Document:

Exhibit
10.4

 

	
   

  	
  David Evans

  
	
   

  	
  President & Chief Executive
  Officer

  
	
   

  	
  Crown Media Holdings, Inc.

  

 

	
   

  	
  July 9, 2004

  

 

Jeff Henry

9 Fairmile Lane

Cobham, Surrey

United Kingdom KT1112DL

 

Dear Jeff,

 

This will confirm our understanding regarding
settlement of your March 12, 2004 “Employment Agreement” with Crown Media
International, LLC (“Crown”) in the event of a sale or other transaction
involving our international business.

 

While your Employment Agreement may be
assumed by a buyer of Crown’s international assets, we realize that you may
elect not to continue employment with that buyer. Accordingly, Crown Media
Holdings, Inc. has agreed to the following if there is transaction involving
Crown Media International, LLC or Crown Entertainment Limited which affects your
position:

 

If, as a part of the transaction, your
Employment Agreement is assumed by a buyer of one of these entities but, after
due consultation with me or the then-current Chief Executive Officer of Crown
Media Holdings you do not elect to be employed by the buyer, then you will have
the right to terminate your Employment Agreement by written notice. Such
termination will be effective on the date which is the later of 45 days after
the effective date of the transaction or 45 days after our receipt of your
notice. Within 15 days of the effective date of your termination of the
Employment Agreement, we will pay you the present value of the remaining salary
and bonuses which would have been payable to you under Paragraphs 3(a) and (b)
of your Employment Agreement. This payment, however, will be offset by any
amounts you receive from a buyer in discharge or settlement of the Employment Agreement.
Also, the provisions of clauses 5(a) and 7(b) of your Employment Agreement
shall survive any termination thereof (provided that clause 7(b) will apply
only to individuals who are employees of Crown Media Holdings, Inc. or its
then-current subsidiaries at the time of the solicitation).

 

 

In the event your Employment Agreement is not
assumed by a buyer or the Crown operations with which you are associated are
not actually sold and you remain with Crown, you will be eligible for the same “Retention
Bonus” as that which has been extended to other senior employees of the
international operations. The amount of this bonus, however, will be offset by
any other special bonuses which the Crown Media Holdings, Inc. Board of
Directors may award you in connection with the international transaction.

 

This agreement is in recognition of your
extraordinary contributions to the growth and success of Crown’s UK and EMEA
operations and your efforts in assisting us in finding an appropriate buyer
which can capitalize on this success.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ David Evans

  
	
   

  	
  David EvansExhibit 10.5

 

TRADEMARK LICENSE EXTENSION AGREEMENT

 

This Extension Agreement dated as of August 1, 2004 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 and as of
August 28, 2003 (the “License Agreement”); and

 

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

 

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

 

The term of the License Agreement shall be extended for an additional
period terminating on September 1, 2005, subject to any earlier termination
pursuant to the terms of the License Agreement.

 

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/ Deanne
  Stedem

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
    Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CROWN MEDIA
  UNITED STATES, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
     /s/ C. Stanford

  	
   

  
	
   

  	
     C. Stanford

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
    Vice PresidentEXHIBIT 10.19

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND SOLD ONLY IF
REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND
STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL
AND STATE SECURITIES LAWS IS NOT REQUIRED.

 

MACROPORE
BIOSURGERY, INC.

1997 STOCK OPTION AND STOCK PURCHASE PLAN

 

NONSTATUTORY
STOCK OPTION AGREEMENT

Four Year Vesting - Month
to Month

 

MacroPore Biosurgery, Inc., a Delaware corporation
(the “Company”), hereby grants an option to purchase shares of its Common Stock
(the “Shares”) to the optionee named below. 
The terms and conditions of the option are set forth in this cover
sheet, in the attachment and in the Company’s 1997 Stock Option and Stock
Purchase Plan (the “Plan”).

