Amended and Restated 2001 Restricted Stock and Option Plan



 Exhibit 4.7 
  

AUTOBYTEL INC. 
  
 AMENDED AND RESTATED 2001 RESTRICTED STOCK AND OPTION PLAN 
  

SECTION 1 
  
 DEFINITIONS 
  
 As used herein, the following terms have the meanings hereinafter set forth unless the context clearly indicates to the contrary: 
  
 “Administrator” means the Board or the Committee; whichever shall be administering the Plan from time to time in the discretion of the Board, as
described in Section 3 of this Plan, and shall include any Special Committee that the Board or the Committee may appoint. 
  
 “Award” means any award made pursuant to Section 6 of this Plan, whether in the form of Restricted Shares, Options, Stock Appreciation Rights,
or Deferred Shares. 
  
 “Award Agreement” means any
written document setting forth the terms and conditions of an Award, as prescribed by the Committee. 
  
 “Award Term” means the maximum period of time during which an Award may be earned, exercised or purchased as set forth in Section 6.5 below.

  
 “Board” means the Board of Directors of the Company.

  
 “Code” means the Internal Revenue Code of 1986, as
amended. 
  
 “Committee” means the committee appointed
by the Board in accordance with Section 3 of this Plan. 
  
 “Company” means Autobytel Inc., a Delaware corporation. 
  
 “Deferred Shares” mean shares of Common Stock credited under Section 6.3 of this Plan. 
  
 “Director” means a member of the Board of Directors of the Company. 
  
 “Employee” means an individual who is employed (within the meaning of Section 3401 of the Code and the Treasury
Regulations thereunder) by the Company or any future Parent Corporation or Subsidiary Corporation of the Company. 
  
 “Employer Company” means a company, whether (i) the Company or a Parent Corporation or Subsidiary Corporation of the Company, which employs the
Employee; or (ii) the Company or a Parent Corporation or Subsidiary Corporation of the Company, to which the Service Provider is providing services or with which Service Provider engages in business. 
  
 “Fair Market Value of Shares” shall mean (i) if the Shares are not
publicly traded on the day in question, the closing price of the Shares on the prior trading day or the next trading day (whichever is closest in time to the day in question), provided that such date is no more than five (5) days from the date the
Award is granted, (ii) if the Shares are not publicly traded on the day in question and (i) above does not apply, the fair market value of the Shares on the day in question as determined and set forth in writing by the Administrator (which, in
making such determination, shall make a good faith effort to establish the true fair market value of the Shares as of such date using such methods as it deems appropriate, including independent appraisals, and taking into consideration any
requirements set forth in the Code or the Treasury Regulations thereunder), or (iii) if the Shares are publicly traded on the day in question, the closing price of the Shares on the day in question. 







 “Incentive Stock Option” means an Option for Shares that is intended to be, designated in
writing as, and qualifies as an Incentive Stock Option within the meaning of Section 422 of the Code. 
  
 “Nonstatutory Stock Option” means an Option which is not an Incentive Stock Option and which is designated as a Nonstatutory Stock Option by the
Administrator. 
  
 “Option” means an option to purchase
a Share pursuant to the provisions of this Plan. 
  
 “Option
Price” means the price per share of the Shares subject to each Option or Stock Appreciation Right as provided, respectively, in Sections 6.4(c) and 6.5 (b) below. 
  
 “Outside Director” means a Director who is not an Employee. 
  
 “Parent Corporation” shall have the meaning assigned to that term
under Section 424 of the Code. 
  
 “Participant” means
any holder of one or more Awards, or the Shares issuable or issued upon the vesting, exercise or distribution of Awards, pursuant to the Plan. 
  
 “Plan” means the Autobytel Inc. Amended and Restated 2001 Restricted Stock and Option Plan, the terms of which are set forth herein. 

 
 “Restricted Shares” means Shares subject to restrictions imposed
pursuant to Section 6.2 of this Plan. 
  
 “Service
Provider” means any individual who follows an independent trade, business or profession in which he/she provides his/her services to the Company or any future Parent Corporation or Subsidiary Corporation of the Company, including, without
limitation, consultants, independent contractors and suppliers to the Company. 
  
 “Share” or “Shares” means Common Stock of the Company, par value $.001 per share, or, in the event that the outstanding Shares are hereafter changed into or exchanged for different shares or
securities of the Company or some other corporation or other entity, such other shares or securities. 
  
 “Special Committee” means any committee to which the Board or Committee may delegate the authority to grant Awards to eligible persons not
described in Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 
  
 “Stock Appreciation Right” means the right to receive the appreciation in value, or the portion of the appreciation in value, or a specified
number of Shares pursuant to Section 6.5. 
  
 “Subsidiary
Corporation” shall have the meaning assigned to that term under Section 424 of the Code. 
  
 “Total and Permanent Disability,” unless otherwise specified in the applicable Award Agreement, means the inability of an Employee, Service Provider or Outside Director to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. 
  
 SECTION 2 
  
 THE PLAN 
  
 2.1  Name.    This Plan shall be known as “Autobytel Inc. Amended and Restated 2001 Restricted Stock and Option
Plan.” 







 2.2  Purpose.    The purpose of this Plan is to advance the
interests of the Company and its stockholders by affording Employees and Service Providers of the Employer Company and Outside Directors an opportunity to acquire or increase their proprietary interest in the Company by the grant to such individuals
of Awards under the terms set forth herein. 
  
