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Prepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.85    
  

    May 24, 2000 

 
 

TERMINATION AGREEMENT AND
  GENERAL RELEASE OF ALL CLAIMS    
  

    This Termination Agreement and General Release of All Claims ("Agreement") summarizes our mutual understanding regarding termination of your employment with
The Harvey Entertainment Company ("Harvey" or the "Company") effective May 24, 2000 (the "Termination Date"). 

    1.  Termination.  On the Termination Date, your employment agreement with Harvey dated as of
April 26, 1999, (the "Employment Agreement") and your employment with the Company will terminate by mutual agreement. 

    2.  Vacation.  On the Termination Date, Harvey will pay you any accrued vacation pay in accordance with
the Company's Vacation Policy Procedure. 

    3.  Stock Options and Stock Warrants.  

    A.  Subject
to the terms of the applicable Harvey Stock Option Plan, any stock options previously granted to you that have not vested will be canceled as the
Termination Date. Any vested and unexercised stock options will subsequently expire per the terms of the Harvey Stock Option Plan. Please refer to the provision of your stock option agreement for more
details. 

    B.  Subject
to the terms of the Warrant Agreement dated as of April 5, 1999, any Stock Warrants previously granted to you that have not vested will be cancelled
as of the Termination Date. Any vested and unexercised Stock Warrants will subsequently expire per the terms of the Warrant Agreement. Please refer to the provision of the agreement for more details. 

    4.  Expenses.  Unreimbursed business expenses incurred by you prior to the date of this Agreement, will
be paid to you after approval in accordance with established procedures. You will not be authorized to incur any further business expenses after the date of this agreement. In addition, you will
return to Glenn Weisberger, Senior Vice President of Harvey prior to the close of business on the Termination Date, any computer(s), cell phone and other Company property previously issued to you. 

    5.  Benefits.  You will not be entitled after the last day of the month in which you terminate to receive
any benefits accruing to employees of Harvey, except as required by law. After the Termination Date, you will be receiving information, under separate cover, regarding your rights under COBRA to a
temporary extension of your group health and dental coverage. All benefits to which you may be entitled as of the Termination Date under the Company benefit plans (e.g., Retirement Account Plan, etc.)
will be made available to you in accordance with the terms of such plans. 

    6.  Future Cooperation.  You agree to reasonably cooperate with the Company and its legal advisors in
connection with any business matters in which you were involved or any existing or potential claims, investigations, administrative proceedings, lawsuits and other legal and business matters which
arose during your employment, as reasonably requested by the Company. 

    7.  General Release.  In consideration for execution of this Agreement and for the parties releasing each
other from the remaining benefits and obligations of the Employment Agreement, except for the rights set forth in this Agreement and subject to each party performing its obligations imposed by this
Agreement (for example, but without limitation those in Paragraphs 2,3, and 4 above), each party irrevocably and unconditionally release and forever discharge the other party, including but not
limited to (as applicable) its parents, subsidiaries and affiliates and each of their respective stockholders, predecessors, successors, assigns, agents, directors, officers, employees and
representatives ("Released Parties"), from any and all, known or unknown, claims, liabilities, losses, agreements, rights, causes of action and expenses of any nature whatsoever, arising during the
period of your employment with the Company relating to your employment with the Company, or concerning the termination of such employment which either party may now or at any time hereafter have
against any of the 

 

aforementioned entities or persons. This includes, but is not limited to, any claims or rights each party may have under any Federal, State or local laws or regulations affecting the terms and
conditions of your employment or prohibiting employment discrimination on basis of race, color, national origin, religion, sex, age, sexual orientation, ancestry, medical condition, marital status,
physical or mental disability (including but not limited to, those covered by the California Fair Employment and Housing Act, the New York Human Rights Act N.Y. Exec. Code Section 290,  et seq., the
Civil Rights Act of 1964 (Title VII), as amended, 42 U.S.C. Section 2000e et seq.,
the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621 et seq., the American With Disabilities Act, as amended, 42 U.S.C.
Section 12101 et seq., the California Fair Employment and Housing Act, Cal. Govt. Code Section 12900 et
seq., the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. Section 1001, et
seq.,the Family and Medical Leave Act of 1993, 29 U.S.C. Section 2601 et seq., and the California Family Rights Act, as
amended, Cal. Govt. Code Section 12945.1 et seq.), provided, however that nothing in this Paragraph shall release the company from any of
its obligations to you, or release or waive any of your rights, under California Labor Code Section 2802. If, notwithstanding this Agreement, a party brings an action against the other party,
which the defending party contends is based on any matter released by this Agreement, and if the defending party Company is adjudged to be the prevailing party in such action, then the defending party
shall be entitled to recover from the party filing such action an award of its reasonable attorney's fees and costs of suit incurred in defending itself against such claim(s) in such action. 

