Document:

ex4-1

 

Exhibit 4.1

 

DESCRIPTION OF SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

The following summary description of
the securities of AutoWeb, Inc., a Delaware corporation
(“Company” or
“AutoWeb”),
is not complete and is qualified in
its entirety by reference to, and should be read in conjunction
with, the Company’s Seventh Restated Certificate of
Incorporation (“Certificate of
Incorporation”), Seventh
Amended and Restated Bylaws (“Bylaws”), Tax Benefit Preservation Plan dated as
of May 26, 2010, as amended, between the Company and Computershare
Trust Company, N.A., as rights agent (“Tax Benefits Preservation
Plan”) and applicable
provisions of the Delaware General Corporation Law
(“DGCL”).

 

Authorized Capital Stock

 

The
Company’s authorized capital stock consists of 55,000,000
shares of Common Stock, $0.001 par value per share
(“Common
Stock”), and 11,445,187 shares of Preferred Stock,
$0.001 par value per share (“Preferred Stock”). Of the
11,445,187 shares of Preferred Stock authorized, the
Company’s Board of Directors (“Board”) has designated 2,000,000
shares as Series A Junior Participating Preferred Stock. $0.001 par
value per share (“Series A
Preferred Stock”). As of March 8, 2021 there were no
shares of Preferred Stock issued or outstanding.

 

Securities Registered Under the Exchange Act

 

The
Common Stock is the only security of AutoWeb registered pursuant to
Section 12 of the Securities Exchange Act of 1934, as amended
(“Exchange
Act”). The
Common Stock is listed on The NASDAQ Capital Market under the
ticker symbol “AUTO.” Computershare Trust Company, N.A.
is the transfer agent and registrar for the Common
Stock.

 

Description of Authorized Capital Stock

 

Description
of Common Stock

 

Fully Paid and Nonassessable. All of the
outstanding shares of Common Stock are fully paid and nonassessable
and are not subject to further calls or assessments by the
Company.

 

Voting Rights. The
holders of Common Stock are entitled to one vote per share of
Common Stock. Other than as provided in the Certificate of
Incorporation, the Bylaws or pursuant to applicable law, or the
rules or regulations of any stock exchange applicable to the
Company, all matters will be decided by the vote of a majority in
voting power of the shares of Common Stock present in person or by
proxy at the meeting of stockholders and entitled to vote on the
matter other than the election of directors. With respect to the
election of directors, the Bylaws provide that the persons
receiving the greatest number of votes, up to the number of
directors then to be elected, will be the persons elected. Holders
of Common Stock are not entitled to cumulative voting rights in the
election of directors.

 

Dividends. The holders of Common Stock are entitled to
receive such dividends, if any, as may be declared from time to
time by the Board in its discretion from funds legally available
therefor, subject to the rights of any holders of our Preferred
Stock to receive such dividends.

 

Liquidation Distributions. Upon liquidation, dissolution or
winding-up, the holders of Common Stock are entitled to share
ratably in any assets remaining available for distribution after
the satisfaction in full of the prior rights of creditors,
including holders of Company indebtedness, and the aggregate
liquidation preference of any Preferred Stock then
outstanding.

 

No Preemptive or Similar Rights; No Redemption or Sinking Fund
Provisions. The Common Stock has no preemptive or other
subscription rights, and there are no conversion rights or
redemption or sinking fund provisions with respect to the Common
Stock.

 

 

 

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Description
of Preferred Stock

 

Undesignated Preferred Stock.
The undesignated shares of Preferred Stock may be issued from time
to time in one or more series pursuant to a resolution or
resolutions providing for such issue duly adopted by the Board. The
Board is further authorized to determine or alter the rights,
powers (including voting powers), preferences and privileges, and
the qualifications, limitations or restrictions thereof, granted to
or imposed upon any wholly unissued series of Preferred Stock and,
to fix the number of shares of any series of Preferred Stock and,
to fix the number of shares of any series of Preferred Stock and
the designation of any such series of Preferred Stock. The Board,
within the limits and restrictions stated in any resolution or
resolutions of the Board originally fixing the number of shares
constituting any series of Preferred Stock, may increase or
decrease (but not below the number of shares in any such series
then outstanding) the number of shares of any series subsequent to
the issue of shares of that series.

 

Series A Preferred Stock. The number of shares of Series A Preferred Stock may
be increased or decreased by resolution of the
Board; provided, that no decrease shall reduce the number of
shares of Series A Preferred Stock to a number less than the number
of shares then outstanding plus the number of shares reserved for
issuance upon the exercise of outstanding options, rights or
warrants or upon the conversion of any outstanding securities
issued by the Company convertible into Series A Preferred Stock.
The following is a summary of the rights, powers, preferences and
privileges of the Series A Preferred Stock set forth in the Amended
Certificate of Designation of Series A Junior Participating
Preferred Stock (“Series A Preferred Stock
Certificate of Designation”), which is attached as Exhibit A to the
Certificate of Incorporation. 

 

Rank.
The Series A Preferred Stock ranks, with respect to the payment of
dividends and the distribution of assets, junior to all series of
any other class of the Company’s Preferred
Stock.

 

Voting. The
holders of Series A Preferred Stock are entitled to one vote per
share of Series A Preferred Stock.

 

 

                                  

Dividend
and Distribution Rights of Series A Preferred
Stock.

 

(A)           Subject
to the rights of the holders of any shares of any series of
Preferred Stock (or any similar stock) ranking prior and superior
to the Series A Preferred Stock with respect to dividends, the
holders of shares of Series A Preferred Stock, in preference to the
holders of Common Stock and of any other junior stock, shall be
entitled to receive, when, as and if declared by the Board out of
funds legally available for the purpose, quarterly dividends
payable in cash on the first day of April, July, October and
January in each year (each such date being referred to herein as a
“Quarterly Dividend Payment
Date”), commencing on the
first Quarterly Dividend Payment Date after the first issuance of a
share or fraction of a share of (a) $1.00 per share or (b) subject
to the provision for adjustment hereinafter set forth, 100 times
the aggregate per share amount of all cash dividends, and 100 times
the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions, other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares
of Common Stock (by reclassification or otherwise), declared on the
Common Stock since the immediately preceding Quarterly Dividend
Payment Date or, with respect to the first Quarterly Dividend
Payment Date, since the first issuance of any share or fraction of
a share of Series A Preferred Stock. In the event the Company shall
at any time declare or pay any dividend on the Common Stock payable
in shares of Common Stock, or effect a subdivision or combination
or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in
shares of Common Stock) into a greater or lesser number of shares
of Common Stock, then in each such case the amount to which holders
of shares of Series A Preferred Stock were entitled immediately
prior to such event under clause (b) of the preceding sentence
shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

 

(B)           The
Company shall declare a dividend or distribution on the Series A
Preferred Stock as provided in the foregoing paragraph (A)
immediately after it declares a dividend or distribution on the
Common Stock (other than a dividend payable in shares of Common
Stock); provided, that in the event no dividend or distribution
shall have been declared on the Common Stock during the period
between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $1.00 per share on
the Series A Preferred Stock shall nevertheless be payable on such
subsequent Quarterly Dividend Payment Date.

