Document:

exv10w5

 

Exhibit 10.5

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (this “First Amendment”) is made and entered into as of
March 31, 2006, by and between LA CANADA PROPERTIES, INC., a California corporation
(“Landlord”), and SPORT CHALET, INC., a Delaware corporation (“Tenant”).

RECITALS:

A. Landlord currently leases to Tenant certain “Premises” (as more particularly described
in the “Lease”, as hereinafter defined), located in La Canada, California, pursuant to that
certain Standard Industrial/Commercial Single-Tenant Lease-Net (the “Base Lease”) and
Addendum to Standard Industrial Lease (the “Addendum”), each dated as of September 1, 1992
(the Base Lease, as modified and supplemented by the Addendum is referred to herein as the
“Lease”), by and between Norbert Olberz and Irene Olberz (“Original Landlord”), as
“Landlord”, and Tenant (then known as Sport Chalet, Incorporated, a California corporation), as
“Tenant”. Landlord is successor in interest to Original Landlord, as “Landlord” under the Lease.
All initial capitalized terms used herein but not herein defined shall have the meaning ascribed to
such terms in the Lease.

B. Landlord and Tenant now desire to enter into this First Amendment to amend the Lease to provide
for (a) an acknowledgement of the exercise of the first and second options to extend granted
pursuant to the Lease, and (b) the grant of three (3) additional options to extend pursuant to the
Lease, on the terms and subject to the conditions more particularly provided herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Landlord and Tenant agree as follows:

1. Notwithstanding anything to the contrary contained in the Lease:

     (a) The parties acknowledge that Tenant has exercised the option to extend the term of the
Lease by the initial five (5) year extension period pursuant to Section 3 of the Addendum, such
that the term of the Lease would be scheduled to expire on August 31, 2007.

     (b) The parties acknowledge that Tenant has also exercised early and with Landlord’s
knowledge and consent, the second five (5) year extension period pursuant to Section 3 of the
Addendum, such that the term of the Lease is now scheduled to expire on August 31, 2012.

     (c) Tenant is hereby granted three (3) additional options to extend the term of the Lease for
periods of five (5) years each on the terms and conditions set forth in Section 3 of the Addendum,
such that together with the exercised option terms granted pursuant to Section 3 of the
Addendum, Tenant shall now have remaining three (3) separate options to extend, each for an
additional period of five (5) years, each subject to the provisions of Section 3 of the Addendum,
with the applicable option terms, if exercised, to be for the following periods:

     First remaining option term: September 1, 2012 through and including August 31, 2017

     Second remaining option term: September 1, 2017 through and including August 31, 2022

     Third remaining option term: September 1, 2022 through and including August 31, 2027

     (d) Landlord and Tenant each represent and warrant that it has had no dealings with any real
estate broker or agent in connection with the extension of the Lease term pursuant hereto or
negotiation of this First Amendment, and that it knows of no real estate broker, agent or finder
who is or might be entitled to a commission or fee in connection with the extension of the Lease
term pursuant hereto and/or this First Amendment. In the event of any claim for broker’s or
finder’s fees or commissions in connection with the extension of the Lease term pursuant hereto
and/or this First Amendment, (i) Landlord shall indemnify, hold harmless and defend Tenant from and
against any and all liability, claims, demands, damages and costs (including, without limitation,
reasonable attorneys’ fees and other litigation expenses) on account of such claim if it shall be
based upon any statement, representation or agreement claimed to have been made by Landlord, and
(ii) Tenant shall indemnify, hold harmless and defend Landlord from and against any and all
liability, claims, demands, damages and costs (including, without limitation,

 

 

reasonable attorneys’ fees and other litigation expenses) on account of such claim if it shall
be based upon any statement, representation or agreement claimed to have been made by Tenant.

2. Except as specifically amended by this First Amendment, the Lease shall continue in full force
and effect. In the event of any conflict between the provisions of the Lease and the provisions of
this First Amendment, the provisions of this First Amendment shall prevail.

