, reward, and acknowledge achievement by
employees of the Company.

 

POLICY

 

It
is Company policy to reward Company employees periodically for achieving
performance targets based upon consolidated financial results of DynaVox
Systems Holdings LLC, which are then modified based upon individual performance
objectives. These rewards are made through the Plan.

 

A.            RESPONSIBILITY/ADMINISTRATION

 

1.             The Plan will be
administered jointly by the CFO, who is responsible for monitoring the
financial performance measurements, and the CEO, who, in coordination with the
Human Resources department, monitor individual performance measures.

 

2.             All bonus targets (minimum,
on-target and maximum) and subsequent payouts under the Plan must be approved
by the Committee.

 

3.             The Committee is authorized
to (i) interpret the Plan, (ii) establish, amend and rescind any rules and
regulations relating to the Plan, and (iii) make any other determinations
(other than those specifically designated for the CEO or CFO) that it deems
necessary or desirable for the administration of the Plan.  The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan in the manner
and to the extent the Committee deems necessary or desirable.

 

4.             Any determination made by
the CEO, CFO or the Committee under the Plan will be final, conclusive and
binding on all parties concerned (including, but not limited to, Participants
and their beneficiaries or successors); provided that in the event of a
conflict between a determination made by the CEO or the CFO, as applicable, and
a determination made by the Committee, the Committee’s determination will
govern.

 

1

 

B.            PROCEDURE

 

1.             The Plan will be
administered and interpreted according to the terms set forth herein. This Plan
document is available to all Participants when they are first eligible to
participate in the Plan and will be re-issued to all Participants at the
beginning of any Fiscal Year whenever its provisions have changed.  Part-time employees of the Company are not
eligible to participate in the Plan.

 

2.             Unless otherwise determined
by the Committee, a Participant’s first year bonus under the Plan, if any, will
be prorated based on such Participant’s date of hire, to the extent applicable.
A Participant must be hired by March 31st   of a given
Fiscal Year to be eligible to participate in the Plan with respect to that
Fiscal Year.

 

3.             Unless otherwise determined
by the Committee, all Participants in the Plan must be employed on June 30th of a given Fiscal Year, the last day of the
bonus measurement period, as well as the actual payment date of the bonus to be
eligible for a bonus, if any, under the Plan.

 

4.             A Company position grade
schedule with bonus awards levels will be maintained and approved annually by
senior management of DynaVox Systems Holdings LLC, in consultation with the
Committee.  Bonus awards levels will be
expressed as a percentage of the Participant’s annual base compensation (i.e., annual base salary for exempt positions and hourly
rate times 2,080 hours for non-exempt positions) tied to an on-target award
level (i.e., 100%). Maximum award levels are up
to double that of an on-target award level (e.g., 200%). Cumulatively, all Participants eligible for
bonuses under this Plan at an on-target payout of 100% comprises the bonus
pool.

 

5.             The bonus pool is funded
based on overall Company performance compared to a performance matrix approved
annually by the Board or the Committee acting on behalf of the Board. Such
performance matrix will clearly illustrate the Board/Committee-approved
financial targets aligned with the minimum target level (i.e.,
a starting point), an on-target level (100% of the bonus pool), and a maximum
target level (up to 200% of the bonus pool). Individual performance levels will
be determined resulting in modifications ranging from 80% to 110% of the
individual bonus award with total payments under the Plan not to exceed the
bonus pool.

 

6.             Targets and payouts
(including any over-achievement payouts) are cumulative through the applicable
Fiscal Year and bonuses under the Plan, if any, are paid out upon finalization
of the audited financial statements of the Company, unless otherwise determined
by the Committee.  All payouts under the
Plan are calculated on a pro-rated basis between the “minimum” target level and
the “on-target” level as well as between the “on-target” target level and the “maximum” target level.

 

2

 

TERMINATION
AND AMENDMENT

 

The
Board reserves the right to terminate, suspend, discontinue or amend the Plan
at any time at its sole discretion.

 

STATUS OF
THE PLAN; NO EMPLOYMENT RIGHTS; NON-ASSIGNABILITY

 

The Plan is intended to
constitute an “unfunded” bonus plan. 
With respect to any payments not yet made to a Participant by the
Company, nothing contained in this Plan provides any Participant with any
rights that are greater than those of a general, unsecured creditor of the
Company.  No Participant will at any time
possess any interest whatsoever in the assets of the Company.

 

Neither the establishment of
this Plan nor any action taken hereunder or bonus granted hereunder will be
held or construed to confer on any Participant the right to a continuation of
employment by the Company for any period of time.

 

Further, no Participant will have any right to transfer, assign,
alienate or encumber any present or future right or expectation to any benefit
under this Plan, such rights hereunder being deemed non-assignable and
non-transferable except as required by law. 
Any attempt to make any such transfer, assignment, alienation or
encumbrance shall be null and void ab initio.

 

The Company’s obligations under this Plan are not assignable or
transferable except to (i) a corporation which acquires all or
substantially all of the Company’s assets or (ii) any corporation into
which the Company may be merged or consolidated.

 

WITHHOLDING

 

The obligations of the Company to make payments under the Plan will be
subject to applicable federal, state and local tax withholding and other
employment tax requirements and any payments made to a Participant hereunder
shall be reduced by the amount of any such taxes required to be withheld or
paid.

 

COMPLIANCE WITH SECTION 409A
OF THE CODE

 

The Plan is intended to
comply with Section 409A of the Code and will be interpreted in a manner
intended to comply with Section 409A of the Code.

 

GOVERNING
LAW

 

The Plan will be governed
by, and construed in accordance with, the laws of the State of Delaware,
without regard to principles of conflicts of law.

 

3

 

DEFINITIONS

 

“Board” means the Board of Directors of DynaVox Systems
Holdings LLC.

 

“CEO” means the Chief Executive Officer of DynaVox Systems
Holdings LLC.

 

“CFO” means the Chief Financial Officer of DynaVox Systems
Holdings LLC.

 

“Code” mean the Internal Revenue Code of 1986, as amended.

 

“Committee” means the Compensation Committee of the Board.

 

“Company”  means DynaVox
Systems Holdings LLC and its wholly-owned subsidiaries.

 

“Fiscal Year”  means  DynaVox Systems Holdings LLC’s fiscal year.

 

“Participant”  means  a full-time employee on the regular payroll of the Company,
unless otherwise determined by the Committee.

 

4Exhibit 10.14

 

EXECUTION COPY

 

THIRD
AMENDED AND RESTATED CREDIT AGREEMENT

 

DATED
AS OF JUNE 23, 2008

 

AMONG

 

DYNAVOX
SYSTEMS LLC,

 

GE
BUSINESS FINANCIAL SERVICES INC. (formerly known as Merrill Lynch Business
Financial Services Inc.),

as
Agent and as a Lender

 

BMO
Capital Markets Financing, Inc.,

as
Syndication Agent and as a Lender

 

AND

 

THE
ADDITIONAL LENDERS

FROM
TIME TO TIME PARTY HERETO

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Certain Defined Terms

  	
  2

  
	
  Section 1.2

  	
  Accounting Terms and Determinations

  	
  22

  
	
  Section 1.3

  	
  Other Definitional Provisions

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE II The Facilities

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  The Commitments

  	
  23

  
	
  Section 2.2

  	
  Borrowing Procedures

  	
  25

  
	
  Section 2.3

  	
  Swing Loans

  	
  26

  
	
  Section 2.4

  	
  Letters of Credit

  	
  27

  
	
  Section 2.5

  	
  Reduction and Termination of the Commitments

  	
  30

  
	
  Section 2.6

  	
  Repayment of Loans

  	
  30

  
	
  Section 2.7

  	
  Optional Prepayments

  	
  31

  
	
  Section 2.8

  	
  Mandatory Prepayments

  	
  31

  
	
  Section 2.9

  	
  Interest

  	
  32

  
	
  Section 2.10

  	
  Conversion and Continuation Options

  	
  33

  
	
  Section 2.11

  	
  Fees

  	
  34

  
	
  Section 2.12

  	
  Application of Payments

  	
  34

  
	
  Section 2.13

  	
  Payments and Computations

  	
  35

  
	
  Section 2.14

  	
  Evidence of Debt

  	
  36

  
	
  Section 2.15

  	
  Suspension of Eurodollar Rate Option

  	
  38

  
	
  Section 2.16

  	
  Breakage Costs; Increased Costs; Capital Requirements

  	
  39

  
	
  Section 2.17

  	
  Taxes

  	
  40

  
	
  Section 2.18

  	
  Substitution of Lenders

  	
  43

  
	
  Section 2.19

  	
  Effectiveness

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE III REPRESENTATION AND
  WARRANTIES

  	
  44

  
	
   

  	
   

  
	
  Section 3.1

  	
  Existence and Power

  	
  44

  
	
  Section 3.2

  	
  Organization and Governmental Authorization; No
  Contravention

  	
  44

  
	
  Section 3.3

  	
  Binding Effect

  	
  44

  
	
  Section 3.4

  	
  Capitalization

  	
  44

  
	
  Section 3.5

  	
  Financial Information

  	
  45

  
	
  Section 3.6

  	
  Litigation

  	
  45

  
	
  Section 3.7

  	
  Ownership of Property

  	
  46

  
	
  Section 3.8

  	
  No Default

  	
  46

  
	
  Section 3.9

  	
  Labor Matters

  	
  46

  
	
  Section 3.10

  	
  Regulated Entities

  	
  46

  
	
  Section 3.11

  	
  Margin Regulations

  	
  46

  
	
  Section 3.12

  	
  Compliance With Laws

  	
  46

  
	
  Section 3.13

  	
  Taxes

  	
  48

  

 

i

 

	
  Section 3.14

  	
  Compliance with ERISA

  	
  48

  
	
  Section 3.15

  	
  Brokers

  	
  49

  
	
  Section 3.16

  	
  Related Transactions

  	
  49

  
	
  Section 3.17

  	
  Employment, Equityholders and Subscription Agreements

  	
  49

  
	
  Section 3.18

  	
  Compliance with Environmental Requirements; No Hazardous
  Materials

  	
  49

  
	
  Section 3.19

  	
  Intellectual Property

  	
  50

  
	
  Section 3.20

  	
  Real Property Interests

  	
  51

  
	
  Section 3.21

  	
  Solvency

  	
  51

  
	
  Section 3.22

  	
  Full Disclosure

  	
  51

  
	
  Section 3.23

  	
  Representations and Warranties Incorporated from Other
  Operative Documents

  	
  51

  
	
  Section 3.24

  	
  Cash Management System

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV AFFIRMATIVE COVENANTS

  	
  52

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Financial Statements and Other Reports

  	
  52

  
	
  Section 4.2

  	
  Payment and Performance of Obligations

  	
  55

  
	
  Section 4.3

  	
  Conduct of Business and Maintenance of Existence

  	
  56

  
	
  Section 4.4

  	
  Maintenance of Property; Insurance

  	
  56

  
	
  Section 4.5

  	
  Compliance with Laws

  	
  57

  
	
  Section 4.6

  	
  Inspection of Property, Books and Records

  	
  57

  
	
  Section 4.7

  	
  Use of Proceeds

  	
  58

  
	
  Section 4.8

  	
  Lenders’ Meetings

  	
  58

  
	
  Section 4.9

  	
  Interest Rate Contracts

  	
  58

  
	
  Section 4.10

  	
  Hazardous Materials; Remediation

  	
  58

  
	
  Section 4.11

  	
  Intellectual Property

  	
  58

  
	
  Section 4.12

  	
  Further Assurances

  	
  59

  
	
  Section 4.13

  	
  Compliance With Health Care Laws

  	
  59

  
	
  Section 4.14

  	
  Notices to Agent

  	
  59

  
	
  Section 4.15

  	
  Participation Agreements

  	
  61

  
	
  Section 4.16

  	
  Cure of Violations

  	
  61

  
	
  Section 4.17

  	
  Cash Management System

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE V NEGATIVE COVENANTS

  	
  61

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Debt

  	
  61

  
	
  Section 5.2

  	
  Liens

  	
  62

  
	
  Section 5.3

  	
  Contingent Obligations

  	
  64

  
	
  Section 5.4

  	
  Restricted Distributions

  	
  65

  
	
  Section 5.5

  	
  Restrictive Agreements

  	
  65

  
	
  Section 5.6

  	
  Anti-Terrorism Laws

  	
  66

  
	
  Section 5.7

  	
  Consolidations, Mergers and Sales of Assets

  	
  66

  
	
  Section 5.8

  	
  Purchase of Assets, Investments

  	
  67

  
	
  Section 5.9

  	
  Transactions with Affiliates

  	
  67

  
	
  Section 5.10

  	
  Modification of Organizational Documents and/or Management
  Agreement

  	
  67

  
	
  Section 5.11

  	
  Fiscal Year

  	
  68

  

 

ii

 

	
  Section 5.12

  	
  Conduct of Business

  	
  68

  
	
  Section 5.13

  	
  Investor Fees

  	
  68

  
	
  Section 5.14

  	
  Lease Payments

  	
  68

  
	
  Section 5.15

  	
  Bank Accounts

  	
  68

  
	
  Section 5.16

  	
  Payments and Modifications of Subordinated Debt

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI FINANCIAL COVENANTS

  	
  69

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Capital Expenditures

  	
  69

  
	
  Section 6.2

  	
  Reserved

  	
  70

  
	
  Section 6.3

  	
  Fixed Charge Coverage Ratio

  	
  70

  
	
  Section 6.4

  	
  Net Senior Debt to EBITDA Ratio

  	
  70

  
	
  Section 6.5

  	
  Net Total Debt to EBITDA Ratio

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII CONDITIONS TO LOANS
  AND LETTERS OF CREDIT

  	
  71

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Conditions Precedent to Initial Loans and Letters of Credit

  	
  71

  
	
  Section 7.2

  	
  Conditions Precedent to Each Loan and Letter of Credit

  	
  73

  
	
  Section 7.3

  	
  Determinations of Initial Borrowing Conditions

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII EVENTS OF DEFAULT

  	
  74

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Events of Default

  	
  74

  
	
  Section 8.2

  	
  Remedies

  	
  76

  
	
  Section 8.3

  	
  Cash Collateral

  	
  77

  
	
  Section 8.4

  	
  Actions in Respect of Letters of Credit

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX [RESERVED]

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE X AGENT

  	
  77

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Appointment and Duties

  	
  77

  
	
  Section 10.2

  	
  Binding Effect

  	
  78

  
	
  Section 10.3

  	
  Use of Discretion

  	
  78

  
	
  Section 10.4

  	
  Delegation of Rights and Duties

  	
  79

  
	
  Section 10.5

  	
  Reliance and Liability

  	
  79

  
	
  Section 10.6

  	
  Agent Individually

  	
  80

  
	
  Section 10.7

  	
  Lender Credit Decision

  	
  80

  
	
  Section 10.8

  	
  Expenses; Indemnities

  	
  81

  
	
  Section 10.9

  	
  Resignation of Agent or L/C Issuer

  	
  81

  
	
  Section 10.10

  	
  Release of Collateral or Guarantors

  	
  82

  
	
  Section 10.11

  	
  Additional Secured Parties

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI MISCELLANEOUS

  	
  83

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Amendments, Waivers, Etc.

  	
  83

  
	
  Section 11.2

  	
  Assignments and Participations; Binding Effect

  	
  85

  
	
  Section 11.3

  	
  Costs and Expenses

  	
  87

  
	
  Section 11.4

  	
  Indemnities

  	
  88

  

 

iii

 

	
  Section 11.5

  	
  Survival

  	
  89

  
	
  Section 11.6

  	
  Limitation of Liability for Certain Damages

  	
  89

  
	
  Section 11.7

  	
  Lender-Creditor Relationship

  	
  89

  
	
  Section 11.8

  	
  Right of Setoff

  	
  89

  
	
  Section 11.9

  	
  Sharing of Payments, Etc.

  	
  90

  
	
  Section 11.10

  	
  Marshaling; Payments Set Aside

  	
  90

  
	
  Section 11.11

  	
  Notices

  	
  90

  
	
  Section 11.12

  	
  Electronic Transmissions

  	
  91

  
	
  Section 11.13

  	
  Governing Law

  	
  92

  
	
  Section 11.14

  	
  Jurisdiction

  	
  92

  
	
  Section 11.15

  	
  Waiver of Jury Trial

  	
  93

  
	
  Section 11.16

  	
  Severability

  	
  93

  
	
  Section 11.17

  	
  Execution in Counterparts

  	
  93

  
	
  Section 11.18

  	
  Entire Agreement

  	
  94

  
	
  Section 11.19

  	
  Use of Name

  	
  94

  
	
  Section 11.20

  	
  Non-Public Information; Confidentiality

  	
  94

  
	
  Section 11.21

  	
  Patriot Act Notice

  	
  95

  
	
  Section 11.22

  	
  No Novation

  	
  95

  

 

iv

 

ANNEXES AND EXHIBITS

 

	
  ANNEXES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex A

  	
  -

  	
  Commitment
  Annex

  
	
  Annex B

  	
  -

  	
  Closing
  Checklist

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Assignment

  
	
  Exhibit B

  	
  -

  	
  Compliance
  Certificate

  
	
  Exhibit C

  	
  -

  	
  Excess
  Cash Flow Certificate

  
	
  Exhibit D

  	
  -

  	
  Notice
  of Borrowing

  
	
  Exhibit E

  	
  -

  	
  Swingline
  Request

  
	
  Exhibit F

  	
  -

  	
  L/C
  Request

  
	
  Exhibit G

  	
  -

  	
  Notice
  of Conversion or Continuation

  

 

v

 

THIRD
AMENDED AND RESTATED CREDIT AGREEMENT

 

This THIRD AMENDED AND
RESTATED CREDIT AGREEMENT, dated as of June 23, 2008, is by and among
DYNAVOX SYSTEMS LLC, a Delaware limited liability company (“Borrower”),
the “Lenders” (as defined below), and GE BUSINESS FINANCIAL SERVICES INC., a
Delaware corporation formerly known as Merrill Lynch Business Financial
Services Inc. (“GE BFS”), as agent for the Lenders
and the L/C Issuers (in such capacity, and together with its successors and
permitted assigns in such capacity, the “Agent”).

 

RECITALS:

 

WHEREAS, each of the
Lenders, other than (a) TriState Capital Bank (the “Joining
Lender”), and (b) BlackRock Kelso Capital Corporation, Marathon
CLO I, Ltd. and Friedberg Milstein Private Capital Fund I (each of the foregoing
financial institutions sometimes hereinafter referred to individually as a “Exiting Lender” and collectively as the “Exiting Lenders”) are parties to a certain Second Amended
and Restated Credit Agreement dated as of June 13, 2006 (as amended, restated,
amended and restated, supplemented or otherwise modified from time to time
prior to the date hereof, the “Existing Credit Agreement”), which amended
and restated in its entirety a certain Amended and Restated Credit Agreement
dated as of May 5, 2005, which amended and restated in its entirety a
certain Credit Agreement dated as of May 13, 2004 (the “Original Credit Agreement”), pursuant to which Agent and the
respective lenders thereunder made available to Borrower certain term and
revolving credit facilities subject to and in accordance with the terms,
conditions and provisions set forth therein; and

 

WHEREAS, Borrower desires,
in each case on the Third Restatement Effective Date, to (a) issue the
Third Restatement Subordinated Notes, and (b) use the proceeds thereof,
together with a portion of the proceeds of the Loan in an aggregate amount of
not more than $3,000,000, to make the Third Restatement Effective Date
Distribution to DynaVox Systems Holdings, LLC, a Delaware limited liability
company (“Holdings”), the legal and beneficial
owner of 100% of the issued and outstanding equity securities of Borrower, in
order to permit Holdings to consummate the Third Restatement Stock Redemption;
and

 

WHEREAS, Agent, Lenders and,
solely for the limited purposes set forth in Section 2.1(a),
Exiting Lenders, desire to amend and restate in its entirety the Second Amended
and Restated Credit Agreement, without constituting a novation, on the terms
and subject to the conditions specified herein; and

 

WHEREAS, Borrower desires
that all of its Obligations be fully secured by reaffirming the continuing Lien
of Agent granted under the Financing Documents for the benefit of Agent and
Secured Parties;

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, Borrower, Lenders and Agent hereby amend and restate the
Existing Credit Agreement in its entirety, without effecting a novation of the
Obligations existing thereunder, and otherwise agree as set forth below.

 

 

ARTICLE I

DEFINITIONS

 

Section 1.1            Certain Defined Terms.  The following terms have the following
meanings (including, without limitation, in the Preamble and Recitals hereto):

 

“Accounts” means “accounts” (as defined in Article 9 of
the UCC) of Borrower, including without limitation any and all rights to
payment for the sale or lease of goods or rendition of services, whether or not
they have been earned by performance.

 

“Affected Lender” has the
meaning set forth in Section 2.18.

 

“Affiliate” means with respect to any
Person (i) any Person that directly or indirectly controls such Person, (ii) any
Person which is controlled by or is under common control with such controlling
Person and (iii) in the case of an individual, the parents, descendants,
siblings and spouse of such individual. 
As used in this definition, the term “control” of a Person means the
possession, directly or indirectly, of the power to vote ten percent (10%) or
more of any class of voting securities of such Person or to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

 

“Agreement” means this Third Amended and Restated Credit
Agreement, as the same may be amended, supplemented, restated, amended and
restated or otherwise modified from time to time.

 

“Anti-Terrorism
Laws” means any
Laws imposing restrictions, prohibitions, procedures, requirements, fines or
penalties in connection with terrorism or with money laundering, including
specifically, but without limitation, Executive Order No. 13224 (effective
September 24, 2001), the USA PATRIOT Act, the Laws comprising or
implementing the Bank Secrecy Act, and the Laws administered by OFAC.

 

“Applicable
Margin” means, with respect to Revolving Loans, Swing Loans, Term
Loan and the Unused Commitment Fee, a percentage equal to (a) during the
period commencing on the Third Restatement Effective Date and ending on the
next date of determination that is at least two full Fiscal Quarters of
Borrower after the Third Restatement Effective Date, the percentage set forth
in the applicable column opposite Level II in the table set forth in clause (b) below,
and (b) thereafter, as of each date of determination (and until the next
such date of determination), a percentage equal to the percentage set forth
below in the applicable column opposite the level corresponding to the ratio of
(x) Net Total Debt, as of the last day of the most recently ended Fiscal
Quarter to (y) EBITDA for the twelve month period ending on such last day:

 

2

 

	
   

  	
   

  	
   

  	
   

  	
  Base Rate Loans

  	
   

  	
  Eurodollar Rate

  Loans

  	
   

  	
   

  	
   

  
	
  Level

  	
   

  	
  Ratio of Net Total

  Debt to EBITDA

  	
   

  	
  Revolving 

  Loans and 

  Swing

  Loans

  	
   

  	
  Term 

  Loan

  	
   

  	
  Revolving 

  Loans

  	
   

  	
  Term 

  Loan

  	
   

  	
  Unused 

  Commitment 

  Fee

  	
   

  
	
  I

  	
   

  	
  Greater
  than or equal to 5.00 to 1.00

  	
   

  	
  3.75

  	
  %

  	
  3.75

  	
  %

  	
  4.75

  	
  %

  	
  4.75

  	
  %

  	
  0.500

  	
  %

  
	
  II

  	
   

  	
  Less
  than 5.00 to 1.00 but equal to or greater than 4.00 to 1.00

  	
   

  	
  3.50

  	
  %

  	
  3.50

  	
  %

  	
  4.50

  	
  %

  	
  4.50

  	
  %

  	
  0.500

  	
  %

  
	
  III

  	
   

  	
  Less
  than 4.00 to 1.00 but equal to or greater than 3.00 to 1.00

  	
   

  	
  3.25

  	
  %

  	
  3.25

  	
  %

  	
  4.25

  	
  %

  	
  4.25

  	
  %

  	
  0.500

  	
  %

  
	
  IV

  	
   

  	
  Less
  than 3.00 to 1.00 but equal to or greater than 2.50 to 1.00

  	
   

  	
  3.00

  	
  %

  	
  3.00

  	
  %

  	
  4.00

  	
  %

  	
  4.00

  	
  %

  	
  0.375

  	
  %

  
	
  IV

  	
   

  	
  Less
  than 2.50 to 1.00

  	
   

  	
  2.75

  	
  %

  	
  2.75

  	
  %

  	
  3.75

  	
  %

  	
  3.75

  	
  %

  	
  0.375

  	
  %

  

 

Each
date of determination for the “Applicable Margin” shall be the date that
is 3 Business Days after delivery by Borrower to Agent of a new Compliance
Certificate pursuant to Section 4.1(c) in connection with the
delivery of financial statements pursuant to Section 4.1(a) with
respect to the last month in any Fiscal Quarter of Borrower.  Notwithstanding anything to the contrary set
forth in this Agreement, (x) the Applicable Margin shall equal the
percentage set forth in the appropriate column opposite Level I in the table
above, effective immediately if Borrower shall at any time fail to timely
deliver a Compliance Certificate, the 10th Business Day
following the date on which such Compliance Certificate was due, until the date
of delivery of such Compliance Certificate and (y) if an Event of Default
has occurred and is continuing on a date or determination for the “Applicable
Margin”, no reduction in the Applicable Margin shall occur on such date.

 

“Approved
Fund” means, with respect to any Lender, any Person (other than a
natural Person) that (a) is or will be engaged in making, purchasing,
holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business and (b) is advised or
managed by (i) such Lender, (ii) any Affiliate of such Lender or (iii) any
Person (other than an individual) or any Affiliate of any Person (other than an
individual) that administers or manages such Lender.

 

“Asset Disposition” means any sale, lease, license or other
consensual disposition by any Credit Party of any asset, but excluding (i) dispositions
of Inventory in the ordinary course of business, and (ii) dispositions of
Cash Equivalents.

 

“Assignment”
means an assignment agreement entered into by a Lender, as assignor, and any
Person, as assignee, pursuant to the terms and provisions of Section 11.2
(with the consent of any party whose consent is required by Section 11.2),
accepted by Agent, in substantially the form of Exhibit A, or any
other form approved by Agent.

 

“Base Rate”
means, at any time, a rate per annum equal to the higher of (a) the rate
last quoted by The Wall Street Journal as the “base rate on corporate loans
posted by at least 75% of the nation’s largest banks” in the United States or,
if The Wall Street Journal ceases to quote such rate, the highest per annum
interest rate published by the Federal 

 

3

 

Reserve
Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest
Rates) as the “bank prime loan” rate or, if such rate is no longer quoted
therein, any similar rate quoted therein (as reasonably determined by Agent) or
any similar release by the Federal Reserve Board (as reasonably determined by
Agent) and (b) the sum of 0.5% per annum and the Federal Funds Rate.

 

“Base Rate
Loan” means any Loan that bears interest based on the Base Rate.

 

“Blocked Person” means any Person:  (i) listed in the annex to, or otherwise
listed in Section I of Executive Order No. 13224; (ii) a Person
with which any Lender is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law; (iii) a Person that commits,
threatens or conspires to commit or supports “terrorism” as defined in
Executive Order No. 13224; or (iv) a Person that is named a “specially
designated national” or “blocked person” on the most current OFAC Lists.

 

“Borrowing” means a borrowing consisting of Loans (other than
Swing Loans and Loans deemed made pursuant to Section 2.3
or 2.4) made in one Facility on the same day by the Lenders according to
their respective Commitments under such Facility.

 

“Business Day” means any day of the year that is not a
Saturday, Sunday or a day on which banks are required or authorized to close in
New York City and, when determined in connection with notices and
determinations in respect of any Eurodollar Rate or Eurodollar Rate Loan or any
funding, conversion, continuation, Interest Period or payment of any Eurodollar
Rate Loan, that is also a day on which dealings in Dollar deposits are carried
on in the London interbank market.

 

“Capital
Expenditures” has the meaning provided in the Compliance
Certificate.

 

“Capital Lease” of any Person
means any lease of any property by such Person as lessee which would, in
accordance with GAAP, be required to be accounted for as a capital lease on the
balance sheet of such Person.

 

“Cash Collateral Account” means a
deposit account or securities account in the name of Borrower and under the
sole control (as defined in the applicable UCC) of Agent and (a) in the
case of a deposit account, from which Borrower may not make withdrawals except
as permitted by Agent and (b) in the case of a securities account, with
respect to which Agent shall be the only Person authorized to give entitlement
orders with respect thereto.

 

“Cash Equivalents” means any Investment in (i) direct
obligations of the United States or any agency thereof, or obligations
guaranteed by the United States or any agency thereof, (ii) commercial
paper rated at least A-1 by Standard & Poor’s Ratings Service or P-1
by Moody’s Investors Services, Inc., (iii) time deposits with,
including certificates of deposit issued by, any office located in the United
States of any bank or trust company which is organized under the laws of the
United States or any State thereof and has capital, surplus and undivided
profits aggregating at least $500,000,000 and which issues (or the parent of
which issues) certificates of deposit or commercial paper with a rating
described in clause (ii) above, (iv) repurchase agreements with
respect to securities described in clause (i) above entered into with an
office of a bank or trust company meeting the criteria specified in clause (iii) above,
provided that, in each case that such
Investment matures within one year from the date of acquisition thereof by any 

 

4

 

Credit
Party, or (v) any money market or mutual fund which invests only in the
foregoing types of investments and the liquidity of which is satisfactory to
Agent.

 

“Closing Checklist” means Annex B to this Agreement.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Collateral” means all property, now existing or hereafter
acquired, mortgaged or pledged to, or purported to be subjected to a Lien in
favor of, Agent, for the benefit of Agent and Lenders, pursuant to the Security
Documents.

 

“Commitment”
means, with respect to any Lender, such Lender’s Revolving Loan Commitment and Term
Loan Commitment.

 

“Commitment Annex” means Annex A to this Agreement.

 

“Compliance Certificate” means a certificate, duly executed by
a Responsible Officer, appropriately completed and substantially in the form of
Exhibit B hereto.

 

“Contingent
Obligations” means, with respect to any Person, any direct or
indirect liability of such Person:  (i) with
respect to any debt, lease, dividend or other obligation of another Person if
the purpose or intent of such Person incurring such liability, or the effect
thereof, is to provide assurance to the obligee of such liability that such
liability will be paid or discharged, or that any agreement relating thereto
will be complied with, or that any holder of such liability will be protected,
in whole or in part, against loss with respect thereto; (ii) with respect
to any undrawn portion of any letter of credit issued for the account of such
Person or as to which such Person is otherwise liable for the reimbursement of
any drawing; (iii) under any Interest Rate Contract; (iv) to make
take-or-pay or similar payments if required regardless of nonperformance by any
other party or parties to an agreement; or (v) for any obligations of
another Person pursuant to any agreement to purchase, repurchase  or otherwise acquire any obligation or any
property constituting security therefor, to provide funds for the payment or
discharge of such obligation or to preserve the solvency, financial condition
or level of income of another Person. 
The amount of any Contingent Obligation shall be equal to the amount of
the obligation so guaranteed or otherwise supported or, if not a fixed and
determinable amount, the maximum amount so guaranteed or otherwise supported.

 

“Controlled Group” means all members of a controlled group of
corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with
Borrower, are treated as a single employer under Section 414 of the Code
or Section 4001 of ERISA.

 

“Credit Exposure” means any period of time during which the
Revolving Loan Commitment is outstanding or any Loan, Reimbursement Obligation
or other Obligation remains unpaid or any Letter of Credit or Support Agreement
remains outstanding; provided that
no Credit Exposure shall be deemed to exist solely due to the existence of
contingent indemnification liability, absent the assertion of a claim with
respect thereto.

 

“Credit Party” means Holdings, Borrower and each Subsidiary.

 

5

 

“Debt” of a Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,
(iii) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable arising and paid in the
ordinary course of business, (iv) all Capital Leases of such Person, (v) all
non-contingent obligations of such Person to reimburse any bank or other Person
in respect of amounts paid under a letter of credit or similar instrument, (vi) all
equity securities of such Person subject to repurchase or redemption prior to
the final maturity of the Loans otherwise than at the sole option of such
Person, (vii) all obligations secured by a Lien on any asset of such
Person, whether or not such obligation is otherwise an obligation of such
Person, (viii) “earnouts” and similar payment obligations in an aggregate
amount exceeding $2,500,000, and (ix) all Debt of others Guaranteed by
such Person, provided that all obligations of
Borrower under the Enkidu Non-Compete Agreements shall not be considered Debt
hereunder.

 

“Default” means any
condition or event which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

 

“Dollars”
and the sign “$” each mean the lawful money of the United States of
America.

 

“Domestic Subsidiary” means any Subsidiary which is organized
or formed under the laws of a jurisdiction of the United States of America or
any State or political subdivision thereof.

 

“DynaVox Canada” means DynaVox Canada Inc., a federal Canadian
corporation formed under the Canada Business Corporations Act and a wholly
owned Foreign Subsidiary of DynaVox International.

 

“DynaVox International” means DynaVox International Holdings, Inc.,
a Delaware corporation and a wholly owned Subsidiary of Borrower.

 

“DynaVox Investors” means DynaVox
Investors LLC, a Delaware limited liability company.

 

“DynaVox UK” means DynaVox Systems Limited, a company organized
under the laws of England and Wales and a wholly owned Foreign Subsidiary of
DynaVox International.

 

“EBITDA” means, for any period, the amount of EBITDA calculated
as set forth in the Compliance Certificate covering such period.

 

“ECF Percentage Table” means the following table:

 

	
  Ratio of Net Total Debt to EBITDA

  	
   

  	
  Percentage

  	
   

  
	
  Greater than or equal to 4.50 to 1.00

  	
   

  	
  75.0

  	
  %

  
	
  Less than 4.50 to 1.00, but greater than or equal
  to 3.00 to 1.00

  	
   

  	
  50.0

  	
  %

  
	
  Less than 3.00 to 1.00

  	
   

  	
  37.5

  	
  %

  

 

“E-Fax” means any
system used to receive or transmit faxes electronically.

 

6

 

“Electronic Transmission” means each
document, instruction, authorization, file, information and any other
communication transmitted, posted or otherwise made or communicated by e-mail
or E-Fax, or otherwise to or from an E-System or other equivalent service.

 

“Enkidu Non-Compete Agreements” means, collectively, (i) that
certain Non-Competition Agreement dated as of January 12, 2004 by and
between Borrower and Gregory W. Lesher, (ii) that certain Non-Competition
Agreement dated as of January 12, 2004 by and between Borrower and Bryan
J. Moulton, (iii) that certain Non-Competition Agreement dated as of January 12,
2004 by and between Borrower and Robert Greenen, and (iv) that certain
Non-Competition Agreement dated as of January 12, 2004 by and between
Borrower and Jeffery Higginbotham.

 

“Enkidu Seller Note” means that certain Non-negotiable
Subordinated Promissory Note dated as of May 13, 2004 made by Holdings
payable to Enkidu Research, Inc., a New York corporation, in the original
principal amount of $1,284,375.00, of which $1,095,304.38 is outstanding as of
the Third Restatement Effective Date.

 

“Environmental Laws” means any and all applicable federal,
state, local and foreign statutes, laws, judicial decisions, regulations,
ordinances, rules, judgments, orders, decrees, codes, plans, injunctions,
permits, concessions, grants, franchises, licenses, agreements and governmental
restrictions, whether now or hereafter in effect, relating to the protection of
the environment or the effect of the environment on human health or to
emissions, discharges or releases of pollutants, contaminants, Hazardous
Materials or wastes into the environment, including ambient air, surface water,
ground water or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, Hazardous Materials or wastes or the clean-up or
other remediation thereof.

 

“Equity Documents” means the (i) the Management Agreement,
dated as of May 13, 2004, between Holdings, Borrower, Vestar Capital
Partners and Park Avenue Equity Management L.L.C., (ii) the Unit
Subscription Agreement, dated as of May 13, 2004, among Holdings, Park
Avenue Equity Partners, L.P., New York Life Capital Partners, L.P., New York Life
Investment Management Mezzanine Partners, L.P., NYLIM Mezzanine Partners
Parallel Fund, LP, Squam Lake Investors VI, L.P., Sunapee Securities, Inc.,
Vestar Capital Partners IV, L.P., and VCD Investors LLC., (iii) the
Securityholders Agreement, dated as of May 13, 2004, among Holdings,
Vestar Capital Partners IV, L.P., VCD Investors LLC, DynaVox Investors LLC,
Park Avenue Equity Partners, L.P., and certain employees, (iv) the
Assignment and Release Agreement, dated as of May 13, 2004, among Sunrise
Medical Inc., Sunrise Medical Holdings, Inc., Borrower, Holdings, LMGH, Inc.,
a New York corporation formerly known as Enkidu Research, Inc., Gregory W.
Lesher, Bryan J. Moulton, Robert Geenen and Jeffrey Higginbotham, the four
individual shareholders of LMGH, (v) the Management Unit Subscription
Agreement, dated as of May 13, 2004, as amended, between Holdings, and
certain individuals, (vi) the Promissory Notes (Recourse &
Nonrecourse) between Holdings and certain executives, (vii) the Third
Restatement Equity Documents, and (viii) any and all documents and
agreements pursuant to which any Credit Party is formed or capitalized or which
is executed and 

 

7

 

delivered
by such Person in connection with the transactions contemplated under the
Operative Documents.