    You
acknowledge awareness of and hereby waive any rights and benefits afforded by California Civil Code Section 1542, which provides: 

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
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

    Notwithstanding
the possibility that you may hereafter discover facts different from or in addition to those you now know or believe to be true, you hereby expressly waive all rights
under such Civil Code Section and any other statute or legal principle of similar effect except for the matters set forth in this Agreement. You represent that you are the sole owner of all rights,
interests and claims released herein. 

    8.  Non-admission of Liability.  You agree not to assert that this Agreement is an admission of guilt or
wrongdoing on the part of the Released Parties because the Released Parties do not believe or admit that any of them has done anything wrong. In addition, the Company agrees not to assert that this
Agreement is an admission of guilt or wrongdoing on your part because you do not believe or admit that you have done anything wrong. 

    9.  General Confidentiality.  You represent and agree that you will keep the terms of this Agreement
completely confidential, and that you will not hereafter disclose any information concerning the terms of this Agreement to anyone, except you legal, tax and/or financial advisor who shall be
similarly bound. This prohibition specifically includes, but by no means is limited to, any past, present or prospective employee or applicant for employment of the Company (including any parents,
subsidiaries and affiliated of the the Company), or to any representative of any media concern. Disclosure of the terms of this Agreement shall constitute a material breach of this Agreement. 

    By
entering into this Agreement, you also confirm the commitment made by you in the Employment Agreement that all confidential or proprietary information, knowledge, and data of
Harvey which you have acquired, learned, obtained or developed during your employment with Harvey will not, after the termination of your employment, directly or indirectly be used, communicated or
divulged by you for your own benefit or for the benefit of another. You further confirm the commitment made by you in the Employment Agreement with respect to the secret, confidential or 

2

 

proprietary information, knowledge, and data of affiliated, customers, contractor and others with whom Harvey has a business relationship. 

    10.  Non-Solicitation.  As set forth in Paragraph 1(b) of the Employment Agreement, you shall not,
directly or indirectly (i) induce any customer or supplier of Company or Company's subsidiaries or affiliates to terminate its relationship with Company or Company's subsidiaries or affiliates
(as the case may be), or (ii) solicit or induce any of Company's employees to terminate their employment with Company, or hire or cause any of the then current employees of Company to be hired
by any other company (except companies controlled by Company). 

    11.  Breach of Agreement.  In the event that you breach any of the terms of this Agreement, Company shall
be entitled to any or all of the following: (i) recovery of any payments previously made to you pursuant to this Agreement; (ii) the right to obtain an injunction, without the posting of
any bond or other security, enjoining or restraining you from any violation of this Agreement, and you hereby consent to the issuance of such an injunction; and (iii) payment of all costs and
expenses, including without limitation reasonable attorneys' fees and costs, incurred by Company as a result of its efforts to enforce the terms and conditions of this Agreement. 

    12.  Resignation.  By your signature below, effective on the Termination Date, you hereby resign as an
officer, director, trustee, agent, representative and from acting in any other capacity on behalf of Harvey and all of its subsidiaries, divisions and affiliates and to agree to execute any required
documentation necessary to effect such resignations. 

    13.  Review and Revocation.  You understand that you have been given a period of ten (10) days to review
and consider this Agreement before signing it. You further understand that you may use as much of this ten (10) day period as you wish prior to signing. You are strongly encouraged to consult with an
attorney before signing this Agreement. However, you understand that whether or not to do so is your decision. 

    You
may revoke this Agreement within seven days of your signing it. Revocation can be made by delivering a written notice of revocation to Glenn Weisberger, Senior Vice President &
General Counsel. For this revocation to be effective, written notice must be received by Glenn Weisberger, 11835 W. Olympic Blvd., Ste. 550, Los Angeles, CA 90064 no later than 5:00pm on the seventh
day after you sign this Agreement. If you revoke this Agreement it shall not be effective or enforceable. 

