Exhibit
      10.32

    


    EMPLOYMENT
      AGREEMENT

     

    SPORT
      CHALET, INC., a Delaware corporation ("Employer"), and THOMAS TENNYSON
      ("Executive"), in consideration of the mutual promises made herein, do, as
      of
      March 31, 2008, agree as follows:

     

    A. Executive
      is employed as the Executive Vice President - Chief Merchandising Officer;
      and

     

    B. Employer
      is willing to employ Executive, and Executive desires to be so employed, on
      the
      terms and conditions set forth in this Agreement.

     

    
      	
              1.

            	
              TERM
                OF EMPLOYMENT

            


    

     

    1.1 Specified
      Term.
      Employer hereby employs Executive, and Executive hereby accepts employment
      with
      Employer, for an initial term beginning on March 31, 2008 and ending at the
      close of business on March 31, 2009. Executive's employment hereunder shall
      automatically renew for succeeding twelve-month periods, unless notice of
      termination is given by either party at least 30 days prior to the end of the
      initial term or any renewal term. Executive's employment may also terminate
      earlier as otherwise provided in this Agreement.

     

    1.2 "Employment
      Term."
      The
      phrase "Employment Term" shall mean the entire period of Executive's employment
      by Employer hereunder, whether for the periods provided above, or whether
      terminated earlier as hereinafter provided or extended by mutual agreement
      between Employer and Executive.

     

    
      	
              2.

            	
              DUTIES

            


    

     

    2.1 General
      Duties.
      Executive shall serve as the Executive Vice President - Chief Merchandising
      Officer of Employer. In this capacity, Executive shall, to the best of his
      ability, perform all services, acts or things (i) necessary or advisable to
      manage and conduct the business of Employer as it relates to merchandising,
      planning, marketing and advertising, and in-store merchandise presentation,
      (ii)
      as are provided in Employer's Certificate of Incorporation and Bylaws, (iii)
      as
      may be assigned by Employer's President, Chief Executive Officer or Board of
      Directors or (iv) as may be specified in the job description or performance
      objectives adopted from time to time by Employer's Board of Directors, President
      and Chief Executive Officer. Executive shall perform such duties subject at
      all
      times to the policies of Employer and its Board of Directors and the direction
      of Employer's President, or Chief Executive Officer. Executive shall report
      to
      Employer's President and Chief Executive Officer.

     

    2.2 Conduct
      of Executive.
      Executive shall at all times during the Employment Term conduct himself in
      a
      manner consistent with his position with Employer and shall not knowingly
      perform any act which he knew or should have known was contrary to the best
      interests of Employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.3 Devotion
      to Employer's Business.

     

    (a) Executive
      shall devote the full working portion of his entire productive time, ability
      and
      attention to the business of Employer during the Employment Term.

     

    (b) During
      the Employment Term, Executive shall not engage in any other business duties
      or
      pursuits whatsoever, or directly or indirectly render any services of a
      business, commercial or professional nature to any other person or organization,
      whether for compensation or otherwise, without the prior consent of Employer's
      Board of Directors, President or Chief Executive Officer; provided,
      however, that the expenditure of reasonable amounts of time for educational,
      charitable or professional activities shall not be deemed a breach of this
      Agreement if those activities do not materially interfere with the services
      required under this Agreement and shall not require the prior written consent
      of
      Employer as set forth above.

     

    (c) This
      Section 2.3 shall not be interpreted to prohibit Executive from making passive
      personal investments or conducting private business affairs if those activities
      do not materially interfere with the services required under this Agreement.
      Notwithstanding the foregoing, Executive shall not, to the best of his
      knowledge, directly acquire, hold or retain any interest in any vendor or
      supplier of Employer.

     

    2.4 Competitive
      Activities.
      Except
      as otherwise expressly provided in this Agreement, during the Employment Term,
      Executive shall not, directly or indirectly, either as an employee, employer,
      consultant, agent, principal, partner, stockholder, corporate officer or
      director, or in any other individual or representative capacity, engage or
      participate in any business that is in competition in any manner whatsoever
      with
      the business of Employer.