 2.3  Intention; Options. 
  
 (a)  It is intended that Options (if any) issued as Incentive Stock Options under this Plan will qualify as incentive stock options under Section 422 of the Code and the terms of this Plan shall be interpreted in accordance with
such intention 
  
 (b)  It is intended
that all Options issued to Service Providers and Outside Directors shall be Nonstatutory Stock Options and that any Options issued to Employees may be Nonstatutory Stock Options. 
  
 SECTION 3 
  
 ADMINISTRATION 
  
 3.1  Administration.    This Plan shall be administered, in the discretion of the Board from time to time, by the
Board or by the Committee acting as the Administrator. The Committee shall be appointed by the Board, in a manner consistent with the Company’s By-laws, and shall consist of two (2) or more members, each of whom is an outside director (within
the meaning of Code Section 162(m) and the Treasury Regulations thereunder) as well as a non-employee director (within the meaning of Rule 16(b)-3 under the Exchange Act, as amended). The Board may from time to time remove members from, or add
members to, the Committee. The Board shall fill vacancies on the Committee however caused. The Board may appoint one (1) of the members of the Committee as Chairman. The Administrator shall hold meetings at such times and places as it may determine.
Acts of a majority of the Administrator at which a quorum is present, or acts reduced to or approved in writing by the unanimous consent of the members of the Administrator, shall be the valid acts of the Administrator. Additionally, and
notwithstanding anything to the contrary contained in this Plan, the Board or Committee may delegate to a committee of one or more members of the Board the authority to grant Awards and to specify the terms and conditions thereof to certain eligible
persons who are not subject to the requirements of Section 16 of the Exchange Act, in accordance with guidelines approved by the Board or Committee. 
  
 3.2  Duties.    The Administrator (or the Special Committee) shall from time to time at its discretion determine the
Employees, Service Providers and Outside Directors who are to be granted Awards, the terms of any Awards, and the number of Shares to be subject to Awards to be granted to each Participant. The interpretation and construction by the Administrator of
any provisions of this Plan or of any Award granted thereunder shall be final. No member of the Administrator shall be liable for any action or determination made in good faith with respect to this Plan or any Award granted hereunder. 
  
 SECTION 4 
  
 PARTICIPATION 
  
 4.1  Eligibility.    The Administrator may from time to time make Awards to such persons (collectively,
“Participants”; individually a “Participant”) as the Administrator (or the Special Committee) may select from among the following classes of persons, subject to the terms and conditions of Sections 4.2 and 4.3 below: 

 
 (a)  Employees of the Company; 
  
 (b)  Employees of the Company’s Parent
Corporations or Subsidiary Corporations; 
  
 (c)  Service Providers of the Company and any Parent Corporation or Subsidiary Corporation (or any other related entity); 







 (d)  Outside Directors; and 
  
 (e)  Directors of the Company’s Parent
Corporations or Subsidiary Corporations. 
  
 4.2  Limitation on Awards.    In no event may any Participant receive Awards under this Plan with respect to (i) more than 400,000 Shares during any calendar year, or (ii) more than 1,000,000 Shares
during the term of this Plan. 
  
 4.3  Ten-Percent
Stockholders.    A Participant who beneficially owns more than ten percent (10%) of the total combined voting power of all classes of outstanding stock of the Company, as determined under Sections 422 and 424 of the Code,
shall not be eligible to receive an Incentive Stock Option unless: 
  
 (a)  the Option Price of the Shares subject to such Option is at least one hundred ten percent (110%) of the Fair Market Value of such Shares on the date of grant; and 
  
 (b)  such Option by its terms is not exercisable
after the expiration of five (5) years from the date of grant. 
  
 For purposes of
this Section 4.3, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant of the Option to the Participant. “Outstanding stock” shall not include Shares authorized for issue under
outstanding Options held by the Participant or by any other person. 
  
 SECTION 5 
  
 SHARES SUBJECT TO PLAN 
  
 5.1  Shares Available for
Awards.    Subject to adjustment pursuant to the provisions of Section 5.2 hereof, the total number of Shares, which may be issued pursuant to all Awards, shall not exceed 1,500,000 Shares. Shares that may be issued pursuant
to Awards may be either authorized and unissued Shares or issued Shares which have been reacquired by the Company. If, and to the extent, any Award shall be forfeited, expire, or terminate for any reason without having resulted in the issuance of
unrestricted Shares to a Participant or a Participant’s beneficiary in the case of Restricted Shares and Deferred Shares, or, without having been exercised in full in the case of Options or Stock Appreciation Rights, new Awards may be granted
covering Shares originally set aside for the forfeited, expired, or terminated Award, or the unexercised portion of such expired or terminated Option or Stock Appreciation Right. 
  
 5.2  Adjustments. 
  

(a)  Stock Splits and Dividends.    Subject to any required action by the Board, the number of
Shares covered by this Plan as provided in Section 5.1 hereof, the number of Shares covered by each outstanding Award, and the price if any at which a Participant may purchase Restricted Shares, Deferred Shares or exercise Options or Stock
Appreciation Rights shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a recapitalization, reclassification, subdivision or consolidation of Shares or the payment of a stock dividend (but
only if paid in Shares), a stock split or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. 
  
 (b)  Mergers.    Subject to any required action by the Board and/or
stockholders, if the Company shall merge with another corporation and the Company is the surviving corporation in such merger and under the terms of such merger the Shares outstanding immediately prior to the merger remain outstanding and unchanged,
each outstanding Award shall continue to apply to the Shares subject thereto and shall also pertain and apply to any additional securities and other property, if any, to which a holder of the number of Shares subject to the Award would have been
entitled as a result of the merger. 







