Document:

ex10-14

 

Exhibit 10.14

 

AUTOWEB, INC.

 

Inducement Stock Option Award Agreement

 

(Non-Qualified Stock Options)

 

 

THESE OPTIONS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (“SECURITIES ACT”), OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND OTHER APPLICABLE STATE
SECURITIES LAWS WITH RESPECT TO SUCH SECURITY IS THEN IN EFFECT, OR
SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER APPLICABLE
SECURITIES LAWS IS NOT REQUIRED DUE TO AVAILABLE EXEMPTIONS FROM
SUCH REGISTRATION. SHOULD THERE BE ANY REASONABLE UNCERTAINTY OR
GOOD FAITH DISAGREEMENT BETWEEN THE COMPANY AND OPTIONEE AS TO THE
AVAILABILITY OF SUCH EXEMPTIONS, THEN OPTIONEE SHALL BE REQUIRED TO
DELIVER TO THE COMPANY AN OPINION OF COUNSEL (SKILLED IN
SECURITIES MATTERS, SELECTED BY OPTIONEE AND REASONABLY
SATISFACTORY TO THE COMPANY) IN FORM AND SUBSTANCE
SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH AN AVAILABLE
EXEMPTION UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES
LAWS.

 

This
Inducement Stock Option Award Agreement (“Agreement”) is entered into
effective as of the Grant Date set forth on the signature page to
this Agreement (“Grant
Date”) by and between AutoWeb, Inc., a Delaware
corporation (“Company”), and the person set
forth as Optionee on the signature page hereto (“Optionee”).

 

Optionee has not
previously been an employee or director of the Company. The Company
has determined to offer employment to Optionee, and as an
inducement material to Optionee’s decision to accept such
employment offer, the Company determined to grant Optionee the
Options (as defined herein) under the terms and conditions set
forth herein.

 

This
Agreement and the stock options granted hereby have not been
granted pursuant to The AutoWeb, Inc. 2018 Equity Incentive Plan
(“Plan”), but
certain capitalized terms identified herein and not defined herein
shall have the same meanings as defined in the Plan.

 

1. Grant of
Options. The Company hereby grants to Optionee non-qualified
stock options (“Options”) to purchase the number
of shares of common stock of the Company, par value $0.001 per
share, set forth on the signature page to this Agreement
(“Shares”), at
the exercise price per Share set forth on the signature page to
this Agreement (“Exercise
Price”). The Options are not intended to qualify as
incentive stock options under Section 422 of the Code (as such term
is defined in the Plan).

 

2. Term of
Options. Unless the Options terminate earlier pursuant to
the provisions of this Agreement, the Options shall expire on the
seventh (7th) anniversary of the
Grant Date (“Option
Expiration Date”).

 

3. Vesting. The
Options shall become vested and exercisable in accordance with the
vesting schedule set forth on the signature page to this Agreement
(“Vesting
Schedule”). No installments of the Options shall vest
after Optionee’s termination of employment for any
reason.

 

 

	
 

	

 

-1-

 

 

 

4. Exercise of
Options.

 

(a)           Manner
of Exercise. To the extent vested, the Options may be
exercised, in whole or in part, by delivering written notice to the
Company in accordance with Section 7(f) of this Agreement in such
form as the Company may require from time to time, or at the
direction of the Company, through the procedures established with
the Company’s third-party option administration service. Such
notice shall specify the number of Shares subject to the Options
that are being exercised and shall be accompanied by full payment
of the Exercise Price of such Shares in a manner permitted under
the terms of Section 5.5 of the Plan (as if these Options had been
granted under the Plan) (including same day sales through a
broker), except that payment in whole or in part in a manner set
forth in clauses (ii), (iii) or (iv) of Section 5.5(b) of the Plan
(as if these Options had been granted under the Plan), may only be
made with the consent of the Committee (as such term is defined in
the Plan). The Options may be exercised only in multiples of whole
Shares, and no fractional Shares shall be issued.

 

(b)           Issuance
of Shares. Upon exercise of the Options and payment of the
Exercise Price for the Shares as to which the Options are exercised
and satisfaction of all applicable tax withholding requirements,
the Company shall issue to Optionee the applicable number of Shares
in the form of fully paid and nonassessable Shares.

 

(c)           Withholding.
No Shares will be issued on exercise of the Options unless and
until Optionee pays to the Company or makes satisfactory
arrangements with the Company for payment of, any federal, state,
local or foreign taxes required by law to be withheld in respect of
the exercise of the Options. Optionee may remit withholding payment
following Option exercise through the use of broker assisted Option
exercise. Optionee hereby agrees that the Company may withhold from
Optionee’s wages or other remuneration the applicable taxes.
At the discretion of the Company, the applicable taxes may be
withheld in kind from the Shares otherwise deliverable to Optionee
on exercise of the Options, up to Optionee’s minimum required
withholding rate or such other rate determined by the Committee
that will not trigger a negative accounting impact.

 

(d)           

Compliance with
Securities Trading Policy. Shares issued upon exercise of the
Options may only be sold, pledged or otherwise transferred in
compliance with the Company’s securities trading policies
generally applicable to officers, directors or employees of the
Company as long as Optionee is subject to such securities trading
policy.

 

(e)           Limitation
on Number of Resales or Transfers of Shares. The number of
Shares that may be resold or transferred to the public or through
any public securities trading market at any time may not exceed (i)
for any one sale or transfer order, twenty-five percent (25%) of
the Average Daily Volume; and (ii) for all sales or transfer volume
in any calendar week, twenty-five percent (25%) of the Weekly
Volume. For purposes of this Section 4(e), (i) “Average Daily Volume” will be
determined once at the beginning of each calendar quarter for
application during such quarter based on an averaging of the daily
volume of sales of Company Common Stock as reported by The NASDAQ
Capital Market (provided that if the Company’s Common Stock
is not then listed on The NASDAQ Capital Market, as reported by
such trading market on which the Common Stock is traded) for each
trading day over the 90-trading day period preceding such
determination; and (ii) “Average Weekly Volume” is
calculated by multiplying the Average Daily Volume by the number of
trading days in the calendar week preceding the proposed sale or
transfer of Shares.

