Document:

exv10w12

Exhibit 10.12

June      , 2011

Rainbow Media Holdings LLC

11 Penn Plaza

New York, New York 10021

Re: Aircraft Management Agreement

Gentlemen:

     This Aircraft Management Agreement will confirm our understanding and agreement regarding the
provision of aircraft management services by CSC Transport, Inc. (“CSC”) to Rainbow Media Holdings
LLC (“Client”) with respect to the Cessna 501 aircraft, s/n 501-0038, N501JG (the “Aircraft”). CSC
acknowledges and agrees that Client leases the Aircraft from New York Aircam Corp. (“Aircam”)
pursuant to a Non-Exclusive Aircraft Dry Lease Agreement dated the date hereof (the “Lease”). The
management services to be provided by CSC to Client hereunder shall be furnished only in connection
with and in support of Client’s operation of the Aircraft exclusively for business purposes of
Client or its parent company or subsidiaries under its operational control during Lease Periods (as
defined in the Lease).

          1. Management Services. CSC has agreed to provide management services to Aircam and
Patrick F. Dolan in support of their operation of the Aircraft upon the terms and subject to the
conditions set forth in an Aircraft Management Agreement dated as of July 8, 2010 (the “Aircam
Agreement”). CSC hereby agrees to provide the aircraft scheduling services set forth in Section
5.1 of the Aircam Agreement to Client in the same manner and to the same extent as though Client
were the “Client” thereunder, and to perform for Client the regulatory and record-keeping functions
which CSC is required to perform for Aircam under the Non-Exclusive Aircraft Dry Lease Agreement
between Aircam and CSC.

          2. Term. The term of this Agreement (the “Term”) shall commence on the effective date
of the contemplated “spin-off” of AMC Networks Inc., the parent company of Client, as a separate
public company (and shall not become effective if such spin-off does not occur in 2011). Unless
sooner terminated in accordance with the provisions hereof, the Term shall be coterminous with the
term of the Aircam Agreement, as such term may be extended from time to time. Notwithstanding the
foregoing, either party shall have the right to terminate this Agreement at any time for any reason
or for no reason upon 30 days’ prior written notice to the other party.

          3. Expenses. Client’s obligation to pay any expenses with respect to the Aircraft is
strictly limited to the management fee referred to below and the following operating expenses
relating to its use of the Aircraft under the Lease and this Agreement: (a) fuel, oil, lubricants
and other additives; (b) travel expenses of crew, including food, lodging and ground
transportation; (c) hangar and tie-down costs away from the

 

 

Aircraft’s base of operation; (d) additional insurance obtained for the specific flight at the
request of Client; (e) landing fees, airport taxes and similar assessments; (f) customs, foreign
permit and similar fees directly related to the flight; (g) in-flight food and beverages; (h)
passenger ground transportation; (i) flight planning and weather contract services; and (j) flight
crew to the extent provided by independent contractors rather than by CSC. CSC shall pay all such
operating expenses and invoice them to Client monthly. Client shall pay such invoices promptly
after receipt.

          4. Management Fee. The management fee shall be $100 per month for each month during
the Term, and shall be paid by Client promptly after receipt of an invoice from CSC.

          5. Insurance. CSC shall, at no expense to Client, cause Client and its parent,
subsidiaries and affiliates and their respective officers, directors, partners, employees,
shareholders, managers and members to be included as additional insureds on all insurance policies
maintained by CSC with respect to the Aircraft and the performance or failure to perform the
aircraft management services set forth in Paragraph 1 above. From time to time during the Term,
CSC shall, upon the request of Client, cause its insurer to provide Client with certificates of
insurance or other evidence reasonably satisfactory to Client that the insurance coverage required
to be furnished by CSC hereunder is in effect.

          6. Cross Indemnities. The provisions of Section 9.5 and 9.6 of the Aircam Agreement
are incorporated herein by this reference, but shall be applied only to CSC’s performance or
failure to perform the aircraft management services set forth in Paragraph 1 above and the use by
Client of the Aircraft under the Lease and this Agreement.