 (c)  Adjustment Determination.    To the extent that
the foregoing adjustments relate to securities of the Company, such adjustments shall be made by the Administrator, whose determination shall be conclusive and binding on all persons. In computing any adjustment under this Section 5.2, any
fractional Share which might otherwise become subject to an Award shall be eliminated. 
  
 (d)  Special Dividends.    Subject to any required action by the Board, the Administrator shall be
entitled to determine whether any adjustment shall be made with respect to the number of Shares covered by this Plan as provided in Section 5.1 hereof, the number of Shares covered by each outstanding Award and the Option Price for Options if the
Company pays a special or extraordinary dividend. 
  
 SECTION 6

  
 AWARDS 
  
 6.1  Award Grant and Agreement. 
  
 (a)  The Administrator may from time to time,
subject to the terms of this Plan, grant to any Participant one or more Awards; provided, however, that the Special Committee may from time to time grant Awards to eligible persons not described in Section 16 of the Exchange Act. Each Award grant
shall be evidenced by a written Award Agreement, dated as of the date of grant and executed by the Company and the Participant, which Award Agreement shall set forth the number of Awards granted, whether the Award is for Restricted Shares, Deferred
Shares, Options, or Stock Appreciation Rights, the price if any at which a Participant may purchase Restricted Shares or Deferred Shares, the Option Price associated with Options and Stock Appreciation Rights, the Award Term, and such other terms
and conditions as may be determined appropriate by the Administrator (or the Special Committee), provided that such terms and conditions are not inconsistent with this Plan. The Award Agreement shall incorporate this Plan by reference and provide
that any inconsistencies or disputes shall be resolved in favor of this Plan language. 
  
 (b)  Awards shall be made by the Administrator or Special Committee selectively among the Participants and the terms and
provisions of such grants and the agreements evidencing the same (including, without limitation, the form, the amount, the timing, the terms for any purchase, the exercisability of Options and Stock Appreciation Rights, and vesting schedule of such
grants) need not be uniform, whether or not the Participants are similarly situated. Moreover, the Administrator shall be entitled to modify the vesting terms and provisions of any outstanding Award at any time provided that the Participant shall so
consent to any modification adverse to the Participant’s interests. 
  
 6.2  Restricted Share Awards. 
  
 (a)  Awards.    The Administrator may award Restricted Shares to Participants, in such amounts, and
subject to such terms and conditions as the Administrator shall determine in its discretion, subject to the provisions of this Plan. The Administrator shall determine the purchase price, if any, of Restricted Shares, and may issues Shares that are
immediately vested and unrestricted. A Participant shall have no rights with respect to a Restricted Share Award unless the Participant accepts the Award within the time period the Administrator specifies by executing the Award Agreement prescribed
by the Administrator and, if applicable, pays the purchase price for the Restricted Shares by any method that is acceptable to the Company. 
  
 (b)  Issuance of Award.    The Company shall issue in the Participant’s name a certificate or
certificates for the appropriate number of Shares upon the Participant’s execution of the applicable Award Agreement. 
  
 (c)  Plan and Regulatory Exceptions.    Any certificate issued evidencing Restricted Shares shall
remain in the Company’s possession until those Shares are free of restrictions, except as otherwise determined by the Administrator. 







 (d)  Deferral Elections.    The Participant may
elect in accordance with Section 6.3(b) hereto, with the Administrator’s consent, to exchange Restricted Shares for an equivalent number of Deferred Shares under Section 6.3 hereto, but subject to such vesting restrictions as the Administrator
may prescribe. 
  
 (e)  Forfeiture.    If so provided in an Award Agreement, during a designated period of up to 120 days following termination of the Participant’s service with the Company for any reason or for
reasons designated in the Award Agreement, the Company shall have the right to repurchase Shares to which restrictions on transferability apply, in exchange for which the Company shall repay to the Participant the lesser of the amount paid by the
Participant for such Shares or the Fair Market Value of such Shares at the time of repurchase by the Company (or such other price as the Administrator shall specify in the Award Agreement). 
  
 6.3  Deferred Shares. 
  
 (a)  Deferral
Elections.    The Administrator may award Deferred Shares to one or more Participants, and may also permit any Participant to irrevocably elect to receive the credits described in Section 6.3(b) below in lieu of fees, salary,
or other income from the Company that the Participant earns after the election; provided that Employees will only be permitted to receive Deferred Share Awards pursuant to this Section if the Administrator determines they are members of a select
group of management or highly compensated employees (within the meaning of the Employee Retirement Income Security Act of 1974). Any election pursuant to this Section shall be made before the Participant becomes legally entitled to the fees, salary,
or other income being deferred; provided that (a) a deferral election with respect to Restricted Shares or previously Deferred Shares must be made more than 12 months before a Participant’s Restricted Shares vest or Deferred Shares are
scheduled to be distributed to a Participant pursuant to this Section; and provided further that (b) the Administrator will honor an election made within 12 months of a scheduled vesting date (or distribution date for Deferred Shares) if the
Participant consents in the election to irrevocably forfeit 5% of the Restricted or Deferred Shares to which the Participant would otherwise be entitled. 
  
