EXHIBIT 10.5


 


FORM OF NOTICE OF GRANT OF TIME-VESTED
RESTRICTED STOCK UNITS


AND


FORM OF TIME-VESTED RESTRICTED STOCK
UNIT AGREEMENT


FOR NON-EMPLOYEE DIRECTORS


 





 






West Marine, Inc.

500 Westridge Drive
 Watsonville, CA  95076 





 



 


FORM OF NOTICE OF GRANT OF TIME-VESTED
RESTRICTED STOCK UNITS


Grant Date: [DATE]


 


You have been granted the number of restricted common stock
units (“RSUs”) stated for you on the Morgan Stanley “Plan Documents” page at https://benefits.morganstanley.com (the “Morgan Stanley Website”).  


 


The RSUs entitle you to receive shares
of West Marine, Inc. (the “Company”) common stock at a future date, subject to the satisfaction of the terms and conditions
set forth herein and in the Amended and Restated West Marine, Inc. Omnibus Equity Incentive Plan approved by the Company’s
Board of Directors (“Board”) on April 12, 2017 and approved by stockholders on June 1, 2017 (the “Plan”)
and the Restricted Stock Unit Agreement (the “Award Agreement”) attached hereto as Exhibit A.  Capitalized
terms not explicitly defined in this Grant Notice but defined in the Plan shall have the same definitions as in the Plan.


 


The RSUs will vest as follows, assuming
continuous employment or as otherwise determined by the Company’s Board or its Compensation and Leadership Development Committee
(the “Committee”):


 





	%
    of Total  	 	Date
    Vest  
	100%	 	Earlier of 1st Anniversary of Grant Date or
    _________ Annual Stockholders Meeting  (“Vest Date”)







 





The RSUs granted hereunder hereinafter
are referred to as the “RSU Grant.”


 





 






You and the Company agree that the RSU Grant is granted under and governed by the terms and conditions of the Plan and the Award Agreement (collectively, the “Plan Documents”), all of which are incorporated herein and made a part of this document.  You acknowledge that a copy of the Plan Documents have been made available to you.  


 


You further acknowledge and agree that the Award Agreement does not require your signature or the Company’s signature to be effective, and that this Notice of the RSU Grant issued to you (which notice may be accomplished through the posting thereof on a website for the Plan Documents), shall be sufficient evidence of the issuance to, and acceptance by, you of the RSU Grant reflected in the Award Agreement, unless you expressly reject such Award Agreement in writing.  


 


Additionally, unless you expressly reject such Award Agreement in writing, you further acknowledge and agree that prior to the delivery of any shares or cash pursuant to the Plan, the Company shall have the power and the right to deduct or withhold, or require you to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes (including your FICA obligation) required by law to be withheld, plus any fees assessed by Morgan Stanley, with respect to any RSU Grant.  In this regard, you authorize the Company to withhold shares having a value equal to the amount required to be withheld to satisfy such tax and fee obligations.  


 





 









	Non-Employee Director’s Restricted Stock Units	RSU No.:   On website
	(1 year - 100%)	ID:        Number


 




     


     


    

 


Exhibit A


West Marine, Inc.


Amended and Restated Omnibus Equity Incentive
Plan, effective April 12, 2017 and approved by Stockholders on June 1, 2017 


 


FORM OF TIME-VESTED RESTRICTED STOCK
UNIT AGREEMENT


 


1.           GRANT
OF RESTRICTED STOCK UNITS.  West Marine, Inc. (the “Company”) hereby grants to the Non-Employee Director
named in the “Notice of Grant of Restricted Stock Units” (the “Notice of Grant”) under the Amended and
Restated West Marine, Inc. Omnibus Equity Incentive Plan, approved by the Company’s Board of Directors (“Board”)
effective April 12, 2017 and approved by stockholders on June 1, 2017 the “Plan”), as a separate incentive in connection
with his or her engagement and not in lieu of any compensation for his or her services, on the terms and conditions set forth in
this Restricted Stock Unit Agreement (“Agreement”) and the Plan, the restricted stock units (“RSUs”) which
entitle the Non-Employee Director on a future date to receive the number of shares of Common Stock set forth for the Non-Employee
Director on the Morgan Stanley Website as referenced in the Notice of Grant. Capitalized terms not explicitly defined in this Agreement
but defined in the Notice of Grant and/or the Plan shall have the same definitions in the Notice of Grant and/or the Plan, as applicable.