 

 

 

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(C)           Dividends
shall begin to accrue and be cumulative on outstanding shares of
Series A Preferred Stock from the Quarterly Dividend Payment Date
next preceding the date of issue of such shares, unless the date of
issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such
shares shall begin to accrue from the date of issue of such shares,
or unless the date of issue is a Quarterly Dividend Payment Date or
is a date after the record date for the determination of holders of
shares of Series A Preferred Stock entitled to receive a quarterly
dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall not bear interest. Dividends paid on the
shares of Series A Preferred Stock in an amount less than the total
amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among
all such shares at the time outstanding. The Board may fix a record
date for the determination of holders of shares of Series A
Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be not more
than 60 days prior to the date fixed for the payment
thereof.

 

Liquidation,
Dissolution or Winding Up. Upon
any liquidation, dissolution or winding up of the Company, no
distribution shall be made (1) to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Preferred Stock unless,
prior thereto, the holders of shares of Series A Preferred Stock
shall have received $100.00 per share, plus an amount equal to
accrued and unpaid dividends and distributions thereon, whether or
not declared, to the date of such payment, provided that the
holders of shares of Series A Preferred Stock shall be entitled to
receive an aggregate amount per share, subject to the provision for
adjustment hereinafter set forth, equal to 100 times the aggregate
amount to be distributed per share to holders of shares of Common
Stock, or (2) to the holders of shares of stock ranking on a parity
(either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Preferred Stock, except distributions made
ratably on the Series A Preferred Stock and all such parity stock
in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding
up. In the event the Company shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision or combination or consolidation of the
outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in
each such case the aggregate amount to which holders of shares of
Series A Preferred Stock were entitled immediately prior to such
event under the proviso in clause (1) of the preceding sentence
shall be adjusted by multiplying such amount by a fraction the
numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

 

Consolidation,
Merger. In case the Company shall enter into any
consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other
stock or securities, cash and/or any other property, then in any
such case each share of Series A Preferred Stock shall at the same
time be similarly exchanged or changed into an amount per share,
subject to the provision for adjustment hereinafter set forth,
equal to 100 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be,
into which or for which each share of Common Stock is changed or
exchanged. In the event the Company shall at any time declare or
pay any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation of
the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in
each such case the amount set forth in the preceding sentence with
respect to the exchange or change of shares of Series A Preferred
Stock shall be adjusted by multiplying such amount by a fraction,
the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding
immediately prior to such event.

 

No
Redemption. Shares of Series A
Preferred Stock are not redeemable.

 

Possible Anti-Takeover Effects Of Provisions in The Company’s
Certificate of Incorporation, Bylaws, and Tax Benefit Preservation
Plan and the DGCL

 

Provisions
of our Certificate of Incorporation and Bylaws relating to our
corporate governance and provisions in our Tax Benefit Preservation
Plan could make it difficult for a third party to acquire AutoWeb
and could discourage a third party from attempting to acquire
control of AutoWeb. The issuance of Preferred Stock could decrease
the amount of earnings and assets available for distribution to the
holders of Common Stock or could adversely affect the rights and
powers, including voting rights, of the holders of the Common
Stock. These provisions could limit the price that some investors
might be willing to pay in the future for shares of Common Stock
and may have the effect of delaying or preventing corporate actions
such as a merger, asset sale or other change in control of the
Company.

 

 

 

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Number of Directors; Classification; Filing Vacancies; Removal; No
Cumulative Voting. The Certificate of Incorporation provides
that the number of directors that will constitute the whole Board shall be designated in
the Bylaws. The Bylaws provide that the authorized number of
directors shall be eight until changed by an amendment to the
Bylaws. The Board is authorized
to adopt, alter, amend or repeal the Bylaws, including to increase
or decrease the authorized number of directors, without stockholder
approval.

 

The
terms of office of the Board of Directors is divided into three
classes. At each annual meeting of stockholders, the successors to
directors whose term will then expire will be elected to serve from
the time of election and qualification until the third annual
meeting following election. The directorships will be distributed
among the three classes so that, as nearly as possible, each class
will consist of one-third of the number of directors constituting
the whole Board of Directors. Classification of the Board may have
the effect of delaying or preventing changes in control or change
in our management because less than a majority of the number of
directors are up for election at each annual meeting.

 

Directors may be
removed only for cause by a vote of the holders of a majority of
the shares entitled to vote at an election of directors. Any
vacancy on the Board, including vacancies created by an increase in
the size of the Board, may be filled by a majority of the remaining
directors then in office, whether or not less than a quorum, or by
a sole remaining director.

 

No
stockholder is permitted to cumulate votes at any election of
directors.

 

Advance Notice Provision for Nomination of
Directors. The Bylaws provide that only persons who
are nominated in accordance with the advance notice procedures in
the Bylaws shall be eligible for election as directors of the
Company, except as may be otherwise provided in the Certificate of
Incorporation with respect to the right of holders of Preferred
Stock of the Company to nominate and elect a specified number of
directors in certain circumstances. Nominations of persons for
election to the Board may be made at any annual meeting of
stockholders or at any special meeting of stockholders called for
the purpose of electing directors, (i) if specified in the notice
of meeting (or any supplement thereto) given by or at the
discretion of the Board (or a duly authorized committee thereof),
(ii) by or at the direction of the Board (or any duly authorized
committee thereof) or (iii) by any stockholder of the Company (1)
who is a stockholder of record on the date of the giving of the
advance notice and on the record date for the determination of
stockholders entitled to vote at such meeting and (2) who complies
with the advance notice procedures set forth in the
Bylaws.

 

In
addition to any other applicable requirements, for a nomination to
be made by a stockholder, such stockholder must have given timely
notice thereof in proper written form to the Secretary of the
Company.

 

To be
timely, a stockholder’s notice to the Secretary must be
delivered to or mailed and received at the principal executive
offices of the Company (a) in the case of an annual meeting, not
less than ninety (90) days nor more than one hundred and twenty
(120) days prior to the anniversary date of the immediately
preceding annual meeting of stockholders; provided, however, that in the event that
the date of the annual meeting is more than thirty (30) days before
or more than seventy (70) days after such anniversary date, notice
by the stockholder must be so delivered not earlier than the close
of business on the one hundred twentieth (120th) day prior to such
annual meeting and not later than the close of business on the
later of the ninetieth (90th) day prior to such
annual meeting or the tenth (10th) day following the
day on which public announcement of the date of such meeting is
first made by the Company; and (b) in the case of a special meeting
of stockholders called for the purpose of electing directors, not
earlier than the close of business on the one hundred twentieth
(120th) day prior to such special meeting and not later than the
close of business on the later of the ninetieth (90th) day prior to
such special meeting or the tenth (10th) day following the day on
which public announcement is first made of the date of the special
meeting and of the nominees proposed by the Board to be elected at
such meeting.

