Document:

Exhibit 10.3

 

Exhibit
10.3 

 

AUTOWEB, INC.

 

 

INDEMNIFICATION AGREEMENT

 

This
Indemnification Agreement (“Agreement”) is
made and entered into as of October 22, 2018 by and between
AutoWeb, Inc., a Delaware corporation (“Company”), and
Sara Partin (“Indemnitee”).

 

Background

 

In
order to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and, in part,
to induce Indemnitee to continue to provide services to the
Company, the Company wishes to provide for indemnification and
advancement of expenses to Indemnitee to the maximum extent
permitted by law.

 

The
Company’s Seventh Amended and Restated Bylaws, as amended
(“Bylaws”), and
the Company’s Sixth Restated Certificate of Incorporation, as
amended (“Certificate”),
require that the Company indemnify the directors, officers,
employees and other agents of the Company, including persons
serving at the request of the Company in those capacities with
other corporations or enterprises, as authorized by the General
Corporation Law of the State of Delaware, as amended
(“DGCL”), and
the Bylaws and the Certificate each expressly provide that the
indemnification provided therein is not exclusive and contemplates
that the Company may enter into separate agreements with its
directors, officers, employees and other agents of the
Company.

 

Indemnitee does not
believe that the protection currently provided by applicable law,
the Bylaws, the Certificate and available insurance may be adequate
under the circumstances, and the Company has determined that
Indemnitee and other directors, officers, employees and agents of
the Company may not be willing to serve or continue to serve in
such capacities without additional protections. The Company desires
and has requested Indemnitee to serve or continue to serve as a
director, officer, employee or agent of the Company, as the case
may be, and has proffered this Agreement to Indemnitee as an
additional inducement to serve in such capacity. Indemnitee is
willing to serve, or to continue to serve, as a director, officer,
employee or agent of the Company, as the case may be, if Indemnitee
is furnished the indemnity provided herein by the
Company.

 

This
Agreement is a supplement to, and in furtherance of, the Bylaws,
the Certificate and any resolutions adopted pursuant thereto, and
must not be deemed a substitute therefor, nor to diminish or
abrogate any rights of Indemnitee thereunder.

 

In
consideration of Indemnitee’s agreement to serve and the
mutual agreements set forth herein, the sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

 

 

 

-1-

 

 

 

Agreement

 

1. Services to the Company. Indemnitee will
serve, at the will of the Company (or its stockholders, as
applicable) or under separate contract if any such contract exists,
as Senior Vice President and Chief Human Resources Officer, or as a
director, officer, agent or other fiduciary of an affiliate of the
Company, including any subsidiary or employee benefit plan of the
Company (each, an “Affiliate”),
to the best of Indemnitee’s ability so long as Indemnitee
remains in such position(s); provided, however, that (i) Indemnitee may at any time and
for any reason resign from such position(s) (subject to any
contractual obligation that Indemnitee may have assumed apart from
this Agreement or any obligation imposed by operation of law), and
(ii) neither the Company nor any Affiliate have any obligation
under this Agreement to continue Indemnitee in any such
position(s). This Agreement is not an employment contract between
the Company (or any of its Affiliates) and Indemnitee. Nothing in
this Agreement may be construed or interpreted as giving Indemnitee
any right to be retained in the employ of the Company (or any of
its Affiliates). Indemnitee specifically acknowledges and agrees
that except as may be provided in a written employment contract
between Indemnitee and the Company or an Affiliate: (i)
Indemnitee’s employment with the Company or any of its
Affiliates is at-will, and (ii) Indemnitee may be discharged at any
time for any reason. The foregoing notwithstanding, this Agreement
will continue in force after Indemnitee has ceased to serve as
Senior Vice President and Chief Human Resources Officer of the
Company.

 

2. Indemnity of Indemnitee. The Company
hereby agrees to hold harmless and indemnify Indemnitee to the
fullest extent authorized or permitted by the provisions of the
Bylaws, the Certificate, the DGCL or other applicable law. The
phrase “to the fullest extent authorized or permitted”
includes to the fullest extent authorized or permitted by any
amendments or replacements of the Bylaws, the Certificate, or the
DGCL (or other applicable law) adopted or enacted after the date of
this Agreement that increase the extent to which a corporation may
indemnify its directors, officers, employees or
agents.

 

 

 

 

-2-

 

 

3. Additional Indemnity. In addition to,
and not in limitation of, the indemnification otherwise provided
for herein, and subject only to the exclusions set forth in
Section 4 hereof, the Company hereby further agrees to hold
harmless and indemnify Indemnitee against any and all Expenses (as
defined below) that Indemnitee becomes legally obligated to pay
because of any claim or claims made against or by Indemnitee in
connection with any threatened, pending or completed action, suit
or proceeding whether by or in the right of the Company or
otherwise and whether civil, criminal, legislative, arbitrational,
administrative or investigative, and whether formal or informal
including any appeal therefrom, to which Indemnitee is, was or at
any time becomes a party, potential party, or a participant,
including as a non-party witness or otherwise, or is threatened to
be made a party, by reason of the fact that Indemnitee is, was or
at any time becomes a director, officer, employee or other agent of
the Company, or is or was serving, or at any time serves at the
request of, the Company or any Affiliate as a director, officer,
employee or other agent (including a trustee, partner or manager)
of another corporation, limited liability company, partnership,
joint venture, trust, employee benefit plan or other enterprise,
including an Affiliate (collectively, a “Proceeding”),
in each case whether or not Indemnitee was serving in that capacity
at the time any liability or Expense is incurred. The definition of
“Proceeding” must be considered met if Indemnitee in
good faith believes the situation might lead to or culminate in the
institution of a Proceeding. “Expenses” mean
all expenses, including attorneys’ fees, witness fees, fees
of experts, forensic consultants and other professionals,
retainers, court costs, travel expenses, photocopying, printing and
binding costs, telephone charges, and any other cost, disbursement
or expense customarily incurred in connection with defending,
prosecuting, preparing to prosecute or defend, investigating, being
prepared to be a witness in, responding to a subpoena or other
discovery request, or otherwise participating in, a Proceeding,
damages, penalties, interest charges thereon, judgments, fines, and
amounts paid in settlement, any federal, state, local or foreign
taxes imposed on Indemnitee as a result of the actual or deemed
receipt of any payments under this Agreement, ERISA excise taxes
and penalties imposed on Indemnitee, costs associated with any
appeals, including without limitation the premium, security for,
and other costs relating to any costs bond, supersedeas bond, or
other appeal bond or its equivalent, and any other amounts for time
spent by Indemnitee for which Indemnitee is not compensated by the
Company or any Affiliate or third party for any period during which
Indemnitee is not an agent, in the employment of, or providing
services for compensation to, the Company or any Affiliate. Without
limiting the generality of the foregoing, references to
“serving at the request of the Company as a director,
officer, employee or agent” includes:
(i) Indemnitee’s performance of services for, on behalf
of, or for the benefit of the Company or any Affiliate while
Indemnitee is serving as a director, officer, employee or other
agent of the Company or an Affiliate regardless of whether
Indemnitee is at the time a director, officer or employee of the
Company or the Affiliate for, on behalf of, or for the benefit of
which Indemnitee performed services; or (ii) any service by
Indemnitee that imposes duties on, involves services by, Indemnitee
with respect to an employment benefit plan, its participants or
beneficiaries, including as a deemed fiduciary
thereto.

 

 

 

 

-3-

 

 

4. Limitations on Additional Indemnity. No
indemnity pursuant to Sections 2 or 3 hereof must be paid by
the Company:

 

(a) 
On
account of any claim against Indemnitee solely for an accounting of
profits made from the purchase or sale by Indemnitee of securities
of the Company pursuant to the provisions of Section 16(b)
(“Section 16(b)”)
of the Securities Exchange Act of 1934, as amended
(“Exchange
Act”), or similar provisions of any federal, state or
local statutory law; provided, that with respect to a claim against
Indemnitee solely for
an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Company pursuant to the provisions
of Section 16(b) or similar provisions of any federal, state
or local law, Indemnitee is entitled to the advancement of legal expenses
unless the Company reasonably determines that Indemnitee clearly
violated Section 16(b) and must disgorge profits to the
Company pursuant to the terms thereof. Notwithstanding anything to
the contrary stated or implied in this Section 4(a),
indemnification pursuant to this Agreement relating to any
Proceeding against Indemnitee for an accounting of profits made
from the purchase or sale by Indemnitee of securities of the
Company pursuant to the provisions of Section 16(b) or similar
provisions of any federal, state or local laws is not prohibited if
Indemnitee ultimately establishes in any Proceeding that no recovery of
such profits from Indemnitee is permitted under Section 16(b)
or similar provisions of any federal, state or local
laws;

 

(b) 
On
account of any reimbursement of the Company by the Indemnitee of
any bonus or other incentive-based or equity-based compensation or
of any profits realized by the Indemnitee from the sale of
securities of the Company, as required in each case under the
Exchange Act (including any such reimbursements that arise from an
accounting restatement of the Company pursuant to Section 304 of
the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley
Act”), or the payment to the Company of profits
arising from the purchase and sale by Indemnitee of securities in
violation of Section 306 of the Sarbanes-Oxley Act), provided, Indemnitee is entitled to
advancement of Expenses related to, arising out of, or resulting
from a Proceeding to recover such compensation or profits prior to
the final adjudication of that Proceeding;

 

(c) 
On account of
Indemnitee’s conduct that is established by a final judgment,
not subject to appeal, as knowingly fraudulent or deliberately
dishonest or that constituted willful misconduct;

 

(d) 
On account of
Indemnitee’s conduct that is established by a final judgment,
not subject to appeal, as constituting a breach of
Indemnitee’s duty of loyalty to the Company or resulting in
any personal profit or advantage to which Indemnitee was not
legally entitled;

 

(e) 
For which payment
is actually made to Indemnitee under a valid and collectible
insurance policy or under a valid and enforceable indemnity clause,
bylaw or agreement, except in respect of any excess beyond payment
under such insurance, clause, bylaw or agreement and such payment
fully compensates Indemnitee against all expenses. Notwithstanding
anything to the contrary stated or implied in this
Section 4(e), (i) Indemnitee has no obligation to reduce,
offset, allocate, pursue or apportion any indemnification, hold
harmless, exoneration, advancement, contribution or insurance
coverage among multiple persons possessing those obligations to
Indemnitee prior to the Company’s satisfaction and
performance of its obligations under this Agreement; and (ii) the
Company must perform fully its obligations under this Agreement
regardless of whether Indemnitee holds, may pursue or has pursued
any indemnification, advancement, hold harmless, exoneration,
contribution or insurance coverage rights against any person or
entity other than the Company;

 

 

 

 

-4-

 

 

(f) 
If indemnification
is not lawful, as established by the Company by a final judgment on
such issue not subject to appeal; or

 

(g) 
In connection with
any Proceeding (or part thereof) initiated by Indemnitee, or any
Proceeding by Indemnitee against the Company or an Affiliate or the
directors, officers, employees or other agents of the Company or an
Affiliate, unless (i) such indemnification is expressly
required to be made by law, (ii) the Proceeding was authorized
by the Company’s Board of Directors (“Board”),
(iii) such indemnification is provided by the Company, in its
sole discretion, pursuant to the powers vested in the Company under
the DGCL or any other applicable law, (iv) the Proceeding is
initiated pursuant to Section 10 hereof, or (v) the
Proceeding initiated by Indemnitee is a cross-claim or counter-claim.