    14.  Tax Treatment.  The Company may withhold from any amounts payable under this Agreement such Federal,
state or local taxes as shall be required to be withheld pursuant to any applicable laws or regulation. 

    15.  Representation & Warranties.  You represent and warrant that: (i) you have not entered into
any third party agreements in Company's name or on Company's behalf of which Company has not been previously advised, other than in accordance with Company's policies and procedures:
(ii) during the period of your employment with Company you have not engaged in any conduct or activity which constitutes a violation of law, willful misconduct, or a material violation of
Company's policies; and (iii) you have not transferred to any person or entity any rights, causes of action of claims release in this Agreement. 

    16.  Entire Agreement.  This is the entire agreement between you and the Company; provided, however, that
notwithstanding any provision to the contrary contained herein, the provisions of Paragraphs 8 (Nondisclosure of Confidential Information), 10 (Ownership of Properties) and 14 (Indemnification) of the
Employment Agreement will continue to apply under this Agreement. The Company has made no promises to you, oral or written, express or implied, other than those reflected in this Agreement, which
comprises the full and complete understanding of the parties. This Agreement may not be changed or modified in any manner except in writing, signed both by a duly authorized representative of Company
and by you. 

3

 

    17.  Binding Upon Successor And Assigns.  This Agreement shall be binding upon the parties hereto and
upon their heirs, administrators, representatives, executors, successors and assigns and shall inure to the benefit of said parties and each of them and to their heirs, administrators,
representatives, executors, successors and assigns. 

    18.  Arbitration.  You agree to use final, non-appealable and binding arbitration to resolve
any dispute you may have with the Company or any other entity or person released herein. Such arbitration shall be conducted pursuant to the Employment Dispute Resolution Rules of the American
Arbitration
Association. This arbitration agreement applies to all matters relating to this Agreement, your employment with and/or termination from Harvey, including disputes about the validity, interpretation,
or effect of this Agreement, or alleged violations of it, and further including all claims arising out of any alleged discrimination, harassment, or retaliation including, but not limited to those
covered by the California Fair Employment and House Act, the New York Human Rights Act, N.Y. Exec. Code Section 290, et seq., the Civil Rights
Act of 1964 (Title VII) as amended, 42 U.S.C. Section 2000e et seq., the Age Discrimination in Employment Act, as amended 29 U.S.C.
Section 621 et seq., the Americans With Disabilities Act, as amended 42 U.S.C. Section 12010 et
seq., the California Fair Employment and Housing Act, Cal. Govt. Code Section 12900 et seq., the Employee Retirement
Income Security Act of 1974, as amended, 29 U.S.C. Section 1001, et seq., the Family and Medical Leave Act of 1993, 29 U.S.C. Section 2601  et seq., and the California Family Rights Act, as amended, Cal. Govt. Code Section 12945.1 et
seq. In the event a dispute arises between the parties, an arbitration must be commenced within sixty (60) days after one party notifies the other party in writing of
the existence and nature of the dispute. 

    19.  Severability.  You and the Company both agree that if any term of this Agreement other than the
release found in Paragraph 8 is invalid or unenforceable that term will be inoperative, but the remaining terms will not be affected and will be construed and enforced as if this Agreement did
not contain the invalid term. 

    20.  Construction and Interpretation.  Paragraph headings are for convenience only and are not a part of
this Agreement. The use of the neuter form herein shall be deemed to include the masculine and feminine forms, as the context may require. The terms "and", "or" and "and/or" shall be construed
conjunctively, disjunctively, or both, as necessary to give the provision of the Agreement their broadest and most inclusive scope. 

    The
parties, and each of them, acknowledge, warrant and represent that the parties and their counsel have each participated in the drafting of this agreement and of each provision
hereof and, accordingly, in construing and interpreting this Agreement shall be construed as a whole according to its fair meaning and that no provision of this Agreement shall be construed or
interpreted against any party because such provision, or the Agreement as a whole, was purportedly prepared, drafted or requested by such party. 