3. This First Amendment may be executed in any number of counterparts, each of which shall be
deemed to be an original, but any number of which, taken together, shall constitute one and the
same instrument.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment as of the date
first written above.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	LANDLORD:

	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	LA CANADA PROPERTIES, INC.,

	 	 	 	SPORT CHALET, INC.,	 	 
	a California corporation

	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By: Eric Olberz 

	 	 	 	By: /s/ Dennis Trausch 
	 	 
	 
	 	 	 	 	 	 
	Eric Olberz, CFO

	 	 	 	Dennis Trausch, Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(Print Name and Title)

	 	 	 	(Print Name and Title)exv10w7

 

Exhibit 10.7

FIRST AMENDMENT TO LEASE

     THIS FIRST AMENDMENT TO LEASE (this “First Amendment”) is made and entered into as of
March 31, 2006, by and between HUNTINGTON BEACH PROPERTIES, INC., a California corporation
(“Landlord”), and SPORT CHALET, INC., a Delaware corporation (“Tenant”).

RECITALS:

A. Landlord currently leases to Tenant certain “Premises” (as more particularly described
in the “Lease”, as hereinafter defined), located at the southeast corner of Beach Boulevard
and Stark Street in Huntington Beach, California, pursuant to that certain Lease (the
“Lease”) dated as of August 25, 1994, by and between Landlord and Tenant (then known as
Sport Chalet, Incorporated, a Delaware corporation). All initial capitalized terms used herein but
not herein defined shall have the meaning ascribed to such terms in the Lease.

B. Landlord and Tenant now desire to enter into this First Amendment to amend the Lease to provide
for the grant of two (2) additional options to extend the Term of the Lease, each by an additional
five (5) year Option Term (in addition to the two (2) existing options to extend the Term of the
Lease each by an additional five (5) year Option Term, as provided in the Lease) for a total of
four (4) Option Terms of five (5) years each, on the terms and subject to the conditions more
particularly provided herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Landlord and Tenant agree as follows:

1. Notwithstanding anything to the contrary contained in the Lease

     (a) Section 3(c) of the Lease is hereby amended and restated as follows:

     Landlord hereby grants Tenant four (4) separate options (the “Options”) to
extend the Term of this Lease for four (4) separate consecutive terms (the “Option
Terms”) of five (5) years each, following expiration of the then existing Term, upon all
the terms and conditions contained in this Lease, except for the payment of Minimum Rent
which shall be in accordance with the provisions of 
Section 5(a) below. Tenant
shall give written notice of the exercise of each Option to Landlord at least six (6) months
prior to the expiration of the then applicable Term. Should Tenant neglect to exercise any
Option by the dates specified above, Tenant’s right to exercise shall not expire until
thirty (30) days after notice from Landlord of Tenant’s failure to exercise such Option.
References in this Lease to the “Term” shall mean the initial Term of this Lease, as
the same may be extended by any Option Terms, as applicable. Tenant shall have no other
right to extend the Term beyond the expiration of the fourth (4th) Option Term.

     (b) Section 4(a) of the Lease is hereby amended and restated as follows:

     Tenant shall pay Landlord “Minimum Rent” during the Term initially in the
amount of Forty-One Thousand Six Hundred Sixty-Seven Dollars ($41,667.00) per month, and
increasing as of April 1, 2006 to the amount of Fifty-Four Thousand One Hundred Sixty-Six
and 67/100ths Dollars ($54,166.67) per month, which amount shall remain effective through
to the expiration of the initial Term of the Lease. In the event of the extension of the
Term by any one or more of the Option Terms, Minimum Rent during the Option Term(s) shall
be as follows:

     (i) In the event of the extension of the Term by the first Option Term, Minimum Rent
shall be adjusted as of the commencement of the first Option Term to equal the product
obtained by multiplying the monthly Minimum Rent in effect immediately preceding the
commencement of the first Option Term (being $54,166.67 per month) by a fraction, the
numerator of which is two (2) times the “Index” (as hereinafter defined) for the
calendar month which is two (2) full months immediately preceding the commencement of the
first Option Term and the denominator of which is the Index for the calendar month which is
two (2) full months immediately preceding April 1, 2006; provided that in no event shall
Minimum Rent increase to be more than $56,875.00 (being one hundred five percent (105%) of
the Minimum Rent in effect prior to the commencement of the first Option Term).

