Document:

Exhibit 10.1

 

PURCHASE
AGREEMENT

By
and Between

THE
GOLD BUSINESS, LLC

as
BUYER

and

OUTDOOR
CHANNEL HOLDINGS, INC.

as
SELLER

and

GOLD
PROSPECTORS’ ASSOCIATION OF AMERICA, INC.

April 24,
2007

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1 DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Certain Definitions

  	
   

  	
  1

  
	
  1.2

  	
  Interpretation

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2 PURCHASE AND SALE; CLOSING

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Sale and Issuance of Securities

  	
   

  	
  8

  
	
  2.2

  	
  Closing

  	
   

  	
  9

  
	
  2.3

  	
  Further Assurances; Post-Closing Cooperation

  	
   

  	
  9

  
	
  2.4

  	
  Delivery

  	
   

  	
  9

  
	
  2.5

  	
  Purchase Price Adjustment

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF
  SELLER AND PARENT GPAA

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Organization and Qualification; Subsidiaries

  	
   

  	
  12

  
	
  3.2

  	
  Authority; No Conflict

  	
   

  	
  12

  
	
  3.3

  	
  Consents

  	
   

  	
  13

  
	
  3.4

  	
  Litigation

  	
   

  	
  13

  
	
  3.5

  	
  Brokers or Finders

  	
   

  	
  13

  
	
  3.6

  	
  Governmental Consent

  	
   

  	
  13

  
	
  3.7

  	
  Financial Information

  	
   

  	
  13

  
	
  3.8

  	
  Taxes

  	
   

  	
  14

  
	
  3.9

  	
  Insurance

  	
   

  	
  16

  
	
  3.10

  	
  Employees; Labor Disputes

  	
   

  	
  16

  
	
  3.11

  	
  Employment and Benefits

  	
   

  	
  17

  
	
  3.12

  	
  Customers; Vendors

  	
   

  	
  18

  
	
  3.13

  	
  LDMA-AU

  	
   

  	
  18

  
	
  3.14

  	
  GPAA

  	
   

  	
  19

  
	
  3.15

  	
  Restrictions on Business Activities

  	
   

  	
  20

  
	
  3.16

  	
  Arm’s Length Negotiations

  	
   

  	
  20

  
	
  3.17

  	
  Assets and Real Property of Gold Business

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF
  BUYER

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Organization and Qualification

  	
   

  	
  21

  
	
  4.2

  	
  Access to Data

  	
   

  	
  21

  
	
  4.3

  	
  Tax Advisors

  	
   

  	
  21

  
	
  4.4

  	
  Authority

  	
   

  	
  22

  
	
  4.5

  	
  Consents

  	
   

  	
  22

  
	
  4.6

  	
  Brokers or Finders

  	
   

  	
  22

  
	
  4.7

  	
  Litigation

  	
   

  	
  22

  

 

 i
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
  4.8

  	
  Compliance with Other Instruments

  	
   

  	
  22

  
	
  4.9

  	
  Disclosure

  	
   

  	
  23

  
	
  4.10

  	
  Arm’s Length Negotiation

  	
   

  	
  23

  
	
  4.11

  	
  Title to Seller Common Stock held by Buyer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5 OMITTED

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 COVENANTS AND AGREEMENTS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Filings

  	
   

  	
  23

  
	
  6.2

  	
  Non-Solicitation

  	
   

  	
  23

  
	
  6.3

  	
  Employment Matters

  	
   

  	
  24

  
	
  6.4

  	
  Public Announcements

  	
   

  	
  24

  
	
  6.5

  	
  Mail Handling

  	
   

  	
  24

  
	
  6.6

  	
  Customer and Vendor Relations

  	
   

  	
  25

  
	
  6.7

  	
  Books and Records; Tax Matters

  	
   

  	
  25

  
	
  6.8

  	
  Consents

  	
   

  	
  27

  
	
  6.9

  	
  Assumption of Liabilities by Buyer

  	
   

  	
  28

  
	
  6.10

  	
  Delivery of Title to Real Property

  	
   

  	
  28

  
	
  6.11

  	
  Further Assurances

  	
   

  	
  28

  
	
  6.12

  	
  Burnt River Camp, Oregon Property

  	
   

  	
  28

  
	
  6.13

  	
  Scotts River, California Property

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7 CONDITIONS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Conditions to Obligations of Buyer and Seller

  	
   

  	
  29

  
	
  7.2

  	
  Conditions to Obligations of Buyer

  	
   

  	
  30

  
	
  7.3

  	
  Conditions to Obligations of Seller

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8 SURVIVAL OF REPRESENTATIONS AND
  WARRANTIES AND INDEMNIFICATION

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Survival of Representations, Warranties and
  Covenants

  	
   

  	
  31

  
	
  8.2

  	
  Buyer Indemnification

  	
   

  	
  31

  
	
  8.3

  	
  Seller Indemnification

  	
   

  	
  32

  
	
  8.4

  	
  Indemnification Procedure

  	
   

  	
  33

  
	
  8.5

  	
  Limitation on Recovery

  	
   

  	
  35

  
	
  8.6

  	
  Insurance

  	
   

  	
  35

  
	
  8.7

  	
  Sole and Exclusive Remedy

  	
   

  	
  35

  
	
  8.8

  	
  Assignment of Claims

  	
   

  	
  35

  

 

 ii
 

 

	
  

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 9 [OMITTED]

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10 GENERAL

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  No Third Party Beneficiaries

  	
   

  	
  36

  
	
  10.2

  	
  Notices

  	
   

  	
  36

  
	
  10.3

  	
  Entire Agreement; Modification; Waiver

  	
   

  	
  37

  
	
  10.4

  	
  Expenses

  	
   

  	
  37

  
	
  10.5

  	
  Attorney’s Fees

  	
   

  	
  37

  
	
  10.6

  	
  Time of the Essence

  	
   

  	
  37

  
	
  10.7

  	
  Governing Law and Construction

  	
   

  	
  37

  
	
  10.8

  	
  Jurisdiction

  	
   

  	
  38

  
	
  10.9

  	
  Remedies Cumulative

  	
   

  	
  38

  
	
  10.10

  	
  Assignment

  	
   

  	
  38

  
	
  10.11

  	
  Relationship

  	
   

  	
  38

  
	
  10.12

  	
  Counterparts

  	
   

  	
  38

  
	
  10.13

  	
  Severability

  	
   

  	
  38

  
	
  10.14

  	
  Dispute Resolution

  	
   

  	
  38

  

 

 iii
 

SCHEDULES

	
  Schedule

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  
	
  7.2(g)

  	
   

  	
  Seller Officer Certificate

  
	
  7.3(d)

  	
   

  	
  Buyer Officer Certificate

  

 

	
  Exhibits

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Transition Services Agreement

  
	
  B

  	
   

  	
  Programming License Agreement

  
	
  C

  	
   

  	
  Lease Agreement with Musk Ox Properties

  
	
  D

  	
   

  	
  Real Property

  
	
  E

  	
   

  	
  State Tax Liabilities

  

 

 iv

PRIVILEGED AND

CONFIDENTIAL

 

PURCHASE AGREEMENT

This
Purchase Agreement (this “Agreement”) is
made as of April 24, 2007, by and among Outdoor Channel Holdings, Inc., a
Delaware corporation (the “Seller”), Gold
Prospectors’ Association of America, Inc., a California corporation and a
wholly-owned subsidiary of Seller and the parent of Gold Prospectors’
Association of America, LLC, (“Parent GPAA”)
and The Gold Business, LLC. (the “Buyer”).

ARTICLE 1

DEFINITIONS AND INTERPRETATION

1.1                                 Certain
Definitions.  The terms defined in this Agreement shall have their
respective defined meanings whenever such terms are used in this Agreement,
unless the context expressly or by necessary implication otherwise
requires.  In addition, the following
terms shall have the meanings set forth below:

(a)                            “Adjustment Amount” shall have the meaning ascribed to such
term as set forth in Section 2.5(e).

(b)                           “Affiliate” shall mean any entity which controls, is controlled
by, or is under common control with, Seller or Buyer, as the case may be.  An entity shall be deemed to be in control of
another entity if, and for so long as, it owns or controls more than 50% of the
voting power in the election of directors (or, in the case of an entity that is
not a corporation, for the election of the corresponding managing authority) of
such other entity.

(c)                             “Affiliated Group” means any affiliated
group within the meaning of Code Section 1504(a) or any similar group defined
under a similar provision of state, local, or foreign law.

(d)                           “Agreement” shall have the meaning ascribed to such term in the
introductory paragraph.

(e)                             “Airtime Agreement” means that certain agreement by and
between Global Outdoors, Inc. and The Outdoor Channel, a subsidiary of the
Seller, dated as of January 21, 1998.

(f)                              “Assumed Liabilities” shall have the meaning
ascribed to such term in the Section 6.9 hereof.

(g)                           “Breach” shall mean any breach of, or any inaccuracy in, any
representation or warranty or any breach of, or failure to perform or comply
with, any covenant or obligation, in or

 1
 

of this Agreement or any other Contract, or
any event which with the passing of time or the giving of notice, or both,
would constitute such a breach, inaccuracy or failure.

(h)                           “Business Day” shall mean any day other than Saturday or Sunday
or any other day on which banks in California are permitted or required to be
closed.

(i)                               “Buyer” shall have the meaning ascribed to
such term in the introductory paragraph.

(j)                               “Buyer Disclosure Schedule” shall have the
meaning ascribed to such term in Article 4.

(k)                            “Buyer Indemnified Parties” shall have the meaning ascribed to
such term in Section 8.3(a).

(l)                               “Cap” shall have the meaning ascribed to
such term in Section 8.3(c).

(m)                         “Closing” shall have the meaning ascribed to such term in Section 2.2.

(n)                            “Closing Date” shall have the meaning ascribed to such term in Section 2.2.

(o)                           “Code” shall mean the Internal Revenue Code of 1986, as
amended.

(p)                           “Collateral Agreements” shall mean: (i) the Transition
Services Agreement; and (ii) the Programming License Agreement.

(q)                           “Consent” shall mean any approval, consent, ratification,
permission, waiver or authorization (including any Governmental Authorization).

(r)                              “Consideration” shall mean $2,000,000.

(s)                            “Contract” shall mean any agreement, lease, license, evidence
of indebtedness, mortgage, indenture, security agreement or other contract
(whether written or oral).

(t)                              “Covenant Breach” shall mean with respect to
a Party, a breach of, nonfulfillment or failure to comply with a covenant or
obligation expressly made by such Party herein or in any other certificate,
document, (other than the Collateral Agreements) writing or instrument
delivered by such Party pursuant to this Agreement.

(u)                           “Determination Date” shall have the meaning ascribed to such
term in Section 2.5(d) hereof.

 2
 

(v)                           “Employees” shall mean the employees of GPAA and LDMA as at the
Closing Date.

(w)                         “ERISA” shall mean the Employee Retirement Income Security Act
of 1974, as amended.

(x)                             “ERISA Affiliate” shall mean any entity
which is (or at any relevant time was) a member of a “controlled group of
corporations” with or under “common control” with Seller as defined in
Section 414(b) or (c) of the Code.

(y)                           “Estimated Working Capital” shall have the meaning ascribed to
such terms as set forth in Section 2.5(a).

(z)                             “Final Stockholders Equity” shall have the
meaning ascribed to such terms as set forth in Section 2.5(c).

(aa)                      “Gold Business” shall mean that portion of Seller’s business
consisting of, and relating to the operations of LDMA and GPAA, including, but
not limited to: (i) the activities involving the promotion and sale of
gold prospecting expeditions to (A) the Cripple River property located
near Nome, Alaska; and (B) the Pine Log property located in the Motherlode
region of California; (ii) the sale of memberships in Lost Dutchman’s
which entitle members to engage in gold prospecting on certain real estate
properties; (iii) the sale of products and services related to gold
prospecting, gold expositions, expeditions and outings including the printing
and distribution of the “Gold Prospectors & Treasure Hunters in the
Great Outdoors” magazine; and (iv) the Gold Business Production
Rights.  For the avoidance of doubt, the
Gold Business shall not include any business of Seller related to operating The Outdoor Channel®, a
national television network devoted to traditional outdoor activities such as
hunting, fishing and shooting sports, as well as off-road motor sports
and other outdoor related lifestyle programming.

(bb)                    “Gold
Business Production Rights” means the production rights and all
intellectual property and intellectual property rights related to the programs “Gold
Fever”, “Buzzardite Classics”, “Prospecting America”, “Iditarod”, “Buzzardite”,
“Gold Prospector’s Show”, “Prospector’s Preacher”, “Prospecting for Gold” and “Gold
Prospecting”, and any physical footage of the foregoing.

(cc)                      “Governmental
Authorization” shall mean any approval, consent, ratification,
waiver or other authorization of, or any license, registration or permit issued,
granted, or given by or under the authority of any Governmental Entity or
pursuant to any Legal Requirement.

(dd)                    “Governmental
Entity” shall mean any: (i) nation, principality, state,
commonwealth, province, territory, county, municipality, district or other
jurisdiction of any nature; (ii) federal, state, local, municipal, foreign
or other government; (iii) governmental or quasi governmental authority of
any nature (including any governmental division, subdivision,

 3
 

department, agency, bureau, branch, office,
commission, council, board, instrumentality, officer, official, representative,
organization, unit, body or entity and any court or other tribunal);
(iv) multi national organization or body; or (v) individual, entity
or body exercising, or entitled to exercise, any executive, legislative,
judicial, administrative, regulatory, police, military or taxing authority or
power of any nature.

(ee)                      “GPAA” shall mean Gold Prospectors’ Association of America,
LLC, a California limited liability company, a wholly-owned indirect
Subsidiary of Seller.

(ff)                          “GPAA Membership Interests” shall have the meaning ascribed to
such term in Section 3.14.

(gg)                    “Indemnified
Party” shall have the meaning ascribed to such term in Section 8.4(a).

(hh)                    “Indemnifying
Party” shall have the meaning ascribed to such term in Section 8.4(a).

(ii)                            “Knowledge” shall mean the actual knowledge, as of the date
hereof, of (i) in the case of Seller, Perry T. Massie,
William A. Owen and Thomas E. Hornish, and (ii) in the case of
Buyer, Thomas H. Massie.

(jj)                            “LDMA” shall mean LDMA-AU, Inc., a Nevada corporation, a
wholly-owned Subsidiary of Seller.