 

 

 

-4-

 

 

 

To be
in proper written form, a stockholder’s notice to the
Secretary must set forth (a) as to each person whom the stockholder
proposes to nominate for election as a director (i) the name, age,
business address and residence address of the person; (ii) the
principal occupation or employment of the person; (iii) (A) the
class or series and number of shares of capital stock of the
Company which are owned beneficially or of record by the person,
and (B) the name of each nominee holder of shares of capital stock
of the Company owned beneficially but not of record by such person
or affiliates or associates of such person and the number of shares
held by each such nominee; (iv) a description of any agreement,
arrangement or understanding (including any derivative or short
positions, profit interests, options, warrants, stock appreciation
or similar rights, hedging transactions and borrowed or loaned
shares) that has been entered into as of or prior to, and is in
effect as of, the date of the stockholder’s notice by, or on
behalf of, such person or any affiliates or associates of such
person, the effect or intent of which is to mitigate loss to,
manage risk or benefit of share price changes for, or increase or
decrease the voting power of, such person or any affiliate or
associate of such person, with respect to shares of stock of the
Company; and (v) any other information relating to the person that
would be required to be disclosed in a proxy statement or other
filings required to be made in connection with solicitations of
proxies for election of directors pursuant to Section 14 of the
Exchange Act, and the rules and regulations promulgated thereunder;
and (b) as to the stockholder giving the notice and the beneficial
owner, if any, on whose behalf the nomination is made (i) the name
and record address of such stockholder as they appear on the
Company’s books, and of such beneficial owner; (ii) (A) the
class or series and number of shares of capital stock of the
Company which are owned beneficially or of record by such
stockholder and such beneficial owner, and (B) the name of each
nominee holder of shares of capital stock of the Company owned
beneficially but not of record by such stockholder or beneficial
owner and the number of shares held by each such nominee; (iii) a
description of all arrangements or understandings between such
stockholder and/or such beneficial owner and each proposed nominee
and any other person or persons (including their names) pursuant to
which the nomination(s) are to be made by such stockholder; (iv) a
description of any agreement, arrangement or understanding
(including any derivative or short positions, profit interests,
options, warrants, stock appreciation or similar rights, hedging
transactions and borrowed or loaned shares) that has been entered
into as of the date of the stockholder’s notice by, or on
behalf of, such stockholder and such beneficial owners, the effect
or intent of which is to mitigate loss to, manage risk or benefit
of share price changes for, or increase or decrease the voting
power of, such stockholder or such beneficial owner, with respect
to shares of stock of the Company; (v) a representation that such
stockholder is a holder of record of the stock of the Company as of
the date of the stockholder’s advance notice required by the
Bylaws and that such stockholder intends to be a holder of record
of stock of the Company on the record date for the determination of
stockholders entitled to vote at such meeting; (vii) that such
stockholder intends to appear in person or by proxy at the meeting
to nominate the persons named in its notice; (viii) a
representation whether the stockholder or the beneficial owner, if
any, intends or is part of a group which intends (1) to deliver a
proxy statement and/or form of proxy to holders of at least the
percentage of the Company’s outstanding capital stock
required to elect the nominee and/or (2) otherwise to solicit
proxies or votes from stockholders in support of such nomination;
and (ix) any other information relating to such stockholder that
would be required to be disclosed in a proxy statement or other
filings required to be made in connection with solicitations of
proxies for election of directors pursuant to and in accordance
with Section 14 of the Exchange Act and the rules and regulations
promulgated thereunder. Such notice must be accompanied by a
written consent of each proposed nominee to being named as a
nominee and to serve as a director if elected. The Company may
require any proposed nominee to furnish such other information as
it may reasonably require to determine the eligibility of such
proposed nominee to serve as a director of the
Company.

 

                       

Advance Notice Provision for Proposing Business at Stockholder
Meetings. No business may be transacted at an annual meeting
of stockholders, other than business that is either (a) specified
in the notice of meeting (or any supplement thereto) given by or at
the direction of the Board (or any duly authorized committee
thereof), (b) otherwise properly brought before the annual meeting
by or at the direction of the Board (or any duly authorized
committee thereof) or (c) otherwise properly brought before the
annual meeting by any stockholder of the Company (i) who is a
stockholder of record on the date of the giving of the advance
notice provided for in the Bylaws and on the record date for the
determination of stockholders entitled to vote at such annual
meeting and (ii) who complies with the advance notice procedures
set forth in the Bylaws.

 

In
addition to any other applicable requirements, for business to be
properly brought before an annual meeting by a stockholder, such
stockholder must have given timely notice thereof in proper written
form to the Secretary of the Company and any proposed business must
constitute a proper matter for stockholder action.

 

 

 

 

 

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To be
timely, a stockholder’s notice to the Secretary must be
delivered to or mailed and received at the principal executive
offices of the Company not less than ninety (90) days nor more than
one hundred and twenty (120) days prior to the anniversary date of
the immediately preceding annual meeting of stockholders;
provided,
however, that in
the event that the date of the annual meeting is more than thirty
(30) days before or more than seventy (70) days after such
anniversary date, notice by the stockholder must be so delivered
not earlier than the close of business on the one hundred twentieth
(120th) day prior to such annual meeting and not later than the
close of business on the later of the ninetieth (90th) day prior to
such annual meeting or the tenth (10th) day following the day on
which public announcement of the date of such meeting is first made
by the Company.

 

To be
in proper written form, a stockholder’s notice to the
Secretary must set forth (a) as to each matter such stockholder
proposes to bring before the annual meeting a brief description of
the business desired to be brought before the annual meeting, the
text of the proposal or business (including the text of any
resolutions proposed for consideration and in the event that such
business includes a proposal to amend the Bylaws of the Company,
the language of the proposed amendment), the reasons for conducting
such business at the meeting and any material interest in such
business of such stockholder and the beneficial owner, if any, on
whose behalf the proposal is made, and (b) as to the stockholder
giving the notice and the beneficial owner, if any, on whose behalf
the proposal is made (i) the name and record address of such
stockholder as they appear on the Company’s books, and of the
beneficial owner; (ii) (A) the class or series and number of shares
of capital stock of the Company which are owned beneficially or of
record by such stockholder and such beneficial owner, and (B) the
name of each nominee holder of shares of capital stock of the
Company owned beneficially but not of record by such stockholder or
beneficial owner and the number of shares held by each such
nominee; (iii) a description of all arrangements or understandings
between such stockholder and/or beneficial owner and any other
person or persons (including their names) in connection with the
proposal of such business by such stockholder and such beneficial
owner and any material interest of such stockholder and/or
beneficial owner in such business; (iv) a description of any
agreement, arrangement or understanding (including any derivative
or short positions, profit interests, options, warrants, stock
appreciation or similar rights, hedging transactions and borrowed
or loaned shares) that has been entered into as of or prior to, and
is in effect as of, the date of the stockholder's notice by, or on
behalf of, such stockholder and such beneficial owners, the effect
or intent of which is to mitigate loss to, manage risk or benefit
of share price changes for, or increase or decrease the voting
power of, such stockholder or such beneficial owner, with respect
to shares of stock of the Company; (v) a representation that such
stockholder is a holder of record of stock of the Company as of the
date of the giving of the stockholder’s advance notice
required by the Bylaws and intends to be a holder of record of
stock of the Company on the record date for the determination of
stockholders entitled to vote at such annual meeting date; (vi) a
representation that such stockholder intends to appear in person or
by proxy at the annual meeting to bring such business before the
meeting; and (vii) a representation whether the stockholder or the
beneficial owner, if any, intends or is part of a group which
intends (1) to deliver a proxy statement and/or form of proxy to
holders of at least the percentage of the Company’s
outstanding capital stock required to approve or adopt the proposal
and/or (2) otherwise to solicit proxies or votes from stockholders
in support of such proposal.

