Document:

Exhibit 10.4

 

April 12, 2006

 

Chris Moseley

5224 Los Encantos Way

Los Angeles, CA 90027

 

Dear Chris:

 

This will confirm our agreement regarding termination of your
employment with Crown Media Holdings, Inc. (hereafter “Crown” or “the company”)
as well as of your employment agreement with Crown dated June 20, 2003, as
amended May 24, 2004 (the “Employment Agreement”). Pursuant to the terms of the
Employment Agreement, your contract is scheduled to expire on July 15, 2006 (“Contract
Term”). Based on the terms of this severance agreement (“Agreement”), the
effective date of the termination of your employment will be April 21, 2006,
the date your job duties are scheduled to end (“Term Date”).

 

In connection with the termination of your employment and Employment Agreement,
Crown agrees to do the following:

 

1.             To pay you your
full pay (less appropriate payroll deductions) at your current base salary rate
from April 22, 2006 through the Contract Term. This amount will be paid in one
lump sum amount of One Hundred Ninety-Five Thousand, Nine Hundred Six Dollars
($195,906) (less appropriate payroll deductions) no later than May 15, 2006.

 

2.             To pay you a lump
sum amount of Fifty-Nine Thousand One Hundred Twenty-One Dollars ($59,121.00)
(less appropriate payroll deductions), which constitutes a pro-rata bonus for
the period January 1, 2006 through the Contract Term (based on the annual rate
of fifteen (15) percent of salary), no later than May 15, 2006.

 

3.             From April 22, 2006
through the Contract Term, your medical and dental coverage under the Crown
medical, dental and vision plans will continue pursuant to Consolidated Omnibus
Budget Reconciliation Act (“COBRA”), with the company paying the premiums. Your
participation in all other Crown employee benefit plans (including any fringe
benefits under the Employment Agreement) will cease as of the Term Date, except
as provided in this Agreement. Following the Term Date, you will be entitled to
distribution of all vested, accrued benefits in your Crown 401(k) account
pursuant to the terms of the Crown 401(k) Savings Plan and payment in
installments, in accordance with

 

 

the terms of Crown’s Deferred Compensation Plan, of any compensation
which you have deferred under the Plan. Amounts paid under this paragraph shall
not be included in calculating any benefits under the Crown benefit plan.

 

4.             To pay you
Eighty-Nine Thousand Five Hundred Fifty-Six Dollars ($89,556) (less appropriate
payroll deductions) for thirty-two (32) days accrued but unused vacation, no
later than May 15, 2006. You acknowledge this pay is compensation for all
accrued vacation time that may be due to you now or in the future.

 

5.             To pay you one Lump
sum amount of Three Thousand Three Hundred Seventy-Five Dollars ($3,375) (less
appropriate payroll deductions) in lieu of your car allowance from April 22,
2006 through the Contract Term, no later than May 15, 2006. Amounts paid under
this paragraph shall not be included in calculating any benefits under the
Crown benefit plans.

 

6.             In accordance with
the terms of Paragraph 8(b) of the Employment Agreement, Crown will reimburse
you for your expenses, up to $35,000, of relocating from the Los Angeles area,
provided such expenses are incurred prior to October 22, 2006. Amounts paid
under this paragraph shall not be included in calculating any benefits under
the Crown benefit plans.

 

Provided you sign and return this Agreement, Crown agrees:

 

A.            To pay you a total
amount of severance pay equivalent to one (1) year base salary of Seven Hundred
Twenty Seven Thousand Six Hundred Fifty Dollars ($727,650.00) (less appropriate
payroll deductions) no later than May 15, 2006. Amounts paid under this
paragraph shall not be included in calculating any benefits under the Crown
benefit plans.

