Document:

Exhibit
10.1

KENEXA CORPORATION

2006 EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated,
effective October 17, 2006)

1.             Purpose.

The Kenexa Corporation 2006 Employee Stock Purchase
Plan (the “Plan”) is intended to encourage and facilitate the purchase of
Shares of the common stock of Kenexa Corporation (the “Company”) by employees
of the Company and any Participating Companies, thereby providing employees
with a personal stake in the Company and a long range inducement to remain in
the employ of the Company and Participating Companies.  It is the intention of the Company that the
Plan qualify as an “employee stock purchase plan” within the meaning of
Section 423 of the Code.

2.             Definitions.

a.             “Account” means a bookkeeping account
established by the Committee on behalf of a Participant to hold Payroll
Deductions.

b.             “Approved Leave of Absence” means a leave
of absence that has been approved by the applicable Participating Company in
such a manner as the Board may determine from time to time.

c.             “Board” means the Board of Directors of
the Company.

d.             “Business Day” means a day on which
national stock exchanges and the NASDAQ System are open for trading.

e.             “Code” means the Internal Revenue Code of
1986, as amended.

f.              “Committee” means the Committee appointed
pursuant to Section 14 of the Plan.

g.             “Company” means Kenexa Corporation.

h.             “Compensation” means the regular base
salary paid to a Participant by one or more Participating Company during such
individual’s period of participation in the Plan, plus any pre-tax
contributions made by the Participant to any cash-or-deferred arrangement that
meets the requirements of section 401(k) of the Code or any cafeteria
benefit program that meets the requirements of section 125 of the Code,
now or hereafter established by any Participating Company.  The following items of compensation shall not
be included in Compensation: (i) all overtime payments, bonuses,
commissions (other than those functioning as base salary equivalents),
profit-sharing distributions and other incentive-type payments and
(ii) any and all contributions (other than contributions subject to
sections 401(k) and 125 of the Code) made on the Participant’s behalf by a
Participating Company under any employee benefit or welfare plan now or
hereafter established..

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i.              “Election Form” means the form acceptable
to the Committee which an Employee shall use to make an election to purchase
Shares through Payroll Deductions pursuant to the Plan.

j.              “Eligible Employee” means an Employee who
meets the requirements for eligibility under Section 3 of the Plan.

k.             “Employee” means any person, including an
officer, whose wages and other salary is required to be reported by a
Participating Company on Internal Revenue Service Form W-2 for federal
income tax purposes.

l.              “Enrollment Date” means, with respect to
a given Offering Period, a date established from time to time by the Committee
or the Board, which shall not be later than the first day of such Offering
Period.

m.            “Fair Market Value” means the closing price
per Share on the principal national securities exchange on which the Shares are
listed or admitted to trading or, if not listed or traded on any such exchange,
on the National Market System of the National Association of Securities Dealers
Automated Quotation System (“NASDAQ”), or if not listed or traded on any such
exchange or system, the fair market value as reasonably determined by the
Board, which determination shall be in accordance with the standards set forth
in Treasury Regulation §1.421-1(e)(2) and shall be conclusive.

n.             “Five Percent Owner” means an Employee
who, with respect to a Participating Company, is described in
Section 423(b) of the Code.

o.             “Offering” means an offering of Shares to
Eligible Employees pursuant to the Plan.

p.             “Offering Commencement Date” means the
first Business Day on or after each December 1, March 1, June 1 or
September 1 of each year.

q.             “Offering Period” means the period
extending from an Offering Commencement Date through the following Offering
Termination Date.

r.              “Offering Termination Date” means the
earlier of the last Business Day in the period ending each February 28 (or
February 29, if applicable), May 31, August 31 and November 30
immediately following an Offering Commencement Date.

s.             “Option Price” means, with respect to a
particular Offering Period, an amount equal to 95% of the Fair Market Value per
Share determined on the Offering Termination Date, or if such date is not a
trading day, then on the next trading day thereafter.

t.              “Participant” means an Employee who meets
the requirements for eligibility under Section 3 of the Plan and who has
timely delivered an Election Form to the Committee.

u.             “Participating Company” means, as
identified on Schedule A, the Company and subsidiaries of the Company,
within the meaning of Section 424(f) of the Code, if any, that are

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approved by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

v.             “Payroll Deductions” means amounts
withheld from a Participant’s Compensation pursuant to the Plan, as described
in Section 5 of the Plan.

w.            “Plan” means Kenexa Corporation 2006
Employee Stock Purchase Plan, as set forth in this document, and as may be
amended from time to time.

x.             “Plan Termination Date” means the earlier
of: (1) the Offering Termination Date for the Offering in which the
maximum number of Shares specified in Section 4 of the Plan have been
issued pursuant to the Plan; or (2) the date as of which the Board chooses
to terminate the Plan as provided in Section 15 of the Plan.

y.             “Shares” means shares of common stock of
the Company, $.01 par value per Share.

z.             “Successor-in-Interest” means the
Participant’s executor or administrator, or such other person or entity to whom
the Participant’s rights under the Plan shall have passed by will or the laws
of descent and distribution.

aa.           “Termination Form” means the form acceptable
to the Committee which an Employee shall use to withdraw from an Offering
pursuant to Section 8 of the Plan.

3.             Eligibility and
Participation.

a.             Initial Eligibility.  Except as provided in Section 3(b) of
the Plan, each individual who is an Employee on an Offering Commencement Date
shall be eligible to participate in the Plan with respect to the Offering that
commences on that date.

b.             Ineligibility.  An Employee shall not be eligible to
participate in the Plan if such Employee:

(1)           is a Five Percent Owner;

(2)           has not customarily worked more than
20 hours per week during a 24-consecutive-month period ending on the last
day of the month immediately preceding the effective date of an election to
purchase Shares pursuant to the Plan; or

(3)           is restricted from participating under
Section 3(d) of the Plan.

c.             Leave of Absence.  An Employee on an Approved Leave of Absence
shall be eligible to participate in the Plan, subject to the provisions of
Sections 5(d) and 8(d) of the Plan.  An Approved Leave of Absence shall be
considered active employment for purposes of Sections 3(b)(2) and 3(b)(3)
of the Plan.

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d.             Restrictions on Participation.  Notwithstanding any provisions of the Plan to
the contrary, no Employee shall be granted an option to participate in the Plan
if:

(1)           immediately after the grant, such Employee
would be a Five Percent Owner; or

(2)           such option would permit such Employee’s
rights to purchase stock under all employee stock purchase plans of the
Participating Companies which meet the requirements of Section 423(b) of
the Code to accrue at a rate which exceeds $25,000 in fair market value (as
determined pursuant to Section 423(b)(8) of the Code) for each calendar year
in which such option is outstanding.

e.             Commencement of Participation.  An Employee who meets the eligibility
requirements of Sections 3(a) and 3(b) of the Plan and whose participation
is not restricted under Section 3(d) of the Plan shall become a Participant
by completing an Election Form and filing it with the Committee on or before
the applicable Enrollment Date.  Payroll
Deductions for a Participant shall commence on the applicable Offering
Commencement Date when his or her authorization for Payroll Deductions becomes
effective, and shall end on the Plan Termination Date, unless sooner terminated
by the Participant pursuant to Section 8 of the Plan.  Notwithstanding the foregoing sentence, to the
extent necessary to comply with Section 423(b)(8) of the Code and
Section 3(d) of the Plan, a Participant’s payroll deductions may be
decreased to zero percent (0%) at any time during an Offering Period; provided,
that such Payroll Deductions shall recommence at the rate as provided in such
Participant’s Enrollment Form at the beginning of the first Offering Period
that is scheduled to end in the following calendar year, unless terminated by
the Participant as provided in Section 8 of the Plan.

