NOTE 15. SUBSEQUENT EVENTS

Public Offering

On February 22, 2012, Black Diamond consummated the closing of a public offering (the "Offering") of 7,750 shares of the Company's common stock, plus an additional 1,163 shares of common stock to cover an over-allotment option granted to the underwriters, at a price to the public of $7.50 per share (the "Offering Price"). Included in the total number of shares of common stock sold in the Offering were 1,333 shares of common stock purchased at the Offering Price by certain of the Company's officers, directors and employees (the "Reserved Shares"). The Reserved Shares are subject to lock-up agreements restricting the sales of such shares for a period of 90 days, subject to extension under certain circumstances. The underwriters received an underwriting discount of 6%, or $0.45 per share, in connection with the sale of the shares of common stock in the Offering, other than with respect to the sale of the Reserved Shares, for which the underwriters did not receive any underwriting discount. The underwriters exercised the over-allotment option in full at the closing of the Offering. The net proceeds to the Company from the Offering, before expenses, were approximately $63,400. We intend to use the net proceeds from the common stock offered for general corporate purposes, including repayment of debt, capital expenditures and potential acquisitions. The common stock was offered and sold pursuant to a prospectus dated February 1, 2011, a preliminary prospectus supplement filed with the Commission on February 15, 2012 and a prospectus supplement filed with the SEC on February 17, 2012, in connection with a takedown from the Company's shelf registration statement on Form S-3 (File No. 333-171164) declared effective by the SEC on February 1, 2011.

Amendment of Revolving Credit Facility

On March 2, 2012, the Company, BDEL, GMP, Black Diamond Retail, Inc. and Everest/Sapphire Acquisition, LLC (collectively, the Borrowers") entered into Amendment No. 1 (the "Amendment") to the Loan Agreement, effective as of May 28, 2010 (the "Loan Agreement"), by and among Zions First National Bank (the "Lender") and the Borrowers. The Amendment modified certain financial covenants contained in the Loan Agreement that require the Company and its subsidiaries to maintain a minimum trailing twelve month EBITDA and a positive amount of asset coverage, replaced the minimum tangible net worth covenant with a minimum net worth covenant, and added a fixed charge coverage ratio, all as more fully set forth in the Amendment. The terms of the Loan Agreement, except as described above, remain unchanged.