Craig Levra, Chairman and Chief Executive Officer, Howard Kaminsky, Chief Financial Officer, and Dennis Trausch, Executive Vice President – Growth and Development, have each adopted a stock trading plan to sell shares of their Sport Chalet common stock. The plans, which were established under Rule 10b5-1 of the Securities Exchange Act of 1934, will commence on September 15, 2005 for Mr. Trausch and October 3, 2005 for Messrs. Levra and Kaminsky, subject to certain price restrictions and other contingencies established in the plans. The shares are being sold to raise funds to repay loans which were used to pay the exercise price and tax withholding obligations from the exercise of options. In addition, Messrs. Levra's and Kaminsky's loans also include the payment of additional tax obligations from the proposed transfer of Class B shares from the Olberz Family Trust following completion of the previously announced recapitalization plan.
The plans, effective for a term of four months, will allow Messrs. Levra, Kaminsky, and Trausch to sell shares of common stock through Wedbush Morgan Securities during the term. The shares, to be sold on a daily basis during the term, are shown in the table below after giving effect to the previously announced recapitalization plan and the sale of all shares under the trading plans.
Beneficial % of Beneficial % of
Ownership of Class A Ownership Outstanding
Class A Shares of Class A Class A
Shares to be Sold Shares Shares
Craig Levra 666,750 90,000 13.5% 0.8%
Howard Kaminsky 414,139 70,000 16.9% 0.6%
Dennis Trausch 360,476 7,500 2.1% 0.1%
Rule 10b5-1 permits an insider to implement a written plan for selling company stock at a time when the insider is not in possession of material, non-public information and to sell the shares, regardless of any subsequent material, non-public information the insider may receive or the price of the stock at the time of the sale.
