Document:

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                                                                   EXHIBIT 10.17

             AMENDMENT NUMBER 1 TO INTERACTIVE MARKETING AGREEMENT

               This Amendment (this "Amendment") dated as of April 19, 2000 (the
"Amendment Date"), is by and between America Online, Inc. ("AOL"), a Delaware
corporation, with offices at 22000 AOL Way, Dulles, Virginia 20166, and
Autoweb.com ("MP" or "Autoweb"), a DELAWARE corporation, with offices at 3270
Jay Street, Santa Clara, CA 95054, and shall amend that certain Interactive
Marketing Agreement (the "Agreement") dated June 30, 1999, by and between AOL
and MP. Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to them in the Agreement.

                                  INTRODUCTION

               1. The Parties have reviewed the performance of the relationship
created to the Agreement and have now desire to expand the relationship further
in accordance with the Terms of this Amendment.

               2. Except as specifically amended by this Amendment, the Parties
desire that the Agreement remain in full force and effect.

                                      TERMS

A.      DEVELOPMENT AND INTEGRATION OF NEW PRODUCTS.

        A.1     RESEARCH & DECISION GUIDES.

                A.1(a)  Contemporaneous with the execution of this Amendment,
                        the Parties shall execute and deliver a Confidential
                        Technology and Data License Agreement (the "Technology
                        and Data License Agreement") in the form of Exhibit C
                        attached hereto. In the event of any conflict between
                        the terms of this Agreement and the terms of Exhibit C,
                        the terms of Exhibit C shall control. Pursuant to the
                        terms of the Technology and Data License Agreement, MP
                        will work with AOL to integrate the licensed data (the
                        "Licensed Data") into AOL's PersonaLogic automobile
                        decision guide (the "PL Decision Guide"), as more fully
                        described in Schedule 1. MP covenants that it will
                        provide AOL during the Term with all additions to,
                        expansions or refinements of, or enhancements to the
                        Licensed Data for no additional cost.

                A.1(b)  For the duration of the Term, AOL hereby grants MP a
                        non-exclusive license to distribute an MP-branded
                        version of the PL Decision Guide as designated by AOL on
                        MP's generally available web site, but MP may neither
                        (i) sublicense or assign any of its rights in such PL
                        Decision Guide to, nor (ii) distribute such PL Decision
                        Guide with the products of, any other third party. AOL
                        will license to MP for use on its generally available
                        web site any proprietary software necessary to support
                        such PL Decision Guide. In the event that MP fails to
                        comply with the requirements of this Section A.1(b), AOL
                        may, upon written notice, revoke the license granted
                        hereunder and the other provisions of the Agreement
                        shall continue in full force and effect.

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

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        A.2     CONFIGURATION & COMPARISON. Contemporaneous with the execution
                of this Amendment, the Parties shall execute and deliver the
                Technology and Data License Agreement referenced above. Pursuant
                to the terms of and as set forth in the Technology and Data
                License Agreement, MP will develop and License to AOL the
                Technology specified in the Technology and Data License
                Agreement (the "Licensed Technology"), provided, however, that
                AOL may use any or all of the Licensed Technology at its option
                and shall not be required to use all of such Licensed
                Technology. MP covenants that it will provide AOL during the
                Term with all additions to, expansions or refinements of, or
                enhancements to the Licensed Technology for [**].

        A.3     BUYING SERVICE.

                A.3(a)  As more fully described in Schedule 1, MP shall create a
                        customized version of its buying service (the "Buying
                        Service") which will be seamlessly integrated with the
                        PL Decision Guide, the Configuration and Comparison
                        services and other areas of the AOL Network as mutually
                        agreed by the Parties. The Buying Service will provide
                        AOL Users with the best available pricing and services
                        and in no way will disadvantage AOL Users. AOL shall own
                        all AOL-specific customization and MP shall have no
                        right to assign or transfer any rights to such
                        customization to any third party. No [ ** ] shall be
                        referenced or promoted (i) within the Promo Content of
                        any Promotion or (ii) within the first screen of the
                        Buying Service linked to any Promotion.