(kk)                      “LDMA Stock” shall have the meaning ascribed to such term in Section 3.13.

(ll)                            “Legal Requirement” shall mean any federal, state, county, local,
municipal, foreign or other law, ordinance, principle of common law, code,
regulation, statute, legislation, constitution, resolution, ordinance, code,
edict, decree, proclamation, convention, treaty, rule, ruling, directive,
pronouncement, requirement, specification, determination, decision, opinion or
interpretation issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any
Governmental Entity.

(mm)                “Lien”
shall mean any lien, claim, preference, charge, license, equity, trust,
equitable interest, security interest, mortgage, pledge, hypothecation,
encumbrance, right of possession, lease, tenancy, license, encroachment,
easement, conditional sale, infringement, interference, Order, proxy, option,
right of first refusal, preemptive right, community property interest, title
retention agreement, defect in title, covenant, condition or other restrictions
of any kind (including any restriction on the transfer of any asset, any restriction
on the receipt of any income derived from any asset, any restriction on the use
of any asset and any restriction on the possession, exercise or transfer of any
other attribute of ownership of any asset).

 4
 

(nn)                    “Losses”
shall mean any and all losses, costs, obligations, liabilities, settlement
payments, awards, judgments, fines, penalties, damages, expenses (including
reasonable costs of investigation and defense and reasonable attorneys’ fees
and expenses), deficiencies or other charges.

(oo)                    “Notice
of Disagreement” shall have the meaning ascribed to such term as set
forth in Section 2.5(d).

(pp)                    “Order”
shall mean any: (a) order, judgment, injunction, edict, decree, ruling,
pronouncement, determination, decision, opinion, verdict, sentence, subpoena,
writ or award issued, made, entered, rendered or otherwise put into effect by
or under the authority of any court, administrative agency or other
Governmental Entity or any arbitrator or arbitration panel; or
(b) Contract with any Governmental Entity entered into in connection with
any Proceeding.

(qq)                    “Parent
GPAA” shall have the meaning ascribed to such term in the
introductory paragraph.

(rr)                          “Party” and “Parties”
shall mean the Buyer, Seller and Parent GPAA.

(ss)                      “Person” shall mean an individual, a partnership, a limited
liability company, a corporation, an association, a joint stock corporation, a
trust, a joint venture, an unincorporated organization, or a governmental
entity (or any department, agency, or political subdivision thereof).

(tt)                          “Post Closing Statement” shall have the meaning ascribed to it Section 2.5(c).

(uu)                    “Potential
Contributor” shall have the meaning ascribed to such term in Section 8.8.

(vv)                    “Proceeding”
shall mean any action, suit, litigation, arbitration, proceeding (including any
civil, criminal, administrative, investigative or appellate proceeding and any
informal proceeding), prosecution, contest, hearing, inquiry, audit,
examination or investigation (other than a routine inspection) commenced,
brought, conducted or heard by or before, or otherwise involving, any
Governmental Entity or any arbitrator or arbitration panel.

(ww)                “Programming
License Agreement” shall mean the programming license agreement,
entered into by and between Seller and Buyer as of the Closing Date, in form
and substance satisfactory to Buyer and Seller, attached hereto as Exhibit B.

(xx)                        “Purchase Price” shall mean $2,000,000.

(yy)                    “Real
Property” shall mean those properties in their commonly known names
set forth on Exhibit D hereto.

 5
 

(zz)                        “Receiving Party” shall have the meaning ascribed to such term
in Section 8.4.

(aaa)                “Records”
shall mean information of Seller that is inscribed on a tangible medium or that
is stored in an electronic or other medium and is retrievable in perceivable
form and related to the Gold Business, including client and customer lists and
records, research and development reports and records, production reports and
records, service and warranty records, operating guides and manuals, design
databases and records, and test and characterization programs and procedures
and records, but excluding records relating to the operation of The Outdoor
Channel, Inc. by the Seller and emails (except to the extent that any of the
Records described above are embodied solely in email form).

(bbb)             “Representatives”
shall mean with respect to a Party, the directors, officers, employees, agents,
investment bankers, attorneys, accountants and other advisors to, or
representatives of, such Party and/or its Subsidiaries.

(ccc)                “Securities”
shall mean all 2,000 shares of LDMA Stock and 100% of the GPAA Membership
Interests.

(ddd)             “Securities
Act” shall mean the Securities Act of 1933, as amended.

(eee)                “Seller”
shall have the meaning ascribed to such term in the introductory paragraph.

(fff)                      “Seller Disclosure Schedule” shall have the meaning ascribed to
such term in Article 3.

(ggg)             “Seller
Indemnified Parties” shall have the meaning ascribed to such term in
Section 8.2(a).

(hhh)             “Seller
Material Adverse Effect” shall mean any event, condition, change,
development, state of facts or other matter (each an “Effect”), individually or in combination
with any other Effect, that has had or could reasonably be expected to have a
materially adverse effect on (i) the Securities, GPAA, or LDMA, or
(ii) the ability of Seller to consummate the transactions contemplated
hereby or any agreements delivered or entered into in connection herewith; provided, however, that none of the following shall be
deemed, either alone or in combination, to constitute a Seller Material Adverse
Effect, nor shall any of the following be taken into account in determining
whether there has been a Seller Material Adverse Effect: any Effect resulting
from or arising out of (i) the announcement of this Agreement or pendency
of the transactions contemplated hereby, including loss of Employees (but only
to the extent that such Effect is the direct and proximate cause of such
announcement or pendency), (ii) fluctuations in the Seller’s stock price,
(iii) performance by a Party of its obligations under this Agreement or as
required by applicable Laws or accounting requirements, (iv) general
economic conditions in the United States that do not disproportionately and
adversely affect the Gold Business, taken as a whole, in any material

 6
 

respect, and (v) any natural disaster or
any acts of terrorism, sabotage, military action or war (whether or not
declared) or any escalation or worsening thereof.

(iii)                         “Seller Plans” shall mean each “employee benefit plan” (within
the meaning of Section 3(3) of ERISA), and each severance, change in
control, retention or employment, termination pay, performance, retirement,
thrift, savings plan, program or agreement, and any pension, profit sharing,
deferred compensation, vacation, paid time off, perquisite, fringe benefit,
incentive, bonus, stock option, stock purchase, stock appreciation, and
restricted stock plan, disability, death benefit, hospitalization, medical,
dental, life or other insurance (whether insured or self-insured),
welfare benefit, employee loan, employee assistance, supplementary unemployment
benefit or any other plan, program, arrangement, understanding, or policy
(whether or not legally binding) under which any Employee has any present or
future right to benefits and under which Seller or any of its ERISA Affiliates
has had or has any present or future liability.

(jjj)                         “State Tax Liabilities” shall have the meaning ascribed to it
in Section 6.9 hereof.

(kkk)                “Stockholders
Equity” shall mean the assets minus the liabilities adjusted
consistent with the March Balance Sheet.

(lll)                         “Subsidiary” shall mean with respect to a Party, any other
corporation, limited liability company, general or limited partnership,
unincorporated association or other business entity of which (a) if a
corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by such Party, or one or more of the other Subsidiaries
of such Party or a combination thereof, or (b) if a limited liability
company, partnership, association or other business entity, a majority of the
partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by such Party, or one or more Subsidiaries
of such Party or a combination thereof.

(mmm)       “Survival Date”
shall have the meaning ascribed to such term in Section 8.1.

(nnn)             “Tax(es)”
shall mean with respect to any Person: (i) any federal, state, provincial,
regional, county, local or foreign and other taxes (including without
limitation, any income (net, gross, or otherwise), alternative or add on
minimum tax, gross income, gross receipts, property, sales, value added, use,
transfer, gains, license, excise, employment, payroll, services, franchise, ad
valorem, recording, excise, stamp, withholding or minimum tax, or any other tax
custom, duty, governmental fee or other like assessment or charge of any kind
whatsoever), together with any interest, levies, assessments, charges,
penalties, additions to tax or additional amounts imposed by a Governmental
Entity, (ii) any joint or several liability of such Person with any other
Person for the payment of any amounts of the type described in (i) of this
definition, and (iii) any liability of such Person for the payment of any
amounts of the type described in (i) as the

 7
 

result of any obligation to indemnify any
other Person, by way of a Tax sharing agreement, or otherwise.

(ooo)             “Tax
Return(s)” shall mean all federal, state, local and foreign returns
and reports, consolidated or otherwise (including without limitation
information returns, elections, declarations, estimates, disclosures,
schedules, claims for refund) required to be filed with any Governmental
Entity.

(ppp)             “Third
Party” shall mean a Person that is not a Party to this Agreement.

(qqq)             “Third
Party Claim” shall mean any claim against any Buyer Indemnified
Party or Seller Indemnified Party by a Third Party, whether or not involving a
Proceeding.

(rrr)                       “Transition Services Agreement” shall mean the transition
services agreement, entered into by and between Seller and Buyer as of the
Closing Date, in form and substance satisfactory to Buyer and Seller, attached
hereto as Exhibit A.

(sss)                “Treasury
Regulations” or “Treas. Reg.”
shall mean the Regulations promulgated under the Internal Revenue Code of 1986,
as amended.

(ttt)                      “WARN Act” shall mean the Worker’s Adjustment and Retraining
Notification Act of 1988, as amended.

(uuu)             “Warranty
Breach” shall mean with respect to a Party, an inaccuracy in or
Breach of any representation or warranty expressly made by such Party herein or
in such Party’s Disclosure Schedule, any certificate delivered by such party
pursuant to Section 2.4, any transfer instrument or any other
certificate or document (other than the Collateral Agreements) delivered by
such Party pursuant to this Agreement (without giving effect to any update to
such Party’s Disclosure Schedule).

1.2                                 Interpretation. 
The words “include,” “includes” and “including” when used herein shall be
deemed in each case to be followed by the words “without limitation.”  The table of contents and headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement.

ARTICLE 2

PURCHASE AND SALE; CLOSING

2.1                                 Sale
and Issuance of Securities.  Subject to the terms and conditions of
this Agreement, at the Closing, the Buyer agrees to purchase, and the Seller agrees
to sell to the Buyer,
all 2,000 outstanding shares of LDMA Stock and 100% of the GPAA
Membership Interests (collectively, the “Securities”)
in exchange for the Consideration.

 8
 

2.2                                 Closing. 
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices
of Wilson Sonsini Goodrich & Rosati, Professional Corporation
12235 El Camino Real, Suite 200, San Diego, California 92130, at
10:00 a.m. local time following the satisfaction or written waiver of the
last of the conditions of Closing as set forth in Article 7 (other
than those conditions which, by their nature, are to be satisfied at the
Closing, but subject to the satisfaction or waiver thereof), or on such other
date the Parties may mutually determine (the “Closing
Date”).

2.3                                 Further
Assurances; Post-Closing Cooperation.

(a)                            On the Closing Date, Seller
shall, at no cost to Buyer in the manner and form reasonably specified by
Buyer, deliver to Buyer all of the Securities.

(b)                           Following the Closing, the
Seller will provide the Buyer, upon the Buyer’s reasonable prior written
request, with copies and extracts from any Records relating to GPAA and LDMA in
its possession with respect to periods prior to the Closing, to the extent that
such access may be reasonably required by the Party or its Representatives in
connection with (i) the preparation of Tax Returns, (ii) the
determination or enforcement of rights and obligations under this Agreement,
including by any Indemnified Party (as defined below), (iii) compliance
with the requirements of any Governmental Entity, (iv) in connection with
any actual or threatened Proceeding; or (v) operation of the Gold Business
post-Closing.

2.4                                 Delivery.

(a)                            Deliveries by Seller.  At the Closing, Seller will deliver or cause to
be delivered to Buyer the following:

(i)                                   an
assignment of membership interest in the name of Buyer representing 100% of the
GPAA Membership Interests;

(ii)                                an
assignment separate from stock certificate transferring 100% of the LDMA Stock
into the name of Buyer;

(iii)                             a
balance sheet of the Gold Business as at March 31, 2007 (the “March Balance Sheet”) adjusted to reverse
inter-company receivables and a balance sheet of the Gold Business as at
December 31, 2006;

(iv)                            cash
and cash equivalents to remain in the Gold Business of no more than $824,583
(the “Gold Cash”)

(v)                               resignation
letters of Thomas E. Hornish whereby Mr. Hornish agrees to resign his position
as Secretary and director of LDMA;

(vi)                            the
Seller Officer Certificate referred to in Section 7.2(g) hereunder;

 9
 

(vii)                         the
LDMA/AU Management Contract;

(viii)                      resignation
letters of Perry Massie whereby Mr. Massie agrees to resign his position as
Director, Vice President and Secretary of Parent GPAA and as President and
Chairman of the Board of LDMA;

(ix)                              the
deeds to the Real Property;

(x)                                 the
Transition Services Agreement, duly executed by Seller; and

(xi)                              the
Programming License Agreement, duly executed by Seller.

(b)                           Deliveries by Buyer.  At the Closing, Buyer will deliver or cause
to be delivered to Seller the following:

(i)                                   the
Consideration;

(ii)                                cash
remaining in the Gold Business in excess of the Gold Cash ($1,588,932);

(iii)                             the
certificate referred to in Section 7.3(d) hereunder;

(iv)                            the
Transition Services Agreement, duly executed by Buyer; and

(v)                               the
Programming License Agreement, duly executed by Buyer.

2.5                                 Purchase
Price Adjustment.

(a)                            Delivery of Balance
Sheet.  On the Closing Date, the
Seller shall deliver to the Buyer the March Balance Sheet setting forth the
assets and liabilities of the Gold Business and the Stockholders Equity of the
Gold Business as of March 31, 2007 (the “Estimated
Stockholders Equity”).

(b)                           Post-Closing
Balance Sheet.  Within ninety (90)
calendar days after the Closing Date, the Buyer shall prepare and deliver to the
Seller a statement (the “Post Closing
Statement”) setting forth its calculation of the Stockholders Equity
as of the close of business on the Closing Date (the “Final Stockholders Equity”) prepared in
accordance with the past practices of the Seller in the ordinary course of
business.

