<SEC-DOCUMENT>0001144204-17-032637.txt : 20170615
<SEC-HEADER>0001144204-17-032637.hdr.sgml : 20170615
<ACCEPTANCE-DATETIME>20170615061244
ACCESSION NUMBER:		0001144204-17-032637
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		3
REFERENCES 429:			333-127686
FILED AS OF DATE:		20170615
DATE AS OF CHANGE:		20170615
EFFECTIVENESS DATE:		20170615

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Black Diamond, Inc.
		CENTRAL INDEX KEY:			0000913277
		STANDARD INDUSTRIAL CLASSIFICATION:	 [3949]
		IRS NUMBER:				581972600
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-218754
		FILM NUMBER:		17912365

	BUSINESS ADDRESS:	
		STREET 1:		2084 EAST 3900 SOUTH
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84124
		BUSINESS PHONE:		801-278-5552

	MAIL ADDRESS:	
		STREET 1:		2084 EAST 3900 SOUTH
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84124

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CLARUS CORP
		DATE OF NAME CHANGE:	19980911

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SQL FINANCIALS INTERNATIONAL INC /DE/
		DATE OF NAME CHANGE:	19980911
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>v468970_s8.htm
<DESCRIPTION>S-8
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">As filed with the Securities and Exchange Commission
on June 15, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">Registration No. 333-_____&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 4.5pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">UNITED STATES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>FORM S-8</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>BLACK DIAMOND, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 50%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>58-1972600</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(State or other jurisdiction</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">of incorporation or organization)</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2084 East 3900 South</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Salt Lake City, Utah</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 50%; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>84124</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Black Diamond, Inc. 2015 Stock Incentive
Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Clarus Corporation 2005 Stock Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Stock Option Agreement between Clarus Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>and Warren B. Kanders, dated December 23,
2002</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Full title of the plan)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Attn.: Warren B. Kanders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Black Diamond, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2084 East 3900 South</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Salt Lake City, Utah 84124</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Name and address of agent for service)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Copy to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Robert L. Lawrence, Esq.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Kane Kessler, P.C.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>666 Third Avenue</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>New York, NY 10017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(212) 541-6222</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-
2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 25%; text-align: justify"><FONT STYLE="font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 7%; text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="width: 10%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 30%; text-align: justify"><FONT STYLE="font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 8%; text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="color: #231F20">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act .</FONT><FONT STYLE="font-family: Wingdings">
&uml;</FONT><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CALCULATION OF REGISTRATION FEE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Title of securities to be registered</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount to be<BR> registered (1)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed maximum<BR> offering price<BR> per share (2)</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Proposed
maximum</B><BR><B> aggregate</B><BR>
<B>offering price</B></P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount of <BR> registration fee</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 48%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Common Stock, par value $0.0001 per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,560,961</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6.63</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,129,171.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,809.97</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">This Registration Statement covers 7,560,961 shares of common stock (the &ldquo;Common Stock&rdquo;),
$0.0001 par value per share, of Black Diamond, Inc. (the &ldquo;Registrant&rdquo;) issuable pursuant to the Registrant&rsquo;s
2015 Stock Incentive Plan (the &ldquo;2015 Incentive Plan&rdquo;). In addition, pursuant to Rule 416 under the Securities Act of
1933, as amended (the &ldquo;Securities Act&rdquo;), this Registration Statement covers an indeterminable number of additional
shares of Common Stock as may hereafter be offered or issued pursuant to the Plans, to prevent dilution resulting from stock splits,
stock dividends or similar transactions effected without receipt of consideration.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">Estimated solely for the purpose of calculating the registration fee. Pursuant to Rule 457(c) and
457(h), the proposed maximum offering price per share is based upon a price of $6.63 (the average of the high and low prices of
the Registrant&rsquo;s Common Stock as reported on the Nasdaq Global Select Market on June 12, 2017).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>As permitted by Rule 429 under the Securities
Act of 1933, as amended, the prospectus filed together with this Registration Statement shall be deemed to be a combined resale
prospectus which shall also relate to the registrant&rsquo;s Registration Statement No. 333-127686 on Form S-8.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXPLANATORY NOTE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Black Diamond, Inc., a
Delaware corporation (the &ldquo;Company&rdquo;), has prepared this Registration Statement in accordance with the requirements
of Form S-8 under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), to register 7,560,961 shares of its
common stock, par value $0.0001 per share (the &ldquo;Common Stock&rdquo;) that are reserved for issuance pursuant to the Company&rsquo;s
2015 Stock Incentive Plan (the &ldquo;2015 Incentive Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Registration Statement
also includes up to 3,800,000 shares of Common Stock previously registered on Form S-8 (Registration Statement No. 333-127686)
filed on August 19, 2005 (the &ldquo;2005 Registration Statement&rdquo;) of which (i) 3,000,000 shares of Common Stock are issuable
pursuant to the Clarus Corporation (the predecessor of the Registrant) 2005 Stock Incentive Plan (the &ldquo;2005 Incentive Plan&rdquo;);
and (ii) 800,000 shares of Common Stock issuable pursuant to the Stock Option Agreement between Clarus Corporation (the predecessor
of the Registrant) and Warren B. Kanders, dated December 23, 2002 (the &ldquo;2002 Stock Option Agreement&rdquo;). Pursuant to
General Instruction E to Form S-8, this Registration Statement incorporates by reference the contents of the 2005 Registration
Statement, except as otherwise set forth herein. The 2015 Incentive Plan, the 2005 Incentive Plan, and the 2002 Stock Option Agreement
are collectively referred to herein as the &ldquo;Plans&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Registration Statement
contains two parts. The first part contains a reoffer prospectus pursuant to Form S-3 (in accordance with Section C of the General
Instructions to the Form S-8 and in accordance with the requirements of Part&nbsp;I of Form S-3) (the &ldquo;Reoffer Prospectus&rdquo;)
which covers reoffers and resales of &ldquo;restricted securities&rdquo; and/or &ldquo;control securities&rdquo; (as such terms
are defined in Section C of the General Instructions to Form S-8) of the Company. This Reoffer Prospectus relates to up to 2,427,500
shares of Common Stock that have been or may be issued to certain officers and directors of the Company pursuant to the Plans.
Accordingly, this Reoffer Prospectus is a combined prospectus pursuant to Rule 429(a) of the Securities Act, and this Registration
Statement, which is a new registration statement, also constitutes a post-effective amendment to the 2005 Registration Statement
(Registration Statement No. 333-127686) pursuant to Rule 429(b) of the Securities Act. The second part of this Registration Statement
contains information required in the Registration Statement pursuant to Part II of Form S-8 and will be used for offers of shares
of Common Stock of the Company pursuant to the 2015 Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART I</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN THE SECTION 10(a)
PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><B>Item 1.</B></TD><TD STYLE="text-align: justify"><B>Plan Information.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The document(s) containing
the information specified in Part I of Form S-8 will be sent or given to participants in the Plans as specified by Rule 428(b)(1)
under the Securities Act. Such document(s) are not being filed with the Securities and Exchange Commission, but constitute, along
with the documents incorporated by reference into this Registration Statement, a prospectus that meets the requirements of Section
10(a) of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><B>Item 2.</B></TD><TD STYLE="text-align: justify"><B>Company Information and Employee Plan Annual Information.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company will furnish
without charge to each person to whom the prospectus is delivered, upon the written or oral request of such person, a copy of any
and all of the documents incorporated by reference in Item 3 of Part II of this Registration Statement, other than exhibits to
such documents (unless such exhibits are specifically incorporated by reference to the information that is incorporated). Those
documents are incorporated by reference in the Section 10(a) prospectus. Requests should be directed to Black Diamond, Inc., 2084
East 3900 South, Salt Lake City, Utah 84124, Attention: Secretary; Telephone number (801) 278-5552.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>Note</B>: The reoffer
prospectus referred to in the Explanatory Note follows this page.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">REOFFER PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">BLACK DIAMOND, INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2,427,500 Shares of Common Stock,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>par value $0.0001 per share</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Prospectus relates
to shares (the &ldquo;Shares&rdquo;) of common stock, par value $0.0001 per share, of Black Diamond, Inc., a Delaware corporation
(which may be referred to as the &ldquo;Company,&rdquo; &ldquo;we,&rdquo; &ldquo;our&rdquo; or &ldquo;us&rdquo;), which may be
offered and sold from time to time by certain stockholders of the Company (the &ldquo;Selling Stockholders&rdquo;) who have acquired
or will acquire such Shares pursuant to stock options and stock grants issued or issuable under (i) the Company&rsquo;s 2015 Stock
Incentive Plan (the &ldquo;2015 Incentive Plan&rdquo;); (ii) Clarus Corporation (the predecessor of the Company) 2005 Stock Incentive
Plan (the &ldquo;2005 Incentive Plan&rdquo;); and (iii) the Stock Option Agreement between Clarus Corporation (the predecessor
of the Company) and Warren B. Kanders, dated December 23, 2002 (the &ldquo;2002 Stock Option Agreement&rdquo;). The 2015 Incentive
Plan, the 2005 Incentive Plan, and the 2002 Stock Option Agreement are collectively referred to herein as the &ldquo;Plans&rdquo;.
See &ldquo;Selling Stockholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company will not receive
any of the proceeds from sales of the Shares by any of the Selling Stockholders. The Shares may be offered from time to time by
any or all of the Selling Stockholders (and their donees and pledgees) through ordinary brokerage transactions, in negotiated transactions
or in other transactions, at such prices as he or she may determine, which may relate to market prices prevailing at the time of
sale or be a negotiated price. See &ldquo;Plan of Distribution.&rdquo; All costs, expenses and fees in connection with the registration
of the Shares will be borne by the Company. Brokerage commissions and similar selling expenses, if any, attributable to the offer
or sale of the Shares will be borne by the Selling Stockholder (or their donees and pledgees).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Each Selling Stockholder
and any broker executing selling orders on behalf of a Selling Stockholder may be deemed to be an &ldquo;underwriter&rdquo; as
defined in the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). If any broker-dealers are used to effect
sales, any commissions paid to broker-dealers and, if broker-dealers purchase any of the Shares as principals, any profits received
by such broker-dealers on the resale of the Shares, may be deemed to be underwriting discounts or commissions under the Securities
Act. In addition, any profits realized by the Selling Stockholders may be deemed to be underwriting commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our common stock trades
on the Nasdaq Global Select Market (&ldquo;NASDAQ&rdquo;) under the symbol &ldquo;BDE.&rdquo; On June 12, 2017, the last reported
sale price of our shares on the NASDAQ was $6.45<B> </B>per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Please refer to &ldquo;Risk
Factors&rdquo; beginning on page 1 for a description of the risks you should consider when evaluating this investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The date of this prospectus is &nbsp;June
15, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">You should rely only on the information included
in or incorporated by reference into this prospectus or information we have referred to in this prospectus. We have not authorized
anyone to provide you with information that is different. This prospectus may only be used where it is legal to sell these securities.
This prospectus is not an offer to sell, or a solicitation of an offer to buy, in any state where the offer or sale is prohibited.
The information in this prospectus is accurate on the date of this prospectus and may become obsolete later. Neither the delivery
of this prospectus, nor any sale made under this prospectus will, under any circumstances, imply that the information in this prospectus
is correct as of any date after the date of this prospectus. References to &ldquo;the Company,&rdquo; &ldquo;Black Diamond,&rdquo;
&ldquo;we&rdquo; or &ldquo;us&rdquo; refer to Black Diamond, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 95%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; text-decoration: none; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Page</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_001">RISK FACTORS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_002">FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#a_003">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#a_004">THE COMPANY</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">15</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_005">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_006">SELLING STOCKHOLDERS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">16</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_007">DESCRIPTION OF COMMON STOCK</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">19</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_008">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="text-align: right">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">23</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#a_009">WHERE YOU CAN FIND MORE INFORMATION</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#a_010">EXPERTS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt"><A HREF="#a_011">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_001"></A>RISK FACTORS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>You should carefully consider the risk factors
set forth below as well as the other information contained or incorporated by reference in this prospectus before investing in
our common stock. Any of the following risks could materially and adversely affect our business, financial condition or results
of operations. In such a case, you may lose all or part of your investment. The risks described below are not the only risks facing
us. Additional risks and uncertainties not currently known to us or those we currently view to be immaterial may also materially
adversely affect our business, financial condition or results of operations.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Risks Related to Our Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Many of the products we sell are used for
inherently risky mountain and outdoor pursuits and could give rise to product liability or product warranty claims and other loss
contingencies, which could affect our earnings and financial condition.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Many of our products are used in applications
and situations that involve high levels of risk of personal injury and death. As a result, we maintain a staff who focus on the
appropriate disclaimers and markings and testing and seek to assure the quality and safety of our products. We stay current with
the law to seek to provide thorough and protective disclaimers and instructions on all of our products and packaging. Furthermore,
our technical climbing and avalanche safety equipment and our operations meet and are certified to International Personal Protective
Equipment (PP) standards set by the EEC or ISO 9001 quality system standards. Failure to use our products for their intended purposes,
failure to use or care for them properly, or their malfunction, or, in some limited circumstances, even correct use of our products,
could result in serious bodily injury or death.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We remain exposed to product liability claims
by the nature of the products we produce. Exposure occurs if one of our products is alleged to have resulted in property damage,
bodily injury or other adverse effects. Any such product liability claims may include allegations of defects in manufacturing,
defects in design, a failure to warn of dangers inherent in the product or activities associated with the product, negligence,
strict liability, and a breach of warranties. Although we maintain product liability insurance in amounts that we believe are reasonable,
there can be no assurance that we will be able to maintain such insurance on acceptable terms, if at all, in the future or that
product liability claims will not exceed the amount of insurance coverage. Additionally, we do not maintain product recall insurance.
