| Delaware                                   | 58-1972600                           |
|--------------------------------------------|--------------------------------------|
| (State or Other Jurisdiction               | (I.R.S. Employer Identification No.) |
| of Incorporation or Organization)          |                                 |
|                                       |                                 |
| 2084 East 3900 South, Salt Lake City, Utah | 84124                                |
| (Address of Principal Executive Offices)   | (Zip Code)                           |

| Title of each class                      | Name of each exchange on which registered |
|------------------------------------------|-------------------------------------------|
| Common Stock, par value $.0001 per share | NASDAQ Global Select Market               |

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|          |                                                                                                               |   | PAGE   |
|---------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|
|          |                                                                                                               |   |   |
| PART I        |                                                                                                               |   |   |
| ITEM 1.       | BUSINESS                                                                                                           |   | 1      |
| ITEM 1A.      | RISK FACTORS                                                                                                       |   | 7      |
| ITEM 1B.      | UNRESOLVED STAFF COMMENTS                                                                                          |   | 17     |
| ITEM 2.       | PROPERTIES                                                                                                         |   | 18     |
| ITEM 3.       | LEGAL PROCEEDINGS                                                                                                  |   | 18     |
| ITEM 4.       | (REMOVED AND RESERVED)                                                                                             |   | 18     |
|          |                                                                                                               |   |   |
| PART II       |                                                                                                               |   |   |
| ITEM 5.       | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |   | 19     |
| ITEM 6.       | SELECTED FINANCIAL DATA                                                                                            |   | 21     |
| ITEM 7.       | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                              |   | 22     |
| ITEM 7A.      | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                         |   | 32     |
| ITEM 8.       | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                        |   | 33     |
| ITEM 9.       | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                               |   | 70     |
| ITEM 9A.      | CONTROLS AND PROCEDURES                                                                                            |   | 70     |
| ITEM 9B       | OTHER INFORMATION                                                                                                  |   | 71     |
|          |                                                                                                               |   |   |
| PART III      |                                                                                                               |   |   |
| ITEM 10.      | DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                                          |   | 72     |
| ITEM 11.      | EXECUTIVE COMPENSATION                                                                                             |   | 72     |
| ITEM 12.      | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                     |   | 72     |
| ITEM 13.      | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE                                          |   | 72     |
| ITEM 14.      | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                             |   | 72     |
|          |                                                                                                               |   |   |
| PART IV       |                                                                                                               |   |   |
| ITEM 15.      | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                         |   | 73     |
|          |                                                                                                               |   |   |
| SIGNATURES    |                                                                                                               | 77     |
| EXHIBIT INDEX |                                                                                                               | 78     |

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|   | · | Climbing:  Our climb line consists of technical equipment such as belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice protection and rock protection devices and various other climbing accessories. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Skiing:  Our skiing line consists of AvaLung backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mountaineering:  Our mountaineering line consists of mountaineering backpacks for alpine expeditions, backpacks for backcountry excursions, overnight trips, and day hikes, bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles and various other hiking and mountaineering accessories. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Climbing:  Our climbing products and accessories, including but not limited to, belay devices, carabiners, and harnesses, compete with products from companies such as Arc’Teryx, Petzl and Mammut. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Skiing:  Our skiing equipment and accessories, including but not limited to, skis, ski bindings, poles and boots, compete with products from competitors such as Atomic, Dynafit (Salewa), Dynastar (Lange), Garmont, K2, Volkl, Marker, Nordica, Rossignol, Salomon, Scarpa and Scott. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mountaineering:  Our mountaineering products, including but not limited to, backpacks, trekking poles, headlamps and tents, compete with products from companies such as Petzl, Mammut, Deuter, Kelty, Leki, Komperdell, Marmot, Mountain Hardwear, Mountainsmith, Osprey, Dakine, Sierra Designs and The North Face. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | consolidating their operations; |
|--------|--------|---------------------------------|

|   | · | undergoing restructurings or store closings; |
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|   | · | undergoing reorganizations; or |
|--------|--------|--------------------------------|

|   | · | realigning their affiliations. |
|--------|--------|--------------------------------|

|   | · | maintain strict quality standards; |
|--------|--------|------------------------------------|

|   | · | develop new and innovative products that appeal to consumers; |
|--------|--------|---------------------------------------------------------------|

|   | · | deliver products on a reliable basis at competitive prices; |
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|   | · | anticipate and respond to changing consumer trends in a timely manner; |
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|   | · | maintain favorable brand recognition; and |
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|   | · | provide effective marketing support. |
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|   | · | protectionist policies restricting or impairing the manufacturing, sales or import and export of our products; |
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|   | · | new restrictions on access to markets; |
|--------|--------|----------------------------------------|

|   | · | lack of developed infrastructure; |
|--------|--------|-----------------------------------|

|   | · | inflation or recession; |
|--------|--------|-------------------------|

|   | · | devaluations or fluctuations in the value of currencies; |
|--------|--------|----------------------------------------------------------|

|   | · | 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; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | social, political or economic instability; |
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|   | · | acts of war and terrorism; |
|--------|--------|----------------------------|

|   | · | natural disasters or other crises; |
|--------|--------|------------------------------------|

|   | · | reduced protection of intellectual property rights in some countries; |
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|   | · | increases in duties and taxation; and |
|--------|--------|---------------------------------------|

|   | · | 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, encouraging foreign investment or foreign trade by our host countries. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | an increase or decrease in consumer demand for our products or for products of our competitors; |
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|   | · | our failure to accurately forecast customer acceptance of new products; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | new product introductions by competitors; |
|--------|--------|-------------------------------------------|

|   | · | 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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | weak economic conditions or consumer confidence, which could reduce demand for discretionary items such as our products; and |
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|   | · | 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. |
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|   | · | political or labor instability in countries where our facilities, contractors and suppliers are located; |
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|   | · | 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; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 its brands; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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 ours goods produced in infected areas; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | imposition of duties, taxes and other charges on imports; and |
|--------|--------|--------------------------------------------------------------------|

|   | · | imposition or the repeal of laws that affect intellectual property rights. |
|--------|--------|----------------------------------------------------------------------------|

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|   | · | loss of key employees, customers or suppliers of acquired businesses; |
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|   | · | diversion of management's time and attention from our core businesses; |
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|   | · | adverse effects on existing business relationships with suppliers and customers; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | our ability to secure necessary financing; |
|--------|--------|--------------------------------------------|

|   | · | our ability to realize operating efficiencies, synergies, or other benefits expected from an acquisition; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | risks associated with entering markets in which we have limited or no experience; |
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|   | · | risks associated with our ability to execute successful due diligence; and |
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|   | · | assumption of contingent or undisclosed liabilities of acquisition targets. |
|--------|--------|-----------------------------------------------------------------------------|

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|   | · | incur debt (including secured debt) or issue guarantees; |
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|   | · | grant liens on its assets; |
|--------|--------|----------------------------|

|   | · | sell substantially of our assets; and |
|--------|--------|---------------------------------------|

|   | · | enter into certain mergers or consolidations or make certain acquisitions. |
|--------|--------|----------------------------------------------------------------------------|

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| Activity                                        |   | Location                                                     |   | Owned/Leased |
|-------------------------------------------------|--------|--------------------------------------------------------------|--------|--------------|
|                                            |   |                                                         |   |         |
| Corporate Headquarters:                         |   | Salt Lake City, Utah                                         |   | Owned        |
|                                            |   |                                                         |   |         |
| U.S. Distribution and Manufacturing Facilities: |   | Salt Lake City, Utah                                         |   | Leased       |
|                                            |   | Calexico, California                                         |   | Leased       |
|                                            |   |                                                         |   |         |
| China Distribution and Manufacturing Facility:  |   | Free Trade Zone, Zhuhai City, Guangdong Providence, PR China |   | Leased       |
|                                            |   |                                                         |   |         |
| Europe Headquarters:                            |   | Reinarch, Switzerland                                        |   | Leased       |

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|                         |   | High   |   |   | Low    |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
| Year ended December 31, 2010 |   |   |   |   |   |   |
| First Quarter                |   | $      | 4.80   |   |   | $      | 4.20 |   |
| Second Quarter               |   | $      | 7.73   |   |   | $      | 4.96 |   |
| Third Quarter                |   | $      | 6.97   |   |   | $      | 5.98 |   |
| Fourth Quarter               |   | $      | 8.01   |   |   | $      | 6.66 |   |
|                         |   |   |   |   |   |   |   |   |
| Year ended December 31, 2009 |   |   |   |   |   |   |   |   |
| First Quarter                |   | $      | 4.34   |   |   | $      | 3.85 |   |
| Second Quarter               |   | $      | 4.29   |   |   | $      | 3.79 |   |
| Third Quarter                |   | $      | 4.40   |   |   | $      | 3.90 |   |
| Fourth Quarter               |   | $      | 4.60   |   |   | $      | 4.21 |   |

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|                        |   | 12/31/2005 |   |   | 12/31/2006 |   |   | 12/31/2007 |   |   | 12/31/2008 |   |   | 12/31/2009 |   |   | 12/31/2010 |   |
|-----------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Black Diamond, Inc.         |   | $          | 100.00 |   |       | $      | 84.43  |       |   | $      | 70.66      |   |   | $          | 50.90  |   |       | $      | 50.90 |   |   | $ | 94.73 |   |
| NASDAQ Composite            |   | $          | 100.00 |   |       | $      | 109.52 |       |   | $      | 120.27     |   |   | $          | 71.51  |   |       | $      | 102.89 |   |   | $ | 120.29 |   |
| The Russell 2000 Index      |   | $          | 100.00 |   |       | $      | 117.00 |       |   | $      | 113.79     |   |   | $          | 74.19  |   |       | $      | 92.90 |   |   | $ | 116.40 |   |
| NASDAQ Global Select Market |   | $          | 100.00 |   |       | $      | 106.33 |       |   | $      | 117.88     |   |   | $          | 71.25  |   |       | $      | 102.55 |   |   | $ | 119.75 |   |

|        Plan Category       |   | (A)Number ofsecurities to beissued uponexercise ofoutstandingoptions, warrantsand rights |      |   | (B)Weighted-average exerciseprice ofoutstandingoptions, warrantsand rights |   |   | (C)Number of securities remainingavailable for future issuance underequity compensation plans(excluding securities reflected incolumn (A)) |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security holders (1)         |   |                                                                                                                        | 2,127,500 |   |                                                                                           | $      | 7.37   |                                                                                                                                                                                                        |   |   | 4,439,705 |   |
|                                                               |   |                                                                                                                        |      |   |                                                                                           |   |   |                                                                                                                                                                                                        |   |   |   |   |
| Equity compensation plans not approved by security holders (2) (3) |   |                                                                                                                        | 800,000   |   |                                                                                           | $      | 8.75   |                                                                                                                                                                                                        |   |   | — |   |
|                                                               |   |                                                                                                                        |      |   |                                                                                           |   |   |                                                                                                                                                                                                        |   |   |   |   |
| Total                                                              |   |                                                                                                                        | 2,927,500 |   |                                                                                           | $      | 7.74   |                                                                                                                                                                                                        |   |   | 4,439,705 |   |

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|                                                               |   | Year Ended December 31,                            |    |
|--------------------------------------------------------------------|--------|-------------------------------------------------------------------|---------|
|                                                               |   | 2010                                                              |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                               |   | (in thousands, except per share amounts) |    |
| Statement of Operations Data:                                      |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                                          |   | $                                                                 | 75,912  |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Gross profit                                                       |   |                                                              | 23,732  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating (loss) income                                            |   |                                                              | (16,367 | ) |   |   | (5,552 | ) |   |   | (4,873 | ) |   |   | (4,113 | ) |   |   | (5,307 | ) |
| Net income (loss)                                                  |   |                                                              | 51,190  |   |   |   | (4,845 | ) |   |   | (2,402 | ) |   |   | 117 |   |   |   | (1,291 | ) |
|                                                               |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share attributable to stockholders:            |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share                                    |   | $                                                                 | 2.58    |   |   | $ | (0.29 | ) |   | $ | (0.14 | ) |   | $ | 0.01 |   |   | $ | (0.08 | ) |
| Diluted earnings (loss) per share                                  |   |                                                              | 2.56    |   |   |   | (0.29 | ) |   |   | (0.14 | ) |   |   | 0.01 |   |   |   | (0.08 | ) |
|                                                               |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding for earnings per share: |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                              |   |                                                              | 19,815  |   |   |   | 16,867 |   |   |   | 16,867 |   |   |   | 16,658 |   |   |   | 16,613 |   |
| Diluted                                                            |   |                                                              | 20,022  |   |   |   | 16,867 |   |   |   | 16,867 |   |   |   | 17,051 |   |   |   | 16,613 |   |

|                                  |   | December 31, |    |
|---------------------------------------|--------|-------------------|---------|
|                                  |   | 2010              |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Balance Sheet Data:         |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total current assets                  |   | $                 | 62,603  |   |   | $ | 83,095 |   |   | $ | 86,145 |   |   | $ | 87,299 |   |   | $ | 84,974 |   |
| Total assets                          |   |              | 212,679 |   |   |   | 83,791 |   |   |   | 87,177 |   |   |   | 88,680 |   |   |   | 86,673 |   |
|                                  |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term obligations, net of current |   |              | 30,241  |   |   |   | 446 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total liabilities                     |   |              | 49,757  |   |   |   | 2,159 |   |   |   | 793 |   |   |   | 961 |   |   |   | 957 |   |
|                                  |   |              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders' equity            |   |              | 162,922 |   |   |   | 81,632 |   |   |   | 86,384 |   |   |   | 87,719 |   |   |   | 85,716 |   |

|                          |   | Predecessor Company (Note 1 of our consolidated financial statements) |   |
|-------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|
|                          |   | Period fromJuly 1, 2009to May 28,                                                    |   |   | Year Ended June 30, |   |
|                          |   | 2010                                                                                                          |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                          |   | (in thousands)                                                                                                |   |
| Statement of Operations Data: |   |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                     |   | $                                                                                                             | 87,081 |   |   | $ | 83,956 |   |   | $ | 77,793 |   |   | $ | 64,023 |   |   | $ | 56,345 |   |
| Gross profit                  |   |                                                                                                          | 33,920 |   |   |   | 30,564 |   |   |   | 28,589 |   |   |   | 23,993 |   |   |   | 20,750 |   |
| Operating income              |   |                                                                                                          | 7,708  |   |   |   | 4,629 |   |   |   | 3,558 |   |   |   | 3,252 |   |   |   | 3,352 |   |
| Net income                    |   |                                                                                                          | 6,242  |   |   |   | 2,285 |   |   |   | 2,057 |   |   |   | 1,516 |   |   |   | 1,856 |   |

|                                  |   | June 30, |   |
|---------------------------------------|--------|---------------|--------|
|                                  |   | 2009          |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Balance Sheet Data:         |   |          |   |   |   |   |   |   |   |   |   |   |
| Total current assets                  |   | $             | 39,034 |   |   | $ | 35,419 |   |   | $ | 30,941 |   |   | $ | 24,622 |   |
| Total assets                          |   |          | 50,904 |   |   |   | 44,537 |   |   |   | 38,052 |   |   |   | 30,423 |   |
|                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term obligations, net of current |   |          | 14,796 |   |   |   | 11,228 |   |   |   | 9,865 |   |   |   | 5,359 |   |
| Total liabilities                     |   |          | 27,672 |   |   |   | 22,971 |   |   |   | 19,326 |   |   |   | 13,018 |   |
|                                  |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total stockholders' equity            |   |          | 23,232 |   |   |   | 21,566 |   |   |   | 18,726 |   |   |   | 17,405 |   |