          7. Addresses for Notices.

	 	 	 	 	 

	To Client:

	 	 	To CSC:	 
	 
	 	 	 	 
	Rainbow Media Holdings LLC

	 	 	CSC Transport, Inc.	 
	11 Penn Plaza

	 	 	 8000 Republic Airport, Hangar 5 	 
	New York, New York 10001

	 	 	Farmingdale, New York 11735	 
	Attention: Sean Sullivan, CCO

	 	 	Attention: Philip Prosseda	 
	Telephone: (646) 393-8135

	 	 	Telephone: (516) 803-5910	 
	Fax:    (646) 273-7392

	 	 	Fax:    (516) 694-6923	 
	E-mail:   ssullivan1@rainbow-media.com

	 	 	E-mail:   pprossed@cablevision.com	 
	 
	 	 	 	 
	and

	 	 	and	 
	 
	 	 	 	 
	Rainbow Media Holdings LLC

	 	 	Cablevision Systems Corporation	 
	11 Penn Plaza

	 	 	1111 Stewart Avenue	 
	New York, New York 10001

	 	 	Bethpage, New York 11714	 
	Attn: Jamie Gallagher, EVP and GC

	 	 	Attn: David Ellen, General Counsel	 
	Telephone: (646) 273-3606

	 	 	Telephone:  (516) 803-2300	 
	Fax:    (646) 273-3789

	 	 	Fax:    (516) 803-2575	 
	E-mail:   jgallagher@rainbow-media.com

	 	 	E-mail:   dellen@cablevision.com	 

 

 

          8. No Partnership or Joint Venture. Nothing contained in this Agreement will in any
way create any partnership or joint venture relationship between CSC and Client or be construed as
evidence of the intention of the parties to constitute such.

          Please acknowledge your agreement to the foregoing terms and conditions by executing a
counterpart copy of this agreement and returning it to us at your earliest convenience.

	 	 	 	 	 	 	 	 	 

	 	 	Sincerely yours,

CSC TRANSPORT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	Date:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 

	ACKNOWLEDGED AND AGREED:

RAINBOW MEDIA HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	Date:exv10w13

Exhibit 10.13

EMPLOYMENT AGREEMENT

     EMPLOYMENT
AGREEMENT, dated as of June _______, 2011, between AMC Networks Inc., a Delaware corporation
(“AMC”), and Charles F. Dolan (“Charles Dolan”).

W I T N E S S E T H :

     WHEREAS, AMC was incorporated as an indirect, wholly-owned subsidiary of Cablevision Systems
Corporation (“Cablevision”);

     WHEREAS, Cablevision intends to spin-off AMC and its subsidiaries;

     WHEREAS, effective upon the consummation of the spin-off, AMC wishes to secure the services of
Charles Dolan as its Executive Chairman;

     WHEREAS, Charles Dolan has indicated his willingness to execute this Agreement with respect to
such employment on the terms and conditions hereinafter set forth;

     NOW THEREFORE, in consideration of the premises, the mutual covenants and agreements
hereinafter set forth, and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto covenant and agree as follows:

     1. Term of Employment. This Agreement shall be effective for a one year term commencing
on the date on which the spin-off of AMC from Cablevision is consummated (the “Effective Date”) and
will be extended automatically for successive one year terms unless terminated by either party by
written notice to the other party at least three months prior to the end of the then existing term
of this Agreement. If the spin-off of AMC does not occur by June 30, 2012, this Agreement shall be
null and void and of no force or effect.

     2. Duties. During the period of this Agreement, Charles Dolan initially will be employed
as Executive Chairman. As such, Charles Dolan will have such duties consistent with his position
as may be assigned to him, from time to time, by the Board of Directors of AMC.

     Charles Dolan agrees that he will faithfully perform the duties assigned to him hereunder and
that he will devote such business time and attention to the business and affairs of AMC as
described herein.

     Charles Dolan represents that his employment hereunder and compliance by him with the terms
and conditions of this Agreement will not conflict with or result in the breach of any agreement to
which he is a party or by which he may be bound.

