Document:

Exhibit
4.03

CUSIP NO. 52517PP70

ISIN NO. US52517PP709

	
  REGISTERED

  	
  PRINCIPAL AMOUNT:
  $3,000,000

  
	
  No. R-1

  	
   

  

 

LEHMAN BROTHERS HOLDINGS INC.

MEDIUM-TERM NOTE, SERIES I

DOUBLE CONDITIONAL RANGE NOTE
DUE JUNE 27, 2007

THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF THE
DEPOSITORY.  UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY (AS DEFINED BELOW) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND
ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM (A
“CERTIFICATED NOTE”), THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE
DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITORY.

     
 

 

LEHMAN BROTHERS HOLDINGS
INC., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor
corporation under the Indenture referred to on the reverse hereof), for value
received, hereby promises to pay to CEDE & Co., or registered assigns, on
the Maturity Date, an amount
equal to the Redemption Amount.

The
“Maturity Date” is June 27, 2007, or if such day is not a Business Day, on the
next following Business Day.

The “Redemption Amount” is the amount equal to the sum of the principal
amount of the Notes plus the Additional Amount, if any.

The “Additional Amount” is a single U.S. Dollar payment calculated by
the Calculation Agent equal to the principal amount of the Notes multiplied by:

(A) 7.5%, if, at all times during the Observation Period, both (a) the
Continuously Observed EUR Rate has traded strictly within the EUR Reference
Range and (b) the Continuously Observed MXN Rate has traded strictly within the
MXN Reference Range; or

(B) 0%, if, at any time during the Observation Period, either (a) the
Continuously Observed EUR Rate trades outside the EUR Reference Range (or on
either the EUR Range Lower Boundary or the EUR Range Upper Boundary) or (b) the
Continuously Observed MXN Rate trades outside the MXN Reference Range (or on
either the MXN Range Lower Boundary or the MXN Range Upper Boundary).

The “Start Date” is December 20, 2006.

The “End Date” is June 20, 2007.

The “Observation Period” is the period from and including 10:00 am EST
on the Start Date to but excluding 10:00 am EST on the End Date.

The “Reference Currencies” are the Euro (EUR) and the Mexican Peso
(MXN).

The “EUR Reference Exchange Rate” is the spot exchange rate for the
Euro quoted against the U.S. Dollar expressed as the number of U.S. Dollars per
one Euro.

The “Continuously Observed EUR Rate” is, at any time on any day during
the Observation Period, the most recent traded EUR Reference Exchange Rate
observed on the continuous trading EBS (Electronic Broking Service) Spot
Dealing System (subject to the occurrence of a Disruption Event or a Continuous
Observation Unavailability Event).

The “EUR Reference Range” is
the range from (but excluding) the EUR Range Lower Boundary to (but excluding)
the EUR Range Upper Boundary.

The “EUR Range Lower
Boundary” is 1.2450, equal to the EUR Initial Fixing minus 0.0750.

 2
 

 

The “EUR Range Upper
Boundary” is 1.3950, equal to the Range Initial Fixing plus 0.0750.

The “EUR Initial Fixing” is
1.3200, which is the EUR Reference Exchange Rate observed by on the Start Date
in accordance with the Settlement Rate Option.

The “MXN Reference Exchange
Rate” is the spot exchange rate for the Mexican Peso quoted against the U.S.
Dollar expressed as the number of Mexican Pesos per one U.S. Dollar.

The “Continuously Observed
MXN Rate” is, at any time on any day during the Observation Period, the most
recent traded MXN Reference Exchange Rate observed on the continuous trading
Reuters DealingLink Spot Dealing System (subject to the occurrence of a
Disruption Event or a Continuous Observation Unavailability Event).

The “MXN Reference Range” is
the range from (but excluding) the MXN Range Lower Boundary to (but excluding)
the MXN Range Upper Boundary.

The “MXN Range Lower
Boundary” is 10.2502, equal to the MXN Initial Fixing minus 0.5500.

The “MXN Range Upper
Boundary” is 11.3002, equal to the MXN Initial Fixing plus 0.5000.

The “MXN Initial Fixing” is
10.8002, which is the MXN Reference Exchange Rate observed by on the Start Date
in accordance with the Settlement Rate Option.

If a Disruption Event occurs with respect to a Reference
Currency on any day during the Observation Period to but excluding the earlier
of (a) 10:00 a.m. EST on the End Date and (b) the time on any day at which
either the Continuously Observed EUR Rate first trades outside the EUR
Reference Range (or on either the EUR Range Lower Boundary or EUR Range Upper
Boundary) or the Continuously Observed MXN Rate first trades outside the MXN
Reference Range (or on either the MXN Range Lower Boundary or MXN Range Upper
Boundary), and for so long as such Disruption Event is continuing, the
Continuously Observed EUR Rate or Continuously Observed MXN Rate, as
applicable, for the affected Reference Currency for each such day will be a
single EUR Reference Exchange Rate or MXN Reference Exchange Rate, as
applicable, determined by the Calculation Agent in accordance with the Fallback
Rate Observation Methodology.