 


2          NUMBER
OF SHARES.  The number and class of shares specified in the Notice of Grant are subject to appropriate adjustment
in the event of an “Adjustment Event” as such term is defined in the Plan. 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 RSUs 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 RSUs 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 Board or the Committee, whose determination
in that respect shall be final, binding and conclusive.


 


3.           LAPSE
OF RSU RESTRICTIONS.  Except as otherwise provided in this Agreement and subject to the terms of the Plan, the right
to receive the shares of Common Stock promised by this Agreement shall accrue on the Vest Date as set forth in the Notice of Grant.
Upon vesting, each RSU will be settled by payment of one share of common stock. Payment of such shares of common stock shall be
made as soon as administratively feasible. The Company shall not be required to issue any fractional shares of Common Stock and
the Company may round any fractional shares down to the nearest whole share.


 


Except as set forth in this Section 3,
or as otherwise determined by the Board and or the Committee, or as provided in another Company plan applicable to the Associate,
if any, in the event of termination of the Non-Employee Director’s engagement with the Company and its Subsidiaries for any
reason, the Non-Employee Director will accrue no further entitlement to the RSUs under the Plan, or otherwise, and all RSUs which
have not become fully vested under this Section 3 as of the date the Non-Employee Director’s engagement is terminated shall
lapse and expire immediately.  


 


4.          DISTRIBUTION
DATE. Subject to any overriding provisions in the Plan, this Award Agreement or any applicable condition of receipt, as soon
as administratively feasible following the respective vesting date under Section 3 of this Agreement, the Company shall transfer
to the Non-Employee Director shares equivalent to the RSUs (less any fees and/or applicable tax withholding as set forth in
the Plan) which vested as of such date, provided that in no event shall such shares be distributed later than March 15 of the year
following the calendar year in which the RSUs vested.


 


5.          CONDITIONS
OF RECEIPT.  The Company may postpone issuing and delivering any shares in settlement of RSUs for so long as the
Company determines to be advisable to satisfy any conditions, including the following: (i) its completing any administrative or
ministerial tasks necessary to accomplish such issuance and/or delivery ; (ii) its receiving proof it considers satisfactory that
a person seeking to receive the RSU shares after the Non-Employee Director’s death is entitled to do so; (iii) the Non-Employee
Director complying with any requests for representations under the Plan; and (iv) the Non-Employee Director complying with any
Federal, state, or local tax withholding obligations.


 


6.          ADDITIONAL
REPRESENTATIONS FROM THE NON-EMPLOYEE DIRECTOR.  If the Non-Employee Director is entitled to receive RSU shares at
a time when the Company does not have a current registration statement (generally on Form S-8) under the Securities Act of 1933
(the “Act”) that covers issuances of such shares to the Non-Employee Director, the Non-Employee Director must comply
with the following before the Company will issue any shares to the Non-Employee Director. The Non-Employee Director must: (i) represent
to the Company, in a manner satisfactory to the Company’s counsel, that the Non-Employee Director is acquiring the RSU shares
for the Non-Employee Director’s own account and not with a view to reselling or distributing the RSU shares; and (ii) agree
that the Non-Employee Director will not sell, transfer, or otherwise dispose of the RSU shares unless a registration statement
under the Act is effective at the time of disposition with respect to the RSU shares the Non-Employee Director proposes to sell,
transfer, or otherwise dispose of; or the Company has received an opinion of counsel or other information and representations it
considers satisfactory to the effect that, because of Rule 144 under the Act or otherwise, no registration under the Act is required.


 






     


     


    

 


7.          DIVIDEND
RIGHTS. If the Company pays a cash dividend or, if the Board or Committee determines that any such Dividend be paid as a Dividend
Equivalent (as such terms are defined in the Plan), such Dividend or Dividend Equivalent shall accrue to any RSU for which the
Period of Restriction (as defined in the Plan) has not lapsed. Such Dividend or Dividend Equivalent shall not be paid to holders
of RSUs unless or until shares of Common Stock are transferred to the Non-Employee Director in settlement of the RSU. Dividend
Equivalents shall be subject to the same vesting terms and conditions as the underlying RSUs to which they relate, and subject
to any adjustment pursuant to an Adjustment Event as specified in the Plan. If any distributions on Common Stock are paid in shares
of Common Stock or other securities, such Common Stock or other securities shall be subject to the same restrictions, including
restrictions on transferability and forfeitability, as the underlying RSU with respect to which such distributions were paid..


