Document:

Second Amendment, dated as of April 7, 2003, to Employment Agreement

 
Exhibit 10.5

 
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 
This is a second amendment (“Second
Amendment”), effective as of this 7th day of April, 2003, to that certain Employment Agreement dated as of May 1, 2002 and entered into by and between West Marine, Inc., a Delaware corporation and all of its subsidiary corporations
(collectively, “Company”), each with an address at 500 Westridge Drive, Watsonville, California 95076, and Russell Solt (“Executive”), residing at 202 3rd Street, P.O. Box 2142 Gearhart, Oregon 97138 (“Employment Agreement”), as amended by that certain First Amendment to the Employment Agreement dated
as of September 17, 2002 (“First Amendment”). 
 
WHEREAS, Company recognizes that the Executive’s contributions as the CFO to the growth and success of the Company have been substantial but that Executive desires to resign his position as CFO and, prior to the effective date
of such resignation, assist with the final transitioning of the CFO position to his expected successor (“Successor CFO”), which transitioning is expected to be finalized within a thirty (30) day period from the Effective Date;

 
WHEREAS, Company desires to accept such
resignation upon completion of the transitioning services and immediately thereafter employ Executive as the Company’s IR Director, and Executive desires to accept such employment, on the terms and conditions specified in the Employment
Agreement, as modified by the First Amendment and this Second Amendment; and 
 
WHEREAS, Company and Executive desire to amend certain provisions of the Employment Agreement, as modified by the First Amendment, in accordance with the foregoing. 
 
NOW, THEREFORE, in consideration of the foregoing premises and
mutual covenants hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Executive agree as follows: 
 

	1.	 	The foregoing recitals are incorporated herein. 

 

	2.	 	This Second Amendment will be effective as of the date first written above (“Effective Date”). 

 

	3.	 	All capitalized terms used but not defined herein shall have the same meaning ascribed to such term as in the Employment Agreement, as amended by the First Amendment
and this Second Amendment. 

 

	4.	 	Section 2 of the Employment Agreement is deleted in its entirety and replaced with the following provision: 

 
“2. Term. 
 
a.    Except in the case
of earlier termination, as hereinafter specifically provided, the initial term of the CFO Employment Term shall commence on May 1, 2002 and shall continue through and including May 7, 2003 (“CFO Employment Termination Date”). From and
after the Effective Date of this Second Amendment through and including the CFO Employment Termination Date, Executive shall, in addition to the performance of the services consistent with his status as Chief Financial Officer, Executive Vice
President and Secretary of the Company, use his best efforts to finalize the succession planning and training of the Successor CFO. 
 
b.    Except in the case of earlier termination, as hereinafter specifically provided, the initial
term of the IR Employment Term shall commence on May 8, 2003 and shall continue until April 30, 2004. Thereafter, the IR Employment Term shall be renewed automatically for additional one (1) year periods unless Executive or Company gives written
notice to the other of his/its desire to terminate the IR Employment Term or to modify its terms at least thirty (30) calendar days prior to the expiration of the then current term. Each such extended term shall be subject to the terms and
conditions of this Agreement, except as modified by the parties, and except for compensation, which shall be adjusted, if at all, in accordance with Section 3(b) below.” 
 

	5.	 	Except as modified hereby, the Employment Agreement remains unmodified and in full force and effect. In the event of any conflict between the terms of the Employment
Agreement and/or the First Amendment and this Second Amendment, the terms of this Second Amendment will govern. 

 
IN WITNESS
WHEREOF, the parties have executed this Second Amendment, effective as of the Effective Date. 
 
COMPANY: 
 
West
Marine, Inc. and its Subsidiaries: 

	
	 /s/    JOHN H.
EDMONDSON

	 By:
	 	 John H. Edmondson, CEO

 
 
 

	 EXECUTIVE:

	
	 /s/    RUSSELL
SOLT

	 Russell SoltExecutive Termination Severance Agreement, dated as of February 7, 2000

 
Exhibit 10.6 
500 Westridge Drive 
Watsonville, CA 95076-4100 
Telephone (831) 728-2700 
 
February 7, 2000

 
Eric Nelson 
2537 SE Stephens St. 
Portland, OR 97214

 
Dear Eric: 
 
I am please to extend to you the offer in writing to join West Marine as Vice
President and Controller. I am confident that you will fit well with the other senior members of our management and make a great contribution toward moving our company forward. Reporting to the Controller position will be Cash Management, Financial
Reporting, and Financial Planning & Analysis functions of West Marine. The salary for this position will be $150,000 annually, and in addition, we will award you a sign-up bonus of $5,000 payable within 30 days of your date of hire.