 

The
foregoing notice requirements shall be deemed satisfied by a
stockholder with respect to business other than a nomination of a
director if the stockholder has notified the Company of such
stockholder’s intention to present a proposal at an annual
meeting in compliance with applicable rules and regulations
promulgated under the Exchange Act and such stockholder’s
proposal has been included in a proxy statement that has been
prepared by the Corporation to solicit proxies for such annual
meeting.

 

Notwithstanding the
foregoing advance notice provisions, a stockholder shall also
comply with all applicable requirements of the Exchange Act and the
rules and regulations thereunder with respect to the matters set
forth in this advance notice provision of the Bylaws; provided,
however, that any references in these Bylaws to the Exchange Act or
the rules promulgated thereunder are not intended to and shall not
limit any requirements applicable to proposals as to any other
business to be considered pursuant to the advance notice provision,
and compliance with the advance notice provision shall be the
exclusive means for a stockholder to submit other business (other
than, as provided above, matters brought properly under and in
compliance with Rule 14a-8 of the Exchange Act, as may be amended
from time to time). Nothing in the advance notice provision shall
be deemed to affect any rights of stockholders to request inclusion
of proposals in the Company’s proxy statement pursuant to
applicable rules and regulations promulgated under the Exchange
Act.

 

 

 

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No Stockholder Actions by Written Consent. Actions to be taken by the Company’s
stockholders may be taken only at a duly called annual or special
meeting of stockholders and not by written
consent.

 

Special Meetings. The By-laws provide that special meetings
may be called only by the Board (or a committee thereof authorized
to call special meetings), the Chairman of the Board, or the
Company’s President. This provision may delay consideration
of a stockholder proposal until the Company’s next annual
meeting unless a special meeting is called pursuant to our
By-laws.

 

Amendment of Bylaws. The Board is authorized
to adopt, alter, amend or repeal the Bylaws without stockholder
approval. Any Bylaw made or altered by the stockholders may be
altered or repealed by the Board.

 

Issuance of Preferred Stock.
The Certificate of Incorporation allows the Board to issue
preferred stock with rights senior to those of the Common Stock
without any further vote or action by the
stockholders.

 

Tax Benefit Preservation Plan.
The Board adopted the Tax Benefit Preservation Plan to protect
stockholder value by preserving important tax assets. The Company
has generated substantial net operating loss carryovers and other
tax attributes for United States federal income tax purposes
(“Tax
Benefits”) that can
generally be used to offset future taxable income and therefore
reduce federal income tax obligations. However, the Company’s
ability to use the Tax Benefits will be adversely affected if there
is an “ownership change” of the Company as defined
under Section 382 of the Internal Revenue Code
(“Section 382”). In general, an ownership change will
occur if the Company’s “5% shareholders” (as
defined under Section 382) collectively increase their
ownership in the Company by more than 50% over a rolling three-year
period. The Tax Benefit Preservation Plan was adopted to reduce the
likelihood that the Company’s use of its Tax Benefits could
be substantially limited under
Section 382.

 

Under the Tax Benefit Preservation Plan, rights to
purchase capital stock of the Company (“Rights”) have been distributed as a dividend at
the rate of five Rights for each share of Common Stock issued and
outstanding.  Each Right entitles its holder, upon
triggering of the Rights, to purchase one one-hundredth of a share
of Series A Junior Participating Preferred Stock at a price of
$20.00 (as this price may be adjusted under the Tax Benefit
Preservation Plan) (“Purchase
Price”) or, in certain
circumstances, to instead acquire shares of Common Stock. The
Rights will convert into a right to acquire Common Stock or other
capital stock of the Company in certain circumstances and subject
to certain exceptions. The shares of Series A Preferred Stock
purchasable upon exercise of the Rights have been previously
authorized by the Board, and the rights, powers, preferences and
privileges of the Series A Preferred Stock are as set forth in the
Series A Preferred Stock Certificate of
Designation.

 

The Rights will be triggered upon the acquisition
of beneficial ownership of 4.90% or more of the Company’s
outstanding Common Stock or future acquisitions by any existing
holders of beneficial ownership of 4.90% or more of the
Company’s outstanding Common Stock (an
“Acquiring
Person” as defined in the
Tax Benefit Preservation Plan). If a person or group acquires
beneficial ownership of 4.90% or more of the Company Common Stock,
all Rights holders, except the Acquiring Person, will be entitled
to acquire at the then exercise price of a Right that number of
shares of Common Stock which, at the time, has a market value of
two times the exercise price of the Rights.  For purposes of
the Tax Benefit Preservation Plan, ownership is in general
determined pursuant to applicable rules and regulations of the
Internal Revenue Code, including Section 382 and by the definition
of “beneficial ownership” of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended.

 

The
Tax Benefit Preservation Plan authorizes the Board to exercise
discretionary authority to deem a person acquiring Common Stock in
excess of 4.90% not to be an Acquiring Person under the Tax Benefit
Preservation Plan, and thereby not trigger the Rights, if the Board
finds that the beneficial ownership of the shares by the person
acquiring the shares (i) will not be likely to directly or
indirectly limit the availability to the Company of the net
operating loss carryovers and other tax attributes that the plan is
intended to preserve or (ii) is otherwise in the best
interests of the Company.