 

“ERISA” means the Employee Retirement Income Security Act of
1974.

 

“E-Signature” means the
process of attaching to or logically associating with an Electronic
Transmission an electronic symbol, encryption, digital signature or process
(including the name or an abbreviation of the name of the party transmitting
the Electronic Transmission) with the intent to sign, authenticate or accept
such Electronic Transmission.

 

“E-System” means any
electronic system, including Intralinks® and ClearPar® and any other Internet
or extranet-based site, whether such electronic system is owned, operated or
hosted by Agent, any of its Related Persons or any other Person, providing for
access to data protected by passcodes or other security system.

 

“Eurodollar
Base Rate” means, with respect to any Interest Period for any
Eurodollar Rate Loan, the offered rate for deposits in Dollars for the
applicable Interest Period appearing on the Reuters Screen LIBOR01 page as
of 11:00 a.m. (London time) on the second full Business Day next preceding
the first day of each Interest Period. 
In the event that such rate does not appear on the Reuters Screen
LIBOR01 page at such time, the “Eurodollar Base Rate” shall be
determined by reference to such other comparable publicly available service for
displaying the offered rate for deposit in Dollars in the London interbank
market as may be reasonably selected by Agent and, in the absence of
availability, such other method to determine such offered rate as may be
selected by Agent in its reasonable discretion.

 

“Eurodollar
Rate” means, with respect to any Interest Period and for any
Eurodollar Rate Loan, an interest rate per annum determined as the ratio of (a) the
Eurodollar Base Rate with respect to such Interest Period for such Eurodollar
Rate Loan to (b) the difference between the number one and the Eurodollar
Reserve Requirements with respect to such Interest Period and for such
Eurodollar Rate Loan.

 

“Eurodollar
Rate Loan” means any Loan that bears interest based on the
Eurodollar Rate.

 

“Eurodollar
Reserve Requirements” means, with respect to any Interest Period and
for any Eurodollar Rate Loan, a rate per annum equal to the aggregate, without
duplication, of the maximum rates (expressed as a decimal number) of reserve
requirements in effect 2 Business Days prior to the first day of such Interest
Period (including basic, supplemental, marginal and emergency reserves) under
any regulations of the Federal Reserve Board or other Governmental Authority
having jurisdiction with respect thereto dealing with reserve requirements
prescribed for eurocurrency funding (currently referred to as “eurocurrency
liabilities” in Regulation D of the Federal Reserve Board) maintained by a
member bank of the United States Federal Reserve System.

 

“Event of Default” has the meaning set forth in Section 8.1.

 

“Excess Cash Flow” means, for any period, the amount of Excess
Cash Flow as set forth in the Excess Cash Flow Certificate relating to such
period.

 

8

 

“Excess Cash Flow Certificate” means a certificate, duly
executed by a Responsible Officer, appropriately completed and substantially in
the form of Exhibit C hereto.

 

“Exempted Account” means a deposit account established and
maintained with a bank by Borrower or any Domestic Subsidiary having a maximum
daily cash balance not to exceed $10,000 at any given time.

 

“Existing Credit Agreement” is defined in the Recitals to this
Agreement.

 

“Exiting Lender” and “Exiting Lenders”
have the respective meanings provided in 
the Recitals to this Agreement.

 

“Facilities” means (a) the Term Loan Facility and (b) the
Revolving Loan Facility.

 

“Federal Funds Rate” means, for any period, a fluctuating
interest rate per annum equal for each day during such period to the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System arranged by federal funds brokers, as determined by
Agent in its reasonable discretion.

 

“Fee Letter” means the
letter agreement, dated as of June 4, 2008, addressed to Borrower from
Agent and accepted by Borrower, with respect to certain fees to be paid from
time to time to Agent and its Related Persons, as the same may be amended,
supplemented, restated, amended and restated, reaffirmed or otherwise modified
from time to time.

 

“Financing Documents” means,
collectively, this Agreement, any Notes, the Security Documents, the L/C
Reimbursement Agreements, the Fee Letter and any other fee letter between GE
BFS and Borrower relating to the transactions contemplated hereby, the Third
Restatement Subordination Agreement and, when executed, each other material
document contemplated herein or thereby and executed by a Loan Party and
delivered to Agent, any Lender or any L/C Issuer, together with any
modification of any term, or any waiver with respect to, any of the foregoing,
as any or all of the same may be amended, supplemented, restated, amended and
restated, reaffirmed or otherwise modified from time to time.

 

“Fiscal Quarter” means a fiscal quarter of Borrower.

 

“Fiscal Year” means a fiscal year of Borrower consisting of
fifty two (52) consecutive weeks and ending on the last Friday in June, provided that with respect to every fourth
year, the fiscal year of Borrower shall have fifty three (53) weeks ending on
the first Friday in July.

 

“Fixed Charge Coverage Ratio” has the meaning provided in the
Compliance Certificate.

 

“Foreign Subsidiary” means each Subsidiary of Borrower or a
Credit Party that is not a Domestic Subsidiary.

 

“GAAP” means generally accepted accounting principles set forth
from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting 

 

9

 

Standards
Board (or agencies with similar functions of comparable stature and authority
within the U.S. accounting profession), which are applicable to the
circumstances as of the date of determination.

 

“Governmental
Authority” means any nation, sovereign or government, any state or
other political subdivision thereof, any agency, authority or instrumentality
thereof and any entity or authority exercising executive, legislative, taxing,
judicial, regulatory or administrative functions of or pertaining to
government, including any central bank, stock exchange, regulatory body,
arbitrator, public sector entity, supra-national entity (including the European
Union and the European Central Bank) and any self-regulatory organization
(including the National Association of Insurance Commissioners).

 

“Guarantee” by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Debt or other
obligation of any other Person and, without limiting the generality of the
foregoing, any obligation, direct or indirect, contingent or otherwise, of such
Person (i) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Debt or other obligation (whether arising by virtue of
partnership arrangements, by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for the purpose of assuring
in any other manner the obligee of such Debt or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part), provided that the term Guarantee shall
not include endorsements for collection or deposit in the ordinary course of
business.  The term “Guarantee” used as a
verb has a corresponding meaning.

 

“Hazardous Materials” means (i) any
“hazardous substance” as defined in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, (ii) asbestos, (iii) polychlorinated
biphenyls, (iv) petroleum, its derivatives, by-products and other
hydrocarbons that pose a danger or threat to the health or safety of people,
property or the environment, and (v) any other toxic, radioactive, caustic
or otherwise hazardous substance regulated under Environmental Laws.

 

“Hazardous Materials
Contamination” means contamination (whether now existing or
hereafter occurring) of the improvements, buildings, facilities, personalty,
soil, groundwater, air or other elements on or of the relevant property by
Hazardous Materials, or any derivatives thereof, or on or of any other property
as a result of Hazardous Materials, or any derivatives thereof, generated on,
emanating from or disposed of in connection with the relevant property.

 

“Health Care Laws” has the meaning given such term in Section 3.12
hereof.

 

“Hedging
Agreement” means any Interest Rate Contract, foreign exchange, swap,
option or forward contract, spot, cap, floor or collar transaction, any other
derivative instrument and any other similar speculative transaction and any
other similar agreement or arrangement designed to alter the risks of any
Person arising from fluctuations in any underlying variable.

 

“Holdings” has the meaning set forth in the Recitals to this
Agreement and shall include, without limitation, any series or like designation
created or established pursuant to the §18-215 of the Delaware Limited
Liability Company Act.

 

10

 

“Holding
Company” means any Person that (i) is an Affiliate of Vestar
Capital Partners, L.P., (ii) is a direct or indirect holder of equity
interests of Holdings and (iii) owns no substantial assets other than such
equity interests.

 

“Indemnitees” has the meaning set forth in Section 11.4.

 

“Information Certificate” means that
certain Information Certificate of even date herewith executed by Borrower and
delivered to Agent.

 

“Intellectual Property” means, with
respect to any Person, all patents, trademarks, trade names, copyrights,
technology, know-how and processes, and all applications therefor, necessary
for or material to the business or operations of such Person.

 

“Interest Period” means, with respect to any
Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate
Loan is made or converted to a Eurodollar Rate Loan or, if such loan is
continued, on the last day of the immediately preceding Interest Period
therefor and, in each case, ending 1, 2, 3 or 6 (and, to the extent available
to all relevant Lenders, 9 or 12) months thereafter, as selected by Borrower
pursuant hereto; provided that (a) if any
Interest Period would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day, unless
the result of such extension would be to extend such Interest Period into the
next calendar month, in which case such Interest Period shall end on the
immediately preceding Business Day, (b) any Interest Period that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of a calendar month, (c) Borrower
may not select any Interest Period (i) in the case of Revolving Loans,
ending after the Scheduled Revolving Loan Termination Date and (ii) in the
case of the Term Loan, ending after the Term Loan Maturity Date, (d) Borrower
may not select any Interest Period in respect of Loans having an aggregate
principal amount of less than $1,000,000, (e) Borrower may not select any
Interest Period in respect of Eurodollar Rate Loans of more than one month
until the date that is the earlier to occur to (x) 30 days after the Third
Restatement Effective Date, (y) completion of the “Primary Syndication”
(as defined in the Fee Letter), and (e) there shall be outstanding at any
one time no more than 10 Interest Periods.

 

“Interest
Rate Contracts” means all interest rate swap agreements, interest
rate cap agreements, interest rate collar agreements and interest rate
insurance.

 

“Inventory” means “inventory” (as defined in Article 9 of
the UCC).

 

“Investment” means any
investment in any Person, whether by means of acquiring or holding securities,
capital contribution, loan, time deposit, advance, Guarantee or otherwise.

 

“Investors” means, Vestar Capital Partners IV, L.P. and Park
Avenue Equity Partners, L.P., and any other holders of equity interests in
Holdings on the Third Restatement Effective Date (including the respective
Affiliates of such Persons who now or hereafter acquire equity interests as
aforesaid), collectively, and “Investor”
shall mean any such Person, individually.

 

“Issue”
means, with respect to any Letter of Credit, to issue, extend the expiration
date of, renew (including by failure to object to any automatic renewal on the
last day such objection 

 

11

 

is
permitted), increase the face amount of, or reduce or eliminate any scheduled
decrease in the face amount of, such Letter of Credit, or to cause any Person
to do any of the foregoing.  The terms “Issued”
and “Issuance” have correlative meanings.

 

“Joining Lender” has the
respective meanings provided in the Recitals to this Agreement.

 

“Laws” means any and
all applicable federal, state, local and foreign statutes, laws, judicial
decisions, regulations, ordinances, rules, judgments, orders, decrees, codes,
injunctions, permits, concessions, grants, franchises, governmental agreements
and governmental restrictions, whether now or hereafter in effect.

 

“L/C Cash
Collateral Account” means any Cash Collateral Account (a) specifically
designated as such by Borrower in a notice to Agent and (b) from and after
the effectiveness of such notice, not containing any funds other than those
required under the Financing Documents to be placed therein.

 

“L/C Issuer”
means (a) GE BFS or any of its Affiliates and (b) each Person that
hereafter becomes an L/C Issuer with the approval of, and pursuant to an
agreement with and in form and substance satisfactory to, Agent and Borrower,
in each case in their capacity as L/C Issuers hereunder and together with their
successors.

 

“L/C
Obligations” means, for any Letter of Credit at any time, the sum of
(a) the L/C Reimbursement Obligations at such time for such Letter of
Credit and (b) the aggregate maximum undrawn face amount of such Letter of
Credit outstanding at such time.

 

“L/C
Reimbursement Agreement” has the meaning set forth in Section 2.4(a).

 

“L/C Reimbursement
Date” has the meaning set forth in Section 2.4(e).

 

“L/C
Reimbursement Obligation” means, for any Letter of Credit, the
obligation of Borrower to the L/C Issuer thereof, as and when matured, to pay
all amounts drawn under such Letter of Credit.

 

“L/C Request”
has the meaning set forth in Section 2.4(b).

 

“L/C Sublimit”
means $5,000,000.

 

“Lender” means, collectively, the Swingline Lender and any
other financial institution or other Person that (a) is listed on the
signature pages hereof as a “Lender” or (b) from time to time
becomes a party hereto by execution of an Assignment, in each case together
with its successors.  Solely for the
purpose of obtaining the grant of the Liens granted to Agent and guarantees
made in favor of Agent, in each case, for the benefit of the Lenders under the
Security Documents, a Person to whom any Obligations in respect of an Interest
Rate Contract are owed shall be deemed to be a Lender.  For the avoidance of doubt, any Person to
whom any Obligations in respect of an Interest Rate Contract are owed and which
does not hold any Loans or Commitments shall not be entitled to any other
rights or remedies as a “Lender” under this Agreement or any other Financing
Document.

 

12

 

“Letter of Credit” means any letter of credit Issued pursuant
to Section 2.4.

 

“Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind, or any other type
of preferential arrangement that has the practical effect of creating a
security interest, in respect of such asset. 
For the purposes of this Agreement and the other Financing Documents,
Borrower or any Subsidiary shall be deemed to own subject to a Lien any asset
which it has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, Capital Lease or other title retention
agreement relating to such asset.

 

“Loan Party” means
Holdings, Borrower and each Domestic Subsidiary of Borrower.

 

“Loans” means the Term Loan and the Revolving Loans, or any
combination of the foregoing, as the context may require.

 

“Major Casualty Proceeds” means (i) the
aggregate insurance proceeds received in connection with one or more related
events under any Property Insurance Policy or (ii) any award or other
compensation with respect to any condemnation of property (or any transfer or
disposition of property in lieu of condemnation), if the amount of such
aggregate insurance proceeds or award or other compensation exceeds $250,000.

 

“Management Agreement” means that certain Management Agreement
dated as of May 13, 2004 between Holdings, Borrower, Vestar Capital
Partners and Park Avenue Equity Management, L.L.C.

 

“Margin Stock” has the meaning assigned thereto in Regulation U
of the Federal Reserve Board.

 

“Material Adverse Effect” means, with
respect to any event, act, condition or occurrence of whatever nature
(including any adverse determination in any litigation, arbitration, or
governmental investigation or proceeding), whether singly or in conjunction
with any other event or events, act or acts, condition or conditions,
occurrence or occurrences, whether or not related, a material adverse change
in, or a material adverse effect upon, any of (i) the financial condition,
operations, business or properties of the Credit Parties, taken as a whole, (ii) the
rights and remedies of Agent or Lenders under any Financing Document, or the
ability of any Loan Party to perform any of its obligations under any Financing
Document to which it is a party, (iii) the legality, validity or
enforceability of any Financing Document, or (iv) the existence,
perfection or priority of any security interest granted in any Financing
Document or the value of any material Collateral.

 

“Multiemployer Pension Plan” means a multiemployer plan, as
defined in Section 4001(a)(3) of ERISA, to which Borrower or any
member of the Controlled Group may have any liability.

 

“Net Cash Proceeds” means, with
respect to any transaction or event, an amount equal to the cash proceeds
received by a Credit Party from or in respect of such transaction or event
(including proceeds of any non-cash proceeds of such transaction and any such
proceeds received by way of deferred payment of principal pursuant to a note or
installment receivable or 

 

13

 

purchase
price adjustment receivable or otherwise, but only as and when received), less (i) any
out-of-pocket expenses reasonably incurred or payable by such Person in
connection therewith,  (ii) any
taxes incurred or payable as a result thereof, and (iii) in the case of an
Asset Disposition, the amount of any Debt secured by a Lien on the related
asset and discharged from the proceeds of such Asset Disposition and any taxes
paid or payable by such Person in respect of such Asset Disposition.

 

“Net Senior Debt” has the
meaning provided in the Compliance Certificate.

 

“Net Total Debt” has the meaning provided in the Compliance
Certificate.

 

“Non-Funding
Lender” has the meaning set forth in Section 2.2(c).

 

“Non-U.S.
Lender Party” means each of Agent, each Lender, each L/C Issuer,
each SPV and each participant, in each case that is not a “United States Person”
as defined in Section 7701(a)(30) of the Code.

 

“Notes” means the Term
Notes and the Revolving Loan Notes, or any combination of the foregoing, as the
context may require.

 

“Notice of Borrowing” has the meaning set forth in Section 2.2.

 

“Notice of
Conversion or Continuation” has the meaning set forth in Section 2.10.

 

“Obligations” means, with respect to any Credit Party, all
amounts, obligations, liabilities, covenants and duties of every type and
description owing by such Credit Party to Agent, any Lender, any L/C Issuer,
any other Indemnitee, any participant, any SPV or any Secured Hedging
Counterparty arising out of or under any Financing Document or Secured Hedging
Agreement, whether direct or indirect (regardless of whether acquired by
assignment), absolute or contingent, due or to become due, whether liquidated
or not, now existing or hereafter arising and however acquired, and whether or
not evidenced by any instrument or for the payment of money, including, without
duplication, (a) if such Credit Party is Borrower, all Loans and L/C
Obligations, (b) all interest, whether or not accruing after the filing of
any petition in bankruptcy or after the commencement of any insolvency,
reorganization or similar proceeding, and whether or not a claim for
post-filing or post-petition interest is allowed in any such proceeding, and (c) all
other fees, expenses (including fees, charges and disbursement of counsel),
interest, commissions, charges, costs, disbursements, indemnities and
reimbursement of amounts paid and other sums chargeable to such Credit Party
under any Financing Document (including those payable to L/C Issuers as
described in Section 2.11) or any Secured Hedging Agreement.

 

“OFAC” means the U.S. Department of Treasury Office of Foreign
Assets Control.

 

“OFAC Lists” means, collectively, the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to Executive
Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list
of terrorists or other restricted Persons maintained pursuant to any of the rules and
regulations of OFAC or pursuant to any other applicable Executive Orders.

 

14

 

“Operative Documents” means the Financing Documents, the Equity
Documents, the Third Restatement Stock Redemption Documents and Third
Restatement Subordinated Note Documents.

 

“Organizational Documents” means, with respect to any Person
other than a natural person, the documents by which such Person was organized
(such as a certificate of incorporation, certificate of limited partnership or
articles of organization, and including, without limitation, any certificates
of designation for preferred stock or other forms of preferred equity) and
which relate to the internal governance of such Person (such as by-laws, a
partnership agreement or an operating, limited liability or members agreement).

 

“Original Credit Agreement” has the meaning provided in the
Recitals to this Agreement.

 

“Original Credit Agreement Effective Date” means May 13,
2004, the date on which the Original Credit Agreement was executed and
delivered by the parties thereto.

 

“Other Taxes” has the meaning set forth in Section 2.17(c).

 

“Outstanding Existing Loan
Balance” has the meaning set forth in Section 2.1(a).

 

“Outstanding Revolving
Loan B Balance” has the meaning set forth in Section 2.1(a).

 

“Outstanding Term Loan A
Balance” has the meaning set forth in Section 2.1(a).

 

“Outstanding Term Loan B
Balance” has the meaning set forth in Section 2.1(a).

 

“Outstanding Term Loan C
Balance” has the meaning set forth in Section 2.1(a).

 

“Payment Account” means the account specified in Section 2.13
into which all payments by or on behalf of Borrower to Agent under the
Financing Documents shall be made, or such other account as Agent shall from
time to time specify by notice to Borrower.

 

“PBGC” means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.

 

“Pension Plan” means any “employee benefit plan”, as such term
is defined in Section 3(3) of ERISA, (other than a Multiemployer
Pension Plan), and to which Borrower or any member of the Controlled Group may
have any liability, including any liability by reason of having been a
substantial employer within the meaning of Section 4063 of ERISA at any
time during the preceding five years, or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA.

 

“Permitted
Acquisition” means any Proposed Acquisition satisfying each of the
following conditions: (a) no Default or Event of Default then exists, (b) Agent
has received pro forma financial statements prepared in good faith based on
reasonable assumptions after giving effect to such Proposed Acquisition and
Agent is reasonably satisfied that Borrower is in compliance with the financial
covenants set forth in Article VI on a pro forma basis as of the
last 

 

15

 

day
of the last Fiscal Quarter for which financial statements have been delivered
hereunder, (c) at or prior to the closing of such Proposed Acquisition,
Agent will be granted a first priority Lien (subject to Permitted Liens) in the
assets acquired pursuant thereto that, under the Security Documents, are
required to be subject to the Liens created under any of the Security Documents
and Holdings, its Subsidiaries and the Proposed Acquisition Target shall have
executed such documents and taken such actions as may be reasonably required by
Agent in connection therewith, (d) Agent shall have received reasonable
advance notice of such Proposed Acquisition including a reasonably detailed
description thereof at least two (2) weeks prior to the consummation of
such Proposed Acquisition (or such later date as may be agreed by Agent) and on
or prior to the date of such Proposed Acquisition, Agent shall have received
copies of the acquisition agreement and related contractual obligations and
other documents (including financial information and analysis, environmental
assessments and reports, opinions, certificates and lien searches, in each
case, to the extent prepared or obtained in connection with such Proposed
Acquisition) and information reasonably requested by Agent, (e) after
giving effect to such Proposed Acquisition, the sum of (i) the amount by
which the then effective Revolving Loan Commitments exceeds the aggregate
Revolving Loan Outstandings plus (ii) the aggregate amount of cash and
Cash Equivalents of Borrower and its Subsidiaries shall not be less than
$5,000,000 and (f) such Proposed Acquisition shall be consensual, shall
have been approved by the Proposed Acquisition Target’s board of directors (or
comparable governing body) and shall be consummated substantially in accordance
with the terms of the agreements and documents related thereto, and in
compliance with all applicable Laws except to the extent the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

 

“Permitted Contest” means a contest maintained in good faith by
appropriate proceedings promptly instituted and diligently conducted and with
respect to which such reserve or other appropriate provision, if any, as shall
be required in conformity with GAAP shall have been made; provided
that compliance with the obligation that is the subject of such contest is
effectively stayed during such challenge.

 

“Permitted Liens” means Liens permitted pursuant to Section 5.2.

 

“Permitted Reinvestment” means, with respect to the
Net Cash Proceeds of any Asset Disposition or Property Loss Event, to acquire
(or make Capital Expenditures to finance the acquisition, repair, improvement
or construction of), to the extent otherwise permitted hereunder, property
useful in the business of Borrower or any of its Subsidiaries or, if such
Property Loss Event involves loss or damage to property, to repair such loss or
damage.

 

“Person” means any
natural person, corporation, limited liability company, professional
association, limited partnership, general partnership, joint stock company,
joint venture, association, company, trust, bank, trust company, land trust,
business trust or other organization, whether or not a legal entity, and any
government or agency or political subdivision thereof.

 

“Property Insurance Policy” means any
insurance policy maintained by any Credit Party covering losses with respect to
tangible real or personal property or improvements or losses from business
interruption.

 

16

 

“Property
Loss Event” means, with respect to any property, any loss of or
damage to such property or any taking of such property or condemnation thereof.

 

“Proposed Acquisition” means (a) any proposed
acquisition of all or substantially all of the assets or equity interests of
any Proposed Acquisition Target by Borrower or any Subsidiary of Borrower (or
by Holdings to the extent such assets and Stock are transferred to Borrower or
any Subsidiary of Borrower substantially contemporaneously with such acquisition)
or (b) any proposed merger of any Proposed Acquisition Target with or into
Borrower or any Subsidiary of Borrower (and, in the case of a merger with
Borrower, with Borrower being the surviving corporation).

 

“Proposed
Acquisition Target” means any Person or any brand, line of business,
assets, division, branch, operating division or other unit operation of any
Person.

 

“Pro Rata
Outstandings”, of any Lender at any time, means (a) in the case
of the Term Loan Facility, the outstanding principal amount of the Term Loan
owing to such Lender and (b) in the case of the Revolving Loan Facility,
the sum of (i) the outstanding principal amount of Revolving Loans owing
to such Lender and (ii) the amount of the participation of such Lender in
Swing Loans and in the L/C Obligations outstanding with respect to all Letters
of Credit.

 

“Pro Rata Share” means, with respect to any Lender and any
Facility or Facilities at any time, the percentage obtained by dividing (a) the
sum of the Commitments (or, if such Commitments in any such Facility are
terminated, the Pro Rata Outstandings therein) of such Lender then in effect
under such Facilities by (b) the sum of the Commitments (or, if such
Commitments in any such Facility are terminated, the Pro Rata Outstandings
therein) of all Lenders then in effect under such Facilities; provided that, if there are no Commitments and no Pro Rata
Outstandings in any of such Facilities, such Lender’s Pro Rata Share in such
Facilities shall be determined based on the Pro Rata Share in such Facilities
most recently in effect, after giving effect to any subsequent assignment and
any subsequent non-pro rata payments of any Lender pursuant to Section 2.18.

 

“Register”
has the meaning set forth in Section 2.14(b).

 

“Reinvestment
Prepayment Amount” means, with respect to any Net Cash Proceeds on the Reinvestment
Prepayment Date therefor, the amount of such Net Cash Proceeds less any amount
paid or required to be paid by any Credit Party to make Permitted Reinvestments
with such Net Cash Proceeds pursuant to a contractual obligation
entered into prior to such Reinvestment Prepayment Date with any Person that is
not an Affiliate of Borrower.

 

“Reinvestment Prepayment Date” means, with respect to any
portion of any Net Cash Proceeds of any Asset Disposition or Property Loss
Event, the earlier of (a) the 270th day after the
completion of the portion of such Asset Disposition or Property Loss Event
corresponding to such Net Cash Proceeds and (b) the date that is 5
Business Days after the date on which Borrower shall have notified Agent of
Borrower’s determination not to make Permitted Reinvestments with such Net Cash
Proceeds.

 

“Related
Person” means, with respect to any Person, each Affiliate of such
Person and each director, officer, employee, agent, trustee, representative,
attorney, accountant and each 

 

17

 

insurance,
environmental, legal, financial and other advisor (including those retained in
connection with the satisfaction or attempted satisfaction of any condition set
forth in Article III) and other consultants and agents of or to
such Person or any of its Affiliates, together with, if such Person is Agent,
each other Person or individual designated, nominated or otherwise mandated by
or helping Agent pursuant to and in accordance with Section 10.4 or
any comparable provision of any Financing Document.

 

“Related
Transactions” means, collectively, the issuance of the Third
Restatement Subordinated Notes, the consummation of the Third Restatement Equity
Investment, the consummation of the Third Restatement Stock Redemption, the
execution and delivery of all Operative Documents and the payment of all
related fees, costs and expenses.

 

“Required
Lenders” means, at any time, two or more Lenders having at such time
in excess of 50% of the sum of the aggregate Revolving Loan Commitments (or, if
such Commitments are terminated, the sum of the Pro Rata Outstandings in the
Revolving Loan Facility) and Term Loan Commitments (or, if such Commitments are
terminated, the Pro Rata Outstandings in the Term Loan Facility) then in
effect, ignoring, in such calculation, the Commitments and Pro Rata
Outstandings of any Non-Funding Lender.

 

“Required
Revolving Loan Lenders” means, at any time, two or more Lenders
having at such time in excess of 50% of the aggregate Revolving Loan
Commitments (or, if such Commitments are terminated, the sum of the Pro Rata
Outstandings in the Revolving Loan Facility) then in effect, ignoring, in such
calculation, the Commitments and Pro Rata Outstandings of any Non-Funding
Lender.

 

“Required
Term Loan Lenders” means, at any time, two or more Lenders having at
such time in excess of 50% of the aggregate Term Loan Commitments (or, if such
Commitments are terminated, the Pro Rata Outstandings in the Term Loan
Facility) then in effect, ignoring, in such calculation, the Commitments and
Pro Rata Outstandings of any Non-Funding Lender.

 

“Responsible Officer” means any of the Chief Executive Officer
or Chief Financial Officer of Borrower.

 

“Restricted Distribution” means as to any Person (i) any
dividend or other distribution on any equity interest in such Person (except
those payable solely in its equity interests of the same class) or (ii) any
payment on account of (a) the purchase, redemption, retirement,
defeasance, surrender or acquisition of any equity interests in such Person or (b) any
option, warrant or other right to acquire any equity interests in such Person.

 

“Revolving Loan” has the
meaning set forth in Section 2.1(b).

 

“Revolving Loan Commitment” means, with
respect to each Revolving Loan Lender, the commitment of such Lender to make
Revolving Loans and acquire interests in other Revolving Loan Outstandings,
which commitment is in the amount set forth opposite such Lender’s name on Annex
A under the caption “Revolving Loan Commitment”, as amended to reflect
Assignments and as such amount may be reduced pursuant to this Agreement.  The aggregate amount of the Revolving Loan
Commitments on the Third Restatement Effective Date equals $10,000,000.

 

18

 

“Revolving Loan Facility” means the
Revolving Loan Commitments and the provisions herein related to the Revolving
Loans, Swing Loans and Letters of Credit.

 

“Revolving Loan Lender” means each Lender
that has a Revolving Loan Commitment, holds a Revolving Loan or participates in
any Swing Loan or Letter of Credit.

 

“Revolving Loan
Outstandings” means, at any time, the sum of, in each case to the
extent outstanding at such time, (a) the aggregate principal amount of the
Revolving Loans and Swing Loans and (b) the L/C Obligations for all
Letters of Credit.

 

“Revolving Loan
Termination Date” shall mean the earliest of (a) the Scheduled
Revolving Loan Termination Date, (b) the date of termination of the
Revolving Loan Commitments pursuant to Section 2.5 or 9.2
and (c) the date on which the Obligations become due and payable pursuant
to Section 9.2.

 

“Scheduled
Maturity Date” means the later of the Scheduled Revolving Loan
Termination Date and the Term Loan Maturity Date.

 

“Scheduled
Revolving Loan Termination Date” means the 5th anniversary of the Third Restatement Effective
Date.

 

“Secured
Hedging Agreement” means any Hedging Agreement that (a) has
been entered into with a Secured Hedging Counterparty, (b) in the case of
a Hedging Agreement not entered into with or provided or arranged by Agent or
an Affiliate of Agent, is expressly identified as being a “Secured Hedging
Agreement” hereunder in a joint notice from such Credit Party and such Person
delivered to Agent reasonably promptly after the execution of such Hedging
Agreement and (c) meets the requirements of Section 5.1(i).

 

“Secured
Hedging Counterparty” means (a) a Person who has entered into a
Hedging Agreement with a Credit Party if such Hedging Agreement was provided or
arranged by Agent or an Affiliate of Agent, and any assignee of such Person or (b) a
Lender or an Affiliate of a Lender who has entered into a Hedging Agreement
with a Credit Party (or a Person who was a Lender or an Affiliate of a Lender
at the time of execution and delivery of the Hedging Agreement).

 

“Secured Parties” means the Lenders,
the L/C Issuers, Agent, any Secured Hedging Counterparty, each other Indemnitee
and any other holder of any Obligation of any Credit Party.

 

“Security Documents” means any agreement, document or
instrument executed on or prior to the Third Restatement Effective Date, or at
any time thereafter, pursuant to which one or more Credit Parties or any other
Person either (i) Guarantees payment or performance of all or any portion
of the Obligations and/or (ii) provides, as security for all or any
portion of the Obligations, a Lien on any of its assets in favor of Agent for
its own benefit and the benefit of the Secured Parties, as any or all of the
same may be amended, supplemented, restated or otherwise modified from time to
time.

 

“SPV” means any special purpose funding vehicle identified as
such in a writing by any Lender to Agent.

 

19

 

“Subsidiary” means, with
respect to any Person, any corporation, limited liability company, limited
partnership or other entity of which securities or other ownership interests
having ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions are at the time directly or
indirectly owned by such Person.  Unless
otherwise specified, the term Subsidiary shall refer to a Subsidiary of
Borrower.

 

“Subsidiary Guarantor” means any
Domestic Subsidiary of Borrower.

 

“Substitute Lender”
has the meaning set forth in Section 2.18(a).

 

“Swingline
Commitment” means $2,000,000.

 

“Swingline
Lender” means, each in its capacity as Swingline Lender hereunder,
GE BFS or, upon the resignation of GE BFS as Agent hereunder, any Lender (or
Affiliate or Approved Fund of any Lender) that agrees, with the approval of
Agent (or, if there is no such successor Agent, the Required Lenders) and
Borrower, to act as the Swingline Lender hereunder.

 

“Swingline
Request” has the meaning set forth in Section 2.3(b).

 

“Swing Loan”
has the meaning set forth in Section 2.3(a).

 

“Taxes” has the meaning set forth in Section 2.17(a).

 

“Term Loan”
has the meaning set forth in Section 2.1(c).

 

“Term Loan
Commitment” means, with respect to each Term Loan Lender, the commitment
of such Lender on the Third Restatement Effective Date, after giving effect to
the respective prepayments, assignments and assumptions contemplated by Section 2.1(a),
to convert the aggregate then outstanding principal balance of its Pro Rata
Share of the Outstanding Existing Loan Balance into a portion of the Term Loan
deemed made hereunder, without novation, such that, on the Third Restatement
Effective Date, after giving effect to such conversion, the outstanding
principal balance of such Term Loan Lender’s Pro Rata Share of the Term Loan
shall be equal to the amount set forth opposite such Lender’s name on Annex
A under the caption “Term Loan Commitment”, as amended to reflect
Assignments and as such amount may be reduced pursuant to this Agreement.  On the Third Restatement Effective Date,
after giving effect to the respective assignments and assumptions contemplated
by Section 2.1(a), the aggregate amount of the Term Loan
Commitments shall equal $52,000,000.

 

“Term Loan
Facility” means the Term Loan Commitments and the provisions herein
related to the Term Loan.

 

“Term Loan
Lender” means each Lender that has a Term Loan Commitment or that
holds a portion of the Term Loan.

 

“Term Loan
Maturity Date” means the 6th anniversary
of the Third Restatement Effective Date.

 

“Third Restatement
Effective Date” means June 23, 2008.

 

20

 

“Third Restatement
Effective Date Distribution” means a distribution by
Borrower to Holdings on the Third Restatement Effective Date in an amount not
exceeding $34,200,000, the proceeds of which will be used substantially
contemporaneously by Holdings to consummate the Third Restatement Stock
Redemption.

 

“Third Restatement Equity
Investment” means a contribution to the equity of Holdings of an
aggregate amount not less than $1,000,000  made in
immediately available Dollars on the Third Restatement Effective Date by the
Third Restatement Equity Investors pursuant to the Third Restatement Equity
Documents, which amount will be contributed by Holdings substantially
contemporaneously with Holdings’ receipt thereof to the equity of Borrower.

 

“Third Restatement Equity
Documents” means, collectively, the Amended and Restated
Limited Liability Company Agreement of Holdings, among the Holdings members,
including BKC DVSH Blocker, Inc., dated as of January 22, 2008 (and
the Waiver thereunder dated on or about the Third Restatement Effective Date);
the Unit Purchase Agreement, between Holdings and BKC DVSH Blocker, Inc.,
dated as of the Third Restatement Effective Date; the Securityholders
Agreement, among Holdings and the other parties thereto, including BKC DVSH
Blocker, Inc., dated as of May 13, 2004 (and the Waiver thereunder
dated as of the Third Restatement Effective Date); the Side Letter, among
Holdings, Vestar Capital Partners IV, L.P., and BlackRock Kelso Capital
Corporation, dated as of the Third Restatement Effective Date, and all other
material agreements, documents and instruments related to any of the foregoing,
in each case as the same may be amended, supplemented, restated, amended and
restated or otherwise modified from time to time, to the extent permitted
hereunder.

 

“Third Restatement Equity
Investors” means BlackRock Kelso Capital Corporation or an
Affiliate thereof.

 

“Third Restatement Stock
Redemption” means (i) the Third Restatement Effective Date
Distribution, and (ii) the use by Holdings of the proceeds thereof to
redeem all of the issued and outstanding Class A Common Units of Holdings
held of record by DynaVox Investors on the Third Restatement Effective Date
pursuant to the Third Restatement Stock Redemption Documents.

 

“Third Restatement Stock
Redemption Documents” means, collectively, the Purchase Agreement
dated as of the Third Restatement Effective Date between Holdings and DynaVox
Investors LLC, and all other material agreements, documents and instruments
related to any of the foregoing, in each case as the same may be amended,
supplemented, restated, amended and restated or otherwise modified from time to
time, to the extent permitted hereunder.

 

“Third Restatement
Subordinated Debt” means the Debt evidenced by the Third Restatement
Subordinated Notes.

 

“Third Restatement
Subordinated Lenders” means BlackRock Kelso Capital Corporation
and the other Persons from time to time parties to the Third Restatement
Subordinated Note Purchase Agreement as “Purchasers”.

 

21

 

“Third Restatement
Subordinated Note Documents” means, collectively, the
Third Restatement Subordinated Notes, the Third Restatement Subordinated Note
Purchase Agreement and all other material agreements, documents and instruments
related to any of the foregoing, in each case as the same may be amended,
supplemented, restated, amended and restated or otherwise modified from time to
time, to the extent permitted pursuant to the Third Restatement Subordination
Agreement.

 

“Third Restatement
Subordinated Note Purchase Agreement” means the Senior
Subordinated Note Purchase Agreement, dated as of the Third Restatement
Effective Date, among Borrower and the Third Restatement Subordinated Lenders,
as the same may be amended, supplemented, restated, amended and restated or
otherwise modified from time to time, to the extent permitted pursuant to the
Third Restatement Subordination Agreement.