As a result, product recalls or product liability claims could have a material adverse effect on our business, results of operations
and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a manufacturer and distributor of consumer
products, we are subject to the Consumer Products Safety Act, which empowers the Consumer Products Safety Commission to exclude
from the market products that are found to be unsafe or hazardous. Under certain circumstances, the Consumer Products Safety Commission
could require us to repurchase or recall one or more of our products. Additionally, laws regulating certain consumer products exist
in some cities and states, as well as in other countries in which we sell our products, and more restrictive laws and regulations
may be adopted in the future. Any repurchase or recall of our products could be costly to us and could damage our reputation. If
we were required to remove, or we voluntarily removed, our products from the market, our reputation could be tarnished and we might
have large quantities of finished products that we could not sell.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We spend substantial resources ensuring compliance
with governmental and other applicable standards. However, compliance with these standards does not necessarily prevent individual
or class action lawsuits, which can entail significant cost and risk. We do not maintain insurance against many types of claims
involving alleged defects in our products that do not involve personal injury or property damage. As a result, these types of claims
could have a material adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our product liability insurance program is
an occurrence-based program based on our current and historical claims experience and the availability and cost of insurance. We
carry both general and umbrella liability policies that insure us for product liability claims. The policy has a small retention,
which enables us to manage and control our product liability claims. Historically, product liability awards have not exceeded our
individual per occurrence self-insured retention. We cannot assure you, however, that our future product liability experience will
be consistent with our past experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>A substantial portion of our sales and gross
profit is derived from a small number of large customers, none of whom are contractually obligated to continue buying our products.
The loss of any of these customers could substantially reduce our profits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A customer accounts for a significant portion
of revenues. In the year ended December 31, 2016, REI accounted for approximately 16% of sales. Sales are generally on a purchase
order basis, and we do not have long-term agreements with any of our customers. A decision by any of our major customers to decrease
significantly the number of products purchased from us could substantially reduce sales and have a material adverse effect on our
business, financial condition and results of operations. Moreover, in recent years, the retail industry has experienced consolidation
and other ownership changes. In the future, retailers may further consolidate, undergo restructurings or reorganizations, realign
their affiliations or reposition their stores&rsquo; target market. These developments could result in a reduction in the number
of stores that carry our products, increased ownership concentration within the retail industry, increased credit exposure, and
increased retailer leverage over their suppliers. These changes could impact our opportunities in the market and increase our reliance
on a smaller number of large customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We are subject to risks related to our dependence
on the strength of retail economies in various parts of the world and our performance may be affected by general economic conditions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our business depends on the strength of the
retail economies in various parts of the world, primarily in North America, Europe and to a lesser extent, Asia, Central and South
America. These retail economies are affected primarily by factors such as consumer demand and the condition of the retail industry,
which, in turn, are affected by general economic conditions and specific events such as natural disasters, terrorist attacks, and
political unrest. The impact of these external factors is difficult to predict, and one or more of the factors could adversely
impact our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Purchases of many consumer products are discretionary
and tend to be highly correlated with the cycles of the levels of disposable income of consumers. As a result, any substantial
deterioration in general economic conditions could adversely affect consumer discretionary spending patterns, our sales, and our
results of operations. In particular, decreased consumer confidence or a reduction in discretionary income as a result of unfavorable
macroeconomic conditions may negatively affect our business. If the macroeconomic environment worsens, consumers may reduce or
delay their purchases of our products. Any such reduction in purchases could have a material adverse effect on our business, financial
condition, and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Changes in the retail industry and markets
for consumer products affecting our customers or retailing practices could negatively impact existing customer relationships and
our results of operations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We sell our products to retailers, including
sporting goods and specialty retailers, as well as direct to consumers. A significant deterioration in the financial condition
of our major customers could have a material adverse effect on our sales and profitability. We regularly monitor and evaluate the
credit status of our customers and attempt to adjust sales terms as appropriate. Despite these efforts, a bankruptcy filing by
a key customer could have a material adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, as a result of the desire of retailers
to more closely manage inventory levels, there is a growing trend among retailers to make purchases on a &ldquo;just-in-time&rdquo;
basis. This requires us to shorten our lead time for production in certain cases and more closely anticipate demand, which could
in the future require us to carry additional inventories.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may be negatively affected by changes in
the policies of our retailer customers, such as inventory destocking, limitations on access to and time on shelf space, use of
private label brands, price demands, payment terms, and other conditions, which could negatively impact our results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There is a growing trend among retailers in
the U.S. and in foreign markets to undergo changes that could decrease the number of stores that carry our products or increase
the concentration of ownership within the retail industry, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">consolidating their operations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">undergoing restructurings or store closings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">undergoing reorganizations; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">realigning their affiliations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These consolidations could result in a shift
of bargaining power to the retail industry and in fewer outlets for our products. Further consolidations could result in price
and other competition that could reduce our margins and our net sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Seasonality and weather conditions may cause
our operating results to vary from quarter to quarter.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sales of certain of our products are seasonal.
Sales of our outdoor recreation products such as carabineers, harnesses, and related climbing equipment products increase during
warm weather months and decrease during winter, while sales of our apparel line and winter sports equipment such as our skis and
related ski equipment increase during the cold weather months and decrease during summer. Weather conditions may also negatively
impact sales. For instance, milder temperatures could prevent the formation of ice, which may negatively affect demand for our
ice climbing products, and mild winter weather with less snowfall may negatively impact sales of our winter sports products. These
factors could have a material adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our results of operations could be materially
harmed if we are unable to accurately forecast demand for our products.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We often schedule internal production and place
orders for products with independent manufacturers before our customers&rsquo; orders are firm. Therefore, if we fail to accurately
forecast customer demand, we may experience excess inventory levels or a shortage of product to deliver to our customers. Factors
that could affect our ability to accurately forecast demand for our products include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an increase or decrease in consumer demand for our products or for products of our competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our failure to accurately forecast customer acceptance of new products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">new product introductions by competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">unanticipated changes in general market conditions or other factors, which may result in cancellations
of orders or a reduction or increase in the rate of reorders placed by retailers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">weak economic conditions or consumer confidence, which could reduce demand for discretionary items
such as our products; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">terrorism or acts of war, or the threat of terrorism or acts of war, which could adversely affect
consumer confidence and spending or interrupt production and distribution of product and raw materials.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory levels in excess of customer demand
may result in inventory write-downs and the sale of excess inventory at discounted prices, which could have an adverse effect on
our business, results of operations, and financial condition. On the other hand, if we underestimate demand for our products, our
manufacturing facilities or third party manufacturers may not be able to produce products to meet customer requirements, and this
could result in delays in the shipment of products and lost revenues, as well as damage to our reputation and customer relationships.
There can be no assurance that we will be able to successfully manage inventory levels to exactly meet future order and reorder
requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Competition in our industries may hinder
our ability to execute our business strategy, achieve profitability, or maintain relationships with existing customers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We operate in a highly competitive industry.
In this industry, we compete against numerous other domestic and foreign companies. Competition in the markets in which we operate
is based primarily on product quality, product innovation, price, and customer service and support, although the degree and nature
of such competition vary by location and product line. Some of our competitors are more established in their industries and have
substantially greater revenue or resources than we do. Our competitors may take actions to match new product introductions and
other initiatives. Since many of our competitors also source their products from third parties, our ability to obtain a cost advantage
through sourcing is reduced. Certain of our competitors may be willing to reduce prices and accept lower profit margins to compete
with us. Further, retailers often demand that suppliers reduce their prices on existing products. Competition could cause price
reductions, reduced profits or losses or loss of market share, any of which could have a material adverse effect on our business,
results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To compete effectively in the future in the
consumer products industry, among other things, we must:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maintain strict quality standards;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">develop new and innovative products that appeal to consumers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">deliver products on a reliable basis at competitive prices;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">anticipate and respond to changing consumer trends in a timely manner;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">maintain favorable brand recognition; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">provide effective marketing support.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our inability to do any of these things could
have a material adverse effect on our business, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>If we fail to expand existing or develop
new customer relationships, our ability to grow our business will be impaired.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our growth depends to a significant degree
upon our ability to expand existing relationships with current customers or develop new customer relationships. We cannot guarantee
that new customers will be found, that any such new relationships will be successful when we do get them, or that business with
current customers will increase. Failure to develop and expand such relationships could have a material adverse effect on our business,
results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>If we fail to adequately protect our intellectual
property rights, competitors may manufacture and market products similar to ours, which could adversely affect our market share
and results of operations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our success with our proprietary products depends,
in part, on our ability to protect our current and future technologies and products and to defend our intellectual property rights.
If we fail to adequately protect our intellectual property rights, competitors may manufacture and market products similar to ours.
Our principal intellectual property rights include our trademarks, patents, and trade secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We hold numerous patents for the invention
of new or improved technologies, which are known as utility patents, and pending patent applications covering a wide variety of
products. We cannot be sure that we will receive patents for any of our patent applications or that any existing or future patents
that we receive or license will provide competitive advantages for our products. We also cannot be sure that competitors will not
challenge, invalidate or avoid the application of any existing or future patents that we receive or license. In addition, patent
rights may not prevent our competitors from developing, using or selling products that are similar or functionally equivalent to
our products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Third parties may have patents, or may be awarded
new patents, that may materially adversely affect our ability to market, distribute and sell our products. Accordingly, our products,
including, but not limited to, our technical climbing and backpack products, may become subject to patent infringement claims or
litigation, any adverse determination of which could have a material adverse effect on our business, results of operations, and
financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Changes in foreign, cultural, political,
and financial market conditions could impair our international operations and financial performance.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Some of our operations are conducted or products
are sold in countries where economic growth has slowed, such as Japan, or where economies have suffered economic, social and/or
political instability or hyperinflation, including, for example, the uncertainty related to the United Kingdom&rsquo;s June 2016
vote to leave the European Union (commonly known as &ldquo;Brexit&rdquo;). The announcement of Brexit caused significant volatility
in global stock markets and currency exchange rate fluctuations that resulted in the strengthening of the U.S. dollar against foreign
currencies in which we conduct business. The strengthening of the U.S. dollar relative to other currencies may adversely affect
our operating results. The announcement of Brexit and the withdrawal of the U.K. from the E.U. may also create global economic
uncertainty, which may cause consumers to reduce their spending.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, some of our operations are conducted
or products are sold in countries where the ability to repatriate funds has been delayed or impaired in recent years. Current government
economic and fiscal policies, including stimulus measures and currency exchange rates and controls in these economies may not be
sustainable and, as a result, our sales or profits related to those countries may decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The economies of other foreign countries important
to our operations, including other countries in Asia and Europe, could also suffer slower economic growth or economic, social and/or
political instability or hyperinflation in the future. International operations, including manufacturing and sourcing operations
(and the international operations of our customers), are subject to inherent risks which could adversely affect us, including,
among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">protectionist policies restricting or impairing the manufacturing, sales or import and export of
our products;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">new restrictions on access to markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">lack of developed infrastructure;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">inflation or recession;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">devaluations or fluctuations in the value of currencies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">changes in and the burdens and costs of compliance with a variety of foreign laws and regulations,
including tax laws, accounting standards, environmental laws and occupational health and safety laws;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">social, political or economic instability;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">acts of war and terrorism;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">natural disasters or other crises;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">reduced protection of intellectual property rights in some countries;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">increases in duties and taxation; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">restrictions on transfer of funds and/or exchange of currencies; expropriation of assets; and other
adverse changes in policies, including monetary, tax and/or lending policies, relating to foreign investment or foreign trade by
our host countries.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Should any of these risks occur, our ability
to sell or export our products or repatriate profits could be impaired and we could experience a loss of sales and profitability
from our international operations, which could have a material adverse impact on our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>If we cannot continue to develop new products
in a timely manner, and at favorable margins, we may not be able to compete effectively.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that our future success will depend,
in part, upon our ability to continue to introduce innovative design extensions for our existing products and to develop, manufacture,
and market new products. We cannot assure you that we will be successful in the introduction, manufacturing, and marketing of any
new products or product innovations, or develop and introduce, in a timely manner, innovations to our existing products that satisfy
customer needs or achieve market acceptance. Our failure to develop new products and introduce them successfully and in a timely
manner, and at favorable margins, would harm our ability to successfully grow our business and could have a material adverse effect
on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our operating results can be adversely affected
by changes in the cost or availability of raw materials.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pricing and availability of raw materials for
use in our businesses can be volatile due to numerous factors beyond our control, including general, domestic, and international
economic conditions, labor costs, production levels, competition, consumer demand, import duties, and tariffs and currency exchange
rates. This volatility can significantly affect the availability and cost of raw materials for us, and may therefore have a material
adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During periods of rising prices of raw materials,
there can be no assurance that we will be able to pass any portion of such increases on to customers. Conversely, when raw material
prices decline, customer demands for lower prices could result in lower sale prices and, to the extent we have existing inventory,
lower margins. We currently do not hedge against our exposure to changing raw material prices. As a result, fluctuations in raw
material prices could have a material adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Supply shortages or changes in availability
for any particular type of raw material can delay production or cause increases in the cost of manufacturing our products. We may
be negatively affected by changes in availability and pricing of raw materials, which could negatively impact our results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our operations in international markets,
and earnings in those markets, may be affected by legal, regulatory, political, and economic risks.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our ability to maintain the current level of
operations in our existing international markets and to capitalize on growth in existing and new international markets is subject
to risks associated with international operations. These include the burdens of complying with a variety of foreign laws and regulations,
unexpected changes in regulatory requirements, new tariffs or other barriers to some international markets. For example, the United
States&rsquo; withdrawal from the Trans-Pacific Partnership, any future withdrawal or renegotiation of trade agreements, including
the North American Free Trade Agreement, or the more aggressive prosecution of trade disputes with countries like China, may adversely
affect our ability to operate our business and execute our growth strategy. In addition, it may be more difficult for us to enforce
agreements, collect receivables, receive dividends and repatriate earnings through foreign legal systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We cannot predict whether quotas, duties, taxes,
exchange controls or other restrictions will be imposed by the United States, the European Union or other countries upon the import
or export of our products in the future, or what effect any of these actions would have on our business, financial condition or
results of operations. We cannot predict whether there might be changes in our ability to repatriate earnings or capital from international
jurisdictions. Changes in regulatory and geopolitical policies and other factors may adversely affect our business or may require
us to modify our current business practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Approximately 49% of our sales for the year
ended December 31, 2016 were earned in international markets. We are exposed to risks of changes in U.S. policy for companies having
business operations outside the United States, which could have a material adverse effect on our business, results of operations,
and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We use foreign suppliers and manufacturing
facilities for a significant portion of our raw materials and finished products, which poses risks to our business operations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A majority of our products sold were produced
by and purchased from independent manufacturers primarily located in Asia and Eastern Europe, with substantially all of the remainder
produced by our manufacturing facility located in Utah. Although no single supplier and no one country controls a majority of our
production needs, any of the following could materially and adversely affect our ability to produce or deliver our products and,
as a result, have a material adverse effect on our business, financial condition, and results of operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">political or labor instability in countries where our facilities, contractors, and suppliers are
located;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">political or military conflict, which could cause a delay in the transportation of raw materials
and products to us and an increase in transportation costs;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">heightened terrorism security concerns, which could subject imported or exported goods to additional,
more frequent or more lengthy inspections, leading to delays in deliveries or impoundment of goods for extended periods or could
result in decreased scrutiny by customs officials for counterfeit goods, leading to lost sales, increased costs for our anti-counterfeiting
measures and damage to the reputation of our brands;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">disease epidemics and health-related concerns, such as the H1N1 virus, bird flu, SARS, mad cow,
and hoof-and-mouth disease outbreaks in recent years, which could result in closed factories, reduced workforces, scarcity of raw
materials, and scrutiny or embargo of our goods produced in infected areas;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">imposition of regulations and quotas relating to imports and our ability to adjust timely to changes
in trade regulations, which, among other things, could limit our ability to produce products in cost-effective countries that have
the labor and expertise needed;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">imposition of duties, taxes and other charges on imports; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">imposition or the repeal of laws that affect intellectual property rights.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our business is subject to foreign, national,
state, and local laws and regulations for environmental, employment, safety, and other matters. The costs of compliance with, or
the violation of, such laws and regulations by us or by independent suppliers who manufacture products for us could have an adverse
effect on our business, results of operations and financial condition.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Numerous governmental agencies in the United
States and in other countries in which we have operations, enforce comprehensive national, state, and local laws and regulations
on a wide range of environmental, employment, health, safety, and other matters. We could be adversely affected by costs of compliance
or violations of those laws and regulations. In addition, the costs of products purchased by us from independent contractors could
increase due to the costs of compliance by those contractors. Further, violations of such laws and regulations could affect the
availability of inventory, thereby affecting our net sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We may incur significant costs in order
to comply with environmental remediation obligations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Environmental laws also impose obligations
on various entities to clean up contaminated properties or to pay for the cost of such remediation, often upon parties that did
not actually cause the contamination. Accordingly, we may be liable, either contractually or by operation of law, for remediation
costs even if the contaminated property is not presently owned or operated by us, is a landfill or other location where we have
disposed wastes, or if the contamination was caused by third parties during or prior to our ownership or operation of the property.
