**AMENDMENT      NO. 8 TO LOAN AGREEMENT**

| **(a)  ** | **RECITALS** |
|---------------------|--------------|

| **(b)  ** | **AGREEMENT** |
|---------------------|---------------|

|   | 2.1   | Paragraph                2.1(a) of the Agreement is hereby amended to read in its entirety                as                follows: |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | “(a) | During                the availability period described below, the Bank will provide a                line of                credit to the Borrower. The amount of the line of credit (the                'Commitment') from the date of Amendment No. 8 through June 30, 2007                will                be Twenty Five Million and 00/100 Dollars ($25,000,000.00). From                July 1,                2007 and thereafter, the amount of the line credit will be Twenty                Million                and 00/100 Dollars ($20,000,000.00), provided, however, that the                Commitment shall be Thirty Five Million and 00/100 Dollars                ($35,000,000.00) during the period of October 1 through and including                December 31 of each year.” |
|--------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**6.      **
**FINAL      AGREEMENT**
**.      BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS      DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE      SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER,      TERM      SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT      MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN      OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE      ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT      MAY      NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT      ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.**

|         |                                   |                         |
|--------------|----------------------------------------|------------------------------|
|         | **BANK:**                              |
|         |                                   |
|         | **Bank of America,              N.A.** |
|    |                              |                    |
|         | By:                          | Matthew              Koenig, |
|         | Authorized                Signer       |

|         |                                                                                                                       |                               |
|--------------|----------------------------------------------------------------------------------------------------------------------------|------------------------------------|
|         | **BORROWER(S):**                                                                                                           |
|         |                                                                                                                       |
|         | **Sport Chalet,                Inc.**                                                                                      |
|    |                                                                                                                  |                          |
|         | By:                                                                                                              | /s/                Howard Kaminsky |
|         | Howard                  Kaminsky, Executive vice President-Finance, Chief                  Financial Officer and Secretary |

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