    21.  Acceptance.  Please confirm you express agreement to the terms and conditions as set forth above by
signing the enclosed copy of this Agreement and returning it to my office no later than 5:00p.m. on May 24, 2000. The Company's offer as set forth above will expire at such time. 

	 	 	Sincerely,
	

 	
 	

The Harvey Entertainment Company
	

 	
 	

/s/ Glenn R. Weisberger
	

 	
 	

Glenn R. Weisberger

Sr. Vice President & General Counsel.

4

 

I ACKNOWLEDGE THAT I HAVE READ THIS AGREEMENT, THAT I UNDERSTAND IT, AND THAT I AM VOLUNTARILY ENTERING INTO IT. AS THIS AGREEMENT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN
CLAIMS, I HAVE READ THIS AGREEMENT VERY CAREFULLY. 

	AGREED TO:	 	/s/ Ronald B Cushey
	 	 
	

DATE:	
 	

5/24/00
	
 	

 

5

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EXHIBIT 10.85

TERMINATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMSPrepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.86    
  

AMENDED AND RESTATED EMPLOYMENT AGREEMENT  

    This
AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Amended Employment Agreement"), effective as of January 1, 2001, amends that certain Employment Agreement, dated as of
September, 22, 1999, as amended (the "Original Agreement"), by and between The Harvey Entertainment Company (the "Company") and Glenn Weisberger ("Employee"). Capitalized terms not expressly defined
therein shall have the meanings specified in the Original Agreement. 

    WHEREAS,
the Company desires to continue the services of Employee on a nonexclusive basis, and Employee desires to continue in the employ of the Company upon the terms and conditions
set forth below. 

    WHEREAS,
the Company desires to reduce the term of the Original Agreement from its current end date of October 4, 2002 to June 30, 2001 and the Company further desires
to reduce the remaining salary due to Employee under the Original Agreement as of the Effective Date from approximately $325,000 to $90,000, and the Employee is willing to accept such reductions on
the terms and conditions set forth herein. 

    NOW,
THEREFORE, the Company and Employee agree as follows: 

    1.  POSITION AND DUTIES: REPORTING

    (a) The
Company agrees to continue the employment of Employee, and Employee accepts such employment, on a non-exclusive basis, as Executive Vice President
and General Counsel of the Company during the Term hereof as specified in Paragraph 6 below, with powers and duties consistent with such position. Employee shall perform such duties and
responsibilities incidental to his employment as may from time to time be requested reasonably by the Company, consistent with Employee's position, stature and experience, and shall faithfully observe
the Company's policies and procedures consistent with the provisions hereof. The provisions of this Paragraph 1(a) shall be subject to the terms of Paragraph 6 hereof. Employee shall
report to the Chairman or CEO of the Company. 

    (b) Employee
shall devote his time to performing the services described in Paragraph 1(a) as follows: (i) an average of three (3) days per week for
the first two (2) months following the Effective Date, (ii) an average of two (2) days per week for the next two (2) months, and (iii) one (1) day per week
for the remaining two (2) months of the Term. In the event the Company requires Employee's services for more than the number of days per week specified above, and to the extent Employee is able
to provide such additional days of service, requested by the Company, it being understood that any additional time so devoted shall serve as a credit against Employee's future service obligations
hereunder. Similarly, if Employee is unable to provide, the number of days of service specified above, such time not provided to the Company by Employee shall be added to Employee's future service
obligations hereunder. Employee shall be available reasonably to provide the services described above, but shall have no obligation to provide such services at the offices of the Company, unless
Employee's presence is reasonably required for business reasons in connection with specific matters. 

    (c) Employee
shall resign as Secretary of the Company effective as of the Effective Date. 

    (d) During
the Term, and the one-year period following termination of his employment hereunder, Employee shall not, directly or indirectly,
(i) induce any customer or supplier of the Company or the Company's subsidiaries or affiliates to terminate its relationship with the Company or the Company's subsidiaries or affiliates, as the
case may be, or (ii) solicit or induce any of the Company's employees to terminate his or her employment with the Company, or hire or cause any of the then-current employees of the
Company to be hired by any other company (except companies controlled by the Company), except Michael Reardon. 

