Document:

<PAGE>   1

                                                                   EXHIBIT 10.12

                              AMENDED AND RESTATED
                         INTERCOMPANY SERVICES AGREEMENT

     This Amended and Restated Intercompany Services Agreement (this
"Agreement") is made and entered into as of January 1, 2000, by and between
Hallmark Cards, Incorporated, a Missouri corporation with headquarters in Kansas
City, Missouri ("Hallmark"), and Crown Media, Inc., a Delaware corporation with
headquarters in Englewood, Colorado ("Crown").

     1. COMMENCEMENT AND TERM OF AGREEMENT.

        a. Beginning as of the date hereof (the "Effective Date"), Hallmark
     shall provide to Crown in a manner consistent with past practices those
     services set forth in Section 2 of this Agreement ("Corporate Services").

        b. The term of this Agreement shall be three (3) years from the
     Effective Date unless terminated earlier by agreement of the parties hereto
     or in accordance with the terms of this Agreement.

        c. Hallmark may terminate this Agreement if at any time Hallmark no
     longer directly or indirectly owns 40% or more of the equity of Crown.

     2. CORPORATE SERVICES.

     The Corporate Services provided under this Agreement shall include the
following as more specifically described in this Agreement:

           1) Tax services

           2) Risk management, health, safety and environmental advice and
              Insurance

           3) Legal services

           4) Treasury and cash management

           5) Real estate consulting

     3. COSTS AND FEES FOR CORPORATE SERVICES.

        a. In return for Corporate Services provided hereunder, Crown shall pay
     Hallmark a fee of Five Hundred Thousand Dollars ($500,000) plus out of
     pocket expenses and third party fees (as set forth in 3(b)) for each year
     of the Agreement. Crown shall pay these costs and fees in arrears on the
     last business day of each quarter of the Agreement.

        b. In some cases, the Corporate Services provided to Crown by Hallmark
     will include services provided by third parties (e.g. insurance brokers

                                       1

<PAGE>   2

     and carriers, accountants, actuaries, financial printers). Such third party
     services shall be approved by Crown in advance and shall be billed directly
     to Crown. In the event Crown denies approval of services to be provided by
     any third party, Hallmark shall not be required to provide such services.

     4. TAX SERVICES. Subject to the terms of that certain Contribution
Agreement and that certain Tax Sharing Agreement by and among Hallmark
Entertainment, Inc., Crown, Crown Media Holdings, Inc. and others, the Hallmark
tax department shall, except to the extent otherwise requested by Crown, provide
the tax services for Crown set forth below.

        a. Tax compliance services which shall consist of the preparation and
     timely filing of federal and state income tax returns (including quarterly
     estimated payments) and state sales and use tax returns. Crown shall
     furnish Hallmark with full and complete financial information necessary or
     appropriate to prepare or timely file such returns. Crown shall promptly
     reimburse Hallmark for any tax payments made by Hallmark on Crown's behalf.
     Crown shall be responsible for all other tax compliance matters, including
     without limitation, property tax and payroll tax.

        b. Tax audit services which shall consist of the administration of each
     audit agreement, representation of Crown at all administrative hearings,
     and consultation with regard to any appeals through the judicial system,
     including the selection of legal counsel.

        c. Tax consulting services which shall consist of(1) periodic (no less
     than semi-annual) reviews with Crown financial and operating personnel to
     identify and implement tax savings opportunities, and (2) transactional tax
     planning.

     5. RISK MANAGEMENT AND INSURANCE. The Hallmark risk management department
shall provide the services set forth below.

        a. Risk management services, which will include leading the process for
     identifying and analyzing property and casualty risks (not business risks),
     for developing loss prevention and risk control strategies, for developing
     and implementing insurance programs and other loss funding programs and
     for claims administration practices.

        b. Advice and supervision with respect to health, safety and
     environmental issues.

        c. At Crown's request, Hallmark will arrange or assist in arranging for
     insurance coverage for Crown ("Insurance"). Hallmark may arrange for an
     insurance policy covering only Crown's risks or interests or may include
     Crown in Hallmark's or Hallmark's subsidiaries' insurance coverages, at
     Hallmark's

