Document:

Exhibit 10.3

 

SECOND AMENDED AND RESTATED LOAN AGREEMENT

 

Between

 

ZIONS FIRST NATIONAL BANK

Lender

 

and

 

BLACK DIAMOND, INC.

BLACK DIAMOND EQUIPMENT, LTD.

BLACK DIAMOND RETAIL, INC.

EVEREST/SAPPHIRE ACQUISITION, LLC

BD NORTH AMERICAN HOLDINGS, LLC

POC USA, LLC

PIEPS SERVICE, LLC

BD EUROPEAN HOLDINGS, LLC

Co-Borrowers

 

Effective Date: October 31, 2014

 

    	 

    	 

    

 

SECOND AMENDED AND RESTATED LOAN AGREEMENT

 

This Second Amended
and Restated Loan Agreement is made and entered into as of October 31, 2014 (the “Effective Date”) by and among Zions
First National Bank, a national banking association, as Lender, and Black Diamond, Inc., a Delaware corporation; Black Diamond
Equipment, Ltd., a Delaware corporation; Black Diamond Retail, Inc., a Delaware corporation; Everest/Sapphire Acquisition, LLC,
a Delaware limited liability company; BD North American Holdings, LLC, a Delaware limited liability company; POC USA, LLC, a Delaware
limited liability company; PIEPS Service, LLC, a Delaware limited liability company; and BD European Holdings, LLC, a Delaware
limited liability company, collectively as Borrowers, and the other Loan Parties from time to time party hereto.

 

RECITALS

 

A.           Lender
and Borrowers have entered into that certain Amended and Restated Loan Agreement dated as of March 8, 2013, as amended by that
certain First Amendment to Amended and Restated Loan Agreement dated as of February 28, 2014 (collectively, the “A&R
Loan Agreement”) pursuant to which, among other things, Lender extended to Borrowers (i) a revolving line of credit in the
maximum principal amount of $30,000,000 as evidenced by that certain Amended and Restated Promissory Note (Revolving Loan) dated
as of March 8, 2013 (the “A&R Promissory Note”) and (ii) a term loan in the original principal amount of $10,000,000
as evidenced by that certain Amended and Restated Promissory Note (Term Loan) dated as of February 28, 2014.

 

B.           Lender
and Borrowers now desire to enter into this Second Amended and Restated Loan Agreement for the purpose of amending and restating
the A&R Loan Agreement in its entirety.

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.           Definitions

 

1.1           Definitions

 

Terms defined in the
singular shall have the same meaning when used in the plural and vice versa. As used herein, the term:

 

“Accordion Increase
Loan Fee” means a one-time loan fee equal to $20,000 to be paid by the Borrowers to Lender in respect of the increased availability
under the Revolving Loan.

 

“Accounting Standards”
means (i) in the case of financial statements and reports, conformity with generally accepted accounting principles fairly representing
in all material respects the financial condition as of the date thereof and the results of operations for the period or periods
covered thereby, consistent in all material respects with other financial statements of that company previously delivered to Lender
in connection with the Loan, and (ii) in the case of calculations, definitions, and covenants, generally accepted accounting principles
consistent in all material respects with those used in the preparation of financial statements of the Loan Parties previously delivered
to Lender.

 

    	1

    	 

    

 

“Administrator”
shall have the meaning set forth in Section 10.18 Jury Trial Waiver, Arbitration, and Class Action.

 

“Affiliate”
means, with respect to a specified Person, another Person (i) which directly or indirectly controls or is controlled by or is under
common control with the Person specified, (ii) which is a Subsidiary of the Person specified, or (iii) which directly or indirectly
beneficially owns or holds 25% or more of any voting class of any equity interest of the Person specified. As used in this definition,
“control” or “controlled” means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the ownership of voting equity interests, by contract,
or otherwise.

 

“Agreement”
means this Loan Agreement, as amended, supplemented, restated, amended and restated, or otherwise modified from time to time and
together with any exhibits, schedules and addendums hereof and thereto.

 

“Applicable Margin”
means, for any day, the applicable percentage set forth as follows:

 

	Tier	 	Senior Net Debt to
 Trailing Twelve
 Month EBITDA Ratio	 	Applicable
 Percentage	 	 	Non-Use Fee	 
	1	 	Greater than 2.00	 	 	4.00	%	 	 	0.60	%
	2	 	Greater than or equal to 1.00, but less than or equal to 2.00	 	 	3.00	%	 	 	0.50	%
	3	 	Less than 1.00	 	 	2.00	%	 	 	0.40	%

 

The Applicable Margin
shall be adjusted from time to time upon delivery to Lender of the quarterly financial statements of Black Diamond required to
be delivered pursuant to Section 6.7 accompanied by a written calculation of the ratio of Senior Net Debt to Trailing Twelve Month
EBITDA certified on behalf of the Borrowers by a Responsible Officer of the Borrowers as of the end of the fiscal quarter for which
such financial statements are delivered. If such calculation indicates that the Applicable Margin shall increase or decrease, then
on the first day of the calendar month following the date of delivery of such financial statements and written calculation the
Applicable Margin shall be adjusted in accordance therewith; provided, however, that if the Borrowers shall fail to deliver any
such financial statements for any such fiscal quarter by the date required pursuant to Section 6.7, then, at Lender’s election,
effective as of the first day of the calendar month following the end of the fiscal quarter during which such financial statements
were to have been delivered, and continuing through the first day of the calendar month following the date (if ever) when such
financial statements and such written calculation are finally delivered, the Applicable Margin shall be conclusively presumed to
equal Tier 1 specified in the pricing table set forth above.

 

    	2

    	 

    

 

In the event that any
financial statement delivered pursuant to Sections 6.7 is inaccurate, and such inaccuracy, if corrected, would have led to the
imposition of a higher Applicable Margin for any period than the Applicable Margin applied for that period, then (i) the Borrowers
shall immediately deliver to Lender a corrected financial statement with an accompanying corrected written calculation certified
by a Responsible Officer of the Borrowers for that period, (ii) the Applicable Margin shall be determined based on the corrected
calculation for that period, and (iii) the Borrowers shall immediately pay to Lender the accrued additional interest owing as a
result of such increased Applicable Margin for that period. This paragraph shall survive the termination of this Agreement until
the payment in full in cash of the aggregate outstanding principal balance of the Loans.

 

“Arbitration
Order” shall have the meaning set forth in Section 10.18 Jury Trial Waiver, Arbitration, and Class Action.

 

“Asset Coverage”
means (i) 70% of the sum of the net book value of the accounts receivable, inventory and property, plant and equipment, less (ii)Total
Senior Net Liabilities of Borrowers on a Consolidated basis, as reflected on Black Diamond’s Consolidated Financial Statements.

 

“Asset Protection
Trust” shall have the meaning set forth in Section 6.27 Creation of Trusts; Transfers to Trusts.

 

“Auto-Extension
Letter of Credit” shall have the meaning set forth in Section 2.2e Letters of Credit.

 

“A&R Loan
Agreement” shall have the meaning set forth in the recitals of this Agreement.

 

“A&R Promissory
Note” shall have the meaning set forth in the recitals of this Agreement.

 

“Banking Business
Day” means any day not a Saturday, Sunday, legal holiday in the State of Utah, or day on which national banks in the State
of Utah are authorized to close and, when used with respect to all notices and determinations in connection with, and payments
of principal and interest on, advances of the Loan bearing interest at a LIBOR Rate, any day on which dealings in dollar deposits
are also carried on in the London Interbank market and banks are open for business in London.

 

“BDEH”
means BD European Holdings, LLC, a limited liability company organized and existing under the laws of the State of Delaware.

 

“BDEL”
means Black Diamond Equipment, Ltd., a corporation organized and existing under the laws of the State of Delaware.

 

“BDNA”
means BD North American Holdings, LLC, a limited liability company organized and existing under the laws of the State of Delaware.

 

“BD-Retail”
means Black Diamond Retail, Inc., a corporation organized and existing under the laws of the State of Delaware.

 

    	3

    	 

    

 

“Black Diamond”
means Black Diamond, Inc., a corporation organized and existing under the laws of the State of Delaware.

 

“Borrowers”
means, collectively, Black Diamond, BDEL, BD-Retail, Everest, BDNA, POC, Pieps Service, BDEH and any domestic Subsidiaries
of Borrowers formed by Borrowers as provided in Section 6.21 Subsidiaries or acquired pursuant to a Permitted Acquisition,
or any of them.

 

“Capital Expenditures”
means expenditures for fixed or capital assets as determined in accordance with Accounting Standards.

 

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

 

“Collateral”
means any and all property owned, leased or operated by a Person covered by the Collateral Documents and any and all other property
of any Loan Party, existing upon or acquired after the Effective Date, that may after the occurrence of a Collateral Triggering
Event be or become subject to a security interest or Lien in favor of Lender to secure the Obligations.

 

“Collateral Documents”
means, collectively, all security agreements, assignments, pledges, control agreements, financing statements, deeds of trust, mortgages,
and other documents creating, granting, evidencing or perfecting a Lien upon the Collateral as security for payment of the Obligations
under the Loan Documents, and all amendments, modifications, addendums, and replacements thereof, whether presently existing or
created in the future.

 

“Collateral Triggering
Event” means the occurrence and continuance beyond any applicable cure or grace periods of any Event of Default.

 

“Compliance Certificate”
means a certificate executed by the Loan Parties, as described in Section 6.7 Financial Statements and Reports, substantially
in the form attached hereto as Exhibit A.

 

“Consolidated”
or “on a Consolidated basis” means, with respect to calculations, amounts, reports, statements, or certificates required
hereunder, such calculations, amounts, reports, statements or certificates of a Person and their Subsidiaries.

 

“Consolidated
Financial Statements” means the Consolidated financial statements of Black Diamond prepared in accordance with Accounting
Standards.

 

“Covenant Liquidity”
means unencumbered cash or marketable securities in one or more deposit or approved investment accounts owned by Borrowers and
maintained with or managed by Lender or Lender’s Affiliates.

 

    	4

    	 

    

 

“Debt”
means, with respect to any Person and without duplication, (i) indebtedness or liability for borrowed money; (ii) obligations evidenced
by bonds, debentures, notes, or other similar instruments, including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses; (iii) obligations for the deferred purchase price of property or services (excluding trade obligations
incurred in the ordinary course of business not more than 120 days past due); (iv) obligations as lessee under capital leases;
(v) current liabilities in respect of unfunded vested benefits under Plans covered by ERISA; (vi) obligations under acceptance
facilities; (vii) any Disqualified Equity Interests of such Person; (viii) the face amount of all letters of credit issued for
the account of such Person and without duplication, all drafts drawn thereunder and all reimbursement or payment obligations with
respect to letters of credit, surety bonds, and other similar instruments issued by such Person; (ix) all indebtedness created
or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect
to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property); (x) the principal balance outstanding under any synthetic lease,
off-balance sheet loan or similar off balance sheet financing product; (xi) all guarantees, endorsements (other than for collection
or deposit in the ordinary course of business), and other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person, or otherwise to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto; (xii) obligations as lessee under any operating lease; and
(xiii) obligations secured by any mortgage, deed of trust, lien, pledge, or security interest or other charge or encumbrance on
property, whether or not such Person has assumed or become liable for the payment of any such obligation.

 

“Default”
means an event which, with the passage of time or giving of notice or both, without waiver or timely cure, would constitute an
Event of Default.

 

“Default Rate”
means 3.0% per annum above the LIBOR Rate plus the Tier 1 Applicable Margin.

 

“Dispute”
shall have the meaning set forth in Section 10.18 Jury Trial Waiver, Arbitration, and Class Action Waiver.

 

“Disqualified
Equity Interests” means any Equity Interest which, by its terms (or by the terms of any security or other Equity Interest
into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof,
in whole or in part, on or prior to the date that is 91 days following the final maturity date of the Loan (excluding any provisions
requiring redemption upon a “change of control” or similar event; provided that such “change of control”
or similar event results in the prior payment in full in cash of the Obligations (other than contingent indemnification obligations
to the extent no claim giving rise thereto has been asserted), the termination of all commitments to lend hereunder and the termination
of this Agreement), (b) is convertible into or exchangeable for (1) debt securities or (2) any Equity Interest referred to in (a)
above, in each case, at any time on or prior to the date that is 91 days following the final maturity date of the Loan, or (c)
is entitled to receive scheduled dividends or distributions in cash prior to the time that the Obligations (other than contingent
indemnification obligations to the extent no claim giving rise thereto has been asserted) are paid in full in cash.

 

“Distributions”
means any payment to any shareholder of the Loan Parties for dividends, repurchases, redemptions, retirements or reacquisitions
of capital stock, whether in cash or assets.

 

    	5

    	 

    

 

“Dry Hole Expenses”
means verifiable expenses for legal, accounting, investment banking, financial advisory, consulting and other third-party services
that would otherwise qualify as Transaction Expenses except that such expenses related to transactions that failed to close, not
to exceed an aggregate amount of $500,000 during any Trailing Twelve Month period.

 

“EBITDA”
means earnings (excluding extraordinary gains and losses realized other than in the ordinary course of business and excluding the
sale or writedown of intangible or capital assets) before Interest Expense, Income Tax Expense, depreciation, amortization, other
non-cash charges (including stock-based compensation and inventory increases required in purchase accounting), Transaction Expenses
incurred on or prior to September 30, 2014, Dry Hole Expenses incurred on or prior to September 30, 2014, and other non-recurring
expenses approved by Lender in its sole discretion, in each case as determined in accordance with Accounting Standards.

 

“Environmental
Condition” means any condition involving or relating to Hazardous Materials and/or the environment affecting the Real Property,
whether or not yet discovered, which is reasonably likely to or does result in any damage, loss, cost, expense, claim, demand,
order, or liability to or against the Loan Parties or Lender by any third party (including, without limitation, any government
entity), including, without limitation, any condition resulting from the operation of the Loan Parties’ business and/or operations
in the vicinity of the Real Property and/or any activity or operation formerly conducted by any Person on or off the Real Property.

 

“Environmental
Health and Safety Law” means any legal requirement that governs the Loan Parties or the Real Property that requires or relates
to:

 

a.           advising
appropriate authorities, employees, or the public of intended or actual releases of Hazardous Materials, violations of discharge
limits or other prohibitions, and of the commencement of activities, such as resource extraction or construction, that do or could
have significant impact on the environment;

 

b.           preventing
or reducing to acceptable levels the release of Hazardous Materials;

 

c.           reducing
the quantities, preventing the release, or minimizing the hazardous characteristics of wastes that are generated;

 

d.           assuring
that products are designed, formulated, packaged, and used so that they do not present unreasonable risks to human health or the
environment when used or disposed of;

 

e.           protecting
resources, species, or ecological amenities;

 

f.            use,
storage, transportation, sale, or transfer of Hazardous Materials or other potentially harmful substances;

 

g.           cleaning
up Hazardous Materials that have been released, preventing the threat of release, and/or paying the costs of such clean up or prevention;
or

 

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h.           making
responsible parties pay for damages done to the health of others or the environment or permitting self-appointed representatives
of the public interest to recover for injuries done to public assets.

 

“Equity Interests”
means shares of capital stock, partnership interests, membership interests or units in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any such equity interest.

 

“ERISA”
shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“ERISA Affiliate”
shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“Event of Default”
shall have the meaning set forth in Section 7.1 Events of Default.

 

“Everest”
means Everest/Sapphire Acquisition, LLC, a limited liability company organized and existing under the laws of the State of Delaware.

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to any Lender or required to be withheld or deducted from a payment
to any Lender under this Agreement: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and
branch profits Taxes, in each case, (i) imposed as a result of such Lender being organized under the laws of, or having its principal
office or its applicable lending office located in the jurisdiction imposing such Tax (or any political subdivision thereof) or
(ii) that are Other Connection Taxes; (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such
Lender with respect to an applicable interest in the Loan pursuant to a law in effect on the date on which (i) such Lender acquires
such interest in the Loan or (ii) such Lender changes its lending office, except to the extent that such Lender (or its assignor,
if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from any
Loan Party with respect to such withholding Tax pursuant to Section 2.9a Payment Free of Taxes (provided that such Lender
has complied with Section 2.9d Status of Lenders); (c) Taxes attributable to such Lender’s failure to comply with
Section 2.9d Status of Lenders; and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

“Existing Debt”
means the existing debt of Borrowers and their Subsidiaries as set forth on Exhibit B attached hereto and incorporated hereby.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof,
and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“FASB”
shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“Fiscal Year”
means the fiscal year of Black Diamond.