(c)                            Disputes.  During the thirty-(30)-calendar-day
period following receipt of the Post-Closing Statement, the Seller shall
be permitted to review the books, records, working papers and all other
information and materials reasonably related to the Post-Closing
Statement, and the Buyer shall cooperate with the Seller to provide it with
reasonable access to facilities and personnel (including those responsible for
the preparation of the Post-Closing Statement) and any other information
used in preparing the Post-Closing Statement reasonably requested by
them.  The 

 10
 

Post-Closing Statement shall become
final and binding on the thirtieth (30th) calendar day following the Seller’s
receipt thereof, provided the Buyer has reasonably cooperated as provided
above, unless the Seller gives written notice of its disagreement with the Post-Closing
Statement (a “Notice of Disagreement”)
to the Buyer on or prior to such date. 
Any Notice of Disagreement shall specify the nature of any disagreement
so asserted.  If a Notice of Disagreement
is received by the Buyer in a timely manner, then the Post-Closing
Statement (as revised in accordance with this sentence) shall become final and
binding on the earlier of (i) the date on which the Buyer and the Seller
resolve in writing any differences they have with respect to the matters
specified in the Notice of Disagreement or (ii) the date on which any
disputed matters are finally resolved in writing by the parties (the earlier of
such dates the “Determination Date”).  During the fifteen-(15)-calendar-day
period following the delivery of a Notice of Disagreement, the Buyer and the
Seller shall seek in good faith to resolve in writing any differences that they
may have with respect to the matters specified in the Notice of
Disagreement.  If such dispute has not
been resolved by the end of such fifteen- (15)-calendar-day
period, the Buyer and the Seller shall escalate the dispute to their respective
Chief Financial Officers or similar level executives who shall consider the
dispute in a mutually agreeable location and shall attempt in good faith to
resolve the dispute.  If such officers
are unable to resolve such dispute within ten (10) calendar days, the Buyer and
the Seller shall submit for arbitration any and all matters that remain in
dispute and were properly included in the Notice of Disagreement.

(d)                           Final Purchase Price
Adjustment.  The final purchase price
of the Gold Business shall be payable in cash adjusted by an amount equal to
the Final Stockholders Equity minus the Estimated Stockholders Equity (“Adjustment Amount”), which may be positive
or negative.  If the Adjustment Amount is
a positive number, then the Purchase Price shall be increased by the absolute
value of the Adjustment Amount, and if the Adjustment Amount is a negative
number, then the Purchase Price shall be decreased by the absolute value of the
Adjustment Amount.

(i)                                   If
the Adjustment Amount is a positive number then, promptly following the
Determination Date, and in any event within five (5) Business Days thereafter,
the Buyer shall pay to the Seller the Adjustment Amount, as finally determined,
plus interest on the Adjustment Amount from the Closing Date to the date of
payment at the “Prime Rate” of interest published in the “Money Rates” column
of The Wall Street Journal (or the average
of such rates if more than one rate is indicated) on the Closing Date.

(ii)                                If
the Adjustment Amount is a negative number then, promptly following the
Determination Date, and in any event within five (5) Business Days thereafter,
the Seller shall pay to the Buyer an aggregate amount equal to the absolute
value of the Adjustment Amount, as finally determined, plus interest on the
absolute value of the Adjustment Amount from the Closing Date to the date of
payment at the “Prime Rate” of interest published in the “Money Rates” column
of The Wall Street Journal (or the average
of such rates if more than one rate is indicated) on the Closing Date.

 11
 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF SELLER AND PARENT GPAA

Except
as specifically disclosed in the Seller’s public filings (which can be found at
www.sec.gov) and the Seller’s disclosure schedule attached hereto (the “Seller Disclosure Schedule”) (each such disclosure of which
shall clearly reference the appropriate section and, if applicable, subsection
of this Article 3 to which it relates, and each such disclosure of
which shall be deemed to be incorporated by reference into the representations
and warranties made in this Article 3; provided, that any
information disclosed under any paragraph of the Seller Disclosure
Schedule shall be deemed disclosed and incorporated into any other
section, subsection, paragraph and clause hereof where it is reasonably
apparent that such disclosure, without reference to extrinsic documentation, is
relevant to such other section, subsection, paragraph or clause), Seller and
Parent GPAA hereby represent and warrant to Buyer as follows:

3.1                                 Organization
and Qualification; Subsidiaries.  Seller and Parent GPPAA are each a
corporation duly organized, validly existing and in good standing under the
laws of Delaware and California, respectively. 
Seller and Parent GPAA have all necessary corporate powers to own its
properties and to carry on its business as currently owned and operated, and is
duly qualified to transact business and is in good standing in all
jurisdictions in which the nature of its business or of its properties makes
such qualification necessary, except where the failure to obtain such
qualification would not result in a material adverse effect to the Seller.  Seller’s wholly-owned subsidiary,
Parent GPAA, is the record and beneficial owner of all outstanding membership
interests of GPAA, free and clear of any Liens. 
Seller is the record and beneficial owner of all outstanding shares of
LDMA Stock, free and clear of any Liens.

3.2                                 Authority;
No Conflict.  Seller and Parent GPAA have all requisite corporate
power and authority to enter into this Agreement and the Collateral Agreements,
and, subject to satisfaction of the conditions set forth herein, to consummate
the transactions contemplated hereby and thereby.  The execution and delivery of this Agreement
and the Collateral Agreements, and the consummation of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate action on the part of Seller or Parent GPAA.  This Agreement has been duly executed and
delivered by Seller and Parent GPAA and constitutes the valid and binding obligations
of Seller and Parent GPAA enforceable in accordance with its terms, subject to
the effect of applicable bankruptcy, insolvency, reorganization or other
similar federal or state laws affecting the rights of creditors and the effect
or availability of rules of law governing specific performance, injunctive
relief or other equitable remedies.  The
Collateral Agreements, when executed and delivered by Seller and Parent GPAA,
will constitute the valid and binding obligation of Seller and Parent GPAA enforceable
in accordance with their respective terms, subject to the effect of applicable
bankruptcy, insolvency, reorganization or other similar federal or state laws
affecting the rights of creditors and the effect or availability of rules of
law governing specific performance, injunctive relief or other equitable
remedies.  The execution and delivery of
this Agreement and the Collateral Agreements do

 12
 

not or will
not, and the consummation of the transactions contemplated hereby and thereby
will not, conflict with, or result in any violation of or default (with or
without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation under (a) any
provision of Seller’s or Parent GPAA’s certificate of incorporation or bylaws,
as amended, or (b) any material agreement or instrument, permit, license,
judgment, Order, statute, law, ordinance, rule or regulation applicable to
Seller, Parent GPAA or their respective properties or assets.

For
purposes of the representations and warranties made in Sections 3.3
through 3.9 and 3.11, all references to “Seller” shall be deemed
to also refer to GPAA and LDMA.

3.3                                 Consents. 
Except as set forth on Section 3.3 of the Seller Disclosure
Schedule, no consent, waiver, approval, Order or authorization of, or
registration, declaration or filing with, or notice to, any Governmental Entity
or any Third Party is required by or with respect to Seller or Parent GPAA in
connection with the execution and delivery of this Agreement or the Collateral
Agreements by Seller and Parent GPAA or the consummation by Seller and Parent
GPAA of the transactions contemplated hereby or thereby.

3.4                                 Litigation. 
To the Knowledge of the Seller, there is no claim or Proceeding of any nature
pending or, to Seller’s Knowledge, threatened against Seller or Parent GPAA,
which (a) relates to GPAA and LDMA; or (b) challenges, or that could
reasonably be expected to have the effect of preventing, delaying, making
illegal or otherwise interfering with, any of the transactions contemplated hereby.  To the Knowledge of Seller, no event has
occurred or circumstance exists that is reasonably likely to give rise to any
such claim or Proceeding.

3.5                                 Brokers
or Finders.  Neither the Seller nor Parent GPAA has engaged any Person
entitled to, or taken any action that would reasonably be expected to result in
any Person being entitled to, receive from Seller any fee or commission as a
finder or a broker in connection with this Agreement or the transactions
contemplated hereby.

3.6                                 Governmental
Consent.  To the Knowledge of the Seller and Parent GPAA, no consent,
approval or authorization of or designation, declaration or filing with any
governmental authority on the part of either Seller or Parent GPAA is required
in connection with the valid execution and delivery of this Agreement, or the
offer and sale of the Securities or the consummation of any other transaction
contemplated by this Agreement, except (i) the filing of such notices as
may be required under the Securities Act of 1933, as amended (the “Securities Act”) and (ii) such filings
as may be required under applicable state securities laws, which will be timely
filed within the applicable periods therefore.

3.7                                 Financial
Information.

(a)                            The Seller has delivered to
the Buyer (i) the unaudited balance sheet and income statement of the Gold
Business as of December 31, 2006, and (ii) the March Balance  Sheet, (collectively, the “Financial Statements”).  The Financial Statements (i) are true,
accurate and complete, (ii) are consistent with the Seller’s books and
records and (iii) present fairly and

 13
 

accurately the financial position of the Gold
Business as of the respective dates thereof and the results of operations of
the Gold Business as of and through such dates.

(b)                           To the Knowledge of the
Seller, all Accounts Receivable of the Gold Business are fully collectible in
the ordinary course of business within three (3) months except to the extent of
an amount not in excess of the reserve for doubtful accounts reflected on the
March Balance Sheet.

3.8                                 Taxes. 
For the purpose of this Section 3.8, and except as otherwise noted, “Seller”
shall include each of Seller, Parent GPAA, GPAA, LDMA (and any respective
Subsidiaries thereof), and each Affiliated Group for each taxable year during
which Parent GPAA and LDMA was a member of the group. Except for the State Tax
Liabilities:

(a)                            Seller has timely filed all
material Tax Returns that it was required to file.  All such Tax Returns were correct and
complete in all material respects in so far as they relate to Parent GPAA,
GPAA, and LDMA (and any Subsidiaries thereof).

(b)                           The accrued liability for
Taxes of Seller on or before the date hereof (i) did not, as of the date of the
Seller’s most recent regularly prepared balance sheet, exceed the reserve for
Tax liability set forth thereon, and (ii) will not exceed that reserve as
adjusted for the passage of time through the Closing Date in accordance with
the past custom and practice of Seller in filing its Tax Returns.

(c)                            All Taxes due and owing by
Seller with respect to the Gold Business on or before the date hereof (whether
or not shown on any Tax Return) have been paid.

(d)                           Since December 31,
2006, Seller has not incurred any liability for Taxes outside the ordinary
course of business that would adversely affect Buyer’s ownership of the Gold
Business.

(e)                            Except for Taxes for the
period ended December 31, 2006, the Seller is not currently the beneficiary of
any extension of time within which to file any Tax Return.

(f)                              No claim has ever been
made by a Governmental Entity in a jurisdiction where Seller does not file Tax
Returns that Parent GPAA, GPAA or LDMA is or may be subject to taxation by that
jurisdiction.

(g)                           Seller has delivered or made
available to Buyer complete and accurate copies of all Tax Returns of the
Seller (to the extent related to Parent GPAA, GPAA, and LDMA (and predecessors
of each), for the years ended December 31, 2004, 2005 and 2006, and
complete and accurate copies of all examination reports and statements of
deficiencies assessed against or agreed to by the Seller since
December 31, 2001.

 14
 

(h)                           With respect to Parent GPAA,
GPAA and LDMA, Seller has not received from any Governmental Entity any
(A) notice indicating an intent to open an audit or other review,
(B) request for information related to Tax matters, or (C) notice of
deficiency or proposed adjustment of or any amount of Tax proposed, asserted or
assessed by any Governmental Entity against Seller for which Parent GPAA, GPAA,
or LDMA could be liable for outstanding Taxes.

(i)                               With respect to Parent
GPAA, GPAA and LDMA, (i) no Proceedings are pending or being conducted with
respect to any Tax matter, (ii) no power of attorney with respect to any Taxes
of seller has been filed or executed with any Governmental Entity which is
still effective, (iii) there are no matters under discussion with any
Governmental Entity, or known to Seller with respect to Taxes that are likely
to result in an additional liability for Taxes with respect to Seller, and (iv)
Seller has not waived any statute of limitations in respect of Taxes or agreed
to any extension of time with respect to a Tax assessment or deficiency nor has
any request been made in writing for any such extension or waiver.

(j)                               With respect to Parent
GPAA, GPAA and LDMA, Seller has timely withheld and remitted all Taxes required
to have been withheld and remitted in connection with any amounts paid or owing
to any employee, independent contractor, creditor, stockholder or other third
party, including without limitation, with respect to the Employees, all federal
and state income Taxes, Federal Insurance Contribution Act, Federal
Unemployment Tax Act and other similar Taxes required to be withheld and paid.

(k)                            Neither Parent GPAA, GPAA,
nor LDMA (nor any respective Subsidiaries) (A) has ever been a member of
an affiliated group (within the meaning of Code Section 1504(a)) filing a
consolidated federal income Tax Return (other than a group the common parent of
which was the Seller, Outdoor Channel Holdings, Inc.), (B) owes any amount
under, or is (over ever was) a party to, any Tax sharing, indemnification or
allocation agreement, (C) has any liability for the Taxes of any Person
under Treas. Reg. Section 1.1502-6 (or any similar provision of state,
local, or foreign law), as a transferee or successor, by contract, or
otherwise.

(l)                               Seller, Outdoor Channel
Holdings, Inc., has filed a consolidated federal income Tax Return with Parent
GPAA, and LDMA (and its respective Subsidiaries) for the taxable year
immediately preceding the current Tax year and is eligible to make a Code
Section 338(h)(10) election as it relates to the acquisition of LDMA.

(m)                         There are no Tax Liens on the
assets being acquired from Seller attributable to Taxes, other than with
respect to Taxes not yet due and payable.

(n)                           The Seller is not, nor has
it ever been, a “foreign person” within the meaning of Section 1445 of the
Code.

(o)                           Neither Parent GPAA, GPAA,
nor LDMA (nor any of its respective Subsidiaries) has constituted either a “distributing
corporation” or a “controlled corporation” in a

 15
 

distribution of stock intended to qualify for
tax-free treatment under Section 355 of the Code (A) in the two (2)
years prior to the date of this Agreement.

(p)                           Neither GPAA nor LDMA (nor
any of its respective Subsidiaries) (i) has made any payments, is
obligated to make any payments, or is a party to any agreement that could
obligate it to make any payments that may be treated as an “excess parachute
payment” under Section 280G of the Code, or (ii) has made any payments and
is not a party to any agreement, and does not maintain any plan, program or
arrangement, that could require it to make any payments that would not be fully
deductible by reason of Section 162(m) or Section  404 of the Code.