 

5. Option
Termination and Other Provisions.

 

(a)           Termination
Upon Expiration of Option Term. The Options shall terminate
and expire in their entirety on the Option Expiration Date. In no
event may Optionee exercise the Options after the Option Expiration
Date, even if the application of another provision of this Section
5 may result in an extension of the exercise period for the Options
beyond the Option Expiration Date.

 

(b)           Termination
of Employment.

 

(i)           Termination
of Employment Other Than Due to Death, Disability or
Cause.

 

 (1)           Optionee
may exercise the vested portion of the Options for a period of
ninety (90) days (but in no event later than the Option Expiration
Date) following any termination of Optionee’s employment with
Company, either by Optionee or Company, other than in the event of
a termination of Optionee’s employment by Company for Cause
(as defined below), voluntary termination by Optionee without Good
Reason (as defined below) or by reason of Optionee’s death or
Disability (as defined below). In the event the termination of
Optionee’s employment is by Company without Cause or by
Optionee for Good Reason, any unvested portion of the Options shall
become immediately and fully vested as of the date of such
termination.

 

	
	

 

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(2)           In
the event of a voluntary termination of employment with the Company
by Optionee without Good Reason, (i) unvested Options as of the
date of termination shall immediately terminate in their entirety
and shall thereafter not be exercisable to any extent whatsoever;
and (ii) Optionee may exercise any portion of the Options that are
vested as of the date of termination for a period of ninety (90)
days (but in no event later than the Option Expiration Date)
following the date of termination.

 

(3)           To
the extent Optionee is not entitled to exercise the Options at the
date of termination of employment, or if Optionee does not exercise
the Options within the time specified in the Plan or this Agreement
for post-termination of employment exercises of the Options, the
Options shall terminate.

 

(4)           For
purposes of this Agreement, the terms “Cause” and “Good Reason” shall have the meanings ascribed
to them in that certain Severance Benefits Agreement listed on the
signature page to this Agreement by and between Company and
Optionee (“Severance
Agreement”).

 

(ii)           Termination
of Employment for Cause. Upon the termination of
Optionee’s employment by the Company for Cause, unless the
Options have been earlier terminated, the Options (whether vested
or not) shall immediately terminate in their entirety and shall
thereafter not be exercisable to any extent whatsoever; provided
that the Company, in its discretion, may, by written notice to
Optionee given as of the date of termination, authorize Optionee to
exercise any vested portion of the Options for a period of up to
thirty (30) days following Optionee’s termination of
employment for Cause, provided that in no event may Optionee
exercise the Options beyond the Option Expiration
Date. 

 
(iii)           Termination
of Optionee’s Employment By Reason of Optionee’s
Death. In the event Optionee’s employment is
terminated by reason of Optionee’s death, the Options, to the
extent vested as of the date of termination, may be exercised at
any time within twelve (12) months following the date of
termination (but in no event later than the Option Expiration Date)
by Optionee’s executor or personal representative or the
person to whom the Options shall have been transferred by will or
the laws of descent and distribution, but only to the extent
Optionee could exercise the Options at the date of
termination.

 

 
(iv)           Termination
of Optionee’s Employment By Reason of Optionee’s
Disability. In the event that Optionee ceases to be an
employee by reason of Optionee’s Disability, unless the
Options have been earlier terminated, Optionee (or Optionee’s
attorney-in-fact, conservator or other representative on behalf of
Optionee) may, but only within twelve (12) months from the date of
such termination of employment (but in no event later than the
Option Expiration Date), exercise the Options to the extent
Optionee was otherwise entitled to exercise the Options at the date
of such termination of employment. For purposes of this Agreement,
“Disability”
shall mean Optionee’s becoming “permanently and totally
disabled” within the meaning of Section 22(e)(3) of the Code
or as otherwise determined by the Committee in its discretion. The
Committee may require such proof of Disability as the Committee in
its sole and absolute discretion deems appropriate, and the
Committee’s determination as to whether Optionee has incurred
a Disability shall be final and binding on all parties
concerned.

 

(c)           Change
in Control. In the event of a Change in Control, the effect
of the Change in Control on the Options shall be determined by the
applicable provisions of the Plan (including, without limitation,
Article 10 of the Plan) (as if the Options had been granted under
the Plan), provided that (i) to the extent the Options are assumed
or substituted by the successor company in connection with the
Change in Control (or the Options are continued by Company if it is
the ultimate parent entity after the Change in Control), the
Options will vest and become fully exercisable in accordance with
clause (i) of Section 10.2(a) of the Plan (as if the Options had
been granted under the Plan), if within twenty-four (24) months
following the date of the Change in Control Optionee’s
employment is terminated by Company or a Subsidiary (or the
successor company or a subsidiary or parent thereof) without Cause
or by Optionee for Good Reason, and any vested Options (either
vested prior to the Change in Control or accelerated by reason of
this Section 5(c)) may be exercised for a period of twenty-four
(24) months after the date of such termination of employment (but
in no event later than the Option Expiration Date); and (ii) any
portion of the Options which vests and becomes exercisable pursuant
to Section 10.2(b) of the Plan (as if the Options had been granted
under the Plan), as a result of such Change in Control will (1)
vest and become exercisable on the day prior to the date of the
Change in Control if Optionee is then employed by the Company or a
Subsidiary and (2) terminate on the date of the Change in Control.
For purposes of Section 10.2(a) of the Plan, the Options shall not
be deemed assumed or substituted by a successor company (or
continued by Company if it is the ultimate parent entity after the
Change in Control) if the Options are not assumed, substituted or
continued with equity securities of the successor company or
Company, as applicable, that are publicly-traded and listed on an
exchange in the United States and that have voting, dividend and
other rights, preferences and privileges substantially equivalent
to the Shares. If the Options are not deemed assumed, substituted
or continued for purposes of Section 10.2(a) of the Plan, the
Options shall be deemed not assumed, substituted or continued and
governed by Section 10.2(b) of the Plan. Notwithstanding the
foregoing, if on the date of the Change in Control the Fair Market
Value of one Share is less than the Exercise Price per Share, then
the Options shall terminate as of the date of the Change in Control
except as otherwise determined by the Committee.