 

“Third Restatement
Subordinated Notes” means those certain Senior Subordinated Notes in
the aggregate original principal amount of $31,000,000,
in each case dated as of the Third Restatement Effective Date, issued by
Borrower in Dollars on the Third Restatement Effective Date to the Third
Restatement Subordinated Lenders pursuant to the Third Restatement Note
Purchase Agreement.

 

“Third Restatement
Subordination Agreement” means the Subordination Agreement dated as
of the Third Restatement Effective Date, among Agent, Borrower, Holdings and
the Third Restatement Subordinated Lenders, as the same may be amended,
supplemented, restated, amended and restated or otherwise modified from time to
time in accordance with the terms and provisions thereof.

 

“UCC” means the Uniform Commercial Code of the State of New
York or of any other state the laws of which are required to be applied in
connection with the perfection of security interests in any Collateral.

 

“United
States” means the United States of America.

 

“Unused
Commitment Fee” has the meaning set forth in Section 2.11(a).

 

“U.S. Lender Party” means each of Agent,
each Lender, each L/C Issuer, each SPV and each participant,
in each case that is a Domestic Person.

 

Section 1.2             Accounting Terms and Determinations.  Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all accounting
determinations hereunder (including without limitation determinations made
pursuant to the exhibits hereto) shall be made, and all financial statements
required to be delivered hereunder shall be prepared on a consolidated basis in
accordance with GAAP applied on a basis consistent (except for changes
concurred with by Borrower’s independent public accountants) with the most recent
audited consolidated financial statements of Holdings and its Subsidiaries
delivered to Agent and each of the Lenders; provided
that if (a) Borrower shall object to determining compliance with the
provisions of this Agreement on such basis by written notice delivered to Agent
and the Lenders at the time of delivery of required financial statements due to
any change in GAAP or the rules promulgated with respect thereto or (b) Agent
or the Required Lenders shall so object in writing by written notice delivered
to Borrower within sixty (60) days after delivery of such 

 

22

 

financial
statements, then such calculations shall be made on a basis consistent with the
most recent financial statements delivered by Borrower to the Lenders as to
which no such objection shall have been made until such time as such an
amendment shall have been executed and delivered by Borrower, Agent and the
Required Lenders so as to reflect equitably such accounting changes with the desired
result that the criteria for evaluating Borrower’s financial condition shall
have the same substantial function and effect after such accounting changes as
if such accounting changes had not been made. 
All amounts used for purposes of financial calculations required to be
made herein shall be without duplication.

 

Section 1.3             Other Definitional Provisions.  References in this Agreement to “Articles”, “Sections”,
“Annexes” or “Exhibits” shall be to Articles, Sections, Annexes or Exhibits of
or to this Agreement unless otherwise specifically provided.  Any term defined herein may be used in the
singular or plural.  “Include”, “includes”
and “including” shall be deemed to be followed by “without limitation”.  Except as otherwise specified herein, references
to any Person include the successors and assigns of such Person.  References “from” or “through” any date mean,
unless otherwise specified, “from and including” or “through and including”,
respectively.  References to any statute
or act shall include all related current regulations and all amendments and any
successor statutes, acts and regulations.

 

ARTICLE II

The Facilities

 

Section 2.1             The Commitments.

 

(a)           Outstanding Existing Loan Balance;
Assignment and Assumption of Outstanding Existing Loan Balance. Borrower
hereby acknowledges and agrees that, as of the date hereof, immediately prior
to the effectiveness of this Agreement, (i) the outstanding principal
amount of the “Term Loan A” (as defined in the Existing Credit Agreement) is
$17,563,729.75 (the “Outstanding Term Loan A
Balance”), (ii) the outstanding principal amount of the “Term
Loan B” (as defined in the Existing Credit Agreement) is $27,443,604.27 (the “Outstanding Term Loan B Balance”), (iii) the
outstanding principal amount of the “Term Loan C” (as defined in the Existing
Credit Agreement) is $7,500,000 (the “Outstanding
Term Loan C Balance”),  and
(iv) the aggregate outstanding principal amount of the “Revolving Loans”
(as defined in the Existing Credit Agreement) is $0 (the “Outstanding Revolving Loan Balance”; the
sum of the Outstanding Term Loan A Balance, the Outstanding Term Loan B
Balance, the Outstanding Term Loan C Balance and the Outstanding Revolving Loan
Balance is herein referred to as the “Outstanding
Existing Loan Balance”). Borrower hereby represents, warrants,
covenants, confirms and reaffirms that it, as of the Third Restatement
Effective Date, has no defense, set off, claim or counterclaim against Agent or
any Lender with respect to its obligations in respect of such Term Loan A, Term
Loan B, Term Loan C and Revolving Loans, or all or any portion of the
Outstanding Existing Loan Balance. 
Effective as of the Third Restatement Effective Date, immediately prior
to the funding of the initial Loans under this Agreement, each Lender and each
Exiting Lender hereby agrees that its Pro Rata Share of the respective
Facilities shall be as set forth on Annex A.  To the extent necessary to give effect to the
provisions of the preceding sentence, effective as of the Third Restatement Effective
Date, immediately prior to the funding of the initial Loans under this
Agreement, (i) each Lender hereby sells and assigns to each other Lender
(including the Joining Lender), and (ii) each 

 

23

 

Exiting
Lender hereby sells and assigns to each Lender (including the Joining Lender),
in each case without recourse, representation or warranty of any kind (except
that each transferor Lender and Exiting Lender hereby represents and warrants
to each other Lender or Lender, as the case may be, that such Person is the
legal and beneficial owner of and has good and marketable title to, and is
hereby assigning, selling, transferring, delivering and conveying to such other
Lender legal and beneficial ownership of and good and marketable title to, the
interest so assigned by such Person, free and clear of any Liens of any kind
thereon), and each Lender hereby purchases and assumes from such other Lender
or Exiting Lender, as the case may be, a percentage interest in the respective
Commitments and Loans under and as defined in the Existing Credit Agreement in
amounts sufficient to give effect to the Pro Rata Shares set forth herein.  To the extent the Outstanding Existing Loan
Balance exceeds the Term Loan Commitments, such excess shall be deemed to have
been voluntarily prepaid, according to the pro rata share of the Outstanding
Existing Loan Balance of the lenders under the Existing Credit Agreement, by
Borrower with the proceeds of Revolving Loans in an aggregate principal amount
equal to such excess.  The Lenders hereby
agree to effect such inter-Lender transfers to give effect to the respective
Pro Rata Shares set forth on Annex A  (it being understood and agreed that each
Exiting Lender is hereby assigning all of its interests with respect to its
respective Commitments and Loans under and as defined in the Existing Credit
Agreement and, upon effectiveness of such assignment in accordance with the
terms hereof, such Exiting Lender shall have no further obligations, and shall
no longer be deemed to be a “Lender” under this Agreement or any of the other
Loan Documents.  Interest accrued on the
Loans transferred as contemplated by this Section 2.1(a), and fees
accrued in respect of the Commitments transferred as contemplated by this Section 2.1(a),
shall accrue in each case to the transferor Lender or Exiting Lender, as the
case may be, through the date such transfer is actually made by payment by or
for the account of the transferee Lender or Exiting Lender, as the case  may be, for such Loans transferred and such
interest and fees shall accrue to the transferee Lender thereafter.  Each Lender who is a lender under the
Existing Credit Agreement and each Exiting Lender hereby agree that no amount
shall be due and owing under Section 2.3(e)(iv) of the Existing
Credit Agreement as a result of the prepayments, assignments and assumptions
set forth in this Section 2.1(a).

 

(b)           Revolving Loan Commitments.  On the terms and subject to the conditions
contained in this Agreement, each Revolving Loan Lender severally, but not
jointly, agrees to make loans in Dollars (each a “Revolving Loan”) to Borrower from time to time on any Business
Day during the period from the Third Restatement Effective Date until the
Revolving Loan Termination Date in an aggregate principal amount at any time
outstanding for all such loans by such Lender not to exceed such Lender’s
Revolving Loan Commitment; provided, that
at no time shall any Revolving Loan Lender be obligated to make a Revolving
Loan in excess of such Lender’s Pro Rata Share of the amount by which the then
effective Revolving Loan Commitments exceeds the aggregate Revolving Loan
Outstandings at such time.  Within the
limits set forth in the first sentence of this clause (a), amounts of
Revolving Loans repaid may be reborrowed under this Section 2.1.

 

(c)           Term Loan Commitments.  On the Third Restatement Effective Date,
after giving effect to the respective assignments and assumptions contemplated
by Section 2.1(a), each Term Loan Lender agrees, severally and not
jointly, to convert the aggregate then outstanding principal balance of its Pro
Rata Share of the Outstanding Existing Loan Balance into a portion of the Term
Loan deemed made hereunder, without novation (the Outstanding Existing Loan Balance

 

24

 

so
converted being herein referred to as the “Term
Loan”), such that, on the Third Restatement Effective Date, after
giving effect to the conversion contemplated by the foregoing and the deemed voluntary
prepayments contemplated by Section 2.1(a), outstanding principal
balance of the Term Loan shall be equal to $52,000,000, provided
that, each Term Loan Lender shall only be required to fund a portion of the
Term Loan such that, after giving effect thereto, such Tem Loan Lender’s Pro
Rata Share of the outstanding principal balance of the Term Loan is equal to
such Term Loan Lender’s Term Loan Commitment. No Term Loan Lender shall have
any obligation to fund any portion of the Term Loan required to be funded by
any other Term Loan Lender, but not so funded. 
Amounts of the Term Loan repaid may not be reborrowed.

 

Section 2.2             Borrowing Procedures.  (a)  Notice From Borrower.  Each Borrowing shall be made on notice given
by Borrower to Agent not later than 11:00 a.m. New York Time on (i) the
same Business Day as the date of the proposed Borrowing, in the case of a
Borrowing of Base Rate Loans and (ii) the third Business Day prior to the
date of the proposed Borrowing, in the case of a Borrowing of Eurodollar Rate
Loans.  Notwithstanding the foregoing,
Borrowings made on the Third Restatement Effective Date may be made on notice
given by Borrower to Agent on the Third Restatement Effective Date.  Each such notice may be made in a writing
substantially in the form of Exhibit D (a “Notice of
Borrowing”) duly completed or by telephone if confirmed promptly,
but in any event within one Business Day and prior to such Borrowing, with such
a Notice of Borrowing.  Loans shall be
made as Base Rate Loans unless, outside of a suspension period pursuant to Section 2.15,
the Notice of Borrowing specifies that all or a portion thereof shall be
Eurodollar Rate Loans.  Each Borrowing
(other than Borrowings made on the Third Restatement Effective Date) shall be
in an aggregate amount that is an integral multiple of $100,000.

 

(b)           Notice to Each Lender.  Agent shall give to each Lender prompt notice
of Agent’s receipt of a Notice of Borrowing and, if Eurodollar Rate Loans are
properly requested in such Notice of Borrowing, prompt notice of the applicable
interest rate.  Each Lender shall, before
11:00 a.m. New York Time on the date of the proposed Borrowing, make
available to Agent at its address referred to in Section 11.11,
such Lender’s Pro Rata Share of such proposed Borrowing.  Upon fulfillment or due waiver (i) on
the Third Restatement Effective Date, of the applicable conditions set forth in
Section 7.1  and (ii) on
the Third Restatement Effective Date and any time thereafter, of the applicable
conditions set forth in  Section 7.2,
Agent shall make such funds available to Borrower.

 

(c)           Non-Funding Lenders.  Unless Agent shall have received notice from
any Lender prior to the date such Lender is required to make any payment
hereunder with respect to any Loan or any participation in any Swing Loan or
Letter of Credit that such Lender will not make such payment (or any portion
thereof) available to Agent, Agent may assume that such Lender has made such
payment available to Agent on the date such payment is required to be made in
accordance with this Article II and Agent may, in reliance upon
such assumption, make available to Borrower on such date a corresponding
amount.  Any Lender that shall not have
made available to Agent any portion of any payment described above (any such Lender,
a “Non-Funding Lender”) agrees to
pay such amount to Agent on demand together with interest thereon, for each day
from the date such amount is made available to Borrower until the date such
amount is repaid to Agent, at the Federal Funds Rate for the first Business Day
and thereafter (i) in the case of a payment in respect of a Loan, at the
interest rate applicable at the 

 

25

 

time
to such Loan and (ii) otherwise, at the interest rate applicable to Base
Rate Loans under the Revolving Loan Facility. 
Such repayment shall then constitute the funding of the corresponding
Loan (including any Loan deemed to have been made hereunder with such payment)
or participation.  If such Non-Funding
Lender’s share of such Borrowing is not made available to Agent by such
Non-Funding Lender within three (3) Business Days after the date of the
applicable Borrowing, Borrower agrees to repay to Agent on demand such amount
(until repaid by such Lender) with interest thereon for each day from the date
such amount is made available to Borrower until the date such amount is repaid
to Agent, at the interest rate applicable to the Obligation that would have
been created when Agent made available such amount to Borrower had such Lender
made a corresponding payment available; provided that such payment shall not
relieve such Lender of any obligation it may have to Borrower, the Swingline
Lender or any L/C Issuer.  The existence
of any Non-Funding Lender shall not relieve any other Lender of its obligations
under any Financing Document, but no other Lender shall be responsible for the
failure of any Non-Funding Lender to make any payment required under any
Financing Document.

 

Section 2.3             Swing Loans.  (a)  Availability.  On the terms and subject to the conditions
contained in this Agreement, the Swingline Lender may, in its sole discretion,
make loans in Dollars (each a “Swing Loan”)
available to Borrower under the Revolving Loan Facility from time to time on
any Business Day during the period from the Third Restatement Effective Date
until the Revolving Loan Termination Date in an aggregate principal amount at
any time outstanding not to exceed its Swingline Commitment; provided that the Swingline Lender may not make any Swing
Loan (x) to the extent that after giving effect to such Swing Loan, the
aggregate Revolving Loan Outstandings would exceed the Revolving Loan
Commitments and (y) in the period commencing on the first Business Day
after it receives notice from Agent or the Required Revolving Loan Lenders that
one or more of the conditions precedent contained in Section 7.2
are not satisfied and ending when such conditions are satisfied or duly
waived.  In connection with the making of
any Swing Loan, the Swingline Lender may but shall not be required to determine
that, or take notice whether, the conditions precedent set forth in Section 7.2
have been satisfied or waived.  Each
Swing Loan shall be a Base Rate Loan and must be repaid in full on the earlier
of (i) the funding date of any Borrowing of Revolving Loans and (ii) the
Revolving Loan Termination Date.  Within
the limits set forth in the first sentence of this clause (a), amounts
of Swing Loans repaid may be reborrowed under this clause (a).

 

(b)           Borrowing Procedures.  In order to request a Swing Loan, Borrower
shall give to Agent a notice to be received not later than 1:00 p.m. New
York Time on the day of the proposed borrowing, which may be made in a writing
substantially in the form of Exhibit E duly completed (a “Swingline Request”) or by telephone if
confirmed promptly but, in any event, prior to such borrowing, with such a
Swingline Request.  In addition, if any
Notice of Borrowing requests a Borrowing of Base Rate Loans, the Swing Line
Lender may, notwithstanding anything else to the contrary in Section 2.2,
make a Swing Loan available to Borrower in an aggregate amount not to exceed
such proposed Borrowing, and the aggregate amount of the corresponding proposed
Borrowing shall be reduced accordingly by the principal amount of such Swing
Loan.  Agent shall promptly notify the
Swingline Lender of the details of the requested Swing Loan.  Upon receipt of such notice and subject to
the terms of this Agreement, the Swingline Lender may make a Swing Loan
available to Borrower by making the proceeds thereof available to 

 

26

 

Agent
and, in turn, Agent shall make such proceeds available to Borrower on the date
set forth in the relevant Swingline Request.

 

(c)           Refinancing Swing Loans.  The Swingline Lender may at any time forward
a demand to Agent (which Agent shall, upon receipt, forward to each Revolving
Loan Lender) that each Revolving Loan Lender pay to Agent, for the account of
the Swingline Lender, such Revolving Loan Lender’s Pro Rata Share of all or a
portion of the outstanding Swing Loans. 
Each Revolving Loan Lender shall pay such Pro Rata Share to Agent for
the account of the Swingline Lender. 
Upon receipt by Agent of such payment (other than during the
continuation of any Event of Default under Section 8.1(f) or (g)),
such Revolving Loan Lender shall be deemed to have made a Revolving Loan to
Borrower, which, upon receipt of such payment by the Swingline Lender from
Agent, Borrower shall be deemed to have used in whole to refinance such Swing
Loan.  In addition, regardless of whether
any such demand is made, upon the occurrence of any Event of Default under Section 8.1(f) or
(g), each Revolving Loan Lender shall be deemed to have acquired, without
recourse or warranty, an undivided interest and participation in each Swing
Loan in an amount equal to such Lender’s Pro Rata Share of such Swing
Loan.  If any payment made by any
Revolving Loan Lender as a result of any such demand is not deemed a Revolving
Loan, such payment shall be deemed a funding by such Lender of such
participation.  Such participation shall
not be otherwise required to be funded. 
Upon receipt by the Swingline Lender of any payment from any Revolving
Loan Lender pursuant to this clause (c) with respect to any portion
of any Swing Loan, the Swingline Lender shall promptly pay over to such
Revolving Loan Lender all payments of principal (to the extent received after
such payment by such Lender) and interest (to the extent accrued with respect
to periods after such payment) received by the Swingline Lender with respect to
such portion.

 

(d)           Obligation to Fund Absolute.  Each Revolving Loan Lender’s obligations
pursuant to clause (c) above shall be absolute, unconditional and
irrevocable and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever, including (A) the
existence of any setoff, claim, abatement, recoupment, defense or other right
that such Lender, any Affiliate thereof or any other Person may have against
the Swing Loan Lender, any other Secured Party or any other Person, (B) the
failure of any condition precedent set forth in Section 7.2 to be
satisfied or the failure of Borrower to deliver any notice set forth in Section 2.2(a) (each
of which requirements the Revolving Loan Lenders hereby irrevocably waive) and (C) any
adverse change in the condition (financial or otherwise) of any Credit Party.

 

Section 2.4             Letters of Credit.  (a)  Commitment and Conditions.  On the terms and subject to the conditions
contained herein, each L/C Issuer agrees to Issue, at the request of Borrower,
in accordance with such L/C Issuer’s usual and customary business practices,
and for the account of Borrower (or, as long as Borrower remains responsible
for the payment in full of all amounts drawn thereunder and related fees, costs
and expenses, for the account of any Loan Party), Letters of Credit
(denominated in Dollars) from time to time on any Business Day during the
period from the Third Restatement Effective Date through the earlier of the
Revolving Loan Termination Date and 30 days prior to the Scheduled Revolving
Loan Termination Date; provided that
such L/C Issuer shall not be under any obligation to Issue any Letter of Credit
upon the occurrence of any of the following, after giving effect to such
Issuance:

 

27

 

(i)            (A) the
aggregate Revolving Loan Outstandings would exceed the aggregate Revolving Loan
Commitments or (B) the L/C Obligations for all Letters of Credit would
exceed the L/C Sublimit;

 

(ii)           the
expiration date of such Letter of Credit (A) is not a Business Day, (B) is
more than one year after the date of issuance thereof or (C) is later than
30 days prior to the Scheduled Revolving Loan Termination Date; provided that any Letter of Credit with a term not exceeding
one year may provide for its renewal for additional periods not exceeding one
year as long as (x) each of Borrower and such L/C Issuer have the option
to prevent such renewal before the expiration of such term or any such period
and (y) neither such L/C Issuer nor Borrower shall permit any such renewal
to extend such expiration date beyond the date set forth in clause (C) above;
or

 

(iii)          (A) any
fee due to such L/C Issuer in connection with, and on or prior to, such
Issuance has not been paid, (B) such Letter of Credit is requested to be
Issued in a form that is not acceptable to such L/C Issuer or (C) such L/C
Issuer shall not have received, each in form and substance reasonably
acceptable to it and duly executed by Borrower (and, if such Letter of Credit
is issued for the account of any other Loan Party, such Loan Party), the
documents that such L/C Issuer generally uses in the ordinary course of its
business for the Issuance of letters of credit of the type of such Letter of
Credit (collectively, the “L/C Reimbursement
Agreement”).

 

For
each such Issuance, the applicable L/C Issuer may, but shall not be required
to, determine that, or take notice whether, the conditions precedent set forth
in Section 7.2 have been satisfied or waived in connection with the
Issuance of any Letter of Credit; provided that
no Letter of Credit shall be Issued during the period starting on the first
Business Day after the receipt by such L/C Issuer of notice from Agent or the
Required Revolving Loan Lenders that any condition precedent contained in Section 7.2
is not satisfied and ending on the date all such conditions are satisfied or
duly waived.

 

(b)           Notice of Issuance.  Borrower shall give the relevant L/C Issuer
and Agent a notice of any requested Issuance of any Letter of Credit, which
shall be effective only if received by such L/C Issuer and Agent not later than
11:00 a.m. New York Time on the second Business Day prior to the date of
such requested Issuance.  Such notice may
be made in a writing substantially the form of Exhibit F duly
completed or in a writing in any other form acceptable to such L/C Issuer (an “L/C Request”) or by telephone if confirmed
promptly, but in any event within one Business Day and prior to such Issuance,
with such an L/C Request.

 

(c)           Reporting Obligations of L/C
Issuers.  Each L/C Issuer agrees to
provide Agent (which, after receipt, Agent shall provide to each Revolving Loan
Lender), in form and substance satisfactory to Agent, each of the following on
the following dates:  (i) on or
prior to (A) any Issuance of any Letter of Credit by such L/C Issuer, (B) any
drawing under any such Letter of Credit or (C) any payment (or failure to
pay when due) by Borrower of any related L/C Reimbursement Obligation, notice
thereof, which shall contain a reasonably detailed description of such Issuance,
drawing or payment, (ii) upon the request of Agent (or any Revolving Loan
Lender through Agent), copies of any Letter of Credit Issued by such L/C Issuer
and any related L/C Reimbursement Agreement and such other documents and
information as may reasonably be 

 

28

 

requested
by Agent and (iii) on the first Business Day of each calendar week, a
schedule of the Letters of Credit Issued by such L/C Issuer, in form and
substance reasonably satisfactory to Agent, setting forth the L/C Obligations
for such Letters of Credit outstanding on the last Business Day of the previous
calendar week.

 

(d)           Acquisition of Participations.  Upon any Issuance of a Letter of Credit in
accordance with the terms of this Agreement resulting in any increase in the
L/C Obligations, each Revolving Loan Lender shall be deemed to have acquired,
without recourse or warranty, an undivided interest and participation in such
Letter of Credit and the related L/C Obligations in an amount equal to such
Lender’s Pro Rata Share of such L/C Obligations.

 

(e)           Reimbursement Obligations of
Borrower.  Borrower agrees to pay to
the L/C Issuer of any Letter of Credit each L/C Reimbursement Obligation owing
with respect to such Letter of Credit no later than the first Business Day
after Borrower receives notice from such L/C Issuer that payment has been made
under such Letter of Credit or that such L/C Reimbursement Obligation is
otherwise due (the “L/C Reimbursement Date”)
with interest thereon computed as set forth in clause (i) below.  In the event that any L/C Issuer incurs any
L/C Reimbursement Obligation not repaid by Borrower as provided in this clause
(e) (or any such payment by Borrower is rescinded or set aside for any
reason), such L/C Issuer shall promptly notify Agent of such failure (and, upon
receipt of such notice, Agent shall forward a copy to each Revolving Loan
Lender) and, irrespective of whether such notice is given, such L/C
Reimbursement Obligation shall be payable on demand by Borrower with interest
thereon computed (i) from the date on which such L/C Reimbursement
Obligation arose to the L/C Reimbursement Date, at the interest rate applicable
during such period to Revolving Loans that are Base Rate Loans and (ii) thereafter
until payment in full, at the interest rate applicable during such period to
past due Revolving Loans that are Base Rate Loans.

 

(f)            Reimbursement Obligations of the
Revolving Loan Lenders.  Upon receipt
of the notice described in clause (e) above from Agent, each
Revolving Loan Lender shall pay to Agent for the account of such L/C Issuer its
Pro Rata Share of such L/C Reimbursement Obligation.  By making such payment (other than during the
continuation of an Event of Default under Section 8.1(f) or (g)),
such Lender shall be deemed to have made a Revolving Loan to Borrower, which,
upon receipt thereof by such L/C Issuer, Borrower shall be deemed to have used
in whole to repay such L/C Reimbursement Obligation.  Any such payment that is not deemed a
Revolving Loan shall be deemed a funding by such Lender of its participation in
the applicable Letter of Credit and the related L/C Obligations.  Such participation shall not otherwise be
required to be funded.  Upon receipt by
any L/C Issuer of any payment from any Lender pursuant to this clause (f) with
respect to any portion of any L/C Reimbursement Obligation, such L/C Issuer
shall promptly pay over to such Lender all payments received after such payment
by such L/C Issuer with respect to such portion.

 

(g)           Obligations Absolute.  The obligations of Borrower and the Revolving
Loan Lenders pursuant to clauses (d), (e) and (f) above
shall be absolute, unconditional and irrevocable (other than as a result of the
gross negligence, bad faith, or willful misconduct of the L/C Issuer as
determined by a court of competent jurisdiction) and performed strictly in
accordance with the terms of this Agreement irrespective of (i) (A) the
invalidity or unenforceability of any term or provision in any Letter of
Credit, any document transferring or 

 

29

 

purporting
to transfer a Letter of Credit, any Financing Document (including the
sufficiency of any such instrument), or any modification to any provision of
any of the foregoing, (B) any document presented under a Letter of Credit
being forged, fraudulent, invalid, insufficient or inaccurate in any respect or
failing to comply with the terms of such Letter of Credit or (C) any loss
or delay, including in the transmission of any document, (ii) the
existence of any setoff, claim, abatement, recoupment, defense or other right
that any Person (including any Credit Party) may have against the beneficiary
of any Letter of Credit or any other Person, whether in connection with any
Financing Document or any other contractual obligation or transaction, or the
existence of any other withholding, abatement or reduction, (iii) in the
case of the obligations of any Revolving Loan Lender, (A) the failure of
any condition precedent set forth in Section 7.2 to be satisfied
(each of which conditions precedent the Revolving Loan Lenders hereby
irrevocably waive) or (B) any adverse change in the condition (financial
or otherwise) of any Credit Party and (iv) to the extent  permitted under applicable Law, any other act
or omission to act or delay of any kind of any Secured Party or any other
Person or any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this Section 2.4,
constitute a legal or equitable discharge of any obligation of Borrower or any
Revolving Loan Lender hereunder.

 

Section 2.5            Reduction and Termination of the
Commitments.  (a) Optional.  Borrower may, upon notice to Agent, terminate
in whole or reduce in part ratably any unused portion of the Revolving Loan
Commitments; provided that each partial
reduction shall be in an aggregate amount that is an integral multiple of
$1,000,000.

 

(b)           Mandatory.  All outstanding Commitments shall terminate (i) in
the case of the Term Loan Facility, at 3:00 p.m. New York Time on the
Third Restatement Effective Date (after giving effect to the respective
assignments and assumptions contemplated by Section 2.1(a) and
to any Borrowing occurring, in each case on such date) and (ii) in the case
of the Revolving Loan Facility, on the Scheduled Revolving Loan Termination
Date.

 

(c)           Reductions for Mandatory
Prepayments.  The then current
Revolving Loan Commitments shall be reduced ratably on each date on which a
prepayment of Revolving Loans or Swing Loans is made pursuant to clause (b) (Equity
and Debt Issuances), (c) (Asset Sales and Property Loss
Events), (d) (Indenture Prepayments) of Section 2.8
or would be required to be made had the aggregate outstanding principal amount
of the Revolving Loans and Swing Loans been equal to the Revolving Loan
Commitments then in effect, in each case in the amount of such prepayments.

 

Section 2.6            Repayment of Loans.  (a)  Borrower promises to repay the
entire unpaid principal amount of the Revolving Loans and the Swing Loans on
the Scheduled Revolving Loan Termination Date.

 

(b)           Borrower promises to repay the Term
Loan on the Term Loan Maturity Date and at the dates and in the amounts set
forth below, as such amounts may be reduced in accordance with Sections 2.7
and 2.8:

 

	
  DATE

  	
   

  	
  AMOUNT

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  325,000

  	
   

  
					

 

30

 

	
  DATE

  	
   

  	
  AMOUNT

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  325,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  325,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  325,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  975,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  975,000

  	
   

  
	
  March 31, 2011

  	
   

  	
  $

  	
  975,000

  	
   

  
	
  June 30, 2011

  	
   

  	
  $

  	
  975,000

  	
   

  
	
  September 30, 2011

  	
   

  	
  $

  	
  1,300,000

  	
   

  
	
  December 31, 2011

  	
   

  	
  $

  	
  1,300,000

  	
   

  
	
  March 31, 2012

  	
   

  	
  $

  	
  1,300,000

  	
   

  
	
  June 30, 2012

  	
   

  	
  $

  	
  1,300,000

  	
   

  
	
  September 30, 2012

  	
   

  	
  $

  	
  1,625,000

  	
   

  
	
  December 31, 2012

  	
   

  	
  $

  	
  1,625,000

  	
   

  
	
  March 31, 2013

  	
   

  	
  $

  	
  1,625,000

  	
   

  
	
  June 30, 2013

  	
   

  	
  $

  	
  1,625,000

  	
   

  
	
  September 30, 2013

  	
   

  	
  $

  	
  8,125,000

  	
   

  
	
  December 31, 2013

  	
   

  	
  $

  	
  8,125,000

  	
   

  
	
  March 31, 2014

  	
   

  	
  $

  	
  8,125,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  8,125,000

  	
   

  

 

Section 2.7            Optional Prepayments.  Borrower may prepay the outstanding principal
amount of any Loan in whole or in part at any time (together with any breakage
costs that may be owing pursuant to Section 2.16(a) after
giving effect to such prepayment); provided  that each partial prepayment that is not of
the entire outstanding amount under any Facility shall be in an equal to
$100,000 or a higher integral multiple of $25,000.

 

Section 2.8            Mandatory Prepayments.  (a)  Excess Cash Flow.   Borrower shall pay
or cause to be paid to Agent, within 5 Business Days after the last date
financial statements can be delivered pursuant to Section 4.1(b) for
any Fiscal Year ending after the Third Restatement Effective Date, commencing
with the Fiscal Year ending on or about July 3, 2009, an amount equal to
the applicable percentage set forth in the ECF Percentage Table corresponding
to the ratio of (x) Net Total Debt on the last day of such Fiscal Year to (y) EBITDA
for the twelve (12) month period ending on such date, of the Excess Cash Flow
for such Fiscal Year.

 

31

 

(b)           Equity and Debt Issuances.  Upon receipt on or
after the Third Restatement Effective Date by any Credit Party of Net Cash
Proceeds arising from (i) the issuance or sale or other disposition by
Holdings of its own equity securities (other than (1) proceeds of the
issuance of equity securities by Holdings which are contributed to Borrower (excluding
proceeds from an initial public offering), (2) proceeds from the issuance
of equity securities to, or upon the exercise of options or warrants by,
members of the management or employees of any Credit Party, (3) proceeds
of the issuance of equity securities to Borrower or any Subsidiary, (4) proceeds
of the issuance of equity securities to any investor that such investor invests
directly or indirectly in Holdings prior to an initial public offering and (5) proceeds
of the issuance of equity securities used within ten (10) Business Days of
such issuance to finance the consummation of a Permitted Acquisition), Borrower
shall promptly pay or cause to be paid to Agent an amount equal to 50% of such
Net Cash Proceeds or (ii) the incurrence by any Credit Party of Debt of
the type specified in clause (i) or (ii) of the
definition thereof (other than proceeds of Debt securities expressly permitted
pursuant to Section 5.1), Borrower shall promptly pay or cause to
be paid to Agent an amount equal to 100% of such Net Cash Proceeds.

 

(c)           Asset Sales and Property Loss
Events.  Within
three Business Days following  receipt on or
after the Third Restatement Effective Date by any Credit Party of Net Cash
Proceeds arising from (i) any Asset Disposition by any Credit Party (other
than Asset Dispositions of its own equity securities and Assets Dispositions
permitted hereunder), to the extent resulting, in the aggregate with all other
Asset Dispositions by any by any Credit Party, in the receipt by any of them of
Net Cash Proceeds in excess of $1,000,000 in any Fiscal Year, or (ii) any
Property Loss Event with respect to any property of any Credit Party to the
extent resulting, in the aggregate with all other such Property Loss Events, in
the receipt by any of them of Net Cash Proceeds in excess of $250,000, Borrower
shall pay or cause to be paid to Agent an amount equal to 100% of such Net Cash
Proceeds in excess of $1,000,000 or $250,000, as applicable; provided that, upon any such receipt, any Credit Party may
make Permitted Reinvestments with such Net Cash Proceeds and Borrower shall not
be required to make or cause such payment to the extent (x) such Net Cash
Proceeds are intended to be used to make Permitted Reinvestments and (y) on
each Reinvestment Prepayment Date for such Net Cash Proceeds, Borrower shall
pay or cause to be paid to Agent an amount equal to the Reinvestment Prepayment
Amount applicable to such Reinvestment Prepayment Date and such Net Cash
Proceeds; provided, further that, notwithstanding
the foregoing, the aggregate amount which may be reinvested by Borrower and its
Subsidiaries in respect of Net Cash Proceeds of Property Loss Events may not
exceed $1,000,000 in any Fiscal Year.

 

(d)           Excess Outstandings.  On any date on which the aggregate principal
amount of Revolving Loan Outstandings exceeds the aggregate Revolving Loan
Commitments, Borrower shall pay to Agent an amount equal to such excess.

 

(e)           Application of Payments.  Any payments made to Agent pursuant to this Section 2.8
shall be applied to the Obligations in accordance with Section 2.12(b).

 

Section 2.9            Interest.  (a)  Rate.  All Loans and the outstanding amount of all
other Obligations (other than pursuant to Secured Hedging Agreements) shall
bear interest, in the case of Loans, on the unpaid principal amount thereof
from the date such Loans are made and, in the case of such other Obligations,
from the date such other Obligations are due and payable until, in 

 

32

 

all
cases, paid in full, except as otherwise provided in clause (c) below,
as follows:  (i) in the case of Base
Rate Loans, at a rate per annum equal to the sum of the Base Rate and the
Applicable Margin, each as in effect from time to time, (ii) in the case
of Eurodollar Rate Loans, at a rate per annum equal to the sum of the
Eurodollar Rate and the Applicable Margin, each as in effect for the applicable
Interest Period, and (iii) in the case of other Obligations, at a rate per
annum equal to the sum of the Base Rate and the Applicable Margin for Revolving
Loans that are Base Rate Loans, each as in effect from time to time.

 

(b)           Payments.  Interest accrued shall be payable in arrears (i) if
accrued on the principal amount of any Loan, (A) at maturity (whether by
acceleration or otherwise), (B) if such Loan is the Term Loan, upon the
payment or prepayment of the principal amount on which such interest has
accrued and (C)(1) if such Loan is a Base Rate Loan (including a Swing
Loan), on the last day of each calendar quarter commencing on the first such
day following the making of such Loan, (2) if such Loan is a Eurodollar
Rate Loan, on the last day of each Interest Period applicable to such Loan and,
if applicable, on each date during such Interest Period occurring every 3
months from the first day of such Interest Period and (ii) if accrued on
any other Obligation, on demand from and after the time such Obligation is due
and payable (whether by acceleration or otherwise).

 

(c)           Default Interest.  Notwithstanding the rates of interest
specified in clause (a) above or elsewhere in any Financing
Document, effective immediately upon the delivery of a notice by Agent or the
Required Lenders to Borrower during the continuance of any Event of Default and
for as long as such Event of Default shall be continuing, the principal balance
of all Obligations (including any Obligation that bears interest by reference
to the rate applicable to any other Obligation but excluding Obligations under
Secured Hedging Agreements) shall bear interest at a rate that is 2% per annum
in excess of the interest rate applicable to such Obligations from time to
time, payable on demand or, in the absence of demand, on the date that would
otherwise be applicable.

 

Section 2.10          Conversion and Continuation Options.  (a)  Option.  Borrower may elect (i) in the case of
any Eurodollar Rate Loan, (A) to continue such Eurodollar Rate Loan or any
portion thereof for an additional Interest Period on the last day of the
Interest Period applicable thereto and (B) to convert such Eurodollar Rate
Loan or any portion thereof into a Base Rate Loan at any time on any Business
Day, subject to the payment of any breakage costs required by Section 2.16(a),
and (ii) in the case of Base Rate Loans (other than Swing Loans), to
convert such Base Rate Loans or any portion thereof into Eurodollar Rate Loans
at any time on any Business Day upon 3 Business Days’ prior notice; provided that, (x) for each Interest Period, the
aggregate amount of Eurodollar Rate Loans having such Interest Period must be
an integral multiple of $100,000 and (y) no conversion in whole or in part
of Base Rate Loans to Eurodollar Rate Loans and no continuation in whole or in
part of Eurodollar Rate Loans shall be permitted at any time at which (1) an
Event of Default shall be continuing and Agent or the Required Lenders shall
have determined in their sole discretion not to permit such conversions or
continuations or (2) such continuation or conversion would be made during
a suspension imposed by Section 2.15.