 

“Fiscal Year
End” means December 31 for any year.

 

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“FHLB Rate”
means, as of any date of determination, the rate per annum quoted by Lender as its Thirty Day FHLB rate based upon the FHLB Seattle
rate as quoted in Bloomberg, or on the FHLB Seattle internet web site at www.FHLBsea.com, or other comparable service selected
by Lender. This definition of “FHLB Rate” is to be strictly interpreted and is not intended to serve any purpose other
than providing an index to determine the interest rate used herein. It is not the lowest rate at which Lender may make loans to
any of its customers, now or in the future. If the FHLB Rate becomes unavailable during the term of this Agreement, Lender may
designate a substitute index after notifying Borrowers.

 

“Foreign Lender” means any Lender
that is not a U.S. Person.

 

“Hazardous Materials”
means (i) “hazardous waste” as defined by the Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 (42 U.S.C. Section 6901 et. seq.), including any future amendments thereto, and regulations promulgated thereunder,
and as the term may be defined by any contemporary state counterpart to such act; (ii) “hazardous substance” as defined
by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et. seq.), including
any future amendments thereto, and regulations promulgated thereunder, and as the term may be defined by any contemporary state
counterpart of such act; (iii) asbestos; (iv) polychlorinated biphenyls; (v) underground or above ground storage tanks, whether
empty or filled or partially filled with any substance; (vi) any substance the presence of which is or becomes prohibited by any
federal, state, or local law, ordinance, rule, or regulation; and (vii) any substance which under any federal, state, or local
law, ordinance, rule or regulation requires special handling or notification in its collection, storage, treatment, transportation,
use or disposal.

 

“Hedging Transaction”
means and includes any transaction now existing or hereafter entered into between any of the Loan Parties and Lender or an Affiliate
of Lender which is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index
swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any
other similar transaction (including any option with respect to any of these transactions) or any combination thereof whether linked
to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures, including without
limitation the transactions entered into pursuant to the Hedging Transaction Documents.

 

“Hedging Transaction
Documents” means and includes all ISDA Master Agreements and Schedules thereto, and all Confirmations (as such term is defined
by any ISDA Master Agreement) between any of the Loan Parties and Lender or an Affiliate of Lender in connection with any Hedging
Transactions, together with all renewals, extensions, modifications, and consolidations of or substitutions for any of the foregoing
“Income Tax Expense” means expenditures and accruals for federal and state income taxes and foreign income taxes, each
determined in accordance with Accounting Standards.

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any
obligation of the Loan Parties under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

 

    	8

    	 

    

 

“Intercompany
Loans” means any loan or extension of credit from the Loan Parties or non-Loan Party Subsidiaries to any Loan Party or non-Loan
Party Subsidiary, now existing or in the future, including, without limitation, those set forth on Schedule 1.1 hereto.

 

“Interest Expense”
means expenditures and accruals for interest determined in accordance with Accounting Standards.

 

“Joinder Agreement”
means an agreement whereby a company which is the subject of a Permitted Acquisition or which otherwise becomes a Subsidiary of
any Loan Party agrees to become a Borrower and be bound by the terms and conditions of the Loan Documents, in substantially the
form of Exhibit D.

 

“Laws”
means any law, statute, rule, regulation or order of any domestic or foreign government, or any instrumentality or agency thereof
having jurisdiction over the conduct of any Loan Party’s business or the ownership of its properties.

 

“LC Sublimit”
means, at any time, a portion of the Revolving Loan amount available from time to time for the issuance of Letters of Credit equal
to the lesser of (a) the undrawn amount under the Revolving Loan (including amounts frozen for outstanding Letters of Credit) at
the time of determination and (b) $5,000,000.

 

“Lender”
means Zions First National Bank, a national banking association, its successors, and assigns.

 

“Letter of
Credit” means any standby or commercial letter of credit issued by Lender under this Agreement pursuant to Section 2.2e
Letters of Credit for the account of Borrower.

 

“LIBOR Rate”
means the rate per annum quoted by Lender as its One Month LIBOR Rate based upon the London Interbank Offered Rate for Dollar deposits
published by Bloomberg or other comparable services selected by Lender, as determined for the date of any adjustment thereof at
approximately 11:00 a.m. London time two Banking Business Days prior to such date of adjustment. If such LIBOR Rate is not available
at such time for any reason, then the LIBOR Rate will be determined by such alternate method as reasonably selected by Lender.
This definition of LIBOR Rate is to be strictly interpreted and is not intended to serve any purpose other than providing an index
to determine the interest rate used herein. The LIBOR Rate of Lender may not necessarily be the same as the quoted offered side
in the Eurodollar time deposit market quoted by any particular institution or service. It is not necessarily the lowest rate at
which Lender may make loans to any of its customers, either now or in the future.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge, security interest,
assignment, deposit arrangement, or other preferential arrangement of any nature, in, on, of or with respect to such asset, (b)
the interest of a vendor or lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing) relating to such asset, (c) under the Uniform Commercial
Code of any jurisdiction, any financing statement filed identifying or including such asset as collateral, and (d) without limiting
the foregoing, in the case of Equity Interests, any purchase option, call or similar right of a third party with respect to such
Equity Interests.

 

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“Loan”
means the Revolving Loan.

 

“Loan Documents”
means this Agreement, Promissory Note, any Hedging Transaction Documents, all other agreements, documents or instruments governing,
evidencing, securing, guaranteeing or otherwise pertaining to the Obligations, and all other agreements and documents contemplated
by any of the aforesaid documents. Any reference in this Agreement or any other Loan Document to a Loan Document shall include
all appendices, exhibits or schedules thereto, and all amendments, restatements supplements or other modifications, addendums and
replacements thereto, whether presently existing or created in the future, and shall refer to this Agreement or such Loan Document
as the same may be in effect at any and all times such reference becomes operative.

 

“Loan Parties”
means Borrowers, each domestic Subsidiary of any of the foregoing, and each Person who becomes a party to this Agreement as a borrower.

 

“Material Adverse
Effect” means a material adverse effect on Black Diamond’s and its Subsidiaries’ financial condition, conduct
of their business, or ability to perform their obligations under the Loan Documents, in each case taken as a whole.

 

“Maturity Date” means April
1, 2017.

 

“Maximum Availability”
means, at the time of determination, an amount equal to the Revolving Loan amount minus the aggregate principal amount of
all advances outstanding under the Revolving Loan (including amounts frozen for outstanding Letters of Credit).

 

“Minimum EBITDA
Period” means (i) at any time prior to the Permanent Accordion Increase Date other than during a Seasonal Accordion Increase
Period, the period commencing the date upon which Covenant Liquidity is less than $30,000,000 and ending the date upon which Covenant
Liquidity equals or exceeds $30,000,000 and (ii) any period following the Permanent Accordion Increase Date.

 

“Multi-Employer
Plan” shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“Negative Pledge”
shall have the meaning set forth in Section 6.15 Negative Pledge.

 

“Net Proceeds”
means, with respect to any event, (a) the cash proceeds received in respect of such event, including (i) any cash received in respect
of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received,
(ii) in the case of a casualty, insurance proceeds and (iii) in the case of a condemnation or similar event, condemnation awards
and similar payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than
Affiliates) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset (including pursuant
to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required
to be made as a result of such event to repay Debt (other than the Loan) secured by such asset or otherwise subject to mandatory
prepayment as a result of such event, and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount
of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that
such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and
in good faith by the Loan Parties).

 

    	10

    	 

    

 

“Net Worth”
means total assets minus total liabilities.

 

“Obligations”
means and includes without limitation (but without duplication): (i) any and all obligations, indebtedness and liabilities of any
of the Loan Parties, whether individual, joint and several, absolute or contingent, direct or indirect, liquidated or unliquidated,
now or hereafter existing, in favor of Lender, including without limitation all unpaid principal of and accrued and unpaid interest
(including any interest accruing after the filing of any petition in bankruptcy or the commencement of any proceeding relating
to any Loan Party, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) on the Loan,
all accrued and unpaid fees and all expenses (including all fees and expenses of counsel to Lender incurred and payable by the
Loan Parties pursuant to this Agreement or any other Loan Document), reimbursements, indemnities and other obligations of the Loan
Parties to Lender or any indemnified party arising under the Loan Documents; (ii) any and all obligations of any of the Loan Parties,
whether individual, joint and several, absolute or contingent, direct or indirect, liquidated or unliquidated, now or hereafter
existing, in favor of Lender with respect to any treasury management services, including, without limitation, controlled disbursements,
automated clearinghouse transactions, interstate depository network services, credit or debit or purchasing cards, or other cash
management services; and (iii) any and all obligations of any of the Loan Parties to Lender or its Affiliates arising under or
in connection with any Hedging Transaction now existing or hereafter entered into between any such Loan Party and Lender or its
Affiliates, in each case, together with all renewals, extensions, modifications or refinancings thereof.

 

“Organizational
Documents” means, in the case of a corporation, its Articles of Incorporation or Certificate of Incorporation and By-Laws;
in the case of a general partnership, its Articles of Partnership; in the case of a limited partnership, its Articles of Limited
Partnership; in the case of a limited liability company, its Articles of Organization or Certificate of Formation and Operating
Agreement or Regulations, if any; in the case of a limited liability partnership, its Articles of Limited Liability Partnership;
and all amendments, modifications, and changes to any of the foregoing which are currently in effect.

 

“Other Connection
Taxes” means, with respect to any recipient of a payment under any Loan Document, Taxes imposed as a result of a present
or former connection between such recipient and the jurisdiction imposing such Tax (other than connections arising from such recipient
having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected
a security interest under, sold or assigned of any interest in, engaged in any other transaction pursuant to or enforced any Loan
Document).

 

“Other Taxes”
means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes or any other excise or
property Taxes, charges or similar levies that arise from any payment made under, from the execution, delivery, performance, enforcement
or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document,
except any such Taxes that are imposed with respect to an assignment.

 

    	11

    	 

    

 

“PBGC”
shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“Permanent Accordion
Increase Date” means the date upon which all of the following conditions are satisfied: (i) Black Diamond and its Subsidiaries,
on a Consolidated basis, achieve a Trailing Twelve Month EBITDA of not less than $11,000,000 for the most recent fiscal quarter
then ending, (ii) Borrowers provide Lender not less than 5 days’ prior written notice that they wish to have permanent access
to the maximum principal amount under the Revolving Loan of up to $30,000,000, and (iii) the Accordion Increase Loan Fee has been
paid to Lender.

 

“Permitted Acquisitions”
shall have the meaning set forth in Section 6.17 Mergers, Consolidations, Acquisitions, Sale of Assets.

 

“Permitted Business”
means any business in which the Loan Parties are engaged on the Effective Date or any other business in the outdoor recreation
industry, including without limitation, climbing, hiking, skiing, cycling and camping products, accessories and apparel, and any
business reasonably similar, ancillary, related or complementary thereto, or a reasonable extension, development or expansion thereof.

 

“Permitted Joint
Venture” shall have the meaning set forth in Section 6.18 Joint Ventures and Investments.

 

“Permitted Liens”
shall have the meaning set forth in Section 6.15 Negative Pledge.

 

“Person”
means any natural person, any unincorporated association, any corporation, firm, any joint venture, any partnership, any limited
liability company, any association, any enterprise, any trust or other legal entity or organization, or any government or political
subdivision or any agency, department or instrumentality thereof.

 

“Prepayment Event”
means (a) any sale, transfer or other disposition of any property or asset of any Loan Party (other than sales of inventory in
the ordinary course of business) to the extent such asset or property has a fair value immediately prior to such event in excess
of (i) $100,000 for any single sale, transfer or disposition or (ii) $250,000 in the aggregate with all other such sales, transfers
and dispositions; (b) any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or
similar proceeding of, any property or asset of any Loan Party in respect of which any Loan Party, individually or in the aggregate,
shall receive Net Proceeds in excess of $100,000; or (c) the occurrence of any Change of Control. 

 

“PIEPS Service” means PIEPS
Service, LLC, a limited liability company organized and existing under the laws of the State of Delaware.

 

“Plan” shall have the meaning
set forth in Section 5.8 Compliance with ERISA.

 

“POC” means
POC USA, LLC, a limited liability company organized and existing under the laws of the State of Delaware.

 

“Promissory Note”
means the Revolving Note.

 

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“Real Property”
means any and all real property or improvements thereon owned or leased by any Loan Party or in which any Loan Party has any other
interest of any nature whatsoever.

 

“Reimbursement Agreement” shall
have the meaning set forth in Section 2.2e Letters of Credit.

 

“Reportable Event”
shall have the meaning set forth in Section 5.8 Compliance with ERISA.

 

“Responsible
Officer” means, with respect to any Borrower, the president, chairman, vice chairman, chief executive officer, chief financial
officer, vice president, treasurer, secretary or controller of such Borrower.

 

“Revolving Loan”
means the revolving loan described in Section 2.2 Revolving Loan.

 

“Revolving Note”
means, individually and collectively, the revolving line of credit promissory note to be executed by Borrowers and delivered to
Lender pursuant to Section 2.2c Revolving Note hereto, and any and all renewals, extensions, modifications, and replacements
thereof.

 

“Seasonal Accordion
Increase Period” means, solely to the extent (i) with respect to the first such period, the Accordion Increase Loan Fee has
been paid to Lender, (ii) Covenant Liquidity is greater than $40,000,000 and (iii) prior to the Permanent Accordion Increase Date,
the period commencing July 1st of each Fiscal Year and ending on the earlier of (a) December 31st of such Fiscal Year and (b) the
date upon which Covenant Liquidity is less than $40,000,000.

 

“Senior Net Debt”
means Borrowers’ Debt minus cash on hand, cash equivalents, marketable securities, and Subordinated Debt.

 

“Subordinated
Debt” means those certain 5% Unsecured Subordinated Notes not to exceed an aggregate amount of up to $23,000,000, executed
by Black Diamond dated as of: (i) May 28, 2010 in favor of Kanders GMP Holdings, LLC, Robert R. Schiller Cornerstone Trust, and
Deborah Schiller 2005 Revocable Trust; (ii) May 29, 2012 in favor of Kanders GMP Holdings and Schiller Gregory Investment Company,
LLC; and (iii) August 13, 2012 in favor of Kanders GMP Holdings and Schiller Gregory Investment Company, LLC.

 

“Subsidiaries”
means any existing or future domestic or foreign corporation, partnership, joint venture, limited liability company or other business
entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors
or other governing body (other than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned by any Borrower, or the management of which is otherwise controlled by any Borrower, directly,
or indirectly through one or more intermediaries. As used in this definition, “control” or “controlled”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting equity interests, by contract, or otherwise.

 

    	13

    	 

    

 

“Sweep Account”
means any account or accounts of Borrowers established with Lender pursuant to the Sweep Account Agreement, now or in the future.

 

“Sweep Account
Agreement” means any agreement between Borrowers and Lender establishing a sweep account arrangement, and all amendments,
modifications and replacements thereof.

 

“Taxes”
means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments,
fees or other charges imposed, levied, withheld or assessed by any governmental authority, including any interest, additions to
tax or penalties applicable thereto.

 

“Total Senior
Net Liabilities” means total liabilities minus the sum of: cash on hand, cash equivalents, marketable securities, Subordinated
Debt, and deferred tax liabilities.

 

“Trailing Twelve
Month” means the 12 calendar month period immediately preceding the date of calculation.

 

“Transaction
Expenses” means reasonable and customary costs and fees paid or accrued in connection with the closing of any acquisitions,
including all legal, accounting, banking and underwriting fees and expenses, commissions, discounts and other issuance expenses
(including, for the avoidance of doubt, financial consultants engaged for the purpose of determining and implementing a best practices
strategy with respect to the integration of Black Diamond into the overall Black Diamond operations, accounting systems, culture
and so forth).

 

“U.S.
Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.

 

1.2           Terms
Generally

 

The definitions of
terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes and “including”
shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references
to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules
to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

 

    	14

    	 

    

 

2.           The
Loan

 

2.1           Intentionally
Omitted

 

2.2           Revolving
Loan

 

a.           Amount
of Revolving Loan. Upon fulfillment of all conditions precedent set forth in this Agreement, subject to the terms of the Revolving
Note, and so long as no Event of Default exists which has not been waived or timely cured, and no other breach has occurred which
has not been waived or timely cured under the Loan Documents, Lender agrees to loan Borrowers up to $30,000,000 pursuant to this
Section 2.2; provided, however, other than during a Seasonal Accordion Increase Period, Lender shall loan up to no more than $20,000,000
at any one time outstanding prior to the Permanent Accordion Increase Date.