 

	
	

 

-3-

 

 

 

(d)           Extension
of Exercise Period. Notwithstanding any provisions of this
Section 5 to the contrary, if following termination of employment
or service the exercise of the Options or, if in conjunction with
the exercise of the Options, the sale of the Shares acquired on
exercise of the Options, during the post-termination of service
time period set forth in the paragraph of this Section 5 applicable
to the reason for termination of service would, in the
determination of the Company, violate any applicable federal or
state securities laws, rules, regulations or orders (or any Company
policy related thereto), including its securities trading policy),
the running of the applicable period to exercise the Options shall
be tolled for the number of days during the period that the
exercise of the Options or sale of the Shares acquired on exercise
would in the Company’s determination constitute such a
violation; provided,
however, that in no event shall the exercisability of the
Options be extended beyond the Option Expiration Date.

 

(e)           Adjustments.
The number of Options may be subject to adjustment as provided in
Section 11.2 of the Plan (as if the Options had been granted under
the Plan).

 

(f)           Other
Governing Agreements or Plans. To the extent not prohibited
by the Plan, the provisions of this Section 5 regarding the
acceleration of vesting of Options and the extension of the
exercise period for Options following a Change in Control or a
termination of Optionee’s employment with Company shall be
superseded and governed by the provisions, if any, of a written
employment or severance agreement between Optionee and Company or a
severance plan of Company covering Optionee, including a change in
control severance agreement or plan, to the extent such a provision
(i) is specifically applicable to option awards or grants made to
Optionee and (ii) provides for the acceleration of Options vesting
or for a longer extension period for the exercise of the Options in
the case of a Change in Control or a particular event of
termination of Optionee’s employment with Company (e.g., an
event of termination governed by Section 5(b)(i)) to this Agreement
than is provided in the provision of this Section 5 applicable to a
Change in Control or to the same event of employment termination;
provided, however, that in
no event shall the exercisability of the Options be extended beyond
the Option Expiration Date.

 

(g)           Forfeiture
upon Engaging in Detrimental Activities.  If, at any
time within the twelve (12) months after (i) Optionee exercises any
portion of the Options; or (ii) the effective date of any
termination of Optionee’s employment by the Company or by
Optionee for any reason, Optionee engages in, or is determined by
the Committee in its sole discretion to have engaged in, any (i)
material breach of any non-competition, non-solicitation,
non-disclosure or settlement or release covenant or agreement with
the Company or any Subsidiary; (ii) activities during the course of
Optionee’s employment with the Company or any Subsidiary
constituting fraud, embezzlement, theft or dishonesty; or (iii)
activity that is otherwise in conflict with. or adverse or
detrimental to the interests of the Company or any Subsidiary, then
(x) the Options shall terminate effective as of the date on which
Optionee engaged in or engages in that activity or conduct, unless
terminated sooner pursuant to the provisions of this Agreement, and
(y) the amount of any gain realized by Optionee from exercising all
or a portion of the Options at any time following the date that
Optionee engaged in any such activity or conduct, as determined as
of the time of exercise, shall be forfeited by Optionee and shall
be paid by Optionee to the Company, and recoverable by the Company,
within sixty (60) days following such termination date of the
Options.  For purposes of the foregoing, the following will be
deemed to be activities in conflict with or adverse or detrimental
to the interests of the Company or any Subsidiary: (i)
Optionee’s conviction of, or pleading guilty or nolo
contendre to any misdemeanor involving moral turpitude or any
felony, the underlying events of which related to Optionee’s
employment with the Company; (ii) knowingly engaged or aided in any
act or transaction by the Company or a Subsidiary that results in
the imposition of criminal, civil or administrative penalties
against the Company or any Subsidiary; or (iii) misconduct during
the course of Optionee’s employment by the Company or any
Subsidiary that results in an accounting restatement by the Company
due to material noncompliance with any financial reporting
requirement under applicable securities laws, whether such
restatement occurs during or after Optionee’s employment by
the Company or any Subsidiary.

 

(h)           Reservation
of Committee Discretion to Accelerate Option Vesting and Extend
Option Exercise Window. The Committee reserves the right, in
its sole and absolute discretion, to accelerate the vesting of the
Options and to extend the exercise window for Options that have
vested (either in accordance with the terms of this Agreement or by
discretionary acceleration by the Committee) under circumstances
not otherwise covered by the foregoing provisions of this Section
5; provided that in no event may the Committee extend the exercise
period for Options beyond the Option Expiration Date. The Committee
is under no obligation to exercise any such discretion and may or
may not exercise such discretion on a case-by-case
basis.

 

6.

Non-Registered Option and Shares.