 

5. Continuation of Indemnity. All
agreements and obligations of the Company contained herein continue
during the period Indemnitee is a director, officer, employee or
other agent of the Company (or is or was serving at the request of
the Company as a director, officer, employee or other agent
(including trustee, partner or manager) of another corporation,
limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise) and will continue
thereafter so long as Indemnitee is subject to any Proceeding by
reason of the fact that Indemnitee was serving in the capacity
referred to herein.

 

6. Partial Indemnification. The Company
will indemnify Indemnitee for a portion of the Expenses that
Indemnitee becomes legally obligated to pay in connection with any
Proceeding even if not entitled hereunder to indemnification for
the total amount thereof, and the Company must indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled and the
acceptance of such partial payment will not be an admission by
Indemnitee that he or she is not entitled to all of his or her
Expenses or a bar against Indemnitee seeking recovery of the full
amount of Expenses.

 

7. Notice
and Other Indemnification Procedures.

 

(a) Notification of Proceeding. Indemnitee
agrees to notify the Company in writing promptly upon being served
with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any Proceeding. The
failure of Indemnitee to so notify the Company does not relieve the
Company of any obligation that it may have to Indemnitee under this
Agreement or otherwise and any delay in giving notice will not
constitute a waiver by Indemnitee of any rights under this
Agreement.

 

 

 

 

-5-

 

 

(b) Request for Indemnification and Indemnification
Payments. Upon written request by Indemnitee for
indemnification, a determination, if required by applicable law,
with respect to Indemnitee’s entitlement thereto must be made
in the specific case:  (i) if a Change in Control (as defined
in Section 8(b)) shall have occurred, by Independent Counsel (as
defined below) in a written opinion to the Board, a copy of which
must be delivered to Indemnitee; or (ii) if a Change in Control
shall not have occurred, (A) by a majority vote of the
Disinterested Directors (as defined below), even though less than a
quorum of the Board, (B) by a committee of Disinterested Directors
designated by a majority vote of the Disinterested Directors, even
though less than a quorum of the Board, (C) if there are no such
Disinterested Directors or, if such Disinterested Directors so
direct, by Independent Counsel in a written opinion to the Board, a
copy of which must be delivered to Indemnitee or (D) if so directed
by the Board, by the stockholders of the Company; and, if it is so
determined that Indemnitee is entitled to indemnification, payment
to Indemnitee must be made promptly, but in no event more than ten
(10) days after such determination.  Indemnitee agrees to
cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or
entity upon reasonable advance request any documentation or
information that is not privileged or otherwise protected from
disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any costs or Expenses
(including attorneys’ fees and disbursements) incurred by or
on behalf of Indemnitee in so cooperating with the person, persons
or entity making such determination must be borne by the Company
(irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies
and agrees to hold Indemnitee harmless therefrom. The Company must
advise Indemnitee promptly in writing with respect to any
determination that Indemnitee is or is not entitled to
indemnification, including a description of any reason or basis for
which indemnification has been denied. Claims for advancement of
Expenses must be made under the provisions of Section 9 of
this Agreement.

 

 

 
-6-

 

 

In the
event the determination of entitlement to indemnification is to be
made by Independent Counsel, the Independent Counsel must be
selected as provided in this Section 7(b). If a Change in
Control shall not have occurred, the Board must select the
Independent Counsel, and the Company must give prompt, written
notice to Indemnitee advising him of the identity of the
Independent Counsel so selected. If a Change in Control shall have
occurred, Indemnitee must select the Independent Counsel (unless
Indemnitee requests that the selection be made by the Board, in
which event the preceding sentence applies), and Indemnitee must
give written notice to the Company advising it of the identity of
the Independent Counsel so selected. In either event, Indemnitee or
the Company, as the case may be, may, within ten (10) days after
such written notice of selection has been given, deliver to the
Company or to Indemnitee, as the case may be, a written objection
to the selection; provided,
however, that the objection may be asserted only on the
basis that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined below,
and the objection must set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the
person so selected will act as Independent Counsel. If a written
objection is so made and substantiated, the Independent Counsel so
selected may not serve as Independent Counsel unless and until the
objection is withdrawn or the Delaware Court of Chancery has
determined that such objection is without merit. If, within twenty
(20) days after the later of submission by Indemnitee of a written
request for indemnification and the final disposition of the
Proceeding, no Independent Counsel has been selected and not
objected to, either the Company or Indemnitee may petition the
Delaware Court of Chancery for resolution of any objection which
shall have been made by the Company or Indemnitee to the
other’s selection of Independent Counsel and/or for the
appointment as Independent Counsel of a person selected by that
court or by such other person as that court may designate, and the
person with respect to whom all objections are so resolved or the
person so appointed will act as Independent Counsel. The Company
agrees to pay the reasonable fees and expenses, including any
retainer or advance, of the Independent Counsel referred to above
and to indemnify such counsel fully against any and all Expenses,
claims, liabilities and damages arising out of or relating to this
Agreement or its engagement pursuant hereto. “Disinterested Director” means a
director of the Company who is not, and was not, a party to the
Proceeding in respect of which indemnification is sought by
Indemnitee. “Independent
Counsel” means a law firm, or a member of a law firm,
that is experienced in matters of corporation law and neither
presently is, nor in the past five years has been, retained to
represent: (i) the Company, any Affiliate or Indemnitee in any
matter material to any such person (other than with respect to
matters concerning the Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any
other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” does not include any person who,
under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.

 

(c) Notice to Insurers. If, at the time of
the receipt by the Company of a notice pursuant to
Section 7(a) hereof, the Company has liability insurance in
effect which may cover that Proceeding, the Company must give
prompt notice of the commencement of that Proceeding to the
insurers in accordance with the procedures set forth in the
respective policies. The Company must thereafter take all necessary
or desirable action to cause those insurers to pay, on behalf of
Indemnitee, all Expenses payable to Indemnitee in respect of such
Proceeding in accordance with the terms of their policies, but any
such action by the Company will not relieve it of its obligations
hereunder.

 

(d) Notwithstanding
anything in this Agreement to the contrary, no determination as to
entitlement to indemnification under this Agreement may be required
to be made prior to the final disposition of the Proceeding as to
Indemnitee.

 

 

 
-7-

 

 

8. Assumption
of Defense.

 

(a) In the event the
Company is requested by Indemnitee to pay the Expenses of any
Proceeding, the Company, if appropriate, will be entitled to assume
the defense of that Proceeding, or to participate to the extent
permissible in that Proceeding, with counsel approved by
Indemnitee, which approval may not be unreasonably withheld or
delayed. Upon assumption of the defense by the Company and the
retention of such counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same
Proceeding; provided, that
Indemnitee will have the right to employ separate counsel in that
Proceeding at Indemnitee’s sole cost and expense. After the
Company has assumed the defense of a Proceeding, Indemnitee will be
entitled to, at Indemnitee’s own expense, engage counsel for
the purpose of monitoring the defense being provided by counsel
retained by the Company, and the Company must direct that counsel
to cooperate with and provide requested information to
Indemnitee’s monitoring counsel. Notwithstanding the
foregoing, if (i) Indemnitee’s counsel delivers a
written notice to the Company stating that such counsel has
reasonably concluded that there may be a conflict of interest
between the Company and Indemnitee in the conduct of any defense in
the Proceeding, (ii) the Company has not, in fact, employed
counsel or otherwise actively pursued the defense of the Proceeding
within a reasonable time, or thereafter reasonably maintained the
defense of the Proceeding, (iii) there has been a Change in
Control (as defined below), or (iv) Indemnitee reasonably
concludes that counsel engaged by the Company on behalf of
Indemnitee may not adequately represent Indemnitee, then in any
such event the fees and expenses of Indemnitee’s counsel to
defend the Proceeding must be at the expense of the Company and
subject to the indemnification and advancement of expenses
provisions of this Agreement. Provided, however, that in the event
there are other defendants in a Proceeding who are entitled to
counsel other than counsel engaged by the Company, the Company will
only be obligated to pay the fees and expenses of one (1) counsel
for all those defendants, including Indemnitee, unless
Indemnitee’s counsel delivers a written notice to the Company
stating that such counsel has reasonably concluded that there may
be a conflict of interest that would prevent one (1) counsel from
representing all such defendants, including
Indemnitee.

 

 

 

 

-8-

 

 

(b) For purposes of
this Agreement, a “Change in
Control” is deemed to have occurred if (i) any
“person” (as such term is used in Sections 13(d)
and 14(d) of the Exchange Act), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the
Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company, (A) who is or
becomes the beneficial owner, directly or indirectly, of securities
of the Company representing ten percent (10%) or more of the
combined voting power of the Company’s then outstanding
Voting Securities (as defined below), increases his, her or its
beneficial ownership of such securities by five percent (5%) or
more over the percentage so owned by such person, or
(B) becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than twenty percent
(20%) of the total voting power represented by the Company’s
then outstanding Voting Securities, (ii) during any period of
two (2) consecutive years, individuals who at the beginning of that
period constitute the Board and any new director whose election by
the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the
beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to
constitute a majority thereof, or (iii) the Company merges or
consolidates with any other corporation other than a merger or
consolidation that would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity, or its ultimate
parent) at least sixty percent (60%) of the total voting power
represented by the Voting Securities, as defined below, of the
Company or such surviving entity, or its ultimate parent,
outstanding immediately after such merger or consolidation, or the
stockholders of the Company approve a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the
Company of (in one (1) transaction or a series of transactions) all
or substantially all of the Company’s assets, (iv) the
Company commences any case, action or proceeding before any court
or governmental body (or a third party commences any such
proceeding that remains undismissed by or consented to within sixty
(60) days) relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up or relief of
debtors, or (v) the Company commences any general assignment
for the benefit of creditors, composition, marshaling of assets for
creditors, or other similar arrangement in respect of its creditors
generally or any substantial portion of its creditors.

 

(c) For
purposes of this Agreement, “Voting
Securities” means any securities of the Company that
vote generally in the election of directors.

 

(d) Notwithstanding
any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise,
including, without limitation, the dismissal of an action without
prejudice, in defense of any Proceeding or in the defense of any
claim, issue or matter therein, the Company must indemnify
Indemnitee against all Expenses incurred by Indemnitee in
connection therewith.

 

9. Advances
of Expenses.

 

(a) The Company will
advance to Indemnitee, prior to the final adjudication of any
Proceeding of this Agreement, any and all Expenses relating to,
arising out of or resulting from any Proceeding (other than a
Proceeding for which indemnification is excluded pursuant to
Section 4(g)) paid or incurred by Indemnitee or which Indemnitee
determines are reasonably likely to be paid or incurred by
Indemnitee. The right to advances under this Section 9 in all
events continues until final disposition of any Proceeding,
including all possible appeals therefrom. Advances must be made
without regard to Indemnitee’s ability to repay the Expenses
and without regard to Indemnitee’s ultimate entitlement to
indemnification under the other provisions of this Agreement.
Advances must be unsecured and interest free. Advances include any
and all reasonable Expenses incurred in pursuing an action to
enforce this right of advancement, including Expenses incurred in
preparing and forwarding statements to the Company or its insurance
carrier(s) to support the advances claimed.