 (b)  Deferred Share Credits and Earnings.    The Administrator shall establish an internal Plan
account for each Participant who either receives an Award of Deferred Shares or makes an election under this Section 6.3. At the end of each calendar year thereafter (or such more frequent periods as the Administrator may direct or approve), the
Administrator shall credit the Participant’s account with a number of Deferred Shares having a Fair Market Value on that date equal to the compensation deferred during the year, and any cash dividends paid during the year on Deferred Shares
previously credited to the Participant’s account. The Administrator shall hold each Participant’s Deferred Shares until distribution is required pursuant to Section 6.3(d) hereto. 
  
 (c)  Rights to Deferred
Shares.    Except as provided in Section 6.2(d) hereto, a Participant shall at all times be 100% vested in his or her right to any Deferred Shares and any associated cash earnings. A Participant’s right to
Deferred Shares shall at all times constitute an unsecured promise of the Company to pay benefits as they come due. 
  
 (d)  Distributions of Deferred Shares and Earnings.    The Administrator shall
distribute a Participant’s Deferred Shares in five substantially equal annual installments in real Shares commencing as of the first day of the calendar year beginning after the Participant’s continuous service terminates, provided that
the Administrator will honor a Participant’s election of a different time and manner of distribution if the election is made on a form approved by the Committee pursuant to Section 6.2(d) hereto. Fractional shares shall not be distributed, and
instead shall be paid out in cash. 
  
 (e)  Hardship Withdrawals.    A Participant may apply to the Administrator for an immediate distribution of all or a portion of his or her Deferred Shares on account of hardship. The hardship must result
from a sudden and unexpected illness or accident of the Participant or dependent, casualty loss of property, or other similar conditions beyond the control of the Participant. School expenses or residence purchases, for example, will not be
considered hardships. Distributions will not be made to the extent a hardship could be relieved through insurance or by liquidation of the Participant’s nonessential assets. The amount of any 









	 	 
distribution hereunder shall be limited to the amount necessary to relieve the Participant’s financial hardship. The determination of whether a
Participant has a qualifying hardship and the amount to be distributed, if any, shall be made by the Administrator in its discretion. The Administrator may require evidence of the purpose and amount of the need, and may establish such application or
other procedures as it deems appropriate. 


  
 6.4  Options.    The Administrator may from time to time grant Options subject to the terms of this Plan, including the specified terms of this Section. 
  
 (a)  Conditions With Respect to Non-Statutory
Stock Options.    Certain Nonstatutory Stock Options (“Performance Grants”) shall, if the Administrator so determines in its discretion, be subject to the following conditions, which conditions shall be stated
within the applicable Award Agreement: 
  
 (i)  At the time of grant, the Administrator may, in its discretion, place additional restrictions on Performance Grants requiring that the Option will vest only if and when, or on an accelerated basis if and when, the Common
Stock price exceeds a specific amount. Generally, Performance Grants will be subject to the same requirements described herein, unless the Administrator decides otherwise. 
  
 (ii)  At the time of grant, the Administrator may, in its discretion, place additional
restrictions on the Performance Grants requiring that on the exercise of such a grant an Employee will purchase Shares that will be forfeited if the Participant terminates employment within a certain number of years. Additional transferability
restrictions may be imposed in connection with Performance Grants. 
  
 (b)  Conditions With Respect to Incentive Stock Options.    Each Incentive Stock Option shall be subject to the following conditions, in addition to those set forth in Section 4.3,
all of which conditions shall be stated within the applicable Award Agreement: 
  
 (i)  To the extent that the aggregate Fair Market Value of Shares (determined as of the time an Option is granted) exercisable
for the first time by a Participant during any calendar year under such Incentive Stock Option and any other Incentive Stock Option issued by the Company or any Subsidiary Corporation or Parent Corporation exceeds $100,000, such excess Incentive
Stock Options shall be deemed Nonstatutory Stock Options. 
  
 (ii)  In no event may any Incentive Stock Option become exercisable later than the date preceding the tenth anniversary date of the grant thereof. 
  
 Any Incentive Stock Option which does not comply with the forgoing
provisions shall not be considered an Incentive Stock Option, and instead shall be considered a Nonstatutory Option issued under this Plan. 
  
 (c)  Option Price.    The Option Price shall be determined by the Administrator (or the Special
Committee), subject to any limitations imposed by this Plan and, in any event, shall not be less than the Fair Market Value on the date of grant in the case of Incentive Stock Options, and shall not be less than eighty-five percent (85%) of the Fair
Market Value in the case of Nonstatutory Stock Options; provided that in the case of Incentive Stock Options granted to a Participant described in Section 4.3 hereof, the Option Price shall not be less than one hundred ten percent (110%) of the Fair
Market Value of Shares on the date of grant. 
  
 (d)  Limitations on Exercise of Options.    Notwithstanding anything contained in this Plan to the contrary: 
  
 (i)  Options may not be exercised until this Plan has been approved by the stockholders as provided in Section 9.8. 

 
 (ii)  Options shall be exercisable in full or
in such equal or unequal installments as the Administrator shall determine; provided that if a Participant does not purchase all of the Shares which the Participant is entitled to purchase on a certain date or within an established installment
period, the Participant’s right to purchase any unpurchased Shares shall continue during the Award Term (taking into account any early termination of such Award Term which may be provided for under this Plan); 









	 	 
provided, further that a Participant who is not an officer, director or consultant shall have the right to exercise at least 20% of the Options granted per
year over five (5) years from the grant date. 