 

 

 

-7-

 

 

 

Until the earlier to occur of (i) the close
of business on the tenth business day following the first date of
public announcement that a person, entity or group (each, a
“person”) has become an Acquiring Person, by
acquiring beneficial ownership of 4.90% or more of the outstanding
shares of Common Stock, or that the Board has concluded that a
person has become an Acquiring Person, or (ii) the close of
business on the tenth business day (or, except in certain
circumstances, such later date as may be specified by the Board)
following the commencement of, or announcement of an intention to
make, a tender offer or exchange offer the consummation of which
would result in the beneficial ownership by a person (with certain
exceptions) of 4.90% or more of the outstanding shares of Common
Stock (the earlier of such dates being called the
“Distribution
Date”), the Rights are
evidenced, by Common Stock certificates that may still be
outstanding and representing issued and outstanding shares of
Common Stock or by the registration in book-entry form of Common
Stock issued and outstanding, and the Rights will be transferable
only in connection with the transfer of shares of the underlying
Common Stock. Any person that owned 4.90% or more of the issued and
outstanding shares of Common Stock on May 26, 2010
(“Record Date”) will not be deemed an Acquiring Person
unless and until such person acquires ownership of any additional
shares of Common Stock. Until a Right is exercised or exchanged,
the holder thereof, as such, will have no rights as a stockholder
of the Company, including, without limitation, the right to vote or
to receive dividends.

 

The
Rights are not exercisable until the Distribution Date. The Rights
will expire upon the earliest of (i) the close of business on
May 26, 2023 unless that date is advanced or extended,
(ii) the time at which the Rights are redeemed or exchanged
under the Tax Benefit Preservation Plan, (iii) if the Board
elects to extend the Tax Benefit Preservation Plan beyond May 26,
2023, the end of the calendar month in which the Company’s
2023 annual meeting of stockholders is held if stockholder approval
of the Tax Benefit Preservation Plan has not been received before
such time, (iv) the repeal of Section 382 or any
successor statute if the Board determines that the Tax Benefit
Preservation Plan is no longer necessary for the preservation of
the Company’s Tax Benefits, (v) the beginning of a
taxable year of the Company to which the Board determines that no
Tax Benefits may be carried forward, or (vi) such time as the Board
determines that a limitation on the use of the Tax Benefits under
Section 382 would no longer be material to the
Company.

 

The
number of outstanding Rights is subject to adjustment in the event
of a stock dividend on the Common Stock payable in shares of Common
Stock or subdivisions, consolidations or combinations of the Common
Stock occurring, in any such case, before the Distribution Date.
The Purchase Price payable, and the number of shares of Series A
Preferred Stock or other securities or property issuable, upon
exercise of the Rights is subject to adjustment from time to time
to prevent dilution: (i) in the event of a stock dividend on,
or a subdivision, combination or reclassification of, the Series A
Preferred Stock, (ii) upon the grant to holders of the Series
A Preferred Stock of certain rights or warrants to subscribe for or
purchase Series A Preferred Stock at a price, or securities
convertible into Series A Preferred Stock with a conversion price,
less than the then-current market price of the Series A Preferred
Stock or (iii) upon the distribution to holders of the Series
A Preferred Stock of evidences of indebtedness or assets (excluding
regular periodic cash dividends or dividends payable in Series A
Preferred Stock) or of subscription rights or warrants (other than
those referred to above).   With certain exceptions, no
adjustment in the Purchase Price will be required until cumulative
adjustments require an adjustment of at least 1% in such Purchase
Price. No fractional shares of Common Stock or Series A Preferred
Stock will be issued (other than fractions of Series Preferred
Stock which are integral multiples of one one-hundredth of a share
of Series A Preferred Stock, which may, at the election of the
Company, be evidenced by depositary receipts), and in lieu thereof
an adjustment in cash will be made based on the current market
price of the Series A Preferred Stock or the Common
Stock.

   

In
the event that any person becomes an Acquiring Person, (i) each
holder of a Right, other than holders of Rights owned by the
Acquiring Person, related persons, or transferees (which will
thereupon become null and void), will thereafter (subject to any
delay of exercisability approved by the Board) have the right to
receive upon exercise of a Right (including payment of the Purchase
Price) that number of shares of Common Stock having a market value
of two times the Purchase Price in lieu of shares of Series A
Preferred Stock; and (ii) the Board, in its sole discretion, may
permit the Rights, other than Rights owned by the Acquiring Person,
related persons, or transferees (which will thereupon become void),
to be exercisable in a cashless exercise for 50% of the shares of
Common Stock that would otherwise be purchasable upon the payment
of the Purchase Price in consideration of the surrender to the
Company of the exercised Rights in lieu of payment of the Purchase
Price.

 

At
any time after any person becomes an Acquiring Person but before
the acquisition by such Acquiring Person of ownership of 50% or
more of the shares of Common Stock then outstanding, the Board may
exchange the Rights, other than Rights owned by such Acquiring
Person, related persons, or transferees (which will have become
null and void), in whole or in part, for shares of Common Stock or
Series A Preferred Stock (or a series of the Company’s
Preferred Stock having equivalent rights, preferences and
privileges), at an exchange ratio of one share of Common Stock, or
a fractional share of Series A Preferred Stock of equivalent value,
per Right (subject to adjustment).

  

 

 

-8-

 

 

 

At any time before the time an Acquiring Person
becomes such, the Board may redeem the Rights in whole, but not in
part, at a price of $0.001 per Right (“Redemption
Price”) payable, at the
option of the Company, in cash, shares of Common Stock or such
other form of consideration as the Board shall determine. The
redemption of the Rights may be made effective at such time, on
such basis and with such conditions as the Board in its sole
discretion may establish. Immediately upon any redemption of the
Rights, the right to exercise the Rights will terminate and the
only right of the holders of Rights will be to receive the
Redemption Price as rounded to the nearest $0.01. For so long as
the Rights are then redeemable, the Company may, except with
respect to the Redemption Price, amend the Plan in any manner.
After the Rights are no longer redeemable, the Company may, except
with respect to the Redemption Price, amend the Plan in any manner
that does not adversely affect the interests of holders of the
Rights (other than the Acquiring Person, related persons, or
transferees).

 

The
Tax Benefit Preservation Plan could discourage a third party from
attempting to acquire control of AutoWeb.

 

Section 203 of the DGCL. The Company is subject to Section 203 of the DGCL. In
general, this statute prohibits a publicly-held Delaware
corporation from engaging in a “business combination”
with an “interested stockholder” for a period of three
years after the date of the transaction in which the person became
an interested stockholder, unless the business combination is
approved in a prescribed manner. For purposes of Section 203,
a “business combination” includes a merger, asset sale
or other transaction resulting in a financial benefit to the
interested stockholder, and an “interested stockholder”
is a person who, together with affiliates and associates, owns or
did own 15% or more of the corporation’s voting stock.
Section 203 could discourage a third party from attempting to
acquire control of AutoWeb.

 

 

 

-9-ex10-9

 

Exhibit
10.9

 

AUTOWEB,
INC.

 

THIRD
AMENDED AND RESTATED SEVERANCE BENEFITS AGREEMENT

 

This
Third Amended and Restated Severance Benefits Agreement
(“Agreement”)
entered into effective as of March 3, 2021, (“Effective Date”) between AutoWeb,
Inc., a Delaware corporation (“AutoWeb” or “Company”), and Glenn E.
Fuller (“Employee”).

