Document:

Exhibit
10.12

 

EMPLOYMENT AGREEMENT

 

(Robert Cunningham)

 

EMPLOYMENT AGREEMENT (the “Agreement”)
dated April 7, 2010 by and between DynaVox Systems LLC (the “Company”) and
Robert Cunningham (the “Executive”).

 

The
Company desires to employ Executive and to enter into an agreement embodying
the terms of such employment; and

 

Executive
desires to accept such employment and enter into such an agreement.

 

In consideration of the
premises and mutual covenants herein and for other good and valuable
consideration, the parties agree as follows:

 

1.                                       Term of
Employment.   Subject to
the provisions of Section 7 of this Agreement, Executive
shall be employed by the Company for a period commencing on April 7,
2010 (the “Commencement Date”) and ending on April 6,
2013 (the “Employment Term”) on the terms and subject to the conditions set
forth in this Agreement; provided, however, that commencing with April 7, 2013 and on each April 7
thereafter (each an “Extension Date”), the Employment Term shall be
automatically extended for an additional one-year period, unless the Company or
Executive provides the other party hereto 90 days’ prior written notice before
the next Extension Date that the Employment Term shall not be so extended.

 

2.                                       Position.

 

(a)          During the Employment Term,
Executive shall serve as the Company’s Chief Technology Officer. Executive
shall report to and receive an annual performance review from the Company’s
Chief Executive Officer (“CEO”).  Subject
to reasonable business travel, Executive’s primary work location shall be
located in Pittsburgh, Pennsylvania.

 

(b)         During the
Employment Term, Executive will devote Executive’s best efforts
(subject, in each case, to periods of vacation and illness) to the performance
of Executive’s duties hereunder and will not engage in any other business,
profession or occupation for compensation or otherwise which would conflict or
reasonably be expected to interfere in any material respect with the rendition
of such services either directly or indirectly, without the prior written
consent of the Board of Directors of DynaVox Inc. (the “Board”); provided, that
Executive may accept appointment to serve on any board of directors or trustees
of any business corporation or any charitable organization, with the prior
written consent of the Board, which consent shall not be unreasonably withheld,
so long as such activities do not conflict or interfere in any material respect
with the performance of Executive’s duties hereunder or conflict with or
violate Section 9 or 10.

 

3.                                       Base Salary.  During
the Employment Term, the Company shall pay Executive a base salary at the
annual rate of $235,000, payable in regular installments in accordance with the
Company’s normal payroll practices. 
Executive shall be entitled to such increases in Executive’s base
salary, if any, as may be determined from time to time in the sole

 

 

discretion of the Board.  Executive’s annual base salary, as in effect
from time to time, is hereinafter referred to as the “Base Salary.”

 

4.                                       Annual Bonus. With respect
to the 2010 fiscal year and each full fiscal year during the Employment Term
commencing with the 2011 fiscal year,
Executive shall be eligible to earn an annual cash bonus award (an “Annual
Bonus”) under the applicable bonus plan of the Company or one of its affiliates
of up to forty percent (40%) of Executive’s Base Salary (the “Target Bonus”)
based upon the achievement of performance targets established by the Board,
based on the Company’s annual operating plan as established by the Board,
within the first ninety (90) days of each applicable fiscal year and otherwise
subject to the terms of such bonus plan. 
In addition, Executive shall be given the opportunity to earn an Annual
Bonus in excess of the Target Bonus for superior performance upon the Company
achieving the goals to be established by the Board within the first ninety (90)
days of each applicable fiscal year.  The
Annual Bonus, if any, payable hereunder shall be paid within ten (10) business
days following the Company’s receipt of the final audited financial statements
from the Company’s accounting firm in respect of the relevant fiscal year;
provided that Executive is employed by the Company on such payment date.

 

5.                                       Employee
Benefits/Equity.

 

(a)                                  During the
Employment Term, Executive shall be entitled
to participate in the Company’s employee benefit plans as in effect from time
to time (collectively “Employee Benefits”), on the same basis as those benefits
are generally made available to other executives of the Company.

 

(b)                                 In addition to
the foregoing, it is acknowledged and agreed that DynaVox Inc. (“DynaVox”) is
currently developing an equity-based incentive program (the “Program”) for
executives of the Company.  Subject to the pricing (the “Pricing”) of the
initial public offering (the “IPO”) of the Class A common stock (the “Common
Stock”) of DynaVox, Executive shall be eligible to receive, on the date of the
Pricing, a number of stock options to purchase shares of Common Stock, as
determined by the Compensation Committee of the Board, under the Program, which
award will be subject to substantially similar terms and conditions as the
terms and conditions that will generally apply to similarly situated senior
executives of the Company and will have an exercise price equal to the initial
public offering price per share of the Common Stock.

 

6.                                       Business
Expenses.  During the
Employment Term, reasonable business expenses incurred by Executive in the
performance of Executive’s duties hereunder shall be reimbursed by the Company
in accordance with Company policies.

 

7.                                       Termination. The
Employment Term and Executive’s employment hereunder may be terminated by
either party at any time and for any reason; provided that Executive will be
required to give the Company at least 60 days’ advance written notice of any
resignation of Executive’s employment without Good Reason (as defined in Section 7(c)).
Notwithstanding any other provision of this Agreement, the provisions of this Section 7
shall exclusively govern Executive’s rights upon termination of employment with
the Company and its affiliates.

 

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(a)          By the Company
For Cause or By Executive’s Resignation Without Good Reason.

 

(i)                                     The Employment
Term and Executive’s employment hereunder may be terminated by the Company for
Cause (as defined below), which termination shall be effective immediately, or
by Executive due to his resignation without Good Reason.

 

(ii)                                  For purposes of
this Agreement “Cause” shall mean:

 

(A)      Executive’s indictment for a
felony or a crime involving moral turpitude, which in the reasonable judgment
of the Board has materially interfered with the ability of Executive to perform
his duties hereunder or has caused significant harm to the Company or any of
its affiliates or their respective businesses;

 

(B)        Executive’s
conviction of a felony or a crime involving moral turpitude or a plea of guilty
or nolo contendere involving such a crime;

 

(C)        Executive’s
commission of an act of fraud or embezzlement or malfeasance or willful
misconduct in the performance of his duties hereunder;

 

(D)       Executive’s violation of
written company policies regarding employment, including without limitation
substance abuse, sexual harassment and discrimination, which violation has
materially interfered with the ability of Executive to perform his duties
hereunder or has caused significant harm to the Company or any of its
affiliates or their respective businesses, but excluding any violation which
results from an unintentional act or which results from an intentional act
which Executive did not know would constitute such a violation (unless
Executive reasonably should have known that such action could constitute such a
violation);

 

(E)         Willful and
repeated failure by Executive to comply with the lawful and reasonable
directives of the CEO consistent with Executive’s duties hereunder, provided
Executive does not cure such failure within 30 days after receipt from the
Company of written notice of such failure; or

 

(F)         Executive’s
material breach of any of the provisions of this Agreement or any other
agreement he has entered into with the Company or any of its stockholders or
affiliates; provided, Executive does not cure such breach within 30 days
after receipt from the Company of written notice of such breach;

 

provided,
however, that “Cause” shall cease to exist for an event on the 90th day following the later of its occurrence or
the Company’s knowledge thereof, unless the Company has given Executive written
notice of termination prior to such date.

 

(iii)                               If Executive’s
employment is terminated by the Company for Cause or if Executive resigns
without Good Reason, Executive shall be entitled to receive:

 

(A)      accrued, but unpaid Base
Salary, earned through the date of termination, payable in accordance with the
Company’s usual payment practices;

 

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(B)        any Annual
Bonus earned but unpaid as of the date of termination in respect of the
immediately preceding fiscal year, paid in accordance with Section 4
(except to the extent payment is otherwise deferred pursuant to any applicable
deferred compensation arrangement with the Company);

 

(C)        reimbursement,
within sixty (60) days following submission by Executive to the Company of
appropriate supporting documentation, for any unreimbursed business expenses
properly incurred by Executive in accordance with the Company’s policies prior
to the date of Executive’s termination of employment; provided that claims for
such reimbursement (accompanied by appropriate supporting documentation) are
submitted to the Company within ninety (90) days following the date of
Executive’s termination of employment; and

 

(D)       such fully vested and
non-forfeitable Employee Benefits, if any, as to which Executive may be
entitled under the employee benefit plans of the Company (the amounts described
in clauses (A) through (D) hereof being referred to as the “Accrued
Rights”).

 

Following such
termination of Executive’s employment by the Company for Cause or resignation
by Executive without Good Reason, except as set forth in this Section 7(a)(iii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

(b)         Disability or Death.

 

(i)                                     The Employment
Term and Executive’s employment hereunder shall terminate upon Executive’s
death and may be terminated by the Company if Executive becomes physically or
mentally incapacitated and is therefore unable for a period of six (6) consecutive
months or for an aggregate of nine (9) months in any twenty-four (24)
consecutive month period to perform Executive’s duties (such incapacity is
hereinafter referred to as “Disability”).

 

(ii)                                  Upon
termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to
receive:

 

(A)      the Accrued Rights;

 

(B)        continued
payment of the Base Salary in accordance with the Company’s normal payroll
practices until twelve (12) months after the date of such termination, which
payments shall commence on the 60th day following
Executive’s termination of employment (with payments in arrears from the
termination date); and

 

(C)        a pro rata
portion of the Annual Bonus, if any, that Executive would have otherwise been
entitled to receive pursuant to Section 4 hereof in respect of such fiscal
year had Executive’s employment not terminated, based upon the percentage of
the fiscal year that shall have elapsed through the date of Executive’s
termination of employment, payable when such Annual Bonus would have otherwise
been payable 

 

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had
Executive’s employment not terminated, but in no event later than March 15th of the year following the year in which the
termination occurs.

 

Following Executive’s
termination of employment due to death or Disability, except as set forth in
this Section 7(b)(ii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

(c)          By the Company
Without Cause or Resignation by Executive for Good Reason.

 

(i)                                     The Employment
Term and Executive’s employment hereunder may be terminated by the Company
without Cause (other than by reason of death or Disability) or by Executive for
Good Reason.

 

(ii)                                  For purposes of
this Agreement, “Good Reason” shall mean, without Executive’s consent, (A) the
failure of the Company to pay or cause to be paid Executive’s Base Salary or
Annual Bonus, if any, when due hereunder or failure to provide, in all material
respects, the benefits described in Section 5, (B) any substantial
and sustained diminution in Executive’s authority or responsibilities from
those described in Section 2 hereof, (C) relocation of the Company’s
headquarters more than fifty miles from the Pittsburgh, Pennsylvania
metropolitan area, or (D) a material breach by the Company of this
Agreement or any other plan or agreement under which Executive is entitled to
compensation or benefits by reason of services provided to the Company
hereunder; provided that the events described in clauses (A) through
(D) of this Section 7(c)(ii) shall constitute Good Reason only
if the Company fails to cure such event within 30 days after receipt from
Executive of written notice of the event which constitutes Good Reason; provided, further, that, “Good
Reason” shall cease to exist for any event described in this Section 7(c)(ii) on
the 90th day following the later of its occurrence or
Executive’s knowledge thereof, unless Executive has given the Company written
notice of termination prior to such date.

 

(iii)                          If Executive’s
employment is terminated by the Company without Cause (other than by reason of
death or Disability) or Executive resigns for Good Reason, Executive shall be
entitled to receive, in addition to the Accrued Rights and subject to (I) Executive’s
continued compliance with the provisions of Sections 9 and 10 (solely with
respect to clause (A) below) and (II) Executive’s execution, delivery
and non-revocation of a general release of claims in favor of the Company and
its affiliates in a form prescribed by the Company (the “Release”) within 45
days following the termination date:

 

(A)      continued payment of the
Base Salary in accordance with the Company’s normal payroll practices until
twelve (12) months after the date of such termination (such amounts, the “Salary
Continuation Payments”). The Salary Continuation Payments shall commence on the 60th day following Executive’s termination of
employment (with payments in arrears from the termination date);

 

(B)        a pro rata
portion of the Annual Bonus, if any, that Executive would have otherwise been
entitled to receive pursuant to Section 4 hereof in respect of such 

 

5

 

fiscal
year had Executive’s employment not terminated, based upon the percentage of
the fiscal year that shall have elapsed through the date of Executive’s
termination of employment, payable when such Annual Bonus would have otherwise
been payable had Executive’s employment not terminated, but in no event later
than March 15th of the year following the year in which the
termination occurs; and

 

(C)        continued
medical and dental coverage for a period of twelve (12) months following the
date of such termination, provided that payments for such coverage by Executive
shall be consistent with the payments required by other senior executives for
such coverage at that time.  In order to
facilitate such coverage, Executive and his spouse and dependents, as
applicable, in accordance with the Company’s policies in effect at the time of
Executive’s termination, shall agree to elect continuation coverage in
accordance with the provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1986, as amended (“COBRA”).