     AMC acknowledges that, in addition to Charles Dolan’s services pursuant to this Agreement, he
will simultaneously serve, and is expected to devote most of his business time and attention to
serving, as Chairman of Cablevision. AMC understands that Charles Dolan is entering into an
amendment to his Employment Agreement with Cablevision contemporaneous with the execution of this
Agreement and recognizes and agrees that Charles Dolan’s

 

 

responsibilities to Cablevision will preclude him from devoting a substantial portion of his
time and attention to AMC’s affairs. In addition, as recognized in AMC’s Certificate of
Incorporation, there may be certain potential conflicts of interest and fiduciary duty issues
associated with Charles Dolan’s dual roles at AMC and Cablevision. AMC recognizes and agrees that
none of (i) Charles Dolan’s dual responsibilities at AMC and Cablevision, (ii) Charles Dolan’s
inability to devote a substantial portion of his time and attention to AMC’s affairs, (iii) the
actual or potential conflicts of interest and fiduciary duty issues that are waived in AMC’s
Certificate of Incorporation, or (iv) any actions taken, or omitted to be taken, by Charles Dolan
in good faith to comply with his duties and responsibilities to AMC or Cablevision in light of his
dual responsibilities to AMC and Cablevision, shall be deemed to be a breach by Charles Dolan of
his obligations under this Agreement.

     3. Compensation; Benefits. During the term of this Agreement, as compensation for the
services to be performed by Charles Dolan under section 2 of this Agreement, AMC will pay Charles
Dolan a minimum annual base salary of $400,000, payable in accordance with the reasonable salary
payment policies of AMC and subject to annual review during the term of this Agreement in
accordance with AMC’s practices, and to increases determined in the discretion of AMC. Charles
Dolan will be eligible for an annual bonus, with a target bonus amount of 175% of his annual base
salary, as the Compensation Committee of the Board of Directors of AMC (the “Compensation
Committee”) shall determine in its discretion in accordance with applicable plans or programs of
AMC. Any such annual bonus for 2011 shall be prorated to reflect the period of Charles Dolan’s
employment with AMC following the Effective Date. Charles Dolan will also be eligible to
participate in long-term cash or equity programs and arrangements of AMC at the level determined by
the Compensation Committee, in its discretion consistent with Charles Dolan’s role and
responsibilities as Executive Chairman. In calendar year 2012, for example, Charles Dolan will be
entitled to receive one or more long-term cash and/or equity awards with an aggregate target value
of $900,000, all as determined by the Compensation Committee in its discretion in accordance with
applicable plans or programs of AMC. Although there is no guarantee, it is currently expected that
long-term cash or equity awards of similar aggregate target values will be made to Charles Dolan
annually.

     Charles Dolan will be eligible to participate in the AMC Networks Inc. Excess Savings Plan
(the “Excess Savings Plan”), when established, and AMC will provide Charles Dolan with life,
accidental death and dismemberment and business travel accident insurance. Prior to the time the
Excess Savings Plan is established, Charles Dolan will be eligible to participate in the
Cablevision Excess Savings Plan with respect to his compensation from AMC on the same terms on
which other employees of AMC are eligible to participate in such plan. Any such life, accidental
death and dismemberment and business travel accident insurance will be based on Charles Dolan’s AMC
base salary (provided that, to the extent AMC and Cablevision continue to use the same
insurance carriers, coverage under AMC’s plans will be aggregated with coverage under the
Cablevision plan with respect to any applicable maximum coverage provisions.) Charles Dolan
acknowledges that he will not participate in any other employee health and welfare or retirement
plan of AMC.

     Charles Dolan acknowledges that any continuing service requirements with respect to any AMC
stock options or AMC restricted stock issued in respect of the spin-off of AMC shall be based
solely on service to Cablevision and its affiliates (other than AMC and its

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subsidiaries). AMC has no liability to Charles Dolan with respect to any cash payable
pursuant to the outstanding long-term cash and equity awards that were granted to him under the
plans of Cablevision prior to the Effective Date, and Charles Dolan agrees that he will not assert
any such liability against AMC.