 

Background

 

AutoWeb
has determined that it is in its best interests to encourage
Employee’s continued employment with, and dedication to the
business of, AutoWeb, and as a result thereof, AutoWeb and Employee
have previously entered into a Second Amended and Restated
Severance Benefits Agreement dated as of April 12, 2018 (the
“Prior Severance
Agreement”). After consultation by the Compensation
Committee of the Company’s Board of Directors with the
committee’s independent compensation advisor to evaluate
updated market and peer group data related to severance benefits
for senior management, the Company has determined that it is in the
Company’s best interests to amend the Prior Severance
Agreement to provide for additional incentive to encourage
Employee’s continued employment with AutoWeb and dedication
to AutoWeb’s business.

 

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
16, 2006 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 in 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.

 

(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.

 

 

 

-2-

 

 

(i) “Employee’s
Position” means Employee’s position as the
Executive Vice President, Chief Legal Officer and Secretary of the
Company.

 

(j) “Employee’s Primary Work
Location” means AutoWeb’s offices located at
6410 Oak Canyon, Suite 250, Irvine, CA 92618.

 

(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) relocates the
Employee’s primary place of employment without
Employee’s consent from Employee’s Primary Work
Location to any other location in excess of a fifty (50) mile
radius from the Employee’s Primary Work Location other than
on a temporary basis or requires any such relocation as a condition
to continued employment by Company; (E) constitutes a failure or
refusal by any Company Successor to assume this Agreement; or (F)
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.

 

(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 eighteen (18) months.

 

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

 

(p) “Termination Without
Cause” means termination of Employee’s
employment with the Company by the Company (i) for any reason other
than (1) death, (2) Disability or (3) those reasons expressly set
forth in the definition of “Cause,” (ii) for no reason
at all, or (iii) in connection with or as a result of a Change in
Control; provided, however, that a termination of Employee’s
employment with the Company in connection with a Change in 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.

 

 

 

-3-

 

 

2. Severance Benefits
and Conditions.

 

(a) (i)            Termination
Not in Connection With or Within 18 Months of a Change in
Control. If before, or more than eighteen months following,
a Change in Control there occurs (i) a Termination Without Cause,
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 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; (C) Employee shall receive the amount
of Employee’s annual incentive compensation plan payout for
the annual incentive compensation plan year in which
Employee’s date of termination occurred, based on actual
performance for the entire performance period and prorated for the
amount of time Employee was employed by the Company prior to the
date of termination during such plan year (“Actual Incentive Compensation
Payment”); and (D) 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.

 

(ii)           Termination
In Connection With or Within 18 Months of a Change in
Control. If upon, or within eighteen months following, a
Change in Control there occurs (i) a Termination Without Cause, or
(ii) the termination of Employee’s employment with the
Company by Employee for Good Reason, if the event giving rise to
such Good Reason occurred within eighteen (18) months following a
Change in Control, 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 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; (C) Employee shall receive a lump sum
amount equal to Employee’s target annual incentive
compensation opportunity at the rate of base annual salary and the
target annual incentive compensation opportunity in effect
immediately before such termination, prorated for the amount of
time Employee was employed by the Company prior to the date of
termination during such plan year (“Target Incentive Compensation
Payment”); (D) in addition to the Target Incentive
Compensation Payment, if the Actual Incentive Compensation Payment
is more than the Target Incentive Compensation Payment, then
Employee shall receive an additional lump sum payment equal to the
difference between the Actual Incentive Compensation Payment and
the Target Incentive Compensation Payment; and (E) 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.

 

 

 

-4-

 

 

(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 Confidential
Separation and Release Agreement in favor of the Company and
Releasees (as defined the Release), 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 19 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 19 of the Release (“Release Revocation Period”); (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; and (iv) Employee has complied with the terms and
conditions set forth in the Release. 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)           Subject
to Section 3, satisfaction of the conditions set forth in Section
2(c), and the last sentence of this Section 2(d), all payments
under Section 2(a)(i)(A), Section 2(a)(ii)(A), and Section
2(a)(ii)(C) 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 payments under Section 2(a)(i)(A),
Section 2(a)(ii)(A) and Section 2(a)(ii)(C) 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)(i)(A), Section 2(a)(ii)(A) and Section
2(a)(ii)(C) 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.

 

(e)           Subject
to Section 3, the satisfaction of the conditions set forth in
Section 2(c), and the last sentence of this Section 2(e), the lump
sum cash payments under Section 2(a)(i)(C) and Section 2(a)(ii)(D)
shall be made once the Company’s board of directors has
determined and approved the payouts, if any, under the
Company’s annual incentive compensation plan for the
applicable year and at the same time as payouts are made to other
executive officers of the Company who are actively employed by the
Company at the time. In any case, the lump sum cash payments under
Section 2(a)(i)(C) and Section 2(a)(ii)(D) 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 its terms prior to expiration of such two and
one-half month period. If the period of time covered by the entire
allowed Release Consideration Period and the entire Release
Revocation Period (considering such periods consecutively) begins
in one calendar year and ends in the following calendar year, the
lump sum cash payments under Section 2(a)(i)(C) and Section
2(a)(ii)(D) 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.

 

 

-5-

 

 

 

(f)           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(f) are not conditioned upon Employee’s signing the
Release and shall be made within the time period(s) required by
applicable law.

 

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

 

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

 

(i)           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.

 

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-

 

 

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.

400
North Ashley Dr., Suite 300

Tampa,
FL 33602

Attn:
Chief People 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.

 

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.

 

 

 

-7-

 

 

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.

 

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.]

 

 

 

 

 

-8-

 

 

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/ Sara
Partin

Sara
Partin

Senior
Vice President, Chief People Officer

 

 

EMPLOYEE

 

 

 

/s/ Glenn E.
Fuller

Glenn
E. Fuller

 

 

-9-

 

 

EXHIBIT A

 

CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT

 

This
Confidential Separation and Release Agreement (“Release”) is hereby entered into
as of ___________, 20__ (“Release Signature Date”) by and
between Glenn E. Fuller for such person and such person’s
spouse, family, heirs, agents and attorneys) (collectively and
jointly, “You,”
“Your,” or
“Employee”), and
AutoWeb, Inc., a Delaware corporation (for itself and its
predecessors, successors, affiliates, directors, employees,
shareholders, fiduciaries, insurers, employees and agents
(collectively and jointly, “AutoWeb” or “Company”)(Employee and the Company
being collectively referred to herein as the “Parties”).

 

Background

 

[Insert
Description of Events Leading to Employment
Termination]

 

This
Release is entered into in connection with that certain Third
Amended and Restated Severance Benefits Agreement dated effective
as of March 3, 2021, by and between the Company and Employee
(“Severance Benefits
Agreement”) (this Release and the Severance Benefits
Agreement are collectively referred to herein as the
“Severance and Release
Agreements”).

 

In
order to implement the foregoing and for valuable consideration,
receipt of which is hereby acknowledged, and in consideration of
the representations, covenants, and releases contained herein, the
parties hereto agree as follows.