 

Following Executive’s
termination of employment by the Company without Cause (other than by reason of
death or Disability) or by Executive for Good Reason, except as set forth in
this Section 7(c)(iii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

(d)         Expiration of Employment
Term.  In the event either party
elects not to extend the Employment Term pursuant to Section 1, unless
Executive’s employment is earlier terminated pursuant to paragraphs (a), (b) or
(c) of this Section 7, Executive’s termination of employment
hereunder (whether or not Executive continues as an employee of the Company
thereafter) shall be deemed to occur on the close of business on the day
immediately preceding the next scheduled Extension Date and Executive shall be
entitled to receive the Accrued Rights.

 

Following such
termination of Executive’s employment hereunder as a result of either party’s
election not to extend the Employment Term, except as set forth in this Section 7(d),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

Unless the parties otherwise agree in writing, continuation
of Executive’s employment with the Company beyond the expiration of the
Employment Term shall be deemed an employment at-will and shall not be deemed
to extend any of the provisions of this Agreement and Executive’s employment
may thereafter be terminated at will by either Executive or the Company; provided
that the provisions of Sections 9, 10 and 11 of this Agreement shall survive
any termination of this Agreement or Executive’s termination of employment
hereunder.

 

(e)                                  Notice of
Termination. Any purported termination of employment by the
Company or by Executive (other than due to Executive’s death) shall be
communicated by written Notice of Termination to the other party hereto in
accordance with Section 13(h) hereof. For purposes of this Agreement,
a “Notice of Termination” shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of employment under the provision so indicated.

 

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8.                                       Change of
Control.

 

(a)                                  At the Company’s
request, Executive will agree to remain employed by the Company for up to one
year following a Change of Control (such actual period, the “Change of Control
Period”).

 

For purposes of this Agreement, “Change of
Control” means (i) the sale or disposition, in one or a series of related
transactions, of all or substantially all of the assets of DynaVox to any “person”
or “group” (as such terms are defined in Sections 13(d)(3) and 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Act”)) other than any
member of the Vestar/Company Group (as defined below); provided that,
for the avoidance of doubt, a sale of the Mayer-Johnson business shall not
constitute a Change of Control hereunder, (ii) any “person” or “group”,
other than any member of the Vestar/Company Group, is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Act), directly or
indirectly, of more than 50% of the total voting power of the voting stock of
DynaVox, including by way of purchase, merger, consolidation or otherwise, or (iii) during any period of two (2) consecutive
years, individuals who at the beginning of such period constituted the Board
(together with any new directors whose election by such Board or whose
nomination for election by the shareholders of DynaVox was approved by a vote of a majority of
the directors of DynaVox, then still in office, who were either directors at
the beginning of such period or whose election or nomination for election was
previously so approved) (the “Incumbent Board”) cease for any reason to
constitute a majority of the Board then in office; provided that, any
director appointed or elected to the Board to avoid or settle a threatened or
actual proxy contest shall in no event be deemed to be an individual on the
Incumbent Board.

 

For purposes of this Agreement, “Vestar/Company Group” means (i) Vestar
Capital Partners IV, L.P. or any of its Affiliates, (ii) any party from
time to time to the Securityholders Agreement, dated as of or about the date of
the IPO, by and among DynaVox, DynaVox Systems Holdings LLC and the
Securityholders from time to time parties thereto, as such agreement may be
amended from time to time (the “Securityholders Agreement”) unless such party
together with its Affiliates is the holder of securities representing at least
50.01% of the outstanding voting securities of DynaVox or is deemed to
beneficially own at least 50.01% of the outstanding voting securities of
DynaVox for purposes of Rule 16a-1(a)(2) under the Act or any group
(as such term is used in Section 13(d)(3) of the Act) to the extent
that such group may be deemed to exist solely as a result of the
Securityholders Agreement, (iii) any employee benefit plan (or trust
forming a part thereof) maintained by DynaVox or any of its Affiliates, or (iv) any
corporation or other “person” of which a majority of the voting power of its
voting equity securities and equity interest is owned, directly or indirectly,
by DynaVox.

 

For
purposes of this Section 8(a), “Affiliate” means, with respect to any entity, any entity directly or
indirectly controlling, controlled by, or under common control with, such
entity.

 

(b)                                 Notwithstanding
anything herein to the contrary, subject to Executive (x) complying with
his obligations under Section 8(a) above and (y) providing
written notice to the Company no later than ninety (90) days prior to the end
of the Change of Control Period of his intention to terminate employment, if
Executive’s employment is terminated by Executive without Good Reason within
the ninety (90) day period following the end of the 

 

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Change of Control Period,
Executive shall be entitled to receive, in addition to the Accrued Rights and
subject to (I) Executive’s continued compliance with the provisions of
Sections 9 and 10 (solely with respect to clause (A) below) and (II) Executive’s
execution, delivery and non-revocation of the Release within 45 days following
the termination date:

 

(A)                              continued
payment of the Base Salary in accordance with the Company’s normal payroll
practices until twelve (12) months after the date of such termination (such
amounts, the “CoC Continuation Payments”). 
The CoC Continuation Payments shall commence on the 60th day following Executive’s termination of
employment (with payments in arrears from the termination date);

 

(B)                                continued
medical and dental coverage for a period of twelve (12) months following the
date of such termination, provided that payments for such coverage by Executive
shall be consistent with the payments required by other senior executives for
such coverage at that time.  In order to
facilitate such coverage, Executive and his spouse and dependents, as
applicable, in accordance with the Company’s policies in effect at the time of
Executive’s termination, shall agree to elect continuation coverage in
accordance with the provisions of COBRA; and

 

(C)                                a pro rata
portion of the Annual Bonus, if any, that Executive would have otherwise been
entitled to receive pursuant to Section 4 hereof in respect of such fiscal
year had Executive’s employment not terminated, based upon the percentage of the
fiscal year that shall have elapsed through the date of Executive’s termination
of employment, payable when such Annual Bonus would have otherwise been payable
had Executive’s employment not terminated, but in no event later than March 15th of the year following the year in which the
termination occurs.

 

Following
Executive’s termination of employment by Executive without Good Reason
following a Change of Control, except as set forth in this Section 8,
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

9.                                       Non-Competition.

 

(a)          Executive acknowledges and
recognizes the highly competitive nature of the businesses of the Company and
its affiliates and accordingly agrees as follows:

 

(1)                                  During the Employment Term and, for a period
of two years following the date Executive ceases to be employed by the Company
for any reason (the “Restricted Period”), Executive will not, whether on
Executive’s own behalf or on behalf of or in conjunction with any person, firm,
partnership, joint venture, association, corporation or other business
organization, entity or enterprise whatsoever (“Person”), directly or
indirectly solicit or assist in soliciting in competition with the Company, the
business of any client or prospective client:

 

(i)                                     with whom
Executive had personal contact or dealings on behalf of the Company during the
one year period preceding Executive’s termination of employment;

 

8

 

(ii)                                  with whom
employees reporting to Executive have had personal contact or dealings on
behalf of the Company during the one year immediately preceding the Executive’s
termination of employment; or

 

(iii)                               for whom
Executive had direct or indirect responsibility during the one year immediately
preceding Executive’s termination of employment.

 

(2)                                  During the Restricted Period, Executive will
not directly or indirectly:

 

(i)                                     engage in any
business that competes with the Company or its affiliates (including, without
limitation, businesses which the Company or its affiliates have specific plans
to conduct in the future and as to which Executive is aware of such planning)
in the area of assistive technology in North America or Europe (a “Competitive
Business”);

 

(ii)                                  enter the
employ of, or render any services to, any Person (or any division or controlled
or controlling affiliate of any Person) who or which engages in a Competitive
Business;

 

(iii)                               acquire a
financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

 

(iv)                              interfere with,
or attempt to interfere with, business relationships (whether formed before, on
or after the date of this Agreement) between the Company or any of its
affiliates and customers, clients, suppliers, partners, members or investors of
the Company or its affiliates.

 

(3)                                  Notwithstanding anything to the contrary in
this Agreement, Executive may, directly or indirectly own, solely as an
investment, securities of any Person engaged in the business of the Company or
its affiliates (including a Competitive Business) which are publicly traded on
a national or regional stock exchange or on the over-the-counter market if
Executive (i) is not a controlling person of, or a member of a group which
controls, such person and (ii) does not, directly or indirectly, own 5% or
more of any class of securities of such Person.

 

(4)                                  During the Restricted Period, Executive will
not, whether on Executive’s own behalf or on behalf of or in conjunction with
any Person, directly or indirectly:

 

(i)                                     solicit or
encourage any employee of the Company or its affiliates to leave the employment
of the Company or its affiliates; or

 

(ii)                                  hire any such
employee who was employed by the Company or its affiliates as of the date of
Executive’s termination of employment with the Company or who left the
employment of the Company or its affiliates coincident with, or within one year
prior to or after, the termination of Executive’s employment with the Company.

 

9

 

(5)                                  During the Restricted Period, Executive will
not, directly or indirectly, solicit or encourage to cease to work with the
Company or its affiliates any consultant then under contract with the Company
or its affiliates.

 

(6)                                  During
the Employment Term and at all times thereafter, Executive agrees not to engage
in any act or make any public statement that is intended, or may reasonably be
expected, to harm the reputation, business, prospects or operations of the
Company or any of its affiliates.  The
Company agrees to use reasonable efforts to instruct its employees not to
engage in any act or make any public statement that is intended, or may reasonably
be expected, to harm the reputation of Executive or those business prospects of
his of which the Company is aware.

 

(b)         It is expressly understood
and agreed that although Executive and the Company consider the restrictions
contained in this Section 9 to be reasonable, if a final judicial
determination is made by a court of competent jurisdiction that the time or
territory or any other restriction contained in this Agreement is an
unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.  Alternatively, if any court of competent
jurisdiction finds that any restriction contained in this Agreement is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

 

The provisions of this Section 9
shall survive the termination of Executive’s employment for any reason.

 

10.                                 Confidentiality;
Intellectual Property.

 

(a)          Confidentiality.

 

(i)                                     Executive will
not at any time (whether during or after Executive’s employment with the Company)
(x) retain or use for the benefit, purposes or account of Executive or any
other Person; or (y) disclose, divulge, reveal, communicate, share,
transfer or provide access to any Person outside the Company (other than its
professional advisers who are bound by confidentiality obligations), any
non-public, proprietary or confidential information —including without
limitation trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits,
pricing, costs, products, services, vendors, customers, clients, partners,
investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, government and regulatory activities and approvals —
concerning the past, current or future business, activities and operations of
the Company, its subsidiaries or affiliates and/or any third party that has
disclosed or provided any of same to the Company on a confidential basis (“Confidential
Information”) without the prior written authorization of the Board.

 

(ii)                                  “Confidential
Information” shall not include any information that is (a)  generally
known to the industry or the public other than as a result of Executive’s
breach of this covenant or any breach, to Executive’s knowledge, of other
confidentiality obligations by

 

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third parties; (b) made legitimately available to Executive by a
third party without breach of any confidentiality obligation; or (c) required
by law to be disclosed; provided that Executive shall give prompt
written notice to the Company of such requirement, disclose no more information
than is so required, and cooperate with any attempts by the Company to obtain a
protective order or similar treatment.

 

(iii)                  Except as required by law, and unless and until
this Agreement is disclosed by the Company or any of its affiliates as may be
required by law, Executive will not disclose to anyone, other than Executive’s
immediate family and legal or financial advisors, the existence or contents of
this Agreement; provided that Executive may disclose to any prospective
future employer the provisions of Sections 9 and 10 of this Agreement provided
they agree to maintain the confidentiality of such terms.

