Exhibit
      10.26

    TRADEMARK
      SECURITY AGREEMENT

     

    This
      TRADEMARK SECURITY AGREEMENT (this “Agreement”)
      is
      dated as of June 20, 2008, between SPORT CHALET, INC., a Delaware corporation
      (“Grantor”),
      and
      BANK OF AMERICA, N.A., a national banking association, as administrative agent
      for the Lenders (“Agent”)
      in
      connection with the Loan Agreement described below.

     

    R
      E C I T
      A L S:

     

    WHEREAS,
      Grantor is indebted to Agent and Secured Parties pursuant to that certain Loan
      and Security Agreement dated as of even date herewith (as amended, restated,
      or
      otherwise modified from time to time, the “Loan
      Agreement”);
      and

     

    WHEREAS,
      the parties wish to provide for the terms and conditions upon which the
      Obligations shall be secured by the Trademark Collateral (as defined below);
      and

     

    WHEREAS,
      this Agreement is made to secure the Secured Obligations (defined below) and
      in
      consideration of advances, credit or other financial accommodations now or
      hereafter being afforded to Grantor by Agent and Secured Parties;

     

    NOW,
      THEREFORE, for valuable consideration hereby acknowledged, the parties agree
      as
      follows:

     

    DEFINITIONS;
      RULES OF CONSTRUCTION

     

    1.1. Definitions.
      Initially capitalized terms used but not defined herein have the respective
      meanings set forth in the Loan Agreement. As used herein, the following terms
      have the meanings set forth below:

     

    Marks:
      any
      trademarks, trade names, corporate names, company names, business names, trade
      styles, trade dress, service marks, logos, other source or business identifiers,
      designs and general intangibles of like nature, now existing or hereafter
      adopted or acquired, all registrations and recordings thereof and any
      applications in connection therewith, including registrations, recordings and
      applications in the United States Patent and Trademark Office or in any similar
      office or agency of the United States, any State thereof or
      any
      other country. 

     

    Secured
      Obligations:
      all
“Obligations” (as defined in the Loan Agreement).

     

    Trademark
      License:
      means
      any written agreement, in which Grantor now holds or hereafter acquires any
      right, title or interest, which agreement grants any license right in and to
      any
      Trademark (whether Grantor is the licensee or the licensor thereunder) including
      licenses pursuant to which Grantor has obtained the exclusive right to use
      a
      trademark owned by a third party, a sublicense to use a trademark, a
      distribution agreement relating to goods or services covered by one or more
      trademarks and the right to prepare for sale, sell or advertise for sale, all
      of
      the inventory now or hereafter owned by Grantor and now or hereafter covered
      by
      such license agreements.

     

    Trademarks:
      means
      any of the following in which Grantor now holds or hereafter acquires any right,
      title or interest: (a) all Marks; (b) any reissues, extensions or renewals
      of
      any Marks, (c) the goodwill of the business symbolized by or associated with
      the
      Marks, (d) all domain names, (e) all means of manufacturing goods or offering
      services covered by the Marks, including trade secrets, formulas, recipes,
      customer lists, manufacturing processes, molds, designs, plans and prototypes,
      (f) any income, royalties, damages, claims and payments now and hereafter due
      and/or payable with respect to the Marks, including payments under all licenses
      entered into in connection with the Marks and damages, claims, payments and
      recoveries for past, present or future infringement and (g) any rights to sue
      for past, present and future infringements of the Marks.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    1.2. Certain
      Matters of Construction.
      The
      terms “herein”, “hereof”, “hereunder” and other words of similar import refer to
      this Agreement as a whole and not to any particular section, paragraph or
      subdivision. Any pronoun used shall be deemed to cover all genders. The terms
      “including” and “include” shall mean “including, without limitation” and, for
      purposes of each Loan Document, the parties agree that the rule of ejusdem
      generis
      shall
      not be applicable to limit any provision. Section titles appear as a matter
      of
      convenience only and shall not affect the interpretation hereof. All references
      to (a) laws or statutes include all related rules, regulations, interpretations,
      amendments and successor provisions; (b) any document, instrument or agreement
      include any amendments, waivers and other modifications, extensions or renewals
      (to the extent permitted hereby); (c) any section mean, unless the context
      otherwise requires, a section of this Agreement; (d) any exhibits or schedules
      mean, unless the context otherwise requires, exhibits and schedules attached
      hereto, which are hereby incorporated by reference; (e) any Person include
      successors and assigns; or (f) unless otherwise specified herein, discretion
      of
      Agent means the sole and absolute discretion of Agent. Grantor shall have the
      burden of establishing any alleged negligence, misconduct or lack of good faith
      by Agent or any other Secured Party hereunder. No provision hereof shall be
      construed against any party by reason of such party having, or being deemed
      to
      have, drafted the provision.