 


8.           RIGHTS
OF STOCKHOLDER.  The Non-Employee Director shall have no rights or privileges of a stockholder of the Company, including
but not limited to voting or dividend rights, until shares are transferred to the Non-Employee Director in settlement of the RSU.


 


9.           UNSECURED
CREDITOR.  The RSU Grant creates a contractual obligation on the part of the Company to make a distribution of the
shares pursuant to the RSU Grant at the time provided for in this Agreement.  Neither the Non-Employee Director nor any
other party claiming an interest in the RSU Grant hereunder shall have any interest whatsoever in any specific asset of the Company.  The
Non-Employee Director’s right to receive distributions hereunder is that of an unsecured general creditor of the Company.


 


10.         RSU
GRANTS HAVE NO EFFECT ON ENGAGEMENT.  The terms of Non-Employee Director’s engagement shall be determined from
time to time by the Company, and the Company shall have the right, which is hereby expressly reserved, to terminate or change the
terms of the engagement of the Non-Employee Director at any time for any reason whatsoever, with or without good cause.


 


11.         NO
REPRESENTATIONS OR PROMISES.  Neither the Company nor anyone else is making any representations or promises regarding
the duration of the Non-Employee Director’s service, vesting of the RSU, the value of the shares or of the RSUs, or the Company’s
prospects.  In addition, the Company does not hereby provide any advice regarding tax consequences to the Non-Employee
Director or regarding the Non-Employee Director’s decisions regarding the RSUs. The Non-Employee Director agrees to rely
only upon the Non-Employee Director’s own personal advisors for financial or tax advice for all matters pertaining to the
RSUs.


 


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, Inc., 500 Westridge Drive, Watsonville, CA 95076, or at such other address as the Company
may hereafter designate in writing. Any notice to be given to the Non-Employee Director shall be addressed to the Non-Employee
Director at the at the last known address that the Company has on file for the Non-Employee Director or at such other address as
the Non-Employee 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.
The RSUs 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 RSU, 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 RSU and the rights and privileges conferred hereby shall immediately become null and
void.


 


14.         BINDING
AGREEMENT. Subject to the non-transferability of the RSU, this Agreement shall be binding upon and inure to the benefit of
the heirs, legatees, legal representatives, successors and assigns of the parties hereto.


 


15.         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.


 






     


     


    

 


16.         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 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 Non-Employee 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.


 


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


 


18.         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.


 


19.         FURTHER
ASSURANCES. At any time, and from time to time after executing this Agreement, the Non-Employee 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.


 


20.         COMPLIANCE
WITH LAW. The Company will not issue the RSU shares if doing so would violate any applicable federal or state securities laws,
or any other applicable law or regulation. The Non-Employee Director may not sell or otherwise dispose of the RSU shares in violation
of applicable law.


 


21.         SECTION
409A. The RSU is intended to comply with the requirements of Section 409A and will be construed consistently with that section.
Nevertheless, the Company makes no representations or warranties and shall have no liability to the Non-Employee Director or any
other person, if any provisions of or distribution under this Agreement is determined to constitute deferred compensation subject
to Section 409A but not to satisfy the conditions of that section. Neither the Company nor the Non-Employee Director shall have
the right to accelerate or defer the delivery of any shares except to the extent specifically permitted or required by Section
409A. In no event may the Company or the Non-Employee Director defer the delivery of the shares beyond the date specified in Section
4 of this Agreement, unless such deferral complies in all respects with Treasury Regulation Section 1.409A-2(b) related to subsequent
changes in the time or form of payment of nonqualified deferred compensation arrangements, or any successor regulation.


 


22.         GOVERNING
LAW. The Agreement, RSUs and all related documentation and matters shall be construed in accordance with and governed by the
laws of the State of California (without giving effect to principles of conflicts of laws thereof) and applicable Federal law.


 


23.         ENTIRE
AGREEMENT. This Agreement and the Notice of Grant (in each case, subject to applicable provisions of the Plan) contains the
entire agreement among the parties relating to the subject matter hereof and there are no other or further agreements outstanding
not specifically mentioned herein; provided, however, that the Company may amend and supplement this Agreement in writing from
time to time as permitted under the Plan.


 


IN WITNESS WHEREOF, this Agreement is deemed
to be executed by the parties effective as of the Grant Date of the Notice of Grant.


 


West Marine, Inc.