                                       2

<PAGE>   3

     discretion. If Hallmark arranges for an insurance policy covering only
     Crown's risks or interests, Crown shall pay the costs of such policy at the
     direction of Hallmark, either to Hallmark or to the insurance provider. If
     Hallmark arranges for an insurance policy that covers risks or interests of
     Hallmark or its subsidiaries in addition to Crown, then the following terms
     and conditions shall apply:

           1) Crown shall, within 30 days of its receipt of a reasonably
        detailed invoice from Hallmark, pay the portion of the premiums and
        other charges for the Insurance attributable to the coverage provided to
        Crown. The portion of such premiums and other charges payable by Crown
        shall be allocated in good faith by Hallmark in a manner to reflect the
        cost to Hallmark of the insurance premiums and other charges that are
        properly attributable to Crown. The Insurance provided shall be subject
        to such policies of insurance or self-insurance, and such guidelines or
        procedures in respect of insurance or self-insurance, as Hallmark shall
        determine. In the event the terms of the Insurance materially change
        from those terms in effect immediately prior to the date hereof,
        Hallmark agrees (i) to the extent Hallmark is aware of a material change
        prior to the effective date of the change, to provide notice to Crown of
        the change prior to its effective date, or (ii) otherwise to provide
        notice to Crown upon becoming aware of the change. It is expressly
        agreed by Crown and Hallmark that any self-insurance, retention or
        deductible shall be for the account of and be an obligation of Crown,
        and that Crown's obligations in respect of such self-insurance,
        retention or deductible shall survive the termination of this Agreement.

           2) Either Crown or Hallmark may terminate all or any portion of the
        Insurance placed in policies specific to Crown at any time on 90 days'
        prior written notice to the other party hereto. Notwithstanding the
        foregoing, so long as Hallmark directly or indirectly owns 50% or more
        of the voting power of all then-outstanding shares of capital stock of
        Crown, Crown may not, without the prior written consent of Hallmark,
        terminate all or any portion of the Insurance without providing evidence
        satisfactory to Hallmark in Hallmark's sole discretion that Crown has
        obtained, or upon termination of such Insurance will obtain, comparable
        insurance coverage. In the event all or any portion of the Insurance is
        terminated, if appropriate, the charges therefor shall be adjusted
        equitably to reflect such termination.

           3) Notwithstanding anything herein to the contrary, the parties
        hereto recognize that Hallmark is neither an insurance broker nor an
        insurance carrier. At no time will Hallmark be required by this
        Agreement or otherwise by Crown to act as an insurance broker or
        carrier.

     6. LEGAL SERVICES. Hallmark shall provide general legal services of the
type previously provided to Crown not including advice previously provided by
outside

                                       3

<PAGE>   4

counsel, advice regarding securities laws, telecommunications law and other
specialized areas for which Hallmark does not have in-house expertise. It is
contemplated that Hallmark will not act as general counsel for Crown but will
coordinate or recommend services of outside counsel as appropriate.

     7. TREASURY. The Hallmark finance department will provide treasury services
which shall include cash management, foreign exchange, arranging debt or letters
of credit, managing investments (both corporate and benefit plans) and assisting
in structuring financing leasing arrangements.

     8. REAL ESTATE. The Hallmark real estate department shall assist Crown in
identifying and analyzing office space and negotiating leases in connection with
such space.

     9. COOPERATION. Hallmark and Crown shall cooperate with each other with
respect to all provisions of this Agreement and the Corporate Services and
Insurance (if any) provided hereunder. Hallmark may agree to provide additional
Corporate Services at its discretion.

     10. LIMITATION OF LIABILITY. Except as may be provided in Section 11 below,
Hallmark, its subsidiaries, affiliates, directors, officers, employees, agents
and permitted assigns (each, a "Hallmark Party") shall not be liable to Crown,
any subsidiary or any affiliate, director, officer, employee, agent or permitted
assign of Crown or any of its subsidiaries, (each, a "Crown Party") for any
liabilities, claims, damages, losses or expenses, including, but not limited to,
any special, indirect, incidental or consequential damages, of a Crown Party
arising in connection with this Agreement, the Corporate Services or the
Insurance.