Given the nature of the past industrial operations conducted by us and others at these properties, there can be no assurance that
all potential instances of soil or groundwater contamination have been identified, even for those properties where an environmental
site assessment has been conducted. Future events, such as changes in existing laws or policies or their enforcement, or the discovery
of currently unknown contamination, may give rise to additional remediation liabilities that may have a material adverse effect
upon our business, results of operations or financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Risks Related to our Business</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>There are significant risks associated with
acquiring and integrating businesses.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">An element of our asset redeployment and diversification
strategy is the acquisition of or investment in businesses and assets that will diversify our current business, increase size,
expand our geographic scope of operations and otherwise offer growth opportunities. We may not be able to successfully identify
attractive acquisition or investment opportunities, obtain financing for acquisitions, make acquisitions on satisfactory terms,
or successfully acquire and/or integrate identified targets. In identifying, evaluating and selecting a target business or assets
for a potential acquisition or investment, we expect to encounter intense competition from other entities, including blank check
companies, private equity groups, venture capital funds, leveraged buyout funds, and operating businesses seeking strategic acquisitions.
Many of these entities are well-established and have extensive experience identifying and effecting business combinations directly
or through affiliates. Moreover, many of these competitors possess greater financial, technical, human and other resources than
us which will give them a competitive advantage in pursuing the acquisition of certain target businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our ability to implement our redeployment and
diversification strategy is also subject to other risks and costs, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">loss of key employees, customers or suppliers of acquired businesses;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Symbol; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">diversion of management&rsquo;s time and attention from our core businesses;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">adverse effects on existing business relationships with suppliers and customers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to secure necessary financing;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our ability to realize operating efficiencies, synergies, or other benefits expected from an acquisition;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">risks associated with entering markets in which we have limited or no experience;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">risks associated with our ability to execute successful due diligence; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">assumption of contingent or undisclosed liabilities of acquisition targets.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Any of the above risks could have a material
adverse effect on the market price of our common stock and our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><B>Since we have not
yet selected a particular industry or target business with which to redeploy or invest our assets, you will be unable to currently
ascertain the merits or risks of the industry or business in which we may ultimately operate.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may acquire or invest in a company in any
industry and are not limited to any particular type of business. Accordingly, there is no current basis for you to evaluate the
possible merits or risks of the particular industry in which we may ultimately operate or the target business which we may ultimately
acquire. If we acquire or invest in an entity in an industry characterized by a high level of risk, we may be affected by the currently
unascertainable risks of that industry. Although our management will endeavor to evaluate the risks inherent in a particular industry
or target business, we cannot assure you that we will properly ascertain or assess all of the significant risk factors. Even if
we properly assess those risks, some of them may be outside of our control or ability to affect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our previously announced asset redeployment
and diversification strategy may negatively impact our business, financial condition and results of operations.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company announced that it is seeking to
redeploy our significant cash balances to invest in high-quality, durable, cash flow-producing assets potentially unrelated to
the outdoor industry in order to diversify our business and potentially monetize our substantial net operating losses as part of
our previously announced asset redeployment and diversification strategy. There can be no assurance as to the outcome of the asset
redeployment and diversification strategy, that any particular acquisition or investment opportunities will be consummated, that
any transaction will occur, or that our net operating losses will be monetized. In addition, our asset redeployment and diversification
strategy may create perceived uncertainties as to our future direction and may result in the loss of employees, customers or business
partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Recent turmoil across various sectors of
the financial markets may negatively impact the Company&rsquo;s business, financial condition, and/or operating results as well
as our ability to effectively execute our redeployment and diversification strategy.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recently, the various sectors of the credit
markets and the financial services industry have been experiencing a period of unprecedented turmoil and upheaval characterized
by disruption in the credit markets and availability of credit and other financing, the failure, bankruptcy, collapse or sale of
various financial institutions and an unprecedented level of intervention from the United States federal government. While the
ultimate outcome of these events cannot be predicted, they may have a material adverse effect on our ability to obtain financing
necessary to effectively execute acquisitions, the ability of our customers and suppliers to continue to operate their businesses
or the demand for our products, which could have a material adverse effect on the market price of our common stock and our business,
financial condition, and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We may not be able to adequately manage
our growth.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have expanded, and are seeking to continue
to expand, our business. This growth has placed significant demands on our management, administrative, operating, and financial
resources as well as our manufacturing capacity capabilities. The continued growth of our customer base, the types of products
offered and the geographic markets served can be expected to continue to place a significant strain on our resources. Personnel
qualified in the production and marketing of our products are difficult to find and hire, and enhancements of information technology
systems to support growth are difficult to implement. Our future performance and profitability will depend in large part on our
ability to attract and retain additional management and other key personnel, as well as our ability to increase and maintain our
manufacturing capacity capabilities to meet the needs of our current and future customers. Any failure to adequately manage our
growth could have a material adverse effect on the market price of our common stock and our business, financial condition, and
results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The Company&rsquo;s existing credit agreement
contains financial and restrictive covenants that may limit our ability to operate our business.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The agreement governing the Company&rsquo;s
credit facility contains, and any of its other future debt agreements may contain, covenant restrictions that limit its ability
to operate its business, including restrictions on its ability to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">incur debt (including secured debt) or issue guarantees;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">grant liens on its assets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">sell substantially all of our assets; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">enter into certain mergers or consolidations or make certain acquisitions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, the Company&rsquo;s credit facility
contains other affirmative and negative covenants, including the requirements to maintain a minimum level of earnings before interest,
tax, depreciation, and amortization, tangible net worth and asset coverage. The Company&rsquo;s ability to comply with these covenants
is dependent on its future performance, which will be subject to many factors, some of which are beyond its control, including
prevailing economic conditions. Any failure to comply with the restrictions of our credit facility or any subsequent financing
agreements may result in an event of default. An event of default may allow the creditors, if the agreements so provide, to accelerate
the related debt as well as any other debt to which a cross-acceleration or cross-default provision applies. In addition, the lender
under our credit facility may be able to terminate any commitments it had made to supply us with further funds. If we default on
the financial covenants in our credit facility, our lender could exercise all rights and remedies available to it, which could
have a material adverse effect on our business, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of these covenants, the Company&rsquo;s
ability to respond to changes in business and economic conditions and to obtain additional financing, if needed, may be significantly
restricted, and the Company may be prevented from engaging in transactions or making acquisitions of a business that might otherwise
be beneficial to it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our variable rate indebtedness subjects
us to interest rate risk, which could cause our debt service obligations to increase significantly.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Borrowings under the revolving portion of our
credit facility are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service
obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same, and our net income
and cash flows would decrease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Currency devaluations or fluctuations may
significantly increase our expenses and affect our results of operations as well as the carrying value of international assets
on our balance sheet, especially where the currency is subject to intense political and other outside pressures, such as in the
case of the Euro, Canadian Dollar and Great British Pound.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">While we transact business predominantly in
U.S. dollars and most of our revenues are collected in U.S. dollars, a substantial portion of our assets, revenues, costs, and
earnings are denominated in other currencies, such as the Euro, Canadian dollar, and Great British pound. Changes in the relation
of these and other currencies to the U.S. dollar will affect the carrying value of our international assets as well as our sales
and profitability and could result in exchange losses. For example, a devaluation of the Euro would negatively impact the carrying
value of our assets in Europe and our results of operations because the earnings and assets in Europe would be reduced when translated
into U.S. dollars.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, as the Company has substantial
operations and assets located outside the United States, foreign operations expose us to foreign currency devaluations or fluctuations
that could have a material adverse impact on our business, results of operations and financial condition based on the movements
of the applicable foreign currency exchange rates in relation to the U.S. dollar, both for purposes of actual conversion and financial
reporting purposes. The impact of future exchange rate devaluations or fluctuations on our results of operations cannot be accurately
predicted. There can be no assurance that the U.S. dollar foreign exchange rates will be stable in the future or that fluctuations
in financial or foreign markets will not have a material adverse effect on our business, results of operations, and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Compliance with changing laws, regulations
and standards of corporate governance and public disclosure may result in additional expenses.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Changing laws, regulations and standards relating
to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002 (the &ldquo;Sarbanes Oxley Act&rdquo;),
the Dodd-Frank Wall Street Reform and Consumer Protection Act, new Securities and Exchange Commission regulations and NASDAQ rules,
are creating uncertainty for companies such as ours. These new or changed laws, regulations, and standards are subject to varying
interpretations, in many cases due to their lack of specificity. As a result, their application in practice may evolve over time
as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We are committed to maintaining
high standards of corporate governance and public disclosure. As a result, our efforts to comply with evolving laws, regulations,
and standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion
of management time and attention from revenue-generating activities to compliance activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We will face particular challenges in maintaining
and reporting on our internal control over financial reporting.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Section 404 of the Sarbanes-Oxley Act requires
that we evaluate and report on our system of internal control over financial reporting and requires that we have our internal control
over financial reporting audited. If we fail to maintain adequate internal controls, we could be subject to regulatory scrutiny,
civil or criminal penalties and/or stockholder litigation. Any inability to provide reliable financial reports could harm our business
and the trading price of our common stock. Section 404 of the Sarbanes-Oxley Act also requires that our independent registered
public accounting firm report on the effectiveness of the Company&rsquo;s internal control over financial reporting. In addition,
acquisition targets may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of their internal
controls. The development of the internal controls of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase
the time and costs necessary to complete any such acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If we identify any material weaknesses or significant
deficiencies in our internal control over financial reporting, we may need to take costly steps to implement improved controls
and may be subject to sanctions for failure to comply with the requirements of the Sarbanes-Oxley Act. Such remedial costs or sanctions
could have a material adverse effect on our results of operations and financial condition. Further, we would be required to disclose
any material weakness in internal control over financial reporting, and we would receive an adverse opinion on our internal control
over financial reporting from our independent auditors. These factors could cause investors to lose confidence in our reported
financial information and could have a negative effect on the trading price of our stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our Board of Directors and executive officers
have significant influence over our affairs.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The members of our Board of Directors and our
executive officers, which includes Mr. Warren B. Kanders, beneficially owns approximately 25% of our outstanding common stock as
of June 12, 2017. As a result, our Board of Directors and executive officers, to the extent they vote their shares in a similar
manner, have influence over our affairs and could exercise such influence in a manner that is not in the best interests of our
other stockholders, including by attempting to delay, defer or prevent a change of control transaction that might otherwise be
in the best interests of our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We may be unable to realize the benefits
of our net operating losses and tax credit carryforwards.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Net operating losses (&ldquo;NOLs&rdquo;) may
be carried forward to offset federal and state taxable income in future years and eliminate income taxes otherwise payable on such
taxable income, subject to certain adjustments. Based on current federal corporate income tax rates, our NOL and other carryforwards
could provide a benefit to us, if fully utilized, of significant future tax savings. However, our ability to use these tax benefits
in future years will depend upon the amount of our otherwise taxable income. If we do not have sufficient taxable income in future
years to use the tax benefits before they expire, we will lose the benefit of these NOL carryforwards permanently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Additionally, if we underwent an ownership
change, the NOL carryforward limitations would impose an annual limit on the amount of the taxable income that may be offset by
our NOL generated prior to the ownership change. If an ownership change were to occur, we may be unable to use a significant portion
of our NOL to offset taxable income. In general, an ownership change occurs when, as of any testing date, the aggregate of the
increase in percentage points of the total amount of a corporation&rsquo;s stock owned by one or more &ldquo;5-percent shareholders&rdquo;
within the meaning of Section 382 of the Internal Revenue Code (&ldquo;Code&rdquo;) whose percentage ownership of the stock has
increased as of such date over the aggregate of the lowest percentage of the stock owned by such 5-percent shareholder at any time
during the three-year period preceding such date is more than 50 percentage points. In general, persons who own 5% or more of a
corporation&rsquo;s stock are 5-percent shareholders, and all stock owned by persons who are not 5-percent shareholders is treated
as owned by one 5-percent shareholder. The issuance of a large number of shares of common stock in connection with any acquisitions
could result in a limitation of the use of our NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Further, our Amended and Restated
Certificate of Incorporation, as amended, provides for blank check preferred stock, which allows the Board of Directors to
issue preferred stock at any time with rights and designations set forth by the Board of Directors. Section 382 of the Code
generally excludes preferred stock when calculating ownership percentages as they relate to our NOLs if the preferred stock
satisfies all of the following criteria: it is not entitled to vote, it is limited and preferred as to dividends and does
not participate in corporate growth to any significant extent, it has redemption and liquidation rights which do not exceed
the issue price of such stock (except for a reasonable redemption or liquidation premium), and it is not convertible into
another class of stock. Our Board may authorize and issue preferred stock that does not meet these criteria, and such
preferred stock would count towards determining ownership change under Section 382 of the Code. Therefore the issuance of any
preferred stock could increase the likelihood of a limitation of the use of our NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Moreover, if a corporation experiences an ownership
change and does not satisfy the continuity of business enterprise, or COBE, requirement (which generally requires that the corporation
continue its historic business or use a significant portion of its historic business assets in a business for the two-year period
beginning on the date of the ownership change), it cannot, subject to certain exceptions, use any NOL from a pre-change period
to offset taxable income in post-change years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The actual ability to utilize the tax benefit
of any existing NOLs will be subject to future facts and circumstances with respect to meeting the above described COBE requirements
at the time NOLs are being utilized on a tax return. The realization of NOLs and the recognition of asset and valuation allowances
for deferred taxes require management to make estimates and judgments about the Company&rsquo;s future profitability which are
inherently uncertain. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. If, in the opinion of management, it becomes
more likely than not that some portion or all of the deferred tax assets will not be realized, deferred tax assets would be reduced
by a valuation allowance and any such reduction could have a material adverse effect on the financial condition of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The amount of NOL and tax credit carryforwards
that we have claimed has not been audited or otherwise validated by the U.S. Internal Revenue Service (the &ldquo;IRS&rdquo;).