 

 

 
-9-

 

 

(b) Indemnitee’s
right to such advancement is not subject to the satisfaction of any
standard of conduct. Without limiting the generality or effect of
the foregoing, within fifteen (15) business days after any request
by Indemnitee, the Company must, in accordance with such request
(but without duplication), (i) pay such Expenses on behalf of
Indemnitee, (ii) advance to Indemnitee funds in an amount
sufficient to pay such Expenses, or (iii) reimburse Indemnitee
for such Expenses.

 

(c) Indemnitee
undertakes to the fullest extent permitted by law to repay the
amounts advanced pursuant to this Agreement (without interest) if
and to the extent that it is ultimately determined by a court of
competent jurisdiction in a final judgment, not subject to appeal,
that Indemnitee is not entitled to be indemnified therefor by the
Company. No other form of undertaking may be required other than
the execution of this Agreement.

 

(d) Indemnitee must use
commercially reasonable efforts to provide documentation to the
Company relating to Expenses as incurred in order to permit the
Company to properly deduct the advancement of Expenses pursuant to
this Section 9; provided,
however, that Indemnitee will only be required to provide
such documentation to the extent that such provision will not
constitute a waiver of the attorney-client privilege or the work
product doctrine.

 

10.
  
Enforcement; Presumption of Entitlement.

 

(a) Any right to
indemnification or advances granted by this Agreement to Indemnitee
is enforceable by or on behalf of Indemnitee in any court of
competent jurisdiction if (i) the claim for indemnification is
denied, in whole or in part; (ii) no disposition of such claim
is made within seventy (70) days of request therefor; (iii) payment
of indemnification is not made to Indemnitee within ten (10) days
of a determination that Indemnitee is entitled to indemnification;
(iv) advancement of Expenses is not timely made; or (v) the Company
or any other person takes or threatens to take action to declare
this Agreement unenforceable or institutes litigation or other
action or proceeding to deny or recover from Indemnitee the
benefits provided by, or intended to be provided by, this
Agreement. Indemnitee, in such enforcement action, if successful in
whole or in part, must be entitled to be paid also the Expenses of
prosecuting Indemnitee’s claim. The Company must pay interest
at the legal rate under Delaware law on all amounts that the
Company is obligated to advance or indemnify pursuant to this
Agreement, commencing on the date on which the Company must advance
Expenses or the earlier of the date of determination of
indemnification or seventy (70) days of a request therefor and
ending on the date on which payment is made.

 

(b) It is a defense to
any action for which a claim for indemnification is made under
Sections 2 and 3 hereof (other than an action brought to
enforce a claim for Expenses pursuant to Section 8 hereof)
that Indemnitee is not entitled to indemnification because of the
limitations set forth in Section 4 hereof.

 

(c) In any such
Proceeding instituted by Indemnitee pursuant to this
Section 10, the Company must be precluded, to the fullest
extent permitted by law, from asserting that the procedures and
presumptions of this Agreement are not valid, binding and
enforceable and must stipulate in any such court that the Company
is bound by all the provisions of this Agreement and is precluded
from making any assertion to the contrary.

 

 

 

 

-10-

 

 

(d) In making any
determination concerning Indemnitee’s right to
indemnification, it must be presumed that Indemnitee has satisfied
the applicable standard of conduct, and to the fullest extent not
prohibited by law, the Company has the burden of proof to overcome
that presumption by its adducing clear and convincing evidence to
the contrary. Neither the failure of the Company (including the
Disinterested Directors, the Company’s stockholders, or
Independent Counsel) to have made a determination prior to the
commencement of such enforcement action that indemnification of
Indemnitee is proper in the circumstances, nor an actual
determination by the Company (including the Disinterested
Directors, the Company’s stockholders, or Independent
Counsel) that such indemnification is improper is a defense to the
action or creates a presumption that Indemnitee is not entitled to
indemnification under this Agreement or otherwise. Any judicial
proceeding must be conducted in all respects as a trial
de novo on the merits and
Indemnitee must not be prejudiced by any actual determination by
the Company any assertion to the contrary.

 

(e) For purposes of any
determination of good faith, Indemnitee must be deemed to have
acted in good faith if Indemnitee’s action is based on the
records or books of account of the Company or any Affiliate,
including financial statements, or on information supplied to
Indemnitee by the directors or officers of the Company or any
Affiliate in the course of their duties, or on the advice of legal
counsel for the Company or an Affiliate or on information or
records given or reports made to the Company or an Affiliate by an
independent certified public accountant or by an appraiser or other
expert selected with the reasonable care by the Enterprise. The
provisions of this Section 10(e) must not be deemed to be exclusive
or to limit in any way the other circumstances in which the
Indemnitee may be deemed to have met the applicable standard of
conduct set forth in this Agreement. Whether or not the foregoing
provisions of this Section 10(e) are satisfied, it must in any
event be presumed that Indemnitee has at all times acted in good
faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Company.

 

(f) Subject to Section
7(d), if a determination of whether Indemnitee is entitled to
indemnification is not made within forty (40) days after receipt by
the Company of the request therefor, the requisite determination of
entitlement to indemnification must, to the fullest extent not
prohibited by law, be deemed to have been made and Indemnitee must
be entitled to such indemnification, absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or
(ii) a prohibition of such indemnification under applicable law;
provided, however, that
such 40-day period may be extended for a reasonable time, not to
exceed an additional thirty (30) days, if the person, persons or
entity making the determination with respect to entitlement to
indemnification in good faith requires such additional time for the
obtaining or evaluating of documentation and/or information
relating thereto; and provided, further, that the foregoing provisions
of this Section 10(f) do not apply (i) if the determination of
entitlement to indemnification is to be made by the and if (A)
within ten (10) days after receipt by the Company of the request
for such determination the Board has resolved to submit such
determination to the stockholders for their consideration at an
annual meeting thereof to be held within sixty (60) days after such
receipt and such determination is made thereat, or (B) a special
meeting of stockholders is called within ten (10) days after such
receipt for the purpose of making such determination, such meeting
is held for such purpose within sixty (60) days after having been
so called and such determination is made thereat, or (ii) if the
determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 7(a) of this
Agreement.

 

 

 

 

-11-

 

 

(g) The remedies
provided for in this Section 10 are in addition to any other
remedies available to Indemnitee at law or in equity or pursuant to
the Certificate, the Bylaws or other written agreement between the
Company and Indemnitee.

 

11. Unauthorized Settlements. Any provision
herein to the contrary notwithstanding, the Company is not
obligated pursuant to the terms of this Agreement to indemnify
Indemnitee under this Agreement for any amounts paid in settlement
of a Proceeding effected by Indemnitee without the Company’s
written consent. Further, the Company must not, without the prior
written consent of Indemnitee, effect any settlement of:
(a) any Proceeding if Indemnitee is or could have been a
party, or (b) any Proceeding in which the Company is, or could
be, jointly liable with Indemnitee (or would be if joined in such
Proceeding) unless such settlement solely involves the payment of
money and includes a complete and unconditional release of
Indemnitee from all liability on any claims that are the subject
matter of such Proceeding. Neither the Company nor Indemnitee may
unreasonably withhold, delay or condition consent to any proposed
settlement; provided,
however, that: (i) the Company may in any event decline
to consent to (or to otherwise admit or agree to any liability for
indemnification hereunder in respect of) any proposed settlement if
the Company is also a party in such Proceeding and determines in
good faith that such settlement is not in the best interests of the
Company and its stockholders, and (ii) Indemnitee may withhold
consent to any settlement that does not provide a complete and
unconditional release of Indemnitee requires Indemnitee to take any
action other than executing a release of parties providing a
release of Indemnitee, or imposes any penalty or other limitation
or disqualification on Indemnitee. The Company must notify
Indemnitee promptly of the receipt of any settlement offer or if it
intends to submit a settlement offer and must provide Indemnitee a
reasonable time to consider the offer.

 

12. Mutual Acknowledgment. Both the Company
and Indemnitee acknowledge that in certain instances, Federal or
state law or applicable public policy may prohibit the Company from
indemnifying its directors, officers, employees, agents or
fiduciaries under this Agreement or otherwise. Indemnitee
understands and acknowledges that the Company has undertaken or may
be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a
court in certain circumstances for a determination of the
Company’s right under public policy to indemnify
Indemnitee.

 

13. Period of Limitations. No legal action
may be brought and no cause of action may be asserted by or in the
right of the Company against Indemnitee, Indemnitee’s estate,
spouse, heirs, executors or personal or legal representatives after
the expiration of two (2) years from the date of accrual of such
cause of action, and any claim or cause of action of the Company
will be extinguished and deemed released unless asserted by the
timely filing of a legal action within such two (2)-year period;
provided, however, that if
any shorter period of limitations is otherwise applicable to any
such cause of action, such shorter period must govern.

 

14. Subrogation. In the event of payment
under this Agreement and after Indemnitee has no more Expenses in
respect of a Proceeding, the Company will be subrogated to the
extent of such payment to all of the rights of recovery of
Indemnitee, who must execute all documents required and must do all
acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such
rights.

 

15. Non-Exclusivity of Rights. The rights
conferred on Indemnitee by this Agreement are not exclusive of any
other right which Indemnitee may have or hereafter acquire under
any statute, provision of the Certificate or the Bylaws, each as
may be amended from time to time, agreement, vote of stockholders
or directors, or otherwise.

 

 

 

 

-12-

 

 

16. Survival
of Rights; Change in Control.

 

(a) The rights
conferred on Indemnitee by this Agreement continue after Indemnitee
has ceased to be a director, officer, employee or other agent of
the Company or to serve at the request of the Company as a
director, officer, trustee, fiduciary, partner, manager, employee
or other agent of another corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise and will inure to
the benefit of Indemnitee’s heirs, executors and
administrators.

 

(b) The Company must
require and cause any successor thereto (whether direct or
indirect) in connection with a Change in Control, by written
agreement, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be
required to perform if no such Change in Control
occurred.

 

17. Contribution.

 

(a) If the
indemnification provided for by this Agreement is unavailable in
whole or in part and may not be paid to Indemnitee for any reason
other than those set forth in Section 4 hereof, then in
respect to any Proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding), to the
fullest extent permissible under applicable law, the Company, in
lieu of indemnifying and holding harmless Indemnitee, must pay, in
the first instance, the entire amount of Expenses incurred by
Indemnitee in connection with any Proceeding without requiring
Indemnitee to contribute to such payment, and the Company hereby
waives and relinquishes any right of contribution it may have at
any time against Indemnitee.

 

(b) The Company hereby
agrees to indemnify and hold harmless fully to the extent
permissible under applicable law Indemnitee from any claims for
contribution that may be brought by officers, directors or
employees of the Company (other than Indemnitee) who may be jointly
liable with Indemnitee.