     11. HALLMARK INDEMNIFICATION. Hallmark shall indemnify, defend and hold
harmless each of the Crown Parties from and against all liabilities, claims,
damages, losses, settlements and expenses (including, but not limited to, court
costs and reasonable attorneys' fees) (collectively referred to as "Damages") of
any kind or nature, of any third party unrelated to any Crown Party caused by or
arising in connection with the gross negligence or willful misconduct of any
employee of Hallmark in connection with the performance of the Corporate
Services, or provision of the Insurance, except to the extent that Damages were
caused directly or indirectly by acts or omissions of any Crown Party.
Notwithstanding the foregoing, Hallmark shall not be liable for any special,
indirect, incidental, or consequential damages relating to such Damages. In the
event that Crown has actual knowledge of a claim that may be the subject of
indemnification under this Section, it shall promptly notify Hallmark of such
claim and Hallmark, in its sole discretion, may defend, settle, or otherwise
litigate such claim.

     12. CROWN INDEMNIFICATION. Crown shall indemnify, defend and hold harmless
each of the Hallmark Parties, from and against all Damages of any kind or
nature, caused by or arising in connection with this Agreement, the performance
of Corporate Services, or provision of the Insurance so long as (i) Hallmark
acted in good

                                       4

<PAGE>   5

faith pursuant to and within the scope of authority granted to it by this
Agreement and in a manner it believed to be in the best interest of Crown and
(ii) Crown's conduct did not constitute gross negligence or willful misconduct.
In the event that Hallmark has actual knowledge of a claim that may be the
subject of indemnification under this Section 12, it shall promptly notify Crown
of such claim and Crown, in its sole discretion, may defend, settle, or
otherwise litigate such claim.

     13. INFORMATION. Subject to applicable law, each party hereto covenants and
agrees to provide the other party with all information regarding itself and
transactions under this Agreement as are required by such other party to comply
with all applicable federal, state, county and local laws, ordinances,
regulations and codes, including, but not limited to, securities laws and
regulations.

     14. ASSIGNMENT. Neither party may assign or transfer any of its rights or
duties under this Agreement to any person or entity without the prior written
consent of the other party.

     15. NOTICES. Any notice, instruction, direction or demand under the terms
of this Agreement required to be in writing will be duly given upon delivery, by
hand, facsimile transmission or intercompany mail, or five (5) days after
posting if sent by U.S. mail, return receipt requested to the following
addresses:

         Hallmark Cards, Incorporated
         2501 McGee
         P.O. Box 419126
         Kansas City, Missouri 64141-6126
         Attn: General Counsel
         Fax No.: (816) 274-7171

         Crown Media, Inc.
         6430 South Fiddlers Green Circle
         Suite 500
         Englewood, Colorado 80111
         Attn: David Evans
         Fax No.: (303) 220-7660

or to such other address as either party may have furnished to the other in
writing in accordance with this Section 15.

     16. GOVERNING LAW. This Agreement shall be construed in accordance with and
governed by the laws of the State of Missouri except its choice of law rules and
except to the extent preempted by federal law.

     17. SUSPENSION. The obligations of any party to perform any acts hereunder
may be suspended if such performance is prevented by fires, strikes, embargoes,
riot,

                                       5

<PAGE>   6

invasions, governmental interference, inability to secure goods or materials, or
other circumstances outside the control of the parties.

     18. SEVERABILITY. If any provision of this Agreement shall be invalid or
unenforceable, such invalidity or unenforceability shall not render the entire
Agreement invalid. Rather, the Agreement shall be construed as if not containing
the particular invalid or unenforceable provision, and the rights and
obligations of each party shall be construed and enforced accordingly.

     19. RIGHTS UPON ORDERLY TERMINATION; SURVIVAL. Upon termination or
expiration of this Agreement or any of the Corporate Services or Insurance
described herein, each party shall, upon request, forthwith return to the other
party all reports, paper, materials and other information required to be
provided to the other party by this Agreement. In addition, each party shall
assist the other in the orderly termination of this Agreement or any of the
Corporate Services or Insurance described herein. Notwithstanding any
termination of this Agreement, the obligations of the parties hereto to make
payments hereunder and the provisions of Sections 10, 11 and 12 shall survive.

     20. AMENDMENT. This Agreement may only be amended by a written agreement
executed by all of the parties hereto.

     21. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties, and supersedes all prior agreements, representations,
negotiations, statements or proposals related to the subject matter hereof.

