Document:

Exhibit 10.6

 

May 10, 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 officer and 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 (i) cause the Trust Fund
(as defined in the Letter of Intent) to return capital held in the Trust Fund
to the holders of IPO Shares and (ii) take all reasonable actions within his
power to cause the Company to dissolve as soon as reasonably practicable. The undersigned
hereby waives any and all right, title, interest or claim of any kind (“Claim”)
in or to any rights in the Trust Fund, except with respect to any
of the IPO Shares, as defined herein, acquired by the undersigned in connection
with or following the IPO, and any remaining net assets of the Company as a result
of such return of capital held in the Trust Fund and dissolution of the Company 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. The undersigned
agrees to indemnify and hold harmless the Company against any and all loss,
liability, claims, damage and expense whatsoever (including, but not limited
to, any and all legal or other 

 

 

expenses reasonably incurred
in investigating, preparing or defending against any litigation, whether
pending or threatened, or any claim whatsoever) which the Company may become
subject as a result of any claim by any vendor, prospective target business or
other entity that is owed money by the Company for services rendered or
products sold provided that the Company did not obtain a waiver from such party
of its rights or claims to the Trust Fund and only to the extent necessary to
ensure that such loss, liability, claim, damage or expense does not reduce the
amount in the Trust Fund (as defined in the Letter of Intent).

 

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 to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the dissolution 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 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; provided that commencing on the Effective Date, Value Investments,
LLC (“Related Party”), shall be allowed to charge the Company an allocable
share of Related Party’s overhead, up to $7,500 per month, to compensate it for
the Company’s use of Related Party’s
office space, utilities, administrative, technology and secretarial services. Related
Party and the undersigned shall also be entitled to reimbursement from the
Company for their out-of-pocket expenses incurred in connection with
seeking and consummating a 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 agrees to be the Chairman of the Board, President and Chief
Executive Officer of the Company until the earlier of the consummation by the
Company of a Business Combination or the dissolution of the Company. 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,
does not omit any 

 

 

material information with
respect to the undersigned’s background and contains all of the information
required to be disclosed pursuant to Item 401 of Regulation S-K, promulgated
under the Securities Act of 1933. The undersigned’s Questionnaire previously
furnished to the Company and Morgan Joseph hereto is true and accurate in all
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 by which
he is bound, to enter into this letter agreement and to serve as the Chairman
of the Board, President and Chief Executive Officer of the Company.

 

8.             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 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.           The undersigned agrees to not to
resign (or advise the Board that the undersigned declines to seek re-election
to the Board of Directors) from his position as officer and/or director of the
Company as set forth in the Registration Statement 

 

 

without
the prior consent of Morgan Joseph until the earlier of the consummation by the
Company of a Business Combination, return of capital held in the Trust Account,
or the dissolution of the Company. The undersigned acknowledges that the
foregoing does not interfere with or limit in any way the right of the Company
to terminate the undersigned’s employment at any time (subject to other
contractual rights the undersigned may have) nor confer upon the undersigned
any right to continue in the employ of Company.

 

12.           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.

 

13.           As used herein, (i) a “Business
Combination” shall mean an acquisition by 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; and (iii) “IPO Shares” shall mean the
shares of Common Stock issued in the Company’s IPO.

 

 

	
   

  	
  Eddy
  W. Hartenstein

  	
   

  
	
   

  	
  Print
  Name of Insider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Eddy W. Hartenstein

  	
   

  
	
   

  	
  Signature

  

 

 

EXHIBIT A

 

Eddy W.
Hartenstein has been
our Chairman, President and Chief Executive Officer since
December 2005.  Mr. Hartenstein retired on December 31,
2004 from his position as vice chairman of The DIRECTV Group, Inc.
(formerly Hughes Electronics Corporation) and as a member of The DIRECTV Group
Board of Directors.  Prior thereto, Mr. Hartenstein was chairman and
CEO of DIRECTV, Inc., from 2001 to 2003.  Mr. Hartenstein was
also president of DIRECTV, Inc. from its inception in 1990 to 2001, where
he was responsible for assembling the DIRECTV management team and guiding its
strategic efforts to develop the business infrastructure necessary to launch
the US direct-to-home entertainment distribution service.  From 1987
through 1990, Mr. Hartenstein was senior vice president of Hughes
Communications, Inc.  Between 1984 and 1987, Mr. Hartenstein
served as president of Equatorial Communications Services Company, which was
subsequently acquired by GTE.  Prior to joining Equatorial,
Mr. Hartenstein was vice president of Hughes Communications, from 1981 to
1984.  Mr. Hartenstein joined Hughes Aircraft Company in
1972.   Before transferring to Hughes Communications in 1981, he held
a succession of engineering, operations, and program management positions at
Hughes Aircraft Company’s Space and Communications Division and NASA’s Jet
Propulsion Laboratory.  Mr. Hartenstein received Bachelor’s degrees
in Aerospace Engineering and Mathematics from California State Polytechnic
University, Pomona in 1972.  He received an M.S. degree in Applied
Mechanics from Cal Tech in 1974 while a Hughes Aircraft Company Masters
Fellow.  Mr. Hartenstein currently sits on the board of directors of
Thomson S.A., SanDisk Corp., XM Satellite Radio Holdings Inc. and the Consumer
Electronics Association.  Mr. Hartenstein was elected as a member of
the National Academy of Engineering in 2001 and was inducted into the Broadcasting &
Cable Hall of Fame in 2002.Exhibit 10.7