  
 (e)  Method of Exercising Options. 
  
 (i)  Options shall be exercised by a written notice, delivered to the Company at its principal office located at 18872 MacArthur Blvd., Irvine, California, 92612-1400, Attn: Legal Department or such other
address that may be designated by the Company, specifying the number of Shares to be purchased and tendering payment in full for such Shares. Payment may be tendered in cash or by certified, bank cashier’s or teller’s check or by Shares
(valued at Fair Market Value as of the date of tender) that the Participant has owned for at least six months, or some combination of the foregoing or such other form of consideration which has been approved by the Administrator, including any
approved cashless exercise mechanism or a promissory note given by the Participant. The right to deliver in full or partial payment of such Option Price any consideration other than cash shall be limited to such frequency as the Administrator shall
determine in its sole discretion from time to time. In the event all or part of the Option Price is paid in Shares, any excess of the value of such Shares over the Option Price will be returned to the Participant as follows: 
  
 (A)  any whole Share remaining in excess of the
Option Price will be returned in kind, and may be represented by one or more share certificates; and 
  
 (B)  any partial Shares remaining in excess of the Option Price will be returned in cash. 
  
 (ii)  In the event a Participant pays all or part
of the Option Price in Shares, the Administrator shall be entitled as it deems appropriate but solely in its discretion, to award to the Participant additional Options equal to the number of Shares tendered to exercise, provided such Option has an
Option Price equal to Fair Market Value. 
  
 6.5  Stock Appreciation Rights. 
  
 (a)  Granting of Stock Appreciation Rights.    In its sole discretion, the Administrator may from time to time grant Stock Appreciation Rights to Participants either in
conjunction with, or independently of, any Options granted under this Plan. A Stock Appreciation Right granted in conjunction with an Option may be an alternative right wherein the exercise of the Option terminates the Stock Appreciation Right to
the extent of the number of Shares purchased upon exercise of the Option and, correspondingly, the exercise of the Stock Appreciation Right terminates the Option to the extent of the number of Shares with respect to which the Stock Appreciation
Right is exercised. Alternatively, a Stock Appreciation Right granted in conjunction with an Option may be an additional right wherein both the Stock Appreciation Right and the Option may be exercised. A Stock Appreciation Right may not be granted
in conjunction with an Incentive Stock Option under circumstances in which the exercise of the Stock Appreciation Right affects the right to exercise the Incentive Stock Option or vice versa, unless the Stock Appreciation Right, by its terms, meets
all of the following requirements: 
  
 (i)  the Stock Appreciation Right will expire no later than the Incentive Stock Option; 
  
 (ii)  the Stock Appreciation Right may be for no more than the difference between the Option Price of the Incentive Stock Option
and the Fair Market Value of the Shares subject to the Incentive Stock Option at the time the Stock Appreciation Right is exercised; 
  
 (iii)  the Stock Appreciation Right is transferable only when the Incentive Stock Option is transferable, and under the same
conditions; 
  
 (iv)  the Stock
Appreciation Right may be exercised only when the Incentive Stock Option may be exercised; and 
  
 (v)  the Stock Appreciation Right may be exercised only when the Fair Market Value of the Shares subject to the Incentive Stock
Option exceeds the Option Price of the Incentive Stock Option. 







 (b)  Option Price.    The Option Price as to
any particular Stock Appreciation Right shall not be less than the Fair Market Value of the Shares on the date of grant. 
  
 (c)  Timing of Exercise.    The provisions of Section 6.4(d) regarding the period of exercisability
of Options are incorporated by reference herein, and shall determine the period of exercisability of Stock Appreciation Rights. 
  
 (d)  Exercise of Stock Appreciation Rights.    A Stock Appreciation Right granted hereunder shall be
exercisable at such times and under such conditions as shall be permissible under the terms of this Plan and of the Award Agreement granted to a Participant, provided that a Stock Appreciation Right may not be exercised for a fractional Share. Upon
exercise of a Stock Appreciation Right, the Participant shall be entitled to receive, without payment to the Company, an amount equal to the excess of (or, in the discretion of the Committee if provided in the Award Agreement, a portion of) the
excess of the then aggregate Fair Market Value of the number of Shares with respect to which the Participant exercises the Stock Appreciation Right, over the aggregate Option Price of such number of optioned Shares. This amount shall be payable by
the Company, at the discretion of the Committee, in cash or in Shares valued at the then Fair Market Value thereof, or any combination thereof. 
  
 (e)  Procedure for Exercising Stock Appreciation Rights.    To the extent not inconsistent herewith,
the provisions of Section 6.4(e) as to the procedure for exercising Options are incorporated by reference, and shall determine the procedure for exercising Stock Appreciation Rights. 
  
 6.6  Non-Transferability. 
  
 (a)  General.    Except as set forth in Section 6.6(c) below, and
subject to Section 6.6(d) Awards may not be sold, pledged, assigned, hypothecated, transferred, or otherwise encumbered or disposed of other than by will or by the laws of descent or distribution, and except as specifically provided in this Plan or
the applicable Award Agreement. During a Participant’s lifetime, an Option or Stock Appreciation Right shall only be exercisable by the Participant. Furthermore, unless the applicable Award Agreement provides otherwise, additional Shares or
other property distributed to the Participant in respect of Awards, as dividends or otherwise, shall be subject to the same restrictions applicable to such Award. 
  