 

B.            The following
Restricted Stock Units granted you in 2003 and 2004 will be deemed vested on
May 29, 2006, and will be settled in accordance with the terms of the
Restricted Stock Unit Agreements dated as of May 29, 2003, as amended May 29,
2004 (the “2003 Grant”), and May 28, 2004 (the “2004 Grant”):

 

a)  28,667 (1/3rd
of 2003 Grant)

 

b)  14,000 (1/3rd
of the “Employment RSU” portion of the 2004 Grant)

 

C.            Crown will pay the
cost of COBRA coverage for medical, dental and vision plans from July 16, 2006
through July 15, 2007, provided that you make the necessary COBRA elections,
you continue to be legally eligible for coverage and are not covered under any
other employer’s medical plan. Amounts paid under this paragraph shall not be
included in calculating any benefits under the Crown benefit plans.

 

2

 

In return for the above payments and benefits, you agree:

 

(i)            To sign and return
a copy of this letter. You have a minimum of twenty- one (21) days from the
date you receive this letter in which to consult an attorney and consider
whether you want to accept and sign this Agreement. The Agreement will become
effective on the eighth (8th) day after you sign it and you have the right to
revoke the Agreement during the seven day period after you sign it. You agree
that any changes to this Agreement, whether material or immaterial, will not
restart the running of the 21- day period.

 

(ii)           You, on behalf of
yourself and your heirs, representatives and assigns, hereby release and
discharge Crown, its parent companies, their predecessors, subsidiaries and
divisions, and all of their respective current and former directors, officers,
shareholders, successors, agents, representatives and employees of each, from
any and all claims you ever had, now have, or may in the future assert
regarding any matter occurring prior to the Term Date, including, without
limitation, all claims, demands, damages costs and expenses regarding your
employment or termination of your employment with Crown (including any rights
and claims under the Age Discrimination in Employment Act and any other
employment discrimination claims), any contract claim (express or implied), any
tort, any claim for wages or benefits, any claim for breach of a fair
employment practice law or any breach of any other local, stale or federal law,
statute, ordinance, regulation or provision.

 

(iii)          It is understood
and agreed that this is a full and final release covering all known or unknown,
undisclosed and unanticipated losses, wrongs, injuries, debts, claims or
damages to you which may have arisen, or may arise from any act or omission
prior to the date of execution of this Agreement arising out of or related,
directly or indirectly, to your employment, or separation from employment with
Crown, as well as any alleged losses, wrongs, injuries, debts, claims or
damages now known or disclosed which have arisen, or may arise as a result of
any act or omission. Therefore, you hereby waive any and all rights or benefits
which you may now have, or in the future may have, under the terms of Section
1542 of the California Civil Code, which provides as follows:

 

“A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the release,
which, if known by him, must have materially affected his settlement with the
debtor.”

 

(iv)          Except as provided
herein, you acknowledge that you are owed no additional compensation under your
Employment Agreement or otherwise in connection with the termination of your
employment and that Crown will have no obligation to provide you at any time in
the future any payments or benefits, other than those provided for in this
Agreement and vested benefits under Crown’s benefit plans, pursuant to the
terms of the plans. You acknowledge and agree that the payments and benefits
you

 

3

 

receive under this Agreement supersede and replace any rights you may
have had or could have under any severance pay plan in existence now or in the
future at Crown.

 

(v)           You agree that any
confidential information which you acquired during your employment with Crown
or any predecessor shall not be disclosed, either directly or indirectly, to
any other person or used in a manner detrimental to the interests of Crown, its
parent companies, predecessors or other related entities. You further agree not
retain any business records or documents relating to any activity of Crown or
any of its parents, predecessor, subsidiary or affiliated companies, and to
return and not retain any property belonging to any of these entities.

 

(vi)          Neither you nor
anyone acting on your behalf shall publicize, disseminate or otherwise make
known the terms of this Agreement, directly or indirectly, to any other person,
except for those rendering professional financial or legal advice, to your
immediate family, or unless required to do so by court order or other
compulsory process of law.