4.             Shares Per Offering.

The Plan shall be implemented by a series of Offerings
that shall terminate on the Plan Termination Date.  Offerings shall be made with respect to
Compensation payable for each Offering Period occurring on or after adoption of
the Plan by the Board and ending with the Plan Termination Date.  Shares available for any Offering shall be the
difference between the maximum number of Shares that may be issued under the
Plan, as determined pursuant to Section 10(a) of the Plan, for all of the
Offerings, less the actual number of Shares purchased by Participants pursuant
to prior Offerings.  If the total number
of Shares for which options are exercised on any Offering Termination Date
exceeds the maximum number of Shares available, the Committee shall make a pro
rata allocation of Shares available for delivery and distribution in as nearly
a uniform manner as practicable, and as it shall determine to be fair and
equitable, and the unapplied Account balances shall be returned to Participants
as soon as practicable following the Offering Termination Date.

5.             Payroll Deductions.

a.             Amount of Payroll Deductions.  An Eligible Employee who wishes to
participate in the Plan shall file an Election Form (authorizing payroll
deductions) with the Committee prior to the applicable Enrollment Date.

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b.             Participants’ Accounts.  All Payroll Deductions with respect to a
Participant pursuant to Section 5(a) of the Plan shall commence on the
first payroll following the Enrollment Date and shall continue until terminated
by the Participant as provided in Section 8.  All Payroll Deductions will be credited to the
Participant’s Account under the Plan.  The
amounts collected from the Participant shall not be held in any segregated
account or trust fund and may be commingled with the general assets of the
Company and used for general corporate purposes.

c.             Changes in Payroll Deductions.  A Participant may discontinue his
participation in the Plan as provided in Section 8(a) of the Plan, but no
other change can be made during an Offering Period, including, but not limited
to, changes in the amount of Payroll Deductions for such Offering.  A Participant may change the amount of Payroll
Deductions for subsequent Offerings by giving written notice of such change to
the Committee on or before the applicable Enrollment Date for such Offering
Period.

d.             Leave of Absence.  A Participant who goes on an Approved Leave
of Absence before the Offering Termination Date after having filed an Election
Form with respect to such Offering may:

(1)           withdraw the balance credited to his or her
Account pursuant to Section 8(b) of the Plan;

(2)           discontinue contributions to the Plan but
remain a Participant in the Plan through the earlier of (i) the Offering
Termination Date or (ii) the close of business on the 90th day of such
Approved Leave of Absence unless such Employee shall have returned to regular
non-temporary employment before the close of business on such 90th day;

(3)           remain a Participant in the Plan during such
Approved Leave of Absence through the earlier of (i) the Offering
Termination Date or (ii) the close of business on the 90th day of such
Approved Leave of Absence unless such Employee shall have returned to regular
non-temporary employment before the close of business on such 90th day, and
continue the authorization for the Participating Company to make Payroll
Deductions for each payroll period out of continuing payments to such
Participant, if any.

6.             Granting of Options.

On each Offering Termination Date, each Participant
shall be deemed to have been granted an option to purchase a minimum of one
(1) Share and a maximum number of Shares that shall be a number of whole
Shares equal to the quotient obtained by dividing the balance credited to the
Participant’s Account as of the Offering Termination Date, by the Option Price.

7.             Exercise of Options.

a.             Automatic Exercise.  With respect to each Offering, a Participant’s
option for the purchase of Shares granted pursuant to Section 6 of the
Plan shall be deemed to have been exercised automatically on the Offering
Termination Date applicable to such Offering.

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b.             Fractional Shares and Minimum Number of
Shares.  Fractional Shares shall not
be issued under the Plan.  Amounts
credited to an Account remaining after the application of such Account to the
exercise of options for a minimum of one (1) full Share shall be credited
to the Participant’s Account for the next succeeding Offering, or, at the
Participant’s election, returned to the Participant as soon as practicable
following the Offering Termination Date, without interest.

c.             Transferability of Option.  No option granted to a Participant pursuant
to the Plan shall be transferable other than by will or by the laws of descent
and distribution, and no such option shall be exercisable during the
Participant’s lifetime other than by the Participant.

d.             Delivery of Certificates for Shares.  The Company shall deliver certificates for
Shares acquired on the exercise of options during an Offering Period as soon as
practicable following the Offering Termination Date.

8.             Withdrawals.

a.             Withdrawal of Account.  A Participant may elect to withdraw the
balance credited to the Participant’s Account by providing a Termination Form
to the Committee at any time before the Offering Termination Date applicable to
any Offering.

b.             Amount of Withdrawal.  A Participant may withdraw all, but not less
than all, of the amounts credited to the Participant’s Account by giving a
Termination Form to the Committee.  All
amounts credited to such Participant’s Account shall be paid as soon as
practicable following the Committee’s receipt of the Participant’s Termination
Form, and no further Payroll Deductions will be made with respect to the
Participant.

c.             Termination of Employment.  Upon termination of a Participant’s
employment for any reason other than death, including termination due to
disability or continuation of a leave of absence beyond 90 days, all
amounts credited to such Participant’s Account shall be returned to the
Participant.  In the event of a
Participant’s (1) termination of employment due to death or (2) death
after termination of employment but before the Participant’s Account has been
returned, all amounts credited to such Participant’s Account shall be returned
to the Participant’s Successor-in-Interest.

d.             Leave of Absence.  A Participant who is on an Approved Leave of
Absence shall, subject to the Participant’s election pursuant to
Section 5(d) of the Plan, continue to be a Participant in the Plan until
the earlier of (i) the end of the first Offering ending after commencement
of such Approved Leave of Absence or (ii) the close of business on the
90th day of such Approved Leave of Absence unless such Employee shall have
returned to regular non-temporary employment before the close of business on
such 90th day.  A Participant who has
been on an Approved Leave of Absence for more than 90 days shall not be
eligible to participate in any Offering that begins on or after the
commencement of such Approved Leave of Absence so long as such leave of absence
continues.

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9.             Interest.

No interest shall be paid or allowed with respect to
amounts paid into the Plan or credited to any Participant’s Account.

10.          Shares.

a.             Maximum Number of Shares.  No more than 500,000 Shares may be issued
under the Plan.  Such Shares shall be
authorized but unissued or reacquired Shares of the Company, including Shares
purchased on the open market.  The number
of Shares available for any Offering and all Offerings shall be adjusted if the
number of outstanding Shares of the Company is increased or reduced by
split-up, reclassification, stock dividend or the like.  All Shares issued pursuant to the Plan shall
be validly issued, fully paid and nonassessable.

b.             Participant’s Interest in Shares.  A Participant shall have no interest in
Shares subject to an option until such option has been exercised.

c.             Registration of Shares.  Shares to be delivered to a Participant under
the Plan shall be registered in the name of the Participant.

d.             Restrictions on Exercise.  The Board may, in its discretion, require as
conditions to the exercise of any option such conditions as it may deem
necessary to assure that the exercise of options is in compliance with
applicable securities laws.

11.          Expenses.

The Participating Companies shall pay all fees and
expenses incurred (excluding individual Federal, state, local or other taxes)
in connection with the Plan.  No charge
or deduction for any such expenses will be made to a Participant upon the
termination of his or her participation under the Plan or upon the distribution
of certificates representing Shares purchased with his or her contributions.

12.          Taxes.

The Participating Companies shall have the right to
withhold from each Participant’s Compensation an amount equal to all Federal,
state, city or other taxes as the Participating Companies shall determine are
required to be withheld by them in connection with the grant, exercise of the
option or disposition of Shares.  In
connection with such withholding, the Participating Companies may make any such
arrangements as are consistent with the Plan as it may deem appropriate, including
the right to withhold from Compensation paid to a Participant other than in
connection with the Plan and the right to withdraw such amount from the amount
standing to the credit of the Participant’s Account.

13.          Plan and Contributions
Not to Affect Employment.

The Plan shall not confer upon any Eligible Employee
any right to continue in the employ of the Participating Companies.

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14.          Administration.

