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Exhibit 10.6    
    

TRADEMARK LICENSE AMENDMENT AND EXTENSION AGREEMENT  

        This Amendment and Extension Agreement dated as of August 28, 2003 is by and between Hallmark Licensing, Inc. ("Hallmark Licensing") and Crown Media
United States, LLC ("Crown US"). 

        WHEREAS,
Crown US and Hallmark Licensing have previously entered into that certain Amended and Restated Trademark License Agreement between the parties dated as of March 17, 2001
as extended on November 30, 2002 (the "License Agreement"); and 

        WHEREAS,
the parties desire to amend and further extend the term of the License Agreement; 

        NOW,
THEREFORE, Crown US and Hallmark Licensing hereby agree as follows: 

        1.     The
term of the License Agreement shall be extended for an additional period terminating on September 1, 2004, subject to any earlier termination pursuant to the
terms of the License Agreement. 

        2.     Paragraph 5
Approval shall be amended to provide that Submissions shall be directed to the attention of James
Welch, or such other person designated by Hallmark from time to time. 

        3.     All
other terms and conditions of the License Agreement will remain unchanged and in full force and effect. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Extension Agreement as of the date set forth above. 

	HALLMARK LICENSING, INC.	 	 
	

By:	
 	

/s/  JUDITH WHITAKER      
	
 	

 
	Title:	 	Vice President
	 	 
	

CROWN MEDIA UNITED STATES, LLC	
 	

 
	

By:	
 	

/s/  C. STANFORD      
	
 	

 
	Title:	 	Vice President
	 	 

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Exhibit 10.6QuickLinks
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Exhibit 10.7    
    

EMPLOYMENT AGREEMENT  

        Agreement, made this 23rd day of June, 2003, between Crown Media Holdings, Inc., a Delaware corporation with offices at 6430 South Fiddlers
Green Circle, Greenwood Village, CO 80111 or its permits assigns ("Employer") and William Abbott ("Employee"), 94 Hills Drive, Oyster Bay, NY 11771. 

WITNESSETH:  

        WHEREAS, Employee is currently employed by Crown Media United States, LLC ("CMUS" f.k.a. Odyssey Holdings, LLC), a
subsidiary of Employer, under an employment agreement dated January 27, 2000; and 

        WHEREAS, Employer desires to extend the employment of Employee and Employee desires to continue to be employed by Employer upon the terms
and conditions set forth: 

        NOW,
THEREFORE, in consideration of the covenants herein contained, the parties hereto agree as follows: 

        1.    Employment and Duties.    

        (a)   Effective
July 1, 2003 (the "Effective Date"), Employer hereby extends Employee's employment and Employee hereby agrees to continue to serve as Executive Vice
President, National Advertising Sales,
reporting directly to the President of Employer or the President of CMUS. Employee agrees to perform such services, as requested by Employer, as are consistent with Employee's position. Employee shall
use Employee's best efforts to promote the interests of Employer and shall devote Employee's full business time, energy and skill exclusively to the business and affairs of Employer during the "Term"
(as "Term" is defined in Paragraph 2 below). 

        (b)   During
the course of Employee's employment hereunder, Employer may create or utilize subsidiary companies for the production and distribution of programming or to
conduct the other activities and businesses of Employer. Employer shall have the right, without additional compensation to Employee, to loan or make Employee available to any subsidiary of Employer or
company in common ownership with Employer to perform services for any programming, property or project owned or controlled by Employer or any such entity, provided that Employee's services for any
such entity shall be consistent with Employee's duties hereunder. Employee further agrees that all the terms of this Employment Agreement shall be applicable to Employee's services for each such
entity. 

        2.    Term of Employment.    The term of Employee's employment ("Term") with Employer hereunder shall commence on
July 1, 2003 and shall end on February 7, 2007, unless terminated earlier as is provided in Paragraph 8 of this Agreement or extended by mutual agreement of the parties. 

        3.    Compensation.    

        (a)    Salary.    As compensation for Employee's services hereunder, Employer shall pay to Employee a salary at the
rate of $405,075 per year during the period July 2, 2003 through February 7, 2004 (prorated), $475,000 per year during the period February 8, 2004 through February 7, 2005;
$498,750 per year during the period February 8, 2005 through February 7, 2006; and $523,688 per year during the period February 8, 2006 through February 7, 2007. Such
salary shall be paid biweekly, in arrears. The salary increases for each of the last two years of the Term (i.e. '05 to '06 and '06 to '07) represent 5% increases over the previous year. In the event
in either year the increase, if any, of the Consumer Price Index calculated by the Department of Labor for 

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the
region including the greater New York City metropolitan area (the "CPI") as of July 1 of the relevant year as compared to the CPI as of the July 1 of the prior year increases by more
than 5%, then Employee's salary will be increased by the higher CPI percentage in lieu of the 5% increases specified above. 