(q)                           Neither Parent GPAA, GPAA,
nor LDMA (nor any of its respective Subsidiaries) owns any interest in an
entity that is characterized as a partnership for federal income Tax purposes.

(r)                              There are no deferred
inter-company gains relating to Parent GPAA, GPAA, or LDMA, including
under Treasury Regulation Section 1.1502-13 (or any similar provision of
state, local or foreign law) that must be recognized pursuant to the transfers
under this Agreement.

(s)                            GPAA is treated as a “disregarded
entity” for federal income tax purposes.

3.9                                 Insurance. 
All insurance policies of Seller with respect to GPAA and LDMA are (a) in
full force and effect (b) are issued by an insurer that is financially
sound and reputable, (c) taken together, provide adequate insurance
coverage for GPAA and LDMA for all risks to which GPAA and LDMA are normally
exposed, and (d) are sufficient for compliance with all Legal Requirements
and Contracts related to GPAA and LDMA. 
Seller, Parent GPAA, GPAA and LDMA have not received any notice or other
communication regarding any actual or proposed (x) cancellation or
invalidation of any such insurance policy, (y) refusal of any coverage or
rejection of any claim under any such insurance policy, or (z) adjustment
in the amount of the premiums payable with respect to any such insurance policy
(other than customary annual adjustments). 
Seller, GPAA and LDMA have paid all premiums due, and has otherwise
performed all of its obligations, under all such insurance policies.  There is no pending workers’ compensation or
other claim under or based upon any such insurance policy of GPAA and LDMA by
any Employee or otherwise related to the Gold Business. Notwithstanding the
foregoing, the insurance coverage for LDMA and GPAA under the Seller’s current
insurance policies will terminate at Closing.

3.10                           Employees;
Labor Disputes.

(a)                            As of the date of this
Agreement, GPAA and LDMA are not (i) parties to any collective bargaining
agreement applicable to the Employees; (ii) subject to a legal duty to
bargain (exclusive of any notification and consultation obligations) with any
trade union on behalf of the Employees; or (iii) the object of any attempt
to organize the Employees for collective bargaining purposes or presently
operating under an expired collective bargaining agreement.  As of the current time and within the last
twenty-four (24) months, GPAA and LDMA are not and have not been a

 16

party to or subject to any strike, work
stoppage, organizing attempt, picketing, boycott or similar activity with
respect to the Employees.

(b)                           There have not been any
plant closings, mass layoffs or other terminations of employees of GPAA and
LDMA at any time which would create any obligations or liabilities under the
WARN Act or similar Legal Requirements. 
Neither GPAA nor LDMA are parties to any Contract or subject to any
requirement that in any manner restricts Buyer from relocating, consolidating,
merging or closing, in whole or in part, any portion of GPAA and LDMA and
Employees, subject to applicable Legal Requirements.

(c)                            With respect to the
Employees, GPAA and LDMA have complied in all material respects with all Legal
Requirements relating to employment practices, terms and conditions of
employment, equal employment opportunity, nondiscrimination, immigration,
wages, hours, benefits, collective bargaining, the payment of social security
and similar Taxes and occupational safety and health.  Seller, GPAA and LDMA are not liable for the
payment of any Taxes, fines, penalties or other amounts, however designated,
for failure to comply with any of the foregoing Legal Requirements.

(d)                           GPAA and LDMA are not and
will not be required to make any filing with or give any notice to, or to
obtain any approval, consent, ratification, waiver or other authorization from,
any Governmental Entity in relation to any of the Employees in connection with
the execution and delivery of this Agreement and the Collateral Agreements or
the consummation or performance of the transactions contemplated hereby and
thereby.

3.11                           Employment
and Benefits.

(a)                            No event has occurred and
there has been no failure to act on the part of GPAA or LDMA or any
administrator of any Seller Plan that could subject Buyer or its Subsidiaries
to the imposition of any tax, penalty or other liability with respect to any
Seller Plans, whether by way of indemnity or otherwise.  With respect to each Seller Plan, (i) there
has not occurred any prohibited transaction (within the meaning of
Section 406 of ERISA or Section 4975 of the Code) in which Seller or
any of its Subsidiaries or any of their respective employees or any trustee,
administrator or other fiduciary of such Seller Plan, or any agent of the foregoing
that would subject Seller or any of its Subsidiaries or, to the Knowledge of
Seller, any of their respective employees, or a trustee, administrator or other
fiduciary of any trust created under any Seller Plan, to the tax or penalty on
prohibited transactions imposed by Section 4975 of the Code or the
sanctions imposed under Title I of ERISA and (ii) neither Seller nor
any of its Subsidiaries nor, to the Knowledge of Seller, any trustee,
administrator or other fiduciary of any Seller Plan nor any agent of the
forgoing, has engaged in any transaction or acted in a manner, or failed to act
in a manner that would subject Seller or its Subsidiaries or, any trustee,
administrator or other fiduciary, to any material liability for breach of
fiduciary duty under ERISA or any other applicable Legal Requirements.

 17
 

(b)                           Neither Seller nor any ERISA
Affiliate of Seller has sponsored, maintained, participated in or contributed
to, and does not now sponsor, maintain, participate in or contribute to,
(i) any multi-employer plan, as defined in Section 3(37) of
ERISA or a multi-employer benefit plan, (ii) any plan subject to
Title IV of ERISA, (iii) any Seller Plan subject to the minimum
funding requirements of Section 412 of the Code, or (iv) any plan
which provides, or has any liability to provide, life insurance, medical,
severance or other employee welfare benefits after retirement to any former
Employee, except as required by Section 4980B of the Code or similar
laws.  Neither Seller nor any ERISA
Affiliate of Seller has any unsatisfied liability under Title IV of ERISA
or Section 412 of the Code.

(c)                            All obligations of Seller
and its ERISA Affiliates relating to group health plan continuation coverage,
whether arising by operation of law or by contract, required to be performed
under Section 4980B of the Code (or similar state law), including, but not
limited to, such obligations that may arise by virtue of the transactions
contemplated by this Agreement, have been timely performed.

(d)                           All amounts owing in respect
of employee payroll withholding obligations, remittances, premiums,
contributions and assessments under provincial or federal statutes or employee
benefit plans have been fully accrued in the books and Records of Seller and
its Subsidiaries and wages, vacation pay, holiday pay and employee benefits of
the employees of Seller and its Subsidiaries have been fully accrued in Seller’s
books and Records and reflected as such in Seller’s financial statements.

(e)                            To the Knowledge of Seller,
all Employees have the legal right to perform services for Seller and its
Subsidiaries without condition in accordance with local immigration, work
permit and similar applicable laws and regulations.

(f)                              Each individual falling
within the definition of Employee performs all or substantially all of his or
her services for or on behalf of Seller and in connection with the Gold
Business.

3.12                           Customers;
Vendors.  To Seller’s Knowledge, GPAA and LDMA have not received any
notice or other communication in writing or otherwise indicating that any
customer (or other Person) intends to cease dealing with GPAA and LDMA or to
otherwise significantly reduce the volume of business transacted by such Person
with GPAA and LDMA below historical levels (other than in the ordinary course
of negotiations).  To Seller’s Knowledge,
GPAA and LDMA have not received any notice or other communication (in writing
or otherwise), indicating that any vendor from which GPAA and LDMA purchases
goods and/or services intends to cease acting as a vendor for such Products or
otherwise dealing with GPAA and LDMA (other than in the ordinary course of
negotiations).

3.13                           LDMA-AU. 
LDMA is a corporation duly organized, validly existing and in good standing
under the laws of Nevada.  LDMA has all
necessary corporate powers to own its properties and to carry on its business
as currently owned and operated.  Each of
the articles of incorporation

 18
 

and bylaws of
LDMA, each as amended to date, is in full force and effect, and LDMA is not in
violation of any of the provisions of such documents.  Prior to the Closing, Seller shall deliver to
Buyer a true, complete and correct copy of the current articles of
incorporation and bylaws of LDMA, each as amended to date, and a list of the
current officers and directors of LDMA.

(a)                            The authorized capital
stock of LDMA (“LDMA Stock”)
consists of Two Thousand (2,000) shares of common stock, par value $1.00 per
share, of which Two Thousand  (2,000)
shares are issued and outstanding.  All
outstanding shares of LDMA Stock are duly authorized, validly issued, fully
paid and nonassessable and not subject to or issued in violation of any
purchase option, call option, right of first refusal, preemptive right,
subscription right or any similar right under applicable law, the certificate
of incorporation or bylaws of LDMA or any Contract to which LDMA, Seller or any
other Subsidiary of Seller is a party or otherwise bound.  None of the outstanding shares of LDMA Stock
have been issued in violation of any federal or state securities laws.

(b)                           To Seller’s Knowledge, no
security convertible or exchangeable into or exercisable for LDMA Stock has
been issued or reserved for issuance or is outstanding as of the date of this
Agreement.  There are no options,
preemptive rights, warrants, calls, rights, stockholder agreements, voting
trusts, proxies or other contracts of any kind to which LDMA, Seller or any
other Subsidiary of Seller is a party, or by which any of them is bound,
(x) obligating any of them to issue, deliver or sell, or cause to be issued,
delivered or sold, additional shares of LDMA Stock or other securities
convertible or exchangeable into or exercisable for LDMA Stock or
(y) otherwise relating to LDMA Stock or other securities convertible or
exchangeable into or exercisable for LDMA Stock.

(c)                            To the Seller’s Knowledge,
the execution and delivery of this Agreement and the Collateral Agreements do
not or will not, and the consummation of the transactions contemplated hereby
and thereby will not, conflict with, or result in any violation of or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation under
(a) any provision of LDMA’s certificate of incorporation or bylaws, as
amended, or (b) any material agreement or instrument, permit, license,
judgment, Order, statute, law, ordinance, rule or regulation applicable to LDMA
or its properties or assets.

3.14                           GPAA.

(a)                            GPAA is a limited liability
company duly organized, validly existing and in good standing under the laws of
California.  GPAA has all necessary
corporate powers to own its properties and to carry on its business as
currently owned and operated.  The GPAA
Operating Agreement, as amended to date, is in full force and effect, and GPAA
is not in violation of any of the provisions of such document.  Prior to Closing, Seller shall deliver to
Buyer a true, complete and correct copy of the Operating Agreement of GPAA, as
amended to date.

(b)                           Parent GPAA is the sole
member of GPAA and holds 100% of the outstanding membership interests (“GPAA Membership Interests”).  The GPAA Membership

 19
 

Interests are duly authorized, validly
issued, and fully paid and not subject to or issued in violation of any
purchase option, call option, right of first refusal, preemptive right,
subscription right or any similar right under applicable law, the Operating
Agreement of GPAA or any Contract to which GPAA, Seller or any other Subsidiary
of Seller is a party or otherwise bound. 
None of the GPAA Membership Interests have been issued in violation of
any federal or state securities laws.

(c)                            To Seller’s Knowledge, no
security convertible or exchangeable into or exercisable for GPAA Membership
Interests has been issued or reserved for issuance or is outstanding as of the
date of this Agreement.  There are no
options, preemptive rights, warrants, calls, rights, stockholder agreements,
voting trusts, proxies or other contracts of any kind to which GPAA, Seller or
any other Subsidiary of Seller is a party, or by which any of them is bound,
(x) obligating any of them to issue, deliver or sell, or cause to be
issued, delivered or sold, additional GPAA Membership Interests or other
securities convertible or exchangeable into or exercisable for GPAA Membership
Interests or (y) otherwise relating to GPAA Membership Interests or other
securities convertible or exchangeable into or exercisable for GPAA Membership
Interests.

(d)                           To the Seller’s Knowledge,
the execution and delivery of this Agreement and the Collateral Agreements do
not or will not, and the consummation of the transactions contemplated hereby
and thereby will not, conflict with, or result in any violation of or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation under
(a) any provision of GPAA’s operating agreement and constating documents,
as amended, or (b) any material agreement or instrument, permit, license,
judgment, Order, statute, law, ordinance, rule or regulation applicable to GPAA
or its properties or assets.

3.15                           Restrictions
on Business Activities.  To the Knowledge of the Seller, there is no
contract (non-competition or otherwise) judgment, injunction, order or
decree to which LDMA or GPAA is a party or otherwise binding upon LDMA or GPAA
which has or may reasonably be expected to have the effect of prohibiting or
impairing any business practice of LDMA or GPAA (including any restrictions on
selling, licensing, manufacturing or from providing services to customers or
potential customers or any class of customers, in any geographic area, during
any period of time, or in any segment of the market, any acquisition of
property (tangible or intangible) by LDMA or GPAA, the conduct of the Gold
Business by LDMA or GPAA, or otherwise limiting the freedom of LDMA or GPAA to
engage in any line of business or to compete with any person.)

3.16                           Arm’s
Length Negotiations.  Seller represents that this Agreement and the
transactions contemplated hereby were negotiated at arm’s length from the
Buyer.  Seller has had the opportunity to
review this Agreement, including all attachments hereto, and the transactions
contemplated by this Agreement with Seller’s own legal counsel, tax advisors
and other advisors.

3.17                           Assets
and Real Property of Gold Business.  The Real Property and, to the
Knowledge of the Seller, all of the assets of the Gold Business, including the
Gold Business Production Rights, are currently owned by LDMA and GPAA.

 20
 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF BUYER

Except
as specifically disclosed in the Buyer disclosure schedule attached hereto (the
“Buyer Disclosure Schedule”) each such
disclosure of which shall clearly reference the appropriate section and, if
applicable, subsection of this Article 4 to which it relates, and
each such disclosure of which shall be deemed to be incorporated by reference
into the representations and warranties made in this Article 4;
provided, that any information disclosed under any paragraph of the Buyer
Disclosure Schedule shall be deemed disclosed and incorporated into any
other section, subsection, paragraph and clause hereof where it is reasonably
apparent that such disclosure, without reference to extrinsic documentation, is
relevant to such other section, subsection, paragraph or clause, Buyer hereby
represents and warrants to Seller as follows:

4.1                                 Organization
and Qualification.  Buyer is a limited liability company duly
organized, validly existing and in good standing under the laws of
California.  Buyer has all necessary
corporate powers to own its properties and to carry on its business as
currently owned and operated, and is duly qualified to transact business and is
in good standing in all jurisdictions in which the nature of its business or of
its properties makes such qualification necessary.