 
The stock option award will be an individual grant of 30,000
shares vesting at 20% annually. Additional grants will be awarded each year with a value that is at the discretion of West Marine’s Board of Directors. The Controller position carries a 30% target bonus. The bonus determinations have not been
finalized for the year 2000, but past awards have been based exclusively on attainment of an EPS target. The bonus program has a 4:1 leverage ratcheting up or down from the bonus target. There is a ceiling on bonus that has not yet been determined
for the year 2000. 
 
Your employment with West Marine is for no
specified period and constitutes “at-will” employment. As a result, you are free to terminate employment at any time, for any reason or for no reason. Similarly, West Marine is free to terminate your employment at any time for any reason
or no reason. 
 
However, if the Company terminates your employment
for any reason other than cause, the Company will compensate you with one half of your annual salary. Payment would be made through regular pay periods until complete or new employment is obtained. 
 
You are, of course, entitled to all West Marine benefits including medical,
dental, profit sharing, etc. providing you meet the company requirements to enter each program which are basically time based. It is our aim to cover all reasonable relocation expenses. In that regard, we will cover the sales commission on the sale
of your Oregon home, any loan points upon buying a new home, cost of moving household items and up to three months temporary living. 
 
Eric, I sincerely look froward to working with you and having the two of us, as well as the entire West Marine team, enjoy the benefit of the fruits of
our labor. We have an exciting company and opportunity, and I believe a quality executive such as you truly belongs here. 
 
Sincerely, 
 
/s/    Russell Solt 
 
Russell E. Solt 
CFO 
cc: Linda Kennedy 
 
Please acknowledge your
acceptance of the above offer by signing below and returning it to my attention marked “CONFIDENTIAL”. 

	
	 	 	 /s/    Eric
Nelson        

	 	 2/22/2000

	 	 	 Eric Nelson
	 	 DateSecond Amendment, dated as of June 11, 2002, to Lease Agreement

 
Exhibit 10.7

 
SECOND AMENDMENT 
TO 
INDUSTRIAL REAL ESTATE LEASE 
(SINGLE-TENANT FACILITY) 
(Bert Drive, Hollister) 
 
This Second Amendment to Industrial Real Estate Lease (Single-Tenant Facility) (the “Second Amendment”) is entered into as of
June 11, 2002 (the “Effective Date”) by and between CARMEL RIVER, LLC, a Delaware limited liability company (“Carmel”) and VANVALKENBURGH INVESTMENTS, LLC, a Delaware limited liability company
(“VVI”) as successors in interest to Carl D. Panattoni (“Panattoni”) and John E. Van Valkenburgh (“Van Valkenburgh”) (collectively the “Landlord”) and WEST MARINE PRODUCTS, INC., a California
corporation (the “Tenant”). 
 
RECITALS 
 

	 	A.	 	Landlord and Tenant entered into that certain Industrial Real Estate Lease (Single-Tenant Facility) dated June 15, 1995 with Addendum, as amended by that certain
Addendum to Lease dated June 3, 1996 and First Amendment to Industrial Real Estate Lease (Single-Tenant Facility) dated March 3, 1999 (collectively the “Lease”), for those certain premises located at 2395 Bert Drive in the City of
Hollister, County of San Benito, State of California (the “Property”). On April 5, 2002, Panattoni and Van Valkenburgh assigned all of their right, title and interest in and to the Lease to Carmel and VVI. 

 

	 	B.	 	On May 22, 2002, Tenant exercised Tenant’s option to expand the Building (as defined in the Lease) pursuant to Section 1.04 of the Addendum to Lease by
delivering written notice to Landlord. 

 

	 	C.	 	Landlord and Tenant now hereby desire to amend the Lease in order to reflect the new Landlord entities and to clarify and amend the terms and conditions of the
option to expand as set forth in Section 1.04 of the Addendum to Lease. 