The Plan shall be administered by the Board, which may
delegate responsibility for such administration to a committee of the Board
(the “Committee”).  If the Board fails to
appoint the Committee, any references in the Plan to the Committee shall be
treated as references to the Board.  The
Board, or the Committee, shall have authority to interpret the Plan, to
prescribe, amend and rescind rules and regulations relating to it, and to make
all other determinations deemed necessary or advisable in administering the
Plan, with or without the advice of counsel.  The determinations of the Board or the
Committee on the matters referred to in this paragraph shall be conclusive and
binding upon all persons in interest.

15.          Amendment and
Termination.

The Board may terminate the Plan at any time and may
amend the Plan from time to time in any respect; provided, however, that upon
any termination of the Plan, all Shares or Payroll Deductions (to the extent
not yet applied to the purchase of Shares) under the Plan shall be distributed
to the Participants, provided further, that no amendment to the Plan shall
affect the right of a Participant to receive his or her proportionate interest
in the Shares or his or her Payroll Deductions (to the extent not yet applied
to the purchase of Shares) under the Plan, and provided further, that the
Company may seek shareholder approval of an amendment to the Plan if such
approval is determined to be required by or advisable under the regulations of
the Securities or Exchange Commission or the Internal Revenue Service, the
rules of any stock exchange or system on which the Shares are listed or other
applicable law or regulation.

16.          Effective Date.

The Plan shall be effective on July 15, 2006.

17.          Government and Other
Regulations.

a.             In General.  The purchase of Shares under the Plan shall
be subject to all applicable laws, rules and regulations, and to such approvals
by any governmental agencies as may be required.

b.             Securities Law.  The Committee shall have the power to make
each grant under the Plan subject to such conditions as it deems necessary or
appropriate to comply with the then-existing requirements of the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
including Rule 16b-3 (or any similar rule) of the Securities and Exchange
Commission.

18.          Non-Alienation.

No Participant shall be permitted to assign, alienate,
sell, transfer, pledge or otherwise encumber his interest under the Plan prior
to the distribution to him of Share certificates.  Any attempt at assignment, alienation, sale,
transfer, pledge or other encumbrance shall be void and of no effect.

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19.          Notices.

Any notice required or permitted hereunder shall be
sufficiently given only if delivered personally, telecopied, or sent by first
class mail, postage prepaid, and addressed:

If to the Company:

Kenexa Corporation

650 East Swedesford Road

2nd Floor

Wayne, PA 19087

Attention: Employee Stock Purchase Plan Committee

or any other address provided pursuant to written
notice.

If to the Participant: 
At the address on file with the Company from time to time, or to such
other address as either party may hereafter designate in writing by notice
similarly given by one party to the other.

20.          Successors.

The Plan shall be binding upon and inure to the
benefit of any successor, successors or assigns of the Company.

21.          Severability.

If any part of this Plan shall be determined to be
invalid or void in any respect, such determination shall not affect, impair,
invalidate or nullify the remaining provisions of this Plan which shall
continue in full force and effect.

22.          Acceptance.

The election by any Eligible Employee to participate
in this Plan constitutes his or her acceptance of the terms of the Plan and his
or her agreement to be bound hereby.

23.          Applicable Law.

This Plan shall be construed in accordance with the
law of the Commonwealth of Pennsylvania, to the extent not preempted by
applicable Federal law.

 B-9Exhibit 10.1

OUTDOOR CHANNEL HOLDINGS, INC.

ROGER L. WERNER, JR. EMPLOYMENT AGREEMENT

This
Employment Agreement (this “Agreement”) is entered into as of October 16, 2006,
by and between Outdoor Channel Holdings, Inc. (the “Company”) and Roger L.
Werner, Jr. (the “Executive”).

1.             Duties
and Scope of Employment.

(a)           Positions
and Duties.  As of October 16, 2006
(the “Effective Date”), Executive will serve as the Company’s President.  Thereafter, Executive will also be appointed
to the position of the Company’s Chief Executive Officer effective as of
November 10, 2006.  Executive will report
to the Company’s Board of Directors (the “Board”).  As of the Effective Date, Executive will
render such business and professional services in the performance of his duties,
consistent with Executive’s position within the Company, as will reasonably be
assigned to him by the Board.  The period
Executive is employed by the Company under this Agreement is referred to herein
as the “Employment Term.”

(b)           Board Membership.  Executive will be appointed to serve as a
member of the Board as of the Effective Date (as a director in the class of
directors to be nominated for re-election in 2009).  Thereafter, at each annual meeting of the
Company’s stockholders during the Employment Term, at which the Executive’s
term as a member of the Board has otherwise expired, the Company will use its
best efforts to have the Company’s independent members of the Board nominate
Executive to serve as a member of the Board. 
Executive’s service as a member of the Board will be subject to any
required stockholder approval.  Upon the
termination of Executive’s employment for any reason, unless otherwise
requested by the Board, Executive will be deemed to have resigned from the
Board (and all other positions held at the Company and its affiliates)
voluntarily, without any further required action by Executive, as of the end of
Executive’s employment and Executive, at the Board’s request, will execute any
documents necessary to reflect his resignation.

(c)           Obligations.  During the Employment Term, Executive will
devote substantially all of Executive’s business efforts and time to the
Company and will use good faith efforts to discharge Executive’s obligations
under this Agreement to the best of Executive’s ability and in accordance with
each of the Company’s corporate guidance and ethics guidelines, conflict of
interests policies and code of conduct. 
For the duration of the Employment Term, Executive agrees not to
actively engage in any other employment, occupation, or consulting activity for
any direct or indirect remuneration without the prior approval of the Board
(which approval will not be unreasonably withheld); provided, however, that
Executive may, without the approval of the Board, serve in any capacity with
any civic, educational, or charitable organization, provided such services do
not interfere with Executive’s obligations to Company.  Executive will be permitted, without
constituting a violation of this Section 1(c) to, (i) continue to provide services
to, serve on the boards of directors of, and maintain or increase his ownership
interests in the entities listed on Exhibit A, and (ii) manage his
personal investments, so long as such activities do not materially interfere
with his responsibilities under this Agreement. 
Executive hereby represents and warrants to the Company

 

that Executive
is not party to any contract, understanding, agreement or policy, written or
otherwise, that would be breached by Executive’s entering into, or performing
services under, this Agreement. 
Executive further represents that he has disclosed to the Company in
writing all threatened, pending, or actual claims that are unresolved and still
outstanding as of the Effective Date, in each case, against Executive of which
he is aware, if any, as a result of his employment with his current employer
(or any other previous employer) or his membership on any boards of directors.

(d)           Other
Entities.  If appointed by the
Company, and as agreed to by Executive, Executive agrees to serve, without
additional compensation, as an officer and director for each of the Company’s
subsidiaries, partnerships, joint ventures, limited liability companies and
other affiliates, including entities in which the Company has a significant
investment as determined by the Company. 
As used in this Agreement, the term “affiliates” will include any entity
controlled by, controlling, or under common control of the Company.

(e)           Office Location.  Executive shall allocate the appropriate
business time between the New York metropolitan area (New York City,
Westchester and Connecticut) and southern California (Los Angeles metropolitan
area and Temecula), as is reasonably sufficient to perform his duties under
this Agreement, subject to reasonable business circumstances that require
travel outside of such locations in connection with performing his duties under
this Agreement.

2.             At-Will
Employment.  Executive and the
Company agree that Executive’s employment with the Company constitutes “at-will”
employment.  Executive and the Company
acknowledge that this employment relationship may be terminated at any time,
upon written notice to the other party, with or without good cause or for any
or no cause, at the option either of the Company or Executive.  However, as described in this Agreement,
Executive may be entitled to severance benefits depending upon the
circumstances of Executive’s termination of employment.

3.             Term
of Agreement.  This Agreement will
have an initial term of three (3) years commencing on the Effective Date (the “Initial
Term”).  On the third anniversary of the
Effective Date and on each anniversary thereafter, this Agreement automatically
will renew for an additional one (1) year term (each, an “Additional Term”)
unless either party provides the other party with written notice of non-renewal
at least sixty (60) days prior to the date of automatic renewal.