The IRS could challenge our calculation of the amount of our NOL or our determinations as to when a prior change in ownership occurred,
and other provisions of the Code may limit our ability to carry forward our NOL to offset taxable income in future years. If the
IRS were successful with respect to any such challenge, the potential tax benefit of the NOL carryforwards to us could be substantially
reduced.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Certain protective measures implemented
by us to preserve our NOL may not be effective or may have some unintended negative effects.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 24, 2003, at our Annual Meeting of
Stockholders, our stockholders approved an amendment (the &ldquo;Amendment&rdquo;) to our Amended and Restated Certificate of Incorporation
to restrict certain acquisitions of our securities in order to help assure the preservation of our NOL. The Amendment generally
restricts direct and indirect acquisitions of our equity securities if such acquisition will affect the percentage of the Company&rsquo;s
capital stock that is treated as owned by a &ldquo;5% stockholder.&rdquo; Additionally, on February 7, 2008, our Board of Directors
approved a rights agreement which is designed to assist in limiting the number of 5% or more owners and thus reduce the risk of
a possible &ldquo;change of ownership&rdquo; under Section 382 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although the transfer restrictions imposed
on our capital stock and the rights agreement are intended to reduce the likelihood of an impermissible ownership change, there
is no guarantee that such protective measures would prevent all transfers that would result in an impermissible ownership change.
These protective measures also will require any person attempting to acquire a significant interest in us to seek the approval
of our Board of Directors. This may have an &ldquo;anti-takeover&rdquo; effect because our Board of Directors may be able to prevent
any future takeover. Similarly, any limits on the amount of capital stock that a stockholder may own could have the effect of making
it more difficult for stockholders to replace current management. Additionally, because protective measures implemented by us to
preserve our NOL will have the effect of restricting a stockholder&rsquo;s ability to acquire our common stock, the liquidity and
market value of our common stock might suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The loss of any member of our senior management
or certain other key executives could significantly harm our business.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our ability to maintain our competitive position
is dependent to a large degree on the efforts and skills of our senior management team, including Warren B. Kanders. If we were
to lose the services of any member of our senior management, our business may be significantly impaired. In addition, many of our
senior executives have strong industry reputations, which aid us in identifying acquisition and borrowing opportunities, and having
such opportunities brought to us. The loss of the services of these key personnel could materially and adversely affect our operations
because of diminished relationships with lenders, existing and prospective tenants, property sellers and industry personnel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our Board of Directors may change significant
corporate policies without stockholder approval.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our investment, financing, borrowing and dividend
policies and our policies with respect to all other activities, including growth, debt, capitalization and operations, will be
determined by our Board of Directors. These policies may be amended or revised at any time and from time to time at the discretion
of the Board of Directors without a vote of our stockholders. In addition, the Board of Directors may change our policies with
respect to conflicts of interest provided that such changes are consistent with applicable legal requirements. A change in these
policies could have an adverse effect on our financial condition, results of operations, cash flow, per share trading price of
our common stock and ability to satisfy our debt service obligations and to pay dividends to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Compensation awards to our management may
not be tied to or correspond with our improved financial results or share price.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The compensation committee of our Board of
Directors is responsible for overseeing our compensation and employee benefit plans and practices, including our executive compensation
plans and our incentive compensation and equity-based compensation plans. Our compensation committee has significant discretion
in structuring compensation packages and may make compensation decisions based on any number of factors. As a result, compensation
awards may not be tied to or correspond with improved financial results for the Company or the share price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Risks Related to our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Our Amended and Restated Certificate of
Incorporation authorizes the issuance of shares of preferred stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Amended and Restated Certificate of Incorporation
provides that our Board of Directors will be authorized to issue from time to time, without further stockholder approval, up to
5,000,000 shares of preferred stock in one or more series and to fix or alter the designations, preferences, rights and any qualifications,
limitations or restrictions of the shares of each series, including the dividend rights, dividend rates, conversion rights, voting
rights, terms of redemption, including sinking fund provisions, redemption price or prices, liquidation preferences and the number
of shares constituting any series or designations of any series. Such shares of preferred stock could have preferences over our
common stock with respect to dividends and liquidation rights. We may issue additional preferred stock in ways which may delay,
defer or prevent a change in control of the Company without further action by our stockholders. Such shares of preferred stock
may be issued with voting rights that may adversely affect the voting power of the holders of our common stock by increasing the
number of outstanding shares having voting rights, and by the creation of class or series voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We do not expect to pay dividends on our
common stock in the foreseeable future.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Although our stockholders may receive dividends
if, as and when declared by our Board of Directors, we do not intend to pay dividends on our common stock in the foreseeable future.
Therefore, you should not purchase our common stock if you need immediate or future income by way of dividends from your investment.
In addition, upon an event of default under our credit facility, we are prohibited from declaring or paying any dividends on our
common stock or generally making other distributions to our stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The price of our common stock has been and
is expected to continue to be volatile, which could affect a stockholder&rsquo;s return on investment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There has been significant volatility in the
stock market and in particular in the market price and trading volume of securities, which has often been unrelated to the performance
of the companies. The market price of our common stock has been subject to significant fluctuations, and we expect it to continue
to be subject to such fluctuations for the foreseeable future. We believe the reasons for these fluctuations include, in addition
to general market volatility, the relatively thin level of trading in our stock, and the relatively low public float. Therefore,
variations in financial results, announcements of material events, technological innovations or new products by us or our competitors,
our quarterly operating results, changes in general conditions in the economy or the health care industry, other developments affecting
us or our competitors or general price and volume fluctuations in the market are among the many factors that could cause the market
price of our common stock to fluctuate substantially.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Shares of our common stock have been thinly
traded in the past.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The trading volume of our common stock has
not been significant, and there may not be an active trading market for our common stock in the future. As a result of the thin
trading market or &ldquo;float&rdquo; for our stock, the market price for our common stock may fluctuate significantly more than
the stock market as a whole. Without a large float, our common stock is less liquid than the stock of companies with broader public
ownership and, as a result, the trading prices of our common stock may be more volatile. In the absence of an active public trading
market, an investor may be unable to liquidate his investment in our common stock. Trading of a relatively small volume of our
common stock may have a greater impact on the trading price for our stock than would be the case if our public float were larger.
We cannot predict the prices at which our common stock will trade in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The sale of a substantial amount of our
common stock in the public market could adversely affect the prevailing market price of our common stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have outstanding an aggregate of 30,012,765
shares of our common stock as of June 12, 2017. This includes 7,835,284 shares of common stock that are beneficially owned by Mr. Warren B.
Kanders, our Chairman of the Board, of which he has 5,919,017 hypothecated and/or pledged as security for loans from financial
institutions, and that may be sold by such financial institutions in the event of a foreclosure of these loans. The sale of a significant
amount of shares at any given time, or the perception that such sales could occur, including sales of the shares beneficially owned
by Mr. Kanders, could adversely affect the prevailing market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>We may issue a substantial amount of our
common stock in the future, which could cause dilution to current investors and otherwise adversely affect our stock price.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We may issue additional shares of common stock
as consideration for such acquisition. These issuances could be significant. To the extent that we make acquisitions and issue
our shares of common stock as consideration, your equity interest in us will be diluted. Any such issuance will also increase the
number of outstanding shares of common stock that will be eligible for sale in the future. Persons receiving shares of our common
stock in connection with these acquisitions may be more likely to sell off their common stock, which may influence the price of
our common stock. In addition, the potential issuance of additional shares in connection with anticipated acquisitions could lessen
demand for our common stock and result in a lower price than might otherwise be obtained. We may issue common stock in the future
for other purposes as well, including in connection with financings, for compensation purposes, in connection with strategic transactions
or for other purposes. The issuance of a large number of shares of common stock in connection with an acquisition could also have
a negative effect on our ability to use our NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_002"></A>FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Certain statements included
in this prospectus, any accompanying prospectus supplement and the documents incorporated by reference herein and therein are &ldquo;forward-looking
statements&rdquo; within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations
and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution
that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied
in the forward-looking statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Potential risks and uncertainties
that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed
or implied by forward-looking statements in this prospectus, any accompanying prospectus supplement and the documents incorporated
herein and therein include, but are not limited to, the overall level of consumer spending on our products; general economic conditions
and other factors affecting consumer confidence; disruption and volatility in the global capital and credit markets; the financial
strength of the Company&rsquo;s customers; the Company&rsquo;s ability to implement its reformation and growth strategy, including
its ability to organically grow each of its historical product lines; the ability of the Company to identify potential acquisition
or investment opportunities as part of its redeployment and diversification strategy; the Company&rsquo;s ability to successfully
redeploy its capital into diversifying assets or that any such redeployment will result in the Company&rsquo;s future profitability;
the Company&rsquo;s exposure to product liability or product warranty claims and other loss contingencies; stability of the Company&rsquo;s
manufacturing facilities and foreign suppliers; the Company&rsquo;s ability to protect trademarks, patents and other intellectual
property rights; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign
currency fluctuations; our ability to utilize our net operating loss carryforwards; and legal, regulatory, political and economic
risks in international markets. More information on potential factors that could affect the Company&rsquo;s financial results is
included from time to time in the Company&rsquo;s public reports filed with the Securities and Exchange Commission, including the
Company&rsquo;s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. All forward-looking
statements included in this prospectus are based upon information available to the Company as of the date of this prospectus, and
speak only as the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances
after the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">You should also read carefully
the factors described or referred to in the &ldquo;Risk Factors&rdquo; section of this prospectus, any accompanying prospectus
supplement and the documents incorporated by reference herein and therein, to better understand the risks and uncertainties inherent
in our business and underlying any forward-looking statements. Any forward-looking statements that we make in this prospectus,
any accompanying prospectus supplement and the documents incorporated by reference herein as well as other written or oral statements
by us or our authorized officers on our behalf, speak only as of the date of such statement, and we undertake no obligation to
update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends
or indications of future performance, unless expressed as such, and should only be viewed as historical data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_003"></A>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Commission allows us
to &ldquo;incorporate by reference&rdquo; the information we file with it, which means that we can disclose important business,
financial and other information to you in this prospectus by referring you to the publicly filed documents containing this information.