    2.  COMPENSATION. The Company shall pay to Employee a monthly salary of $15,000, less required withholding. Payments
shall be made according to the Company's normal payroll payments, one half of the amount due on the last business day before the 15th of each month and the other one half due on the last business day
of each month. Employee shall not be eligible for any incentive compensation, vacation accruals or other benefits customarily available to employees of the Company, except as provided herein. Employee
shall have no duty or obligation to mitigate any of the salary due under this Paragraph 2, and the Company shall have no right of offset of such salary, in the event any other employer hires
Employee during the Term. Employee shall have no obligation to account to the Company for any earnings he receives from any other employer. 

    3.  WARRANTS AND STOCK OPTIONS. 

    (a) Warrants
to Purchase Common Stock. All Warrants held by Employee on the Effective Date shall become fully vested on the Effective Date. 

    (b) Stock
Options. The exercise price of all Options held by Employee as of the Effective Date shall be reduced to $0.80 per share. All such Options shall become fully
vested on the Effective Date and shall be exercisable for one year after the date Employee ceases providing services hereunder. In no event shall any Options be exercisable after June 30, 2002. 

    4.  EXPENSES. The Company shall reimburse or pay Employee for all usual, reasonable and necessary expenses paid or
incurred by Employee in the performance of his duties hereunder, consistent with the Company's expense reimbursement policies, and subject to receipt by the Company of appropriate documentary proof of
all expenditures for which reimbursement is sought. 

    5.  EMPLOYEE BENEFITS. Employee shall be entitled to no benefits other than health insurance coverage. 

    (a) The
Company will pay for, and provide to, Employee and any of his dependents, health insurance coverage which is the same or substantially similar to the health
insurance coverage which the Company made available to its employees immediately prior to the Effective Date, until the earlier of: (i) October 31, 2002, or (ii) such time that
Employee becomes eligible for health insurance coverage by a new employer. If Employee's health insurance coverage is terminated pursuant to clause (i) above, Employee will be entitled to COBRA
benefits commencing November 1, 2002. 

    (b) Employee's
interests in the Company's 401k Plan shall become fully vested on the Effective Date. As of the Effective Date, Employee shall no longer be entitled to
participate in the Company's 401k Plan. 

    (c) The
Company promptly will calculate and pay all accrued vacation (calculated in accordance with the requirements of California law) due to Employee through the
Effective Date. As of the Effective Date, Employee will no longer accrue vacation. 

    6.  TERM. The period of Employee's employment with the Company hereunder (the "Term") shall commence on the Effective
Date and shall terminate upon the first to occur of the following events: (i) June 30, 2001, (ii) such time that Employee accepts full-time employment with a new
employer and is no longer able to provide services to the Company in accordance with this Agreement, (iii) the death of Employee, or (iv) the discharge of Employee for Cause. "Cause"
shall mean, and be limited to, (x) acts of deliberate dishonesty constituting either the commission of a felony or the misappropriation of substantial corporate assets for personal benefit,
(y) willful failure to observe or follow reasonable and explicit instructions or directives of the Company, or (z) willful malfeasance or willful failure to act involving material
nonfeasance, if in either case such malfeasance or nonfeasance would have a material adverse effect on the Company. In the event of discharge of Employee for Cause, the Company agrees to give written
notice to Employee specifying the claimed Cause and, provided such Cause is curable, to permit Employee to correct the claimed Cause as soon as practical thereafter, but
no later than seven (7) business days after receipt of the applicable notice; provided, however, in no event shall Employee have the right to cure if Cause is based on clause (x) of this 

Paragraph 6. Upon the termination of Employee's employment pursuant to this Paragraph 6, the Company shall have no further liability or obligation of any kind or nature whatsoever to
Employee under this Amended Employment Agreement, except that any unpaid salary accrued or earned by Employee to the date of termination and any expenses for which Employee has become entitled to
reimbursement under Paragraph 4 prior to the date of termination, shall be paid by the Company to Employee or his estate. 

    7.  NONDISCLOSURE OF CONFIDENTIAL INFORMATION. 

    (a) "Confidential
Information" shall include, but not be limited to, all of the Company's and its subsidiaries' and affiliates' performance, sales, financial, pricing,
cost, manufacturing, contractual and marketing information, ideas, knowledge and data, and all processes, products, formulae, designs, practices, techniques, trade secrets, research,
know-how, merchandising agreements, licensing agreements, distribution agreements, customer lists, technical requirements of customers and identity and purchasing terms of suppliers. 