 
NOW, THEREFORE, in consideration of the foregoing and the mutual agreement of Landlord and Tenant hereto to the terms and conditions set forth below, the Landlord and Tenant agree as follows:

 
AGREEMENT 
 

	 	1.	 	Section 1.02. Landlord. The Landlord shall be: Carmel River, LLC, a Delaware limited liability company and Van Valkenburgh Investments, LLC, a Delaware
limited liability company. The address of Landlord shall remain the same being: 8401 Jackson Road, Sacramento, CA 95826 

 

	 	2.	 	 Section 1.04. Property. The terms and conditions as set forth in Section 1.04 of the Addendum to Lease are hereby affirmed and ratified herein. The
following terms and conditions are intended to clarify and amend Section 1.04 of the Addendum to Lease as follows: the Expansion Space (as defined in the Lease) shall be constructed on the Property having the same legal description as set forth in
the Lease in accordance with the site plan (“Site Plan”) described as Exhibit “A”, attached hereto and made a part hereof. By execution of this Second Amendment, Tenant hereby approves the Site Plan set forth in Exhibit
“A”. Landlord shall construct the Expansion Space at Landlord’s sole cost and expense in conformity with the Rider 2 Work Letter as used for the Original Space (as defined in the Lease), excepting any tenant improvements shall be
at Tenant’s sole cost and expense. The Expansion Space shall be constructed in accordance with the building specifications (“Building Specifications”) described on Exhibit “B”, attached hereto and made a part hereof
in conformity with the plans and specifications (“Plans and 

 

1 

	 	 
Specifications”) to be prepared by Landlord and approved in writing by Tenant in conformity with the process for submission contained in
the Rider 2 Work Letter as used for the Original Space. By execution of this Second Amendment, Tenant hereby approves the Building Specifications set forth in Exhibit “B”. The rent for the Expansion Space shall be the same as the
rent for the Original Space subject to the current lease year and the term of the Lease for the Expansion Space shall be coterminous with the Lease Term (as defined in the Lease) of the Original Space. 

 

	3.	 	Ratification. Except as modified by this Second Amendment, the Lease, its Addendum, Exhibits, riders, and amendments are ratified, affirmed, in full
force and effect, and incorporated herein by this reference. This Second Amendment is intended to modify the Lease and shall be deemed to amend any language in the Lease which is read or interpreted contrary to the agreements set forth herein. Any
covenant or provision of the Lease which is not inconsistent with this Second Amendment, shall remain in full force and effect. Any capitalized term contained herein not otherwise defined herein shall have the same meaning set forth in the Lease.

 

	4.	 	Counterparts. This Second Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same
instrument. 

 
[Remainder of Page
Intentionally Left Blank] 
 
[Signatures begin on
next page] 
 

2 

 
SIGNATURE
PAGE 
 
IN WITNESS WHEREOF, the Landlord and
Tenant have executed this Second Amendment as of the date set forth below. 
 
LANDLORD: 
 
CARMEL RIVER, LLC,

A Delaware limited liability company 
 

	
	 By:
	 	 /s/    CARL D. PANATTONI

	 	 	 Carl D. Panattoni, Trustee of the Panattoni
 Living Trust, Dated April 8, 1998, Sole Member

	
	 Date: June 25, 2002

 
 
VAN VALKENBURGH INVESTMENTS, LLC, 
A Delaware
limited liability company 
 

	
	 By:
	 	 /s/    JOHN E.
VALKENBURGH

	 	 	 John E. Van Valkenburgh, Trustee of the Van Valkenburgh
 Revocable Trust, Dated January 14, 1988, Sole Member

	
	 Date: June     , 2002

 
 
TENANT: 
 
WEST MARINE PRODUCTS, INC., 
A California corporation 
 

	
	 By:
	 	 /s/    FRANK G. FAWCETT

	 Name:
	 	 Frank G. Fawcett

	 Its:
	 	 A.V.P.

 
 

	
	 By:
	 	 /s/    LINDA I LEYBA

	 Name:
	 	 Linda I Leyba

	 Its:
	 	 Senior Director

 
Date: July 19, 2002

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