A “Disruption Event” means any of the following events as determined in
good faith by the Calculation Agent:

(A)          the
occurrence and/or existence of an event on any day that has the effect of
preventing or making impossible the conversion of either of the Reference
Currencies into U.S. Dollars through customary legal channels; or

(B)           the
occurrence of any event causing either the EUR Reference Exchange Rate or the
MXN Reference Exchange Rate to be split into dual or multiple currency exchange
rates.

 3
 

 

If a Continuous Observation Unavailability Event occurs
with respect to a Reference Currency on any day during the Observation Period
to but excluding the earlier of (a) 10:00 a.m. EST on the End Date and (b) the
time on any day at which the Continuously Observed EUR Rate first trades
outside the EUR Reference Range (or on either the EUR Range Lower Boundary or
EUR Range Upper Boundary) or the Continuously Observed MXN Rate first trades
outside the MXN Reference Range (or on either the MXN Range Lower Boundary or
MXN Range Upper Boundary), and for so long as such Continuous Observation
Unavailability Event is continuing, the Continuously Observed EUR Rate or the
Continuously Observed MXN Rate, as applicable, for the affected Reference
Currency for each such day will be a single daily EUR Reference Exchange Rate
or MXN Reference Exchange Rate, as applicable, determined by the Calculation
Agent in accordance with the Settlement Rate Option on that day (subject to the
occurrence of a Settlement Rate Option Unavailability Event).

A “Continuous Observation Unavailability Event”
means, as determined in good faith by the Calculation Agent, (a) with
respect to EUR, the Continuously Observed EUR Rate being unavailable, or the
occurrence of an event (other than an event constituting a Disruption Event)
that generally makes it impossible to obtain the Continuously Observed EUR
Rate, on the EBS Spot Dealing System; and (b) with respect to MXN, the
Continuously Observed MXN Rate being unavailable, or the occurrence of an event
(other than an event constituting a Disruption Event) that generally makes it
impossible to obtain the Continuously Observed MXN Rate, on the Reuters
DealingLink Spot Dealing System.

If a Settlement
Rate Option Unavailability Event is in effect on any day during the Observation
Period on which the EUR Reference Exchange Rate or MXN Reference Exchange Rate
is to be observed in accordance with the Settlement Rate Option pursuant to a
Continuous Observation Unavailability Event, as described above, the
Calculation Agent will determine the EUR Reference Exchange Rate or MXN
Reference Exchange Rate, as applicable, in accordance with the Fallback Rate
Observation Methodology.

A “Settlement
Rate Option Unavailability Event” means, as determined in good faith by the
Calculation Agent, the EUR Reference Exchange Rate or the MXN Reference
Exchange Rate, as applicable, being unavailable, or the occurrence of an event
(other than an event constituting a Disruption Event) that generally makes it
impossible to obtain the EUR Reference Exchange Rate or the MXN Reference
Exchange Rate, as applicable, in accordance with the Settlement Rate Option on
such day.

A “Valuation Business Day,” with respect to the Euro, means
any day, other than a Saturday or Sunday, that is neither a legal holiday nor a
day on which commercial banks are authorized or required by law, regulation or
executive order to close (including for dealings in foreign exchange in
accordance with the practice of the foreign exchange market) in New York.  A Valuation Business Day, with respect to the
Mexican Peso, means a business day (including for dealings in foreign exchange
in accordance with the market practice of the foreign exchange market) in
Mexico City, Mexico.

The “Settlement
Rate Option” for the EUR Reference Exchange Rate is the U.S. Dollar/Euro
official fixing rate, expressed as the amount of U.S. Dollars per one Euro, for
settlement in two business days reported by the Federal Reserve Bank of New
York which 

 4
 

 

appears on Reuters Screen 1FED to the right of the
caption “EUR” at approximately 10:00 a.m. New York time, on the Start Date or such other
relevant date.

The “Settlement Rate Option” for the MXN Reference Exchange
Rate is the Mexican Peso/U.S. Dollar official fixing rate, expressed as the
amount of Mexican Pesos per one U.S. Dollar, for settlement in two business
days reported by Banco de Mexico which appears on Reuters Screen MEX01 Page
under the heading “USDMXNFIX=“ at the close of business in Mexico City on the Start Date or such other
relevant date.