 

(vii)         You agree to
cooperate with Crown in the defense of any legal matter, in the preparation and
production of evidence and in providing testimony in any judicial or
administrative proceeding pending now or in the future that involves
allegations arising during the period of your employment provided that Crown
will reimburse you pursuant to its business travel expense policy for your
reasonable business travel and out-of-pocket expenses incurred in providing
such cooperation and assistance.

 

(viii)        Paragraphs 5(a),
5(c), 7(b), 8(d) and 8(e) of your Employment Agreement and all other provisions
of that agreement which by their terms are intended to survive after the end of
the Term, will continue in effect for the periods indicated.

 

(ix)           The language of all
parts of this Agreement shall in all cases be construed as a whole, according
to its fair meaning, and not strictly for or against any party. This Agreement
shall be governed by and construed in accordance with the laws of the State of
California without regard to conflicts of law rules.

 

(x)            You recognize that
your complete and total release and discharge of Crown as provided herein is an
indispensable part of Crown’s agreement to pay you the amounts set forth above
and which you would otherwise not be entitled to, and it is understood that if
you hereafter institute any claim, arbitration, lawsuit, action, investigation,
grievance, complaint, charge, demand or other proceeding of the kind described
in the paragraphs above, or breach the additional obligations set forth in this
Agreement, Crown may discontinue or demand repayment of the compensation and
benefits paid under this Agreement.

 

(xi)           In the event that
you ever contest the enforceability of this Agreement, in whole or in part, the
entire amounts paid or payable by Crown under this Agreement shall

 

4

 

become immediately due and payable to Crown and any further such
payments shall cease. In the event you ever make such challenge, Crown will
have and may pursue its legal remedies for such prior payments.

 

(xii)          This Agreement does
not constitute an admission by Crown of any violation of any law, whether
federal, state, local or administrative statute, ordinance, regulation or
provision.

 

(xiii)         The terms and
provisions of this Agreement are severable and if any term or provision is held
to be invalid or unenforceable, it shall not affect the validity or
enforceability of any other term or provision.

 

(xiv)        This letter sets
forth the entire agreement between you and Crown and supersedes any and all
prior oral or written agreements or understandings between you and Crown. This
Agreement cannot be modified except by a further writing signed by you and an
authorized representative of Crown.

 

 

If the foregoing correctly and fully recites the substance of our
Agreement, please so signify by signing duplicate originals in the space
designated below.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Crown Media Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Stanford

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Charles Stanford

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Exec. VP

  	
   

  
						

 

I am fully aware of and understand this Agreement’s contents and I am
entering into this Agreement knowingly, voluntarily, willfully and free form
any coercion or duress.

 

ACCEPTED & AGREED:

 

 

	
  By:

  	
  /s/ Chris Moseley

  	
   

  	
  Date:

  	
  4/13/06

  
	
   

  	
  Chris MoseleyExhibit 10.5

 

AMENDMENT NO. 10 dated as of April 28, 2006 to the Credit,
Security, Guaranty and Pledge Agreement dated as of August 31, 2001 as amended
by Amendment 1 through 9 thereto, dated as of December 14, 2001, December 31,
2001, March 29, 2002, May 14, 2002, February 5, 2003, August 4,
2003, October 28, 2004, March 1, 2005 and March 21, 2006, among
Crown Media Holdings, Inc. (the “Borrower”), the Guarantors named therein,
the Lenders referred to therein and JPMorgan Chase Bank, N.A. (formerly known as
JPMorgan Chase Bank), as Administrative Agent and as Issuing Bank for the
Lenders (the “Agent”) (as the same may be further amended, supplemented or
otherwise modified, the “Credit Agreement”).