4.             Compensation.

(a)           Base Salary.  As of the Effective Date, the Company will
pay Executive an annual salary of $300,000 as compensation for his services
(such annual salary, as is then effective, to be referred to herein as “Base
Salary”).  The Base Salary will be paid
periodically in accordance with the Company’s normal payroll practices and be
subject to the usual, required withholdings. 
Executive’s Base Salary will be subject to review for increases by the
Board or by the Compensation Committee of the Board (the “Committee”) not less
than annually, and such increases (if any) will be made in the sole discretion
of the Committee.

(b)           Sign-on Bonus.  Within thirty (30) days of the Effective
Date, Executive will receive a signing bonus equal to $300,000 (the “Signing
Bonus”).  The Signing Bonus will be paid
as soon as practicable following the Effective Date and will be subject to the
usual, required withholdings.

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(c)           Annual Incentive.  Executive will not be eligible to receive any
annual cash incentive for the remainder of the Company’s 2006 fiscal year,
except as provided in subsections (a) and (b) above.  For each of the Company’s fiscal years
beginning after 2006, Executive will be eligible to
receive annual cash incentives payable for the achievement of performance goals
established by the Board or by the Compensation Committee of the Board (the “Committee”).  During the Employment Term (not including the
Company’s 2006 fiscal year), Executive’s target annual incentive will be not
less than 50% of Base Salary (“Target Annual Incentive”).  The actual earned annual cash incentive, if
any, payable to Executive for any performance period will depend upon the
extent to which the applicable performance goal(s) specified by the Committee
are achieved or exceeded and will be adjusted for under- or over-performance.

(d)           Stock Options.  As of the Effective Date, Executive will be
granted nonstatutory stock options to purchase 300,000 shares of Company common
stock at a per share exercise price equal to the closing price per share on the
Nasdaq Global Market (“Nasdaq”) for the common stock of the Company on the
Effective Date (the “Option”).  The Option will be granted under and subject
to the terms, definitions and provisions of the Company’s 2004 Long-Term
Incentive Plan, as amended (the “Plan”). 
Forty percent (40%) of the Option shall vest and become exercisable
ninety (90) days after the Effective Date, and an additional sixty percent
(60%) of the Option shall thereafter vest and become exercisable in equal
monthly installments beginning four (4) months after the Effective Date such
that the Option is one hundred percent (100%) vested on the last day of the
Initial Term assuming Executive’s continued employment with the Company on each
scheduled vesting date.  In the event,
after the first anniversary of the Effective Date, the Company terminates
Executive’s employment without Cause or if Executive resigns for Good Reason,
one hundred percent (100%) of the Option shall vest upon such termination of
employment.  Except as provided in this
Agreement, the Option will be subject to the Company’s standard terms and
conditions for options granted under the Plan.

(e)           Restricted Stock.  As of the Effective Date, Executive shall be
granted 150,000 shares of restricted stock of the Company (the “Restricted
Stock”).  The Restricted Stock will be
granted under and subject to the terms, definitions and provisions of the Plan.  The Restricted Stock shall vest in equal
monthly installments beginning on the Effective Date such that the entire
150,000 shares are one hundred percent (100%) vested at the end of the Initial
Term.  In the event, after the first
anniversary of the Effective Date, the Company terminates Executive’s
employment without Cause or if Executive resigns for Good Reason, one hundred
percent (100%) of the Restricted Stock shall vest upon such termination of
employment.  Except as provided in this
Agreement, the Restricted Stock will be subject to the Company’s standard terms
and conditions for restricted share grants under the Plan.

(f)            Performance Units.  As of the Effective Date, Executive shall be
granted 800,000 performance units (the “Performance Units”).  The Performance Units will be granted under
and subject to the terms, definitions and provisions of the Plan.  The Performance Units shall vest as provided
below, and once vested, shall be settled by the Company’s issuance of shares of
Company common stock reflecting that number of vested Performance Units.  Except as provided in this Agreement, the
Performance Units will be subject to the Company’s standard terms and
conditions for performance units under the Plan.

 3
 

 

(i)       50,000 Performance Units
shall vest on the 20th trading day following the date on which the
per share closing price of Company common stock, as traded on Nasdaq, reaches a
price equal to the Average Closing Price plus $0.50 per share (the “$0.50
Target”), if, and only if, (A) the average closing per share price of Company
common stock over the 20-trading day period is equal to or greater than the
$0.50 Target and (B) the $0.50 Target is reached and such average is maintained
within the four (4) year period beginning on the Effective Date;

(ii)      An additional 50,000
Performance Units shall vest on the 20th trading day following the date on which the
per share closing price of Company common stock, as traded on Nasdaq, reaches a
price equal to the Average Closing Price plus $1.00 per share (the “$1.00
Target”), if, and only if, (A) the average closing per share price of Company
common stock over the 20-trading day period is equal to or greater than the
$1.00 Target and (B) the $1.00 Target is reached and such average is maintained
within the four (4) year period beginning on the Effective Date;

(iii)     Additional installments of
100,000 Performance Units shall vest (up to a maximum of 300,000 Performance
Units) on the 20th trading day following the date on which the
per share closing price of Company common stock, as traded on Nasdaq, reaches a
price equal to the Average Closing Price plus each of $2.00 (i.e., 100,000
Performance Units shall vest), $3.00 (i.e., an additional 100,000 Performance
Units shall vest) and $4.00 (i.e., an additional 100,000 Performance Units
shall vest) (each, an “Additional Target”) if, and only if, (A) the average
closing per share price of Company common stock over the 20-trading day period
immediately following the date the applicable Additional Target is reached is
equal to or greater than the applicable Additional Target and (B) the
applicable Additional Target is reached and such average is maintained within
the four (4) year period beginning on the Effective Date;

(iv)     Additional installments of
100,000 Performance Units shall vest (up to a maximum of 400,000 Performance
Units) on the 20th trading day following the date on which the
per share closing price of Company common stock, as traded on Nasdaq, reaches a
price equal to the Average Closing Price plus each of $5.00 (i.e., 100,000
Performance Units shall vest), $6.00 (i.e., an additional 100,000 Performance
Units shall vest), $7.00 (i.e., an additional 100,000 Performance Units shall
vest), and $8.00 (i.e., an additional 100,000 Performance Units shall vest)
(each, also an “Additional Target”) if, and only if, (A) the average closing
per share price of Company common stock over the 20-trading day period
immediately following the date the applicable Additional Target is reached is
equal to or greater than the applicable Additional Target and (B) the
applicable Additional Target is reached and such average is maintained within
the five (5) year period beginning on the Effective Date;

(v)      Additional Performance Units
shall vest in a pro-rata amount at the end of the applicable four (4) or five
(5) year performance period if the highest average trading price during any
20-trading day period is higher than any target previously achieved (but less
than the next target number).  For example,
if Executive has vested in 300,000 Performance Units based on reaching Average
Closing Price plus $3.00 per share, and the highest average closing price for
any 20-day trading period since reaching that price and before the fourth
anniversary of the Effective Date is equal to the Average Closing Price plus
$3.50 per share, an additional 50,000 Performance Units will become vested; and

 4
 

 

(vi)     In the event a Change in
Control occurs within the applicable four (4) or five (5) year performance
period, then a pro-rata portion of the then unvested Performance Units shall
vest (to the extent described in this Section 4(f)) based upon the per share
consideration paid to the holders of Company common stock in the Change in
Control.  For example, if Executive has
vested in 300,000 Performance Units based on reaching Average Closing Price
plus $3.00 per share, and the per share consideration paid to the holders of
Company common stock in the Change in Control is equal to the Average Closing
Price plus $3.50 per share, an additional 50,000 Performance Units will become
vested upon the Change in Control.  Any
Performance Units which have not previously vested and do not become vested
pursuant to this clause (vi) will be forfeited and terminate automatically upon
the Change in Control.

