Exhibit 10.3.2

 

NOTICE OF GRANT OF STOCK OPTIONS

 

Non-Qualified Stock Option Agreement                       West Marine, Inc.    
                            ID: 94-2374523         Under the Omnibus Equity
Incentive Plan                       500 Westridge Drive            
                    Watsonville, GA 95076        

 

Director:  

 

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   Option Number:  

 

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         Effective Date:  

 

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ID #:  

 

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   Number of Shares:  

 

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         Exercise Price:  

 

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As of the effective date specified above, you have been granted a Non-Qualified
Stock Option to buy the number of shares of West Marine, Inc. (the “Company”)
common stock specified above at the exercise price per share specified above.
All of the options will expire no later than the tenth anniversary of the
effective date. All of the options will vest and become exercisable, assuming
continuous service as a director, on the date six months after the effective
date.

 

By your signature and the Company’s signature below, you and the Company agree
that these options are granted under and governed by the terms and conditions of
the Company’s Omnibus Equity Incentive Plan, as amended, and Appendix A hereto,
Non-Qualified Stock Option Agreement, all of which are incorporated herein and
made a part of this document.

 

West Marine, Inc.

 

By:  

 

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  Date:  

 

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Director:  

 

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  Date:  

 

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Address:  

 

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Director’s Non-Qualified       Option No.:                      Stock Option    
  ID:                                   

 

Appendix A

 

West Marine, Inc.

Omnibus Equity Incentive Plan

Nonqualified Stock Option Agreement

 

1. Grant of Option. The Company hereby grants a non-qualified stock option to
the Director under the terms of the Omnibus Equity Incentive Plan (the “Plan”).
This option entitles the Director to purchase, on the terms and conditions set
forth in this Agreement and the Plan, all or any part of the number of shares of
Common Stock set forth in the Notice of Grant of Stock Options, at the purchase
price set forth in the Notice of Grant of Stock Options. The option granted
hereby is not an Incentive Stock Option with the meaning of Section 422 of the
Code.

 

2. Exercise Price. The purchase price per share (the “Option Price”) shall be as
set forth in the Notice of Grant of Stock Options, which is the fair market
value per share of Common Stock on the effective date specified in the Notice of
Grant of Stock Options and Option Agreement. The Option Price shall be payable
in the legal tender of the United States or, in the discretion of the Committee,
in shares of Common Stock of the Company or in a combination of such legal
tender and shares.

 

3. Number of Shares. The number and class of shares specified in the Notice of
Grant of Stock Options, and/or the Option Price, are subject to appropriate
adjustment in the event of changes in the capital stock of the Company by reason
of stock dividends, split-ups or combinations of shares, reclassifications,
mergers, consolidations, reorganizations or liquidations. Subject to any
required action of the stockholders of the Company, if the Company shall be the
surviving corporation in any merger or consolidation, the option granted
hereunder (to the extent that it is still outstanding) shall pertain to and
apply to the securities to which a holder of the same number of shares of Common
Stock that are then subject to the option would have been entitled. To the
extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustments shall be made by the Governance and Compensation
Committee of the Board (the “Committee”), whose determination in that respect
shall be final, binding and conclusive.

 

4. Commencement of Exercisability. Except as otherwise provided in this
Agreement, the right to exercise the option awarded by this Agreement shall
accrue as to 100% of the shares subject to such option on the date which is six
months following the effective date of this Agreement, as set forth in the
Notice of Grant of Stock Options.

 

5. Termination of Option. The option awarded by this Agreement shall terminate
upon the expiration of ten (10) years from the date the option was granted,
provided that if the Director ceases to be a Director prior to the date that the
option has become exercisable under paragraph 4 of this Appendix A, such option
shall terminate on the date the Director ceases to serve as a Director.

 

6. Persons Eligible to Exercise. The option shall be exercisable during the
Director’s lifetime only by the Director. The option shall be non-transferable
by the Director other than by a beneficiary designation made in a form and
manner acceptable to the Committee, or by will or the applicable laws of descent
and distribution.

 

7. Death of Director. To the extent exercisable after the Director’s death, the
option shall be exercised only by the Director’s designated beneficiary or
beneficiaries, or if no beneficiary survives the Director, by the person or
persons entitled to the option under the Director’s will, or if the Director
shall fail to make testamentary disposition of the option, by his or her legal
representative. Any transferee exercising the option must furnish the Company
(a) written notice of his or her status as transferee, (b) evidence satisfactory
to the Company to establish the validity of the transfer of the option and
compliance with any laws or regulations pertaining to said transfer, and (c)
written acceptance of the terms and conditions of the option as prescribed in
this Agreement.