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|   | · | We use derivative instruments to hedge currency rate movements on foreign currency denominated sales.  We enter into forward contracts, option contracts and non-deliverable forwards to manage the impact of foreign currency fluctuations on a portion of our forecasted sales denominated in foreign currencies. These derivatives are carried at fair value on our consolidated balance sheets in other assets and accrued liabilities.  Changes in fair value of the derivatives not designated as hedge instruments are included in the determination of net income.  For derivative contracts designated as hedge instruments, the effective portion of gains and losses resulting from changes in fair value of the instruments are included in accumulated other comprehensive income and reclassified to earnings in the period the underlying hedged item is recognized in earnings.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We sell our products pursuant to customer orders or sales contracts entered into with our customers. Revenue is recognized when title and risk of loss pass to the customer and when collectability is reasonably assured. Charges for shipping and handling fees are included in net sales and the corresponding shipping and handling expenses are included in cost of sales in the accompanying consolidated statements of operations. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We account for income taxes using the asset and liability method. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating loss and tax credit carryforwards.  We make assumptions, judgments and estimates to determine our current provision for income taxes, our deferred tax assets and liabilities, and our uncertain tax positions.  Our judgments, assumptions and estimates relative to the current provision for income tax take into account current tax laws, our interpretation of current tax laws and possible outcomes of current and future audits conductions by foreign and domestic tax authorities.  Changes in tax law or our interpretation of tax laws and the resolution ofcurrent and future tax audits could significantly affect the amounts provided for income taxes in our consolidated financial statements.  Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and category of taxable income.  Actual operating results and the underlying amount and category of income in future years could cause our current assumptions, judgments and estimates of recoverable net deferred taxes to be inaccurate.  Changes in any of the assumptions, judgments and estimates mentioned above could cause our actual income tax obligations to differ from our estimates, which could materially affect our financial position and results of operations. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Compensation expense is recorded for all share-based awards granted based on the fair value of the award at the time of the grant and is recognized on a straight-line basis over the requisite service period of the award.  We estimate stock-based compensation for stock-options granted using the Black-Scholes option pricing model, which requires various highly subjective assumptions, including volatility and expected option life.  Further, we estimate forfeitures for stock-based awards granted, which are not expected to vest.  If any of these inputs or assumptions changes significantly, stock-based compensation expense may differ materially in the future from that recorded in the current period. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our depreciation policies for property and equipment reflect judgments on their estimated economic lives and residual value, if any.  Our amortization policies for intangible assets reflect judgments on the estimated amounts and duration of future cash flows expected to be generated by those assets.  We review property and definite-lived intangible assets for possible impairment whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of an asset may not be fully recoverable.  We test for possible impairment at the asset or asset group level, which is the lowest level for which there are identifiable cash flows. We measure recoverability of the carrying value of an asset or asset group by comparison with estimated undiscounted cash flows expected to be generated by the asset.  If the total of undiscountedcash flows exceeds the carrying value of the asset, there is no impairment charge. If the undiscounted cash flows are less than the carrying value of the asset, we estimate the fair value of the asset based on the present value of its future cash flows and recognize an impairment charge for the excess of the asset’s carrying value over its fair value. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Indefinite−lived intangible assets, consisting of trademarks, and goodwill are not subject to amortization. Rather, we evaluate those assets for possible impairment on an annual basis or more frequently if events or changes in circumstances indicate that it is more likely than not that the carrying value of an asset may exceed its fair value. Fair value of an indefinite−lived trademark intangible asset is based on an income approach using the relief−from−royalty method. Under this method, forecasted revenues for a trademark are assigned a royalty rate that would be charged to license the trademark (in lieu of ownership) from an independent party, and fair value is the present value of those forecasted royalties avoided by owning the trademark. If the fair value of the trademark intangible asset exceeds its carrying value, there is no impairment charge.If the fair value of the asset is less than its carrying value, an impairment charge would be recognized for the difference. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We assess the recoverability of the carrying value of goodwill using a required two−step approach. In the first step of the goodwill impairment test, we compare the carrying value the Company, including its recorded goodwill, to the estimated fair value. We estimate the fair value using an equity-value based and enterprise-value based methodology. The principal method used is an equity-value based method in which the Company’s market-cap is compared to the net book value. In the enterprise-value based method, the fair value of the Company is estimated by taking its market-cap plus interest bearing debt, which equals the enterprise value. This value is then compared to total assets, less non-interest bearing debt. If the fair value of the Company exceeds its carrying value, the goodwill is not impaired and no further review is required. However, if the fair value ofthe business unit is less than its carrying value, we perform the second step of the goodwill impairment test to determine the amount of the impairment charge, if any. The second step involves a hypothetical allocation of the fair value of the Company to its net tangible and intangible assets (excluding goodwill) as if the business unit were newly acquired, which results in an implied fair value of goodwill. The amount of the impairment charge is the excess of the recorded goodwill over the implied fair value of goodwill. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | TWELVEMONTHS          |    |         | FIVEMONTHS                    |   |   | TWELVEMONTHS          |   |   | TWELVE MONTHS    |   |
|-------------------------------------|--------|-----------------------|---------|--------------|-------------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                           |   | ENDED                 |    |         | ENDED                         |   |   | ENDED                 |   |   | ENDED                 |   |
|                           |   |                  |    |    | Predecessor                   |   |   | Combined              |   |   |                  |   |   | PredecessorCompany |   |   | Combined |   |
|                           |   | December 31,2010 |    |         | CompanyMay 28, 2010 |   |   | December 31,2010 |   |   | December 31,2009 |   |   | December 31,2009 |   |   | December 31,2009 |   |
|                           |   |                  |    |
| Sales                               |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |
| Domestic sales                      |   | $                     | 32,972  |         |                          | $      | 15,751 |                  |   | $      | 48,723                |   |   | $ | - |   |   | $ | 40,492 |   |   | $ | 40,492 |   |
| International sales                 |   |                  | 42,940  |         |                          |   | 19,192 |                  |   |   | 62,132                |   |   |   | - |   |   |   | 47,653 |   |   |   | 47,653 |   |
| Total sales                         |   |                  | 75,912  |         |                          |   | 34,943 |                  |   |   | 110,855               |   |   |   | - |   |   |   | 88,145 |   |   |   | 88,145 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                  |   |                  | 52,180  |         |                          |   | 21,165 |                  |   |   | 73,345                |   |   |   | - |   |   |   | 55,127 |   |   |   | 55,127 |   |
| Gross profit                        |   |                  | 23,732  |         |                          |   | 13,778 |                  |   |   | 37,510                |   |   |   | - |   |   |   | 33,018 |   |   |   | 33,018 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                  |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative |   |                  | 31,208  |         |                          |   | 12,138 |                  |   |   | 43,346                |   |   |   | 3,939 |   |   |   | 26,524 |   |   |   | 30,463 |   |
| Restructuring charge                |   |                  | 2,842   |         |                          |   | -      |                  |   |   | 2,842                 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Merger and integration              |   |                  | 974     |         |                          |   | -      |                  |   |   | 974                   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transaction costs                   |   |                  | 5,075   |         |                          |   | -      |                  |   |   | 5,075                 |   |   |   | 1,613 |   |   |   | - |   |   |   | 1,613 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses            |   |                  | 40,099  |         |                          |   | 12,138 |                  |   |   | 52,237                |   |   |   | 5,552 |   |   |   | 26,524 |   |   |   | 32,076 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income             |   |                  | (16,367 | )            |                          |   | 1,640  |                  |   |   | (14,727               | )      |   |   | (5,552 | ) |   |   | 6,494 |   |   |   | 942 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other (expense) income              |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                    |   |                  | (1,723  | )            |                          |   | (165   | )                     |   |   | (1,888                | )      |   |   | - |   |   |   | (994 | ) |   |   | (994 | ) |
| Interest income                     |   |                  | 46      |         |                          |   | 3      |                  |   |   | 49                    |   |   |   | 701 |   |   |   | - |   |   |   | 701 |   |
| Other, net                          |   |                  | (995    | )            |                          |   | 1,803  |                  |   |   | 808                   |   |   |   | - |   |   |   | 311 |   |   |   | 311 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other (expense) income, net   |   |                  | (2,672  | )            |                          |   | 1,641  |                  |   |   | (1,031                | )      |   |   | 701 |   |   |   | (683 | ) |   |   | 18 |   |
|                                |   |                  |    |         |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income before income tax     |   |                  | (19,039 | )            |                          |   | 3,281  |                  |   |   | (15,758               | )      |   |   | (4,851 | ) |   |   | 5,811 |   |   |   | 960 |   |
| (Benefit) income tax provision      |   |                  | (70,229 | )            |                          |   | 966    |                  |   |   | (69,263               | )      |   |   | (6 | ) |   |   | 1,868 |   |   |   | 1,862 |   |
| Net income (loss)                   |   | $                     | 51,190  |         |                          | $      | 2,315  |                  |   | $      | 53,505                |   |   | $ | (4,845 | ) |   | $ | 3,943 |   |   | $ | (902 | ) |

----

----

|                                |   | TWELVE MONTHS          |   |   | TWELVE MONTHS          |   |
|-------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                           |   | ENDED                       |   |   | ENDED                       |   |
|                           |   |                        |   |   | Predecessor Company    |   |   | Combined |   |   |   |   |   | Predecessor Company |   |   | Combined |   |
|                           |   | December 31, 2009 |   |   | December 31, 2009 |   |   | December 31, 2009 |   |   | December 31, 2008 |   |   | December 31, 2008 |   |   | December 31, 2008 |   |
|                           |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                               |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Domestic sales                      |   | $                           | -      |   |                        | $      | 40,492 |   |   | $ | 40,492 |   |   | $ | - |   |   | $ | 42,222 |   |   | $ | 42,222 |   |
| International sales                 |   |                        | -      |   |                        |   | 47,653 |   |   |   | 47,653 |   |   |   | - |   |   |   | 44,031 |   |   |   | 44,031 |   |
| Total sales                         |   |                        | -      |   |                        |   | 88,145 |   |   |   | 88,145 |   |   |   | - |   |   |   | 86,253 |   |   |   | 86,253 |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                  |   |                        | -      |   |                        |   | 55,127 |   |   |   | 55,127 |   |   |   | - |   |   |   | 55,436 |   |   |   | 55,436 |   |
| Gross profit                        |   |                        | -      |   |                        |   | 33,018 |   |   |   | 33,018 |   |   |   | - |   |   |   | 30,817 |   |   |   | 30,817 |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                  |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative |   |                        | 3,939  |   |                        |   | 26,524 |   |   |   | 30,463 |   |   |   | 4,873 |   |   |   | 27,233 |   |   |   | 32,106 |   |
| Transaction costs                   |   |                        | 1,613  |   |                        |   | - |   |   |   | 1,613 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses            |   |                        | 5,552  |   |                        |   | 26,524 |   |   |   | 32,076 |   |   |   | 4,873 |   |   |   | 27,233 |   |   |   | 32,106 |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income             |   |                        | (5,552 | )      |                        |   | 6,494 |   |   |   | 942 |   |   |   | (4,873 | ) |   |   | 3,584 |   |   |   | (1,289 | ) |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other (expense) income              |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                    |   |                        | -      |   |                        |   | (994 | ) |   |   | (994 | ) |   |   | - |   |   |   | (788 | ) |   |   | (788 | ) |
| Interest income                     |   |                        | 701    |   |                        |   | - |   |   |   | 701 |   |   |   | 2,473 |   |   |   | - |   |   |   | 2,473 |   |
| Other, net                          |   |                        | -      |   |                        |   | 311 |   |   |   | 311 |   |   |   | (2 | ) |   |   | 271 |   |   |   | 269 |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other (expense) income, net   |   |                        | 701    |   |                        |   | (683 | ) |   |   | 18 |   |   |   | 2,471 |   |   |   | (517 | ) |   |   | 1,954 |   |
|                                |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income before income tax     |   |                        | (4,851 | )      |                        |   | 5,811 |   |   |   | 960 |   |   |   | (2,402 | ) |   |   | 3,067 |   |   |   | 665 |   |
| (Benefit) income tax provision      |   |                        | (6     | )      |                        |   | 1,868 |   |   |   | 1,862 |   |   |   | - |   |   |   | 573 |   |   |   | 573 |   |
| Net income (loss)                   |   | $                           | (4,845 | )      |                        | $      | 3,943 |   |   | $ | (902 | ) |   | $ | (2,402 | ) |   | $ | 2,494 |   |   | $ | 92 |   |

