Why is this script erroring out?

When I run the script it errors out saying that there is a problem with the connection line.

Players.Player1.Backpack.Ragdoll:169: attempt to index global 'Humanoid' (a nil value)

• Script 'Players.Player1.Backpack.Ragdoll', Line 169
• stack end

bounce = 0

function OnEntered(Player)
	while Player.Character == nil do 
		wait()
	end
	Character = Player.Character
	Humanoid = Character.Humanoid
	wait(1)

function OnDeath()
	if bounce > 0 then return end
	bounce = 1
	Character.Archivable = true
	chrclone = Character:clone()
	Character.Archivable = false
	ch = Character:GetChildren()
	for i = 1,#ch do
		if ch[i].ClassName == "Part" or ch[i].ClassName == "Hat" then
			ch[i]:remove()
		end
	end
	Character = chrclone
	script.Parent = Character
	Character.Name = ""
	Character.Head.face:remove()
	script.face:clone().Parent = Character.Head
	Character.Parent = Workspace
	Torso = Character.Torso
---[ragdoll script]---
end
	wait(10)
	Character:remove()
end end

Humanoid.Died:connect(OnDeath)	<--- Line 169

Can any one tell me why its doing this and how to fix it?

First of all. The Humanoid is inside a function, so trying to call humanoid outside a function wont work..

bounce = 0
function OnEntered(Player)
    while Player.Character == nil do 
        wait()
    end
    Character = Player.Character
    Humanoid = Character:WaitForChild("Humanoid")
	Humanoid.Died:connect(function()
		if bounce > 0 then return end
		bounce = 1
		Character.Archivable = true
		chrclone = Character:clone()
		Character.Archivable = false
		ch = Character:GetChildren()
		for i = 1,#ch do
			if ch[i].ClassName == "Part" or ch[i].ClassName == "Hat" then
				ch[i]:remove()
			end
		end
		Character = chrclone
		script.Parent = Character
		Character.Name = ""
		Character.Head.face:remove()
		script.face:clone().Parent = Character.Head
		Character.Parent = Workspace
		Torso = Character.Torso
		---[ragdoll script]---
		wait(10)
		Character:remove()
		bounce = 0
	end)
end

Ok, after adding your edits and testing, the script does not work and doesn't even output an error. Perhaps I should give you the full thing.

bounce = 0
function OnEntered(Player)
    while Player.Character == nil do
        wait()
    end
    Character = Player.Character
    Humanoid = Character:WaitForChild("Humanoid")
    Humanoid.Died:connect(function()
        if bounce > 0 then return end
        bounce = 1
        Character.Archivable = true
        chrclone = Character:clone()
        Character.Archivable = false
        ch = Character:GetChildren()
        for i = 1,#ch do
            if ch[i].ClassName == "Part" or ch[i].ClassName == "Hat" then
                ch[i]:remove()
            end
        end
        Character = chrclone
        script.Parent = Character
        Character.Name = ""
        Character.Head.face:remove()
        script.face:clone().Parent = Character.Head
        Character.Parent = Workspace
        Torso = Character.Torso
	if Torso then
		local Head = Character:FindFirstChild("Head")
		if Head then
			local Neck = Instance.new("Weld")
			Neck.Name = "Neck"
			Neck.Part0 = Torso
			Neck.Part1 = Head
			Neck.C0 = CFrame.new(0, 1.5, 0)
			Neck.C1 = CFrame.new()
			Neck.Parent = Torso
		end
		local Limb = Character:FindFirstChild("Right Arm")
		if Limb then

			Limb.CFrame = Torso.CFrame * CFrame.new(1.5, 0, 0)
			local Joint = Instance.new("Glue")
			Joint.Name = "RightShoulder"
			Joint.Part0 = Torso
			Joint.Part1 = Limb
			Joint.C0 = CFrame.new(1.5, 0.5, 0, 0, 0, 1, 0, 1, 0, -1, -0, -0)
			Joint.C1 = CFrame.new(-0, 0.5, 0, 0, 0, 1, 0, 1, 0, -1, -0, -0)
			Joint.Parent = Torso

			local B = Instance.new("Part")
			B.TopSurface = 0
			B.BottomSurface = 0
			B.formFactor = "Symmetric"
			B.Size = Vector3.new(1, 1, 1)
			B.Transparency = 1
			B.CFrame = Limb.CFrame * CFrame.new(0, -0.5, 0)
			B.Parent = Character
			local W = Instance.new("Weld")
			W.Part0 = Limb
			W.Part1 = B
			W.C0 = CFrame.new(0, -0.5, 0)
			W.Parent = Limb

