Document:

Exhibit 10.20

 

TERM LOAN AGREEMENT

 

This
Term Loan Agreement (the “Agreement”) is
made and entered into by and between the undersigned borrower (the “Borrower”) and the undersigned bank (the “Bank”) as of the date set forth on the last page of
this Agreement.

 

ARTICLE I. LOANS

 

1.1  Terms for Advance(s). [Choose One:]

 

ý    Single Advance Term Loan.   As of the date hereof, the
Borrower has obtained a term loan from the Bank in the amount of $ 3,000,000
(the “Loan Amount”). The term loan is
evidenced by a single promissory note of the Borrower to the order of the Bank
in the principal amount of the Loan Amount and dated as of the date hereof (the
“Note”).

 

o    Multiple Advance Term Loan.  Prior to n/a or the earlier
termination hereof, the Borrower may obtain advances from the Bank in an
aggregate amount not exceeding $ n/a (the “Loan Amount”).
The term loans will be evidenced by a single promissory note of the Borrower to
the Bank in the principal amount of the Loan Amount and dated as of the date
hereof (the “Note”). Although the Note will be
expressed as payable in the full Loan Amount, the Borrower will be obligated to
pay only the amounts actually disbursed hereunder, together with accrued
interest on the outstanding balance at the rates and on the dates specified
therein and such other charges provided for herein.

 

1.2  Advances and Paying
Procedure. The Bank is authorized and directed to credit any of the
Borrower’s accounts with the Bank (or to the account the Borrower designates in
writing) for all loans made hereunder, and the Bank is authorized to debit such
account or any other account of the Borrower with the Bank for the amount of
any principal, interest or expenses due under the Note or other amount due
hereunder on the due date with respect thereto. If, upon any request by the
Borrower to the Bank to issue a wire transfer, there is an inconsistency
between the name of the recipient of the wire and its identification number as
specified by the Borrower, the Bank may, without liability, transmit the payment
via wire based solely upon the identification number.

 

1.3  Closing Fee.
The Borrower will pay the Bank a one-time closing fee of $ n/a
contemporaneously with execution of this Agreement. This fee is in addition to
all other fees, expenses and other amounts due hereunder.

 

1.4  Compensating Balances.
The Borrower will maintain on deposit with the Bank in non-interest bearing
accounts average daily collected balances, in excess of that required to
support account activity and other credit facilities extended to the Borrower
by the Bank, an amount at least equal to the sum of (i) $ n/a and (ii) n/a
% of the Loan Amount as
computed on a monthly basis. If the Borrower fails to keep and maintain such
balances, it will pay a deficiency fee, payable within five days after receipt
of a statement therefor calculated on the amount by which the Borrower’s
average daily balances are less than the requirements set forth above, computed
at a rate equal to the rate set forth in the Note.

 

1.5  Expenses and Attorneys’ Fees.
Upon demand, the Borrower will immediately reimburse the Bank and any
participant in the Obligations (defined below) (“Participant”)
for all attorneys’ fees and all other costs, fees and out-of-pocket
disbursements incurred by the Bank or any Participant in connection with the
preparation, execution, delivery, administration, defense and enforcement of
this Agreement or any of the other Loan Documents (defined below), including
attorneys’ fees and all other costs and fees (a) incurred before or after
commencement of litigation or at trial, on appeal or in any other proceeding,
(b) incurred in any bankruptcy proceeding and (c) related to any waivers
or amendments with respect thereto (examples of costs and fees include but are
not limited to fees and costs for: filing, perfecting or confirming the
priority of the Bank’s lien, title searches or insurance, appraisals,
environmental audits and other reviews related to the Borrower, any collateral
or the loans, if requested by the Bank). The Borrower will also reimburse the
Bank and any Participant for all costs of collection, including all attorneys’
fees, before and after judgment, and the costs of preservation and/or
liquidation of any collateral.

 

1.6  Conditions to Borrowing.
The Bank will not be obligated to make (or continue to make) advances hereunder
unless (i) the Bank has received executed originals of the Note and all
other documents or agreements applicable to the loans described herein,
including but not limited to the documents specified in Article III
(collectively with this Agreement the “Loan Documents”),
in form and content satisfactory to the Bank; (ii) if the loan is secured,
the Bank has received confirmation satisfactory to it that the Bank has a
properly perfected security interest, mortgage or lien, with the proper
priority;  (iii) the Bank has
received certified copies of the Borrower’s governance documents and
certification of entity status satisfactory to the Bank and all other relevant
documents; (iv) the Bank has received a certified copy of a resolution or
authorization in form and content satisfactory to the Bank authorizing the loan
and all acts contemplated by this Agreement and all related documents, and
confirmation of proper authorization of all guaranties and other acts of third
parties contemplated hereunder; (v) if required by the Bank, the Bank has
been provided with Opinion of the Borrower’s counsel in form and content
satisfactory to the Bank confirming the matters outlined in Section 2.2
and such other matters as the Bank requests; (vi) no default exists under this
Agreement or under any other Loan Documents, or under any other agreements by
and between the Borrower and the Bank; and (vii) all proceedings taken in
connection with the transactions contemplated by this Agreement (including any
required environmental assessments), and all instruments, authorizations and
other documents applicable thereto, are satisfactory to the Bank and its
counsel.

 

1

 

ARTICLE II. WARRANTIES AND COVENANTS

 

While
any part of the credit granted to the Borrower under this Agreement or the
other Loan Documents is available or any obligations under any of the Loan
Documents are unpaid or outstanding, the Borrower continuously warrants and
agrees as follows:

 

2.1  Accuracy of Information.
All information, certificates or statements given to the Bank pursuant to this
Agreement and the other Loan Documents will be true and complete when given.

 

2.2  Organization and
Authority; Litigation. This Agreement and the other Loan Documents
are the legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with their terms. The execution, delivery
and performance of this Agreement and all other Loan Documents to which the
Borrower is a party (i) are within the borrower’s power; (ii) have
been duly authorized by all appropriate entity action; (iii) do not
require the approval of any governmental agency; and (iv) will not violate
any law, agreement or restriction by which the Borrower is bound. If the
Borrower is not an individual, the Borrower is validly existing and in good
standing under the laws of its state of organization, has all requisite power
and authority and possesses all licenses necessary to conduct its business and
own its properties. There is no litigation or administrative proceeding
threatened or pending against the Borrower which would, if adversely
determined, have a material adverse effect on the Borrower’s financial
condition or its property.

 

2.3  Existence; Business
Activities; Assets; Change of Control. The Borrower will
(i) preserve its existence, rights and franchises; (ii) not make any
material change in the nature or manner of its business activities;
(iii) not liquidate, dissolve, acquire another entity or merge or
consolidate with or into another entity or change its form of organization;
(iv) not amend its organizational documents in any manner that may
conflict with any term or condition of the Loan Documents; and (v) not
sell, lease, transfer or otherwise dispose of all or substantially all of its
assets. Other than the transfer to a trust beneficially controlled by the
transferor, no event shall occur which causes or results in a transfer of
majority ownership of the Borrower while any Obligations are outstanding while
the bank has any obligation to provide funding to the Borrower.

 

2.4  Use of Proceeds; Margin
Stock; Speculation. Advances by the Bank hereunder will be used exclusively
by the Borrower for the purposes represented to the Bank. The Borrower will
not, without the prior written consent of the Bank use any of the loan proceeds
to redeem, purchase, or retire any of the capital stock or declare or pay any
dividends, or make any other payments or distributions of a similar type or
nature including withdrawal distributions. The Borrower will not use any of the
loan proceeds to purchase or carry “margin” stock (as defined in Regulation U
of the Board of Governors of the Federal Reserve System). No part of any of the
proceeds will be used for speculative investment purposes, including, without
limitation, speculating or hedging in the commodities and/or futures market.

 

2.5  Environmental Matters.
Except as disclosed in a written schedule attached to this Agreement (if
no schedule is attached, there are no exceptions), there exists no
uncorrected violation by the Borrower of any federal, state or local laws
(including statutes, regulations, ordinances or other governmental restrictions
and requirements) relating to the discharge of air pollutants, water pollutants
or process waste water or otherwise relating to the environment or Hazardous
Substances as hereinafter defined, whether such laws currently exist or are
enacted in the future (collectively “Environmental Laws”).  The term “Hazardous Substances”
will mean any hazardous or toxic wastes, chemicals or other substances, the
generation, possession or existence of which is prohibited or governed by any
Environmental Laws. The Borrower is not subject to any judgment, decree, order
or citation, or a party to (or threatened with) any litigation or
administrative proceeding, which asserts that the Borrower (i) has
violated any Environmental Laws; (ii) is required to clean up, remove or
take remedial or other action with respect to any Hazardous Substances
(collectively “Remedial Action”); or
(iii) is required to pay all or a portion of the cost of any Remedial
Action, as a potentially responsible party. Except as disclosed on the Borrower’s
environmental questionnaire provided to the Bank, there are not now, nor to the
Borrower’s knowledge after reasonable investigation have there ever been, any
Hazardous Substances (or tanks or other facilities for the storage of Hazardous
Substances) stored, deposited, recycled or disposed of on, under or at any real
estate owned or occupied by the Borrower during the periods that the Borrower
owned or occupied such real estate, which if present on the real estate or in
soils or ground water, could require Remedial Action. To the Borrower’s
knowledge, there are no proposed or pending changes in Environmental Laws which
would adversely affect the Borrower or its business, and there are no
conditions existing currently or likely to exist while the Loan Documents are
in effect which would subject the Borrower to Remedial Action or other
liability. The Borrower currently complies with and will continue to timely
comply with all applicable Environmental Laws; and will provide the Bank,
immediately upon receipt, copies of any correspondence, notice, complaint,
order or other document from any source asserting or alleging any circumstance
or condition which requires or may require a financial contribution by the
Borrower or Remedial Action or other response by or on the part of the Borrower
under Environmental Laws, or which seeks damages or civil, criminal or punitive
penalties from the Borrower for an alleged violation of Environmental Laws.

 

2.6  Compliance with Laws.
The Borrower has complied with all laws (except as disclosed in Rider A
attached hereto) applicable to its business and its properties, and has all
permits, licenses and approvals required by such laws, copies of which have
been provided to the Bank.

 

2.7  Restriction on
Indebtedness. The Borrower will not create, incur, assume or have
outstanding any indebtedness for borrowed money (including capitalized leases)
except (i) any indebtedness owing to the Bank and its affiliates, and
(ii) any other indebtedness outstanding on the date hereof, and shown on
the Borrower’s financial statements delivered to the Bank prior to the date
hereof, provided that such other indebtedness will not be increased.

 

2.8  Restriction on Liens.
The Borrower will not create, incur, assume or permit to exist any mortgage,
pledge, encumbrance or other lien or levy upon or security interest in any of
the Borrower’s property now owned or hereafter acquired, except (i) taxes
and assessments which are either not delinquent or which are being contested in
good faith with adequate reserves provided; (ii) easements, restrictions
and minor title irregularities which do not, as a practical matter, have an
adverse effect upon the ownership and use of the affected property;
(iii) liens in favor of the Bank and its affiliates; and (iv) other
liens disclosed in writing to the Bank prior to the date hereof.

 

2.9  Restriction on Contingent
Liabilities. The Borrower will not guarantee or become a surety or
otherwise contingently liable for any obligations of others, except pursuant to
the deposit and collection of checks and similar matters in the ordinary course
of business.

 

2

 

2.10  Insurance. The
Borrower will maintain insurance to such extent, covering such risks and with
such insurers as is usual and customary for businesses operating similar
properties, and as is satisfactory to the Bank, including insurance for fire
and other risks insured against by extended coverage, public liability
insurance and workers’ compensation insurance; and will designate the Bank as
loss payee with a “Lender’s Loss Payable” endorsement on any casualty policies
and take such other action as the Bank may reasonably request to ensure that
the Bank will receive (subject to no other interests) the insurance proceeds on
the Bank’s collateral.

 

2.11  Taxes and Other
Liabilities. The Borrower will pay and discharge, when due, all of
its taxes, assessments and other liabilities, except when the payment thereof
is being contested in good faith by appropriate procedures which will avoid
foreclosure of liens securing such items, and with adequate reserves provided
therefor.

 

2.12  Financial Statements and
Reporting.  The financial statements and other information
previously provided to the Bank or provided to the Bank in the future are or
will be complete and accurate and prepared in accordance with generally
accepted accounting principles. There has been no material adverse change in
the Borrower’s financial condition since such information was provided to the
Bank. The Borrower will (i) maintain accounting records in accordance with generally
recognized and accepted principles of accounting consistently applied
throughout the accounting periods involved; (ii) provide the Bank with
such information concerning its business affairs and financial condition
(including insurance coverage) as the Bank may request; and (iii) without
request, provide the Bank with management-prepared financial statements:

 

o    quarterly within                        days of the end of each quarter;

 

o    monthly within                        days of the end of each month;
and annual                       
within                       
days of the end of each fiscal year.

 

2.13  Inspection of Properties
and Records; Fiscal Year. The Borrower will permit representatives
of the Bank to visit and inspect any of the properties and examine any of the
books and records of the Borrower at any reasonable time and as often as the
Bank may reasonably desire. The Borrower will not change its fiscal year.

 

2.14  Financial Status.
The Borrower will maintain at all times:

 

	
  (i)

  	
   

  	
  Net
  Working Capital in the amount of at least $                                             

  	
  (v)

  	
   

  	
  Capital
  Expenditures not to exceed $                                              per fiscal year

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii) 

  	
   

  	
  Tangible Net Worth in the amount of at least                                              

  	
  (vi)

  	
   

  	
  Cash Flow Coverage Ratio of at least                                              .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  Debt to Worth Ratio of not more than                                              

  	
  (vii)

  	
   

  	
  Officers,
  Directors, Partners, Members, and Management Salaries and Other Compensation not to exceed $                                             per fiscal year. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iv) 

  	
   

  	
  Current Ratio of at least                                              

  	
   

  	
   

  	
   

  

 

The
terms used in this Section 2.14 will have the meanings set forth in a
supplement entitled “Financial Definitions,” a copy of which the Borrower
hereby acknowledges having received with this Agreement and which is
incorporated herein by reference.

 

ARTICLE III. COLLATERAL AND GUARANTIES

 

3.1  Collateral.
This Agreement and the Note are secured by any and all security interests,
pledges, mortgages/deeds of trust (except any mortgage/deed of trust expressly
limited by its terms to a specific obligation of Borrower to Bank) or liens now
or hereafter in existence granted to the Bank to secure indebtedness of the
Borrower to the Bank, including without limitation as described in the
following documents:

 

o            Real Estate Mortgage(s)/Deed(s) of Trust
dated

covering real estate located at

 

ý            Security Agreement(s) dated 09/30/04

 

o            Possessory Collateral Pledge Agreement(s)
dated

 

o            Other

 

3.2  Guaranties.
This Agreement and the Note are guarantied by each and every guaranty now or
hereafter in existence guarantying the indebtedness of the Borrower to the Bank
(except for any guaranty expressly limited by its terms to a specific separate
obligation of Borrower to the Bank) including, without limitation, the
following:

The
Outdoor Channel, Inc.