        (b)    Bonuses.    Employee will be paid an annual bonus for fiscal 2003 of at least Seventy-Five Thousand
Dollars ($75,000) and up to One Hundred Fifty Thousand Dollars ($150,000) for achieving 100% of the annual target for sales achievement for the 2003 fiscal year based on the Company's Sales Incentive
Plan, which was developed by Employee and approved by Company. For each subsequent fiscal year during the Term, Employee will be paid a minimum bonus
equal to 25% of the salary paid to Employee in that year pursuant to Paragraph 3(a) above and a maximum bonus of 50% of such yearly salary. One-half of the bonus in excess of the
25% minimum (i.e. up to another 12.5% of salary) will be paid for achievement 100% of the Company's Sales Incentive Plan, as developed by Employee and approved by Company. The other
one-half of the bonus in excess of the 25% minimum (i.e. up to another 12.5% of salary) will be paid for achievement, as determined by the Company in its sole discretion, of other sales
objectives set by the President and CEO of the Company in consultation with Employee. Additional bonuses may be payable to Employee, in the sole discretion of the Company, for
over-achievement of these goals. All bonuses will be paid on the date on which the Company pays bonuses to its employees in general. 

        (c)    Withholding.    All payments of salary shall be made in appropriate installments to conform with the regular
payroll dates for salaried personnel of Employer. Employer shall be entitled to deduct from each payment of compensation to Employee such items as federal, state and local income taxes, FICA,
unemployment insurance and disability contributions, and such other deductions as may be required by law. 

        (d)    Expenses.    During the Term, Employer shall pay or reimburse Employee on an accountable basis for all
reasonable and necessary out-of-pocket expenses for entertainment, travel, meals, hotel accommodations and other expenditures incurred by Employee in connection with Employee's
services to Employer in accordance with Employer's expense account policies for employees at similar levels. When Employee is required by the Company for business reasons to travel by air, Company
shall provide business class air accommodations, or if business class is not available, then first class. 

        (e)    Fringe Benefits.    During the Term, Employee shall be entitled to receive the following fringe benefits:
(i) an allowance of $10,000 per year for an automobile, (ii) group medical, dental, life and disability insurance as per Employer policy, and (iii) any other fringe benefits, on
terms that are or may become available generally to comparable employees of Employer. Employee shall also be entitled to (but may at no time during the Term accrue in excess of) four weeks paid
vacation for each year of the Term. 

        4.    Place of Employment.    During the Term, Employee shall be required to perform Employee's duties at Employer's
offices in New York City or at such other principal location in the New York metropolitan area (or such other location as may be mutually agreeable to Employer and Employee), and Employee shall
undertake all travel required by Employer in connection with the performance of Employee's duties hereunder. 

        5.    Confidentiality, Intellectual Property; Name and Likeness.    

        (a)   Employee
agrees that Employee will not during the Term or thereafter divulge to anyone (other than Employer and its executives, representatives and employees who need to
know such information or any persons designated by Employer) any knowledge or information of any type whatsoever designated or treated as confidential by Employer relating to the business of Employer
or any of its subsidiaries or affiliates, including, without limitation, all types of trade secrets, 

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business
strategies, marketing and distribution plans as well as concrete proposals, plans, scripts, treatments and formats described in subparagraph (b) below. Employee further agrees that
Employee will not disclose, publish or make use of any such knowledge or information of a confidential nature (other than in the performance of Employee's duties hereunder) without the prior written
consent of Employer. This provision does not apply to information which becomes available publicly without the fault of Employee or information which Employee discloses in confidence to Employee's own
privileged representatives or is required to disclose in legal proceedings, provided Employee gives advance notice to the Chief Executive Officer of Employer and an opportunity to Employer to resist
such disclosure in legal proceedings. 