     4. Expenses. Charles Dolan shall be authorized, in carrying out his responsibilities and
duties hereunder, to make expenditures from time to time on behalf of AMC for the performance,
furtherance and maintenance of AMC’s business, including travel relating to the business of AMC,
entertainment and similar items, and AMC shall promptly reimburse Charles Dolan for such
expenditures upon the submission of statements therefore by Charles Dolan; provided,
however, that when such expenses may be reasonably anticipated, AMC shall advance the
amount thereof to Charles Dolan.

     5. Termination Rights of AMC. AMC shall have the right to terminate Charles Dolan’s
employment at its option in the event of Charles Dolan’s repeated willful and material failure to
perform the services required of him hereunder, or Charles Dolan’s willful wrongdoing in the
performance of his duties hereunder. Termination under the preceding sentence shall cause all
obligations of AMC hereunder to cease.

     AMC may, if it so elects, declare Charles Dolan’s employment hereunder terminated by reason of
his incapacity extending beyond six consecutive months’ disability at any time prior to Charles
Dolan’s return to employment and the discharge of his duties hereunder. If such termination occurs,
Charles Dolan will be entitled to continue to receive all of his compensation and benefits pursuant
to section 3 until the end of the then remaining term of this Agreement. In the event of Charles
Dolan’s death, all obligations of AMC hereunder shall cease, except that AMC will make a lump sum
death benefit payment to Charles Dolan’s estate equal to the greater of one year’s salary or 50% of
the compensation that would have been payable to Charles Dolan during the then remaining term of
this Agreement.

     6. Section 409A. 
     To the extent Charles Dolan would otherwise be entitled to any payment that under this
Agreement, or any plan or arrangement of AMC or its affiliates, constitutes “deferred compensation”
subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and that
if paid during the six months beginning on the date of termination of Charles Dolan’s employment
would be subject to the Section 409A additional tax because Charles Dolan is a “specified employee”
(within the meaning of Section 409A and as determined by AMC), (i) the payment will not be made to
Charles Dolan and instead will be made to a trust in compliance with Rev. Proc. 92-64 (the “Rabbi
Trust”), and (ii) the payment, together with any earnings on it, will be paid to Charles Dolan on
the earlier of the six-month anniversary of his “separation from service” as defined in Treas. Reg.
§ 1.409A-1(h) or his death; provided, however, that no payment will be made to the
Rabbi Trust if it would be contrary to law or cause Charles Dolan to incur additional tax under
Section 409A. Similarly, to the extent Charles Dolan would otherwise be entitled to any benefit
(other than a payment) during the six months beginning on termination of his employment that would
be subject to the Section 409A additional tax, the benefit will be delayed and will begin being
provided (together, if applicable, with an adjustment to compensate Charles Dolan for the delay) on
the earlier of the six-month

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anniversary of his separation from service or his death. Any such payments or benefit subject
to Section 409A shall be treated as separate payments for purposes of Section 409A. Furthermore, to
the extent any other payments of money or other benefits due to Charles Dolan could cause the
application of an additional tax under Section 409A, such payments or other benefits shall be
deferred if deferral will make such payment or other benefits compliant under Section 409A.

     In addition, any payment or benefit that is due or commences upon a termination of Charles
Dolan’s employment that represents a “deferral of compensation” within the meaning of Section 409A
shall be paid, commenced to be paid or provided to Charles Dolan only upon a “separation from
service” as defined in Treas. Reg. § 1.409A-1(h).

     To the extent any expense reimbursement is determined to be subject to Section 409A, the
amount of any such expenses eligible for reimbursement in one calendar year shall not affect the
expenses eligible for reimbursement in any other taxable year (except under any lifetime limit
applicable to expenses for medical care), in no event shall any expenses be reimbursed after the
last day of the calendar year following the calendar year in which Charles Dolan incurred such
expenses, and in no event shall any right to reimbursement be subject to liquidation or exchange
for another benefit.