 

b.           Nature
and Duration of Revolving Loan. The Revolving Loan shall be a revolving loan payable in full upon the date and upon the terms
and conditions provided in this Agreement and in the Revolving Note. Lender and Borrowers intend the Revolving Loan to be in the
nature of a line of credit under which Borrowers may repeatedly draw funds on a revolving basis in accordance with the terms and
conditions of this Agreement and the Revolving Note. If, at any time prior to the Maturity Date, the Revolving Note shall have
a zero balance owing, the Revolving Note shall not be deemed satisfied or terminated and shall remain in full force and effect
for future draws unless terminated or suspended upon other grounds. The right of Borrowers to draw funds and the obligation of
Lender to advance funds under the Revolving Loan shall not accrue until all of the conditions set forth in Section 4. Conditions to Loan Disbursements have been fully satisfied, and shall terminate: (i) upon occurrence
and during the continuation of a Default or Event of Default, or (ii) upon the maturity of the Revolving Loan, unless the Revolving
Loan is renewed or extended by Lender in which case such termination shall occur upon the maturity of the final renewal or extension
of the Revolving Loan. Upon such termination, any and all amounts owing to Lender pursuant to the Revolving Note and this Agreement
shall thereupon be due and payable in full.

 

c.           Revolving
Note. The Revolving Loan shall be evidenced by a Second Amended and Restated Promissory Note (Revolving Loan) (the “Revolving
Note) which shall amend and restate the A&R Promissory Note in its entirety. The Revolving Note shall be executed and delivered
to Lender upon execution and delivery of this Agreement. Proceeds of the Revolving Loan may be disbursed by Lender by wire transfer.

 

d.           Notice
and Manner of Borrowing. Borrowers shall give Lender at least one Banking Business Days prior written notice of any advances
requested under the Revolving Loan no later than 12:00 p.m. Mountain Time of the Banking Business Day on which the requested advance
is to be made.

 

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Additionally,
at the election of Borrowers, the Revolving Loan may be linked to the Sweep Account pursuant to the Sweep Account Agreement. Borrowers
and Lender may each unilaterally terminate the Sweep Account at any time. To the extent, if any, the terms of the Sweep Account
are inconsistent with or contradict the terms of the Loan Documents, the terms of the Loan Documents shall govern. All references
in the Sweep Account Agreement to a “Commercial Loan Line” or similar references to a line of credit are amended to
refer to the Revolving Loan.

 

If such election
is made, (i) Lender is authorized and directed to disburse funds under the Revolving Loan for deposit into the Sweep Account on
each Banking Business Day as needed to cover all checks and other charges against the Sweep Account; (ii) disbursements shall be
made up to the Maximum Availability at the time of determination; (iii) upon occurrence of a Default or Event of Default, Lender
may, in its sole discretion, cease all disbursements under the Revolving Note into the Sweep Account; and (iv) Lender is authorized
and directed to disburse all collected funds in the Sweep Account on each Banking Business Day to Lender to be applied on the Revolving
Loan.

 

It is acknowledged
that posting of credits and debits to and from the Sweep Account are made on the same Banking Business Day the transactions occur
and that the posting of credits and debits to and from the Revolving Loan are made one Banking Business Day after the transactions
occur but are deemed effective as of the prior Banking Business Day.

 

e.           Letters
of Credit. Borrowers may request that Lender or Lender’s affiliates issue Letters of Credit against the Revolving Loan.
Any Letter of Credit issued hereunder shall be in form and content acceptable to Lender. All requests for issuance of Letters of
Credit shall require two Banking Business Days’ prior notice, and shall, unless otherwise agreed by Lender, have an expiry
date which is the earlier of one year after its issuance or the maturity date of the Revolving Note provided that the expiry date
of any Letter of Credit may be up to 12 months later than the maturity date of the Revolving Loan if Borrowers agree at the time
of issuance that, after the payment of all of the obligations of Borrowers hereunder, Borrowers will provide Lender with cash collateral
in the amount of 105% of the stated amount of the applicable Letter of Credit. Lender may require Borrowers to execute Lender’s
standard application and reimbursement agreement for Letters of Credit (the “Reimbursement Agreement”), provided
that, in the event of any conflict between the terms of the Reimbursement Agreement and this Agreement, the terms of this Agreement
shall apply, including terms with respect to the disbursement of funds hereunder to reimburse Lender for drawings on Letters of
Credit.

 

If any Borrower
so requests, Lender shall, subject to the other conditions set forth in this Section 2.2e and so long as no Default or Event of
Default has occurred and is continuing and there is availability therefor under the Loan, issue Letters of Credit under this Agreement
that have automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such
Auto-Extension Letter of Credit must (i) permit Lender to prevent any such extension at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than
a day in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued, and (ii) not be permitted
to have an expiry date later than the maturity date of the Revolving Loan unless Borrowers satisfy the requirements set forth in
this Section 2.2e. Unless otherwise directed by Lender in writing, Borrowers shall not be required to make a specific request to
Lender for any such extension. In no event shall the aggregate amount frozen for outstanding Letters of Credit exceed the LC Sublimit
at any time.

 

    	16

    	 

    

 

Borrowers
shall pay quarterly, in advance all fees and charges for issuance of Letters of Credit, including: (i) fees customarily charged
by Lender, (ii) for standby Letters of Credit, an issuance fee equal to the Applicable Margin then in effect of the face amount
of each such Letter of Credit, and (iii) any fees set forth in this Agreement or the Reimbursement Agreement. Upon issuance of
a Letter of Credit against the Revolving Loan, an amount of the Revolving Loan equal to the amount of the Letter of Credit shall
be frozen and unavailable for disbursement upon request of Borrowers so long as the Letter of Credit is outstanding or subject
to payment. Upon payment by Lender of any drawing on any Letter of Credit issued against the Revolving Loan, Lender shall disburse
funds under the Revolving Loan to reimburse Lender for the amount of the drawing and, for the avoidance of doubt, the LC Sublimit
shall be correspondingly increased to reflect the reduction of the outstanding Letter of Credit obligations.

 

f.            Non-Use
Fee. Borrowers shall pay to Lender a non-use fee based on the unused portion of the maximum commitment amount of the Revolving
Loan at the time of determination, calculated on the average unused daily balance of the Revolving Loan for each calendar quarter
or portion thereof based on a 360 day year and actual days elapsed based on the applicable per annum percentage stipulated in the
definition of Applicable Margin. For purposes of calculating the unused portion of the Revolving Loan, outstanding Letters of Credit
issued hereunder shall be considered usage of the Revolving Loan. The fee shall be payable quarterly, in arrears, and shall be
due no later than the fifth Banking Business Day after receipt by Borrowers of a statement therefor from Lender.

 

g.           Maximum
Availability. Notwithstanding anything to the contrary in the Loan Documents, no advances shall be made under the Revolving
Loan if any such advance exceeds the Maximum Availability at the time of determination. If at any time the Maximum Availability
is less than $0, Borrowers shall immediately make payment to Lender in a sufficient amount to have the Maximum Availability equal
to an amount not less than $0.

 

h.           Payments
on Revolving Loan. Principal and interest under the Revolving Loan shall be payable as follows: Interest shall be paid monthly
in arrears on the first day of each calendar month beginning November 1, 2014. All principal, unpaid interest and all other amounts
due under the Revolving Loan shall be paid in full on the Maturity Date, unless required to be paid or prepaid at an earlier date
in accordance with this Agreement.

 

2.3           Interest
on Loan

 

a.           Interest
Rate on Loan. Interest on the Loan shall be calculated on the basis of a 360 day year and actual days elapsed as follows: The
LIBOR Rate from time to time in effect, adjusted as of the day that is two Banking Business Days prior to the first day of each
calendar month, plus the Applicable Margin.

 

    	17

    	 

    

 

b.           Interest
Rate Unavailable or Unacceptable.

 

(i)          Notwithstanding
the foregoing, if the adoption of any applicable law, rule, or regulation, or any change therein, or any change in the interpretation
or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or
administration thereof, or compliance by Lender with any request or directive (whether or not having the force of law) of any such
authority, central bank, or comparable agency, shall make it unlawful or impossible for Lender to maintain balances based on the
LIBOR Rate then in effect, then upon notice to Borrowers by Lender, the outstanding principal amount of the balances based on the
LIBOR Rate then in effect, together with interest accrued thereon, shall be repaid immediately upon demand of Lender if such change
or compliance with such request, in the judgment of Lender, requires immediate repayment or, if such repayment is not required,
at the election of Borrowers shall be converted to a balance based on the FHLB Rate plus the Applicable Margin.

 

(ii)         Notwithstanding
anything to the contrary herein, if Lender determines (which determination shall be conclusive) that (A) quotations of interest
rates referred to in the definition of the LIBOR Rate then in effect are not being provided in the relevant amounts or for the
relevant maturities for purposes of determining such LIBOR Rate, or (B) the LIBOR Rate then in effect does not accurately cover
the cost to Lender of making or maintaining advances based on such LIBOR Rate, then Lender may give notice thereof to Borrowers,
whereupon until Lender notifies Borrowers that the circumstances giving rise to such suspension no longer exist the interest rate
applicable to the outstanding principal balances based on the LIBOR Rate then in effect shall be converted to balances based on
the FHLB Rate plus the Applicable Margin.

 

c.           Accrual
of Interest. Interest on the Loan shall accrue from the date of disbursement of any principal amount or portion thereof until
paid, both before and after judgment, in accordance with the terms set forth herein.

 

d.           Default
Rate. Upon the occurrence and during the continuation of an Event of Default, at the election of Lender, the Loan and all other
Obligations hereunder shall bear interest at the Default Rate, both before and after judgment, until paid.

 

    	18

    	 

    

 

2.4           Prepayments;
Account Debit

 

a.           Optional
Prepayments. Borrowers may not prepay in full or in part any balances unless Borrowers shall make Lender whole and Borrowers
shall pay to Lender all costs incurred by Lender in connection with such prepayment and compensate Lender for any loss and any
breakage costs arising from the re-employment of funds at rates lower than the rate provided herein, cost to Lender of such funds,
any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the Loan and any related
costs.

 

b.           Mandatory
Payments of Loan.

 

(i)          In
the event and on each occasion that any Net Proceeds are received by or on behalf of any Loan Party in respect of any Prepayment
Event, Borrowers shall promptly, but in any event within five Banking Business Days after such Net Proceeds are received by such
Person, make a payment on the Loan in an aggregate amount equal to 100% of such Net Proceeds (without resulting in any permanent
reduction in the Revolving Loan commitment hereunder, except in the case of a Change of Control); provided that, in the case of
any event described in clauses (a) or (b) of the definition of the term “Prepayment Event,” if Borrowers shall deliver
to Lender a certificate of the president, chief executive officer, chief financial officer or controller of Borrowers to the effect
that Borrowers intend to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 180
days after receipt of such Net Proceeds, to acquire equipment or other tangible assets to be used in the business of Borrowers,
and certifying that no Event of Default has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph
in respect of the Net Proceeds specified in such certificate; provided, further, that to the extent of any such Net Proceeds therefrom
that have not been so applied by the end of such 180 day period, a prepayment shall be required in an amount equal to such Net
Proceeds that have not been so applied. Except as specifically set forth herein, nothing contained in this paragraph shall be or
be deemed to be a consent to any Prepayment Event.

 

(ii)         Prior
to the Permanent Accordion Increase Date, Borrowers shall promptly, but in any event within fifteen Banking Business Days after
the end of such Seasonal Accordion Increase Period, prepay the Loan in an amount equal to 100% of the outstanding amounts under
the Loan in excess of $20,000,000 at the end of any Seasonal Accordion Increase Period.

 

c.           Account
Debit. Borrowers hereby irrevocably authorizes Lender to charge any of Borrowers’ deposit accounts maintained with
Lender for the amounts from time to time necessary to pay any then due Obligations; provided that Borrowers acknowledge and agree
that Lender shall not be under an obligation to do so and Lender shall not incur any liability to Borrowers or any other Person
for Lender’s failure to do so.

 

    	19

    	 

    

 

d.           Application
of Payments. All payments on the Loan shall be applied (i) first, to reimbursable fees, late charges, costs and expenses payable
by Borrowers under this Agreement or any of the other Loan Documents, (ii) second, to accrued interest and (iii) the remainder,
if any, to principal.

 

2.5           Recovery
of Additional Costs

 

If the imposition of
or any change in any law, rule, regulation or treaty, the issuance of any request, rule, guideline or directive, or the interpretation
or application of any thereof by any court or administrative or governmental authority (including any request or policy not having
the force of law and any changes imposed by (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,
rules, regulations, guidelines or directives issued under or in connection with such act and (ii) the Bank for International Settlements,
the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities,
in each case pursuant to Basel III) shall impose, modify, or make applicable any taxes (except federal, state, or local income
or franchise taxes imposed on Lender), reserve requirements, capital adequacy requirements, Federal Deposit Insurance Corporation
(FDIC) deposit insurance premiums or assessments, or other obligations which would (a) increase the cost to Lender for extending,
maintaining or funding the Loan, (b) reduce the amounts payable to Lender under the Loan, or (c) reduce the rate of return on Lender’s
capital as a consequence of Lender’s obligations with respect to the Loan, then Borrowers agree to pay Lender such additional
amounts as will compensate Lender therefor, within five Banking Business Days after Lender’s demand for such payment. Lender’s
demand shall be accompanied by an explanation of such imposition or charge and a calculation in reasonable detail of the additional
amounts payable by Borrowers, which explanation and calculations shall be conclusive in the absence of manifest error.

 

2.6           Funding
Fee 

 

Upon execution and
delivery of this Agreement, Borrowers shall pay to Lender a loan fee equal to $40,000 in respect of the Revolving Loan. Prior to
the first to occur of (i) the commencement of the first Seasonal Accordion Increase Period, if any, or (ii) the Permanent Accordion
Increase Date, Borrowers shall pay to Lender the Accordion Increase Loan Fee. No portion of such loan fees shall be refunded in
the event of early termination of this Agreement or any termination or reduction of the right of Borrowers to request advances
under this Agreement. Lender is authorized and directed, upon execution of this Agreement and fulfillment of all conditions precedent
hereunder, to disburse a sufficient amount of the Loan proceeds to pay the loan fees in full.

 

2.7           Late
Fee

 

If any payment hereunder
is more than ten days past due, Lender may charge, and Borrowers shall pay upon demand, a late fee equal to 5% of the amount of
such payment or $50, whichever is greater, to compensate Lender for administrative expenses and other costs of delinquent payments,
and such late fee shall be in addition to and not as a waiver of, Lender’s remedies arising from Borrowers’ failure
to make such payment. The amount of any late fee shall be added to the principal balance of the Loan and shall accrue interest
hereunder at the Default Rate until paid in full.

 

    	20

    	 

    

 

2.8           Consideration
Among Co-Borrowers

 

The transactions evidenced
by the Loan Documents are in the best interests of Borrowers, including non-Borrower Subsidiaries, and creditors of Borrowers,
including non-Borrower Subsidiaries. Borrowers and non-Borrower Subsidiaries are a single integrated financial enterprise and each
of the Borrowers and non-Borrower Subsidiaries receives a substantial benefit from the availability of credit under the Loan Documents.
Borrowers and non-Borrower Subsidiaries would not be able to obtain financing in the amounts or upon terms as favorable as provided
in the Loan Documents on an individual basis. The Loan will enable each of the Borrowers and non-Borrower Subsidiaries to operate
their business more efficiently, more profitably, and to expand their businesses. The direct and indirect benefits that inure to
each of the Borrowers and non-Borrower Subsidiaries by entering into the Loan Documents constitute substantially more than “reasonable
equivalent value” (as such term is used in § 548 of the United States Bankruptcy Code) and “valuable consideration”,
“fair value”, and “fair consideration” (as such terms are used in state fraudulent transfer law).

 

2.9           Taxes

 

a.           Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made
free and clear of and without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law
(as determined in the good faith discretion of a Loan Party) requires the deduction or withholding of any Tax from any such payment,
then (i) the applicable Loan Party shall be entitled to make such deduction or withholding, (ii) the applicable Loan Party shall
timely pay the full amount deducted or withheld to the relevant governmental authority in accordance with applicable law, and (iii)
if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after
such deduction or withholding has been made (including deductions or withholdings applicable to additional amounts payable under
this Section) the applicable recipient of such payment receives an amount equal to the sum it would have received had no such deduction
or withholding been made.

 

b.           Payment
of Other Taxes by Borrowers. The Loan Parties shall timely pay to the relevant governmental authority in accordance with applicable
law, or at the option of Lender timely reimburse it for the payment of, any Other Taxes.