    (b) Employee
acknowledges that the Company and its subsidiaries and affiliates have exclusive rights to all of their respective Confidential Information and agrees to
assign all rights he might otherwise possess in any Confidential Information to the Company. Except as required in the performance of his duties hereunder, Employee shall not, at any time during or
after the term of his employment, directly or indirectly, use, communicate, disclose or disseminate, lecture upon/publish articles or otherwise put in the public domain, any Confidential Information
or any other information of a secret, proprietary, confidential or generally undisclosed nature relating to the Company or its subsidiaries or affiliates or their products, operations and activities
until such Confidential Information is disclosed by law or legal process or becomes available generally to the public by independent discovery, development or publication or generally known within the
industry other than as a result of Employees breach hereof. 

    (c) All
documents, records, notebooks, notes, memoranda, computer records and other repositories of or containing Confidential Information or any other information of a
secret, proprietary, confidential or generally undisclosed nature relating to Company or its subsidiaries or affiliates or to its products, operations and activities made or complied by Employee at
any time or made available to Employee prior to, or during, the Term by the Company, including any and all copies thereof shall be the property of Company, shall be held by Employee in trust solely
for the benefit of the Company, and shall be delivered to the Company by Employee upon the termination of Employee's employment or at any other time upon the request of the Company. 

    8.  RIGHT TO INJUNCTION/REMEDIES. Employee acknowledges that the Company's remedies at law for a breach by him of the
provisions of Paragraphs 1 and 7 hereof will be inadequate. Accordingly, in
the event of the breach or threatened breach by Employee of any such provisions, the Company shall be entitled to seek injunctive relief in addition to any other remedies it may have. In the event of
any breach by the Company of this Amended Employment Agreement, Employee shall be limited to his remedy at law for damages, if any, and shall not have the right to terminate or rescind this Amended
Employment Agreement or in any way to enjoin or restrain the production, distribution, advertising or other exploitation of any motion pictures or other productions, it being specifically agreed that
all rights granted and agreed to be granted to the Company under this Amended Employment Agreement shall be irrevocably vested in the Company and shall not be subject to rescission for any cause. 

    9.  ASSIGNMENT. Employee may not assign, transfer or convey this Amended Employment Agreement, or any interest herein.
This Amended Employment Agreement and all of the Company's rights and obligations hereunder may be assigned or transferred by it, in whole, but not in part, to and shall be binding upon and inure to
the benefit of any successor of the Company, but any such assignment shall not relieve the Company of any of its obligations. The term successors shall mean only any corporation or other business
entity which by merger, consolidation, purchase of assets or otherwise succeeds to, or otherwise acquires, all or substantially all of the assets of the Company. 

    10. ARBITRATION. 

    (a) Without
limiting the Company's right to seek injunctive relief as described in Paragraph 8, in the event of a disagreement or dispute between the Company and
Employee related to this Amended Employment Agreement, the matter will be finally settled in Los Angeles, California, by arbitration by single arbitrator (unless the parties cannot agree on such
arbitrator in which case each party will select an arbitrator and the two arbitrators so selected shall select the third arbitrator) in a proceeding conducted under the rules of the American
Arbitration Association or any similar successor body, the arbitrator also apportioning the costs of the arbitration. The decision of the arbitrator(s) in writing shall be final and binding upon the
parties and will not be subject to appeal. If either party fails to abide by such decision, the other party may seek the order of any federal or state court having jurisdiction thereof which shall
enter judgment on the decision of the arbitrator(s), and the party so failing to abide shall be responsible for the payment of the expenses of the court proceeding and all resulting enforcement
expenses, including actual attorneys' fees. The parties agree to use their best efforts to complete any arbitration hereunder expeditiously. 

    (b) The
prevailing party in any arbitration shall be entitled to be reimbursed for attorneys fees and costs in connection with the pursuit of such arbitration, subject
to the following limitation: such reimbursement shall not exceed the total attorneys fees and costs incurred by whichever of the two parties to such arbitration has the lesser aggregate attorneys fees
and costs. By way of example, if Employee brings an arbitration against the Company and the Company prevails in such arbitration, (thus entitling the Company to reimbursement of attorney's fees and
costs), and if Employee's legal fees and costs amount to $50,000 and the Company's legal fees and costs amount to $85,000, the Company's recovery of legal fees and costs against Employee in such
instance shall be limited to $50,000. 