 

(a)           Optionee
hereby acknowledges that the Options and any Shares that may be
acquired upon exercise of the Options pursuant hereto are, as of
the date hereof, not registered: (i) under the Securities Act, on
the ground that the issuance of the Options and the underlying
shares is exempt from registration under Section 4(2) of the
Securities Act as not involving any public offering or, with
respect to Options, because the grant of the Options alone may not
constitute an offer or sale of a security under the Securities Act
until such time as the Options are exercised or exercisable or (ii)
under any applicable state securities law because the grant of the
Options does not involve any public offering or is otherwise exempt
under applicable state securities laws, and (iii) that the
Company’s reliance on the Section 4(2) exemption of the
Securities Act and under applicable state securities laws is
predicated in part on the representations hereby made to the
Company by Optionee. Optionee represents and warrants that Optionee
is acquiring the Options and will acquire the Shares for investment
for Optionee’s own account, with no present intention of
reselling or otherwise distributing the same.

 

	
 

	

 

-4-

 

 

 

(b)           If,
at the time of issuance of shares upon exercise of the Options, no
registration statement is in effect with respect to such shares
under applicable provisions of the Securities Act and other
applicable securities laws, Optionee hereby agrees that Optionee
will not sell, transfer, offer, pledge or hypothecate all or any
part of the shares unless and until Optionee shall first have given
notice to the Company describing such sale, transfer, offer, pledge
or hypothecation and there shall be available exemptions from such
registration requirements that exist. Should there be any
reasonable uncertainty or good faith disagreement between the
Company and Optionee as to the availability of such exemptions,
then Optionee shall be required to deliver to the Company (1) an
opinion of counsel (skilled in securities matters, selected by
Optionee and reasonably satisfactory to the Company) in form and
substance satisfactory to the Company to the effect that such
offer, sale, transfer, pledge or hypothecation is in compliance
with an available exemption under the Securities Act and other
applicable securities laws, or (2) an interpretative letter from
the Securities and Exchange Commission to the effect that no
enforcement action will be recommended if the proposed offer, sale,
transfer, pledge or hypothecation is made without registration
under the Securities Act. The Company may at its election require
that Optionee provide the Company with written reconfirmation of
Optionee’s investment intent as set forth in Section 6(a)
with respect to the shares. The shares issued upon exercise of the
Options shall bear a legend reading substantially as
follows:

 

“THESE SHARES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (“SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER
APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO SUCH SECURITY IS
THEN IN EFFECT, OR SUCH REGISTRATION UNDER THE SECURITIES ACT AND
OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED DUE TO AVAILABLE
EXEMPTIONS FROM SUCH REGISTRATION. SHOULD THERE BE ANY REASONABLE
UNCERTAINTY OR GOOD FAITH DISAGREEMENT BETWEEN THE COMPANY AND
OPTIONEE AS TO THE AVAILABILITY OF SUCH EXEMPTIONS, THEN OPTIONEE
SHALL BE REQUIRED TO DELIVER TO THE COMPANY AN OPINION OF COUNSEL
(SKILLED IN SECURITIES MATTERS, SELECTED BY OPTIONEE AND REASONABLY
SATISFACTORY TO THE COMPANY) IN FORM AND SUBSTANCE SATISFACTORY TO
THE COMPANY THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION UNDER
THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES
LAWS.”

 

(c)           The
exercise of the Option and the issuance of the Shares upon such
exercise shall be subject to compliance by the Company and Optionee
with all applicable requirements of law, rules, regulations or
orders relating thereto and with all applicable rules and
regulations of any stock exchange or securities trading market on
which the Shares may be listed for trading at the end of such
exercise and issuance.

 

(d)           The
inability of the Company to obtain approval from any regulatory
body having authority deemed by the Company to be necessary to the
lawful issuance and sale of any Shares pursuant to the Options
shall relieve the Company of any liability with respect to the
nonissuance or sale of the Shares as to which such approval shall
not have been obtained. However, the Company shall use its best
efforts to obtain all such applicable approvals.

 

7.

Miscellaneous.

 

(a)           No
Rights of Stockholder. Optionee shall not have any of the
rights of a stockholder with respect to the Shares subject to this
Agreement until such Shares have been issued upon the due exercise
of the Options.

 

(b)           Nontransferability
of Options. The Options shall be nontransferable or
assignable except to the extent expressly provided in the Plan (as
if the Options had been granted under the Plan). Notwithstanding
the foregoing, Optionee may by delivering written notice to the
Company in a form provided by or otherwise satisfactory to the
Company, designate a third party who, in the event of
Optionee’s death, shall thereafter be entitled to exercise
the Options. This Agreement is not
intended to confer upon any person other than the parties hereto
any rights or remedies hereunder.

 

 

 

	
 

	

 

-5-

 

 

 

(c)           Severability.
If any provision of this Agreement shall be held unlawful or
otherwise invalid or unenforceable in whole or in part by a court
of competent jurisdiction, such provision shall (i) be deemed
limited to the extent that such court of competent jurisdiction
deems it lawful, valid and/or enforceable and as so limited shall
remain in full force and effect, and (ii) not affect any other
provision of this Agreement or part thereof, each of which shall
remain in full force and effect.

 

(d)           Governing
Law, Jurisdiction and Venue. This Agreement shall be
governed by and interpreted in accordance with the laws of the
State of Delaware other than its conflict of laws principles. The
parties agree that in the event that any suit or proceeding is
brought in connection with this Agreement, such suit or proceeding
shall be brought in the state or federal courts located in New
Castle County, Delaware, and the parties shall submit to the
exclusive jurisdiction of such courts and waive any and all
jurisdictional, venue and inconvenient forum objections to such
courts.

 

(e)           Headings.
The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this
Agreement.

 

(f)           Notices.
All notices required or permitted under this Agreement shall be in
writing and shall be sufficiently made or given if hand delivered
or mailed by registered or certified mail, postage prepaid. Notice
by mail shall be deemed delivered on the date on which it is
postmarked.

 

Notices
to the Company should be addressed to:

 

AutoWeb,
Inc.