----

----

|                                            |   | TWELVEMONTHS          |    |   | FIVEMONTHS                    |   |   | TWELVEMONTHS          |   |   | TWELVE MONTHS    |   |
|------------------------------------------------------|--------|-----------------------|---------|--------|-------------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                            |   | ENDED                 |    |   | ENDED                         |   |   | ENDED                 |   |   | ENDED                 |   |
|                                            |   |                  |    |   | Predecessor                   |   |   | Combined              |   |   |                  |   |   | PredecessorCompany |   |   | Combined |   |
|                                            |   | December 31,2010 |    |   | CompanyMay 28, 2010 |   |   | December 31,2010 |   |   | December 31,2009 |   |   | December 31,2009 |   |   | December 31,2009 |   |
|                                            |   |                  |    |   |                          |   |   |                  |   |   |                  |   |   |   |   |   |   |   |
| Net cash (used in ) provided by operating activities |   | $                     | (13,751 | )      |                          | $      | 7,412  |                  |   | $      | (6,339                | )      |   | $ | (3,652 | ) |   | $ | 6,909 |   |   | $ | 3,257 |   |
| Net cash (used in) provided by investing activities  |   |                  | (60,587 | )      |                          |   | (788   | )                     |   |   | (61,375               | )      |   |   | 42,673 |   |   |   | (3,303 | ) |   |   | 39,370 |   |
| Net cash provided by (used in) financing activities  |   |                  | 18,503  |   |                          |   | (6,261 | )                     |   |   | 12,242                |   |   |   | - |   |   |   | (4,369 | ) |   |   | (4,369 | ) |
| Effect of foreign exchange rates on cash             |   |                  | 239     |   |                          |   | (60    | )                     |   |   | 179                   |   |   |   | - |   |   |   | (46 | ) |   |   | (46 | ) |
| Change in cash and cash equivalents                  |   |                  | (55,596 | )      |                          |   | 303    |                  |   |   | (55,293               | )      |   |   | 39,021 |   |   |   | (809 | ) |   |   | 38,212 |   |
| Cash and cash equivalents, beginning of period       |   |                  | 58,363  |   |                          |   | 1,317  |                  |   |   | 59,680                |   |   |   | 19,342 |   |   |   | 2,126 |   |   |   | 21,468 |   |
| Cash and cash equivalents, end of period             |   | $                     | 2,767   |   |                          | $      | 1,620  |                  |   | $      | 4,387                 |   |   | $ | 58,363 |   |   | $ | 1,317 |   |   | $ | 59,680 |   |

----

----

|                         |   | Payments due by period |   |
|------------------------------|--------|------------------------|--------|
|                         |   | Total                  |   |   | Less than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |   | More than 5 years |   |
|                         |   | (in thousands)         |   |
| Contractual Obligations:     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating leases             |   | $                      | 4,326  |   |   | $ | 1,186 |   |   | $ | 1,787 |   |   | $ | 642 |   |   | $ | 711 |   |
| Capital leases               |   |                   | 305    |   |   |   | 158 |   |   |   | 131 |   |   |   | 16 |   |   |   | - |   |
| Line of credit               |   |                   | 14,735 |   |   |   | - |   |   |   | 14,735 |   |   |   | - |   |   |   | - |   |
| 5% Senior Subordinated Notes |   |                   | 22,610 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,610 |   |
| Trademark payable            |   |                   | 750    |   |   |   | 150 |   |   |   | 600 |   |   |   | - |   |   |   | - |   |
| Other long-term liabilities  |   |                   | 785    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 785 |   |
|                         |   | $                      | 43,511 |   |   | $ | 1,494 |   |   | $ | 17,253 |   |   | $ | 658 |   |   | $ | 24,106 |   |

----

----

|                                                                                                            |   | Page           |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------|
|                                                                                                            |   |           |
| Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements                    |   |  34       |
|                                                                                                            |   |           |
| Independent Auditor’s Report                                                                              |   |  35       |
|                                                                                                            |   |           |
| Independent Auditor’s Report                                                                              |   |  36       |
|                                                                                                            |   |           |
| Consolidated Balance Sheets - December 31, 2010 and 2009 and June 30, 2009 (Predecessor)                        |   |  37       |
|                                                                                                            |   |           |
| Consolidated Statements of Operations - Years Ended December 31, 2010, 2009 and 2008 and Period From            |   |           |
| July 1, 2009 to May 28, 2010, and Years Ended June 30, 2009 and 2008 (Predecessor)                              |   |  38  |
|                                                                                                            |   |           |
| Consolidated Statements of Cash Flows -Years Ended December 31, 2010, 2009 and 2008 and Period From             |   |           |
| July 1, 2009 to May 28, 2010, and Years Ended June 30, 2009 and 2008 (Predecessor)                              |   |  39  |
|                                                                                                            |   |           |
| Consolidated Statements of Stockholders' Equity and Comprehensive Loss -Years Ended December 31, 2010, 2009 and |   |           |
| 2008 and Period From July 1, 2009 to May 28, 2010, and Years ended June 30, 2009 and 2008 (Predecessor)         |   |  41  |
|                                                                                                            |   |           |
| Notes to Consolidated Financial Statements                                                                      |   |  43       |

----

| /s/ KPMG LLP       |   |
|--------------------|--------|
| Salt Lake City, UT |   |
| March 15, 2011     |   |

----

| /s/ KPMG LLP       |   |
|--------------------|--------|
| Salt Lake City, UT |   |
| March 15, 2011     |   |

----

| /s/ TANNER LC      |   |
|--------------------|--------|
| Salt Lake City, UT |   |
| September 15, 2009 |   |

----

|                                                                           |   | December 31, |     |   | PredecessorCompany |   |
|--------------------------------------------------------------------------------|--------|-------------------|----------|--------|--------------------|--------|
|                                                                           |   | 2010              |     |   | 2009               |   |   | June 30, 2009 |   |
| Assets                                                                         |   |              |     |   |               |   |   |   |   |
| Current Assets                                                                 |   |              |     |   |               |   |   |   |   |
| Cash and cash equivalents                                                      |   | $                 | 2,767    |   |               | $      | 58,363 |   |   | $ | 1,271 |   |
| Marketable securities                                                          |   |              | -        |   |               |   | 24,059 |   |   |   | - |   |
| Accounts receivable, net                                                       |   |              | 20,293   |   |               |   | - |   |   |   | 9,727 |   |
| Inventories                                                                    |   |              | 34,942   |   |               |   | - |   |   |   | 25,580 |   |
| Prepaid and other current assets                                               |   |              | 2,527    |   |               |   | 673 |   |   |   | 646 |   |
| Income tax receivable                                                          |   |              | 376      |   |               |   | - |   |   |   | - |   |
| Deferred income taxes                                                          |   |              | 1,698    |   |               |   | - |   |   |   | 1,810 |   |
| Total Current Assets                                                           |   |              | 62,603   |   |               |   | 83,095 |   |   |   | 39,034 |   |
|                                                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Non-Current Assets                                                             |   |              |     |   |               |   |   |   |   |   |   |   |
| Property and equipment, net                                                    |   |              | 14,740   |   |               |   | 696 |   |   |   | 9,781 |   |
| Definite lived intangible assets, net                                          |   |              | 17,439   |   |               |   | - |   |   |   | 32 |   |
| Indefinite lived intangible assets                                             |   |              | 32,650   |   |               |   | - |   |   |   | 897 |   |
| Goodwill                                                                       |   |              | 40,601   |   |               |   | - |   |   |   | 1,160 |   |
| Deferred income taxes                                                          |   |              | 43,582   |   |               |   | - |   |   |   | - |   |
| Other long-term assets                                                         |   |              | 1,064    |   |               |   | - |   |   |   | - |   |
| Total Non-Current Assets                                                       |   |              | 150,076  |   |               |   | 696 |   |   |   | 11,870 |   |
| TOTAL ASSETS                                                                   |   | $                 | 212,679  |   |               | $      | 83,791 |   |   | $ | 50,904 |   |
|                                                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Current Liabilities                                                            |   |              |     |   |               |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                       |   | $                 | 19,208   |   |               | $      | 1,713 |   |   | $ | 9,884 |   |
| Current portion of long-term debt                                              |   |              | 308      |   |               |   | - |   |   |   | 2,992 |   |
| Total Current Liabilities                                                      |   |              | 19,516   |   |               |   | 1,713 |   |   |   | 12,876 |   |
|                                                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Non-Current Liabilities                                                        |   |              |     |   |               |   |   |   |   |   |   |   |
| Long-term debt                                                                 |   |              | 29,456   |   |               |   | - |   |   |   | 14,195 |   |
| Other long-term liabilities                                                    |   |              | 785      |   |               |   | 446 |   |   |   | - |   |
| Deferred income taxes                                                          |   |              | -        |   |               |   | - |   |   |   | 601 |   |
| TOTAL LIABILITIES                                                              |   |              | 49,757   |   |               |   | 2,159 |   |   |   | 27,672 |   |
|                                                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Stockholders' Equity                                                           |   |              |     |   |               |   |   |   |   |   |   |   |
| Preferred stock, $.0001 par value; 5,000 shares authorized; none issued        |   |              | -        |   |               |   | - |   |   |   | - |   |
| Common stock, $.0001 par value; 100,000 shares authorized:                     |   |              |     |   |               |   |   |   |   |   |   |   |
|  21,814 and 17,442 shares issued;  and 21,739 and               |   |              |     |   |               |   |   |   |   |   |   |   |
|  17,367 outstanding in 2010 and 2009, respectively                        |   |              | 2        |   |               |   | 2 |   |   |   | - |   |
| Common stock, $0.01 par value; 200 shares authorized; 86 shares issued         |   |              |     |   |               |   |   |   |   |   |   |   |
|  at June 30, 2009 (including 11 shares held in treasury at June 30, 2009) |   |              | -        |   |               |   | - |   |   |   | 1 |   |
| Additional paid-in capital                                                     |   |              | 399,475  |   |               |   | 370,994 |   |   |   | 2,707 |   |
| (Accumulated deficit) retained earnings                                        |   |              | (238,178 | )      |               |   | (289,368 | ) |   |   | 22,499 |   |
| Treasury stock, at cost                                                        |   |              | (2       | )      |               |   | (2 | ) |   |   | (2,678 | ) |
| Accumulated other comprehensive income                                         |   |              | 1,625    |   |               |   | 6 |   |   |   | 703 |   |
| TOTAL STOCKHOLDERS' EQUITY                                                     |   |              | 162,922  |   |               |   | 81,632 |   |   |   | 23,232 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     |   | $                 | 212,679  |   |               | $      | 83,791 |   |   | $ | 50,904 |   |