 

18. Liability
Insurance.

 

(a) For the duration of
Indemnitee’s service as a director and/or officer of the
Company, and thereafter for so long as Indemnitee may be subject to
any pending or possible indemnifiable claim, the Company must use
best efforts (taking into account the scope and amount of coverage
available relative to the cost thereof) to cause to be maintained
in effect policies of directors’ and officers’
liability insurance, errors and omissions insurance and employment
practices insurance providing coverages for directors and/or
officers of the Company that are at least substantially comparable
in scope and amount to that provided by the Company’s current
policies covering directors and officers. The minimum AM Best
rating for the insurance carriers of such insurance must be not
less than A-VI.

 

(b) In the event of a
Change in Control, the Company must (i) maintain in force any
and all insurance policies then maintained by the Company providing
liability insurance in respect of Indemnitee, or (ii) require
and cause any successor thereto (whether direct or indirect) to
obtain and maintain a directors’ and officers’
liability insurance policy (and any other liability insurance
policies, including errors and omissions and employment practices,
to the extent such liability policies were claims-made policies
immediately prior to the Change in Control) that provides coverage
for Indemnitee that is at least substantially comparable in scope
and amount to that provided to Indemnitee by the Company as of
immediately prior to the Change in Control, in each case for the
six-year period immediately following the Change in Control. This
“tail coverage” must be placed by the Company’s
insurance broker and be placed with a carrier or carriers having an
AM Best rating that is not less than A-VI.

 

 

 

 

-13-

 

 

(c) In the event that
any action is instituted by Indemnitee under this Agreement or
under any liability insurance policies maintained by the Company to
enforce or interpret any of the terms hereof or thereof, Indemnitee
is entitled to be paid all Expenses incurred by Indemnitee with
respect to that action, regardless of whether Indemnitee is
ultimately successful in that action, and is entitled to the
advancement of Expenses with respect to that action, unless as a
part of that action a court of competent jurisdiction over that
action determines that each of the material assertions made by
Indemnitee as a basis for such action was not made in good faith or
was frivolous.

 

(d) The Company must
make available to Indemnitee a copy of all applications, binders,
policies, declarations, endorsements and other related materials in
respect of policies required to be obtained or maintained pursuant
to this Agreement. The Company must not discontinue or
significantly reduce the scope or amount of coverage from one (1)
policy period to the next without the prior approval thereof by a
majority vote of the incumbent directors of the Company, even if
less than a quorum. The Company must provide Indemnitee with at
least thirty (30) days’ notice of the non-renewal of,
cancellation of or failure to pay any premium due in respect of
such insurance policies.

 

19. Optional Trust. The Company may, but is
not required to, create a trust fund, grant a security interest or
use other means, including without limitation a letter of credit,
to ensure the payment of such amounts as may be necessary to
satisfy its obligations to indemnify and advance Expenses pursuant
to this Agreement.

 

20. No Imputation. The knowledge and/or
actions, or failure to act, of any director, officer, agent or
employee of the Company or the Company itself must not be imputed
to Indemnitee for purposes of determining any rights under this
Agreement.

 

21. Severability. The provisions of this
Agreement are severable in the event that any of the provisions
hereof (including any provision within a single section, paragraph
or sentence) are held by a court of competent jurisdiction to be
invalid, void or otherwise unenforceable, and the remaining
provisions, including without limitation in the same section,
paragraph or sentence, must remain enforceable to the fullest
extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including, without
limitations, each portion of this Agreement containing any
provision held to be invalid, void or otherwise unenforceable, that
is not itself invalid, void or unenforceable) must be construed so
as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable.

 

22. Coverage. This Agreement applies with
respect to Indemnitee’s service as Senior Vice President and
Chief Human Resources Officer of the Company prior to the date of
this Agreement.

 

23. Governing Law. This Agreement and the
relationship of the parties hereto with respect to the subject
matter hereof are governed by and construed and enforced in
accordance with the laws of the State of Delaware, as applied to
contracts between Delaware residents, entered into and to be
performed entirely within the State of Delaware, without regard to
the conflict of laws principles thereof.

 

24. Amendment and Termination. No amendment,
modification, termination or cancellation of this Agreement is
effective unless it is in writing signed by both the parties
hereto. No waiver of any of the provisions of this Agreement may be
deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor may such waiver constitute a
continuing waiver.

 

 

 

 

-14-

 

 

25. Identical Counterparts; Facsimile. This
Agreement may be executed in one (1) or more counterparts,
including counterparts transmitted by facsimile or other electronic
communication, each of which shall for all purposes be deemed to be
an original but all of which together constitute but one (1) and
the same Agreement. Only one (1) such counterpart need be produced
to evidence the existence of this Agreement. Facsimile signatures,
or signatures delivered by other electronic transmission, are as
effective as original signatures.

 

26. Headings. The headings of the sections
of this Agreement are inserted for convenience only and must not be
deemed to constitute part of this Agreement or to affect the
construction hereof.

 

27. Construction
of Certain Phrases.

 

(a) For purposes of
this Agreement, references to the “Company” includes,
in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed
in a consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its
directors, officers, employees, agents or fiduciaries, so that if
Indemnitee is or was a director, officer, employee, agent or
fiduciary of such constituent corporation, or is or was serving at
the request of such constituent corporation as a director, officer,
employee, agent or fiduciary of another corporation, partnership,
joint venture, employee benefit plan, trust or other enterprise,
Indemnitee will stand in the same position under the provisions of
this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had
continued.

 

(b) For purposes of
this Agreement, references to “other enterprise”
includes employee benefit plans; references to “fines”
includes any excise taxes assessed on Indemnitee with respect to an
employee benefit plan; and references to “serving at the
request of the Company” includes any service as a director,
officer, employee, agent or fiduciary of the Company that imposes
duties on, or involves services by, such director, officer,
employee, agent or fiduciary with respect to an employee benefit
plan, its participants or its beneficiaries; and if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed
to be in the interest of the participants and beneficiaries of an
employee benefit plan, Indemnitee must be deemed to have acted in a
manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

 

28. Notices. All notices and other
communications required or permitted hereunder must be in writing,
shall be effective when given, and must in any event be deemed to
be given (a) five (5) days after deposit with the U.S. Postal
Service or other applicable postal service, if delivered by first
class mail, postage prepaid, (b) upon delivery, if delivered
by hand or by electronic transmission, (c) one (1) business
day after the business day of deposit with overnight courier,
freight prepaid, or (d) one (1) day after the business day of
delivery by facsimile transmission with answer-back received, if
delivered by facsimile transmission, with copy by first class mail,
postage prepaid, and must be addressed if to Indemnitee, at
Indemnitee’s address as set forth beneath Indemnitee’s
signature to this Agreement and if to the Company at the address of
its principal corporate offices (attention: secretary) or at such
other address as such party may designate by ten (10) days’
advance written notice to the other party hereto.

 

29. Consent to Jurisdiction. The Company and
Indemnitee each hereby irrevocably consent to the jurisdiction of
the Courts of Chancery of the State of Delaware for all purposes in
connection with any action or proceeding which arises out of or
relates to this Agreement and agree that any action instituted
under this Agreement must be commenced, prosecuted and continued
only in that Court, which is the exclusive and only proper forum
for adjudicating such a claim

 

 

 

 

-15-

 

 

30. Equitable Relief. The Company and
Indemnitee agree that a monetary remedy for breach of this
Agreement may be inadequate, impracticable and difficult of proof,
and further agree that such breach may cause Indemnitee irreparable
harm. Accordingly, the Company and Indemnitee agree that Indemnitee
may enforce this Agreement by seeking equitable remedies, including
injunctive relief and/or specific performance, without any showing
of actual damage or irreparable harm and that by seeking equitable
remedies, Indemnitee will not be precluded from seeking or
obtaining any other relief to which Indemnitee may be entitled. The
Company and Indemnitee further agree that Indemnitee is entitled to
such equitable remedies without the necessity of posting bonds or
other undertaking in connection therewith. The Company hereby
waives any requirement of a bond or other undertaking.

 

31. Integration and Entire Agreement. This
Agreement sets forth the entire understanding between the parties
hereto and supersedes and merges all previous written and oral
negotiations, commitments, understandings and agreements relating
to the subject matter hereof between the parties hereto;
provided, however, that
this Agreement is a supplement to and in furtherance of the
Certificate, the Bylaws, the DGCL and any other applicable law, and
must not be deemed a substitute therefor, and does not diminish or
abrogate any rights of Indemnitee thereunder, and this Agreement
does not release the Company from its obligations to the extent
such obligations have been incurred under the Prior Indemnification
Agreement.

 

[Signature page follows]

 

 

 
-16-

 

 

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on and as of the day and year first
above written.

 

	
 

	

AUTOWEB, INC.

	
 

	
 

	
 

	
By:/s/ Glenn E.
Fuller

	
 

	
Glenn E.
Fuller

	
 

	
Executive Vice
President, Chief Legal

	
 

	
and Administrative
Officer and

	
 

	
Secretary

	
 

	
  

	
 

	

INDEMNITEE  

	
 

	
  

	
 

	
/s/ Sara Partin

	
 

	
Signature

	
 

	
 

	
 

	
Print Name: Sara
Partin 

	
 

	
 

	
 

	
Address: AutoWeb,
Inc. 

	
 

	
18872 MacArthur
Blvd. 

	
 

	

Suite
200

	
 

	

Irvine,
CA 92612 

 

 

 

-17-Blueprint

 

Exhibit 10.4
 

 

AUTOWEB,
INC.

 

SEVERANCE
BENEFITS AGREEMENT

 

 

 

This
Severance Benefits Agreement (“Agreement”) entered into effective
as of October 22, 2018 (“Effective Date”) between AutoWeb,
Inc., a Delaware corporation (“AutoWeb” or “Company”), and Sara Partin
(“Employee”).

 

Background

 

AutoWeb
has determined that it is in its best interests to provide Employee
with certain severance benefits to encourage Employee’s
continued employment with, and dedication to the business of, the
Company.

 

In
consideration of the foregoing and other good and valuable
consideration, receipt of which is hereby acknowledged, the Parties
hereby agree as follows.

 

1. Definitions.
For purposes of this Agreement, the terms below that begin with
initial capital letters within this Agreement shall have the
specially defined meanings set forth below (unless the context
clearly indicates a different meaning).

 

(a) “409A Suspension Period”
shall have the meaning set forth in Section 3.

 

(b) “Arbitration Agreement”
means that certain Mutual Agreement to Arbitrate dated as October
22, 2018 entered into by and between the Company and
Employee.

 

(c) “Cause” shall mean the
termination of the Employee’s employment by the Company as a
result of any one or more of the following:

 

(i)     
any
conviction of, or pleading of nolo contendere by, the Employee for
any felony;

 

(ii)    

any willful misconduct of the Employee which has a materially
injurious effect on the business or reputation of the
Company;

 

(iii)   

the
gross dishonesty of the Employee in any way that adversely affects
the Company; or

 

(iv)   

a material failure
to consistently discharge Employee’s employment duties to the
Company which failure continues for thirty (30) days following
written notice from the Company detailing the area or areas of such
failure, other than such failure resulting from Employee’s
Disability.