6410
Oak Canyon, Suite 250

Irvine,
CA 92618

Attention: Chief
Legal Officer

 

Notices
to Optionee should be addressed to Optionee at Optionee’s
address as it appears on the Company’s records.

 

The
Company or Optionee may by writing to the other party designate a
different address for notices. If the receiving party consents in
advance, notice may be transmitted and received via telecopy or via
such other electronic transmission mechanism as may be available to
the parties. Such notices shall be deemed delivered when
received.

 

(g)           Agreement
Not an Employment Contract. This Agreement is not an
employment or service contract, and nothing in this Agreement or in
the granting of the Options shall be deemed to create in any way
whatsoever any obligation on Optionee’s part to continue as
an employee of the Company or any Subsidiary or on the part of the
Company or any Subsidiary to continue Optionee’s employment
or service as an employee.

 

(h)           Counterparts.
This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original Agreement but all of which, taken
together, shall constitute one and the same Agreement binding on
the parties hereto. The signature of any party hereto to any
counterpart hereof shall be deemed a signature to, and may be
appended to, any other counterpart hereof.

 

(i)           Administration.
The Committee shall have the power to interpret this Agreement and
to adopt such rules for the administration, interpretation and
application of this Agreement as are consistent with this Agreement
and to interpret or revoke any such rules. All actions taken and
all interpretations and determinations made by the Committee
(including determinations as to the calculation, satisfaction or
achievement of performance-based vesting requirements, if any, to
which the Options are subject) shall be final and binding upon
Optionee, the Company and all other interested persons. No member
of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to
this Agreement.

 

(j)           Policies
and Procedures. Optionee agrees that Company may impose, and
Optionee agrees to be bound by, Company policies and procedures
with respect to the ownership, timing and manner of resales of
shares of Company's securities, including without limitation, (i)
restrictions on insider trading; (ii) restrictions designed to
delay and/or coordinate the timing and manner of sales by officers,
directors and affiliates of the Company following a public offering
of the Company's securities; (iii) stock ownership or holding
requirements applicable to officers and/or directors of Company;
and (iv) the required use of a specified brokerage firm for such
resales.

 

(k)           Entire
Agreement; Modification. This Agreement contains the entire
agreement between the parties with respect to the subject matter
contained herein and may not be modified except as provided herein
or in a written document signed by each of the parties hereto and
may be rescinded only by a written agreement signed by both
parties.

 

 

 

 

 

Remainder of Page Intentionally Left Blank; Signature Page
Follows

 

	
 

	

 

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IN
WITNESS WHEREOF, the parties have executed this Agreement effective
as of the Grant Date.

 

 

Grant
Date: November 30,
2020                                           

 

Total Options
Awarded: 120,000                                           

 

Exercise Price Per
Share: $3.22                               

 

Severance Benefits
Agreement:Severance
Benefits Agreement dated November 30, 2020

 

Vesting
Schedule: 
(i) thirty-three and one-third percent (33 1/3%)
of the Options (adjusted to avoid the vesting of fractional
options) shall vest and become exercisable on the first anniversary
of the Grant Date; and (ii) one thirty-sixth (1/36th) of the
Options (adjusted monthly to avoid the vesting of fractional
options in any month) shall vest and become exercisable on each
successive monthly anniversary of the Grant Date thereafter for the
following twenty-four (24) months, ending on the third anniversary
of the Grant Date.

 

	
“Company”

	
 AutoWeb, Inc., a
Delaware corporation

	
   

	
 

 

By: /s/ Glenn E.
Fuller 

Glenn
E. Fuller

Executive Vice
President, Chief Legal Officer and Secretary

	
   

	

	
“Optionee” 

	

	
   

	

 

 

By:
/s/ Michael A.
Sadowski 

       Michael
A. Sadowski

 

 

 

 

 

 

 

 

 

	
 

	

 

-7-thirdamendmenttocreditag

    THIRD AMENDMENT TO CREDIT AGREEMENT    THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of  March 5, 2021 is by and among CINER WYOMING LLC, a Delaware limited liability company (the  “Borrower”), the Guarantors from time to time party hereto (together with the Borrower, the “Loan  Parties”), the Lenders identified on the signature pages hereto and PNC BANK, NATIONAL  ASSOCIATION, as Administrative Agent.    W I T N E S S E T H    WHEREAS, the Loan Parties entered into that certain Credit Agreement dated as of August 1,  2017 (as amended by that certain First Amendment to Credit Agreement dated as of February 28, 2020,  that certain Second Amendment to Credit Agreement dated as of July 27, 2020, and as further amended,  modified, supplemented, increased and extended from time to time, the “Credit Agreement”), with the  Lenders from time to time party thereto and PNC Bank, National Association, as Administrative Agent,  Swing Line Lender and L/C Issuer.    WHEREAS, the Loan Parties have requested certain modifications to the Credit Agreement and  the Lenders, by action of the Required Lenders, have agreed to the requested modifications on the terms  and conditions set forth herein.    NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as  follows:    1. Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the  meanings provided to such terms in the Credit Agreement.    2. Amendments.    (a) Each reference to “Guaranteed Cash Management Agreement”, “Guaranteed Hedge  Agreement”, and “Guaranteed Party Designation Notice” shall be replaced with “Secured Cash  Management Agreement”, “Secured Hedge Agreement,” and “Secured Party Designation Notice,”  respectively.    (b) The definitions of “Collateral Grant Date” and “Collateral Release Date” in Section 1.01  of the Credit Agreement are hereby deleted.    (c) The definition of “Change of Control” in Section 1.01 of the Credit Agreement is hereby  amended by replacing the text “means an event or series of events by which” with the text “means an  event or series of events, except such event or series of events initiated solely as a result of any  foreclosure event arising as a direct result of an Event of Default (as such term is defined in the Existing  WE Soda Facility) of the Existing WE Soda Facility irrespective of when such Event of Default or action,  omission, event or circumstances that led thereto arises or arose, by which”.     (d) The definition of “Collateral Documents” in Section 1.01 of the Credit Agreement is  hereby amended and related in its entirety to read as follows:      “Collateral Documents” means a collective reference to the Security Agreement, each of  the collateral assignments, pledge agreements, account control agreements or other similar  