        (b)   During
the Term, Employee will disclose to Employer all concrete proposals, plans, scripts, treatments, and formats invented or developed by Employee during the Term
which relate directly or indirectly to the business of Employer or any of its subsidiaries or affiliates including, without limitation, any proposals and plans which may be copyrightable,
trademarkable, patentable or otherwise exploitable. Employee agrees that all such proposals, plans, scripts, treatments, and formats are and will be the property of Employer. Employee further agrees,
at Employer's request, to do whatever is necessary or desirable to secure for the Employer the rights to said proposals, plans, scripts, treatments, and formats, whether by copyright, trademark,
patent or otherwise and to assign, transfer and convey the rights thereto to Employer at Employer's expense. 

        (c)   Employer
shall have the right in perpetuity to use Employee's name in connection with credits for programming, properties and projects for which Employee performs any
services pursuant to this Agreement. 

        6.    Employee's Representations.    Employee represents and warrants that: 

        (a)   Employee
has the right to enter into this Agreement and is not subject to any contract, commitment, agreement, arrangement or restriction of any kind which would prevent
Employee from performing Employee's duties and obligations hereunder; 

        (b)   To
the best of Employee's knowledge, Employee is not subject to any undisclosed medical condition which might have a material effect on Employee's ability to perform
satisfactorily Employee's services hereunder. 

        7.    Non-Competition; No Raid.    

        (a)   During
the Term, Employee shall not engage directly or indirectly, whether as an employee, independent contractor, consultant, partner, shareholder or otherwise, in a
business or other endeavor which materially interferes with any of Employee's duties or obligations hereunder or which is directly competitive with the business of the Employer or its subsidiaries,
including but not limited to the production, distribution or any other exploitation of audiovisual television material (the "Other Business"). 

        (b)   Employee
further agrees that during the Term and for a period of one year thereafter, Employee will not employ, or attempt to employ or assist anyone else to employ, any
person who is, at the date of termination of Employee's employment, working as an officer, policymaker or in high-level creative development or distribution (including without limitation
executive employees) for or rendering substantially full-time services as such to Employer. 

        8.    Termination.    

        (a)   This
Agreement may be terminated and the Term ended on five (5) business days' written notice for any one of the following reasons (except (i) in which
case termination shall occur on the date of death): 

          (i)  The
death of Employee; 

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         (ii)  The
physical or mental disability of Employee to such an extent that Employee is unable to render services to Employer for a period exceeding an aggregate of twelve
(12) weeks during any twelve month period of the Term. For purposes of counting the aggregate of thirty (30) business days, days properly designated by Employee as vacation days shall
not be counted. In the case of termination by virtue of either the death or disability of Employee, Employee or his heirs will be paid any bonuses which Employee has earned and which are attributable
to periods prior to the effective date of termination, such payment to occur on the date such bonus would normally be paid; 

        (iii)  For
"cause," which for purposes of this Agreement shall be defined as: 

        (A)  the
use of drugs and/or alcohol which interfere materially with Employee's performance of Employee's services under this Agreement; 

        (B)  Employee's
conviction of any act which constitutes a felony under federal, state or local laws or the law of any foreign country; 

        (C)  Employee's
persistent failure after written notice to perform, or Employee's persistent refusal to perform after written notice, any of Employee's duties and
responsibilities pursuant to this Agreement; or 

        (D)  Employee's
dishonesty in financial dealings with or on behalf of Employer, its subsidiaries, affiliates and parent corporation or in connection with performance of
Employee's duties hereunder. 

        (b)   Employer
shall also have the right to terminate Employee at any time prior to the expiration of the Term, in addition to pursuant to Paragraph 8(a) above, by
providing Employee with written notice. In the event of a termination pursuant to this Paragraph 8(b), Employer shall pay to the Employee, commencing thirty (30) days after such notice
of termination, the following: (i) the remaining amounts described in Paragraph 3(a) above for the balance of the Term at such time or times such payments would otherwise be due and
(ii) any bonuses which Employee has earned and which are attributable to periods prior to the effective date of termination, such payment to occur on the date such bonus would normally be paid;  provided, however, that Employee shall have a duty to mitigate damages by pursuing reasonably comparable
alternative employment. If Employee is employed in any capacity following termination pursuant to this Paragraph 8(b), any sums earned by Employee pursuant to such subsequent employment during
the balance of the time that constituted the Term hereunder, shall be offset against any remaining obligation Employer may have to Employee hereunder. Without limiting the foregoing, Employer shall
not be liable for any consequential or punitive damages claimed as a result of any such termination. Employer shall have no further obligations to Employee hereunder. If Employer terminates Employee
under this Paragraph 8(b), Paragraph 7(a) shall not apply from the date of termination (c) In the event that Employer terminates this Agreement due to any of the reasons set forth
in Paragraphs 8(a)(i), 8(a)(ii) or 8(a)(iii)(A-D) above, Employee shall be paid Employee's salary through the later of the expiration of the five (5) business days period
referred to in Paragraph 8(a) or the end of the month in which the termination event occurs, after which Employer's obligation to pay salary to Employee shall terminate. After making the
payments provided for in this sub-paragraph (c), Employer shall have no further obligations to Employee pursuant to this Agreement. 