 

(b)           Procedure.  Each such election shall be made by giving
Agent at least 3 Business Days’ prior notice in substantially the form of Exhibit G
(a “Notice of Conversion or 

 

33

 

Continuation”) duly completed.  Agent shall promptly notify each Lender of
its receipt of a Notice of Conversion or Continuation and of the options
selected therein.  If Agent does not
receive a timely Notice of Conversion or Continuation from Borrower containing a permitted election to continue or convert any
Eurodollar Rate Loan, then, upon the expiration of the applicable Interest
Period, such Loan shall be automatically converted to a Base Rate Loan.  Each partial conversion or continuation shall
be allocated ratably among the Lenders in the applicable Facility in accordance
with their Pro Rata Share.

 

Section 2.11          Fees.  (a)  Unused Commitment Fee.  Borrower agrees to pay to each Revolving Loan
Lender a commitment fee on the actual daily amount by which the Revolving Loan
Commitment of such Lender exceeds its Pro Rata Share of the sum of (i) the
aggregate outstanding principal amount of Revolving Loans and (ii) the
outstanding amount of the L/C Obligations for all Letters of Credit (the “Unused Commitment Fee”) from the date hereof through the
Revolving Loan Termination Date at a rate per annum equal to the Applicable
Margin with respect to the Unused Commitment Fee, payable in arrears (x) on
the last day of each calendar quarter and (y) on the Revolving Loan
Termination Date.

 

(b)           Letter of Credit Fees.  Borrower agrees to pay, with respect to all
Letters of Credit issued by any L/C Issuer, (i) to such L/C Issuer,
certain fees, documentary and processing charges as separately agreed between
Borrower and such L/C Issuer or otherwise in accordance with such L/C Issuer’s
standard schedule in effect at the time of determination thereof and (ii) to
Agent, for the benefit of the Revolving Loan Lenders according to their Pro
Rata Shares, a fee accruing at a rate per annum equal to the Applicable Margin
for Revolving Loans that are Eurodollar Rate Loans on the maximum undrawn face
amount of such Letters of Credit, payable in arrears (A) on the last day
of each calendar quarter, ending after the issuance of such Letter of Credit
and (B) on the Revolving Loan Termination Date; provided
that, without duplication of Section 2.9(c), the fee payable under
this clause (ii) shall be increased by 2% per annum and shall be
payable, in addition to be payable on any date it is otherwise required to be
paid hereunder, on demand effective immediately upon the delivery of a notice
by Agent or the Required Lenders to Borrower during the continuance of any
Event of Default and for as long as such Event of Default shall be continuing.

 

(c)           Additional Fees.  Borrower shall pay to Agent and its Related
Persons the additional fees described in the Fee Letter.

 

Section 2.12          Application of Payments.  (a)  Application of Voluntary
Prepayments.  Unless otherwise
provided in this Section 2.12 or elsewhere in any Financing
Document, all payments and any other amounts received by Agent from or for the
benefit of Borrower shall be applied to repay the Obligations Borrower
designates.

 

(b)           Application of Mandatory
Prepayments.  Subject to the
provisions of clause (c) below with respect to the application of
payments during the continuance of an Event of Default, any payment made by
Borrower to Agent pursuant to Section 2.8 shall be applied first,
to repay the outstanding principal balance of the Term Loan, second, to
repay the outstanding principal balance of the Revolving Loans and the Swing
Loans, third, in the case of any payment required pursuant to Section 2.8(d),
to provide cash collateral to the extent and in the manner in Section 8.4
and, then, any excess shall be retained by Borrower.

 

34

 

(c)           Application of Payments During an
Event of Default. Borrower hereby irrevocably waives, and agrees to cause
each Credit Party to waive, the right to direct the application during the
continuance of an Event of Default of any and all payments in respect of any
Obligation and any proceeds of Collateral and agrees that, notwithstanding the
provisions of clause (a) above, Agent may, and, upon either (A) the
direction of the Required Lenders or (B) the termination of any Commitment
or the acceleration of any Obligation pursuant to Section 8.2,
shall, apply all payments in respect of any Obligation, all funds on deposit in
any Cash Collateral Account and all other proceeds of Collateral (i) first,
to pay Obligations in respect of any cost or expense reimbursements, fees or
indemnities then due to Agent, (ii) second, to pay Obligations in
respect of any cost or expense reimbursements, fees or indemnities then due to
the Lenders and the L/C Issuers, (iii) third, to pay interest then
due and payable in respect of the Loans and L/C Reimbursement Obligations, (iv) fourth,
to repay the outstanding principal amounts of the Loans and L/C Reimbursement
Obligations, to provide cash collateral for Letters of Credit in the manner and
to the extent described in Section 8.4 and to pay amounts owing
with respect to Secured Hedging Agreements and (v) fifth, to the
ratable payment of all other Obligations.

 

(d)           Application of Payments Generally.  All payments that would otherwise be
allocated to the Revolving Loan Lenders pursuant to this Section 2.12
shall instead be allocated first, to repay interest on Swing Loans, on
any portion of the Revolving Loans that Agent may have advanced on behalf of
any Lender and on any L/C Reimbursement Obligation, in each case for which
Agent or, as the case may be, the L/C Issuer has not then been reimbursed by
such Lender or Borrower, second to pay the outstanding principal amount
of the foregoing obligations and third, to repay the Revolving
Loans.  All repayments of any Revolving
Loans or the Term Loan shall be applied first, to repay such Loans
outstanding as Base Rate Loans and then, to repay such Loans outstanding
as Eurodollar Rate Loans, with those Eurodollar Rate Loans having earlier
expiring Interest Periods being repaid prior to those having later expiring
Interest Periods.  All mandatory
repayments of the Term Loan shall be applied to reduce the remaining
installments of the outstanding principal amount of the Term Loan (x) in
the direct order of maturity, in the case of such installments of principal due
and payable within the period of 24 months immediately following the date of
such repayment, and (y) ratably, in the case of all other such
installments of principal. If sufficient amounts are not available to repay all
outstanding Obligations described in any priority level set forth in this Section 2.12,
the available amounts shall be applied, unless otherwise expressly specified
herein, to such Obligations ratably based on the proportion of the Secured
Parties’ interest in such Obligations. 
Any priority level set forth in this Section 2.12 that
includes interest shall include all such interest, whether or not accruing
after the filing of any petition in bankruptcy or the commencement of any
insolvency, reorganization or similar proceeding, and whether or not a claim
for post-filing or post-petition interest is allowed in any such proceeding.

 

Section 2.13          Payments and Computations.  (a)  Procedure.  Borrower shall make each payment under any
Financing Document not later than 1:00 p.m. New York Time on the day when
due to Agent by wire transfer to the following account (or at such other
account or by such other means to such other address as Agent shall have
notified Borrower in writing within a reasonable time prior to such payment) in
immediately available Dollars and without setoff or counterclaim:

 

35

 

Deutsche
Bank, New York, New York

Account
Number: 50-283-811

Account Name:  GE Business Financial
Services Inc.

Swift
ID:                021-001-033

Currency
Code:   USD

Reference: DYNAVOX SYSTEMS LLC (CFN#: HFS2763)

 

Agent
shall promptly thereafter cause to be distributed immediately available funds
relating to the payment of principal, interest or fees to the Lenders, in
accordance with the application of payments set forth in Section 2.12.  The Lenders shall make any payment under any
Financing Document in immediately available Dollars and without setoff or
counterclaim.  Each Revolving Loan Lender
shall make each payment for the account of any L/C Issuer or Swingline Lender
required pursuant to Section 2.3 or 2.4 (A) if the
notice or demand therefor was received by such Lender prior to 11:00 a.m.
New York Time on any Business Day, on such Business Day and (B) otherwise,
on the Business Day following such receipt. 
Payments received by Agent after 1:00 p.m. New York Time shall be
deemed to be received on the next Business Day.

 

(b)           Computations of Interests and Fees.  All computations of interest and of fees
shall be made by Agent  on the basis of a
year of 360 days (or, in the case of Base Rate Loans whose interest rate is
calculated based on the rate set forth in clause (a) of the
definition of “Base Rate”, 365/366 days), in each case for the actual number of
days (including the first day but excluding the last day) occurring in the
period for which such interest and fees are payable.  Each determination of an interest rate or the
amount of a fee hereunder shall be made by Agent (including determinations of a
Eurodollar Rate or Base Rate in accordance with the definitions of “Eurodollar
Rate” and “Base Rate”, respectively) and shall be conclusive, binding and final
for all purposes, absent manifest error.

 

(c)           Payment Dates.  Whenever any payment hereunder shall be
stated to be due on a day other than a Business Day, the due date for such
payment shall be extended to the next succeeding Business Day without any
increase in such payment as a result of additional interest or fees; provided
that such interest and fees shall continue accruing as a result of such
extension of time.

 

(d)           Advancing Payments.  Unless Agent shall have received notice from
Borrower to the Lenders prior to the date on which any payment is due hereunder
that Borrower will not make such payment in full, Agent may assume that
Borrower has made such payment in full to Agent on such date and Agent may, in
reliance upon such assumption, cause to be distributed to each Lender on such
due date an amount equal to the amount then due such Lender.  If and to the extent that Borrower shall not
have made such payment in full to Agent, each Lender shall repay to Agent on
demand such amount distributed to such Lender together with interest thereon
(at the Federal Funds Rate for the first Business Day and thereafter, at the
rate applicable to Base Rate Loans under the applicable Facility) for each day
from the date such amount is distributed to such Lender until the date such
Lender repays such amount to Agent.

 

Section 2.14          Evidence of Debt.  (a)  Records of Lenders.  Each Lender shall maintain in accordance with
its usual practice accounts evidencing Debt of Borrower to such Lender
resulting from each Loan of such Lender from time to time, including the
amounts of principal 

 

36

 

and
interest payable and paid to such Lender from time to time under this
Agreement.  In addition, each Lender
having sold a participation in any of its Obligations or having identified an
SPV as such to Agent, acting as agent of Borrower solely for this purpose and
solely for tax purposes, shall establish and maintain at its address referred
to in Section 11.11 (or at such other address as such Lender shall
notify Borrower) a record of ownership, in which such Lender shall register by
book entry (A) the name and address of each such participant and SPV (and
each change thereto, whether by assignment or otherwise) and (B) the
rights, interest or obligation of each such participant and SPV in any
Obligation, in any Commitment and in any right to receive any payment
hereunder.

 

(b)           Records of Agent.  Agent, acting as agent of Borrower solely for
tax purposes and solely with respect to the actions described in this Section 2.14,
shall establish and maintain at its address referred to in Section 11.11
(or at such other address as Agent may notify Borrower) (A) a record of
ownership (the “Register”) in
which Agent agrees to register by book entry the interests (including any
rights to receive payment hereunder) of Agent, each Lender and each L/C Issuer
in the Term Loan and the Revolving Loan Outstandings, each of their obligations
under this Agreement to participate in each Loan, Letter of Credit and
L/C Reimbursement Obligation, and any assignment of any such interest,
obligation or right and (B) accounts in the Register in accordance with
its usual practice in which it shall record (1) the names and addresses of
the Lenders and the L/C Issuers (and each change thereto pursuant to Section 2.18
(Substitution of Lenders) and Section 11.2 (Assignments
and Participations; Binding Effect)), (2) the Commitments of each
Lender, (3) the amount of each Loan and each funding of any participation
described in clause (A) above, for Eurodollar Rate Loans, the
Interest Period applicable thereto, (4) the amount of any principal or
interest due and payable or paid, (5) the amount of the L/C Reimbursement
Obligations due and payable or paid and (6) any other payment received by
Agent from Borrower and its application to the Obligations.

 

(c)           Registered Obligations.  Notwithstanding anything to the contrary contained
in this Agreement, the Loans (including any Notes evidencing such Loans and, in
the case of Revolving Loans, the corresponding obligations to participate in
L/C Obligations and Swing Loans) and the L/C Reimbursement Obligations are
registered obligations, the right, title and interest of the Lenders and the
L/C Issuers and their assignees in and to such Loans or L/C Reimbursement
Obligations, as the case may be, shall be transferable only upon notation of
such transfer in the Register and no assignment thereof shall be effective
until recorded therein.  This Section 2.14
and Section 11.2 shall be construed so that the Loans and L/C
Reimbursement Obligations are at all times maintained in “registered form”
within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of
the Code and any related regulations (and any successor provisions).

 

(d)           Prima Facie Evidence.  The
entries made in the Register and in the accounts maintained pursuant to clauses
(a) and (b) above shall, to the extent permitted by applicable
Law, be prima facie evidence of the existence and amounts of the obligations
recorded therein; provided that no error in such
account and no failure of any Lender or Agent to maintain any such account
shall affect the obligations of any Credit Party to repay the Loans in
accordance with their terms.  In
addition, the Credit Parties, Agent, the Lenders and the L/C Issuers shall
treat each Person whose name is recorded in the Register as a Lender or L/C
Issuer, as applicable, for all purposes of this Agreement.  Information contained in the Register with 

 

37

 

respect
to any Lender or any L/C Issuer shall be available for access by Borrower,
Agent, such Lender or such L/C Issuer at any reasonable time and from time
to time upon reasonable prior notice.  No
Lender or L/C Issuer shall, in such capacity, have access to or be otherwise
permitted to review any information in the Register other than information with
respect to such Lender or L/C Issuer unless otherwise agreed by Agent.

 

(e)           Notes.  Upon any Lender’s request, Borrower shall
promptly execute and deliver Notes to such Lender evidencing the Loans of such
Lender in a Facility and substantially in form and substance reasonably
acceptable to such Lender; provided that
only one Note for each Facility shall be issued to each Lender, except (i) to
an existing Lender exchanging existing Notes to reflect changes in the Register
relating to such Lender, in which case the new Notes delivered to such Lender
shall be dated the date of the original Notes and (ii) in the case of
loss, destruction or mutilation of existing Notes and similar
circumstances.  Each Note, if issued,
shall only be issued as means to evidence the right, title or interest of a
Lender or a registered assignee in and to the related Loan, as set forth in the
Register, and in no event shall any Note be considered a bearer instrument or
obligation.

 

Section 2.15          Suspension of Eurodollar Rate
Option.  Notwithstanding any
provision to the contrary in this Article II, the following shall
apply:

 

(a)           Interest Rate Unascertainable,
Inadequate or Unfair.  In the event
that (A) Agent determines that adequate and fair means do not exist for
ascertaining the applicable interest rates by reference to which the Eurodollar
Rate is determined or (B) the Required Lenders notify Agent that the
Eurodollar Rate for any Interest Period will not adequately reflect the cost to
the Lenders of making or maintaining such Loans for such Interest Period, Agent
shall promptly so notify Borrower and the Lenders, whereupon the obligation of
each Lender to make or to continue Eurodollar Rate Loans shall be suspended as
provided in clause (c) below until Agent shall notify Borrower that
Agent or the Required Lenders have determined that the circumstances causing
such suspension no longer exist.

 

(b)           Illegality.  If any Lender determines that the
introduction of, or any change in or in the interpretation of, any Law after
the date of this Agreement shall make it unlawful, or any Governmental
Authority shall assert that it is unlawful, for any Lender or its applicable
lending office to make Eurodollar Rate Loans or to continue to fund or maintain
Eurodollar Rate Loans, then, on notice thereof and demand therefor by such
Lender to Borrower through Agent, the obligation of such Lender to make or to
continue Eurodollar Rate Loans shall be suspended as provided in clause (c) below
until such Lender shall, through Agent, notify Borrower that it has determined
that it may lawfully make Eurodollar Rate Loans.

 

(c)           Effect of Suspension.  If the obligation of any Lender to make or to
continue Eurodollar Rate Loans is suspended, (A) the obligation of such
Lender to convert Base Rate Loans into Eurodollar Rate Loans shall be
suspended, (B) such Lender shall make a Base Rate Loan at any time such
Lender would otherwise be obligated to make a Eurodollar Rate Loan, (C) Borrower
may revoke any pending Notice of Borrowing or Notice of Conversion or
Continuation to make or continue any Eurodollar Rate Loan or to convert any
Base Rate Loan into a Eurodollar Rate Loan and (D) each Eurodollar Rate
Loan of such Lender shall 

 

38

 

automatically
and immediately (or, in the case of any suspension pursuant to clause (a) above,
on the last day of the current Interest Period thereof) be converted into a
Base Rate Loan.

 

Section 2.16          Breakage Costs; Increased Costs;
Capital Requirements.  (a)  Breakage
Costs.  Borrower shall compensate
each Lender, upon demand from such Lender to Borrower (with copy to Agent), for
all liabilities (including, in each case, those incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to prepare to fund, to fund or to maintain the Eurodollar Rate Loans of such
Lender to Borrower but excluding any loss of the Applicable Margin on the
relevant Loans) that such Lender may incur (A) to the extent, for any
reason other than solely by reason of such Lender being a Non-Funding Lender, a
proposed Borrowing, conversion into or continuation of Eurodollar Rate Loans
does not occur on a date specified therefor in a Notice of Borrowing or a
Notice of Conversion or Continuation or in a similar request made by telephone
by Borrower, (B) to the extent any Eurodollar Rate Loan is paid (whether
through a scheduled, optional or mandatory prepayment) or converted to a Base
Rate Loan (including because of Section 2.15) on a date that is not
the last day of the applicable Interest Period or (C) as a consequence of
any failure by Borrower to repay Eurodollar Rate Loans when required by the
terms hereof.  For purposes of this clause
(a), each Lender shall be deemed to have funded each Eurodollar Rate Loan
made by it using a matching deposit or other borrowing in the London interbank
market.

 

(b)           Increased Costs.  If at any time any Lender or L/C Issuer
determines that, after the date hereof, the adoption of, or any change in or in
the interpretation, application or administration of, or compliance with, any
Law (other than any imposition or increase of Eurodollar Reserve Requirements)
from any Governmental Authority shall have the effect of (i) increasing
the cost to such Lender of making, funding or maintaining any Eurodollar Rate
Loan or to agree to do so or of participating, or agreeing to participate, in
extensions of credit, (ii) increasing the cost to such L/C Issuer of
Issuing or maintaining any Letter of Credit or of agreeing to do so or (iii) imposing
any other cost to such Lender or L/C Issuer with respect to compliance with its
obligations under any Financing Document, then, upon demand by such Lender or
L/C Issuer (with copy to Agent), Borrower shall pay to Agent for the account of
such Lender or L/C Issuer amounts sufficient to compensate such Lender or L/C
Issuer for such increased cost so long as such increased cost have accrued on
or after the day which is 180 days prior to the date on which such Lender or
L/C Issuer first made demand therefor. 
For the avoidance of doubt, this Section 2.16(b) shall
not apply to taxes, which are the subject of Section 2.17.

 

(c)           Increased Capital Requirements.  If at any time any Lender or L/C Issuer
determines that, after the date hereof, the adoption of, or any change in or in
the interpretation, application or administration of, or compliance with, any
Law (other than any imposition or increase of Eurodollar Reserve Requirements)
from any Governmental Authority regarding capital adequacy, reserves, special
deposits, compulsory loans, insurance charges against property of, deposits
with or for the account of, Obligations owing to, or other credit extended or
participated in by, any Lender or L/C Issuer or any similar requirement (in
each case other than any imposition or increase of Eurodollar Reserve
Requirements) shall have the effect of reducing the rate of return on the
capital of such Lender’s or L/C Issuer (or any corporation controlling such
Lender or L/C Issuer) by an amount deemed by such Lender or such controlling
Person to be material as a consequence of its obligations under or with respect
to any Financing Document 

 

39

 

or
Letter of Credit to a level below that which, taking into account the capital
adequacy policies of such Lender, L/C Issuer or corporation, such Lender, L/C
Issuer or corporation could have achieved but for such adoption or change,
then, upon demand from time to time by such Lender or L/C Issuer (with a copy
of such demand to Agent), Borrower shall pay to Agent for the account of such
Lender amounts sufficient to compensate such Lender for such reduction so long
as such amounts have accrued on or after the day which is 180 days prior to the
date on which such Lender first made demand therefor.

 

(d)           Compensation Certificate.  Each demand for compensation under this Section 2.16
shall be accompanied by a certificate of the Lender or L/C Issuer claiming such
compensation, setting forth the basis for such demand, the amounts to be paid
hereunder and a calculation thereof in reasonable detail, which certificate
shall be conclusive, binding and final for all purposes, absent manifest
error.  In determining such amount, such
Lender or L/C Issuer may use any reasonable averaging and attribution methods.

 

Section 2.17          Taxes.  (a)  Payments Free and Clear of Taxes.  Except as otherwise required by Law or as
otherwise provided in this Section 2.17, each payment by any Credit
Party under any Financing Document shall be made free and clear of all present
or future taxes, levies, imposts, deductions, charges, stamp or other duties or
withholdings and all interest, penalties and liabilities with respect thereto
(and without deduction for any of them) (collectively, but excluding the taxes
set forth in clauses (i) and (ii) below, the “Taxes”) other than for (i) taxes imposed on or
measured by net income (including branch profits taxes) and franchise taxes
imposed in lieu of net income taxes, in each case imposed on any Secured Party
as a result of a present or former connection between such Secured Party and
the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than such
connection arising solely from any Secured Party having executed, delivered or
performed its obligations or received a payment under, or enforced, any
Financing Document) or (ii) taxes that are attributable to the failure by
any Secured Party to comply with the requirements of clause (f) below.

 

(b)           Gross-Up.  If any Taxes shall be required by law to be
deducted from or in respect of any amount payable under any Financing Document
to any Secured Party (i) such amount shall be increased as necessary to
ensure that, after all required deductions for Taxes are made (including
deductions applicable to any increases to any amount under this Section 2.17),
such Secured Party receives the amount it would have received had no such
deductions been made, (ii) the relevant Credit Party shall make such
deductions, (iii) the relevant Credit Party shall timely pay the full
amount deducted to the relevant taxing authority or other authority in
accordance with applicable Law and (iv) within 30 days after such payment
is made, the relevant Credit Party shall deliver to Agent an original or
certified copy of a receipt evidencing such payment; provided
that no such increase shall be made with respect to, and no Credit Party shall
be required to indemnify any such Secured Party pursuant to clause (d) below  for, withholding taxes to the extent that
the obligation to withhold amounts existed on the date that such Secured Party
became a “Secured Party” under this Agreement in the capacity under which such
Secured Party makes a claim under this clause (b), except in each case
to the extent such Secured Party is a direct or indirect assignee (other than
pursuant to Section 2.18 (Substitution of Lenders)) of any
other Secured Party that was entitled, at the time the assignment of such other
Secured Party became effective, to receive additional amounts under this clause
(b).

 

40

 

(c)           Other Taxes.  In addition, Borrower agrees to pay, and
authorizes Agent to pay in its name, any stamp, documentary, excise or property
tax, charges or similar levies imposed by any applicable Law or Governmental
Authority and all liabilities with respect thereto (including by reason of any
delay in payment thereof), in each case arising from the execution, delivery or
registration of, or otherwise with respect to, any Financing Document or any
transaction contemplated therein (collectively, “Other Taxes”).  The
Swingline Lender may, without any need for notice, demand or consent from
Borrower, by making funds available to Agent in the amount equal to any such
payment, make a Swing Loan to Borrower in such amount, the proceeds of which
shall be used by Agent in whole to make such payment.  Within 30 days after the date of any payment
of Taxes or Other Taxes by any Credit Party, Borrower shall furnish to Agent,
at its address referred to in Section 11.11, the original or a
certified copy of a receipt evidencing payment thereof.

 

(d)           Indemnification.  If Borrower fails to pay any Taxes when due
to the appropriate taxing authority or fails to remit such Taxes to Agent, for
the account of Agent and the respective Secured Parties, Borrower shall
reimburse and indemnify, within 30 days after receipt of demand therefor (with
copy to Agent), each Secured Party for all Taxes and Other Taxes (including any
Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this
Section 2.17) paid by such Secured Party and any liabilities
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted (provided, however, that Borrower shall be entitled to reasonably
contest such Taxes or Other Taxes, at its own expense, and by appropriate
proceedings, and the relevant Secured Party shall reasonably cooperate in the
conduct of such contest).  A certificate
of the Secured Party (or of Agent on behalf of such Secured Party) claiming any
compensation under this clause (d), setting forth the amounts to be paid
thereunder and delivered to Borrower with copy to Agent, shall be conclusive,
binding and final for all purposes, absent manifest error.

 

(e)           Mitigation.  Any Lender claiming any additional amounts
payable pursuant to this Section 2.17 shall use its reasonable
efforts (consistent with its internal policies and applicable Law) to change
the jurisdiction of its lending office if such a change would reduce any such
additional amounts (or any similar amount that may thereafter accrue) and would
not, in the sole determination of such Lender, be otherwise disadvantageous to
such Lender.

 

(f)            Tax Forms.

 

(i)            Each
Non-U.S. Lender Party that, at any of the following times, is entitled to an
exemption from United States withholding tax or, after a change in any Law, is
subject to such withholding tax at a reduced rate under an applicable tax
treaty, shall (w) on or prior to the date such Non-U.S. Lender Party
becomes a “Non-U.S. Lender Party” hereunder, (x) on or prior to the date
on which any such form or certification expires or becomes obsolete, (y) after
the occurrence of any event requiring a change in the most recent form or
certification previously delivered by it pursuant to this clause (i) and
(z) from time to time if requested by Borrower or Agent (or, in the case
of a participant or SPV, the relevant Lender), provide Agent and Borrower (or,
in the case of a participant or SPV, the relevant Lender) with two completed
originals of each of the following, as applicable:  (A) Forms W-8ECI (claiming exemption
from U.S. withholding tax because the income is effectively connected with a
U.S. trade or business), W-8BEN (claiming 

 

41

 

exemption from, or a reduction of, U.S. withholding tax under an income
tax treaty) or any successor forms, (B) in the case of a Non-U.S. Lender
Party claiming exemption under Sections 871(h) or 881(c) of the Code,
Form W-8BEN (claiming exemption from U.S. withholding tax under the
portfolio interest exemption) or any successor form and a certificate in form
and substance acceptable to Agent that such Non-U.S. Lender Party is not (1) a
“bank” within the meaning of Section 881(c)(3)(A) of the Code, (2) a
“10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of
the Code or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of
the Code or (C) any other applicable document prescribed by the IRS
certifying as to the entitlement of such Non-U.S. Lender Party to such
exemption from United States withholding tax or reduced rate with respect to
all payments to be made to such Non-U.S. Lender Party under the Financing
Documents.  Unless Borrower and Agent
have received forms or other documents satisfactory to them indicating that
payments under any Financing Document to or for a Non-U.S. Lender Party are not
subject to United States withholding tax or are subject to such tax at a rate
reduced by an applicable tax treaty, the Credit Parties and Agent shall
withhold amounts required to be withheld by applicable Law from such payments
at the applicable statutory rate.

 

(ii)           Each
U.S. Lender Party shall, to the extent it is legally entitled to do so, (A) on
or prior to the date such U.S. Lender Party becomes a “U.S. Lender Party”
hereunder, (B) on or prior to the date on which any such form or
certification expires or becomes obsolete, (C) after the occurrence of any
event requiring a change in the most recent form or certification previously delivered
by it pursuant to this clause (f) and (D) from time to time if
requested by Borrower or Agent (or, in the case of a participant or SPV, the
relevant Lender), provide Agent and Borrower (or, in the case of a participant
or SPV, the relevant Lender) with two completed originals of Form W-9
(certifying that such U.S. Lender Party is entitled to an exemption from U.S.
backup withholding tax) or any successor form.

 

(iii)          Each
Lender having sold a participation in any of its Obligations or identified an
SPV as such to Agent shall collect from such participant or SPV the documents
described in this clause (f) and provide them to Agent.

 

Notwithstanding
any other provision of this Section 2.17(f), a Lender shall not be
required to deliver any form pursuant to this paragraph that such Lender is not
legally able to deliver.

 

(g)           If any Lender shall become aware that
it is entitled to receive a refund in respect of amounts paid by Borrower
pursuant to this Section 2.17, which refund in the good faith
judgment of such Lender is allocable to such payment, then it shall promptly
notify Borrower of the availability of such refund and shall, within 30 days
after the receipt of a written request by Borrower, apply for such refund.  If any Lender receives a refund in respect of
any amounts paid by Borrower pursuant to this Section, which refund in the good
faith judgment of such Lender is allocable to such payment, then it shall
promptly notify Borrower of such refund and shall, within 15 days of written
receipt, pay such refund to Borrower, net of all out-of-pocket expenses of such
Lender or of Agent with respect thereto; provided,
however, that Borrower, upon the request
of such Lender or Agent, agrees to repay any amount paid over to such Lender or
to 

 

42

 

Agent
(including any interest and penalties with respect thereto) in the event such
Lender or Agent is required, for any reason, to disgorge or otherwise repay
such refund.

 

Section 2.18          Substitution of Lenders.  (a)  Substitution Right.  In the event that any Lender in any Facility
that is not an Affiliate of Agent (an “Affected Lender”), (i) makes
a claim under clause (b) (Increased Costs) or (c) (Increased
Capital Requirements) of Section 2.16, (ii) notifies
Borrower pursuant to Section 2.15(b) (Illegality) that
it has become illegal for such Lender to continue to fund or make any
Eurodollar Rate Loan in such Facility, (iii) makes a claim for payment
pursuant to Section 2.17(b) (Taxes), (iv) becomes
a Non-Funding Lender with respect to such Facility or (v) does not consent
to any amendment, waiver or consent to any Financing Document for which the
consent of the Required Lenders is obtained but that requires the consent of
other Lenders in such Facility, Borrower may, notwithstanding anything in Section 2.12
to the contrary, either pay in full such Affected Lender with respect to
amounts due in such Facility with the consent of Agent (which consent shall not
be unreasonably withheld or delayed) or substitute for such Affected Lender in
such Facility any Lender or any Affiliate or Approved Fund of any Lender or any
other Person acceptable (which acceptance shall not be unreasonably withheld or
delayed) to Agent (in each case, a “Substitute Lender”).

 

(b)           Procedure. 
To substitute such Affected Lender or pay in full the Obligations owed
to such Affected Lender under such Facility, Borrower shall deliver a notice to
Agent and such Affected Lender.  The
effectiveness of such payment or substitution shall be subject to the delivery
to Agent by Borrower (or, as may be applicable in the case of a substitution,
by the Substitute Lender) of (i) payment for the account of such Affected
Lender, of, to the extent accrued through, and outstanding
on, the effective date for such payment or substitution, all Obligations owing
to such Affected Lender with respect to such Facility (including Obligations
owed pursuant to Section 2.16(a) because of such payment), (ii) in
the case of a payment in full of the Obligations owing to such Affected Lender
in the Revolving Loan Facility, payment of any amount that, after giving effect
to the termination of the Commitment of such Affected Lender, is required to be
paid pursuant to Section 2.8(e) (Excess Outstandings)
and (iii) in the case of a substitution, (A) payment of the
assignment fee set forth in Section 11.2(c) and (B) an
assumption agreement in form and substance satisfactory to Agent whereby the
Substitute Lender shall, among other things, agree to be bound by the terms of
the Financing Documents and assume the Commitment of the Affected Lender under
such Facility.

 

Section 2.19          Effectiveness.  Upon satisfaction of the conditions set forth
in clause (b) above, Agent shall record such substitution or
payment in the Register, whereupon (i) in the case of any payment in full
in any Facility, such Affected Lender’s Commitments in such Facility shall be
terminated and (ii) in the case of any substitution in any Facility, (A) the
Affected Lender shall sell and be relieved of, and the Substitute Lender shall
purchase and assume, all rights and claims of such Affected Lender under the
Financing Documents with respect to such Facility, except that the Affected
Lender shall retain such rights expressly providing that they survive the
repayment of the Obligations and the termination of the Commitments, (B) the
Substitute Lender shall become a “Lender” hereunder having a Commitment in such
Facility in the amount of such Affected Lender’s Commitment in such Facility
and (C) the Affected Lender shall execute and deliver to Agent an
Assignment to evidence such substitution and deliver any Note in its possession
with respect to such Facility; provided that
the failure of any Affected 

 

43

 

Lender to execute any such Assignment or
deliver any such Note shall not render such sale and purchase (or the
corresponding assignment) invalid.

ARTICLE III

REPRESENTATION AND WARRANTIES

 

To induce Agent and Lenders
to enter into this Agreement and to make the Loans and other credit
accommodations contemplated hereby, Borrower hereby represents and warrants to
Agent and each Lender that:

 

Section 3.1            Existence and Power.  Each Credit Party is an entity as specified
on the Information Certificate, duly organized, validly existing and in good
standing under the laws of the jurisdiction specified on the Information
Certificate, has an organizational identification number (if any) as specified
on the Information Certificate, and has all powers and all governmental
licenses, authorizations, consents and approvals required to carry on its
business as now conducted, except where the failure to have such licenses,
authorizations, consents and approvals, to be in good standing or to have an
organizational identification number, could not reasonably be expected to have
a Material Adverse Effect.  Each Credit
Party is qualified to do business as a foreign entity in each jurisdiction in
which it is required to be so qualified, which jurisdictions as of the Third
Restatement Effective Date are specified on the Information Certificate, except
where the failure to be so qualified could not reasonably be expected to have a
Material Adverse Effect.

 

Section 3.2            Organization and Governmental Authorization;
No Contravention.  The
execution, delivery and performance by each Credit Party of the Operative
Documents to which it is a party are within its powers, have been duly
authorized by all necessary action pursuant to its Organizational Documents,
require no further action by or in respect of, or filing with, any governmental
body, agency or official, except for (i) filings to perfect the security
interests created by the Security Documents and (ii) actions or filings,
the failure with respect to which could not reasonably be expected to have a
Material Adverse Effect, and do not violate, conflict with or cause a breach or
a default under any provision of applicable law or regulation or of the
Organizational Documents of any Credit Party or of any agreement, judgment,
injunction, order, decree or other instrument binding upon it, except for such
violations, conflicts, breaches or defaults as could not reasonably be expected
to have a Material Adverse Effect.

 

Section 3.3            Binding Effect.  Each of the Operative Documents to which any
Credit Party is a party constitutes a valid and binding agreement or instrument
of such Credit Party, enforceable against such Credit Party in accordance with
its respective terms, subject to the effects of (i) insolvency, fraudulent
conveyance, reorganization, moratorium and bankruptcy or other similar laws
relating to or affecting creditors’ rights generally, (ii) general
equitable principles (whether considered in a proceeding in equity or at law)
and (iii) any implied covenant of good faith and fair dealing.

 

Section 3.4            Capitalization.  The authorized equity securities of each of
the Credit Parties as of the Third Restatement Effective Date is as set forth
on the Information Certificate.  All
issued and outstanding equity securities of each of the Credit Parties are duly
authorized and validly issued, fully paid, nonassessable, free and clear of all
Liens other than those in favor of 

 

44

 

Agent
for the benefit of Agent and Lenders, and such equity securities were issued in
compliance with all applicable state, federal and foreign laws concerning the
issuance of securities.  The identity of
the holders of the equity securities of each of the Credit Parties and the
percentage of their fully-diluted ownership of the equity securities of each of
the Credit Parties as of the Third Restatement Effective Date is set forth on
the Information Certificate.  No shares
of the capital stock or other equity securities of any Credit Party, other than
those described above, are issued and outstanding.  Except as set forth on the Information
Certificate, as of the Third Restatement Effective Date there are no preemptive
or other outstanding rights, options, warrants, conversion rights or similar
agreements or understandings for the purchase or acquisition from any Credit
Party of any equity securities of any such entity.

 

Section 3.5            Financial Information.

 

(a)           [Reserved].

 

(b)           The un-audited consolidated balance
sheet of Borrower as of May 2, 2008 and the related un-audited
consolidated statements of operations and cash flows for the month and year to
date, copies of which have been delivered to Agent, fairly present, in
accordance with accounting principles consistently applied and commonly used in
Borrower’s industry, the consolidated financial position of Borrower as of such
date and their consolidated results of operations and cash flows for the one
month then ended (subject to normal year-end adjustments and the absence of
footnote disclosures).

 

(c)           [Reserved].

 

(d)           The balance sheet of Holdings and its
Subsidiaries as of June 29, 2007 and the related statements of income (or
comparable calculation, if such Person is not a corporation) and cash flow for
the Fiscal Year then ended, reported on by Deloitte & Touche, copies
of which have been delivered to Agent, fairly present, in conformity with GAAP,
the financial position of Holdings and its Subsidiaries as of such date and its
results of operations and cash flow for such period.

 

(e)           Since June 29, 2007 there has
been no material adverse change in the business, operations, properties or
condition (financial or otherwise) of Holdings and its Subsidiaries, taken as a
whole.

 

(f)            Holdings was formed to own the
equity interests of Borrower and has no significant assets or liabilities,
other than the Enkidu Seller Note. 
DynaVox International was formed for the sole purpose of owning the
equity interests of DynaVox Canada and DynaVox UK.

 

Section 3.6            Litigation.  There is no action, suit or proceeding
pending against, or to Borrower’s knowledge threatened against or affecting,
any Credit Party or, to Borrower’s knowledge, any party to any Operative
Document other than a Credit Party, before any court or arbitrator or any
governmental body, agency or official which could reasonably be expected to
have a Material Adverse Effect or which in any manner draws into question the
validity of any of the Operative Documents.

