Document:

Exhibit 10.16

 

 

 

                                                                                                May
2, 2006

 

 

HD Partners Acquisition
Corporation

2601
Ocean Park Boulevard, Suite 320

Santa
Monica, CA 90405

 

 

Morgan
Joseph & Co. Inc.

600
Fifth Avenue

19th
Floor

New
York, New York 10020

 

 

                                                                Re:          Initial Public Offering

 

Gentlemen:

 

                The undersigned director of HD
Partners Acquisition Corporation (“Company”), in consideration of Morgan Joseph
& Co. Inc. (“Morgan Joseph”) entering into a letter of intent (“Letter of
Intent”) to underwrite an initial public offering of the securities of the
Company (“IPO”) and embarking on the IPO process, hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 13 hereof):

 

                1.             In the event that the Company fails to consummate a
Business Combination within 18 months from the effective date (“Effective Date”)
of the registration statement relating to the IPO (or 24 months under the
circumstances described in the prospectus relating to the IPO), the undersigned
will take all reasonable actions within his power to (i) cause the Trust Fund
(as defined in the Letter of Intent) to be liquidated and distributed to the
holders of IPO Shares and (ii) cause the Company to liquidate as soon as
reasonably practicable after such liquidation and distribution.  Except with respect to any of the IPO Shares,
as defined herein, acquired by the undersigned in connection with or following
the IPO, the undersigned hereby waives any and all right, title, interest or
claim of any kind (“Claim”) in or to any distribution of the Trust
Fund, and any remaining net assets of the Company as a result of such
liquidation and hereby waives any Claim the undersigned may have in the future as a
result of, or arising out of, any contracts or agreements with the Company and
will not seek recourse against the Trust Fund for any reason whatsoever.

 

                2.             In order to minimize potential conflicts of interest
which may arise from multiple affiliations, the undersigned agrees to present
to the Company for its consideration, prior to presentation to any other person
or entity, any suitable opportunity

 

(in
the reasonable judgment of the undersigned) to acquire an operating business to
which it becomes aware, until the earlier of the consummation by the Company of
a Business Combination, the liquidation of the Company or until such time as
the undersigned ceases to be an officer or director of the Company, subject to
any pre-existing fiduciary and contractual obligations the undersigned might
have.

 

                3.             The undersigned acknowledges and agrees that it will
take all reasonable actions within his power to ensure that the Company will
not consummate any Business Combination which involves a company which is
affiliated with any of the Insiders unless the Company obtains an
opinion from an independent investment banking firm which is a member of the
National Association of Securities Dealers, Inc. and is reasonably acceptable
to Morgan Joseph that the Business Combination is fair to the Company’s
stockholders from a financial perspective.

 

                4.             Neither
the undersigned, any member of the family of the undersigned, nor any affiliate
of the undersigned (“Affiliate”) will be entitled to receive and will not
accept any compensation for services rendered to the Company prior to the
consummation of the Business Combination.

 

                5.             Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate will be entitled to receive or accept a finder’s
fee or any other compensation in the event the undersigned, any member of the
family of the undersigned or any Affiliate originates a Business Combination.

 

                6.             The undersigned’s biographical information furnished to
the Company and Morgan Joseph and attached hereto as Exhibit A is true and
accurate in all respects, and does not omit any material information with
respect to the undersigned’s academic and professional background.  The undersigned’s Questionnaire previously
furnished to the Company and Morgan Joseph is true and accurate in all material
respects. The undersigned represents and warrants that:

 

(a)           he is not subject to or a respondent
in any legal action for, any injunction, cease-and-desist order or order or
stipulation to desist or refrain from any act or practice relating to the
offering of securities in any jurisdiction;

 

(b)           he has never been convicted of or
pleaded guilty to any crime (i) involving any fraud or (ii) relating to any
financial transaction or handling of funds of another person, or (iii)
pertaining to any dealings in any securities, and he is not currently a
defendant in any such criminal proceeding; and

 

(c)           he has never been suspended or
expelled from membership in any securities or commodities exchange or
association or had a securities or commodities license or registration denied,
suspended or revoked.