The “Fallback Rate Observation Methodology” means that the Reference Exchange Rate, Settlement
Rate or other rate, as specified in the applicable pricing supplement, in
respect of a reference currency will equal the noon buying rate in New York for
cable transfers in foreign currencies as announced by the Federal Reserve Bank
of New York for customs purposes (the “Noon Buying Rate”) on the relevant
Valuation Date or such other date specified in the applicable pricing
supplement. If the Noon Buying Rate is not announced on that date, the
Reference Exchange Rate, Settlement Rate or other rate for such Reference
Currency will be calculated on the basis of the arithmetic mean of the applicable
spot quotations received by the Calculation Agent at approximately
10:00 a.m., New York City time, on the Valuation Business Day next
succeeding the Valuation Date or such other date specified in the applicable
pricing supplement, for the purchase or sale for deposits in the Reference
Currency by the New York offices of three leading banks engaged in the
interbank market (selected in the sole discretion of the Calculation Agent)
(the “Reference Banks”). If fewer than three Reference Banks provide spot quotations,
then the Reference Exchange Rate, Settlement Rate or other rate, as applicable,
will be calculated on the basis of the arithmetic mean of the applicable spot
quotations received by the Calculation Agent at approximately 10:00 a.m.,
New York City time, on the relevant date from two Reference Banks (selected in
the sole discretion of the Calculation Agent), for the purchase or sale for
deposits in the Reference Currency. If these spot quotations are available from
only one Reference Bank, then the Calculation Agent, in its sole discretion,
will determine whether that quotation is reasonable to be used. If no spot
quotation is available, then the Reference Exchange Rate, Settlement Rate or
other rate, as applicable, for such Reference Currency will be determined by
the Calculation Agent in good faith and in a commercially reasonable manner.

A “Business Day”,
notwithstanding any provision in the Indenture, is any day that is not is not a
Saturday or Sunday and that is not a day on which banking institutions in New
York City generally are authorized or obligated by law or executive order to be
closed.

The “Calculation Agent” means
Lehman Brothers Inc.

Except as provided below,
the Additional Amount, if any, may, at the option of the Company, be made by check
mailed to the person entitled thereto at such person’s address as it appears on
the registry books of the Company.

Payment of any Additional
Amount will be made in immediately available funds in accordance with the
normal procedures of the Trustee (or any duly appointed Paying Agent).

The Company will pay any
administrative costs imposed by banks in making payments in immediately
available funds, but any tax, assessment or governmental charge 

 5
 

 

imposed upon payments hereunder, including, without
limitation, any withholding tax, will be borne by the Holder hereof.

References herein to “U.S.
dollars” or “U.S.$” or “$” or “USD” are to the coin or currency of the United
States as at the time of payment is legal tender for the payment of public and
private debts.

REFERENCE IS HEREBY MADE TO
THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF.  SUCH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed by the Trustee
under the Indenture.

 6
 

 

IN WITNESS WHEREOF, Lehman Brothers Holdings Inc. has
caused this instrument to be signed by its Chairman of the Board, its
President, its Vice Chairman, its Chief Financial Officer, one of its Vice
Presidents or its Treasurer, by manual or facsimile signature under its
corporate seal, attested by its Secretary or one of its Assistant Secretaries
by manual or facsimile signature.

Dated:  December 27, 2006

	
  [SEAL]

  	
  LEHMAN BROTHERS HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Andrew M.W. Yeung

  
	
   

  	
   

  	
  Title:   Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
  Name: Jin Lee

  
	
   

  	
   

  	
  Title:   Assistant Secretary

  

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the
Securities of the series designated herein referred to in the within-mentioned
Indenture.

CITIBANK, N.A.

   as Trustee

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  

 

 7

 

[REVERSE
OF NOTE]

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES, SERIES I
DOUBLE CONDITIONAL RANGE NOTE
DUE JUNE 27, 2007

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I, Double
Conditional Range Note (herein called the “Notes”).  The Notes are one of an
indefinite number of series of debt securities of the Company (collectively,
the “Securities”) issued or issuable under and pursuant to an indenture dated
as of September 1, 1987, as amended and supplemented (the “Indenture”), duly
executed and delivered by the Company and Citibank, N.A., as Trustee (herein
called the “Trustee”), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the
Company and the holders of the Securities. 
The separate series of Securities may be issued in various aggregate
principal amounts, may mature at different times, may bear interest (if any) at
different rates, may be subject to different redemption provisions or
repurchase rights (if any), may be subject to different sinking, purchase or
analogous funds (if any), may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided.

Section 2.  Principal
Amount for Indenture Purposes.  For
the purpose of determining whether Holders of the requisite amount of Notes of
this series outstanding under the Indenture have made a demand, given a notice
or waiver or taken any other action, the principal amount of this Note will be
deemed to be the principal amount of this Note then outstanding.

