Document:

Exhibit 10.16

 

DynaVox Systems Holdings LLC

2100 Wharton Street

Suite 400

Pittsburgh, PA 15203

 

Dated as of March 15,
2010

 

Vestar Capital Partners IV, L.P.

245 Park Avenue, 41st Floor

New York, New York 10167

Attention: 
Erin Russell

 

Park Avenue Equity Management, LLC

500 Park Avenue, Suite 510

New York, New York 10022

Attention: 
William E. Mayer

 

Gentlemen:

 

DynaVox Systems Holdings LLC, a Delaware limited
liability company (“DynaVox”), hereby acknowledges and agrees that it has
engaged Vestar Capital Partners IV, L.P. (“Vestar”) and Park Avenue Equity
Management, LLC (“Park Avenue”) to provide it with transaction advisory
services in respect of the initial public offering of the Class A common
stock of DynaVox Inc. (the “IPO”), including structuring and advising DynaVox
with respect to the IPO (the “IPO Transaction Advisory Services”).

 

DynaVox hereby agrees, in consideration of the IPO Transaction Advisory
Services, that it shall, on the date of the closing of the IPO, pay $2,780,000
to Vestar and $320,000 to Park Avenue.

 

DynaVox hereby agrees to indemnify and hold harmless
Vestar, Park Avenue 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 any claim made
by any third party, or otherwise, to the extent they relate to or arise out of
the services contemplated by this letter agreement or the engagement of Vestar
and Park Avenue pursuant to, and the performance by Vestar and Park Avenue of
the services contemplated by, this letter agreement.  DynaVox hereby agrees 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. 
DynaVox 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 Park Avenue. 
DynaVox shall not be obligated to make any payment to Vestar or Park
Avenue hereunder unless and until the closing of the IPO.

 

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.

 

This agreement may be executed in any number of
counterparts, all of which together shall constitute a single instrument.

 

[Signature Page Follows]

 

2

 

If the foregoing is in
accordance with your understanding of our agreement, kindly sign and return the
enclosed copies hereof, whereupon this instrument, along with all counterparts
hereof, shall become a legally binding agreement of  all of its signatories in accordance with its
terms.

 

	
   

  	
   

  
	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  DynaVox
  Systems Holdings LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Confirmed and agreed to as of the date first above
written:

 

 

	
  Vestar Capital Partners IV, L.P.

  
	
   

  	
   

  
	
  By:

  	
  Vestar
  Associates IV, L.P.,

  
	
   

  	
  its
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  Vestar
  Associates Corporation IV,

  
	
   

  	
  its
  General Partner

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Park Avenue Equity Management, LLC

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  

 

[Signature Page to Side Letter]exhibit.htm

     

    Exhibit
10.1

    
      PURCHASE
AGREEMENT SUPPLEMENT

      

      

      March 19,
2010

      

      Invus,
L.P.

      c/o The
Invus Group, LLC

      750
Lexington Avenue (30th
Floor)

      New York,
New York 10022

      

      Invus
C.V.

      c/o The
Invus Group, LLC

      750
Lexington Avenue (30th
Floor)

      New York,
New York 10022

      

      Lexicon
Pharmaceuticals, Inc.

      8800
Technology Forest Place

      The
Woodlands, Texas 77381

      Attn: 
President and Chief Executive Officer

      

      Re:  Purchase
Agreement Supplement

      

      Ladies
and Gentlemen:

      

      Reference is made to the Purchase
Agreement, dated as March 15, 2010 (the “Purchase Agreement”),
by and between Invus, L.P. (“Invus, L.P.”) and
Lexicon Pharmaceuticals, Inc. (the “Company”) and to the
Supplement to Transaction Agreements (the “Supplement to Transaction
Agreements”), dated as of March 15, 2010, by and among Invus, L.P., Invus
C.V. (“Invus
C.V.”, and together with Invus, L.P., the “Investors”) and the
Company.  Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to them in the Purchase
Agreement.  The Company has informed the Investors that the
underwriters under the Underwriting Agreement, dated as of March 15, 2010, by
and between the Company and the several underwriters party thereto have
exercised their over-allotment option thereunder to purchase an additional
8,804,348 shares of Company Common Stock.

      

      In connection with the Offering (as
defined in the Supplement to Transaction Agreements), Invus, L.P. hereby assigns
to Invus C.V. its right under Section 4.02(a) of the Stockholders’ Agreement to
purchase that number of shares of Company Common Stock as set forth
below.

      

      Accordingly, the Investors hereby agree
to purchase from the Company the number of additional shares of Company Common
Stock specified below (the “Additional Invus
Shares”) at a price per share equal to the Price to Public, for the total
purchase price specified below:

       

      

      
        	
                 

                Number
      of shares to be purchased by Invus, L.P.:

                 

              	
                 

                5,190,848
      shares of Company Common Stock

                 

              
	
                 

                Number
      of shares to be purchased by Invus C.V.:

                 

              	
                 

                760,870
      shares of Company Common Stock

                 

              
	
                 

                Total
      Purchase Price:

                 

              	
                 

                $6,844,475.70

                 

                 

                 

              

      

       

      The issuance, purchase and delivery of
the Additional Invus Shares is being made on the basis of the same
representations and warranties and on the same terms and subject to the same
conditions, and is considered a part of, the sale of the Invus
Shares.  The closing of the sale of the Additional Invus Shares shall
take place at a time and place to be mutually agreed to by the
parties.

      

      This supplement to the Purchase
Agreement shall be deemed to satisfy the Company’s obligations under the
Stockholders’ Agreement with respect to the delivery of a Notice of Issuance
with respect to the Additional Invus Shares.

      

      This supplement shall automatically
terminate upon any termination of the Purchase Agreement and shall be
interpreted as a part of and in accordance with the Purchase
Agreement.

      

       [Signature
Pages Follow]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          	
                  Sincerely,

                
	 
      
	
                  INVUS,
      L.P.,

                  a
      Bermuda limited partnership

                   

                
	
                  By:
      Invus Advisors, L.L.C., its general partner

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Raymond Debbane

                
	
                  Name:

                	
                  Raymond
      Debbane

                
	
                  Title:

                	
                  President

                

        

         

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        
          	 
      
	
                  
                          
                      INVUS
      C.V.,

                      a
      Netherlands limited partnership

                       

                    

                  

                
	
                  By:
      Ulys, L.L.C., its general partner

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Raymond Debbane

                
	
                  Name:

                	
                  Raymond
      Debbane

                
	
                  Title:

                	
                  President

                

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        
          	
                  Accepted
      and agreed to:

                
	 
      
	
                  
                          
                      LEXICON
      PHARMACEUTICALS, INC.,

                      a
      Delaware corporation

                       

                    

                  

                
	
                  By:

                	
                  /s/
      Arthur T. Sands

                
	
                  Name:

                	
                  Arthur
      T. Sands, M.D. Ph.D.

                
	
                  Title:

                	
                  President
      and Chief Executive
Officer

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