     

    2.5 Trade
      Secrets.

     

    (a) Executive
      shall not, without the prior written consent of Employer in each instance,
      disclose or use in any way, either during his employment by Employer or
      thereafter, except as required in the course of such employment, any
      confidential business or technical information or trade secret of Employer
      acquired in the course of such employment, whether or not patentable,
      copyrightable or otherwise protected by law, and whether or not conceived of
      or
      prepared by him (collectively, the "Trade Secrets"), including, without
      limitation, any confidential information concerning customer lists, products,
      procedures, operations, investments, financing, costs, employees, purchasing,
      accounting, marketing, merchandising, sales, salaries, pricing, profits and
      plans for future development, the identity, requirements, preferences, practices
      and methods of doing business of specific parties with whom Employer transacts
      business, and all other information which is related to any product, service
      or
      business of Employer, other than information which is generally known in the
      industry in which Employer transacts business or is acquired from public sources
      or was known to Executive prior to his employment by Employer; all of which
      Trade Secrets are the exclusive and valuable property of Employer.

     

    (b) All
      files, accounts, records, documents, books, forms, notes, reports, memoranda,
      studies, compilations of information, correspondence and all copies, abstracts
      and summaries of the foregoing, and all other physical items related to
      Employer, other than a merely personal item, whether of a public nature or
      not,
      and whether prepared by Executive or not, are and shall remain the exclusive
      property of Employer and shall not be removed from the premises of Employer
      except as required in the course of Executive's employment, without the prior
      written consent of Employer in each instance, and the same shall be promptly
      returned to Employer by Executive on the expiration or termination of his
      employment or at any time prior thereto upon the request of
      Employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Executive
      hereby acknowledges and agrees that it would be difficult to fully compensate
      Employer for damages resulting from the breach or threatened breach of Sections
      2.4 or 2.5 and, accordingly, that Employer shall be entitled to temporary and
      injunctive relief, including temporary restraining orders, preliminary
      injunctions and permanent injunctions, to enforce such provisions without the
      necessity of proving actual damages and without the necessity of posting any
      bond or other undertaking in connection therewith. This provision with respect
      to injunctive relief shall not, however, diminish Employer's right to claim
      and
      recover damages.

     

    
      	
              3.

            	
              COMPENSATION
                AND BENEFITS.

            


    

     

    3.1 Compensation.
      As
      compensation for the services to be performed hereunder, Executive shall receive
      a salary in the amount of Two Hundred Eighty-Five Thousand Dollars ($285,000)
      per annum, payable in arrears on a bi-weekly basis. Effective July 1, 2009,
      Executive's salary shall increase to Two Hundred Ninety-Five Thousand Dollars
      ($295,000) per annum. Executive shall receive such other increases in salary,
      if
      any, as may be determined by the Board of Directors in its sole discretion.
      The
      annual salary excluding bonuses, profit sharing, stock options and all other
      forms of compensation is referred to as the "Base Salary."

     

    3.2 Tax
      Withholding.
      Employer shall have the right to deduct or withhold from any amounts due to
      Executive hereunder (including, without limitation, the Severance Amount which
      may be payable pursuant to Sections 4.1(b) and 4.1(e)) any and all federal,
      state or local taxes, withholdings and deductions now applicable or that may
      be
      enacted and become applicable in the future, including, but not limited to,
      federal income and Social Security taxes.

     

    3.3 Bonus.
      Executive shall be eligible to participate in such executive bonus programs
      as
      Employer may establish from time to time. Under the "Senior Management Bonus
      Plan" currently in effect, Executive's maximum target annual bonus shall be
      forty percent (40%) of his base salary for the applicable fiscal year payable
      pursuant to Section 3.1. This Bonus Plan and any target bonus are subject to
      change at the discretion of the Employer, but Executive shall be eligible to
      participate in any such bonus programs as long as Employer offers such plans
      to
      its Executive Vice Presidents. Executive must be employed as of the time of
      payment (typically June) to be eligible for any bonus. There are no pro rata
      payments of the Bonus Plan if Executive is not employed as of the time of
      payment. Provided that Executive is still employed in June 2009, Executive
      is
      guaranteed a minimum bonus of Twenty-Eight Thousand Five Hundred Dollars
      ($28,500) for the fiscal year ending March 2009. Provided Executive is still
      employed in June 2010, Executive is guaranteed a minimum bonus of Twenty-Nine
      Thousand Five Hundred Dollars ($29,500) for the fiscal year ending March
      2010.