----

|                            |   |                                   |    |   |                                                                         |   |   |   |   |   | Predecessor Company |   |
|--------------------------------------|--------|----------------------------------------|---------|--------|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------------------------|--------|
|                            |   |                                   |    |   | Period from July 1, 2009 to May 28,  |   |   |   |   |
|                                 |   | Year Ended December 31, |    |   | Year Ended June 30,                                           |   |
|                                 |   | 2010                                   |    |   | 2009                                                                         |   |   | 2008   |   |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                            |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |
| Sales                                |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |
| Domestic sales                       |   | $                                      | 32,972  |   |                                                                         | $      | -      |   |   | $      | -                        |   |   | $ | 39,905 |   |   | $ | 40,286 |   |   | $ | 38,902 |   |
| International sales                  |   |                                   | 42,940  |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | 47,176 |   |   |   | 43,670 |   |   |   | 38,891 |   |
| Net sales                            |   |                                   | 75,912  |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | 87,081 |   |   |   | 83,956 |   |   |   | 77,793 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                   |   |                                   | 52,180  |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | 53,161 |   |   |   | 53,392 |   |   |   | 49,204 |   |
| Gross profit                         |   |                                   | 23,732  |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | 33,920 |   |   |   | 30,564 |   |   |   | 28,589 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                   |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative  |   |                                   | 31,208  |   |                                                                         |   | 3,939  |   |   |   | 4,873                    |   |   |   | 26,212 |   |   |   | 25,935 |   |   |   | 25,031 |   |
| Restructuring charge                 |   |                                   | 2,842   |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Merger and integration               |   |                                   | 974     |   |                                                                         |   | -      |   |   |   | -                        |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transaction costs                    |   |                                   | 5,075   |   |                                                                         |   | 1,613  |   |   |   | -                        |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses             |   |                                   | 40,099  |   |                                                                         |   | 5,552  |   |   |   | 4,873                    |   |   |   | 26,212 |   |   |   | 25,935 |   |   |   | 25,031 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating (loss) income              |   |                                   | (16,367 | )      |                                                                         |   | (5,552 | )      |   |   | (4,873                   | )      |   |   | 7,708 |   |   |   | 4,629 |   |   |   | 3,558 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other (expense) income               |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                     |   |                                   | (1,723  | )      |                                                                         |   | -      |   |   |   | -                        |   |   |   | (530 | ) |   |   | (1,018 | ) |   |   | (869 | ) |
| Interest income                      |   |                                   | 46      |   |                                                                         |   | 701    |   |   |   | 2,473                    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other, net                           |   |                                   | (995    | )      |                                                                         |   | -      |   |   |   | (2                       | )      |   |   | 1,889 |   |   |   | (69 | ) |   |   | 240 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other (expense) income, net    |   |                                   | (2,672  | )      |                                                                         |   | 701    |   |   |   | 2,471                    |   |   |   | 1,359 |   |   |   | (1,087 | ) |   |   | (629 | ) |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income before income tax      |   |                                   | (19,039 | )      |                                                                         |   | (4,851 | )      |   |   | (2,402                   | )      |   |   | 9,067 |   |   |   | 3,542 |   |   |   | 2,929 |   |
| Income tax (benefit) expense         |   |                                   | (70,229 | )      |                                                                         |   | (6     | )      |   |   | -                        |   |   |   | 2,825 |   |   |   | 1,257 |   |   |   | 872 |   |
| Net income (loss)                    |   | $                                      | 51,190  |   |                                                                         | $      | (4,845 | )      |   | $      | (2,402                   | )      |   | $ | 6,242 |   |   | $ | 2,285 |   |   | $ | 2,057 |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:           |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   | $                                      | 2.58    |   |                                                                         | $      | (0.29  | )      |   | $      | (0.14                    | )      |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                              |   |                                   | 2.56    |   |                                                                         |   | (0.29  | )      |   |   | (0.14                    | )      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding: |   |                                   |    |   |                                                                         |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   |                                   | 19,815  |   |                                                                         |   | 16,867 |   |   |   | 16,867                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                              |   |                                   | 20,022  |   |                                                                         |   | 16,867 |   |   |   | 16,867                   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                     |   |                    |    |   |                                |   |    |   |   |   | Predecessor Company |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------------------|--------|---------|--------|--------|--------|---------------------|--------|
|                                                                                                          |   |                    |    |   | Period from July 1, 2009 to May 28, |   |    |   |   |
|                                                                                                          |   | Year Ended December 31, |    |   | Year Ended June 30,                 |   |
|                                                                                                          |   | 2010                    |    |   | 2009                                |   |    | 2008   |   |   | 2010                |   |   | 2009 |   |   | 2008 |   |
|                                                                                                          |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                         |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |
| Net income (loss)                                                                                             |   | $                       | 51,190  |   |                                | $      | (4,845  | )      |   | $      | (2,402              | )      |   | $ | 6,242 |   |   | $ | 2,285 |   |   | $ | 2,057 |   |
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating  activities: |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                 |   |                    | 2,709   |   |                                |   | 342     |   |   |   | 356                 |   |   |   | 2,140 |   |   |   | 2,042 |   |   |   | 1,541 |   |
| Accretion of discount on notes payable                                                                        |   |                    | 596     |   |                                |   | -       |   |   |   | -                   |   |   |   | 38 |   |   |   | - |   |   |   | - |   |
| Loss on disposition of assets                                                                                 |   |                    | 624     |   |                                |   | 1       |   |   |   | -                   |   |   |   | 4 |   |   |   | 4 |   |   |   | 5 |   |
| Stock-based compensation expense                                                                              |   |                    | 5,109   |   |                                |   | 490     |   |   |   | 677                 |   |   |   | 165 |   |   |   | 48 |   |   |   | 110 |   |
| Amortization of discount on securities, net                                                                   |   |                    | -       |   |                                |   | (466    | )      |   |   | (1,945              | )      |   |   | - |   |   |   | - |   |   |   | - |   |
| Excess tax benefit from stock-based compensation                                                              |   |                    | -       |   |                                |   | -       |   |   |   | -                   |   |   |   | 1,147 |   |   |   | 53 |   |   |   | 25 |   |
| Deferred income taxes                                                                                         |   |                    | (71,055 | )      |                                |   | -       |   |   |   | -                   |   |   |   | 816 |   |   |   | 393 |   |   |   | (460 | ) |
| Changes in operating assets and liablities, net of acquisitions:                                              |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase)/decrease in accounts receivable                                                                    |   |                    | (4,338  | )      |                                |   | -       |   |   |   | -                   |   |   |   | (2,264 | ) |   |   | (1,373 | ) |   |   | (1,597 | ) |
| Increase in inventory                                                                                         |   |                    | (2,908  | )      |                                |   | -       |   |   |   | -                   |   |   |   | 5,257 |   |   |   | (3,701 | ) |   |   | (2,208 | ) |
| (Increase)/decrease in prepaid and other current assets                                                       |   |                    | 122     |   |                                |   | (540    | )      |   |   | 57                  |   |   |   | (2,392 | ) |   |   | 635 |   |   |   | 513 |   |
|                                                                                                          |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase/(decrease) in accounts payable and accrued liabilities                                               |   |                    | 4,646   |   |                                |   | 1,330   |   |   |   | (235                | )      |   |   | (1,414 | ) |   |   | 757 |   |   |   | 858 |   |
| (Decrease)/increase in deferred rent                                                                          |   |                    | (446    | )      |                                |   | 36      |   |   |   | 67                  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                                           |   |                    | (13,751 | )      |                                |   | (3,652  | )      |   |   | (3,425              | )      |   |   | 9,739 |   |   |   | 1,143 |   |   |   | 844 |   |
|                                                                                                          |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                         |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |   |                    |    |   |                                |   |    |   |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of marketable securities                                                                             |   |                    | (22,065 | )      |                                |   | (48,943 | )      |   |   | (110,105            | )      |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds from maturity and sales of marketable securities                                                     |   |                    | 46,124  |   |                                |   | 91,623  |   |   |   | 90,993              |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase of businesses, net of cash acquired                                                                  |   |                    | (82,560 | )      |                                |   | -       |   |   |   | -                   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase of intangible assets                                                                                 |   |                    | -       |   |                                |   | -       |   |   |   | -                   |   |   |   | (10 | ) |   |   | - |   |   |   | - |   |
| Proceeds from disposition of assets                                                                           |   |                    | -       |   |                                |   | -       |   |   |   | -                   |   |   |   | 13 |   |   |   | 11 |   |   |   | 42 |   |
| Capital expenditures                                                                                          |   |                    | (2,086  | )      |                                |   | (7      | )      |   |   | (7                  | )      |   |   | (1,821 | ) |   |   | (3,912 | ) |   |   | (3,896 | ) |
| NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES                                                           |   |                    | (60,587 | )      |                                |   | 42,673  |   |   |   | (19,119             | )      |   |   | (1,818 | ) |   |   | (3,901 | ) |   |   | (3,854 | ) |

----

| CASH FLOWS FROM FINANCING ACTIVITIES:                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|
| Repayment of long-term debt                                              |   |   | (5,526  | )      |   |   | -      |   |   |   | -       |   |   |   | (8,445 | )      |   |   | (173 | ) |   |   | (121 | ) |
| Proceeds from issuance of long-term debt                                 |   |   | 20,121  |   |   |   | -      |   |   |   | -       |   |   |   | -      |   |   |   | 2,515 |   |   |   | 2,699 |   |
| Purchase of treasury stock                                               |   |   | -       |   |   |   | -      |   |   |   | -       |   |   |   | (689   | )      |   |   | (685 | ) |   |   | (431 | ) |
| Proceeds from sales of treasury stock and exercise of stock options      |   |   | 1,005   |   |   |   | -      |   |   |   | -       |   |   |   | 1,585  |   |   |   | 600 |   |   |   | 617 |   |
| Proceeds from the sale of stock                                          |   |   | 2,903   |   |   |   | -      |   |   |   | -       |   |   |   | -      |   |   |   | - |   |   |   | - |   |
| Dividends paid                                                           |   |   | -       |   |   |   | -      |   |   |   | -       |   |   |   | -      |   |   |   | (225 | ) |   |   | (355 | ) |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                      |   |   | 18,503  |   |   |   | -      |   |   |   | -       |   |   |   | (7,549 | )      |   |   | 2,032 |   |   |   | 2,409 |   |
|                                                                     |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect of foreign exchange rates on cash                                 |   |   | 239     |   |   |   | -      |   |   |   | -       |   |   |   | (23    | )      |   |   | (292 | ) |   |   | 1,187 |   |
|                                                                     |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CHANGE IN CASH AND CASH EQUIVALENTS                                      |   |   | (55,596 | )      |   |   | 39,021 |   |   |   | (22,544 | )      |   |   | 349    |   |   |   | (1,018 | ) |   |   | 586 |   |
| CASH AND CASH EQUIVALENTS, beginning of period                           |   |   | 58,363  |   |   |   | 19,342 |   |   |   | 41,886  |   |   |   | 1,271  |   |   |   | 2,289 |   |   |   | 1,703 |   |
| CASH AND CASH EQUIVALENTS, end of period                                 |   | $      | 2,767   |   |   | $      | 58,363 |   |   | $      | 19,342  |   |   | $      | 1,620  |   |   | $      | 1,271 |   |   | $ | 2,289 |   |
|                                                                     |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                        |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid for income taxes                                               |   | $      | 1,239   |   |   | $      | -      |   |   | $      | -       |   |   | $      | 3,013  |   |   | $      | 1,130 |   |   | $ | 1,911 |   |
| Cash paid for interest                                                   |   | $      | 1,034   |   |   | $      | -      |   |   | $      | -       |   |   | $      | 555    |   |   | $      | 1,024 |   |   | $ | 892 |   |
| SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Note payable issued to acquire intangible asset                          |   | $      | -       |   |   | $      | -      |   |   | $      | -       |   |   | $      | -      |   |   | $      | 897 |   |   | $ | - |   |
| Stock issued for business acquisition                                    |   | $      | 19,465  |   |   | $      | -      |   |   | $      | -       |   |   | $      | -      |   |   | $      | - |   |   | $ | - |   |
|                                                                     |   |   |    |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes and deferred compensation issued in business acquisition           |   | $      | 13,442  |   |   | $      | -      |   |   | $      | -       |   |   | $      | -      |   |   | $      | - |   |   | $ | - |   |

----

|                                     |   | Common Stock |   |   | Additional Paid-In |   |   | Accumulated |   |   | Treasury Stock |   |   | Accumulated Other Comprehensive |     |   | Total Stockholders' |   |   | Comprehensive |   |
|-----------------------------------------------|--------|--------------|--------|--------|--------------------|--------|--------|-------------|--------|--------|----------------|--------|--------|---------------------------------|----------|--------|---------------------|--------|--------|---------------|--------|
|                                          |   | Shares       |   |   | Amount             |   |   | Capital     |   |   | Deficit        |   |   | Shares                          |     |   | Amount              |   |   | Income        |   |   | Equity |   |   | Income (Loss) |   |
|                                          |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |
| Balance, December 31, 2007                    |   |         | 17,442 |   |               | $      | 2      |        |   | $      | 369,827        |   |   | $                               | (282,121 | )      |                |   | (75    | )             |   | $ | (2 | ) |   | $ | 13 |   |   | $ | 87,719 |   |   |   |   |
| Components of comprehensive income:           |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                      |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | (2,402   | )      |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | (2,402 | ) |   | $ | (2,402 | ) |
| Unrealized gain on marketable securities, net |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | 390 |   |   |   | 390 |   |   |   | 390 |   |
| Comprehensive income                          |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | (2,012 | ) |
| Stock-based compensation                      |   |         | -      |   |               |   | -      |        |   |   | 677            |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 677 |   |   |   |   |   |
|                                          |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                    |   |         | 17,442 |   |               |   | 2      |        |   |   | 370,504        |   |   |                            | (284,523 | )      |                |   | (75    | )             |   |   | (2 | ) |   |   | 403 |   |   |   | 86,384 |   |   |   |   |   |
| Components of comprehensive income:           |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                      |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | (4,845   | )      |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | (4,845 | ) |   | $ | (4,845 | ) |
| Unrealized loss on marketable securities, net |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | (397 | ) |   |   | (397 | ) |   |   | (397 | ) |
| Comprehensive income                          |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | (5,242 | ) |
| Stock-based compensation                      |   |         | -      |   |               |   | -      |        |   |   | 490            |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 490 |   |   |   |   |   |
|                                          |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                    |   |         | 17,442 |   |               |   | 2      |        |   |   | 370,994        |   |   |                            | (289,368 | )      |                |   | (75    | )             |   |   | (2 | ) |   |   | 6 |   |   |   | 81,632 |   |   |   |   |   |
| Components of comprehensive income:           |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                      |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | 51,190   |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 51,190 |   |   | $ | 51,190 |   |
| Unrealized loss on marketable securities, net |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | (6 | ) |   |   | (6 | ) |   |   | (6 | ) |
| Foreign currency translation adjustment, net  |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | 1,862 |   |   |   | 1,862 |   |   |   | 1,862 |   |
| Unrealized loss on hedging activities, net    |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | (237 | ) |   |   | (237 | ) |   |   | (237 | ) |
| Comprehensive income                          |   |         | -      |   |               |   | -      |        |   |   | -              |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 52,809 |   |
| Stock issued due to option exercises          |   |         | 181    |   |               |   | -      |        |   |   | 1,004          |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 1,004 |   |   |   |   |   |
| Stock issued to employees                     |   |         | 484    |   |               |   | -      |        |   |   | 2,903          |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 2,903 |   |   |   |   |   |
| Shares issued in acquisition of GMP           |   |         | 3,707  |   |               |   | -      |        |   |   | 19,465         |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 19,465 |   |   |   |   |   |
| Stock-based compensation                      |   |         | -      |   |               |   | -      |        |   |   | 5,109          |   |   |                            | -        |   |                |   | -      |          |   |   | - |   |   |   | - |   |   |   | 5,109 |   |   |   |   |   |
|                                          |   |         |   |   |               |   |   |        |   |   |           |   |   |                            |     |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                    |   |         | 21,814 |   |               | $      | 2      |        |   | $      | 399,475        |   |   | $                               | (238,178 | )      |                |   | (75    | )             |   | $ | (2 | ) |   | $ | 1,625 |   |   | $ | 162,922 |   |   |   |   |   |