Section 3.  Modification
and Waivers.  The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
Holders of not less than 66-2/3% in aggregate principal amount of each series
of the Securities at the time Outstanding to be affected, evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
holders of the Securities of all such series; provided, however, that no such
supplemental indenture shall, among other things, (i) change the fixed maturity
of any Security, or reduce the Additional Amount or the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon
or reduce any premium or other amount payable on redemption, or make the
Additional Amount or the principal amount thereof, premium or other amount
payable, if any, or interest thereon payable in any coin or currency other than
that herein above provided, without the consent of the Holder of each Security
so affected, or (ii) change the place of payment on any Security, or impair the
right to institute suit for payment on any Security, or reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of each
Security so affected.  It is also
provided in the Indenture that, prior to any declaration accelerating the maturity
of any series of Securities, the holders of a majority in aggregate principal
amount of the Securities of such series 

 

Outstanding may on behalf of the holders of all the
Securities of such series waive any past default or Event of Default under the
Indenture with respect to such series and its consequences, except a default in
the payment of interest, if any, on the Additional Amount or the principal
amount, or premium, if any, on any of the Securities of such series, or in the
payment of any sinking fund installment or analogous obligation with respect to
Securities of such series.  Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future holders and owners of this Note and any
Notes of this series which may be issued in exchange or substitution herefor,
irrespective of whether or not any notation thereof is made upon this Note or
such other Notes of this series.

Section 4.  Obligations
Unconditional.  No reference herein
to the Indenture and no provisions of this Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the Additional Amount or the principal amount on this Note at the place,
at the respective times, at the rate, and in the coin or currency herein
prescribed.

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

Section 6.  Authorized
Form and Denominations.  The Notes of
this series are issuable in registered form, without coupons.  Each Note will be issued initially as either
a Global Security or a Certificated Note, at the option of the Company, in
denominations of $1,000 or whole multiples of $1,000, either at the office or
agency to be designated and maintained by the Company for such purpose in the
Borough of Manhattan, New York City, pursuant to the provisions of the
Indenture or at any of such other offices or agencies as may be designated and
maintained by the Company for such purpose pursuant to the provisions of the
Indenture, and in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, except for any tax or
other governmental charges imposed in connection therewith.  Notes of this series are exchangeable for a
like aggregate principal amount of Notes of this series of a different authorized
denomination, except that Global Securities will not be exchangeable for
Certificated Notes of this series.

Section 7.  Registration
of Transfer.  As provided in the
Indenture and subject to certain limitations as therein set forth, the transfer
of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer, at the Corporate Trust Office or agency in a
Place of Payment for this Note, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar requiring such written instrument of transfer duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

If at any time the Depository notifies the Company
that it is unwilling or unable to continue as Depository or if at any time the
Depository shall no longer be eligible under the Indenture, the Company shall
appoint a successor Depository.  If a
successor Depository for the Notes of this series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company will issue, and the Trustee will 

 

authenticate and deliver, Notes of this series in
definitive form in an aggregate principal amount equal to the principal amount
of this Note.

No service charge shall
be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the person in whose name this Note is registered as the owner
hereof for all purposes, and neither the Company nor the Trustee nor any agent
of the Company or of the Trustee shall be affected by any notice to the
contrary.

Section 8.  Events
of Default.  If an Event of Default
with respect to Notes of this series shall occur and be continuing, the amount
that may be declared due and payable upon any acceleration of the notes will be
determined by the calculation agent and will equal, for each note, the
principal amount plus the Additional Amount (if any) deemed to have
accrued for the period from and including the Start Date to but excluding the
date of early repayment calculated on the basis of a 360-day year consisting of
12 months of 30 days each, and, in the case of an incomplete month, the number
of days elapsed.  If a bankruptcy proceeding is commenced in respect of
the Company, the claim of the beneficial owner of a note will be capped at the
principal amount plus the Additional Amount (if any) deemed to have
accrued for the period from and including the Start Date to but excluding the
date of early repayment calculated on the basis of a 360-day year consisting of
12 months of 30 days each, and, in the case of an incomplete month, the number
of days elapsed.

Section 9.  No
Recourse Against Certain Persons.  No
recourse for the payment of the Additional Amount or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any Indenture
supplemental thereto or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

Section 10.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.Exhibit
10.1

SEPARATION
AGREEMENT AND RELEASE

This Separation
Agreement and Release (“Agreement”) is made by and between Andrew J. Dale (“Employee”)
and The Outdoor Channel, Inc. (“Company”) (collectively referred to as the “Parties”
or individually referred to as a “Party”).