 

May 10, 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 officer 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 (i) cause the Trust Fund
(as defined in the Letter of Intent) to return capital held in the Trust Fund
to the holders of IPO Shares and (ii) take all reasonable actions within his
power to cause the Company to dissolve as soon as reasonably practicable. The undersigned
hereby waives any and all right, title, interest or claim of any kind (“Claim”)
in or to any rights in the Trust Fund, except with respect to any
of the IPO Shares, as defined herein, acquired by the undersigned in connection
with or following the IPO, and any remaining net assets of the Company as a
result of such return of capital held in the Trust Fund and dissolution of the
Company 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. The
undersigned agrees to indemnify and hold harmless the Company against any and
all loss, liability, claims, damage and expense whatsoever (including, but not
limited to, any and all legal or other expenses reasonably incurred in
investigating, preparing or defending against any 

 

 

litigation, whether pending
or threatened, or any claim whatsoever) which the Company may become subject as
a result of any claim by any vendor, prospective target business or other entity
that is owed money by the Company for services rendered or products sold
provided that the Company did not obtain a waiver from such party of its rights
or claims to the Trust Fund and only to the extent necessary to ensure that
such loss, liability, claim, damage or expense does not reduce the amount in
the Trust Fund (as defined in the Letter of Intent).

 

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 to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the dissolution of the
Company or until such time as the undersigned ceases to be an officer of the
Company, subject to any pre-existing fiduciary and contractual obligations the
undersigned might have.

 

3.             The undersigned acknowledges and
agrees 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;
provided that commencing on the Effective Date, Value Investments, LLC (“Related
Party”), shall be allowed to charge the Company an allocable share of Related
Party’s overhead, up to $7,500 per month, to compensate it for the Company’s
use of Related Party’s office
space, utilities, administrative, technology and secretarial services. Related
Party and the undersigned shall also be entitled to reimbursement from the
Company for their out-of-pocket expenses incurred in connection with
seeking and consummating a 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 agrees to be Executive Vice President and Secretary of the Company
until the earlier of the consummation by the Company of a Business Combination
or the dissolution of the Company. 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, does not omit any material information with
respect to the undersigned’s background and contains all of the 

 

 

information required to be
disclosed pursuant to Item 401 of Regulation S-K, promulgated under the
Securities Act of 1933. The undersigned’s Questionnaire previously furnished to
the Company and Morgan Joseph hereto is true and accurate in all 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 by which
he is bound, to enter into this letter agreement and to serve as the Executive
Vice President and Secretary of the Company.

 

8.             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 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.           The undersigned agrees to not to
resign from his position as officer of the Company as set forth in the
Registration Statement without the prior consent of Morgan Joseph until the
earlier of the consummation by the Company of a Business 

 

 

Combination,
return of capital held in the Trust Account, or the dissolution of the Company.
The undersigned acknowledges that the foregoing does not interfere with or
limit in any way the right of the Company to terminate the undersigned’s
employment at any time (subject to other contractual rights the undersigned may
have) nor confer upon the undersigned any right to continue in the employ of
Company.

 

12.           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.

 

13.           As used herein, (i) a “Business
Combination” shall mean an acquisition by 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; and (iii) “IPO Shares” shall mean the
shares of Common Stock issued in the Company’s IPO.

 

 

	
   

  	
  Bruce
  R. Lederman

  	
   

  
	
   

  	
  Print
  Name of Insider

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Bruce R. Lederman

  	
   

  
	
   

  	
  Signature

  
				

 

 

EXHIBIT A

 

Bruce R.
Lederman has been our
Executive Vice President and Secretary since December 2005 and served
as a director from December 2005 through April 2006. Mr. Lederman is
currently a member of Industrial Equity Capital, LLC, a private investment
firm, which he joined as a founding member in 2002. From 1999 to 2004, he was Chief
Operating Officer, Vice Chairman and Co-founder of AssureSat, Inc., a
company formed to design, build and operate geo-synchronous satellites. From
1994 to 2000, Mr. Lederman co-founded and served as Vice Chairman of
Unisite, Inc., a company which built and purchased telecommunications
towers for the wireless industry. Mr. Lederman retired in 1999 as a senior
partner from the law firm of Latham & Watkins, which he joined in
1968. Mr. Lederman obtained his LLB, cum laude, from Harvard Law School in
1967 and received a B.S. in Economics, cum laude, from the Wharton School of
Finance & Commerce, University of Pennsylvania in 1964. He attended
the London School of Economics at the University of London where he studied
Economics from 1962 to 1963.

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