4.2                                 Access
to Data.  The Buyer has had an opportunity to ask questions of, and
receive answers from, the officers of the Seller concerning the Agreement, the
exhibits and schedules attached hereto and thereto and the transactions contemplated
by the Agreement, as well as the business, management and financial affairs of
GPAA and LDMA, which questions were answered to its satisfaction.  The Buyer believes that it has received all
the information such Buyer considers necessary or appropriate for deciding
whether to purchase the Securities. 
Buyer understands that such discussions, as well as any information
issued by the Seller, were intended to describe certain aspects of the business
and prospects of GPAA and LDMA, but were not necessarily a thorough or
exhaustive description.  Buyer
acknowledges that any business plans prepared by the Seller have been, and
continue to be, subject to change and that any projections included in such
business plans or otherwise are necessarily speculative in nature, and it can
be expected that some or all of the assumptions underlying the projections will
not materialize or will vary significantly from actual results.  The Buyer also acknowledges that it is
relying solely on its own counsel and not on any statements or representations
of the Seller or its agents for legal advice with respect to this investment or
the transactions contemplated by the Agreement.

4.3                                 Tax
Advisors.  The Buyer has reviewed with its own tax advisors the U.S.
federal, state, local and foreign tax consequences of this investment and the
transactions contemplated by the Agreement. 
With respect to such matters, such Buyer relies solely on such advisors
and not on any statements or representations of the Seller or any of its
agents, written or oral.  The Buyer
understands that it (and not the Seller) shall be responsible for its own tax
liability that may arise as a result of this investment or the transactions
contemplated by the Agreement.

 21
 

4.4                                 Authority. 
Buyer has all requisite corporate power and authority to enter into this
Agreement and the Collateral Agreements, and, subject to satisfaction of the
conditions set forth herein, to consummate the transactions contemplated hereby
and thereby.  The execution and delivery
of this Agreement and the Collateral Agreements, and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action on the part of Buyer.  This Agreement has been duly executed and
delivered by Buyer and constitutes the valid and binding obligation of Buyer
enforceable in accordance with its terms, subject to the effect of applicable
bankruptcy, insolvency, reorganization or other similar federal or state laws
affecting the rights of creditors and the effect or availability of rules of
law governing specific performance, injunctive relief or other equitable
remedies.  The Collateral Agreements,
when executed and delivered by Buyer, will constitute the valid and binding
obligation of Buyer enforceable in accordance with their respective terms,
subject to the effect of applicable bankruptcy, insolvency, reorganization or
other similar federal or state laws affecting the rights of creditors and the
effect or availability of rules of law governing specific performance,
injunctive relief or other equitable remedies. 
The execution and delivery of this Agreement and the Collateral
Agreements do not or will not, and the consummation of the transactions
contemplated hereby and thereby will not, conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination, cancellation or acceleration of
any obligation under (a) any provision of Buyer’s operating agreement, or
(b) any material agreement or instrument, permit, license, judgment,
Order, statute, law, ordinance, rule or regulation applicable to Buyer or its
properties or assets.

4.5                                 Consents. 
No consent, waiver, approval, Order or authorization of, or registration,
declaration or filing with, any Governmental Entity or any Third Party is
required by or with respect to Buyer in connection with the execution and
delivery of this Agreement and the related agreements contemplated herein by
Buyer or the consummation by Buyer of the transactions contemplated hereby or
thereby.

4.6                                 Brokers
or Finders.  Buyer has not engaged any Person entitled to, or taken
any action that might result in any person being entitled to receive, any fee
or commission as a finder or a broker in connection with this Agreement or the
transactions contemplated hereby.

4.7                                 Litigation. 
There is no claim or Proceeding of any nature pending or, to Buyer’s Knowledge,
threatened against Buyer, which (a) relates to Buyer, any of its assets,
or the Consideration; or (b) challenges, or that could reasonably be
expected to have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the transactions contemplated hereby.  To the Knowledge of Buyer, no event has
occurred or circumstance exists that is reasonably likely to give rise to any
such claim or Proceeding.  There is no
Order to which Buyer or any of its assets is subject.

4.8                                 Compliance
with Other Instruments.  Buyer is not in violation or default of any
provision of its operating agreement. 
Buyer is not in violation of, or default under any provision of any
instrument, mortgage, deed of trust, loan, contract, commitment or obligation
to which it is a

 22
 

party or by
which it or any of its properties are bound, which violations or defaults, individually
or in the aggregate, would have a material adverse effect.  To Buyer’s Knowledge, Buyer is not in
violation of any provision of any Legal Requirement which would have a material
adverse effect on the Buyer’s ability to consummate the transactions
contemplated hereby or any judgment, decree or Order to which it is a party.

4.9                                 Disclosure. 
No representation or warranty made by Buyer in this Agreement contains any
untrue statement or omits to state a material fact necessary to make any of
them, in light of the circumstances in which it was made, not misleading.

4.10                           Arm’s
Length Negotiation.  Buyer acknowledges that Wilson Sonsini
Goodrich & Rosati, Professional Corporation, is representing only the
Seller in this transaction.  Buyer
represents that this Agreement and the transactions contemplated hereby were
negotiated at arm’s length from the Seller. 
Buyer has had the opportunity to review this Agreement, including all
attachments hereto, and the transactions contemplated by this Agreement with Buyer’s
own legal counsel, tax advisors and other advisors.

ARTICLE 5

OMITTED

ARTICLE 6

COVENANTS AND AGREEMENTS

 

6.1                                 Filings. 
As promptly as practicable after the Closing Date, Buyer and Seller shall each
make all filings (if any) and give all notices (if any) required to be made and
given by such party in connection with the transactions contemplated under this
Agreement and the Collateral Agreements; provided,
however, that Seller shall not be required to dispose of or make any
change to its business or expend any material funds or incur any other burden
to comply with this Section 6.1.

6.2                                 Non-Solicitation.

(a)                            Seller agrees that for a
period of two (2) years from and after the Closing Date it shall not, and it
shall cause and each of its Subsidiaries not to, without the prior written
consent of Buyer, directly or indirectly, solicit to hire (or cause or seek to
cause to leave the employ of Buyer or any of its Subsidiaries) any Employee,
unless such person ceased to be an employee of Buyer and/or its Subsidiaries;
provided, however, that in no event will any solicitation through the placement
of general employment advertising, internet postings, employee referrals, or
other publication for general circulation be prohibited by this Section 6.2.

 23
 

(b)                           Except with respect to an
Employee or any person who has ceased to be an employee of Seller or its
subsidiaries, Buyer agrees that for a period of two (2) years from and after
the Closing Date it shall not, and it shall cause each of its Subsidiaries not
to, without the prior written consent of Seller, directly or indirectly,
solicit to hire (or cause or seek to cause to leave the employ of Seller or any
of its Subsidiaries) (i) any person employed by Seller or any Subsidiary
of Seller immediately following the Closing 
or (ii) any person employed by Seller or any Subsidiary of Seller
who became known to or was identified to Buyer or any of its Subsidiaries in
connection with the transactions contemplated by this Agreement; provided,
however, that in no event will any solicitation through the placement of
general employment advertising, internet postings, employee referrals, or other
publication for general circulation be prohibited by this Section 6.2.

6.3                                 Employment
Matters.

(a)                            At Closing, all benefits,
compensation and taxation matters related to the Employees will become the sole
responsibility of the Buyer for the period commencing immediately after the
Closing Date; provided however, that the Seller will make available to the
Employees COBRA coverage under the Seller Plans at the Employee’s or the Buyer’s
expense.

(b)                           Except as required by
applicable Law or as may be agreed to by Seller and Buyer, Buyer shall not
assume any severance obligations or any Seller Plans, including equity
compensation plans, for the Employees. 
For the avoidance of doubt, Seller shall retain sponsorship of, and all
liabilities under, the Seller Plans for the period prior to and including the
Closing.  Seller shall retain sole
responsibility for all liabilities relating to, or in connection with, the
employment , or termination of employment, of each Employee prior to and
including the Closing Date. The Seller shall not be responsible for any
employment or termination of employment of such Employees immediately following
the Closing. In addition, the Seller shall accelerate the vesting of each
terminated Employee’s stock options and restricted shares granted under the
Seller’s compensation plans as if such options or restricted shares of such
Employees had vested as of June 3, 2007; provided, however, that each such
Employee must first sign a general release and waiver of claims in favor of the
Seller.

6.4                                 Public
Announcements.  No Party will issue any press release or make any
other public announcement relating to the transactions contemplated by this
Agreement without the prior consent of the other Party, except that a Party may
make any disclosure required to be made under applicable law or stock exchange
or national market system rule if such Party determines in good faith that it is
necessary to do so and, if practicable, gives prior notice to the other Party.

6.5                                 Mail
Handling.  Effective as of the Closing Date, Buyer and/or its
Affiliates shall have the right to open all mail and packages delivered to it
that are addressed to Seller or any of its Subsidiaries relating to GPAA and
LDMA.  To the extent that Buyer and/or
any of its Subsidiaries receives any mail or packages addressed to Seller or
any of its Subsidiaries and delivered to Buyer and/or any of its Affiliates not
relating to GPAA and LDMA, Buyer shall promptly deliver such mail or packages
to Seller, and any information acquired, directly or indirectly, through access
to such mail or packages shall be subject to the confidentiality obligations in
existence between the Parties.

 24
 

After the
Closing Date, Buyer may deliver to Seller any checks or drafts made payable to
Seller or any of its Subsidiaries, and Seller shall promptly deposit such
checks or drafts, and, upon receipt of funds, reimburse Buyer within ten (10)
Business Days for the amounts of all such checks or drafts, or, if so requested
by Buyer, endorse such checks or drafts to Buyer for collection.  To the extent Seller or any of its
Subsidiaries receives any mail or packages addressed and delivered to Seller
but relating to GPAA and LDMA, Seller shall, or shall cause such Subsidiaries
to, promptly deliver such mail or packages to Buyer, and any information
acquired, directly or indirectly, through access to such mail or packages shall
be subject to the confidentiality obligations of each Party as previously
agreed.

6.6                                 Customer
and Vendor Relations.  For the six-month period following the
Closing Date, Seller shall not take any action that is intended to harm its
relations and goodwill with the suppliers or customers of GPAA and LDMA.

6.7                                 Books
and Records; Tax Matters.

(a)                            Books and Records.  Each Party agrees that it will cooperate with
and make available to the other Party, during normal business hours, all books
and Records, information and employees (without substantial disruption of
employment) retained and remaining in existence after the Closing reasonably
related to GPAA and LDMA which are necessary or useful in connection with any
Tax inquiry, employee matter, audit, investigation or dispute or any other investigation
or litigation or for any other appropriate administrative purpose relating to
GPAA and LDMA (except in the case of a dispute between the Parties).  The Party requesting any such books and
Records, information or employees shall bear all of the out of pocket costs and
expenses (including attorneys’ fees, but excluding reimbursement for salaries
and employee benefits) reasonably incurred in connection with providing such
books and Records, information or employees and shall maintain the
confidentiality of all such information.

(b)                           Cooperation and Records
Retention.  Buyer and Seller agree to
furnish or cause to be furnished to the other, upon request, as promptly as
practicable, such information and assistance relating to GPAA and LDMA,
including, without limitation, access to books and Records, as is reasonably
necessary for the filing of all Tax Returns by Buyer or Seller, the making of
any election relating to Taxes, the preparation for any audit by any
Governmental Entity, and the prosecution or defense of any claim, suit or
Proceeding relating to any Tax.  Each of
Buyer and Seller shall retain all books and Records with respect to Taxes
pertaining to GPAA and LDMA for a period of at least six years following the
Closing Date.  At the end of such period,
each Party shall provide the other with at least ten (10) days prior written
notice before transferring, destroying or discarding any such books and
Records, during which period the Party receiving such notice can elect to take
possession, at its own expense, of such books and Records.  Buyer and Seller shall cooperate fully with
each other, at each Party’s own expense, in the conduct of any audit,
litigation or other proceeding relating to Taxes involving GPAA and LDMA.  Buyer and Seller further agree, upon request,
to use their reasonable best efforts to obtain any certificate or other
document from any Governmental Entity or any other Person as may be necessary
to mitigate, reduce or eliminate

 25
 

any Tax that could be imposed (including, but
not limited to, with respect to the transactions contemplated hereby).  Notwithstanding anything to the contrary in
this Section 6.7 Seller, in its sole discretion, shall have no
obligation to disclose any confidential or proprietary information to Buyer,
and shall have the right to deliver any information or documentation requested
pursuant to this Section 6.7 in redacted form to the extent such
information or documentation is not related solely to GPAA and LDMA.

(c)                            Notices.  Seller shall promptly notify Buyer in writing
upon receipt by Seller of notice of any pending or threatened federal, state,
local or foreign Tax audits or assessments relating to the income, properties
or operations of Seller that reasonably may be expected to relate to GPAA and
LDMA, and Buyer shall promptly notify Seller in writing upon receipt by Buyer
of notice of any pending or threatened federal, state, local or foreign Tax
audits or assessments relating to the income, properties or operations of Buyer
that reasonably may be expected to relate to GPAA and LDMA for which Seller
could be liable.

(d)                           Audits.  Seller, Outdoor Channel Holdings, Inc., shall
not settle any audit in a manner that would adversely affect Buyer, GPAA or
LDMA and its Subsidiaries without the prior written consent of Buyer, which
consent shall not be unreasonably withheld, conditioned or delayed.

(e)                            Characterization of
Payments.  Except as otherwise
provided in this Agreement, any payments made to any Buyer Indemnified Party
pursuant to Section 8.3 shall constitute an adjustment of the
consideration paid for the Securities for Tax purposes and shall be treated as
such by Buyer and Seller on their Tax Returns to the extent permitted by law.

(f)                              Tax Sharing Agreements.  Any Tax-sharing agreement or similar
agreements with respect to or involving Seller and either GPAA or LDMA shall be
terminated as of the Closing Date and, after the Closing Date, neither GPAA nor
LDMA shall be bound thereby or have any liability thereunder.

(g)                           Code Section 338(h)(10)
Election.  At Buyer’s option, Seller
and Buyer shall join in an election to have the provisions of Section
338(h)(10) of the Code, and similar provisions of applicable state law (“Section
338(h)(10) Elections”) apply to the acquisition of the LDMA Stock.  The parties shall include any income, gain,
loss, deduction, or other tax item resulting from the Section 338(h)(10)
Election on their Tax Returns to the extent required by applicable law.