(g) Form S-8.  The Company will use its commercially
reasonable best efforts to ensure that all shares of Company common stock
covered by the Option, the Restricted Stock and the Performance Units are
registered on a Form S-8 registration statement.

5.             Employee
Benefits.

(a)           Generally.  Executive will be eligible to participate in
accordance with the terms of all Company employee benefit plans, policies and
arrangements that are applicable to other executive officers of the Company, as
such plans, policies and arrangements may exist from time to time.

(b)           Vacation.  Executive will be entitled to
receive paid annual vacation in accordance with Company policy for other senior
executive officers.

6.             Expenses.  The Company will reimburse Executive for
reasonable travel, entertainment and other expenses incurred by Executive in
the furtherance of the performance of Executive’s duties hereunder, in
accordance with the Company’s expense reimbursement policy as in effect from
time to time.  For purposes of
clarification, the Company shall reimburse Executive for approximately 70% of
his (a) travel expenses to and from California, and (b) Connecticut office
expenses (including, without limitation, secretarial assistance, phone,
professional subscriptions, and internet access).

7.             Termination
of Employment.  In the event
Executive’s employment with the Company terminates for any reason, Executive
will be entitled to any (a) unpaid Base Salary accrued up to the effective
date of termination; (b) unpaid, but earned and accrued annual incentive
for any completed fiscal year as of his termination of employment; (c) pay
for accrued but unused vacation; (d) benefits or compensation as provided
under the terms of any employee benefit and compensation agreements or plans
applicable to Executive (e) unreimbursed business expenses required to be
reimbursed to Executive, and (f) rights to indemnification Executive may
have under the Company’s Articles of Incorporation, Bylaws, this Agreement, or
separate indemnification agreement, as applicable.  In addition, if the termination is by the
Company without Cause or Executive resigns for Good Reason, Executive will be
entitled to the amounts and benefits specified in Section 8.

8.             Severance.

(a)           Termination Without Cause or Resignation for
Good Reason During Employment Term.  If Executive’s
employment is terminated by the Company without Cause or if

 5
 

 

Executive
resigns for Good Reason, then, subject to Section 9 and in addition to the amounts provided
in Section 7, Executive will receive continued payments of Executive’s Base
Salary at a rate equal to 135% of such Base Salary, for the longer of (1) one
year and (2) the remaining period of the Initial Term or Additional Term (as
applicable).  Such amounts shall be paid
out bi-weekly in accordance with the Company’s normal payroll policies.  These amounts shall be determined without
regard for any reduction that was the basis for a termination by Executive for
Good Reason, if applicable.

(b)           Termination Without Cause or Resignation for
Good Reason Prior to First Anniversary of Effective Date.  If
Executive’s employment is terminated by the Company without Cause or by
Executive for Good Reason, and the termination or resignation occurs prior to
the first anniversary of the Effective Date, then, subject to Section 9 and
in addition to the amounts provided in Sections 7 and 8(a), Executive will
receive a single lump sum cash payment in an amount equal to the First Year
Severance Payment.

(c)           Termination upon
Death or Disability.  If Executive’s
employment is terminated on account of the Executive’s death or Disability,
Executive shall receive, in addition to the payments required by Section 7, a
portion of his Target Annual Incentive pro-rated from the beginning of the
applicable fiscal year in which such termination occurs through the date of
termination, and disregarding for this purpose the requirement to satisfy any
performance objectives, (the “Pro-Rata Bonus”) and such other payments and
benefits in accordance with the Company’s standard plans, programs and practices
(if any).

(d)           Voluntary
Termination Without Good Reason or Termination for Cause.  If Executive’s employment is terminated
voluntarily, without Good Reason or is terminated for Cause by the Company,
then, except as provided in Section 7, (i) all further vesting of
Executive’s outstanding Options, Restricted Stock, Performance Units and any
other equity awards granted by the Company to Executive will terminate
immediately; (ii) all payments of compensation by the Company to Executive
hereunder will terminate immediately, and (iii) Executive will be eligible
for severance benefits only in accordance with the Company’s then established
plans and/or policies (if any).

(e)           Non-renewal of the
Employment Term.  If, following the
expiration of the Initial Term or Additional Term, the Company elects to not
renew this Agreement, Executive shall receive, in addition to the payments
required by Section 7, a Pro-Rata Bonus.

9.             Conditions
to Receipt of Severance; Nondisparagement; No Duty to Mitigate.

(a)           Release of Claims
Agreement.  The receipt of any
severance or other benefits pursuant to Section 8 will be subject to
Executive signing and not revoking a release of claims agreement in
substantially the form attached as Exhibit B, but with any appropriate
reasonable modifications, reflecting changes in applicable law, as is necessary
to provide the Company with the protection it would have if the release of
claims were executed as of the Effective Date. 
No severance or other benefits will be paid or provided until the release
of claims agreement becomes effective, and any severance amounts or benefits
otherwise payable between the date of Executive’s termination and the date such
release becomes effective shall be paid on the effective date of such release.

 6
 

 

(b)           Non-solicitation and Non-competition.  The
receipt of any severance or other benefits pursuant to Section 8 will be subject to Executive agreeing that
during the Employment Term and Continuance Period, Executive will not
(i) solicit any employee of the Company (other than Executive’s personal
assistant) for employment other than at the Company, or (ii) directly or indirectly engage in, have
any ownership interest in or participate in any entity that as of the date of
termination, competes with the Company with respect to Outdoor
Programming.  Executive’s passive
ownership of not more than 1% of any publicly traded company and/or 5%
ownership of any privately held company will not constitute a breach of this
Section 9(b).  In addition, Executive’s
ownership and involvement with the entities referenced on Exhibit A will
also not constitute a breach of this Section 9(b).

(c)           Nondisparagement.  During the Employment Term and Continuance
Period, Executive will not knowingly and materially disparage, criticize, or
otherwise make any derogatory statements
regarding the Company. 
During the Employment Term and Continuance Period, the Company will not
knowingly and materially disparage, criticize, or otherwise make any derogatory
statements regarding Executive.  Notwithstanding the
foregoing, nothing contained in this Agreement will be deemed to restrict
Executive, the Company or any of the Company’s current or former officers
and/or directors from (1) providing information to any governmental or
regulatory agency (or in any way limit the content of any such information) to
the extent they are requested or required to provide such information pursuant
to applicable law or regulation or (2) enforcing his or its rights pursuant to
this Agreement.

(d)           Other Requirements.  Executive’s receipt of any payments or
benefits under Section 8 will be subject to Executive continuing to comply with
the terms of the Confidential Information Agreement and the provisions of this
Section 9.

(e)           No Duty to Mitigate. 
Executive will not be required to mitigate the amount of any payment
contemplated by this Agreement, nor will any earnings that Executive may
receive from any other source reduce any such payment.

10.           Excise
Tax.

(a)           In the event that the
severance and other benefits provided in this Agreement or otherwise payable to
Executive constitute “parachute payments” under Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) and would be subject to the
excise tax imposed by Section 4999 of the Code, then, except as provided by
Section 10(b) below: Executive’s benefits shall be either (i) delivered in
full, or (ii) delivered as to such lesser extent which would result in no
portion of such benefits being subject to the excise tax, whichever of the
foregoing amounts results in the receipt by Executive on an after-tax basis, of
the greatest amount of benefits.