 

1. Separation
of Employment.

 

(a)           The
effective date of the termination of your employment with the
Company is [_______], 20[__] (“Employment Termination Date”). You
have delivered your resignation 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.

 

(b)           You
will not perform any further duties, functions or services for the
Company subsequent to the Employment Termination Date.

 

(c)           You
acknowledge that You shall continue to be governed by and subject
to the Company’s Securities Trading Policy until such time as
the Company notifies You that You are no longer governed by the
policy and not subject to any trading blackouts or other
restrictions.

 

2. Release
Consideration.

 

(a)           In
exchange for Your promises and obligations in the Severance and
Release Agreements, including the release of claims and covenant
not to sue set forth in this Release, and provided that You sign
and do not revoke this Release, You comply with the terms and
conditions of this Release, and this Release becomes effective, the
Company will pay You the amounts, and will provide You the
benefits, due to You under the Severance Benefits Agreement
(“Release
Consideration”).

 

(b)           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 in the Severance Benefits Agreement)
and, if no time is specified, within 5 business days after this
Release becomes effective.

 

(c)           All
payments made pursuant to the Severance and Release Agreements will
be subject to withholding of applicable federal, state and local
payroll deductions and withholdings. Notwithstanding the foregoing,
You are solely responsible and liable for the satisfaction of any
federal, state, or local taxes that may arise with respect to the
Severance and Release Agreements. Neither the Company nor any of
its employees, directors, or service providers shall have any
obligation whatsoever to pay any such taxes or interest, to prevent
You from incurring them, or to mitigate or protect You from any
such tax or interest liabilities.

 

 

-10-

 

 

 

(d)           In
addition to the payments and benefits under the Severance and
Release Agreements, upon termination of Your employment with the
Company, You shall receive any payments required by applicable law
(including payments with respect to accrued and unused vacation
time). Payments required under this Section 2(d) are not
conditioned upon You signing this Release or upon this Release
becoming effective and shall be made within the time period(s)
required by applicable law.

 

(e)           Other
than the Release Consideration, You shall not be entitled to any
additional payments or benefits from the Company resulting from a
termination of Your employment with the Company or under any
Company incentive compensation, commission or other plan or
arrangement.

 

(f)           To
the extent you may have stock options to acquire common stock of
the Company that are vested as of the Employment Termination Date,
the effect of the termination of Your employment with the Company
on your rights to exercise such stock options and on their
termination, expiration or forfeiture shall be governed by the
applicable plan and award agreements under which such stock options
were granted.

 

3. Acknowledgement
of Receipt of Amounts Due. You acknowledge and agree that
You have received all payments, benefits or other compensation owed
to You as a result of Your employment with the Company or Your
separation from employment with the Company, and that the Company
does not owe You any additional, payments, benefits or other
compensation, including, but not limited to, wages, commissions,
bonuses, incentive compensation, 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.

 

5. Confidentiality
and Non-Disclosure.

 

(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, sales commission
and compensation plans and other confidential matters, except as
necessary for compliance purposes and as required by applicable
law, rule, regulation, legal process or order, including when
required or requested pursuant to a court order, subpoena, or
written request from an administrative agency or a legislature.
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 16, 2006
(“Confidentiality
Agreement”), which shall survive and remain binding on
You after the Employment Termination Date.

 

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

 

 

-11-

 

 

 

(c) In
addition to Your obligations and restrictions under Section 5(a)
above, You hereby agree that You may not, at any time, use the
Company’s trade secrets to (i) solicit business from any
source, including the Company’s customers or clients; or (ii)
solicit any employee of the Company to leave Company’s employ
or induce a consultant to sever the consultant’s relationship
with Company. You represent and warrant that You have not engaged
in any of the foregoing activities prior to the Release Signature
Date. 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 Release Signature Date.

 

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.
Notwithstanding the foregoing provisions of this Section 6, the
foregoing provisions shall not be deemed to prevent or restrict You
from disclosing factual information to the extent any such
provisions are prohibited by applicable law with respect to any
such disclosure of factual information.

 

7. Unconditional
General Release of Claims.

 

(a) In
consideration for the Release Consideration, and notwithstanding
the provisions of Section 1542 of the Civil Code of California, You
fully, finally and unconditionally waive, 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 collectively 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, and regardless of whether
the knowledge thereof would have materially affected Your agreement
to release the Company hereunder, based on any act, omission,
event, occurrence, or nonoccurrence from the beginning of time to
the Release Signature Date, 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 Release), wages, penalties, premiums, severance pay, vacation
pay or any benefits, including 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 of 1967 (“ADEA”), the Older Worker Benefits
Protection Act, the Americans With Disabilities Act of 1990,
Sections 1981 through 1988 of Title 42 of the United States Code,
the Fair Labor Standards Act, the Worker Adjustment and Retraining
Notification Act, The Employee Retirement Income Security Act of
1974 ("ERISA"), The
Immigration Reform and Control Act, The Fair Credit Reporting Act,
The Equal Pay Act, The Genetic Information Nondiscrimination Act of
2008, The Families First Coronavirus Response Act, The Coronavirus
Aid, Relief, and Economic Security Act, 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; any other federal, state or local
law, rule, regulation, or ordinance, any public policy, contract,
tort, or common law, or any basis for recovering costs, fees, or
other expenses including attorneys' fees incurred in these matters;
(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
common law or statutory torts, and any claims for costs, fees, or
other expenses, including attorneys’ fees; (v) any agreement,
understanding or inducement, oral or written, express or implied,
between You and any of the Releasees, including any employment
agreement; and (vi) any other aspect of your employment or the
termination of your employment, including any impairment of Your
ability to obtain subsequent employment.

 

 

-12-

 

 

 

(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
Release Signature Date, including but limited to claims that You
did not know or suspect to exist in Your favor at the time of Your
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 that the creditor or
releasing party does not know or suspect to exist in his or her
favor at the time of executing the release, and that known by him
or her would have materially affected his or her settlement with
the debtor or released party.”

 

(d)           If
any claim is not subject to release, to the extent permitted by
law, You waive any right or ability to be a class or collective
action representative or to otherwise participate in any putative
or certified class, collective or multi-party action or proceeding
based on such a claim in which the Company or any other Releasee
identified in this Agreement is a party.

(e)           This
Release will not waive any rights You may have 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.

 

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

 

(g)           This
general release does not waive or release rights or claims arising
after the Release Signature Date, including claims to enforce 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, administrative agency, arbitration or other alternative
dispute resolution complaint, claim, or lawsuit, or any complaint
or claim with the Company’s internal complaint process,
involving any claims You have released in this Release, and You
agree to withdraw any such complaints, claims or lawsuits You have
filed, or were filed on your behalf, prior to the Release Signature
Date. You agree if You breach this covenant, then You must pay the
legal expenses incurred by any Releasee in defending against your
claim, complaint or lawsuit, including reasonable attorneys’
fees, or, at the Company’s option, return everything paid to
You under this Release. In that event, the Company shall be excused
from making any further payments or continuing any other benefits
otherwise owed to You under Section 2 of this Release. 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. Notwithstanding the foregoing
provisions of this Section 10, to the extent any of the foregoing
provisions of this Section 10 are void or unenforceable under
applicable law, such provisions shall be deemed stricken from this
Release and not enforceable.