----

|                                    |   | Predecessor Company |   |
|----------------------------------------------|--------|---------------------|--------|
|                                         |   |                |   |   | Additional Paid-In |   |   | Retained |   |   |   |   |   | AccumulatedOther Comprehensive |   |   | Total Stockholders' |   |   | Comprehensive |   |
|                                         |   | Common Stock        |   |   | Treasury Stock |   |
|                                         |   | Shares              |   |   | Amount |   |   | Capital |   |   | Earnings |   |   | Shares |   |   | Amount |   |   | Income |   |   | Equity |   |   | Income |   |
|                                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2007                       |   |                | 86     |   |   | $ | 1 |   |   | $ | 1,917 |   |   | $ | 18,737 |   |   |   | 13 |   |   | $ | (2,225 | ) |   | $ | 296 |   |   | $ | 18,726 |   |   |   |   |
| Components of comprehensive income:          |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | 2,057 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,057 |   |   | $ | 2,057 |   |
| Foreign currency translation adjustment, net |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 895 |   |   |   | 895 |   |   |   | 895 |   |
| Unrealized loss on hedging activities, net   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (78 | ) |   |   | (78 | ) |   |   | (78 | ) |
| Comprehensive income                         |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,874 |   |
| Purchase of treasury stock                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | (431 | ) |   |   | - |   |   |   | (431 | ) |   |   |   |   |
| Issuance of stock from treasury              |   |                | -      |   |   |   | - |   |   |   | 170 |   |   |   | - |   |   |   | (2 | ) |   |   | 190 |   |   |   | - |   |   |   | 360 |   |   |   |   |   |
| Stock issued due to option exercises         |   |                | -      |   |   |   | - |   |   |   | 133 |   |   |   | - |   |   |   | (1 | ) |   |   | 148 |   |   |   | - |   |   |   | 281 |   |   |   |   |   |
| Stock-based compensation                     |   |                | -      |   |   |   | - |   |   |   | 111 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 111 |   |   |   |   |   |
| Dividends paid                               |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | (355 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (355 | ) |   |   |   |   |
|                                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2008                       |   |                | 86     |   |   |   | 1 |   |   |   | 2,331 |   |   |   | 20,439 |   |   |   | 11 |   |   |   | (2,318 | ) |   |   | 1,113 |   |   |   | 21,566 |   |   |   |   |   |
| Components of comprehensive income:          |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | 2,285 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,285 |   |   | $ | 2,285 |   |
| Foreign currency translation adjustment, net |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (262 | ) |   |   | (262 | ) |   |   | (262 | ) |
| Unrealized loss on hedging activities, net   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (148 | ) |   |   | (148 | ) |   |   | (148 | ) |
| Comprehensive income                         |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,875 |   |
| Purchase of treasury stock                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | (685 | ) |   |   | - |   |   |   | (685 | ) |   |   |   |   |
| Issuance of stock from treasury              |   |                | -      |   |   |   | - |   |   |   | 161 |   |   |   | - |   |   |   | (1 | ) |   |   | 117 |   |   |   | - |   |   |   | 278 |   |   |   |   |   |
| Stock issued due to option exercises         |   |                | -      |   |   |   | - |   |   |   | 127 |   |   |   | - |   |   |   | (1 | ) |   |   | 208 |   |   |   | - |   |   |   | 335 |   |   |   |   |   |
| Stock-based compensation                     |   |                | -      |   |   |   | - |   |   |   | 88 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 88 |   |   |   |   |   |
| Dividends paid                               |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | (225 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (225 | ) |   |   |   |   |
|                                         |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2009                       |   |                | 86     |   |   |   | 1 |   |   |   | 2,707 |   |   |   | 22,499 |   |   |   | 11 |   |   |   | (2,678 | ) |   |   | 703 |   |   |   | 23,232 |   |   |   |   |   |
| Components of comprehensive income:          |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | 6,242 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,242 |   |   | $ | 6,242 |   |
| Foreign currency translation adjustment, net |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (305 | ) |   |   | (305 | ) |   |   | (305 | ) |
| Comprehensive income                         |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,937 |   |
| Purchase of treasury stock                   |   |                | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | (689 | ) |   |   | - |   |   |   | (689 | ) |   |   |   |   |
| Issuance of stock from treasury              |   |                | -      |   |   |   | - |   |   |   | (7 | ) |   |   | - |   |   |   | - |   |   |   | 15 |   |   |   | - |   |   |   | 8 |   |   |   |   |   |
| Stock issued due to option exercises         |   |                | -      |   |   |   | - |   |   |   | 254 |   |   |   | - |   |   |   | (7 | ) |   |   | 1,331 |   |   |   | - |   |   |   | 1,585 |   |   |   |   |   |
| Stock-based compensation                     |   |                | -      |   |   |   | - |   |   |   | 1,304 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,304 |   |   |   |   |   |
| Balance, May 28, 2010                        |   |                | 86     |   |   | $ | 1 |   |   | $ | 4,258 |   |   | $ | 28,741 |   |   |   | 6 |   |   | $ | (2,021 | ) |   | $ | 398 |   |   | $ | 31,377 |   |   |   |   |   |

----

----

----

----

----

|   | · | create a unique platform to build a large, global and diversified outdoor equipment and lifestyle company, which seeks to be strengthened from both organic and acquisition growth; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | access to ample liquidity to fuel brand penetration and expansion; |
|--------|--------|--------------------------------------------------------------------|

|   | · | utilization of a significant portion of its deferred tax asset; |
|--------|--------|-----------------------------------------------------------------|

|   | · | preservation of an organization and culture with a strong foundation with greater resources and opportunities; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | ability to better utilize existing supply chain and distribution channels; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | greater combined global revenue balance; and |
|--------|--------|----------------------------------------------|

|   | · | improved efficiencies by combining certain operational functions. |
|--------|--------|-------------------------------------------------------------------|

----

|                                            |   | BDEL                     |    |   | GMP                  |   |   |                     |   |
|-------------------------------------------------|--------|--------------------------|---------|--------|----------------------|--------|--------|--------------------------|--------|
|                                            |   | EstimatedFair Value |    |   | Number ofShares |   |   | EstimatedFair Value |   |   | EstimatedFair Value |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |
| Cash paid                                       |   | $                        | 85,675  |   |                 |   | -      |                     |   | $ | 185 |   |   | $ | 85,860 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Issuance of common stock                        |   |                     | -       |   |                 |   | 3,707  |                     |   |   | 19,465 |   |   |   | 19,465 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Issuance of 5% subordinated notes               |   |                     | -       |   |                 |   | -      |                     |   |   | 13,442 |   |   |   | 13,442 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Total purchase consideration                    |   | $                        | 85,675  |   |                 |   | 3,707  |                     |   | $ | 33,092 |   |   | $ | 118,767 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Assets Acquired and Liabilities Assumed:        |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Assets                                          |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $                        | 1,854   |   |                 |   |   |                     |   | $ | 1,446 |   |   | $ | 3,300 |   |
| Accounts receivable, net                        |   |                     | 12,476  |   |                 |   |   |                     |   |   | 3,053 |   |   |   | 15,529 |   |
| Inventories                                     |   |                     | 26,030  |   |                 |   |   |                     |   |   | 4,390 |   |   |   | 30,420 |   |
| Prepaid and other current assets                |   |                     | 2,161   |   |                 |   |   |                     |   |   | 148 |   |   |   | 2,309 |   |
| Property and equipment                          |   |                     | 13,687  |   |                 |   |   |                     |   |   | 693 |   |   |   | 14,380 |   |
| Amortizable definite lived intangible assets    |   |                     | 12,733  |   |                 |   |   |                     |   |   | 5,483 |   |   |   | 18,216 |   |
| Identifiable indefinite lived intangible assets |   |                     | 19,600  |   |                 |   |   |                     |   |   | 13,050 |   |   |   | 32,650 |   |
| Goodwill                                        |   |                     | 22,320  |   |                 |   |   |                     |   |   | 18,281 |   |   |   | 40,601 |   |
| Deferred income taxes                           |   |                     | 1,809   |   |                 |   |   |                     |   |   | 65 |   |   |   | 1,874 |   |
| Other long-term assets                          |   |                     | 345     |   |                 |   |   |                     |   |   | 133 |   |   |   | 478 |   |
| Total Assets                                    |   |                     | 113,015 |   |                 |   |   |                     |   |   | 46,742 |   |   |   | 159,757 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Liabilities                                     |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities        |   |                     | 9,737   |   |                 |   |   |                     |   |   | 3,052 |   |   |   | 12,789 |   |
| Current portion of long-term debt               |   |                     | 200     |   |                 |   |   |                     |   |   | - |   |   |   | 200 |   |
| Long-term debt                                  |   |                     | 245     |   |                 |   |   |                     |   |   | - |   |   |   | 245 |   |
| Other long-term liabilities                     |   |                     | 1,030   |   |                 |   |   |                     |   |   | - |   |   |   | 1,030 |   |
| Deferred income taxes                           |   |                     | 16,128  |   |                 |   |   |                     |   |   | 10,598 |   |   |   | 26,726 |   |
| Total Liabilities                               |   |                     | 27,340  |   |                 |   |   |                     |   |   | 13,650 |   |   |   | 40,990 |   |
|                                            |   |                     |    |   |                 |   |   |                     |   |   |   |   |   |   |   |   |
| Fair value                                      |   | $                        | 85,675  |   |                 |   |   |                     |   | $ | 33,092 |   |   | $ | 118,767 |   |

----

|                                  |   | Year Ended December 31, |    |
|---------------------------------------|--------|-------------------------|---------|
|                                  |   | 2010                    |    |   | 2009 |   |
|                                  |   |                    |    |   |   |   |
| Sales                                 |   | $                       | 125,016 |   |   | $ | 113,499 |   |
| Net (loss)/income                     |   | $                       | 54,078  |   |   | $ | 64 |   |
| Net (loss)/income per share - basic   |   | $                       | 2.73    |   |   | $ | - |   |
| Net (loss)/income per share - diluted |   | $                       | 2.70    |   |   | $ | - |   |

|                       |   | December 31, |   |   | Predecessor Company |   |
|----------------------------|--------|--------------|--------|--------|---------------------|--------|
|                       |   | 2010         |   |   | 2009                |   |   | June 30, 2009 |   |
|                       |   |         |   |   |                |   |   |   |   |
| Finished goods             |   | $            | 29,192 |   |                | $      | - |   |   | $ | 20,404 |   |
| Work-in-process            |   |         | 801    |   |                |   | - |   |   |   | 465 |   |
| Raw materials and supplies |   |         | 4,949  |   |                |   | - |   |   |   | 4,711 |   |
|                       |   | $            | 34,942 |   |                | $      | - |   |   | $ | 25,580 |   |

----

|                           |   | December 31, |   |   | Predecessor Company |   |
|--------------------------------|--------|--------------|--------|--------|---------------------|--------|
|                           |   | 2010         |   |   | 2009                |   |   | June 30, 2009 |   |
|                           |   |         |   |   |                |   |   |   |   |
| Land                           |   | $            | 2,850  |   |                | $      | - |   |   | $ | 336 |   |
| Building and improvements      |   |         | 3,011  |   |                |   | 1,894 |   |   |   | 4,279 |   |
| Furniture and fixtures         |   |         | 2,043  |   |                |   | 453 |   |   |   | 2,177 |   |
| Computer hardware and software |   |         | 2,726  |   |                |   | 120 |   |   |   | 3,620 |   |
| Machinery and equipment        |   |         | 6,419  |   |                |   | 144 |   |   |   | 8,662 |   |
| Construction in progress       |   |         | 1,431  |   |                |   | - |   |   |   | 725 |   |
|                           |   |         |   |   |                |   |   |   |   |   |   |   |
|                           |   | $            | 18,480 |   |                | $      | 2,611 |   |   | $ | 19,799 |   |
|                           |   |         |   |   |                |   |   |   |   |   |   |   |
| Less accumulated depreciation  |   |         | (3,740 | )      |                |   | (1,915 | ) |   |   | (10,018 | ) |
|                           |   |         |   |   |                |   |   |   |   |   |   |   |
|                           |   | $            | 14,740 |   |                | $      | 696 |   |   | $ | 9,781 |   |

| Balance at December 31, 2009 |   | $      | -      |   |
|------------------------------|--------|--------|--------|--------|
|                         |   |   |   |   |
| Increase due to Acquisitions |   |   | 40,601 |   |
|                         |   |   |   |   |
| Balance at December 31, 2010 |   | $      | 40,601 |   |

----

|                                    |   | December 31, 2010 |   |
|-----------------------------------------|--------|-------------------|--------|
|                                    |   |              |   |   | Accumulated |   |   |   |   |   | Weighted Average |   |
|                                    |   | Gross             |   |   | Amortization |   |   | Net |   |   | Useful Life |   |
|                                    |   |              |   |   |   |   |   |   |   |   |   |   |
| Intangibles subject to amortization     |   |              |   |   |   |   |   |   |   |   |   |   |
| Customer relationships                  |   | $                 | 16,375 |   |   | $ | (637 | ) |   | $ | 15,738 |   |   |   | 15.1 years |   |
| Core technologies                       |   |              | 1,505  |   |   |   | (96 | ) |   |   | 1,409 |   |   |   | 9.3 years |   |
| Product technologies                    |   |              | 335    |   |   |   | (43 | ) |   |   | 292 |   |   |   | 4.6 years |   |
| Intangibles not subject to amortization |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tradenames and trademarks               |   |              | 32,650 |   |   |   | - |   |   |   | 32,650 |   |   |   | N/A |   |
|                                    |   | $                 | 50,865 |   |   | $ | (776 | ) |   | $ | 50,089 |   |   |   | 14.4 years |   |

----

|                                    |   | Predecessor Company |   |
|-----------------------------------------|--------|---------------------|--------|
|                                    |   | June 30, 2009       |   |
|                                    |   |                |   |   | Accumulated |   |   |   |   |   | Weighted Average |   |
|                                    |   | Gross               |   |   | Amortization |   |   | Net |   |   | Useful Life |   |
|                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Intangibles subject to amortization     |   |                |   |   |   |   |   |   |   |   |   |   |
| Product technologies                    |   | $                   | 68     |   |   | $ | (36 | ) |   | $ | 32 |   |   |   | 14.1 years |   |
| Intangibles not subject to amortization |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tradenames and trademarks               |   |                | 897    |   |   |   | - |   |   |   | 897 |   |   |   | N/A |   |
|                                    |   | $                   | 965    |   |   | $ | (36 | ) |   | $ | 929 |   |   |   | 14.1 years |   |

| 2011       |   | $      | 1,330  |   |
|------------|--------|--------|--------|--------|
| 2012       |   |   | 1,330  |   |
| 2013       |   |   | 1,330  |   |
| 2014       |   |   | 1,312  |   |
| 2015       |   |   | 1,275  |   |
| Thereafter |   |   | 10,862 |   |
|       |   | $      | 17,439 |   |