WHEREAS,
Employee is employed by the Company;

WHEREAS, the Company and Employee have entered into a Stock Option
Agreement, dated December 10, 1997, granting Employee the option to purchase
shares of common stock of Outdoor Channel Holdings, Inc. (“Holdings”) subject
to the terms and conditions of the Company’s 1997 Stock Option Plan and the
Stock Option Agreement, and Holdings and Employee have entered into Stock
Option Award Agreements, dated April 25, 2005, granting Employee the option to
purchase shares of Holdings’ common stock subject to the terms and conditions
of Holdings’ 2004 Long-Term Incentive Plan and the Stock Option Award
Agreements (the Stock Option Agreement, Stock Option Award Agreements, and the
Company’s 1997 Stock Option Plan and Holdings’ 2004 Long-Term Incentive Plan
collectively referred to herein as the “Stock Agreements”), the underlying
shares to be issued upon the exercise of such options currently registered with
the United States Securities and Exchange Commission on Form S-8s and the
Company’s agreement to use its reasonable efforts to maintain, or cause to be
maintained, such registration statements;

WHEREAS, Holdings
and Employee have entered into an Indemnification Agreement dated on or about
September 13, 2004 (the “Indemnification Agreement”);

WHEREAS, Employee
will separate from employment with the Company effective at the close of
business on January 2, 2007 (the “Separation Date”);

WHEREAS, the
Company and Employee wish to provide for an orderly transition of Employee’s
duties and responsibilities from the present time until the Separation Date
(the “Transition Period”), and Employee will reasonably cooperate with the
Company, make himself reasonably available, and otherwise provide services
during the Transition Period to facilitate the transition of his duties and
responsibilities; and

WHEREAS, the
Parties wish to resolve any and all disputes, claims, complaints, grievances,
charges, actions, petitions, and demands that the Employee may have against the
Company and any of the Releasees as defined below, including, but not limited
to, any and all claims arising out of, or in any way related to Employee’s
employment with, or separation from, the Company;

NOW, THEREFORE, in
consideration of the mutual promises made herein, the Company and Employee
hereby agree as follows:

1.             Consideration.

a.             Payment.  The Company agrees to pay Employee a total of
Three Hundred Thousand Dollars ($300,000), less applicable withholding, in the
form of bi-weekly payments for twelve (12) months from the first regular
payroll date following the Separation Date in accordance with the Company’s
regular payroll practices.

 1
 

 

b.             Consulting.  Commencing on January 2, 2007, Employee shall
make himself available to serve as a consultant to the Company through January
2, 2008, pursuant to the written consulting agreement (the “Consulting
Agreement”) attached hereto as Exhibit A.

c.             COBRA.  The Company shall reimburse Employee for the
payments Employee makes for COBRA coverage for a period of thirty-six (36)
months, or until Employee has secured other employment and becomes eligible for
health insurance benefits, whichever occurs first provided Employee timely
elects and pays for COBRA coverage. 
COBRA reimbursements shall be made by the Company to Employee consistent
with the Company’s normal expense reimbursement policy, provided that Employee
submits documentation to the Company substantiating his payments for COBRA
coverage, with such reimbursement occurring within 30 days of Employee’s submission
of said documentation.

d.             Life Insurance.  The Company shall reimburse Employee for the
payments Employee makes for life insurance coverage through December 31,
2009.  Such reimbursements shall be made
by the Company to Employee consistent with the Company’s normal expense
reimbursement policy, provided that Employee submits documentation to the
Company substantiating his payments for life insurance coverage, with such
reimbursement occurring within 30 days of Employee’s submission of said
documentation.

e.             Frequent-Flier
Miles.  Employee shall retain the
frequent-flier miles that were placed in his Northwest Airlines and American
Airlines frequent-flier accounts from transactions on the Company’s credit
card.

f.              Letter of
Recommendation.  Upon request, the
Company agrees to use its reasonable efforts to provide Employee with a letter
of recommendation signed by Ray Miller substantially in the form attached
hereto as Exhibit B, for use by Employee in seeking employment.

g.             Legal Fees.  The Company shall reimburse Employee up to
Ten Thousand Dollars ($10,000) for the fees associated with his consultation
with an attorney regarding Employee’s separation from the Company and his
attorney’s review and negotiation of this Agreement and the Consulting Agreement.  Such reimbursement shall be made by the
Company to Employee consistent with the Company’s normal expense reimbursement
policy, provided that Employee submits documentation to the Company
substantiating his payments for fees incurred by his attorney’s review of this
Agreement and the Consulting Agreement.

2.             Benefits.  Employee’s health insurance benefits shall
cease on January 31, 2007, subject to Employee’s right to continue his health
insurance and any other insurance-related benefits under COBRA.  Employee’s participation in all benefits and
incidents of employment, including, but not limited to, the accrual of bonuses,
vacation, and paid time off, will cease as of the Separation Date.

3.             Payment of Salary.  Employee acknowledges and represents that,
other than the consideration set forth in this Agreement, the Company will have
paid by the Separation Date all salary, wages, bonuses, accrued vacation/paid
time off, housing allowances, relocation costs, interest, severance,
outplacement costs, fees, commissions, and any and all other benefits and
compensation due to Employee.