 

3.3  Credit Balances; Setoff.
As additional security for the payment of the obligations described in the Loan
Documents and any other obligations of the Borrower to the Bank of any nature
whatsoever (collectively the “Obligations”),
the Borrower hereby grants to the Bank a security interest in, a lien on and an
express contractual right to set off against all depository account balances,
cash and any other property of the Borrower now or hereafter in the possession
of the Bank and the right to refuse to allow withdrawals from any account
(collectively “Setoff”). The Bank may, at any
time upon the occurrence of a default hereunder (notwithstanding any notice
requirements

 

3

 

or
grace/cure periods under this or other agreements between the Borrower and the
Bank) Setoff against the Obligations whether or not the
Obligations (including future installments) are then due or have been
accelerated, all without any advance or contemporaneous notice or demand of any
kind to the Borrower, such notice and demand being expressly waived.

 

The
omission of any reference to an agreement in Sections 3.1 and 3.2 above will
not affect the validity or enforceability thereof. The rights and remedies of
the Bank outlined in this Agreement and the documents identified above are intended
to be cumulative.

 

ARTICLE IV. DEFAULTS

 

4.1  Defaults. Notwithstanding
any cure periods described below, the Borrower will immediately notify the Bank
in writing when the Borrower obtains knowledge of the occurrence of any default
specified below. Regardless of whether the Borrower has given the
required notice, the occurrence of one or more of the following will constitute
a default:

 

(a)   Nonpayment. The Borrower shall fail to pay (i) any
interest due on the Note or any fees, charges, costs or expenses under the Loan
Documents by 5 days after the same becomes due; or (ii) any principal
amount of the Note when due.

 

(b)   Nonperforrnance. The Borrower or any guarantor of Borrower’s
Obligations to the Bank (“Guarantor”)
shall fail to perform or observe any agreement, term, provision, condition, or
covenant (other than a default occurring under (a), (c), (d), (e), (f) or
(g) of this Section 4.1) required to be performed or observed by the
Borrower or any Guarantor hereunder or under any other Loan Document or other
agreement with or in favor of the Bank.

 

(c)   Misrepresentation. Any financial information, statement,
certificate, representation or warranty given to the Bank by the Borrower or
any Guarantor (or any of their representatives) in connection with entering
into this Agreement or the other Loan Documents and/or any borrowing
thereunder, or required to be furnished under the terms thereof, shall prove
untrue or misleading in any material respect (as determined by the Bank in the
exercise of its judgment) as of the time when given.

 

(d)   Default on Other Obligations.  The Borrower or any Guarantor
shall be in default under the terms of any loan agreement, promissory note,
lease, conditional sale contract or other agreement, document or instrument
evidencing, governing or securing any indebtedness owing by the Borrower or any
Guarantor to the Bank or any indebtedness in excess of $ 100,000 owing by the
Borrower to any third party, and the period of grace, if any, to cure said
default shall have passed.

 

(e)   Judgments. Any judgment shall be obtained against the
Borrower or any Guarantor which, together with all other outstanding
unsatisfied judgments against the Borrower (or such Guarantor), shall exceed the
sum of $ 100,000 and shall remain unvacated, unbonded or unstayed for a period
of 30 days following the date of entry thereof.

 

(f)    Inability to Perform;
Bankruptcy/Insolvency.
(i) The Borrower or any Guarantor shall die or cease to exist; or (i) any
Guarantor shall attempt to revoke any guaranty of the Obligations described
herein, or any guaranty becomes unenforceable in whole or in part for any
reason; or (iii) any bankruptcy, insolvency or receivership proceedings,
or an assignment for the benefit of creditors, shall be commenced under any Federal
or state law by or against the Borrower or any Guarantor; or (iv) the
Borrower or any Guarantor shall become the subject of any out-of-court
settlement with its creditors; or (v) the Borrower or any Guarantor is
unable or admits in writing its inability to pay its debts as they mature; or
(vi) if the Borrower is a limited liability company, any member thereof
shall withdraw or otherwise become disassociated from the Borrower.

 

(g)   Adverse Change; Insecurity. (i) There is a material adverse change
in the business, properties, financial condition or affairs of the Borrower or
any Guarantor, or in any collateral securing the Obligations; or (it) the Bank
in good faith deems itself insecure.

 

4.2  Termination of Loans;
Additional Bank Rights. Upon the occurrence of any of the events
identified in Section 4.1, the Bank may at any time (notwithstanding any
notice requirements or grace/cure periods under this or other agreements
between the Borrower and the Bank) (i) immediately terminate its
obligation, if any, to make additional loans to the Borrower; (ii) Setoff;
and/or (iii) take such other steps to protect or preserve the Bank’s
interest in any collateral, including without limitation, notifying account
debtors to make payments directly to the Bank, advancing funds to protect any
collateral and insuring collateral at the Borrower’s expense; all without
demand or notice of any kind, all of which are hereby waived.

 

4.3  Acceleration of
Obligations. Upon the occurrence of any of the events identified in
Sections 4.1 (a) through 4.1(e) and

4.1(g), and the passage of any applicable cure periods, the Bank may at any
time thereafter, by written notice to the Borrower, declare the unpaid
principal balance of any Obligations, together with the interest accrued
thereon and other amounts accrued hereunder and under the other Loan Documents,
to be immediately due and payable; and the unpaid balance will thereupon be due
and payable, all without presentation, demand, protest or further notice of any
kind, all of which are hereby waived, and notwithstanding anything to the
contrary contained herein or in any of the other Loan Documents. Upon the
occurrence of any event under Section 4.1(f), the unpaid principal balance
of any Obligations, together with all interest accrued thereon and other
amounts accrued hereunder and under the other Loan Documents, will thereupon be
immediately due and payable, all without presentation, demand, protest or
notice of any kind, all of which are hereby waived, and notwithstanding
anything to the contrary contained herein or in any of the other Loan
Documents.  Nothing
contained in Section 4.1, Section 4.2 or this section will limit
the Bank’s right to Setoff as provided in Section 3.3 or otherwise in this
Agreement.

 

4.4  Other Remedies.
Nothing in this Article IV is intended to restrict the Bank’s rights under
any of the Loan Documents or at law, and the Bank may exercise all such rights
and remedies as and when they are available.

 

4

 

ARTICLE V. OTHER TERMS

 

5.1  Financial Definitions
Supplement.  If covenants regarding financial status apply
to this loan, the “Financial Definitions”
Supplement identified in Section 2.14 of this Agreement is hereby
incorporated into this Agreement The Borrower acknowledges receiving a copy of
such Supplement.

 

5.2  Additional Terms;
Addendum/Supplements. The warranties, covenants, conditions and
other terms described in this Section and/or in the Addendum and/or other
attached document(s) referenced in this Section are incorporated into this
Agreement:

 

ARTICLE VI. MISCELLANEOUS

 

6.1  Delay; Cumulative Remedies.
No delay on the part of the Bank in exercising any right, power or privilege
hereunder or under any of the other Loan Documents will operate as a waiver
thereof, nor will any single or partial exercise of any right, power or
privilege hereunder preclude other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein
specified are cumulative and are not exclusive of any rights or remedies which
the Bank would otherwise have.

 

6.2  Relationship to Other
Documents. The warranties, covenants and other obligations of the
Borrower (and the rights and remedies of the Bank) that are outlined in this
Agreement and the other Loan Documents are intended to supplement each other.
In the event of any inconsistencies in any of the terms in the Loan Documents,
all terms will be cumulative so as to give the Bank the most favorable rights
set forth in the conflicting documents, except that if there is a direct
conflict between any preprinted terms and specifically negotiated terms
(whether included in an addendum or otherwise), the specifically negotiated
terms will control.

 

6.3  Successors. The
rights, options, powers and remedies granted in this Agreement and the other
Loan Documents shall be binding upon the Borrower and the Bank and their
respective successors and assigns, and shall inure to the benefit of the
Borrower and the Bank and the successors and assigns of the Bank, including
without limitation any purchaser of any or all of the rights and obligations of
the Bank under the Note and the other Loan Documents. The Borrower may not
assign its rights or obligations under this Agreement or any other Loan
Documents without the prior written consent of the Bank.

 

6.4  Disclosure.  The Bank may, in connection with any sale or
potential sale of all or any interest in the Note and other Loan Documents,
disclose any financial information the Bank may have concerning the Borrower to
any purchaser or potential purchaser. From time to time, the Bank may, in its
discretion and without obligation to the Borrower, any Guarantor or any other
third party, disclose information about the Borrower and this loan to any
Guarantor, surety or other accommodation party. This provision does not
obligate the Bank to supply any information or release the Borrower from its
obligation to provide such information, and the Borrower agrees to keep all
Guarantors, sureties or other accommodation parties advised of its financial
condition and other matters which may be relevant to their obligations to the
Bank.

 

6.5  Indemnification.  Except for harm arising from the Bank’s
willful misconduct, the Borrower hereby indemnifies and agrees to defend and
hold the Bank harmless from any and all losses, costs, damages, claims and
expenses of any kind suffered by or asserted against the Bank relating to
claims by third parties arising out of the financing provided under the Loan
Documents or related to any collateral (including, without limitation, the
Borrower’s failure to perform its obligations relating to Environmental Matters
described in Section 2.5 above). This indemnification and hold harmless
provision will survive the termination of the Loan Documents and the
satisfaction of the Obligations due the Bank.

 

6.6  Notice of Claims Against
Bank; Limitation of Certain Damages. In order to allow the Bank to
mitigate any damages to the Borrower from the Bank’s alleged breach of its
duties under the Loan Documents or any other duty, if any, to the Borrower, the
Borrower agrees to give the Bank immediate written notice of any claim or
defense it has against the Bank, whether in tort or contract, relating to any
action or inaction by the Bank under the Loan Documents, or the transactions
related thereto, or of any defense to payment of the Obligations for any
reason. The requirement of providing timely notice to the Bank represents the
parties’ agreed-to standard of performance regarding claims against the Bank.
Notwithstanding any claim that the Borrower may have against the Bank, and
regardless of any notice the Borrower may have given the Bank, the Bank will not be liable to the Borrower for consequential and/or
special damages arising therefrom, except those damages arising from the Bank’s
willful misconduct.

 

6.7  Notices. Notice
of any record shall be deemed delivered when the record has been
(a) deposited in the United States Mail, postage pre-paid,
(b) received by overnight delivery service, (c) received by telex, (d) received
by telecopy, (e) received through the internet, or (f) when
personally delivered.

 

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6.8  Payments. Payments
due under the Note and other Loan Documents will be made in lawful money of the
United States. All payments may be applied by the Bank to principal, interest
and other amounts due under the Loan Documents in any order which the Bank
elects.

 

6.9  Applicable
Law and Jurisdiction; Interpretation; Joint Liability; Severability. This
Agreement and all other Loan Documents will be governed by and interpreted in
accordance with the internal laws of the State of California, except to the
extent superseded by Federal law. THE BORROWER HEREBY CONSENTS TO THE EXCLUSIVE
JURISDICTION OF ANY STATE OR. FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL
JURISDICTION OF THE BANK’S BRANCH WHERE THE LOAN WAS ORIGINATED, AND WAIVES ANY
OBJECTION BASED ON FORUM NON CONVENIENTS, WITH REGARD TO ANY ACTIONS,
CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE NOTE, THE
COLLATERAL, ANY OTHER LOAN DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR
ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING. Nothing herein will
affect the Bank’s rights to serve process in any manner permitted by law, or
limit the Bank’s right to bring proceedings against the Borrower in the
competent courts of any other jurisdiction or jurisdictions. This Agreement,
the other Loan Documents and any amendments hereto (regardless of when
executed) will be deemed effective and accepted only at the Bank’s offices, and
only upon the Bank’s receipt of the executed originals thereof. If there is more than one Borrower, the
liability of the Borrowers will be joint and several, and the reference to “Borrower”
will be deemed to refer to all Borrowers. Invalidity of any provision of this
Agreement shall not affect the validity of any other provision.

 

6.10  Copies; Entire Agreement; Modification. The Borrower hereby acknowledges the receipt
of a copy of this Agreement and all other Loan Documents.  This Agreement is a “transferable record” as
defined in applicable law relating to electronic transactions. Therefore, the
holder of this Agreement may, on behalf of Borrower, create a microfilm or
optical disk or other electronic image of this Agreement that is an
authoritative copy as defined in such law. The holder of this Agreement may
store the authoritative copy of such Agreement in its electronic form and then
destroy the paper original as part of the holder’s normal business practices.
The holder, on its own behalf, may control and transfer such authoritative copy
as permitted by such law.

 

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT
SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING
CONSIDERATION AND SIGNED BY THE PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL
PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.
THE TERMS OF THIS AGREEMENT MAY ONLY BE CHANGED BY ANOTHER WRITTEN
AGREEMENT. THIS NOTICE SHALL ALSO BE EFFECTIVE WITH RESPECT TO ALL OTHER CREDIT
AGREEMENTS NOW IN EFFECT BETWEEN BORROWER AND THE BANK. A MODIFICATION OF ANY
OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN BORROWER AND THE BANK, WHICH
OCCURS AFTER RECEIPT BY BORROWER OF THIS NOTICE, MAY BE MADE ONLY BY ANOTHER
WRITTEN INSTRUMENT. ORAL OR IMPLIED MODIFICATIONS TO SUCH CREDIT AGREEMENTS ARE
NOT ENFORCEABLE AND SHOULD NOT BE RELIED UPON.

 

6.11  Waiver of
Jury Trial. TO THE EXTENT PERMITTED BY LAW, THE BORROWER AND THE BANK HEREBY
JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING RELATING TO ANY OF THE LOAN DOCUMENTS.  THE OBLIGATIONS THEREUNDER, ANY COLLATERAL
SECURING THE OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR CONNECTED
THERETO. THE BORROWER AND THE BANK EACH REPRESENTS TO THE OTHER THAT THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

 

6.12  Attachments.  All
documents attached hereto, including any appendices, schedules, riders, and
exhibits to this Agreement, are hereby expressly incorporated by reference.

 

IN
WITNESS WHEREOF, the undersigned have executed this TERM LOAN AGREEMENT as of OCTOBER
18, 2005

 

	
  (Individual
  Borrower)

  	
  Outdoor
  Channel Holdings, Inc.

  	
   

  
	
   

  	
  Borrower
  Name (Organization)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a

  	
  Delaware
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  By

  	
  /s/
  William A. Owen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name
  and Title 

  	
  William
  A. Owen, Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  Name
  and Title 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK N.A. 