     

    3.4 Stock
      Options.
      Executive has been granted Non-Qualified Stock Options ("NQSOs") to purchase
      Employer's common stock on the terms set forth on Exhibit A and in accordance
      with Employer's 2004 Incentive Award Plan as amended and a Key Employee Stock
      Option Incentive Award Agreement which is incorporated herein by this
      reference.

     

    3.5 Annual
      Vacation.
      Executive shall be entitled to vacation or personal leave in accordance with
      Employer's policies for executive vacations for a period of up to three calendar
      weeks per year, with prior approval of the Chief Executive Officer. The vacation
      is subject to the Employer's rules on accrual of vacation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.6 Automobile
      Allowance.
      Employer shall pay to Executive an automobile allowance in the annual amount
      of
      Eleven Thousand Five Hundred Dollars ($11,500) payable bi-weekly.

     

    3.7 Medical
      Coverage.
      Employer shall include Executive and his immediate family in such health care
      plans as may be provided to Executive Vice Presidents of Employer generally
      and
      under the same terms and conditions.

     

    3.8 Life
      Insurance.
      Employer shall provide to Executive such life insurance, if any, as is currently
      provided to Executive Vice Presidents of Employer generally and under the same
      terms and conditions.

     

    3.9 Long
      Term Disability Plan.
      Employer shall include Executive in such long term disability plans as may
      be
      provided to Executive Vice Presidents of Employer and under the same terms
      and
      conditions.

     

    3.10 Qualified
      Plans.
      Employee shall be entitled to participate in Employer's qualified plans in
      accordance with the terms and conditions of the plan documents.

     

    3.11 Reimbursement
      of Business Expenses.
      Employer shall promptly reimburse Executive for all reasonable and necessary
      business expenses incurred by Executive in connection with the business of
      Employer subject to compliance by Executive with Employer's Standard Operating
      Procedures with respect to the amount, documentation and verification of such
      expenses as the same may be amended from time to time.

     

    3.12 Signing
      Bonus.
      Subject
      to employment on the specified dates, Executive shall receive the following
      signing bonus, payable as follows: (1) Twenty Thousand Dollars ($20,000) payable
      on April 1, 2008; (2) Twenty Thousand Dollars ($20,000) payable on April 1,
      2009; Ten Thousand Dollars ($10,000) payable on April 1, 2010.

     

    
      	
              4.

            	
              TERMINATION

            


    

     

    4.1 Termination.
      In
      addition to an expiration of this Agreement pursuant to Section 1.1, the
      Employment Term and Executive's employment shall cease under the following
      circumstances:

     