 

45

 

Section 3.7             Ownership of Property.  Borrower and each of its Subsidiaries is the
lawful owner of, has good and marketable title to and is in lawful possession
of, or has valid leasehold interests in, all material properties and other
material assets (real or personal, tangible, intangible or mixed) purported to
be owned or leased (as the case may be) by such Person on the pro forma balance
sheet referred to in Section 3.5(c), except as disposed of in the
ordinary course of business or as otherwise permitted by the Financing
Documents.

 

Section 3.8             No Default.  No Default or Event of Default has occurred
and is continuing and no Credit Party is in breach or default under or with
respect to any contract, agreement, lease or other instrument to which it is a
party or by which its property is bound or affected, which breach or default
could reasonably be expected to have a Material Adverse Effect.

 

Section 3.9             Labor Matters.  Except as in the aggregate could not
reasonably be expected to have a Material Adverse Effect, as of the Third
Restatement Effective Date, (a) there are no strikes or other labor
disputes pending or, to Borrower’s knowledge, threatened against any Credit
Party; (b) hours worked and payments made to the employees of the Credit
Parties have not been in violation of the Fair Labor Standards Act or any other
applicable law dealing with such matters;  
(c) all payments due from the Credit Parties, or for which any
claim may be made against any of them, on account of wages and employee and
retiree health and welfare insurance and other benefits have been paid or
accrued as a liability on their books, as the case may be; and (d) the
consummation of the transactions contemplated by the Financing Documents and
the other Operative Documents will not give rise to a right of termination or
right of renegotiation on the part of any union under any collective bargaining
agreement to which it is a party or by which it is bound.

 

Section 3.10           Regulated Entities.  No Credit Party is an “investment company” or
a company “controlled” by an “investment company” or a “subsidiary” of an “investment
company,” all within the meaning of the Investment Company Act of 1940.  No Credit Party is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 2005.  No
Credit Party is subject to regulation as a “public utility” under the Federal
Power Act, as amended.

 

Section 3.11           Margin Regulations.  None of the proceeds from the Loans have been
or will be used, directly or indirectly, for the purpose of purchasing or
carrying any Margin Stock, for the purpose of reducing or retiring any
indebtedness which was originally incurred to purchase or carry any Margin
Stock or for any other purpose which might cause any of the Loans to be
considered a “purpose credit” within the meaning of Regulation T, U or X of the
Federal Reserve Board.

 

Section 3.12           Compliance With Laws.

 

(a)           Borrower and each Subsidiary is in
compliance with the requirements of all applicable laws, ordinances, rules,
regulations and requests of governmental authorities, except for such laws,
ordinances, rules, regulations and requirements the noncompliance with which
could not reasonably be expected to have a Material Adverse Effect.

 

46

 

(b)           Without limiting the generality of
clause (a) above,

 

(i)            Neither
Borrower nor any of its Subsidiaries, violate any of the Health Care Laws,
except where any such violation would not have a Material Adverse Effect.  For purposes of this Agreement, “Health
Care Laws” means (i) all federal and state fraud and
abuse laws, including, but not limited to the federal Anti-Kickback Statute (42
U.S.C. §1320a-7(b)), the Stark Law (42 U.S.C. §1395nn and §1395(q)), the civil
False Claims Act (31 U.S.C. §3729 et seq.),
TRICARE (10 U.S.C. Section 1071 et. seq),
Sections 1320a-7 and 1320a-7a of Title 42 of the United States Code and the
regulations promulgated pursuant to such statutes; (ii) the Health
Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191)
and the regulations promulgated thereunder, (iii) Medicare (Title XVIII of
the Social Security Act) and the regulations promulgated thereunder; (iv) Medicaid
(Title XIX of the Social Security Act) and the regulations promulgated
thereunder; (v) quality, safety and accreditation standards and
requirements of all applicable state laws or regulatory bodies; (vi) licensure
laws and regulations; and (vii) any and all other applicable health care
laws, regulations, manual provisions, policies and administrative guidance,
each of (i) through (vii) as may be amended from time to time.

 

(ii)           Borrower
and each Subsidiary has (i) all licenses, consents, certificates, permits,
authorizations, approvals, franchises, registrations, qualifications and other
rights from, and has made all declarations and filings with, all applicable
governmental authorities, all self regulatory authorities and all courts and
other tribunals (each, an “Authorization”) necessary to engage in
the business conducted by it except for such Authorizations with respect to
which the failure to obtain would not have a Material Adverse Effect and (ii) no
knowledge that any governmental authority is considering limiting, suspending
or revoking any such Authorization.  All
such Authorizations are valid and in full force and effect and Borrower and
each Subsidiary is in material compliance with the terms and conditions of all
such Authorizations and with the rules and regulations of the regulatory
authorities having jurisdiction with respect to such Authorizations except
where failure to be in such compliance or for an Authorization to be valid and
in full force and effect would not have a Material Adverse Effect.

 

(iii)          Except
as set forth on the Information Certificate, Borrower and each Subsidiary has
the requisite provider number or other Authorization to bill the Medicare
program (to the extent such entity participates in the Medicare program), the
respective Medicaid program in the state or states in which such entity
operates, and all other Third Party Payor Programs (as defined below) that
Borrower and each Subsidiary currently bills except where the failure to have
such Authorization would not have a Material Adverse Effect.  Except as set forth on the Information
Certificate, there is no investigation, audit, claim review, or other action
pending or, to the knowledge of Borrower or any Subsidiary, threatened which
could result in a revocation, suspension, termination, probation, restriction,
limitation, or non-renewal of any Third Party Payor (as defined below) provider
number or Authorization or result in Borrower’s or a Subsidiary’s exclusion
from any Third Party Payor Program which would have a Material Adverse
Effect.  For purposes of this Agreement, (i) “Third
Party Payor” means Medicare, Medicaid, TRICARE, Blue Cross
and/or Blue Shield, State government 

 

47

 

insurers, private insurers and any other person or entity which
presently or in the future maintains Third Party Payor Programs and (ii) “Third
Party Payor Programs” means all third party payor programs in which
Borrower or Subsidiary participates (including, without limitation, Medicare,
Medicaid, TRICARE, or any other federal or state health care programs, as well
as Blue Cross and/or Blue Shield, managed care plans, or any other private
insurance programs).

 

(iv)          Borrower
and each Subsidiary has received and maintains accreditation in good standing
and without limitation or impairment by all applicable accrediting
organizations, to the extent required by law.

 

Section 3.13           Taxes.  Except to the extent subject to a Permitted
Contest, all Federal, state and material local tax returns, reports and
statements required to be filed by or on behalf of each Credit Party have been
filed with the appropriate governmental agencies in all jurisdictions in which
such returns, reports and statements are required to be filed, and all Federal
and other material Taxes (including real property Taxes) and other material
charges shown to be due and payable in respect thereof have been timely paid
prior to the date on which any fine, penalty, interest, late charge or loss may
be added thereto for nonpayment thereof. 
Except to the extent subject to a Permitted Contest, all material state
and local sales and use Taxes required to be paid by each Credit Party have
been paid.  Except to the extent subject
to a Permitted Contest, all Federal, state and local returns have been filed by
each Credit Party for all periods for which returns were due with respect to
employee income tax withholding, social security and unemployment taxes, and
the amounts shown thereon to be due and payable have been paid in full or
adequate provisions therefor have been made. 
No Credit Party has entered into any “listed transaction” within the
meaning of Treasury Regulations Section 1.6011 4(b)(2).

 

Section 3.14           Compliance with ERISA.

 

(a)           All required reports and documents
with respect to any Pension Plan have been properly filed with the appropriate
governmental agencies, except where a failure to so file could not reasonably
be expected to have a Material Adverse Effect. 
All Pension Plans (and related trusts and insurance contracts) comply in
form and in operation with the current applications of ERISA and the Code,
except where non-compliance could not reasonably be expected to have a Material
Adverse Effect.  With respect to each
Pension Plan, there have been no prohibited transactions as defined in Section 406
of ERISA or Section 4975 of the Code that have not been reported and
corrected that could reasonably be expected to have a Material Adverse Effect.

 

(b)           During the twelve (12) month period
prior to the Third Restatement Effective Date or the making of any Loan or the
issuance of any Letter of Credit, (i) no steps have been taken to
terminate any Pension Plan and (ii) no contribution failure has occurred
with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of
ERISA or Regulation 2510.3 — 102(b)(1) of ERISA.  No condition exists or event or transaction
has occurred with respect to any Pension Plan, that could reasonably be
expected to have a Material Adverse Effect. 
No Credit Party has incurred material liability to the PBGC (other than
for current premiums) with respect to any employee Pension Plan that is subject
to Title IV of ERISA.  All contributions
(if any) have been made to any Multiemployer Pension Plan that are required to
be made by any Credit Party or any other member of the Controlled Group under
the terms of the 

 

48

 

plan
or of any collective bargaining agreement or by applicable law, except where such
failure could not reasonably be expected to have a Material Adverse Effect; no
Credit Party nor any member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal
liability with respect to any such plan or received notice of any claim or
demand for withdrawal liability or partial withdrawal liability from any such
plan, in each case that could reasonably be expected to have a Material Adverse
Effect, and no condition has occurred which, if continued, could result in a
withdrawal or partial withdrawal from any such plan, and no Credit Party nor
any member of the Controlled Group has received any notice that any
Multiemployer Pension Plan is in reorganization, that materially increased contributions
may be required to avoid a reduction in plan benefits or the imposition of any
excise tax, that any such plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such plan is or may be
terminated, that could reasonably be expected to have a Material Adverse
Effect, or that any such plan is or may become insolvent.

 

Section 3.15           Brokers.  Except as set forth in the Information
Certificate, no broker, finder or other intermediary has brought about the obtaining,
making or closing of the transactions contemplated by the Operative Documents,
and no Credit Party has or will have any obligation to any Person in respect of
any finder’s or brokerage fees in connection herewith or therewith.

 

Section 3.16           Related Transactions.  The transactions contemplated by the Third
Restatement Equity Documents to be consummated on the Third Restatement
Effective Date have been so consummated (including without limitation the
disbursement and transfer of all funds in connection therewith) in all material
respects pursuant to the provisions of the applicable Operative Documents, true
and complete copies of which have been delivered to Agent, and in compliance
with all applicable provisions of Law. 
Simultaneously with the making or conversion, as applicable, of the
initial Loans hereunder, the Third Restatement Stock Redemption will be
consummated promptly following the funding of the Loans hereunder and the Third
Restatement Subordinated Debt pursuant to and in material compliance with the
provisions of the Third Restatement Stock Redemption Documents and Third
Restatement Subordinated Note Documents, true and complete copies of which have
been delivered to Agent, and in compliance with all applicable Law, including,
without limitation Section 18-607 of the Delaware Limited Liability
Company Act and the statutes and other regulations associated therewith.

 

Section 3.17           Employment, Equityholders and Subscription
Agreements.  Except for
any Operative Documents and the other agreements set forth in the Information
Certificate, as of the Third Restatement Effective Date there are no (i) employment
agreements covering the management of any Credit Party that provide for annual
compensation in excess of $200,000, (ii) collective bargaining agreements
or other labor agreements covering any employees of any Credit Party, (iii) agreements
for managerial, consulting or similar services to which any Credit Party is a
party or by which it is bound and which provide for annual payments in excess of
$200,000, or (iv) agreements regarding any Credit Party, its assets or
operations or any investment therein to which any of its equity holders is a
party or by which it is bound.

 

Section 3.18           Compliance with Environmental Requirements;
No Hazardous Materials. 
Except in each case as set forth on the Information Certificate:

 

49

 

(a)           No Hazardous Materials are located on
any properties now or previously owned, leased or operated by any Credit Party
or have been released into the environment, or deposited, discharged, placed or
disposed of at, on, under or near any of such properties in a manner (i) that
would require the taking of any action under any Environmental Law or (ii) which
could reasonably be expected to have a Material Adverse Effect.  No portion of any such property is being
used, or has been used at any previous time, for the disposal, storage,
treatment, processing or other handling of Hazardous Materials in violation of
any Environmental Law nor is any such property affected by any Hazardous
Materials Contamination.

 

(b)           No underground storage tanks are
located on any properties now or previously owned, leased or operated by any
Credit Party, or were located on any such property and subsequently removed or
filled.

 

(c)           No notice, notification, demand,
request for information, complaint, citation, summons, investigation,
administrative order, consent order and agreement, litigation or settlement
with respect to Hazardous Materials or Hazardous Materials Contamination is in
existence or, to Borrower’s knowledge, proposed, threatened or anticipated with
respect to or in connection with the operation of any properties now or
previously owned, leased or operated by any Credit Party.  All such properties and their existing and
prior uses, and any disposal of Hazardous Materials from any thereof, comply
and at all times have complied with all Environmental Laws.  There is no condition on any of such
properties which is in violation of any Environmental Laws and no Credit Party
has received any communication from or on behalf of any governmental authority
that any such condition exists.

 

(d)           There has been no environmental
investigation, study, audit, test, review or other analysis conducted of which
Borrower has knowledge in relation to the current or prior business of Borrower
or any property or facility now or previously owned, leased or operated by any
Credit Party which has not been delivered to Agent.

 

(e)           For purposes of this Section 3.18,
each Credit Party shall be deemed to include any business or business entity
(including a corporation) which is, in whole or in part, a predecessor of such
Credit Party.

 

(f)            Notwithstanding anything to the
contrary in this Section 3.18, the representations made in this Section 3.18
(other than in Section 3.18(a)(ii)) shall only be untrue if the
effect of the failures, non-compliance or other circumstances of the types
described therein, either individually or in aggregate, could reasonably be
expected to have a Material Adverse Effect.

 

Section 3.19           Intellectual Property.  Each Credit Party owns, is licensed to use or
otherwise has the right to use, all Intellectual Property necessary for the
conduct of its business as currently conducted, including all Intellectual Property
existing as of the Third Restatement Effective Date and registered with the
U.S. government, any foreign government or any agency or department thereof as
set forth on the Information Certificate. 
Except as disclosed in the Information Certificate, all Intellectual
Property of each Credit Party is fully protected and/or duly and properly
registered, filed or issued in the appropriate office and jurisdictions for
such registrations, filings or issuances. 
To Borrower’s knowledge, each Credit Party conducts its business without
material infringement or claim of material infringement of any intellectual 

 

50

 

property
rights of others and there is no infringement or claim of infringement by
others of any Intellectual Property rights of any Credit Party, which
infringement or claim of infringement could reasonably be expected to have a
Material Adverse Effect.

 

Section 3.20           Real Property Interests.  Except for the ownership, leasehold or other
interests set forth in the Information Certificate, no Credit Party has, as of
the Third Restatement Effective Date, any ownership, material leasehold or
other material interest in real property.

 

Section 3.21           Solvency. The Credit Parties,
on a consolidated basis:  (a) own
and will own assets the fair saleable value of which are (i) greater than
the total amount of their liabilities (including contingent liabilities) and (ii) greater
than the amount that will be required to pay the probable liabilities of their
then existing debts as they become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to them; (b) have
capital that is not unreasonably small in relation to their business as
presently conducted or after giving effect to any contemplated transaction; and
(c) do not intend to incur and do not believe that they will incur debts
beyond their ability to pay such debts as they become due.

 

Section 3.22           Full Disclosure.  None of the information (financial or otherwise),
taken as a whole and furnished by or on behalf of any Credit Party to Agent or
any Lender in writing in connection with the consummation of the transactions
contemplated by the Operative Documents, including without limitation the
information set forth in the Information Certificate, contains any untrue
statement of a material fact or omits to state, as of the applicable date of
delivery and the Third Restatement Effective Date, a material fact necessary to
make the statements contained herein or therein not misleading in light of the
circumstances under which such statements were made.  All financial projections delivered to Agent
and the Lenders have been prepared on the basis of the assumptions stated
therein.  Such projections represent
Borrower’s good faith estimate of Borrower’s probable future financial
performance as of the applicable date of delivery and such assumptions are
believed by Borrower to be reasonable in light of current business conditions; provided that Borrower can give no
assurance that such projections will be attained.

 

Section 3.23           Representations and Warranties Incorporated
from Other Operative Documents. 
As of the Third Restatement Effective Date, each of the representations
and warranties made in the Operative Documents in effect on or as of such date
by each of the Credit Parties thereto, and to Borrower’s actual knowledge, by
each other party thereto, was true and correct in all material respects, and
such representations and warranties are hereby incorporated herein by reference
with the same effect as though set forth in their entirety herein, as qualified
therein, except to the extent that such representation or warranty relates to a
specific date, in which case such representation and warranty shall be true as
of such earlier date.

 

Section 3.24           Cash Management System.  Borrower hereby represents and warrants to
Agent and Lenders that (i) it has entered into (A) control agreements
with PNC Bank NA with respect to its deposit accounts at such bank, Account No. 10-1808-0859
(the “Operating Account”) and
Account No. 10-1959-2012, (B) a “sweep” agreement with PNC Bank NA
with respect to its deposit account, Account No. 10-1307-1611 at such bank
(the “Sweep Account”), pursuant to
which such bank has agreed to sweep amounts deposited therein to the Operating
Account as and when funds clear and become available in accordance with PNC
Bank’s 

 

51

 

procedures,
(ii) Mayer-Johnson LLC has entered into (A) a control agreement with
Harris N.A. with respect to its deposit account, Account No. 335-867-8, at
such bank, and (B) control agreements with PNC Bank NA with respect to its
deposit accounts, Account Nos. 10-1808-1042 and 10-1927-2094, at such bank, (iii) Holdings
has entered into a control agreement with PNC Bank NA with respect to its
deposit account, Account No. 10-1928-1767, at such bank, and (iv) DynaVox
Services Inc. has entered into a control agreement with PNC Bank NA with
respect to its deposit account, Account No. 10-1979-4415, at such
bank.  In order to segregate and to
facilitate perfection of Agent’s security interest in funds received from
Governmental Payers (as defined below), Borrower has notified all governmental
authorities making payments under Medicare or Medicaid (“Governmental Payers”) to make payments to
the Sweep Account and all other payers to make payments to the Operating
Account.

 

ARTICLE IV

AFFIRMATIVE COVENANTS

 

Borrower agrees that, so
long as any Credit Exposure exists:

 

Section 4.1             Financial Statements and Other Reports.  Borrower will maintain a system of accounting
established and administered in accordance with sound business practices to
permit preparation of financial statements in accordance with GAAP and to
provide the information required to be delivered to the Lenders hereunder, and
will deliver to Agent, and, in the case of the deliveries required by
paragraphs (a) through (f), (l), (m), (o) and (p), each Lender:

 

(a)           as soon as practicable and in any
event within thirty (30) days after the end of each month (including the last
month of Borrower’s Fiscal Year), a consolidated balance sheet of Holdings and
its Subsidiaries as at the end of such month and the related consolidated
statements of operations and cash flows for such month, and for the portion of
the Fiscal Year ended at the end of such month (i) with sufficient detail
and specificity to distinguish and permit Agent to readily discern the revenues
and gross profit of Borrower’s different business and product lines, including
the business operations and performance of Mayer-Johnson LLC and (ii) setting
forth, in each case, to the extent comparable figures are available, in
comparative form the figures for the corresponding periods of the previous
Fiscal Year and the figures for such month and for such portion of the Fiscal
Year ended at the end of such month set forth in the annual operating and
capital expenditure budgets and cash flow forecast delivered pursuant to Section 4.1(m),
all of the foregoing in reasonable detail and certified by a Responsible
Officer as fairly presenting, in all material respects, the financial condition
and results of operations of Holdings and its Subsidiaries and as having been
prepared in accordance with GAAP applied on a basis consistent with the audited
financial statements of Holdings, subject to changes resulting from audit and
normal year-end adjustments and the absence of footnote disclosures;

 

(b)           as soon as available and in any event
within ninety (90) days after the end of each Fiscal Year, a consolidated
balance sheet of Holdings and its Subsidiaries as of the end of such Fiscal
Year and the related consolidated statements of operations, stockholders’
equity (or the comparable item, if Holdings is not a corporation) and cash
flows for such Fiscal Year, setting forth in each case, to the extent
comparable figures are available, in comparative form the figures for the
previous Fiscal Year and the figures for such Fiscal Year set forth in the
annual operating 

 

52

 

and
capital expenditure budgets and cash flow forecast delivered pursuant to Section 4.1(m),
certified (solely with respect to such consolidated statements) without
material qualification (including with respect to the scope of audit) or
exception by independent public accountants of nationally recognized standing;

 

(c)           together with each delivery of
financial statements pursuant to Sections 4.1(a), 4.1(b) and
4.1(n), a Compliance Certificate, and together with each delivery of
financial statements pursuant to Section 4.1(b), an Excess Cash
Flow Certificate;

 

(d)           together with each delivery of
financial statements pursuant to Section 4.1(b) above, a
written statement by the independent public accountants giving the report
thereon stating that their audit examination has included a review of the terms
of this Agreement as it relates to accounting matters;

 

(e)           promptly upon receipt thereof, copies
of all reports submitted to any Credit Party by independent public accountants
in connection with each annual, interim or special audit of the financial
statements of any Credit Party made by such accountants, including the comment
letter submitted by such accountants to management in connection with their
annual audit;

 

(f)            promptly upon their becoming
available, copies of (i)  all regular and periodic reports and all
registration statements and prospectuses filed by any Credit Party with any
securities exchange or with the Securities and Exchange Commission or any
successor, (ii) all press releases and other statements made available
generally by any Credit Party concerning material developments in the business
of any Credit Party and (iii) all Interest Rate Contracts entered into by
any Credit Party;

 

(g)           promptly upon any officer of any
Credit Party obtaining knowledge (i) of the existence of any Event of
Default or Default, or becoming aware that the holder of any Debt of any Credit
Party in an amount greater than $500,000 has given any notice or taken any
other action with respect to a claimed default thereunder, (ii) of any
change in any Credit Party’s certified accountant or any resignation, or
decision not to stand for re-election, by any member of any Credit Party’s
board of directors (or comparable body), (iii) that any Person has given
any notice to any Credit Party or taken any other action with respect to a
claimed default under any material agreement or instrument (other than the
Financing Documents) to which any Credit Party is a party or by which any of
its assets is bound, which default could reasonably be expected to have a
Material Adverse Effect, or (iv) of the institution of any litigation or
arbitration involving an alleged liability of any Credit Party equal to or
greater than $500,000 or any adverse determination in any litigation or
arbitration involving a potential liability of any Credit Party equal to or
greater than $500,000, a certificate of a Responsible Officer specifying the
nature and period of existence of any such condition or event, or specifying
the notice given or action taken by such holder or Person and the nature of
such claimed default (including any Event of Default or Default), event or
condition, and what action the applicable Credit Party has taken, is taking or
proposes to take with respect thereto;

 

(h)           within seven (7) Business Days
following any officer of any Credit Party obtaining knowledge of (i) the
institution of any steps by any member of the Controlled Group or any other
Person to terminate any Pension Plan, (ii) the failure of any member of
the Controlled 

 

53

 

Group
to make a required contribution to any Pension Plan (if such failure is
sufficient to give rise to a Lien under Section 302(f) of ERISA) or
to any Multiemployer Pension Plan, (iii) the taking of any action with
respect to a Pension Plan which could result in the requirement that Borrower
or any Subsidiary furnish a bond or other security to the PBGC or such Pension
Plan, (iv) the occurrence of any event with respect to any Pension Plan or
Multiemployer Pension Plan which could result in the incurrence by any member
of the Controlled Group of any material liability, fine or penalty (including
any claim or demand for withdrawal liability or partial withdrawal from any
Multiemployer Pension Plan), (v) any material increase in the contingent
liability of Borrower or any Subsidiary with respect to any post-retirement
welfare plan benefit or (vi) any notice that any Multiemployer Pension
Plan is in reorganization, that materially increased contributions may be required
to avoid a reduction in plan benefits or the imposition of an excise tax, that
any such plan is or has been funded at a rate less than that required under Section 412
of the Code, that any such plan is or may be terminated, or that any such plan
is or may become insolvent, a certificate of a Responsible Officer specifying
the nature and period of existence of any such condition or event, or
specifying the notice given or action taken by such holder or Person, and what
action the applicable Credit Party has taken, is taking or proposed to take
with respect thereto;

 

(i)            reasonably promptly upon any officer
of any Credit Party obtaining knowledge of any complaint, order, citation,
notice or other written communication from any Person delivered to any Credit
Party with respect to, or if any officer of any Credit Party becomes aware of (x) the
existence or alleged existence of a violation of any Environmental Law or the
incurrence of any liability, obligation, loss, damage, cost, expense, fine,
penalty or sanction or the requirement to commence any remedial action
resulting from or in connection with any air emission, water discharge, noise
emission, Hazardous Material or any other environmental, health or safety
matter at, upon, under or within any of the properties now or previously owned,
leased or operated by any Credit Party, or due to the operations or activities
of any Credit Party or any other Person on or in connection with any such
property or any part thereof which could reasonably be expected to have a
Material Adverse Effect, or (y) any release on any of such properties of
Hazardous Materials in a quantity that is reportable under any applicable
Environmental Law, a certificate of a Responsible Officer specifying the nature
and period of existence of any such condition or event, or specifying the
notice given or action taken by such holder or Person, and what action the
applicable Credit Party has taken, is taking or proposes to take with respect
thereto;

 

(j)            on the last day of each Fiscal
Quarter of Borrower, a list of all material registrations or applications to
register any Intellectual Property that is owned by any Credit Party with the
United States government, any foreign government or any agency or department of
the foregoing;

 

(k)           promptly upon any officer of any
Credit Party obtaining knowledge that any Credit Party has acquired any
material ownership rights in any real property, a certificate of a Responsible
Officer describing such real property in such detail as Agent shall reasonably
require;

 

54

 

(l)            copies of any reports or notices
related to any material taxes and any other material reports or notices
received by any Credit Party from, or filed by any Credit Party with, any
Federal, state or local governmental agency or body;

 

(m)          as soon as available, but in any event
within sixty (60) days following the end of each Fiscal Year, Borrower’s annual
operating plans, operating and capital expenditure budgets, and financial
forecasts, including cash flow projections covering proposed fundings, repayments,
additional advances, investments and other cash receipts and disbursements,
each for the following Fiscal Year presented on a monthly basis, all of which
shall be in a format reasonably consistent with projections, budgets and
forecasts theretofore provided to the Lenders, and promptly following the
preparation thereof, updates to any of the foregoing from time to time prepared
by management of Borrower;

 

(n)           as soon as available and in any event
within thirty (30) days after the end of each Fiscal Quarter (including the
last Fiscal Quarter of Borrower’s Fiscal Year), a consolidated balance sheet of
Holdings and its Subsidiaries as at the end of such Fiscal Quarter and the
related consolidated statements of operations and cash flows for such Fiscal
Quarter, and for the portion of the Fiscal Year ended at the end of such Fiscal
Quarter (i) with sufficient detail and specificity to distinguish and
permit Agent to readily discern the revenues and gross profit of Borrower’s
different business and product lines, including the business operations and
performance of Mayer-Johnson LLC and (ii) setting forth, in each case, to
the extent comparable figures are available, in comparative form the figures
for the corresponding periods of the previous Fiscal Year and the figures for
such Fiscal Quarter and for such portion of the Fiscal Year ended at the end of
such Fiscal Quarter set forth in the annual operating and capital expenditure
budgets and cash flow forecast delivered pursuant to Section 4.1(m),
all of the foregoing in reasonable detail and certified by a Responsible
Officer as fairly presenting, in all material respects, the financial condition
and results of operations of Holdings and its Subsidiaries and as having been
prepared in accordance with GAAP applied on a basis consistent with the audited
financial statements of Holdings, subject to changes resulting from audit and
normal year-end adjustments and the absence of footnote disclosures;

 

(o)           [Reserved];

 

(p)           from time to time, if Agent
determines that obtaining appraisals is necessary in order for Agent or any
Lender to comply with applicable laws or regulations, appraisal reports in form
and substance and from appraisers satisfactory to Agent (or such Lender)
stating the then current fair market values of all or any portion of the real
estate owned by Borrower or any Subsidiaries; and

 

(q)           with reasonable promptness, upon such
request, such other information and data with respect to any Credit Party as
from time to time may be reasonably requested by Agent or any Lender.

 

Section 4.2             Payment and Performance of Obligations.  Borrower (i) will pay and discharge, and
cause each Subsidiary to pay and discharge, at or before maturity, all of their
respective obligations and liabilities, including tax liabilities, except (x) where
the same may be the subject of a Permitted Contest or (y) for such
obligations and/or liabilities the nonpayment or

 

55

 

non-discharge
of which could not reasonably be expected to have a Material Adverse Effect, (ii) will
maintain, and cause each Subsidiary to maintain, in accordance with GAAP,
appropriate reserves for the accrual of all of their respective obligations and
liabilities and (iii) will not breach or permit any Subsidiary to breach,
or permit to exist any default under, the terms of any lease, commitment,
contract, instrument or obligation to which it is a party, or by which its
properties or assets are bound, except for such breaches or defaults which
could not reasonably be expected to have a Material Adverse Effect.

 

Section 4.3             Conduct of Business and Maintenance of Existence.  Borrower will continue, and will cause each
Subsidiary to continue, to engage in business of the same general type as they
now conduct and will preserve, renew and keep in full force and effect, and
will cause each Subsidiary to preserve, renew and keep in full force and effect
their respective existence and their respective rights, privileges and
franchises necessary or desirable in the normal conduct of business, except
with respect to rights, privileges and franchises where failure to do so could
not reasonably be expected to have a Material Adverse Effect.

 

Section 4.4             Maintenance of Property; Insurance.

 

(a)           Borrower will keep, and will cause each
Subsidiary to keep, all property useful and necessary in its business in good
working order and condition, ordinary wear and tear excepted.

 

(b)           Borrower will maintain, and will
cause each Subsidiary to maintain, (i) physical damage insurance on all real
and personal property on an all risks basis (including the perils of flood and
quake), covering the repair and replacement cost of all such property and
business interruption and public liability insurance (including
products/completed operations liability coverage) in each case of the kinds
customarily carried or maintained by Persons of established reputation engaged
in similar businesses and in amounts reasonably acceptable to Agent and (ii) such
other insurance coverage in such amounts and with respect to such risks as
Agent may reasonably request.  All such
insurance shall be provided by insurers having an A.M. Best policyholders
rating reasonably acceptable to Agent.

 

(c)           On or prior to the Third Restatement
Effective Date, Borrower will cause Agent to be named as an additional insured,
assignee and loss payee, as applicable, on each insurance policy required to be
maintained pursuant to this Section 4.4 pursuant to endorsements in
form and content acceptable to Agent. 
Borrower will deliver to Agent and the Lenders (i) on or prior to
the Third Restatement Effective Date, a certificate from Borrower’s insurance
broker dated such date showing the amount of coverage as of such date, and that
such policies will include effective waivers (whether under the terms of any
such policy or otherwise) by the insurer of all claims for insurance premiums
against all loss payees and additional insureds and all rights of subrogation
against all loss payees and additional insureds, and that if all or any part of
such policy is canceled, terminated or expires, the insurer will forthwith give
notice thereof to each additional insured and loss payee and that no
cancellation, reduction in amount or material change in coverage thereof shall
be effective until at least thirty (30) days after receipt by each additional
insured and loss payee of written notice thereof, (ii) upon the request of
Agent from time to time full information as to the insurance carried, (iii) within
five (5) days of receipt of notice from any insurer, a copy of any notice
of cancellation, non-renewal or material change in

 

56

 

coverage
from that existing on the date of this Agreement and (iv) forthwith,
notice of any cancellation or non-renewal of coverage by Borrower.

 

(d)           [Reserved].

 

(E)           IN THE EVENT BORROWER FAILS TO
PROVIDE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS
AGREEMENT, AGENT MAY PURCHASE INSURANCE AT BORROWER’S EXPENSE TO PROTECT
AGENT’S INTERESTS IN THE COLLATERAL. 
THIS INSURANCE MAY, BUT NEED NOT, PROTECT BORROWER’S INTERESTS.  THE COVERAGE PURCHASED BY AGENT MAY NOT
PAY ANY CLAIM MADE BY BORROWER OR ANY CLAIM THAT IS MADE AGAINST BORROWER IN
CONNECTION WITH THE COLLATERAL.  BORROWER
MAY LATER CANCEL ANY INSURANCE PURCHASED BY AGENT, BUT ONLY AFTER
PROVIDING AGENT WITH EVIDENCE THAT BORROWER HAS OBTAINED INSURANCE AS REQUIRED
BY THIS AGREEMENT.  IF AGENT PURCHASES
INSURANCE FOR THE COLLATERAL, BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF
THAT INSURANCE, INCLUDING INTEREST AND OTHER CHARGES IMPOSED BY AGENT IN
CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE
CANCELLATION OR EXPIRATION OF THE INSURANCE. 
THE COSTS OF THE INSURANCE MAY BE ADDED TO THE OBLIGATIONS.  THE COSTS OF THE INSURANCE MAY BE MORE
THAN THE COST OF INSURANCE BORROWER IS ABLE TO OBTAIN ON ITS OWN.

 

Section 4.5             Compliance with Laws.

 

(a)           Without limiting or qualifying the
provisions of Section 4.13, Borrower will comply, and cause each
Subsidiary to comply, with the requirements of all applicable laws, ordinances,
rules, regulations, and requirements of governmental authorities (including
Environmental Laws and ERISA and the rules and regulations thereunder),
except for such laws, ordinances, rules, regulations and requirements the
noncompliance with which could not reasonably be expected to have a Material
Adverse Effect.  Borrower shall
diligently and in good faith file and pursue the applications to request new
Medicaid provider numbers as described in the Healthcare Schedule to the
Information Certificate.

 

(b)           None of the Credit Parties or their
Affiliates is (i) in violation of any U.S. Anti-Terrorism Law, (ii) engages
in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in any U.S. Anti-Terrorism Law, or (iii) is a Blocked Person.

 

Section 4.6             Inspection of Property, Books and Records.  Borrower will keep, and will cause each
Subsidiary to keep, proper books of record and account in accordance with GAAP
in which full, true and correct entries shall be made of all dealings and
transactions in relation to its business and activities; and will permit, and
will cause each Subsidiary to permit, at the sole cost of Borrower or any
applicable Subsidiary, representatives of Agent and of any Lender (as long as
such visit or inspection is made concurrently with Agent) from time to time
upon the reasonable request of Agent (but in the absence of a Default or Event
of Default not more than once during each Fiscal Year of Borrower) to visit and
inspect (during regular business hours and accompanied by officers of Borrower)
any of their respective properties, to examine and make abstracts or copies
from any of their respective books and records, to conduct a collateral audit
and analysis of their respective Inventory and Accounts and to discuss their

 

57

 

respective
affairs, finances and accounts with their respective officers, employees and
independent public accountants as often as may reasonably be desired.  In the absence of an Event of Default, Agent
or any Lender exercising any rights pursuant to this Section 4.6
shall give Borrower or any applicable Subsidiary commercially reasonable prior
written notice of such exercise.  No
notice shall be required during the existence and continuance of any Event of
Default.

 

Section 4.7             Use of Proceeds. 
The proceeds of the portion of the Term Loan funded on the Third
Restatement Effective Date, and the proceeds of Revolving Loans, shall be used
by Borrower for general corporate purposes and for working capital needs of
Borrower, to provide financing to consummate Permitted Acquisitions and,
together with the proceeds of the Third Restatement Subordinated Debt, to make
the Third Restatement Effective Date Distribution to Holdings and to pay fees
and expenses incurred in accordance with the Operative Documents and the
Related Transactions.

 

Section 4.8             Lenders’ Meetings. 
Upon Agent’s request after the end of a Fiscal Quarter and with
reasonable prior notice, Borrower will conduct a meeting (which may be held
telephonically) of Agent and the Lenders to discuss the most recent Fiscal
Quarter’s results and the financial condition of Borrower and the Subsidiaries
at which shall be present a Responsible Officer and such officers of the Credit
Parties as may be reasonably requested to attend by Agent, such request or
requests to be made within a reasonable time prior to the scheduled date of
such meeting.  Such meetings shall be
held at a time and place convenient to the Lenders and to Borrower.

 

Section 4.9             Interest Rate Contracts. 
Borrower shall, within 120 days after the Third Restatement Effective
Date, enter into and thereafter maintain Interest Rate Contracts on terms and
with counterparties reasonably satisfactory to Agent, to provide protection
against fluctuation of interest rates until the third anniversary of the Third
Restatement Effective Date for a notional amount that equals at least 50% of
the principal amount of the Term Loan.

 

Section 4.10           Hazardous
Materials; Remediation. 
Borrower will provide Agent within thirty (30) days after demand
therefor with a bond, funded trust, letter of credit or similar financial
assurance evidencing to the satisfaction of Agent that sufficient funds are
available to pay the cost of removing, treating and disposing of any Hazardous
Materials or Hazardous Materials Contamination, to the extent that the
foregoing are required by Environmental Laws and discharging any lien which may
be established on any property as a result thereof, such demand to be made, if
at all, upon Agent’s reasonable determination that the failure to so remove,
treat or dispose of any Hazardous Materials or Hazardous Materials Contamination,
or the failure to discharge any such lien could reasonably be expected to have
a Material Adverse Effect.