 

Date of Option Grant:

 

Name of Optionee (print):

 

Optionee’s Social Security Number:

 

Shares of Common Stock Covered by Option:

 

Exercise Price per Share:

 

Vesting Start Date:

 

By signing this cover sheet, you agree to all of the terms and
conditions described in the attached Agreement and in the Plan, a copy of which
is also enclosed.

 

	
  Optionee:

  	
   

  	
   

  
	
   

  
	
  MacroPore Biosurgery:

  	
   

  
	
   

  	
  Christopher J. Calhoun, Chief Executive Officer

  
					

 

Attachment

 

1

 

MACROPORE
BIOSURGERY, INC.

1997 STOCK OPTION AND STOCK PURCHASE PLAN

 

NONSTATUTORY
STOCK OPTION AGREEMENT

Four Year Vesting –Month
to Month

 

 

	
  Nonstatutory Stock

  Option

  	
   

  	
  This option is not intended to be an incentive stock
  option under section 422 of the Internal Revenue Code and will be
  interpreted accordingly.

  
	
   

  	
   

  	
   

  
	
  Exercise and Vesting

  	
   

  	
  This option is becomes exercisable to the extent as
  shown in the schedule below: This option shall vest as to 1/48th
  of the Shares on the one-month anniversary of the Vesting Start Date and 1/48th
  of the Shares each full month of Service thereafter. The Shares shall be one
  hundred percent (100%) vested on the fourth anniversary of the Vesting Start
  Date.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notwithstanding the foregoing vesting schedule, upon
  a Change in Control, the vesting schedule shall be accelerated so that
  you shall acquire a vested interest in all then remaining unvested Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No additional Shares shall vest after your Service
  to the Company has been terminated for any reason or no reason.

  
	
   

  	
   

  	
   

  
	
  Term

  	
   

  	
  Your option will expire in any event at the close of
  business at Company headquarters on the day before the 10th anniversary of
  the Date of Option Grant, as shown on the cover sheet. (It will expire
  earlier if your Service to the Company terminates, as described below.)

  
	
   

  	
   

  	
   

  
	
  Regular Termination

  	
   

  	
  If your Service to the Company terminates for any
  reason except death or Disability, then your option will expire at the close
  of business at Company headquarters on the 90th day after your termination
  date.

  
	
   

  	
   

  	
   

  
	
  Death

  	
   

  	
  In the event of your death while in Service, then
  your option will expire at the close of business at Company headquarters on
  the date six (6) months after the date of death. During that six (6) month
  period, your estate or heirs may exercise your option.

  
	
   

  	
   

  	
   

  
	
  Disability

  	
   

  	
  If your Service terminates because of your
  Disability, then your option will expire at the close of business at Company
  headquarters on the date six (6) months after your termination date.

  

 

2

 

	
   

  	
   

  	
  “Disability” means that you are unable to engage in
  any substantial gainful activity by reason of any medically determinable
  physical or mental impairment.

  
	
   

  	
   

  	
   

  
	
  Leaves of Absence

  	
   

  	
  For purposes of this option, your Service does not
  terminate when you go on a bona fide
  leave of absence, that was approved by the Company in writing, if the terms
  of the leave provide for continued service crediting, or when continued
  service crediting is required by applicable law. Your Service terminates in
  any event when the approved leave ends, unless you immediately return to
  active work.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Company determines which leaves count for this
  purpose, and when your Service terminates for all purposes under the Plan.

  
	
   

  	
   

  	
   

  
	
  Restrictions on

  Exercise

  	
   

  	
  The Company will not permit you to exercise this
  option if the issuance of Shares at that time would violate any law or
  regulation.

  
	
   

  	
   

  	
   

  
	
  Notice of Exercise

  	
   

  	
  When you wish to exercise this option, you must
  notify the Company by filing the proper notice of exercise form at the
  address given on the form, a copy of which is attached hereto. Your notice
  must specify how many Shares you wish to purchase. Your notice must also
  specify how your Shares should be registered (in your name only or in your
  and your spouse’s names as community property or as joint tenants with right
  of survivorship). The notice will be effective when it is received by the
  Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If someone else wants to exercise this option after
  your death, that person must prove to the Company’s satisfaction that he or
  she is entitled to do so.