 

INTRODUCTORY
STATEMENT

 

WHEREAS, the Lenders have made available to the
Borrower a credit facility pursuant to the terms of the Credit Agreement;

 

WHEREAS, the Borrower has requested that the Total
Commitment be increased from $220,000,000 to $240,000,000 and that each of the
Lenders increase its existing Commitment by its Pro Rata Share of the $20,000,000
increase in the Total Commitment;

 

WHEREAS, the Borrower has requested (i) decreases
in the interest rates applicable to the Loans and in the rate of the Commitment
Fees, (ii) an extension of the Maturity Date from May 31, 2006 to May 31,
2007, and (iii) the deletion of certain covenants.

 

WHEREAS, the Borrower has agreed to pay a fee to the
Lenders for executing the Amendment No. 10.

 

NOW
THEREFORE, the parties hereto hereby agree as follows:

 

Section 1.                                            Defined
Terms. Capitalized terms used herein and not otherwise defined herein shall
have the meaning given them in the Credit Agreement.

 

Section 2.                                            Amendments
to the Credit Agreement. Subject to the satisfaction of the conditions
precedent set forth in Section 3 hereof, the Credit Agreement is hereby
amended as of the Effective Date (as hereinafter defined) as follows:

 

(A)                              The
definitions “Applicable Margin” and “Maturity Date” in Article 1 are
hereby amended in their entirety to read as follows:

 

“‘Applicable Margin’
shall mean (i) in the case of Alternative Base Rate Loans 0% per annum and
(ii) in the case of Eurodollar Loans 0.75% per annum.

 

‘Maturity Date’
shall mean May 31, 2007.”

 

 

(B)                                Section 2.7
of the Credit Agreement is hereby amended by decreasing the rate at which the
Commitment Fees provided therein are to be computed from 0.20% per annum to
0.15% per annum.

 

(C)                                The
Term Loan Commitment of each of the Lenders having been previously terminated,
the Revolving Credit Commitment of each of the Lenders is hereby increased to
the amount set forth in Schedule 1 hereto which amends and restates in its
entirety Schedule 1 to the Credit Agreement and as a result thereof, the
Revolving Credit Commitment of each of the Lenders is increased by its Pro Rata
Share of the $20,000,000 increase and the Total Commitment is increased from $220,000,000
to $240,000,000.

 

(D)                               Article 5
of the Credit Agreement is hereby amended by deleting in its entirety Section 5.1(d).

 

(E)                                 Article 6
of the Credit Agreement is hereby amended as follows:

 

(i)                                     Section 6.1(vi) is
hereby amended in its entirety to read as follows:

 

“(vi) Indebtedness
to HCC or an Affiliate of HCC which the obligee of such indebtedness
acknowledges to be subject to the subordination provisions of the Hallmark Cards
Subordination and Support Agreement”.

 

(ii)                                  Section 6.5
is amended by deleting the word “and” at the end of clause (v) and the
period at the end of clause (vi) and by adding the following:

 

“; and
(vii) issuance of common stock or payment of amounts pursuant to
Restricted Stock Unit Agreements of the Borrower in settlement of awards made
to employees pursuant to the terms of those Agreements.”

 

(iii)                               Section 6.15
is hereby amended in its entirety to read as follows:

 

“SECTION 6.15.
Production. Engage in production of Items of Product in any fiscal year
having an aggregate budgeted negative cost in excess of $5 million”.

 

(iv)                              The
following sections are deleted in their entirety: 6.9, 6.10, 6.21, 6.22, 6.23
and 6.24.

 

(F)                                 Article 7
of the Credit Agreement is hereby amended by deleting the following paragraphs:
(j), (o), (q), (r), (s) and (t).

 

(G)                                Section 13.3(l)
of the Credit Agreement as amended by adding the following at the end thereof:

 

“Notwithstanding any of the preceding provisions of this Section 13.3(l),
at any time prior to the payment of the Purchase Price, the Agent may make
a drawing under the Hallmark L/C in accordance with the terms thereof.”