  	
  (Bank)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Maureen K. Sullivan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name
  and Title 

  	
  Maureen
  K. Sullivan,Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Address: 

  	
  43445
  Business Park Drive, Suite 113, Temecula, CA 92590

  	
   

  
	
   

  
	
  Borrower
  Telephone No.: 

  	
   

  	
   

  
													

 

6

 

Rider
A

 

Excerpt
from our Risk Factors as presented in our prospectus dated June 27, 2005
and our forms 10Qs for the first and second quarters ended March 31, 2005
and June 30, 2005

 

We may be required to pay additional state income taxes for
past years.

 

We
are required to pay income taxes in various states in which we conduct our
business operations. In the past, we have paid state income taxes only in
California (where our headquarters is located) and have not paid income taxes
to any other state. We have recently determined that we may have state income
tax liability in the eight states other than California in which our gold
prospecting properties are located. Although we expect in the near future to
gather sufficient information to enable us to apportion our income to such
states and file income tax returns in those states for past years, we can offer
no assurances as to when we will be able to file state income tax returns in
those states where we may have outstanding, current and future tax liabilities.
In general, we believe any income taxes that we may be required to pay to
states other than California will be partially offset by a refund from the
State of California for income tax amounts we have overpaid to California in
past years. We may, however, be limited as to the number of years for which we
can receive a refund from California for taxes previously paid, and we cannot
predict when we would receive any such refund. In addition, because each state
to which we may owe outstanding income taxes has a different methodology for
calculating tax owed and a different tax rate, our aggregate state income tax
liability could be greater than what we have paid to California in prior years.
Our aggregate state income tax liability, on which we may owe accrued interest
and penalties, could be material to our results of operations.

 

 

ADDENDUM TO TERM LOAN AGREEMENT AND NOTE

 

This
Addendum is made part of the Term Loan Agreement and Note (the “Agreement”)
made and entered into by and between the undersigned borrower (the “Borrower”)
and the undersigned bank (the “Bank”) as of the date identified below. The
warranties, covenants and other terms described below are hereby added to the
Agreement.

 

Financial Covenants. Financial terms used herein which are not
specifically defined herein shall have the meanings ascribed to them under
generally accepted accounting principles. For any Borrower who does not have a
separate fiscal year end for tax reporting purposes, the fiscal year will be
deemed to be the calendar year. Borrower (herein referred to as the “Subject Party”)
will maintain the following:

 

Senior Funded Debt to EBITDA Ratio as of the end of each fiscal quarter for the
fiscal quarter then ended of not more than 1.50 to 1.

 

“Senior Funded Debt to EBITDA Ratio” shall mean the ratio of Senior Funded Debt to
EBlTDA.

 

“Senior Funded Debt” shall mean indebtedness for borrowed money,
for the deferred purchase price of property not purchased on ordinary trade
terms, for capitalized leases and for other liabilities evidenced by promissory
notes or other instruments, but not including any indebtedness that has been
subordinated to the indebtedness evidenced by the Note pursuant to a writing
that has been accepted by Bank.

 

“EBITDA” shall mean net income, plus interest expense, plus income tax expense,
plus depreciation expense plus amortization expense.

 

Fixed Charge Coverage Ratio as of the end of each fiscal quarter for the
four (4) fiscal quarters then ended of at least 1.30 to 1.

 

“Fixed Charge Coverage Ratio” shall mean (a) EBITDAR minus cash taxes,
cash dividends and Maintenance Capital Expenditures divided by (b) the sum
of all required principal payments (on short and long term debt and capital
leases), interest and rental or lease expense.

 

“EBITDAR” shall mean net income, plus interest expense, plus income tax expense,
plus depreciation expense plus amortization expense plus rent or lease expense.

 

“Maintenance Capital Expenditures” shall
mean the dollar amount of Capital Expenditures that are necessary to maintain
the current level of revenues. For the purposes of the covenant calculation, at
no time shall the amount of the Capital Expenditures used be less than
$560,000.00 per fiscal year, prorated evenly for the measurement periods
required above.

 

“Capital Expenditures” shall mean the aggregate amount of all
purchases or acquisitions of fixed assets, including real estate, motor
vehicles, equipment, fixtures, leases and any other items that would be
capitalized on the books of the Subject Party under generally accepted
accounting principles. The term “Capital Expenditures” will not include
expenditures or charges for the usual and customary maintenance, repair and
retooling of any fixed asset or the acquisition of new tooling in the ordinary
course of business.

 

Financial Information and Reporting. This provision replaces in its entirety the
provision of the Agreement titled “Financial Information and Importing”.
Financial terms used herein which are not specifically defined herein shall
have the meanings ascribed to them under generally accepted accounting
principles. For any Borrower who does not have a separate fiscal year end for
tax reporting purposes, the fiscal year will be deemed to be the calendar year.
The financial statements and other information previously provided to Bank or
provided to Bank in the future are or will be complete and accurate and
prepared in accordance with generally accepted accounting principles. There has
been no material adverse change in Borrower’s financial condition since such
information was provided to Bank. Borrower will (i) maintain accounting
records in accordance with generally recognized and accepted principles of
accounting consistently applied throughout the accounting periods involved;
(ii) provide Bank with such information concerning its business affairs
and financial condition (including insurance coverage) as Bank may request; and
(iii) without request, provide to Bank the following financial
information, in form and content acceptable to Bank, pertaining to Borrower:

 

Annual Financial Statements: Not later than 90 days after the end of each
fiscal year, annual financial statements, audited by a certified public
accounting firm acceptable to Bank.

 

 

Interim
Financial Statements:
Not later than 60 days after the end of each fiscal quarter, interim financial
statements, prepared by Borrower.

 

Certificate
of
Compliance (this requirement
pertains to Borrower only, regardless of whether financial reports are
otherwise required for Borrower together with others hereundcr): Not later than
60 days after the end of each fiscal quarter, a certificate, executed by Borrower
(or, if Borrower is an entity, by Borrower’s chief financial officer or other
officer or person acceptable to Bank) certifying that the representations and
warranties set forth in the Agreement are true and correct as of the date of
the certificate and further certifying that, as of the date of the certificate,
no default exists under the Agreement.

 

Agings of Accounts Payable (this requirement pertains to Borrower only,
regardless of whether financial reports are otherwise required for Borrower together
with others hereunder): Not later than 30 days after the end of each fiscal
quarter, a detailed aging by invoice date of accounts payable as of the last
day of such period, together with an explanation of any adjustments made at the
end of such period.

 

Agings of Accounts Receivable (this requirement pertains to Borrower only,
regardless of whether financial reports are otherwise required for Borrower
together with others hereunder): Not later than 30 days after the end of each
fiscal quarter, a detailed aging by invoice date of accounts and contracts
receivable as of the last day of such period, together with an explanation of
any adjustments made at the end of such period.

 

 

	
  Dated
  as of 

  	
  October 18,
  2005

  	
   

  	
   

  
	
   

  	
   

  
	
  (Individual)

  	
  (Non-Individual)

  
	
   

  	
   

  
	
   

  	
   

  	
  Outdoor
  Channel Holdings, Inc.

  
	
  Borrower
  Name n/a

  	
  a/an
  

  	
  California
  Corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ William A. Owen

  	
   

  	
   

  
	
  Borrower
  Name n/a

  	
  Name
  and Title William A. Owen, Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name
  and Title

  
	
   

  	
   

  
	
   

  	
  Agreed
  to:

  
	
   

  	
  U.S.
  BANK N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Richard
  Young for

  	
   

  
	
   

  	
  Name
  and Title Maureen K. Sullivan, Vice President

  
												

 

 

SECOND ADDENDUM TO TERM LOAN AGREEMENT AND NOTE

 

This
Second Addendum to Term Loan Agreement and Note (this “Addendum”)
is made part of the Term Loan Agreement (the “Agreement”)
made and entered into by and between the undersigned borrower (the “Borrower”) and U.S. Bank N.A. (the “Bank”)
and the Addendum to Term Loan Agreement and Note (the “First
Addendum”) by and between Borrower and Bank, both of which documents
are dated as of the date identified below. The First Addendum and this Addendum
are both addendums to the Agreement, pursuant to which Bank has made to
Borrower that certain term loan in the original principal amount of
$3,000,000.00 that is evidenced by that certain Term Note in the original
principal amount of $3,000,000.00 by Borrower in favor of Bank. The warranties,
covenants and other terms of this Addendum hereby supplement, amend or modify
the Agreement and the First Addendum as indicated below. Capitalized terms not
defined herein shall have meanings ascribed to them in the Agreement.

 

1.     Financial Covenants.
The following financial covenant is in addition to those in the Agreement and
the First Addendum. Financial terms used herein that are not specifically
defined herein, in the Agreement, or in the First Addendum shall have the
meanings ascribed to them under generally accepted accounting principles.

 

Quarterly Profits. The Borrower shall have and shall report Net Profit After Taxes of an
amount greater than $250,000.00 for each of its fiscal quarters.

 

2.     Definition. The
following capitalized term used in this Addendum shall have the following
meaning:

 

“Net Profit After Taxes” shall mean, for any time period, the sum of the Borrower’s net income
(loss) for such period, after the amount of income tax expense (or benefit) has
been deducted (or added).

 

3.             Continuing Validity. Except as expressly modified above or in
other agreements between Borrower and Bank, the terms of the Agreement, the
First Addendum and the other Loan Documents (as defined in the Agreement),
shall remain unchanged and in full force and effect.

 

	
  Dated
  as of October 18, 2005 

  	
   

  
	
   

  	
   

  
	
  Borrower:

  	
   

  
	
   

  	
   

  
	
  Outdoor
  Channel Holdings, Inc.,

  	
   

  
	
  a
  Delaware corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  William A. Owen

  	
   

  	
   

  
	
   

  	
  William
  A. Owen, 

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
  Bank:

  	
   

  
	
   

  	
   

  
	
  U.S.
  Bank N.A.

  	
  :

  
	
   

  	
   

  
	
  By:

  	
  Richard
  Young for

  	
   

  	
   

  
	
   

  	
  Maureen
  Sullivan,

  	
   

  
	
   

  	
  Vice
  President

  	
   

  

 

 

	
   

  	
  For
  Bank Use Only

  	
  Reviewed
  by

  
	
   

  	
   

  
	
   

  	
  Due

  	
    SEPTEMBER 5, 2010

  	
   

  
	
   

  
	
   

  	
  Customer
  #

  	
  6517384088

  	
    Loan
  #

  	
   

  	
   

  
									

 

TERM NOTE

(For Term Loan Agreement)

 

	
  $3,000,000.00

  	
  OCTOBER 18, 2005

  

 

FOR
VALUE RECEIVED, the undersigned borrower (the “Borrower”),
promises to pay to the order of U.S. BANK N.A. (the
“Bank”), the principal sum of THREE MILLION AND NQ/100 Dollars ($ 3,000,000.00).

 

Interest.

 

The
unpaid principal balance will bear interest at an annual rate described in the
Interest Rate Rider attached to this Note.

 

Payment Schedule.

 

Interest
is payable beginning DECEMBER 5, 2005, and on the same date of each consecutive
month thereafter (except that if a given month does not have such a date, the
last day of such month), plus a final interest payment with the final payment
of principal.

 

Principal
is payable in 57 installments of $51,725.00 each, beginning DECEMBER 5, 2005,
and on the same date of each consecutive month thereafter (except that if a
given month does not have such a date, the last day of such month), plus a
final payment equal to all unpaid principal on SEPTEMBER 5, 2010, THE MATURITY
DATE.

 

Interest
will be computed for the actual number of days principal is unpaid, using a
daily factor obtained by dividing the stated interest rate by 360.

 

Notwithstanding
any provision of this Note to the contrary, upon any default or at any time
during the continuation thereof (including failure to pay upon maturity), the
Bank may, at its option and subject to applicable law, increase the interest
rate on this Note to a rate of 5% per annum plus the interest rate otherwise
payable hereunder. Notwithstanding the foregoing and subject to applicable law,
upon the occurrence of a default by the Borrower or any guarantor involving
bankruptcy, insolvency, receivership proceedings or an assignment for the
benefit of creditors, the interest rate on this Note shall automatically
increase to a rate of 5% per annum plus the rate otherwise payable hereunder.

 

In
no event will the interest rate hereunder exceed that permitted by applicable
law. If any interest or other charge is finally determined by a court of
competent jurisdiction to exceed the maximum amount permitted by law, the
interest or charge shall be reduced to the maximum permitted by law, and the
Bank may credit any excess amount previously collected against the balance due
or refund the amount to the Borrower,

 

Subject
to applicable law, if any payment is not made on or before its due date, the
Bank may collect a delinquency charge of 5.00% of the
unpaid amount. Collection of the late payment fee shall not be deemed to be a
waiver of the Bank’s right to declare a default hereunder.

 

Without
affecting the liability of any Borrower, endorser, surety or guarantor, the
Bank may, without notice, renew or extend the time for payment, accept partial
payments, release or impair any collateral security for the payment of this
Note, or agree not to sue any party liable on it.

 

This
Term Note constitutes the Note issued under a Term Loan Agreement dated as of
the date hereof between the Borrower and the Bank, to which Agreement reference
is hereby made for a statement of the terms and conditions under which the loan
evidenced hereby was made and a description of the terms and conditions upon
which the maturity of this Note may be accelerated, and for a description of
the collateral securing this Note.

 

 

This
Note is a “transferable record” as defined in applicable law relating to
electronic transactions. Therefore, the holder of this Note may, on behalf of
Borrower, create a microfilm or optical disk or other electronic image of this
Note that is an authoritative copy as defined in such law. The holder of this
Note may store the authoritative copy of such Note in its electronic form and
then destroy the paper original as part of the holder’s normal business
practices. The holder, on its own behalf, may control and transfer such
authoritative copy as permitted by such law.

 

All documents attached hereto, including any
appendices, schedules, riders, and exhibits to this Term Note, are hereby
expressly incorporated by reference.

 

 

The
Borrower hereby acknowledges the receipt of a copy of this
Note.

 

 

	
  (Individual
  Borrower)

  	
  Outdoor
  Channel Holdings, Inc.

  	
   

  
	
   

  	
  Borrower
  Name (Organization)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a

  	
  Delaware
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  By

  	
   /s/ William A. Owen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name
  and Title 

  	
  William
  A. Owen, Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  Name
  and Title 

  	
   

  	
   

  
										

 

 

INTEREST RATE RIDER

 

This
Rider is made part of the Term Note (the
“Note”) in the original amount of $3,000,000.00 by the undersigned
borrower (the “Borrower”) in favor of U.S. Bank
N.A. (the “Bank”) as of the date identified below. The
following interest rate description is hereby added to the Note:

 

Interest
on each advance hereunder shall accrue at an annual rate equal to 1.350% plus
the one-month LIBOR rate quoted by the Bank from Telerate Page 3750 or any
successor thereto, which shall be that one-month LIBOR rate in effect two New
York Banking Days prior to the beginning of each calendar month, adjusted for
any reserve requirement and any subsequent costs arising from a change in
government regulation, such rate to be reset at the beginning of each
succeeding month. The term ‘New York Banking Day’ means any day (other than a
Saturday or Sunday) on which commercial banks are open for business in New
York, New York. If the initial advance under this Note occurs other than on the
first day of the month, the initial one-month LIBOR rate shall be that
one-month LIBOR rate in effect two New York Banking Days prior to the date of
the initial advance, which rate plus the percentage described above shall be in
effect for the remaining days of the month of the initial advance; such
one-month LIBOR rate to be reset at the beginning of each succeeding month. The
Bank’s internal records of applicable interest rates shall be determinative in
the absence of manifest error.