 

8. Exercise of Option. The option may be exercised by the person then entitled
to do so as to any shares which may then be purchased (a) by giving written
notice of exercise to the Company, specifying the number of full shares

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to be purchased and accompanied by full payment of the purchase price thereof
(and the amount of any income tax the Company is required by law to withhold by
reason of such exercise), and (b) by giving satisfactory assurances in writing
if requested by the Company signed by the person exercising the option, that the
shares to be purchased upon such exercise are being purchased for investment and
not with a view to the distribution thereof.

 

9. Suspension of Exercisability. If at any time the Company shall determine, in
its discretion, that the listing registration or qualification of the shares
covered by the option on any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory authority, is
necessary or desirable as a condition of the purchase of shares hereunder, the
option may not be exercised, in whole or in part, unless and until such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Company. The Company shall
make reasonable efforts to meet the requirements of any such state or federal
law or securities exchange and to obtain any such consent or approval of any
such governmental authority.

 

10. No Rights of Stockholder. Neither the Director nor any person claiming under
or through said Director shall be or have any of the rights or privileges of a
stockholder of the Company in respect of any of the shares issuable upon the
exercise of the option, unless and until certificates representing such shares
shall have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Director.

 

11. No Effect on Service. Nothing in this Agreement shall confer upon the
Director the right to continue in service on the Board.

 

12. Addresses for Notices. Any notice to be given to the Company under the terms
of this Agreement shall be addressed to the Company, in care of its Secretary,
at West Marine Products, Inc., 500 Westridge Drive, Watsonville, California
95076, or at such other address as the Company may hereafter designate in
writing. Any notice to be given to the Director shall be addressed to the
Director at the address set forth beneath the Director’s signature in the Notice
of Grant of Stock Options, or at such other address as the Director may
hereafter designate in writing. Any such notice shall be deemed to have been
duly given if and when enclosed in a properly sealed envelope, addressed as
aforesaid, registered or certified and deposited, postage and registry fee
prepaid, in a United States post office.

 

13. Non-Transferability of Option. Except as otherwise herein provided, the
option herein granted and the rights and privileges conferred hereby shall not
be transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise) and shall not be subject to sale under execution,
attachment or similar process. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of said option, or of any right or privilege
conferred hereby, contrary to the provisions hereof, or upon any attempted sale
under any execution, attachment or similar process upon the rights and
privileges conferred hereby, said option and the rights and privileges conferred
hereby shall immediately become null and void.

 

14. Maximum Term of Option. Notwithstanding any other provision of this
Agreement, this option is not exercisable after the expiration of ten (10) years
from the effective date of this Agreement, as set forth in the Notice of Grant
of Stock Options.

 

15. Binding Agreement. Subject to the limitation on the transferability of the
option contained herein, this Agreement shall be binding upon and inure to the
benefit of the heirs, legatees, legal representatives, successors and assigns of
the parties hereto.

 

16. Plan Governs. This Agreement is subject to all terms and provisions of the
Plan. In the event of a conflict between one or more provisions of this
Agreement and one or more provisions of the Plan, the provisions of the Plan
shall govern. Terms used and not defined in this Agreement shall have the
meaning set forth in the Plan.

 

17. Committee Authority. The Committee shall have the discretionary power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent

 

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therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee in good faith shall be
final and binding upon Director, the Company and all other interested persons.
No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan or
this Agreement.

 

18. Captions. Captions provided herein are for convenience only and are not to
serve as a basis for interpretation or construction of this Agreement.

 

19. Agreement Severable. In the event that any provision in this Agreement shall
be held invalid or unenforceable, such provision shall be severable from, and
such invalidity or unenforceability shall not be construed to have any effect
on, the remaining provisions of this Agreement.

 

20. Further Assurances. At any time, and from time to time after executing this
Agreement, the Director will execute such additional instruments and take such
actions as may be reasonably requested by the Company to confirm or perfect or
otherwise to carry out the intent and purpose of this Agreement.

 

21. Governing Law. This Agreement is to be governed by the laws of the State of
California without regard to conflicts of law principles thereof.

 

West Marine, Inc.

 

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