 

2

 

Section 3.                                            Conditions
to Effectiveness. The effectiveness of this Amendment is subject to the
satisfaction in full of each of the conditions precedent set forth in this Section 3
(the date on which all such conditions have been satisfied being herein called
the “Effective Date”):

 

(A)                              the
Agent shall have received counterparts of this Amendment which, when taken
together, bear the signatures of the Borrower, each Guarantor, the Agent and
each Lender;

 

(B)                                the
representations and warranties in Section 4 hereof shall be true on the
Effective Date;

 

(C)                                the
Agent shall have received from the Borrower a fee of $120,000, i.e., 0.05%
of the Total Commitment after giving effect to the increase therein
contemplated by this Amendment No. 10, for payment to each of the Lenders
on a pro rata basis;

 

(D)                               the
Agent shall have received documentation satisfactory to it evidencing an
amendment to the Hallmark L/C (i) extending the expiration date thereof to
a date no earlier than June 10, 2007 and (ii) increasing the amount
thereof from $220,000,000 to $240,000,000; and

 

(E)                                 all
legal matters incident to this Amendment shall be satisfactory to Morgan, Lewis &
Bockius, counsel for the Agent.

 

Section 4.                                            Representations
and Warranties of the Credit Parties. Each Credit Party represents and
warrants that:

 

(A)                              after
giving effect to this Amendment, the representations and warranties contained
in the Credit Agreement are true and correct in all material respects on and as
of the date hereof as if such representations and warranties had been made on
and as of the date hereof (except to the extent that any such representations
and warranties specifically relate to an earlier date); and

 

(B)                                after
giving effect to this Amendment, no Event of Default or Default will have
occurred and be continuing on and as of the date hereof.

 

Section 5.                                            Further
Assurances. At any time and from time to time, upon the Agent’s request and
at the sole expense of the Credit Parties, each Credit Party will promptly and
duly execute and deliver any and all further instruments and documents and take
such further action as the Agent reasonably deems necessary to effect the
purposes of this Amendment. In furtherance of the foregoing, each of the
Lenders agree within a reasonable period of time to surrender its existing
Revolving Credit Note to the Agent in exchange for a new note evidencing its
share of the increased Total Commitment and the Borrower agrees to provide the
Agent with executed copies of such replacement notes as soon as practicable.

 

Section 6.                                            Fundamental
Documents. This Amendment is designated a Fundamental Document by the
Agent.

 

3

 

Section 7.                                            Full
Force and Effect. Except as expressly amended hereby, the Credit Agreement
and the other Fundamental Documents shall continue in full force and effect in
accordance with the provisions thereof on the date hereof. As used in the
Credit Agreement, the terms “Agreement”, “this Agreement”, “herein”,  “hereafter”, “hereto”, “hereof”, and words of
similar import, shall, unless the context otherwise requires, mean the Credit
Agreement as amended by this Amendment.

 

Section 8.                                            APPLICABLE
LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

 

Section 9.                                            Counterparts.
This Amendment may be executed in two or more counterparts, each of which
shall constitute an original, but all of which when taken together shall
constitute but one instrument.

 

Section 10.                                      Expenses.
The Borrower agrees to pay all out-of-pocket expenses incurred by the Agent in
connection with the preparation, execution and delivery of this Amendment,
including, but not limited to, the reasonable fees and disbursements of counsel
for the Agent.

 

Section 11.                                      Headings.
The headings of this Amendment are for the purposes of reference only and shall
not affect the construction of or be taken into consideration in interpreting
this Amendment.

 

IN WITNESS
WHEREOF, the parties hereby have caused this Amendment to be duly executed as
of the date first written above.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
  CROWN MEDIA
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William J. Aliber

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William J. Aliber

  
	
   

  	
   

  	
  Title:

  	
  EVP/CFO

  
					

 

4

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  CM INTERMEDIARY,
  LLC

  
	
   

  	
  CROWN MEDIA
  DISTRIBUTION, LLC

  
	
   

  	
  CROWN MEDIA
  UNITED STATES, LLC

  
	
   

  	
  CITI TEEVEE, LLC

  
	
   