(h)                           Allocation of Purchase
Price.  The Parties agree to allocate
the Purchase Price among the purchased assets, including the assets deemed
acquired in the event Buyer elects to make Section 338(h)(10) Elections in
accordance with above.  The allocation of
the Purchase Price is intended to comply with the requirements of
Section 1060 of the Code and the Treasury Regulations promulgated
thereunder (and any similar provision of state law).  The parties covenant and agree that
(i) such allocation shall be determined pursuant to a good faith, arm’s
length negotiation and none of the parties shall take a position on any Tax
Return (including IRS Form 8594), before any Governmental Entity or in any
judicial proceeding that is in any way

 26
 

inconsistent with such allocation without the
written consent of the other parties to this Agreement or unless specifically
required pursuant to a determination by an applicable Governmental Entity;
(ii) they shall cooperate with each other in connection with the
preparation, execution and filing of all Tax Returns related to such
allocation; and (iii) they shall promptly advise each other regarding the
existence of any tax audit, controversy or litigation related to such
allocation.

(i)                               Certain Taxes and
Fees.  All transfer, documentary,
sales, use, stamp, registration and other such Taxes, and all conveyance fees,
recording charges and other fees and charges (including penalties and interest)
incurred in connection with the Gold Business, if any, shall be borne equally
by the Parties.

(j)                               Tax Returns and
Filing.  Seller shall prepare and
file, or cause to be prepared and filed, all Tax Returns for Taxable periods of
GPAA and LDMA ending on or before the Closing Date required to be filed after
the Closing Date as promptly as possible, but in no event later than the due
dates thereof, as such dates may be extended, and shall pay, or cause to be
paid, all Taxes shown as due on such Tax Returns.  Any Taxes for a Taxable period beginning
before the Closing Date and ending after the Closing Date shall be apportioned
between Seller and Buyer as follows: 
(i) in the case of Taxes based upon or related to income or
receipts, the amount of any such Taxes allocable to the portion of the Taxable
period ending on the Closing Date shall be based on an “interim closing of the
books” as of the close of business on the Closing Date; and (ii) in the
case of Taxes other than Taxes described in clause (i), the amount of such
Taxes allocable to the portion of the Taxable period ending on the Closing Date
shall be on a per diem basis whereby the product of (A) the amount of Taxes
for the entire period, and (B) a fraction the numerator of which is the
number of calendar days in the period ending on the Closing Date and the
denominator of which is the number of calendar days in the entire period.   Notwithstanding the foregoing, for the
purpose of this Agreement, the Taxable income of GPAA and LDMA for Taxable
periods (or portions thereof) ending on or before the Closing Date shall not be
adversely affected by any items, events or transactions occurring after the
Closing (other than the normal course operations of GPAA and LDMA on the
Closing Date).

6.8                                 Consents. 
Subject to the terms and conditions set forth in this Agreement, each of the
parties hereto shall use commercially reasonable efforts to take promptly, or
cause to be taken promptly, all actions, and to do promptly, or cause to be
done promptly, all things necessary, proper or advisable under applicable laws
and regulations to remove any injunctions or other impediments or delays, legal
or otherwise, in order to consummate and make effective the transactions
contemplated by this Agreement for the purpose of securing to the parties
hereto the benefits contemplated by this Agreement.

(a)                            Each of the Seller, Parent
GPAA, and Buyer shall promptly execute and file, or join in the execution and filing
of, any application, notification or other document that may be necessary in
order to obtain the authorization, approval or consent which may be reasonably
required in connection with the consummation of the transactions contemplated
hereby.

 27
 

(b)                           The parties shall use
commercially reasonable efforts to obtain all necessary consents, waivers and
approvals of any parties to any contract as are required thereunder in
connection with the transactions contemplated hereby or for any such contracts
to remain in full force and effect so as to preserve all rights of, and
benefits to, the Buyer under such contract from and after the Closing.

6.9                                 Assumption
of Liabilities by Buyer.  Except for the liabilities described in
Section 6.3(c), the state taxation liabilities listed on Exhibit E
hereto (“State Tax Liabilities”)
and the liabilities for which the Seller will indemnify the Buyer pursuant to
Section 8.3(a) (ii), notwithstanding any other provision in this Agreement to
the contrary, the Buyer shall assume any known and unknown liabilities of the
Gold Business (or any predecessor owner of all or part of the Gold Business and
assets) in existence prior to and subsequent to Closing (the “Assumed Liabilities”).

6.10                           Delivery
of Title to Real Property.  As soon as reasonably practicable after
the Closing, the Seller shall obtain and cause to be delivered to the Buyer,
with respect to any remaining Real Property, any and all documents required to
transfer such property by deed into the name of LDMA, GPAA or as otherwise
directed by the Buyer.

6.11                           Further
Assurances.  Subject to the provisos in Section 6.1 and
Section 6.2, the Parties shall cooperate reasonably with each other and
with their Representatives in connection with any steps required to be taken as
part of their respective obligations under this Agreement, and shall
(a) furnish upon request to each other such further information,
(b) execute and deliver to each other such other documents,
(c) transfer any assets identified after the Closing as being Gold Business
assets and (d) do such other acts and things, all as the other Party may
reasonably request for the purpose of carrying out the intent of this Agreement
and the transactions contemplated hereby.

6.12                           Burnt
River Camp, Oregon Property.  Buyer acknowledges that the Real
Property commonly known as Burnt River Camp, Oregon and located at 28089 Burnt
River Canyon Lane, Baker City, Oregon is currently encumbered by that certain
Trust Deed (the “Oregon Deed of Trust”)
made by Global Resources, an Alaskan corporation (predecessor-in-interest
to Seller) to Elkhorn Title Company, as trustee, for the benefit of Osborn L.
Allison and Shirley M. Allison, as beneficiaries, dated April 29, 1987 and
recorded May 12, 1987 in Deeds 87 19 046 of the official records of Baker
County, Oregon, which Oregon Deed of Trust purports to secure indebtedness in
the original principal amount of $50,000. 
Effective as of the Closing Date, Buyer hereby assumes the Oregon Deed
of Trust and agrees to pay and satisfy all past, present and future obligations
or indebtedness evidenced or secured by the Oregon Deed of Trust or evidenced
by any notes or other instruments referenced therein or delivered in connection
therewith, including, without limitation, any principal, interest, penalties or
premiums.  Buyer further agrees to
indemnify, defend and hold harmless the Seller Indemnified Parties (defined
below) from and against any Losses incurred or suffered by the Seller
Indemnified Parties arising out of or relating to the Oregon Deed of Trust, the
indebtedness secured thereby or any notes or other instruments referenced
therein or delivered in connection therewith.

 28
 

6.13                           Scotts
River, California Property.  Buyer acknowledges that the Real Property
commonly known as Scotts River, California, Oregon is currently encumbered by
that certain Deed of Trust (the “California
Deed of Trust”) made by Global Resources, Inc., an Alaskan
corporation (predecessor-in-interest to Seller) to LA Casa Trust
Deed Service, as trustee, for the benefit of Homer B. Lewis and Helen Virginia
Lewis, as beneficiaries, dated July 11, 1988 and recorded August 17, 1988 as
Instrument Number 88009023 of the official records of Siskiyou County,
California, which California Deed of Trust purports to secure indebtedness in
the original principal amount of $80,000. 
Effective as of the Closing Date, Buyer hereby assumes the California
Deed of Trust and agrees to pay and satisfy all past, present and future
obligations or indebtedness evidenced or secured by the California Deed of Trust
or evidenced by any notes or other instruments referenced therein or delivered
in connection therewith, including, without limitation, any principal,
interest, penalties or premiums.  Buyer
further agrees to indemnify, defend and hold harmless the Seller Indemnified
Parties (defined below) from and against any Losses incurred or suffered by the
Seller Indemnified Parties arising out of or relating to the California Deed of
Trust, the indebtedness secured thereby or any notes or other instruments referenced
therein or delivered in connection therewith.

ARTICLE 7

CONDITIONS

7.1                                 Conditions
to Obligations of Buyer and Seller.  The obligations of Buyer to
purchase the Securities from Seller and Seller to sell the Securities hereunder
are subject to the fulfillment, at or before the Closing, of each of the
following conditions (all or any of which may be waived in whole or in part
only by Buyer and Seller acting jointly):

(a)                            There shall not be in
effect on the Closing Date any Order or law restraining, enjoining or otherwise
prohibiting or making illegal the consummation of any of the transactions
contemplated by this Agreement or any of the Collateral Agreements.

(b)                           All Consents, approvals and
actions of, filings with and notices to any governmental or regulatory
authority necessary to permit Buyer and Seller to perform their obligations
under this Agreement and the Collateral Agreements and to consummate the
transactions contemplated hereby and thereby shall have been duly obtained,
made or given, and all terminations or expirations of waiting periods imposed
by any governmental or regulatory Authority necessary for the consummation of
the transactions contemplated by this Agreement and the Collateral Agreements,
shall have occurred.

(c)                            The Collateral Agreements
shall be in form and substance mutually satisfactory to Seller and Buyer, each
in their sole discretion.

 29
 

7.2                                 Conditions
to Obligations of Buyer.  The obligations of Buyer hereunder to
purchase the Securities are subject to the fulfillment, at or before the
Closing, of each of the following conditions (all or any of which may be waived
in whole or in part by Buyer in its sole discretion):

(a)                            Each of the representations
and warranties set forth in ARTICLE 3 that shall be true and
correct as of the Closing Date (provided that those representations and
warranties which address matters only as of a particular date shall have been
true and correct only on such date).

(b)                           Seller shall have performed
and complied with, in all material respects, each agreement, covenant and
obligation required by this Agreement to be so performed or complied with by
Seller at or before the Closing.

(c)                            Seller shall have delivered
to Buyer the closing deliverables set forth in Section 2.4(a).

(d)                           Thomas Hornish shall have
resigned as a director of LDMA;

(e)                            Perry Massie shall have
resigned as Vice President, Secretary and as a director of Parent GPAA and
President and Chairman of the Board of LDMA;

(f)                              There shall not have
occurred and be continuing a Seller Material Adverse Effect.

(g)                           Buyer shall have received at
the Closing a certificate, dated as of the Closing Date, of an officer of
Seller certifying that the conditions set forth in Sections 7.2(a),
7.2(b),  7.2(d) , 7.2(e) and 7.2(f) have been
satisfied.

(h)                           Buyer shall be satisfied, in
its sole discretion, with the results of its due diligence investigation and
the disclosures set forth on the Seller Disclosure Schedules.

7.3                                 Conditions
to Obligations of Seller.  The obligations of Seller hereunder to sell
the Securities are subject to the fulfillment, at or before the Closing, of
each of the following conditions (all or any of which may be waived in whole or
in part by Seller in its sole discretion):

(a)                            Each of the representations
and warranties set forth in ARTICLE 4 shall be true and correct in
each case as of the Closing Date (provided that those representations and
warranties which address matters only as of a particular date shall have been
true and correct only on such date).

(b)                           Buyer shall have performed
and complied with, in all material respects, each agreement, covenant and
obligation required by this Agreement to be so performed or complied with by
Buyer at or before the Closing.

(c)                            Buyer shall have delivered
to Seller the closing deliverables set forth in Section 2.4(b).

 30
 

(d)                           Seller shall have received
at the Closing a certificate, dated as of the Closing Date, of an officer of
Buyer certifying that the conditions set forth in Sections 7.3(a), 7.3(b)
and 7.3(c) have been satisfied.

(e)                            The Air Time Agreement shall
have been terminated.

ARTICLE 8

SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND INDEMNIFICATION

8.1                                 Survival
of Representations, Warranties and Covenants.  The representations,
warranties, covenants and obligations of the Parties set forth in this Agreement,
the Seller Disclosure Schedule, the Buyer Disclosure Schedule, the certificates
delivered pursuant to Section 2.4 any transfer instrument and any
other certificate or document (other than the Collateral Agreements) delivered
pursuant to this Agreement shall survive for twelve (12) months after the
Closing Date; provided, however,
that the representations and warranties of the Seller contained in Section 3.8
(Taxes) of this Agreement and the representations and warranties of Buyer
contained in Section 4.1 and 4.2 of this Agreement shall survive until
ninety (90) days after the expiration of the applicable statutes of limitation
(including any extensions thereof) with respect thereto (each such applicable
date, the “Survival Date”).  The waiver of any condition based upon the
accuracy of any representation or warranty, or on the performance of or
compliance with any covenant or obligation, will not affect the right to
indemnification, reimbursement or other remedy based upon such representations,
warranties, covenants and obligations. 
For purposes of this Agreement, each statement or other item of
information set forth in the Seller Disclosure Schedule or Buyer Disclosure
Schedule shall be deemed to be a representation and warranty made by the Seller
or the Buyer, as applicable, in this Agreement.

8.2                                 Buyer
Indemnification.

(a)                            Subject to the limitations
set forth in this ARTICLE 8, and as otherwise expressly set forth
herein, Buyer hereby agrees to indemnify Seller and Seller’s Subsidiaries,
Affiliates and Representatives (the “Seller
Indemnified Parties”), against and agrees to hold the Seller
Indemnified Parties harmless from any Loss incurred or suffered by the Seller
Indemnified Parties (regardless of whether or not such Losses relate to any
Third Party Claim) arising out of or related to:

(i)                            a
Warranty Breach or Covenant Breach by Buyer;

(ii)                         any Taxes
of GPAA or LDMA (or any Subsidiary of either), or any Taxes of Buyer levied
with respect to GPAA and LDMA, attributable to Tax periods (or portions of Tax
periods) ending after the Closing Date and any other Taxes (including any and
all income Taxes and Taxes in the nature of income Taxes) of Buyer (and any
Subsidiaries of Buyer other than GPAA or LDMA or their Subsidiaries) for any
Tax periods; and

 31
 

(iii)                      the Assumed
Liabilities.

(b)                           Notwithstanding anything
herein to the contrary and subject to the limitations set forth in this ARTICLE 8,
Buyer shall have no liability with respect to indemnification under this
Agreement due to a Warranty Breach or Covenant Breach until the aggregate
amount of Losses incurred by the Seller Indemnified Parties due to a Warranty
Breach or Covenant Breach by Buyer exceeds $25,000.