 2
 

 

4.             Release of Claims.  Employee agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed
to Employee by the Company, Outdoor Channel Holdings, Inc., and their current
and former officers, directors, employees, agents, investors, attorneys,
shareholders, administrators, affiliates, divisions, and subsidiaries, and
predecessor and successor corporations and assigns (the “Releasees”).  Employee, on his own behalf, and on behalf of
his respective heirs, family members, executors, agents, and assigns, hereby
and forever releases the Releasees from, and agrees not to sue concerning, or
in any manner to institute, prosecute or pursue, any claim, complaint, charge,
duty, obligation, or cause of action relating to any matters of any kind,
whether presently known or unknown, suspected or unsuspected, that Employee may
possess against any of the Releasees arising from any omissions, acts, facts,
or damages that have occurred up until and including the Effective Date of this
Agreement, including, without limitation:

a.             any and all claims
relating to or arising from Employee’s employment relationship with the Company
and the termination of that relationship;

b.             any and all claims
relating to, or arising from, Employee’s right to purchase, or actual purchase
of shares of stock of the Company, including, without limitation, any claims
for fraud, misrepresentation, breach of fiduciary duty, breach of duty under
applicable state corporate law, and securities fraud under any state or federal
law;

c.             any and all claims
for wrongful discharge of employment; termination in violation of public
policy; discrimination; harassment; retaliation; breach of contract, both
express and implied; breach of covenant of good faith and fair dealing, both
express and implied; promissory estoppel; negligent or intentional infliction
of emotional distress; fraud; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment;
conversion; workers’ compensation and disability benefits;

d.             any and all claims
for violation of any federal, state, or municipal statute, including, but not
limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights
Act of 1991; the Americans with Disabilities Act of 1990; the Fair Labor
Standards Act; the Fair Credit Reporting Act; the Age Discrimination in
Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security
Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family
and Medical Leave Act, except as prohibited by law; the Sarbanes-Oxley Act of
2002; the California Family Rights Act; the California Labor Code, except as
prohibited by law; the California Workers’ Compensation Act, except as
prohibited by law; and the California Fair Employment and Housing Act;

e.             any and all claims
for violation of the federal or any state constitution;

f.              any and all claims
arising out of any other laws and regulations relating to employment or
employment discrimination;

g.             any claim for any
loss, cost, damage, or expense arising out of any dispute over the
non-withholding or other tax treatment of any of the proceeds received by
Employee as a 

 3
 

 

result of this Agreement;
and

h.             any and all claims
for attorneys’ fees and costs.

Employee agrees that the
release set forth in this section shall be and remain in effect in all respects
as a complete general release as to the matters released.  This release does not extend to any
obligations incurred under this Agreement. 
This release does not release claims that cannot be released as a matter
of law, including, but not limited to, claims under Division 3, Article 2 of
the California Labor Code (which includes California Labor Code section 2802
regarding indemnity for necessary expenditures or losses by employee) and
claims prohibited from release as set forth in California Labor Code section
206.5 (specifically “any claim or right on account of wages due, or to become
due, or made as an advance on wages to be earned, unless payment of such wages
has been made”).

5.             Acknowledgment of
Waiver of Claims under ADEA. 
Employee acknowledges that he is waiving and releasing any rights he may
have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that
this waiver and release is knowing and voluntary.  Employee agrees that this waiver and release
does not apply to any rights or claims that may arise under the ADEA after the
Effective Date of this Agreement. 
Employee acknowledges that the consideration given for this waiver and
release is in addition to anything of value to which Employee was already
entitled.  Employee further acknowledges
that he has been advised by this writing that: (a) he should consult with an
attorney prior to executing this Agreement; (b) he has twenty-one (21)
days within which to consider this Agreement; (c) he has seven (7) days
following his execution of this Agreement to revoke this Agreement; (d) this
Agreement shall not be effective until after the revocation period has expired;
and (e) nothing in this Agreement prevents or precludes Employee from
challenging or seeking a determination in good faith of the validity of this
waiver under the ADEA, nor does it impose any condition precedent, penalties,
or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement
and returns it to the Company in less than the 21-day period identified above,
Employee hereby acknowledges that he has freely and voluntarily chosen to waive
the time period allotted for considering this Agreement.

6.             California Civil
Code Section 1542.  Employee
acknowledges that he has been advised to consult with legal counsel and is
familiar with the provisions of California Civil Code Section 1542, a
statute that otherwise prohibits unknown claims, 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.

Employee, being
aware of said code section, agrees to expressly waive any rights he may have
thereunder, as well as under any other statute or common law principles of
similar effect.