 

c.           Indemnification
by Borrowers. The Loan Parties shall jointly and severally indemnify each Lender, within 10 Banking Business Days after written
demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed on or attributable to amounts
payable under this Section) paid or payable by the applicable recipient of such payment or required to be withheld or deducted
from a payment to such recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate showing in reasonable
detail the calculation of the amount of such payment or liability delivered to the Loan Parties by a Lender shall be conclusive
absent manifest error.

 

    	21

    	 

    

 

d.           Status
of Lenders.

 

(i)          Any
Lender that is entitled to an exemption from, reduction of or withholding of any Tax with respect to payments made under any Loan
Document shall deliver to Borrowers, at the time or times reasonably requested by Borrowers, such properly completed and executed
documentation reasonably requested by Borrowers as will permit such payments to be made without withholding or at a reduced rate
of withholding. In addition, any Lender, if reasonably requested by Borrowers, shall deliver such other documentation prescribed
by applicable law or reasonably requested by Borrowers as will enable Borrowers to determine whether or not such Lender is subject
to backup withholding or information reporting requirements.

 

(ii)         Without
limiting the generality of the foregoing, if any Borrower is a US Person:

 

(1)         any
Lender that is a U.S. Person shall deliver to Borrowers on or prior to the date on which such Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of Borrowers), executed originals of IRS Form W-9 certifying
that such Lender is exempt from U.S. federal backup withholding tax;

 

(2)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrowers (in such number of copies as shall be
requested by Borrowers) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the reasonable request of Borrowers), whichever of the following is applicable: (I) an IRS Form W-8BEN
establishing an exemption from U.S. federal withholding Tax, (II) an IRS Form W-8ECI, (III) to the extent a Foreign Lender is not
the beneficial owner of a payment received under any Loan Document, executed originals of IRS Form W-8IMY, accompanied by IRS Form
W-8ECI, IRS Form W-8BEN, IRS Form W-9, and/or other certification documents from each beneficial owner, or (IV) executed originals
of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding
Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit Borrowers
to determine the withholding or deduction required to be made; and

 

    	22

    	 

    

 

(3)         if
a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Lender shall deliver to Borrowers at the time or times prescribed by law and at such time or
times reasonably requested by Borrowers such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i)
of the Code) and such additional documentation reasonably requested by Borrowers as may be necessary for Borrowers to comply with
their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or
to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

(iii)        Each
Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any material
respect, it shall update such form or certification or promptly notify Borrowers in writing of its legal inability to do so

 

e.           Treatment
of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this Section 2.9 (including by the payment of additional amounts pursuant
to this Section 2.9), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity
payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest paid by the relevant governmental authority with
respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party
the amount paid over pursuant to this paragraph (e) (plus any penalties, interest or other charges imposed by the relevant governmental
authority) in the event that such indemnified party is required to repay such refund to such governmental authority. Notwithstanding
anything to the contrary in this paragraph (e), in no event will the indemnified party be required to pay any amount to an indemnifying
party pursuant to this paragraph (e) the payment of which would place the indemnified party in a less favorable net after-Tax position
than the indemnified party would have been in if the indemnification payments or additional amounts giving rise to such refund
had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or
any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other person.

 

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3.           Security
for Loan

 

3.1           Collateral

 

The Obligations shall
be unsecured so long as no Collateral Triggering Event has occurred. Upon the occurrence of a Collateral Triggering Event, each
Loan Party shall at the election of Lender either (i) immediately grant a security interest in and Lien against all of its respective
assets, including, without limitation, a pledge of 100% of such Loan Party’s Equity Interests in each of its domestic Subsidiaries
and 66% of such Loan Party’s voting Equity Interests and 100% of such Loan Party’s non-voting Equity Interests in each
of its foreign Subsidiaries, or (ii) grant a security interest in and Lien against no less than $30,000,000 of the Loan Parties’
cash or cash equivalents, in each case, to secure the Obligations. At such time, the Loan Parties shall execute any and all Collateral
Documents Lender deems necessary to grant such security interests in the Collateral and shall take such actions as Lender requests
to permit Lender to perfect its security interests in the Collateral.

 

Each Loan Party acknowledges
its intention that the Loan is a “Related Debt” as defined in the Hedging Transaction Documents, and agrees that the
intention and interpretation of said interest rate management transaction is that the Loan is a “Related Debt” thereunder.
The priority of the interests in the Collateral securing the Loan and any Hedging Transactions shall be pari passu.

 

4.           Conditions
to Loan Disbursements

 

4.1           Conditions
to Initial Loan Disbursements

 

Lender’s obligation
to disburse any of the Loan on the Effective Date is expressly subject to, and shall not arise until all of the conditions set
forth below have been satisfied or waived. All of the documents referred to below must be in a form and substance acceptable to
Lender.

 

a.           All
of the Loan Documents and all other documents contemplated to be delivered to Lender prior to funding have been fully executed
and delivered to Lender.

 

b.           All
other conditions precedent provided in or contemplated by the Loan Documents or any other agreement or document have been performed.

 

c.           As
of the Effective Date, the following shall be true and correct: (i) all representations and warranties made by Borrowers in the
Loan Documents are true and correct in all material respects as of the date of such disbursement; and (ii) no Default or Event
of Default has occurred which has not been waived or timely cured.

 

d.           Lender
has received certificates of insurance pursuant to Section 6.8 Insurance reasonably acceptable to Lender.

 

e.           Lender
has received a certificate of the corporate secretary, an assistant secretary or equivalent partner, manager or member, as applicable,
of Borrowers, in a form and content reasonably acceptable to Lender, attaching or including as applicable: (i) certified copies
of all Organizational Documents of Borrowers, (ii) resolutions of the board of directors or managers, as applicable, and of the
shareholders or members, as applicable, of Borrowers authorizing and approving the execution, delivery and performance of each
Loan Document to which such Person is a party; (iii) good standing certificates or their equivalents from the respective states
of organization and the respective states in which the principal places of business of each is located, each to be dated a recent
date prior to the Effective Date; and (iv) signature and incumbency certificates of the Responsible Officers of Borrowers executing
the Loan Documents.

 

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f.            Lender
shall have received the initial funding fee referenced in Section 2.6 Funding Fee and all fees and other amounts due and
payable on or prior to the Effective Date, including, reimbursement or payment of all reasonable legal fees and expenses of Lender’s
counsel, and all reasonable out-of-pocket expenses required to be reimbursed or paid by Borrowers under the Loan Documents

 

All conditions precedent
set forth in this Agreement and any of the Loan Documents are for the sole benefit of Lender and may be waived unilaterally by
Lender.

 

4.2           Conditions
to Subsequent Loan Disbursements

 

After the Effective
Date, Lender’s obligation to make any disbursements of the Loan, and to issue, extend or renew any Letter of Credit, shall
be subject to the satisfaction or waiver of the following conditions precedent:

 

a.           Any
such disbursement, or the face amount of any such Letter of Credit to be issued, extended or renewed, as the case may be, shall
not exceed the Maximum Availability at the time of determination.

 

b.           All
other conditions precedent for subsequent disbursements provided in or contemplated by the Loan Documents or any other agreement
or document have been performed.

 

c.           At
the time of each such disbursement of the Loan, or the issuance, extension or renewal of such Letter of Credit, and also immediately
after giving effect thereto, (i) there shall exist no Default or Event of Default, and (ii) all representations and warranties
of the Loan Parties contained herein or in the other Loan Documents shall be true and correct in all material respects (except
that to the extent any such representation or warranty contains any materiality qualifier, such representation or warranty shall
be true and correct in all respects) with the same effect as though such representations and warranties had been made on and as
of the date of such disbursement of the Loan or issuance, extension or renewal of any Letter of Credit, except to the extent that
such representations and warranties expressly relate to an earlier specified date, in which case such representations and warranties
shall have been true and correct in all material respects (except that if any such representation or warranty contains any materiality
qualifier, such representation or warranty shall be true and correct in all respects) as of such earlier date.

 

d.           The
acceptance of the benefits of each disbursement of the Loan or issuance, extension or renewal of any Letter of Credit shall constitute
a representation and warranty by the Loan Parties to Lender that all of the applicable conditions specified in this Section 4.2
have been satisfied as of the times referred to in this Section.

 

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4.3           No
Default, Adverse Change, False or Misleading Statement

 

Lender’s obligation
to advance any funds at any time pursuant to this Agreement and the Promissory Note shall, at Lender’s sole discretion, terminate
upon the occurrence of any Event of Default or any event which could have a Material Adverse Effect. Upon the exercise of such
discretion, Lender shall be relieved of all further obligations under the Loan Documents.

 

5.           Representations
and Warranties

 

Each Loan Party as
to itself represents and warrants to Lender as follows:

 

5.1           Organization
and Qualification

 

Black Diamond is a
corporation duly organized and existing in good standing under the laws of the State of Delaware, and that it is qualified and
in good standing as a foreign corporation in the States of Connecticut and Utah.

 

BDEL is a corporation
duly organized and existing in good standing under the laws of the State of Delaware, and that it is qualified and in good standing
as a foreign corporation in the State of Utah.

 

BD-Retail is a corporation
duly organized and existing in good standing under the laws of the State of Delaware, and that it is qualified and in good standing
as a foreign corporation in the State of Utah.

 

Each of Everest, BDNA,
POC, PIEPS Service and BDEH is a limited liability company duly organized and existing in good standing under the laws of the State
of Delaware, and that, if required, it is qualified and in good standing as a foreign limited liability company in the State of
Utah.

 

Each other Loan Party not listed above is
a corporation or limited liability company, as applicable, duly organized and validly existing in good standing under the laws
of the State of its organization.

 

Each Loan Party is
duly qualified to do business and is in good standing as a foreign corporation or limited liability company, as applicable, in
each jurisdiction where the conduct of its business requires qualification, except where the failure to be so qualified would not
reasonably be expected to have a Material Adverse Effect.

 

Each Loan Party has
the requisite power and authority to own its property and to conduct the business in which it engages and to enter into and perform
its Obligations under the Loan Documents.

 

Each Loan Party has
delivered to Lender or Lender’s counsel accurate and complete copies of its Organizational Documents which are operative
and in effect as of the Effective Date.

 

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5.2           Authorization

 

The execution, delivery
and performance by such Loan Party of the Loan Documents and the transactions contemplated thereby have been duly authorized by
all necessary corporate or limited liability company action on the part of such Loan Party and are not inconsistent with such Loan
Party’s Organizational Documents or any resolution of the shareholders or board of directors or members or managers, as applicable,
of such Loan Party, do not and will not contravene any provision of, or constitute a default under, any indenture, mortgage, contract,
or other instrument to which such Loan Party is a party or by which it is bound, where such contravention or default would reasonably
be expected to have a Material Adverse Effect, and that upon execution and delivery thereof, the Loan Documents will constitute
legal, valid, and binding agreements and Obligations of such Loan Party, enforceable in accordance with their respective terms
except as enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors generally and limitations on
the availability of equitable remedies.

 

5.3           Corporate
Relationships

 

The shareholders or
members, as applicable, of each Loan Party (other than Black Diamond) and their respective number and percentage of issued and
outstanding Equity Interests in each Loan Party are as set forth on Schedule 5.3 hereto.

 

5.4           No
Governmental Approval Necessary

 

No consent by, approval
of, giving of notice to, registration with, or taking of any other action with respect to or by any federal, state, or local governmental
authority or organization is required for such Loan Party’s execution, delivery, or performance of the Loan Documents, except
where any failure to so obtain such consent or approval or take any other action could not reasonably be expected to have a Material
Adverse Effect.

 

5.5           Accuracy
of Financial Statements

 

The Consolidated audited
financial statements of Black Diamond and its Subsidiaries heretofore delivered to Lender have been prepared in accordance with
Accounting Standards.

 

The Consolidated unaudited
financial statements of Black Diamond and its Subsidiaries heretofore delivered to Lender fairly present in all material respects
Black Diamond’s and its Subsidiaries’ financial condition as of the date thereof and the results of its operations
for the period or periods covered thereby and are consistent in all material respects with other financial statements previously
delivered to Lender.

 

Since the dates of the most recent Consolidated
audited and Consolidated unaudited financial statements delivered to Lender, there has been no event which would have a Material
Adverse Effect on the financial condition of Black Diamond and its Subsidiaries, taken as a whole.

 

    	27

    	 

    

 

5.6           No
Pending or Threatened Litigation

 

Except as disclosed
in Black Diamond’s periodic filings with the Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934, as amended, there are no demands, judgments, actions, suits, orders, decrees, arbitrations or proceedings pending or, to
such Loan Party’s knowledge, threatened against or affecting any of the Loan Parties in any court or before any governmental
commission, board, or authority which, if adversely determined, would have a Material Adverse Effect.

 

5.7           Full
and Accurate Disclosure

 

This Agreement, the
financial statements referred to herein, any loan application submitted to Lender, and all other statements furnished by the Loan
Parties to Lender under any of the Loan Documents or in connection herewith contain no untrue statement of a material fact and
do not omit to state a material fact necessary to make the statements contained therein or herein not misleading in any material
respect. Each Loan Party has not failed to disclose in writing to Lender any fact that would have a Material Adverse Effect.

 

5.8           Compliance
with ERISA

 

Each Loan Party is
in compliance in all material respects with all applicable provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”),
as amended, and the regulations and published interpretations thereunder. Neither a Reportable Event as set forth in Section 4043
of ERISA or the regulations thereunder (“Reportable Event”) nor a prohibited transaction as set forth in Section
406 of ERISA or Section 4975 of the Internal Revenue Code of 1986, as amended, has occurred and is continuing with respect to any
employee benefit plan (other than a multiemployer pension plan as defined under Sections 3(37) or 4001(a)(3) of ERISA or a “Taft
Hartley” employee welfare benefit plan established, maintained, or to which contributions have been made by such Loan Party
or any trade or business (whether or not incorporated) which together with such Loan Party would be treated as a single employer
under Section 4001 of ERISA (“ERISA Affiliate”) for its employees which is covered by Title I or Title IV of
ERISA (“Plan”); no notice of intent to terminate a Plan has been filed nor has any Plan been terminated which
is subject to Title IV of ERISA; no circumstances exist that constitute grounds under Section 4042 of ERISA entitling the Pension
Benefit Guaranty Corporation (“PBGC”) to institute proceedings to terminate, or appoint a trustee to administer
a Plan, nor has the PBGC instituted any such proceedings; neither any Loan Party nor any ERISA Affiliate has completely or partially
withdrawn under Section 4201 or 4204 of ERISA from any Plan described in Section 4001(a)(3) of ERISA which covers any employees
of the Loan Parties or any ERISA Affiliate (“Multi-employer Plan”); each Loan Party and each ERISA Affiliate has met
its minimum funding requirements under ERISA with respect to all of its Plans and the present fair market value of all Plan assets
equals or exceeds the present value of all vested benefits under or all claims reasonably anticipated against each Plan, as determined
on the most recent valuation date of the Plan and in accordance with the provisions of ERISA and the regulations thereunder and
the applicable statements of the Financial Accounting Standards Board for calculating the potential liability of any Loan Party
or any ERISA Affiliate under any Plan; neither any Loan Party nor any ERISA Affiliate has incurred any liability to the PBGC (except
payment of premiums, which is current) under ERISA.

 

    	28

    	 

    

 

Each Loan Party, each
ERISA Affiliate and each group health plan (as defined in ERISA Section 733) sponsored by the Loan Parties and each ERISA Affiliate,
or in which any Loan Party or any ERISA Affiliate is a participating employer, are in compliance with, have satisfied and continue
to satisfy (to the extent applicable) all requirements for continuation of group health coverage under Section 4980B of the Internal
Revenue Code and Sections 601 et seq. of ERISA, and are in compliance with, have satisfied and continue to satisfy Part 7 of ERISA
and all corresponding and similar state laws relating to portability, access and renewability of group health benefits and other
requirements included in Part 7.

 

5.9           Compliance
with USA Patriot Act

 

No Loan Party is subject
to any law, regulation, or list of any government agency (including, without limitation, the U.S. Office of Foreign Asset Control
list) that prohibits or limits Lender from making any advance or extension of credit to the Loan Parties or from otherwise conducting
business with the Loan Parties.

 

5.10         Compliance
with All Other Applicable Law

 

Each Loan Party has
complied in all material respects with all applicable Laws, except where the failure to so comply could not reasonably be expected
to have a Material Adverse Effect.