     22. COUNTERPARTS. This Agreement may be executed in separate counterparts,
each of which deemed an original and all of which, when taken together, shall
constitute one agreement.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by
their duly authorized representatives.

                                        HALLMARK CARDS, INCORPORATED

                                        By /s/ JUDITH WHITTAKER
                                           -------------------------------------

                                        Title Vice President - General Counsel
                                              ----------------------------------

                                        CROWN MEDIA, INC.

                                        By /s/ WILLIAM J. ALIBER
                                           -------------------------------------

                                        Title CFO
                                              ----------------------------------

                                       6<PAGE>   1
                                                                   EXHIBIT 10.13

                      HALLMARK ENTERTAINMENT NETWORKS, INC.

                         SHARE APPRECIATION RIGHTS PLAN

         1.   PURPOSE. To provide the chief executive officer and other key
officers of the Company with incentives linked to the increase in the Company's
market value.

         2.   ELIGIBILITY. The chief executive officer and other key officers of
the Company as approved by the Board of the Company.

         3.   SHARE APPRECIATION RIGHTS. The Board of Directors has authorized
the creation of 3,000,000 phantom share appreciation rights ("SARs"). The SARs
will be subject to restrictions herein described related to their exercise and
transferability and will provide plan participants with the right to benefit
from any increase in the value of SARs for a specified number of years. The SARs
will have none of the rights associated with common shares such as voting or
dividend rights and will have no value outside the context of this Plan.

         4.   UNIT VALUATION. Initially, the value of an SAR (the "Unit Value")
will be an amount equal to 3% of $450 million, i.e., $13.5 million, divided by
3,000,000. Subsequently the Unit Value will be the quotient of (i) an amount
equal to 3% of the Plan Value of the Company divided by (ii) 3,000,000;
provided, however, that the aggregate distribution pursuant to this Plan shall
not exceed $15 million and provided, further, that the aggregate distribution
pursuant to this Plan to any single person shall not exceed $10 million.

              A. Except as set forth in subparagraphs 4C and D and 7B below,
during any period when the Company's stock is not publicly traded, the "Plan
Value of the Company" shall be the fair market value of the common stock of
the Company, determined as set forth below. The "fair market value of the
Company" means the price which could reasonably be expected to be obtained for
the common stock of the Company within six (6) months after the valuation if it
were sold in a single arms' length transaction wherein there would be a change
of control, using valuation techniques then prevailing in the industry that
would maximize after tax earnings to Hallmark and assuming a reasonable period
for effecting such sale. The Qualified Appraisers, hereinafter defined, shall
consider, among other factors they deem relevant and customarily considered in
transactions of this nature in determining the value of the Company, whether the
business is continuing as an ongoing concern and whether the then current
management is remaining in place and for what duration or, if known, the new
management team.

              B. Except as set forth in subparagraphs 4C and D and 7B below, and
unless less than 10% of the outstanding stock of the Company is publicly traded,
during any period when the Company's common stock is publicly traded, the "Plan
Value of the Company" shall be the market capitalization of the Company (i.e.,
the closing market value of a share of common stock of the Company as shown in
The Wall Street Journal on the valuation date or the next

<PAGE>   2

following date on which such trading occurred, times the number of outstanding
shares of stock of the Company).

              C. In the event of the sale of all of the outstanding stock of the
Company, the Plan Value of the Company shall be the sale price of the common
stock of the Company.

              D. In the event of the sale of all or substantially all of the
assets of the Company, the Plan Value of the Company shall be the sale price of
the assets, net of the amount of any debt assumed by the buyer or the amount of
any debt required to be paid by Seller.

         5.   SAR GRANTS. SARs shall be granted at the discretion of the Board
of Directors. At the date of a grant of SARs, the exercise price ("Base Value")
of an SAR will equal the most recently determined Unit Value. Thereafter the
Base Value of a granted SAR will be increased by an amount equal to the quotient
of 3% of (i) any equity contribution by stockholders or members to the Company
divided by (ii) 3,000,000 and decreased by an amount equal to the quotient of
(i) 3% of any capital distributions of dividends to stockholders divided by (ii)
3,000,000.