7.             No Pending or
Future Lawsuits.  Employee represents
that he has no lawsuits, claims, or actions pending in his name, or on behalf
of any other person or entity, against the 

 4
 

 

Company or any of the
other Releasees.  Employee also
represents that he does not intend to bring any claims on his own behalf or on
behalf of any other person or entity against the Company or any of the other
Releasees.

8.             Application for
Employment.  Employee understands and
agrees that, as a condition of this Agreement, Employee shall not be entitled
to any employment with the Company, and Employee hereby waives any right, or
alleged right, of employment or re-employment with the Company.  Employee further agrees not to apply for
employment with the Company.

9.             Trade Secrets and
Confidential Information/Company Property. 
Employee agrees that he/she will not disclose the Company’s trade
secrets and confidential and proprietary information.  Employee’s signature below constitutes
his/her certification under penalty of perjury that he/she has returned all
documents and other items provided to Employee by the Company, developed or
obtained by Employee in connection with his/her employment with the Company, or
otherwise belonging to the Company, including the laptop computer, personal digital
assistant, and Blackberry device provided to Employee by the Company.

10.           No Cooperation.  Employee agrees not to act in any manner that
might damage the business of the Company. 
Employee further agrees that he will not knowingly encourage, counsel,
or assist any attorneys or their clients in the presentation or prosecution of
any disputes, differences, grievances, claims, charges, or complaints by any
third party against any of the Releasees, unless under a subpoena or other
court order to do so.  Employee agrees
both to immediately notify the Company upon receipt of any such subpoena or
court order, and to furnish, within three (3) business days of its receipt, a
copy of such subpoena or other court order. 
Employee further agrees that he will not knowingly counsel or assist any
attorneys or their clients in the presentation or prosecution of any disputes,
differences, grievances, claims, charges, or complaints by any third party
against the Company or any of the Releasees, unless under a subpoena or other
court order to do so or as related directly to the ADEA waiver in this
Agreement.

11.           Mutual
Non-Disparagement.  Employee agrees
to refrain from any disparagement, defamation, libel, or slander of any of the
Releasees, and agrees to refrain from any tortious interference with the
contracts and relationships of any of the Releasees.  The Company also agrees to refrain from any
disparaging statements about Employee. 
Employee understands that the Company’s obligations under this section
extend only to the Company’s current executive officers and members of its
Board of Directors and only for so long as each officer or member is an
employee or Director of the Company. 
Employee shall direct any inquiries by potential future employers to the
Company’s human resources department, which shall use its best efforts to
provide only the Employee’s last position and dates of employment.  The Parties further agree that the Company
will include in an upcoming Form 8-K a mutually acceptable provision regarding
Employee’s separation from the Company and his consulting agreement with the
Company.

12.           Breach.  Employee acknowledges and agrees that any
material breach of this Agreement, unless such breach constitutes a legal
action by Employee challenging or seeking a determination in good faith of the
validity of the waiver herein under the ADEA, shall entitle the Company
immediately to cease providing the consideration provided to Employee under
this Agreement, except as provided by law. 
Except as provided by law, Employee shall also be responsible to the
Company for all costs, attorneys’ fees, and any and all damages incurred by the

 5
 

 

Company in
(a) enforcing Employee’s obligations under this Agreement, including the
bringing of any action to recover the consideration, and (b) defending
against a claim or suit brought or pursued by Employee in violation of the
terms of this Agreement.

13.           No Admission of
Liability.  Employee understands and
acknowledges that this Agreement constitutes a compromise and settlement of any
and all actual or potential disputed claims. 
No action taken by the Company hereto, either previously or in
connection with this Agreement, shall be deemed or construed to be (a) an
admission of the truth or falsity of any potential claims or (b) an
acknowledgment or admission by the Company of any fault or liability whatsoever
to Employee or to any third party.

14.           Costs.  Except as provided in section 1 above, the
Parties shall each bear their own costs, attorneys’ fees, and other fees
incurred in connection with the preparation of this Agreement.

15.           ARBITRATION.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES
ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF
THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SAN DIEGO
COUNTY, BEFORE JAMS, PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES &
PROCEDURES (“JAMS RULES”).  THE
ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH
CALIFORNIA LAW, INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE
ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE
OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY
JURISDICTION.  TO THE EXTENT THAT THE
JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE.  THE ARBITRATOR MAY GRANT INJUNCTIONS AND
OTHER RELIEF IN SUCH DISPUTES.  THE
DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE
PARTIES TO THE ARBITRATION.  THE PARTIES
AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO
INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE
ARBITRATION AWARD.  THE ARBITRATOR SHALL
AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED
BY LAW.  THE PARTIES HEREBY AGREE TO
WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW
BY A JUDGE OR JURY.  NOTWITHSTANDING THE
FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE
RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER
THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT
AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE.