     

    SECTION
      2. TRADEMARK
      COLLATERAL 

     

    2.1. Grant
      of Security Interest in Trademark Collateral.
      Grantor
      hereby grants to Agent, for the benefit of Secured Parties, a continuing first
      priority security interest in all of Grantor’s right, title and interest in, to
      and under the following, whether presently existing or hereafter created or
      acquired (collectively, the “Trademark
      Collateral”):

     

    (a)all
      of
      its Trademarks and Trademark Licenses to which it is a party including those
      referred to on Schedule
      I
      hereto;
      and

     

    (b)all
      products and proceeds of the foregoing, including any claim by Grantor against
      third parties for past, present or future (i) infringement or dilution of any
      Trademark or Trademark licensed under any Trademark License or (ii) injury
      to
      the goodwill associated with any Trademark or any Trademark licensed under
      any
      Trademark License.

     

    2.2. Intent-to-Use
      Applications.
      Notwithstanding anything to the contrary set forth in Section 2.1
      above,
      or in the Loan Agreement or any other Loan Document, the Trademark Collateral
      shall not include any intent-to-use United States trademark application for
      which an amendment to allege use or statement of use has not been filed under
      15
      U.S.C § 1051(c) or 15 U.S.C § 1051(d), respectively, or, if filed, has not been
      deemed in conformance with 15 U.S.C § 1051(a) or examined and accepted,
      respectively, by the United States Patent and Trademark Office.

     

    2.3. Loan
      and Security Agreement.
      The
      security interests granted pursuant to this Agreement are granted in conjunction
      with the security interests granted to Agent, for the benefit of Secured
      Parties, pursuant to the Loan Agreement and any security agreement delivered
      in
      connection therewith. Grantor hereby acknowledges and affirms that the rights,
      remedies and obligations of Agent with respect to the security interest in
      the
      Trademark Collateral made and granted hereby are more fully set forth in the
      Loan Agreement and any security agreement delivered in connection therewith,
      the
      terms and provisions of which are incorporated by reference herein as if fully
      set forth herein.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    2.4. Authorization
      to Supplement.
      If
      Grantor has or obtains rights to any Trademarks or Trademark Licenses not listed
      on Schedule
      I,
      the
      provisions of this Agreement shall automatically apply thereto. Grantor shall
      give prompt notice in writing to Agent with respect to any such additional
      Trademarks or Trademark Licenses. Without limiting Grantor’s obligations under
      this Section
      2.4,
      Grantor
      hereby authorizes Agent unilaterally to modify this Agreement by amending
Schedule
      I
      to
      include any such additional Trademarks or Trademark Licenses. Notwithstanding
      the foregoing, no failure to so modify this Agreement or amend Schedule
      I
      shall in
      any way affect, invalidate or detract from Agent’s continuing security interest
      in all Trademark Collateral, whether or not listed on Schedule
      I.

     

    SECTION
      3. COVENANTS

     

    3.1. Prosecution
      of Applications; Maintenance and Renewal of Trademarks.
      Except
      as would not have a material adverse effect on the value or enforceability
      of,
      or any rights of Grantor or Agent in, any of the Trademark Collateral, Grantor
      shall, until Full Payment of all the Obligations (a) use commercially reasonable
      efforts to prosecute any Trademark pending as of the date hereof or thereafter,
      and (b) promptly make applications for, register or cause to be registered
      (to
      the extent not already registered) with the United States Patent and Trademark
      Office any Trademark or Trademark License set forth in Schedule
      I
      or
      otherwise, in all such cases the filing and payment of maintenance, registration
      and/or renewal fees, the filing of applications for renewal, affidavits of
      use,
      affidavits of noncontestability, the filing and diligent prosecution of
      opposition, interference and cancellation proceedings, and promptly responding
      to all requests and inquiries from the United States Patent and Trademark
      Office. Except as would not have a material adverse effect on the value or
      enforceability of, or any rights of Grantor or Agent in, any of the Trademark
      Collateral, Grantor also agrees to preserve and maintain all rights in the
      Trademark Collateral. Grantor further agrees to retain experienced trademark
      attorneys for the filing and prosecution of all such applications and other
      proceedings when and if applicable. Except as would not have a material adverse
      effect on the value or enforceability of, or any rights of Grantor or Agent
      in,
      any of the Trademark Collateral, Grantor shall not, without Agent’s prior
      written consent (to be given or withheld in Agent’s discretion), abandon any
      rights in or fail to pay any maintenance or renewal fee for any Trademark listed
      in Schedule I
      or
      breach, terminate, fail to renew or extend, or fail to perform any duties or
      obligations for any Trademark License listed in Schedule
      I.
      Grantor
      further agrees that it will not take any action, or permit any action to be
      taken by any Person to the extent that such Person is subject to its control,
      including licensees, or fail to take any action, that could reasonably be
      expected to affect the validity, priority, perfection or enforcement of the
      rights granted to Agent under this Agreement, and any such action if it shall
      take place shall be null and void and of no effect whatsoever. 