  
	
   

  	
   

  	
   

  
	
  Periods of

  Nonexercisability

  	
   

  	
  Any other provision of this Agreement
  notwithstanding, the Company shall have the right to designate one or more
  periods of time, each of which shall not exceed one hundred eighty (180) days
  in length, during which this option shall not be exercisable if the Company
  determines (in its sole discretion) that such limitation on exercise could in
  any way facilitate a lessening of any restriction on transfer pursuant to the
  Securities Act of 1933, as amended (the “Securities Act”) or any state
  securities laws with respect to any issuance of securities by the Company,
  facilitate the registration or qualification of any securities by the Company
  under the Securities Act or any state securities laws, or facilitate the
  perfection of any exemption from the registration or qualification
  requirements of the Securities Act or any applicable state securities laws
  for the issuance or transfer of any securities. Such limitation on exercise
  shall not alter the vesting schedule set forth in this Agreement other
  than to limit the periods during which this option shall be exercisable.

  

 

3

 

	
  Form of Payment

  	
   

  	
  When you submit your notice of exercise, you must
  include payment of the option price for the Shares you are purchasing.
  Payment may be made in one (or a combination) of the following forms:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •

  	
  Your personal check, a cashier’s check or a money
  order.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •

  	
  Common Stock which has already been owned by you any
  time period specified by the Committee and which is surrendered to the
  Company. The value of the Stock, determined as of the effective date of the
  option exercise, will be applied to the option price.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •

  	
  To the extent that a public market for the Shares
  exists as determined by the Company, by delivery (on a form prescribed by the
  Committee) of an irrevocable direction to a securities broker to sell Shares
  and to deliver all or part of the sale proceeds to the Company in payment of
  the aggregate Exercise Price.

  
	
   

  	
   

  	
   

  
	
  Withholding Taxes

  	
   

  	
  You will not be allowed to exercise this option
  unless you make acceptable arrangements to pay any withholding or other taxes
  that may be due as a result of the option exercise or the sale of Shares
  acquired upon exercise of this option.

  
	
   

  	
   

  	
   

  
	
  Market Stand-Off

  Agreement

  	
   

  	
  In connection with any underwritten public offering
  by the Company of its equity securities pursuant to an effective registration
  statement filed under the Securities Act, including the Company’s initial
  public offering, you shall not sell, make any short sale of, loan,
  hypothecate, pledge, grant any option for the purchase of, or otherwise
  dispose or transfer for value or agree to engage in any of the foregoing
  transactions with respect to any Shares without the prior written consent of
  the Company or its underwriters, for such period of time after the effective
  date of such registration statement, not to exceed one hundred eighty
  (180) days, as may be requested by the Company or such underwriters.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In order to enforce the provisions of this
  paragraph, the Company may impose stop-transfer instructions with respect to
  the Shares until the end of the applicable stand-off period.

  

 

4

 

	
  Restrictions on Resale

  	
   

  	
  By signing this Agreement, you agree not to sell any
  option Shares at a time when applicable laws, regulations or Company or
  underwriter trading policies prohibit a sale.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  You represent and agree that the Shares to be
  acquired upon exercising this option will be acquired for investment, and not
  with a view to the sale or distribution thereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In the event that the sale of Shares under the Plan
  is not registered under the Securities Act of 1933 but an exemption is
  available which requires an investment representation or other
  representation, you shall represent and agree at the time of exercise to make
  such representations as are deemed necessary or appropriate by the Company
  and its counsel as a condition of issuance of the Shares to you by the
  Company.