(b)           In addition, in the
event a Change in Control occurs, and Executive’s employment is terminated by
the Company without Cause, or Executive resigns for Good Reason, prior to the
first anniversary of the Effective Date, and it is determined by the
Accountants (as defined below) or the Internal Revenue Service that the
payments or benefits provided for in this Agreement or otherwise constitute “parachute
payments” within the meaning of Section 280G of the Code and will be subject to
the excise tax imposed by Section 4999 of the Code, then Executive will
receive, as soon as the calculations required under Section 10(c) are complete
and upon any

 7
 

 

notification from the Internal Revenue Service of its determination
that payments or benefits hereunder constitute excess parachute payments, (i)
payments from the Company sufficient to pay such excise tax (plus any interest
and penalties), and (ii) an additional payment from the Company sufficient to
pay the federal and state income and employment taxes and additional excise
taxes (plus any interest and penalties) arising from the payments made to
Executive by the Company pursuant to this sentence (collectively the “Gross-up
Payment”).  Notwithstanding the foregoing
however, the Company shall only be obligated to make such a Gross-up Payment in
an amount necessary, if any, such that the excess of (1) (A) any severance
and/or First Year Severance Payment paid or payable to Executive pursuant to
Section 8(a) and (b), (B) any (i) Base Salary paid up until the date of
termination, (ii) the Signing Bonus, and (iii) the value of Restricted Stock
vested prior to, and including, the date of the Change in Control (measured by
the closing price of the Company’s common stock as of the applicable vesting
date), and (C) the value of vested Performance Units (measured by the closing
price of the Company’s common stock as of the applicable vesting date) settled
prior to, and including, the date of the Change in Control, and (D) the
Gross-up Payment, over (2) all applicable income, employment and excise taxes
(including any interest and penalties), whether payable in connection with such
Change in Control, the Gross-up Payment or otherwise, equals $1,800,000.

(c)           Unless Executive and
the Company agree otherwise in writing, the determination of Executive’s excise
tax liability and amount of the Gross-up Payment for purposes of subsection
9(b) above, if any, will be made in writing by the independent auditors who are
primarily used by the Company immediately prior to the Change in Control (the “Accountants”).  For purposes of making the calculations
required by this Section 10, the Accountants may make reasonable assumptions
and approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations concerning the application of Sections 280G and 4999 of
the Code.  Executive and the Company
agree to furnish such information and documents as the Accountants may
reasonably request in order to make a determination under this Section 10.  The Company will bear all costs the
Accountants and/or Executive may reasonably incur in connection with any
calculations contemplated by this Section 10.

11.           Definitions.

(a)           Average Closing
Price.  For purposes of this
Agreement, “Average Closing Price” will mean $11.46.

(b)           Cause.  For purposes of this Agreement, “Cause” will
mean:

(i)    Executive’s
willful and continued failure to perform the duties and responsibilities of his
position (other than as a result of Executive’s illness or injury) after there
has been delivered to Executive a written demand for performance from the Board
which describes the basis for the Board’s belief that Executive has not
substantially performed his duties and provides Executive with thirty (30) days
to take corrective action;

(ii)   Any
material act of personal dishonesty taken by Executive in connection with his
responsibilities as an employee of the Company with the intention that such
action may result in the substantial personal enrichment of Executive;

 8
 

 

(iii)  Executive’s
conviction of, or plea of nolo contendere to, a felony that the Board
reasonably believes has had or will have a material detrimental effect on the
Company’s reputation or business;

(iv)  A
willful breach of any fiduciary duty owed to the Company by Executive that has
a material detrimental effect on the Company’s reputation or business;

(v)   Executive being found liable in
any Securities and Exchange Commission or other civil or criminal securities
law action (regardless of whether or not Executive admits or denies liability),
which the Board determines, in its reasonable discretion, will have a material
detrimental effect on the Company’s reputation or business;

(vi)  Executive entering any cease and
desist order with respect to any action which would bar Executive from service
as an executive officer or member of a board of directors of any
publicly-traded company (regardless of whether or not Executive admits or
denies liability);

(vii) Executive (A) obstructing or
impeding; (B) endeavoring to obstruct or impede, or (C) failing to materially
cooperate with, any investigation authorized by the Board or any governmental
or self-regulatory entity (an “Investigation”). 
However, Executive’s failure to waive attorney-client privilege relating
to communications with Executive’s own attorney in connection with an
Investigation will not constitute “Cause”; or

(viii)                Executive’s disqualification or bar by any
governmental or self-regulatory authority from serving in the capacity
contemplated by this Agreement, if (A) the disqualification or bar continues
for more than thirty (30) days, and (B) during that period the Company uses its
commercially reasonable efforts to cause the disqualification or bar to be
lifted. While any disqualification or bar continues during Executive’s
employment, Executive will serve in the capacity contemplated by this Agreement
to whatever extent legally permissible and, if Executive’s employment is not
permissible, Executive will be placed on administrative leave (which will be
paid to the extent legally permissible).

Other than for a
termination pursuant to Section 11(b)(iii), Executive shall receive notice and
an opportunity to be heard before the Board with Executive’s own attorney
before any termination for Cause is deemed effective.  Notwithstanding anything to the contrary, the
Board may immediately place Executive on administrative leave (with full pay
and benefits to the extent legally permissible) and suspend all access to
Company information, employees and business should Executive wish to avail
himself of his opportunity to be heard before the Board prior to the Board’s
termination for Cause.  If Executive
avails himself of his opportunity to be heard before the Board, and then fails to
make himself available to the Board within five (5) business days of such
request to be heard, the Board may thereafter cancel the administrative leave
and terminate Executive for Cause.

(c)           Change in Control.  For purposes of this Agreement, “Change in
Control” will have the same meaning as “Change in Control” is defined in the
Plan.

(d)           Continuance Period.  For purposes of this Agreement:

 9

 

(i)    if Executive’s employment is
terminated by the Company without Cause or if Executive resigns for Good
Reason, then “Continuance Period” will mean the period of time beginning on the
date of the termination of Executive’s employment and ending on the date two
(2) years later.  Notwithstanding
anything to the contrary in this Agreement, should the Continuance Period
exceed the length of time for which the Company is obligated to make severance
payments pursuant to Section 8, then the Company shall continue the payment of
such severance payments for the applicable remaining period of the Continuance
Period.

(ii)   in the event of either (i) the
expiration, and non-renewal of the Initial Term or any Additional Term, or (ii)
a termination of the Executive’s employment for any other reason, the “Continuance
Period,” if any, will mean either the one (1) year or two (2) year period
elected by the Company and for which the Company agrees to pay Executive
continued Base Salary and Target Annual Incentive for the appropriate
period.  The Company may elect to not
impose any such Continuance Period in its sole discretion, but if it does wish
to impose a Continuance Period, it must make the one (1) year or two (2) year
election, as applicable, within ten (10) business days (i) following the
election of the Company or Executive to not renew the Employment Term or (ii)
following the Executive’s termination of employment.

(e)           Disability.  For purposes of this Agreement, “Disability”
shall have the same meaning as that term is defined in the Plan.  Notwithstanding the foregoing however, should
the Company maintain a long-term disability plan at any time during the
Employment Term, a determination of disability under such plan shall also be
considered a “Disability” for purposes of this Agreement.

(f)            First Year Severance Payment.  For purposes of this Agreement, “First Year
Severance Payment” will mean an amount equal to $2,400,000 reduced by (1) the
amount of the payments required pursuant to Section 8(a), and (2) an amount equal
to the product of (i) the per share price paid to holders of Company common
stock in the Change in Control multiplied by (ii) the number of Performance
Units that have vested as of, and including on account of, the Change in
Control.