The information incorporated by reference is deemed to be a part of this prospectus, except for any information superseded by information
contained in this prospectus or filed later by us with the Commission. This prospectus incorporates by reference the documents
set forth below that we have previously filed with the Commission, other than any portion of any such filing that is furnished
under the applicable commission rules, which documents contain important information about us and our common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our annual report on Form 10-K for the year ended December 31, 2016, filed with the Commission
on March 6, 2017;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our definitive proxy statement filed with the Commission
on April 28, 2016;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Symbol; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our quarterly report on Form 10-Q for the quarter ended
March 31, 2017, filed with the Commission on May 8, 2017;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our current report on Form 8-K filed with the Commission on June 6 , 2017; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the description of our common stock contained in our registration statement on Form 8-A/A filed
on June 9, 2010, including any amendments or reports filed for the purpose of updating that description.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All of such documents are
on file with the Commission. In addition, all documents filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange
Act, subsequent to the date of this prospectus are incorporated by reference in this prospectus, other than any portion of any
such filing that is furnished under the applicable commission rules, and are a part hereof from the date of filing of such documents.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for purposes of this prospectus to the extent that a statement contained herein or in any subsequently filed document
that is also incorporated by reference herein modifies or replaces such statement. Any statements so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Any information incorporated
by reference herein is available to you without charge upon written or oral request. If you would like a copy of any of this information,
please submit your request to us at Black Diamond, Inc., 2084 East 3900 South, Salt Lake City, Utah 84124, Attention: Secretary,
or call (801) 278-5552.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_004"></A>THE COMPANY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We, through our ownership
of Black Diamond Equipment, Ltd., are a global leader in designing, manufacturing, and marketing innovative active outdoor engineered
performance equipment and apparel for climbing, mountaineering, backpacking, skiing, and a wide range of other year-round outdoor
recreation activities. Black Diamond Equipment and PIEPS&trade;, are synonymous with performance, innovation, durability and safety
in the outdoor consumer community. We are targeted not only to the demanding requirements of core climbers, skiers and alpinists,
but also to the more general outdoor performance enthusiasts and consumers interested in outdoor-inspired gear for their backcountry
and urban activities. Our Black Diamond&reg; and PIEPS&trade; brands are iconic in the active outdoor and ski industries, and linked
intrinsically with the modern history of these sports. Headquartered in Salt Lake City at the base of the Wasatch Mountains, our
products are designed and exhaustively tested by an engaged team of discerning entrepreneurs and engineers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We offer a broad range
of products including: high performance apparel (such as jackets, shells, pants and bibs); rock-climbing equipment (such as carabiners,
protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; tents;
trekking poles; headlamps and lanterns; and gloves and mittens. We also offer advanced skis, ski poles, ski skins, and snow safety
products, including avalanche airbag systems, avalanche transceivers, shovels, and probes. We distribute our products through a
network comprised primarily of leading independent specialty retailers, specialty chains such as Recreational Equipment, Inc. (&ldquo;REI&rdquo;),
independent global distributors selling to specialty retail, and direct-to-consumer through our website and wholly-owned retail
store. Our products are sold in North America, Europe, Asia, and the rest of the world in over 50 countries, with international
sales representing approximately 49% of our sales for the year ended December 31, 2016. Canada is our single largest international
country in which we conduct business, representing 8% of our total sales for the year ended December 31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our heritage dates back
to 1957 when Chouinard Equipment Ltd. pioneered the market for durable, precise, and reusable pitons &mdash; devices used to ascend
or protect oneself in the event of a fall in the sport of big wall rock climbing. Over the next thirty years, Chouinard Equipment
expanded to design and manufacture all kinds of equipment for rock climbing and mountain, canyon, and crag activities. In 1989
Black Diamond Equipment was founded when our predecessor company acquired the business and assets of Chouinard Equipment. In our
60 year heritage, we have developed a track record of gear innovations that has changed the nature of climbing, mountaineering,
and skiing. By extension, our history and brands have become synonymous with the sports in which we participate. The genesis of
the current Black Diamond, Inc. was through the May 2010 acquisition of Black Diamond Equipment, Ltd. (which may be referred to
as &ldquo;Black Diamond Equipment&rdquo; or &ldquo;BDEL&rdquo;) and Gregory Mountain Products, Inc. (which may be referred to as
&ldquo;Gregory Mountain Products&rdquo;, &ldquo;Gregory&rdquo; or &ldquo;GMP&rdquo;) by Clarus Corporation, a public company. Clarus
Corporation, incorporated in Delaware in 1991, was renamed Black Diamond, Inc. in January 2011. In July 2012, we acquired POC Sweden
AB and its subsidiaries (collectively, &ldquo;POC&rdquo;) and in October 2012, we acquired PIEPS Holding GmbH and its subsidiaries
(collectively, &ldquo;PIEPS&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 23, 2014, the Company
and Gregory Mountain Products, its wholly-owned subsidiary, completed the sale of certain assets to Samsonite LLC (&ldquo;Samsonite&rdquo;)
comprising Gregory&rsquo;s business of designing, manufacturing, marketing, distributing and selling technical, alpine, backpacking,
hiking, mountaineering and active trail products and accessories as well as outdoor-inspired lifestyle bags (the &ldquo;Gregory
Business&rdquo;) pursuant to the terms of that certain Asset Purchase Agreement (the &ldquo;GMP Purchase Agreement&rdquo;), dated
as of June 18, 2014, by and among the Company, Gregory and Samsonite. Under the terms of the GMP Purchase Agreement, Samsonite
paid $84,135,000 in cash for Gregory&rsquo;s assets comprising the Gregory Business and assumed certain specified liabilities (the
&ldquo;GMP Sale&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 16, 2015, the
Company announced that it was exploring a full range of strategic alternatives, including a sale of the entire Company and the
potential sales of the Company&rsquo;s Black Diamond Equipment (including PIEPS) and POC brands in two separate transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 7, 2015, the
Company and the Company&rsquo;s wholly owned subsidiary, Ember Scandinavia AB (&ldquo;Ember&rdquo;), sold their respective equity
interests in POC comprising POC&rsquo;s business of designing, manufacturing, marketing, distributing and selling advanced-design
helmets, body armor, goggles, eyewear, gloves, and apparel for action or &ldquo;gravity sports,&rdquo; such as skiing, snowboarding,
and cycling pursuant to a Purchase Agreement (the &ldquo;POC Purchase Agreement&rdquo;), dated as of October 7, 2015, by and among
the Company and Ember, as sellers, and Dainese S.p.A. and Dainese U.S.A., Inc. (collectively &ldquo;Dainese&rdquo;), as purchasers.
Under the terms of the POC Purchase Agreement, Dainese paid $63,639,000 in cash for POC (the &ldquo;POC Disposition&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 8, 2015, the
Company announced the completion of the POC Disposition resulting in the conclusion of the Company&rsquo;s review of strategic
alternatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On November 9, 2015, the
Company announced that it was seeking to redeploy its significant cash balances to invest in high-quality, durable, cash flow-producing
assets potentially unrelated to the outdoor industry in order to diversify the Company&rsquo;s business and potentially monetize
the Company&rsquo;s substantial net operating losses as part of its asset redeployment and diversification strategy. We intend
to focus our search primarily in the United States, although we will also evaluate international investment opportunities should
we find such opportunities attractive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_005"></A>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company will not realize
any proceeds from the sale of the Common Stock which may be sold pursuant to this prospectus for the respective accounts of the
Selling Stockholders. The Company, however, will derive proceeds upon the exercise of the options granted to Selling Stockholders.
All such proceeds will be available to the Company for working capital and general corporate purposes. No assurances can be given
however, as to when or if any or all of the options will be exercised.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><A NAME="a_006"></A>SELLING STOCKHOLDERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This prospectus relates
to Shares that are being registered for reoffers and resales by the Selling Stockholders named below who have acquired or may acquire
Shares pursuant to the Plans. The Selling Stockholders may resell any or all of the Shares at any time they choose while this prospectus
is effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Executive officers and
directors, their family members, trusts for their benefit, or entities that they own, that acquire common stock under the Plan
may be added to the Selling Stockholder list below by a prospectus supplement filed with the Commission. The number of Shares to
be sold by any Selling Stockholder under this prospectus also may be increased or decreased by a prospectus supplement. Non-affiliates
who purchased restricted securities, as these terms are defined in Rule 144(a) under the Securities Act, under any of our employee
benefit plans and who are not named below may use this prospectus for the offer or sale of their common stock if they hold 1,000
shares or less. Although a person&rsquo;s name is included in the table below, neither that person nor we are making an admission
that the named person is our &ldquo;affiliate.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Each of the Selling Stockholders
is an employee or director of the Company or one of its subsidiaries. The following table sets forth:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the name and principal position with the Company of each Selling Stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the number of shares of Common Stock each Selling Stockholder beneficially owned as of June 12,
2017;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the number of shares of Common Stock acquired by each Selling Stockholder in connection with stock
options and stock grants pursuant to the Plans and underlying stock options previously granted pursuant to the Plans and being
registered under this Registration Statement, some or all of which shares may be sold pursuant to this prospectus; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the number of shares of Common Stock and the percentage, if 1% or more, of the total class of Common
Stock outstanding to be beneficially owned by each Selling Stockholder following this offering, assuming the sale pursuant to this
offering of all shares acquired by such Selling Stockholder in connection with grants pursuant the Plans and registered under this
Registration Statement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>The information contained in this &ldquo;Selling
Stockholders&rdquo; section of this prospectus is included pursuant to the requirements of Form S-8 and includes certain persons
<U>eligible</U> to resell &ldquo;restricted securities&rdquo; and/or &ldquo;control securities&rdquo; (as such terms are defined
in Section C of the General Instructions to Form S-8) pursuant to this prospectus whether or not they have a present intent to
sell any or all such shares hereunder. As of the date hereof, the Company has not been informed that any of the Selling Stockholders
named below has a present intent to resell any such securities.&nbsp; &nbsp;Furthermore, there is no assurance that any of the
Selling Stockholders will sell any or all of the shares offered by them under this Registration Statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The address of each Selling
Stockholder is c/o Black Diamond, Inc., 2084 East 3900 South Salt Lake City, Utah 84124.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Name
of Selling<BR>
Stockholder</B></FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Relationship to</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B><U STYLE="text-decoration: none">the Company</U></B></FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Number of Shares </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Beneficially</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B><U STYLE="text-decoration: none">Owned <FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></U></B></FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Number of Shares</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B><U STYLE="text-decoration: none">Being Offered <FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></U></B></FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD NOWRAP COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Shares of Common Stock </B></FONT><BR> <FONT STYLE="font-size: 10pt"><B>Beneficially Owned</B></FONT><BR> <FONT STYLE="font-size: 10pt"><B><U STYLE="text-decoration: none">After Offering</U></B></FONT></TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B><U STYLE="text-decoration: none">Percent</U></B><U STYLE="text-decoration: none"> <FONT STYLE="font-family: Times New Roman, Times, Serif"><B><SUP>(3)</SUP></B></FONT></U></FONT></TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 20%; text-align: left">Warren B. Kanders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 36%; text-align: left">Executive Chairman and Director</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">7,835,284</TD><TD STYLE="width: 1%; text-align: left"><SUP>(4)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">1,550,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">7,035,284</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">22.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Aaron J. Kuehne</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Chief Financial Officer, Chief Administrative Officer, Treasurer and Secretary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97,234</TD><TD STYLE="text-align: left"><SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">325,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>*</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Nicholas Sokolow</TD><TD>&nbsp;</TD>
    <TD>Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">630,692</TD><TD STYLE="text-align: left"><SUP>(6)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437,567</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.5</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Donald L. House</TD><TD>&nbsp;</TD>
    <TD>Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">362,986</TD><TD STYLE="text-align: left"><SUP>(7)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">242,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">129,861</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>*</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP>&nbsp;</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="text-align: left">Michael A. Henning</TD><TD>&nbsp;</TD>
    <TD>Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,125</TD><TD STYLE="text-align: left"><SUP>(8)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>*</B></FONT></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Less than 1%.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">As used in this table, a beneficial owner of a security includes any person who, directly or indirectly,
through contract, arrangement, understanding, relationship or otherwise has or shares (a) the power to vote, or direct the voting
of, such security or (b) investment power which includes the power to dispose, or to direct the disposition of, such security.
In addition, a person is deemed to be the beneficial owner of a security if that person has the right to acquire beneficial ownership
of such security within 60 days.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1.25in"></TD><TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">Includes shares subject to outstanding options issued under the Plan which are exercisable within
60 days.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">Applicable percentage of ownership for each selling stockholder is based on 30,012,765 shares outstanding
as of June 12, 2017, plus the number of shares of common stock of which such person has the right to acquire beneficial ownership
within 60 days.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">Includes (i) Mr. Kanders&rsquo; options to purchase 800,000 shares of common stock that are presently
exercisable or exercisable within 60 days of June 12, 2017; (ii) 2,419,490 shares of common stock held by Kanders GMP Holdings,
LLC, of which Mr. Kanders is a majority member and a trustee of the manager; (iii) 13,900 shares of common stock that Mr. Kanders
may be deemed to beneficially own as UTMA custodian for his children; and (iv) 124,667 shares of common stock held by Mr. Kanders&rsquo;
spouse in a UTA Trust Account of which Mr. Kanders is the sole trustee. Of the 7,835,284 shares of common stock included in Mr.
Kanders&rsquo; beneficial ownership, 5,919,017 shares are hypothecated and/or pledged as security for loans from financial institutions.