    11. INDEMNITY. Employee shall be entitled to the benefit of indemnification to the fullest extent permitted by
applicable law at the time of assertion of any liability against Employee in connection with his employment hereunder. 

    12. MUTUAL GENERAL RELEASES AND WAIVER OF CIVIL CODE SECTION 1542. Employee, on the one hand, and the Company, on the
other, on behalf of themselves and their respective predecessors, successors and assigns and their respective officers, directors, employees, representatives and shareholders do hereby remise, release
and forever discharge the other and their respective predecessors, successors and assigns and, in the case of Employee, release hereunder, the Company's officers, directors, shareholders, agents,
employees, representatives, attorneys and all affiliated parent or subsidiary corporations or divisions and each of them, of and from any and all claims, rights, debts, liabilities, demands,
obligations, promises, acts, agreements, costs and expenses (all of the foregoing being referred to collectively as the "Claims and Expenses") (including, but not limited to, unknown Claims and
Expenses through and including the Effective Date, including, without limitation, any and all Claims and Expenses in any way based on, arising out of or related to the Original Agreement or Employee's
employment with the Company prior to the Effective Date), as well as any claim not set forth in this Amended Employment Agreement for severance pay, bonus, sick leave, holiday pay, vacation pay, life
insurance, health and medical insurance or any other fringe benefit, workers'
compensation or disability under Title VII of the Civil Rights Acts of 1964, the Americans with Disabilities Act, or the California Fair Employment and Housing Act, INCLUDING, BUT NOT LIMITED TO, ALL
CLAIMS FOR BREACHES OF THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, as amended (the "Age Act"), PROVIDED, HOWEVER that this general release is not intended to and shall not be construed as a
release of any rights, obligations or warranties of the parties under this Amended Employment Agreement and of any rights of Employee to indemnification under California law and the Company's Articles
and bylaws. 

    Said parties, and each of them, expressly waive and relinquish all rights and benefits under Section 1542 of the Civil Code of California, which reads as follows: 

"1542.
General Release; Extent. 

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." 

    Said
parties, and each of them, acknowledge that they, or any of them, may hereafter discover facts different from or in addition to those they, or any of them, now know or believe to
be true with respect to the Claims and Expenses herein released, and agree that this Amended Employment Agreement shall be and remain effective in all respects, notwithstanding such different or
additional facts. It is the intention hereby fully, finally and forever to settle and release all Claims and Expenses which do now exist, may exist or heretofore have existed between Employee, on the
one hand, and the Company (or any of its predecessors in interest in the Original Agreement), on the other, in any way based on, arising out of or related to the Original Agreement or Employee's
employment with the Company prior to the Effective Date. In furtherance of such intention, among other things, the releases herein given shall be and remain in full force and effect as full and
complete mutual general releases to the full extent of their terms, and the Original Agreement shall be and remain of no further force or effect, notwithstanding the discovery or existence of any such
additional or different claims or facts relative thereto, and notwithstanding the breach of any terms or conditions of this Amended Employment Agreement. 

    13. NOTICES. All notices hereunder shall be in writing and shall be given either by personal delivery, telegram or
telecopy (toll prepaid) or by registered or certified mail (postage prepaid) to the appropriate party at the address listed below, and the date of such personal delivery, mailing, telegraphing or
telecopying shall be the date of the giving of such notice. 

	

 	
 	

If to the Company:	
 	

The Harvey Entertainment Company

11835 W. Olympic Blvd., Suite 550E

Los Angeles, California 90064

Attention: Chairman of the Board
	

 	
 	

If to Employee:	
 	

Glenn Weisberger

3930 Sunsetridge Road

Moorpark, CA 93021

    14. MISCELLANEOUS. 

    (a) In
the event there is any conflict between the provisions of this Amended Employment Agreement and any statute, law or regulation, the latter shall prevail;
provided, however, that in such event the provision(s) of this Amended Employment Agreement so affected shall be curtailed and limited only to the minimum extent necessary to permit compliance with
the minimum mandatory requirement(s) thereof, and no other provision(s) of this Amended Employment Agreement shall be affected thereby, and all such other provisions will continue in full force and
effect. 