 

5.11         Environmental
Representations and Warranties

 

Except as set forth
on Schedule 5.11, no Hazardous Materials are now located on, in, or under the Real Property, nor is there any Environmental Condition
on, in, or under the Real Property and neither the Loan Parties nor, to the Loan Parties’ knowledge, after due inquiry and
investigation, any other Person has ever caused or permitted any Hazardous Materials to be placed, held, used, stored, released,
generated, located or disposed of on, in or under the Real Property, or any part thereof, nor caused or allowed an Environmental
Condition to exist on, in or under the Real Property, except in the ordinary course of the Loan Parties’ businesses under
conditions that are generally recognized to be appropriate and safe and that are in compliance with all applicable Environmental
Health and Safety Laws. No investigation, administrative order, consent order and agreement, litigation or settlement with respect
to Hazardous Materials and/or an Environmental Condition is proposed, threatened, anticipated or in existence with respect to the
Real Property.

 

Except as set forth
on Schedule 5.11, the Loan Parties have no knowledge of the existence of any report, document, or other evidence of any Hazardous
Materials or Environmental Condition with respect to the Real Property.

 

5.12         Operation
of Business

 

Except as set forth
on Schedule 5.12, to their knowledge, each Loan Party possesses all material licenses, permits, franchises, patents, copyrights,
trademarks, and trade names, or rights thereto, to conduct its business substantially as now conducted and as presently proposed
to be conducted, and to their knowledge, the Loan Parties are not in violation of any valid rights of others which would have a
Material Adverse Effect on the Loan Parties with respect to any of the foregoing.

 

    	29

    	 

    

 

5.13         Payment
of Taxes

 

Each Loan Party has
filed all material tax returns (federal, state, and local) required to be filed and has paid all material taxes, assessments, and
governmental charges and levies, including interest and penalties, on such Loan Party’s assets, business and income, except
such as are being contested in good faith by proper proceedings and as to which adequate reserves are maintained.

 

5.14         Solvency

 

Both before and immediately
after the consummation of all transactions contemplated by the Loan Documents, and immediately after the making of each advance
on the Loan thereafter, and after giving effect to the application of the proceeds of the Loan, (a) the fair value of the assets
of each Loan Party will exceed its Debts, (b) the present fair saleable value of the assets of each Loan Party will be greater
than the amount that will be required to pay the probable liability of its Debts, as such Debts can reasonably be expected to become
absolute and matured, (c) each Loan Party will be able to pay its Debts as such Debts can reasonably be expected to become absolute
and matured, and (d) each Loan Party will not have unreasonably small capital with which to conduct its business and its business
as is proposed, contemplated or about to be conducted.

 

5.15         Employee
Matters

 

Except as set forth
on Schedule 5.15 hereto, (a) none of the Loan Parties are subject to any collective bargaining agreement, (b) no petition for certification
or union election is pending with respect to the employees of the Loan Parties, and to the knowledge of the Loan Parties, no union
or collective bargaining unit has sought such certificates or recognition with respect to the employees of any Loan Party and (c)
there are no strikes, slowdowns, work stoppages or controversies pending or, to the knowledge of the Loan Parties, threatened between
any Loan Party and their employees, other than employee grievances arising in the ordinary course of business which could not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

5.16         Brokerage

 

There are no rights
to or claims for broker’s, finder’s, due diligence, structuring, debt or equity placement fees, commissions, or similar
compensation payable with respect to the consummation of the transactions contemplated in the Loan Documents.

 

6.           Covenants

 

The Loan Parties make
the following agreements and covenants, which shall continue so long as this Agreement is in effect and so long as the Loan Parties
are indebted to Lender for the Obligations.

 

    	30

    	 

    

 

6.1           Use
of Proceeds

 

The Loan Parties shall
use the proceeds of the Loan for general corporate purposes, including funds for working capital, capital expenditures, loans and/or
investments in wholly-owned foreign Subsidiaries and the issuance of letters of credit.

 

The Loan Parties shall
not, directly or indirectly, use any of the proceeds of the Loan for the purpose of purchasing or carrying any margin stock within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System, or to extend credit to any Person for the
purpose of purchasing or carrying any such margin stock or for any purpose which violates, or is inconsistent with, Regulation
X of said Board of Governors, or for any other purpose not permitted by Section 7 of the Securities Exchange Act of 1934, as amended,
or by any of the rules and regulations respecting the extension of credit promulgated thereunder.

 

6.2           Continued
Compliance with ERISA

 

The Loan Parties covenant
that, with respect to all Plans (as defined in Section 5.8 Compliance with ERISA) which the Loan Parties or any ERISA Affiliate
currently maintains or to which the Loan Parties or any ERISA Affiliate is a sponsoring or participating employer, fiduciary, party
in interest or disqualified person or which the Loan Parties or any ERISA Affiliate may hereafter adopt, the Loan Parties and each
ERISA Affiliate shall continue to comply in all material respects with all applicable provisions of the Internal Revenue Code and
ERISA and with all representations made in Section 5.8 Compliance with ERISA, including, without limitation, conformance
with all notice and reporting requirements, funding standards, prohibited transaction rules, multi-employer plan rules, necessary
reserve requirements, and health care continuation, coverage and portability requirements, except where the failure to so comply
would not have a Material Adverse Effect on Black Diamond and its Subsidiaries, taken as a whole.

 

6.3           Continued
Compliance with USA Patriot Act

 

The Loan Parties shall
(a) not be or become subject at any time to any law, regulation, or list of any government agency (including, without limitation,
the U.S. Office of Foreign Asset Control list) that prohibits or limits Lender from making any advance or extension of credit to
the Loan Parties or from otherwise conducting business with the Loan Parties, and (b) provide documentary and other evidence of
the Loan Parties’ identity as may be requested by Lender at any time to enable Lender to verify the Loan Parties’ identity
or to comply with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001,
31 U.S.C. Section 5318.

 

6.4           Continued
Compliance with Applicable Law

 

Each Loan Party shall
conduct its business in a lawful manner and in material compliance with all applicable Laws; shall maintain in good standing all
licenses and organizational or other qualifications reasonably necessary to its business and existence; and shall not engage in
any business not authorized by and not in accordance with its Organizational Documents and other governing documents.

 

    	31

    	 

    

 

6.5           Prior
Consent for Amendment or Change

 

Except as set forth
in Schedule 6.5 or changes that would not have any material adverse effect on Lender, the Loan Parties shall not modify, amend,
waive, or otherwise alter, or fail to enforce, their respective Organizational Documents or other governing documents without Lender’s
prior written consent.

 

6.6           Payment
of Taxes and Obligations

 

The Loan Parties shall
pay when due all material taxes, assessments, and governmental charges and levies on the Loan Parties’ assets, business,
and income, and all material obligations of the Loan Parties of whatever nature, except such as are being contested in good faith
by proper proceedings and as to which adequate reserves are maintained.

 

6.7           Financial
Statements and Reports

 

The Loan Parties shall
provide Lender with the financial statements and reports described below. Audited financial statements and reports shall be prepared
in accordance with Accounting Standards. Unaudited financial statements and reports shall fairly present in all material respects
the Loan Parties’ financial condition as of the date thereof and the results of the Loan Parties’ operations for the
period or periods covered thereby and shall be consistent in all material respects with other financial statements previously delivered
to Lender in connection with this Loan.

 

Until requested otherwise
by Lender, the Loan Parties shall provide the following financial statements and reports to Lender:

 

a.           Annual
audited Consolidated Financial Statements of Black Diamond for each Fiscal Year, to be delivered to Lender within 105 days after
such Fiscal Year End. Borrowers shall also submit to Lender copies of any management letters or other reports submitted by independent
certified public accountants in connection with the examination of the financial statements of Borrowers made by such accountants.

 

b.           Quarterly
Consolidated Financial Statements of Black Diamond for each fiscal quarter of Black Diamond, to be delivered to Lender within 45
days after the end of the fiscal quarter. The quarterly financial statements shall include a certification by a Responsible Officer
of Black Diamond that the quarterly financial statements fairly present Borrowers’ financial condition in all material respects
as of the date thereof and the results of the operations of the period covered thereby and are consistent, except as disclosed
in the footnotes thereto, in all material respects with other financial statements previously delivered to Lender.

 

c.           Together
with each of the annual and quarterly Consolidated Financial Statements required to be delivered to Lender pursuant to the provisions
of paragraphs (a) and (b) above, Borrowers shall submit to Lender a Compliance Certificate certifying that Borrowers are in compliance
with all terms and conditions of this Agreement, including compliance with the financial covenants provided in Section 6.14 Financial
Covenants. Each Compliance Certificate shall include the data and calculations supporting all financial covenants, whether
in compliance or not, and shall be signed by a Responsible Officer of Black Diamond.

 

    	32

    	 

    

 

d.           Financial
forecasts for each Fiscal Year, with projections broken down by each fiscal quarter, to be delivered to Lender within 60 days after
each Fiscal Year End.

 

e.           Brokerage
statements of the Loan Parties covering the current period in respect of all brokerage accounts owned by the Loan Parties, to be
delivered to Lender within 10 days after the end of each fiscal quarter of Black Diamond.

 

f.            Promptly
after discovery thereof, the Loan Parties will notify Lender of any breach of any covenants contained in Section 6 Covenants
and of the occurrence of any Default or Event of Default hereunder.

 

g.           The
Loan Parties will furnish to Lender as soon as available copies of any other information pertinent to any provision of this Agreement
or to the Loan Parties’ business which Lender may reasonably request.

 

6.8           Insurance

 

The Loan Parties shall
maintain insurance with financially sound and reputable insurance companies or associations in such amounts and covering such risks
as are usually carried by companies engaged in the same or a similar business and similarly situated, which insurance may provide
for reasonable deductibility from coverage thereof.

 

6.9           Inspection

 

The Loan Parties shall
at any reasonable time during normal business hours and from time to time permit Lender or any representative of Lender to examine
and make copies of and abstracts from the records and books of account of, and visit and inspect the properties and assets of,
the Loan Parties, and to discuss the affairs, finances, and accounts of the Loan Parties with any of the Loan Parties’ officers
and directors and with the Loan Parties’ independent accountants; provided, however, that Lender shall take reasonable steps
to ensure the confidentiality of any documents or information that may be disclosed pursuant to this Section 6.9, including maintaining
the confidentiality thereof as required by laws, rules and regulations, including the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended.

 

6.10         Operation
of Business

 

The Loan Parties shall
maintain all material licenses, permits, franchises, patents, copyrights, trademarks, and trade names, or rights thereto, that
the Loan Parties reasonably determine are necessary in the operation of their business. The Loan Parties shall continue to engage
in a Permitted Business.

 

    	33

    	 

    

 

6.11         Maintenance
of Records and Properties

 

The Loan Parties shall
keep adequate records and books of account in which complete entries will be made in accordance with Accounting Standards. The
Loan Parties shall maintain, keep and preserve all of their material properties (tangible and intangible) necessary or useful in
the proper conduct of its business in good working order and condition, ordinary wear and tear excepted. Notwithstanding anything
in this Agreement to the contrary, the Loan Parties shall be free to close any of their respective offices or open any offices
as they, in their reasonable business judgment, determine is appropriate.

 

6.12         Notice
of Claims

 

The Loan Parties shall
promptly notify Lender in writing of all actions, suits or proceedings filed against or affecting the Loan Parties in any court
or before any governmental commission, board, or authority which, if adversely determined, would have a Material Adverse Effect.

 

6.13         Environmental
Covenants

 

The Loan Parties covenant
that they will:

 

a.           Not
permit the presence, use, disposal, storage or release of any Hazardous Materials on, in, or under the Real Property, except in
the ordinary course of the Loan Parties’ business under conditions that are generally recognized to be appropriate and safe
and that are in compliance with all applicable Environmental Health and Safety Laws.

 

b.           Not
permit any substance, activity or Environmental Condition on, in, under or affecting the Real Property which is in violation of
any Environmental Health and Safety Laws.

 

c.           Comply
in all material respects with the provisions of all Environmental Health and Safety Laws.

 

d.           Notify
Lender promptly of any discharge of Hazardous Materials, Environmental Condition, or environmental complaint or notice received
from any governmental agency or any other party.

 

e.           Upon
any discharge of Hazardous Materials or upon the occurrence of any Environmental Condition, promptly contain and remediate the
same in compliance with all Environmental Health and Safety Laws, promptly pay any fine or penalty assessed in connection therewith,
and promptly notify Lender of such events.

 

f.            Permit
Lender to inspect the Real Property for Hazardous Materials and Environmental Conditions, and to inspect all books, correspondence,
and records pertaining thereto, and upon the occurrence and continuation of an Event of Default, to conduct tests thereon.

 

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g.           Provide
a Phase 1 report (including all validated and unvalidated data generated for such reports) of a qualified independent environmental
engineer reasonably acceptable to Lender, reasonably satisfactory to Lender in scope, form, and content, and provide to Lender
such other and further assurances reasonably satisfactory to Lender, that the Loan Parties are in compliance with these covenants
concerning Hazardous Materials and Environmental Conditions, and that any past violation thereof has been corrected in compliance
with all applicable Environmental Health and Safety Laws. Lender shall be entitled to one report every two years at the Loan Parties’
expense if Lender has a good faith reason to believe that there is an Environmental Condition affecting the Real Property. Upon
the occurrence of a Collateral Triggering Event, such report shall be provided to Lender from time to time upon request of Lender
and at the Loan Parties’ expense.

 

h.           Immediately
advise Lender of any additional, supplemental, new, or other information concerning any Hazardous Materials or Environmental Conditions
relating to the Real Property.

 

6.14         Financial
Covenants

 

Except as otherwise
provided herein, each of the accounting terms used in this Section 6.14 shall have the meanings used in accordance with Accounting
Standards. Each of the financial covenants listed below shall be tested on a quarterly basis.

 

a.           Minimum
EBITDA. During a Minimum EBITDA Period, Black Diamond and its Subsidiaries, on a Consolidated basis, shall maintain Trailing
Twelve Month EBITDA of not less than (i) $6,000,000 for each fiscal quarter ending on or prior to December 31, 2015 and $7,000,000
for each fiscal quarter thereafter, in each case, to the extent prior to the Permanent Accordion Increase Date and (ii) $11,000,000
for the fiscal quarter immediately prior to, and for each fiscal quarter following, the Permanent Accordion Increase Date. EBITDA
shall be adjusted on a pro forma basis for future Permitted Acquisitions, such calculations to be limited to pro forma statements
filed with the Securities Exchange Commission, or if not filed with the Securities Exchange Commission, then subject to reasonable
approval by Lender.

 

b.           Net
Worth. Black Diamond and its Subsidiaries, on a Consolidated basis, will maintain a Net Worth, measured at each reporting period
set forth in Section 6.7 Financial Statements and Reports, of not less than $240,000,000 through the Fiscal Year End for
2014, plus an increase of $2,000,000 during each Fiscal Year thereafter.

 

c.           Asset
Coverage. Black Diamond and its Subsidiaries, on a Consolidated basis, measured at each reporting period set forth in Section
6.7 Financial Statements and Reports, shall maintain a positive amount of Asset Coverage. Asset Coverage shall be adjusted
on a pro forma basis for future Permitted Acquisitions, such calculations to be limited to pro forma statements filed with the
Securities Exchange Commission, or if not filed with the Securities Exchange Commission, then subject to reasonable approval by
Lender.

 

d.           Maximum
Capital Expenditures. Black Diamond and its Subsidiaries, on a Consolidated basis, will not make any Capital Expenditures if,
after giving effect thereto, the aggregate of all Capital Expenditures made by Borrowers, on a Consolidated basis, would exceed
$6,500,000 in any Fiscal Year; provided, however, that if during any Fiscal Year the amount of Capital Expenditures permitted for
that year is not so utilized, such unutilized amount may be added to the maximum Capital Expenditures permitted under this Section
6.14d during the next succeeding Fiscal Year, but in no event shall the maximum Capital Expenditures during any Fiscal Year include
unused amounts from any year prior to the immediately preceding Fiscal Year.