 

(iv)                  Upon termination of Executive’s employment with the
Company for any reason, Executive shall (x) cease and not thereafter
commence use of any Confidential Information or other intellectual property
(including, without limitation, any patent, invention, copyright, trade secret,
trademark, trade name, logo, domain name or other source indicator) owned or
used by the Company, its subsidiaries or affiliates; (y) immediately
destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers,
plans, computer files, letters and other data) in Executive’s possession or
control (including any of the foregoing stored or located in Executive’s
office, home, laptop or other computer, whether or not Company property) that
contain Confidential Information or otherwise relate to the business of the
Company or any of its affiliates and subsidiaries, except that Executive may
retain (i) only those portions of any personal notes, notebooks and
diaries that do not contain any Confidential Information and (ii) any
Confidential Information Executive reasonably believes is required in relation
to any dispute regarding Executive’s termination of employment, provided such
information remains otherwise subject to the terms and conditions of this
Agreement; and (z) notify and fully cooperate with the Company regarding
the delivery or destruction of any other Confidential Information of which
Executive is or becomes aware.

 

(b)   Intellectual Property.

 

(i)                    If Executive creates, invents, designs, develops,
contributes to or improves any works of authorship, inventions, intellectual
property, materials, documents or other work product (including, without
limitation, research, reports, software, databases, systems, applications,
presentations, textual works, content or audiovisual materials) (“Works”),
either alone or with third parties, at any time during Executive’s employment
by the Company and within the scope of such employment and/or with the use of
any Company resources (including personnel, equipment and computers, systems or
networks) (“Company Works”), Executive shall promptly and fully disclose same
to the Company and hereby irrevocably assigns, transfers and conveys, to the
maximum extent permitted by applicable law, all rights and intellectual
property rights therein (including rights under patent, industrial property,
copyright, trademark, trade secret, unfair competition and related laws) to the
Company to the extent ownership of any such rights does not vest originally in
the Company.

 

11

 

(ii)                   Executive has attached hereto, as Exhibit A,
a list describing all Works that were created, invented, designed, developed,
improved or contributed to by Executive either solely or jointly with others
prior to Executive’s employment with the Company which relate to the Company’s
proposed or current business, services, products or research and development (“Prior
Works”); or, if no such list is attached, Executive represents that there are
no such Prior Works.  If in the course of
Executive’s employment with the Company, Executive uses or relies upon a Prior
Work in Executive’s creation or contribution to any Company Work, Executive
shall inform the Company promptly and, upon request, use Executive’s best
efforts to procure any consents of third parties necessary for the Company’s
use of such Prior Work. To the fullest extent permissible by law, Executive
hereby grants the Company a non-exclusive royalty-free, irrevocable, perpetual,
worldwide license under all intellectual property rights in Executive’s Prior
Works in connection with the Company’s current and future business.

 

(iii)                  Executive agrees to keep and maintain adequate and
current written records (in the form of notes, sketches, drawings, and any
other form or media requested by the Company) of all Company Works.  The records will be available to and remain
the sole property and intellectual property of the Company at all times.

 

(iv)                  Executive shall take all requested actions and
execute all requested documents (including any licenses or assignments required
by a government contract) at the Company’s expense (but without further
remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s
rights in the Company Works.  If the
Company is unable for any other reason to secure Executive’s signature on any
document for this purpose, then Executive hereby irrevocably designates and
appoints the Company and its designees as Executive’s agent and attorney in
fact, to act for and in Executive’s behalf and stead to execute any documents
and to do all other lawfully permitted acts in connection with the foregoing.

 

(v)                   Executive shall not improperly use for the benefit
of, bring to any premises of, divulge, disclose, communicate, reveal, transfer
or provide access to, or share with the Company any confidential, proprietary
or non-public information or intellectual property relating to a former
employer or other third party without the prior written permission of such
third party.  Executive hereby
indemnifies, holds harmless and agrees to defend the Company and its officers,
directors, partners, employees, agents and representatives from any breach of
the foregoing covenant.  Executive shall
comply with all relevant policies and guidelines of the Company, including
regarding the protection of confidential information and intellectual property
and potential conflicts of interest. 
Executive acknowledges that the Company may amend any such policies and
guidelines from time to time, and that Executive remains at all times bound by
their most current version.

 

(vi)                  The provisions of Section 10 shall survive the
termination of Executive’s employment for any reason.

 

11.           Specific Performance. Executive acknowledges and
agrees that the Company’s remedies at law for a breach or threatened breach of
any of the provisions of Section 9 or Section 10 would be inadequate
and the Company would suffer irreparable damages as a result of such breach or
threatened breach.  In recognition of
this fact, Executive agrees that, in

 

12

 

the
event of such a breach or threatened breach, in addition to any remedies at
law, the Company, without posting any bond, shall be entitled to cease making
any payments or providing any benefit otherwise required by this Agreement
(other than any payments or benefits which have been earned and vested) and
obtain equitable relief in the form of specific performance, temporary
restraining order, temporary or permanent injunction or any other equitable
remedy which may then be available.

 

12.           Compliance with IRC Section 409A.  This Agreement is intended to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) and will be
interpreted accordingly.  References
under this Agreement to Executive’s termination of employment shall be deemed
to refer to the date upon which Executive has experienced a “separation from
service” within the meaning of Section 409A of the Code.  Notwithstanding anything herein to the
contrary, (i) if at the time of Executive’s separation from service with
the Company and all of its affiliates Executive is a “specified employee” as
defined in Section 409A of the Code (and any related regulations or other
pronouncements thereunder), and the deferral of the commencement of any
payments or benefits otherwise payable hereunder as a result of such separation
from service is necessary in order to prevent any accelerated or additional tax
under Section 409A of the Code, then the Company will defer the
commencement of the payment of any such payments or benefits hereunder (without
any reduction in such payments or benefits ultimately paid or provided to
Executive) until the date that is six months following Executive’s separation
from service (or the earliest date as is permitted under Section 409A of
the Code without any accelerated or additional tax), (ii) if any other
payments of money or other benefits due to Executive hereunder could cause the
application of an accelerated or additional tax under Section 409A of the
Code, such payments or other benefits shall be deferred if deferral will make
such payment or other benefits compliant under Section 409A of the Code,
or otherwise such payment or other benefits shall be restructured, to the extent
possible, in a manner, determined by the Board following consultation with
Executive, that is reasonably expected not to cause such an accelerated or
additional tax, and (iii) if any payments
of money or other benefits due to Executive hereunder or under any other plan
or agreement under which Executive is entitled to compensation or benefits by
reason of services provided to the Company are nevertheless subject to income
inclusion by reason of failure to meet the requirements of Section 409A of
the Code, payment in an amount not to exceed the amount required to be included
in income as a result of such failure shall be made immediately upon such
failure; provided that deferral or restructuring of payments or benefits as
provided for under clause (ii) above is not possible or is unsuccessful.
 The Company shall consult with Executive in good faith regarding the
implementation of the provisions of this Section 12; provided that neither
the Company nor any of its employees or representatives shall have any
liability to Executive with respect to thereto. 
To the extent any reimbursements or in-kind benefits due to Executive
under this Agreement constitute “deferred compensation” under Section 409A
of the Code, any such reimbursements or in-kind benefits shall be paid to
Executive in a manner consistent with Treasury Regulation Section 1.409A-3(i)(1)(iv).  For purposes of Section 409A of the
Code, each payment made under this Agreement shall be designated as a “separate
payment” within the meaning of Section 409A of the Code.

 

13

 

13.                                 Miscellaneous.

 

(a)   Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the Commonwealth of Pennsylvania, without regard
to conflicts of laws principles thereof.

 

(b)   Arbitration. Except as provided in Section 11 of this
Agreement, any controversy or claim arising out of or relating to this
Agreement or Executive’s employment with the Company or the termination thereof
shall be resolved by binding confidential arbitration, to be held in
Pittsburgh, Pennsylvania, in accordance with the Employee Dispute Resolution Rules of
the American Arbitration Association. 
Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.

 

(c)   Entire Agreement/Amendments. This Agreement together with
the Program contains the entire understanding of the parties with respect to
the employment of Executive by the Company. There are no restrictions,
agreements, promises, warranties, covenants or undertakings between the parties
with respect to the subject matter herein other than those expressly set forth
herein and in the Program. This Agreement may not be altered, modified or
amended except by written instrument signed by the parties hereto.

 

(d)   No Waiver. The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party’s rights or deprive such party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement.

 

(e)   Severability. In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

 

(f)    Assignment. This Agreement, and all of Executive’s rights and
duties hereunder, shall not be assignable or delegable by Executive.  Any purported assignment or delegation by
Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the Company
to a person or entity which is a majority owned affiliate that is transferred
substantially all of the business operations of the Company.  Upon such assignment, the rights and
obligations of the Company hereunder shall become the rights and obligations of
such affiliate or successor person or entity.

 

(g)   Successors; Binding Agreement. This Agreement shall inure
to the benefit of and be binding upon personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

 

(h)   Notice.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered by hand or overnight
courier to the respective addresses set forth below in this Agreement, or to
such other address as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address shall be
effective only upon receipt.

 

14

 

If to the Company:

 

Dynavox Systems LLC

2100 Wharton Street

Suite 400

Pittsburgh, PA 15203

Attention: Chief Financial Officer

 

If to Executive:

 

To the most recent address on file with the Company.

 

(i)    No Set Off; Mitigation. 
Executive shall not be required to mitigate damages with respect to the
termination of her employment under this Agreement by seeking other employment
or otherwise, and there shall be no offset against amounts due Executive under
this Agreement on account of subsequent employment.  Additionally, amounts owed to Executive under
this Agreement shall not be offset by any claims the Company may have against
Executive.

 

(j)    Executive Representation. Executive hereby represents to
the Company that the execution and delivery of this Agreement by Executive and
the Company and the performance by Executive of Executive’s duties hereunder
shall not constitute a breach of, or otherwise contravene, the terms of any
employment agreement or other agreement or policy to which Executive is a party
or otherwise bound.

 

(k)   Prior
Agreements.  This Agreement and the Program supersede all
prior agreements and understandings (including verbal agreements) between
Executive and the Company and/or its affiliates regarding the terms and
conditions of Executive’s employment with the Company and/or its affiliates,
including, without limitation, the Employment Agreement
between Executive and Sunrise Medical Inc., dated April 10, 1998 and the
Employment Agreement between Executive and Sunrise Medical Inc., dated as of June 8,
2001.

 

(l)    Cooperation. Executive shall provide Executive’s reasonable
cooperation in connection with any action or proceeding (or any appeal from any
action or proceeding) with a third party which relates to events occurring
during Executive’s employment hereunder, subject to reimbursement by the
Company for all reasonable expenses incurred in connection therewith.  This provision shall survive any termination
of this Agreement.

 

(m)  Withholding Taxes. The Company may withhold from any amounts payable
under this Agreement such Federal, state and local taxes as may be required to
be withheld pursuant to any applicable law or regulation, which amounts will be
paid over by the Company to the appropriate taxing authorities on a timely
basis.

 

(n)   Counterparts. This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

(Remainder of page intentionally left blank)

 

15

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the day and year first above written.