(c)                            Except as expressly
provided in the next sentence of this Section 8.2(c),
notwithstanding anything herein to the contrary, in no event shall Buyer’s
liability for Losses (including Buyer’s reasonable costs of defending a Third
Party Claim pursuant to Section 8.4) under Section 8.2(a)
exceed, individually or in the aggregate, One Million Seven Hundred Thousand
Dollars ($1,700,000).  The provisions of
this Section 8.2(c) shall not apply to indemnification obligations
arising out of, relating to or resulting from fraud on the part of Buyer.

8.3                                 Seller
Indemnification.

(a)                            Subject to the limitations
set forth in this ARTICLE 8, and as otherwise expressly set forth
herein, Seller hereby agrees to indemnify Buyer and Buyer’s Subsidiaries,
Affiliates and Representatives (the “Buyer
Indemnified Parties”) against and agrees to hold the Buyer
Indemnified Parties harmless from any Loss incurred or suffered by the Buyer
Indemnified Parties (regardless of whether or not such Losses relate to any
Third Party Claim) arising out of or related to:

(i)                            a
Warranty Breach or Covenant Breach by Seller; and

(ii)                         any Taxes
of Parent GPAA, GPAA, LDMA (and any respective Subsidiaries thereof), or any
Taxes of Seller levied with respect to Parent GPAA, GPAA and LDMA (and any
respective Subsidiaries thereof), attributable to Tax periods (or portions of
Tax periods) ending on or before the Closing Date, and any other Taxes
including (i) any and all income Taxes and Taxes in the nature of income Taxes
arising under Treas. Reg. Section 1.1502-6 (or any similar provision of
state, local, or foreign law)) of Seller (and any Subsidiaries of Seller other
than GPAA or LDMA or their Subsidiaries and (ii) any and all Taxes of any
person imposed on Buyer, GPAA or LDMA (and any of their respective
subsidiaries) as a transferee or successor by contract or pursuant to any law,
rule or regulation attributable to Tax Periods (or portions thereof) ending on
or prior to the Closing Date.

(b)                           Notwithstanding anything
herein to the contrary and subject to the limitations set forth in this ARTICLE 8,
Seller shall have no liability with respect to indemnification under this
Agreement due to a Warranty Breach or Covenant Breach until the aggregate
amount of Losses incurred by the Buyer Indemnified Parties due to a Warranty
Breach or Covenant Breach by Seller exceeds $25,000.

 32

(c)                            Except as expressly
provided in the last sentence of this Section 8.3(c),
notwithstanding anything herein to the contrary, Seller’s liability for Losses
(including Seller’s reasonable costs of defending any Third Party Claim
pursuant to Section 8.4) under Sections 8.3(a)(i)-(ii)
shall not exceed, individually or in the aggregate, One Million Seven Hundred
Thousand Dollars ($1,700,000) (the “Cap”).

8.4                                 Indemnification
Procedure.

(a)                            Each Party agrees to give
prompt notice (such Party with the obligation to give notice, the “Indemnified Party”) to the other Party (the
“Indemnifying Party”) of the
assertion of any Third Party Claim in respect of which indemnity may be sought
under this Agreement, including the amount and other details of such Third
Party Claim; provided, however, that the
failure of the Indemnified Party to so notify the Indemnifying Party shall not
relieve the Indemnifying Party of its indemnification obligations hereunder,
except to the extent that the Indemnifying Party shall have been materially
prejudiced by such lack of timely and adequate notice.  The Indemnifying Party shall have the right,
at its election, to take over the defense or settlement of any such claim at
its own expense by giving prompt notice to that effect to the Indemnified
Party; provided, however, that the Indemnifying
Party shall keep the Indemnified Party reasonably informed of the progress of
such Third Party Claim.  If the
Indemnifying Party shall have so assumed the defense of any such claim, the
Indemnifying Party shall be authorized to consent to a settlement of, or the
entry of any judgment arising from, any such Third Party Claim, without the
prior written consent of the Indemnified Party, only if (i) such
settlement shall be a complete release of the Indemnified Party with respect to
such claim, or (ii) there is no finding or admission of any violation of
any Legal Requirement or the rights of any Person, and the sole relief provided
is monetary damages that are paid in fully by the Indemnifying Party.  The prior written consent of the Indemnified
Party shall be required for any other settlement or entry of judgment, which
shall not be unreasonably withheld or delayed. 
The Indemnified Party shall at all times have the right, at its option
and expense, to participate fully in, but not to control, any such
defense.  If the Indemnifying Party,
within thirty (30) days after receipt of the Indemnified Party’s notice of a
Third Party Claim, does not give such notice to take over the defense of such
Third Party Claim and proceed diligently to defend the Third Party Claim, then
the Indemnified Party shall have the right, but not the obligation, to
undertake the defense of such Third Party Claim.  The Parties shall cooperate in defending any
Third Party Claim, and the defending party shall have reasonable access to the
books, records and personnel which are pertinent to the defense and which are
in the possession or control of the other Party.  The Parties agree that any Indemnified Party,
at its own expense, may join an Indemnifying Party in any Third Party Claim, as
to which any right of indemnity created by this Agreement would or might apply,
for the purpose of enforcing any right of indemnity granted to such Indemnified
Party pursuant to this Agreement.

(b)                           Any claim for
indemnification made directly by an Indemnified Party and which does not result
from a Third Party Claim or action, shall be asserted by prompt written notice
submitted in good faith and specifying in reasonable detail the basis for such
claim provided, however, that the failure of
the Indemnified Party to so notify the Indemnifying Party shall not

 33
 

relieve the Indemnifying Party of its
indemnification obligations hereunder, except to the extent that the
Indemnifying Party shall have been materially prejudiced by such lack of timely
and adequate notice.  The Indemnifying
Party shall have a period of 30 days within which to respond thereto.  If the Indemnifying Party does not respond
within such 30 day period, such Party shall be deemed to have accepted responsibility
to, and shall promptly make, such payment and shall have no further right to
contest the validity of such claim.

(c)                            In case a Party shall
object in writing to any claim or claims made in any notice to recover Losses
from the Indemnifying Parties within 30 days after delivery of such notice, the
Party receiving such notice (the “Receiving
Party”) and the Indemnified Parties shall attempt in good faith to
agree upon the rights of the respective parties with respect to each of such
claims.  If the Receiving Party and the
Indemnified Parties should so agree, a memorandum setting forth any agreement
reached by the parties with respect to such claim shall be prepared and signed
by both parties.  The Indemnified Parties
and the Receiving Party shall each be entitled to rely on any such memorandum
and take any actions as may otherwise be contemplated in such memorandum.

(d)                           If no such agreement can be
reached after good faith negotiation and prior to 60 days after delivery
of notice for claim hereunder, either the Indemnified Parties or the Receiving
Party may demand arbitration of the matter unless the amount of the Losses is
at issue in pending litigation with a third party, in which event arbitration
shall not be commenced until such amount is ascertained or both parties agree
to arbitration, and in either such event the matter shall be settled by
arbitration conducted by one arbitrator mutually agreeable to the Indemnified
Parties and the Receiving Party.  In the
event that, within 30 days after submission of any dispute to arbitration,
the Indemnified Parties and the Receiving Party cannot mutually agree on one
arbitrator, then, within 15 days after the end of such 30-day
period, the Indemnified Parties and the Receiving Party shall each select one
arbitrator.  The two arbitrators so
selected shall select a third arbitrator. 
If the Receiving Party fails to select an arbitrator during this 15-day
period, then the parties agree that the arbitration will be conducted by one
arbitrator selected by the Indemnified Parties. 
If the Indemnified Parties fails to select an arbitrator during this 15-day
period, then the parties agree that the arbitration will be conducted by one
arbitrator selected by the Receiving Party.

(e)                            Any such arbitration shall
be held in San Diego County, California, under the rules then in effect of the
American Arbitration Association.  The
arbitrator(s) shall determine how all expenses relating to the arbitration
shall be paid, including, the respective expenses of each Party, the fees of
each arbitrator and the administrative fee of the American Arbitration
Association.  The arbitrator or
arbitrators, as the case may be, shall set a limited time period and establish
procedures designed to reduce the cost and time for discovery while allowing
the parties an opportunity, adequate in the sole judgment of the arbitrator or
majority of the three arbitrators, as the case may be, to discover relevant
information from the opposing parties about the subject matter of the dispute.  The arbitrator, or a majority of the three
arbitrators, as the case may be, shall rule upon motions to compel or limit
discovery and shall have the authority to impose sanctions, including attorneys’
fees and costs, to the same extent as a competent court of law or equity,
should the arbitrators or a majority of the three arbitrators, as the case may
be, determine that discovery

 34
 

was sought without substantial justification
or that discovery was refused or objected to without substantial
justification.  The decision of the
arbitrator or a majority of the three arbitrators, as the case may be, as to
the validity and amount of any claim in such Indemnified Parties’ notice shall
be final, binding, and conclusive upon the parties to this Agreement.  Such decision shall be written and shall be
supported by written findings of fact and conclusions which shall set forth the
award, judgment, decree or order awarded by the arbitrator(s), and the
Indemnified Parties shall be entitled to indemnification as set forth herein.  Within 30 days of a decision of the
arbitrator(s) requiring payment by one Party to another, such party shall make
the payment to such other Party.

(f)                              Judgment upon any award
rendered by the arbitrator(s) may be entered in any court having
jurisdiction.  The forgoing arbitration
provision shall apply to any dispute between the Receiving Party, on the one
hand, and any Indemnified Party, on the other hand, under this ARTICLE 8
hereof.

8.5                                 Limitation
on Recovery.  With respect to any Loss claimed pursuant to Section 8.2
or Section 8.3, the Indemnifying Party shall not be liable, except
in the case of fraud, for any incidental, special, consequential or punitive
damages, including loss of profits or goodwill, except to the extent a
Governmental Authority has required such amounts to be paid to a Third Party.

8.6                                 Insurance. 
The amount of any Loss claimed pursuant to Section 8.2 or Section 8.3
shall be offset by any amounts that the Indemnified Party actually recovers
under insurance policies or agreements or any other person or entity
responsible for such Loss with respect to such Loss (net of all reasonable
fees, costs and expenses incurred in enforcing rights to recovery).  The Indemnified Party shall use commercially
reasonable efforts to recover such amounts promptly.  In the event any such amounts are collected
after a claim for Losses has been paid by an Indemnifying Party, the
Indemnified Party shall promptly reimburse such amounts to such Indemnifying
Party.  The Parties agree to treat
indemnification payments as an adjustment to the Purchase Price.

8.7                                 Sole
and Exclusive Remedy.  Each Party acknowledges and agrees that after
the Closing Date, its sole and exclusive remedy with respect to any and all
claims other than fraud and willful misconduct relating to or arising out of
any representation, warranty, covenant or agreement made by the other Party
pursuant to this Agreement shall be pursuant to the indemnification provisions
of this ARTICLE 8.  Nothing
set forth in this Agreement shall be deemed to prohibit or limit either Party’s
right at any time before, on or after the Closing Date, to seek injunctive or
other equitable relief for the failure of the other Party to perform any
covenant or agreement contained herein.

8.8                                 Assignment
of Claims.  If an Indemnified Party receives any payment from an
Indemnifying Party in respect of any Loss pursuant to Section 8.2
or Section 8.3 and the Indemnified Party could have recovered all
or a part of such Loss from a Third Party (a “Potential
Contributor”) based on the underlying claim asserted against the
Indemnifying Party, the Indemnified Party shall assign such of its rights to
proceed against the Potential Contributor as are necessary to permit the
Indemnifying Party to recover from the Potential Contributor the amount of such
payment.

 35
 

ARTICLE 9

[OMITTED]

ARTICLE 10

GENERAL

10.1                           No
Third Party Beneficiaries.  Nothing contained in this Agreement shall
be construed to confer upon or give to any person or entity other than the
Parties, the Indemnified Parties, and their successors and assigns, any rights
or remedies under or by reason of this Agreement.

10.2                           Notices. 
All notices, requests, demands, and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given (a) on the
date of delivery if delivered personally (by hand or by courier) to the Party
to whom notice is to be given, (b) immediately after it has been sent via
facsimile, with a confirmation of complete transmission received by
transmitting Party, except where dispatch is not on a Business Day, then on the
next Business Day following the date of dispatch, if transmitted via facsimile
to the Party to whom notice is to be given, (c) on the third Business Day
after mailing if mailed to the Party to whom notice is to be given, by first
class mail registered or certified, postage prepaid, or (d) on the
Business Day after mailing if mailed by Federal Express, and properly addressed
as follows:

	
  If to Buyer:

  	
  Thomas H. Massie

  
	
   

  	
  Telephone: (951) 695-7524

  
	
   

  	
  Fax: (951) 699-4062
  

  
	
   

  	
   

  
	
  With a copy to

  (which shall not constitute notice):

  	
  Procopio, Cory,
  Hargreaves & Savitch LPP

  530 B Street, 21st Floor

  
	
   

  	
  San Diego, CA  92101

  
	
   

  	
  Attention: Paul
  Johnson, Esq.

  
	
   

  	
  Telephone: (619) 525-3866

  
	
   

  	
  Fax: (619) 744-5443

  
	
   

  	
   

  
	
  If to Seller:

  	
  Outdoor Channel
  Holdings, Inc

  
	
   

  	
  43445 Business Park
  Drive, Suite 113

  
	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
  Telephone: (951) 699-4749

  
	
   

  	
  Fax: (951) 699-4062

  

 

 36
 

 

	
  With a copy to

  (which shall not constitute notice):

  	
  Wilson Sonsini
  Goodrich & Rosati

  Professional Corporation

  
	
   

  	
  12235 El Camino Real,
  Suite 2001

  
	
   

  	
  Attention: Martin J.
  Waters, Esq.

  
	
   

  	
  Telephone: (858) 350-2300

  
	
   

  	
  Fax: (858) 350-2399

  

 

10.3                           Entire
Agreement; Modification; Waiver.

(a)                            This Agreement, the
Collateral Agreements and the schedules and exhibits attached hereto and
thereto set forth the entire agreement of the Parties with respect to the
matters contained herein and no prior or contemporaneous agreement or
understanding pertaining to any such matter shall be effective for any
purpose.  No supplement, modification or
amendment to this Agreement shall be binding unless executed in writing by the
Parties.  No failure on the part of any
Person to exercise any power, right, privilege or remedy under this Agreement,
and no delay on the part of any Person in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such
power, right, privilege or remedy; and no single or partial exercise of any
such power, right, privilege or remedy shall preclude any other or further
exercise thereof or of any other power, right, privilege or remedy.  No Person shall be deemed to have waived any
claim arising out of this Agreement, or any power, right, privilege or remedy
under this Agreement, unless the waiver of such claim, power, right, privilege
or remedy is expressly set forth in a written instrument duly executed and
delivered on behalf of such Person; and any such waiver shall not be applicable
or have any effect except in the specific instance in which it is given.