----

|                                      |   | December 31, |   |   | Predecessor Company |   |
|-------------------------------------------|--------|--------------|--------|--------|---------------------|--------|
|                                      |   | 2010         |   |   | 2009                |   |   | June 30, 2009 |   |
|                                      |   |         |   |   |                |   |   |   |   |
| Revolving credit facility (a)             |   | $            | 14,735 |   |                | $      | - |   |   | $ | 12,669 |   |
| 5% Senior Subordinated Notes due 2017 (b) |   |         | 14,018 |   |                |   | - |   |   |   | - |   |
| Trademark payable (c )                    |   |         | 706    |   |                |   | - |   |   |   | 797 |   |
| Revolving line of credit (d)              |   |         | -      |   |                |   | - |   |   |   | 2,763 |   |
| Note payable to government agency (e)     |   |         | -      |   |                |   | - |   |   |   | 345 |   |
| Capital leases (f)                        |   |         | 305    |   |                |   | - |   |   |   | 613 |   |
|                                      |   |         | 29,764 |   |                |   | - |   |   |   | 17,187 |   |
| Less current portion                      |   |         | (308   | )      |                |   |   |   |   |   | (2,992 | ) |
|                                      |   | $            | 29,456 |   |                | $      | - |   |   | $ | 14,195 |   |

|   | (a)  | In connection with the closing of the acquisition of BDEL, the Company and certain of its subsidiaries entered into a loan agreement effective May 28, 2010 with Zions First National Bank (“Lender”) (the “Loan Agreement”). |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)  | In connection with the Gregory Merger, $22,056 and $554 in subordinated notes were issued.  The notes have a seven year term, 5% stated interest rate payable quarterly, and are prepayable at any time.  Given the below market interest rate for comparably secured notes and the relative illiquidity of the notes, we have discounted the notes to $13,127 and $316, respectively, at date of acquisition.  We will accrete the discount on the notes to interest expense using the effective interest method over the term of the notes.  During the year ended December 31, 2010, $455 and $120, respectively, of the discounts were accreted and recorded as interest expense in the accompanying statements of operations. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)  | In June 2009, the Company entered into a contract to purchase the exclusive rights to the Black Diamond Equipment trademark for clothing.  The face amount of the non-interest bearing note was $1,000. The unamortized discount, based upon an imputed interest rate of 5%, was $103 at inception.  During the year ended December 31, 2010, $21 of the discount was accreted and recorded as interest expense in the accompanying statements of operations. |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Unsecured revolving line of credit with a bank with a maximum availability of $3,685, interest at 2.0%. This revolving line of credit was paid off on May 28, 2010. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)  | Note payable to a government agency which bears interest at 6.345%, requires monthly installments of $5,409, and secured by real property and certain equipment.  This note was guaranteed by an executive officer and was paid in full in December 2009. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f)  | Various capital leases payable to banks:  interest rates ranging from 4.63% to 7.75%; monthly installments ranging from $1 to $5; ending between January 2011 and April 2014; secured by certain equipment. |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011                                    |   | $      | 150    |   |
|-----------------------------------------|--------|--------|--------|--------|
| 2012                                    |   |   | 600    |   |
| 2013                                    |   |   | 14,735 |   |
| 2014                                    |   |   | -      |   |
| 2015                                    |   |   | -      |   |
| Thereafter                              |   |   | 22,610 |   |
| Total future long-term debt payments    |   |   | 38,095 |   |
| Less amount representing debt discounts |   |   | (8,636 | )      |
| Total carrying amount of long-term debt |   |   | 29,459 |   |
| Less current portion                    |   |   | (150   | )      |
| Long-term debt obligations              |   | $      | 29,309 |   |

| 2011                                        |   | $      | 174  |   |
|---------------------------------------------|--------|--------|------|--------|
| 2012                                        |   |   | 92   |   |
| 2013                                        |   |   | 47   |   |
| 2014                                        |   |   | 16   |   |
| 2015                                        |   |   | -    |   |
| Thereafter                                  |   |   | -    |   |
| Total Future minimum lease payments         |   |   | 329  |   |
| Less amount representing interest           |   |   | (24  | )      |
| Present value of net minimum lease payments |   |   | 305  |   |
| Less current portion                        |   |   | (158 | )      |
| Long-term capial lease obligations          |   | $      | 147  |   |

----

|                                      |   | Predecessor Company |
|-------------------------------------------|--------|---------------------|
|                                      |   | June 30, 2009       |
|                                      |   | Notional            |   | Latest |
|                                      |   | Amount              |   | Maturity |
|                                      |   |                |   |   |
| Foreign exchange contracts - Euros        |   |                | 2,500 |   | October-09 |
| Foreign exchange contracts - Swiss Francs |   |                | 750 |   | November-09 |
| Non-deliverable contracts - Chinese Yuans |   |                | 25,300 |   | February-10 |

----

|                                           |   | December 31, 2010   |
|------------------------------------------------|--------|---------------------|
|                                           |   | Notional            |   | Latest |
|                                           |   | Amount              |   | Maturity |
|                                           |   |                |   |   |
| Foreign exchange contracts - Norwegian Kroners |   |                | 465 |   | January-11 |
| Foreign exchange contracts - British Pounds    |   |                | 415 |   | May-11 |
| Foreign exchange contracts - Canadian Dollars  |   |                | 3,965 |   | June-11 |
| Foreign exchange contracts - Euros             |   |                | 10,072 |   | December-11 |
| Foreign exchange contracts - Swiss Francs      |   |                | 15,835 |   | February-12 |
|                                           |   |                |   |   |   |
|                                           |   |                |   |   |   |
|                                           |   | Predecessor Company |
|                                           |   | June 30, 2009       |
|                                           |   | Notional            |   | Latest |
|                                           |   | Amount              |   | Maturity |
|                                           |   |                |   |   |   |
| Foreign exchange contracts - Norwegian Kroners |   |                | 2,244 |   | December-09 |
| Foreign exchange contracts - Euros             |   |                | 8,736 |   | June-10 |
| Foreign exchange contracts - British Pounds    |   |                | 922 |   | June-10 |
| Foreign exchange contracts - Swiss Francs      |   |                | 7,300 |   | June-10 |

|                                           |   | December 31, 2010 |
|------------------------------------------------|--------|-------------------|
|                                           |   | Fair Value        |   | Classification |
|                                           |   |              |   |   |
| Derivative instruments in asset positions:     |   |              |   |   |
| Forward exchange contracts                     |   | $                 | 1,346 |   | Prepaid and other current assets |
| Derivative instruments in liability positions: |   |              |   |   |   |
| Forward exchange contracts                     |   |              | 1,387 |   | Accounts payable and accrued liabilities |

----

|                       |   | December 31, 2010   |   |
|----------------------------|--------|---------------------|--------|
|                       |   | Level 1             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |
| Assets                     |   |                |   |   |   |   |   |   |   |   |   |   |
| Forward exchange contracts |   | $                   | -      |   |   | $ | 1,346 |   |   | $ | - |   |   | $ | 1,346 |   |
|                       |   | $                   | -      |   |   | $ | 1,346 |   |   | $ | - |   |   | $ | 1,346 |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward exchange contracts |   | $                   | -      |   |   | $ | 1,387 |   |   | $ | - |   |   | $ | 1,387 |   |
|                       |   | $                   | -      |   |   | $ | 1,387 |   |   | $ | - |   |   | $ | 1,387 |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | December 31, 2009   |   |
|                       |   | Level 1             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                     |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash equivalents           |   | $                   | 58,363 |   |   | $ | - |   |   | $ | - |   |   | $ | 58,363 |   |
| Marketable securities      |   |                | 24,059 |   |   |   | - |   |   |   | - |   |   |   | 24,059 |   |
|                       |   | $                   | 82,422 |   |   | $ | - |   |   | $ | - |   |   | $ | 82,422 |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                |   |
|                       |   | Predecessor Company |   |
|                       |   | June 30, 2009       |   |
|                       |   | Level 1             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                     |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash equivalents           |   | $                   | 395    |   |   | $ | - |   |   | $ | - |   |   | $ | 395 |   |
| Forward exchange contracts |   |                | -      |   |   |   | 57 |   |   |   | - |   |   |   | 57 |   |
|                       |   | $                   | 395    |   |   | $ | 57 |   |   | $ | - |   |   | $ | 452 |   |
|                       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward interest rate swap |   | $                   | -      |   |   | $ | - |   |   | $ | 201 |   |   | $ | 201 |   |
| Forward exchange contracts |   |                | -      |   |   |   | 593 |   |   |   | - |   |   |   | 593 |   |
|                       |   | $                   | -      |   |   | $ | 593 |   |   | $ | 201 |   |   | $ | 794 |   |

----

|                                                           |   | Year Ended December 31, |   |
|----------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                           |   | 2010                                   |   |   | 2009 |   |   | 2008 |   |
|                                                           |   |                                   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - basic                    |   |                                   | 19,815 |   |   |   | 16,867 |   |   |   | 16,867 |   |
| Effect of dilutive stock options                               |   |                                   | 58     |   |   |   | - |   |   |   | - |   |
| Effect of dilutive restricted stock and restricted stock units |   |                                   | 149    |   |   |   | - |   |   |   | - |   |
| Weighted average shares outstanding - diluted                  |   |                                   | 20,022 |   |   |   | 16,867 |   |   |   | 16,867 |   |
|                                                           |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                                     |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   | $                                      | 2.58   |   |   | $ | (0.29 | ) |   | $ | (0.14 | ) |
| Diluted                                                        |   |                                   | 2.56   |   |   |   | (0.29 | ) |   |   | (0.14 | ) |

----

| Options Granted During 2010 |   |      |   |      |   |   |   |          |
|-----------------------------|--------|-----------|--------|-----------|--------|--------|--------|---------------|
|                        |   |      |   |      |   |   |   |          |
| Number of Options           |   | 60,000    |   | 40,000    |   | 40,000 |   | 500,000       |
| Option Vesting Period       |   | Immediate |   | Immediate |   | 1 Year |   | 4.5 Years     |
| Grant Price                 |   | $6.85     |   | $6.85     |   | $6.77  |   | $6.25 - $6.85 |
| Dividend Yield              |   | 0.00%     |   | 0.00%     |   | 0.00%  |   | 0.00%         |
| Expected Volatility (a)     |   | 54.60%    |   | 71.70%    |   | 53.00% |   | 54.1% - 55.1% |
| Risk-free Interest Rate     |   | 2.10%     |   | 0.34%     |   | 1.58%  |   | 1.76% - 2.75% |
| Expected Life (Years)       |   | 5         |   | 1.29      |   | 5.31   |   | 6.45          |
| Weighted Average Fair Value |   | $3.33     |   | $2.18     |   | $3.26  |   | $3.39 - $3.83 |
| Aggregate Fair Value        |   | $200      |   | $87       |   | $130   |   | $1,898        |

----

| Restricted Stock Granted on May 28, 2010 |   |
|------------------------------------------|--------|
|                                     |   |   |   |   |   |   |
| Number issued                            |   |   | 250,000 |   |   |   | 250,000 |   |
| Vesting Period                      |   | $ | 10.00 Stock Price target |   |   | $  | 12.00 Stock Price target |   |
| Grant Price                              |   | $ | 6.85 |   |   | $ | 6.85 |   |
| Dividend Yield                           |   |   | 0.00 | % |   |   | 0.00 | % |
| Expected Volatility (a)                  |   |   | 56.60 | % |   |   | 56.60 | % |
| Risk-free Interest Rate                  |   |   | 2.88 | % |   |   | 2.88 | % |
| Expected Life (Years)                    |   |   | 1.12 |   |   |   | 1.62 |   |
| Weighted Average Fair Value              |   | $ | 6.13 |   |   | $ | 5.83 |   |
| Aggregate Fair Value                     |   | $ | 1,533 |   |   | $ | 1,457 |   |

|                           |   | Year Ended December 31, |   |
|------------------------------------------|--------|----------------------------------------|--------|
|                                |   | 2010                                   |   |   | 2009 |   |   | 2008 |   |
|                                |   |                                   |   |   |   |   |   |   |   |
| Restricted stock                         |   | $                                      | 2,292  |   |   | $ | 268 |   |   | $ | 268 |   |
| Restricted stock units                   |   |                                   | 683    |   |   |   | - |   |   |   | - |   |
| Stock options                            |   |                                   | 1,989  |   |   |   | 222 |   |   |   | 409 |   |
| Stock subscription expense (see Note 14) |   |                                   | 145    |   |   |   | - |   |   |   | - |   |
| Total                                    |   | $                                      | 5,109  |   |   | $ | 490 |   |   | $ | 677 |   |

|                  |   | Predecessor Company                 |   |
|-----------------------|--------|------------------------------------------|--------|
|                  |   | Period from July 1,       |   |   | Year Ended June 30, |   |
|                  |   | 2009 to May 28, 2010 |   |   | 2009 |   |   | 2008 |   |
|                  |   |                                     |   |   |   |   |   |   |   |
| Deferred compensation |   | $                                        | 1,172  |   |   | $ | 72 |   |   | $ | 93 |   |
| Stock options         |   |                                     | 132    |   |   |   | 16 |   |   |   | 18 |   |
| Total                 |   | $                                        | 1,304  |   |   | $ | 88 |   |   | $ | 111 |   |

----

|                                     |   | Options |      |   | WeightedAverageExercise Price |   |   | RestrictedStock |   |   | RestrictedStock Units |   |
|------------------------------------------|--------|---------|-----------|--------|------------------------------------|--------|--------|-----------------|--------|--------|----------------------------|--------|
| Outstanding at December 31, 2009         |   |    | 1,968,750 |   |                               | $      | 7.01   |            |   |   | 500,000                    |   |   |   | 0 |   |
|                                     |   |    |      |   |                               |   |   |            |   |   |                       |   |   |   |   |   |
| Granted                                  |   |    | 640,000   |   |                               |   | 6.82   |            |   |   | 500,000                    |   |   |   | 92,401 |   |
| Exercised                                |   |    | (181,250  | )      |                               |   | 5.55   |            |   |   | (500,000                   | )      |   |   | - |   |
| Expired                                  |   |    | -         |   |                               |   |   |            |   |   | -                          |   |   |   | - |   |
| Forfeited                                |   |    | -         |   |                               |   |   |            |   |   | -                          |   |   |   | - |   |
| Outstanding at December 31, 2010         |   |    | 2,427,500 |   |                               | $      | 7.07   |            |   |   | 500,000                    |   |   |   | 92,401 |   |
|                                     |   |    |      |   |                               |   |   |            |   |   |                       |   |   |   |   |   |
| Options exercisable at December 31, 2010 |   |    | 1,897,500 |   |                               | $      | 7.15   |            |   |   |                       |   |   |   |   |   |

| Exercise Price Range |          |   | Outstanding |   |      | Exercisable |   |   | RemainingLife In Years |   |   | WeightedAverageExercise Price |   |
|--------------------------------|---------------|--------|-------------|--------|-----------|-------------|--------|--------|----------------------------------|--------|--------|------------------------------------|--------|
| $                              | 3.85 - $5.33  |   |        |   | 162,500   |        |   |   | 162,500                          |   |   |                               | 3.2    |   |   | $ | 4.39 |   |
| $                              | 5.34 - $10.00 |   |        |   | 2,265,000 |        |   |   | 1,735,000                        |   |   |                               | 4.0    |   |   | $ | 7.40 |   |
|                           |          |   |        |   | 2,427,500 |        |   |   | 1,897,500                        |   |   |                               | 3.6    |   |   | $ | 7.15 |   |