 

For
purposes of this definition of Cause, no act or failure to act, on
the part of the Employee, shall be considered “willful”
if it is done, or omitted to be done, by the Employee in good faith
or with reasonable belief that Employee’s action or omission
was in the best interest of the Company. Employee shall have the
opportunity to cure any such acts or omissions (other than clauses
(i) and (iii) above) within thirty (30) days of the
Employee’s receipt of a written notice from the Company
notifying Employee that, in the opinion of the Company,
“Cause” exists to terminate Employee’s
employment.

 

 

 

-1-

 

 

(d) “Change of Control” shall
mean any of the following events:

 

       
           
           
           
(i)         When
any “person” as defined in Section 3(a)(9) of the
Exchange Act and as used in Sections 13(d) and 14(d) thereof
(including a “group” as defined in Section 13(d) of the
Exchange Act, but excluding the Company, any Subsidiary or any
employee benefit plan sponsored or maintained by the Company or any
Subsidiary (including any trustee of such plan acting as trustee)),
directly or indirectly, becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act, as amended from
time to time), of securities of the Company representing 50% or
more of the combined voting power of the Company’s then
outstanding securities.

 

       
           
           
           
(ii)         When
the individuals who, as of the Effective Date, constitute the Board
(“Incumbent
Board”), cease for any
reason to constitute at least a majority of the Board; provided
however, that any individual becoming a director subsequent to such
date, whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board
shall, for purposes of this section, be counted as a member of the
Incumbent Board in determining whether the Incumbent Board
constitutes a majority of the Board.

 

       
           
           
           
(iii)         
Consummation of a reorganization,
merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company or the acquisition
of assets of another corporation (a “Business
Combination”), in each
case, unless, following such Business
Combination:

 

(1)           all
or substantially all of the individuals and entities who were the
beneficial owners of the then outstanding shares of common stock of
the Company and the beneficial owners of the combined voting power
of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors immediately prior to
such Business Combination beneficially own, directly or indirectly,
more than fifty percent (50%) of the then outstanding shares of
common stock and the combined voting power of the then outstanding
securities entitled to vote generally in the election of directors,
respectively, as the case may be, of the corporation resulting from
such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets either
directly or indirectly or through one or more subsidiaries);
and

 

(2)           no
person (excluding any employee benefit plan or related trust of the
Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, fifty
percent (50%) or more of the then outstanding shares of common
stock of the corporation resulting from such Business Combination
or the combined voting power of such corporation except to the
extent that such ownership existed prior to the Business
Combination.

 

       
           
           
           
(iv)         
Approval by the stockholders of the
Company of a complete liquidation or dissolution of the
Company.

 

(e) “COBRA” shall mean the
Consolidated Omnibus Budget Reconciliation Act, as amended, and the
rules and regulations promulgated thereunder.

 

 

 

-2-

 

 

(f) “Code” shall mean the
Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

 

(g) “Company” means AutoWeb,
and upon any assignment to and assumption of this Agreement by any
Successor Company, shall mean such Successor Company.

 

(h) “Disability” shall mean
the inability of the Employee to perform Employee’s duties to
the Company on account of physical or mental illness or incapacity
for a period of one-hundred twenty (120) consecutive calendar days,
or for a period of one hundred eighty (180) calendar days, whether
or not consecutive, during any three hundred sixty-five (365) day
period.

 

(i) “Employee’s
Position” means Employee’s position as the SVP,
Chief Human Resources Officer of the Company.

 

(j) “Employee’s Primary Work
Location” means AutoWeb’s headquarters located
at 18872 MacArthur Blvd, Suite 200, Irvine, CA 92612

 

(k) “Good Reason” means any
act, decision or omission by the Company that: (A) materially
modifies, reduces, changes, or restricts Employee’s base
salary as in existence as of the Effective Date or as of the date
prior to any such change, whichever is more beneficial for Employee
at the time of the act, decision, or omission by the Company; (B)
materially modifies, reduces, changes, or restricts the
Employee’s Health and Welfare Benefits as a whole as in
existence as of the Effective Date hereof or as of the date prior
to any such change, whichever are more beneficial for Employee at
the time of the act, decision, or omission by the Company; (C)
materially modifies, reduces, changes, or restricts the
Employee’s authority, duties, or responsibilities
commensurate with the Employee’s Position but excluding the
effects of any reductions in force other than the Employee’s
own termination; (D) only if employee has relocated to the
Irvine, California area, either relocates the employee’s
place of employment from Executive’s Primary Work Location to
any other location in excess of a forty (40) mile radius from the
Executive’s Primary Work Location or requires any such
relocation as a condition to continued employment by Company or
Successor Company; (E) requires Executive to relocate from Atlanta,
GA; (F) constitutes a failure or refusal by any Company Successor
to assume this Agreement; or (G) involves or results in any
material failure by the Company to comply with any provision of
this Agreement, other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of written notice
thereof given by the Employee. Notwithstanding the foregoing, no
event shall constitute “Good Reason” unless (i) the
Employee first provides written notice to the Company within ninety
(90) days of the event(s) alleged to constitute Good Reason, with
such notice specifying the grounds that are alleged to constitute
Good Reason, and (ii) the Company fails to cure such a material
breach to the reasonable satisfaction of the Employee within thirty
(30) days after Company’s receipt of such written
notice.

 

(l) “Health and Welfare
Benefits” means all Company medical, dental, vision,
life and disability plans in which Employee
participates.

 

 

 

 

-3-

 

 

(m) “Separation from Service”
or “Separates from
Service” shall mean Employee’s termination of
employment, as determined in accordance with Treas. Reg. §
1.409A-1(h). Employee shall be considered to have experienced a
termination of employment when the facts and circumstances indicate
that Employee and the Company reasonably anticipate that either (i)
no further services will be performed for the Company after a
certain date, or (ii) that the level of bona fide services Employee
will perform for the Company after such date (whether as an
employee or as an independent contractor) will permanently decrease
to no more than twenty percent (20%) of the average level of bona
fide services performed by Employee (whether as an employee or
independent contractor) over the immediately preceding thirty-six
(36) month period (or the full period of services to the Company if
Employee has been providing services to the Company for less than
thirty six (36) months). If Employee is on military leave, sick
leave, or other bona fide leave of absence, the employment
relationship between Employee and the Company shall be treated as
continuing intact, provided that the period of such leave does not
exceed six months, or if longer, so long as Employee retains a
right to reemployment with the Company under an applicable statute
or by contract. If the period of a military leave, sick leave, or
other bona fide leave of absence exceeds six months and Employee
does not retain a right to reemployment under an applicable statute
or by contract, the employment relationship shall be considered to
be terminated for purposes of this Agreement as of the first day
immediately following the end of such six-month period. In applying
the provisions of this section, a leave of absence shall be
considered a bona fide leave of absence only if there is a
reasonable expectation that Employee will return to perform
services for the Company. For purposes of determining whether
Employee has incurred a Separation from Service, the Company shall
include the Company and any entity that would be considered a
single employer with the Company under Code Section 414(b) or
414(c).

 

(n) “Severance Period” shall
equal Six (6) months.

 

(o) “Successor Company” means
any successor to AutoWeb or its assets by reason of any Change of
Control.

 

(p) “Termination Without
Cause” means termination of Employee’s
employment with the Company (i) by the Company (a) for any reason
other than (1) death, (2) Disability or (3) those reasons expressly
set forth in the definition of “Cause,” (b) for no
reason at all, or (c) in connection with or as a result of a Change
of Control; provided, however, that a termination of
Employee’s employment with the Company in connection with a
Change of Control shall not constitute a Termination Without Cause
if Employee is offered employment with the Successor Company under
terms and conditions, including position, salary and other
compensation, and benefits, that would not provide Employee the
right to terminate Employee’s employment for Good
Reason.

 

 

 

 

-4-

 

 

2. Severance Benefits
and Conditions.

 

(a) In the event of (i)
Termination Without Cause by the Company, or (ii) the termination
of Employee’s employment with the Company by Employee for
Good Reason within 30 days following the earlier of (1) the
Company’s failure to cure within the 30-day period set forth
in the definition of Good Reason, and (2) the Company’s
notice to Employee that it will not cure the event giving rise to
such termination for Good Reason, then (A) Employee shall receive
upon such termination a lump sum amount equal to the number of
months constituting the Severance Period at the time of termination
times the Employee’s monthly base salary (determined as the
Employee’s highest monthly base salary paid to Employee while
employed by the Company; base salary does not include any bonus,
commissions or other incentive payments or compensation); (B)
subject to Section 2(b) below, Employee shall be entitled to a
continuation of all Health and Welfare Benefits for Employee and,
if applicable, Employee’s eligible dependents during the
Severance Period at the time they would have been provided or paid
had the Employee remained an employee of Company during the
Severance Period and at the levels provided prior to the event
giving rise to a termination; and (C) the Company shall make
available to Employee career transition services at a level and
with a provider selected by the Company in accordance with Section
2(g) below.

 

(b) (i)            With
respect to Health and Welfare Benefits that are eligible for
continuation coverage under COBRA, in the event the Company is
unable to continue Employee’s and Employee’s eligible
dependents’ (assuming such dependents were covered by AutoWeb
at the time of termination) participation under the Company’s
then existing insurance policies for such Health and Welfare
Benefits, Employee may elect to obtain coverage for such Health and
Welfare Benefits either by (1) electing COBRA continuation benefits
for Employee and Employee’s eligible dependents; (2)
obtaining individual coverage for Employee and Employee’s
eligible dependents (if Employee and Employee’s eligible
dependents qualify for individual coverage); or (3) electing
coverage as eligible dependents under another person’s group
coverage (if Employee and Employee’s eligible dependents
qualify for such dependent coverage), or any combination of the
foregoing alternatives. Employee may also initially elect COBRA
continuation benefits and later change to individual coverage or
dependent coverage for Employee or any eligible dependent of
Employee, but Employee understands that if continuation of Health
and Welfare Benefits under COBRA is not initially selected by
Employee or is later terminated by Employee, Employee will not be
able to return to continuation coverage under COBRA. The Company
shall pay directly or reimburse to Employee the monthly premiums
for the benefits or coverage selected by Employee, with such
payment or reimbursement not to exceed the monthly premiums the
Company would have paid assuming Employee elected continuation of
benefits under COBRA. The Company’s obligation to pay or
reimburse for the Health and Welfare Benefits covered by this
Section 2(b)(i) shall terminate upon the earlier of (i) the end of
the Severance Period; and (ii) Employee’s employment by an
employer that provides Employee and Employee’s eligible
dependents with group coverage substantially similar to the Health
and Welfare Benefits provided to Employee and Employee’s
eligible dependents at the time of the termination of
Employee’s employment with the Company, provided that
Employee and Employee’s eligible dependents are eligible for
participation in such group coverage.