        (d)   Upon
termination of this Agreement, Employee shall promptly return all of Employer's property to Employer. 

        (e)   Upon
termination of Employee's employment for any reason, Employee shall tender Employee's resignation from the Board of Directors of any of Employer's subsidiaries or
affiliates on which Employee is serving, and Employer shall accept such resignation forthwith. 

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        9.    Breach; Remedies.    Both parties recognize that the services to be rendered under this Agreement by Employee
are special, unique and extraordinary in character, and that in the event of the breach by Employee of the terms and conditions of this Agreement, Employer shall be entitled,  inter alia, if it so elects,
 to institute and prosecute proceedings in any court of competent jurisdiction, either in law or in equity, to obtain
damages for any breach of this Agreement, and to seek to enforce the specific performance thereof by Employee, and/or to seek to enjoin Employee from performing services for any other person, firm or
corporation. The parties further stipulate that the law of State of New York shall apply to any dispute of action regarding this Agreement. 

        10.    Assignment.    This Agreement is a personal contract and, except as specifically set forth herein, the rights,
interests and obligations of Employee herein may not be sold, transferred, assigned, pledged or hypothecated, although Employee may assign or use as security payments due hereunder from Employer. The
rights and obligations of Employer hereunder shall bind in their entirety the successors and assigns of Employer, although Employer shall remain fully liable hereunder. As used in this Agreement, the
term "successor" shall include any person, firm, corporation or other business entity which at the time, whether by merger, purchase or otherwise, acquires all or substantially all of the assets or
business of Employer. 

        11.    Amendment; Captions.    This Agreement contains the entire agreement between the parties. It may not be changed
orally, but only by agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought. Paragraph headings are for convenience of reference
only and shall not be considered a part of this Agreement. If any clause in this Agreement is found to be unenforceable, illegal or contrary to public policy, the parties agree that this Agreement
shall remain in full force and effect except for such clause. 

        12.    Prior Agreements.    This Agreement supersedes and terminates all prior agreements between the parties relating
to the subject matter herein addressed, and sets out the full agreement between the parties concerning its subject matter. 

        13.    Notices.    Any notices or other communications required or permitted hereunder shall be in writing and shall
be deemed effective when delivered in person or if mailed, by registered or certified mail, return receipt requested, in which case the notice shall be deemed effective on the date of deposit in the
mails, postage prepaid, addressed to Employee at the address for Employee appearing in Employer's records and, in the case of Employer, addressed to its Chief Executive Officer at the
address first written above. Either party may change the address to which notices are to be addressed by notice in writing given to the other in accordance with the terms hereof. 

        14.    Periods of Time.    Whenever in this Agreement there is a period of time specified for the giving of notices or
the taking of action, the period shall be calculated excluding the day on which the giver sends notice and excluding the day on which action to be taken is actually taken. 

        15.    Counterparts.    This Agreement may be signed in any number of counterparts, each of which shall be an
original, and all of which, taken together, shall constitute one instrument. 

        16.    Previous Agreement.    The previous agreement, dated January 27, 2000, between CMUS and Employee will be
terminated, effective on the date of full execution of this Agreement, and will on that date have no further force or effect. 

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        IN WITNESS WHEREOF, Employer has by its appropriate officer signed this Agreement and Employee has signed this Agreement as of the day and
year first above written. 

	 	 	CROWN MEDIA HOLDINGS, INC.
	

 	
 	

By	
 	

/s/  DAVID J. EVANS      
 David J. Evans
	

 	
 	

Title	
 	
President & CEO

	

 	
 	
EMPLOYEE
	

 	
 	

/s/  WILLIAM J. ABBOTT      
 William Abbott

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Exhibit 10.7

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