EXECUTIVE EMPLOYMENT AGREEMENT

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (“Agreement”) is entered into as of this 11 ^th day of December, 2006 (the “Effective Date”), by and between West Marine, Inc. and West Marine Products, Inc . (collectively, the “Company”), with offices at 500 Westridge Drive, Watsonville, California 95076, and Thomas Moran (the “Executive”), with an address at 39 Jones Street, Hingham, Massachusetts 02043.

1. POSITION, EMPLOYMENT PERIOD AND DUTIES.

(a) Executive shall diligently and conscientiously devote Executive’s full business time, attention, energy, knowledge, skill and diligent efforts to the business of the Company and the discharge of Executive’s duties hereunder. Executive will abide by all policies and decisions made by the Company, as well as all applicable federal, state and local laws, regulations or ordinances. Executive’s duties under this Agreement shall be to serve as the Chief Financial Officer, with the responsibilities, rights, authority and duties customarily pertaining to such office and as may be established from time to time by the Chief Executive Officer (“CEO”) under the direction of the Board of Directors of the Company (the “Board”) or its designees. Executive shall also act as an officer and/or director and/or manager of such affiliates of the Company as may be designated by the Company under the direction of the Board from time to time, commensurate with Executive’s office, all without further compensation, other than as provided in this Agreement. As an exempt, salaried employee, Executive will be expected to work such hours as required by the nature of Executive’s work assignments. The Company reserves the right to modify Executive’s position and duties at any time in its sole and reasonable discretion.

(b) Employment with the Company is not for a specified term and is at the mutual consent of the Company and Executive. Accordingly, either the Executive or the Company can terminate the employment relationship at will, with or without cause and with or without notice, at any time, subject to the provisions of this Agreement. This is an integrated agreement with respect to the at will nature of the employment relationship, and there are not now and may not be in the future any implied or oral agreements that in any way modify this at will employment relationship.

(c) The date Executive is to commence employment with the Company is January 8, 2007 (“Commencement Date”). During the period of time in which the Executive is employed by Company (the “Employment Period”), the Executive shall be subject to, and shall act in accordance with, all reasonable instructions and directions of the Company that are consistent with Executive’s position.

2. PLACE OF EMPLOYMENT. Executive’s performance of services under this Agreement shall be rendered in Watsonville, California, subject to necessary travel requirements of Executive’s position and duties hereunder.

3. COMPENSATION, BONUS, BENEFITS AND STOCK OPTIONS.

(a) Base Salary. The Company shall pay to Executive base salary compensation at an annual rate of not less than $ 290,000. On March 8, 2007, the Executive’s base salary will be increased to $ 300,000 and annually thereafter, the CEO shall review Executive’s base salary in light of the performance of Executive and the Company, and may maintain or increase such base salary by an amount the CEO determines to be appropriate, subject to the guidelines established by the Board from time to time for Executive’s position (“Base Salary”). Executive’s Base Salary shall be paid in accordance with the Company’s payroll practices in effect from time to time for executive officers, including all applicable withholdings.

(b) Bonus Plan. If the Company adopts and/or maintains a bonus program providing for annual bonus awards to its senior executives, the Executive shall be entitled to participate therein, at a targeted rate equal to 40% of Executive’s Base Salary, subject, however, to the achievement of annual performance objectives and/or other criteria which shall be established and approved (as may be modified from time to time) by the Board or any authorized committee thereof for the Executive and the other members of the Company’s senior executives. The Executive’s bonus amount, if any, for each fiscal year of the Employment Period shall be determined after the close of such fiscal year at the usual time for such determinations, and paid to Executive at the time such bonuses are paid in accordance with the Company’s practices in effect from time to time for senior executives, subject to applicable withholdings, and further subject to the provisions of Section 5(f) below.