         6.   SAR EXERCISE.

              A. Term. The term of the Plan and of each SAR will end December
31, 2002. The SARs, vested or unvested, will have no rights or value after their
term has expired except as provided in Paragraph 7A.

              B. Vesting Provisions. SARs will vest in thirty-six (36) equal
installments commencing the date of grant and monthly thereafter.

              C. Payment on Exercise. Upon exercise of a vested SAR the
participant will receive the Appreciation Value of the SAR. "Appreciation Value"
means an amount equal to the excess, if any, of the Unit Value determined as
herein provided over the Base Value of the SAR being exercised. Payment will be
made in cash unless the Company is prevented by law or the terms of any credit
agreement or otherwise from doing so in which event it will issue a negotiable
note in the amount due with interest at the prevailing prime rate as published
in The Wall Street Journal on the date of issuance. Payments on any such notes
will be subordinate to the payment of indebtedness of the Company for borrowed
money from external sources, to the extent that the terms of that borrowed money
prevent payment of such notes, and will be paid as soon as permitted.

         7.   REDEMPTIONS.

              A. Any vested SARs outstanding on the day after the end of the
Plan term shall be bought by the Company at their Appreciation Value.

                                        2

<PAGE>   3

              B. In the event of the sale of a controlling interest of the
Company or of all or substantially all of its assets, the Company will have the
right (but not the obligation) to buy back any or all remaining SARs at their
Appreciation Value. In the event of a sale of a controlling interest in the
Company but not the entire Company, the Appreciation Value shall be calculated
as if it were a redemption at the end of the Plan term. In such event all SARs
shall be fully vested.

         8.   TERMINATION. In the event of a participant's involuntary
termination without cause or a participant's termination for "good reason" from
the Company, one-half of the participant's unvested SARs shall be vested. In the
event of a participant's voluntary termination without "good reason" or
involuntary termination with cause from the Company or its affiliates, all
unvested SARs shall be forfeited. "Termination Without Cause" as used herein
shall mean what such term is defined in a participant's employment agreement or
it shall mean (if such term is not otherwise defined in a participant's
employment agreement) termination which is not reasonably justifiable by
participant's conduct, failure to perform as directed, or behavior damaging to
the reputation or image of the Company or its business or which materially
impairs the effectiveness of the participant in his/her position. Any other
involuntary termination shall be deemed to be with cause. Termination by a
participant for "good reason" shall be as defined in his employment agreement
(or if not defined in a current employment agreement, due to a substantial
breach by the Company of his written employment agreement). The good faith
determination of the Board of Directors as to whether a termination is with or
without cause or is voluntary shall be binding on the participant.

         Determination of the value of the vested SARs will be made as if SARs
were exercised at the end of the year preceding the year of the participant's
termination, except that on a termination "without causes" or for "good reason,"
a participant may elect, by written notice delivered to Company within 30 days
after such termination, to have his SARs valued under paragraph 7 as if there
had been no termination.

         9.   RETIREMENT, DEATH, OR PERMANENT DISABILITY. In the event of a
participant's retirement, death or permanent disability:

         --   Unvested SARs shall be vested.

         --   Vested SARs shall be valued at an amount equaling the difference
              between the Base Value of the SARs being exercised and the most
              recently determined Unit Value for such SARs pursuant to 11E prior
              to the date of retirement, death or permanent disability.

         10.  SALE OF A CONTROLLING INTEREST. In the event of the sale of
controlling interest of the Company or of all or substantially all of its assets
and the Company does not elect to mandatorily buy-back any and/or all SARs, the
Company shall require under the terms of the

                                        3

<PAGE>   4

transaction that the third party transferee be bound by any and/or all Plan
obligations of the Company.

         11.   MISCELLANEOUS.

              A. Funding. All benefits from this Plan shall be payable solely
from the general assets of the Company and no separate or special funds shall be
established and no segregation of assets shall be made to assure the payment of
benefits from this Plan. The participant shall have no right, title, or interest
in or to any investments which the Company may make to aid in meeting its
obligations under this Plan. Nothing contained in this document, and no action
taken pursuant to its provisions, shall create or be construed to create a trust
of any kind or a fiduciary relationship between the Company and a participant or
any other person. To the extent that any person acquires a right to receive
payments from the Company pursuant to this Plan, such rights shall be not
greater than the right of an unsecured creditor of the Company.