 

CHAR1\1784279v5  agreements delivered by any Loan Party pursuant to the terms of Section 7.14, the Third  Amendment, or any of the other Loan Documents.    (e) The definition of Excluded Property in Section 1.01 of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    “Excluded Property” means, with respect to any Loan Party, (a) any owned or leased real  property, (b) unless reasonably requested by the Administrative Agent or the Required Lenders,  any IP Rights for which a perfected Lien thereon is not effected either by filing of a Uniform  Commercial Code financing statement or by appropriate evidence of such Lien being filed in  either the United States Copyright Office or the United States Patent and Trademark Office, (c)  unless reasonably requested by the Administrative Agent or the Required Lenders, any personal  property (other than personal property described in clause (b) above) for which the attachment or  perfection of a Lien thereon is not governed by the Uniform Commercial Code, (d) the Equity  Interests of any Foreign Subsidiary to the extent not required to be pledged to secure the  Obligations pursuant to Section 7.14(a), (e) any property which, subject to the terms of Section  8.03(e), is subject to a Lien of the type described in Section 8.01(i) to the extent the document  providing such Lien prohibits such Loan Party from granting any other Liens in such property, (f)  any lease, license, contract, property right or agreement to which any Loan Party is a party or any  of its rights or interests thereunder if and only for so long as the grant of a Lien in any such lease,  license, contract, property right or agreement will (i) violate any law, rule or regulation applicable  to such Loan Party, (ii) result in or will constitute a breach, termination, or default under any such  lease, license, contract, property right or agreement, (iii) result in or will constitute the  abandonment, invalidation or enforceability of any right, title or interest of such Loan Party in  any such lease, license, contract, property right or agreement, or (iv) requires any third-party  consent not obtained by such Loan Party under any such lease, license, contract, property right or  agreement except (A) in the case of clauses (i) through (iv), other than to the extent that any such  term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the  applicable UCC or any other applicable Law or principles of equity and (B) the foregoing  exclusions with respect to  this clause (f) shall not apply to (1) monies due or to become due to a  Loan Party in respect of such lease, license, contract, property right or agreement, or (2) any and  all proceeds from the sale, transfer, assignment, license, lease or other dispositions of such lease,  license, contract, property right or agreement; (g) deposit accounts maintained solely for the  purpose of funding payroll, payroll taxes, withholding tax, employee wage and benefit payments  and other tax and employee fiduciary accounts, (h) trust accounts maintained solely on behalf of a  Loan Party’s customers in the ordinary course of business; (i) any trademark application of a  Loan Party filed with the United States Patent and Trademark Office on an “intent-to-use” basis,  until such time as a statement of use is filed with and duly accepted by the United States Patent  and Trademark Office (only to the extent that, and solely during the period in which, the grant of  a security interest therein would impair the validity or enforceability of such intent-to-use  trademark applications under applicable federal law); and (j) any assets for which the  Administrative Agent determines that (i) the costs of obtaining a security interest is excessive in  relation to the value of the security to be afforded thereby or (ii) obtaining such security interest is  not commercially practicable.    (f) The following definitions are hereby added to Section 1.01 of the Credit Agreement in  appropriate alphabetical order:     “Existing WE Soda Facility” means that certain Facilities Agreement originally dated as  of August 1, 2018 by and among Ciner Enterprises Inc., a Delaware corporation, and WE Soda  Ltd., a U.K. corporation, as borrowers, Lucid Agency Services Limited, as agent, and the lenders  

 

CHAR1\1784279v5  from time to time party thereto, as amended pursuant to that certain  Amendment Letter dated as  of August 6, 2018, as further amended and restated pursuant to the 2020 Amendment and  Restatement Agreement, as further amended pursuant to a Consent Letter dated November 10,  2020, as further amended and restated pursuant to the 2021 Amendment and Restatement  Agreement, and as m ay be further amended, modified or restated from time to time.    “Security Agreement” means the security and pledge agreement executed by each of the  Loan Parties in favor of the Administrative Agent, for the benefit of the holders of the  Obligations, in connection with the Third Amendment.    “Third Amendment” means that certain Third Amendment to Credit Agreement dated as  of the Third Amendment Effective Date by and among the Borrower, the Guarantors party  thereto, the Lenders party thereto, and the Administrative Agent.     “Third Amendment Compliance Period” means the period commencing thirty (30) days  after the Third Amendment Effective Date (or such later date as the Administrative Agent may  agree in its sole discretion).    “Third Amendment Effective Date” means March 5, 2021.    (g) Section 4.05 of the Credit Agreement is hereby amended by adding the following text  after immediately after the last sentence thereto:    “The Guarantors acknowledge and agree that their obligations hereunder are secured in  accordance with the terms of the Collateral Documents and that the holders of the Obligations  may exercise their remedies thereunder in accordance with the terms thereof.”    (h) Section 6.03(ii) of the Credit Agreement is hereby amended by replacing the text “after  any Collateral Grant Date and prior to any Collateral Release Date” with “after the Third Amendment  Compliance Period,”.    (i) Section 6.26 of the Credit Agreement is hereby amended by replacing the text “At all  times after any Collateral Grant Date and prior to any Collateral Release Date” with “At all times after the  Third Amendment Compliance Period”.    (j) Section 7.07(b) of the Credit Agreement is hereby amended by (i) replacing the text  “Promptly after any Collateral Grant Date and prior to any Collateral Release Date” with “At all times  after the Third Amendment Compliance Period”, (ii) deleting the text “altered or” in the eighth line  thereof,  and (iii) deleting the last sentence thereto.    (k) Section 7.14 of the Credit Agreement is hereby deleted and replaced with the following:      “Section 7.14 Pledged Assets.    (a) Equity Interests.  At all times after the Third Amendment Compliance Period,  within forty-five (45) days (or such later date as the Administrative Agent may agree in its sole  discretion) after any Person becomes a Subsidiary of any Loan Party, cause (i) 100% of the issued  and outstanding Equity Interests of each Domestic Subsidiary of any Loan Party and (ii) 66% of  the issued and outstanding Equity Interests in each Subsidiary of a Loan Party that is (x) a  “controlled foreign corporation” under Section 957 of the Internal Revenue Code (each, a “First- Tier Foreign Subsidiary”) or (y) a disregarded entity substantially all of the assets of which  