 

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6.15         Negative
Pledge

 

The Loan Parties will
not, and will not allow any non-Loan Party Subsidiary to, create, incur, assume, or suffer to exist any mortgage, deed of trust,
pledge, lien, security interest, hypothecation, assignment, or other preferential arrangement, charge, or encumbrance (including,
without limitation, any conditional sale, other title retention agreement, or finance lease) of any nature, upon or with respect
to any of its domestic or foreign properties or assets, now owned or hereafter acquired, or sign or file, under the Uniform Commercial
Code of any jurisdiction, a financing statement under which any Loan Party appears as debtor, or sign any security agreement authorizing
any secured party thereunder to file such financing statement, except (all of the following, collectively, “Permitted Liens”)
(a) those contemplated by this Agreement; (b) liens arising in the ordinary course of business (such as liens of carriers, warehousemen,
mechanics, repairmen, and materialmen) and other similar liens imposed by law for sums not yet due and payable or, if due and payable,
those being contested in good faith by appropriate proceedings and for which appropriate reserves are maintained in accordance
with Accounting Standards; (c) easements, rights of way, restrictions, minor defects or irregularities in title or other similar
liens which alone or in the aggregate do not interfere in any material way with the ordinary conduct of the business of the Loan
Parties; (d) liens for taxes and assessments not yet due and payable or, if due and payable, those being contested in good faith
by appropriate proceedings and for which appropriate reserves are maintained in accordance with Accounting Standards; (e) Permitted
Liens set forth on Schedule 6.15 hereto; (f) liens securing Debt not to exceed an aggregate outstanding amount of $3,000,000, except
as authorized by prior written consent of Lender; (g) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, employment and unemployment insurance and other social security legislation, other than any lien imposed
by ERISA; (h) deposits to secure the performance of bids, trade contracts and leases (other than Debt), statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like nature, or arising as a result of process payments under
government contracts to the extent required or imposed by applicable laws, all to the extent incurred in the ordinary course of
business; and (i) liens granted by a Loan Party in favor of a licensor under any intellectual property license agreement entered
into by such Loan Party, as licensee, in the ordinary course of such Loan Party’s business; provided, that such liens
do not encumber any property other than the intellectual property licensed by such Loan Party pursuant to the applicable license
agreement and the property manufactured or sold by such Borrower utilizing such intellectual property.

 

The Loan Parties will
not, and will not allow any non-Loan Party Subsidiary to, enter into any agreement with any third party (each a “Negative
Pledge”) whereby any Loan Party or such Subsidiary is prohibited from creating, incurring, assuming or suffering to exist
any mortgage, deed of trust, pledge, lien, security interest, hypothecation, assignment, deposit arrangement, or other preferential
arrangement, charge, or encumbrance (including, without limitation, any conditional sale, other title retention agreement, or finance
lease) of any nature, upon or with respect to any of its properties or assets, now owned or hereafter acquired, or from signing
or filing, under the Uniform Commercial Code of any jurisdiction, a financing statement under which the Loan Parties or any of
their Subsidiaries appear as debtor, or signing any security agreement authorizing any secured party thereunder to file such financing
statement, or enter into any agreement with any third party whereby the Loan Parties’ or such non-Loan Party Subsidiary’s
rights to do any of the foregoing are limited or restricted in any way, other than standard and customary Negative Pledge provisions
in property acquired with the proceeds of any capital lease or purchase money financing that extend and apply only to such acquired
property.

 

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6.16         Restriction
on Debt

 

The Loan Parties will
not, and will not allow any non-Loan Party Subsidiary to, create, incur, assume, or suffer to exist any Debt except as permitted
by this Section 6.16.

 

Permitted exceptions
to this covenant are: (a) the Loan; (b) Intercompany Loans; (c) obligations under Hedging Transaction Documents with Lender or
its affiliates; (d) Debt, not to exceed an aggregate outstanding principal amount of $3,000,000, which amount includes secured
debt as authorized under Sections 6.15(e) and (f) of this Agreement; (e) the Subordinated Debt; (f) any foreign currency or interest
rate hedge in the ordinary course of business; (g) Existing Debt; and (h) contingent obligations of (A) the Loan Parties or any
non-Loan Party Subsidiaries in respect of Debt otherwise permitted hereunder of the Loan Parties or any non-Loan Party Subsidiaries,
and (B) the Loan Parties or any non-Loan Party Subsidiaries for customary and commercially reasonable indemnification obligations
incurred in good faith in connection with any Permitted Acquisitions or otherwise in connection with contractual obligations entered
into in the ordinary course of business.

 

6.17         Mergers,
Consolidations, Acquisitions, Sale of Assets

 

None of the Loan Parties
shall wind up, liquidate, or dissolve itself, reorganize, merge, or consolidate into, acquire, or convey, sell, assign, transfer,
lease, or otherwise dispose of (whether in one transaction or a series of transactions) all or substantially all of its assets
(whether now owned or hereafter acquired) to any Person except in connection with Permitted Acquisitions.

 

“Permitted Acquisitions”
means mergers, consolidations or acquisitions meeting the following requirements:

 

a.           At
the time of completion of the Permitted Acquisition, no Default or Event of Default which has not been waived or timely cured,
exists.

 

b.           Prior
to closing of the Permitted Acquisition, Borrowers shall present information concerning the business conducted by the potential
Permitted Acquisition to Lender and Lender shall respond to the Loan Parties as to whether or not the potential Permitted Acquisition
is deemed to be a Permitted Business within five Banking Business Days.

 

c.           Prior
to the closing of the Permitted Acquisition, the Loan Parties shall have provided Lender with a pro forma compliance certificate
in the form provided in Section 6.7 Financial Statements and Reports, showing that upon completion of the Permitted Acquisition,
the Loan Parties will be in compliance with the financial covenants provided in Section 6.14 Financial Covenants. The method
and information used in the calculation of the financial covenants for the pro forma compliance certificate shall be reasonably
acceptable to Lender.

 

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d.           If
the Permitted Acquisition is a merger or a consolidation, either (i) one of the Loan Parties will be the surviving entity, (ii)
the acquired company will become a majority-owned Subsidiary of one of the Loan Parties, or (iii) the Loan Parties will comply
with Section 6.17f.

 

e.           If
the Permitted Acquisition is an acquisition of ownership interests in a company, the acquired company will be a majority-owned
Subsidiary of one of the Loan Parties.

 

f.            If
the Permitted Acquisition is an acquisition of a majority of the ownership interests in a company or is a merger where a Borrower
is not the surviving company and the company is not a foreign Subsidiary, the Loan Parties must comply with Section 6.21 Subsidiaries.

 

g.           The
aggregate amount of consideration paid by the Loan Parties for all Permitted Acquisitions shall not exceed $10,000,000.

 

6.18         Joint
Ventures and Investments

 

No Loan Party
will make any capital contribution to or investment in, or purchase any stock or other Equity Interest of, any other Person, except
in connection with Permitted Acquisitions or any joint venture meeting the following requirements (the “Permitted Joint Ventures”):

 

a.           At
the time of completion of the proposed Permitted Joint Venture, no Default or Event of Default which has not been waived or timely
cured, exists.

 

b.           At
no time shall the Loan Parties own less than 45% of the interests in the proposed Permitted Joint Venture. If at any time the Loan
Parties own more than 50% of the interests in the proposed Permitted Joint Venture, such Permitted Joint Venture must comply with
Section 6.21 Subsidiaries.

 

c.           At
all times the Loan Parties shall have control of the proposed Permitted Joint Venture. For purposes of this Section control means
the Loan Parties have a “financial controlling interest” determined in accordance with Accounting Standards.

 

d.           The
aggregate amount of consideration paid by the Loan Parties for the proposed Permitted Joint Venture and all other Permitted Joint
Ventures during the preceding three year period shall not exceed $3,000,000. 

 

6.19         Change
in Control

 

a.           No
Change of Control of Black Diamond shall occur.

 

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“Change
of Control” means (i) the acquisition by any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under such Act) of 40% or more of the outstanding common stock of Black Diamond, other than a “person” or “group”
that includes Warren B. Kanders; or (ii) during any 24-month period individuals who at the beginning of such period constituted
the Board of Directors of Black Diamond (together with any new directors whose election by the Board of Directors or whose nomination
for election by the shareholders of Black Diamond was approved by a vote of a majority of the directors who either were directors
at the beginning of such period or whose election or nomination was previously so approved) ceasing for any reason to constitute
a majority of the Board of Directors of Black Diamond.

 

b.           Black
Diamond shall own, either directly or indirectly, all of the equity interests of each of the other Loan Parties.

 

6.20         Loans
and Distributions

 

The Loan Parties shall
not (i) declare or pay any dividends, (ii) purchase, redeem, retire or otherwise acquire for value any of its Equity Interests
now or hereafter outstanding, (iii) make any distribution of assets to its stockholders, investors, or equity holders, whether
in cash, assets, or in obligations of any Loan Party, (iv) allocate or otherwise set apart any sum for the payment of any dividend
or distribution on, or for the purchase, redemption, or retirement of any shares of its Equity Interests, or (v) make any other
distribution by reduction of capital or otherwise in respect of any shares of its Equity Interests; provided, however the Loan
Parties may make dividends, redemptions, repurchases and distributions as described in the foregoing clauses (i) through (v): (a)
so long as the Loan Parties are in pro forma compliance with the financial covenants set forth in Section 6.14 Financial Covenants,
and (b) Borrowers do not draw on the Revolving Loan to make such dividends, redemptions, repurchases and distributions unless Black
Diamond demonstrates to Lender to Lender’s satisfaction (which determination shall be in Lender’s sole discretion)
that such use of the Revolving Loan will not impair Black Diamond’s liquidity and availability under the Revolving Loan for
funding Capital Expenditures, seasonal working capital and other corporate obligations and operational cash requirements.

 

The Loan Parties shall
not make any loans or pay any advances of any nature whatsoever to any Person, except advances in the ordinary course of business
to (i) vendors, suppliers, and contractors, (ii) employees, not to exceed $500,000 in the aggregate at any one time outstanding,
and (iii) Intercompany Loans. The Loan Parties shall notify Lender in writing within ten days after amending or creating a new
Intercompany Loan, which amendment or new Intercompany Loan agreement shall be substantially in the form of Exhibit C.

 

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6.21         Subsidiaries

 

Any Loan Party may
directly or indirectly create or form any Subsidiaries (other than pursuant to Permitted Acquisitions, which are governed by Section
6.17 Mergers, Consolidations, Acquisitions, Sale of Assets and Permitted Joint Ventures, which are governed by Section 6.18
Joint Ventures) as long as such Loan Party and the other specified parties comply with the remainder of this Section. If
any Loan Party, directly or indirectly, creates, forms or acquires any domestic Subsidiary on or after the Effective Date, such
Loan Party will, and will cause such Subsidiary to, not more than 30 days after the consummation of the creation, formation or
acquisition of such Subsidiary, (a) deliver to Lender a summary providing a reasonably detailed description of such Subsidiary
and the current terms and conditions of the proposed creation, formation or acquisition of such Subsidiary in writing, and (b)
cause such Subsidiary to (i) join in the obligations of Borrowers under the Loan Documents as a co-borrower by executing a
Joinder Agreement, and (ii) deliver such other documentation and take such other actions as reasonably required by Lender in connection
with the foregoing. The Loan Parties hereby consent and agree to the addition of any such Subsidiary as an additional Borrower
hereunder through the execution of the Joinder Agreement.

 

6.22         Subordinated
Debt

 

The Loan Parties represent
and warrant to Lender and hereby confirm that each of the Subordination Agreements attached hereto as Exhibit E remain in full
force and effect as of the Effective Date without any amendment or modification thereto.

 

Payments of principal
under the Subordinated Debt may be made only: (a) so long as the Loan Parties are in pro forma compliance with the financial covenants
set forth in Section 6.14 Financial Covenants and (b) Borrowers do not draw on the Revolving Loan to repay such Subordinated
Debt unless Black Diamond demonstrates to Lender to Lender’s satisfaction (which determination shall be in Lender’s
sole discretion) that such use of the Revolving Loan will not impair Black Diamond’s liquidity and availability under the
Revolving Loan for funding Capital Expenditures, seasonal working capital and other corporate obligations and operational cash
requirements.

 

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6.23         Prior
Consent for Name or Organizational Change

 

The Loan Parties shall
not change their name or convert to a different form of legal entity without Lender’s prior written consent, which such consent
shall not be unreasonably withheld, delayed or conditioned.

 

6.24         Maintenance
of Existence

 

Each Loan Party shall
maintain and preserve (a) its existence and good standing in the jurisdiction of its organization, and (b) its qualification and
good standing in each jurisdiction where the nature of its business makes such qualification necessary unless such failure under
this clause (b) would not reasonably be expected to have a Material Adverse Effect.

 

6.25         Further
Assurances

 

Each Loan Party shall
take such actions as Lender may reasonably request from time to time (i) including the executing and delivery of an amendment to
this Agreement in form substance reasonably satisfactory to Lender to effectuate the increase of the Revolving Loan under the foregoing
clause following the Permanent Accordion Increase Date and (ii) to ensure that the Obligations of each Loan Party hereunder and
under the other Loan Documents are secured by the Collateral upon and following a Collateral Triggering Event.

 

6.26         Collateral
Triggering Event

 

Upon the happening
of any Collateral Triggering Event, the Loan Parties shall grant Lender a security interest in and Lien against their respective
property in support of the Obligations pursuant to and in accordance with Section 3.1.

 

6.27         Creation
of Trusts; Transfers to Trusts 

 

The Loan Parties shall
not create as settlor any trust, or transfer any assets into any trust, without giving written notice to Lender at least ninety
(90) days prior to such creation or transfer. Such notice shall describe in reasonable detail the trust to be created and/or the
asset transfer to be made. Failure by any such settlor to provide that notice shall be an Event of Default under the Loan Documents.

 

The Loan Parties shall
not create as settlor any actual or purported spendthrift trust, asset protection trust or any other trust intended by its terms
or purpose (or having the effect) to protect assets from creditors or to limit the rights of existing or future creditors (an “Asset
Protection Trust”) without the prior written consent of Lender. Lender may withhold that consent in its sole discretion.
Creation of any Asset Protection Trust, and each transfer of assets thereto, by any such settlor without the Lender’s prior
written consent:

 

a.           Shall
be an Event of Default under the Loan Documents;

 

b.           Shall
have the effect of, and shall be deemed as a matter of law, regardless of that settlor’s solvency, of having been made by
that settlor with the actual intent of hindering and delaying and defrauding Lender as that settlor’s creditor; and

 

    	41

    	 

    

 

c.           Shall
constitute a fraudulent transfer that is unenforceable and void (not merely voidable) as against Lender.

 

With respect to each
such fraudulent transfer, Lender shall have all the rights and remedies provided by state fraudulent transfer laws, or otherwise
provided at law or equity. Lender shall have the right to obtain an ex parte court order directing the trustee of the Asset Protection
Trust to give Lender written notice a reasonable time (of not less than ten (10) Banking Business Days) prior to making any distribution
from said trust. Nothing in this paragraph shall limit or affect any rights or remedies otherwise provided to Lender by law, equity
or any contract.

 

7.           Default

 

7.1           Events
of Default

 

Time is of the essence
of this Agreement. The occurrence of any of the following events shall constitute a default under this Agreement and under the
Loan Documents and shall be termed an “Event of Default”:

 

a.           Default
in the payment when due of any amount payable by the Loan Parties hereunder or under the Loan Documents.

 

b.           Any
representation, warranty, or financial statement made by or on behalf of any Loan Party in any of the Loan Documents, or any document
contemplated by the Loan Documents, is materially false or materially misleading when made or deemed made.

 

c.           Default
in the performance or observance by any Loan Party of any term, covenant or agreement contained in this Agreement or any other
Loan Document.

 

d.           Any
indebtedness of the Loan Parties or Subsidiaries in an aggregate amount in excess of one million five hundred thousand dollars
($1,500,000) under any note, indenture or any other debt instrument is accelerated, excluding this Loan.

 

e.           Default
or an event which, with the passage of time or the giving of notice or both, would constitute a default, by the Loan Parties or
Subsidiaries, having an aggregate liability to the Loan Parties in excess of one million five hundred thousand dollars ($1,500,000),
occurs on any note, indenture, contract, agreement or any other debt instrument.

 

f.            Any
Loan Party (i) ceases or fails to be solvent, or generally fails to pay, or admits in writing its inability to pay, its debts as
they become due; (ii) voluntarily ceases to conduct its business in the ordinary course; (iii) commences any bankruptcy proceeding
with respect to itself; or (iv) takes any action to effectuate or authorize any of the foregoing.

 

    	42

    	 

    

 

g.           (i)
Any involuntary bankruptcy proceeding is commenced or filed against any Loan Party, or any writ, judgment, warrant of attachment,
warrant of execution or similar process is issued or levied against a substantial part of any Loan Party’s properties, and
such proceeding or petition shall not be dismissed, or such writ, judgment, warrant of attachment, warrant of execution or similar
process shall not be released, vacated or fully bonded within 60 days after commencement, filing or levy; (ii) any Loan Party admits
the material allegations of a petition against it in any bankruptcy proceeding, or an order for relief (or similar order under
non-U.S. law) is ordered in any bankruptcy proceeding; or (iii) any Loan Party acquiesces in the appointment of a receiver, trustee,
custodian, conservator, liquidator, mortgagee in possession (or agent therefor) or other similar Person for itself or a substantial
portion of its property or business.