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(c) Option Grant. As additional consideration for the services to be rendered by Executive under this Agreement, the Company will grant to Executive, from the Company’s 2006 Omnibus Equity Incentive Plan, as amended from time to time (the “Plan”), stock options to purchase 50,000 shares of the Company’s common stock, subject to approval by the Board at its next regularly scheduled Board meeting, and further subject to the terms and conditions applicable to stock options granted under the Plan (or any successor plan) and to stock option agreement related to such grant. The stock options will be granted on the next regularly scheduled meeting of the Board at an exercise price per share equal to 100% of the fair market value per share on such grant date. The stock options will have a term of 5 years and will vest at 25% per year over a four-year period if and until all shares are vested.

(d) Benefits. Executive shall be eligible to participate in all employee benefit programs of the Company offered from time to time during the Employment Period by the Company to employees or senior executive officers of Executive’s rank, at the Company’s cost, subject to any portion of the costs required to be contributed by Executive, to the extent that Executive qualifies under the eligibility provisions of the applicable plan or plans, in each case consistent with the Company’s then-current practice as approved by the Board from time to time.

(e) Paid Time Off. Executive shall be entitled to paid time off (“PTO”) of up to 4 weeks per calendar year, with such number of weeks being pro-rated for the remainder of the 2006 calendar year. Executive may roll-over unused PTO time from one calendar year to another, subject to the Company’s policy in effect from time to time relative to PTO accrual, roll-over and advance payout.

(f) Business Expenses. The Company shall promptly reimburse Executive for Executive’s reasonable and necessary expenditures for travel, entertainment and similar items made in furtherance of Executive’s duties under this Agreement consistent with the policies of the Company as applied to all executive officers. Executive shall document and substantiate such expenditures as required by the policies of the Company as applied to all executive officers, including an itemized list of all expenses incurred, the business purposes for which such expenses were incurred, and such receipts as Executive reasonably has been able to obtain.

(g) Relocation Expenses. With respect to the Executive’s relocation to the Northern California area, the Company will provide the following benefits or reimbursements of expenses:

i. If required, the Company will provide the Executive with or reimburse the Executive for temporary living quarters in the Northern, California area for a reasonable period of time, not to exceed 3 months after the Commencement Date, and for a reasonable cost, not to exceed $ 2,300 per month;

ii. If required, the Company will provide round-trip coach class airline tickets, purchased through the Company’s travel service, for up to six (6) trips for the Executive’s spouse during the Executive’s first three (3) months of employment in connection with finding suitable housing;

iii. The Company will reimburse the Executive for reasonable, customary closing costs including, but not limited to: inspection fees, title charges, processing fees, and escrow fees paid by Executive for the sale of Executive’s current residence and the purchase of a new residence in Northern California, provided that Company’s reimbursement of closing costs related to such sale and/or purchase, in the aggregate, does not exceed $40,000; and

iv. The Company will reimburse the Executive for all reasonable, standard costs approved by the Company in advance in connection with moving the Executive’s home furnishings and personal belongings, which approval shall not be unreasonably withheld.

(h) Modification of Benefits Plan. Nothing contained in this Agreement shall be construed to require the Company or the Board to establish any benefit plans or to prevent the modification or termination thereof once established, and no such action or failure thereof shall affect this Agreement. Executive recognizes that the Company has the right, in its sole discretion, to amend, modify or terminate any benefit plans without creating any rights in Executive.

4. INSURANCE & INDEMNIFICATION . The Company, at its expense, shall provide the Executive with coverage under the Company’s directors’ and officers’ liability insurance policy at the same level provided the other directors and officers of the Company (“D&O Insurance”). The Company shall indemnify the Executive as set forth in the form of Indemnification Agreement attached hereto as Exhibit “A” and incorporated herein by this reference.

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5. TERMINATION OF EMPLOYMENT.

(a) Death. The Executive’s employment hereunder shall terminate upon Executive’s death.

(b) Disability. The Company shall be entitled to terminate the Executive’s employment hereunder for “Disability” if, as a result of the Executive’s incapacity due to physical or mental illness or injury, the Executive shall have been unable to perform Executive’s duties hereunder for a period of ninety (90) consecutive days, and within thirty (30) days after Notice of Termination (as defined in Section 6 below) for Disability is given following such 90-day period the Executive shall not have returned to the performance of Executive’s duties on a full-time basis.

