MOUNTAIN HARDWEAR CHARTER DEALER LETTER

BY NOW YOU MAY HAVE HEARD THAT SEVERAL OF US WHO HAD
WORKED AT SIERRA DESIGNS HAVE MOVED ACROSS TOWN TO START A
NEW OUTDOOR MANUFACTURING COMPANY CALLED MOUNTAIN HARDWEAR.

WE ARE TREMENDOUSLY EXCITED, AND A LITTLE SCARED, ABOUT
OUR OPPORTUNITY. THE BEAUTY ABOUT A NEW VENTURE IS THAT YOU
CAN CREATE IT ANY WAY YOU WANT. OLD PRODUCTS, OLD CONCEPTS
AND OLD DISTRIBUTION CAN BE REVIEWED AND DISCARDED. WE CAN
START FRESH THE WAY WE DESIRE. WE CAN TRY NEW THINGS. WE CAN
LISTEN TO DEALERS AND CUSTOMERS, AND WORK TO INCORPORATE
THEIR IDEAS. THIS IS PRECISELY WHAT WE PLAN TO DO.
INITIALLY, WE WANT TO TELL YOU A LITTLE ABOUT WHO WE
ARE, AND ABOUT. A CONCEPT FOR A LIMITED NIT BER OF CHARTER
DEALERS WHO WILL BE OFFERED SOME SIGNIFICANT BENEFITS FOR
STEPPING UP AND SUPPORTING MOUNTAIN HARDWEAR IN A MEANINGFUL
WAY FROM THE VERY BEGINNING.

FIRST, HOWEVER, A LITTLE BIT ABOUT OUR MOST IMPORTANT
ASSET--OUR PEOPLE. PAUL KRAMER, VP OF SOURCING AND DESIGN,
IS REGARDED BY MANY AS THE MOST KNOWLEDGABLE PRODUCT AND
MATERIALS PERSON IN THE INDUSTRY, WITH 22 YEARS OF
EXPERIENCE AT SIERRA DESIGNS. PAUL IS SUPPORTED BY APPAREL
DESIGNER INGRID HARSHBARGER, WHO HAS EXPERIENCE AT BOTH
NORTH FACE (EXTREME GEAR AND MOUNTAIN SYSTEMS) AND SIERRA
DESIGNS. PAIGE SPRINGER, OUR DIRECTOR OF MARKETING, WHO
STARTED AT NORTH FACE IN DESIGN, HANDLES ALL ADVERTISING,
WORKBOOKS, NEWSLETTERS, AND TRADE SHOW DESIGN AND SETUP.
MIKE WALLENFELS, NATIONAL SALES MANAGER, HAS SPECIALTY
RETAIL EXPERIENCE AT ADVENTURE 16, AND IS A SERIOUS USER OF
THE GEAR.

OTHER “FOUNDING” STAFF INCLUDE AL TABOR, OPERATIONS
DIRECTOR, CLARANNE KNITTEL, SOURCING MANAGER, ROBERTA
HERNANDEZ HANDLING PERSONNEL AND CUSTOMER SERVICE AND CHRIS
CLARK IN ACCOUNTING. MY OWN EXPERIENCE IS 20 YEARS AT NORTH
FACE, MOSTLY AS VP OF MARKETING, 2 1/2 YEARS AT OUTDOOR
RETAILER, AND ANOTHER 2 1/2 AS PRESIDENT OF SIERRA DESIGNS.
CLEARLY THIS IS NOT SIMPLY JUST ANOTHER INDUSTRY STARTUP,
BUT ONE WITH A UNIQUE, WIDE RANGE OF EXPERIENCED PEOPLE.

WITH THE RECENT UNCERTAINTY (SOME WOULD SAY VOID) IN
THE SUPPLIER SIDE OF THE BUSINESS CAUSED BY ODYSSEY’S
BANKRUPTCY, THIS MAY BE A UNIQUE OPPORTUNITY FOR THE RIGHT
KIND OF NEW COMPANY.

ONE BOLD, NEW CONCEPT WHICH WE HAVE DEVELOPED IS THAT
OF A LIMITED NUMBER OF KEY “CHARTER DEALERS”, WHO WOULD BE
CAREFULLY CHOSEN, AND WOULD RECEIVE SERIOUS BENEFITS IN
EXCHANGE FOR A MEANINGFUL, DEFINED COMMITMENT TO A NEW
COMPANY.

WE WILL DO THE FOLLOWING FOR CHARTER DEALERS:

1) OFFER INNOVATIVE, SALEABLE PRODUCTS AT GOOD PRICES
2) PROVIDE ADDED MARGIN AND ADVERTISED PRICE PROTECTION
3) LIMIT DISTRIBUTION BASED ON DEALER SUPPORT
4) PROIDE CO-OP DOLLARS TO ENHANCE SELLTHROUGH
5) LISTEN & RESPOND

WE WILL ASK THE FOLLOWING OF OUR CHARTER DEALERS:

1) A MINIMUM DOLLAR COMMITMENT, WITH ALL PRODUCT CATEGORIES REPRESENTED.
2) THAT BILLS BE PAID PROMPTLY, WITHIN TERMS
3) THAT A COMMITMENT TO BOTH COMPANY AND CONCEPT BE MADE.
WE SEE THIS AS A TWO YEAR PROGRAM AT MINIMUM, AND ALSO

SEE ROOM FOR SOME DEALERS WHO CHOOSE NOT TO PARTICIPATE AS
CHARTER DEALERS, BUT STILL WANT TO CARRY THE LINE IN SMALLER
NUMBERS.

WE ARE SCHEDULING APPOINTMENTS AT OUTDOOR RETAILER
(FEB. 11-13) AND WILL MAIL YOU EXPANDED COMPANY INFORMATION
AND PRODUCT SPECS PRIOR TO THE SHOW.

WE’RE EXCITED AND READY TO GO. A LONG TIME DEALER AND
FRIEND RECENTLY WROTE US THE FOLLOWING:

“IN STARTING NEW, YOU CAN DO IT RIGHT. YOU CARRY NO
BAGGAGE. BE TRUE TO WHAT YOU KNOW IS RIGHT FOR THE INDUSTRY
WHICH YOU WISH TO SERVE.”

WE PLAN TO DO JUST THAT. ALL OF US WISH YOU A GREAT
HOLIDAY SEASON, AND ASK FOR YOUR SUPPORT, COMMENTS AND
CRITICISM. TOGETHER WE CAN MAKE THIS WORK.

SINCERELY,
JACK GILBERT & THE MOUNTAIN HARDWEAR CREW