 

	
  DYNAVOX
  SYSTEMS LLC

  	
   

  	
  ROBERT
  CUNNINGHAM

  
	
   

  	
   

  	
   

  
	
  /s/
  Michelle Heying

  	
   

  	
  /s/
  Robert Cunningham

  
	
   

  	
   

  	
   

  
	
  By:
  Michelle Heying

  	
   

  	
   

  
	
  Title:
  President & Chief Operating Officer

  	
   

  	
   

  

 

16

 

EXHIBIT A

PRIOR INVENTIONS

 

NONEExhibit
10.17

 

AMENDED AND RESTATED

 

DYNAVOX SYSTEMS LLC

 

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN

 

 

(amended and restated
effective as of April 7, 2010)

 

 

AMENDED AND RESTATED

DYNAVOX SYSTEMS LLC

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article  I. – Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Account

  	
  1

  
	
  Section 1.02

  	
  Act

  	
  1

  
	
  Section 1.03

  	
  Administrator

  	
  1

  
	
  Section 1.04

  	
  Affiliate

  	
  2

  
	
  Section 1.05

  	
  Board

  	
  2

  
	
  Section 1.06

  	
  Bonus

  	
  2

  
	
  Section 1.07

  	
  Cause

  	
  2

  
	
  Section 1.08

  	
  Change-in-Control

  	
  2

  
	
  Section 1.09

  	
  Code

  	
  3

  
	
  Section 1.10

  	
  Compensation

  	
  3

  
	
  Section 1.11

  	
  Deferrals

  	
  3

  
	
  Section 1.12

  	
  Deferral Election

  	
  3

  
	
  Section 1.13

  	
  Disability

  	
  3

  
	
  Section 1.14

  	
  DynaVox

  	
  3

  
	
  Section 1.15

  	
  Eligible Employee

  	
  3

  
	
  Section 1.16

  	
  Employee

  	
  4

  
	
  Section 1.17

  	
  Employer

  	
  4

  
	
  Section 1.18

  	
  Employer Discretionary Contribution

  	
  4

  
	
  Section 1.19

  	
  ERISA

  	
  4

  
	
  Section 1.20

  	
  Investment Fund

  	
  4

  
	
  Section 1.21

  	
  Participant

  	
  4

  
	
  Section 1.22

  	
  Plan Year

  	
  4

  
	
  Section 1.23

  	
  Performance-based Compensation

  	
  4

  
	
  Section 1.24

  	
  Retirement

  	
  5

  
	
  Section 1.25

  	
  Salary

  	
  5

  
	
  Section 1.26

  	
  Separation from Service

  	
  5

  
	
  Section 1.27

  	
  Service Recipient

  	
  5

  
	
  Section 1.28

  	
  Specified Employee

  	
  5

  
	
  Section 1.29

  	
  Trust

  	
  6

  
	
  Section 1.30

  	
  Trustee

  	
  6

  
	
  Section 1.31

  	
  Vestar/Company Group

  	
  6

  
	
  Section 1.32

  	
  Years of Service

  	
  6

  
	
   

  	
   

  	
   

  
	
  Article  II. – Participation

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Commencement of Participation

  	
  6

  
	
  Section 2.02

  	
  Loss of Eligible Employee Status

  	
  7

  

 

i

 

	
  Article  III. – Contributions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Deferral Elections - General

  	
  7

  
	
  Section 3.02

  	
  Time of Election

  	
  7

  
	
  Section 3.03

  	
  Cancellation of Deferral Election due to Disability

  	
  8

  
	
  Section 3.04

  	
  Distribution Elections

  	
  8

  
	
  Section 3.05

  	
  Additional Requirements

  	
  8

  
	
  Section 3.06

  	
  Employer Discretionary Contributions

  	
  9

  
	
  Section 3.07

  	
  Crediting of Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  Article  IV. – Vesting

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Vesting of Deferrals

  	
  9

  
	
  Section 4.02

  	
  Vesting of Employer Discretionary Contributions

  	
  9

  
	
  Section 4.03

  	
  Vesting in Event of Retirement, Disability, Death or
  Change-in-Control

  	
  9

  
	
  Section 4.04

  	
  Amounts Not Vested

  	
  10

  
	
  Section 4.05

  	
  Forfeitures

  	
  10

  
	
  Section 4.06

  	
  Cause

  	
  10

  
	
   

  	
   

  	
   

  
	
  Article  V. – Accounts

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Accounts

  	
  11

  
	
  Section 5.02

  	
  Investments, Gains and Losses

  	
  11

  
	
   

  	
   

  	
   

  
	
  Article  VI. – Distributions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Distribution Election

  	
  12

  
	
  Section 6.02

  	
  Distributions from an In-Service Account

  	
  12

  
	
  Section 6.03

  	
  Distributions Upon Retirement

  	
  12

  
	
  Section 6.04

  	
  Substantially Equal Annual Installments

  	
  13

  
	
  Section 6.05

  	
  Distributions due to other Separation from Service

  	
  13

  
	
  Section 6.06

  	
  Distributions upon Separation from Service due to Disability

  	
  13

  
	
  Section 6.07

  	
  Distributions upon Death

  	
  13

  
	
  Section 6.08

  	
  Changes to Distribution Elections

  	
  13

  
	
  Section 6.09

  	
  Cash-Out Provision

  	
  14

  
	
  Section 6.10

  	
  Unforeseeable Emergency

  	
  14

  
	
  Section 6.11

  	
  Distributions to Specified Employees

  	
  14

  
	
  Section 6.12

  	
  Exception to Separation from Service

  	
  14

  
	
  Section 6.13

  	
  Minimum Distribution

  	
  15

  
	
  Section 6.14

  	
  Domestic Relations Orders

  	
  15

  
	
   

  	
   

  	
   

  
	
  Article  VII. – Beneficiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Beneficiaries

  	
  15

  
	
  Section 7.02

  	
  Lost Beneficiary

  	
  15

  

 

ii

 

	
  Article  VIII. – Funding

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Prohibition Against Funding

  	
  16

  
	
  Section 8.02

  	
  Deposits in Trust

  	
  16

  
	
  Section 8.03

  	
  Withholding of Employee Contributions

  	
  16

  
	
   

  	
   

  	
   

  
	
  Article  IX. – Claims Administration

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  General

  	
  16

  
	
  Section 9.02

  	
  Claims Procedure

  	
  16

  
	
  Section 9.03

  	
  Right of Appeal

  	
  17

  
	
  Section 9.04

  	
  Review of Appeal

  	
  17

  
	
  Section 9.05

  	
  Disability claims procedures

  	
  17

  
	
  Section 9.06

  	
  Designation

  	
  19

  
	
  Section 9.07

  	
  Further Proceedings

  	
  19

  
	
   

  	
   

  	
   

  
	
  Article  X. – General Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Administrator

  	
  19

  
	
  Section 10.02

  	
  No Assignment

  	
  20

  
	
  Section 10.03

  	
  No Employment Rights

  	
  20

  
	
  Section 10.04

  	
  Incompetence

  	
  21

  
	
  Section 10.05

  	
  Identity

  	
  21

  
	
  Section 10.06

  	
  Other Benefits

  	
  21

  
	
  Section 10.07

  	
  Expenses

  	
  21

  
	
  Section 10.08

  	
  Insolvency

  	
  21

  
	
  Section 10.09

  	
  Amendment or Modification; Code Section 409A

  	
  21

  
	
  Section 10.10

  	
  Plan Suspension or Termination

  	
  22

  
	
  Section 10.11

  	
  Construction

  	
  23

  
	
  Section 10.12

  	
  Governing Law

  	
  23

  
	
  Section 10.13

  	
  Severability

  	
  23

  
	
  Section 10.14

  	
  Headings

  	
  23

  
	
  Section 10.15

  	
  Terms

  	
  23

  
	
  Section 10.16

  	
  Payments Upon Income Inclusion Under 409A

  	
  23

  

 

iii

 

AMENDED AND RESTATED

DYNAVOX SYSTEMS LLC

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

DynaVox
Systems LLC, a Delaware limited liability corporation, hereby adopts this
Amended and Restated DynaVox Systems LLC Supplemental Executive Retirement
Plan, as it may be amended from time to time (the “Plan”) for the benefit of a
select group of management or highly compensated employees. Further, Employer
hereby directs that any amounts credited to any prior nonqualified deferred
compensation for any individuals eligible for this Plan shall be withdrawn from
the prior plan and credited to the Plan to be maintained and administered in
compliance with Internal Revenue Code Section 409A and the regulations and
guidance promulgated thereunder, and shall be considered to be an amendment to
the extent necessary to ensure compliance with Internal Revenue Code Section 409A.
The crediting of the aforementioned prior plan amounts shall be done as soon as
administratively feasible following the effective date of the Plan. This Plan
is an unfunded arrangement and is intended to be exempt from the participation,
vesting, funding, and fiduciary requirements set forth in Title I of the Employee
Retirement Income Security Act of 1974, as amended. It is intended to comply
with Internal Revenue Code Section 409A. Notwithstanding anything to the
contrary contained herein and with respect to benefits that were earned and
vested under the Plan prior to January 1, 2005 (as determined under
Internal Revenue Code Section 409A, “Grandfathered Benefits”), such
Grandfathered Benefits are intended to be exempt from Internal Revenue Code Section 409A
and shall be administered and interpreted in a manner intended to ensure that
any such Grandfathered Benefits remains exempt from Internal Revenue Code Section 409A.
No amendments or other modifications shall be made to such Grandfathered
Benefits except as specifically set forth in a separate writing thereto, and no
amendment or modification to the Plan shall be interpreted or construed in a
manner that would cause a material modification (within the meaning of Internal
Revenue Code Section 409A, including Treas. Reg. § 1.409A-6(a)(4)) to any
such Grandfathered Benefits.

 

ARTICLE  I. – DEFINITIONS

 

Section 1.01         Account.

 

The
bookkeeping account established for each Participant as provided in Section 5.01
hereof.

 

Section 1.02         Act.

 

The
Securities Exchange Act of 1934, as amended.

 

Section 1.03         Administrator.

 

An
administrative committee appointed by the Board. The Administrator shall serve
as the agent for the Employer with respect to the Trust.

 

 

Section 1.04         Affiliate.

 

With
respect to any entity, any entity directly or indirectly controlling,
controlled by, or under common control with, such entity.

 

Section 1.05         Board.

 

The
Board of Directors of DynaVox.

 

Section 1.06         Bonus.

 

Compensation
which is designated as such by the Employer and which relates to services
performed during an incentive period by an Eligible Employee in addition to his
or her Salary, including any pretax elective deferrals from said Bonus to any
Employer sponsored plan that includes amounts deferred under a Deferral
Election or any elective deferral as defined in Code Section 402(g)(3) or any
amount contributed or deferred at the election of the Eligible Employee in
accordance with Code Section 125 or 132(f)(4).

 

Section 1.07         Cause.

 

(i) a
charge, indictment or conviction of, or a plea of guilty or nolo contendere to, a misdemeanor involving
moral turpitude or a felony, whether or not in connection with the performance
by a Participant of his or her duties or obligations to the Employer; (ii) theft
relating to the business of the Employer or dishonesty with respect to a
material aspect of the business of the Employer; (iii) gross negligence or
willful misconduct in the performance of the Participant’s duties or
obligations to the Employer, or engaging in illegal activity in connection
therewith, including, without limitation, a Participant’s engagement in any act
or course of conduct that would result in the termination or revocation of, or
jeopardize the renewal of, any licenses, permits, consents, authorization,
approvals or material agreements necessary for the Employer to conduct its business
or that would have an adverse effect on the Employer; (iv) violation of
any provision of any nonsolicitation, noncompetition or nondisclosure contained
in any agreement entered into by and between a Participant and the Employer; or
(v) “cause” as defined in the Participant’s employment and/or change of
control agreement, if any, with the Employer. The determination as to whether
or not Cause exists will be made by the Administrator.

 

Section 1.08         Change-in-Control.

 

Provided
that such definition shall be interpreted in a manner that is consistent with
Code Section 409A and regulations thereunder, a “Change-in-Control” shall
mean (i) the sale or disposition, in one or a series of related
transactions, of all or substantially all of the assets of DynaVox to any “person”
or “group” (as such terms are defined in Sections 13(d)(3) and 14(d)(2) of
the Act) other than any member of the Vestar/Company Group; provided
that, for the avoidance of doubt, a sale of the Mayer-Johnson business shall
not constitute a Change-in-Control hereunder, (ii) any “person” or “group”,
other than any member of the Vestar/Company Group, is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Act), directly or
indirectly, of more than 50% of the total voting power of the voting stock of
DynaVox, including by way of purchase, merger, consolidation or otherwise, or (iii) during
any period of two (2) consecutive years, individuals who at the beginning
of such period constituted

 

2

 

the
Board (together with any new directors whose election by such Board or whose
nomination for election by the shareholders of DynaVox was approved by a vote
of a majority of the directors of DynaVox, then still in office, who were
either directors at the beginning of such period or whose election or
nomination for election was previously so approved) (the “Incumbent Board”)
cease for any reason to constitute a majority of the Board then in office;
provided that, any director appointed or elected to the Board to avoid or
settle a threatened or actual proxy contest shall in no event be deemed to be
an individual on the Incumbent Board.

 

Section 1.09         Code.

 

The
Internal Revenue Code of 1986, as amended.

 

Section 1.10         Compensation.

 

The
Participant’s earned income, including Salary, Bonus, Performance-based
Compensation and other remuneration from the Employer as may be included by the
Administrator.

 

Section 1.11         Deferrals.

 

The
portion of Compensation that a Participant elects to defer in accordance with Section 3.01
hereof

 

Section 1.12         Deferral
Election.

 

The
separate agreement, submitted to the Administrator, by which an Eligible
Employee agrees to participate in the Plan and make Deferrals thereto.

 

Section 1.13         Disability.

 

A
Participant shall be considered disabled if: (i) the Participant is unable
to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months; (ii) the Participant is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 3 months
under an accident and health plan covering employees of the Participant’s
Employer; or (iii) determined to be totally disabled by the Social
Security Administration.

 

Section 1.14         DynaVox

 

DynaVox
Inc., a Delaware corporation.

 

Section 1.15         Eligible
Employee.