(c) By Company for “Cause.” The Company may terminate the Executive’s employment hereunder immediately for “Cause.” For purposes of this Agreement, the term “Cause” shall mean:

i. Executive’s breach of any of the covenants contained in Sections 6(a) (confidentiality), 6(b) (exclusive employment and non-solicitation), 6(c) (works for hire), and 6(d) (non-disparagement) provisions of this Agreement;

ii. Executive’s conviction by, or entry of a plea of guilty or nolo contendere in, a court of competent and final jurisdiction for any crime involving moral turpitude or punishable by imprisonment in the jurisdiction involved;

iii. Executive’s commission of an act of fraud, whether prior to or subsequent to the Effective Date hereof upon the Company;

iv. Executive’s continuing repeated willful failure or refusal to perform Executive’s duties as required by this Agreement (including, without limitation, Executive’s inability to perform Executive’s duties hereunder as a result of chronic alcoholism or drug addiction and/or as a result of any failure to comply with any laws, rules or regulations of any governmental entity with respect to Executive’s employment by the Company);

v. Executive’s gross negligence, gross insubordination or material violation of any duty of loyalty to the Company or any other material misconduct on the part of Executive;

vi. Executive’s intentional commission of any act which Executive knows (or reasonably should know) is likely to be materially detrimental to the Company’s business or goodwill; or

vii. Executive’s breach of any material provision of this Agreement.

(d) Without Cause; for Good Reason. The Company may terminate the Executive’s employment hereunder during the Employment Period without Cause (which termination shall be effective on the date specified by Company), and the Executive may terminate Executive’s employment hereunder during the Employment Period for Good Reason, provided that Executive serves notice on the Company specifically identifying the conduct that the Executive believes constitutes Good Reason and gives the Company fifteen (15) days to cure such conduct. For purposes of this Agreement, the term “Good Reason” shall mean: (i) a material diminution of the authority, duties or responsibilities of the Executive as provided in Section 1 hereof; (ii) a material diminution in the Executive’s title; or (iii) a breach of any material provision of this Agreement by the Company.

(e) Voluntarily. The Executive may voluntarily terminate Executive’s employment hereunder, provided that the Executive provides the Company with notice of Executive’s intent to terminate Executive’s employment at least forty-five (45) days in advance of the effective date of termination.

(f) Termination Payments.

i. Without Cause or For Good Reason. In the event of the termination of the Executive’s employment during the Employment Period by the Company without Cause or by the Executive for Good Reason, the Company’s obligations to Executive under this Agreement shall be limited to: (A) the payment of Executive’s Base Salary through the date of termination to the extent accrued but not paid by then; (B) the payment of any unused accrued PTO through the date of termination; (C) the payment of any reimbursable business expenses documented and incurred by Executive prior to termination in accordance with the Company’s policies in effect at such time and that were not reimbursed by the Company at the time of the termination; (D) the payment of severance to Executive in an amount equal to six (6) months of the Executive’s then current Base Salary (“Severance Period”), payable over the Severance Period in substantially equal payments on the Company’s regularly scheduled payroll dates, except if such termination occurs at any time during the first year of employment, Executive’s severance payment shall be prorated to an amount equal to the number of months, or portion thereof, during which Executive was employed; (E) in addition, if the effective date of Executive’s termination occurs at any time