 

                7.             The undersigned has full right and power, without
violating any agreement

 

 

2

 

by
which he is bound, to enter into this letter agreement and to serve as a
director of the Company.

 

                8.             In connection with the customary due diligence practices
of Morgan Joseph with respect to companies for which Morgan Joseph enters into
underwriting agreements related to initial public offerings for such companies,
and during the period prior to the Effective Date, the undersigned authorizes
any employer, financial institution, or consumer credit reporting agency to
release to Morgan Joseph and its legal representatives or agents (including any
investigative search firm retained by Morgan Joseph) any information they may
have about the undersigned’s background and finances (“Information”).  Neither Morgan Joseph nor its agents shall be
violating the undersigned’s right of privacy in any manner in requesting and
obtaining the Information during the period prior to the Effective Date and the
undersigned hereby releases them from liability for any damage whatsoever in
that connection.

 

                9.             In connection with the vote required to consummate a
Business Combination, the undersigned agrees that he will vote all shares of
common stock, par value $0.001, owned by him prior to the IPO (“Insider Shares”)
in accordance with the majority of the votes cast by the holders of the IPO
Shares, and all shares of common stock acquired in connection with or following
the IPO “For” a Business Combination.

 

                10.           The undersigned will escrow his Insider Shares for the
period commencing on the Effective Date and ending on the third anniversary of
the Effective Date, subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and an escrow agent acceptable to
the Company.

 

 

                11.           This letter agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction.  The undersigned hereby (i) agrees that any
action, proceeding or claim against him arising out of or relating in any way
to this letter agreement (a “Proceeding”) shall be brought and enforced in the
courts of the State of New York of the United States of America for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive, (ii) waives any objection to such
exclusive jurisdiction and that such courts represent an inconvenient forum and
(iii) irrevocably agrees to appoint Ellenoff Grossman & Schole LLP as agent
for the service of process in the State of New York to receive, for the
undersigned and on his behalf, service of process in any Proceeding.  If for any reason such agent is unable to act
as such, the undersigned will promptly notify the Company and Morgan Joseph and
appoint a substitute agent acceptable to each of the Company and Morgan Joseph
within 30 days and nothing in this letter will affect the right of either party
to serve process in any other manner permitted by law.

 

                12.           As used herein, (i) a “Business Combination” shall mean an
acquisition by

 

3

 

merger,
capital stock exchange, asset or stock acquisition, reorganization or
otherwise, of an operating business or businesses in the media, entertainment
and/or telecommunications industries; (ii) “Insiders” shall mean all officers,
directors and stockholders of the Company immediately prior to the IPO; (iii) “Insider
Shares” shall mean all of the shares of Common Stock of the Company owned by an
Insider prior to the IPO; and (iv) “IPO Shares” shall mean the shares of Common
Stock issued in the Company’s IPO.

 

 

 

	
   

  	
  Henry
  Goldberg

  	
   

  
	
   

  	
  Print
  Name of Insider

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Henry Goldberg

  	
   

  
	
   

  	
  Signature

  	
   

  

 

4

 

EXHIBIT A

 

Henry Goldberg has been a Director since
April 2006. He is a founding partner of Goldberg, Godles, Wiener & Wright,
a telecommunications and information technology law firm in Washington D.C.
formed in 1983. From 1975 to 1983, Mr. Goldberg was a partner with Verner,
Liipfert, Berhard & McPherson in Washington D.C. From 1971 through 1975,
Mr. Goldberg was Deputy General Counsel & General Counsel in the White
House Office of Telecommunications Policy. Mr. Goldberg received an A.B.
degree from Boston University in 1961 and received his LLB, cum laude, from
Columbia University in 1964. Mr. Goldberg is a member of the American Bar
Association (ABA) Committee on Agency Rule Making and its Special Committee on
Communications. Mr. Goldberg was the past Chairman of the ABA Committee on
Communications. He is also a member of the International Bar Association (IBA)
and former Co-Chairman of its Communications Committee. Mr. Goldberg is a
member of the Federal Communications Bar Association (FCBA) and has been the
Co-Chairman of the FCBA Engineering and Technical Practice Committee from 1996
to the present.