  	
  DOONE CITY
  PICTURES, LLC

  
	
   

  	
  WAYZGOOSE
  CONCERT SERVICES, B.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William J. Aliber

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William J. Aliber

  
	
   

  	
   

  	
  Title:

  	
  EVP/CFO

  
					

 

5

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A. (f/k/a 

  JPMorgan Chase Bank and as successor by merger 

  to Bank One, N.A. (Main Office Chicago)), 

  individually and as Agent and Issuing Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christa L. Thomas

  
	
   

  	
   

  	
  Name: Christa L. Thomas

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N. A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Thomas R. Durham

  
	
   

  	
   

  	
  Name: Thomas R. Durham

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Doreen Barr

  
	
   

  	
   

  	
  Name: Doreen Barr

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Denise L. Alvarez

  
	
   

  	
   

  	
  Name: Denise L. Alvarez

  
	
   

  	
   

  	
  Title: Associate

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITICORP USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert Parr

  
	
   

  	
   

  	
  Name: Robert Parr

  
	
   

  	
   

  	
  Title: Managing Director

  

 

6

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Frederick W. Laird

  
	
   

  	
   

  	
  Name: Frederick W. Laird

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ming K. Chu

  
	
   

  	
   

  	
  Name: Ming K. Chu

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYAL BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Mark Narbey

  
	
   

  	
   

  	
  Name: Mark Narbey

  
	
   

  	
   

  	
  Title: Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ABN AMRO BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Pradeep K. Bhatia

  
	
   

  	
   

  	
  Name: Pradeep K. Bhatia

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Michael McIntyre

  
	
   

  	
   

  	
  Name: Michael McIntyre

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WESTLB AG, NEW YORK BRANCH (f/k/a 

  Westdeutsche Landesbank Girozentrale)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

7

 

Accepted and Agreed to by
the undersigned as the Beneficiary of Section 13.3(l) of the Credit
Agreement and as the Account Party on whose behalf the Hallmark L/C has been
issued:

HALLMARK CARDS, INCORPORATED

 

 

	
  By

  	
  /s/ E. Bruce McKinney

  	
   

  	
   

  
	
   

  	
  Name: E. Bruce McKinney

  	
   

  
	
   

  	
  Title: Treasurer

  	
   

  
	
   

  	
  Date:
  May 5, 2006

  	
   

  

 

8

 

SCHEDULE 1

 

	
  Lender

  	
   

  	
  Revolving Credit

  Commitment

  	
   

  	
  Total

  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  JPMorgan Chase Bank

  	
   

  	
  41,250,000

  	
   

  	
  41,250,000

  	
   

  	
  17.1875

  	
  %

  
	
  Bank of America, N.A.

  	
   

  	
  30,000,000

  	
   

  	
  30,000,000

  	
   

  	
  12.5000

  	
  %

  
	
  Credit Suisse First Boston

  	
   

  	
  30,000,000

  	
   

  	
  30,000,000

  	
   

  	
  12.5000

  	
  %

  
	
  Citicorp USA, Inc.

  	
   

  	
  30,000,000

  	
   

  	
  30,000,000

  	
   

  	
  12.5000

  	
  %

  
	
  Deutsche Bank AG New York Branch

  	
   

  	
  30,000,000

  	
   

  	
  30,000,000

  	
   

  	
  12.5000

  	
  %

  
	
  Royal Bank of Canada

  	
   

  	
  30,000,000

  	
   

  	
  30,000,000

  	
   

  	
  12.5000

  	
  %

  
	
  WestLB AG, New York Branch

  	
   

  	
  26,250,000

  	
   

  	
  26,250,000

  	
   

  	
  10.9375

  	
  %

  
	
  ABN Amro

  	
   

  	
  22,500,000

  	
   

  	
  22,500,000

  	
   

  	
  9.3750

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  240,000,000

  	
   

  	
  $

  	
  240,000,000

  	
   

  	
  100.00

  	
  %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]