 

h.           Any
judgment or regulatory fine is entered against any Loan Party which could be reasonably expected to have a Material Adverse Effect.

 

i.            Following
a Collateral Triggering Event, the Collateral Documents shall cease to be in full force and effect; or any Loan Party, any officer,
director or manager of any Loan Party, or the members or shareholders of any Loan Party or any person by, through or on behalf
of any Loan Party or said officers, directors, managers, members or shareholders shall contest the validity or enforceability of
any Collateral Document or any other Loan Document.

 

j.            Default
occurs or the Loan Parties fail to comply with any term in any Hedging Transaction Document.

 

7.2           Cure
Periods

 

Borrowers shall not
be entitled to any notice of an Event of Default. Borrowers shall not have any right to cure any Event of Default under Section
7.1(a), (f), (g), (h), (i), or (j). For any other Event of Default, Borrowers may cure such default within ten (10) Banking Business
Days of the occurrence of the default, or if it is commercially unreasonable to cure such default within ten Banking Business Days
and with Lender's consent, within such longer period of time as is reasonably necessary to accomplish the cure, provided (i) Borrowers
promptly commence such cure, (ii) such cure period does not exceed 90 days under any circumstances, and (iii) Borrowers shall pay
to Lender all of Lender’s reasonable costs to confirm that the Event of Default has been cured. If an Event of Default is
cured, provided Borrowers immediately pay all of Lender’s reasonable enforcement costs, including attorneys’ fees,
incurred through the date Lender received notice of the cure, Lender shall cease its enforcement actions and remedies, including
any acceleration remedy provided herein or elsewhere in the Loan Documents, and the parties shall proceed under the Loan Documents
as if no default has occurred. Notwithstanding Lender’s obligation to terminate its remedies upon a cure as set forth above,
Lender shall have no obligation to suspend or delay its enforcement of its rights and remedies under the Loan Documents and at
law during any applicable cure period after the expiration of the initial ten Banking Business Days. In no event shall Borrowers
have the right to cure Events of Default more than three times during the term of this Agreement.

 

An Event of Default
in respect of any default subject to cure shall not exist during any applicable cure period. If the cure period expires without
Borrowers having cured the Event of Default and the Event of Default is not waived, the Event of Default shall be deemed to have
occurred as of the date the event or omission giving rise to the Event of Default first occurred. Furthermore, if during the cure
period any proceeding is commenced or petition filed under any bankruptcy or insolvency law by or against Borrowers, the cure period
shall terminate upon such commencement or filing and the Event of Default shall be deemed to have occurred as of the date the event
or omission giving rise to the Event of Default first occurred.

 

    	43

    	 

    

 

7.3           No
Waiver of Event of Default

 

No course of dealing
or delay or failure to assert any Event of Default shall constitute a waiver of that Event of Default or of any prior or subsequent
Event of Default.

 

8.           Remedies

 

8.1           Remedies
upon Event of Default

 

Upon the occurrence
of an Event of Default, and at any time thereafter, all or any portion of the Obligations due or to become due from the Loan Parties
to Lender, whether arising under this Agreement, the Promissory Note, or otherwise, at the option of Lender and without notice
to the Loan Parties of the exercise of such option (and automatically upon any Event of Default under Sections 7f or 7g), shall
accelerate and become at once due and payable in full, and Lender shall have all rights and remedies created by or arising from
the Loan Documents, and all other rights and remedies existing at law, in equity, or by statute.

 

Additionally, Lender
shall have the right, immediately and without prior notice or demand, to set off against the Obligations, whether or not due, all
money and other amounts owed by Lender in any capacity to the Loan Parties, including, without limitation, checking accounts, savings
accounts, and other depository accounts, and Lender shall be deemed to have exercised such right of setoff and to have made a charge
against any such money or amounts immediately upon occurrence of an Event of Default, even though such charge is entered on Lender’s
books subsequently thereto.

 

8.2           Rights
and Remedies Cumulative

 

The rights and remedies
conferred herein and in the other Loan Documents are cumulative and not exclusive of any other rights or remedies and shall be
in addition to every other right, power, and remedy that Lender may have, whether specifically granted herein or hereafter existing
at law, in equity, or by statute. Any and all such rights and remedies (subject to any applicable cure period to which the Loan
Parties are entitled) may be exercised from time to time and as often and in such order as Lender may deem expedient, whether or
not the Obligations shall be due and payable and whether or not Lender shall have instituted any suit for collection, foreclosure,
or other action under or in connection with the Loan Documents.

 

8.3           No
Waiver of Rights

 

No delay or omission
in the exercise or pursuance by Lender of any right, power, or remedy shall impair any such right, power, or remedy or shall be
construed to be a waiver thereof.

 

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9.           Reserved

 

10.         General
Provisions

 

10.1         Governing
Agreement

 

Except with respect
to any Hedging Transaction Documents, in the event of conflict or inconsistency between this Agreement and the other Loan Documents,
the terms, provisions and intent of this Agreement shall govern.

 

10.2         Loan
Parties’ Obligations Cumulative

 

Every obligation, covenant,
condition, provision, warranty, agreement, liability, and undertaking of the Loan Parties contained in the Loan Documents shall
be deemed cumulative and not in derogation or substitution of any of the other obligations, covenants, conditions, provisions,
warranties, agreements, liabilities, or undertakings of the Loan Parties contained herein or therein.

 

10.3         Co-Borrowers

 

All obligations of
Borrowers under this Agreement and the Loan Documents shall be joint and several. Each reference to Borrowers in the Loan Documents
shall be deemed to refer to each Borrower individually and collectively and each obligation to be performed by Borrowers hereunder
shall be performed by each Borrower.

 

Each of the Borrowers
hereby irrevocably appoints the other as its agent and attorney-in-fact for all purposes related to the Loan Documents, including,
without limitation, making requests for advances, giving and receiving of notices and other communications, and the making of all
certifications and reports required pursuant to the Loan Documents. The action of any of the Borrowers with respect to any advance
and the requests, notices, reports and other materials submitted by any of the Borrowers shall bind each of the Borrowers.

 

Lender shall have no
responsibility to inquire into the apportionment, allocation or disposition of any advances.

 

Each of the Borrowers
hereby agrees to indemnify Lender and to hold Lender harmless, pursuant to Section 10.12 Indemnification, from and against
any and all liabilities and damages (including contract, tort and equitable claims) which may be awarded against Lender, and for
all reasonable attorneys fees, legal expenses and other expenses incurred in defending such claims, arising from or related in
any manner to the joint nature of the borrowings hereunder or the status of Borrowers as co-borrowers.

 

Each of the Borrowers
represents and warrants that each of the Borrowers is engaged in operations that require financing on such a joint basis with each
other and that each of the Borrowers will derive benefit, directly or indirectly, from the advances made under this Agreement.

 

    	45

    	 

    

 

Each of the Borrowers
shall be a direct, primary and independent obligor and shall not be a guarantor, accommodation party or other Person secondarily
liable for the Loan, on the Promissory Note, or under any of the Loan Documents.

 

10.4         Payment
of Expenses and Attorney’s Fees

 

The Loan Parties shall
pay all reasonable expenses of Lender relating to the negotiation, drafting of documents, documentation of the Loan, and administration
and supervision of the Loan, including, without limitation, title insurance, recording fees, filing fees, and reasonable attorneys
fees and legal expenses, whether incurred in making the Loan, in future amendments or modifications to the Loan Documents, or in
ongoing administration and supervision of the Loan.

 

Upon occurrence of
an Event of Default which has not been waived or timely cured, the Loan Parties agree to pay appraisal fees, environmental inspection
fees and field examination expenses upon request of Lender, and all costs and expenses, including reasonable attorney fees and
legal expenses, incurred by Lender in enforcing, or exercising any remedies under, the Loan Documents, and any other rights and
remedies.

 

The Loan Parties agree
to pay all expenses, including reasonable attorney fees and legal expenses, incurred by Lender in any bankruptcy proceedings of
any type involving the Loan Parties, the Loan Documents, including, without limitation, expenses incurred in modifying or lifting
the automatic stay, determining adequate protection, use of cash collateral or relating to any plan of reorganization.

 

10.5         Right
to Perform for Borrowers

 

During the existence
of an Event of Default, Lender may, in its sole discretion and without any duty to do so, elect to discharge taxes, tax Liens,
security interests, or any other Lien upon any property or asset of the Loan Parties, to pay any filing, recording, or other charges
payable by the Loan Parties, or to perform any other obligation of the Loan Parties under this Agreement or under the other Loan
Documents.

 

10.6         Assignability

 

No Loan Party may assign
or transfer any of the Loan Documents and any such purported assignment or transfer is void. Lender may assign or transfer any
of the Loan Documents with the consent of Borrowers, which consent shall not be unreasonably withheld or delayed; provided, however,
that no consent of Borrowers shall be required (a) so long as an Event of Default has occurred and is continuing; (b) for Lender
to pledge or assign a security interest in all or any portion of its rights under this Agreement, the Promissory Note or any other
Loan Document to secure obligations of Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank
or Federal Home Loan Bank; or (c) for Lender to assign or transfer any of the Loan Documents to an Affiliate of Lender. Funding
of the Loan may be provided by an Affiliate of Lender.

 

    	46

    	 

    

 

10.7         Third
Party Beneficiaries

 

The Loan Documents
are made for the sole and exclusive benefit of the Loan Parties and Lender and are not intended to benefit any other third party.
No third party may claim any right or benefit or seek to enforce any term or provision of the Loan Documents.

 

10.8         Governing
Law

 

The Loan Documents
shall be governed by and construed in accordance with the laws of the State of Utah, excluding conflict of law provisions that
would result in the application of any law other than the laws of the State of Utah, and except to the extent that any such document
expressly provides otherwise.

 

10.9         Severability
of Invalid Provisions

 

Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction only, be ineffective only to
the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

10.10         Interpretation
of Agreement

 

The article and section
headings in this Agreement are inserted for convenience only and shall not be considered part of this Agreement nor be used in
its interpretation.

 

All references in this
Agreement to the singular shall be deemed to include the plural when the context so requires, and vice versa. References in the
collective or conjunctive shall also include the disjunctive unless the context otherwise clearly requires a different interpretation.

 

10.11         Survival
and Binding Effect of Representations, Warranties, and Covenants

 

All agreements, representations,
warranties, and covenants made herein by the Loan Parties shall survive the execution and delivery of this Agreement and shall
continue in effect so long as any obligation to Lender contemplated by this Agreement is outstanding and unpaid, notwithstanding
any termination of this Agreement. All agreements, representations, warranties, and covenants made herein by the Loan Parties shall
survive any bankruptcy proceedings involving the Loan Parties. All agreements, representations, warranties, and covenants in this
Agreement shall bind the party making the same, its successors and, in Lender’s case, assigns, and all rights and remedies
in this Agreement shall inure to the benefit of and be enforceable by each party for whom made, their respective successors and,
in Lender’s case, assigns.

 

    	47

    	 

    

 

10.12         Indemnification

 

Each Loan Party hereby
agrees to indemnify Lender for all liabilities and damages (including contract, tort and equitable claims) which may be awarded
to third parties against Lender, and for all reasonable attorneys fees, legal expenses and other expenses incurred in defending
such claims, arising from or relating in any manner to the negotiation, execution or performance by Lender of the Loan Documents
(including all reasonable attorneys fees, legal expenses and other expenses incurred in defending any such claims brought by the
Loan Parties if the Loan Parties do not prevail in such actions), excluding only breach of contract, gross negligence, and willful
misconduct by Lender. Lender shall have the sole and complete control of the defense of any such claims and is hereby authorized
to settle or otherwise compromise any such claims as Lender in good faith determines shall be in the best interests of Lender.

 

10.13         Environmental
Indemnification

 

Each Loan Party shall
indemnify Lender for any and all claims and liabilities, and for damages which may be awarded or incurred by Lender, and for all
reasonable attorney fees, legal expenses, and other out-of-pocket expenses arising from or related in any manner, directly or indirectly,
to (i) Hazardous Materials located on, in, or under the Real Property; (ii) any Environmental Condition on, in, or under the Real
Property; (iii) any material violation of or non compliance with any Environmental Health and Safety Law; (iv) any material breach
or violation of Section 5.11 Environmental Representations and Warranties and/or Section 6.13 Environmental Covenants;
and/or (v) any activity or omission, whether occurring on or off the Real Property, whether prior to or during the term of the
loans secured hereby, and whether by the Loan Parties or any other Person, relating to Hazardous Materials or an Environmental
Condition. The indemnification obligations of the Loan Parties under this Section shall survive any reconveyance, release, or foreclosure
of the Real Property, any transfer in lieu of foreclosure, and satisfaction of the obligations secured hereby.

 

Lender shall have the
sole and complete control of the defense of any such claims. Lender is hereby authorized to settle or otherwise compromise any
such claims as Lender in good faith determines shall be in its best interests.

 

10.14         Interest
on Expenses and Indemnification, Order of Application

 

All expenses, out-of-pocket
costs, attorneys fees and legal expenses, amounts advanced in performance of obligations of the Loan Parties, and indemnification
amounts owing by the Loan Parties to Lender under or pursuant to this Agreement and any other Loan Document shall be due and payable
upon demand. If not paid upon demand, all such obligations shall bear interest at the Default Rate from the date of disbursement
until paid to Lender, both before and after judgment. Lender is authorized to disburse funds under the Revolving Loan for payment
of all such obligations.

 

All payments and recoveries
shall be applied to payment of the foregoing obligations, the Promissory Note, and all other amounts owing to Lender by Borrowers
in such order and priority as set forth in this Agreement.

 

10.15         Limitation
of Consequential Damages

 

Lender and its officers,
directors, employees, representatives, agents, and attorneys, shall not be liable to the Loan Parties for consequential damages
arising from or relating to any breach of contract, tort, or other wrong in connection with the negotiation, documentation, administration
or collection of the Loan.

 

    	48

    	 

    

 

10.16         Waiver
and Release of Claims

 

Each Loan Party hereby
(i) represents that neither the Loan Parties nor any Affiliate or principal of the Loan Parties have any defenses to or setoffs
against any obligations owing by the Loan Parties, or by the Loan Parties’ Affiliates or principals, to Lender or Lender’s
Affiliates, nor any claims against Lender or Lender’s Affiliates for any matter whatsoever, related or unrelated to the Loan
Documents or any Obligations, and (ii) releases Lender and Lender’s Affiliates, officers, directors, employees, representatives
and agents from all claims, causes of action, and costs, in law or equity, known or unknown, whether or not matured or contingent,
existing as of the date hereof that the Loan Parties have or may have by reason of any matter of any conceivable kind or character
whatsoever, related or unrelated to the Loan, including the subject matter of the Loan Documents. The foregoing release does not
apply, however, to claims for future performance of express contractual obligations that mature after the date hereof that are
owing to the Loan Parties by Lender or Lender’s Affiliates. The Loan Parties acknowledge that Lender has been induced to
enter into or continue the obligations by, among other things, the waivers and releases in this Section.

 

10.17         Revival
Clause

 

If the incurring of
any debt by any Loan Party or the payment of any money or transfer of property to Lender by or on behalf of the Loan Parties should
for any reason subsequently be determined to be “voidable” or “avoidable” in whole or in part within the
meaning of any state or federal law (collectively “voidable transfers”), including, without limitation, fraudulent
conveyances or preferential transfers under the United States Bankruptcy Code or any other federal or state law, and Lender is
required to repay or restore any voidable transfers or the amount or any portion thereof, or upon the advice of Lender’s
counsel is advised to do so, then, as to any such amount or property repaid or restored, including all reasonable costs, expenses,
and attorneys fees of Lender related thereto, the liability of the Loan Parties, and each of them, shall automatically be revived,
reinstated and restored and shall exist as though the voidable transfers had never been made.

 

10.18         Jury
Trial Waiver, Arbitration, and Class Action Waiver

 

This Section contains
a jury waiver, arbitration clause, and a class action waiver. READ IT CAREFULLY.