(b)                           Following the Closing Date,
Seller shall take reasonable steps to maintain the confidentiality of all
information included in the Gold Business that Seller held, or purported to
hold, as a trade secret prior to the Closing Date.

10.4                           Expenses. 
Each of the Parties shall pay all costs and expenses incurred or to be incurred
by it (including, without limitation, all fees related to accounting, legal and
other professional services) in negotiating and preparing this Agreement, the
Collateral Agreements and the exhibits hereto and thereto, in closing and
carrying out the transactions contemplated by this Agreement, the Collateral
Agreements and the exhibits hereto and thereto, and in relation to the transfer
of the Securities.

10.5                           Attorney’s
Fees.  In any court action at law or equity which is brought by one of
the Parties to enforce or interpret the provisions of this Agreement, the
prevailing Party will be entitled to reasonable attorney’s fees, in addition to
any other relief to which that Party may be entitled.

10.6                           Time
of the Essence.  Time is of the essence with respect to the
performance of this Agreement.

10.7                           Governing
Law and Construction.  This Agreement shall be governed by and
construed and enforced in accordance with the applicable laws of the state of
California without

 37
 

regard to any
principles governing conflicts of laws. 
The Parties acknowledge that their respective legal counsel have
reviewed and participated in settling the terms of this Agreement and that any
rule of construction to the effect that any ambiguity is to be resolved against
the drafting party, shall not be applicable in the interpretation of this
Agreement.

10.8                           Jurisdiction. 
Any Proceeding arising out of or relating to this Agreement may be brought in
any state or federal court located in San Diego County, California.

10.9                           Remedies
Cumulative.  Subject to Section 8.7 above, the rights and
remedies of the Parties shall be cumulative (and not alternative).  Each of Buyer and Seller agrees that:
(a) in the event of any Breach or threatened Breach by such Party of any
covenant, obligation or other provision set forth in this Agreement, the other
Party shall be entitled (in addition to any other remedy that may be available
to it) to an injunction restraining such Breach or threatened Breach; and
(b) neither Party nor any other Indemnified Party shall be required to
provide any bond or other security in connection with any such decree, Order or
injunction or in connection with any related action or Proceeding.

10.10                     Assignment. 
This Agreement shall inure to the benefit of and shall be binding on and
enforceable by the Parties and their respective successors and permitted
assigns.  Neither Party may assign any of
its rights or obligations hereunder, by operation of law or otherwise, without
the prior written consent of the other Party, which consent shall not be
unreasonably withheld, delayed or conditioned.

10.11                     Relationship. 
The relationship of the Parties is determined solely by the provisions of this
Agreement.  This Agreement does not
create any agency, partnership, joint venture or trust.

10.12                     Counterparts. 
This Agreement may be executed in two or more counterparts, each of which shall
be deemed to be an original and all of which together shall be deemed to be one
and the same instrument.  Copies of
executed counterparts transmitted by electronic facsimile or other means of
electronic transmission shall be considered original executed counterparts for
purposes of this Section 10.12.

10.13                     Severability. 
If any provision of the Agreement is held to be invalid or unenforceable at
law, that provision will be reformed as a valid provision to reflect as closely
as possible the original provision giving maximum effect to the intent of the
Parties, or if that cannot be done, will be severed from the Agreement without
affecting the validity or enforceability of the remaining provisions.

10.14                     Dispute
Resolution.  Subject to Section 8.4, in the case of any disputes under
this Agreement, the Parties shall first attempt in good faith to resolve their
dispute informally, or by means of mediation as follows: any Party may, upon
written notice to the other, submit such dispute to the other Party, or to such
Party’s executives who have the authority to settle the controversy, who shall
meet to attempt to resolve the dispute by good faith negotiations.  In the event the Parties are unable to
resolve such dispute within thirty (30) days after such notice is received,
each Party may

 38
 

elect to
submit the dispute to non-binding mediation in San Diego County,
California.  If such mediation is
unsuccessful in resolving the dispute, any party may avail itself of any
remedies available to it, whether at law or in equity, including recourse to
any court of competent jurisdiction.

[Remainder
of page intentionally left blank.]

 39

PRIVILEGED AND

CONFIDENTIAL

 

IN WITNESS
WHEREOF, this Agreement has been executed by the Parties as of the date first
above written.

	
  

  	
  THE GOLD BUSINESS, LLC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas H. Massie

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Thomas H. Massie

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  OUTDOOR CHANNEL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas E. Hornish

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Thomas E. Hornish

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  COO

  
	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  GOLD PROSPECTORS’ ASSOCIATION

  OF AMERICA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Owen

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  William Owen

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Secretary

  

 

SCHEDULE 7.2(g)

Seller
Officer Certificate

SCHEDULE 7.3(d)

Buyer
Officer Certificate

EXHIBIT A

Transition
Services Agreement

EXHIBIT B

Programming
License Agreement

EXHIBIT C

Lease

EXHIBIT D

Real
Property

1.  That certain real property commonly known as Scotts River
Junction, located in Siskiyou County, CA.

2. That certain
real property commonly known as Leadville Property, located in Lake County,
Colorado.

3. That certain
real property commonly known as Oconee Camp, located in Oconee County, South
Carolina.

4. That certain
real property commonly known as Burnt River Camp, located in Baker County,
Oregon.

5. That certain
real property commonly known as Cripple River Property, located in the Cape
Nome Recording District, Alaska.

6. That certain
real property commonly known as Omilak Property, located in the Cape Nome
Recording District, Alaska.

7. That certain
real property commonly known as Stanton Camp, located in Yavapai County,
Arizona.

8. That certain
real property commonly known as Vein Mountain Camp, located in McDowell County,
North Carolina.

9. That certain
real property commonly known as the Athens Property, located in Calhoun County,
Michigan.

10. That certain
real property commonly known as Blue Bucket, located in Baker County, Oregon.

11. That certain
real property commonly known as Loud Mine, located in White County, Georgia.

EXHIBIT E

State
Tax Liabilities

Seller has
paid state income taxes only in California (where its headquarters is located)
and had not paid income taxes to any other state. Seller has determined that it
may have state income tax liability up to and including the Closing Date
in eight states (Alaska, Arizona, Colorado, Georgia, Michigan, North Carolina,
Oregon and South Carolina) other than California in which the gold prospecting
properties are located and have filed income tax returns in those states for
past years, but such returns have not yet been finalized.Exhibit 10.2

 

FIRST
AMENDMENT TO LEASE

THIS FIRST
AMENDMENT TO LEASE (this “Amendment”) is made as of the 24th day of April,
2007, by and between Musk Ox Properties, L.P., a Nevada limited partnership (“Landlord”)
and Outdoor Channel Holdings, Inc., a Delaware corporation (“Tenant”), with
reference to the following facts and objectives:

RECITALS

A.                                   Landlord
and Tenant entered into that certain Lease, dated as of January 1, 2006,
pertaining to approximately 32,777 square feet comprising the entire building (the
“Building”) located at 43445 Business Park Drive, Temecula, California (the “Original
Premises”).

B.                                     Tenant,
The Gold Business, LLC, a California limited liability company (“Buyer”) and
the Gold Prospectors’ Association of America, Inc., a California corporation,
have entered into that certain Purchase Agreement dated as of the date hereof
whereby Tenant has agreed to sell to Buyer and Buyer has agreed to purchase
from Tenant the Gold Business (as defined in the Purchase Agreement).

C.                                     In
connection with the transactions contemplated by the Purchase Agreement, Buyer
desires to Lease directly from Landlord and Landlord desires to lease directly
to Buyer a portion of the Original Premises consisting of approximately 13,663
square feet of space comprising Suites 111 – 116 and the first floor of Suites
100 and 102 (the “Gold Premises”).

D.                                    Landlord
and Tenant desire to amend the Lease (i) to surrender and remove the Gold
Premises therefrom such that Tenant shall thereafter lease from Landlord only
the portion of the Building consisting of approximately 19,114 square feet of
space as shown on Exhibit A attached hereto (the “Modified Premises”)
and (ii) enter into certain related agreements and modifications as more
particularly described below.

AGREEMENT

NOW, THEREFORE, in
consideration of good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

1.                                       Effective
Date.  The terms of this Amendment
shall be effective on April 24, 2007.

2.                                       Surrender
of Gold Premises.

(a)                                  Effective
as of the Effective Date, the Lease is hereby terminated with respect to the
Gold Premises only.  On the Effective
Date, Landlord and Tenant are hereby fully and unconditionally released and
discharged from each and every claim, action, cause of action, obligation,
cost, demand and liability of every type and nature, known and unknown, arising
from or connected with the Lease with respect to the Gold Premises and Tenant’s
occupancy of the Gold Premises.  In
connection with the foregoing, each of the parties expressly waives the
provisions of California Civil Code Section 1542, which provides as follows:

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

(b)                                 Landlord
hereby acknowledges that the Gold Premises are currently occupied and shall
continue to be occupied by employees of Buyer, and, accordingly, Landlord
hereby agrees to accept the Gold Premises in their condition as of the date
hereof.

3.                                       Premises.

(a)                                  Section
1 of the Lease shall be deleted in its entirety and replaced with the
following:

Premises.  Landlord hereby leases to Tenant, and Tenant
hereby leases from Landlord, upon the terms and conditions set forth herein,
approximately 19,114 square feet of space as shown on Exhibit A located
in the building (the “Building”) commonly known as 43445 Business Park Drive,
Temecula, CA 92590 (the “Premises”). 
Landlord further grants to Tenant the non-exclusive right to use
all Common Areas in the Project.  As used
in this Lease, (i) the term “Project” shall mean all of that certain real
property, the building and other improvements commonly known as 43445 Business
Park Drive, Temecula, CA 92590, (ii) the term “Common Areas” shall mean all
areas and facilities within the Project that are not designated by Landlord for
the exclusive use of Tenant or any other lessee or other occupant of the
Project, including the parking areas, access and perimeter roads, pedestrian
sidewalks, landscaped areas, trash enclosures, recreation areas and the like
and (iii) the term “Tenant’s Share” shall mean the percentage obtained by
dividing the square feet of the Premises at the time of calculation by the
square feet of the Building at the time of calculation, which is approximately
32,777 square feet, and multiplying such quotient by 100.  Tenant’s Share is currently calculated as
58.3%.

(b)                                 Exhibit
A attached to this Amendment is hereby deemed to be attached as Exhibit A
to the Lease.

4.                                       Rent.  Schedule 1 of the Lease is hereby deleted in
its entirety and replaced with the following:

	
  PERIOD

  	
   

  	
  MONTHLY RENT

  	
   

  
	
  2006

  	
   

  	
  $

  	
  29,105.98

  	
   

  
	
  1/1/2007 –
  4/23/2007

  	
   

  	
  $

  	
  29,979.16

  	
  *

  
	
  4/24/2007 –
  12/31/2007

  	
   

  	
  $

  	
  17,477.85

  	
  *

  
	
  2008

  	
   

  	
  $

  	
  18,002.18

  	
   

  
	
  2009

  	
   

  	
  $

  	
  18,542.25

  	
   

  
	
  2010

  	
   

  	
  $

  	
  19,098.51

  	
   

  
	
  2011

  	
   

  	
  $

  	
  19,671.47

  	
   

  
	
  2012

  	
   

  	
  $

  	
  20,261.62

  	
   

  
	
  2013

  	
   

  	
  $

  	
  20,869.46

  	
   

  

 

 

	
  2014

  	
   

  	
  $

  	
  21,495.55

  	
   

  
	
  2015

  	
   

  	
  $

  	
  22,140.42

  	
   

  
	
  2016

  	
   

  	
  $

  	
  22,804.63

  	
   

  
	
  2017

  	
   

  	
  $

  	
  23,488.77

  	
   

  
	
  2018

  	
   

  	
  $

  	
  24,193.43

  	
   

  
	
  2019

  	
   

  	
  $

  	
  24,919.23

  	
   

  
	
  2020

  	
   

  	
  $

  	
  25,666.81

  	
   

  

 

*                                         Monthly
rent to be prorated based on the actual number of days in the calendar month.

5.                                       Parking.  Section 26 of the Lease is hereby deleted in
its entirety and replaced with the following:

Parking.  Tenant shall have the right to use throughout
the Term, Tenant’s Share of the parking spaces in the parking lots in the
Project.

6.                                       Other
Modifications.

(a)                                  The
term “Premises” in the third sentence of Section 10 of the Lease is hereby
deleted and replaced with the term “Project.”

(b)                                 Each
instance of the term “Premises” in Sections 13 and Section 14 of the Lease is
hereby deleted and replaced with the phrase “Premises and the Building”.

7.                                       Demising.  Landlord hereby agrees to change the locks
and/or modify the access code for the locks on such access doors in the
Building as may be necessary so as to prevent access from the Gold Premises to
the Modified Premises.

8.                                       Miscellaneous.  This Amendment, together with the Lease,
constitutes the entire agreement between Landlord and Tenant regarding the
Lease and the subject matter contained herein and supersedes any and all prior
and/or contemporaneous oral or written negotiations, agreements or understandings.  This Amendment shall be binding upon and
inure to the benefit of Landlord and Tenant and their respective heirs, legal
representatives, successors and assigns. 
No subsequent change or addition to this Amendment shall be binding
unless in writing and duly executed by both Landlord and Tenant.  Except as specifically amended hereby, all of
the terms and conditions of the Lease are and shall remain in full force and
effect and are hereby ratified and confirmed.

IN WITNESS WHEREOF, the
parties have executed this Amendment, by their duly authorized signatories, as
of the day and year first above written.

 

	
  LANDLORD:

  	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
  MUSK OX
  PROPERTIES, L.P.,

  a Nevada limited partnership

  	
   

  	
   

  	
  OUTDOOR CHANNEL HOLDINGS, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Perry T. Massie

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas E. Hornish

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Perry T. Massie

  	
   

  	
   

  	
  Name:

  	
  Thomas E. Hornish

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  General Partner

  	
   

  	
   

  	
  Title:

  	
  COO

  

 

 

EXHIBIT A

 

PREMISES

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