 

CHAR1\1784279v5  consist (directly or indirectly through one or more other disregarded entities) of Equity Interests  of one or more Subsidiaries of a Loan Party that are “controlled foreign corporations” under  Section 957 of the Internal Revenue Code to be subject at all times to a first priority, perfected  Lien in favor of the Administrative Agent to secure the Obligations pursuant to the Collateral  Documents, and, in connection with the foregoing, deliver to the Administrative Agent such other  customary documentation as the Administrative Agent may reasonably request including, any  filings and deliveries to perfect such Liens and customary opinions of counsel all in form and  substance reasonably satisfactory to the Administrative Agent; provided that, notwithstanding the  foregoing, none of the outstanding Equity Interests of (1) any Foreign Subsidiary that is not a  First-Tier Foreign Subsidiary or (2) any Domestic Subsidiary of a Foreign Subsidiary that is a  “controlled foreign corporation” (owned either directly or indirectly through one or more entities  that are disregarded entities or partnerships for U.S. federal income tax purposes) shall be subject  to this Section 7.14(a) or otherwise constitute Collateral.    (b)          Personal Property.  At all times after the Third Amendment Compliance Period,  within forty-five (45) days (or such later date as the Administrative Agent may agree in its sole  discretion) of the acquisition by any Loan Party of any personal property (other than Excluded  Property and Equity Interests), cause all such personal property (other than Excluded Property  and Equity Interests) of each Loan Party to be subject at all times to first priority, perfected Liens  (subject to Permitted Liens) in favor of the Administrative Agent for the benefit of the Lenders in  order to secure the Obligations and, in connection with the foregoing, deliver to the  Administrative Agent such other documentation as the Administrative Agent may request  including filings and deliveries necessary to perfect such Liens, Organization Documents,  resolutions, landlord’s waivers and customary opinions of counsel to such Person, all in form,  content and scope reasonably satisfactory to the Administrative Agent. Notwithstanding the  foregoing, no Loan Party shall be required to enter into deposit account or securities account  control agreements.    (c) Further Assurances. At any time upon request of the Administrative Agent,  promptly execute and deliver any and all further instruments and documents and take all such  other action as the Administrative Agent may reasonably deem necessary to maintain in favor of  the Administrative Agent, for the benefit of the Secured Parties, Liens and insurance rights on the  Collateral that are duly perfected in accordance with the requirements of, or the obligations of the  Loan Parties under, the Loan Documents and all applicable Laws.”  (l) Section 8.11(a) of the Credit Agreement is hereby amended and restated in its entirety to  read as follows:      (a) Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the  end of each fiscal quarter of the Borrower to be greater than the ratio set forth below:     Fiscal Quarter ending Consolidated  Leverage Ratio  September 30, 2017 - June 30, 2020 3.00:1.0  September 30, 2020 3.50:1.0  December 31, 2020 4.50:1.0  March 31, 2021 4.50:1.0  June 30, 2021 and each fiscal quarter  ending thereafter  3:00:1.0    

 

CHAR1\1784279v5    (m) Section 9.01(b)(ii) of the Credit Agreement is hereby amended by adding the text “of this  Agreement or any term, covenant or agreement contained in the Third Amendment” immediately after the  text “or Article VII”.    (n) Section 10.01 of the Credit Agreement is hereby amended by adding the following text  after the last sentence thereto:    “The Administrative Agent shall also act as the “collateral agent” under the Loan  Documents, and each of the Lenders (in its capacities as a Lender, Swing Line Lender (if  applicable), potential Hedge Banks and potential Cash Management Banks) and the L/C Issuer  hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such  Lender and the L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens on  Collateral, together with such powers and discretion as are reasonably incidental thereto.  In this  connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and  attorneys-in-fact appointed by the Administrative Agent pursuant to Section 10.05 for purposes of  holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the  Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the  Administrative Agent, shall be entitled to the benefits of all provisions of this Article X and  Article XI (including Section 11.04(c), as though such co-agents, sub-agents and attorneys-in-fact  were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect  thereto.”    (o) Section 11.01(a)(vi) of the Credit Agreement is hereby amended by replacing the text  “after the occurrence of any Collateral Grant Date and prior to any Collateral Release Date” with “after  the Third Amendment Compliance Period”.    (p) Section 11.19(a) of the Credit Agreement is hereby amended and restated in its entirety to  read as follows:     (a)  Upon the reasonable request of the Borrower, the Administrative Agent shall,  take such actions as shall be reasonably required, at the Loan Parties’ sole expense, to release (i)  its security interest in any Collateral upon termination of the Aggregate Revolving Commitments  and payment in full of all Obligations (other than (x) contingent indemnification or  reimbursement obligations for which no claim has been asserted, (y) obligations and liabilities  under Secured Cash Management Agreements and Secured Hedge Agreements as to which  arrangements reasonably satisfactory to the applicable Cash Management Bank or Hedge Bank  shall have been made and (z) Letters of Credit as to which other arrangements reasonably  satisfactory to the Administrative Agent and the L/C Issuer shall have been made or that have  been Cash Collateralized in the amount of the Minimum Collateral Amount), or (ii) (a) its  security interest in any Collateral transferred, sold or disposed of to persons other than Loan  Parties or Subsidiaries in Loan Parties in a transaction permitted under this Agreement or  approved by the Required Lenders pursuant to Section 11.01, and (b) any Guaranty hereunder or  under any Loan Document of any Person if the ownership interests in such Guarantor are  transferred, sold or disposed to persons other than Loan Parties or Subsidiaries of Loan Parties in  a transaction permitted under this Agreement, in each case to the extent necessary to permit  consummation of such  transfer, sale or disposition in accordance with the Loan Documents.  Any  representation, warranty or covenant contained in any Loan Document relating to any such  property so Disposed, transferred, sold or disposed of (other than property Disposed of to the  Borrower or any Loan Party) shall no longer be deemed to be repeated once such property is so  Disposed, transferred, sold or disposed of.  