 

a.           Jury
Trial Waiver. As permitted by applicable law, the Loan Parties and Lender each waive their respective rights to a trial before
a jury in connection with any Dispute (as “Dispute” is hereinafter defined), and Disputes shall be resolved by a judge
sitting without a jury. If a court determines that this provision is not enforceable for any reason and at any time prior to trial
of the Dispute, but not later than 30 days after entry of the order determining this provision is unenforceable, any party shall
be entitled to move the court for an order compelling arbitration and staying or dismissing such litigation pending arbitration
(“Arbitration Order”).

 

    	49

    	 

    

 

b.           Arbitration.
If a claim, dispute, or controversy arises between the Loan Parties and Lender with respect to the Loan Documents, or any other
agreement or business relationship between the Loan Parties and Lender whether or not related to the subject matter of this Agreement
(all of the foregoing, a “Dispute”), and only if a jury trial waiver is not permitted by applicable law or ruling
by a court, any of the parties may require that the Dispute be resolved by binding arbitration before a single arbitrator at the
request of any party. By agreeing to arbitrate a Dispute, the Loan Parties and Lender give up any right they may have to a jury
trial, as well as other rights they would have in court that are not available or are more limited in arbitration, such as the
rights to discovery and to appeal.

 

Arbitration
shall be commenced by filing a petition with, and in accordance with the applicable arbitration rules of, JAMS or National Arbitration
Forum (“Administrator”) as selected by the initiating party. If the parties agree, arbitration may be commenced by
appointment of a licensed attorney who is selected by the parties and who agrees to conduct the arbitration without an Administrator.
Disputes include matters relating to a deposit account, application for or denial of credit, enforcement of any of the obligations
the parties have to each other, compliance with applicable laws and/or regulations, performance or services provided under any
agreement by any party, including but not limited to the validity, enforceability, meaning, or scope of this arbitration provision,
and including a dispute based on or arising from an alleged tort or matters involving either the Loan Parties’ or Lender’s
employees, agents, Affiliates, or assigns of a party. However, Disputes do not include the validity, enforceability, meaning, or
scope of this arbitration provision and such matters may be determined only by a court. If a third party is a party to a Dispute,
the Loan Parties and Lender each will consent to including the third party in the arbitration proceeding for resolving the Dispute
with the third party. Venue for the arbitration proceeding shall be at a location determined by mutual agreement of the parties
or, if there is no agreement, in Salt Lake City, Utah.

 

After entry
of an Arbitration Order, the non-moving party shall commence arbitration. The moving party shall, at its discretion, also be entitled
to commence arbitration but is under no obligation to do so, and the moving party shall not in any way be adversely prejudiced
by electing not to commence arbitration. The arbitrator will (i) hear and rule on appropriate dispositive motions for judgment
on the pleadings, for failure to state a claim, or for full or partial summary judgment, (ii) will render a decision and any award
applying applicable law, (iii) give effect to any limitations period in determining any Dispute or defense, (iv) enforce the doctrines
of compulsory counterclaim, res judicata, and collateral estoppel, if applicable, (v) with regard to motions and the arbitration
hearing, apply rules of evidence governing civil cases, and (vi) apply the law of the state specified in the agreement giving rise
to the Dispute. Filing of a petition for arbitration shall not prevent any party from (i) seeking and obtaining from a court of
competent jurisdiction (notwithstanding ongoing arbitration) provisional or ancillary remedies including but not limited to injunctive
relief, property preservation orders, foreclosure, eviction, attachment, replevin, garnishment, and/or the appointment of a receiver,
(ii) pursuing non-judicial foreclosure, or (iii) availing itself of any self-help remedies such as setoff and repossession. The
exercise of such rights shall not constitute a waiver of the right to submit any Dispute to arbitration.

 

    	50

    	 

    

 

Judgment
upon an arbitration award may be entered in any court having jurisdiction except that, if the arbitration award exceeds $4,000,000,
any party shall be entitled to a de novo appeal of the award before a panel of three arbitrators. To allow for such appeal, if
the award (including Administrator, arbitrator, and attorney’s fees and costs) exceeds $4,000,000, the arbitrator will issue
a written, reasoned decision supporting the award, including a statement of authority and its application to the Dispute. A request
for de novo appeal must be filed with the arbitrator within 30 days following the date of the arbitration award; if such a request
is not made within that time period, the arbitration decision shall become final and binding. On appeal, the arbitrators shall
review the award de novo, meaning that they shall reach their own findings of fact and conclusions of law rather than deferring
in any manner to the original arbitrator. Appeal of an arbitration award shall be pursuant to the rules of the Administrator or,
if Administrator has no such rules, then the JAMS arbitration appellate rules shall apply.

 

Arbitration
under this provision concerns a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act,
9 U.S.C. § 1 et seq. The provisions of this arbitration provision shall survive any termination, amendment, or expiration
of this Agreement. If the terms of this provision vary from the Administrator’s rules, this arbitration provision shall control.

 

c.           Class
Action Waiver. The Loan Parties and Lender each waive the right to litigate in court or arbitrate any claim or Dispute as a
class action, either as a member of a class or as a representative, or to act as a private attorney general.

 

d.           Reliance.
 Each party (i) certifies that no one has represented to such party that the other party would not seek to enforce jury
and class action waivers in the event of suit, and (ii) acknowledges that it and the other party have been induced to enter into
this Agreement by, among other things, the mutual waivers, agreements, and certifications in this section.

 

10.19         Consent
to Utah Jurisdiction and Exclusive Jurisdiction of Utah Courts

 

The Loan Parties and
Lender each acknowledge that by execution and delivery of the Loan Documents the parties hereto have transacted business in the
State of Utah and the parties hereto voluntarily submit to, consent to, and waive any defense to the jurisdiction of courts located
in the State of Utah as to all matters relating to or arising from the Loan Documents and/or the transactions contemplated thereby.
EXCEPT AS EXPRESSLY AGREED IN WRITING BY LENDER AND EXCEPT AS PROVIDED IN THE ARBITRATION PROVISIONS ABOVE, THE STATE AND FEDERAL
COURTS LOCATED IN THE STATE OF UTAH SHALL HAVE SOLE AND EXCLUSIVE JURISDICTION OF ANY AND ALL CLAIMS, DISPUTES, AND CONTROVERSIES,
ARISING UNDER OR RELATING TO THE LOAN DOCUMENTS AND/OR THE TRANSACTIONS CONTEMPLATED THEREBY. NO LAWSUIT, PROCEEDING, OR ANY OTHER
ACTION RELATING TO OR ARISING UNDER THE LOAN DOCUMENTS AND/OR THE TRANSACTIONS CONTEMPLATED THEREBY MAY BE COMMENCED OR PROSECUTED
IN ANY OTHER FORUM EXCEPT AS EXPRESSLY AGREED IN WRITING BY LENDER.

 

    	51

    	 

    

 

10.20         Joint
and Several Liability

 

Each Loan Party shall
be jointly and severally liable for all obligations and liabilities arising under the Loan Documents.

 

10.21         Savings
Clause

 

In any action or proceeding
involving any state corporate law or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting
the rights of creditors generally, if the obligations of any Loan Party, or the validity and enforceability of any security interest,
lien or other encumbrance, would otherwise be held or determined to be avoidable, invalid or unenforceable but for the application
of this Section, then, notwithstanding any other provision of the Loan Documents to the contrary, without any further action by
the Loan Parties or Lender, the amount of such obligations shall be automatically limited and reduced to the highest amount that
would not cause such obligations to be voidable, invalid or unenforceable, and any such security interest, lien or encumbrance
shall limited to the maximum extent not subject to being voidable, invalid or enforceable, and the Loan Documents shall be deemed
automatically amended accordingly.

 

This Section is intended
solely to preserve the rights of Lender to the maximum extent not subject to avoidance, invalidity or unenforceability, and no
Loan Party or other Person shall have any right or claim under this Section.

 

10.22         No
Partnership or Joint Venture

 

This Agreement is not
intended to create and shall not be interpreted to create any partnership or joint ventures between or among Lender and the Loan
Parties.

 

10.23         Notices

 

All notices or demands
by any party to this Agreement shall, except as otherwise provided herein or in any Hedging Transaction Documents, be in writing
and may be sent by certified mail, return receipt requested. Notices so mailed shall be deemed received when deposited in a United
States post office box, postage prepaid, properly addressed to the party hereto at the mailing addresses stated herein or to such
other addresses as any party hereto may from time to time specify in writing. Any notice so addressed and otherwise delivered shall
be deemed to be given when actually received by the addressee. Notices concerning any Hedging Transaction Documents shall be provided
as set forth therein.

    	52

    	 

    

 

Mailing addresses:

 

Lender:

 

Zions First National Bank

Corporate Banking Group

One South Main, Suite 200

Salt Lake City, Utah 84111

Attention: Michael R. Brough

Senior Vice President

 

With a copy to:

 

Holland & Hart LLP

222 South Main Street, Suite 2200

Salt Lake City, Utah 84101

Attention: Scott R. Irwin, Esq.

 

With respect to all Borrowers:

 

c/o Black Diamond, Inc.

2084 East 3900 South

Salt Lake City, Utah 84124

Attention: President

 

With a copy to:

 

Kane Kessler, P.C.

1350 Avenue of the Americas, 26th
Floor

New York, New York 10019

Attention: Robert L. Lawrence,
Esq.

 

10.24         Duplicate
Originals; Counterpart Execution

 

Two or more duplicate
originals of the Loan Documents may be signed by the parties, each duplicate of which shall be an original but all of which together
shall constitute one and the same instrument. Any of the Loan Documents may be executed in several counterparts, without the requirement
that all parties sign each counterpart. Each of such counterparts shall be an original, but all counterparts together shall constitute
one and the same instrument. Receipt by Lender and the Loan Parties of an executed copy of this Agreement by facsimile or electronic
mail shall constitute conclusive evidence of execution and delivery of this Agreement by the signatory thereto.

 

    	53

    	 

    

 

10.25         Disclosure
of Financial and Other Information

 

The Loan Parties hereby
consent to Lender disclosing to any other lender who may participate in the Loan any and all information, knowledge, reports, and
records, including, without limitation, financial statements, relating in any manner whatsoever to the Loan and the Loan Parties;
provided, however, that Lender shall take reasonable steps to ensure the confidentiality of any documents or information that may
be disclosed pursuant to this Section 10.25, including maintaining the confidentiality thereof as required by laws, rules and regulations,
including the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

 

10.26         Integrated
Agreement and Subsequent Amendment

 

The Loan Documents
constitute the entire agreement between Lender and the Loan Parties, and may not be altered or amended except by written agreement
signed by Lender and the Loan Parties. PURSUANT TO UTAH CODE SECTION 25-5-4, THE LOAN PARTIES ARE NOTIFIED THAT THESE AGREEMENTS
ARE A FINAL EXPRESSION OF THE AGREEMENT BETWEEN LENDER AND THE APPLICABLE LOAN PARTIES, AND THESE AGREEMENTS MAY NOT BE CONTRADICTED
BY EVIDENCE OF ANY ALLEGED ORAL AGREEMENT.

 

All prior and contemporaneous
agreements, arrangements and understandings between the parties hereto as to the subject matter hereof are, except as otherwise
expressly provided herein, rescinded.

 

This Agreement restates,
replaces and supersedes in its entirety, but does not extinguish or novate, the A&R Loan Agreement.

 

[Signatures Pages Follow]

 

    	54

    	 

    

 

IN WITNESS
WHEREOF, this Agreement has been executed and becomes effective as of the Effective Date.

 

	 	Lender:
	 	 
	 	Zions First National Bank
	 	 	 
	 	By:	/s/ Michael R. Brough
	 	Name: Michael R. Brough
	 	Title: Senior Vice President
	 	 
	 	Borrowers:
	 	 
	 	Black Diamond Equipment, Ltd.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer and Secretary
	 	 
	 	Black Diamond Retail, Inc.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer and Secretary
	 	 
	 	Black Diamond, Inc.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer, Secretary
	 	and Treasurer
	 	 
	 	Everest/Sapphire Acquisition, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer

 

LOAN AGREEMENT

Signature Pages

 

    	 

    	 

    

 

	 	BD North American Holdings, LLC
	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Treasurer
	 	 
	 	POC USA, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer
	 	 
	 	BD European Holdings, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer
	 	 
	 	PIEPS Service, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer

 

LOAN AGREEMENT

Signature PagesExhibit 10.4

 

SECOND AMENDED AND RESTATED PROMISSORY
NOTE 

(Revolving Loan)

 

October 31, 2014

 

		Borrowers:	Black Diamond, Inc.,

Black Diamond
Equipment, Ltd.,

Black Diamond
Retail, Inc.,

Everest/Sapphire
Acquisition, LLC,

BD North
American Holdings, LLC,

POC USA,
LLC,

PIEPS Service,
LLC and

BD European
Holdings, LLC

 

		Lender:	Zions First National Bank

 

		Amount:	$30,000,000

 

For value received,
Borrowers promise to pay to the order of Lender on the Maturity Date (or such earlier date as prescribed by and in accordance with
the Loan Agreement referenced below) at Corporate Banking Group, One South Main, Suite 200, Salt Lake City, Utah 84111, the sum
of thirty million dollars ($30,000,000.00) or such other principal balance as may be outstanding hereunder in lawful money of the
United States with interest thereon calculated and payable as provided in this Second Amended and Restated Promissory Note (Revolving
Loan) (this “Note”) and in that certain Second Amended and Restated Loan Agreement of even date herewith by
and among Borrowers, the other Loan Parties from time to time party thereto, and Lender, together with any exhibits, amendments,
addenda, and modifications (as amended, supplemented, restated, amended and restated, or otherwise modified from time to time and
together with any exhibits, schedules and addendums thereto, the “Loan Agreement”).

 

Definitions

 

Terms used in the singular
shall have the same meaning when used in the plural and vice versa. Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Loan Agreement.

 

Interest

 

Interest shall accrue
on the outstanding principal balance hereunder according to the terms of the Loan Agreement.

 

Payment
Terms

 

Payments shall be made
on the Loan in immediately available funds according to the terms of the Loan Agreement.

 

    	 

    	 

    

 

General

 

This Note is the Promissory
Note referred to in the Loan Agreement and is entitled to the benefits thereof. This Note is made in accordance with, governed
by, and subject to all terms and conditions of the Loan Agreement. This Note is secured by the Collateral in accordance with the
Collateral Documents.

 

Upon an Event of Default,
all outstanding principal shall bear interest at the Default Rate from the date when due until paid, both before and after judgment.

 

If an Event of Default
occurs, time being the essence hereof, then the entire unpaid balance, with interest as aforesaid, shall, at the election of the
holder hereof and without notice of such election, become immediately due and payable in full.

 

If an Event of Default
occurs, Borrowers agree to pay to the holder hereof all collection costs, including reasonable attorney fees and legal expenses,
in addition to all other sums due hereunder.

 

This Note shall be
governed by and construed in accordance with the laws of the State of Utah.

 

Borrowers and all endorsers,
sureties and guarantors hereof hereby jointly and severally waive presentment for payment, demand, protest, notice of protest and
of non-payment and of dishonor, and consent to extensions of time, renewal, waivers or modifications without notice and further
consent to the release of any collateral or any part thereof with or without substitution.

 

This Note amends, restates,
replaces and supersedes in its entirety, but does not extinguish or novate, that certain Amended and Restated Promissory Note (Revolving
Loan) dated March 8, 2013 executed by Borrowers in favor of Lender, and any previous renewals, modifications or amendments thereof
(the “Prior Note”). All accrued but unpaid interest evidenced by the Prior Note shall continue to be due and
payable until paid.

 

[Signature Page Follows]

 

    	2

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Second Amended and Restated Promissory Note (Revolving Loan) and it becomes effective as
of the day and year first set forth above.

 

	 	Borrowers:
	 	 
	 	Black Diamond Equipment, Ltd.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer and Secretary
	 	 
	 	Black Diamond Retail, Inc.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer and Secretary
	 	 
	 	Black Diamond, Inc.
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Chief Financial Officer, Secretary and Treasurer
	 	 
	 	Everest/Sapphire Acquisition, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer
	 	 
	 	BD North American Holdings, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Treasurer

 

SECOND AMENDED AND RESTATED

PROMISSORY NOTE (REVOLVING

LOAN)

Signature Pages

 

    	 

    	 

    

 

	 	POC USA, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer
	 	 
	 	BD European Holdings, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer
	 	 
	 	PIEPS Service, LLC
	 	 	 
	 	By:	/s/ Aaron J. Kuehne
	 	Name: Aaron J. Kuehne
	 	Title: Secretary and Treasurer

 

SECOND AMENDED AND RESTATED

PROMISSORY NOTE (REVOLVING

LOAN)

Signature Pages

 

    	2

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