----

| 2011       |   | $  | 1,186 |   |
|------------|--------|---------|-------|--------|
| 2012       |   |    | 1,017 |   |
| 2013       |   |    | 770   |   |
| 2014       |   |    | 320   |   |
| 2015       |   |    | 322   |   |
| Thereafter |   |    | 711   |   |
|       |   | $       | 4,326 |   |

|                   |   | Year Ended December 31, |    |
|------------------------|--------|-------------------------|---------|
|                   |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                   |   |                    |    |   |   |   |   |   |   |
| U.S. operations        |   | $                       | (21,430 | ) |   | $ | (4,851 | ) |   | $ | (2,402 | ) |
| Foreign operations     |   |                    | 2,391   |   |   |   | - |   |   |   | - |   |
| Loss before income tax |   | $                       | (19,039 | ) |   | $ | (4,851 | ) |   | $ | (2,402 | ) |

|                     |   | Predecessor Company |   |
|--------------------------|--------|--------------------------|--------|
|                     |   | July 1, 2009   |   |   | Year Ended June 30, |   |
|                     |   | to May 28,2010 |   |   | 2009 |   |   | 2008 |   |
|                     |   |                     |   |   |   |   |   |   |   |
| U.S. operations          |   | $                        | 7,530  |   |   | $ | 4,314 |   |   | $ | 2,219 |   |
| Foreign operations       |   |                     | 1,537  |   |   |   | (772 | )  |   |   | 710 |   |
| Income before income tax |   | $                        | 9,067  |   |   | $ | 3,542 |   |   | $ | 2,929 |   |

----

|                                                                 |   | Year Ended December 31, |    |
|----------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                 |   | 2010                                   |    |   | 2009 |   |   | 2008 |   |
|                                                                 |   |                                   |    |   |   |   |   |   |   |
| Current:                                                             |   |                                   |    |   |   |   |   |   |   |
| Federal                                                              |   | $                                      | -       |   |   | $ | - |   |   | $ | - |   |
| State and local                                                      |   |                                   | -       |   |   |   | - |   |   |   | - |   |
| Foreign                                                              |   |                                   | -       |   |   |   | - |   |   |   | - |   |
|                                                                 |   |                                   | -       |   |   |   | - |   |   |   | - |   |
| Deferred:                                                            |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Federal                                                              |   |                                   | (4,344  | ) |   |   | (900 | ) |   |   | (273 | ) |
| State and local                                                      |   |                                   | (885    | ) |   |   | (299 | ) |   |   | 17 |   |
| Foreign                                                              |   |                                   | -       |   |   |   | - |   |   |   | - |   |
|                                                                 |   |                                   | (5,229  | ) |   |   | (1,199 | ) |   |   | (256 | ) |
| Increase (decrease) in valuation allowance for deferred income taxes |   |                                   | (65,000 | ) |   |   | 1,193 |   |   |   | 256 |   |
|                                                                 |   |                                   | (70,229 | ) |   |   | (6 | ) |   |   | - |   |
|                                                                 |   |                                   |    |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                         |   | $                                      | (70,229 | ) |   | $ | (6 | ) |   | $ | - |   |

|               |   | Predecessor Company |   |
|--------------------|--------|--------------------------|--------|
|               |   | July 1, 2009   |   |   | Year Ended June 30, |   |
|               |   | to May 28,2010 |   |   | 2009 |   |   | 2008 |   |
|               |   |                     |   |   |   |   |   |   |   |
| Current:           |   |                     |   |   |   |   |   |   |   |
| Federal            |   | $                        | 1,621  |   |   | $ | 758 |   |   | $ | 1,008 |   |
| State and local    |   |                     | 227    |   |   |   | 106 |   |   |   | 142 |   |
| Foreign            |   |                     | 161    |   |   |   | - |   |   |   | 182 |   |
|               |   |                     | 2,009  |   |   |   | 864 |   |   |   | 1,332 |   |
| Deferred:          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Federal            |   |                     | 716    |   |   |   | 345 |   |   |   | (403 | ) |
| State and local    |   |                     | 100    |   |   |   | 48 |   |   |   | (57 | ) |
| Foreign            |   |                     | -      |   |   |   | - |   |   |   | - |   |
|               |   |                     | 816    |   |   |   | 393 |   |   |   | (460 | ) |
|               |   |                     |   |   |   |   |   |   |   |   |   |   |
| Income tax expense |   | $                        | 2,825  |   |   | $ | 1,257 |   |   | $ | 872 |   |

----

|                                                |   | Year Ended December 31, |   |
|-----------------------------------------------------|--------|----------------------------------------|--------|
|                                                |   | 2010                                   |   |   | 2009 |   |   | 2008 |   |
|                                                |   |                                   |   |   |   |   |   |   |   |
| Computed "expected" income tax expense (benefit)    |   |                                   | (34.0  | )% |   |   | (34.0 | )% |   |   | (34.0 | )% |
| Increase (decrease) in income taxes resulting from: |   |                                   |   |   |   |   |   |   |   |   |   |   |
| State income taxes, net of federal income taxes     |   |                                   | (3.3   | ) |   |   | (4.9 | ) |   |   | (1.6 | ) |
| NOL adjustments                                     |   |                                   | -      |   |   |   | 13.4 |   |   |   | 2.1 |   |
| Capital loss carryforward adjustment                |   |                                   | -      |   |   |   | - |   |   |   | 22.7 |   |
| Transactions costs                                  |   |                                   | 8.4    |   |   |   | - |   |   |   | - |   |
| Other                                               |   |                                   | 1.4    |   |   |   | 1.0 |   |   |   | 0.2 |   |
| Increase (decrease) in valuation allowance          |   |                                   | (341.4 | ) |   |   | 24.5 |   |   |   | 10.6 |   |
| Income tax expense (benefit)                        |   |                                   | (368.9 | )% |   |   | - | % |   |   | - | % |

|                                                                                            |   | December 31, |    |
|-------------------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                            |   | 2010              |    |   | 2009 |   |
|                                                                                            |   |              |    |   |   |   |
| Deferred tax assets:                                                                            |   |              |    |   |   |   |
| Net operating loss, capital loss amount and research & experimentation credit carryforwards |   | $                 | 84,542  |   |   | $ | 85,724 |   |
| Charitable contribution carryforward                                                            |   |              | -       |   |   |   | 4 |   |
| Depreciation                                                                                    |   |              | -       |   |   |   | 73 |   |
| Non-cash compensation                                                                           |   |              | 1,972   |   |   |   | 1,179 |   |
| Accrued liabilities                                                                             |   |              | 1,640   |   |   |   | 162 |   |
| Reserves and other                                                                              |   |              | 2,370   |   |   |   | 1,728 |   |
| Intangibles                                                                                     |   |              | 507     |   |   |   | - |   |
|                                                                                            |   |              | 91,031  |   |   |   | 88,870 |   |
| Valuation allowance                                                                             |   |              | (21,504 | ) |   |   | (88,868 | ) |
| Net deferred tax assets                                                                         |   |              | 69,527  |   |   |   | 2 |   |
| Deferred tax liabilities:                                                                       |   |              |    |   |   |   |   |   |
| Depreciation                                                                                    |   |              | (1,948  | ) |   |   | - |   |
| Discount on notes                                                                               |   |              | (3,161  | ) |   |   | - |   |
| Intangibles                                                                                     |   |              | (18,683 | ) |   |   | - |   |
| Other                                                                                           |   |              | (455    | ) |   |   |  - |   |
| Unrealized gain on marketable securities                                                        |   |              | -       |   |   |   | (2 | ) |
|                                                                                            |   |              | (24,247 | ) |   |   | (2 | ) |
|                                                                                            |   |              |    |   |   |   |   |   |
| Total                                                                                           |   | $                 | 45,280  |   |   | $ | - |   |

----

|                      |   | Predecessor Company |   |
|---------------------------|--------|--------------------------|--------|
|                      |   | June 30, 2009  |   |
|                      |   |                     |   |
| Deferred tax assets:      |   |                     |   |
| Current                   |   | $                        | 2,124  |   |
| Noncurrent                |   |                     | 724    |   |
|                      |   |                     | 2,848  |   |
| Valuation allowance       |   |                     | -      |   |
| Net deferred tax assets   |   |                     | 2,848  |   |
| Deferred tax liabilities: |   |                     |   |   |
| Current                   |   |                     | (314   | ) |
| Noncurrent                |   |                     | (1,325 | ) |
|                      |   |                     | (1,639 | ) |
|                      |   |                     |   |   |
| Total                     |   | $                        | 1,209  |   |

----

|   |   | Balance atBeginning ofPeriod |   |   | Charged (Credited)to Costs andExpenses |   |    | Deductions (a) |   |   | Balance at End ofPeriod |   |
|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------------|--------|---------|---------------------|--------|--------|----------------------------------------|--------|
|   |   |                                   |   |   |                                                  |   |    |                |   |   |                                   |   |
| 2008   |   | $                                      | 87,416 |   |                                                  | $      | 256     |                |   | $      | (152                                   | )      |   | $ | 87,520 |   |
| 2009   |   |                                   | 87,520 |   |                                                  |   | 1,193   |                |   |   | 155                                    |   |   |   | 88,868 |   |
| 2010   |   | $                                      | 88,868 |   |                                                  | $      | (67,364 | )                   |   | $      | -                                      |   |   | $ | 21,504 |   |

| ExpirationDatesDecember 31, |   | NetOperatingLossAmount |    |
|----------------------------------|--------|------------------------|---------|
| 2011                             |   | $                      | 7,520   |   |
| 2012                             |   |                   | 5,157   |   |
| 2020                             |   |                   | 29,533  |   |
| 2021                             |   |                   | 50,430  |   |
| 2022                             |   |                   | 115,000 |   |
| 2023                             |   |                   | 5,712   |   |
| 2024                             |   |                   | 3,566   |   |
| 2025                             |   |                   | 1,707   |   |
| 2026                             |   |                   | 476     |   |
| 2028                             |   |                   | 1,360   |   |
| 2029                             |   |                   | 4,074   |   |
| 2030                             |   |                   | 2,302   |   |
| Total                            |   |                   | 226,837 |   |
| Section 382 Limitation           |   |                   | (1,051  | ) |
| After Limitations                |   | $                      | 225,786 |   |

----

----

----

----

|                              |   | Year Ended December 31, 2010                  |   |
|-----------------------------------|--------|-------------------------------------------------------------------|--------|
|                              |   | FirstQuarter                                                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |
|                              |   | (in thousands, except per share amounts) |   |
|                              |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                                                                 | -      |   |   | $ | 7,744 |   |   | $ | 33,946 |   |   | $ | 34,222 |   |
| Gross profit                      |   |                                                              | -      |   |   |   | 1,808 |   |   |   | 9,535 |   |   |   | 12,389 |   |
| Operating (loss) income           |   |                                                              | (2,377 | ) |   |   | (10,933 | ) |   |   | (2,402 | ) |   |   | (655 | ) |
| Net income (loss)                 |   |                                                              | (2,355 | ) |   |   | 57,293 |   |   |   | (3,294 | ) |   |   | (454 | ) |
|                              |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:        |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share   |   | $                                                                 | (0.14  | ) |   | $ | 3.08 |   |   | $ | (0.15 | ) |   | $ | (0.02 | ) |
| Diluted earnings (loss) per share |   |                                                              | (0.14  | ) |   |   | 3.03 |   |   |   | (0.15 | ) |   |   | (0.02 | ) |

|                              |   | Year Ended December 31, 2009                  |   |
|-----------------------------------|--------|-------------------------------------------------------------------|--------|
|                              |   | FirstQuarter                                                      |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |
|                              |   | (in thousands, except per share amounts) |   |
|                              |   |                                                              |   |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                                                                 | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Gross profit                      |   |                                                              | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating (loss) income           |   |                                                              | (1,012 | ) |   |   | (1,118 | ) |   |   | (906 | ) |   |   | (2,516 | ) |
| Net income (loss)                 |   |                                                              | (601   | ) |   |   | (921 | ) |   |   | (850 | ) |   |   | (2,473 | ) |
|                              |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:        |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share   |   | $                                                                 | (0.04  | ) |   | $ | (0.05 | ) |   | $ | (0.05 | ) |   | $ | (0.15 | ) |
| Diluted earnings (loss) per share |   |                                                              | (0.04  | ) |   |   | (0.05 | ) |   |   | (0.05 | ) |   |   | (0.15 | ) |

|                    |   | Period from July 1, 2009 to May 28, 2010 - PredecessorCompany (Note 1) |   |
|-------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|               |   | FirstQuarter                                                                                                                       |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | TwoMonthsEnded May28, 2010 |   |
|                    |   | (in thousands)                                                                                                                |   |
|                    |   |                                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net sales               |   | $                                                                                                                                  | 25,555 |   |   | $ | 26,583 |   |   | $ | 23,657 |   |   | $ | 11,286 |   |
| Gross profit            |   |                                                                                                                               | 9,958  |   |   |   | 10,184 |   |   |   | 9,120 |   |   |   | 4,658 |   |
| Operating (loss) income |   |                                                                                                                               | 3,419  |   |   |   | 2,649 |   |   |   | 1,805 |   |   |   | (165 | ) |
| Net income (loss)       |   |                                                                                                                               | 2,761  |   |   |   | 1,166 |   |   |   | 1,400 |   |   |   | 915 |   |

|                    |   | Year Ended June 30, 2009 - Predecessor Company (Note 1) |   |
|-------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
|                    |   | FirstQuarter                                                                                         |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |
|                    |   | (in thousands)                                                                                  |   |
|                    |   |                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Net sales               |   | $                                                                                                    | 22,700 |   |   | $ | 25,249 |   |   | $ | 20,788 |   |   | $ | 15,219 |   |
| Gross profit            |   |                                                                                                 | 8,647  |   |   |   | 9,040 |   |   |   | 7,653 |   |   |   | 5,223 |   |
| Operating (loss) income |   |                                                                                                 | 2,056  |   |   |   | 2,146 |   |   |   | 1,028 |   |   |   | (602 | ) |
| Net income (loss)       |   |                                                                                                 | 866    |   |   |   | 1,403 |   |   |   | 475 |   |   |   | (459 | ) |