    (a) Death
      or Disability.
      The
      Employment Term shall terminate automatically upon the death of Executive.
      The
      Employment Term and employment shall also terminate upon the "Disability" of
      Executive provided Employer shall have given Executive written notice of such
      termination not less than thirty (30) days prior to the date of
      termination. "Disability" shall mean a physical or mental disability of
      Executive which has continued, or is reasonably likely to continue, for a period
      of at least four (4) consecutive months and that has prevented, or would
      prevent Executive from performing his essential functions of his position (even
      with a reasonable accommodation that is not an undue hardship) under this
      Agreement during such period. Such disability shall be determined by Executive's
      regular physician or two physicians selected by the Board of Directors. Upon
      termination because of death or disability, Executive shall not be entitled
      to
      any additional Base Salary, bonus, or other compensation or benefits after
      the
      date of such termination. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) Termination
      by Employer Without Cause or Termination of Employment By
      Non-Renewal.
      Employer shall be entitled to terminate Executive's employment without "Cause"
      at any time during Executive's employment. Written notice of the termination
      without Cause shall be delivered to Executive and shall specify the date of
      termination. Except as provided in this Section 4.1(b), Executive shall not
      be
      entitled to any Base Salary, bonus, or other compensation or benefits after
      the
      date of such termination. If Employer terminates the employment relationship
      and
      this Agreement without Cause, or if Employer decides not to renew this Agreement
      and thereby terminates Executive's employment, Executive shall receive the
      following after execution of the standard form of Severance Agreement and
      Release: i) a Lump Sum Payment equal to six months Base Salary, and
      ii) if Executive is terminated after the end of the fiscal year (which is
      the end of March) but before the payment of the annual bonus for that year,
      the
      annual bonus, if any, Executive would have earned for the prior fiscal year,
      had
      he remained employed until the payment date. The Lump Sum Payment shall be
      paid
      to Executive within 60 days of the date of the termination. The payment of
      the
      annual bonus, if any, shall be made at the same time as the other executives
      of
      Employer receive their bonus payments, but in no event later than July 15 of
      the
      year of the termination. Additionally, in the event Executive elects to continue
      his medical and dental coverage under the Consolidated Omnibus Budget
      Reconciliation Act of 1985 ("COBRA") and remains eligible for coverage under
      COBRA, Employer will pay directly to the insurance carriers the full cost of
      Executive's monthly COBRA premium for medical and dental coverage for the first
      six months of such coverage in accordance with the COBRA regulations. The
      aggregate amount paid under the preceding sentences is referred to herein as
      the
      "Severance Amount." Payment of the Severance Amount shall be in lieu of all
      other claims, damages or liabilities Executive might otherwise assert against
      Employer, including, without limitation, those for breach of this Agreement
      or
      for discrimination. The Severance Amount shall be paid as severance and only
      upon execution by Executive of Employer's standard form of Severance Agreement
      and Release. The Severance Agreement and Release will require Executive to
      release all claims against Employer and its employees in order to receive the
      Severance Amount. Notwithstanding the foregoing, if Executive is determined
      by
      the Employer to be a specified employee (as defined in Section 409A(a)(2)(B)
      of
      the Internal Revenue Code of 1986, as amended, and determined pursuant to
      related Treasury Regulations or other guidance promulgated thereunder) and
      if
      required under Section 409A of the Code, the Lump Sum Payment shall be paid
      on
      the first day of the seventh month following the termination of
      employment.

     

    (c) Termination
      by Employer With Cause.
      Employer shall be entitled to terminate Executive's employment under this
      Agreement for Cause, in which case Executive shall not be entitled to any
      additional Base Salary, bonus, or other compensation or benefits after the
      date
      of such termination. "Cause" means (i) the commission of any material
      criminal act or any act of fraud or material dishonesty with respect to
      Employer; (ii) misconduct; (iii) material breach of the provisions of this
      Agreement, (iv) insubordination or refusal to perform required duties, or
      (v) an order of a court, administrative board or judge, or regulatory
      authority which precludes Executive from performing his duties. Written notice
      of the termination with Cause shall be delivered to Executive and shall specify
      the date of termination and that the termination is for "Cause".

     

    (d) Termination
      by Executive For Any Reason.
      Executive shall be entitled to terminate his employment under this Agreement
      at
      any time upon thirty (30) days prior written notice to Employer, in which case
      Executive shall not be entitled to any additional Base Salary, bonus, or other
      compensation or benefits after the date of such termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) Termination
      by Executive for Good Reason.
      Executive may terminate his employment for "Good Reason" within four months
      of
      the initial existence of "Good Reason", by sending written notice of termination
      to Employer stating that the termination is for "Good Reason" and specifying
      the
      basis for the Good Reason. In the event the Executive fails to terminate his
      employment within such period, but Executive terminates after such period,
      then
      the termination shall be deemed without Good Reason. "Good Reason" shall mean
      any of the following events: 

     

    (i) An
      involuntary material diminution in the Executive's authority or
      duties;

     

    (ii) An
      involuntary material diminution in Executive's Base Salary; or

     

    (iii) A
      material breach of Section 3 of this Agreement. 

