Document:

Exhibit 10.15

 

MANAGEMENT AGREEMENT

 

This Agreement is made as of this 13th day of May,
2004, among DynaVox Systems Holdings LLC, a Delaware limited liability company
(“Parent”), DynaVox Systems LLC, a Delaware limited liability company (the “Company”),
Vestar Capital Partners, a New York general partnership (“Vestar”), and Park
Avenue Equity Management, LLC, a Delaware limited liability company (such
limited liability company or assignee thereof designated in accordance with Section 8(e) hereof
is referred to herein as “PAEM”).

 

WHEREAS, Vestar and PAEM, by and through their
officers, employees, agents, representatives and affiliates, have expertise in
the areas of corporate management, finance, investment, acquisitions and other
matters relating to the business of the Company and its subsidiaries; and

 

WHEREAS, each of Parent and the Company desires to
avail itself, for the term of this Agreement, of the expertise of Vestar and
PAEM in the aforesaid areas, in which it acknowledges the expertise of Vestar
and PAEM.

 

NOW, THEREFORE, in consideration of the foregoing
recitals and the covenants and conditions herein set forth, the parties hereto
agree as follows:

 

1.             Appointment.  Each of Parent and the Company hereby
appoints Vestar and PAEM to render the advisory and consulting services
described in Paragraph 2 hereof 
commencing on the Closing Date (as defined in Section 3(b) hereof).

 

2.             Services.  Each of Vestar and PAEM hereby agrees that
commencing on the Closing Date it shall render to each of Parent and the
Company (and their subsidiaries) by and through such of Vestar’s and PAEM’s
respective officers, employees, agents, representatives and affiliates as
Vestar and PAEM, as the case may be, in each of their sole discretion, shall
designate from time to time, advisory and consulting services in relation to
the affairs of Parent and the Company (and their subsidiaries) in connection
with strategic financial planning, and other services not referred to in the
next sentence, including, without limitation, advisory and consulting services
in relation to the selection, supervision and retention of independent
auditors, the selection, retention and supervision of outside legal counsel,
and the selection, retention and supervision of investment bankers or other financial
advisors or consultants.  It is expressly
agreed that the services to be performed hereunder shall not include (x) investment
banking or other financial advisory services rendered by any of Vestar, PAEM
and their respective affiliates to Parent and the Company (and their
subsidiaries) after the Closing Date in connection with acquisitions,
divestitures, refinancings, restructurings and similar transactions by Parent
and the Company (and their subsidiaries) or (y) full or part-time
employment by any of the Company and its subsidiaries of any employee or
partner of any of Vestar, PAEM and any of their respective affiliates, in each
case, for which Vestar, PAEM and their respective affiliates shall be entitled
to receive additional compensation.

 

3.             Fees.  (a)  From and after July 1, 2004,
in consideration of the services contemplated by Paragraph 2, subject to the
provisions of Paragraph 6, Parent and the Company

 

 

and their respective successors
hereby jointly and severally agree to pay to Vestar and PAEM an aggregate per
annum management fee (the “Fee”) equal to the greater of (i) $300,000 and (ii) an
amount per annum equal to 1.5% of EBITDA (as defined in the Credit Agreement
dated as of May 13, 2004 among the Company, Merrill Lynch Capital, a
division of Merrill Lynch Business Financial Services Inc., as Agent and as a
Lender, and the additional lenders from time to time party thereto(the “Credit
Agreement”)), before deducting the Fee payable pursuant to this Section 3
(“Adjusted EBITDA”), commencing on the Closing Date.  The Fee shall be payable semi-annually in
advance (based on clause (i) above in 2004 and thereafter based on the
greater of clause (i) above and 1.5% of the prior year’s Adjusted EBITDA),
with an adjustment of the Fee for any fiscal year payable promptly following
the determination of Adjusted EBITDA for such fiscal year or on termination of
this Agreement.  All references to per
annum or annual herein refer to the fiscal year of the Company.  The initial Fee shall be pro rated to reflect
the portion of the current fiscal year which elapses prior to the Closing
Date.  The Fee shall be allocated between
PAEM and Vestar as follows:  PAEM’s
percentage of the Fee shall be 20% and Vestar’s percentage of the Fee shall be
80%.  The semi-annual Fee payments shall
be non-refundable (except for any downward adjustment as described above).

 

(b)           Parent and the Company and their
respective successors also hereby jointly and severally agree to pay Vestar and
PAEM on the Closing Date (the “Closing Date”) of the transactions contemplated
by the Agreement for Purchase of Assets (as amended from time to time, the “Asset
Purchase Agreement”) among Mayer-Johnson, Inc., a California corporation,
Terrance Johnson, an individual, Roxanna Johnson, an individual, the Johnson
Family Trust, and the Company a transaction fee equal to $1,100,000; provided that
80% of such transaction fee will be payable to Vestar and 20% of such
transaction fee will be payable to PAEM.