  
	
   

  	
   

  	
   

  
	
  The Company’s Right

  of First Refusal

  	
   

  	
  In the event that you propose to sell, pledge or
  otherwise transfer to a third party any Shares acquired under this Agreement,
  or any interest in such Shares, the Company shall have the “Right of First
  Refusal” with respect to all (and not less than all) of such Shares. If you
  desire to transfer Shares acquired under this Agreement, you must give a
  written notice to the Company describing fully the proposed transfer,
  including the number of Shares proposed to be transferred, the proposed
  transfer price and the name and address of the proposed transferee (the “Transfer
  Notice”). The Transfer Notice shall be signed both by you and by the proposed
  new transferee and must constitute a binding commitment of both parties to
  the transfer of the Shares. The Company shall have the right to purchase all,
  and not less than all, of the Shares on the terms of the proposal described
  in the Transfer Notice (subject, however, to any change in such terms
  permitted in the next paragraph) by delivery of a notice of exercise of the
  Right of First Refusal within thirty (30) days after the date when the
  Transfer Notice was received by the Company.

  

 

5

 

	
   

  	
   

  	
  If the Company fails to exercise its Right of First
  Refusal before or within thirty (30) days after the date when it received the
  Transfer Notice, you may, not later than ninety (90) days following receipt
  of the Transfer Notice by the Company, conclude a transfer of the Shares
  subject to the Transfer Notice on the terms and conditions described in the
  Transfer Notice. Any proposed transfer on terms and conditions different from
  those described in the Transfer Notice, as well as any subsequent proposed
  transfer by you, shall again be subject to the Right of First Refusal and
  shall require compliance with the procedure described in the paragraph above.
  If the Company exercises its Right of First Refusal, the parties shall
  consummate the sale of the Shares on the terms set forth in the Transfer
  Notice within sixty (60) days after the date when the Company received the
  Transfer Notice (or within such longer period as may have been specified in
  the Transfer Notice); provided, however, that in the event the Transfer
  Notice provided that payment for the Shares was to be made in a form other than
  lawful money paid at the time of transfer, the Company shall have the option
  of paying for the Shares with lawful money equal to the present value of the
  consideration described in the Transfer Notice.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Company’s Right of First Refusal shall inure to
  the benefit of its successors and assigns, shall be freely assignable in
  whole or in part and shall be binding upon any transferee of the Shares.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Company’s Right of First Refusal shall terminate
  in the event that Stock is listed on an established stock exchange or is
  quoted regularly on the Nasdaq Stock Market.

  
	
   

  	
   

  	
   

  
	
  Transfer of Option

  	
   

  	
  Prior to your death, only you may exercise this
  option. You cannot transfer or assign this option. For instance, you may not
  sell this option or use it as security for a loan. If you attempt to do any
  of these things, this option will immediately become invalid. You may,
  however, dispose of this option in your will, or you may designate a
  beneficiary to exercise this option.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Regardless of any marital property settlement
  agreement, the Company is not obligated to honor a notice of exercise from
  your spouse or former spouse, nor is the Company obligated to recognize such
  individual’s interest in your option in any other way.

  
	
   

  	
   

  	
   

  
	
  No Retention Rights

  	
   

  	
  Your option or this Agreement do not give you the
  right to be retained by the Company (or any subsidiaries) in any capacity.
  The Company (and any subsidiaries) reserve the right to terminate your
  Service at any time and for any reason.

  

 

6

 

	
  Shareholder Rights

  	
   

  	
  You, or your estate or heirs, have no rights as a
  shareholder of the Company until a certificate for your option Shares has
  been issued. No adjustments are made for dividends or other rights if the
  applicable record date occurs before your stock certificate is issued, except
  as described in the Plan.

  
	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
  In the event of a stock split, a stock dividend or a
  similar change in the Company stock, the number of Shares covered by this
  option and the exercise price per share may be adjusted pursuant to the Plan.
  Your option shall be subject to the terms of the agreement of merger,
  liquidation or reorganization in the event the Company is subject to such
  corporate activity.