     

    In
      order
      for the termination to be one for "Good Reason", Executive must first give
      the
      Employer written notice which shall identify with reasonable specificity the
      grounds for Good Reason within 60 days of the initial existence of Good Reason,
      upon the notice of which the Employer shall have 30 days to cure the alleged
      grounds for Good Reason contained in the notice. In the event Executive fails
      to
      notify the Employer of the existence of Good Reason within such 60 day period
      or
      the Employer cures the alleged grounds for Good Reason in that 30 day cure
      period, but Executive's employment under this Agreement in fact terminates
      at
      the initiation of Executive, such termination shall be deemed a termination
      by
      Executive without Good Reason. If Executive terminates his employment with
      the
      Employer for Good Reason in accordance with this Section 4.1(e), then Executive
      shall not be entitled to any additional Base Salary, bonus, or other
      compensation or benefits except the following: upon execution by Executive
      of
      Employer's standard form of Severance Agreement and Release, Executive shall
      receive a Lump Sum Payment equal to six months Base Salary, payable within
      60
      days following the termination of employment. The amount paid under the
      preceding sentence is referred to as the "Severance Amount". Executive shall
      not
      be entitled to any other compensation or benefits after the date of termination.
      Payment of the Severance Amount shall be in lieu of all other claims, damages
      or
      liabilities Executive might otherwise assert against Employer, including,
      without limitation, those for breach of contract or for discrimination. The
      Severance Amount shall be paid only upon execution by Executive of Employer's
      standard form of Severance Agreement and Release. The Severance Agreement and
      Release will require Executive to release all claims against Employer and its
      employees in order to receive the Severance Amount. Notwithstanding the
      foregoing, if Executive is determined by the Employer to be a specified employee
      (as defined in Section 409A(a)(2)(B) of the Code and determined pursuant to
      related Treasury Regulations or other guidance promulgated thereunder) and
      if
      required under Section 409A of the Code, the Lump Sum Payment shall be paid
      on
      the first day of the seventh month following the termination of
      employment.

     

    (f) Severance
      Amount Shall Not Constitute Excess Parachute Payments.
      It is
      the intention of the parties that any payment of the Severance Amount shall
      not
      constitute "excess parachute payments" within the meaning of Section 280G of
      the
      Internal Revenue Code of 1986, as amended, and any regulations thereunder.
      If
      the independent accountants acting as auditors for Employer (or another
      accounting firm designated by them) determine that any payment of the Severance
      Amount may constitute "excess parachute payments," the payments may be reduced
      to the maximum amount which may be paid without the payments being "excess
      parachute payments." The determination shall take into account (i) whether
      the
      payments are "parachute payments" under Section 280(3) and, if so, (ii) the
      amount of payments under this Agreement that constitutes reasonable compensation
      under Section 280G.

     

    4.2 Duties
      Upon Termination.
      In the
      event that Executive's employment by Employer under this Agreement is
      terminated, neither Employer nor Executive shall have any remaining duties
      or
      obligations hereunder, except that (i) Employer shall promptly pay to Executive,
      or his estate, all reimbursable expenses incurred by Executive hereunder as
      of
      such date, and such compensation as is due pursuant to Sections 3.1 and 3.5,
      prorated through the date of termination, (ii) Employer shall provide to
      Executive such Severance Amount as may be due pursuant to Sections 4.1(b)
      or 4.1(e), and (iii) Executive shall continue to be bound by
      Section 2.5.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              GENERAL
                PROVISIONS

            


    

     

    5.1 Notices.
      Any
      notices to he given hereunder by either party to the other shall be in writing
      and may he transmitted by personal delivery or by mail, registered or certified,
      postage prepaid with return receipt requested. Mailed notices shall be addressed
      to the parties at the addresses appearing on the signature pages hereof, but
      each party may change that address by written notice in accordance with this
      section. Notices delivered personally shall be deemed communicated as of the
      date of actual receipt; mailed notices shall be deemed communicated as of the
      third day following the date of mailing.