 

5Exhibit 10.17

 

 

 

                                                                                                May
2, 2006

 

 

HD Partners Acquisition
Corporation

2601
Ocean Park Boulevard, Suite 320

Santa
Monica, CA 90405

 

 

Morgan
Joseph & Co. Inc.

600
Fifth Avenue

19th
Floor

New
York, New York 10020

 

 

                                                                Re:          Initial Public Offering

 

Gentlemen:

 

                The undersigned director of HD
Partners Acquisition Corporation (“Company”), in consideration of Morgan Joseph
& Co. Inc. (“Morgan Joseph”) entering into a letter of intent (“Letter of
Intent”) to underwrite an initial public offering of the securities of the
Company (“IPO”) and embarking on the IPO process, hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 13 hereof):

 

                1.             In the event that the Company fails to consummate a
Business Combination within 18 months from the effective date (“Effective Date”)
of the registration statement relating to the IPO (or 24 months under the
circumstances described in the prospectus relating to the IPO), the undersigned
will take all reasonable actions within his power to (i) cause the Trust Fund
(as defined in the Letter of Intent) to be liquidated and distributed to the
holders of IPO Shares and (ii) cause the Company to liquidate as soon as
reasonably practicable after such liquidation and distribution.  Except with respect to any of the IPO Shares,
as defined herein, acquired by the undersigned in connection with or following
the IPO, the undersigned hereby waives any and all right, title, interest or
claim of any kind (“Claim”) in or to any distribution of the Trust
Fund, and any remaining net assets of the Company as a result of such
liquidation and hereby waives any Claim the undersigned may have in the future as a
result of, or arising out of, any contracts or agreements with the Company and
will not seek recourse against the Trust Fund for any reason whatsoever.

 

                2.             In order to minimize potential conflicts of interest
which may arise from multiple affiliations, the undersigned agrees to present
to the Company for its consideration, prior to presentation to any other person
or entity, any suitable opportunity

 

(in
the reasonable judgment of the undersigned) to acquire an operating business to
which it becomes aware, until the earlier of the consummation by the Company of
a Business Combination, the liquidation of the Company or until such time as
the undersigned ceases to be an officer or director of the Company, subject to
any pre-existing fiduciary and contractual obligations the undersigned might
have.

 

                3.             The undersigned acknowledges and agrees that it will
take all reasonable actions within his power to ensure that the Company will
not consummate any Business Combination which involves a company which is
affiliated with any of the Insiders unless the Company obtains an
opinion from an independent investment banking firm which is a member of the
National Association of Securities Dealers, Inc. and is reasonably acceptable
to Morgan Joseph that the Business Combination is fair to the Company’s
stockholders from a financial perspective.

 

                4.             Neither
the undersigned, any member of the family of the undersigned, nor any affiliate
of the undersigned (“Affiliate”) will be entitled to receive and will not
accept any compensation for services rendered to the Company prior to the
consummation of the Business Combination.

 

                5.             Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate will be entitled to receive or accept a finder’s
fee or any other compensation in the event the undersigned, any member of the
family of the undersigned or any Affiliate originates a Business Combination.

 

                6.             The undersigned’s biographical information furnished to
the Company and Morgan Joseph and attached hereto as Exhibit A is true and
accurate in all respects, and does not omit any material information with
respect to the undersigned’s academic and professional background.  The undersigned’s Questionnaire previously
furnished to the Company and Morgan Joseph is true and accurate in all material
respects.  The undersigned represents and
warrants that:

 

(a)           he is not subject to or a respondent
in any legal action for, any injunction, cease-and-desist order or order or
stipulation to desist or refrain from any act or practice relating to the
offering of securities in any jurisdiction;

 

(b)           he has never been convicted of or
pleaded guilty to any crime (i) involving any fraud or (ii) relating to any
financial transaction or handling of funds of another person, or (iii)
pertaining to any dealings in any securities, and he is not currently a
defendant in any such criminal proceeding; and

 

(c)           he has never been suspended or
expelled from membership in any securities or commodities exchange or
association or had a securities or commodities license or registration denied,
suspended or revoked.