 

Section 4.11           Intellectual
Property.  Borrower shall
diligently and in good faith pursue obtaining, in a timely manner, (A) those
consents it deems necessary or desirable in its reasonable business judgment
from (i) licensees of the PCS Symbols of Borrower and (ii) distributors
under distribution agreements, in each case with respect to the transactions
contemplated under the Operative Documents, and (B) appropriate
assignments of invention with

 

58

 

respect
to any Intellectual Property now or hereafter created by those employees of
Borrower which it, in its reasonable business judgment, deems necessary or
desirable.

 

Section 4.12           Further
Assurances.  Borrower
will, and will cause each Subsidiary to, at its own cost and expense, cause to
be promptly and duly taken, executed, acknowledged and delivered all such
further acts, documents and assurances as may from time to time reasonably be
necessary or as Agent or the Required Lenders may from time to time request in
order to carry out the intent and purposes of the Financing Documents and the
transactions contemplated thereby, including all such actions to establish,
preserve, protect and perfect a first priority Lien (subject only to Permitted
Liens or as may otherwise be permitted by the Security Documents) in favor of
Agent for the benefit of the Lenders on the Collateral (including Collateral
acquired after the date hereof), including on any and all assets of each Loan
Party, whether now owned or hereafter acquired.

 

Section 4.13           Compliance With Health Care Laws.

 

(a)           Without limiting or qualifying any
other provision of this Agreement, Borrower will comply, and will cause each
Subsidiary to comply, with all applicable Health Care Laws relating to the
operation of such Person’s business, except for such Health Care Laws the
non-compliance with which could not reasonably be expected to have a Material Adverse
Effect.  Borrower will not make, suffer
or permit to occur, or cause or permit any Subsidiary to make, suffer or permit
to occur, any fact, event or circumstance for which notice to Agent is required
under Section 4.14, except where the existence of such facts,
events or circumstances, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

 

(b)           Borrower will maintain, and will
cause each Subsidiary to maintain, all records required to be maintained by any
governmental authority or otherwise under the Health Care Laws, except where
such non-compliance, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

Section 4.14           Notices to Agent.

 

(a)           Borrower shall notify Agent within
ten (10) Business Days following the occurrence of any of the following
facts, events or circumstances, whether threatened, existing or pending,
together with such supporting data and information as shall be necessary to
fully explain to Agent the scope and nature of the fact, event or circumstance,
and shall provide to Agent within five (5) Business Days of Agent’s
request, such additional information as Agent shall reasonably request
regarding such disclosure:

 

(i)            that
Borrower or any Subsidiary is currently, or has in the past been, or hereafter
becomes, subject to any federal, state, local governmental or private payor
civil or criminal investigations, inquiries or audits involving and/or related
to its compliance with Health Care Laws which could reasonably be expected to
have a Material Adverse Effect;

 

(ii)           that
an owner, officer, manager, employee or Person with a “direct or indirect
ownership interest” (as that phrase is defined in 42 C.F.R. §420.201) in any

 

59

 

Borrower or Subsidiary:  (A) has
had a civil monetary penalty assessed against him or her pursuant to 42 U.S.C.
§1320a-7a or is the subject of a proceeding seeking to assess such penalty; (B) has
been excluded from participation in a Federal Health Care Program (as that term
is defined in 42 U.S.C. §1320a-7b) or is the subject of a proceeding seeking to
assess such penalty; (C) has been convicted (as that term is defined in 42
C.F.R. §1001.2) of any of those offenses described in 42 U.S.C. §1320a-7b or 18
U.S.C. §§669, 1035, 1347, 1518 or is the subject of a proceeding seeking to
assess such penalty; or (D) has been involved or named in a U.S. Attorney
complaint made or any other action taken pursuant to the False Claims Act under
31 U.S.C. §§3729-3731 or qui tam action brought pursuant to 31 U.S.C. §3729 et seq.;

 

(iii)          any
material validation review, program integrity review or reimbursement audits
related to any Borrower or any Subsidiary by any commission, board or agency in
connection with the Medicare or Medicaid programs;

 

(iv)          the
voluntary disclosure by Borrower or any Subsidiary to the Office of the
Inspector General of the United States Department of Health and Human Services,
a Medicare fiscal intermediary or any state’s Medicaid program of a potential
overpayment matter involving the submission of claims to such payor in an
amount greater than $250,000;

 

(v)           receipt
by Borrower or any Subsidiary of any notice or communication from the NCQA or
other accrediting organization that such Person is (a) subject to or is
required to file a plan of correction with respect to any material
accreditation survey, or (b) in danger of losing its accreditation due to
a failure to comply with a plan of correction;

 

(vi)          any
charges of material licensing violations involving Borrower or any  Subsidiary;

 

(vii)         any
health care survey report related to licensure or certification (including,
without limitation, an annual or biannual Medicare or Medicaid certification
survey report) which includes any statement of material deficiencies pertaining
to Borrower or any Subsidiary;

 

(viii)        without
duplication, any failure of Borrower or any Subsidiary to comply with the
covenants and conditions of Section 4.13;

 

(ix)           any
revocation, suspension, termination, probation, restriction, limitation,
denial, or non-renewal affecting Borrower or any Subsidiary with respect to any
material Medicare and/or Medicaid provider participation or provider agreement,
certification, billing number, assignment (via CMS 855 forms or otherwise),
billing agent or electronic funds transfer instruction; and/or

 

(x)            any
revocation, suspension, termination, probation, restriction, limitation, denial
or non-renewal (other than at the election of Borrower or any Subsidiary) affecting
Borrower or any Subsidiary with respect to any material provider participation
or provider agreement with any third-party payor other than Medicaid or
Medicare,

 

60

 

including, without limitation, Blue Cross and/or Blue Shield, and any
other private commercial insurance, healthcare service contractor, provider
network, managed care program and employee assistance program.

 

Section 4.15           Participation
Agreements.  Borrower
shall provide to Agent upon request, and has provided to Agent as of the Third
Restatement Effective Date as set forth in the Information Certificate, an
accurate, complete and current list of all material participation agreements
with health maintenance organizations, insurance programs, third party payors
and preferred provider organizations with respect to the business of Borrower
and each Subsidiary (collectively, “Participation
Agreements”).  Borrower will
at all times comply, and will cause each Subsidiary at all times to comply, with
all requirements, contracts, conditions and stipulations applicable to Borrower
or any Subsidiary in order to maintain in good standing and without default or
limitation all such Participation Agreements, except where non-compliance could
not reasonably be expected to have a Material Adverse Effect.

 

Section 4.16           Cure
of Violations.  If there
shall occur any fact, event or circumstance for which Borrower is required to
give Agent notice under Section 4.14 above, or if there shall occur
any breach of Section 4.13, Borrower shall take such action as is
necessary to validly challenge or otherwise appropriately respond to such fact,
event or circumstance within any timeframe required by applicable Health Care
Laws, and shall thereafter diligently pursue the same to a favorable
conclusion, all to the effect that the fact, event or circumstance giving rise
to Borrower’s notice obligation under Section 4.14 or the breach of
Section 4.13, shall be dismissed, rescinded, eliminated and
otherwise cease to exist on that date which is the earlier to occur of (A) sixty
(60) days after the date Borrower or any Subsidiary became aware of such fact,
event or circumstance, or (B) the expiration of any cure period given
under applicable Health Care Laws to cure any such breach.  Provided that Borrower is at all times in
compliance with the covenants of this Section 4.16 and diligently
pursue and obtain the cure described above within the timeframe described
above, the existence of any fact, event or circumstance for which Borrower is
required to give Agent notice under Section 4.14, or the existence
of a breach of Section 4.13, shall not, in and of itself,
constitute a breach of Borrower’s obligations hereunder unless the same shall
in Agent’s good faith judgment have a Material Adverse Effect.

 

Section 4.17           Cash
Management System.   To the extent any Person, whether a
Governmental Payer or otherwise, remits payments to an incorrect bank account
or otherwise makes payments not in accordance with the provisions of Section 3.24
or Borrower’s payment direction, Borrower, or Mayer-Johnson LLC, as applicable,
shall contact such Person and use its reasonable best efforts to redirect
payment from such Person in accordance with the terms hereof and Section 3.24.

 

ARTICLE
V

NEGATIVE COVENANTS

 

Borrower agrees that, so
long as any Credit Exposure exists:

 

Section 5.1             Debt.  Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, create,
incur, assume, guarantee or otherwise become or remain directly or indirectly

 

61

 

liable
with respect to, any Debt, or any contingent obligations which would be Debt
hereunder if they were non-contingent, except for:

 

(a)           Debt and L/C Obligations under the
Financing Documents;

 

(b)           Debt or such contingent obligations
outstanding on the date of this Agreement as set forth in the Information
Certificate and any refinancing or renewals thereof, provided that any such refinancing and/or renewal shall not
exceed the principal amount of and shall not mature before such Debt
outstanding at the time of such refinancing or renewal or contain terms
materially more burdensome to Borrower or such Subsidiary than those of the
Debt being refinanced or renewed;

 

(c)           Debt incurred or assumed for the purpose
of financing all or any part of the cost of acquiring any fixed asset
(including through Capital Leases), in an aggregate principal amount at any
time outstanding not greater than $2,500,000;

 

(d)           unsecured intercompany Debt arising
from loans made by Borrower to Domestic Subsidiaries, provided, however, that upon the request
of Agent at any time, such Debt shall be evidenced by promissory notes having
terms reasonably satisfactory to Agent, the sole originally executed
counterparts of which shall be pledged and delivered to Agent, for the benefit
of Agent and Lenders, as security for the Obligations;

 

(e)           Debt of Foreign Subsidiaries
consisting of (i) intercompany Debt arising from loans made by Borrower to
its Foreign Subsidiaries to fund working capital requirements and for other
general corporate purposes of such Subsidiaries in the ordinary course of
business, provided that upon the
request of Agent at any time, such Debt shall be evidenced by promissory notes
having terms reasonably satisfactory to Agent, the sole originally executed
counterparts of which shall be pledged and delivered to Agent, for the benefit
of Agent and Lenders as security for the Obligations, (ii) lines of
credit, letters of credit, bank guarantees and similar extensions of credit
obtained by any such Foreign Subsidiary locally, and (iii) Guarantees by
Borrower of the Debt of such Foreign Subsidiaries; provided, further that the aggregate of all such Debt
incurred under this Section 5.1(e) shall not exceed
$2,500,000;

 

(f)            other Debt not to exceed $3,000,000
in the aggregate at any time outstanding;

 

(g)           without duplication, Debt secured by
Liens permitted under Section 5.2(j);

 

(h)           without duplication, any Debt which
constitutes Contingent Obligations permitted under Sections 5.3(a) through
5.3(f); and

 

(i)            Debt, if any, arising under Interest
Rate Contracts; and

 

(j)            the Third Restatement Subordinated
Debt and the guarantees of any Loan Parties of the obligations thereunder.

 

Section 5.2             Liens.  Borrower
will not, and will not permit any Subsidiary to, directly or indirectly,
create, assume or suffer to exist any Lien on any asset now owned or hereafter
acquired by it, except:

 

62

 

(a)           Liens created by the Security
Documents;

 

(b)           Liens existing on the date of this
Agreement as set forth in the Information Certificate and any renewals or
extensions of such Liens, provided that (i) the
Debt secured by such Liens is permitted under Section 5.1(b) and
(ii) any such renewal or extension does not encumber any additional assets
or properties of any Credit Party;

 

(c)           any Lien on any asset securing Debt
permitted under Section 5.1(c) incurred or assumed for the
purpose of financing all or any part of the cost of acquiring such asset, provided that such Lien attaches to such asset concurrently
with or within ninety (90) days after the acquisition thereof;

 

(d)           Liens for taxes, assessments or other
governmental charges not at the time delinquent or thereafter payable without
penalty or the subject of a Permitted Contest;

 

(e)           Liens arising in the ordinary course
of business (i) in favor of carriers, warehousemen, mechanics and
materialmen, and other similar Liens imposed by law and (ii) in connection
with worker’s compensation, unemployment compensation and other types of social
security (excluding Liens arising under ERISA) or in connection with surety
bonds, bids, performance bonds and similar obligations for sums not overdue or
the subject of a Permitted Contest and not involving any deposits or advances
or borrowed money or the deferred purchase price of property or services and,
in each case, for which it maintains adequate reserves;

 

(f)            attachments, appeal bonds, judgments
and other similar Liens, for sums not exceeding $250,000 in the aggregate
arising in connection with court proceedings; provided
that the execution or other enforcement of such Liens is effectively stayed and
the claims secured thereby are the subject of a Permitted Contest;

 

(g)           easements, rights of way,
restrictions, minor defects or irregularities in title and other similar Liens
not interfering in any material respect with the ordinary conduct of the
business of Borrower or any Subsidiary;

 

(h)           leases or subleases granted to other
Persons in the ordinary course of business not materially interfering with the
conduct of the business of Borrower and/or its Subsidiaries and otherwise
permitted under this Agreement;

 

(i)            Liens upon assets subject to Capital
Leases to the extent permitted by Section 5.1(c) hereof, provided that (i) such Liens only
serve to secure the payment of Debt arising under such Capital Lease and (ii) the
Lien encumbering the asset giving rise to the Capital Lease does not encumber
any other asset or property of any Credit Party;

 

(j)            Liens placed upon assets at the time
of acquisition thereof by Borrower or any of its Subsidiaries to secure Debt
incurred to pay all or a portion of the purchase price thereof provided that (i) the aggregate
outstanding principal amount of all such Debt secured by any such Liens shall
not exceed the amount permitted under Section 5.1(c) and (ii) in
all events, the Lien encumbering the assets so acquired does not encumber any
other asset of Borrower or any of its Subsidiaries;

 

63

 

(k)           statutory and common law landlord’s
liens under leases to which Borrower or any Subsidiary is a party, provided, that such liens are subordinated to the Obligations in an
manner reasonably satisfactory to Required Lenders or Required Lenders otherwise
affirmatively waives the requirement for such subordination;

 

(l)            Liens in favor of customs and
revenue authorities arising as a matter of law to secure payment of customs
duties in connection with importation of goods, provided
that such duties are paid and discharged in a timely manner;

 

(m)          normal and customary rights of set-off
upon deposits of cash in favor of banks and other depository institutions; and

 

(n)           Liens not otherwise permitted
pursuant to this Section 5.2 which secure obligations permitted
under this Agreement not exceeding $1,500,000 in the aggregate at any one time
outstanding.

 

Section 5.3             Contingent Obligations. 
Borrower will not, and will not permit any Subsidiary to, directly or
indirectly, create, assume, incur or suffer to exist any Contingent
Obligations, except for:

 

(a)           Contingent Obligations arising in
respect of the Debt and L/C Obligations under the Financing Documents and
Contingent Obligations arising in respect of the Third Restatement Subordinated
Debt and any guarantees by Loan Parties of obligations thereunder;

 

(b)           Contingent Obligations resulting from
endorsements for collection or deposit in the ordinary course of business;

 

(c)           Contingent Obligations outstanding on
the date of this Agreement as set forth in the Information Certificate
(including, without limitation, obligations under the Enkidu Non-Compete
Agreements);

 

(d)           Contingent Obligations incurred in
the ordinary course of business with respect to surety and appeal bonds,
performance bonds and other similar obligations not to exceed $250,000 in the
aggregate at any time outstanding;

 

(e)           Contingent Obligations arising under
indemnity agreements with title insurers to cause such title insurers to issue
to Agent mortgagee title insurance policies;

 

(f)            Contingent Obligations arising with
respect to customary indemnification obligations in favor of purchasers in
connection with dispositions permitted under Section 5.8;

 

(g)           so long as there exists no Event of
Default both immediately before and immediately after giving effect to any such
transaction, Contingent Obligations existing or arising under any Interest Rate
Contract, provided that such obligations are (or
were) entered into by Borrower or a Subsidiary in the ordinary course of
business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person and not for purposes of speculation;  and

 

64

 

 

(h)           Continent Obligations that support
Debt to the extent permitted under Sections 5.1(a) through (g) and
5.1(i).

 

Section 5.4             Restricted Distributions. 
Borrower will not, and will not permit any Subsidiary to, directly or
indirectly, declare, order, pay, make or set apart any sum for any Restricted
Distribution; provided that the foregoing shall
not restrict or prohibit wholly-owned Subsidiaries from making dividends or
distributions and shall not restrict or prohibit dividends or distributions to
Holdings (including the Third Restatement Effective Date Distribution) at such
times and in such amounts as are necessary to permit:

 

(a)           purchases of shares of (or options to
purchase shares of) equity interests in Holdings or options therefor from
directors or employees of any Credit Party upon their death, termination or
retirement, so long as (x) before and after giving effect to any such
dividend or distribution for such purpose, (i) no Event of Default shall
have occurred and be continuing and (ii) Borrower is in compliance on a
pro forma basis with the covenants set forth in Article VI
recomputed for the most recently ended quarter for which information is
available and is in compliance with all other terms and conditions of this
Agreement and (y) such purchases or payments after the date hereof do not
exceed $2,500,000 in any Fiscal Year and do not exceed $6,000,000 in the
aggregate; and

 

(b)           payment of taxes and administrative
expenses (including without limitation but subject to the provisions of this
Agreement, the payment of reasonable director fees and amounts due and payable
under the Management Agreement) payable by Holdings or reasonably estimated to
be payable (or, with respect to taxes, by the equity holders of Holdings in the
event each of Borrower and Holdings is treated as a partnership or otherwise
disregarded for income tax purposes in the amounts and at the times provided
for in the Amended and Restated Limited Liability Company Agreement dated May 13,
2004 of Holdings), provided, however, that during the existence of an Event of Default no
administrative expenses (other than amounts due and payable under the
Management Agreement, to the extent permitted to be paid pursuant to Section 5.13
hereof) may be paid by Borrower to Holdings or any equity holder thereof; and

 

(c)           Holdings to make loans to officers
and employees in connection with the purchase of shares of Holdings pursuant to
management equity plans for management and employees of any Credit Party in an
aggregate principal amount not to exceed $1,000,000 at any time outstanding, provided that the net proceeds Holdings receives from the
sale of such shares, including without limitation the proceeds of such loans,
shall promptly upon receipt by Holdings be contributed to Borrower, and provided, further, that, at the request of Agent, Holdings
shall cause such loans to be evidenced by promissory notes and shall pledge
such promissory notes to Agent as additional Collateral; and

 

(d)           the Third Restatement Stock
Redemption using proceeds of the Third Restatement Effective Date Distribution.

 

Section 5.5             Restrictive Agreements. 
Except for the Financing Documents and the Third Restatement
Subordinated Debt Documents, Borrower will not, and will not permit any
Subsidiary to, directly or indirectly (i) enter into or assume any
agreement prohibiting the creation or assumption of any Lien upon its
properties or assets, whether now owned or hereafter

 

65

 

acquired
or (ii) create or otherwise cause or suffer to exist or become effective
any consensual encumbrance or restriction of any kind on the ability of any
Subsidiary to:  (1) pay or make
Restricted Distributions to Borrower or any other Subsidiary; (2) pay any
Debt owed to Borrower or any other Subsidiary; (3) make loans or advances
to Borrower or any other Subsidiary; or (4) transfer any of its property
or assets to Borrower or any other Subsidiary.

 

Section 5.6             Anti-Terrorism Laws. 
Borrower will not, and will not permit any Subsidiary to, directly or
indirectly, knowingly enter into any material contracts with any Person listed
on the OFAC Lists.  Borrower shall
immediately notify Agent if Borrower has knowledge that Borrower or any
additional Credit Party is listed on the OFAC Lists or (i) is convicted
on, (ii) pleads nolo contendere to, (iii) is indicted on or (iv) is
arraigned and held over on charges involving money laundering or predicate
crimes to money laundering.  Borrower
will not, and will not permit any Subsidiary to, directly or indirectly engage
in or conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions
set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

Section 5.7             Consolidations, Mergers and Sales of Assets.  Borrower will not, and will not permit any
Subsidiary to, directly or indirectly (i) consolidate or merge with or
into any other Person, other than (A) a merger or consolidation of any
Subsidiary of Borrower with or into Borrower (provided
that Borrower shall be the continuing or surviving entity) or with or into any
other Subsidiary of Borrower or (B) mergers consummated to effect the
consummation of a Permitted Acquisition, or (ii) sell, lease, license  or otherwise transfer, directly or indirectly, any of its
or their assets, other than (a) sales of Inventory in the ordinary course
of their respective businesses, (b) sales or discounts of account
receivables in the ordinary course of business but only in connection with the
collection or compromise thereof, (c) dispositions of Cash Equivalents and
(d) dispositions of other assets for cash and fair value if all of the
following conditions are met:  (A) subject
to Section 2.8(c) hereof, the Net Cash Proceeds of the assets
sold or otherwise disposed of are invested in replacement or other assets used
or useful in the business of Borrower and its Subsidiaries or are otherwise
applied as required by Section 2.8(c);  (B) Borrower’s board of directors (or
comparable body) determines, in connection with the any Asset Disposition
involving a significant portion of Borrower’s property (either on one single
transaction or in a series of transactions), in good faith, that such sale or
other disposition is in the best interests of Borrower or such Subsidiary and
will not impair the ongoing viability of or change the essential character of
such Person’s business as conducted immediately prior to such sale; (C) after
giving effect to the Asset Disposition and the repayment of Debt with the
proceeds thereof, Borrower is in compliance on a pro forma basis with the
covenants set forth in Article VI recomputed for the most recently
ended quarter for which information is available and is in compliance with all
other terms and conditions of this Agreement; and (D) no Default or Event
of Default then exists or would result from such Asset Disposition.  Upon the sale of an asset permitted by this Section 5.7,
Agent shall, to the extent applicable and at the sole cost and expense of
Borrower, deliver to the Credit Parties, upon any such Credit Party’s request
such documentation as is reasonably necessary to evidence the release of the
Liens of Agent , if any, on such assets, including, without limitation
amendments or terminations of UCC financing statements, the return of stock
certificates, if any and, if applicable, the release of such Credit Party from
its obligations under the Financing Documents.

 

66

 

Section 5.8             Purchase of Assets, Investments.  Borrower will not, and will not permit any
Subsidiary to, directly or indirectly acquire any assets other than in the
ordinary course of business or as may otherwise be used or useful in the
conduct of such Person’s business as then conducted and permitted
hereunder.  Borrower will not, and will
not permit any Subsidiary to, directly or indirectly make, acquire or own any
Investment in any Person other than (a) Investments set forth on the
Information Certificate; (b) Cash Equivalents and, in the case of Foreign
Subsidiaries, similar investments customary for countries in which such Foreign
Subsidiary conducts business; (c) Investments in Domestic Subsidiaries, so
long as (i) Borrower has pledged to Agent all of the outstanding capital
stock or other equity interests of any such Domestic Subsidiary, (ii) any
such Domestic Subsidiary has Guaranteed the Obligations and secured such
Guarantee by granting in favor of Agent, for its benefit and the benefit of the
Lenders, a Lien on all or substantially all of the assets, and (iii) after
giving effect to such Investment (either singly or in the aggregate) Borrower,
DynaVox Services Inc. and Mayer-Johnson LLC shall continue to own and possess
not less than 75% of the assets owned by all Credit Parties taken as a whole
and account for not less than 75% of the Credit Parties’ gross revenues, taken
as a whole; (d) bank deposits established in accordance with Section 5.15;
(e) Investments in securities of account debtors received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of such account debtors; (f) loans to officers and employees in an
aggregate principal amount not to exceed $500,000 at any time outstanding; (g) intercompany
loans permitted under Section 5.1(d); (h) transactions
permitted under Section 5.7; (i) Guarantees to the extent
permitted by Section 5.1 or 5.3; (j) Investments in the
form of Interest Rate Contracts permitted under Section 5.3(g); (k) other
Investments not included in any of the foregoing and not exceeding $500,000 in
any given Fiscal Year of Borrower and not exceeding $2,500,000 in the aggregate
during the term of this Agreement; and (l) Investments in any Foreign
Subsidiaries or any joint venture or partnership not exceeding $2,500,000 in
any given Fiscal Year of Borrower and not exceeding $5,000,000 in the aggregate
during the term of this Agreement. 
Notwithstanding the foregoing, Borrower may acquire, or may cause a
Domestic Subsidiary to acquire, all or substantially all of the assets, or all
or substantially all of the equity securities, of any Person with the prior
written approval of Required Lenders or in connection with a Permitted
Acquisition.

 

Section 5.9             Transactions with Affiliates.  Except (i) as permitted by Section 5.13,
(ii) as otherwise disclosed in the Information Certificate, (iii) transactions
among Holdings, Borrower and any Domestic Subsidiary of Borrower, and (iv) for
transactions that are disclosed to Agent in writing in advance of being entered
into and which contain terms that are no less favorable to Borrower or any
Domestic Subsidiary of Borrower, as the case may be, than those which might be
obtained from a third party not an Affiliate of any Credit Party, Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, enter into
or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of
Borrower.

 

Section 5.10           Modification
of Organizational Documents and/or Management Agreement.  Borrower will not, and will not permit any
Subsidiary to, directly or indirectly amend or otherwise modify any
Organizational Documents of such Person in any manner that could reasonably
effect the interests of Agent or Lender, except for such amendments or other
modifications required by law and fully disclosed to Agent.  Borrower shall not amend or permit or
acquiesce to an amendment of the Management Agreement the effect of which could

 

67

 

reasonably
be expected to impose new terms or alter the existing terms thereof in a manner
materially more burdensome to Borrower or its Subsidiaries, without the prior
written consent of Agent.

 

Section 5.11           Fiscal
Year.  Borrower will not,
and will not permit any Subsidiary to, change its Fiscal Year other than a
change to cause it Fiscal Year to end on December 31 for tax compliance
purposes and provided that Borrower provide
Agent with not less than 90 days prior written notice of its intent to make
such change.

 

Section 5.12           Conduct
of Business.  Borrower
will not, and will not permit any Subsidiary to, directly or indirectly, engage
in any line of business other than those businesses engaged in on the Third
Restatement Effective Date and businesses reasonably related or incidental
thereto or which constitute a reasonable extension or expansion thereof,
including in connection with Borrower’s existing and future technology,
trademarks and patents.

 

Section 5.13           Investor
Fees.  Borrower will not,
and will not permit any Subsidiary to, directly or indirectly, pay or become
obligated to pay any management, consulting or similar advisory fees or other
amounts to or for the account of any Investor or any Affiliate of any Investor
except pursuant to the Management Agreement as it exists on the Third
Restatement Effective Date, provided
that any and all amounts due, owing or payable thereunder, howsoever
characterized (but excluding reimbursement for out of pocket expenses), shall
not exceed the greater of (i) $300,000 per Fiscal Year of Borrower and (ii) an
amount equal to 1.5% of Borrower’s EBITDA for the most recent period for which
a Compliance Certificate was delivered to Agent pursuant to the terms of this
Agreement; and provided, further
that any amounts paid or payable by Borrower representing reimbursement for out
of pocket expenses shall not exceed an amount equal to 30% of the amounts
otherwise paid or payable under clauses (i) or (ii) above.

 

Section 5.14           Lease
Payments.  Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, incur or
assume (whether pursuant to a Guarantee or otherwise) any liability for rental
payments under a lease with a lease term of one year or more if, after giving
effect thereto, the aggregate amount of minimum lease payments that Borrower
and its Subsidiaries have so incurred or assumed will exceed, on a consolidated
basis, $2,000,000 for any calendar year under all such leases (excluding
Capital Leases).

 

Section 5.15           Bank
Accounts.  Except for
Exempted Accounts, Borrower will not, and will not permit any Domestic
Subsidiary to, directly or indirectly, establish any new bank account without
prior written notice to Agent and unless Agent, Borrower or such Subsidiary and
the bank at which the account is to be opened enter into a control agreement
regarding such bank account pursuant to which such bank acknowledges the
security interest of Agent in such bank account, agrees to comply with
instructions originated by Agent directing disposition of the funds in the bank
account without further consent from Borrower, and agrees to subordinate and
limit any security interest the bank may have in the bank account on terms
reasonably satisfactory to Agent; provided
that, if Governmental Payors are to make payments into such account, Borrower
or such Domestic Subsidiary shall instead establish and implement an account
control and cash management system substantially in accordance with Section 3.24.  There shall be no more than three Exempted
Accounts in existence at any given time, and with respect to

 

68

 

each
Exempted Account Borrower shall deliver or cause the applicable bank to
deliver, promptly upon Agent’s request, a copy of the most current monthly bank
statement to Agent.   If, at any time,
either (i) any balance in any Exempted Account exceeds $10,000 in
contravention of the terms hereof or (ii) on two or more occasions more
than 5 days have elapsed since Agent has requested a copy of a bank statement
with respect to an existing Exempted Account without having received a copy of
such statement, then Borrower or such Subsidiary shall promptly transfer the
amounts in the applicable Exempted Account to an account with respect to which
Agent has entered into an acceptable account control agreement and at Agent’s
sole discretion and direction (i) close the applicable Exempted Account, (ii) close
all Exempted Accounts, in which event Borrower then shall be prohibited from
opening or maintaining any Exempted Accounts, and/or (iii) promptly enter
into and cause the applicable bank to enter into control agreements with
respect to all existing Exempted Accounts, as described above.  The failure to promptly comply with the
provisions of the immediately preceding sentence of this Section 5.15
with respect to Exempted Accounts shall constitute an immediate Event of
Default.  Nothing herein is intended or
shall be construed (by negative implication or otherwise) to waive any
requirement that any other existing or hereafter acquired account of any
Borrower or any Subsidiary thereof be subject to control agreements as
otherwise required hereunder.

 

Section 5.16           Payments and Modifications
of Certain Documents. 
Borrower will not, and will not permit any Subsidiary to do any of the
following:

 

(a)           waive or otherwise modify any term of
any Third Restatement Equity Documents or Third Restatement Stock Redemption
Documents in a manner which would be reasonably expected to materially
adversely affect the interests of Agent or any other Secured Party under the
Financing Documents;

 

(b)           waive or otherwise modify any term of
the Third Restatement Subordinated Note Documents if such change or amendment
would breach the terms of the Third Restatement Subordination Agreement; or

 

(c)           directly or indirectly declare, pay,
make or set aside any amount for payment in respect of Third Restatement
Subordinated Debt, except for regularly scheduled and mandatory payments of
principal and interest (but no voluntary prepayments) and other payments in
respect of Third Restatement Subordinated Debt made in full compliance with and
to the extent expressly permitted by the Third Restatement Subordination
Agreement.

 

ARTICLE
VI

FINANCIAL COVENANTS

 

Borrower
agrees that, so long as any Credit Exposure exists:

 

Section 6.1             Capital Expenditures. 
Borrower will not permit the aggregate amount of Capital Expenditures
for any period set forth below to exceed the amount set forth below for such
period:

 

69

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  Fiscal Year ending on or
  about June 30, 2009

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
  Fiscal Year ending on or about June 30, 2010

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  Fiscal Year ending on or about June 30, 2011

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
  Fiscal Year ending on or about June 30, 2012

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
  Fiscal Year ending on or about June 30, 2013

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
  Fiscal Year ending on or about June 30, 2014

  and as of the end of each Fiscal Year thereafter

  	
   

  	
  $

  	
  8,000,000

  	
   

  

 

If
Borrower does not utilize the entire amount of Capital Expenditures permitted
in any period set forth above, Borrower may carry forward to the immediately
succeeding period only, one hundred percent (100%) of such unutilized amount
(with Capital Expenditures made by Borrower in such succeeding period applied
last to such carried forward amount).

 

Section 6.2             Reserved.

 

Section 6.3             Fixed Charge Coverage Ratio.  Borrower will not permit the Fixed Charge
Coverage Ratio for the twelve (12) month period ending on any date set forth
below to be less than the ratio set forth below for such date:

 

	
  Date

  	
   

  	
  Ratio

  
	
  September 30,
  2008

  	
   

  	
  1.10

  
	
  December 31,
  2008

  	
   

  	
  1.10

  
	
  March 31,
  2009

  	
   

  	
  1.10

  
	
  June 30,
  2009

  	
   

  	
  1.10

  
	
   

  	
   

  	
   

  
	
  September 30,
  2009

  	
   

  	
  1.15

  
	
  December 31,
  2009

  	
   

  	
  1.15

  
	
  March 31,
  2010

  	
   

  	
  1.15

  
	
  June 30,
  2010

  	
   

  	
  1.15

  
	
   

  	
   

  	
   

  
	
  September 30,
  2010

  	
   

  	
  1.20

  
	
  December 31,
  2010

  	
   

  	
  1.20

  
	
  March 31,
  2011

  	
   

  	
  1.20

  
	
  June 30,
  2011

  	
   

  	
  1.20

  
	
   

  	
   

  	
   

  
	
  September 30,
  2011

  	
   

  	
  1.25

  
	
  December 31,
  2011

  	
   

  	
  1.25

  
	
  March 31,
  2012

  	
   

  	
  1.25

  
	
  June 30,
  2012

  	
   

  	
  1.25

  
	
   

  	
   

  	
   

  
	
  September 30, 2012 and at the end of each
  Fiscal Quarter thereafter

  	
   

  	
  1.30

  

 

Section 6.4             Net Senior Debt to EBITDA Ratio.  Borrower will not permit the ratio of (i) Net
Senior Debt on any date set forth below to (ii) EBITDA for the twelve (12)
month period ending on such date to exceed the ratio set forth below opposite
such date:

 

70

 

	
  Date

  	
   

  	
  Ratio

  
	
  September 30,
  2008

  	
   

  	
  3.75

  
	
  December 31,
  2008

  	
   

  	
  3.75

  
	
  March 31,
  2009

  	
   

  	
  3.60

  
	
  June 30,
  2009

  	
   

  	
  3.00

  
	
   

  	
   

  	
   

  
	
  September 30,
  2009

  	
   

  	
  2.75

  
	
  December 31,
  2009

  	
   

  	
  2.50

  
	
  March 31,
  2010

  	
   

  	
  2.25

  
	
  June 30, 2010 and at the end of each Fiscal
  Quarter thereafter

  	
   

  	
  2.00

  

 

Section 6.5             Net Total Debt to EBITDA Ratio.  Borrower will not permit the ratio of (i) Net
Total Debt on any date set forth below to (ii) EBITDA for the twelve (12)
month period ending on such date to exceed the ratio set forth below opposite
such date:

 

	
  Date

  	
   

  	
  Ratio

  
	
  September 30,
  2008

  	
   

  	
  5.75

  
	
  December 31,
  2008

  	
   

  	
  5.75

  
	
  March 31,
  2009

  	
   

  	
  5.60

  
	
  June 30,
  2009

  	
   

  	
  5.00

  
	
   

  	
   

  	
   

  
	
  September 30,
  2009

  	
   

  	
  4.75

  
	
  December 31,
  2009

  	
   

  	
  4.50

  
	
  March 31,
  2010

  	
   

  	
  4.25

  
	
  June 30, 2010 and at the end of each Fiscal
  Quarter thereafter

  	
   

  	
  4.00

  

 

ARTICLE
VII

CONDITIONS TO LOANS AND LETTERS
OF CREDIT

 

Section 7.1             Conditions
Precedent to Initial Loans and Letters of Credit.  The obligation of each Lender to make any
Loan on the Third Restatement Effective Date and the obligation of each L/C Issuer
to Issue any Letter of Credit on the Third Restatement Effective Date is
subject to the satisfaction or due waiver of each of the following conditions:

 

(a)           Third Restatement Equity
Investment and Third Restatement Subordinated Debt.  Agent shall be reasonably satisfied (A) with
the equity structure of Holdings and Borrower with the expectation that such
structure will provide for Holdings owning 100% of Borrower and Investors
owning, directly or indirectly, at least 59% of the voting equity interests of
Holdings and (B) that as of the Third Restatement Effective Date Borrower
has received gross cash proceeds of at least $32,000,000 from the incurrence of
Third Restatement Subordinated Debt and equity contributions from the Third
Restatement Equity Investors and that all of the proceeds thereof, together
with a portion of the proceeds of the Loans hereunder in an aggregate amount
not to exceed $3,000,000, have been used (or will substantially
contemporaneously with the making of the initial Loans hereunder) to enable
Holdings to consummate the Third Restatement

 

71

 

Stock
Redemption or applied to the payment of transaction fees and expenses incurred
in connection with the Related Transactions.

 

(b)           Absence of Litigation.  There shall not exist any action, suit,
investigation, litigation or proceeding pending or, to the knowledge of a
Credit Party, threatened in any court or before any arbitrator or Governmental
Authority that has or could reasonably be expected to have a Material Adverse
Effect on the Operative Documents or the transactions contemplated thereby.

 

(c)           Receipt of Historical Financial
Statements.  Agent shall have
received and be reasonably satisfied with interim unaudited monthly financial statements
of Borrower and its Subsidiaries for each month ended after December 31,
2007 and at least 30 days before the Third Restatement Effective Date.

 

(d)           Receipt of Pro Forma Financial
Statements.  Agent shall have
received and be reasonably satisfied with a pro forma estimated balance sheet
of Holdings and its Subsidiaries at the Third Restatement Effective Date after
giving effect to the transactions contemplated by the Operative Documents.