 

CHAR1\1784279v5    3. Conditions Precedent.  This Amendment shall become effective as of the date hereof upon receipt  by the Administrative Agent of each of the items specifically listed below, all of which shall be in form  and content reasonably acceptable to the Administrative Agent:    (a) counterparts of this Amendment signed by or on behalf of each party hereto or written  evidence satisfactory to the Administrative Agent (which may include telecopy transmission of such  signed signature page) that such party has signed a counterpart of this Amendment and the other Loan  Documents to which such party is a party; and      (b) receipt by the Administrative Agent of all fees, expenses and other amounts due and  payable on or prior to date hereof, including without limitation, reimbursement or payment of all out-of- pocket expenses of the Administrative Agent and the Arranger (including reasonable fees, charges and  disbursements of counsel to the Administrative Agent and the Arranger) required to be reimbursed or paid  by the Borrower hereunder, under any other Loan Document and under any agreement with the  Administrative Agent or Arranger.    4. Post-Closing Obligations.  Within thirty (30) days of the Third Amendment Effective Date (or  such later date as the Administrative Agent may agree in its sole discretion), the Loan Parties shall deliver  to the Administrate Agent the following:    (a) searches of Uniform Commercial Code filings in the jurisdiction of formation of each  Loan Party;    (b) UCC financing statements for each appropriate jurisdiction as is required under the  Uniform Commercial Code, in the Administrative Agent’s discretion, to perfect the Administrative  Agent’s security interest in the Collateral;     (c) all certificates evidencing any certificated Equity Interests pledged to the Administrative  Agent pursuant to the Security Agreement, together with duly executed in blank, undated stock powers  attached thereto;    (d) searches of ownership of, and Liens on, United States registered intellectual property of  each Loan Party in the appropriate governmental offices;    (e) duly executed Security Agreement (now and hereafter as defined in the Credit Agreement  as amended by this Amendment);    (f) duly executed notices of grant of security interest in the form required by the Security  Agreement as are necessary, in the Administrative Agent’s discretion, to perfect the Administrative  Agent’s security interest in the United States registered intellectual property of the Loan Parties;     (g) in the case of any personal property Collateral located at a premises leased by a Loan  Party, use commercially reasonable efforts to obtain such estoppel letters, consents and waivers from the  landlords on such real property as may be reasonably required by the Administrative Agent;     (h) copies of insurance policies or certificates of insurance of the Loan Parties evidencing  liability and casualty insurance meeting the requirements set forth in the Loan Documents, including  naming the Administrative Agent and its successors and assigns as additional insured (in the case of  liability insurance) or lender’s loss payee (in the case of property insurance) on behalf of the Lenders;    

 

CHAR1\1784279v5  (i) an opinion of legal counsel to the Loan Parties (including, to the extent required, local  counsel to the Loan Parties), addressed to the Administrative Agent and each Lender, dated as of the  Third Amendment Effective Date; and    (j) all other documents, agreements, certificates and other items required pursuant to the  terms of the Security Agreement and or reasonably requested to give effect to the grant of security interest  in the personal property (other than Excluded Property) of the Loan Parties.    5. Representations and Warranties; No Default.  Each Loan Party represents and warrants to the  Administrative Agent that (a) the representations and warranties of the Loan Parties contained in the  Credit Agreement or in any other Loan Document are true and correct on and as of the date hereof, except  to the extent that such representations and warranties specifically refer to an earlier date, in which case  such representations and warranties are true and correct as of such earlier date and (b) no event which is,  or with notice or lapse of time or both would be, a Default or an Event of Default under the Credit  Agreement has occurred and is continuing.    6. Amendment is a “Loan Document”.  This Amendment shall be deemed to be, and is, a Loan  Document and all references to a “Loan Document” in the Credit Agreement and the other Loan  Documents (including, without limitation, all such references in the representations and warranties in the  Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.  7. Reaffirmation of Obligations.  Each Loan Party affirms all of its obligations under the Loan  Documents and agrees that this Amendment does not operate to reduce or discharge its obligations under  the Loan Documents.     8. No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan  Documents shall remain in full force and effect.    9. Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different  parties hereto in different counterparts), each of which shall constitute an original, but all of which when  taken together shall constitute a single contract. Delivery of an executed counterpart of this Amendment  by facsimile or other electronic imaging means shall be effective as an original.    10. Governing Law.  This Amendment shall be deemed to be a contract made under, and for all  purposes shall be construed in accordance with, the laws of the State of New York.     [Signature Pages Follow]  

 

 

 

 

 

THIRD AMENDMENT TO CREDIT AGREEMENT  CINER WYOMING LLC  BANK OF AMERICA, N.A.,  as a Lender and L/C Issuer     By:       Name: Ryan Maples  Title: Senior Vice President

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