     If the Rabbi Trust has not been established at the time of the termination of Charles Dolan’s
employment, Charles Dolan may select an institution to serve as the trustee of the Rabbi Trust (so
long as the institution is reasonably acceptable to AMC). Charles Dolan may negotiate such terms
with the trustee as are customary for such arrangements and reasonably acceptable to AMC. AMC will
bear all costs related to the establishment and operation of the Rabbi Trust, including Charles
Dolan’s attorney’s fees.

     If any payment otherwise due to Charles Dolan hereunder would result in the imposition of the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended, AMC will
instead pay Charles Dolan either (i) such amount or (ii) the maximum amount that could be paid to
Charles Dolan without the imposition of the excise tax, depending on whichever amount results in
Charles Dolan receiving the greater amount of after-tax proceeds. In the event that the payments
and benefits payable to Charles Dolan would be reduced as provided in the previous sentence, then
such reduction will be determined in a manner which has the least economic cost to Charles Dolan
and, to the extent the economic cost is equivalent, such payments or benefits will be reduced in
the inverse order of when the payments or benefits would have been made to Charles Dolan (i.e.,
later payments will be reduced first) until the reduction specified is achieved.

     AMC will not take any action that would expose any payment or benefit to Charles Dolan to the
additional tax of Section 409A, unless (i) AMC is obligated to take the action under an agreement,
plan or arrangement to which Charles Dolan is a party, (ii) Charles Dolan requests the action,
(iii) AMC advises Charles Dolan in writing that the action may result in the imposition of the
additional tax and (iv) Charles Dolan subsequently requests the action in a writing that
acknowledges he will be responsible for any effect of the action under Section 409A. AMC will hold
Charles Dolan harmless for any action it may take in violation of this paragraph, including any
attorney’s fees Charles Dolan may incur in enforcing his rights.

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     It is AMC’s intention that the benefits and rights to which Charles Dolan could become
entitled in connection with termination of employment comply with Section 409A. If Charles Dolan or
AMC believes, at any time, that any of such benefit or right does not comply, it will promptly
advise the other and will negotiate reasonably and in good faith to amend the terms of such
arrangement such that it complies (with the most limited possible economic effect on Charles Dolan
and on AMC).

     7. Assignment. The rights and obligations of AMC under this Agreement shall inure to the
benefit of, and shall be binding upon, its successors and assigns. AMC may not assign this
Agreement without the consent of Charles Dolan.

     8. Notices. All notices and requests hereunder shall be in writing and shall be
delivered in person or by certified or registered mail, postage prepaid,

     if to Charles Dolan, addressed to:

Mr. Charles F. Dolan

c/o Cablevision Systems Corporation,

1111 Stewart Avenue,

Bethpage, NY 11714

     with copy to:

Dolan Family Office

340 Crossways Park Drive

Woodbury, NY 11797

Attention: William J. Frewin

     if to AMC, addressed to:

AMC Networks Inc.

11 Penn Plaza

New York, NY 10001

Attention: President & Chief Executive Officer

Such notices and requests shall be deemed delivered on the day on which personally delivered, or if
delivered by mail, on the third business day after its delivery at the post office, as evidenced by
a post office receipt furnished to the sender. Either party may change his or its address for
receipt of notices and requests hereunder by notice duly given to the other party in accordance
with the provision of this section.

     9. Governing Law. The laws of the State of New York shall govern all questions relative
to the interpretation and construction of this Agreement, and to the performance hereof.

     10. Waiver. No waiver by either party of any default hereunder by the other shall in any
way prejudice the waiving party with respect to any subsequent default hereunder (whether or not
similar) by the other party.

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     11. Headings of No Effect. The headings and captions hereof have been inserted solely for
convenience of reference, and shall in no way define, limit or describe any of the provisions of
this Agreement.

     12. Entire Agreement. This instrument contains the entire agreement of the parties. It
may not be changed orally, but only by an agreement in writing, signed by the party against whom
enforcement of any waiver, change, modification, extension or discharge is sought.

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     IN WITNESS WHEREOF, the parties hereto have set their hands as of the date first above
written.

	 	 	 	 	 	 	 

	 	 	AMC Networks Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Charles F. Dolan	 	 

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