 

 

	
  Dated
  as of:

  	
  OCTOBER 18,
  2005

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Individual
  Borrower)

  	
  Outdoor
  Channel Holdings, Inc.

  	
   

  
	
   

  	
  Borrower
  Name (Organization)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a

  	
  Delaware
  Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  By

  	
   /s/ William A. Owen

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name
  and Title 

  	
  William
  A. Owen, Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower
  Name

  	
  N/A

  	
   

  	
  Name
  and Title 

  	
   

  	
   

  
											

 

 

(Local Currency – Single
Jurisdiction)

 

ISDA®

 

International Swap Dealers Association, Inc.

 

MASTER AGREEMENT

 

dated as of October 18, 2005

 

U.S.
Bank National Association and Outdoor Channel Holdings, Inc. have entered
and/or anticipate entering into one or more transactions (each a “Transaction”)
that are or will be governed by this Master Agreement, which includes the
schedule (the “Schedule”), and the documents and other confirming evidence
(each a “Confirmation”) exchanged between the parties confirming those
Transactions.

 

Accordingly,
the parties agree as follows: 

 

1.             Interpretation

 

(a)           Definitions. The terms defined in Section 12 and in
the Schedule will have the meanings therein specified for the purpose of
this Master Agreement.

 

(b)           Inconsistency. In the event of any inconsistency between the
provision of the Schedule and the other provisions of this Master
Agreement, the Schedule will prevail. In the event of any inconsistency between the
provision of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

 

(c)           Single Agreement. All Transactions are entered into in reliance on the fact that this
Master Agreement and all Confirmations form a single agreement between the
parties (collectively referred to as this “Agreement”), and the parties would
not otherwise enter into any Transactions.

 

2.             Obligations

 

(a)           General Conditions.

 

(i)            Each party will make each payment or delivery
specified in each Confirmation to be made by it, subject to the other
provisions of this Agreement.

 

(ii)           Payments under this agreement will be made on
the due date for value on that date in the place of the account specified in
the relevant Confirmation or otherwise pursuant to this Agreement, in freely
transferable funds and in the manner customary for payments in the required
currency.

 

(iii)          Each obligation of each party under
Section 2(a)(i) is subject to (1) the condition precedent that no
Event of Default or Potential Event of Default with respect to the other party
has occurred and is continuing, (2) the condition precedent that no Early
Termination Date in respect of the relevant Transaction has occurred or been
effectively designated and (3) each other applicable condition precedent
specified in this Agreement.

 

Copyright © 1992 by International Swap Dealers Association, Inc.

Second Printing

 

 

(b)           Change of
Account. Either party may
change its account for receiving a payment or delivery by giving notice to the
other party at least five Local Business Days prior to the scheduled date for
the payment or delivery to which such change applies unless such other party
gives timely notice of a reasonable objection to such change.

 

(c)           Netting. If on any date amounts would otherwise be
payable:

 

(i)            in the same currency; and

 

(ii)           in respect of the same Transaction,

 

by
each party to the other, then, on such date, each party’s obligation to make
payment of any such amount will be automatically satisfied and discharged and,
if the aggregate amount that would otherwise have been payable by one party
exceeds the aggregate amount that would otherwise have been payable by the
other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess
of the larger aggregate amount over the smaller aggregate amount.

 

The
parties may elect in respect of two or more Transactions that a net amount will
be determined in respect of all amounts payable on the same date in the same
currency in respect of such Transactions, regardless of whether such amounts
are payable in respect of the same Transaction. The election may be made in the
Schedule or a Confirmation by specifying that subparagraph (ii) above
will not apply to the Transactions identified as being subject to the election,
together with the starting date (in which case subparagraph (ii) above
will not, or will cease to, apply to such Transactions from such date). This
election may be made separately for different groups of Transactions and will
apply separately to each pairing of branches or offices through which the
parlies make and receive payments or deliveries.

 

(d)           Default
Interest;  Other
Amounts. Prior to
the occurrence or effective designation of an Early Termination Date in respect
of the relevant Transaction, a party that defaults in the performance of any
payment obligation will, to the extent permitted by law and subject to
Section 6(c), be required to pay interest (before as well as after
judgment) on the overdue amount to the other party on demand in the same
currency as such overdue amount, for the period from (and including) the
original due date for payment to (but excluding) the date of actual payment, at
the Default Rate. Such interest will be calculated on the basis of daily compounding and
the actual number of days elapsed. If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this
Agreement.

 

3.             Representations

 

Each
party represents to the other party (which representations will be deemed to be
repeated by each party on each date on which a Transaction is entered into)
that

 

(a)           Basic
Representations.

 

(i)            Status. It is duly organized and validly existing
under the laws of the jurisdiction of its organization or incorporation and, if
relevant under such laws, in good standing;

 

(ii)           Powers. It has the power to execute this Agreement
and any other documentation relating to this Agreement to which it is a party,
to deliver this Agreement and any other documentation relating to this
Agreement that it is required by this Agreement to deliver and to perform its
obligations under this Agreement and any obligations it has under any Credit
Support Document to which it is a party and has taken all necessary action to
authorize such execution, delivery and performance;

 

(iii)          No Violation or
Conflict. Such execution,
delivery and performance do act violate or conflict with any law applicable to
it, any provision of its constitutional
documents, any order or judgment of any court or other agency of government
applicable to it or any of its assets or any contractual restriction binding on
or affecting it or any of its assets;

 

2

 

(iv)          Consents. All governmental and other consents that are
required to have been obtained by it with respect to this Agreement or any
Credit Support Document to which it is a party have been obtained and are in
full force and effect and all conditions of any such consents have been
complied with; and

 

(v)           Obligations
Binding. Its obligations
under this Agreement and any Credit Support Document to which it is a party
constitute its legal, valid and binding obligations, enforceable in accordance
with their respective terms (subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general
application (regardless of whether enforcement is sought in a proceeding in
equity or at law)).

 

(b)           Absence of
Certain Events. No Event
of Default or Potential Event of Default or, to its knowledge, Termination
Event with respect to it has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any Credit Support document to which it is
a party.

 

(c)           Absence of
Litigation. There is not
pending or, to its knowledge, threatened against it or any of its Affiliates any
action, suit or proceeding at law or in equity or before any court, tribunal,
governmental body, agency or official or any arbitrator that is likely to
affect the legality, validity or enforceability against it of this Agreement or
any Credit Support Document to which it is a party or its ability to perform
its obligations under this Agreement or such Credit Support Document.

 

(d)           Accuracy
of Specified Information. All
applicable information that is furnished in writing by or on behalf of it to
the other party and is identified for the purpose of this Section 3(d) in the
Schedule is, as of the date of the information, true, accurate and complete in
every material respect.

 

4.             Agreements

 

Each
party agrees with the other that, so long as either party has or may have any
obligation under this Agreement or under any Credit Support Document to which
it is a party;

 

(a)           Furnish
Specified Information. It
will deliver to the other party any forms, documents or certificates specified in
the Schedule or any Confirmation by the date specified in the Schedule or such
Confirmation or, if none is specified, as soon as reasonably practicable.

 

(b)           Maintain
Authorizations. It will
use all reasonable efforts to maintain in full force and effect all consents of
any governmental or other authority that are required to be obtained by it with
respect to this Agreement or any Credit Support Document to which it is a party
and will use all reasonable efforts to obtain any that may become necessary in
the future.

 

(c)           Comply with
Laws. It will comply in
all material respects with all applicable laws and orders to which it may be
subject if failure so to comply would materially impair its ability to perform
its obligations under this Agreement or any Credit Support Document to which it
is a party.

 

5.             Events of Default and
Termination Events

 

(a)           Events of
Default. The occurrence
at any time with respect to a party or, if applicable, any Credit Support
Provider of such party or any Specified Entity of such party of any of the following
events constitutes an event of default (an “Event of Default”) with respect to
such party;

 

(i)            Failure to
Pay or Deliver. Failure
by the party to make, when due, any payment under this Agreement or delivery
under Section 2(a)(i) or 2(d) required to be made by it if such failure is not
remedied on or before the third Local Business Day after notice of such failure
is given to the party;

 

(ii)           Breach of
Agreement. Failure by the
party to comply with or perform any agreement or obligation (other than an
obligation to make any payment under this Agreement or delivery

 

3

 

under
Section 2(a)(i) or 2(d) or to give notice of a Termination Event) to be
complied with or performed by the party in accordance with this Agreement if
such failure is not remedied on or before the thirtieth day after notice of
such failure is given to the party;

 

(iii)          Credit Support
Default.

 

(1)           failure by the party or any Credit Support
Provider of such party to comply with or perform any agreement or obligation to
be complied with or performed by it in accordance with any Credit Support
Document if such failure is continuing after any applicable grace period bas
elapsed;

 

(2)           the expiration or termination of such Credit
Support Document or the failing or ceasing of such Credit Support Document to
be in full force and effect for the purpose of this Agreement (in either case
other than in accordance with its terms) prior to the satisfaction of all
obligations of such party under each Transaction to which such Credit Support
Document relates without the written consent of the other party; or

 

(3)           the party or such Credit Support Provider
disaffirms, disclaims, repudiates or rejects, in

whole or in part, or challenges the validity of, such Credit Support Document;

 

(iv)          Misrepresentation. A representation made or repeated or deemed
to have been made or repeated by the party or any Credit Support Provider of
such party in this Agreement or any Credit Support Document proves to have been
incorrect or misleading in any material respect when made or repeated or deemed
to have been made or repeated;

 

(v)           Default under
Specified Transaction. The
party, any Credit Support Provider of such party or any applicable Specified
Entity of such party (1) defaults under a Specified Transaction and, after
giving effect to any applicable notice requirement or grace period, there
occurs a liquidation of, an acceleration of obligations under, or an early
termination of, that Specified Transaction, (2) defaults, after giving effect
to any applicable notice requirement or grace period, in making any payment or
delivery due on the last payment, delivery or exchange date of, or any payment
on early termination of, a Specified Transaction (or such default continues for
at least three Local Business Days if there is no applicable notice requirement
or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in whole
or in part, a Specified Transaction (or such action is taken by any person or
entity appointed or empowered to operate it or act on its behalf);

 

(vi)          Cross Default. If “Cross Default” is specified in the
Schedule as applying to the party, the occurrence or existence of (1) a
default, event of default or other similar condition or event (however described),
in respect of such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party under one or more agreements or
instruments relating to Specified Indebtedness of any of them (individually or
collectively) in an aggregate amount of not less than the applicable Threshold
Amount (as specified in the Schedule) which has resulted in such Specified
Indebtedness becoming, or becoming capable at such time of being declared, due
and payable under such agreements or instruments, before it would otherwise
have been due and payable or (2) a default by such party, such Credit Support
Provider or such Specified Entity (individually or collectively) in making one
or more payments on the due date thereof in an aggregate amount of not less
than the applicable Threshold Amount under such agreements or instruments
(after giving effect to any applicable notice requirement or grace period);

 

(vii)         Bankruptcy. The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party:

 

(1)           is dissolved (other than, pursuant to a
consolidation, amalgamation or merger); (2) becomes insolvent or is unable to
pay its debts or fails or admits in writing its inability generally to pay its
debts as they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or has
instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting

 

4

 

creditors’ rights, or a
petition is present for its winding-up or liquidation, and, in the case of any
such proceeding or petition instituted or presented against it, such proceeding
or petition (A) results in a judgment of insolvency or bankruptcy or the entry
of an order for relief or the
making of an order for its winding-up or liquidation or (B) is not dismissed,
discharged, stayed or restrained in each case within 30 days of the institution
or presentation thereof; (5) has a resolution passed for its winding-up,
official management or liquidation (other than pursuant to a consolidation,
amalgamation or merger); (6) seeks or becomes subject to the appointment of an
administrator, provisional liquidator, conservator, receiver, trustee,
custodian or other similar official for it or far all or substantially all its
assets; (7) has a secured party take possession of all or substantially all its
assets or has a distress, execution, attachment, sequestration or other legal
process levied, enforced or sued on or against all or substantially all its
assets and such secured party maintains possession, or any such process is not
dismissed, discharged, stayed or restrained, in each case within 30 days
thereafter; (8) causes or is subject to any event with respect to it which,
under the applicable laws of any jurisdiction, has an analogous effect to any
of the events specified in clauses (1) to (7) (inclusive); or (9) takes any
action in furtherance of, indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

 

(viii)        Merger Without
Assumption. The party or any
Credit Support Provider of such party consolidates or amalgamates with, or
merges with or into, or transfers all or substantially all its assets to,
another entity and, at the time of such consolidation, amalgamation, merger or
transfer:

 

(1)           the resulting, surviving or transferee entity fails to assume all the
obligations of such party or such Credit Support Provider under this Agreement
or any Credit Support Document to which it or its predecessor was a party by
operation of law or pursuant to an agreement reasonably satisfactory to the
other party to this Agreement; or

 

(2)           the benefits of any Credit Support Document fail to extend (without the
consent of the other party) to the performance by such resulting, surviving or
transferee entity of its obligations under this Agreement.

 

(b)   Termination
Events. The occurrence at
any time with respect to a party or, if applicable, any Credit Support Provider
of such party or any Specified Entity of such party of any event specified
below constitutes an Illegality if the event is specified in (i) below, and, if
specified to be applicable, a Credit Event Upon Merger if the event is
specified pursuant to (ii) below or an Additional Termination Event if the
event is specified pursuant to (iii) below:

 

(i)            Illegality. Due
to the adoption of, or any change in, any applicable law after the date on
which a Transaction is entered into, or due to the promulgation of, or any
change in, the interpretation by any court, tribunal or regulatory authority
with competent jurisdiction of any applicable law after such date, it becomes
unlawful (other than as a result of a breach by the party of Section 4(b)) for
such party (which will be the Affected Party):

 

(1)           to perform any absolute or contingent obligation to make a payment or
delivery or to receive a payment or delivery in respect of such Transaction or
to comply with any other material provision of this Agreement relating to such
Transaction; or

 

(2)           to perform, or for any Credit Support Provider of such party to
perform, any contingent or other obligation which the party (or such Credit
Support Provider) has under any Credit Support Document relating to such
Transaction;

 

(ii)           Credit Event Upon Merger.  If “Credit Event Upon Merger” is specified in the Schedule as applying
to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges
with or into, or transfers all or substantially all its assets to, another
entity and such action does not constitute an event described in Section
5(a)(viii) but the creditworthiness of the resulting, surviving or transferee
entity is materially weaker than that of X, such Credit Support Provider or
such Specified Entity,

 

5

 

as the case may be,
immediately prior to such action (and, in such event, X or its successor or
transferee, as appropriate, will be the Affected Party); or

 

(iii)          Additional Termination Event. If any “Additional Termination Event” is
specified in the Schedule or any Confirmation as applying, the occurrence of
such event (and, in such event, the Affected Party or Affected Parties shall be
as specified for such Additional Termination Event in the Schedule or such
Confirmation).