 (b)  Special Rule for Beneficiaries.    The designation of a
beneficiary by a Participant will not constitute a transfer. In the absence of a validly designated beneficiary, a Participant’s beneficiary shall be his or her estate. 
  
 (c)  Limited Transferability Rights.    To the extent specifically
authorized by the Administrator in an Award Agreement or amendment thereto, any Participant may transfer Awards (other than Incentive Stock Options) either by gift to immediate family, or by instrument to an inter vivos or testamentary trust
in which the Awards are to be passed, upon the death of the grantor, to beneficiaries who are immediate family (or otherwise approved by the Administrator). 
  
 (d)  Permitted transfer of an Award (including but not limited to a transfer by will or by the laws of descent and distribution)
shall not be effective to bind the Company unless the Company shall have been furnished with written notice thereof and an authenticated copy of such evidence (e.g., an executed will or trust) as the Administrator may deem necessary to establish the
validity of the transfer and the acceptance by the transferee of the terms and conditions of such Award. 
  
 6.7  Award Term.    The Award Term shall be determined by the Administrator at the time of grant, subject to any
limitations imposed by this Plan, but in any event shall not be more than ten years from the date such Award is granted (five years under the circumstances described in Section 4.3(b)). Awards may be subject to earlier termination as provided in
this Plan. 
  
 6.8  Withholding Tax. 

 
 (a)  In the event the Company determines that
it is required to withhold income tax in connection with an Award (for instance, as a result of the exercise of an Option as a condition for the exercise thereof), the 









	 	 
Participant may be required to make arrangements satisfactory to the Company to enable it to satisfy such withholding requirements. Payment of such
withholding requirements may be made, in the discretion of the Administrator, (i) in cash, (ii) by delivery of Shares registered in the name of the Participant having a Fair Market Value at the time the Participant becomes subject to income tax
equal to the amount to be withheld and that have been held by the Participant for more than six months, (iii) by the Company retaining or not issuing such number of Shares subject to the Award as have a Fair Market Value at the time the Participant
becomes subject to income tax equal to the amount to be withheld or (iv) any combination of (i), (ii) and (iii) above. 


  
 (b)  The Administrator shall be entitled as it deems appropriate to make available for issuance under this Plan Shares tendered
by a Participant as payment of the price for any Shares used to satisfy the Company’s withholding requirements. 
  
 6.9  Rights in the Event of Sale, Merger or Other Reorganization.    Except as expressly provided in Section 5.2 and
this Section, the Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by
reason of any dissolution, liquidation, merger or consolidation or spin-off of assets or stock of another corporation, and any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall
not affect, and no adjustment by reason thereof shall be made with respect to, the number or price (if applicable) of Shares subject to an Award. The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. In any such event:

  
 (a)  Unless otherwise provided in
the Award Agreement for any given Award, notwithstanding anything in the Plan to the contrary, upon any such merger (other than a merger in which the Company is the surviving corporation as described in Section 5.2(b) and under the terms of which
the shares of Common Stock outstanding immediately prior to the merger remain outstanding and unchanged), consolidation, or sale or transfer of assets, all rights of the Participant with respect to the unvested portion of any Restricted Share or
Deferred Share Award or the unexercised portion of any Stock Appreciation Right or Option shall become immediately vested, and any Option or Stock Appreciation Right may be exercised immediately, except to the extent that any agreement or
undertaking of any party to any such merger, consolidation, or sale or transfer of assets, shall make specific provision for the assumption of the obligations of the Company with respect to this Plan and the rights of Participants with respect to
Awards granted hereunder. 
  
 (b)  Unless otherwise provided in the Award Agreement for any given Award, upon any such liquidation or dissolution, all rights of the Participant with respect to the unvested portion of any Award shall wholly and completely
terminate and all Awards shall be canceled at the time of any such liquidation or dissolution, except to the extent that any plan pursuant to which such liquidation or dissolution is effected, shall make specific provision with respect to this Plan
and the rights of Participants with respect to Awards granted hereunder. 
  
 (c)  Notwithstanding anything to the contrary herein, to the extent provided in the Award Agreement for any given Award, upon a Change of Control (as defined herein), (i) all rights of the Participant with
respect to the unvested portion of any Restricted Share or Deferred Share Award, and the unexercised portion of any Option or Stock Appreciation Rights shall fully vest and become exercisable as provided in such Award upon the effective date of any
such Change of Control, (ii) the Company will honor any special distribution election that the Participant makes more than 90 days before the Change in Control, provided the distribution form is complete within five years thereafter, and (iii) the
Company shall pay the Participant an amount reasonably expected to hold the Participant harmless from any excise taxes imposed on the Participant under Section 4999 of the Code, applicable regulations, or any successor thereto. 
  
 Notwithstanding the foregoing, the holder of any such Award or right
theretofore granted and still outstanding shall have the right immediately prior to the effective date of such merger, consolidation, sale or 








 
transfer of assets, liquidation or dissolution to pay the purchase or exercise price, if any, for such Award in whole or in part without regard to any
installment provision that may have been made part of the terms and conditions of such Award or right; provided, that any conditions precedent to such purchase set forth in the Award Agreement have occurred or been waived. In no event, however, may
any Incentive Stock Option that becomes exercisable pursuant to this Section 6.9 be exercised, in whole or in part, later than the date preceding the tenth anniversary date of the grant thereof, and in no case may an Incentive Stock Option granted
to a Participant described in Section 4.3 be exercised in whole or in part, later than the date preceding the fifth anniversary date of the grant thereof. 
  