 

4.             Reimbursements.  In addition to the Fee, Parent and the
Company hereby jointly and severally agree, at the direction of Vestar or PAEM,
as the case may be, to pay directly or reimburse Vestar or PAEM for its
reasonable Out-of-Pocket Expenses incurred after the Closing Date in connection
with the services provided for in Paragraph 2 hereof.  For the purposes of this Agreement, the term “Out-of-Pocket
Expenses” shall mean the amounts paid by or on behalf of Vestar or PAEM, as the
case may be, in connection with the services contemplated hereby, including
reasonable (i) fees and disbursements of any independent professionals and
organizations, including independent auditors and outside legal counsel,
investment bankers or other financial advisors or consultants, (ii) costs
of any outside services or independent contractors, such as financial printers,
couriers, business publications or similar services, and (iii) transportation,
per diem, telephone calls, word processing expenses or any similar expense not
associated with its ordinary operations. 
All reimbursements for Out-of-Pocket Expenses shall be made promptly
upon or as soon as practicable after presentation by Vestar and PAEM of the
statement in connection therewith.

 

5.             Indemnification.  Parent and the Company hereby jointly and
severally agree to indemnify and hold harmless Vestar, PAEM and affiliates and
their respective affiliates and partners, members, officers, directors,
employees, agents, representatives and stockholders (each being an “Indemnified
Party”) from and against any and all losses, claims, damages and liabilities of
whatever kind or nature, joint or several, absolute, contingent or
consequential, to which such Indemnified Party may become subject under any
applicable federal or state law, or 

 

2

 

any claim made by any third
party, or otherwise, to the extent they relate to or arise out of the services
contemplated by this Agreement or the engagement of Vestar and PAEM pursuant
to, and the performance by Vestar and PAEM of the services contemplated by,
this Agreement.  Parent and the Company
hereby jointly and severally agree to reimburse any Indemnified Party for all
reasonable costs and expenses (including reasonable attorneys’ fees and
expenses) as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim for which the
Indemnified Party would be entitled to indemnification under the terms of the
previous sentence, or any action or proceeding arising therefrom, whether or not
such Indemnified Party is a party hereto. 
Parent and the Company will not be liable under the foregoing
indemnification provision to the extent that any loss, claim, damage,
liability, cost or expense is determined by a court, in a final judgment from
which no further appeal may be taken, to have resulted primarily from the gross
negligence or willful misconduct of Vestar or PAEM.  None of Parent and the Company shall be
obligated to make any payment to Vestar or PAEM hereunder unless and until the
Closing Date has occurred.

 

6.             Term.  This Agreement shall become effective on the
Closing Date and shall terminate upon the earlier to occur of (i) the
termination of the Asset Purchase Agreement or (ii) such time after the
Closing Date as Vestar Capital Partners IV, L.P., a Delaware limited
partnership (“VCP”), Park Avenue Equity Partners, LP, a Delaware limited
partnership, and the respective partners therein and the respective affiliates
thereof, in the aggregate, hold directly or indirectly, or otherwise, less than
20% of the voting power of the Company’s outstanding voting securities.  In addition, the Company shall have the right
to terminate this Agreement if the lenders under the Credit Agreement shall
have accelerated all of the indebtedness thereunder as a result of a Change of
Control (as defined therein).  The
provisions of Paragraphs 4, 5, 7 and 8 and the joint and several obligation of
Parent and the Company to pay Fees accrued during the term of this Agreement
pursuant to Section 2 shall survive the termination of this Agreement.

 

7.             Permissible Activities.  Subject to all applicable provisions of New
York law that impose fiduciary duties upon Vestar, PAEM or their respective
partners, members or affiliates, nothing herein shall in any way preclude
Vestar, PAEM or their respective partners, members, officers, employees or
affiliates from engaging in any business activities or from performing services
for its or their own account or for the account of others, including for
companies that may be in competition with the business conducted by the
Company.

 

8.             General.  (a)  No amendment or waiver of any
provision of this Agreement, or consent to any departure by either party from
any such provision, shall in any event be effective unless the same shall be in
writing and signed by the parties to this Agreement and then such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

 

(b)           Any and all notices hereunder shall,
in the absence of receipted hand delivery, be deemed duly given when mailed, if
the same shall be sent by registered or certified mail, return receipt
requested, and the mailing date shall be deemed the date from which all time
periods pertaining to a date of notice shall run.  Notices shall be addressed to the parties at
the following addresses:

 

3

 

	
  If
  to Vestar:

  	
  Vestar
  Capital Partners

  
	
   

  	
  245
  Park Avenue, 41st Floor

  
	
   

  	
  New
  York, New York 10167

  
	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  
	
  If
  to PAEM:

  	
  Park
  Avenue Equity Management, LLC

  
	
   

  	
  500
  Park Avenue, Suite 510

  
	
   

  	
  New
  York, New York 10022

  
	
   

  	
  Attention:
  Anthony R. Bienstock

  
	
   

  	
   

  
	
  If
  to Parent or the Company:

  	
  DynaVox
  Systems LLC

  
	
   

  	
  2100
  Wharton Street 

  
	
   

  	
  Suite 400

  
	
   

  	
  Pittsburgh,
  PA 15203

  
	
   

  	
  Attention:
  Chief Executive Officer

  
	
   

  	
   

  
	
  In
  any case,

  	
   

  
	
  with
  copies to:

  	
  The
  other parties hereto

  
	
   

  	
  at
  their respective addresses

  
	
   

  	
  noted
  above.