 

 

     (ii) In the event of the extension of the Term by the second Option Term, the third
Option Term and/or the Fourth Option Term, Minimum Rent shall be adjusted as of the
commencement of the applicable Option Term to equal the product obtained by multiplying the
monthly Minimum Rent in effect immediately preceding the commencement of the applicable
Option Term by a fraction, the numerator of which is two (2) times the Index for the
calendar month which is two (2) full months immediately preceding the commencement of such
Option Term and the denominator of which is the Index for the calendar month which is
sixty-two (62) full months immediately preceding the commencement of such Option Term;
provided that in no event shall Minimum Rent increase to be more than one hundred ten
percent (110%) of the Minimum Rent in effect prior to the commencement of the applicable
Option Term.

As used herein, the “Index” shall mean the Consumer Price Index for All Urban
Consumers (Los Angeles/Anaheim/Riverside Area; Base 1982-84=100), as published by the
United States Department of Labor, Bureau of Labor Statistics (the “Bureau”).
Should such Bureau discontinue the publication of the Index, publish the same less
frequently or alter the same in some other manner, then the parties shall adopt a
substitute index or substitute procedure which reasonably reflects and monitors consumer
prices. Minimum Rent for any partial month occurring during the Term shall be prorated
based upon the number of days within such month occurring during the Term. Minimum Rent
shall be paid in monthly installments, in advance, on the first day of each calendar month,
without demand, offset or abatement, except as specifically otherwise provided in this
Lease.

     (c) Landlord and Tenant each represent and warrant that it has had no dealings with any real
estate broker or agent in connection with the extension of the Lease term pursuant hereto or
negotiation of this First Amendment, and that it knows of no real estate broker, agent or finder
who is or might be entitled to a commission or fee in connection with the extension of the Lease
term pursuant hereto and/or this First Amendment. In the event of any claim for broker’s or
finder’s fees or commissions in connection with the extension of the Lease term pursuant hereto
and/or this First Amendment, (i) Landlord shall indemnify, hold harmless and defend Tenant from and
against any and all liability, claims, demands, damages and costs (including, without limitation,
reasonable attorneys’ fees and other litigation expenses) on account of such claim if it shall be
based upon any statement, representation or agreement claimed to have been made by Landlord, and
(ii) Tenant shall indemnify, hold harmless and defend Landlord from and against any and all
liability, claims, demands, damages and costs (including, without limitation, reasonable attorneys’
fees and other litigation expenses) on account of such claim if it shall be based upon any
statement, representation or agreement claimed to have been made by Tenant.

2. Except as specifically amended by this First Amendment, the Lease shall continue in full force
and effect. In the event of any conflict between the provisions of the Lease and the provisions of
this First Amendment, the provisions of this First Amendment shall prevail.

3. This First Amendment may be executed in any number of counterparts, each of which shall be
deemed to be an original, but any number of which, taken together, shall constitute one and the
same instrument.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment as of the date
first written above.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	LANDLORD:

	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	HUNTINGTON BEACH PROPERTIES, INC.,

	 	 	 	SPORT CHALET, INC.,	 	 
	a California corporation

	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By: Eric Olberz 

	 	 	 	By: /s/ Dennis Trausch 
	 	 
	 
	 	 	 	 	 	 
	Eric Olberz, CFO

	 	 	 	Dennis Trausch, Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(Print Name and Title)

	 	 	 	(Print Name and Title)

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