 

(c)   Event of
Default and Illegality. If an
event or circumstance which would otherwise constitute or give rise to an Event
of Default also constitutes an illegality, it will be treated as an illegality
and will not constitute an Event of Default.

 

6.             Early Termination

 

(a)   Right to
Terminate following Event of Default.  If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then
continuing, the other party (the “Non-defaulting Party”) may, by not more than
20 days notice to the Defaulting Party specifying the relevant Event of
Default, designate a day not earlier than the day such notice is effective as
an Early Termination Date in respect of all outstanding Transactions. If,
however, “Automatic Early Termination” is specified in the Schedule as applying
to a party, then an Early Termination Date in respect of all outstanding
Transactions will occur immediately upon the occurrence with respect to such party
of an Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to
the extent analogous thereof, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default specified
in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

 

(b)   Right to
Terminate Following Termination Event.

 

(i)            Notice.  If a Termination Event occurs, an Affected
Party will, promptly upon becoming aware of it, notify the other party,
specifying the nature of that Termination Event and each Affected Transaction
and will also give such other information about that Termination Event as the
other party may reasonably require.

 

(ii)           Two Affected Parties. If an Illegality under Section 5(b)(i)(l)
occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under
Section 6(b)(i) on action to avoid that Termination Event.

 

(iii)          Right to Terminate.  If:

 

(1)           an agreement under Section 6(b)(ii) has not been effected with respect
to all Affected Transactions within 30 days after an Affected Party gives
notice under Section 6(b)(i); or

 

(2)           an Illegality other than that referred to in Section 6(b)(ii), a Credit
Event Upon Merger or an Additional Termination Event occurs,

 

either party in the case of
an Illegality, any Affected Party in the case of an Additional Termination
Event if there is more than one Affected Party, or the party which is not the
Affected Party in the case of a Credit Event Upon Merger or an Additional
Termination Event if there is only one Affected Party may, by not more than 20
days notice to the other party and provided that the relevant Termination Event
is then continuing, designate a day not earlier than the day such notice is
effective as an Early Termination Date in respect of all Affected Transactions.

 

(c)   Effect of
Designation.

 

(i)            If notice designating an Early Termination
Date is given under Section 6(a) or (b), the Early Termination Date will occur
on the date so designated, whether or not the relevant Event of Default or
Termination is then continuing.

 

6

 

(ii)           Upon the occurrence or effective designation of an Early Termination
Date, no further payments or deliveries under Section 2(a)(i) or 2(d) in
respect of the Terminated Transactions will be required to be made, but without
prejudice to the other provisions of this Agreement. The amount, if any,
payable in respect of an Early Termination Date shall be determined pursuant to
Section 6(e).

 

(d)   Calculations.

 

(i)            Statement.  On or as soon as reasonably practicable
following the occurrence of an Early Termination Date, each party will make the
calculations on its part, if any, contemplated by Section 6(e) and will provide
to the other party a statement (1) showing, in reasonable detail, such
calculations (including all relevant quotations and specifying any amount payable
under Section 6(e)) and (2) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of written confirmation from
the source of a quotation obtained in determining a Market Quotation, the
records of the party obtaining such quotation will be conclusive evidence of
the existence and accuracy of such quotation.

 

(ii)           Payment Date. An amount calculated as being due in respect
of any Early Termination Date under Section 6(e) will be payable on the day
that notice of the amount payable is effective (in the case of an Early
Termination Date which is designated or occurs as a result of an Event of
Default) and on the day which is two Local Business Days after the day on which
notice of the amount payable is effective (in the case of an Early Termination
Date which is designated as a result of a Termination Event). Such amount will
be paid together with (to the extent permitted under applicable law) interest
thereon (before as well as after judgment), from (and including) the relevant
Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days clasped.

 

(e)   Payments on
Early Termination.  If an Early Termination Date occurs, the
following provisions shall apply based on the parties’ election in the Schedule
of a payment measure, either “Market Quotation” or “Loss”, and a payment
method, either the “First Method” or the “Second Method”.  If the parties fail to designate a payment measure
or payment method in the Schedule, it will be deemed that “Market Quotation” or
the “Second Method”, as the case may be, shall apply.  The amount, if any, payable in respect of an
Early Termination Date and determined pursuant to this Section will be subject
to any Set-off.

 

(i)            Events of
Default.  If the Early Termination Date results from an
Event of Default:

 

(1)           First Method and Market Quotation.  If the First Method and Market Quotation apply, the Defaulting Party
will pay to the Non-defaulting Party the excess, if a positive number, of (A)
the sum of the Settlement Amount (determined by the Non-defaulting Party) in
respect of the Terminated Transactions and the Unpaid Amounts owing to the Non-defaulting
Party over (B) the Unpaid Amounts owing to the Defaulting Party.

 

(2)           First Method and Loss.  If the First Method and Loss apply, the Defaulting Party will pay to
the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss
in respect of this Agreement.

 

(3)           Second Method and Market Quotation.  If the Second Method and Market Quotation apply, an amount will be
payable equal to (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the Unpaid
Amounts owing to the Non-defaulting Party less (B) the Unpaid Amounts owing to
the Defaulting Party. If that amount is a positive number, the Defaulting Party
will pay it to the Non-defaulting Party; if it is a negative number, the Non-defaulting
Party will pay the absolute value of that amount to the Defaulting Party.

 

(4)           Second Method and Loss.  If the Second Method and Loss apply, an amount will be payable equal to
the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is
a positive number, the Defaulting Party will pay it to the Non-defaulting

 

7

 

Party; if it is a negative
number, the Non-defaulting Patty will pay the absolute value of that amount to
the Defaulting Party.

 

(ii)           Termination
Events. If the Early
Termination Date results from a
Termination Event

 

(1)           One
Affected Party. If there
is one Affected Party, the amount payable will be determined in accordance with
Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
applies, except that, in either case, references to the Defaulting Party and to
the Non-defaulting Party will be deemed to be references to the Affected Party
and the party which is not the Affected Party, respectively, and, if Loss
applies and fewer than all the Transactions are being terminated, Loss shall be
calculated in respect of all Terminated Transactions.

 

(2)           Two
Affected Parties. If
there are two Affected Parties:

 

(A)          If Market Quotation applies, each party will determine a Settlement
Amount in respect of the Terminated Transactions, and an amount will be payable
equal to (1) the sum of (a) one-half of the
difference between the Settlement Amount of the party with the higher
Settlement Amount (“X”) and the Settlement Amount of the party with the lower
Settlement Amount (“Y”) and (b) the Unpaid Amounts owing to X less (II) the
Unpaid Amounts owing to Y; and

 

(B)           If Loss applies, each party will determine its Loss in respect of this
Agreement (or, if fewer than all the Transactions are being terminated, in
respect of all Terminated Transactions) and an amount will be payable equal to
one-half of the difference between the Loss of the party with the higher Loss (“X”)
and the Loss of the party with the lower Loss (“Y”).

 

If the amount payable is a
positive number, Y will pay it to X; if it is a negative number, X will pay the
absolute value of that amount to Y.

 

(iii)          Adjustment
for Bankruptcy. In
circumstances where an Early Termination Date occurs because “Automatic Early
Termination” applies in respect of a party, the amount determined under this
Section 6(c) will be subject to such adjustments as are appropriate and
permitted by law to reflect any payments or deliveries made by one party to the
other under this Agreement (and retained by such other party) during the period from the relevant Early
Termination Date to the date for
payment determined under Section 6(d)(ii).

 

(iv)          Pre-Estimate. The parties agree that if Market Quotation
applies an amount recoverable under this Section 6(e) is a reasonable
pre-estimate of loss and not a penalty. Such amount is payable for the loss of
bargain and the loss of protection against future risks and except as otherwise
provided in this Agreement neither party will be entitled to recover any
additional damages as a consequence of such losses.

 

7.              Transfer

 

Neither this Agreement nor
any interest or obligation in or under this Agreement may be transferred
(whether by way of security or otherwise) by either party without the prior written
consent of the other party, except that:

 

(a)   a party may make such a transfer of this
Agreement pursuant to a consolidation or amalgamation with, or merger with or
into, or transfer of all or substantially all its assets to, another entity
(but without prejudice to any other right or remedy under this Agreement); and

 

(b)   a party may make such a transfer of all or
any part of its interest in any amount payable to it from a Defaulting Party
under Section 6(e).

 

Any purported transfer that is not in compliance
with this Section will be void.

 

8

 

8.              Miscellaneous

 

(a)   Entire
Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)   Amendments.
 No amendment modification or waiver in respect of this Agreement will
be effective unless in writing (including a writing evidence by a facsimile
transmission) and executed by each of the parties or confirmed by an exchange
of telexes or electronic messages on an electric messaging system.

 

(c)   Survival
of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)   Remedies
Cumulative.  Except as provided in this Agreement, the
rights, powers, remedies and privileges provided in this Agreement are
cumulative and not exclusive of any rights, powers, remedies and privileges provided
by law.

 

(e)   Counterparts
and Confirmations.

 

(i)            This Agreement (and each amendment,
modification, and waiver in respect of it) may be

executed
and delivered in counterparts (including by facsimile transmission), each of
which will be deemed an original.

 

(ii)           The parties intend that they are legally bound by the terms of each
Transaction from the moment they agree to those terms (whether orally or
otherwise). A Confirmation shall be entered into as soon as practicable and may
be executed and delivered in counterparts (including by facsimile transmission)
or be created by an exchange of telexes or by an exchange of electronic
messages on an electronic messaging system, which in each case will be
sufficient for all purposes to evidence a binding supplement to this Agreement.
The parties will specify therein or through another effective means that any
such counterpart, telex or electronic message constitutes a Confirmation.

 

(f)    No Waiver of
Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right power or privilege or the exercise of any other right power or privilege.

 

(g)   Headings.  The headings used in this Agreement are for convenience of reference
only and are not to affect the construction of or to be taken into
consideration in interpreting this Agreement.

 

9.             Expenses

 

A Defaulting Party will, on demand, indemnify
and hold harmless the other party for and against all reasonable out-of-pocket
expenses, including legal fees, incurred by such other party by reason of the
enforcement and protection of its rights under this Agreement or any Credit
Support Document to which the Defaulting Party is a party or by reason of the
early termination of any Transaction, including, but not limited to, costs of
collection.

 

10.           Notices

 

(a)   Effectiveness.
Any notice or other
communication in respect of this Agreement may be given in any manner set forth
below (except that a notice or other communication under Section 5 or 6 may not
be given by facsimile transmission or electronic messaging system) to the
address or number or in accordance with the electronic messaging system details
provided (see the Schedule) and will be deemed effective as indicated:

 

(i)             if in writing and delivered in person or by
courier on the date it is delivered;

 

(ii)           if sent by telex, on the day the recipient’s
answerback is received;

 

9

 

(iii)          if sent by facsimile transmission, on the
date that transmission is received by a responsible employee of the recipient
in legible form (it being agreed that the burden of proving receipt will be on
the sender and will not be met by a transmission report generated by the sender’s
facsimile machine);

 

(iv)          if sent by certified or registered mail
(airmail, if overseas) or the equivalent (return receipt requested), on the
date that mail is delivered or its delivery is attempted; or

 

(v)           if sent by electronic messaging system, on
the date that electronic message is received,

 

unless the date of that
delivery (or attempted delivery) or that receipt, as applicable, is not a Local
Business Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a Local Business Day, in which case
that communication shall be deemed given and effective on the first following day
that is a Local Business Day.

 

(b)   Change of
Addresses.  Either party may by notice to the other
change the address, telex or facsimile number or electronic messaging system
details at which notices or other communications are to be given to it.

 

11.           Governing Law and Jurisdiction

 

(a)   Governing
Law. This Agreement will
be governed by and construed in accordance with the law specified in the
Schedule.

 

(b)   Jurisdiction.
With respect to any
suit, action or proceedings relating to this Agreement (“Proceedings”), each party
irrevocably:

 

(i)            submits to the jurisdiction of the English
courts, if this Agreement is expressed to be governed by English law, or to the
non-exclusive jurisdiction of the courts of the State of New York and the
United States District Court located in the Borough of Manhattan in New York
City, if this Agreement is expressed to be governed by the laws of the State of
New York; and

 

(ii)           waives any objection which it may have at any
time to the laying of venue of any Proceedings brought in any such court,
waives any claim that such Proceedings have been brought in an inconvenient forum and further waives the right
to object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

 

Nothing in this Agreement
precludes either party from bringing Proceedings in any other jurisdiction
(outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and
Judgments Act 1982 or any modification, extension or re-enactment thereof for the
time being in force) nor will
the bringing of Proceedings in any one or more jurisdictions preclude the
bringing of Proceedings in any other jurisdiction.

 

(c)     Waiver of
Immunities. Each party irrevocably
waives, to the fullest extent permitted by applicable law, with respect to
itself and its revenues and assets (irrespective of their use or intended use),
all immunity on the grounds of sovereignty or other similar grounds from (i)
suit, (ii) jurisdiction of any court, (iii) relief by way of injunction, order
for specific performance or for recovery of property, (iv) attachment of its
assets (whether before or after judgment) and (v) execution or enforcement of
any judgment to which it or its revenues or assets might otherwise be entitled
in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to
the extent permitted by applicable law, that it will not claim any such
immunity in any Proceedings.

 

12.           Definitions

 

As used in this Agreement:

 

“Additional Termination Event” has the meaning specified in Section 5(b).

 

“Affected Party” has the meaning specified in Section 5(b).

 

10

 

“Affected Transactions” means (a) with respect to any Termination
Event consisting of an Illegality, all Transactions affected by the occurrence
of such Termination Event and (b) with respect to any otter Termination Event,
all Transactions.

 

“Affiliate” means, subject to the Schedule, in relation
to any person, any entity controlled, directly or indirectly, by the person,
any entity that controls, directly or indirectly, the person or any entity
directly or indirectly under common control with the person. For this purpose, “control”
of any entity or person means ownership of a majority of the voting power of
the entity or person.

 

“Applicable Rate” means:

 

(a)    in respect of obligations payable or
deliverable (or which would have been but for Section 2(a)(iii)) by a Defaulting
Party, the Default Rate;

 

(b)   in respect of an obligation to pay an amount
under Section 6(e) of cither party from and after the date (determined in
accordance with Section 6(d)(ii)) on which that amount is payable, the Default
Rate;

 

(c)    in respect of all other obligations payable
or deliverable (or which would have been but for Section 2(a)(iii)) by a
Non-defaulting Party, the Non-default Rate; and

 

(d)   in all other cases, the Termination Rate.