 (d)  Definition of “Change in Control.”    For purposes of this Plan, “Change in
Control” shall be defined as: 
  
 A.  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. 
  
 B.  The individuals who, as of January 1, 2003,
constitute the Board (the “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. 
  
 C.  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: 
  
 i.  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 
  
 ii.  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; or 
  
 D.  Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
  
 6.10  Restricted Share and Deferred Share Award Rights in the
Event of Death, Total and Permanent Disability, or Termination.    Unless otherwise provided in an Award Agreement for any given Restricted Share or Deferred Share Award, if a Participant’s employment or business
relationship with or service to the Company is terminated on account of the Participant’s death, Total and Permanent Disability, retirement, or without cause (as determined by the Administrator based on any definitions utilized by the Company
in any other plan or 








 
written agreement), vesting on all outstanding Restricted Share and Deferred Share Awards may accelerate to 100% at the discretion of the Administrator.

  
 6.11  Option and Stock Appreciation Right Award
Rights in the Event of Death, Total and Permanent Disability, or Termination. 
  
 (a)  Rights in the Event of Death.    Unless otherwise provided in the Award Agreement for any given
Option or Stock Appreciation Right, if a Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board is terminated on account of death, the person or persons who shall have
acquired the right, by will or the laws of descent and distribution, to exercise the Participant’s Options shall continue to have (subject to Sections 6.4(b) and 6.4(d) above) the right, for a period of at least six (6) months from the date of
termination by death or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options which such Participant would have been entitled to exercise on the Participant’s death. At the expiration of such
period any such Options or Stock Appreciation Rights which remain unexercised shall expire. Unless the Administrator provides otherwise in the Award Agreement, any Options or Stock Appreciation Rights that could not have been exercised by a
Participant as of the Participant’s death may not be exercised. 
  
 (b)  Rights in the Event of Total and Permanent Disability.    Unless otherwise provided in the Award Agreement for any given Option or Stock Appreciation Right, if a
Participant’s employment or business relationship with or service to the Employer Company or service as a member of the Board is terminated on account of Total and Permanent Disability, the Participant shall have (subject to Sections 6.4(b) and
6.4(d) above) the right, for a period of at least six (6) months from the date of termination by disability or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options or Stock Appreciation Rights
which such Participant would have been entitled to exercise on the date of such Participant’s Total and Permanent Disability. At the expiration of such period any such Options or Stock Appreciation Rights which remain unexercised shall expire.
Unless the Administrator provides otherwise in the Award Agreement, any Options or Stock Appreciation Rights that could not have been exercised by a Participant on the date of such Participant’s Total and Permanent Disability may not be
exercised. 
  
 (c)  Rights in the
Event of Termination of Employment or Service.    Unless otherwise provided in the Award Agreement for any given Option or Stock Appreciation Right, in the event that a Participant’s employment or business relationship
with or service to the Employer Company or service as a member of the Board terminates, other than by reason of death or Total and Permanent Disability and other than due to termination for “Cause,” the Participant shall have (subject to
Sections 6.4(b) and 6.4(d) above) the right, for a period of at least thirty (30) days from the date of such termination or such longer period (if any) as may be specified in the applicable Award Agreement, to exercise any Options or Stock
Appreciation Rights which such Participant would have been entitled to exercise on the date of such Participant’s termination. At the expiration of such period any such Options which remain unexercised shall expire. Unless the Administrator
provides otherwise in the Award Agreement any Options or Stock Appreciation Rights that could not have been exercised by a Participant on the date of such Participant’s termination of employment or service as a member of the Board or business
relationship may not be exercised. Notwithstanding the foregoing, if the employment or service of or business relationship with a Participant is terminated for “Cause” by the Employer Company, the Company may notify the Participant that
any Options not exercised prior to the termination are cancelled. For purposes hereof and unless the Administrator provides otherwise in the Award Agreement, a termination of service or business relationship for “Cause” shall include
dismissal as a result of (1) Participant’s conviction of any crime or offense involving money or other property of the Company or its subsidiaries or which constitutes a felony in the jurisdiction involved; (2) Participant’s gross
negligence, gross incompetence or willful gross misconduct in the performance of his or her duties; or (3) Participant’s willful and material failure or refusal to perform his or her duties. 







 SECTION 7 
  
 SHARES ISSUED PURSUANT TO AN AWARD 
  
 7.1  Issuance of Certificates.    The Company shall not be required to issue or deliver any certificate for Shares
issued pursuant to any Award including upon exercise of a Stock Appreciation Right or Option, or any portion thereof, prior to fulfillment of all of the following applicable conditions: 
  
 (a)  The admission of such Shares to listing on all stock exchanges or markets on which the Shares
are then listed to the extent such admission is necessary; 
  
 (b)  The completion of any registration or other qualification of such Shares under any federal or state securities laws or under the rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body, which the Board shall in its sole discretion deem necessary or advisable, or the determination by the Board in its sole discretion that no such registration or qualification is required; 
  
 (c)  The obtaining of any approval or other
clearance from any federal or state governmental agency which the Board shall, in its sole discretion, determine to be necessary or advisable; and 
  
 (d) The lapse of such reasonable period of time which the Board or Committee may establish for reasons of administrative convenience
following the date a Participant becomes entitled to receive unrestricted Shares pursuant to an Award. 
  