 

 

 

-5-

 

 

(ii)           With
respect to Health and Welfare Benefits that are not eligible for
continuation coverage under COBRA, in the event the Company is
unable to continue Employee’s participation under the
Company’s then existing insurance policies for such Health
and Welfare Benefits, Employee may elect to obtain coverage for
such Health and Welfare Benefits either by (1) obtaining individual
coverage for Employee (if Employee qualifies for individual
coverage); or (2) electing coverage as an eligible dependent under
another person’s group coverage (if Employee qualifies for
such dependent coverage), or any combination of the foregoing
alternatives. The Company shall pay directly or reimburse to
Employee the monthly premiums for the benefits or coverage selected
by Employee, with such payment or reimbursement not to exceed the
monthly premiums the Company paid for such Health and Welfare
Benefits at the time of termination of Employee’s employment
with the Company. The Company’s obligation to pay or
reimburse for the Health and Welfare Benefits covered by this
Section 2(b)(ii) shall terminate upon the earlier of (i) the end of
the Severance Period; and (ii) Employee’s employment by an
employer that provides Employee with group coverage substantially
similar to the Health and Welfare Benefits provided to Employee at
the time of the termination of Employee’s employment with the
Company, provided that Employee is eligible for participation in
such group coverage. Employee acknowledges and agrees that the
Company shall not be obligated to provide any Health and Welfare
Benefits covered by this Section 2(b)(ii) for Employee if Employee
does not qualify for coverage under the Company’s existing
insurance policies for such Health and Welfare Benefits, for
individual coverage, or for dependent coverage.

 

(c)           The
payments and benefits set forth in Sections 2(a) and 2(b) are
conditioned upon and shall be provided to Employee only if (i)
Employee has executed and delivered to the Company a Separation and
Release Agreement in favor of the Company and Releasees, which
agreement shall be substantially in the form attached hereto as
Exhibit A (“Release”) no later than the
expiration of the applicable period of time allowed for Employee to
consider the Release as set forth in Section 17 of the Release
(“Release Consideration
Period”); (ii) Employee has not revoked the Release
prior to the expiration of the applicable revocation period set
forth in Section 17 of the Release (“Release Revocation Period”); and
(iii) the Release has become effective and non-revocable no later
than the cumulative period of time represented by the sum of the
maximum Release Consideration Period and the maximum Release
Revocation Period. No payments or benefits set forth in Sections
2(a) or 2(b) shall be due or payable to, or provided to, Employee
if the Release has not become effective and non-revocable in
accordance with the requirements of this Section 2(c).

 

(d)           Upon
satisfaction of the conditions set forth in Section 2(c), but
subject to the last sentence of this Section 2(d), all payments
under Section 2(a)(A) shall be made to Employee within five (5)
business days after the Release becomes effective and non-revocable
in accordance with its terms. In any case, the payment under
Section 2(a)(A) shall be made no later than two and one-half months
after the end of the calendar year in which Employee’s
Separation from Service occurs, provided that the Release shall
have become effective and non-revocable in compliance with Section
2(c) prior to expiration of such two and one-half month period. If
the period of time covered by the entire allowed Release
Consideration Period, the entire Revocation Period and the entire
five business day period described above in this Section 2(d)
(considering such periods consecutively) begins in one calendar
year and ends in the following calendar year, all payments under
Section 2(a)(A) shall be made to Employee on the first business day
of such following calendar year which is five (5) or more business
days after the date on which the Release became effective and
non-revocable in accordance with its terms.

 

 

 

-6-

 

 

(e)           In
addition to the payments and benefits under Sections 2(a) and 2(b),
to the extent required by applicable law or the Company’s
incentive or other compensation plans applicable to Employee, if
any, upon any termination of Employee’s employment Employee
shall receive (i) any amounts earned and due and owing to Employee
as of the termination date with respect to any base salary,
incentive compensation or commissions; and (ii) any other payments
required by applicable law (including payments with respect to
accrued and unused vacation time). Payments required under this
Section 2(e) are not conditioned upon Employee’s signing the
Release and shall be made within the time period(s) required by
applicable law.

 

(f)           All
payments and benefits under this Section 2 are subject to legally
required federal, state and local payroll deductions and
withholdings.

 

(g)           To
receive career transition services, Employee must contact the
service provider no later than 30 days after the Release becomes
effective.

 

(h)           Other
than the payments and benefits provided for in this Section 2,
Employee shall not be entitled to any additional payments or
benefits from the Company resulting from a termination of
Employee’s employment with the Company.

 

3. Taxes. All
payments made pursuant to this Agreement will be subject to
withholding of applicable taxes. Notwithstanding the foregoing, and
except as otherwise specifically provided elsewhere in this
Agreement, Employee is solely responsible and liable for the
satisfaction of any federal, state, province or local taxes that
may arise with respect to this Agreement (including any taxes and
interest arising under Section 409A of the Code). Neither the
Company nor any of its employees, directors, or service providers
shall have any obligation whatsoever to pay such taxes or interest,
to prevent Employee from incurring them, or to mitigate or protect
Employee from any such tax or interest liabilities. Notwithstanding
anything in this Agreement to the contrary, if any amounts that
become due under this Agreement on account of Employee’s
termination of employment constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code,
payment of such amounts shall not commence until Employee incurs a
Separation from Service. If, at the time of Employee’s
Separation from Service under this Agreement, Employee is a
“specified employee” (within the meaning of Section
409A of the Code), any amounts that constitute “nonqualified
deferred compensation” within the meaning of Section 409A of
the Code that become payable to Employee on account of
Employee’s Separation from Service (including any amounts
payable pursuant to the preceding sentence) will not be paid until
after the end of the sixth calendar month beginning after
Employee’s Separation from Service (“409A Suspension Period”). Within
14 calendar days after the end of the 409A Suspension Period,
Employee shall be paid a lump sum payment, without interest, in
cash equal to any payments delayed because of the preceding
sentence. Thereafter, Employee shall receive any remaining benefits
as if there had not been an earlier delay. With respect to the
reimbursement of expenses to which Employee is entitled under this
Agreement, if any, or the provision of in-kind benefits to Employee
as specified under this Agreement, if any, such reimbursement of
expenses or provision of in-kind benefits shall be subject to the
following conditions: (i) the expenses eligible for
reimbursement or the amount of in-kind benefits provided in one
taxable year shall not affect the expenses eligible for
reimbursement or the amount of in-kind benefits provided in any
other taxable year, except for any medical reimbursement
arrangement providing for the reimbursement of expenses referred to
in Section 105(b) of the Code, solely to the extent that the
arrangement provides for a limit on the amount of expenses that may
be reimbursed under such arrangement over some or all of the period
in which the reimbursement arrangement remains in effect;
(ii) the reimbursement of an eligible expense shall be made no
later than the end of the calendar year after the calendar year in
which such expense was incurred; (iii) the right to
reimbursement or in-kind benefits shall not be subject to
liquidation or exchange for another benefit; and (iv) the right to
reimbursement or provision of in-kind benefits shall not apply to
any expenses incurred or benefits to be provided beyond the last
day of the second taxable year following the year in which
Employee's Separation from Service occurred.

 

 

 

-7-

 

 

4. Arbitration.
Any controversy or claim arising out of, or related to, this
Agreement, or the breach thereof, shall be governed by the terms of
the Arbitration Agreement, which is incorporated herein by
reference.

 

5. Entire
Agreement. All oral or written agreements or representations
express or implied, with respect to the subject matter of this
Agreement are set forth in this Agreement. This Agreement contains
the entire integrated understanding between the parties hereto and
supersedes any prior employment, severance, or change-in-control
protective agreement or other agreement, plan or arrangement
between the Company or any predecessor and Employee. No provision
of this Agreement shall be interpreted to mean that Employee is
subject to receiving fewer benefits than those available to
Employee without reference to this Agreement. The Parties
acknowledge and agree that the Prior Severance Agreement is hereby
terminated and shall have no further force or effect.

 

6. Notices.
Except as otherwise provided in this Agreement, any notice,
approval, consent, waiver or other communication required or
permitted to be given or to be served upon any person in connection
with this Agreement shall be in writing. Such notice shall be
personally served, sent by fax or cable, or sent prepaid by either
registered or certified mail with return receipt requested or
Federal Express and shall be deemed given (i) if personally served
or by Federal Express, when delivered to the person to whom such
notice is addressed, (ii) if given by fax or cable, when sent, or
(iii) if given by mail, two (2) business days following deposit in
the United States mail. Any notice given by fax or cable shall be
confirmed in writing, by overnight mail or Federal Express within
forty-eight (48) hours after being sent. Such notices shall be
addressed to the party to whom such notice is to be given at the
party’s address set forth below or as such party shall
otherwise direct.

 

If to
the Company:

 

AutoWeb,
Inc.

18872
MacArthur Boulevard, Suite 200

Irvine,
California, 92612-1400

Facsimile: (949)
862-1323

Attn:
Chief Legal Officer

 

If to
the Employee:

 

To
Employee’s latest home address on file with the
Company

 

7. No Waiver.
No waiver, by conduct or otherwise, by any party of any term,
provision, or condition of this Agreement, shall be deemed or
construed as a further or continuing waiver of any such term,
provision, or condition nor as a waiver of a similar or dissimilar
condition or provision at the same time or at any prior or
subsequent time.

 

8. Amendment to this
Agreement. No modification, waiver, amendment, discharge or
change of this Agreement, shall be valid unless the same is in
writing and signed by the party against whom enforcement of such
modification, waiver amendment, discharge, or change is or may be
sought.

 

 

 

-8-

 

 

9. Non-Disclosure.
Unless required by applicable law, rule, regulation or order or to
enforce this Agreement, Employee shall not disclose the existence
of this Agreement or the underlying terms to any third party,
including without limitation, any former, present or future
employee of the Company, other than to Employee’s immediate
family who have a need to know such matters or to Employee’s
tax or legal advisors who have a need to know such matters. If
Employee does disclose this Agreement or any of its terms to any of
Employee’s immediate family or tax or legal advisors, then
Employee will inform them that they also must keep the existence of
this Agreement and its terms confidential. The Company may disclose
the existence or terms of the Agreement and its terms and may file
this Agreement as an exhibit to its public filings if it is
required to do so under applicable law, rule, regulation or
order.

 

10. Enforceability;
Severability. If any provision of this Agreement shall be
invalid or unenforceable, in whole or in part, such provision shall
be deemed to be modified or restricted to the extent and in the
manner necessary to render the same valid and enforceable, or shall
be deemed excised from this Agreement, as the case may require, and
this Agreement shall be construed and enforced to the maximum
extent permitted by law as if such provision had been originally
incorporated herein as so modified or restricted, or as if such
provision had not been originally incorporated herein, as the case
may be.

 

11. Governing
Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of California without giving
effect to such State’s choice of law rules. This Agreement is
deemed to be entered into entirely in the State of California. This
Agreement shall not be strictly construed for or against either
party.

 

12. No Third Party
Beneficiaries. Except as otherwise set forth in this
Agreement, nothing contained in this Agreement is intended or shall
be construed to create rights running to the benefit of any third
party.

 

13. Successors of the
Company. The rights and obligations of the Company under
this Agreement shall inure to the benefit of, and shall be binding
upon, the successors and assigns of the Company, including any
Successor Company. This Agreement shall be assignable by the
Company in the event of a merger or similar transaction in which
the Company is not the surviving entity, or a sale of all or
substantially all of the Company’s assets.

 

14. Rights
Cumulative. The rights under this Agreement, or by law or
equity, shall be cumulative and may be exercised at any time and
from time to time. No failure by any party to exercise, and no
delay in exercising, any rights shall be construed or deemed to be
a waiver thereof, nor shall any single or partial exercise by any
party preclude any other or future exercise thereof or the exercise
of any other right.