 

“consent” includes a consent, approval, action,
authorization, exemption, notice, filing, registration or exchange control
consent.

 

“Credit Event Upon Merger” has the meaning
specified in Section 5(b).

 

“Credit Support Document” means any agreement or instrument that is
specified as such in this Agreement.

 

“Credit Support Provider” has the meaning
specified in the Schedule.

 

“Default Rate” means a rate per annum equal to the cost
(without proof or evidence of any actual cost) to the relevant payee (as
certified by it) if it were to fund or of funding the relevant amount plus 1%
per annum.

 

“Defaulting Party” has the meaning specified in Section 6(a).

 

“Early Termination Date” means the date determined in accordance with
Section 6(a) or 6(b)(iii).

 

“Event of Default” has the meaning specified in Section 5(a)
and, if applicable, in the Schedule.

 

“Illegality” has the meaning specified in Section 5(b).

 

“law” includes any treaty, law, rule or regulation
and “lawful” and “unlawful” will be construed accordingly.

 

“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open
for business (including dealings in foreign exchange and foreign currency
deposits) (a) in relation to any obligation under Section 2(a)(i), in the
place(s) specified in the relevant Confirmation or, if not so specified, as
otherwise agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by
reference, in this Agreement, (b) in relation to any other payment, in the
place where the relevant account is located, (c) in relation to any notice or
other communication, including notice contemplated under Section 5(a)(i), in
the city specified in the address for notice provided by the recipient and, in
the case of a notice contemplated by Section 2(b), in the place where the
relevant new account is to be located and (d) in relation to Section
5(a)(v)(2), in the relevant locations for performance with respect to such
Specified Transaction.

 

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the
case may be, and a party, an amount that party reasonably determines in good
faith to be its total losses and costs (or gain, in which case expressed as a
negative number) in connection with this Agreement or that Terminated
Transaction or group of Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at
the election of such party but without duplication, loss or cost incurred as a
result of its terminating,
liquidating, obtaining or reestablishing any hedge or related trading position
(or any gain resulting from any of them). Loss includes losses and costs (or
gains) in respect of any payment or

 

11

 

delivery required to have been made (assuming
satisfaction of each applicable condition precedent) on or before the relevant
Early Termination Date and not made, except, so as to avoid duplication, if
Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a
party’s legal fees and out-of-pocket expenses referred to under Section 9. A
party will determine its Loss as of the relevant Early Termination Date, or, if
that is not reasonably practicable, as of the earliest date thereafter as is
reasonably practicable. A party may (but need not) determine its Loss by
reference to quotations of relevant rates or prices from one or more leading
dealers in the relevant markets.

 

“Market
Quotation” means,
with respect to one or more Terminated Transactions and a party making the
determination, an amount determined on the basis of quotations from Reference
Market-makers. Each quotation will be for an amount, if any, that would be paid
to such party (expressed as a negative number) or by such party (expressed as a
positive number) in consideration of an agreement between such party (taking
into account any existing Credit Support Document with respect to the
obligations of such party) and the quoting Reference Market-maker to enter into
a transaction (the “Replacement Transaction”) that would have the effect of
preserving for such party the economic equivalent of any payment or delivery
(whether the underlying obligation was absolute or contingent and assuming the
satisfaction of each applicable condition precedent) by the parties under
Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated
Transactions that would, but for the occurrence of the relevant Early
Termination Date, have been required after that date. For this purpose, Unpaid
Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction
would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to
the extent reasonably practicable as of the same day and time (without regard
to different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date. The day and time as of which those quotations
are to be obtained will be selected in good faith by the party obliged to make
a determination under Section 6(e), and, if each party is so obliged, after
consultation with the other. If more than three quotations are provided, the
Market Quotation will be the arithmetic mean of the quotations, without regard
to the quotations having the highest and lowest values. If exactly three such
quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more
than one quotation has the same highest value or lowest value, then one of such
quotations shall be disregarded. If fewer than three quotations are provided,
it will be deemed that the Market Quotation in respect of such Terminated
Transaction or group of Terminated Transactions cannot be determined.

 

“Non-default
Rate” means a
rate per annum equal to the cost (without proof or evidence of any actual cost)
to the Non-defaulting Party (as certified by it) if it were to fund the
relevant amount.

 

“Non-defaulting Party” has the meaning specified in Section 6(a).

 

“Potential
Event of Default” means
any event which, with the giving of notice or the lapse of time or both, would
constitute an Event of Default.

 

“Reference
Market-makers” means
four leading dealers in the relevant market selected by the party determining a
Market Quotation in good faith (a) from among dealers of the highest credit
standing which satisfy all the criteria that such party applies generally at
the time in deciding whether to offer or to make an extension of credit and (b)
to the extent practicable, from among such dealers having an office in the same
city.

 

“Scheduled
Payment Date” means a
date on which a payment or delivery is to be made under Section 2(a)(i) with
respect to a Transaction.

 

“Set-off” means set-off, offset, combination of
accounts, right of retention or withholding or similar right or requirement to
which the payer of an amount under Section 6 is entitled or subject (whether
arising under this Agreement, another contract, applicable law or otherwise)
that is exercised by, or imposed on, such payer.

 

“Settlement
Amount” means
with respect to a party and any Early Termination Date, the sum of

 

(a)   The Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

12

 

(b)   such party’s Loss (whether positive or
negative and without reference to any Unpaid Amounts) for each Terminated Transaction
or group of Terminated Transactions for which Market Quotation cannot be
determined or would not (in the reasonable belief of the party making the
determination) produce a commercially reasonable result,

 

“Specified Entity” has the
meaning specified in the Schedule.

 

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) in
respect of borrowed money.

 

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between
one party to this Agreement (or any Credit Support Provider of such party or
any applicable Specified Entity of such party) and the other party to this
Agreement (or any Credit Support Provider of such other party or any applicable
Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of these
transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

 

“Terminated Transactions” means with respect to any Early Termination Date (a) if resulting from
a Termination Event, all Affected Transactions and (b) if resulting from an
Event of Default, all Transactions (in either case) in effect immediately
before the effectiveness of the notice designating that Early Termination Date
(or, if “Automatic Early Termination” applies, immediately before that Early
Termination Date).

 

“Termination Event” means an Illegality or, if specified to be applicable, a Credit Event
Upon Merger or an Additional Termination Event.

 

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost
(without proof or evidence of any actual cost) to each party (as certified by
such party) if it were to fund or of funding such amounts.

 

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date,
the aggregate of (a) in respect of all Terminated Transactions, the amounts
that became payable (or that would have become payable but for Section 2(a)(iii))
to such party under Section 2(a)(i) on or prior to such Early Termination Date
and which remain unpaid as at such Early Termination Date and (b) in respect of
each Terminated Transaction, for each obligation under Section 2(a)(i) which
was (or would have been but for

Section 2(a)(iii)) required to be settled by delivery to such party on or prior
to such Early Termination Date and which has not been so settled as at such
Early Termination Date, an amount equal to the fair market value of that which
was (or would have been) required to be delivered as of the originally
scheduled date for delivery, in each case together with (to the extent
permitted under applicable law) interest, in the currency of such amounts, from
(and including) the date such amounts or obligations were or would have been
required to have been paid or performed to (but excluding) such Early
Termination Date, at the Applicable Rate. Such amounts of interest will be
calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b)
above shall be reasonably determined by the party obliged to make the
determination under Section 6(e) or, if each party is so obliged, it shall be
the average of the fair market values reasonably determined by both parties.

 

[SIGNATURE
PAGE TO FOLLOW]

 

13

 

IN WITNESS WHEREOF the parties have executed
this document on the respective dates specified below with effect from the date
specified on the first page of this document

 

 

	
  U.S. BANK

  	
  OUTDOOR
  CHANNEL HOLDINGS, INC.

  
	
  NATIONAL
  ASSOCIATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Maureen K. Sullivan

  	
   

  	
  By:

  	
   /s/ Perry T. Massie

  	
   

  
	
  Name:

  	
  Maureen K. Sullivan

  	
   

  	
  Name:

  	
  PERRY T. MASSIE

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  PRES CEO

  	
   

  
	
  Date:

  	
  11/2/05

  	
   

  	
  Date:

  	
   11/2/05

  	
   

  
										

 

14

 

(Local Currency-Single
Jurisdiction)

 

SCHEDULE to the MASTER AGREEMENT

dated as of October 18, 2005

between

U.S. BANK NATIONAL ASSOCIATION (“Party A”)

and

OUTDOOR CHANNEL HOLDINGS, INC. (“Party B”)

 

Part 1: Termination Provisions and
Certain Other Matters

 

(a)           “Specified Entity” means, in relation to Party A, for the
purpose of:

 

Section
5(a)(v), none;

 

Section
5(a)(vi), none;

 

Section
5(a)(vii), none; and

 

Section
5(b)(ii), none;

 

and, in relation to Party B,
for the purpose of:

 

Section 5(a)(v), All Affiliates;

 

Section 5(a)(vi), All Affiliates;

 

Section 5(a)(vii), All Affiliates; and

 

Section 5(b)(ii), All Affiliates.

 

(b)           “Specified Transaction” will have the meaning specified in Section 12
of this Agreement.

 

(c)           The “Cross-Default” provisions of Section 5(a)(vi) will apply
to Party A and Party B. In connection therewith,

 

“Specified Indebtedness” will have the meaning specified in Section
12, except that such term shall not include obligations in respect of deposits
received in the ordinary course of a party’s banking business, and

 

“Threshold Amount” means, in relation to Party A an amount equal
to Ten Million Dollars ($10,000,000.00), and in relation to Party B an amount
equal to ($0.00).

 

1

 

(d)           The “Credit
Event Upon Merger’’ provisions
of Section 5(b)(ii) will apply to Party A and Party B; provided, however, that
the phrase “materially weaker” means that the actual or implied Credit Rating
of (A) the senior long-term debt of the resulting, surviving or transferee
entity is rated less than BBB- by Standard & Poor’s Corporation or Baa3 by
Moody’s Investors Service Inc., or (B) in the event that there are no such Standard
& Poor’s Corporation or Moody’s Investors Service, Inc. ratings, the
Policies (as defined below) in effect at the time, of the party which is not
the Affected Party, would lead such non-Affected Party, solely as a result of a
change in the nature, character, identity or condition of the Affected Party
from its state (as a party to this Agreement) prior to such consolidation,
amalgamation, merger or transfer, to decline to make an extension of credit to,
or enter into a Transaction with, the resulting, surviving or transferee
entity. “Policies”, for the purposes of this definition means: (x)(i) internal
credit limits applicable to individual entities or (ii) other limits on doing
business with entities domiciled or doing business in certain jurisdictions or
engaging in certain activities, or (y) internal restrictions on doing business
with entities with whom the party which is not the Affected Party has had prior
adverse business relations.

 

In addition, Section
5(b)(ii) is hereby amended by:

 

(i)            deleting in the fourth line thereof the words
“another entity” and replacing them with the words “or receives all or
substantially all of the assets of another entity or reorganizes, incorporates,
reincorporates, or reconstitutes into or as, another entity or X, such Credit
Support Provider, or such Specified Entity, as the case may be, effects a
recapitalization, liquidating dividend, leveraged buy-out, other similar
highly-leveraged transaction, redemption of indebtedness, or stock buy-back or
similar call on equity or enters into any agreement providing for the
foregoing.”

 

(ii)           deleting in the fifth line thereof the words “the
resulting, surviving or transferee” and replacing them with the words “X or any
resulting, surviving, transferee, reorganized, or recapitalized”, and

 

(iii)          deleting in the seventh line thereof the
words “its successor or transferee” and replacing them with the words “ any
resulting, surviving, transferee, reorganized, or recapitalized entity.”

 

(e)           The “Automatic Early
Termination” provision
of Section 6(a) will not apply to Party A. As to Party B, Automatic Early
Termination shall apply.

 

(f)            Payments on Early Termination.  For the purpose of Section 6(e) of this Agreement:

 

(i)            Market Quotation will apply.

 

2

 

(ii)           The Second Method will apply.

 

(g)           Additional
Termination Event will not
apply to Party A. As to Party B, an Additional Termination Event shall occur
upon payment in full of all loans, advances, indebtedness and other obligations
of Party B (or any Specified Entity of or Credit Support Provider for Party B)
to Party A (or any Affiliate of Party A), and the termination of all
commitments (including revolving loan commitments and letters of credit) by
Party A (or any Affiliate of Party A) to extend credit to Party B (or any
Specified Entity of or Credit Support Provider of Party B) other than under
this Agreement. For the purpose of the foregoing Termination Event, the
Affected Party shall be Party B and the non-Affected Party shall be Party A.

 

Part 2:Agreement to Deliver
Documents

 

	
  Party Required To

  Deliver Document

  	
   

  	
  Form/Document/

  Certificate

  	
   

  	
  Date By Which To

  Be Delivered

  	
   

  	
  Covered By Section

  3(d) Representation

  
	
  Party B

  	
   

  	
  Certified copies of all
  resolutions and authorizations and any other documents with respect to the
  execution, delivery and performance of this Agreement satisfactory to Party A

  	
   

  	
  Upon execution and
  delivery of this Agreement

  	
   

  	
  Yes

  
	
  Party B

  	
   

  	
  Certificate of authority and
  specimen signatures of individuals executing this Agreement and Confirmations

  	
   

  	
  Upon execution and
  delivery of this Agreement and thereafter, upon request of the other Party

  	
   

  	
  Yes

  
	
  Party B

  	
   

  	
  Consolidated and consolidating
  balance sheet and income statements – quarterly (unaudited) and annually
  (audited)

  	
   

  	
  Upon request of Party A 

  	
   

  	
  Yes

  
	
  Party B

  	
   

  	
  A cross-collateralization
  agreement satisfactory to Party A from Party B and any Credit Support
  Providers for Party B, plus all other agreements deemed necessary by Party A
  to evidence such cross-collateralization satisfactory to Party A

  	
   

  	
  Upon execution and
  delivery of this Agreement

  	
   

  	
  Yes

  

 

3

 

Part 3. Miscellaneous

 

(a)             Address for
Notices. For the Purpose of
Section 10(a) of this Agreement:

 

Any notice shall be delivered to the address
or facsimile or telex number specified in
the relevant Confirmation of a Transaction. For Purposes of Sections 5
and 6 of this Agreement, any notice shall also be delivered to the following
address:

 

Address for notice or communications to Party
A:

 

U.S. Bank National
Association

ATTN: Randy Bailey /
Derivative Operations

800 Nicollet Mall

Mail Location: BC-MN-H18S

Minneapolis, Minnesota 55402

(612) 303-4128 Phone

(612) 303-1353 Fax

 

Address for notice or communications to Party
B:

 

Outdoor Channel Holdings,
Inc.

ATTN: William “Bill” Owen

43445 Business Park Drive

Temecula, California 92590

(951) 699-4749 Ext. 109 Phone

(951)699-1849 Fax

 

(b)           Calculation Agent. The Calculation Agent is Party A.