(g)           Good Reason.  For purposes of this Agreement, “Good Reason”
means the occurrence of any of the following, without Executive’s express
written consent:

(i)    A significant reduction of Executive’s
responsibilities, relative to Executive’s responsibilities in effect immediately
prior to such reduction; including a reduction in responsibilities by virtue of
the Company being acquired and made part of another entity (as, for example,
when the Chief Executive Officer of the Company remains as the senior executive
officer of a division or subsidiary of the acquiror which division or
subsidiary either contains substantially all of the Company’s business or is of
a comparable size), or a change in the Executive’s reporting position such that
Executive no longer reports directly to the board of directors of a
publicly-traded company (unless Executive is reporting to the board of
directors of the parent corporation in a group of controlled corporations, none
of which is a publicly-traded company);

(ii)   A material reduction in the
kind or level of welfare and/or retirement benefits to which Executive is
entitled immediately prior to such reduction with the result that Executive’s
overall benefits package is significantly reduced other than pursuant to a
reduction that 

 10
 

 

also is applied to substantially all other
executive officers of the Company and that reduces the level of employee
benefits by a percentage reduction that is no greater than 10%;

(iii)  A reduction in Executive’s Base
Salary or Target Annual Incentive as in effect immediately prior to such
reduction other than pursuant to a reduction that also is applied to
substantially all other executive officers of the Company and which reduction
reduces the Base Salary and/or Target Annual Incentive by a percentage
reduction that is no greater than 10%;

(iv)  The relocation of Executive to a
facility or location more than fifty (50) miles from his primary place of
employment;

(v)   Any purported termination of
the Executive’s employment for “Cause” without first satisfying the procedural
protections, as applicable, required by the definition of “Cause” in this
Agreement; or

(vi)  The failure of the Company to
obtain the assumption of this Agreement by a successor and/or acquiror and an
agreement that Executive will retain the substantially similar responsibilities
(to the extent described in Section 1) in the acquiror or the merged or
surviving company as he had prior to the transaction.

The following
shall not constitute Good Reason for purposes of this Agreement: (i) the
failure of the Company’s stockholders to reelect Executive to the Board; or
(ii) the notification and placement of Executive on administrative leave
pending a potential determination by the Board that Executive may be terminated
for Cause.

(h)           Outdoor Programming.  For purposes of this Agreement, “Outdoor
Programming” means any television, internet or other media programming devoted
primarily to traditional outdoor activities, such as hunting, fishing, shooting
sports, rodeo, gold prospecting and related life-style programming.

12.           Indemnification and
D&O Insurance.  Subject to
applicable law, Executive will be provided indemnification to the maximum
extent permitted by the Company’s Articles of Incorporation or Bylaws,
including, if applicable, any directors and officers insurance policies, with
such indemnification to be on terms determined by the Board or any of its
committees, but on terms no less favorable than provided to any other Company
executive officer or director and subject to the terms of any separate written
indemnification agreement.  The Company
shall also maintain commercially reasonable D&O insurance covering
Executive during the Employment Term in such amount and pursuant to such terms
as is typical and customary for companies of similar size and nature as the
Company.

13.           Confidential
Information.  Executive agrees to
execute the Company’s confidential information and intellectual property
agreement, in a form reasonably satisfactory to Executive (the “Confidential Information Agreement”).

14.           Assignment.  This Agreement will be binding upon and inure
to the benefit of (a) the heirs, executors and legal representatives of
Executive upon Executive’s death, and (b) any successor of the
Company.  Any such successor of the
Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes.  For this
purpose, “successor” means

 11
 

 

any person, firm,
corporation, or other business entity which at any time, whether by purchase,
merger, or otherwise, directly or indirectly acquires all or substantially all
of the assets or business of the Company. 
None of the rights of Executive to receive any form of compensation
payable pursuant to this Agreement may be assigned or transferred except by
will or the laws of descent and distribution. 
Any other attempted assignment, transfer, conveyance, or other
disposition of Executive’s right to compensation or other benefits will be null
and void.

15.           Notices.  All notices, requests, demands and other
communications called for hereunder will be in writing and will be deemed given
(a) on the date of delivery if delivered personally; (b) one (1) day
after being sent overnight by a well-established commercial overnight service,
or (c) four (4) days after being mailed by registered or certified mail,
return receipt requested, prepaid and addressed to the parties or their
successors at the following addresses, or at such other addresses as the
parties may later designate in writing:

	
  

  	
   

  	
  If to the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Chairman of the Compensation
  Committee

  
	
   

  	
   

  	
  c/o Corporate Secretary

  
	
   

  	
   

  	
  with a copy to: its General
  Counsel

  
	
   

  	
   

  	
  Outdoor Channel Holdings, Inc.

  
	
   

  	
   

  	
  43445 Business Park Drive

  
	
   

  	
   

  	
  Temecula, CA 92590

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If to Executive:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  at the last residential address known by the
  Company,

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Charles J. Downey, Esq.

  
	
   

  	
   

  	
  Susan Powell, Esq.

  
	
   

  	
   

  	
  Finn Dixon & Herling LLP

  
	
   

  	
   

  	
  177 Broad Street, 15th Floor

  
	
   

  	
   

  	
  Stamford, CT 06902-2048.

  

 

16.           Severability.  In the event that any provision or any
portion of any provision hereof becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable, or void, this Agreement will
continue in full force and effect without said provision or portion of
provision.  The remainder of this
Agreement shall be interpreted so as best to effect the intent of the Company
and Executive.

17.           Arbitration.  The Parties agree that any and all disputes
arising out of the terms of this Agreement, Executive’s employment by the
Company, Executive’s service as an officer or director of the Company, or
Executive’s compensation and benefits, their interpretation and any of the
matters herein released, will be subject to binding arbitration.  In the event of a dispute, the parties (or
their legal representatives) will promptly confer to select a Single Arbitrator
mutually acceptable to both parties.  If
the parties cannot agree on an Arbitrator, then the moving party may file a
Demand for Arbitration with the American Arbitration Association (“AAA”) in
Connecticut, who

 12
 

 

will be selected
and appointed consistent with the AAA-Employment Dispute Resolution Rules,
except that such Arbitrator must have the qualifications set forth in this
paragraph.  Any arbitration will be
conducted in a manner consistent with AAA National Rules for the Resolution of
Employment Disputes, supplemented by the Connecticut Rules of Civil
Procedure.  The Parties further agree
that the prevailing party in any arbitration will be entitled to injunctive
relief in any court of competent jurisdiction to enforce the arbitration
award.  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.  This
paragraph 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 Executive’s obligations
under this Agreement and the Confidential Information Agreement.

18.           Legal
and Due Diligence Expenses.  The
Company will reimburse Executive up to $20,000 for reasonable and actual legal
due diligence expenses incurred by him in connection with the negotiation,
preparation and execution of this Agreement.

19.           Integration.  This Agreement, together with the
Confidential Information Agreement and the standard forms of equity award grant
that describe Executive’s outstanding equity awards, represents the entire
agreement and understanding between the parties as to the subject matter herein
and supersedes all prior or contemporaneous agreements whether written or
oral.  No waiver, alteration, or
modification of any of the provisions of this Agreement will be binding unless
in a writing and signed by duly authorized representatives of the parties hereto.  In entering into this Agreement, no party has
relied on or made any representation, warranty, inducement, promise, or
understanding that is not in this Agreement. 
To the extent that any
provisions of this Agreement conflict with those of any other agreement to be
signed upon Executive’s hire, the terms in this Agreement will prevail.

20.           Waiver
of Breach.  The waiver of a breach of
any term or provision of this Agreement, which must be in writing, will not
operate as or be construed to be a waiver of any other previous or subsequent
breach of this Agreement.

21.           Survival.  The Confidential Information Agreement and
the Company’s and Executive’s responsibilities under Sections 8, 9, 10, 12 and
17 will survive the termination of this Agreement.

22.           Headings.  All captions and Section headings used in
this Agreement are for convenient reference only and do not form a part of this
Agreement.

23.           Tax
Withholding.  All payments made
pursuant to this Agreement will be subject to withholding of applicable taxes.

24.           Governing
Law.  This Agreement will be governed
by the laws of the state of Connecticut without regard for choice of law
provisions of any state or other jurisdiction.