     

    5.2 Arbitration.
      Any
      controversy between Employer and Executive involving the construction or
      application of any of the terms, provisions, or conditions of this Agreement
      shall on the written request of either party served on the other be submitted
      to
      arbitration. Arbitration shall comply with and be governed by the provisions
      of
      the California Arbitration Act and that certain Agreement to Arbitrate Claims
      previously entered into by Employer and Executive, which Agreement is
      incorporated herein by this reference.

     

    5.3 Attorneys'
      Fees and Costs.
      If any
      legal or arbitration action based in contract law is necessary to enforce or
      interpret the terms of this Agreement, the prevailing party shall be entitled
      to
      reasonable attorneys' fees, costs, and necessary disbursements in addition
      to
      any other relief to which that party may be entitled. This provision shall
      be
      construed as applicable to the entire contract.

     

    5.4 SEC
      Compliance.
      Executive acknowledges that concurrently herewith he has been provided with
      a
      copy of and will abide by the Employer's Statement of Company Policy Re:
      Securities Trades by Company Personnel as the same may be amended from time
      to
      time by Employer, which Statement is incorporated herein by this reference.
      

     

    5.5 Remedy
      For Certain Breaches.
      If
      Employer breaches Sections 2.1, 3.1, or 3.3 through 3.12, and Executive
      does not give notice of termination for Good Reason, the Executive is limited
      to
      a maximum of six months period for damages for any such breach.

     

    5.6 Entire
      Agreement.
      This
      Agreement, together with its exhibits, and the arbitration agreement supersede
      any and all other agreements, either oral or in writing, between the parties
      hereto with respect to the employment of Executive by Employer and contain
      all
      of the covenants and agreements between the parties with respect to that
      employment in any manner whatsoever. Each party to this Agreement acknowledges
      that no representation, inducements, promises, or agreements, orally or
      otherwise, have been made by any party, or anyone acting on behalf of any party,
      which are not embodied herein, and that no other agreement, statement, or
      promise not contained in this agreement shall be valid or binding on either
      party.

     

    5.7 Modifications.
      Any
      modification of this Agreement will be effective only if it is in writing and
      signed by the party to be charged and approved by the Board of Directors of
      Employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.8 Effect
      of Waiver.
      The
      failure of either party to insist on strict compliance with any of the terms,
      covenants, or conditions of this Agreement by the other party shall not be
      deemed a waiver of that term, covenant, or condition, nor shall any waiver
      or
      relinquishment of any right or power at any one time or times be deemed a waiver
      or relinquishment of that right or power for all or any other
      times.

     

    5.9 Partial
      Invalidity.
      If any
      provision in this Agreement is held by a court of competent jurisdiction to
      be
      invalid, void, or unenforceable, the remaining provisions shall nevertheless
      continue in full force without being impaired or invalidated in any
      way.

     

    5.10 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California except that, with respect to matters of corporate
      governance, the laws of the State of Delaware shall govern.

     

    5.11 Sums
      Due Deceased Executive.
      If
      Executive dies prior to the expiration of the Employment Term, any sums that
      may
      be due him from Employer under this agreement as of the date of death shall
      be
      paid to Executive's executors, administrators, heirs, personal representatives,
      successors, and assigns.

     

    5.12 Insurance.
      Executive shall be covered by any policy of directors' and officers' liability
      insurance maintained by Employer.

     

    5.13 Consultation.
      Executive acknowledges that he has had sufficient time to consult with the
      advisor of his choice.

     

    5.14 Construction.
      This
      Agreement was reviewed by each party hereto and is the product of informed
      negotiations between the parties hereto. If any part of this Agreement is deemed
      to be unclear or ambiguous, it shall be construed as if it were drafted jointly
      by the parties. Each party hereto acknowledges that no party was in a superior
      bargaining position regarding the substantive terms of this
      Agreement.

     

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
      the
      date and year first set forth above.

     

    
      	
              Employer:

            	
              SPORT
                CHALET, INC.

            
	 	 
	 	
              /S/
                Craig Levra

            
	 	
              CRAIG
                LEVRA, CHAIRMAN AND CEO

            
	 	 
	
              Executive:

            	
              /s/
                Thomas Tennyson

            
	 	
              THOMAS
                TENNYSON