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after the first six (6) months of the Company’s then current fiscal year, the Executive’s annual bonus will be prorated for the period of Executive’s employment during the then current fiscal year (i.e., from the commencement of such fiscal year up through the effective date of termination), payable at the time the Company normally pays such bonuses, provided that Executive will receive no bonus amount if the effective date of termination occurs at any time on or before such six (6) month period. Moreover, Executive acknowledges that, during the Severance Period, Executive will not earn any bonus amount; (F) Executive hereby waives any other Company benefits not specifically mentioned herein, except that Executive will be offered continued health care benefits required to be offered under Federal or state law [e.g., COBRA]; and (G) in accordance with the terms of Executive’s equity award agreement(s), Executive may exercise Executive’s vested stock options for the period of time specified under such applicable award agreement(s) after termination of employment (currently at ninety (90) days) (“Extended Period”) and upon termination of the Extended Period any unexercised vested stock options or other vested but unexercised equity awards automatically will be forfeited. Also, upon termination any unvested stock options or other unvested equity awards automatically will be forfeited. Executive acknowledges that, during the Severance Period, Executive will not earn or receive any further equity award grants. Except for payment under clause (C), the benefits described herein will be subject to applicable withholding and/or authorized deductions (including offsets permitted under this Agreement), as required by Company policy and/or by applicable laws and regulations and shall be paid at the time expressly set forth herein in accordance with the Company’s usual practices as they exist from time to time, subject to applicable law. No other benefits will accrue to Executive during the Severance Period. Except as specifically provided herein or otherwise provided by applicable law, as of the date of termination, the Company’s obligations to Executive shall terminate and the Company shall have no further obligation to pay Executive any compensation or any other amounts. The payments and rights provided in clauses (D) through (G) hereof are subject to and conditioned upon the Executive executing the Release Agreement referenced in Section 6(e) below.

ii. Disability or Death, Termination for Cause and Voluntary Termination . If the Executive’s employment is terminated during the Employment Period as a result of the Executive’s death or disability, Executive’s voluntary termination or the Company’s termination of the Executive for Cause, the Company’s obligations to Executive under this Agreement shall be limited to: (A) the prorated payment of Executive’s Base Salary through the date of termination to the extent accrued but not paid by then; (B) the payment of any unused accrued PTO through the date of termination; and (C) the payment of any reimbursable business expenses that were documented by Executive prior to termination in accordance with the Company’s policies in effect at such time and that were not reimbursed by the Company at the time of the termination. Such payments shall be made less applicable withholdings and authorized deductions within the time period required under applicable law. As of the date of such termination, the Company’s obligations to Executive shall terminate and the Company will have no further obligation to pay Executive or Executive’s estate, beneficiaries or representatives any compensation or any other amounts, except as provided in this Agreement or otherwise provided by law.

(g) Obligations of Executive on Termination .

i. Executive acknowledges and agrees that all property, including keys, credit cards, books, manuals, records, reports, notes, contracts, customer lists, Confidential Information (as defined in this Agreement), copies of any of the foregoing, and any equipment or assets furnished to Executive by the Company, belong to the Company and shall be promptly returned to the Company upon termination of employment.

ii. Upon termination of employment, Executive shall be deemed to have resigned from all offices and directorships, if any, then held with the Company.

iii. Executive agrees that following termination of Executive’s employment, Executive shall not access or use any of the Company’s computer systems, e-mail, systems, voicemail systems, intranet system or other system, except as authorized by the Company.

iv. Executive shall cooperate with the Company, as requested by the Company, to effect a transition of Executive’s responsibilities and to ensure that the Company is aware of all matters being handled by Executive and that such matters are transferred to another employee designated by Company. In addition, upon request by the Company, Executive agrees to cooperate to the extent necessary to protect the interests of the Company or any of its affiliates or related entities, including without limitation, in providing any information that Executive has about the Company’s business and its operations and/or in providing truthful testimony as a witness or declarant in connection with any potential future litigation which may arise as to which Executive may have any relevant information.

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6. Covenants of Executive.