     

    3.2. Protection
      of Trademarks.
      Grantor
      shall (a) protect, defend and maintain the validity and enforceability of all
      current and future Trademarks, (b) use its commercially reasonable efforts
      to
      detect material infringements of such Trademarks and promptly advise Agent
      in
      writing of material infringements detected and (c) not allow any Trademarks
      to
      be abandoned, forfeited or dedicated to the public. At any time during the
      continuance of an Event of Default, Grantor shall not commence, or cause to
      be
      commenced, any action, proceeding, lawsuit, mediation or arbitration relating
      to
      the Trademark Collateral without the prior written consent of Agent, such
      consent not to be unreasonably withheld or delayed, nor shall Grantor engage
      in
      any activity or conduct that could give rise to declaratory judgment
      jurisdiction. At Grantor’s sole expense, Agent shall have the right (but shall
      not be obligated) during the continuance of an Event of Default to select
      counsel and/or participate in any action, proceeding, lawsuit, mediation or
      arbitration that could adversely affect the rights in, validity or
      enforceability of the Trademark Collateral. In addition, any proposed settlement
      or compromise of any action, proceeding, lawsuit, mediation or arbitration
      that
      could be reasonably expected to affect value, validity or enforceability of,
      or
      any rights of Grantor or Agent in, the Trademark Collateral must be approved,
      in
      writing, by Agent, whether or not an Event of Default has occurred and is
      continuing.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    3.3. Expenses.
      Any
      expenses incurred in connection with prosecution, registration and maintenance
      shall be borne by Grantor. If Grantor fails to comply with any of the provisions
      of Section 3.1
      or
3.2,
      Agent
      shall have the right (but shall not be obligated) to do so on behalf of Grantor
      to the extent permitted by Applicable Law, but at Grantor’s sole expense, and
      Grantor hereby agrees to reimburse Agent in full for all expenses, including
      the
      fees and disbursements of counsel incurred by Agent in procuring, protecting,
      defending and maintaining the Trademark Collateral. In the event that Grantor
      fails to pay when due any expenses or fees required to be paid by it hereunder,
      or fails to comply with any other duty under this Agreement, Agent may, but
      shall not be required to, pay, satisfy, discharge or bond the same for the
      account of Grantor, and all monies so paid out shall be Secured Obligations
      of
      Grantor repayable on demand, together with interest at the rate applicable
      to
      Base Rate Revolver Loans.

     

    SECTION
      4. MISCELLANEOUS

     

    4.1. Miscellaneous.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto, their heirs, executors, administrators, successors, legal
      representatives, and assigns. This Agreement may be executed in any number
      of
      counterparts, each of which shall be an original and all of which, when taken
      together, shall constitute one agreement and shall be considered to be a Loan
      Document. This Agreement, together with the Loan Agreement and the other Loan
      Documents, embodies the entire agreement among the parties with respect to
      the
      subject matter hereof and amends and supersedes all prior agreements and
      understandings relating to such subject matter. This letter shall be governed
      by
      the laws of the State of California. To the extent not prohibited by applicable
      law, each of the parties hereto waives its right to a trial by jury, if any,
      in
      any action to enforce, defend, interpret, or otherwise concerning this letter.
      Without limiting the applicability of any other provision of the Loan Agreement,
      the terms of Sections 14.13 and 14.14 of the Loan Agreement are incorporated
      herein, mutatis
      mutandis,
      and
      shall apply to and govern this Agreement.

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    


    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
      the
      date first written above.

     

    
      	
              GRANTOR:

            
	 
	
              SPORT
                CHALET, INC.,

            
	
              a
                Delaware corporation

            
	 	 
	
              By:

            	
              /s/
                Howard Kaminsky

            
	
              Name:

            	
              Howard
                Kaminsky

            
	
              Title:

            	
              Executive
                Vice President and CFO

            


    

    


    
      
         

      

      
        
          Signature
            Page

        

        
          

        

      

      
         

      

    

     

    
      	
              AGENT:

            
	 
	
              BANK
                OF AMERICA, N.A, as Agent

            
	 	 
	
              By:
                

            	
              /s/
                Stephen King

            
	
              Name:

            	
              Stephen
                J. King

            
	
              Title:

            	
              Vice
                President

            


    

     

    
      
         

      

      
        
          Signature
            Page

        

        
          

        

      

      
         

      

    

     

    SCHEDULE
      I

    to

    TRADEMARK
      SECURITY AGREEMENT

     

    TRADEMARKS

    
       

        
          	
                  TRADEMARK

                	 	
                  COUNTRY
                    OF

                  REGISTRATION

                	 	
                  DATE

                	 	
                  TRADEMARK

                  REGISTRATION

                  NUMBER

                
	
                  Sport
                    Chalet

                	 	
                  USA

                	 	
                  December
                    27, 1994

                	 	
                  1869465

                
	
                  Sport
                    Chalet

                	 	
                  USA

                	 	
                  December
                    27, 1994

                	 	
                  1869466

                
	
                  Action
                    Pass

                	 	
                  USA

                	 	
                  December
                    27, 1994

                	 	
                  3186743

                


        

      

    

    


    
      
         

      

      
        Schedule
          I