Document:

Exhibit 10.84

 

May 24,
2004

 

Chris Moseley

5224 Los Encantos Way

Los Angeles, CA 90027

 

Dear Ms. Moseley: 

 

This will confirm that we have agreed to
amend your Employment Agreement with Crown Media Holdings, Inc. dated June 20,
2003 (the “Agreement”), as follows: 

 

1. Effective April 20, 2004, your title
will be changed from “Executive Vice President — Worldwide Marketing and Brand Strategy”
to “Executive Vice President – Chief
Marketing Officer” of Crown Media Holdings, Inc.

 

2. As a result of this change in title,
Paragraph 1(b) of the Agreement is amended as follows: 

 

“(b)                           Employee’s
specific duties and authority will be as follows: 

 

(i) Employee’s primary duties shall be to oversee the development
and implementation of the overall brand and marketing strategy for the Hallmark
Channel in the United States and any other networks owned and distributed by
Employer in the United States (collectively, the “Networks”). In this capacity,
the senior marketing personnel at these domestic Networks will report directly
and in a solid line manner to the Employee. Employee will also be kept informed
about marketing activities of any versions of the Hallmark Channel distributed
outside the United States 

 

(ii) Employee shall be responsible for brand management, building
the Hallmark Channel brand and enhancing the company’s brand assimilation,
structure and philosophy and shall be the primary

 

 

liaison
with Hallmark Cards Inc. for the Hallmark Channel licensee brand strategy. 

 

Except
as amended herein, the terms and conditions of the Agreement will remain in
full force and effect. Please confirm your agreement to the foregoing by
countersigning a copy of this letter where provided below. 

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
  Crown Media Holdings, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  David Evans

  	
   

  
	
   

  	
   

  	
  David Evans

  
	
   

  	
   

  	
  President and CEO

  
					

 

Accepted and Agreed to 

 

 

	
  /s/ Chris Moseley

  	
   

  
	
  Chris
  MoseleyExhibit
10.86

 

EMPLOYMENT
AGREEMENT

 

Agreement, made as of January 1, 2004,
between Crown Media Holdings, Inc., a Delaware corporation with offices at
12700 Ventura Boulevard, Los Angeles, California 91604 or its permits assigns (“Employer”)
and William Aliber (“Employee”). 

 

WITNESSETH:

 

WHEREAS, Employer
desires to continue to retain the services 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
January 1, 2004, Employer hereby employs Employee and Employee hereby
agrees to continue to serve as Executive Vice President and Chief Financial
Officer of Crown Media Holdings, Inc., reporting directly to the Chief
Executive Officer of Employer. 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.

 

1

 

2.             Term
of Employment. The term of Employee’s employment under this Agreement (“Term”)
with Employer shall commence as of January 1, 2004 and shall end on December 31,
2006, 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 $495,500
per year during the each year of the Term. Such salary shall be paid
biweekly, in arrears. 

 

(b)           Bonuses.
Following the end of each calendar year during the Term, Employee will be paid
such bonus as Employer in its discretion determines. The amount of such bonuses
will be determined by Employer based on achievement of the financial goals set
out in Schedule A attached hereto. The bonus will be payable on the date
designated by Employer. 

 

(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 (including business class commercial air travel, or if
business class air travel is not available, on the next best available
commercial basis), 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. 

 

(e)           Fringe
Benefits. During the Term, Employee shall be entitled to receive group
medical, dental, life and disability insurance as per Employer policy and any
other fringe benefits, on terms that are or may become available generally to comparable
employees of Employer. Employee will also be paid an automobile allowance of $975 per month. 

 

4.             Place
of Employment. During the Term, Employee shall be based in Kansas City, but
may be required to perform Employee’s duties at the offices of Employer in Los
Angeles, Denver and New York or such other location as may be mutually
agreeable to Employer and 

 

2

 

Employee. 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, 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 

 

3

 

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; 

 

(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
thirty (30) business days 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 

 

4

 

shall not be counted; 

 

(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 prior to the expiration of the
Term in addition to pursuant to Paragraph 8(a) above by providing Employee
with not less than thirty (30) days’ advance notice in writing. In the event of
a termination pursuant to this Paragraph 8(b): (i) the Employer shall pay
to the Employee, commencing thirty (30) days after such notice of termination,
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. 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. 

 

5

 

(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. 

 

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 California 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. 

 

6

 

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

 

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 Evans

  	
   

  
	
   

  	
  Title 

  	
  PRESIDENT & CEO

  	
   

  
					

 

 

	
   

  	
  WILLIAM ALIBER

  
	
   

  	
  /s/ William Aliber

  	
   

  

 

7

 

Schedule A – Bonus

 

Employee’s
bonus will be divided into two categories – a discretionary bonus
and a performance based bonus. The benchmark for the total bonus amount will be
20% of Employee’s then-current salary, as set out in Paragraph 3(a) if the
Agreement. 

 

30%
of the bonus will be discretionary, i.e., whether this portion of the bonus is
awarded and the amount of the bonus will be in the sole discretion of Employer
and the Compensation Committee of the Board of Directors of Crown Media
Holdings, Inc. The maximum amount payable under this discretionary portion
of the bonus would be 6% of current salary. 

 

The
remaining 70% of the bonus will be awarded based on Crown Media Holdings, Inc.
achievement of “Revenue” and “EBITDA” “Targets” for the year for which the
bonus is paid – each will account for half of this portion of
the bonus. The benchmark for each of the Revenue and EBITDA portions is 7% of
salary, although a greater amount may be paid if Revenue and/or EBITDA Targets
are exceeded. The formula for payment of this bonus based on percentage
achievement of Revenue and EBITDA Targets is as follows:

 

	
  Percentage
  of Revenue or EBITDA Target  Achieved

  	
   

  	
  Percentage of Salary Payable as Bonus

  
	
   

  	
   

  	
   

  
	
  Below 85%

  	
   

  	
  No bonus

  
	
   

  	
   

  	
   

  
	
  85% or more but
  less than 90%

  	
   

  	
  5.6%

  
	
   

  	
   

  	
   

  
	
  90% or more, but less than 95%

  	
   

  	
  6.3%

  
	
   

  	
   

  	
   

  
	
  95% or more, but less than 98%

  	
   

  	
  6.65%

  
	
   

  	
   

  	
   

  
	
  98% or more, but less than 102%

  	
   

  	
  7%

  
	
   

  	
   

  	
   

  
	
  102% or more, but less than 105%

  	
   

  	
  7.77%

  
	
   

  	
   

  	
   

  
	
  105% or more, but less than 110%

  	
   

  	
  8.4%

  
	
   

  	
   

  	
   

  
	
  110% or more

  	
   

  	
  10.5%

  

 

By way of example, if 110% of the Revenue Target is achieved for the
year and only 90% of the EBITDA Target is achieved, the total performance based
portion of the bonus would equal

 

8

 

16.8% of salary (i.e. 10.5% for exceeding the Revenue Target and 6.3%
for substantial achievement of the EBITDA Target.) 

 

“Revenue” for this purpose will be the sum of gross subscriber revenues
and gross advertising sales revenues (less agency commissions) which are
realized for accounting purposes by Employer in each fiscal year. “EBITDA” will
have the meaning designated by Employer’s outside auditors, consistent with GAAP.
The “targets” for each will be those designated in the Employer’s financial “Plan”
for each fiscal year, as determined by the CEO of Employer and Board of
Directors of Crown Media Holdings, Inc. Bonus payments shall be made on
the dates designated by Employer for payment of bonuses to Crown employees in
general. 

 

9

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