Document:

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
          IExhibit
      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

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