  
	
   

  	
   

  	
   

  
	
  Legends

  	
   

  	
  All certificates representing the Shares issued upon
  exercise of this option shall, where applicable, have endorsed thereon the
  following legends:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
  MAY NOT BE SOLD, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF,
  EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE
  COMPANY AND THE INITIAL HOLDER HEREOF. SUCH AGREEMENT PROVIDES FOR CERTAIN
  TRANSFER RESTRICTIONS, INCLUDING RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED
  TRANSFER OF THE SECURITIES AND CERTAIN REPURCHASE RIGHTS IN FAVOR OF THE
  COMPANY UPON TERMINATION OF SERVICE WITH THE COMPANY. THE SECRETARY OF THE
  COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE
  HOLDER HEREOF WITHOUT CHARGE.”

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
  NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS
  AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND
  SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF
  FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF
  COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER
  FEDERAL AND STATE SECURITIES LAWS ARE NOT REQUIRED.”

  

 

7

 

	
  Applicable Law

  	
   

  	
  This Agreement will be interpreted and enforced
  under the laws of the State of California without regard to conflicts of laws
  provisions thereof.

  
	
   

  	
   

  	
   

  
	
  The Plan and Other Agreements

  	
   

  	
  The text of the Plan is incorporated in this
  Agreement by reference. Certain capitalized terms used in this Agreement are
  defined in the Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This Agreement and the Plan constitute the entire
  understanding between you and the Company regarding this option. Any prior
  agreements, commitments or negotiations concerning this option are
  superseded.

  
	
   

  	
   

  	
   

  
	
  Special
  Notice to

  California Residents

  	
   

  	
  MacroPore Biosurgery’s Plan does not allow for
  transferability by instrument to an inter vivos or testamentary trust, or by
  gift to immediate family as defined in 17 CFR 240.16a-1(e), of options that
  are granted pursuant to the Plan, nor does MacroPore Biosurgery’s Plan allow
  for transferability by will or the laws or descent or distribution of rights
  to purchase MacroPore Biosurgery’s common stock that are granted pursuant to
  the Plan.

  

 

By signing the cover sheet of this Agreement, you agree to all of the
terms and conditions described above and in the Plan.

 

8

 

NOTICE
OF EXERCISE OF STOCK OPTION

 

MacroPore Biosurgery, Inc.

6740 Top Gun Street

San Diego, CA 92121

Attn:  Chief Financial Officer

 

Re:                               Exercise of Stock Option to Purchase
Shares of Company Stock

 

Ladies and Gentlemen:

 

Pursuant to the Stock Option Agreement dated                     ,
199       (the “Stock Option Agreement”), between
MacroPore Biosurgery, Inc., a Delaware corporation (the “Company”), and the
undersigned, I hereby elect to purchase                            shares
of the common stock of the Company (the “Shares”), at the price of $                    
per Share.  My check in the amount of $                      
and the executed Assignment Separate from Certificate are enclosed.  The Shares are to be issued and registered in
the name(s) of:

 

 

 

The undersigned understands there may be tax
consequences as a result of the purchase or disposition of the Shares.  The undersigned represents that he/she has
received and reviewed the Plan’s federal tax information and consulted with any
tax consultants he/she deems advisable in connection with the purchase or
disposition of the Shares and the undersigned is not relying on the Company for
any tax advice.

 

The undersigned acknowledges that he/she has received,
read and understood the Stock Option Agreement and agrees to abide by and be
bound by their terms and conditions.  The
undersigned represents that the Shares are being acquired solely for his/her
own account and not as a nominee for any other party, or for investment, and
that the undersigned purchaser will not offer, sell or otherwise dispose of any
such Shares except under circumstances that will not result in a violation of
the Securities Act of 1933, as amended, or any state securities laws.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Please Print Name)

  
	
   

  	
   

  
	
   

  	
  Social Security No.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Full Address)

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