 

An
Employee shall be considered an Eligible Employee if such Employee is a member
of a select group of management or highly compensated employees and is
designated as an Eligible

 

3

 

Employee
by the Administrator. The designation of an Employee as an Eligible Employee in
any year shall not confer upon such Employee any right to be designated as an
Eligible Employee in any future Plan Year. Designations need not be uniform
among all Employees, or classes or categories of Employees, and may be applied
to such Employees, or classes or categories of Participants, as the
Administrator, in its sole and absolute discretion, considers necessary,
appropriate or desirable.

 

Section 1.16         Employee.

 

Any
person employed by the Employer.

 

Section 1.17         Employer.

 

DynaVox
Systems LLC and its subsidiaries and affiliates.

 

Section 1.18         Employer
Discretionary Contribution.

 

A
discretionary contribution made by the Employer that is credited to one or more
Participant’s Accounts in accordance with the terms of Section 3.06
hereof.

 

Section 1.19         ERISA.

 

The
Employee Retirement Income Security Act of 1974, as amended.

 

Section 1.20         Investment
Fund.

 

Each
investment(s) which serves as a means to measure value, increases or
decreases with respect to a Participant’s Accounts.

 

Section 1.21         Participant.

 

An
Eligible Employee who is a Participant as provided in Article 2.

 

Section 1.22         Plan
Year.

 

January 1
through December 31.

 

Section 1.23         Performance-based
Compensation.

 

Performance-based
compensation shall mean compensation that (i) meets the definition of Code
Section 409A(a)(4)(B)(iii) and related guidance and regulations, (ii) is
designated as such by the Employer and relates to services performed during a
performance period of at least twelve months by an Eligible Employee, including
any pretax elective deferrals from said Performance-based Compensation to any
Employer sponsored plan that includes amounts deferred under a Deferral
Election or any elective deferral as defined in Code Section 402(g)(3) or
any amount contributed or deferred at the election of the Eligible Employee in
accordance with Code Section 125 or 132(f)(4).

 

4

 

Section 1.24         Retirement.

 

Retirement
means a Participant has reached age fifty-five (55) and has five (5) Years
of Service and has a Separation from Service.

 

Section 1.25         Salary.

 

An
Eligible Employee’s base salary earned during a Plan Year, including any pretax
elective deferrals from said Salary to any Employer sponsored plan that
includes amounts deferred under a Deferral Election or any elective deferral as
defined in Code Section 402(g)(3) or any amount contributed or deferred at the
election of the Eligible Employee in accordance with Code Section 125 or
132(f)(4).

 

Section 1.26         Separation
from Service.

 

As
provided by regulations promulgated under Code Section 409A, a Participant
shall incur a Separation from Service with the Service Recipient due to death,
retirement or other termination of employment with the Service Recipient unless
the employment relationship is treated as continuing intact while the
individual is on military leave, sick leave, or other bona fide leave of
absence if the period of such leave does not to exceed six months, or if
longer, so long as the individual retains a right to reemployment with the
Service Recipient under an applicable statute or by contract. A Separation from
Service shall mean a Participant’s death, retirement or other termination of
employment with the Employer and all of its controlled group members within the
meaning of Section 409A of the Code. For purposes hereof, the
determination of controlled group members shall be made pursuant to the
provisions of Section 414(b) and 414(c) of the Code; provided
that the language “at least 50 percent” shall be used instead of “at least 80
percent” in each place it appears in Section 1563(a)(1), (2) and (3) of
the Code and Treas. Reg. § 1.414(c)-2; provided, further, where legitimate
business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)),
the language “at least 20 percent” shall be used instead of “at least 80
percent” in each place it appears. Whether a Participant has a Separation from
Service will be determined based on all of the facts and circumstances and in
accordance with the guidance issued under Code Section 409A.

 

Section 1.27         Service
Recipient.

 

As
provided by regulations promulgated under Code Section 409A, Service
Recipient shall mean the Employer or person for whom the services are performed
and with respect to whom the legally binding right to compensation arises, and
all persons with whom such person would be considered a single employer under
Code Section 414(b) (employees of controlled group of corporations),
and all persons with whom such person would be considered a single employer
under Code Section 414(c) (employees of partnerships,
proprietorships, etc., under common control).

 

Section 1.28         Specified
Employee.

 

Specified
Employee shall mean a Participant who is considered a key employee on the
Identification Date, as defined in Code Section 416(i) without regard to Code Section 416(i)(5) and
such other requirements imposed under Code Section 409A(a)(2)(B)(i) and the
regulations

 

5

 

promulgated
thereunder for the period beginning April 1 of the year subsequent to the
Identification Date and ending March 31 of the following year. The
Identification Date for this Plan is December 31 of each year.
Notwithstanding anything to the contrary, a Participant is not a Specified
Employee unless any stock of the Employer is publicly traded on an established
securities market or otherwise.

 

Section 1.29         Trust.

 

The
agreement between the Employer and the Trustee, commonly referred to as a Rabbi
trust under which the Employer’s assets are held, administered and managed, and
which shall conform to the terms of Rev. Proc. 92-64.

 

Section 1.30         Trustee.

 

Investors
Bank and Trust Company, or such other successor that shall become trustee
pursuant to the terms of the Plan or Trust.

 

Section 1.31         Vestar/Company
Group

 

(i) Vestar
Capital Partners IV, L.P. or any of its Affiliates, (ii) any party from
time to time to the Securityholders Agreement, dated as of or about the date of
the initial public offering of the Class A comon stock of DynaVox, by and
among DynaVox, DynaVox Systems Holdings LLC and the Securityholders from time
to time parties thereto, as such agreement may be amended from time to time
(the “Securityholders Agreement”) unless such party together with its
Affiliates is the holder of securities representing at least 50.01% of the
outstanding voting securities of DynaVox or is deemed to beneficially own at
least 50.01% of the outstanding voting securities of DynaVox for purposes of Rule 16a-1(a)(2) under
the Act or any group (as such term is used in Section 13(d)(3) of the
Act) to the extent that such group may be deemed to exist solely as a result of
the Securityholders Agreement, (iii) any employee benefit plan (or trust
forming a part thereof) maintained by DynaVox or any of its Affiliates, or (iv) any
corporation or other “person” of which a majority of the voting power of its
voting equity securities and equity interest is owned, directly or indirectly,
by DynaVox.

 

Section 1.32         Years
of Service.

 

A
Participant’s “Years of Service” shall be measured by employment during a
twelve (12) month period commencing with the Participant’s date of hire and
anniversaries thereof.

 

ARTICLE  II. – PARTICIPATION

 

Section 2.01         Commencement of Participation.

 

Each
Eligible Employee shall become a Participant at the earlier of the date on
which his or her Deferral Election first becomes effective or the date on which
an Employer Discretionary Contribution is first credited to his or her Account.

 

6

 

Section 2.02         Loss
of Eligible Employee Status.

 

A
Participant who is no longer an Eligible Employee shall not be permitted to
submit a Deferral Election and all Deferrals for such Participant shall cease
as of the end of the Plan Year in which such Participant is determined to no
longer be an Eligible Employee. Amounts credited to the Account of a
Participant who is no longer an Eligible Employee shall continue to be held
pursuant to the terms of the Plan and shall be distributed as provided in Article 6.

 

ARTICLE  III. – CONTRIBUTIONS

 

Section 3.01         Deferral
Elections - General.

 

A
Participant’s Deferral Election for a Plan Year is irrevocable for that
applicable Plan Year; provided, however that a cessation of Deferrals shall be
allowed if required by the terms of the Employer’s 401(k) plan in order
for the Participant to obtain a hardship withdrawal from the 401(k) plan,
or if required under Section 6.10 (Unforeseeable Emergency) of this Plan
or if required under section 3.03 of this Plan (Disability). Such amounts
deferred under the Plan shall not be made available to such Participant, except
as provided in Article VI, and shall reduce such Participant’s
Compensation from the Employer in accordance with the provisions of the
applicable Deferral Election; provided, however, that all such amounts shall be
subject to the rights of the general creditors of the Employer as provided in Article VIII.
The Deferral Election, in addition to the requirements set forth below, must
designate: (i) the amount of Compensation to be deferred, (ii) the
time of the distribution, and (iii) the form of the distribution.

 

Section 3.02         Time
of Election.

 

A
Deferral Election shall be void if it is not made in a timely manner as
follows:

 

(a)           A Deferral Election with respect to
any Compensation must be submitted to the Administrator before the beginning of
the calendar year during which the amount to be deferred will be earned. As of December 31
of each calendar year, said Deferral Election is irrevocable for the calendar
year.

 

(b)           Notwithstanding the foregoing and in
the discretion of the Employer, in a year in which an Employee is first
eligible to participate, and provided that such Employee is not eligible to
participate in any other similar account balance arrangement subject to Code Section 409A,
such Deferral Election shall be submitted within thirty (30) days after the
date on which an Employee is first eligible to participate, such Deferral
Election shall apply to Compensation to be earned during the remainder of the
calendar year after such election is made.

 

(c)           Notwithstanding the foregoing and in
the discretion of the Employer, a Deferral Election with respect to any
Performance-based Compensation may be submitted by the Eligible Employee or
Participant provided that such Deferral Election is submitted at least six (6) months
prior to the end of the performance period on which the Performance-based
Compensation is based. Such an election will not be permitted or accepted
unless the Eligible Employee has been continuously employed from the later of
the beginning of the performance period or the date performance criteria have
been established to the date the election is made. In 

 

7

 

addition, an election will
not be permitted or accepted if the performance based compensation is readily
ascertainable at that time.

 

(d)           Notwithstanding the foregoing and in
the discretion of the Employer, a Deferral Election with respect to any
fiscal-based Bonus may be submitted by the Eligible Employee or Participant,
provided that such Deferral Election is submitted prior to the beginning of the
Employer’s fiscal year for which the fiscal-based Bonus is earned and the
fiscal based Bonus is not paid or payable during the fiscal year.

 

Section 3.03         Cancellation
of Deferral Election due to Disability.

 

Notwithstanding
anything to the contrary, if a Participant incurs a disability as defined in
this Section 3.03, said Participant may file an election to stop Deferrals
as of the date the election is received by the Administrator, provided that
such cancellation occurs by the later of the end of the calendar year or the
15th day of the third month following the date the Participant incurs a
disability. Disability for purposes of this Section 3.03 only means that a
Participant incurs a medically determinable physical or mental impairment
resulting in the Participant’s inability to perform the duties of his or her
position or any substantially similar position, where such impairment can be
expected to result in death or can be expected to last for a continuous period
of not less than six months, as determined by the Administrator in its sole discretion.

 

Section 3.04         Distribution
Elections.

 

At
the time a Participant makes a Deferral Election, he or she must also elect the
time and form of the distribution by establishing one or more In-Service
Account(s) or Retirement Account(s) as provided in Sections 5.01 and
6.01. If the Participant fails to properly designate the time and form of a
distribution, the Participant’s Account shall be designated as a Retirement
Account and the designated form of payment shall be a lump sum.

 

Section 3.05         Additional
Requirements.

 

The
Deferral Election, subject to the limitations set forth in Sections 3.01 and
3.02 hereof, shall comply with the following additional requirements, or as
otherwise required by the Administrator in its sole discretion:

 

(a)           Deferrals may be made in whole
percentages with such limitations as determined by the Administrator.

 

(b)           The maximum amount that may be
deferred each Plan Year is a combination of the following: (i) twenty-five
percent (25%) of the Participant’s Salary and (ii) twenty-five percent
(25%) of the Participant’s Bonus and (iii) twenty-five percent (25%) of
the Participant’s Performance-based Compensation, all net of applicable taxes.

 

(c)           The minimum initial deferral period
for an In-Service Account (or subaccount) shall be five (5) years.

 

8

 

 

Section 3.06         Employer
Discretionary Contributions.

 

The
Employer reserves the right to make discretionary contributions to some or all
Participants’ Accounts in such amount and in such manner as may be determined
by the Employer. Such Employer Discretionary Contributions do not need to be
given to all Participants, nor do any such contributions need to be uniform
among Participants that receive such a contribution. Such Employer
Discretionary Contribution shall be credited to such sub-account(s) as may
be elected by the Participant in accordance with Sections 3.01 and 5.01 and
procedures established by the Administrator, or if no such election is made by
the Participant, then to such sub-account(s) as may be elected by the
Participant for his or her Base Salary Deferrals, or if no Base Salary
Deferrals, then for Bonus or Performance-based Compensation Deferrals or if no
Base Salary or Bonus Deferrals, then to the Participant’s Retirement
sub-account with the shortest payment period maintained within the Participant’s
Account in accordance with Section 5.01.