Excludes (i) 100,000 shares of common stock that are beneficially owned by Mr. Kanders&rsquo; spouse, as to all of which he disclaims
any beneficial ownership; (ii) a seven-year restricted stock award granted on January 17, 2011 under the Company&rsquo;s 2005 Stock
Incentive Plan of which 250,000 restricted shares will vest and become nonforfeitable if, on or before January 17, 2018, the closing
price of the Company&rsquo;s common stock shall have equaled or exceeded $14.00 per share for twenty consecutive trading days;
and (iii) a five-year restricted stock award granted on June 1, 2017 under the Company&rsquo;s 2015 Stock Incentive Plan of which:
(A) 250,000 restricted shares will vest and become nonforfeitable if, on or before June 1, 2022, the closing price of the Company&rsquo;s
common stock shall have equaled or exceeded $10.00 per share for twenty consecutive trading days; and (B) 250,000 restricted shares
will vest and become nonforfeitable if, on or before June 1, 2022, the closing price of the Company&rsquo;s common stock shall
have equaled or exceeded $12.00 per share for twenty consecutive trading days.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(5)</TD><TD STYLE="text-align: justify">Includes Mr. Kuehne&rsquo;s options to purchase 84,417 shares of common stock that are presently
exercisable or exercisable within 60 days of June 12, 2017, of which options to purchase 25,000 shares of common stock are subject
to certain transfer restrictions through and including December 31, 2017. Excludes (i) Mr. Kuehne&rsquo;s options to purchase 140,583
shares of common stock that are not presently exercisable and not exercisable within 60 days of June 12, 2017; (ii) restricted
stock award granted on July 1, 2016 under the Company&rsquo;s 2015 Stock Incentive Plan of which 100,000 restricted shares will
vest and become nonforfeitable if, on or before July 1, 2020, the Fair Market Value (as defined in the 2015 Stock Incentive Plan)
of the Company&rsquo;s common stock shall have equaled or exceeded $15.00 per share for twenty consecutive trading days;&nbsp;and
(iii) 1,991 shares of common stock that are beneficially owned by Mr. Kuehne&rsquo;s spouse, as to all of which he disclaims any
beneficial ownership.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(6)</TD><TD STYLE="text-align: justify">Includes (i) Mr. Sokolow&rsquo;s options to purchase 193,125 shares of common stock that are presently
exercisable or exercisable within 60 days of June 12, 2017; and (ii) 310,900 shares of common stock held by ST Investors Fund,
LLC, of which Mr. Sokolow is the General Manager. Excludes Mr. Sokolow&rsquo;s options to purchase 9,375 shares of common stock
that are not presently exercisable and not exercisable within 60 days of June 12, 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(7)</TD><TD STYLE="text-align: justify">Includes Mr. House&rsquo;s options to purchase 233,125 shares of common stock that are presently
exercisable or exercisable within 60 days of June 12, 2017. Excludes Mr. House&rsquo;s options to purchase 9,375 shares of common
stock that are not presently exercisable and not exercisable within 60 days of June 12, 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(8)</TD><TD STYLE="text-align: justify">Includes Mr. Henning&rsquo;s options to purchase 98,125 shares of common stock that are presently
exercisable or exercisable within 60 days of June 12, 2017. Excludes Mr. Henning&rsquo;s options to purchase 9,375 shares of common
stock that are not presently exercisable and not exercisable within 60 days of June 12, 2017.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company will supplement
this prospectus from time to time as required by the rules of the Commission to include certain information concerning the security
ownership of the Selling Stockholders or any new Selling Stockholders, the number of shares offered for resale and the position,
office or other material relationship which a Selling Stockholder has had within the past three years with the Company or any of
its predecessors or affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_007"></A>DESCRIPTION OF COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following description
of our common stock does not purport to be complete and is subject in all respects to applicable Delaware law and qualified by
reference to the provisions of our Amended and Restated Certificate of Incorporation, as amended (the &ldquo;Certificate of Incorporation&rdquo;),
Amended and Restated Bylaws, as amended (the &ldquo;Bylaws&rdquo;), and Rights Agreement. Copies of our Certificate of Incorporation,
Bylaws, and Rights Agreement are incorporated by reference and will be sent to stockholders upon request. See &ldquo;Where Can
You Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Authorized Common Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have authorized 100,000,000
shares of our common stock, par value $0.0001 per share. As of June 15, 2017 there were 30,012,765 shares of our common stock outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Voting Rights, Dividend Rights, Liquidation
Rights and Other Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Holders
of common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have
cumulative voting rights. Accordingly, as the Company has not implemented a staggered board of directors or granted stockholders</FONT>
<FONT STYLE="font-size: 10pt">cumulative voting rights, holders of a majority of the shares of common stock that are entitled to
vote in any election of directors will have the ability to elect all of the directors standing for election. Holders of common
stock are entitled to receive ratably such dividends, if any, as may be declared by the board of directors of the Company (the
&ldquo;Board&rdquo;) out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred
stock of the Company. Upon the liquidation, dissolution or winding up of the Company, the holders of common stock are entitled
to receive ratably the net assets of the Company available after the payment of all debts and other liabilities and subject to
the prior rights of any outstanding preferred stock of the Company. Holders of common stock have no preemptive, subscription, redemption
or conversion rights. The rights, preferences and privileges of holders of common stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any series of preferred stock which the Company may designate and issue in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Acquisition Restrictions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To help ensure the preservation
of its net operating loss carryforwards (&ldquo;NOLs&rdquo;), the Company&rsquo;s Certificate of Incorporation generally restricts
any person from attempting to purchase or acquire (any such purchase or acquisition being an &ldquo;Acquisition&rdquo;), any direct
or indirect interest in Black Diamond&rsquo;s capital stock (or options, warrants or other rights to acquire Black Diamond&rsquo;s
capital stock, or securities convertible or exchangeable into Black Diamond&rsquo;s capital stock), if such Acquisition would affect
the percentage of Black Diamond&rsquo;s capital stock owned by a 5% stockholder (the &ldquo;Acquisition Restrictions&rdquo; and
any person attempting such an Acquisition, being referred to as a &ldquo;Restricted Holder&rdquo;). For purposes of determining
the existence and identity of, and the amount of capital stock owned by, any 5% stockholder or Restricted Holders, Black Diamond
is entitled to rely conclusively on (a) the existence and absence of filings of Schedules 13D and 13G (or any similar schedules)
as of any date and (b) its actual knowledge of the ownership of its capital stock. The Company&rsquo;s Certificate of Incorporation
further provides that a Restricted Holder will be required, prior to the date of any proposed Acquisition, to request in writing
(a &ldquo;Request&rdquo;) that the Board review the proposed Acquisition and authorize or not authorize such proposed Acquisition.
If a Restricted Holder seeks to effect an Acquisition, then at the next regularly scheduled meeting of the Board (which are generally
held once during each calendar quarter) following the tenth business day after receipt by the Secretary of the Company of a Request,
the Board will be required to determine whether to authorize the proposed Acquisition described in the Request. Any determination
made by the Board as whether to authorize a proposed Acquisition will be made in the sole discretion and judgment of the Board.
The Board shall promptly inform a Restricted Holder making the Request of such determination. Additionally, any Restricted Holder
who makes such a Request shall reimburse Black Diamond, on demand, for all reasonable costs and expenses incurred by Black Diamond
with respect to any proposed Acquisition, which may be material in relation to the Acquisition and will include the fees and expenses
of any attorneys, accountants or other advisors retained by Black Diamond in connection with such determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company&rsquo;s Certificate
of Incorporation provides that any person who knowingly violates the Acquisition Restrictions or any persons in the same control
group with such person shall be jointly and severally liable to Black Diamond for, and shall indemnify and hold Black Diamond harmless
against, any and all damages suffered as a result of such violation, including but not limited to damages resulting from a reduction
in or elimination of the ability of Black Diamond to use its NOLs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All certificates representing
newly issued shares of the Company&rsquo;s capital stock or shares voted in favor of the Acquisition Restrictions and subsequently
submitted for transfer, must bear the following legend:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 1in; text-align: justify">&ldquo;The Amended and Restated Certificate
of Incorporation, as amended (the &ldquo;Certificate of Incorporation&rdquo;) of the Corporation contains restrictions prohibiting
the purchase or acquisition (collectively, the &ldquo;Acquisition&rdquo;) of any capital stock without the authorization of the
Board of Directors of the Corporation (the &ldquo;Board of Directors&rdquo;), if such Acquisition affects the percentage of capital
stock that is treated as owned by a five percent shareholder (within the meaning of Section 382 of the Internal Revenue Code of
1986, as amended (the &ldquo;Code&rdquo;), and the Treasury Regulations promulgated thereunder), and such Acquisition would, in
the sole discretion and judgment of the Board of Directors, jeopardize the Corporation&rsquo;s preservation of its U.S. federal
income tax attributes pursuant to Section 382 of the Code and is not otherwise in the best interests of the Corporation and its
stockholders. The Corporation will furnish without charge to the holder of record of this certificate a copy of the Certificate
of Incorporation, containing the above-referenced restrictions on acquisitions of stock, upon written request to the Corporation
at its principal place of business.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of
Directors has the discretion to approve an Acquisition of stock that would otherwise violate the Acquisition Restrictions in
circumstances where it determines that such Acquisition is in the best interests of the Company and its stockholders. In
determining whether or not to permit an Acquisition which may result in violation of the Acquisition Restrictions, the Board
may consider factors it deems relevant including the likelihood that the Acquisition would result in an ownership change to
occur that would limit the Company&rsquo;s use of its NOLs. In addition, the Board is authorized to eliminate the
Acquisition Restrictions, modify the applicable allowable percentage ownership interest or modify any of the terms and
conditions of the Acquisition Restrictions provided that the Board concludes in writing that such change is reasonably
necessary or advisable to preserve the Company&rsquo;s NOLs or that the continuation of the affected terms and conditions of
the Acquisition Restrictions is no longer reasonably necessary for such purpose.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Acquisition Restrictions
may have anti-takeover effects because they will restrict the ability of a person or entity or group thereof from accumulating
an aggregate of 5% or more of the Company&rsquo;s capital stock and the ability of persons, entities or groups now owning 5% or
more of the Company&rsquo;s capital stock from acquiring additional stock. Although the Acquisition Restrictions are designed as
a protective measure to preserve and protect the Company&rsquo;s NOLs, the Acquisition Restrictions may have the effect of impeding
or discouraging a merger, tender offer or proxy contest, even if such a transaction may be favorable to the interests of some or
all of the Company&rsquo;s stockholders. This might prevent stockholders from realizing an opportunity to sell all or a portion
of their shares of common stock at higher than market prices. In addition, the Acquisition Restrictions may delay the assumption
of control by a holder of a large block of capital stock and the removal of incumbent directors and management, even if such removal
may be beneficial to some or all of the Company&rsquo;s stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The foregoing description
of the Acquisition Restrictions does not purport to be complete and is qualified in its entirety by reference to the Company&rsquo;s
Certificate of Incorporation, which is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Preferred Share Purchase Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On February 12, 2008, Black
Diamond entered into a Rights Agreement (the &ldquo;Rights Agreement&rdquo;) with American Stock Transfer &amp; Trust Company that
provides for the terms of a rights plan including a dividend distribution of one preferred share purchase right (a &ldquo;Right&rdquo;)
for each outstanding share of common stock. The dividend is payable to Black Diamond&rsquo;s stockholders of record as of the close
of business on February 12, 2008 (the &ldquo;Record Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board of
Directors adopted the Rights Agreement to protect the Company&rsquo;s ability to carry forward its NOLs, which the Company
believes are a substantial asset. The Rights Agreement is designed to assist in limiting the number of 5% or more owners and
thus reduce the risk of a possible &ldquo;change of ownership&rdquo; under Section 382 of the Internal Revenue Code of 1986,
as amended (the &ldquo;Code&rdquo;). Any such &ldquo;change of ownership&rdquo; under these rules would limit or eliminate
the ability of the Company to use its existing NOLs for federal income tax purposes. However, there is no guarantee that the
objective of preserving the value of the NOLs will be achieved. There is a possibility that certain stock transactions may be
completed by stockholders or prospective stockholders that could trigger a &ldquo;change of ownership,&rdquo; and there are
other limitations on the use of NOLs set forth in the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Rights Agreement imposes
a significant penalty upon any person or group that acquires 4.9% or more (but less than 50%) of Black Diamond&rsquo;s then-outstanding
common stock without the prior approval of the Board. Stockholders who own 4.9% or more of Black Diamond&rsquo;s then-outstanding
common stock as of the close of business on the Record Date, will not trigger the Rights Agreement so long as they do not increase
their ownership of common stock. Moreover, the Board may exempt any person or group that owns 4.9% or more. A person or group that
acquires a percentage of common stock in excess of the applicable threshold but less than 50% of Black Diamond&rsquo;s then-outstanding
common stock is called an &ldquo;Acquiring Person.&rdquo; Any Rights held by an Acquiring Person are void and may not be exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board
of Directors authorized the issuance of one Right per each share of common stock outstanding on the Record Date. If the
Rights become exercisable, each Right would allow its holder to purchase from Black Diamond one one-hundredth of a share of
Black Diamond&rsquo;s Series A Junior Participating Preferred Stock, par value $0.0001 (the &ldquo;Series A
Preferred Stock&rdquo;), for a purchase price of $12.00. Each fractional share of Series A Preferred Stock would give the
stockholder approximately the same dividend, voting and liquidation rights as one share of common stock. Prior to exercise,
however, a Right will not give its holder any dividend, voting or liquidation rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Rights will not be
exercisable until 10 days after a public announcement by Black Diamond that a person or group has become an Acquiring Person. Until
the date that the Rights become exercisable (the &ldquo;Distribution Date&rdquo;), Black Diamond&rsquo;s common stock certificates
will evidence the Rights and will contain a notation to that effect. Any transfer of shares of common stock prior to the Distribution
Date will constitute a transfer of the associated Rights. After the Distribution Date, the Rights will be separated from the common
stock and be evidenced by a rights certificate, which Black Diamond will mail to all holders of the rights that are not void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">If a person or
group becomes an Acquiring Person after the Distribution Date or already is an Acquiring Person and acquires more shares
after the Distribution Date, all holders of Rights, except the Acquiring Person, may exercise their rights to purchase shares
of Black Diamond&rsquo;s common stock with a market value of two times the purchase price (or other securities or assets as
determined by the Board of Directors) upon payment of the purchase price (a &ldquo;Flip-In Event&rdquo;). After the Distribution Date,
if a Flip-In Event has already occurred and Black Diamond is acquired in a merger or similar transaction, all holders of the
Rights except the Acquiring Person may exercise their Rights upon payment of the purchase price to purchase shares of the
acquiring corporation with a market value of two times the purchase price of the Rights (a &ldquo;Flip-Over Event&rdquo;).