(a) Confidential Information .

i. Existence of Confidential Information : The Company owns and has developed and complied, and will develop and compile, certain proprietary and confidential information that has great value to its business (referred to in this Agreement collectively as “Confidential Information”). Confidential Information includes information, whether or not designated as confidential or “company private” by the Company, from any source, which is either disclosed to, or learned by, Executive during the course of Executive’s employment with the Company and which has or could have commercial value in the business in which the Company is engaged or contemplates engaging, which could be detrimental to the interests of the Company if disclosed without authorization, which gives the Company a competitive advantage or the opportunity to obtain a competitive advantage or which is not generally known to the public. Examples of confidential information include, without limitation: Company’s personnel and financial, information, vendor names and information, product cost information, and operational and procedural manuals; Company’s proprietary computer software of any type, whether in source code, object code, annotations, coding notes, or any other form, in any stage of research and development, production, or manufacture; information relating to any of Company’s proprietary rights or information., information concerning product research and development, including technical, engineering, or production data, test data or results, and information concerning Company’s efforts to acquire, protect, and license proprietary rights; Company’s price, cost and fee data, pricing and billing policies, data, forecasts, plans, and strategies for all aspects of Company operations, marketing, and sales, whether or not in effect; the names and all other information concerning the Company’s customers or vendors, including customer and vendor lists, and all data relating to the type, quantity, specifications, and price of Company products and/or services received or provided by any customer or vendor; any and all work product created by Executive relating to or resulting from the engagement of Executive by Company including, without limitation, all notes, research, drafts, and final product; and any and all information concerning Company trade secrets, research, development, test results, reports, specifications, business plans or strategies, forecasts, marketing plans or strategies, unpublished financial information, budgets, projections and Company agreements.

ii. Protection of Confidential Information : Executive will not, either during or after employment with the Company, directly or indirectly, disclose, or otherwise communicate to any third party, any of the Company’s Confidential Information without prior written approval of the Company’s Chief Executive Officer, except as authorized in the normal exercise of Executive’s assigned job duties for the Company and for the benefit of the Company. Executive acknowledges that Executive is aware that the unauthorized disclosure of Confidential Information of the Company may be highly prejudicial to its interests, an invasion of privacy and an improper disclosure of trade secrets. Moreover, if, at any time, Executive becomes aware of any unauthorized access, use, possession, or knowledge of any Confidential Information, Executive shall immediately notify the Company’s General Counsel. Executive also agrees that to the extent any court or agency seeks to have him disclose Confidential Information, Executive shall promptly inform the Company and shall take such reasonable steps as are available to Executive to prevent disclosure of such Confidential Information until the Company has been informed of the requested disclosure and the Company has an opportunity to respond to such court or agency. Nothing provided in this paragraph shall require Executive to take any action that would cause Executive to incur personal, financial, or other risk.

iii. Delivery of Confidential Information : Upon request or when Executive’s employment with the Company terminates, Executive will immediately deliver to the Company all copies of any and all materials and writings received from, created for or belonging to the Company including, but not limited to, any which relate to or contain Confidential Information.

(b) Exclusive Employment and Non-Solicitation : During Executive’s employment with the Company, Executive will not do anything, directly or indirectly, to compete with the Company’s present or contemplated business, nor will Executive plan or organize any competitive business activity including, without limitation, engaging in any activity or entering into any agreement that conflicts with the interests of the Company or Executive’s job duties or obligations to the Company or providing services for, owning, managing, or operating any business that is at that time in, competition with the Company. At any time during or following the termination of Executive’s employment, Executive shall not engage in unfair competition with the Company, aid others in any unfair competition with the Company, in any way breach the confidence that the Company placed in Executive during Executive’s employment, misappropriate any Confidential Information as defined in this Agreement, or breach any of the provisions of this Section of

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this Agreement. Executive also will not within two (2) years after Executive’s employment terminates, directly or indirectly, influence, hire, solicit, divert or attempt to influence, hire, solicit, divert or encourage to terminate or alter any relationship with the Company of any employee, independent contractor, supplier, customer, consultant or any other person or company without the Company’s express written, consent.