 

Section 3.07         Crediting
of Contributions.

 

(a)           Deferrals shall be credited to a Participant’s Account,
and if applicable transferred to the Trust, at such time as the Employer shall
determine but no less frequently than at the close of each month.

 

(b)           Employer
Discretionary Contributions shall be credited to a Participant’s Account, and
if applicable transferred to the Trust, at such time as the Employer shall
determine.

 

ARTICLE  IV. — VESTING

 

Section 4.01         Vesting
of Deferrals.

 

A
Participant shall be one hundred percent (100%) vested in his or her Account
attributable to Deferrals and any earnings or losses on the investment of such
Deferrals.

 

Section 4.02         Vesting
of Employer Discretionary Contributions.

 

A
Participant shall have a vested right to the portion of his or her Account
attributable to Employer Discretionary Contributions in accordance with the
following schedule:

 

	
  Completed Years of Service

  	
   

  	
  Vested Percentage

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2 but less than 3

  	
   

  	
  25

  	
  %

  
	
  3 but less than 4

  	
   

  	
  50

  	
  %

  
	
  4 but less than 5

  	
   

  	
  75

  	
  %

  
	
  5 or more years

  	
   

  	
  100

  	
  %

  

 

Section 4.03         Vesting
in Event of Retirement, Disability, Death or Change-in-Control.

 

(a)           A Participant who incurs a Separation from Service due to
Retirement shall be fully vested in the amounts credited to his or her Account
as of the date of Retirement.

 

9

 

(b)           A
Participant who incurs a Separation from Service due to Disability shall be
fully vested in the amounts credited to his or her Account as of the date of
Disability.

 

(c)           Upon
a Participant’s death, the Participant shall be fully vested in the amounts
credited to his or her Account.

 

(d)           Upon
a Change-in-Control, all Participants shall be fully vested in the amounts
credited to their Accounts as of the date of the Change-in-Control.

 

Section 4.04         Amounts
Not Vested.

 

Any
amounts credited to a Participant’s Account that are not vested at the time of
his or her Separation from Service shall be forfeited.

 

Section 4.05         Forfeitures.

 

At
the discretion of the Employer, any forfeitures from a Participant’s Account (i) shall
continue to be held in the Trust, shall be separately invested, and shall be
used to reduce succeeding Deferrals and any Employer Contributions, or (ii) shall
be returned to the Employer as soon as administratively feasible.

 

Section 4.06         Cause.

 

(a)           Notwithstanding anything in this Plan to the contrary, if
a Participant’s employment with the Employer or any Subsidiary terminates on
account of Cause (which includes voluntary resignation in lieu of involuntary
termination on account of Cause or if Cause otherwise exists by reason of a
violation of Subsection (iv) of the definition of Cause), no benefits will
be payable hereunder. All benefits of any nature, whether vested or unvested,
shall be forfeited without payment by the Plan, the Employer or any Subsidiary
and the Participant shall have no further rights under the Plan.

 

(b)           In
addition to the rights set forth in Section 4.06(a), and in addition to
any other rights at law or in equity, if a Participant’s employment with the
Employer or any Subsidiary terminates on account of Cause (which includes
voluntary resignation in lieu of involuntary termination on account of Cause or
if Cause otherwise exists by reason of a violation of Subsection (ii) or (iv) of
the definition of Cause), each Participant agrees to the following by agreeing
to participate in this Program. Each Participant agrees that within ten (10) days
after the date the Employer provides such Participant of a notice that there
has occurred a termination on account of Cause (which includes voluntary
resignation in lieu of involuntary termination on account of Cause or if Cause
otherwise exists by reason of a violation of Subsection (ii) or (iv) of
the definition of Cause), a Participant shall pay to the Employer in cash an
amount equal to any and all distributions paid to or on behalf of such
Participant under this Plan within the six (6) months prior to the date of
earliest breach. Each Participant agrees that failure to make such timely
payment to the Employer constitutes an independent and material breach of the
terms and conditions of this Plan, for which the Employer may seek recovery of
the unpaid amount as liquidated damages, in addition to all other rights and
remedies the Employer may have resulting from a determination that Cause
exists. The Participants agree that timely payment to the Employer, as set
forth in this provision of the Plan, is reasonable and necessary because the

 

10

 

compensatory damages that will result from a Cause determination cannot
readily be ascertained. Further, the Participants agree that timely payment to
the Employer as set forth in this provision of the Plan is not a penalty, and
it does not preclude the Employer from seeking all other remedies that may be
available to the Employer, including without limitation those set forth in this
Section 4.06 and in any employment or other agreement between the
Participant and the Employer.

 

(c)           For
purposes of this section 4.06, a forfeiture of benefits under subsection (a) will
occur and the rights under subsection (b) will also arise if Cause (but
only as defined in subsections (ii) or (iv) of the Cause definition)
arises or is discovered following a termination of employment, regardless of
the reason for such termination.

 

ARTICLE  V. — ACCOUNTS

 

Section 5.01         Accounts.

 

The
Administrator shall establish and maintain a bookkeeping account in the name of
each Participant. The Administrator shall also establish sub-accounts as
provided in subsection (a) and (b), below, as elected by the Participant
pursuant to Article III. A Participant may have a maximum of ten (10) sub-accounts
at any time.

 

(a)           A Participant may establish one or more Retirement Account(s) (“Retirement
sub-accounts”) by designating as such on the Participant’s Deferral Election.
Each Participant’s Retirement sub-account shall be credited with Deferrals (as
specified in the Participant’s Deferral Election), any Employer Discretionary
Contributions, and the Participant’s allocable share of any earnings or losses
on the foregoing. Each Participant’s Retirement sub-account shall be reduced by
any distributions made plus any federal and state tax withholding, and any
social security withholding and other tax as may be required by law.

 

(b)           A
Participant may elect to establish one or more In-Service Accounts (“In-Service
sub-accounts”) by designating as such in the Participant’s Deferral Election
the year in which payment shall be made. Each Participant’s In-Service
sub-account shall be credited with Deferrals (as specified in the Participant’s
Deferral Election), any Employer Discretionary Contributions, and the
Participant’s allocable share of any earnings or losses on the foregoing. Each
Participant’s In-Service sub-account shall be reduced by any distributions made
plus any federal and state tax withholding and any social security withholding
and other tax as may be required by law.

 

Section 5.02         Investments,
Gains and Losses.

 

(a)           A Participant may direct that his or her Retirement
sub-accounts and or In-Service sub-accounts established pursuant to Section 5.01
may be valued as if they were invested in one or more Investment Funds as
selected by the Employer in multiples of one percent (1%). The Employer may
from time to time, at the discretion of the Administrator, change the
Investment Funds for purposes of this Plan.

 

(b)           The
Administrator shall adjust the amounts credited to each Participant’s Account
to reflect Deferrals, any Employer Discretionary Contributions, investment
experience,

 

11

 

distributions and any other appropriate adjustments. Such adjustments
shall be made as frequently as is administratively feasible.

 

(c)           A
Participant may change his or her selection of Investment Funds no more than
six (6) times each Plan Year with respect to his or her Account or
sub-accounts by filing a new election in accordance with procedures established
by the Administrator. An election shall be effective as soon as
administratively feasible following the date the change is submitted on a
properly completed form prescribed by the Administrator.

 

(d)           Notwithstanding
the Participant’s ability to designate the Investment Fund in which his or her
deferred Compensation shall be deemed invested, the Employer shall have no
obligation to invest any funds in accordance with the Participant’s election.
Participants’ Accounts shall merely be bookkeeping entries on the Employer’s
books, and no Participant shall obtain any property right or interest in any
Investment Fund.

 

ARTICLE  VI. — DISTRIBUTIONS

 

Section 6.01         Distribution
Election.

 

Each
Participant shall designate in his or her Deferral Election the form and timing
of his or her distribution by indicating the type of sub-account as described
under Section 5.01, and by designating the form in which payments shall be
made from the choices available under Sections 6.02 and 6.03 hereof.
Notwithstanding anything to the contrary contained herein provided, no
acceleration of the time or schedule of payments under the Plan shall occur
except as permitted under both this Plan and Code Section 409A.

 

Section 6.02         Distributions
from an In-Service Account.

 

In-Service
sub-account distributions shall begin as soon as administratively feasible but
no later than ninety (90) days following January 1 of the calendar year
designated by the Participant on a properly submitted Deferral Election, and
are payable in either a lump-sum payment or substantially equal annual
installments, as described in Section 6.04 below, over a period of up to
five (5) years as elected by the Participant in his or her Deferral
Election. If the Participant fails to properly designate the form of the
distribution, the sub-account shall be paid in a lump-sum payment. If a
Participant has any In-Service sub-accounts at the time of his or her
Retirement, said sub-accounts shall be distributed in a lump sum as soon as
administratively feasible but no later than ninety (90) days following
Participant’s Retirement, subject to Section 6.11 (Distributions to
Specified Employees).

 

Section 6.03         Distributions
Upon Retirement.

 

If
the Participant has a Separation from Service due to Retirement, the
Participant’s Retirement sub-account(s) shall be distributed as soon as
administratively feasible but no later than ninety (90) days following the
Participant’s Retirement, subject to Section 6.11 (Distributions to
Specified Employees). Distribution shall be made either in a lump-sum payment
or in substantially equal annual installments, as defined in Section 6.04
below, over a period of up to ten (10) years as elected by the
Participant. If the Participant fails to properly designate the form of the
distribution, the sub-account shall be paid in a lump-sum payment.

 

12

 

Section 6.04         Substantially
Equal Annual Installments.

 

(a)           The amount of the substantially equal payments shall be
determined by multiplying the Participant’s Account or sub-account by a
fraction, the denominator of which in the first year of payment equals the
number of years over which benefits are to be paid, and the numerator of which
is one (1). The amounts of the payments for each succeeding year shall be
determined by multiplying the Participant’s Account or sub-account as of the
applicable anniversary of the payout by a fraction, the denominator of which
equals the number of remaining years over which benefits are to be paid, and
the numerator of which is one (1). Installment payments made pursuant to this Section 6.04
shall be made as soon as administratively feasible, but no later than ninety
(90) days, following the anniversary of the distribution event.

 

(b)           For
purposes of the Plan pursuant to Treas. Regs. 1.409A-2(b)(2)(iii), a series of
annual installments shall be considered a single payment.

 

Section 6.05         Distributions
due to other Separation from Service.

 

If
the Participant has a Separation from Service for any reason other than
Retirement, death or Disability, all vested amounts credited to his or her
Account shall be paid to the Participant in a lump-sum, as soon as
administratively feasible, but no later than ninety (90) days, following the
date of Separation from Service, subject to Section 6.11 (Distributions to
Specified Employees).

 

Section 6.06         Distributions
upon Separation from Service due to Disability.

 

Upon
a Participant’s Separation from Service due to Disability, all amounts credited
to his or her Account shall be paid to the Participant in a lump sum, as soon
as administratively feasible but no later than ninety (90) days following the
date of Separation from Service due to Disability, subject to Section 6.11
(Distributions to Specified Employees).

 

Section 6.07         Distributions
upon Death.

 

Upon
the death of a Participant, all amounts credited to his or her Account shall be
paid, as soon as administratively feasible but no later than ninety (90) days
following Participant’s date of death, to his or her beneficiary or
beneficiaries, as determined under Article VII hereof, in a lump sum.

 

Section 6.08         Changes
to Distribution Elections.

 

A
Participant will be permitted to elect to change the form or timing of the
distribution of the balance of his or her one or more sub-accounts within his
or her Account to the extent permitted and in accordance with the requirements
of Code Section 409A(a)(4)(C), including the requirement that (i) a
redeferral election may not take effect until at least twelve (12) months after
such election is filed with the Employer, (ii) an election to further
defer a distribution (other than a distribution upon death, Disability or an
unforeseeable emergency) must result in the first distribution subject to the
election being made at least five (5) years after the previously elected
date of distribution, and (iii) any redeferral election affecting a
distribution at a fixed date must

 

13

 

be
filed with the Employer at least twelve (12) months before the first scheduled
payment under the previous fixed date distribution election. Once a sub-account
begins distribution, no such changes to distributions shall be permitted.

 

Section 6.09         Cash-Out
Provision.