 

(c)           Credit Support Document. Credit Support Document is not applicable in
relation to Party A. Credit Support Document is applicable in relation to Party
B and shall mean each agreement and instrument, now or hereafter existing, of
any kind or nature which secures, guarantees or otherwise provides direct or
indirect assurance of payment or performance of any existing or future
obligation of Party B under this Agreement, made by or on behalf of any person
or entity (including, without limiting the generality of the foregoing, any
credit or loan agreement, note, reimbursement agreement, security agreement,
mortgage, pledge agreement, assignment of rents or any other agreement or
instrument granting any lien, security interest, assignment, charge or
encumbrance to secure any such obligation, any guaranty, suretyship, letter of
credit or subordination agreement relating to any such obligation and any “keep
well” or other financial support agreement relating to Party B or any Credit
Support Provider) in favor of Party A or any of its Affiliates. Each Credit
Support Document is incorporated by reference in, constitutes part of, and is
made in connection with,

 

4

 

this
Agreement and each Confirmation as if set forth in full in this Agreement or
such Confirmation, and each representation, warranty, covenant and agreement of
Party B contained therein is incorporated by reference herein and is repeated
and restated in favor of Party A. Party B grants to Party A a security interest
in all assets and collateral that are subject to a security interest pursuant
to each Credit Support Document of Party B.

 

(d)           Credit Support Provider. Credit Support Provider is not applicable in
relation to Party A. Credit Support Provider is applicable in relation to Party
B and means any person or entity (other than Party B), that now or hereafter
secures, guarantees or otherwise provides direct or indirect assurance of
payment or performance of any existing or future obligation of Party B under
this Agreement or any Credit Support Document, including but not limited to the
following persons and/or entities: The Outdoor Channel, Inc.

 

(e)           Governing Law. This Agreement will be governed by and
construed in accordance with the laws of the state of New York (without
reference to choice of law doctrine).

 

(f)            “Affiliate” will
have the meaning specified in Section 12 of this Agreement.

Part 4. Other Provisions

 

(a)           Set-off. Any amount (the “Early Termination Amount”)
payable to one party (the “Payee”) by the other party (the “Payer”) under Section
6(e), in circumstances where there is a Defaulting Party or one Affected Party
in the case where a Termination Event under Section 5(b)(ii) has occurred,
will, at the option of the party (“X”) other than the Defaulting Party or the
Affected Party (and without prior notice to the Defaulting Party or the
Affected Party), be reduced by its set-off against any amount(s) (the “Other
Agreement Amount”) payable (whether at such time or in the future or upon the
occurrence of a contingency) by the Payee to the Payer (irrespective of the
currency, place of payment or booking office of the obligation) under any other
agreement(s) between the Payee and the Payer or instrument(s) or undertaking(s)
issued or executed by one party to, or in favor of, the other party (and the
Other Agreement Amount will be discharged promptly and in all respects to the
extent it is so set-off). X will give notice to the other party of any set-off
effected under this section.

 

For this purpose, either the Early
Termination Amount or the Other Agreement Amount (or the relevant portion of
such amounts) may be converted by X into the currency in which the other is
denominated at the rate of exchange at which such party would be able, acting
in a reasonable manner and in good faith, to purchase the relevant amount of
such currency.

 

If an obligation is unascertained, X may in
good faith estimate that obligation and set-off in respect of the estimate,
subject to the relevant party accounting to the other when the obligation is
ascertained.

 

Nothing in this section shall be effective to
create a charge or other security interest. This section shall be without
prejudice and in addition to any right of set-off, combination of accounts,
lien or other right to which a party is at any time otherwise entitled (whether
by operation of law, contract or

 

5

 

otherwise).

 

(b)            Exchange of
Confirmations. For each
Transaction entered into hereunder, Party A shall promptly send to Party B a
Confirmation, via telex or facsimile transmission. Party B agrees to respond to
such Confirmation within 5 Business Days, either confirming agreement thereto
or requesting a correction of any error(s) contained therein. Failure by Party
B to respond within such period shall not affect the validity or enforceability
of such Transaction and shall be deemed to be an affirmation of the terms
contained in such Confirmation, absent manifest error. The parties agree that any
such exchange of telexes or facsimile transmissions shall constitute a
Confirmation for all purposes hereunder.

 

(c)            Waiver of Right
to Trial by Jury. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL
PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

(d)            Telephonic
Recording.  Each party (i) consents to the recording of
the telephone conversations of trading and marketing personnel of the parties
and their Affiliates in connection with this Agreement or any potential
Transaction and (ii) agrees to obtain any necessary consent of, and give notice
of such recording to, such personnel of it and its Affiliates.

 

(e)            Relationship
Between Parties. Section
3 of the Agreement is amended by adding the following as subsection (e):

 

“(e)         Relationship Between Parties. Absent a written agreement to the contrary;

 

(i)            It is not relying on any advice (whether
written or oral) of the other party regarding any Transaction, other than the
representations expressly made by that other party in this Agreement and in the
Confirmation in respect of that Transaction;

 

(ii)           In respect of each Transaction under this
Agreement,

 

(1)           it has the capacity to evaluate (internally
or through independent professional advice) that Transaction and has made its
own decision to enter into that Transaction;

 

(2)           it understands the terms, conditions and
risks of that Transaction and is willing to accept those terms and conditions
and to assume (financially and otherwise) those risks; and

 

(3)           the other party (a) is not acting as a
investment or commodity trading advisor for it; (b) has not given to it
(directly or indirectly through any other person) any assurance, guaranty or
representation whatsoever as to the merits (either legal, regulatory, tax,
financial, accounting or otherwise) of that Transaction or any documentation
related thereto; and (c) has not committed to unwind that Transaction.”

 

6

 

(f)             FDIC Requirements.

 

(i)            Corporate Authority. Each party (“X”) hereby represents and
warrants at all times until termination of this Agreement that X, by
appropriate corporate action, is authorized under applicable law to enter into
this Agreement, as evidenced by the execution hereof by an officer of X of the
level of vice president or higher.

 

(ii)           FIRREA Qualified Financial Contract. Each party recognizes and intends that each
Transaction entered into under this Agreement is, and shall constitute, a “qualified
financial contract” as that term is defined in Section 212 of the Financial
Institutions Reform, Recovery and Enforcement Act of 1989, as the same may be
amended, modified, or supplemented from time to time.

 

(g)            Additional
Representations. In
addition to the representations made in Section 3 of the Agreement, each party
hereby represents and warrants to the other party (which representation will be
deemed to be repeated by each party on each date on which a Transaction is
entered into) as follows:

 

(1)            No Agency. It is entering into this Agreement and each
Transaction as principal (and not as agent or in any other capacity, fiduciary
or otherwise).

 

(2)            Eligible Contract
Participant.   It is
an “eligible contract participant” as defined in Section 1a(12) of the U.S.
Commodity Exchange Act and/or an “eligible swap participant” as defined in Part
35 of the regulations of the Commodity Futures Trading Commission.

 

(3)            Line of
Business.    It has entered into this Agreement (including each Transaction
evidenced hereby) in conjunction with its line of business or the financing of
its business. It represents and warrants that all transactions effected under
this Agreement (i) will be appropriate in the conduct and management of its
business, (ii) will be entered into for non-speculative purposes, and (iii)
constitute transactions entered into for purposes of hedging or managing risks
related to its assets or liabilities as currently owned or incurred, or likely
to be owned or incurred in the conduct of its business.

 

	
  Accepted and agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  U.S. BANK

  	
  OUTDOOR
  CHANNEL

  
	
  NATIONAL
  ASSOCIATION

  	
  HOLDINGS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   /s/ Perry T. Massie

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  PERRY T. MASSIE

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  PRES, CEO

  	
   

  
										

 

7Exhibit 10.22

 

LEASE

 

This Lease (this “Lease”) is entered into
between Musk Ox Properties, L.P., a limited partnership organized under Nevada
law (“Landlord”) and Outdoor Channel Holdings, Inc., a Delaware
corporation (“Tenant”) as of January 1, 2006.

 

1.             Premises.  Landlord hereby leases to
Tenant, and Tenant hereby leases from Landlord, upon the terms and conditions
set forth herein, that certain real property, the building and other
improvements commonly known as 43445 Business Park Drive, Temecula, CA 92590
(the “Premises”).  The building on the Premises
consists of approximately 32,777 square feet.

 

2.             Term.  The initial term of this Lease
(the “Initial Term”) shall commence on January 1, 2006 (the “Commencement
Date”) and end on December 31, 2010, unless this Lease is sooner
terminated pursuant to its terms.  After
the Initial Term, provided that Tenant is not then in default, Tenant shall
have an option to renew this Lease (on the same terms and conditions, except as
otherwise specified herein) for an additional period of two (2) to five (5) years
as determined by Tenant in its sole discretion (the “First Option”) by giving
Landlord notice thereof prior to the expiration of the Initial Term, and if the
First Option is exercised, then upon the expiration of the time period selected
by Tenant upon the exercise of the First Option, provided that Tenant is not
then in default, Tenant shall have a second option to renew this Lease (on the
same terms and conditions, except as otherwise specified herein) for an
additional period of two (2) to five (5) years as determined by
Tenant in its sole discretion (the “Second Option”) by giving Landlord notice
thereof prior to the expiration of the time period selected by Tenant upon the
exercise of the First Option.  The
Initial Term, as extended in accordance with the First Option, if exercised,
and/or the Second Option, if exercised, is referred to herein as the “Term.”

 

The
First Option and the Second Option granted to Tenant is personal to the
original Tenant named in the first paragraph of this Lease, and cannot be
voluntarily assigned or exercised by any person or entity other than said
original Tenant while the original Tenant is in full and actual possession of
the Premises.  The First Option and the
Second Option granted to Tenant are not assignable, either as a part of an
assignment of this Lease or separately or apart therefrom, and neither the
First Option nor the Second Option may be separated from this Lease in any
manner, by reservation or otherwise.  Notwithstanding
the foregoing, any option of any kind granted to Tenant by Landlord may be
assigned or transferred to any subsidiary, affiliate, or the parent company of
the Tenant without the consent of Landlord.

 

3.             Rent.  Tenant shall pay Landlord as
rent for the Premises (“Rent”) for each month during the Term, that respective amount
specified on Schedule 1 per month on the first day of each calendar
month during the Term.  Rent shall be due
and payable without any deduction or offset and without prior notice or demand,
and will be made to the same address as notices to be sent under this Lease.

 

4.             Use; Compliance with Laws; Rules. 
Tenant may use the Premises for any business or commercial use
authorized by the City of Temecula.  Tenant
shall promptly observe and comply with all laws with respect to Tenant’s use of
the Premises; provided, however, that Tenant shall not be required to comply
with any laws requiring the construction of alterations in the Premises, unless
due to Tenant’s particular use of the Premises. 
Tenant shall not do or permit anything to be done in, about or with
respect to the Premises which would (a) injure the Premises or (b) vibrate,
shake, overload, or impair the efficient operation of the Premises or the
building systems located therein.  Tenant
shall comply with all reasonable rules and regulations promulgated from
time to time by Landlord.

 

5.             Insurance.  Landlord shall obtain and keep
in full force and effect, at Landlord’s sole cost, a policy of “all risk”
property insurance insuring the Premises. 
Tenant shall obtain and keep in full force 

 

 

and effect, at Tenant’s sole cost, a commercial general liability
policy of insurance protecting Tenant against claims for bodily injury,
personal injury and property damage based upon, involving or arising out of
Tenant’s use or occupancy of the Premises and all areas appurtenant
thereto.  Such insurance shall be on an
occurrence basis providing single limit coverage in an amount not less than
$2,000,000 per occurrence.  The policy
shall include coverage for liability assumed under this Lease as an “insured
contract” for the performance of Tenant’s indemnity obligations under this
Lease, and shall name Landlord as an additional insured.  In addition, Tenant shall obtain and keep in
full force and effect, at Tenant’s sole cost, a policy of “all risk” property
insurance insuring Tenant’s personal property in the Premises.  Tenant shall deliver certificates evidencing
such insurance to Landlord upon request. 
Each such insurance policy shall be in a form and from an insurance
company reasonably acceptable to Landlord.

 

6.             Taxes.  Landlord shall pay before
delinquency all real property taxes on the Premises.  Tenant shall pay before delinquency all taxes
imposed against Tenant’s personal property.

 

7.             Release and Waiver of Subrogation. 
Notwithstanding anything to the contrary herein, Landlord and Tenant
hereby release each other, and their respective agents, employees, subtenants,
and contractors, from all liability for damage to any property that is caused
by or results from a risk which is actually insured against or which would
normally be covered by “all risk” property insurance, without regard to the
negligence or willful misconduct of the entity so released.

 

8.             Indemnity.  Each party shall defend,
indemnify, protect and hold harmless the other from and against any and all
liability, loss, claim, damage and cost (including reasonable attorneys’ fees)
to the extent due to the negligence or willful misconduct of the indemnifying
party or its agents, employees or contractors or the indemnifying party’s
violation of the terms of this Lease. 
This indemnification shall survive the termination of this Lease.

 

9.             Hazardous Materials. 
Tenant shall not, without the prior written consent of Landlord, use,
store, transport or dispose of any Hazardous Material in or about the Premises,
except for Hazardous Materials normally used for janitorial purposes and
similar items.  Tenant, at its sole cost,
shall comply with all laws relating to its use of Hazardous Materials.  If Hazardous Materials stored, used, disposed
of, emitted, or released on or about the Premises by Tenant or its agents,
employees or contractors result in contamination of the Premises or the water
or soil thereunder, then Tenant shall promptly take any and all action
necessary to clean up such contamination as required by law.  Tenant shall indemnify, defend, protect and
hold Landlord and its officers, directors, employees, successors and assigns
harmless from and against, all losses, damages, claims, costs and liabilities,
including reasonable attorneys’ fees and costs, arising out of Tenant’s use,
discharge, disposal, storage, transport, release or emission of Hazardous
Materials on or about the Premises during the Term in violation of applicable
law. “Hazardous Materials” shall mean any material or substance that is now or
hereafter designated by any applicable governmental authority to be, or
regulated by any applicable governmental authority as, radioactive, toxic,
hazardous or otherwise a danger to health, reproduction or the environment.

 

10.           Repairs.  Tenant accepts the Premises in
“as is” condition.  Tenant shall maintain
in good order and condition the Premises; provided, however, that Tenant shall
in no event be required to perform any repairs and maintenance (a) necessitated
by the acts or omissions of Landlord or its agents, employees or invitees, (b) to
any of the building systems servicing the Premises or any structural portions
of the Premises, or (c) which could be properly treated as a capital
expenditure under generally accepted accounting principles as in effect from
time to time.  Except for obligations
which are Tenant’s responsibility pursuant to the preceding sentence, Landlord
shall maintain the Premises in good, working order.  Notwithstanding the foregoing, Tenant and
Landlord may mutually agree that certain costs for repairs will be borne by
Tenant.