 

(e)           Outstanding Debts and Liens.  Agent shall be satisfied in its reasonable
judgment that Holdings’, Borrower’s and their respective Subsidiaries’ existing
Debts (other than under the Financing Documents and the Third Restatement
Subordinated Note Documents) and Liens (other than under the Financing
Documents) do not exceed $2,500,000 on the Third Restatement Effective Date.

 

(f)            Minimum EBITDA; Maximum Leverage.
EBITDA of Borrower for the twelve month period most recently ended prior to the
Third Restatement Effective Date for which financial statements have been
delivered pursuant to Section 7.1(c) shall be no less than
$17,500,000.  The ratio of Net Total Debt
on the Third Restatement Effective Date to EBITDA for the twelve month period
most recently ended prior to the Third Restatement Effective Date for which
financial statements have been delivered pursuant to Section 7.1(c) after
giving effect to the initial funding of the Loans and the other transactions
contemplated by the Operative Documents, but disregarding any borrowings under
the Revolving Facility to finance the payment of any upfront fee specified in
the Fee Letter shall not exceed 5.00 to 1.00 and the ratio of Net Senior Debt
on the Third Restatement Effective Date to EBITDA for the twelve month period
most recently ended prior to the Third Restatement Effective Date for which
financial statements have been delivered pursuant to Section 7.1(c) after
giving effect to the initial funding of the Loans and the other transactions
contemplated by the Operative Documents, but disregarding any borrowings under
the Revolving Facility to finance the payment of any upfront fee specified in
the Fee Letter shall not exceed 3.00 to 1.00.

 

(g)           Evidence of Solvency.  Agent shall have received a certificate of
the Chief Financial Officer of Borrower certifying that Loan Parties, on a
consolidated basis, after incurring the Debt contemplated by the Financing
Documents, (i) own and will own assets the fair saleable value of which
are (A) greater than the total amount of their liabilities (including
contingent liabilities) and (B) greater than the amount that will be
required to pay the probable liabilities of their then existing debts as they
become absolute and matured considering all

 

72

 

financing
alternatives and potential asset sales reasonably available to them; (ii) have
capital that is not unreasonably small in relation to their businesses as
presently conducted or after giving effect to any contemplated transaction; and
(iii) do not intend to incur and do not believe that they will incur debts
beyond their ability to pay such debts as they become due.

 

(h)           No Material Adverse Effect.  Since December 31, 2007, there have been
no events, circumstances, developments or other changes in facts that would, in
the aggregate, have a Material Adverse Effect.

 

(i)            Fee and Expenses.  There shall have been paid to Agent, for the
account of Agent, its Related Persons, any L/C Issuer or any Lender, as the
case may be, all fees and all reimbursements of costs or expenses, in each case
then due and payable under any Financing Document for which invoices have been
submitted prior to the Third Restatement Effective Date.

 

(j)            Other Documents.  Agent shall have received such other
documents, instruments and/or agreements as Agent may reasonably request.

 

Section 7.2             Conditions
Precedent to Each Loan and Letter of Credit.  The obligation of each Lender on any date
(including the Third Restatement Effective Date) to make any Loan and of each
L/C Issuer on any date (including the Third Restatement Effective Date) to
Issue any Letter of Credit is subject to the satisfaction of each of the
following conditions precedent:

 

(a)           Request.  Agent (and, in the case of any Issuance, the
relevant L/C Issuer) shall have received, to the extent required by Article II,
a written, timely and duly executed and completed Notice of Borrowing,
Swingline Request or, as the case may be, L/C Request.

 

(b)           Representations and Warranties; No
Defaults.  The following statements
shall be true on such date, both before and after giving effect to such Loan
or, as applicable, such Issuance:  (i) the
representations and warranties set forth in any Financing Document shall be
true and correct (A) if such date is the Third Restatement Effective Date,
on and as of such date and (B) otherwise, in all material respects on and
as of such date or, to the extent such representations and warranties expressly
relate to an earlier date, on and as of such earlier date and (ii) no
Default or Event of Default shall be continuing.

 

The
representations and warranties set forth in any Notice of Borrowing, Swingline
Request or L/C Request (or any certificate delivered in connection therewith)
shall be deemed to be made again on and as of the date of the relevant Loan or
Issuance and the acceptance of the proceeds thereof or of the delivery of the
relevant Letter of Credit.

 

Section 7.3             Determinations
of Initial Borrowing Conditions. 
For purposes of determining compliance with the conditions specified in Section 7.1,
each Lender shall be deemed to be satisfied with each document and each other
matter required to be satisfactory to such Lender unless, prior to the Third
Restatement Effective Date, Agent receives written notice from such Lender
specifying such Lender’s objections and such Lender has not made available its
Pro Rata Share of any Borrowing scheduled to be made on the Third Restatement
Date.

 

73

 

 

ARTICLE
VIII

EVENTS OF DEFAULT

 

Section 8.1             Events of Default. 
For purposes of the Financing Documents, the occurrence of any of the
following conditions and/or events, whether voluntary or involuntary, by
operation of law or otherwise, shall constitute an “Event of Default”:

 

(a)           Borrower shall fail (i) to pay
when due any principal payment required hereunder or (ii) to pay any
interest, premium or fee under any Financing Document or any other amount
payable under any Financing Document within two (2) days of when otherwise
due;

 

(b)           Borrower shall fail to observe or
perform any covenant contained in (i) Section 4.1,  Section
4.7,  Section
4.9,  Section
4.10,  Section
4.13,  Section  4.14,  Section
4.16,  Article
V,  or
Article VI or (ii) Section 4.4 and, solely with respect to
clause (ii), to the extent such failure is not remedied or waived within
fifteen (15) days after, in each case of clauses (i) and (ii), the earlier
of (1) receipt by Borrower of notice from Agent or Required Lenders of
such default or (2) actual knowledge of Borrower or any other Credit Party
of such default;

 

(c)           any Loan Party defaults in the
performance of or compliance with any term contained in this Agreement or in
any other Financing Document (other than occurrences described in other provisions
of this Section 8.1 for which a different grace or cure period is
specified or which constitute immediate Events of Default) and such default is
not remedied or waived within thirty (30) days after the earlier of (1) receipt
by Borrower of notice from Agent or Required Lenders of such default or (2) actual
knowledge of Borrower or any other Credit Party of such default;

 

(d)           any representation, warranty,
certification or statement made by any Credit Party or any other Person in any
Financing Document or in any certificate, financial statement or other document
delivered pursuant to any Financing Document is incorrect in any material
respect when made (or deemed made);

 

(e)           (i) failure of any Credit Party
to pay when due or within any applicable grace period any principal, interest
or other amount on Debt (other than the Loans) or in respect of any Interest
Rate Contract, or the occurrence of any breach, default, condition or event
with respect to any Debt (other than the Obligations or any Hedging Agreement),
if the effect of such failure or occurrence is to cause or to permit the holder
or holders of any such Debt, or the counterparty under any such Interest Rate
Contract, to cause, Debt or other liabilities having an individual principal
amount in excess of $1,000,000 or having an aggregate principal amount in
excess of $1,000,000 to become or be declared due prior to its stated maturity,
or (ii) the occurrence of any breach or default under any terms or
provisions of any Third Restatement Subordinated Debt Document;

 

(f)            any Credit Party shall commence a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall consent to any such relief or to the
appointment of or taking possession by any such

 

74

 

official
in an involuntary case or other proceeding commenced against it, or shall make
a general assignment for the benefit of creditors, or shall fail generally to
pay its debts as they become due, or shall take any corporate action to
authorize any of the foregoing;

 

(g)           an involuntary case or other
proceeding shall be commenced against any Credit Party seeking liquidation,
reorganization or other relief with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, and such
involuntary case or other proceeding shall remain undismissed and unstayed for
a period of sixty (60) days; or an order for relief shall be entered against
any Credit Party under the federal bankruptcy laws as now or hereafter in
effect;

 

(h)           (1) institution of any steps by
any Person to terminate a Pension Plan if as a result of such termination any
Credit Party or any member of the Controlled Group could be required to make a
contribution to such Pension Plan, or could incur a liability or obligation to
such Pension Plan, in excess of $250,000, (2) a contribution failure
occurs with respect to any Pension Plan sufficient to give rise to a Lien under
Section 302(f) of ERISA, or (3) there shall occur any withdrawal
or partial withdrawal from a Multiemployer Pension Plan and the withdrawal
liability (without un-accrued interest) to Multiemployer Pension Plans as a
result of such withdrawal (including any outstanding withdrawal liability that
any Credit Party or any member of the Controlled Group have incurred on the
date of such withdrawal) exceeds $250,000;

 

(i)            one or more judgments or orders for
the payment of money (not covered by insurance) aggregating in excess of
$1,000,000 shall be rendered against any or all Credit Parties and such
judgments or orders shall continue unsatisfied and un-stayed for a period of
thirty (30) days;

 

(j)            (1) Investors shall
collectively cease to, directly or indirectly, own and control at least 85% of
the outstanding equity interests of Holdings, (2) Vestar Capital Partners
IV, L.P ceases to directly or indirectly own and control that percentage of the
outstanding voting equity interests of Holdings necessary at all times to elect
a majority of the board of directors or management committee (or similar
governing body) of Holdings and to direct the management policies and decisions
of Holdings, (3) Holdings shall cease to directly own and control one
hundred percent (100%) of each class of the outstanding equity interests of
Borrower, (4) except to the extent permitted under Section 5.7,
Borrower shall cease to, directly or indirectly, own and control one hundred
percent (100%) of each class of the outstanding equity interests of each
Subsidiary, including, without limitation, Mayer-Johnson LLC and DynaVox
International, (5) DynaVox International shall cease to, directly or
indirectly, own and control one hundred percent (100%) of each class of the
outstanding equity interests of each of DynaVox Canada and DynaVox UK, or (6) any
“Change of Control”, “Change in Control”, or term of similar import occurs
under any Third Restatement Subordinated Debt Document;

 

(k)           [Reserved];

 

(l)            except in respect of an immaterial
portion of the Collateral, at any time after the execution and delivery of the
Security Documents any Lien created by any of the Security Documents shall at
any time fail to constitute a valid and perfected Lien on all of the Collateral

 

75

 

purported
to be secured thereby, subject to no prior or equal Lien except Permitted Liens
or as may otherwise be expressly permitted by such Security Document, or any
Credit Party shall so assert in writing;

 

(m)          any Credit Party shall be prohibited
or otherwise materially restrained from conducting the business theretofore
conducted by it by virtue of any casualty, any labor strike, any determination,
ruling, decision, decree or order of any court or regulatory authority of
competent jurisdiction or any other event and such casualty, labor strike,
determination, ruling, decision, decree, order or other event remains un-stayed
and in effect for any period of thirty (30) days;

 

(n)           any of the Operative Documents shall
for any reason fail to constitute the valid and binding agreement of any party
thereto, or any such party shall so assert in writing and such failure could
reasonably be expected to have a Material Adverse Effect;

 

(o)           any Holding Company shall incur any
Debt and use the proceeds of such incurrence to make dividend, payment or other
distribution with respect to the holders of its equity interests; or

 

(p)           either (i) Holdings engages in
any type of business activity other than the ownership of the capital stock of
Borrower, and performance of its obligations under Operative Documents to which
it is a party and other activities directly related thereto and as permitted
under the Financing Documents, or (ii) DynaVox International engages in
any type of business activity other than the ownership of the capital stock of
DynaVox Canada and DynaVox UK, and performance of its obligations under
Operative Documents to which it is a party and other activities directly
related thereto or otherwise permitted hereby.

 

Section 8.2             Remedies.  During the continuance of any Event of
Default, Agent may, and, at the request of the Required Lenders, shall, in each
case by notice to Borrower and in addition to any other right or remedy
provided under any Financing Document or by any applicable Law, do each of the
following:  (a) declare all or any
portion of the Commitments terminated, whereupon the Commitments shall
immediately be reduced by such portion or, in the case of a termination in
whole, shall terminate together with any obligation any Lender may have
hereunder to make any Loan and any L/C Issuer may have hereunder to Issue any
Letter of Credit or (b) declare immediately due and payable all or part of
any Obligation under the Financing Documents (including any accrued but unpaid
interest thereon), whereupon the same shall become immediately due and payable,
without presentment, demand, protest or further notice or other requirements of
any kind, all of which are hereby expressly waived by Borrower (and, to the
extent provided in any other Financing Document, other Credit Parties); provided, however, that,
effective immediately upon the occurrence of the Events of Default specified in
Section 8.1(f) or 8.1(g), (i) the Commitments of
each Lender to make Loans and the commitment of each L/C Issuer to Issue
Letters of Credit shall each automatically be terminated and (ii) each
Obligation under the Financing Documents (including in each case any accrued
all accrued but unpaid interest thereon) shall automatically become and be due
and payable, without presentment, demand, protest or further notice or other
requirement of any kind, all of which are hereby expressly waived by Borrower
(and, to the extent provided in any other Financing Document, any other Credit
Party).

 

76

 

Section 8.3             Cash Collateral.  If
(i) any Event of Default specified in Section 8.1(f) or 8.1(g) shall
occur, (ii) the Obligations shall have otherwise been accelerated pursuant
to Section 8.2 or (iii) the Revolving Loan Commitment shall
have been terminated pursuant to Section 8.2, then without any
request or the taking of any other action by Agent or the Lenders, Borrower
shall immediately comply with the provisions of Section 8.4 with
respect to the deposit of cash collateral to secure the existing L/C
Obligations and future payment of related fees.

 

Section 8.4             Actions in Respect of Letters of Credit.  At any time (i) upon the Scheduled
Revolving Loan Termination Date, (ii) after the Scheduled Revolving Loan
Termination Date when the aggregate funds on deposit in L/C Cash Collateral
Accounts shall be less than 105% of the L/C Obligations for all Letters of
Credit at such time and (iii) as required by Section 2.12,
Borrower shall pay to Agent in immediately available funds at Agent’s office
referred to in Section 11.11, for deposit in a L/C Cash Collateral
Account, the amount required so that, after such payment, the aggregate funds
on deposit in the L/C Cash Collateral Accounts equals or exceeds 105%  of the L/C Obligations for all Letters of Credit at such
time (not to exceed, in the case of clause (iii) above, the payment to be
applied pursuant to Section 2.12 to provide cash collateral for
Letters of Credit).

 

ARTICLE
IX

[RESERVED]

 

ARTICLE
X

AGENT

 

Section 10.1           Appointment and Duties.  (a)  Appointment of Agent.  Each Lender and each L/C Issuer hereby
appoints GE BFS (together with any successor Agent pursuant to Section 10.9)
as Agent hereunder and authorizes Agent to (i) execute and deliver the
Financing Documents and accept delivery thereof on its behalf from any Credit
Party, (ii) take such action on its behalf and to exercise all rights,
powers and remedies and perform the duties as are expressly delegated to Agent
under such Financing Documents and (iii) exercise such powers as are
reasonably incidental thereto.

 

(b)           Duties as Collateral and
Disbursing Agent.  Without limiting
the generality of clause (a) above, each Lender and each other
Secured Party hereby agrees that Agent shall have the sole and exclusive right
and authority (to the exclusion of the Lenders and L/C Issuers), and is hereby
authorized, to (i) act as the disbursing and collecting agent for the
Lenders and the L/C Issuers with respect to all payments and collections
arising in connection with the Financing Documents (including in any proceeding
described in Section 8.1(f) or (g) or any other
bankruptcy, insolvency or similar proceeding), and each Person making any payment
in connection with any Financing Document to any Secured Party is hereby
authorized to make such payment to Agent, (ii) file and prove claims and
file other documents necessary or desirable to allow the claims of the Secured
Parties with respect to any Obligation in any proceeding described in Section 8.1(f) or
(g) or any other bankruptcy, insolvency or similar proceeding (but not
to vote, consent or otherwise act on behalf of such Secured Party), (iii) act
as collateral agent for each Secured Party for purposes of the perfection of
all Liens created by such agreements and all other purposes stated therein, (iv) manage,
supervise and otherwise deal with the Collateral, (v) take such other
action as is necessary or desirable to maintain the perfection and priority of

 

77

 

the
Liens created or purported to be created by the Financing Documents, (vi) except
as may be otherwise specified in any Financing Document, exercise all remedies
given to Agent and the other Secured Parties with respect to the Collateral,
whether under the Financing Documents, applicable Law or otherwise and (vii) execute
any amendment, consent or waiver under the Financing Documents on behalf of any
Lender that has consented in writing to such amendment, consent or waiver; provided that Agent hereby appoints, authorizes and directs
each Lender and L/C Issuer to act as collateral sub-agent for Agent, the
Lenders and the L/C Issuers for purposes of the perfection of all Liens with
respect to the Collateral, including any deposit account maintained by a Credit
Party with, and cash and Cash Equivalents held by, such Lender or L/C Issuer,
and may further authorize and direct the Lenders and the L/C Issuers to take
further actions as collateral sub-agents for purposes of enforcing such Liens
or otherwise to transfer the Collateral subject thereto to Agent, and each
Lender and L/C Issuer hereby agrees to take such further actions to the extent,
and only to the extent, so authorized and directed.

 

(c)           Limited Duties.  Under the Financing Documents, Agent (i) is
acting solely on behalf of the Lenders and the L/C Issuers (except to the
limited extent provided in Section 2.14(b) with respect to the
Register and in Section 10.11), with duties that are entirely
administrative in nature, notwithstanding the use of the defined term “Agent”,
the terms “agent”, “Agent” and “collateral agent” and similar terms in any
Financing Document to refer to Agent, which terms are used for title purposes
only, (ii) is not assuming any obligation under any Financing Document
other than as expressly set forth therein or any role as agent, fiduciary or
trustee of or for any Lender, L/C Issuer or any other Secured Party and (iii) shall
have no implied functions, responsibilities, duties, obligations or other
liabilities under any Financing Document, and each Lender and L/C Issuer hereby
waives and agrees not to assert any claim against Agent based on the roles,
duties and legal relationships expressly disclaimed in clauses (i) through
(iii) above.

 

Section 10.2           Binding Effect.  Each Lender and each L/C Issuer agrees that (i) any
action taken by Agent or the Required Lenders (or, if expressly required or
permitted hereby, a greater or lesser proportion of the Lenders) in accordance
with the provisions of the Financing Documents, (ii) any action taken by
Agent in reliance upon the instructions of Required Lenders (or, where so
required or permitted, as the case may be, such greater or lesser proportion)
and (iii) the exercise by Agent or the Required Lenders (or, where so
required or permitted, as the case may be, such greater or lesser proportion)
of the powers set forth herein or therein, together with such other powers as
are reasonably incidental thereto, shall be authorized and binding upon all of
the Secured Parties.

 

Section 10.3           Use of Discretion.  (a)  No Action without Instructions.  Agent shall not be required to exercise any
discretion or take, or to omit to take, any action, including with respect to
enforcement or collection, except any action it is required to take or omit to
take (i) under any Financing Document or (ii) pursuant to
instructions from the Required Lenders (or, where expressly required or
permitted, as the case may be, by the terms of this Agreement, a greater or
lesser proportion of the Lenders).

 

(b)           Right
Not to Follow Certain Instructions. 
Notwithstanding clause (a) above, Agent shall not be required to
take, or to omit to take, any action (i) unless, upon demand, Agent
receives an indemnification satisfactory to it from the Lenders (or, to the
extent applicable and

 

78

 

acceptable
to Agent, any other Secured Party) against all liabilities that, by reason of
such action or omission, may be imposed on, incurred by or asserted against
Agent or any Related Person thereof or (ii) that is, in the opinion of
Agent or its counsel, contrary to any Financing Document or applicable Law.

 

Section 10.4           Delegation of Rights and Duties.  Agent may, upon any term or condition it
specifies, delegate or exercise any of its rights, powers and remedies under,
and delegate or perform any of its duties or any other action with respect to,
any Financing Document by or through any trustee, co-agent, employee,
attorney-in-fact and any other Person (including any Secured Party).  Any such Person shall benefit from this Article X
to the extent provided by Agent.

 

Section 10.5           Reliance and Liability.  (a)  Agent may, without incurring any
liability hereunder, (i) treat the payee of any Note as its holder until
such Note has been assigned in accordance with Section 11.2(e), (ii) rely
on the Register to the extent set forth in Section 2.14, (iii) consult
with any of its Related Persons and, whether or not selected by it, any other
advisors, accountants and other experts (including advisors to, and accountants
and experts engaged by, any Credit Party) and (iv) rely and act upon any
document and information (including those transmitted by Electronic
Transmission) and any telephone message or conversation, in each case believed
by it to be genuine and transmitted, signed or otherwise authenticated by the
appropriate parties.

 

(b)           None
of Agent and its Related Persons shall be liable for any action taken or
omitted to be taken by any of them under or in connection with any Financing
Document, and each Lender, L/C Issuer, and Borrower hereby waive and shall not
assert (and Borrower shall cause each other Credit Party to waive and agree not
to assert) any right, claim or cause of action based thereon,
except to the extent of liabilities resulting from the bad faith, gross
negligence or willful misconduct of Agent or, as the case may be, such Related
Person (each as determined by a court of competent jurisdiction) in connection
with the duties expressly set forth herein. 
Without limiting the foregoing, Agent:

 

(i)            shall
not be responsible or otherwise incur liability for any action or omission
taken in reliance upon the instructions of the Required Lenders or for the
actions or omissions of any of its Related Persons selected with reasonable
care (other than employees, officers and directors of Agent, when acting on
behalf of Agent);

 

(ii)           shall
not be responsible to any Secured Party for the due execution, legality,
validity, enforceability, effectiveness, genuineness, sufficiency or value of,
or the attachment, perfection or priority of any Lien created or purported to
be created under or in connection with, any Financing Document;

 

(iii)          makes
no warranty or representation, and shall not be responsible, to any Secured
Party for any statement, document, information, representation or warranty made
or furnished by or on behalf of any Related Person or any Credit Party in
connection with any Financing Document or any transaction contemplated therein
or any other document or information with respect to any Credit Party, whether
or not transmitted or (except for documents expressly required under any
Financing Document to be transmitted to the

 

79

 

Lenders) omitted to be transmitted by Agent, including as to
completeness, accuracy, scope or adequacy thereof, or for the scope, nature or
results of any due diligence performed by Agent in connection with the
Financing Documents; and

 

(iv)          shall
not have any duty to ascertain or to inquire as to the performance or
observance of any provision of any Financing Document, whether any condition
set forth in any Financing Document is satisfied or waived, as to the financial
condition of any Credit Party or as to the existence or continuation or
possible occurrence or continuation of any Default or Event of Default and
shall not be deemed to have notice or knowledge of such occurrence or
continuation unless it has received a notice from Borrower, any Lender or L/C Issuer
describing such Default or Event of Default clearly labeled “notice of default”
(in which case Agent shall promptly give notice of such receipt to all
Lenders);

 

and,
for each of the items set forth in clauses (i) through (iv) above,
each Lender and each other Secured Party hereby waives and agrees not to assert
any right, claim or cause of action it might have against Agent based thereon.

 

Section 10.6           Agent Individually.  Agent and its Affiliates may make loans and
other extensions of credit to, acquire equity securities of, engage in any kind
of business with, any Credit Party or Affiliate thereof as though it were not
acting as Agent and may receive separate fees and other payments therefor.  To the extent Agent or any of its Affiliates
makes any Loan or otherwise becomes a Lender hereunder, it shall have and may
exercise the same rights and powers hereunder and shall be subject to the same
obligations and liabilities as any other Lender and the terms “Lender”, “Revolving
Loan Lender”, “Term Loan Lender”, “Required Lender”, “Required Revolving Loan
Lender” and “Required Term Loan Lender” and any similar terms shall, except
where otherwise expressly provided in any Financing Document, include, without
limitation, Agent or such Affiliate, as the case may be, in its individual
capacity as Lender, Revolving Loan Lender, Term Loan Lender or as one of the
Required Lenders, Required Revolving Loan Lenders or Required Term Loan Lenders
respectively.

 

Section 10.7           Lender Credit Decision.  Each Lender and each L/C Issuer acknowledges
that it shall, independently and without reliance upon Agent, any Lender or L/C
Issuer or any of their Related Persons or upon any document solely or in part
because such document was transmitted by Agent or any of its Related Persons,
conduct its own independent investigation of the financial condition and
affairs of each Credit Party and make and continue to make its own credit
decisions in connection with entering into, and taking or not taking any action
under, any Financing Document or with respect to any transaction contemplated
in any Financing Document, in each case based on such documents and information
as it shall deem appropriate.  Except for
documents expressly required by any Financing Document to be transmitted by
Agent to the Lenders or L/C Issuers, Agent shall not have any duty or
responsibility to provide any Lender or L/C Issuer with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of any Credit Party or any Affiliate of
any Credit Party that may come in to the possession of Agent or any of its
Related Persons.

 

80

 

Section 10.8           Expenses; Indemnities.  (a)  Each Lender agrees to reimburse
Agent and each of its Related Persons (to the extent not reimbursed by any
Credit Party) promptly upon demand for such Lender’s Pro Rata Share with
respect to the Facilities of any costs and expenses (including fees, charges
and disbursements of financial, legal and other advisors and Other Taxes paid
in the name of, or on behalf of, any Credit Party) that may be incurred by
Agent or any of its Related Persons in connection with the preparation,
syndication, execution, delivery, administration, modification, consent, waiver
or enforcement (whether through negotiations, through any work-out, bankruptcy,
restructuring or other legal or other proceeding or otherwise) of, or legal
advice in respect of its rights or responsibilities under, any Financing Document.

 

(b)           Each Lender further agrees to
indemnify Agent and each of its Related Persons (to the extent not reimbursed
by any Credit Party), from and against such Lender’s aggregate Pro Rata Share
with respect to the Facilities of the liabilities (including taxes, interests
and penalties imposed for not properly withholding or backup withholding on
payments made to on or for the account of any Lender) that may be imposed on,
incurred by or asserted against Agent or any of its Related Persons in any
matter relating to or arising out of, in connection with or as a result of any
Financing Document, any Operative Document or any other act, event or
transaction related, contemplated in or attendant to any such document, or, in
each case, any action taken or omitted to be taken by Agent or any of its
Related Persons under or with respect to any of the foregoing; provided that no Lender shall be liable to Agent or any of
its Related Persons to the extent such liability has resulted primarily from
the bad faith, gross negligence or willful misconduct of Agent or, as the case
may be, such Related Person, as determined by a court of competent
jurisdiction.

 

Section 10.9           Resignation of Agent or
L/C Issuer.  (a) 
Agent may resign at any time by delivering notice of such
resignation to the Lenders and Borrower, effective on the date set forth in
such notice or, if not such date is set forth therein, upon the date such
notice shall be effective.  If Agent
delivers any such notice, the Required Lenders shall have the right to appoint
a successor Agent.  If, within 30 days
after the retiring Agent having given notice of resignation, no successor Agent
has been appointed by the Required Lenders that has accepted such appointment,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent from among the Lenders.  Each
appointment under this clause (a) shall be subject to the prior
consent of Borrower, which may not be unreasonably withheld but shall not be
required during the continuance of an Event of Default.

 

(b)           Effective immediately upon its
resignation, (i) the retiring Agent shall be discharged from its duties
and obligations under the Financing Documents, (ii) the Lenders shall
assume and perform all of the duties of Agent until a successor Agent shall
have accepted a valid appointment hereunder, (iii) the retiring Agent and
its Related Persons shall no longer have the benefit of any provision of any
Financing Document other than with respect to any actions taken or omitted to
be taken while such retiring Agent was, or because such Agent had been, validly
acting as Agent under the Financing Documents and (iv) subject to its
rights under Section 10.3, the retiring Agent shall take such
action as may be reasonably necessary to assign to the successor Agent its
rights as Agent under the Financing Documents. 
Effective immediately upon its acceptance of a valid appointment as
Agent, a successor Agent shall succeed to, and become vested with, all the
rights, powers, privileges and duties of the retiring Agent under the Financing
Documents.

 

81

 

(c)           Any L/C Issuer may resign at any time
by delivering notice of such resignation to Agent, effective on the date set
forth in such notice or, if no such date is set forth therein, on the date such
notice shall be effective.  Upon such
resignation, the L/C Issuer shall remain an L/C Issuer and shall retain its
rights and obligations in its capacity as such (other than any obligation to
Issue Letters of Credit but including the right to receive fees or to have
Lenders participate in any L/C Reimbursement Obligation thereof) with respect
to Letters of Credit issued by such L/C Issuer prior to the date of such
resignation and shall otherwise be discharged from all other duties and
obligations under the Financing Documents.

 

Section 10.10         Release of Collateral or Guarantors.  Each Lender and L/C Issuer hereby consents to
the release and hereby directs Agent to release (or, in the case of clause
(b)(ii) below, release or subordinate) the following:

 

(a)           any Subsidiary of Borrower from its
guaranty of any Obligation of any Credit Party if all of the equity securities
of such Subsidiary are sold or otherwise disposed of in a sale or other
disposition permitted under the Financing Documents (including pursuant to a
waiver or consent), to the extent that, after giving effect to such sale or
disposition, as the case may be, such Subsidiary would not be required to
guaranty any Obligations pursuant to Section 4.12; and

 

(b)           any Lien held by Agent for the
benefit of the Secured Parties against (i) any Collateral that is sold or
otherwise disposed of by a Credit Party in a sale or other disposition
permitted by the Financing Documents (including pursuant to a valid waiver or
consent), (ii) any property subject to a Lien permitted hereunder in
reliance upon Section 5.2(c), 5.2(i) or 5.2(j) (it
being understood and agreed that Agent may conclusively rely without further
inquiry on a certificate of a Responsible Office as to the identification of
any property described in Section 5.2(c), 5.2(i) or 5.2(j))
and (iii) all of the Collateral and all Credit Parties, upon (A) termination
of the Commitments, (B) payment and satisfaction in full of all Loans, all
L/C Reimbursement Obligations and all other Obligations that Agent has been
notified in writing are then due and payable by the holder of such Obligation, (C) deposit
of cash collateral with respect to all contingent Obligations (or, in the case
of any L/C Obligation, a back-up letter of credit has been issued), in amounts
and on terms and conditions and with parties reasonably satisfactory to Agent
and each Indemnitee that is owed such Obligations and (D) to the extent
reasonably requested by Agent, receipt by the Secured Parties of liability releases
from the Credit Parties each in form and substance reasonably acceptable to
Agent.

 

Each
Lender and L/C Issuer hereby directs Agent, and Agent hereby agrees, upon
receipt of reasonable advance notice from Borrower, to execute and deliver or
file such documents and to perform other actions reasonably necessary to
release the guaranties and Liens when and as directed in this Section 10.10.

 

Section 10.11         Additional Secured Parties.  The benefit of the provisions of the
Financing Documents directly relating to the Collateral or any Lien granted
thereunder shall extend to and be available to any Secured Party that is not a
Lender or L/C Issuer as long as, by accepting such benefits, such Secured Party
agrees, as among Agent and all other Secured Parties, that such Secured Party
is bound by (and, if requested by Agent, shall confirm such agreement in a
writing in form and substance acceptable to Agent) this Article X, Section 11.8 (Right
of Setoff), Section 11.9 (Sharing of Payments)
and Section 11.8 (Confidentiality) and the decisions
and

 

82

 

actions
of Agent and the Required Lenders (or, where expressly required by the terms of
this Agreement, a greater proportion of the Lenders) to the same extent a
Lender is bound; provided that, notwithstanding
the foregoing, (a) such Secured Party shall be bound by Section 10.8
only to the extent of liabilities, costs and expenses with respect to or
otherwise relating to the Collateral held for the benefit of such Secured Party,
in which case the obligations of such Secured Party thereunder shall not be
limited by any concept of Pro Rata Share or similar concept, (b) except as
set forth specifically herein, each of Agent, the Lenders and the L/C Issuers
shall be entitled to act at its sole discretion, without regard to the interest
of such Secured Party, regardless of whether any Obligation to such Secured
Party thereafter remains outstanding, is deprived of the benefit of the
Collateral, becomes unsecured or is otherwise affected or put in jeopardy
thereby, and without any duty or liability to such Secured Party or any such
Obligation and (c) except as set forth specifically herein, such Secured
Party shall not have any right to be notified of, consent to, direct, require
or be heard with respect to, any action taken or omitted in respect of the
Collateral or under any Financing Document.

 

ARTICLE
XI

MISCELLANEOUS

 

Section 11.1           Amendments, Waivers, Etc.  (a)  No amendment or waiver of any
provision of any Financing Document (other than the Fee Letter, any agreement
with respect to any deposit account, any securities account, commodity account,
securities entitlement or commodity contract of any Credit Party granting “control”
(as defined under the applicable UCC) over such account, entitlement, or
contract to Agent, the Third Restatement Subordination Agreement and the L/C
Reimbursement Agreements) and no consent to any departure by any Credit Party
therefrom shall be effective unless the same shall be in writing and signed (1) in
the case of an amendment, consent or waiver to cure any ambiguity, omission,
defect or inconsistency or granting a new Lien for the benefit of the Secured
Parties or extending an existing Lien over additional property, by Agent and
Borrower, (2) in the case of any other waiver or consent, by the Required
Lenders (or by Agent with the consent of the Required Lenders) and (3) in
the case of any other amendment, by the Required Lenders (or by Agent with the
consent of the Required Lenders) and Borrower; provided,
however, that no amendment, consent or
waiver described in clause (2) or (3) above shall,
unless in writing and signed by each Lender directly affected thereby (or by
Agent with the consent of such Lender), in addition to any other Person the
signature of which is otherwise required pursuant to any Financing Document, do
any of the following:

 

(i)            waive
any condition specified in Section 7.1, except any condition
referring to any other provision of any Financing Document;

 

(ii)           increase
the Commitment of such Lender or subject such Lender to any additional
obligation;

 

(iii)          reduce
(including through release, forgiveness, assignment or otherwise) (A) the
principal amount of, the interest rate on, or any obligation of Borrower to
repay (whether or not on a fixed date), any outstanding Loan owing to such
Lender, (B) any fee or accrued interest payable to such Lender or (C) if
such Lender is a Revolving Loan Lender, any L/C Reimbursement Obligation or any
obligation of Borrower to repay

 

83

 

(whether or not on a fixed date) any L/C Reimbursement Obligation; provided, however, that
this clause (iii) does not apply to (x) any change to any
provision increasing any interest rate or fee during the continuance of an
Event of Default or to any payment of any such increase or (y) any
modification to any financial covenant set forth in Article VI or
in any definition set forth therein or principally used therein;

 

(iv)          (A) waive
or postpone any scheduled maturity date or other scheduled date fixed for the
payment, in whole or in part, of principal of or interest on any Loan or fee
owing to such Lender or (B) postpone or otherwise extend any scheduled
date for the reduction of such Lender’s Commitment; provided,
however, that this clause (iv) does
not apply to any change to mandatory prepayments, including those required
under Section 2.8, or to the application of any payment, including
as set forth in Section 2.12;

 

(v)           except
as provided in Section 10.10, release all or substantially all of
the Collateral or any Credit Party from a guaranty of any Obligation of
Borrower hereunder;

 

(vi)          reduce
or increase the proportion of Lenders required for the Lenders (or any subset
thereof) to take any action hereunder or change the definition of the terms “Required
Lenders”, “Pro Rata Share” or “Pro Rata Outstandings”; or

 

(vii)         amend
Section 10.10 (Release of Collateral or Guarantors), Section 11.9
(Sharing of Payments) or this Section 11.1;

 

and
provided, further,
that (x)(A) any waiver of any payment applied pursuant to Section 2.12(b) (Application
of Prepayments) to, and any modification of the application of any such
payment to, (1) the Term Loan shall require the consent of the Required
Term Loan Lenders and (2) the Revolving Loans shall require the consent of
the Required Revolving Loan Lenders, (B) any change to the definition of
the term “Required Term Loan Lender” shall require the consent of the Required
Term Loan Lenders and (C) any change to the definition of the term “Required
Revolving Loan Lender” shall require the consent of the Required Revolving Loan
Lenders, (y) no amendment, waiver or consent shall affect the rights or
duties under any Financing Document of, or any payment to, Agent (or otherwise
modify any provision of Article X or the application thereof), the
Swingline Lender, any L/C Issuer or any SPV that has been granted an option
pursuant to Section 11.2(f) unless in writing and signed by
Agent, the Swingline Lender, such L/C Issuer or, as the case may be, such SPV
in addition to any signature otherwise required and (z) the consent of
Borrower shall not be required to change any order of priority set forth in Section 2.12(c).  No amendment, modification or waiver of this
Agreement or any Financing Document altering the ratable treatment of
Obligations arising under Secured Hedging Agreement resulting in such
Obligations being junior in right of payment to principal of the Loans or
resulting in Obligations owing to any Secured Hedging Counterparty being unsecured
(other than releases of Liens in accordance with the terms hereof), in each
case in a manner adverse to any Secured Hedging Counterparty, shall be
effective without the written consent of such Secured Hedging Counterparty or,
in the case of a Secured Hedging Agreement provided or arranged by Agent or an
Affiliate thereof, Agent.

 

(b)           Each waiver or consent under any
Financing Document shall be effective only in the specific instance and for the
specific purpose for which it was given. 
No notice to or demand

 

84

 

 

on any
Credit Party shall entitle any Credit Party to any notice or demand in the
same, similar or other circumstances.  No
failure on the part of any Secured Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right.