              B. Transfer. SARs may not be transferred other than to the
Company, or one of its shareholders with the consent of the Company, and by will
or the laws of descent and distribution. Each participant shall have the
revocable right to make a written designation of one or more beneficiaries and
one or more contingent beneficiaries. The designation of a beneficiary, and any
revocation and redesignation, shall be effective when received by the Company.
No participant may assign, transfer, alienate, or encumber in any manner his
interest under this Plan. No participant may borrow funds and grant a security
interest or otherwise pledge his rights under this Plan. No provision of this
Plan shall be construed to limit the right of the Company to discharge any
participant or to confer upon any participant the right to continued employment
or any other right not specifically granted in this document.

              C. Taxes. The Company shall be entitled to withhold the amount of
any withholding tax or other amounts required by law or regulation to be
withheld with respect to any amount payable under this Plan.

              D. Administration. This Plan shall be administered by the Board of
Directors of the Company. The Board shall have full power to construe and
interpret this Plan, to establish and amend rules for its administration, to
grant SARs under the Plan, to decide any dispute which may arise thereunder and
to correct any defect or omission or reconcile any inconsistency in this Plan
and any employment agreement. All actions taken and decisions made by the Board
pursuant to this Plan in good faith shall be binding and conclusive on all
persons interested in the Plan. No member of the Board shall be liable for any
action or determination made in good faith with respect to the Plan.

              E. Determination of Plan Value of the Company. Except as set forth
in subparagraphs 4C, 4D and 7B, the Plan Value of the Company pursuant to
Sections 4 and 7 hereof, for the purpose of valuation and payment of SARs (other
than a redemption at the end of the term) shall be as agreed by the participant
(or his legal representatives in the event of his

                                        4

<PAGE>   5

death) holding more than a majority of the vested SARs (the "Designated
Participant") and the Board of Directors or, failing to agree, as determined by
the independent appraiser which values Hallmark annually, based upon its most
recent appraisal but adjusted for the fair market value definition herein
including an assumed change in control and for the Equity Return and debts as
set forth in Paragraph 4A relating to Plan Value of the Company. For the purpose
of a redemption by the Company at the end of the term and except as set forth in
subparagraphs 4C, 4D and 7B, the Plan Value pursuant to Sections 4 and 7 hereof
shall be as agreed by the Designated Participant and the Board of Directors or,
failing to agree, the Board and the Designated Participant shall each designate
a Qualified Appraiser, which Qualified Appraisers shall be retained by the
Company to determine the Plan Value of the Company as of the applicable
Appraisal Date. Each Qualified Appraiser shall submit its written determination
of the Plan Value of the Company to the Company within 45 days after the date of
its retention. If the higher determination of the two Qualified Appraisers is
not greater than 110% of the lower determination, the Plan Value of the Company
shall be the average of such two determinations. If the higher determination is
greater than 110% of the lower determination then such two Qualified Appraisers
shall jointly select within ten (10) days after the date on which the later of
such two determinations was delivered a third Qualified Appraiser to be retained
by the Company. Such third Qualified Appraiser shall deliver its written
determination of the Plan Value of the Company as of the applicable Appraisal
Date within 30 days after its retention, and the Plan Value of the Company shall
be the average of the two closest determinations or, if there are not two
closest determinations, the average of all three determinations. "Qualified
Appraiser" shall mean a nationally recognized appraisal or investment banking
firm with substantial experience as of the applicable Appraisal Date in valuing
entertainment properties. The Company shall pay the expense of the appraiser
selected by it and, up to $100,000 for the second and third appraisers
collectively. The selling participant shall pay the balance of the cost of such
appraisers.

              F. Amendments. This Plan may be amended by the Board of Directors
of the Company provided if any amendment would materially adversely affect the
rights of Plan participants to outstanding SARs, e.g., the issuance of
additional SARs which would dilute the value of outstanding SARs, it must be
approved by holders of 50% of the outstanding SARs.

              G. Employment Agreements. The provisions hereof may be modified by
the employment agreements between a participant and the Company. In such event
the provision of the Employment Agreement shall control.

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]