 

 

11.           Alterations.  No alterations or improvements
shall be made to the Premises without the prior consent of Landlord.  All work performed in connection with
alterations shall comply within all laws and applicable requirements of
insurance carriers and shall be performed in a good and workmanlike manner by a
licensed contractor approved by Landlord. 
Tenant shall keep the Premises free of any liens arising out of work
performed by or for Tenant.  All
alterations that cannot be removed without material damage to the Premises
shall be deemed part of the Premises upon installation.  Unless Landlord waives such right at the time
it consents to any alteration, Landlord shall have the right to require Tenant
to remove any alterations it constructs in or on the Premises upon the
termination of this Lease.

 

12.           Services.  Landlord shall provide and pay
for water regarding the Premises.  Tenant
shall pay for all other utility services supplied to the Premises.

 

13.           Damage.  If the Premises are damaged by
any peril, Landlord shall restore the Premises to substantially the same
condition as existed immediately prior to such damage, unless this Lease is
terminated by Landlord or Tenant as set forth below.  Landlord shall have the right to terminate
this Lease, which option may be exercised by delivery to Tenant of a written
notice within thirty (30) days after the date of such damage, in the event
that:  (a) the Premises are damaged
by a peril both not covered by the type of insurance Landlord is required to
carry under this Lease and not actually covered by valid and collectible
insurance carried by Landlord to such an extent that the estimated cost to
restore the Premises exceeds five percent (5%) of the then actual replacement
cost thereof (and Tenant does not agree to pay the uninsured amount); or (b) the
damage to the Premises cannot reasonably be restored within one hundred eighty
(180) days.  If the Premises are damaged
due to any peril, Tenant shall be entitled to an abatement of all Rent to the
extent of the interference with Tenant’s use of the Premises occasioned
thereby.  If the damage resulting
therefrom cannot be (or is not in fact) repaired within one hundred eighty
(180) days following the occurrence of such event, then Tenant also shall be
entitled to terminate this Lease by delivery of written notice of termination
to Landlord at any time prior to restoration of the Premises.

 

14.           Condemnation.  If
all or any part of the Premises is taken by the exercise of the power of
eminent domain or a voluntary transfer in lieu thereof (a “Condemnation”), this
Lease shall terminate as to the part of the Premises taken.  If the Premises cannot be restored within one
hundred eighty days (180) days of the Condemnation and made reasonably suitable
for Tenant’s continued occupancy, then Tenant shall have the right to terminate
this Lease by delivery of written notice to Landlord within thirty (30) days of
such Condemnation.  If this Lease is not
terminated following a Condemnation, Landlord shall make all repairs and
alterations that are reasonably necessary to make the portion of the Premises
not taken a complete architectural unit reasonably suitable for Tenant’s
occupancy, and Rent shall be reduced in proportion to the reduction in utility
to the Premises following the Condemnation. 
Tenant shall be entitled to receive any Condemnation proceeds for the
unamortized value of alterations installed in the Premises at Tenant’s expense,
Tenant’s relocation costs and lost goodwill. 
The balance of the award shall be the property of Landlord.

 

15.           Assignment and Subletting. 
Tenant may not assign this Lease, sublet the Premises or permit any use
of the Premises by another party other than its affiliates (collectively, “Transfer”),
without the prior written consent of Landlord, which may not be unreasonably withheld.  An assignment or transfer by operation of law
or otherwise in connection with a merger, consolidation, reorganization, stock
sale or other like transaction shall also constitute a Transfer requiring
Landlord’s consent hereunder.  Landlord’s
consent to one Transfer shall not constitute consent to a subsequent transfer.

 

16.           Default.  Tenant shall be in default of
its obligations under this Lease if any of the following events occur:  (a) Tenant fails to pay any Rent when
due, when such failure continues for ten 

 

 

(10) days
after written notice from Landlord to Tenant of a delinquency; (b) Tenant
fails to perform any term, covenant or condition of this Lease (except those
requiring payment of Rent) and fails to cure such breach within thirty (30)
days after delivery of a written notice specifying the nature of the breach;
provided, however, that if more than thirty (30) days reasonably are required
to remedy the failure, then Tenant shall not be in default if Tenant commences
the cure within the thirty (30) day period and thereafter diligently endeavors
to complete the cure; (c) Tenant makes a general assignment of its assets
for the benefit of its creditors, including attachment of, execution on, or the
appointment of a custodian or receiver with respect to a substantial part of
Tenant’s property or any property essential to the conduct of its business; or (d) a
petition is filed by or against Tenant under the bankruptcy laws of the United
States or any other debtors’ relief law or statute, unless such petition is
dismissed within sixty (60) days after filing.

 

17.           Remedies.  In the event of any default by
Tenant, Landlord shall have the following remedies, in addition to all other
rights and remedies provided by any law or otherwise provided in this Lease, to
which Landlord may resort cumulatively or in the alternative:

 

a.             Landlord may, at Landlord’s election, keep
this Lease in effect and enforce by an action at law or in equity all of its
rights and remedies under this Lease, including (i) the right to recover
the Rent and other sums as they become due by appropriate legal action, (ii) the
right to make payments required of Tenant or perform Tenant’s obligations and
be reimbursed by Tenant for the cost thereof, and (iii) the remedies of
injunctive relief and specific performance to compel Tenant to perform its
obligations under this Lease.  Landlord
shall have the remedy described in California Civil Code Section 1951.4
(landlord may continue lease in effect after tenant’s breach and abandonment
and recover rent as it becomes due, if tenant has the right to sublet or
assign, subject only to reasonable limitations).

 

b.             Landlord may, at Landlord’s election,
terminate this Lease by giving Tenant written notice of termination, in which
event this Lease shall terminate on the date set forth for termination in such
notice.  Any such termination shall not
relieve Tenant from its obligation to pay sums then due Landlord or from any
claim against Tenant for damages or Rent previously accrued or then
accruing.  In the event Landlord
terminates this Lease, Landlord shall be entitled, at Landlord’s election, to
damages in an amount as permitted under applicable law, including, without
limitation:  (i) the worth at the
time of award of the amount by which the unpaid Rent for the balance of the
term after the time of award exceeds the amount of such rental loss that Tenant
proves could be reasonably avoided, computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award
plus one percent (1%); and (ii) any other amount necessary to compensate
Landlord for all detriment proximately caused by Tenant’s failure to perform
Tenant’s obligations under this Lease, or which in the ordinary course of
things would be likely to result therefrom.

 

18.           Right to Cure Defaults.  If
Tenant fails to pay any sum of money to Landlord, or fails to perform any other
act on its part to be performed hereunder, then Landlord may, but shall not be
obligated to, after passage of any applicable notice and cure periods (except
in the case of an emergency, in which case no cure period is required), make
such payment or perform such act.  All
such sums paid, and all reasonable costs and expenses of performing any such
act, shall be deemed additional Rent payable by Tenant to Landlord upon demand.

 

If
Landlord fails to perform any of its obligations under this Lease and (except
in case of an emergency posing an immediate threat to persons or property, in
which case no prior notice shall be required) fails to cure such default within
thirty (30) days after written notice from Tenant specifying the nature of such
default where such default could reasonably be cured within said thirty (30)
day period, or fails to commence such cure within said thirty (30) day period
and thereafter continuously with due diligence prosecute such cure to completion
where such default could not reasonably be cured within said 

 

 

thirty
(30) day period, then Tenant may, in addition to its other remedies, cure any
default of Landlord and demand reimbursement by Landlord for the cost of such
cure.

 

19.           Surrender; Holdover. 
Prior to expiration of this Lease, Tenant shall remove all of its
personal property and shall surrender the Premises to Landlord broom clean, in
the same condition as exists on the Commencement Date, reasonable wear and
tear, alterations that Landlord agrees in writing may be surrendered, casualty
and condemnation, excepted.  If the Premises
are not so surrendered, then Tenant shall be liable to Landlord for all costs
incurred by Landlord in returning the Premises to the required condition.  In the event that Tenant does not surrender
the Premises upon the expiration or earlier termination of this Lease as
required above, Tenant shall indemnify, defend, protect and hold harmless
Landlord from and against all loss, cost, claim, damage and liability resulting
from Tenant’s delay in surrendering the Premises and pay Landlord holdover rent
in an amount equal to one hundred fifty percent (150%) of the Rent payable
under this Lease during the last month of the Term.

 

20.           Estoppel Certificates. 
Within ten (10) calendar days after receipt of written demand by
either party, the other party shall execute and deliver to the requesting party
an estoppel certificate (a) certifying that this Lease is unmodified and
in full force and effect or, if modified, the nature of such modification; (b) acknowledging,
to the best of the responding party’s knowledge, that there are no uncured
defaults on the part of the requesting party; and (c) certifying such
other information as is reasonably required by the requesting party.

 

21.           Subordination.  This
Lease is subject and subordinate to all present and future ground leases,
underlying leases, mortgages, deeds of trust or other encumbrances, and all
renewals, modifications and replacements thereof affecting any portion of the Premises
(collectively, the “Mortgages”).  Notwithstanding
the foregoing, Landlord shall obtain a recognition agreement from the holder of
any current Mortgages in form reasonably acceptable to Tenant and such
subordination to future Mortgages shall be conditioned upon Tenant’s receipt of
such a recognition agreement from the holder of the applicable Mortgage.

 

22.           Landlord’s Right to Enter. 
Provided Landlord complies with all of Tenant’s reasonable security
measures, Landlord or its agents may, upon reasonable notice (except in the
case of emergency), enter the Premises at any reasonable time for the purpose
of inspecting the same, supplying any service to be provided by Landlord to
Tenant, making necessary alterations or repairs or for any other purpose
permitted under this Lease.

 

23.           Late Charge.  If Tenant fails to pay to
Landlord any amount due hereunder within five (5) days after the due
date, Tenant shall pay Landlord upon demand a late charge equal to five percent
(5%) of the delinquent amount.  In
addition, Tenant shall pay to Landlord interest on all amounts due, at the rate
of prime plus two percent (2%) per annum or the maximum rate allowed by law,
whichever is less, from that date which is five (5) days after the
due date to, and including, the date of the payment.

 

24.           Notices.  Any notice given under this Lease
shall be in writing and shall be hand delivered or mailed (by registered mail,
return receipt requested, postage prepaid), addressed as follows:  (a) if to Tenant:  the address of the Premises, Attn.: Chief
Financial Officer; and (b) if to Landlord: 
the address of the Premises, Attn.: Perry T. Massie.  Any notice shall be deemed to have been given
when hand delivered or, if mailed, three (3) business days after mailing.  Either party may change its address for
notices by giving the other party notice of such change.

 

25.           Effect of Conveyance.  As
used in this Lease, the term “Landlord” means the owner.  In the event of any assignment or transfer of
the Premises by Landlord, Landlord shall be and hereby is 

 

 

entirely
relieved of all covenants and obligations of Landlord accruing after the date
of such transfer, and it shall be deemed and construed that any transferee has
assumed and shall carry out all covenants and obligations thereafter to be
performed by Landlord hereunder.

 

26.           Parking.  Tenant shall have the right to
use throughout the Term the parking spaces in the parking lot on the Premises.

 

27.           Signage.  Landlord shall, in Landlord’s
reasonable discretion, upon request by Tenant, permit Tenant to install
directory signage and other signage, in accordance with a design and at a
location that is mutually acceptable to Landlord and Tenant and in accordance
with applicable laws, rules and regulations.

 

28.           Miscellaneous.  This
Lease shall in all respects be governed by and construed in accordance with the
laws of the state in which the Premises are located.  If any term of this Lease is held to be
invalid or unenforceable by any court of competent jurisdiction, then the
remainder of this Lease shall remain in full force and effect to the fullest
extent possible under the law, and shall not be affected or impaired.  This Lease may not be amended except by the
written agreement of all parties hereto. 
Time is of the essence with respect to the performance of every
provision of this Lease in which time of performance is a factor.  Any executed copy of this Lease shall be
deemed an original for all purposes.  This
Lease shall, subject to the provisions regarding assignment and subletting,
apply to and bind the respective heirs, successors, executors, administrators
and assigns of Landlord and Tenant.  The
language in all parts of this Lease shall in all cases be construed as a whole
according to its fair meaning, and not strictly for or against either Landlord
or Tenant.  The captions used in this
Lease are for convenience only and shall not be considered in the construction
or interpretation of any provision hereof. 
No waiver by either party shall be deemed a waiver of any other provision
hereof or of any subsequent breach of the same or any other provision.  When a party is required to do something by
this Lease, it shall do so at its sole cost and expense without right of
reimbursement from the other party unless specific provision is made
therefor.  If either party brings any
action or legal proceeding with respect to this Lease, the prevailing party
shall be entitled to recover reasonable attorneys’ and experts’ fees and court
costs.  Whenever one party’s consent or
approval is required to be given as a condition to the other party’s right to
take any action pursuant to this Lease, unless another standard is expressly
set forth, such consent or approval shall not be unreasonably withheld or
delayed.  This Lease may be executed in
counterparts.

 

IN
WITNESS WHEREOF, the parties have executed this Lease as of the day first above
written.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Musk
  Ox Properties, L.P.,

  	
   

  	
  Outdoor
  Channel Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Perry T. Massie

  	
   

  	
  By:

  	
  /s/
  William A. Owen

  
	
  Name:

  	
  Perry
  T. Massie

  	
   

  	
  Name:

  	
  William
  A. Owen

  
	
  Its:

  	
  General
  Partner

  	
   

  	
  Its:

  	
  Chief
  Financial Officer

  
									

 

 

SCHEDULE 1

 

RENT

 

	
  YEAR

  	
   

  	
  MONTHLY RENT

  	
   

  
	
  2006

  	
   

  	
  $

  	
  29,105.98

  	
   

  
	
  2007

  	
   

  	
  $

  	
  29,979.16

  	
   

  
	
  2008

  	
   

  	
  $

  	
  30,878.53

  	
   

  
	
  2009

  	
   

  	
  $

  	
  31,804.89

  	
   

  
	
  2010

  	
   

  	
  $

  	
  32,759.03

  	
   

  
	
  2011

  	
   

  	
  $

  	
  33,741.80

  	
   

  
	
  2012

  	
   

  	
  $

  	
  34,754.06

  	
   

  
	
  2013

  	
   

  	
  $

  	
  35,796.68

  	
   

  
	
  2014

  	
   

  	
  $

  	
  36,870.58

  	
   

  
	
  2015

  	
   

  	
  $

  	
  37,976.70

  	
   

  
	
  2016

  	
   

  	
  $

  	
  39,116.00

  	
   

  
	
  2017

  	
   

  	
  $

  	
  40,289.48

  	
   

  
	
  2018

  	
   

  	
  $

  	
  41,498.16

  	
   

  
	
  2019

  	
   

  	
  $

  	
  42,743.11

  	
   

  
	
  2020

  	
   

  	
  $

  	
  44,025.40

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