 

15. No Right or
Obligation of Employment. Employee acknowledges and agrees
that nothing in this Agreement shall confer upon Employee any right
with respect to continuation of employment by the Company, nor
shall it interfere in any way with Employee’s right or the
Company’s right to terminate Employee’s employment at
any time, with or without Cause.

 

 

 

 

-9-

 

 

16. Interpretation.
Every provision of this Agreement is the result of full
negotiations between the parties, both of whom have either been
represented by counsel throughout or otherwise been given an
opportunity to seek the aid of counsel. Each party hereto further
agrees and acknowledges that it is sophisticated in legal affairs
and has reviewed this Agreement in detail. Accordingly, no
provision of this Agreement shall be construed in favor of or
against any of the parties hereto by reason of the extent to which
any such party or its counsel participated in the drafting thereof.
Captions and headings of sections contained in this Agreement are
for convenience only and shall not control the meaning, effect, or
construction of this Agreement. Time periods used in this Agreement
shall mean calendar periods unless otherwise expressly
indicated.

 

17. Legal and Tax
Advice. Employee acknowledges that: (i) the Company has
encouraged Employee to consult with an attorney and/or tax advisor
of Employee’s choosing (and at Employee’s own cost and
expense) in connection with this Agreement, and (ii) Employee is
not relying upon the Company for, and the Company has not provided,
legal or tax advice to Employee in connection with this Agreement.
It is the responsibility of Employee to seek independent tax and
legal advice with regard to the tax treatment of this Agreement and
the payments and benefits that may be made or provided under this
Agreement and any other related matters. Employee acknowledges that
Employee has had a reasonable opportunity to seek and consider
advice from Employee’s counsel and tax advisors.

 

18. Counterparts.
This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which shall
constitute one instrument. The parties agree that facsimile copies
of signatures shall be deemed originals for all purposes hereof and
that a party may produce such copies, without the need to produce
original signatures, to prove the existence of this Agreement in
any proceeding brought hereunder.

 

 

 

[Remainder of page intentionally left blank.]

 

 

 

-10-

 

 

IN WITNESS WHEREOF, the Company and
Employee have executed and entered into this Agreement effective as
of the date first shown above. 

 

 

	
 

	

AUTOWEB, INC.

	
 

	
 

	
 

	
By:/s/ Glenn E.
Fuller

	
 

	
Glenn E.
Fuller

	
 

	
Executive Vice
President, Chief Legal and

	
 

	
Administrative
Officer and Secretary

	
 

	

	
 

	
  

	
 

	
EMPLOYEE

	
 

	
  

	
 

	
/s/ Sara Partin

	
 

	
Sara Partin

 

  

 

 

 

-11-

 

 

EXHIBIT A

 

SEPARATION AND RELEASE AGREEMENT

 

It is
hereby agreed by and between you, Sara Partin (for yourself, your
spouse, family, agents and attorneys) (jointly, “You” or “Employee”), and AutoWeb, Inc., its
predecessors, successors, affiliates, directors, employees,
shareholders, fiduciaries, insurers, employees and agents (jointly,
the “Company”),
as follows:

 

1. Separation
of Employment. You acknowledge that your employment with the
Company ended effective [_______], 201[__] (“Employment Termination Date”), and
that You will perform no further duties, functions or services for
the Company subsequent to the Employment Termination Date. You have
resigned or hereby resign from all officer and director positions
You held with the Company or any of its subsidiaries effective as
of the Employment Termination Date. This Separation and Release
Agreement (“Release”) is entered into in
connection with that certain Severance Benefits Agreement dated
effective as of October 22, 2018 by and between the Company and
Employee (“Severance Benefits
Agreement”).

 

2. Release
Consideration. In exchange for your promises and obligations
in this Release and the Severance Benefits Agreement, including the
release of claims set forth below, if You sign and do not revoke
this Release and this Release becomes effective, the Company will
pay You the amounts, and will provide the benefits, due to You
under the Severance Benefits Agreement, minus legally required
federal, state and local payroll deductions and withholdings.
Payment of any monetary amount provided for in this Section 2 will
be made within the time periods required by the Severance Benefits
Agreement (except for payments or benefits that will be paid or
provided over time as provided therein) and, if no time is
specified, within 5 business days after this Release becomes
effective.

 

3. Acknowledgement
of Receipt of Amounts Due. You acknowledge and agree that
You have received all, and that the Company does not owe You any
additional, payments, benefits or other compensation as a result of
your employment with the Company or your separation from employment
with the Company, including, but not limited to, wages,
commissions, bonuses, vacation pay, severance pay, expenses, fees,
or other compensation or payments of any kind or nature, other than
those amounts or benefits, if any, payable or to be provided to You
after the date hereof pursuant to the Severance Benefits Agreement
after this Release becomes effective.

 

4. Return
of Company Property. You represent and warrant that You have
returned to the Company any and all documents, software, equipment
(including, but not limited to, computers and computer-related
items), and all other materials or other things in your possession,
custody, or control which are the property of the Company,
including, but not limited to, Company identification, keys,
computers, cell phones, and the like, wherever such items may have
been located; as well as all copies (in whatever form thereof) of
all materials relating to your employment, or obtained or created
in the course of your employment with the Company. You hereby
represent that, other than those materials You have returned to the
Company pursuant to this Section 4, You have not copied or caused
to be copied, and have not transferred or printed-out or caused to
be transferred or printed-out, any software, computer disks,
e-mails or other documents other than those documents generally
available to the public, or retained any other materials
originating with or belonging to the Company. You further represent
that You have not retained in your possession, custody or control,
any software, documents or other materials in machine or other
readable form, which are the property of the Company, originated
with the Company, or were obtained or created in the course of or
relate to your employment with the Company.

 

 

 

A-1

 

 

5. Confidentiality
and Non-Solicitation/Interference.

 

(a) You
shall keep confidential, and shall not hereafter use or disclose to
any person, firm, corporation, governmental agency, or other
entity, in whole or in part, at any time in the future, any trade
secret, proprietary information, or confidential information of the
Company, including, but not limited to, information relating to
trade secrets, processes, methods, pricing strategies, customer
lists, marketing plans, product introductions, advertising or
promotional programs, sales, financial results, financial records
and reports, regulatory matters and compliance, and other
confidential matters, except as required by law and as necessary
for compliance purposes. These obligations are in addition to the
obligations set forth in any confidentiality or non-disclosure
agreement between You and the Company, including, without
limitation, that certain Employee Confidentiality Agreement dated
as of October 22, 2018, which shall remain binding on You after the
Employment Termination Date.

 

(b)
Unless required by applicable law, rule, regulation or order or to
enforce this Agreement, Employee shall not disclose the existence
of the Severance Benefits Agreement or this Release or the
underlying terms to any third party, including without limitation,
any former, present or future employee of the Company, other than
to Employee’s immediate family who have a need to know such
matters or to Employee’s tax or legal advisors who have a
need to know such matters. If Employee does disclose this Release,
the Severance Benefits Agreement or any of their respective terms
to any of Employee’s immediate family or tax or legal
advisors, then Employee will inform them that they also must keep
the existence of this Release, the Severance Benefits Agreement and
their respective terms confidential. The Company may disclose the
existence or terms of this Release, the Severance Benefits
Agreement and their respective terms and may file this Release and
the Severance Benefits Agreement as exhibits to its public filings
if it is required to do so under applicable law, rule, regulation
or order.

 

(c) For
a period of one (1) year immediately following this Release
becoming effective, You agree that You will not interfere with
Company’s business by soliciting an employee to leave
Company’s employ, or by inducing a consultant or vendor to
sever its relationship with Company. You may not, at any time, use
the Company’s trade secrets to solicit business from any
source, including the Company’s customers or clients. This
Section 5(c) is not intended to, and shall not, prevent You from
lawful competition with the Company. You represent and warrant that
You have not engaged in any of the foregoing activities prior to
the effective date of this Release.

 

6. Nondisparagement.
You agree that neither You nor anyone acting on your behalf or at
your direction will disparage, denigrate, defame, criticize, impugn
or otherwise damage or assail the reputation or integrity of the
Company publicly or privately to any third party, including without
limitation (i) to any current or former employee, officer,
director, contractor, supplier, customer, or client of the Company;
(ii) any prospective or actual purchaser of the equity interests of
the Company or its business or assets; or (iii) to any person or
entity in the automotive industry, automotive marketing,
advertising or other services, or the automotive
press.

 

7. Unconditional
General Release of Claims.

 

 

 

 

A-2

 

 

 

(a) 

In consideration
for the payment and benefits provided for in Section 2, and
notwithstanding the provisions of Section 1542 of the Civil Code of
California, You unconditionally release and forever discharge the
Company, and the Company’s current, former, and future
controlling shareholders, subsidiaries, affiliates, related
companies, predecessor companies, divisions, directors, trustees,
officers, employees, agents, attorneys, successors, and assigns
(and the current, former, and future controlling shareholders,
directors, trustees, officers, employees, agents, and attorneys of
any such subsidiaries, affiliates, related companies, predecessor
companies, and divisions) (all of the foregoing released persons or
entities being referred to herein as “Releasees”), from any and all
claims, complaints, demands, actions, suits, causes of action,
obligations, damages and liabilities of whatever kind or nature,
whether known or unknown, based on any act, omission, event,
occurrence, or nonoccurrence from the beginning of time to the date
of execution of this Release, including, but not limited to, claims
that arise out of or in any way relate to your employment or your
separation from employment with the Company.

 

(b) 

You acknowledge and
agree that the foregoing unconditional and general release
includes, but is not limited to, (i) any claims for salary,
bonuses, commissions, equity, compensation (except as specified in
this Agreement), wages, penalties, premiums, severance pay,
vacation pay or any benefits under the Employee Retirement Income
Security Act of 1974, as amended; (ii) any claims of harassment,
retaliation or discrimination; (iii) any claims based on any
federal, state or governmental constitution, statute, regulation or
ordinance, including, without limitation, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act, the Americans With Disabilities
Act, Section 1981 of the Civil Rights Act of 1866, the California
Fair Employment and Housing Act, the California Family Rights Act,
the Family and Medical Leave Act, the California Constitution, the
California Labor Code, the California Industrial Welfare Commission
Wage Orders, the California Government Code, the Worker Adjustment
and Retraining Notification Act; (iv) whistleblower claims, claims
of breach of implied or express contract, breach of promise,
misrepresentation, negligence, fraud, estoppel, defamation,
infliction of emotional distress, violation of public policy,
wrongful or constructive discharge, or any other employment-related
tort, and any claims for costs, fees, or other expenses, including
attorneys’ fees; and (v) any other aspect of your employment
or the termination of your employment.

 

(c) 

For the purpose of
implementing a full and complete release, You expressly acknowledge
and agree that this Release resolves all claims You may have
against the Company and the Releasees as of the date of this
Release, including but limited to claims that You did not know or
suspect to exist in your favor at the time of the execution of this
Release. You expressly waive any and all rights which You may have
under the provisions of Section 1542 of the California Civil
Code or any similar state or federal statute. Section 1542 provides
as follows: 

 

“A general
release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing
the release, which if known by him or her must have materially
affected his or her settlement with the
debtor.”