 

 

-13-

 

 

 

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.

 

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 Release are
for convenience only and shall not control the meaning, effect, or
construction of this Release. Time periods used in this Release
shall mean calendar periods unless otherwise expressly
indicated.

 

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. 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: (i) is made (1) in confidence to a federal,
state, or local government official, either directly or indirectly,
or to an attorney; and (2) solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) 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: (i) files any document
containing the trade secret under seal; and (ii) does not
disclose the trade secret, except pursuant to court
order.

 

(b)           You
understand that this general release does not apply to those rights
that as a matter of law cannot be waived. You further understand
that nothing contained in this Agreement or in the Confidentiality
Agreement limits Your ability to do any of the following: (i) file
a claim for unemployment or workers' compensation insurance; (ii)
file a charge or complaint with the U.S. Equal Employment
Opportunity Commission, the National Labor Relations Board, the
Occupational Safety and Health Administration, the Securities and
Exchange Commission, the California Department of Fair Employment
and Housing, or any other federal, state or local governmental
agency or commission (“Government Agencies”); (iii)
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 the Company; (iv) testify in an
administrative, legislative, or judicial proceeding concerning
alleged criminal conduct or sexual harassment on the part of the
Company or any agent or employee of the Company when You are
required or requested to attend the proceeding pursuant to a court
order, subpoena, or written request from an administrative agency
or a legislature; and (vii) receive an award for information
provided to any Government Agencies, provided, however, You agree that if
any claim is prosecuted in Your name before any court or
administrative agency, You waive and agree not to take any damages
from such suit.

 

17. Entire
Agreement. You hereby acknowledge that no promise or
inducement has been offered to You, except as expressly stated in
the Severance and Release Agreements, and You are relying upon
none. The Severance and Release Agreements 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. Exhibits, appendices, and schedules
referred to herein and attached hereto, if any, are incorporated by
reference into this Release and form a part hereof.

 

 

-14-

 

 

 

18. 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).

 

19. Period
for Review and Consideration/Revocation Rights.

 

[Alternative
1 for Section 19 if Employee is age 40 or over at time of
separation from employment and separation from employment is NOT in
connection with a group separation]

 

(a)           This
Release has been delivered to You by the Company on the Employment
Termination Date (also referred to herein as the
“Release Delivery
Date”). So that You can review this Release as You
deem appropriate, and in accordance with the Older Worker Benefits
Protection Act, You acknowledge that You have the right to seek
legal counsel and are advised by the Company to seek such counsel,
before entering into this Release. You have been advised that this
Release does not waive or release any rights or claims arising
after You sign this Release. You further understand that You have
twenty-one (21) days after the Release Delivery Date
(“Release Review
Period”) to decide whether to sign this Release,
although You may sign this Release prior to the expiration of the
Release Review Period if you so desire. Should You decide to sign
this Release prior to the expiration of the Release Review Period,
the date you sign this Release is referred to herein as the
“Release Signature
Date.” If You do not sign this Release prior to the
expiration of the Release Review Period, this Release shall not be
effective or enforceable as to any rights You may have under this
Release. In the event that You do not sign this Release prior to
the expiration of the Release Review Period, You will not be
entitled to the Release Consideration.

 

(b)           If
You do sign this Release prior to the expiration of the Release
Review Period, You also understand that You will have an additional
seven (7) days after the Release Signature Date You sign this
Release 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.,6410 Oak Canyon,
Suite 250, Irvine, California 92618, on or before the seventh (7th)
day after the Release Signature Date (or on the next business day
if the seventh day is not a business day). You understand that this
Release will not become effective or enforceable until after this
seven (7) day revocation period has passed (the day after the
expiration of this seven (7) day revocation period being referred
to herein as the “Release
Effective Date”). If You revoke this Release prior to
the expiration of the seven (7) day revocation period, 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 Release Consideration.

 

[Alternative
2 for Section 19 if Employee is age 40 or over at time of
separation from employment and separation from employment IS in
connection with a group termination]

 

(a)           This
Release has been delivered to You by the Company on the Employment
Termination Date (also referred to herein as the
“Release Delivery
Date”). So that You can review this Release as You
deem appropriate, and in accordance with the Older Worker Benefits
Protection Act, You acknowledge that You have the right to seek
legal counsel and are advised by the Company to seek such counsel,
before entering into this Release. You have been advised that this
Release does not waive or release any rights or claims arising
after You sign this Release. You further understand that You have
forty-five (45) days after the Release Delivery Date
(“Release Review
Period”) to decide whether to sign this Release,
although You may sign this Release prior to the expiration of the
Release Review Period if you so desire. Should You decide to sign
this Release prior to the expiration of the Release Review Period,
the date you sign this Release is referred to herein as the
“Release Signature
Date.” If You do not sign this Release prior to the
expiration of the Release Review Period, this Release shall not be
effective or enforceable as to any rights You may have under this
Release. In the event that You do not sign this Release prior to
the expiration of the Release Review Period, You will not be
entitled to the Release Consideration.

 

 

-15-

 

 

(b)           If
You do sign this Release prior to the expiration of the Release
Review Period, You also understand that You will have an additional
seven (7) days after the Release Signature Date You sign this
Release 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., 6410 Oak
Canyon, Suite 250, Irvine, California 92618, on or before the
seventh (7th) day after the Release Signature Date (or on the next
business day if the seventh day is not a business day). You
understand that this Release will not become effective or
enforceable until after this seven (7) day revocation period has
passed (the day after the expiration of this seven (7) day
revocation period being referred to herein as the
“Release Effective
Date”). If You revoke this Release prior to the
expiration of the seven (7) day revocation period, 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 Release Consideration.

 

(c)                 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. You acknowledge that: (i) the
Company has advised You to consult with an attorney and/or tax
advisor of Your choosing (and at Your own cost and expense) before
executing this Release, and (ii) You are not relying upon the
Company for, and the Company has not provided, legal or tax advice
to You in connection with this Release. It is Your responsibility
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.
You acknowledge that You have had a reasonable opportunity to seek
and consider advice from Your attorney and tax
advisors.

 

PLEASE READ THIS RELEASE 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 YOU.

 

	
 

	
 

AutoWeb Inc.

 

 

By:
______________________________
                                                             

(Officer
Name)

(Title)

 

EMPLOYEE

 

_________________________________

Glenn
E. Fuller

 

 

 

-16-

 

 

[If Applicable Under Section 19(c), Add Appendix A-Group
Termination Information]

 

 

 

-17-

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