Rights may be exercised to purchase shares of Black Diamond&rsquo;s Series A Preferred Stock only after the occurrence of
the Distribution Date and prior to the occurrence of a Flip-In Event as described above. A Distribution Date resulting from
any occurrence described above would necessarily follow the occurrence of a Flip-In Event, in which case the Rights could
be exercised to purchase shares of common stock or other securities as described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Rights
will expire at such time the Board of Directors determines that the NOLs are fully utilized or no longer available under
Section 382 of the Code or the Rights are earlier redeemed or exchanged by the Company as described below. The Board may
redeem all (but not less than all) of the Rights for a redemption price of $0.0001 per Right at any time prior to the later
of the Distribution Date and the date of the first public announcement or disclosure by Black Diamond that a person or group
has become an Acquiring Person. Once the Rights are redeemed, the right to exercise the Rights will terminate, and the only
right of the holders of the Rights will be to receive the redemption price. The redemption price will be adjusted if Black
Diamond declares a stock split or issues a stock dividend on its common stock. After the later of the Distribution Date and
the date of the first public announcement by Black Diamond that a person or group has become an Acquiring Person, but before
an Acquiring Person owns 50% or more of Black Diamond&rsquo;s outstanding common stock, the Board may exchange each Right
(other than the Rights that have become void) for one share of common stock or an equivalent security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Board may adjust the
purchase price of the Series A Preferred Stock, the number of shares of the Series A Preferred Stock issuable and the number of
outstanding Rights to prevent dilution that may occur as a result of certain events, including a stock dividend, a stock split
or a reclassification of the Series A Preferred Stock or common stock. No adjustments to the purchase price of less than 1% will
be made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Before the time the Rights
cease to be redeemable, the Board may amend or supplement the Rights Agreement without the consent of the holders of the Rights,
except that no amendment may decrease the redemption price below $0.0001 per right. At any time thereafter, the Board may amend
or supplement the Rights Agreement only to cure an ambiguity, to alter time period provisions, to correct inconsistent provisions
or to make any additional changes to the Rights Agreement, but only to the extent that those changes do not impair or adversely
affect any Rights holder and do not result in the Rights becoming redeemable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The foregoing description
of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Anti-Takeover
Effects of Certain Provisions of Delaware Law and Our Certificate of Incorporation and Bylaws</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Certain provisions of the
Certificate of Incorporation and Bylaws could have an anti-takeover effect. These provisions are intended to enhance the likelihood
of continuity and stability in the composition of the Board and in the policies formulated by the Board and to discourage an unsolicited
takeover of us if the Board determines that such takeover is not in the best interests of us and our stockholders. However, these
provisions could have the effect of discouraging certain attempts to acquire us or remove incumbent management even if some or
a majority of stockholders deemed such an attempt to be in their best interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">&#9;The provisions in
the Certificate of Incorporation and the Bylaws include: (a)&nbsp;a procedure which requires stockholders to nominate directors
in advance of a meeting to elect such directors; (b)&nbsp;the authority to issue additional shares of preferred stock without stockholder
approval; (c) the number of directors on our Board will be fixed exclusively by the Board; (d) any newly created directorship or
any vacancy in our Board resulting from any increase in the authorized number of directors or the death, disability, resignation,
retirement, disqualification, removal from office or other cause will be filled solely by the affirmative vote of a majority of
the directors then in office, even if less than a quorum; and (e) our Bylaws may be amended by our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The DGCL contains statutory
&ldquo;anti-takeover&rdquo; provisions, including Section&nbsp;203 of the DGCL which applies automatically to a Delaware corporation
unless that corporation elects to opt-out as provided in Section&nbsp;203. We, as a Delaware corporation, have not elected to opt-out
of Section&nbsp;203 of the DGCL. Under Section&nbsp;203 of the DGCL, a stockholder acquiring more than 15% of the outstanding voting
shares of a corporation (an &ldquo;Interested Stockholder&rdquo;) but less than 85% of such shares may not engage in certain business
combinations with the corporation for a period of three years subsequent to the date on which the stockholder became an Interested
Stockholder unless prior to such date, the board of directors of the corporation approves either the business combination or the
transaction which resulted in the stockholder becoming an Interested Stockholder, or the business combination is approved by the
board of directors and by the affirmative vote of at least 66<SUP>2/3</SUP>% of the outstanding voting stock that is not owned
by the Interested Stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Limitation of Liability and Indemnification of Officers and Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to provisions
of the DGCL, we have adopted provisions in our Certificate of Incorporation that provide that our directors shall not be personally
liable for monetary damages to us or our stockholders for a breach of fiduciary duty as a director to the full extent that the
Securities Act permits the limitation or elimination of the liability of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have in effect a directors
and officers liability insurance policy indemnifying our directors and officers and the directors and officers of our subsidiaries
within a specific limit for certain liabilities incurred by them, including liabilities under the Securities Act. We pay the entire
premium of this policy. Our Certificate of Incorporation also contains a provision for the indemnification by us of all of our
directors and officers, to the fullest extent permitted by the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Exclusive Forum</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our Bylaws provide that,
unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to
the fullest extent permitted by law, be the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf
of the Company, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, other employee or
stockholder of the Company to the Company or the Company&rsquo;s stockholders, (c) any action asserting a claim arising pursuant
to any provision of the DGCL or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or
(d) any action asserting a claim governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring
any interest in shares of our stock shall be deemed to have notice of and consented to the foregoing forum selection provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_008"></A>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Selling Stockholders,
which as used herein includes donees, pledgees, transferees or other successors-in-interest selling shares of our common stock
or interests in shares of our common stock received after the date of this prospectus from a Selling Stockholder as a gift, pledge,
partnership distribution or other transfer, may, from time to time, sell, transfer or otherwise dispose of any or all of their
shares of our common stock or interests in shares of our common stock on any stock exchange, market or trading facility on which
the shares are traded, in private transactions or through a combination of such methods. These dispositions may be at fixed prices,
at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined
at the time of sale, or at negotiated prices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Selling Stockholders
may use any one or more of the following methods when disposing of shares or interests therein:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">market transactions in accordance with the rules of NASDAQ or any other available markets or exchanges;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">block trades in which the broker-dealer will attempt to sell the shares as agent, but may position
and resell a portion of the block as principal to facilitate the transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">purchases by a broker-dealer as principal and resale by the broker-dealer for its account;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an exchange distribution in accordance with the rules of the applicable exchange;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">privately negotiated transactions;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">short sales entered into after the date of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">through the writing or settlement of options or other hedging transactions, whether through an
options exchange or otherwise;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">distributions to the partners and/or members of the Selling Stockholders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">redemptions or repurchases of interests owned by partners and/or members of the Selling Stockholders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares
at a stipulated price per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a combination of any such methods of sale; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">any other method permitted pursuant to applicable law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent permitted,
this prospectus may be amended or supplemented from time to time to describe a specific plan of distribution. In connection with
the sale of our common stock or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of our common stock in the course of hedging the positions
they assume with the selling stockholders. The Selling Stockholders may also sell shares of our common stock short and deliver
these securities to close out their short positions, or loan or pledge our common stock to broker-dealers that in turn may sell
these securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial
institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial
institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant
to this prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Short selling occurs when
a person sells shares of stock which the person does not yet own and promises to buy stock in the future to cover the sale. The
general objective of the person selling the shares short is to make a profit by buying the shares later, at a lower price, to cover
the sale. Significant amounts of short selling, or the perception that a significant amount of short sales could occur, could depress
the market price of our common stock. In contrast, purchases to cover a short position may have the effect of preventing or retarding
a decline in the market price of our common stock, and together with the imposition of the penalty bid, may stabilize, maintain
or otherwise affect the market price of our common stock. As a result, the price of our common stock may be higher than the price
that otherwise might exist in the open market. If these activities are commenced, they may be discontinued at any time. These transactions
may be effected on NASDAQ, in the over-the-counter market or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The aggregate proceeds to the Selling Stockholders
from the sale of our common stock offered by them will be the purchase price of our common stock less discounts or commissions,
if any. Each of the Selling Stockholders reserves the right to accept and, together with their agents from time to time, to reject,
in whole or in part, any proposed purchase of our common stock to be made directly or through agents. We will not receive any of
the proceeds from this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Selling Stockholders
also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act,
provided that they meet the criteria and conform to the requirements of that rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Selling Stockholders
and any underwriters, broker-dealers or agents that participate in the sale of our common stock or interests therein may be &ldquo;underwriters&rdquo;
within the meaning of Section 2(11) of the Securities Act. Any discounts, commissions, concessions or profits they earn on any
resale of the shares may be underwriting discounts and commissions under the Securities Act. Selling Stockholders who are &ldquo;underwriters&rdquo;
within the meaning of Section 2(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">To the extent required,
the shares of our common stock to be sold, the names of the Selling Stockholders, the respective purchase prices and public offering
prices, the names of any agents, dealers or underwriters, any applicable commissions or discounts with respect to a particular
offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the registration
statement that includes this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In order to comply with
the securities laws of some states, if applicable, our common stock may be sold in these jurisdictions only through registered
or licensed brokers or dealers. In addition, in some states our common stock may not be sold unless it has been registered or qualified
for sale or an exemption from registration or qualification requirements is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have advised the Selling
Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market
and to the activities of the Selling Stockholders and their affiliates. In addition, we will make copies of this prospectus (as
it may be supplemented or amended from time to time) available to the Selling Stockholders for the purpose of satisfying the prospectus
delivery requirements of the Securities Act. The Selling Stockholders may indemnify any broker-dealer that participates in transactions
involving the sale of the shares against certain liabilities, including liabilities arising under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_009"></A>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are subject to the informational
requirements of the Exchange Act, and in accordance therewith we are required to file periodic reports, proxy statements and other
information with the Commission. Such reports, proxy statements and other information filed by us can be inspected and copied at
the Commission&rsquo;s Public Reference Room located at 100 F Street, N.E. Washington, D.C. 20549, at the prescribed rates. The
Commission also maintains a site on the World Wide Web that contains reports, proxy and information statements and other information
regarding registrants that file electronically. The address of such site is http://www.sec.gov. Please call 1-800-SEC-0330 for
further information on the operation of the Commission&rsquo;s Public Reference Room.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our common stock is traded
on NASDAQ under the symbol &ldquo;BDE.&rdquo; Certain materials filed by us may be inspected at the NASDAQ Stock Market, One Liberty
Plaza, 165 Broadway, New York, NY 10006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This prospectus omits certain
information that is contained in the registration statement on file with the Commission, of which this prospectus is a part. For
further information with respect to us and our common stock, reference is made to the registration statement, including the exhibits
incorporated therein by reference or filed therewith. Statements herein contained concerning the provisions of any document are
not necessarily complete and, in each instance, reference is made to the copy of such document filed as an exhibit or incorporated
by reference to the registration statement. The registration statement and the exhibits may be inspected without charge at the
offices of the Commission or copies thereof obtained at prescribed rates from the public reference section of the Commission at
the addresses set forth above.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"><A NAME="a_010"></A>EXPERTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The consolidated financial
statements of Black Diamond, Inc. as of December 31, 2016 and 2015 and for each of the years in the three-year period ended December
31, 2016, and management&rsquo;s assessment of the effectiveness of internal control over financial reporting as of December 31,
2016 have been incorporated by reference herein, in reliance on the reports of KPMG LLP, independent registered public accounting
firm, incorporated by reference herein, and upon the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_011"></A>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The validity of the shares
of common stock offered hereby will be passed upon for us by Kane Kessler, P.C., New York, New York. Any underwriters will be advised
of the other issues relating to any offering by their own legal counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>REOFFER PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">BLACK DIAMOND, INC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2.75in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>2,427,500 Shares of Common Stock,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>par value $0.0001 per share</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>June 15, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>No dealer, salesperson or other person is
authorized to give any information or to represent anything not contained in this prospectus. You must not rely on any unauthorized
information or representations. This prospectus is an offer to sell only the shares offered hereby, but only under circumstances
and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INFORMATION REQUIRED IN THE REGISTRATION
STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Item 3. Incorporation of Documents by Reference.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following documents
filed with the Securities and Exchange Commission (the &ldquo;Commission&rdquo;) by Black Diamond, Inc., a Delaware corporation
(the &ldquo;Registrant&rdquo;), are incorporated by reference in to the Registration Statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our annual report on Form 10-K for the year ended December 31, 2016, filed with the Commission
on March 6, 2017;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our definitive proxy statement filed with the Commission on April 28, 2017;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our quarterly report on Form 10-Q for the quarter ended
March 31, 2017, filed with the Commission on May 8, 2017;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our current report on Form 8-K filed with the Commission on June 12 , 2017; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the description of our common stock contained in our registration statement on Form 8-A/A filed
on June 9, 2010, including any amendments or reports filed for the purpose of updating that description.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All of such documents are
on file with the Commission. In addition, all documents filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange
Act, subsequent to the date of this Registration Statement and prior to the filing of a post-effective amendment which indicates
that all the securities offered hereby have been sold or which deregisters all securities then remaining unsold shall be deemed
to be incorporated by reference in this Registration Statement and are a part hereof from the date of filing of such documents.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified
or superseded for purposes of this prospectus to the extent that a statement contained herein or in any subsequently filed document
that is also incorporated by reference herein modifies or replaces such statement. Any statements so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 4. Description of Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 5. Interests of Named Experts and Counsel.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 6. Indemnification of Directors and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Under Section 145 of the
Delaware General Corporation Law, a corporation may indemnify any person who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other
than an action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee
or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of
another corporation or other enterprise, against expenses, costs or fees (including attorneys&rsquo; fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding (a)
if such person acted in good faith and in a manner that such person reasonably believed to be in or not opposed to the best interests
of the corporation and (b) with respect to any criminal action or proceeding, if such person had no reasonable cause to believe
such conduct was unlawful.&nbsp;To the extent that such person has been successful on the merits or otherwise in defending any
such action, suit or proceeding referred to above or any claim, issue or matter therein, he or she is entitled to indemnification
for expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person in connection therewith. In the
case of an action or suit by or in the right of the corporation, no indemnification may be made in respect to any claim, issue
or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery of the State of Delaware, or the court in which such action or suit was brought, shall determine that, despite
the adjudication of liability, such person is fairly and reasonably entitled to indemnity for such expenses which the court shall
deem proper. Section&nbsp;145 provides that, to the extent a director, officer, employee or agent of a corporation has been successful
in the defense of any action, suit or proceeding referred to above or in the defense of any claim, issue or manner therein, such
person shall be indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person
in connection therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Registrant&rsquo;s
Amended and Restated Certificate of Incorporation, as amended (the &ldquo;Certificate of Incorporation&rdquo;), provides that the
Registrant shall indemnify to the full extent permitted by law any person made or threatened to be made a party to an action or
proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he, his testator or intestate