 

                7.             The undersigned has full right and power, without
violating any agreement

 

2

 

by
which he is bound, to enter into this letter agreement and to serve as a
director of the Company.

 

                8.             In connection with the customary due diligence practices
of Morgan Joseph with respect to companies for which Morgan Joseph enters into
underwriting agreements related to initial public offerings for such companies,
and during the period prior to the Effective Date, the undersigned authorizes
any employer, financial institution, or consumer credit reporting agency to
release to Morgan Joseph and its legal representatives or agents (including any
investigative search firm retained by Morgan Joseph) any information they may
have about the undersigned’s background and finances (“Information”).  Neither Morgan Joseph nor its agents shall be
violating the undersigned’s right of privacy in any manner in requesting and
obtaining the Information during the period prior to the Effective Date and the
undersigned hereby releases them from liability for any damage whatsoever in
that connection.

 

                9.             In connection with the vote required to consummate a
Business Combination, the undersigned agrees that he will vote all shares of
common stock, par value $0.001, owned by him prior to the IPO (“Insider Shares”)
in accordance with the majority of the votes cast by the holders of the IPO
Shares, and all shares of common stock acquired in connection with or following
the IPO “For” a Business Combination.

 

                10.           The undersigned will escrow his Insider Shares for the
period commencing on the Effective Date and ending on the third anniversary of
the Effective Date, subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and an escrow agent acceptable to
the Company.

 

 

                11.           This letter agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the
application of the substantive laws of another jurisdiction.  The undersigned hereby (i) agrees that any
action, proceeding or claim against him arising out of or relating in any way
to this letter agreement (a “Proceeding”) shall be brought and enforced in the
courts of the State of New York of the United States of America for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive, (ii) waives any objection to such
exclusive jurisdiction and that such courts represent an inconvenient forum and
(iii) irrevocably agrees to appoint Ellenoff Grossman & Schole LLP as agent
for the service of process in the State of New York to receive, for the
undersigned and on his behalf, service of process in any Proceeding.  If for any reason such agent is unable to act
as such, the undersigned will promptly notify the Company and Morgan Joseph and
appoint a substitute agent acceptable to each of the Company and Morgan Joseph
within 30 days and nothing in this letter will affect the right of either party
to serve process in any other manner permitted by law.

 

                12.           As used herein, (i) a “Business Combination” shall mean an
acquisition by

 

3

 

merger,
capital stock exchange, asset or stock acquisition, reorganization or
otherwise, of an operating business or businesses in the media, entertainment
and/or telecommunications industries; (ii) “Insiders” shall mean all officers,
directors and stockholders of the Company immediately prior to the IPO; (iii) “Insider
Shares” shall mean all of the shares of Common Stock of the Company owned by an
Insider prior to the IPO; and (iv) “IPO Shares” shall mean the shares of Common
Stock issued in the Company’s IPO.

 

 

 

	
   

  	
  Martin
  Gottlieb

  	
   

  
	
   

  	
  Print
  Name of Insider

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Martin Gottlieb

  	
   

  
	
   

  	
  Signature

  	
   

  

 

4

 

EXHIBIT A

 

Martin
E. Gottlieb has been a Director since April 2006. Mr.
Gottlieb is a founder and Managing Director of Argent Group Ltd., a boutique
investment banking firm specializing in asset-based structured financings of
capital assets. Serving as Argent’s President and Chief Executive Officer since
its formation in 1982, Mr. Gottlieb has been responsible for the overall
management and direction of the firm. Prior to forming Argent in 1982,
Mr. Gottlieb was Vice President and Head of the Leveraged Leasing Group at
Bank of America. In this capacity, he was responsible for transaction
origination, placement and implementation and had profit center responsibility
for the Group. Mr. Gottlieb started his career at the First National Bank
of Chicago. Mr. Gottlieb is an honors graduate of Long Island University
with a Bachelor of Science degree in Business Administration earned in 1973 and
holds an MBA degree from the University of Chicago earned in 1976.

 

5

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