----

|   | · | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the   Company's assets that could have a material effect on the financial statements. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                   |   | Page |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------|
| Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements                                                                                                                           |   | 34   |
| Independent Auditor’s Report                                                                                                                                                                                     |   | 35   |
| Independent Auditor’s Report                                                                                                                                                                                     |   | 36   |
| Consolidated Balance Sheets - December 31, 2010 and 2009 and June 30, 2009 (Predecessor)                                                                                                                               |   | 37   |
| Consolidated Statements of Operations - Years Ended December 31, 2010, 2009 and 2008 and Period From July 1, 2009 to May 28, 2010, and Years Ended June 30, 2009 and 2008 (Predecessor)                                |   | 38   |
| Consolidated Statements of Cash Flows -Years Ended December 31, 2009, 2008 and 2007 and Period From July 1, 2009 to May 28, 2010, and Years Ended June 30, 2009 and 2008 (Predecessor)                                 |   | 39   |
| Consolidated Statements of Stockholders' Equity and Comprehensive Loss -Years Ended December 31, 2010, 2009 and 2008 and Period From July1, 2009 to May 28, 2010, and Years ended June 30, 2009 and 2008 (Predecessor) |   | 41   |
| Notes to Consolidated Financial Statements                                                                                                                                                                             |   | 43   |

| ExhibitNumber |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.1           |   | Agreement and Plan of Merger dated as of May 7, 2010 by and among Clarus Corporation, Everest/Sapphire Acquisition, LLC, Sapphire Merger Corp., Black Diamond Equipment, Ltd. and Ed McCall, as Stockholders’ Representative (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference).                                              |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.2           |   | Agreement and Plan of Merger dated as of May 7, 2010 by and among Clarus Corporation, Everest/Sapphire Acquisition LLC, Everest Merger I Corp., Everest Merger II, LLC, Gregory Mountain Products, Inc. and Kanders GMP Holdings, LLC, Schiller Gregory Investment Company, LLC (filed as Exhibit 2.2 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference). |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.1           |   | Amended and Restated Certificate of Incorporation of the Company (filed as Appendix C to the Company’s Definitive Proxy Statement, filed with the Commission on November 6, 2002 and incorporated herein by reference).                                                                                                                                                                                                             |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.2           |   | Certificate of Amendment to Amended and Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 of the Company’s Current Report on Form 8-K, filed with the Commission on July 31, 2003 and incorporated herein by reference).                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.3           |   | Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Commission on January 24, 2011 and incorporated herein by reference).                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.4           |   | Amended and Restated Bylaws of the Company (filed as Appendix D to the Company’s Definitive Proxy Statement, filed with the Commission on November 6, 2002 and incorporated herein by reference).                                                                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.5           |   | Amendment No. 1 to the Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.4 of the Company’s Annual Report on Form 10-K, filed with the Commission on March 31, 2003).                                                                                                                                                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.6           |   | Amendment No. 2 to the Amended and Restated By-Laws of the Company (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                              |

----

| ExhibitNumber |   | Exhibit                                                                                                                                                                                                                                                                                           |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                              |
| 3.7           |   | Amendment No. 3 to the Amended and Restated By-Laws of the Company (filed as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on August 9, 2010 and incorporated herein by reference).                                                                 |
|          |   |                                                                                                                                                                                                                                                                                              |
| 3.8           |   | Form of Certificate of Designation of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Commission on February 13, 2008 and incorporated herein by reference).                                                |
|          |   |                                                                                                                                                                                                                                                                                              |
| 4.1           |   | See Exhibits 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7 and 3.8 for provisions of the Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws of the Company defining rights of the holders of Common Stock of the Company.                                                      |
|          |   |                                                                                                                                                                                                                                                                                              |
| 4.2           |   | Company’s Specimen Common Stock Certificate. **                                                                                                                                                                                                                                             |
|          |   |                                                                                                                                                                                                                                                                                              |
| 4.3           |   | Rights Agreement, dated as of February 12, 2008, by and between Clarus Corporation and American Stock Transfer & Trust Company (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K, filed with the Commission on February 13, 2008 and incorporated herein by reference). |
|          |   |                                                                                                                                                                                                                                                                                              |
| 4.4           |   | Form of Rights Certificate (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the Commission on February 13, 2008 and incorporated herein by reference).                                                                                                         |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.1          |   | Form of Indemnification Agreement for Directors and Executive Officers of the Company (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Commission on December 23, 2002 and incorporated herein by reference).                                             |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.2          |   | Employment Agreement, dated as of May 28, 2010, between the Company and Warren B. Kanders (filed as Exhibit 10.13 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).*                                            |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.3          |   | Employment Agreement, dated as of May 28, 2010, between the Company and Robert R. Schiller (filed as Exhibit 10.14 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).*                                           |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.4          |   | Employment Agreement between the Company and Peter Metcalf, dated as of May 7, 2010 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference).*                                                   |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.5          |   | Amendment No. 1 to Employment Agreement, dated May 28, 2010, by and between the Company and Peter Metcalf (filed as Exhibit 10.16 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).*                            |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.6          |   | Amended and Restated Stock Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on August 14, 2000 and incorporated herein by reference).*                                                                                       |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.7          |   | Form of Nonqualified Stock Option Agreement (filed as Exhibit 10.5 to the Company’s Quarterly Report Form 10-Q, filed with the Commission on August 14, 2000 and incorporated herein by reference).*                                                                                        |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.8          |   | Company’s 2005 Stock Incentive Plan (filed as Appendix A of the Company’s Definitive Proxy Statement, filed with the Commission on May 2, 2005 and incorporated herein by reference).*                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.9          |   | Amendment No. 1 to the Company’s 2005 Stock Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Commission on September 7, 2010 and incorporated herein by reference).*                                                                 |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.10         |   | Form of Stock Option Agreement for the Clarus Corporation 2005 Stock Incentive Plan (filed as Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q, filed with the Commission on November 3, 2005 and incorporated herein by reference).*                                            |
|          |   |                                                                                                                                                                                                                                                                                              |
| 10.11         |   | Amendment to the Form of Stock Option Agreement for the Clarus Corporation 2005 Stock Incentive Plan (filed as Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed with the Commission on January 6, 2006 and incorporated herein by reference).*                               |

----

| ExhibitNumber |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.12         |   | Stock Option Agreement, dated December 23, 2002, between the Company and Warren B. Kanders (filed as Exhibit 4.6 of the Company’s Registration Statement Form S-8, filed with the Commission on August 19, 2005 and incorporated herein by reference).*                                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.13         |   | Restricted Stock Agreement, dated as of April 11, 2003, between the Company and Warren B. Kanders (filed as Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on May 15, 2003 and incorporated herein by reference.*                                                                                                                                                                                                 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.14         |   | Restricted Stock Award Agreement, dated May 28, 2010, by and between the Company and Warren B. Kanders (filed as Exhibit 10.19 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).*                                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.15         |   | Lease, dated as of September 23, 2003, between Reckson Operating Partnership, L.P., the Company and Kanders & Company, Inc. (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on November 12, 2003 and incorporated herein by reference).                                                                                                                                                              |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.16         |   | Transportation Services Agreement, dated as of December 18, 2003, between Kanders Aviation, LLC and the Company (filed as Exhibit 10.23 to the Company’s Annual Report on Form 10-K, filed with the Commission on March 11, 2004 and incorporated herein by reference).                                                                                                                                                                                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.17         |   | Transition Agreement, dated as of May 28, 2010, between the Company and Kanders & Company, Inc. (filed as Exhibit 10.20 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.18         |   | Amendment No. 1 to Transition Agreement, dated September 1, 2010, by and between the Company and Kanders & Company, Inc. (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the Commission on September 7, 2010 and incorporated herein by reference).                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.19         |   | Loan Agreement, effective as of May 28, 2010, by and among Zions First National Bank, as Lender and Black Diamond Equipment, Ltd., Black Diamond Retail, Inc., Clarus Corporation, Everest/Sapphire Acquisition, LLC as Co-Borrowers (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.20         |   | Promissory Note Revolving Line of Credit dated as of May 28, 2010 by and among Zions First National Bank and Black Diamond Equipment, Ltd., Black Diamond Retail, Inc., Clarus Corporation, Everest/Sapphire Acquisition, LLC (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.21         |   | Assumption Agreement, dated as of May 28, 2010, by and between Gregory Mountain Products, LLC, as Additional Borrower and Zions First National Bank, as Lender (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                      |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.22         |   | First Substitute Promissory Note Revolving Line of Credit, dated May 28, 2010, by and among Zions First National Bank, as Lender, and Black Diamond Equipment, Ltd., Black Diamond Retail, Inc., Clarus Corporation, Everest/Sapphire Acquisition, LLC, Gregory Mountain Products, LLC as Borrowers (filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference). |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.23         |   | Subordination Agreement, dated May 28, 2010, by and among Zions First National Bank, as Lender, Black Diamond Equipment, Ltd., Black Diamond Retail, Inc., Clarus Corporation, Everest/Sapphire Acquisition, LLC and Gregory Mountain Products, LLC, and Kanders GMP Holdings, LLC (filed as Exhibit 10.5 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                  |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.24         |   | Subordination Agreement, dated May 28, 2010, by and among Zions First National Bank, as Lender, Black Diamond Equipment, Ltd., Black Diamond Retail, Inc., Clarus Corporation, Everest/Sapphire Acquisition, LLC and Gregory Mountain Products, LLC, and Schiller Gregory Investment Company, LLC (filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).   |

----

| ExhibitNumber |   | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.25         |   | Form of 5% Unsecured Subordinated Note due May 28, 2017 (filed as Exhibit 10.9 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.26         |   | Form of Lockup Agreement (filed as Exhibit 10.11 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                                                                                 |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.27         |   | Form of Restrictive Covenant Agreement (filed as Exhibit 10.12 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.28         |   | Escrow Agreement, dated as of May 28, 2010, by and among Everest/Sapphire Acquisition, LLC, as Purchaser, Ed McCall, as Stockholders’ Representative, Black Diamond Equipment, Ltd. and U.S. Bank National Association, as Escrow Agent (filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                             |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.29         |   | Registration Rights Agreement, dated as of May 28, 2010, among Clarus Corporation, and each of the Investors on the signature page thereto (filed as Exhibit 10.8 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.30         |   | Registration Rights Agreement, dated as of May 28, 2010, by and among Clarus Corporation, and each of Kanders GMP Holdings, LLC and Schiller Gregory Investment Company, LLC, as the Investors (filed as Exhibit 10.10 to the Company’s Current Report on Form 8-K, filed with the Commission on June 4, 2010 and incorporated herein by reference).                                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.31         |   | Company Stockholders’ Support Agreement, dated as of May 8, 2010, by and among each of Peter Metcalf, Philip Duff and Robert Peay, and Everest/Sapphire Acquisition, LLC (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference).                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.32         |   | Company Stockholders’ Support Agreement, dated as of May 8, 2010, by and among Christian Jaeggi, Mark Ritchie, Chris Grover, Scott Carlson, Ed McCall and Scott Bowers, Paul Bancroft, Maria Cranor, Michael Metcalf, and Phillip Boone, Jr.; and Everest/Sapphire Acquisition, LLC (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference). |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.33         |   | Stockholders Support Agreement, dated as of May 8, 2010, by and among Lost Arrow Ltd., Naoe Sakashita and Everest/Sapphire Acquisition LLC (filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed with the Commission on May 10, 2010 and incorporated herein by reference).                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  23.1    |   | Consent of Independent Registered Public Accounting Firm.**                                                                                                                                                                                                                                                                                                                                                                                          |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  23.2    |   | Independent Auditor’s Consent.**                                                                                                                                                                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  23.3    |   | Independent Auditor’s Consent.**                                                                                                                                                                                                                                                                                                                                                                                                               |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.1          |   | Certification of Principal Executive Officer, as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**                                                                                                                                                                                                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2          |   | Certification of Principal Financial Officer, as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**                                                                                                                                                                                                                                                           |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.1          |   | Certification of Principal Executive Officer, pursuant to 18. U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley of 2002.**                                                                                                                                                                                                                                                                                                |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.2          |   | Certification of Principal Financial Officer, pursuant to 18. U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley of 2002.**                                                                                                                                                                                                                                                                                                |

| *      |   | Management contract or compensatory plan or arrangement. |
|--------|--------|----------------------------------------------------------|
|   |   |                                                     |
| **     |   | Filed herewith                                           |

----

| BLACK DIAMOND, INC.             |
|---------------------------------|
|                            |   |   |
| Date:  March 15, 2011 |   |   |
|                            |   | By:/s/ Robert Peay |
|                            |   | Robert Peay, |
|                            |   | Chief Financial Officer |
|                            |   | (Principal Financial Officer and Principal Accounting Officer) |

| Name                   |   | Title                                                                                  |
|------------------------|--------|----------------------------------------------------------------------------------------|
|                   |   |                                                                                   |
| /s/ Warren B. Kanders  |   | Executive Chairman and Director                                                        |
| Warren B. Kanders      |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Robert R. Schiller |   | Executive Vice Chairman and Director                                                   |
| Robert R. Schiller     |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Peter Metcalf      |   | Chief Executive Officer, President and Director (Principal Executive Officer)          |
| Peter Metcalf          |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Robert Peay        |   | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
| Robert Peay            |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Donald L. House    |   | Director                                                                               |
| Donald L. House        |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Nicholas Sokolow   |   | Director                                                                               |
| Nicholas Sokolow       |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Michael A. Henning |   | Director                                                                               |
| Michael A. Henning     |   |                                                                                   |
|                   |   |                                                                                   |
| /s/ Phillip N. Duff    |   | Director                                                                          |
| Phillip N. Duff        |   |                                                                                   |

----

| ExhibitNumber |   | Exhibit                                                                                                                                                                                    |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                       |
| 4.2           |   | Company’s Specimen Common Stock Certificate.                                                                                                                                         |
|          |   |                                                                                                                                                                                       |
| 23.1          |   | Consent of Independent Registered Public Accounting Firm.                                                                                                                                  |
|          |   |                                                                                                                                                                                       |
| 23.2          |   | Independent Auditor’s Consent.                                                                                                                                                       |
|          |   |                                                                                                                                                                                       |
| 23.3          |   | Independent Auditor’s Consent.                                                                                                                                                       |
|          |   |                                                                                                                                                                                       |
| 31.1          |   | Certification of Principal Executive Officer, as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.** |
|          |   |                                                                                                                                                                                       |
| 31.2          |   | Certification of Principal Financial Officer, as required by Rule 13a-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.** |
|          |   |                                                                                                                                                                                       |
| 32.1          |   | Certification of Principal Executive Officer, pursuant to 18. U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**                                  |
|          |   |                                                                                                                                                                                       |
| 32.2          |   | Certification of Principal Financial Officer, pursuant to 18. U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**                                  |

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