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Simpson
  Thacher & Bartlett LLP

  
	
   

  	
  425
  Lexington Avenue

  
	
   

  	
  New
  York, New York 10017

  
	
   

  	
  Attention:
  Peter J. Gordon, Esq.

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Sonnenschein
  Nath & Rosenthal

  
	
   

  	
  1221
  Avenue of the Americas

  
	
   

  	
  New
  York, New York 10022

  
	
   

  	
  Attention: Robert L.
  Winikoff, Esq.

  
			

 

 

(c)           This Agreement shall constitute the
entire Agreement between the parties with respect to the subject matter hereof,
and shall supersede all previous oral and written (and all contemporaneous
oral) negotiations, commitments, agreements and understandings relating hereto.

 

(d)           THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED THEREIN.  THE PARTIES TO THIS AGREEMENT HEREBY AGREE TO
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND STATE COURTS LOCATED IN
THE STATE OF 

 

4

 

NEW
YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT.  This Agreement shall inure to
the benefit of, and be binding upon, Vestar, PAEM, the Indemnified Parties,
Parent, the Company and their respective successors and assigns.

 

(e)           This Agreement may be executed in two
or more counterparts, and by different parties on separate counterparts, each
set of counterparts showing execution by all parties shall be deemed an
original, but all of which shall constitute one and the same instrument.

 

(f)            The waiver by any party of any
breach of this Agreement shall not operate as or be construed to be a waiver by
such party of any subsequent breach.

 

(g)           PAE GP, LLC may designate in writing
an affiliate of PAEM to be the assignee of PAEM’s rights and obligations
hereunder and PAEM may assign in writing its rights and obligations to such
designated assignee provided that such designated assignee is reasonably
acceptable to Investors.

 

[Remainder
of Page Intentionally Left Blank]

 

5

 

IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed and delivered by their duly authorized officers or
agents as set forth below.

 

	
   

  	
  VESTAR
  CAPITAL PARTNERS

  
	
   

  	
   

  
	
   

  	
  By
  its General Partner:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jim Elrod

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARK
  AVENUE EQUITY MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William E. Mayer

  
	
   

  	
   

  	
  Name:
  William E. Mayer

  
	
   

  	
   

  	
  Title: Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DYNAVOX
  SYSTEMS HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert P. Culhane

  
	
   

  	
   

  	
  Name:
  Robert P. Culhane

  
	
   

  	
   

  	
  Title: Chief Financial Officer, Treasurer & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DYNAVOX
  SYSTEMS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert P. Culhane

  
	
   

  	
   

  	
  Name:
  Robert P. Culhane

  
	
   

  	
   

  	
  Title: Chief Financial Officer, Treasurer & SecretaryExhibit
10.15.1

 

TERMINATION
AGREEMENT

 

This TERMINATION AGREEMENT, dated as of March 15,
2010 (this “Agreement”) is by and among DynaVox Systems Holdings LLC, a
Delaware limited liability company (the “Parent”), DynaVox Systems LLC,
a Delaware limited liability company (the “Company”), Vestar Capital
Partners, a New York general partnership (“Vestar”), and Park Avenue
Equity Management, LLC, a Delaware limited liability company (“PAEM”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant to a Management Agreement between
Parent, the Company, Vestar and PAEM, dated May 13, 2004 (the “Management
Agreement”), each of the Parent and the Company granted Vestar and PAEM
certain management rights with respect to the Company; and

 

WHEREAS, the parties desire to terminate the
Management Agreement in accordance with the terms therein;

 

NOW, THEREFORE, it is agreed as follows:

 

1.             Termination of the Management
Rights Agreement.  Parent, the
Company, Vestar and PAEM hereby agree that, effective as of the date of the
initial public offering of the Class A common stock of DynaVox Inc., the
Management Agreement shall be terminated and of no further force or effect;
provided, however, that the provisions of Paragraphs 4, 5, 7 and 8 of the
Management Agreement and the joint and several obligation of Parent and the
Company to pay Fees accrued during the term of the Management Agreement
pursuant to Section 2 of the Management Agreement shall survive the
termination of this Agreement.

 

2.             Governing Law.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the state of New York
applicable to contracts made and to be performed therein.

 

3.             Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument, binding upon the parties
hereto.

 

[Remainder of page intentionally
left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement, or have caused this Agreement to be duly executed on
their behalf, as of the date first above written.

 

 

	
   

  	
  VESTAR
  CAPITAL PARTNERS

  
	
   

  	
   

  
	
   

  	
  By
  its General Partner:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARK
  AVENUE EQUITY MANAGEMENT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DYNAVOX
  SYSTEMS HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DYNAVOX
  SYSTEMS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  

  
	
   

  	
   

  	
  Title:

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