is or was a director, officer or employee of the Registrant or any predecessor of the Registrant or serves or served any other
enterprise as a director, officer or employee at the request of the Registrant or any predecessor of the Registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Registrant&rsquo;s
Amended and Restated By-Laws, as amended (the&nbsp;&nbsp;&ldquo;By-Laws&rdquo;), provide that the Registrant shall, to the maximum
extent and in the manner permitted by the Delaware General Corporation Law indemnify any person against expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any threatened, pending
or completed action, suit or proceeding in which such person was or is a party or is threatened to be made a party by reason of
the fact that such person is or was a director or officer of the Registrant. For purposes of such provisions, the By-Laws defines
a&nbsp;&nbsp;&ldquo;director&rdquo; or&nbsp;&nbsp;&ldquo;officer&rdquo; of the Registrant as, in addition to any director or officer
of the Registrant, any person who is or was serving at the request of the Registrant as a director or officer of another corporation,
partnership, joint venture, trust or other enterprise or who was a director or officer of a corporation which was a predecessor
corporation of the Registrant or of another enterprise at the request of such predecessor corporation.&nbsp; The Registrant&rsquo;s
By-Laws provide that the Registrant shall be required to indemnify a director or officer in connection with an action, suit or
proceeding (or part thereof) initiated by such director or officer only if the initiation of such action, suit or proceeding (or
part thereof) by the director or officer was authorized by the Board of Directors of the Registrant. The Registrant is required
to pay the expenses (including attorneys&rsquo; fees) incurred by a director or officer of the Registrant entitled to such indemnification
in defending any such action, suit or proceeding; provided, however, that payment of expenses incurred by a director or officer
of the Registrant in advance of the final disposition of such action, suit or proceeding shall be made only upon receipt of an
undertaking by the director or officer to repay all amounts advanced if it shall ultimately be determined that the director or
officer is not entitled to be indemnified. Any repeal or modification of the foregoing provisions of the Registrant&rsquo;s By-Laws
shall not adversely affect any right or protection hereunder of any person in respect of any act or omission occurring prior to
the time of such repeal or modification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The By-Laws provide that
if such an indemnification claim provided for under the By-Laws is not paid in full by the Registrant within sixty (60) days after
a written claim has been received by the Registrant, except in the case of a claim for an advancement of expenses, in which case
the applicable period shall be twenty (20) days, the person claiming indemnification may at any time thereafter bring suit against
the Registrant to recover the unpaid amount of the claim. If successful in whole or in part in any such suit or in a suit brought
by the Registrant to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall be entitled
to be paid also the expense of prosecuting or defending such suit. In any suit brought by a person claiming indemnification to
enforce a right to indemnification hereunder (but not in a suit brought by any such person to enforce a right to an advancement
of expenses), it shall be a defense that such person has not met the applicable standard of conduct set forth in the Delaware General
Corporation Law. In any suit by the Registrant to recover an advancement of expenses pursuant to the terms of an undertaking, the
Registrant shall be entitled to recover such expenses upon a final adjudication that such person has not met the applicable standard
of conduct set forth in the Delaware General Corporation Law. Neither the failure of the Registrant (including its Board of Directors,
independent legal counsel or its stockholders) to have made a determination prior to the commencement of any such suit that indemnification
is proper in the circumstances because the person claiming&nbsp;&nbsp;indemnification has met the applicable standard of conduct
set forth in the Delaware General Corporation Law, nor an actual determination by the Registrant (including its Board of Directors,
independent legal counsel or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create
a presumption that the indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by a person
claiming indemnification, be a defense to such suit. In any suit brought by a person claiming indemnification to enforce a right
hereunder, or by the Registrant to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving
that such person is not entitled to be indemnified or to such advancement of expenses shall be on the Registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The By-Laws provide that
the rights to indemnification and to the advancement of expenses conferred thereunder are not exclusive of any other right which
any person may have or acquire under any statute, the Certificate of Incorporation, the By-Laws, by agreement, by vote of stockholders
or disinterested directors or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Registrant&rsquo;s
directors and officers are insured (subject to certain exceptions and deductions) against liabilities which they may incur in their
capacity as such including liabilities under the Securities Act, under liability insurance policies carried by the Registrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 7. Exemption from Registration Claimed.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 8. Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Exhibit No.</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Amended and Restated Certificate of Incorporation of the Registrant (filed as Appendix C to the Registrant&rsquo;s Definitive Proxy Statement, filed with the Commission on November 6, 2002 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Registrant (filed as Exhibit 3.1 of the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission on July 31, 2003 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Registrant (filed as Exhibit 3.1 to the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission on January 24, 2011 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Amended and Restated Bylaws of the Registrant (filed as Appendix D to the Registrant&rsquo;s Definitive Proxy Statement, filed with the Commission on November 6, 2002 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Amendment No. 1 to the Amended and Restated Bylaws of the Registrant (filed as Exhibit 3.4 to the Registrant&rsquo;s Annual Report on Form 10-K, filed with the Commission on March 31, 2003 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Amendment No. 2 to the Amended and Restated By-Laws of the Registrant (filed as Exhibit 3.1 to the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Amendment No. 3 to the Amended and Restated By-Laws of the Registrant (filed as Exhibit 3.2 to the Registrant&rsquo;s Quarterly Report on Form 10-Q, filed with the Commission on August 9, 2010 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amendment No. 4 to the Amended and
Restated By-Laws of Black Diamond, Inc. (filed as Exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K, filed with the
Commission on June 9, 2016 and incorporated herein by reference).</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Form of Certificate of Designation of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission on February 13, 2008 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Registrant&rsquo;s Specimen Common Stock Certificate (filed as Exhibit 4.2 to the Registrant&rsquo;s Annual Report on Form 10-K, filed with the Commission on March 15, 2011 and incorporated herein by reference).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; text-align: center"><FONT STYLE="font-size: 10pt">4.11</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; text-align: justify"><FONT STYLE="font-size: 10pt">Form of Rights Certificate (filed as Exhibit 4.1 to the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission on February 13, 2008 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.12</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Registrant&rsquo;s 2005 Stock Incentive Plan (filed as Appendix A of the Registrant&rsquo;s Definitive Proxy Statement, filed with the Commission on May 2, 2005 and incorporated herein by reference).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amendment No. 1 to the Registrant&rsquo;s
2005 Stock Incentive Plan (filed as Exhibit 10.1 to the Registrant&rsquo;s Current Report on Form 8-K, filed with the Commission
on September 7, 2010 and incorporated herein by reference).</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.14</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Registrant&rsquo;s 2015 Stock Incentive Plan (filed as Appendix A to the Registrant&rsquo;s Proxy Statement, filed with the Commission on November 9, 2015 and incorporated herein by reference). </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">4.15</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Stock Option Agreement, dated December 23, 2002, between
Clarus Corporation and Warren B. Kanders (filed as Exhibit 4.6 of the Registrant&rsquo;s Registration Statement Form S-8 filed
with the Commission on August 19, 2005 and incorporated herein by reference).</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Opinion of Kane Kessler, P.C. (1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Independent Registered Public Accounting Firm. (1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">23.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Kane Kessler, P.C. (Included in Exhibit 5.1). (1)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Power of Attorney (included on the signature page of the Registration Statement hereto). (1)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Filed herewith.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left"><B>Item 9.</B></TD><TD STYLE="text-align: justify"><B>Undertakings</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD STYLE="text-align: justify">The undersigned Registrant hereby undertakes:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(a)</TD><TD STYLE="text-align: justify">To file, during any period in which offers or sales are being made, a post-effective amendment
to this registration statement:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">to include any prospectus required by Section 10(a)(3) of the Securities Act;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">to reflect in the prospectus any facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration
statement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">to include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify"><I>provided, however</I>, that paragraphs
(a)(i) and (a)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is
contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to Section&nbsp;13 or 15(d)
of the Exchange Act that are incorporated by reference in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">that, for the purpose of determining any liability under the Securities Act, each such post-effective
amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona&nbsp;fide offering thereof; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(c)</TD><TD STYLE="text-align: justify">to remove from registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD STYLE="text-align: justify">The undersigned Registrant hereby undertakes that, for purposes of determining any liability under
the Securities Act, each filing of the Registrant&rsquo;s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange
Act (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant to Section 15(d) of the Exchange
Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona&nbsp;fide
offering thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under the Securities Act may be permitted to
directors, officers and controlling persons of the undersigned Registrant pursuant to the provisions described in Item 6 or otherwise,
the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.4in; text-align: left; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act, the undersigned registrant certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Salt Lake, State of Utah, on June 15, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><B>BLACK DIAMOND, INC.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 16%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 16%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 16%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 4%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 34%; text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>/s/ Aaron J. Kuehne</I></FONT></TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Name: Aaron J. Kuehne</FONT></TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Title: Chief Financial Officer and Chief Administrative Officer</FONT></TD>
    <TD STYLE="text-align: left; text-indent: 0in">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Each of the undersigned
officers and directors of Black Diamond, Inc. hereby severally constitutes and appoints Warren B. Kanders and Aaron J. Kuehne as
the attorney-in-fact for the undersigned, in any and all capacities, with full power of substitution, to sign any and all pre-
or post-effective amendments to this registration statement, any subsequent registration statement for the same offering which
may be filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and any and all pre- or post-effective amendments
thereto, and to file the same with exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact full power and authority to do and perform each and every act and thing requisite
and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby
ratifying and confirming all that said attorney-in-fact may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities
indicated on June 15, 2017:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 73%; border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><B>Title</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><I>/s/ Warren B. Kanders</I></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Executive Chairman and Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Warren B. Kanders</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><I>/s/ Aaron J. Kuehne</I></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Chief Financial Officer and Chief Administrative Officer <BR>
(Principal Financial Officer and Principal Accounting Officer)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Aaron J. Kuehne</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><I>/s/ Donald L. House</I></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Donald L. House</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><I>/s/ Nicholas Sokolow</I></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Nicholas Sokolow</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><I>/s/ Michael A. Henning</I></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Director</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Michael A. Henning</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Exhibit No.</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: Black 1pt solid">&nbsp;&nbsp;<FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Opinion of Kane Kessler, P.C.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Consent of Independent Registered Public Accounting Firm.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">23.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Consent of Kane Kessler, P.C. (Included in Exhibit 5.1).</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Power of Attorney (included on the signature page of the Registration Statement hereto).</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>v468970_ex5-1.htm
<DESCRIPTION>OPINION OF KANE KESSLER, P.C.
<TEXT>
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 5.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">[Letterhead of Kane Kessler, P.C.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">June 15, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">450 Fifth Street, N.W.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">Re:</TD><TD STYLE="text-align: justify">Black Diamond, Inc.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0.5in"><U>Registration Statement on Form S-8</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">We have acted as special counsel to Black Diamond,
Inc., a Delaware corporation (the &ldquo;Company&rdquo;), in connection with the preparation of a Registration Statement on Form
S-8 (the &ldquo;Registration Statement&rdquo;) pertaining to the registration by the Company under the Securities Act of 1933,
as amended, of an aggregate of 7,560,961 shares (the &ldquo;Shares&rdquo;) of the Company&rsquo;s common stock (the &ldquo;Common
Stock&rdquo;), $0.0001 par value per share, pursuant to the Company&rsquo;s 2015 Stock Incentive Plan (the &ldquo;Plan&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">We have made such legal and factual examinations
and inquiries, including an examination of originals or copies certified or otherwise identified to our satisfaction of such documents,
corporate records and instruments, as we have deemed necessary or appropriate for purposes of this opinion. In our examination,
we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, and the conformity
to authentic original documents of all documents submitted to us as copies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">We have relied, without independent
investigation, upon a certificate from the Company&rsquo;s Chief Administrative Officer and Chief Financial Officer as to
certain factual and other matters including that the number of shares which the Company is authorized to issue in its Amended
and Restated Certificate of Incorporation, as amended, exceeds by at least the number of shares which may be issued
in connection with the Plan, the sum of (i) the number of shares of the Company&rsquo;s Common Stock outstanding, (ii)
the number of shares of the Company&rsquo;s Common Stock held as treasury shares, and (iii) the number of shares of
the Company&rsquo;s Common Stock which the Company is obligated to issue (or has otherwise reserved for issuance for
any purposes), and we have assumed for purposes of our opinion herein that such condition will remain true at all future
times relevant to this opinion. We have also assumed that the Company will cause certificates representing Shares issued in
the future to be properly executed and delivered and will take all other actions appropriate for the due and proper issuance
of such Shares. We have assumed for purposes of this opinion that options issued under the Plan and the Shares issuable
upon exercise of such options have been duly authorized by all necessary corporate action on the part of the Company and
such options have been duly authorized and granted under the Plan. We express no opinion regarding any shares reacquired by
the Company after initial issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">We are qualified to practice law in the
State of New York and do not purport to be experts on any law other than the laws of the State of New York, the General Corporation
Law of the State of Delaware and the Federal law of the United States. We are not admitted or qualified to practice in the State
of Delaware; however, we are generally familiar with the Delaware General Corporation Law as currently in effect and have made
such inquiries as we deem necessary to render the opinions contemplated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">Subject to the limitations stated in this letter,
and subject further to the following limitations, it is our opinion that the Shares issued or issuable by the Company, under and
in accordance with all of the provisions of the Plan, will, upon delivery thereof and receipt by the Company of all and adequate
consideration owed to the Company therefor (assuming such consideration exceeds the par value therefor), be validly issued, fully
paid and non-assessable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">The foregoing assumes that the aforesaid Registration
Statement will become and remain effective under the Securities Act of 1933, as amended, prior to any offering of the Shares pursuant
to the terms thereof and will be amended, as appropriate, and that there will be compliance with all applicable state securities
laws in connection with the offering of such securities, as well as compliance with the terms of the offering set forth in the
Registration Statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">This opinion is rendered solely for your benefit
and may not be relied upon by any other person or entity. This opinion is provided to you as of the date hereof. We undertake no,
and hereby disclaim any obligation to advise you of any change in any matter set forth herein. Without our prior written consent,
this opinion may not be quoted in whole or in part or otherwise referred to in any report or document furnished to any person or
entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">We consent to the filing of this letter as an
exhibit to the Registration Statement. In giving this consent, we do not thereby admit that we are within the category of persons
whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities
and Exchange Commission thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Very truly yours,</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 45%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">KANE KESSLER, P.C.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Jeffrey S. Tullman, President</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>v468970_ex23-1.htm
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 23.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consent of Independent Registered Public
Accounting Firm</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Black Diamond, Inc.:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We consent to the use of our reports dated March 6, 2017, with
respect to the consolidated balance sheets of Black Diamond, Inc. as of December 31, 2016 and December 31, 2015, and the related
consolidated statements of comprehensive (loss) income, stockholders&rsquo; equity, and cash flows for each of the years in the
three year period ended December 31, 2016, and the effectiveness of internal control over financial reporting as of December 31,
2016 incorporated by reference herein and to the reference to our firm under the heading &ldquo;Experts&rdquo; in the prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ KPMG LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Salt Lake City, Utah</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">June 14, 2017</P>



<P STYLE="margin: 0">&nbsp;</P>

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