 

Notwithstanding
any provision to the contrary, and at the sole discretion of the Employer, if a
Participant’s entire Account balance is less than the applicable Code Section 402(g) annual
limit, the Employer may distribute the Participant’s Account in a lump sum
provided that the distribution results in the termination of the participant’s
entire interest in the Plan, subject to the plan aggregation rules of
Treas. Regs. 1.409A-1(c)(2).

 

Section 6.10         Unforeseeable
Emergency.

 

The
Administrator may permit an early distribution of part or all of any deferred
amounts; provided, however, that such distribution shall be made only if the
Administrator, in its sole discretion, determines that the Participant, or the
Participant’s beneficiary, has experienced an Unforeseeable Emergency. An
Unforeseeable Emergency is defined as a severe financial hardship resulting
from an illness or accident of the Participant, the Participant’s spouse, or a
dependent (as defined in Code Section 152(a)) of the Participant, loss of
the Participant’s property due to casualty or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant. If an Unforeseeable Emergency is determined to exist, a
distribution may not exceed the amounts necessary to satisfy such emergency
plus amounts necessary to pay taxes reasonably anticipated as a result of the
distribution, after taking into account the extent to which such hardship is or
may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent the liquidation of
such assets would not itself cause severe financial hardship). Upon a
distribution to a Participant under this Section 6.10, the Participant’s
Deferrals shall cease and no further Deferrals shall be made for such
Participant for the remainder of the Plan Year.

 

Section 6.11         Distributions
to Specified Employees.

 

Notwithstanding
anything herein to the contrary, if any Participant is a Specified Employee
upon a Separation from Service for any reason other than death, distributions
to such Participant shall not commence until the first day of the seventh month
following the date of Separation from Service (or, if earlier, the date of
death of the Participant). If distributions are to be made in annual
installments, the second installment and all those thereafter will be made on
the applicable anniversaries of the Participant’s Separation from Service.

 

Section 6.12         Exception
to Separation from Service.

 

At
the discretion of Employer, a third-party unrelated to Employer that acquires
substantially all the assets of a subsidiary or business unit, may apply the “same
desk” rule so that Participants shall not incur a Separation from Service
upon the sale or transfer of the subsidiary or business unit provided the
following conditions are met, (i) the asset purchase or transfer results
from bona fide arm’s length negotiations, (ii) all Participants providing
services to the Employer prior to and after the transfer are treated
consistently, and (iii) such treatment is

 

14

 

specified
in writing no later than the close date of the asset purchase transaction, all
pursuant to Treas. Regs. 1.409A-1(h)(4).

 

Section 6.13         Minimum
Distribution.

 

Notwithstanding
any provision to the contrary, and subject to Section 6.11 (Distributions
to Specified Employees), if the entire remaining balance of a Participant’s
Account or sub-account at the time of a scheduled installment payment is
$25,000 or less, then the Participant shall be paid his or her Account or
sub-account as a single lump sum.

 

Section 6.14         Domestic
Relations Orders.

 

The
Administrator may permit such acceleration of the time or schedule of a payment
under the arrangement to an individual other than a Participant as may be
necessary to fulfill a domestic relations order (as defined in Code section
414(p)(1)(B)).

 

ARTICLE 
VII. — BENEFICIARIES

 

Section 7.01         Beneficiaries.

 

Each
Participant may from time to time designate one or more persons (who may be any
one or more members of such person’s family or other persons, administrators,
trusts, foundations or other entities) as his or her beneficiary under the
Plan. Such designation shall be made in a form prescribed by the Administrator.
Each Participant may at any time and from time to time, change any previous beneficiary
designation, without notice to or consent of any previously designated
beneficiary, by amending his or her previous designation in a form prescribed
by the Administrator. If the beneficiary does not survive the Participant (or
is otherwise unavailable to receive payment) or if no beneficiary is validly
designated, then the amounts payable under this Plan shall be paid to the
Participant’s estate. If more than one person is the beneficiary of a deceased
Participant, each such person shall receive a pro rata share of any death
benefit payable unless otherwise designated in the applicable form. If a
beneficiary who is receiving benefits dies, all benefits that were payable to
such beneficiary shall then be payable to the estate of that beneficiary.

 

Section 7.02         Lost
Beneficiary.

 

All
Participants and beneficiaries shall have the obligation to keep the
Administrator informed of their current address until such time as all benefits
due have been paid. If a Participant or beneficiary cannot be located by the
Administrator exercising due diligence, then, in its sole discretion, the
Administrator may presume that the Participant or beneficiary is deceased for
purposes of the Plan and all unpaid amounts (net of due diligence expenses)
owed to the Participant or beneficiary shall be paid accordingly or, if a
beneficiary cannot be so located, then such amounts may be forfeited. Any such
presumption of death shall be final, conclusive and binding on all parties.

 

15

 

ARTICLE  VIII. — FUNDING

 

Section 8.01         Prohibition
Against Funding.

 

Should
any investment be acquired in connection with the liabilities assumed under
this Plan, it is expressly understood and agreed that the Participants and
beneficiaries shall not have any right with respect to, or claim against, such
assets nor shall any such purchase be construed to create a trust of any kind
or a fiduciary relationship between the Employer, the Trust, the Trustee and
the Participants, their beneficiaries or any other person. Any such assets
shall be and remain a part of the general, unpledged, unrestricted assets of
the Employer, subject to the claims of its general creditors. It is the express
intention of the parties hereto that this arrangement shall be unfunded for tax
purposes and for purposes of Title I of the ERISA. Each Participant and
beneficiary shall be required to look to the provisions of this Plan and to the
Employer itself for enforcement of any and all benefits due under this Plan,
and to the extent any such person acquires a right to receive payment under
this Plan, such right shall be no greater than the right of any unsecured
general creditor of the Employer. The Employer or the Trust shall be designated
the owner and beneficiary of any investment acquired in connection with its
obligation under this Plan.

 

Section 8.02         Deposits
in Trust.

 

In
accordance with Section 8.01, the Employer may deposit into the Trust any
amounts it deems appropriate to pay the benefits under this Plan. The amounts
so deposited may include all contributions made pursuant to a Deferral Election
by a Participant, and any Employer Discretionary Contributions.

 

Section 8.03         Withholding
of Employee Contributions.

 

The
Administrator is authorized to make any and all necessary arrangements with the
Employer in order to withhold the Participant’s Deferrals under Section 3.01
hereof from his or her Compensation. The Administrator shall determine the
amount and timing of such withholding.

 

ARTICLE  IX. — CLAIMS
ADMINISTRATION

 

Section 9.01         General.

 

If
a Participant, beneficiary or his or her representative (“claimant”) is denied
all or a portion of an expected Plan benefit for any reason and the
Participant, beneficiary or his or her representative desires to dispute the
decision of the Administrator, the claimant must file a written notification of
his or her claim with the Administrator. Such a claim must be filed within 6
months of the date the claim accrued or it will be forever barred.

 

Section 9.02         Claims
Procedure.

 

Upon
receipt of any written claim for benefits, the Administrator shall be notified
and shall give due consideration to the claim presented. If any Participant or
beneficiary claims to be entitled to benefits under the Plan and the
Administrator determines that the claim should be

 

16

 

denied
in whole or in part, the Administrator shall, in writing, notify such claimant
within ninety (90) days of receipt of the claim that the claim has been denied.
The Administrator may extend the period of time for making a determination with
respect to any claim for a period of up to ninety (90) days, provided that the
Administrator determines that such an extension is necessary because of special
circumstances and notifies the claimant, prior to the expiration of the initial
ninety (90) day period, of the circumstances requiring the extension of time
and the date by which the Plan expects to render a decision. If the claim is
denied to any extent by the Administrator, the Administrator shall furnish the
claimant with a written or electronic notice setting forth:

 

(a)           the specific reason or reasons for denial of the claim;

 

(b)           a
specific reference to the Plan provisions on which the denial is based;

 

(c)           a
description of any additional material or information necessary for the
claimant to perfect the claim and an explanation of why such material or
information is necessary; and

 

(d)           an
explanation of the provisions of this Article.

 

Section 9.03         Right
of Appeal.

 

A
claimant who has a claim denied wholly or partially under Section 9.02 may
appeal to the Administrator for reconsideration of that claim. A request for
reconsideration under this Section must be filed by written notice within
sixty (60) days after receipt by the claimant of the notice of denial under Section 9.02.
In preparing for this appeal the claimant shall be given the right to review
pertinent documents, and will have the right to submit in writing a statement
of issues and comments with the appeal.

 

Section 9.04         Review
of Appeal.

 

Upon
receipt of an appeal the Administrator shall promptly take action to give due
consideration to the appeal. Such consideration may include a hearing of the
parties involved, if the Administrator feels such a hearing is necessary. After
consideration of the merits of the appeal the Administrator shall issue a written
decision which shall be binding on all parties. The decision shall specifically
state its reasons and pertinent Plan provisions on which it relies. The
Administrator’s decision shall be issued within sixty (60) days after the
appeal is filed, except that the Administrator may extend the period of time
for making a determination with respect to any claim for a period of up to
sixty (60) days, provided that the Administrator determines that such an
extension is necessary because of special circumstances and notifies the
claimant, prior to the expiration of the initial sixty (60) day period, of the
circumstances requiring the extension of time and the date by which the Plan
expects to render a decision.

 

Section 9.05         Disability
claims procedures.

 

The
above described claims procedures will apply to any benefit based on
disability, subject to the modifications set forth in this section.

 

17

 

(a)           In the case of a claim for disability benefits, the
Administrator will provide the claimant with written or electronic notification
of the Plan’s adverse benefit determination within a reasonable period of time,
but not later than 45 days after receipt of the claim by the Plan. This period
may be extended by the Plan for up to 30 days, provided that the Administrator
both determines that such an extension is necessary due to matters beyond the
control of the Plan and notifies the claimant, prior to the expiration of the
initial 45 day period, of the circumstances requiring the extension of time and
the date by which the Plan expects to render a decision. If, prior to the end
of the first 30-day extension period, the Administrator determines that, due to
matters beyond the control of the Plan, a decision cannot be rendered within
that extension period, the period for making the determination may be extended
for up to an additional 30 days, provided that the Administrator notifies the
claimant, prior to the expiration of the first 30-day extension period, of the
circumstances requiring the extension and the date as of which the Plan expects
to render a decision. In the case of any such extension, the notice of
extension will specifically explain the standards on which entitlement to a
benefit is based, the unresolved issues that prevent a decision on the claim,
and the additional information needed to resolve those issues, and the claimant
will be afforded at least 45 days within which to provide the specified
information.

 

(b)           In
the case of disability benefits;

 

(1)           If an internal rule,
guideline, protocol, or other similar criterion was relied upon in making an
adverse determination, either the specific rule, guideline, protocol, or other
similar criterion; or a statement that such rule, guideline, protocol, or other
similar criterion was relied upon in making the adverse determination and that
a copy of the rule, guideline, protocol, or other similar criterion will be
provided to the claimant free of charge upon request.

 

(2)           If the adverse benefit determination
is based on a medical necessity or experimental treatment or similar exclusion
or limit, either an explanation of the specific or clinical judgment for the
determination, applying the terms of the Plan to the claimant’s medical
circumstances, or a statement that such explanation will be provided to the
claimant free of charge upon request.

 

(c)           If the claim is for disability benefits, the claimant must
file a claim for review (i.e. the appeal referenced in Section 9.03) no
later than 180 days following receipt of notification of an adverse benefit
determination.

 

(d)           In
addition to the appeal procedures above, if the claim is for disability
benefits, then the appeals procedure will include the following:

 

(i)            The claim will be
reviewed without deference to the initial adverse benefit determination and the
review will be conducted by an appropriate person who is neither the individual
who made the adverse benefit determination that is the subject of the appeal,
nor the subordinate of such individual.

 

(ii)           In deciding an appeal of any adverse
benefit determination that is based in whole or part on medical judgment, the
reviewer will consult with a health care

 

18

 

professional who has
appropriate training and experience in the field of medicine involved in the
medical judgment.

 

(iii)          Any medical or vocational experts
whose advice was obtained on behalf of the Plan in connection with the claimant’s
adverse benefit determination will be identified, without regard to whether the
advice was relied upon in making the benefit determination.

 

(iv)          The health care professional engaged
for purposes of a consultation under (ii) above will be an individual who
is neither an individual who was consulted in connection with the adverse
benefit determination that is the subject of the appeal, nor the subordinate of
any such individual.

 

(v)           If the claim relates to disability
benefits, then 45 days will apply instead of 60 days in Section 9.04. In
the case of an adverse benefit determination, the notification will set forth
the information set forth in (b) above.