		end
		local Limb = Character:FindFirstChild("Left Arm")
		if Limb then

			Limb.CFrame = Torso.CFrame * CFrame.new(-1.5, 0, 0)
			local Joint = Instance.new("Glue")
			Joint.Name = "LeftShoulder"
			Joint.Part0 = Torso
			Joint.Part1 = Limb
			Joint.C0 = CFrame.new(-1.5, 0.5, 0, -0, -0, -1, 0, 1, 0, 1, 0, 0)
			Joint.C1 = CFrame.new(0, 0.5, 0, -0, -0, -1, 0, 1, 0, 1, 0, 0)
			Joint.Parent = Torso

			local B = Instance.new("Part")
			B.TopSurface = 0
			B.BottomSurface = 0
			B.formFactor = "Symmetric"
			B.Size = Vector3.new(1, 1, 1)
			B.Transparency = 1
			B.CFrame = Limb.CFrame * CFrame.new(0, -0.5, 0)
			B.Parent = Character
			local W = Instance.new("Weld")
			W.Part0 = Limb
			W.Part1 = B
			W.C0 = CFrame.new(0, -0.5, 0)
			W.Parent = Limb

		end
		local Limb = Character:FindFirstChild("Right Leg")
		if Limb then

			Limb.CFrame = Torso.CFrame * CFrame.new(0.5, -2, 0)
			local Joint = Instance.new("Glue")
			Joint.Name = "RightHip"
			Joint.Part0 = Torso
			Joint.Part1 = Limb
			Joint.C0 = CFrame.new(0.5, -1, 0, 0, 0, 1, 0, 1, 0, -1, -0, -0)
			Joint.C1 = CFrame.new(0, 1, 0, 0, 0, 1, 0, 1, 0, -1, -0, -0)
			Joint.Parent = Torso

			local B = Instance.new("Part")
			B.TopSurface = 0
			B.BottomSurface = 0
			B.formFactor = "Symmetric"
			B.Size = Vector3.new(1, 1, 1)
			B.Transparency = 1
			B.CFrame = Limb.CFrame * CFrame.new(0, -0.5, 0)
			B.Parent = Character
			local W = Instance.new("Weld")
			W.Part0 = Limb
			W.Part1 = B
			W.C0 = CFrame.new(0, -0.5, 0)
			W.Parent = Limb

		end
		local Limb = Character:FindFirstChild("Left Leg")
		if Limb then

			Limb.CFrame = Torso.CFrame * CFrame.new(-0.5, -2, 0)
			local Joint = Instance.new("Glue")
			Joint.Name = "LeftHip"
			Joint.Part0 = Torso
			Joint.Part1 = Limb
			Joint.C0 = CFrame.new(-0.5, -1, 0, -0, -0, -1, 0, 1, 0, 1, 0, 0)
			Joint.C1 = CFrame.new(-0, 1, 0, -0, -0, -1, 0, 1, 0, 1, 0, 0)
			Joint.Parent = Torso

			local B = Instance.new("Part")
			B.TopSurface = 0
			B.BottomSurface = 0
			B.formFactor = "Symmetric"
			B.Size = Vector3.new(1, 1, 1)
			B.Transparency = 1
			B.CFrame = Limb.CFrame * CFrame.new(0, -0.5, 0)
			B.Parent = Character
			local W = Instance.new("Weld")
			W.Part0 = Limb
			W.Part1 = B
			W.C0 = CFrame.new(0, -0.5, 0)
			W.Parent = Limb

		end
		--[
		local Bar = Instance.new("Part")
		Bar.TopSurface = 0
		Bar.BottomSurface = 0
		Bar.formFactor = "Symmetric"
		Bar.Size = Vector3.new(1, 1, 1)
		Bar.Transparency = 1
		Bar.CFrame = Torso.CFrame * CFrame.new(0, 0.5, 0)
		Bar.Parent = Character
		local Weld = Instance.new("Weld")
		Weld.Part0 = Torso
		Weld.Part1 = Bar
		Weld.C0 = CFrame.new(0, 0.5, 0)
		Weld.Parent = Torso
		--]]
	end
	wait(10)
	Character:remove()
	bounce = 0
end)
end

This was after adding your edits.