    (b) This
Amended Employment Agreement shall be governed by the laws of the State of California applicable to agreements executed and to be wholly performed therein and
shall not be modified except by a written document executed by the parties hereto. 

    (c) This
Amended Employment Agreement expresses the entire understanding of the parties hereto and replaces any and all former agreements, negotiations or
understandings, written or oral, relating to the subject matter hereof. 

    (d) The
remedies herein provided are cumulative and the exercise of one shall not preclude the exercise of any other. 

    (e) No
waiver by either party hereto of any failure of the other party to keep or perform any covenant or condition of this Amended Employment Agreement shall be deemed
a waiver of any preceding, succeeding or continuing breach of the same, or any other covenant or condition. 

    (f) Paragraph
headings are for the convenience of the parties only and shall not be used in construing meaning. 

    (g) This
Amended Employment Agreement shall not be construed to create a joint venture or partnership between the parties, and shall not be interpreted in favor of or
against either party on grounds that said party drafted this Amended Employment Agreement. 

    (h) This
Amended Employment Agreement shall be executed in a number of identical counterparts, each of which shall be construed as an original for all purposes, but all
of which taken together shall constitute one and the same agreement. 

    15. AGE ACT ACKNOWLEDGMENT. EMPLOYEE ACKNOWLEDGES THAT PURSUANT TO THE TERMS OF THE AGE ACT, HE MAY SIGN THIS AGREEMENT
AT ANY TIME BETWEEN TODAY'S DATE AND 21 DAYS AFTER THE DATE OF DELIVERY OF THIS AGREEMENT TO HIM. AFTER EMPLOYEE SIGNS AND RETURNS THIS AGREEMENT TO COMPANY, EMPLOYEE HAS SEVEN (7) DAYS (THE
"REVOCATION PERIOD") TO NOTIFY COMPANY THAT HE HAS DECIDED TO WITHDRAW HIS ACCEPTANCE OF THIS AGREEMENT. THIS AGREEMENT WILL NOT BECOME EFFECTIVE AND NO PAYMENTS WILL BE MADE HEREUNDER UNTIL THE END
OF THE SEVEN-DAY REVOCATION PERIOD. NO PAYMENTS OR OBLIGATIONS REQUIRED HEREUNDER WILL BE MADE OR UNDERTAKEN BY EITHER PARTY UNTIL SUCH TIME AS THIS AGREEMENT HAS BECOME EFFECTIVE. 

    EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ, FULLY UNDERSTOOD AND VOLUNTARILY EXECUTED THIS AGREEMENT. EMPLOYEE UNDERSTANDS THAT THIS IS A LEGAL DOCUMENT
AND THAT HE HAS PREVIOUSLY 

BEEN ADVISED THAT HE MAY CONSULT WITH AN ATTORNEY CONCERNING HIS RIGHTS UNDER THIS AGREEMENT AND WITH THE COMPANY, AND THAT HE HAS RETAINED COUNSEL. EMPLOYEE UNDERSTANDS THAT, BY THIS AGREEMENT, HE IS
RELEASING THE COMPANY FROM, AMONG OTHER THINGS, ANY CLAIMS HE MAY HAVE MADE UNDER THE AGE ACT, AND THE RELEASE CONTAINED HEREIN DOES NOT COVER ANY CLAIMS THAT MAY ARISE AFTER THE REVOCATION PERIOD. 

    16. EFFECTIVE DATE. This Amended and Restated Employment Agreement shall become effective (the "Effective Date") as of
January 1, 2001. 

    IN
WITNESS WHEREOF, the parties hereto have executed this Amended Employment Agreement as of the day and year first above written. 

	

EMPLOYEE	
 	

THE HARVEY ENTERTAINMENT COMPANY
	

	
 	

By:	
 	

 
	/s/ GLENN R. WEISBERGER	 	 	 	/s/ ROGER A. BURLAGE
	
	 	 	 	

	GLENN WEISBERGER	 	 	 	Name: ROGER A. BURLAGE

Title: CHAIRMAN AND CEO

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EXHIBIT 10.86 AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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