16.           Tax Consequences.  The Company makes no representations or
warranties with respect to the tax consequences of the payments provided to
Employee or made on his behalf under the terms of this Agreement.  Employee agrees and understands that he is
responsible for payment, if any, of local, state, and/or federal taxes on the
payments made hereunder by the Company and any penalties or assessments
thereon.  Employee further agrees to
indemnify and hold the Company harmless from any claims, demands, deficiencies,
penalties, interest, assessments, executions, judgments, or recoveries by any
government agency against the Company for any amounts claimed due on account of
(a) Employee’s failure to pay, or Employee’s delayed payment of, federal or
state 

 6
 

 

taxes, or (b) damages
sustained by the Company by reason of any such claims, including attorneys’
fees and costs.

17.           Authority.  The Company represents and warrants that the
undersigned has the authority to act on behalf of the Company and to bind the
Company and all who may claim through it to the terms and conditions of this
Agreement.  Employee represents and
warrants that he has the capacity to act on his own behalf and on behalf of all
who might claim through him to bind them to the terms and conditions of this
Agreement.  Each Party warrants and
represents that there are no liens or claims of lien or assignments in law or
equity or otherwise of or against any of the claims or causes of action
released herein.

18.           No Representations.  Employee represents that he has had an
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement.  Employee has not relied upon any
representations or statements made by the Company that are not specifically set
forth in this Agreement.

19.           Severability.  In the event that any provision or any
portion of any provision hereof becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this
Agreement shall continue in full force and effect without said provision or
portion of provision.

20.           Attorneys’ Fees.  Except with regard to a legal action
challenging or seeking a determination in good faith of the validity of the
waiver herein under the ADEA, in the event that either Party brings an action
to enforce or effect its rights under this Agreement, the prevailing Party
shall be entitled to recover its costs and expenses, including the costs of
mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees
incurred in connection with such an action.

21.           Entire Agreement.  This Agreement represents the entire
agreement and understanding between the Company and Employee concerning the
subject matter of this Agreement and Employee’s employment with and separation
from the Company and the events leading thereto and associated therewith, and
supersedes and replaces any and all prior agreements and understandings
concerning the subject matter of this Agreement and Employee’s relationship
with the Company, with the exception of
the Stock Agreements and the Indemnification Agreement.  The Parties agree that this Agreement shall
survive a material change in ownership or control of the Company.

22.           No Oral Modification.  This Agreement may only be amended in a
writing signed by Employee and the Company’s President.

23.           Governing Law.  This Agreement shall be governed by the laws
of the State of California, without regard for choice-of-law provisions.

24.           Effective Date.  This Agreement will become effective after
the Parties have signed this Agreement and after seven (7) days have passed
since Employee signed the Agreement, assuming it is not revoked by Employee before
that date (the “Effective Date”).

25.           Counterparts.  This Agreement may be executed in
counterparts and by facsimile, 

 7
 

 

and each
counterpart and facsimile shall have the same force and effect as an original
and shall constitute an effective, binding agreement on the part of each of the
undersigned.

26.           Voluntary Execution
of Agreement.  Employee understands
and agrees that he executed this Agreement voluntarily, without any duress or
undue influence on the part or behalf of the Company or any third party.  Employee acknowledges that:

(a)           he has read this
Agreement;

(b)                                 he
has been represented in the preparation, negotiation, and execution of this
Agreement by legal counsel of his own choice or has elected not to retain legal
counsel;

(c)                                  he
understands the terms and consequences of this Agreement and of the releases it
contains; and

(d)           he
is fully aware of the legal and binding effect of this Agreement.

IN WITNESS
WHEREOF, the Parties have executed this Agreement on the respective dates set
forth below.

	
  

  	
   

  	
   

  	
  ANDREW J. DALE, an individual

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated: 

  	
  12/21/06

  	
   

  	
  /s/  Andrew J. Dale

  
	
   

  	
   

  	
   

  	
  Andrew J. Dale

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  THE OUTDOOR CHANNEL, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated: 

  	
  12/21/06

  	
   

  	
  By 

  	
  /s/ Perry Massie

  
	
   

  	
   

  	
   

  	
  Perry Massie

  	
   

  
	
   

  	
   

  	
   

  	
  Co-President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Approved as to Form:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated: 

  	
  12/21/06

  	
   

  	
  By:

  	
  /s/ Robert M. Caietti

  
	
   

  	
   

  	
   

  	
  Robert M. Caietti

  	
   

  
	
   

  	
   

  	
   

  	
  WALTERS & CAIETTI A.P.C.

  	
   

  
	
   

  	
   

  	
   

  	
  Counsel for Andrew J. Dale

  	
   

  
							

 

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]