 

Section 11.2           Assignments and Participations;
Binding Effect.  (a)  Binding
Effect.  This Agreement shall become
effective when it shall have been executed by Borrower and Agent and when Agent
shall have been notified by each Lender and L/C Issuer that such Lender or L/C
Issuer has executed it.  Thereafter, it
shall be binding upon and inure to the benefit of, but only to the benefit of,
Borrower (in each case except for Article X (other than Sections
10.5(b) and 10.9(a)), Agent, each Lender and L/C Issuer and, to the
extent provided in Section 10.11, each other Indemnitee and Secured
Party and, in each case, their respective successors and permitted
assigns.  Except as expressly provided in
any Financing Document (including in Section 10.9), none of
Borrower, any L/C Issuer or Agent shall have the right to assign any rights or
obligations hereunder or any interest herein.

 

(b)           Right to Assign.  Each Lender may sell, transfer, negotiate or
assign all or a portion of its rights and obligations hereunder (including all
or a portion of its Commitments and its rights and obligations with respect to
Loans and Letters of Credit) to (i) any existing Lender, (ii) any
Affiliate or Approved Fund of any existing Lender or (iii) any other
Person acceptable (which acceptance shall not be unreasonably withheld,
conditioned, or delayed) to Agent and, as long as no Event of Default is
continuing, Borrower; provided, however, that (x) such sale, transfer, or assignment
does not have to be ratable between the Facilities but must be ratable among
the obligations owing to and owed by such Lender with respect to a Facility and
(y) for each Facility, the aggregate outstanding principal amount
(determined as of the effective date of the applicable Assignment) of the
Loans, Commitments and L/C Obligations subject to any such sale, transfer, or
assignment shall be in a minimum amount of $1,000,000, unless such sale,
transfer, or assignment is made to an existing Lender or an Affiliate or
Approved Fund of any existing Lender, is of the assignor’s (together with its
Affiliates and Approved Funds) entire interest in such Facility or is made with
the prior consent of Borrower and Agent.

 

(c)           Procedure.  The parties to each sale, transfer, or
assignment made in reliance on clause (b) above (other than those
described in clause (e) or (f) below) shall execute and
deliver to Agent an Assignment via an electronic settlement system designated
by Agent (or if previously agreed with Agent, via a manual execution and
delivery of the assignment) evidencing such sale, transfer, or assignment,
together with any existing Note subject to such sale, transfer, or assignment
(or any affidavit of loss therefor acceptable to Agent), any tax forms required
to be delivered pursuant to Section 2.17(f) and payment of an
assignment fee in the amount of $3,500, provided that (1) if
a sale, transfer, or assignment by a Lender is made to an Affiliate or an
Approved Fund of such assigning Lender, then no assignment fee shall be due in
connection with such sale, transfer, or assignment, and (2) if a sale,
transfer, or assignment by a Lender is made to an assignee that is not an Affiliate
or Approved Fund of such assignor Lender, and concurrently to one or more
Affiliates or Approved Funds of such assignee, then only one assignment fee of
$3,500 shall be due in connection with such sale, transfer, or assignment.  Upon receipt of all the foregoing, and
conditioned upon such receipt and, if such assignment is made in accordance
with Section 11.2(b)(iii), upon Agent (and Borrower, if applicable)

 

85

 

consenting
to such Assignment, from and after the effective date specified in such
Assignment, Agent shall record or cause to be recorded in the Register the
information contained in such Assignment.

 

(d)           Effectiveness.  Subject to the recording of an Assignment by
Agent in the Register pursuant to Section 2.14(b), (i) the
assignee thereunder shall become a party hereto and, to the extent that rights
and obligations under the Financing Documents have been assigned to such
assignee pursuant to such Assignment, shall have the rights and obligations of
a Lender, (ii) any applicable Note shall be transferred to such assignee
through such entry and (iii) the assignor thereunder shall, to the extent
that rights and obligations under this Agreement have been assigned by it
pursuant to such Assignment, relinquish its rights (except for those surviving
the termination of the Commitments and the payment in full of the Obligations)
and be released from its obligations under the Financing Documents, other than
those relating to events or circumstances occurring prior to such assignment
(and, in the case of an Assignment covering all or the remaining portion of an
assigning Lender’s rights and obligations under the Financing Documents, such
Lender shall cease to be a party hereto except that each Lender agrees to
remain bound by Article X, Section 11.8 (Right of Setoff) and Section 11.9 (Sharing of Payments) to the extent provided in Section 10.11 (Additional Secured Parties)).

 

(e)           Grant of Security Interests.  In addition to the other rights provided in this
Section 11.2, each Lender may grant a security interest in, or
otherwise assign as collateral, any of its rights under this Agreement, whether
now owned or hereafter acquired (including rights to payments of principal or
interest on the Loans), to (A) any federal reserve bank (pursuant to
Regulation A of the Federal Reserve Board), without notice to Agent or (B) any
holder of, or trustee for the benefit of the holders of, such Lender’s equity
securities by notice to Agent; provided, however, that no such holder or trustee, whether because of
such grant or assignment or any foreclosure thereon (unless such foreclosure is
made through an assignment in accordance with clause (b) above),
shall be entitled to any rights of such Lender hereunder and no such Lender
shall be relieved of any of its obligations hereunder.

 

(f)            Participants and SPVs.  In addition to the other rights provided in
this Section 11.2, each Lender may, (x) with notice to Agent,
grant to an SPV the option to make all or any part of any Loan that such Lender
would otherwise be required to make hereunder (and the exercise of such option
by such SPV and the making of Loans pursuant thereto shall satisfy the
obligation of such Lender to make such Loans hereunder) and such SPV may assign
to such Lender the right to receive payment with respect to any Obligation and (y) without
notice to or consent from Agent or Borrower, sell participations to one or more
Persons in or to all or a portion of its rights and obligations under the
Financing Documents (including all its rights and obligations with respect to
the Term Loan, Revolving Loans and Letters of Credit); provided,
however, that, whether as a result of
any term of any Financing Document or of such grant or participation, (i) no
such SPV or participant shall have a commitment, or be deemed to have made an
offer to commit, to make Loans hereunder, and, except as provided in the
applicable option agreement, none shall be liable for any obligation of such
Lender hereunder, (ii) such Lender’s rights and obligations, and the
rights and obligations of the Credit Parties and the Secured Parties towards
such Lender, under any Financing Document shall remain unchanged and each other
party hereto shall continue to deal solely with such Lender, which shall remain
the holder of the Obligations in the Register, except that (A) each such
participant and SPV shall

 

86

 

be
entitled to the benefit of Sections 2.16 (Breakage Costs;
Increased Costs; Capital Requirements) and 2.17 (Taxes), but
only to the extent such participant or SPV delivers the tax forms such Lender
is required to collect pursuant to Section 2.17(f) and then
only to the extent of any amount to which such Lender would be entitled in the
absence of any such grant or participation and (B) each such SPV may
receive other payments that would otherwise be made to such Lender with respect
to Loans funded by such SPV to the extent provided in the applicable option
agreement and set forth in a notice provided to Agent by such SPV and such
Lender, provided, however,
that in no case (including pursuant to clause (A) or (B) above)
shall an SPV or participant have the right to enforce any of the terms of any
Financing Document, and (iii) the consent of such SPV or participant shall
not be required (either directly, as a restraint on such Lender’s ability to
consent hereunder or otherwise) for any amendments, waivers or consents with
respect to any Financing Document or to exercise or refrain from exercising any
powers or rights such Lender may have under or in respect of the Financing
Documents (including the right to enforce or direct enforcement of the
Obligations), except for those described in clauses (iii) and (iv) of
Section 11.1(a) with respect to amounts, or dates fixed for
payment of amounts, to which such participant or SPV would otherwise be
entitled and, in the case of participants, except for those described in Section 11.1(a)(v) (or
amendments, consents and waivers with respect to Section 10.10 to
release all or substantially all of the Collateral).  No party hereto shall institute (and each of
Borrower shall cause each other Credit Party not to institute) against any SPV
grantee of an option pursuant to this clause (f) any bankruptcy,
reorganization, insolvency, liquidation or similar proceeding, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper of such SPV; provided, however, that each Lender having designated an SPV as such
agrees to indemnify each Indemnitee against any liability that may be incurred
by, or asserted against, such Indemnitee as a result of failing to institute
such proceeding (including a failure to get reimbursed by such SPV for any such
liability).  The agreement in the preceding
sentence shall survive the termination of the Commitments and the payment in
full of the Obligations.

 

Section 11.3           Costs and Expenses.  Any action taken by any Credit Party under or
with respect to any Financing Document, even if required under any Financing
Document or at the request of any Secured Party, shall be at the expense of
such Credit Party, and no Secured Party shall be required under any Financing
Document to reimburse any Credit Party therefor except as expressly provided
therein.  In addition, Borrower agrees to
pay or reimburse upon demand (a) Agent for all reasonable costs and
expenses incurred by it or any of its Related Persons in connection with the
investigation, development, preparation, negotiation, syndication, execution,
interpretation or administration of, any modification of any term of or
termination of, any Financing Document (including, without limitation, all
reasonable costs and expenses incurred by Agent or any of its Related Persons
in connection with any action taken by it pursuant to Section 4.6
(which shall be reimbursed, in addition to the reasonable out-of-pocket costs
and expenses of applicable examiners, at the per diem rate per individual
charged by Agent for such examiners)), any commitment or proposal letter therefor,
any other document prepared in connection therewith or the consummation and
administration of any transaction contemplated therein (including periodic
audits in connection therewith and environmental audits and assessments), in
each case including the reasonable fees, charges and disbursements of legal
counsel to Agent or such Related Persons, fees, costs and expenses incurred in
connection with Intralinks® or any other E-System and
allocated to the Facilities by Agent in its sole discretion and fees, charges
and disbursements of the auditors, appraisers, printers and other of their

 

87

 

Related
Persons retained by or on behalf of any of them or any of their Related Persons
with, absent an Event of Default, the consent of Borrower, which consent shall
not be unreasonably withheld and (b) each of Agent, its Related Persons,
and each Lender and L/C Issuer for all costs and expenses incurred in
connection with (i) any refinancing or restructuring of the credit
arrangements provided hereunder in the nature of a “work-out”, (ii) the
enforcement or preservation of any right or remedy under any Financing
Document, any Obligation, with respect to the Collateral or any other related
right or remedy or (iii) the commencement, defense, conduct of,
intervention in, or the taking of any other action with respect to, any
proceeding (including any bankruptcy or insolvency proceeding) related to any
Credit Party, Financing Document, Obligation or Related Transaction (or the response
to and preparation for any subpoena or request for document production relating
thereto), including fees and disbursements of counsel (including allocated
costs of internal counsel).  If any
Credit Party fails to perform any obligation hereunder or under any other
Financing Document, Agent itself may, but shall not be obligated to, cause such
obligation to be performed at Borrower’s expense and Borrower agrees to
reimburse Agent therefor on demand.

 

Section 11.4           Indemnities.  (a)  Borrower agrees to indemnify, hold
harmless and defend Agent, each Lender, each L/C Issuer, each Person that each
L/C Issuer causes to Issue Letters of Credit hereunder and each of their
respective Related Persons (each such Person being an “Indemnitee”)
from and against all liabilities (including brokerage commissions, fees and
other compensation) that may be imposed on, incurred by or asserted against any
such Indemnitee in any matter relating to or arising out of, in connection with
or as a result of (i) any Financing Document, any Operative Document, all
confidential information memoranda and related materials prepared in connection
with the syndication of the Facilities, any Obligation (or the repayment
thereof), any Letter of Credit, the use or intended use of the proceeds of any
Loan or the use of any Letter of Credit, any Related Transaction, or any
securities filing of, or with respect to, any Credit Party, (ii) any
commitment letter, proposal letter or term sheet with any Person or any
contractual obligation, arrangement or understanding with any broker, finder or
consultant, in each case entered into by or on behalf of any Credit Party or
any Affiliate of any of them in connection with any of the foregoing and any
contractual obligation entered into in connection with any E-Systems or other
Electronic Transmissions, (iii) any actual or prospective investigation,
litigation or other proceeding, whether or not brought by any such Indemnitee
or any of its Related Persons or creditors or any holders of its equity securities
(and including reasonable attorneys’ fees in any case), whether or not any such
Indemnitee, Related Person, holder or creditor is a party thereto, and whether
or not based on any securities or commercial law or regulation or any other Law
or theory thereof, including common law, equity, contract, tort or otherwise,
or (iv) any other act, event or transaction related, contemplated in or
attendant to any of the foregoing (collectively, the “Indemnified
Matters”); provided, however, that Borrower shall not have any liability under
this Section 11.4 to any Indemnitee with respect to any Indemnified
Matter, and no Indemnitee shall have any liability with respect to any
Indemnified Matter other than (to the extent otherwise liable), to the extent
such liability has resulted from the bad faith, gross negligence or willful
misconduct of such Indemnitee, as determined by a court of competent
jurisdiction.  Furthermore, Borrower
waives and agrees not to assert against any Indemnitee, and shall cause each
other Credit Party to waive and not assert against any Indemnitee, any right of
contribution with respect to any liabilities that may be imposed on, incurred
by or asserted against any Related Person.

 

88

 

(b)           Without limiting the foregoing, “Indemnified
Matters” includes all liabilities that may be imposed on, incurred by or
asserted against any Credit Party as a result of, or related to, any claim,
suit, action, investigation, proceeding or demand by any Person arising under
any Environmental Law or in connection with any environmental, health or safety
condition or with any Hazardous Materials Contamination and resulting from the
ownership, lease, sublease or other operation or occupation of property by any
Credit Party, whether on, prior or after the date hereof, including those
arising from, or otherwise involving, any property of any Related Person or any
actual, alleged or prospective damage to property or natural resources or harm
or injury alleged to have resulted
from any Hazardous Materials Contamination on, upon or into such property or
natural resource or any property on or contiguous to any real property of any
Related Person, whether or not, with respect to any such liabilities, any
Indemnitee is a mortgagee pursuant to any leasehold mortgage, a mortgagee in
possession, the successor-in-interest to any Related Person or the owner,
lessee or operator of any property of any Related Person through any
foreclosure action, in each case except to the extent such
liabilities (i) are incurred solely following foreclosure by any Secured
Party or following any Secured Party having become the successor-in-interest to
any Credit Party and (ii) are attributable solely to acts of such
Indemnitee.

 

Section 11.5           Survival.  Any indemnification or other protection
provided to any Indemnitee pursuant to any Financing Document (including
pursuant to Section 2.17 (Taxes), Section 2.16 (Breakage
Costs; Increased Costs; Capital Requirements), Article X (Agent),
Section 11.3 (Costs and Expenses), Section 11.4
(Indemnities) or this Section 11.5) shall (A) survive
the termination of the Commitments and the payment in full of other Obligations
and (B) inure to the benefit of any Person that at any time held a right
thereunder (as an Indemnitee or otherwise) and, thereafter, its successors and
permitted assigns.  All agreements,
representations and warranties made herein and in every other Financing
Document shall survive the execution and delivery of this Agreement and the
other Financing Documents and the other Operative Documents.

 

Section 11.6           Limitation of Liability for
Certain Damages.  In no event shall
any Indemnitee be liable on any theory of liability for any special, indirect,
consequential or punitive damages (including any loss of profits, business or
anticipated savings).  Borrower hereby
waives, releases and agrees (and shall cause each other Credit Party to waive,
release and agree) not to sue upon any such claim for any special, indirect,
consequential or punitive damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

 

Section 11.7           Lender-Creditor Relationship.  The relationship between the Lenders, the L/C
Issuers and Agent, on the one hand, and the Credit Parties, on the other hand,
is solely that of lender and creditor. 
No Secured Party has any fiduciary relationship or duty to any Credit
Party arising out of or in connection with, and there is no agency, tenancy or
joint venture relationship between the Secured Parties and the Credit Parties
by virtue of, any Financing Document or any transaction contemplated therein.

 

Section 11.8           Right of Setoff.  Each of Agent, each Lender, each L/C Issuer
and each Affiliate (including each branch office thereof) of any of them is
hereby authorized, without notice or demand (each of which is hereby waived by
Borrower), at any time and from time to time during the continuance of any
Event of Default and to the fullest extent permitted by

 

89

 

applicable
Law, to set off and apply any and all deposits (whether general or special,
time or demand, provisional or final) at any time held and other Debt, claims
or other obligations at any time owing by Agent, such Lender, such L/C Issuer
or any of their respective Affiliates to or for the credit or the account of
Borrower against any Obligation of any Credit Party now or hereafter existing,
whether or not any demand was made under any Financing Document with respect to
such Obligation and even though such Obligation may be unmatured.  Each of Agent, each Lender and each L/C
Issuer agrees promptly to notify Borrower and Agent after any such setoff and
application made by such Lender or its Affiliates; provided,
however, that the failure to give such
notice shall not affect the validity of such setoff and application.  The rights under this Section 11.8
are in addition to any other rights and remedies (including other rights of
setoff) that Agent, the Lenders and the L/C Issuers and their Affiliates and
other Secured Parties may have.

 

Section 11.9           Sharing of Payments, Etc.  If any Lender, directly or through an
Affiliate or branch office thereof, obtains any payment of any Obligation of
any Credit Party (whether voluntary, involuntary or through the exercise of any
right of setoff or the receipt of any Collateral or “proceeds” (as
defined under the applicable UCC) of Collateral) other than pursuant to Sections 2.16
(Breakage Costs; Increased Costs; Capital Requirements), 2.17 (Taxes)
and 2.18 (Substitution of Lenders) and such payment exceeds
the amount such Lender would have been entitled to receive if all payments had
gone to, and been distributed by, Agent in accordance with the provisions of
the Financing Documents, such Lender shall purchase for cash from other Secured
Parties such participations in their Obligations as necessary for such Lender
to share such excess payment with such Secured Parties to ensure such payment
is applied as though it had been received by Agent and applied in accordance
with this Agreement (or, if such application would then be at the discretion of
Borrower, applied to repay the Obligations in accordance herewith); provided, however, that (a) if
such payment is rescinded or otherwise recovered from such Lender or L/C Issuer
in whole or in part, such purchase shall be rescinded and the purchase price
therefor shall be returned to such Lender or L/C Issuer without interest and (b) such
Lender shall, to the fullest extent permitted by applicable Law, be able to
exercise all its rights of payment (including the right of setoff) with respect
to such participation as fully as if such Lender were the direct creditor of
Borrower in the amount of such participation.

 

Section 11.10         Marshaling; Payments Set Aside.  No Secured Party shall be under any obligation
to marshal any property in favor of any Credit Party or any other party or
against or in payment of any Obligation. 
To the extent that any Secured Party receives a payment from Borrower,
from the proceeds of the Collateral, from the exercise of its rights of setoff,
any enforcement action or otherwise, and such payment is subsequently, in whole
or in part, invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party, then to the
extent of such recovery, the obligation or part thereof originally intended to
be satisfied, and all Liens, rights and remedies therefor, shall be revived and
continued in full force and effect as if such payment had not occurred.

 

Section 11.11         Notices.  (a)  Addresses.  All notices, demands, requests, directions
and other communications required or expressly authorized to be made by this
Agreement shall, whether or not specified to be in writing but unless otherwise
expressly specified to be given by any other means, be given in writing and (i) addressed
to (A) if to Borrower, to 2100 Wharton Street, Suite 400, Pittsburgh,
PA 15203, Attention:  Robert Culhane,
Tel:  (412) 222-7766, Fax:

 

90

 

(412)
381-6860, with copy to Vestar Capital Partners IV, L.P., 245 Park Avenue, 41st
Floor, New York, NY  10167,
Attention:  Jack M. Feder Esq., Tel:  (212) 351-1600, Fax:  (212) 808-4922, with copy to Simpson Thacher &
Bartlett LLP, 425 Lexington Avenue, New York, NY  10017, Attention: Marissa C. Wesely, Esq.,
Tel: (212) 455-7173, Fax: (212) 455-2502, (B) if to Agent or the Swingline
Lender, to General Electric Business Financial Services Inc., 2 Bethesda Metro
Center, Bethesda, MD 20814, Attention: 
DynaVox Account Manager, Tel: 
(301) 961-1640, Fax: (301) 664-9855 with copy to General Electric
Business Financial Services Inc., 7700 Wisconsin Avenue, Suite 400,
Bethesda, MD 20814, Attention: Legal Department, Tel:  (301) 961-1640, Fax: (301) 664-9855 and (C) otherwise
to the party to be notified at its address specified opposite its name on the
signature page of any applicable Assignment, (ii) posted to
Intralinks® (to the extent such system is available and
set up by or at the direction of Agent prior to posting) in an appropriate
location by uploading such notice, demand, request, direction or other
communication to www.intralinks.com, faxing it to 866-545-6600 with an
appropriate bar-coded fax coversheet or using such other means of posting to
Intralinks® as may be available and reasonably acceptable
to Agent prior to such posting, (iii) posted to any other E-System set up
by or at the direction of Agent in an appropriate location or (iv) addressed
to such other address as shall be notified in writing (A) in the case of
Borrower, Agent and the Swingline Lender, to the other parties hereto and (B) in
the case of all other parties, to Borrower and Agent.  Transmission by electronic mail (including
E-Fax, even if transmitted to the fax numbers set forth in clause (i) above)
shall not be sufficient or effective to transmit any such notice under this clause
(a) unless such transmission is an available means to post to any
E-System.

 

(b)           Effectiveness.  All communications described in clause (a) above
and all other notices, demands, requests and other communications made in
connection with this Agreement shall be effective and be deemed to have been
received (i) if delivered by hand, upon personal delivery, (ii) if
delivered by overnight courier service, one Business Day after delivery to such
courier service, (iii) if delivered by mail, three Business Days after
being deposited in the mails, (iv) if delivered by facsimile (other than
to post to an E-System pursuant to clause (a)(ii) or (a)(iii) above),
upon sender’s receipt of confirmation of proper transmission, and (v) if
delivered by posting to any E-System, on the later of the date of such posting
in an appropriate location and the date access to such posting is given to the
recipient thereof in accordance with the standard procedures applicable to such
E-System; provided, however,
that no communications to Agent pursuant to Article II or Article X
shall be effective until received by Agent.

 

Section 11.12         Electronic Transmissions.  (a)  Authorization.  Subject to the provisions of Section 11.11(a),
each of Agent, Borrower, the Lenders, the L/C Issuers and each of their Related
Persons is authorized (but not required) to transmit, post or otherwise make or
communicate, in its sole discretion, Electronic Transmissions in connection
with any Financing Document and the transactions contemplated therein.  Borrower and each Secured Party hereby
acknowledges and agrees, and Borrower shall cause each other Credit Party to
acknowledge and agree, that the use of Electronic Transmissions is not
necessarily secure and that there are risks associated with such use, including
risks of interception, disclosure and abuse and each indicates it assumes and
accepts such risks (other than such risks resulting from gross negligence, bad
faith, or willful misconduct of the applicable transmitting party as determined
by a court of competent jurisdiction) by hereby authorizing the transmission of
Electronic Transmissions.

 

91

 

(b)           Signatures.  Subject to the provisions of Section 11.11(a),
(i)(A) no posting to any E-System shall be denied legal effect merely
because it is made electronically, (B) each E-Signature on any such
posting shall be deemed sufficient to satisfy any requirement for a “signature”
and (C) each such posting shall be deemed sufficient to satisfy any
requirement for a “writing”, in each case including pursuant to any Financing
Document, any applicable provision of any UCC, the federal Uniform Electronic
Transactions Act, the Electronic Signatures in Global and National Commerce Act
and any substantive or procedural Law governing such subject matter, (ii) each
such posting that is not readily capable of bearing either a signature or a
reproduction of a signature may be signed, and shall be deemed signed, by
attaching to, or logically associating with such posting, an E-Signature, upon
which each Secured Party and Credit Party may rely and assume the authenticity
thereof, (iii) each such posting containing a signature, a reproduction of
a signature or an E-Signature shall, for all intents and purposes, have the
same effect and weight as a signed paper original and (iv) each party
hereto or beneficiary hereto agrees not to contest the validity or
enforceability of any posting on any E-System or E-Signature on any such
posting under the provisions of any applicable Law requiring certain documents
to be in writing or signed; provided, however, that nothing herein shall limit such party’s or
beneficiary’s right to contest whether any posting to any E-System or
E-Signature has been altered after transmission.

 

(c)           Separate Agreements.  All uses of an E-System shall be governed by
and subject to, in addition to Section 11.11 and this Section 11.12,
separate terms and conditions posted or referenced in such E-System and related
contractual obligations executed by Secured Parties and Credit Parties in
connection with the use of such E-System.

 

(d)           Limitation of Liability.  All E-Systems and Electronic Transmissions
shall be provided “as is” and “as available”. 
None of Agent or any of its Related Persons warrants the accuracy,
adequacy or completeness of any E-Systems or Electronic Transmission, and each
disclaims all liability for errors or omissions therein, except as a result of
its or its Related Person’s gross negligence, bad faith, or willful misconduct
as determined by a court of competent jurisdiction.  No warranty of any kind is made by Agent or
any of its Related Persons in connection with any E-Systems or Electronic
Communication, including any warranty of merchantability, fitness for a
particular purpose, non-infringement of third-party rights or freedom from
viruses or other code defects.   Borrower and each Secured Party agrees (and
Borrower shall cause each other Credit Party to agree) that Agent has no
responsibility for maintaining or providing any equipment, software, services
or any testing required in connection with any Electronic Transmission or
otherwise required for any E-System.

 

Section 11.13         Governing Law.  This Agreement, each other Financing Document
that does not expressly set forth its applicable law, and the rights and
obligations of the parties hereto and thereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of New York.

 

Section 11.14         Jurisdiction.  (a)  Submission to Jurisdiction.  Any legal action or proceeding with respect
to any Financing Document may be brought in the courts of the State of New York
located in the City of New York, Borough of Manhattan, or of the United States
of America for the Southern District of New York and, by execution and delivery
of this Agreement, Borrower hereby accepts for itself and in respect of its
property, generally and

 

92

 

unconditionally,
the jurisdiction of the aforesaid courts. 
The parties hereto (and, to the extent set forth in any other Financing
Document, each other Credit Party) hereby irrevocably waive any objection,
including any objection to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or
hereafter have to the bringing of any such action or proceeding in such
jurisdictions.

 

(b)           Service of Process.  Borrower (and, to the extent set forth in any
other Financing Document, each other Credit Party) hereby irrevocably waives
personal service of any and all legal process, summons, notices and other
documents and other service of process of any kind and consents to such service
in any suit, action or proceeding brought in the United States of America with
respect to or otherwise arising out of or in connection with any Financing
Document by any means permitted by applicable Law, including by the mailing
thereof (by registered or certified mail, postage prepaid) to the address of
Borrower specified in Section 11.11 (and shall be effective when
such mailing shall be effective, as provided therein).  Borrower (and, to the extent set forth in any
other Financing Document, each other Credit Party) agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law.

 

(c)           Non-Exclusive Jurisdiction.  Nothing
contained in this Section 11.14 shall affect the right of Agent or
any Lender to serve process in any other manner permitted by applicable Law or
commence legal proceedings or otherwise proceed against any Credit Party in any
other jurisdiction.

 

Section 11.15         Waiver of Jury Trial.  Each party hereto hereby irrevocably waives
trial by jury in any suit, action or proceeding with respect to, or directly or
indirectly arising out of, under or in connection with, any Financing Document
or the transactions contemplated therein or related thereto (whether founded in
contract, tort or any other theory). 
Each party hereto (A) certifies that no other party and no Related
Person of any other party has represented, expressly or otherwise, that such
other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (B) acknowledges that it and the other parties hereto
have been induced to enter into the Financing Documents, as applicable, by the
mutual waivers and certifications in this Section 11.15.

 

Section 11.16         Severability.  Any provision of any Financing Document being
held illegal, invalid or unenforceable in any jurisdiction shall not affect any
part of such provision not held illegal, invalid or unenforceable, any other
provision of any Financing Document or any part of such provision in any other
jurisdiction.

 

Section 11.17         Execution in Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.  Signature pages may be detached from
multiple separate counterparts and attached to a single counterpart.  Delivery of an executed signature page of
this Agreement by facsimile transmission or Electronic Transmission shall be as
effective as delivery of a manually executed counterpart hereof.

 

93

 

 

Section 11.18       Entire Agreement.  The Financing Documents embody the entire
agreement of the parties and supersede all prior agreements and understandings
relating to the subject matter thereof and any prior letter of interest,
commitment letter, fee letter, confidentiality and similar agreements involving
any Credit Party and any of Agent, any Lender or any L/C Issuer or any of their
respective Affiliates relating to a financing of substantially similar form,
purpose or effect.  In the event of any
conflict between the terms of this Agreement and any other Financing Document,
the terms of this Agreement shall govern (unless such terms of such other
Financing Documents are necessary to comply with applicable Law, in which case
such terms shall govern to the extent necessary to comply therewith).

 

Section 11.19       Use of Name.  Borrower agrees, and shall cause each other
Credit Party to agree, that it shall not, and none of its Affiliates shall,
issue any press release or other public disclosure (other than any document
filed with any Governmental Authority relating to a public offering of the
equity securities of any Credit Party) using the name, logo or otherwise
referring to GE BFS or of any of its Affiliates, the Financing Documents or any
transaction contemplated therein to which the Secured Parties are party without
at least 2 Business Days’ prior notice to GE BFS and without the prior
consent of GE BFS except to the extent required to do so under applicable Law
and then, only after consulting with GE BFS prior thereto.

 

Section 11.20       Non-Public Information;
Confidentiality.  (a)  Each
Lender and L/C Issuer acknowledges and agrees that it may receive material
non-public information hereunder concerning the Credit Parties and their
Affiliates and its equity securities and agrees to use such information in
compliance with all relevant policies, procedures and contractual obligations
and applicable Laws (including United States federal and state security laws
and regulations).

 

(b)           Each Lender, L/C Issuer and Agent
agrees to use all reasonable efforts to maintain, in accordance with its
customary practices, the confidentiality of information obtained by it pursuant
to any Financing Document and designated in writing by any Credit Party as
confidential, except that such information may be disclosed (i) with
Borrower’s consent, (ii) to Related Persons of such Lender, L/C Issuer or
Agent, as the case may be, or to any Person that any L/C Issuer causes to Issue
Letters of Credit hereunder, that are advised of the confidential nature of
such information and are instructed to keep such information confidential, (iii) to
the extent such information presently is or hereafter becomes available to such
Lender, L/C Issuer or Agent, as the case may be, on a non-confidential basis
from a source other than any Credit Party, (iv) to the extent disclosure
is required by applicable Law or other legal process or requested or demanded
by any Governmental Authority, (v) to the extent necessary or customary
for inclusion in league table measurements or in any tombstone or other
advertising materials (and the Credit Parties consent to the publication of
such tombstone or other advertising materials by Agent, any Lender, any L/C
Issuer or any of their Related Persons), (vi) to the National Association
of Insurance Commissioners or any similar organization, any examiner or any
nationally recognized rating agency or otherwise to the extent consisting of
general portfolio information that does not identify borrowers, (vii) to
current or prospective assignees, SPVs grantees of any option described in Section 11.2(f) or
participants, direct or contractual counterparties to any Hedging Agreement
permitted hereunder and to their respective Related Persons, in each case to
the extent such assignees, participants, counterparties or Related Persons
agree to be bound by provisions substantially similar to the provisions of this
Section 11.20 and (viii) in connection with the exercise of
any remedy under any Financing Document. 
In the event of any conflict

 

94

 

between
the terms of this Section 11.20 and those of any other Financing
Document entered into with any Credit Party, the terms of this Section 11.20
shall govern.

 

Section 11.21       Patriot Act Notice.  Each Lender subject to the USA Patriot Act of
2001 (31 U.S.C. 5318 et seq.) hereby notifies Borrower that, pursuant to Section 326
thereof, it is required to obtain, verify and record information that
identifies Borrower, including the name and address of Borrower and other
information allowing such Lender to identify Borrower in accordance with such
act.

 

Section 11.22       No Novation.  Notwithstanding anything to the contrary
contained herein, this Agreement is not intended to and does not serve to
effect a novation of the Obligations under the Existing Credit Agreement.  Instead, it is the express intention of the
parties hereto to reaffirm the indebtedness created under the Existing Credit
Agreement which is evidenced by the notes provided for therein (as amended and
restated pursuant to the terms hereof) and secured by the Collateral.  Borrower, and each other Credit Party hereby
acknowledges and confirms that the liens and security interests granted
pursuant to the Financing Documents secure the indebtedness, liabilities and
obligations of such Persons to Agent and Lenders under the Existing Credit
Agreement, as amended and restated hereby, and that the term “Obligations” as
used in the Financing Documents (or any other term used therein to describe or
refer to the indebtedness, liabilities and obligations of Borrower to Agent and
Lenders) includes, without limitation, the indebtedness, liabilities and
obligations of Borrower under the Notes to be delivered under this Agreement,
as the same may be further amended, modified, supplemented or restated from
time to time.  The Financing Documents
and all agreements, instruments and documents executed or delivered in
connection with any of the foregoing shall each be deemed to be amended to the
extent necessary to give effect to the provisions of this Agreement.  Cross-references in the Financing Documents
to particular section numbers in the Existing Credit Agreement shall be deemed
to be cross-references to the corresponding sections, as applicable, of this
Agreement.

 

Balance of Page Intentionally Left Blank

- Signature Pages Follow –

 

95

 

IN WITNESS WHEREOF, the
parties hereto (in the case of the Exiting Lenders, solely for the limited
purposes set forth in Section 2.1(a)) have caused this Third
Amended and Restated Credit Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.

 

	
   

  	
  DYNAVOX SYSTEMS LLC, a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert P. Culhane

  
	
   

  	
  Name:

  	
  Robert
  P. Culhane

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer Secretary And Treasurer

  

 

Third Amended and Restated Credit Agreement

 

 

IN WITNESS WHEREOF, the
parties hereto (in the case of the Exiting Lenders, solely for the limited
purposes set forth in Section 2.1(a)) have caused this Third
Amended and Restated Credit Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.

 

	
   

  	
  GE BUSINESS FINANCIAL SERVICES INC.

  (formerly known as Merrill Lynch Business
  Financial Services Inc.), as Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Keith Bird

  
	
   

  	
  Name:

  	
  Keith
  Bird

  
	
   

  	
  Title:

  	
  Duly
  Authorized Signatory

  

 

Third Amended and Restated Credit Agreement

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Third Amended and Restated Credit Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

 

	
   

  	
  BMO CAPITAL MARKETS FINANCING, INC., as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael D. Pincus

  
	
   

  	
  Name:

  	
  Michael
  D. Pincus

  
	
   

  	
  Title:

  	
  Managing
  Director

  

 

Third Amended and Restated Credit Agreement

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Third Amended and Restated Credit Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

 

	
   

  	
  PNC BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Meredith S. Heamer

  
	
   

  	
  Name:

  	
  Meredith
  S. Heamer

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

Third Amended and Restated Credit Agreement

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Third Amended and Restated Credit Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

 

	
   

  	
  TRISTATE CAPITAL BANK, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael L Hammond

  
	
   

  	
  Name:

  	
  Michael
  L Hammond

  
	
   

  	
  Title:

  	
  SVP

  

 

Third Amended and Restated Credit Agreement

 

 

IN WITNESS WHEREOF, the
parties hereto (in the case of the Exiting Lenders, solely for the limited
purposes set forth in Section 2.1(a)) have caused this Third
Amended and Restated Credit Agreement to be duly executed by their respective
authorized officers as of the day and year first above written.

 

	
   

  	
  [EXITING LENDER], solely
  for the limited purposes set forth in Section 2.1(a), as an
  Exiting Lender

  
	
   

  	
   

  
	
   

  	
  FriedbergMilstein Private
  Capital Fund I

  
	
   

  	
  By:
  GSO Debt Funds Management LLC as Subadviser to FriedbergMilstein LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Lee M. Shaiman

  
	
   

  	
  Name:

  	
  Lee
  M. Shaiman

  
	
   

  	
  Title:

  	
  Authorized
  Signatory

  

 

Signature Page to Third Amended and Restated
Credit Agreement

 

 

IN WITNESS WHEREOF, the parties hereto (in the case of
the Exiting Lenders, solely for the limited purposes set forth in Section 2.1(a)) have caused this
Third Amended and Restated Credit Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

 

	
   

  	
  MARATHON
  CLO I LTD., solely
  for the limited purposes set forth in Section 2.1(a), as an Exiting Lender

  
	
   

  	
   

  
	
   

  	
  By: Marathon Asset
  Management LLC

  Its Collateral Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Louis T. Hanover

  
	
   

  	
  Name:

  	
  Louis T. Hanover

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

Signature Page to Third Amended and Restated
Credit Agreement

 

 

IN WITNESS WHEREOF, the parties hereto (in the case of
the Exiting Lenders, solely for the limited purposes set forth in Section 2.1(a))
have caused this Third Amended and Restated Credit Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

	
   

  	
  BLACKROCK
  KELSO CAPITAL CORPORATION, solely for the limited purposes set forth in Section 2.1(a),
  as an Exiting Lender

  
	
   

  	
   

  
	
   

  	
  By:
  BlackRock Kelso Capital Advisors LLC, its  Investment Manager 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Lazar

  
	
   

  	
  Name:

  	
  Michael B. Lazar

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

Signature Page to Third Amended and Restated
Credit Agreement

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