Exhibit 10.6

 

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May 2, 2006

 

Crown Media Holdings, Inc.
12700 Ventura Boulevard
Suite 200

 

Studio City, CA 91604

 

Attn:                    William J. Aliber, Chief Financial Offcer

 

Re:                               Letter of Credit Support

 

Dear Bill:

 

Hallmark has received Crown Media’s request to extend and increase Hallmark’s
letter of credit in support of Crown Media’s credit facility. The letter of
credit would be extended to June 10, 2007 and the amount would be increased to
$240 million.

 

Hallmark is willing to provide this support with the understanding that no other
sources of cash are reasonably available, subject to the following terms and
conditions:

 

•                                          Crown Media will continue to pay the
fee to Citigroup with respect to the letter of credit, which shall be .875% per
year ($2,100,000/year).

 

•                                          Crown Media’s pricing on the credit
facility will remain at the rate of Libor plus 3.0%, of which 2.25% will be paid
to Hallmark or its designated subsidiary and the balance will be paid to the
banks.

 

•                                          Crown Media shall pay all fees and
expenses incurred in connection with its credit facility.

 

•                                          Any draw on this credit facility will
be subject to the prior approval of Crown Media’s Board of Directors and
Hallmark agrees to sign the Borrowing Certifcate upon receipt of evidence of
such approval.

 

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Please confirm your acceptance of these terms and conditions by executing and
returning a copy of this letter to my attention.

 

 

 

Sincerely,

 

 

 

Hallmark Cards, Incorporated

 

 

 

 

 

/s/ Robert J. Druten

 

 

Robert J. Druten

 

Chief Financial Offcer

 

 

Agreed and Accepted:

 

Crown Media Holdings, Inc.

 

 

By:

/s/ William J. Aliber

 

 

Title:

EVP / CFO

 

 

Date:

5/4/06

 

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