 7.2  Compliance with Securities and Other Laws.    In no event shall the Company be required to sell, issue or
deliver Shares pursuant to Awards if in the opinion of the Company the issuance thereof would constitute a violation by either the Participant or the Company of any provision of any law or regulation of any governmental authority or any securities
exchange or market. As a condition of any sale or issuance of Shares pursuant to Awards, the Company may place legends on the Shares, issue stop-transfer orders and require such agreements or undertakings from the Participant as the Company may deem
necessary or advisable to assure compliance with any such law or regulation, including if the Company or its counsel deems it appropriate, representations from the Participant that the Participant is acquiring the Shares solely for investment and
not with a view to distribution and that no distribution of the Shares acquired by the Participant will be made unless registered pursuant to applicable federal and state securities laws or unless, in the opinion of counsel to the Company, such
registration is unnecessary. 
  
 7.3  Requirements in
the Event of a Disposition of Incentive Stock Option Shares.    Any Participant, or person representing such Participant, who sells, exchanges, transfers or otherwise disposes of any Shares acquired pursuant to the exercise
of an Incentive Stock Option within two (2) years following the grant of such Incentive Stock Option or within one (1) year following the actual transfer of such Shares to the Participant, shall be obligated to notify the Company in writing of the
date of disposition, the number of Shares so disposed and the amount of consideration received as a result of such disposition. The Company shall have the right to take whatever reasonable action it deems appropriate against a Participant, including
early termination of any Options which remain outstanding, in order to recover any additional taxes the Company incurs as a result of such Participant failure to so notify the Company. 
  
 7.4  Legend.    All certificates for Shares purchased upon the exercise of an Incentive
Stock Option may bear a legend indicating that such Shares were issued pursuant to an Incentive Stock Option grant. 
  
 SECTION 8 
  
 TERMINATION, AMENDMENT AND MODIFICATION OF PLAN 
  
 8.1  Board Termination, Amendment and Modification of Plan.    The Board may at any time amend or modify this Plan; provided, however, that no such action of the Board shall take effect without approval
of the 








 
stockholders of the Company to the extent such approval is required by applicable law or determined by the Board to be necessary or desirable for any reason
(including but not limited to the satisfaction of listing requirements on a stock exchange). Notwithstanding anything to the contrary, the Board shall be entitled to adjust the Option Price with respect to any outstanding Option or Stock
Appreciation Right at any time provided that the Participant shall so consent. 
  
 8.2  Plan Termination.    Unless terminated earlier as provided in Section 8.1, this Plan shall terminate ten (10) years from the date this amendment and restatement is adopted by
the Board and no Award shall be granted under this Plan after such expiration date. Termination of this Plan shall not alter or impair any of the rights or obligations under any Award theretofore granted under this Plan unless the Participant shall
so consent. 
  
 8.3  Effect of Termination, Amendment
or Modification of Plan.    Notwithstanding Sections 8.1 and 8.2, no termination, amendment or modification of this Plan shall in any manner affect any Award theretofore granted under this Plan without the written consent of
the Participant or a person who shall have acquired the right to the Award by will or the laws of descent and distribution. 
  
 SECTION 9 
  
 MISCELLANEOUS 
  
 9.1  Non-assignability of Awards.    No Award shall be assignable or transferable by the Participant except pursuant to Section 6.6 hereof. 
  
 9.2  Leaves of Absence.    Unless the Administrator determines otherwise, the vesting
of an Award granted under this Plan shall not be tolled during any unpaid leave of absence taken by a Participant. 
  
 9.3  No Rights to Employment or Provide Service.    Nothing in this Plan or in any Award granted hereunder or in any
Award Agreement relating thereto shall confer upon any individual the right to continue employment with or to provide service to the Employer Company or service as a member of the Board. 
  
 9.4  Purchase Offer.    The Administrator may offer to purchase, for cash or Shares,
any Award granted hereunder and such offer to purchase any Award shall be on such terms and conditions as the Administrator establishes and communicates to the Participant at the time the offer is extended to the Participant. 
  
 9.5  Binding Effect.    This Plan shall
be binding upon the successors and assigns of the Company. 
  
 9.6  Singular, Plural, Gender.    Whenever used herein, except where the context clearly indicates to the contrary, nouns in the singular shall include the plural, and the masculine pronoun shall include
the feminine gender. 
  
 9.7  Headings.    Headings of the Sections hereof are inserted for convenience and reference and constitute no part of this Plan. 
  
 9.8  Effective Date; Ratification by Stockholders.    The terms of this Plan shall
become effective upon the approval of the stockholders of the Company, by a majority of the votes cast at a meeting held within 12 months after the date on which this Plan received Board approval. If this Plan is not duly approved by the
Company’s stockholders, this Plan shall become null and void and of no force or effect, however, the autobytel.com inc. 2001 Restricted Stock Plan approved by the Company’s stockholders on August 14, 2001 shall nevertheless remain in full
force and effect. 
  
 9.9  Rights as
Stockholder.    Any Participant or transferee of an Award shall have no rights as a stockholder with respect to any Shares subject to such Award prior to the date on which the Participant becomes entitled to 








 
receive unrestricted Shares or exercise Options or Stock Appreciation Rights pursuant to the Plan, as provided herein. 
  
 9.10  Applicable Law.    This Plan and
the Awards granted hereunder shall be interpreted, administered and otherwise subject to the laws of the State of Delaware, without giving effect to the principles of conflict of laws thereof. 
  
 9.11  Reports.    The Company will
comply with all applicable reporting and tax requirements applicable to Awards under the Code.