(c) Works for Hire . All inventions, ideas, processes, programs, software, procedures, projects, plans and designs (including improvements), equipment, or products conceived (whether or not actually conceived during regular business hours), developed, or made through efforts in whole or in part of Executive during the course of Executive’s employment with Company and (ii) related to the business of Company shall be disclosed promptly to Company and shall be the sole and exclusive property of Company. Executive shall cooperate with Company and its attorneys in the preparation of patent, trademark and copyright applications for the foregoing developments and Executive does hereby assign all of Executive’s right, title and interest in and to all such inventions, ideas, processes, programs, software, procedures, projects, plans, designs, equipment or products to Company. The decision to file a patent, trademark or copyright protection, or to maintain such developments as a trade secret, shall be in the sole discretion of Company and Executive shall be bound by such decision and shall execute such documents as may be necessary to carry out the intent of this Section.

(d) Non-Disparagement . Executive agrees that both during and after Executive’s employment with Company, Executive will not disparage, denigrate, or criticize the Company or any of its management personnel or members of the Board, whether or not such activity has as its purpose or outcome, the interference or competition with, or the, reduction, interruption, disruption, or obstruction of, the conduct of Company’s businesses.

(e) Release . Upon termination of employment, and if Executive elects to receive the benefits outlined in Section 5(f) above, Executive agrees to execute and deliver to Company a general release (substantially in the form attached hereto as Exhibit “B”) releasing Company and its officers, directors, owners, affiliates, successors and assigns, from any and all actual or potential, suspected or unsuspected, foreseen or unforeseen, and patent or latent causes of actions, claims and demands whatsoever, whether in law or in equity, which may exist as of the date of the release or which may arise after such date as a result of Executive’s employment or termination of employment with the Company. Such release also will include a waiver of § 1542 of the California Civil Code, which provides as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor,” Executive’s agreement to indemnify, defend, and hold harmless each released person or entity against any claim, including attorney fees and costs, resulting from a breach of Executive’s covenants contained in the release, and a provision that such covenants survive the termination of Executive’s employment and/or of Agreement.

(f) Covenants as Essential Elements of this Agreement . It is understood by and between the parties hereto that the covenants set forth in Sections 5 (g) and Sections 6 (a)-(e) are essential elements of this Agreement, and are required for the protection of Company’s legitimate business interests, and that, but for the agreement of the Executive to comply with such covenants, the Company would not have entered into this Agreement, including the Company’s agreement to provide the severance compensation set forth in Section 5(f). Accordingly, in addition to all other rights and remedies available to Company under this Agreement, Executive acknowledges and agrees that Executive’s failure to comply with any of these covenants shall entitle Company to immediately terminate any compensation or benefits otherwise payable in accordance with Section 5(f). Moreover, such covenants are independent of any other contractual obligations in this Agreement. The existence of any claim or cause of action by Executive against Company, whether based on this Agreement or otherwise created, shall not create a defense to the enforcement by Company of any such covenants.

(g) Modification by Court . It is agreed by the Company and Executive that if any portion of this covenants set forth in this Section 6 are held to be invalid, unreasonable, arbitrary, or against public policy, then such portion of such covenants shall be considered divisible (including divisible as to time and geographical area, as applicable) and a lesser time period, geographical area or other modification which is determined to be reasonable, non-arbitrary and not against public policy may be enforced against the Executive. The Company and the Executive agree that covenants set forth in this Section 6 are appropriate and reasonable when considered in light of the nature and extent of the business conducted by the Company.

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(h) Survival of Covenants . The covenants contained in this Section 6 shall survive the termination of Executive’s employment and this Agreement.

7. Miscellaneous :

(a) Assignment and Transfer : Executive’s rights and obligations under this Agreement are personal and shall not be transferable by assignment or otherwise, and any purported assignment, transfer or delegation thereof shall be void. This Agreement shall inure to the benefit of, and be enforceable by, any purchaser of substantially all of Company’s assets, any successor to Company or any assignee thereof.

(b) No Inconsistent Obligations : Executive is aware of no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Executive’s job duties for the Company. Executive will not disclose to the Company, or use, or induce the Company to use, any proprietary information or trade secrets of others. Executive represents and warrants that Executive has returned all property and confidential information belonging to all prior employers.

(c) Construction, and Governing Law : The captions used in connection with this Agreement are