 

 

(d) 

This Release will
not waive the Employee’s rights to indemnification under the
Company’s certificate of incorporation or by-laws or, if
applicable, any written agreement between the Company and the
Employee, or under applicable law.

 

 

 

A-3

 

 

(e) 

You hereby certify that You have not
experienced a job-related illness or injury for which You have not
already filed a claim.

 

(f) 

This general
release does not waive or release rights or claims arising after
You sign this Release.

 

8. Covenant
Not to Sue. A
“covenant not to sue” is a promise not to sue in court.
This covenant differs from a general release of claims in that,
besides waiving and releasing the claims covered by this Release,
You represent and warrant that You have not filed, and agree that
You will not file, or cause to be filed or maintained, any judicial
complaint, lawsuit or demand for arbitration involving any claims
You have released in this Release, and You agree to withdraw any
judicial complaints, lawsuits or demands for arbitration You have
filed, or were filed on your behalf, prior to the effective date of
this Release. Still, You may sue to enforce this Release. You agree
if You breach this covenant, then You must pay the legal expenses
incurred by incurred by any Releasee in defending against your
suit, including reasonable attorneys’ fees, or, at the
Company’s option, return everything paid to You under this
Agreement. In that event, the Company shall be excused from making
any further payments or continuing any other benefits otherwise
owed to You under paragraph 2 of this Agreement. Furthermore, You
give up all rights to individual damages in connection with any
administrative or court proceeding with respect to your employment
with or termination of employment from, the Company. You also agree
that if You are awarded money damages, You will assign your right
and interest to such money damages (i) in connection with an
administrative charge, to the relevant administrative agency; and
(ii) in connection with a lawsuit or demand for arbitration, to the
Company.

 

9. Cooperation
With Company. You agree to assist and cooperate (including,
but not limited to, providing information to the Company and/or
testifying truthfully in a proceeding) in the investigation and
handling of any internal investigation, governmental matter, or
actual or threatened court action, arbitration, administrative
proceeding, or other claim involving any matter that arose during
the period of your employment.  You shall be reimbursed for
reasonable expenses actually incurred in the course of rendering
such assistance and cooperation. Your agreement to assist and
cooperate shall not affect in any way the content of information or
testimony provided by You.

 

10. No
Reemployment. You
acknowledge and agree that the Company has no obligation to employ
You or offer You employment in the future and You shall have no
recourse against the Company if it refuses to employ You or offer
You employment. If You do seek re-employment, then this Release
shall constitute sufficient cause for the Company to refuse to
re-employ You. Notwithstanding the foregoing, the Company has the
right to offer to re-employ You in the future if, in its sole
discretion, it chooses to do so.

 

11. No
Admission of Liability. This Release does not constitute an
admission that the Company or any other Releasee has violated any
law, rule, regulation, contractual right or any other duty or
obligation.

 

12. Severability.
Should any provision of this Release be declared or be determined
by any court or arbitrator to be illegal or invalid, the validity
of the remaining parts, terms, or provisions shall not be affected,
and said illegal or invalid part, term, or provision shall be
deemed not to be part of this Release.

 

 

 

A-4

 

 

13. Governing
Law. This Release is made and entered into in the State of
California and shall in all respects be interpreted, enforced, and
governed under the law of that state, without reference to conflict
of law provisions thereof.

 

14. Interpretation.
The language of all parts in this Release shall be construed as a
whole, according to fair meaning, and not strictly for or against
any party. The captions and headings contained in this Agreement
are for convenience only and shall not control the meaning, effect,
or construction of this Agreement.

 

15. Knowing
and Voluntary Agreement. You have carefully reviewed this
Release and understand the terms and conditions it contains. By
entering into this Release, You are giving up potentially valuable
legal rights. You specifically acknowledge that You are waiving and
releasing any rights You may have under the ADEA. You acknowledge
that the consideration given for this waiver and release is in
addition to anything of value to which You were already entitled.
You acknowledge that You are signing this Release knowingly and
voluntarily and intend to be bound legally by its
terms.

 

16. Entire
Agreement. You hereby acknowledge that no promise or
inducement has been offered to You, except as expressly stated in
this Release and in the Severance Benefits Agreement, and You are
relying upon none. This Release and the Severance Benefits
Agreement represent the entire agreement between You and the
Company with respect to the subject matter hereof, and supersede
any other written or oral understandings between the parties
pertaining to the subject matter hereof and may only be amended or
modified with the prior written consent of You and the
Company.

 

17. Arbitration.
Any controversy or claim arising out or, or related to, this
Release Agreement, or the breach thereof, shall be governed by the
terms of the Arbitration Agreement (as defined in the Severance
Benefits Agreement).

 

18. Protected
Rights:

 

   
  (a) An individual may
not be held criminally or civilly liable under any federal or state
trade secret law for the disclosure of a trade secret that: (a) is
made (i) in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney; and
(ii) solely for the purpose of reporting or investigating a
suspected violation of law; or (b) is made in a complaint
or other document that is filed under seal in a lawsuit or other
proceeding. Further, an individual who files a lawsuit for
retaliation by an employer for reporting a suspected violation of
law may disclose the employer’s trade secrets to the attorney
and use the trade secret information in the court proceeding if the
individual: (a) files any document containing the trade secret
under seal; and (b) does not disclose the trade secret, except
pursuant to court order.

 

   
  (b) Employee
understands that nothing contained in your Confidentiality
Agreement limits Employee’s ability to file a charge or
complaint with the Equal Employment Opportunity Commission, the
National Labor Relations Board, the Occupational Safety and Health
Administration, the Securities and Exchange Commission or any other
federal, state or local governmental agency or commission
(“Government Agencies”). Employee further understands
that this Agreement does not limit Employee’s ability to
communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by any
Government Agency, including providing documents or other
information, without notice to Company. This Agreement does not
limit Employee’s right to receive an award for information
provided to any Government Agencies.

 

 

 

 

A-5

 

 

19. Period
for Review and Consideration/Revocation Rights.

 

[Alternative
1 for Section 18 if Employee is NOT age 40 or over at time of
separation from employment]

 

You
understand that You have seven (7) days after this Release has been
delivered to You by the Company to decide whether to sign this
Release, although You may sign this Release at any time within the
seven (7) day period. If You do sign it, You also understand that
You will have an additional three (3) days after the date You
deliver this signed Release to the Company and to change your mind
and revoke this Release, in which case a written notice of
revocation must be delivered to the Company’s Chief Legal
Officer, AutoWeb, Inc., 18872 MacArthur Blvd. Suite 200, Irvine,
California 92612-1400, on or before the third (3rd) day after your
delivery of this signed Release to the Company (or on the next
business day if the third calendar day is not a business day). You
understand that this Release will not become effective or
enforceable until after that three (3) day period has passed. If
You revoke this Release, this Release shall not be effective or
enforceable as to any rights You may have under this Release. In
the event that You revoke this Release, You will not be entitled to
the payments and benefits specified in Paragraph 2.

 

[Alternative
2 for Section 18 if Employee is age 40 or over at time of
separation from employment, separation from employment is NOT in
connection with a group separation, and ADEA Claims are being
released]

 

You
understand that You have twenty-one (21) days after this Release
has been delivered to You by the Company to decide whether to sign
this Release, although You may sign this Release at any time within
the twenty-one (21) day period. If You do sign it, You also
understand that You will have an additional seven (7) days after
the date You deliver this signed Release to the Company and to
change your mind and revoke this Release, in which case a written
notice of revocation must be delivered to the Company’s Chief
Legal Officer, AutoWeb, Inc., 18872 MacArthur Blvd. Suite 200,
Irvine, California 92612-1400, on or before the seventh (7th) day
after your delivery of this signed Release to the Company (or on
the next business day if the seventh calendar day is not a business
day). You understand that this Release will not become effective or
enforceable until after that seven (7) day period has passed. If
You revoke this Release, this Release shall not be effective or
enforceable as to any rights You may have under this Release. In
the event that You revoke this Release, You will not be entitled to
the payments and benefits specified in Paragraph 2.

 

 

 

A-6

 

 

[Alternative
3 for Section 18 if Employee is age 40 or over at time of
separation from employment, separation from employment IS in
connection with a group termination, and ADEA Claims are being
released]

 

(a)                 You
understand that You have forty-five (45) days after this Release
has been delivered to You by the Company to decide whether to sign
this Release, although You may sign this Release at any time within
the forty-five (45) day period. If You do sign it, You also
understand that You will have an additional seven (7) days after You sign to change your
mind and revoke the Agreement, in which case a written notice of
revocation must be delivered to the Company’s Chief Legal
Officer, AutoWeb, Inc., 18872 MacArthur Blvd. Suite 200, Irvine,
California 92612-1400, on or before the seventh (7th) day after
your delivery of this signed Release to the Company (or on the next
business day if the seventh calendar day is not a business day).
You understand that this Release will not become effective or
enforceable until after that seven (7) day period has passed. If
You revoke this Release, this Release shall not be effective or
enforceable as to any rights You may have under this Release. In
the event that You revoke this Release, You will not be entitled to
the payments and benefits specified in Paragraph 2.

 

(b)                 You
acknowledge that You have received the group information of
employees included in the Company’s ____________ group
termination program, the eligibility factors for participation in
the program, and the time limits for participation in the program.
You also acknowledge that You have received lists of the ages and
job titles of employees eligible or selected for the program and
employees not eligible or selected for the group termination
program. This information is set forth on Appendix A attached
hereto and incorporated herein by reference.

 

20. Advice
of Attorney and Tax Advisor. Employee acknowledges that: (i)
the Company has advised Employee to consult with an attorney and/or
tax advisor of Employee’s choosing (and at Employee’s
own cost and expense) before executing this Release, and (ii)
Employee is not relying upon the Company for, and the Company has
not provided, legal or tax advice to Employee in connection with
this Release. It is the responsibility of Employee to seek
independent tax and legal advice with regard to the tax treatment
of this Release and the payments and benefits that may be made or
provided under this Release and any other related matters. Employee
acknowledges that Employee has had a reasonable opportunity to seek
and consider advice from Employee’s attorney and tax
advisors.

 

 

PLEASE
READ CAREFULLY. THIS RELEASE INCLUDES A GENERAL RELEASE OF ALL
CLAIMS, KNOWN AND UNKNOWN. YOU MAY NOT MAKE ANY CHANGES TO THE
TERMS OF THIS RELEASE THAT ARE NOT AGREED UPON BY THE COMPANY IN
WRITING. ANY CHANGES SHALL CONSTITUTE A REJECTION OF THIS RELEASE
BY EMPLOYEE.

 

 

	

Dated:                      

	
 ___________________________________

	
 

	
 Sara
Partin

	
 

	
 

	
Dated:  

	
 AutoWeb
Inc.

	
 

	
 

	
 

	
 By:
________________________________

	
 

	
 Glenn E.
Fuller

	
 

	
 Executive Vice
President, Chief Legal and

	
 

	
 Administrative
Officer and Secretary  

 

 

 

         

 

A-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]