 

Section 9.06         Designation.

 

The
Administrator may designate any other person of its choosing to make any
determination otherwise required under this Article. Any person so designated
shall have the same authority and discretion granted to the Administrator
hereunder.

 

Section 9.07         Further
Proceedings.

 

If
a Participant’s claim for benefits is denied in whole or in part, such
Participant may file suit only in a state or federal court located in Allegheny
County, Pennsylvania. Notwithstanding, before such Participant may file suit in
a state or federal court, Participant must exhaust the Plan’s administrative
claims procedures. If any such judicial or administrative proceeding is undertaken,
the evidence presented will be strictly limited to the evidence timely
presented to the Administrator. In addition, any such judicial or
administrative proceeding must be filed within 6 months after the final
decision under Section 9.04 or 9.05 or it will be forever barred.

 

ARTICLE  X. — GENERAL
PROVISIONS

 

Section 10.01       Administrator.

 

(a)           The Administrator is expressly empowered to limit the
amount of Compensation that may be deferred; to deposit amounts into the Trust
in accordance with Section 8.02 hereof; to interpret the Plan, and to
determine all questions arising in the administration, interpretation and
application of the Plan; to employ actuaries, accountants, counsel, and other
persons it deems necessary in connection with the administration of the Plan;
to request any information from the Employer it deems necessary to determine
whether the Employer would be considered insolvent or subject to a proceeding
in bankruptcy; and to take all other necessary and proper actions to fulfill
its duties as Administrator. Without limiting the generality of the foregoing,
the Administrator shall have sole and absolute authority and discretion to
decide all matters relating to the administration of the Plan, including,
without limitation: determining the rights and status of Participants or their
beneficiaries under the Plan;

 

19

 

interpreting the Plan; adopting
administrative rules, regulations, and guidelines for the Plan; making factual
determinations (including determinations as to the designation of
beneficiaries); and correcting any defect, supplying any omission or
reconciling any inconsistency or conflict in the Plan. The Administrator’s
determinations under the Plan need not be uniform among all Participants, or
classes or categories of Participants, and may be applied to such Participants,
or classes or categories of Participants, as the Administrator in its sole and
absolute discretion, considers necessary, appropriate or desirable. All
determinations by the Administrator shall be final, conclusive and binding on
the Employer, the Participant and any and all interested parties and shall be
entitled to deference in the event of any legal proceedings.

 

(b)           The
Administrator shall not be liable for any actions by it hereunder, unless due
to its own negligence, willful misconduct or lack of good faith.

 

(c)           The
Administrator shall be indemnified and saved harmless by the Employer from and
against all personal liability to which it may be subject by reason of any act
done or omitted to be done in its official capacity as Administrator in good
faith in the administration of the Plan and Trust, including all expenses
reasonably incurred in its defense in the event the Employer fails to provide
such defense upon the request of the Administrator. The Administrator is
relieved of all responsibility in connection with its duties hereunder to the
fullest extent permitted by law, short of breach of duty to the beneficiaries.

 

Section 10.02       No
Assignment.

 

Benefits
or payments under this Plan shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or
garnishment by creditors of the Participant or the Participant’s beneficiary,
whether voluntary or involuntary, and any attempt to so anticipate, alienate,
sell, transfer, assign, pledge, encumber, attach or garnish the same shall not
be valid, nor shall any such benefit or payment be in any way liable for or
subject to the debts, contracts, liabilities, engagement or torts of any
Participant or beneficiary, or any other person entitled to such benefit or
payment pursuant to the terms of this Plan, except to such extent as may be
required by law. If any Participant or beneficiary or any other person entitled
to a benefit or payment pursuant to the terms of this Plan becomes bankrupt or
attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber,
attach or garnish any benefit or payment under this Plan, in whole or in part,
or if any attempt is made to subject any such benefit or payment, in whole or
in part, to the debts, contracts, liabilities, engagements or torts of the
Participant or beneficiary or any other person entitled to any such benefit or
payment pursuant to the terms of this Plan, then such benefit or payment, in
the discretion of the Administrator, shall cease and terminate with respect to
such Participant or beneficiary, or any other such person.

 

Section 10.03       No
Employment Rights.

 

Participation
in this Plan shall not be construed to confer upon any Participant the legal
right to be retained in the employ of the Employer, or give a Participant or
beneficiary, or any other person, any right to any payment whatsoever, except
to the extent of the benefits provided for hereunder. Each Participant shall
remain subject to discharge to the same extent as if this Plan had never been
adopted.

 

20

 

Section 10.04       Incompetence.

 

If
the Administrator determines that any person to whom a benefit is payable under
this Plan is a minor or incompetent by reason of physical or mental disability,
the Administrator shall have the power to cause the payments becoming due to
such person to be made to another for his or her benefit without responsibility
of the Administrator or the Employer to see to the application of such
payments. Any payment made pursuant to such power shall, as to such payment,
operate as a complete discharge of the Employer, the Administrator and the
Trustee.

 

Section 10.05       Identity.

 

If,
at any time, any doubt exists as to the identity of any person entitled to any
payment hereunder or the amount or time of such payment, the Administrator
shall be entitled to hold such sum until such identity or amount or time is
determined or until an order of a court of competent jurisdiction is obtained.
The Administrator shall also be entitled to pay such sum into court in
accordance with the appropriate rules of law. Any expenses incurred by the
Employer, Administrator, and Trust incident to such proceeding or litigation
shall be charged against the Account of the affected Participant.

 

Section 10.06       Other
Benefits.

 

The
benefits of each Participant or beneficiary hereunder shall be in addition to
any benefits paid or payable to or on account of the Participant or beneficiary
under any other pension, disability, annuity or retirement plan or policy
whatsoever.

 

Section 10.07       Expenses.

 

All
expenses incurred in the administration of the Plan, whether incurred by the
Employer or the Plan, shall be paid by the Employer.

 

Section 10.08       Insolvency.

 

Should
the Employer be considered insolvent (as defined by the Trust), the Employer,
through the Board and a duly appointed officer of the Employer, shall give
immediate written notice of such to the Administrator of the Plan and the
Trustee. Upon receipt of such notice, the Administrator or Trustee shall cease
to make any payments to Participants who were Employees of the Employer or
their beneficiaries and shall hold any and all assets attributable to the Employer
for the benefit of the general creditors of the Employer.

 

Section 10.09       Amendment
or Modification; Code Section 409A.

 

The
Employer may, at any time, in its sole discretion, amend or modify the Plan in
whole or in part, except that no such amendment or modification shall have any
retroactive effect to reduce any amounts allocated to a Participant’s Accounts,
and provided that such amendment or modification complies with Section 409A
of the Code and related regulations thereunder. The provisions of this Plan
will be administered, interpreted and construed in a manner intended to comply
with Section 409A of the Code, the regulations issued thereunder or any
exception thereto (or disregarded to the extent such provision cannot be so
administered, interpreted, or

 

21

 

construed).
If the Employer or Administrator determines in good faith that any amounts to
be paid to Employee under this Plan are subject to Section 409A of the
Code, then the Employer or Administrator shall, to the extent necessary, adjust
the form and/or the timing of such payments as determined to be necessary or
advisable to be in compliance with Section 409A of the Code. If any
payment must be delayed to comply with Section 409A of the Code, then,
except as otherwise specifically provided in this Plan, the deferred payment
will be paid at the earliest practicable date permitted by Section 409A of
the Code. With respect to payments subject to Section 409A of the Code,
Employer and Administrator reserve the right to accelerate and/or defer any
payment to the extent permitted and consistent with Section 409A of the
Code, the regulations and other binding guidance promulgated thereunder. Notwithstanding any provision of this Plan to the
contrary, Participants, beneficiaries and any other parties acknowledge and
agree that the Employer and the Administrator shall not be liable for, and
nothing provided or contained in this Plan will be construed to obligate or
cause the Employer or the Administrator to be liable for, any tax, interest or
penalties imposed on the Participant, beneficiary or other party related to or
arising with respect to any violation of Section 409A  of the Code.

 

Section 10.10       Plan
Suspension or Termination.

 

The
Employer further reserves the right to suspend or terminate the Plan in whole
or in part, in the following manner, except that no such suspension or
termination shall have any retroactive effect to reduce any amounts allocated
to a Participant’s Accounts, and provided that such suspension or termination
complies with Section 409A of the Code and related regulations thereunder:

 

(a)           The Employer, in its sole discretion, may terminate the
Plan provided that the distribution of the amounts credited to all vested
Participant’s Accounts shall not be accelerated but shall be paid at such time
and in such manner as determined under the terms of the Plan immediately prior
to termination as if the Plan had not been terminated;

 

(b)           The
Employer, in its sole discretion, may terminate the Plan and distribute all
vested Participants’ Accounts no earlier than twelve (12) calendar months from
the date of the Plan termination and no later than twenty-four (24) calendar
months from the date of the Plan termination, provided however that all other
similar arrangements are also terminated by the Employer and no other similar
arrangements are adopted by the Employer within a three year period from the
date of termination; or

 

(c)           The
Employer may decide, in its discretion, to terminate the Plan in the event of a
Change-in-Control and distribute all vested Participants Account balances no
earlier than thirty (30) days prior to the Change-in-Control and no later than
twelve (12) months after the effective date of the Change-in-Control, provided
however that the Employer terminates all other similar arrangements. Any
corporation or other business organization that is a successor to the Employer
by reason of a Change-in-Control shall have the right to become a party to the
Plan by appropriate entity action. If within thirty (30) days from the
effective date of the Change-in-Control such new entity does not become a party
hereto, as above provided, the full amount of the Participant’s Account shall
become immediately distributable to the Participant pursuant to this
subsection.

 

22

 

(d)           The
Employer may decide, in its sole discretion, to terminate the Plan in the event
of a corporate dissolution taxed under Code Section 331, or with the
approval of a bankruptcy court, provided that the Participants vested Account
balances are distributed to Participants and are included in the Participants’
gross income in the latest of: (i) the calendar year in which the
termination occurs; (ii) the calendar year in which the amounts deferred
are no longer subject to a substantial risk of forfeiture; or (iii) the
first calendar year in which payment is administratively practicable.

 

Section 10.11       Construction.

 

All
questions of interpretation, construction or application arising under or
concerning the terms of this Plan shall be decided by the Administrator, in its
sole and final discretion, whose decision shall be final, binding and
conclusive upon all persons.

 

Section 10.12       Governing
Law.

 

This
Plan shall be governed by, construed and administered in accordance with the
applicable provisions of ERISA, Code Section 409A, and any other
applicable federal law, provided, however, that to the extent not preempted by
federal law this Plan shall be governed by, construed and administered under
the laws of the Commonwealth of Pennsylvania, other than its laws respecting
choice of law.

 

Section 10.13       Severability.

 

If
any provision of this Plan is held invalid or unenforceable, its invalidity or
unenforceability shall not affect any other provision of this Plan and this
Plan shall be construed and enforced as if such provision had not been included
therein. If the inclusion of any Employee (or Employees) as a Participant under
this Plan would cause the Plan to fail to comply with the requirements of
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or Code Section 409A,
then the Plan shall be severed with respect to such Employee or Employees, who
shall be considered to be participating in a separate arrangement.

 

Section 10.14       Headings.

 

The
Article headings contained herein are inserted only as a matter of
convenience and for reference and in no way define, limit, enlarge or describe
the scope or intent of this Plan nor in any way shall they affect this Plan or
the construction of any provision thereof.

 

Section 10.15       Terms.

 

Capitalized
terms shall have meanings as defined herein. Singular nouns shall be read as
plural, masculine pronouns shall be read as feminine, and vice versa, as
appropriate.

 

Section 10.16       Payments
Upon Income Inclusion Under 409A.

 

The
Plan may permit acceleration of the time or schedule of a payment to a
Participant to pay an amount the Participant includes in income as a result of
the Plan failing to meet the requirements of Code Section 409A.

 

23

 

IN
WITNESS WHEREOF, DynaVox Systems LLC has caused this instrument to be executed
by its duly authorized officer, effective as of this 7th day of April, 2010.

 

	
   

  	
  DynaVox
  Systems LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kenneth D. Misch

  
	
   

  	
  Name:

  	
  Kenneth
  D. Misch

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

 

	
  ATTEST:

  	
   

  
	
  By:

  	
  /s/
  Marcy Smorey-Giger

  	
   

  
	
  Name:

  	
  Marcy
  Smorey-Giger

  	
   

  
	
  Title:

  	
  Chief
  Legal Officer

  	
   

  

 

24

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