25.           Acknowledgment.  Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

 13
 

 

26.           Code
Section 409A.  Notwithstanding anything to the contrary in
this Agreement, if the Company reasonably determines that Section 409A of the
Code will result in the imposition of interest and additional tax, Executive
shall not be paid any compensation or benefits hereunder (whether payable
pursuant to Section 8 or 10 or otherwise) upon a separation from service
(within the meaning of Section 409A(a)(2)(A)(i) of the Code and the regulations
promulgated thereunder) until the date which is 6 months after the date of such
separation from service (or, if earlier, the date of death of the
Executive).  Such severance or other benefits otherwise due to Executive on or within
the six (6) month period following Executive’s termination of employment will
accrue during such six (6) month period and will become payable in a lump sum
payment on the date six (6) months and one (1) day following the date of
Executive’s termination.  All subsequent
payments, if any, will be payable as provided in this Agreement.  The Company and Executive agree that this
Agreement and the rights granted to the Executive hereunder are intended to
meet the requirements of paragraphs (2), (3) and (4) of Section 409A(a)(1)(A)
of the Code.  Accordingly, the parties agree
that during the period ending on December 31, 2007 (or such later date as set
forth by the Internal Revenue Service for good faith compliance with guidance
relating to Section 409A of the Code), the parties agree that they shall
negotiate in good faith to revise any provisions of this Agreement that might
otherwise fail to meet the requirements of paragraphs (2), (3) and (4) of
Section 409A of Code; provided, however, that nothing contained in this Section
26 shall be deemed to require the Company to incur any material compensation
expense in excess of that which would be incurred by it in the absence of this
Section 26.

27.           Counterparts.  This Agreement may be executed in
counterparts, and each counterpart will have the same force and effect as an
original and will constitute an effective, binding agreement on the part of
each of the undersigned.

 14
 

 

IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Company by a duly authorized officer, as of the day and year written
below.

COMPANY:

OUTDOOR CHANNEL
HOLDINGS, INC.

	
  /s/ William A.
  Owen 

  	
   

  	
  Date: October 16, 2006

  
	
  By: William A.
  Owen

  	
   

  	
   

  
	
  Its: Chief
  Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Roger
  L. Werner, Jr.

  	
   

  	
  Date: October 16, 2006

  
	
  Roger L. Werner,
  Jr.

  	
   

  	
   

  

[SIGNATURE
PAGE TO WERNER EMPLOYMENT AGREEMENT]

 15
 

 

Exhibit A

	
  Entity

  	
   

  	
  Limitations

  
	
   

  	
   

  	
   

  
	
  WATV
  Productions, LLC

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  
	
  Narrowstep Inc.

  	
   

  	
  Maximum 6% ownership

  
	
   

  	
   

  	
   

  
	
  Granahan McCourt
  Acquisition Corporation

  	
   

  	
  No limitations on ownership, provided business of
  entity does not compete with the Company.

  
	
   

  	
   

  	
   

  
	
  One additional
  publicly traded corporation

  	
   

  	
  Executive may serve as a member of such
  corporation’s board of directors, provided business of entity does not
  compete with the Company and Executive’s ownership in such entity is limited
  to a maximum of 2%. Executive may serve on committees of such corporations’
  board of directors, but not as chairman of any such committees.

  

 16
 

 

Exhibit B

Release of Claims Agreement

 17

 

RELEASE OF CLAIMS AGREEMENT

1.     In consideration for the payment of the severance described in the
Employment Agreement by and between Roger L. Werner, Jr. (the “Executive’) and
Outdoor Channel Holdings, Inc. (the “Company”) (the “Employment Agreement”),
dated as of October 16, 2006 (the “Employment Agreement”), the Executive for
himself, and for his heirs, administrators, representatives, executors,
successors and assigns (collectively “Releasers”) does hereby irrevocably and
unconditionally release, acquit and forever discharge the Company, its
subsidiaries, affiliates and divisions and their respective, current and
former, trustees, officers, directors, partners, shareholders, agents,
employees, consultants, independent contractors and representatives, including
without limitation all persons acting by, through under or in concert with any
of them (collectively, “Releasees”), and each of them from any and all charges,
complaints, claims, liabilities, obligations, promises, agreements,
controversies, damages, remedies, actions, causes of action, suits, rights,
demands, costs, losses, debts and expenses (including attorneys’ fees and
costs) of any nature whatsoever, known or unknown, whether in law or equity and
whether arising under federal, state or local law and in particular including any
claim for discrimination based upon race, color, ethnicity, sex, age (including
the Age Discrimination in Employment Act of 1967), national origin, religion,
disability, or any other unlawful criterion or circumstance, which the
Executive and Releasers had, now have, or may have in the future against each
or any of the Releasees, including under the Connecticut Fair Employment
Practices Act, and the California Fair Employment and Housing Act (collectively
“Executive/Releaser Actions”) from the beginning of the world until the date
hereof.

2.     The Executive acknowledges that: (i) this entire Release is
written in a manner calculated to be understood by him; (ii) he has been
advised to consult with an attorney before executing this Release;
(iii) he was given a period of twenty-one days within which to consider
this Release; and (iv) to the extent he executes this Release before the
expiration of the twenty-one day period, he does so knowingly and voluntarily
and only after consulting his attorney. The Executive shall have the right to
cancel and revoke this Release by delivering notice to the Company pursuant to
the notice provision of Section 15 of the Employment Agreement prior to
the expiration of the seven-day period following the date hereof, and the severance
benefits under the Employment Agreement shall not become effective, and no
payments or benefits shall be made or provided thereunder, until the day after
the expiration of such seven-day period (the “Revocation Date”). Upon such
revocation, this Release and the severance provisions of the Employment
Agreement shall be null and void and of no further force or effect.

3.     Notwithstanding anything herein to the contrary, the sole matters to
which the Release does not apply are: (i) the Executive’s rights to
indemnification (whether arising under applicable law, the Company’s
certificate of incorporation or bylaws, indemnification agreement, board
resolution or otherwise)  and directors
and officers liability insurance coverage to which he was entitled immediately
prior to       with regard to his service as an
officer or director of the Company; (ii) the Executive’s rights under any
tax-qualified 

 

pension or claims for
accrued vested benefits or rights under any other employee benefit plan, policy
or arrangement (whether tax-qualified or not) maintained by the Company or
under COBRA; (iii) the Executive’s rights under Section 8 of the
Employment Agreement (which are subject to Section 9 of the Employment
Agreement) which are intended to survive termination of employment, (iv) the
Executive’s rights under Sections 4, 10 and 12 of the Employment Agreement
which are intended to survive termination of employment, (v) the Executive’s
rights as a stockholder of the Company, or (vi) the Executive’s rights pursuant
to the Stock Option Agreement[s] by and between the Executive and the Company,
dated [DATE], the Restricted Stock Agreement[s] by and between the Executive
and the Company, dated [DATE], and the Performance Unit Agreements by and
between the Executive and the Company, dated [DATE] (but excluding any right to
continued vesting of such equity awards except as specifically provided in such
agreements or in Section 4 of the Employment Agreement).

4.     This Release is the complete understanding between the Executive and
the Company in respect of the subject matter of this Release and supersedes all
prior agreements relating to the same subject matter. The Executive has not
relied upon any representations, promises or agreements of any kind except
those set forth herein in signing this Release.

5.     In the event that any provision of this Release should be held to be
invalid or unenforceable, each and all of the other provisions of this Release
shall remain in full force and effect. If any provision of this Release is found
to be invalid or unenforceable, such provision shall be modified as necessary
to permit this Release to be upheld and enforced to the maximum extent
permitted by law.

6.     This Release shall be governed by and construed in accordance with the
laws of the State of Connecticut, without reference to principles of conflict
of laws.

7.     The parties agree that any and all disputes
arising out of, or relating to, the terms of this Agreement, their
interpretation, and any of the matters herein released, shall be subject to
binding arbitration in Connecticut before the American Arbitration Association
under its National Rules for the Resolution of Employment Disputes.  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 Parties agree that the prevailing party
in any arbitration shall be awarded its reasonable attorneys’ fees and costs.  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.  This
section shall 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 Employee’s obligations
under this Agreement and the agreements incorporated herein by reference.

8.     This Release inures to the benefit of the Company and its successors
and assigns.

Signature page follows.

 

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

	
  

  	
   

  	
  OUTDOOR CHANNEL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  [NAME]

  
	
   

  	
   

  	
  [TITLE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roger L. Werner, Jr., an individual

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Roger L. Werner, Jr.

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