                A.3(b)  As more fully described in Schedule 1, the Buying
                        Service will be hosted and managed by MP and will be
                        co-branded according to AOL's standard co- branding
                        requirements, including without limitation, co-branded
                        URL, headers and footers. The Buying Service shall be a
                        "cul-de-sac" area of the Affiliated MP Site. MP shall
                        provide navigation back to the AOL Network in a manner
                        reasonably acceptable to AOL and shall not contain
                        navigation to other areas of the Affiliated MP Site or
                        any third party site (other than through advertising or
                        integrated auto-related transaction service links (e.g.,
                        financing, insurance or warranty offers)).

                A.3(c)  Subject to AOL's advertising policies, MP will control
                        the advertising and commerce opportunities on the Buying
                        Service; provided, however, that no advertisements in
                        any category for which AOL has an exclusive relationship
                        shall be included within the first or second level
                        screens of the Buying Service (i.e., must be at least
                        two "clicks" down into the Buying Service). Without
                        AOL's prior written approval, MP will not, within the
                        Buying Service, promote any original equipment
                        manufacturer ("OEM") in a manner greater than it
                        promotes any other OEM (i.e., conquesting) or allow for
                        conquesting by OEMs of other OEMs with whom AOL has
                        entered into an agreement. Notwithstanding the
                        foregoing, MP will integrate specified AOL partners into
                        the AOL Auto Channel, including without limitation,
                        those entities listed on Schedule 2.

        A.4     PRODUCT INTEGRATION AND REQUIREMENTS.

                A.4(a)  PRODUCT REQUIREMENTS. All initial products for the AOL
                        Properties shall meet the relevant requirements set
                        forth on Schedule 1. AOL and MP will meet at a mutually
                        agreeable location, as appropriate, to discuss and
                        define all new product

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

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                        requirements for the AOL Properties on an ongoing basis.
                        In the event that they identify any new licensing or
                        development opportunities, the Parties will discuss in
                        good faith the terms of such licensing or development.

                A.4(b)  BRANDING. As more fully described in Schedule 1, the
                        Configuration and Comparison pages (collectively, the
                        "Ingredient Branded Areas") developed and hosted by MP
                        and displayed on the AOL Properties will be branded
                        employing an ingredient branding approach. AOL will be
                        prominently branded and MP branding will be present on
                        all such pages (e.g., "Powered by Autoweb") above the
                        fold in overall prominence consistent with the
                        ingredient-branding requirements included as Exhibit E
                        hereto. Pages hosted by or provided by a third party
                        shall incorporate branding for such third party. Content
                        used throughout any co-branded areas may include
                        attribution by using the providing party's name or logo.
                        The Parties will mutually agree upon appropriate
                        branding for such third party. To the extent such
                        communications are permitted under the Agreement, all
                        marketing communications from MP to AOL Users (i.e.,
                        emails, etc.) will be co-branded with AOL and MP. MP
                        will design each page within the Ingredient Branded
                        Areas based on the AOL design guideline templates and
                        ingredient-branding requirements. AOL will have design
                        approval rights for user interface elements and all
                        pages. AOL shall have the right to change or modify its
                        design guideline templates and ingredient-branding
                        requirements at any time and from time to time during
                        the Term; provided, however, that notwithstanding such
                        change or modification, AOL shall not have the right to
                        (i) alter or modify the content of MP's proprietary
                        logos or marks or (ii) reduce the overall prominence of
                        MP's branding within the Ingredient Branded Areas.
                        Buying Service pages will be co- branded according to
                        AOL's standard co-branding requirements for partner
                        pages.

        A.5     ADVERTISING. AOL will sell and serve all advertising,
                revenue-generating, and promotional positions (including
                sponsorships) in all Ingredient Branded Areas. MP may not
                incorporate or link from the Ingredient Branded Areas to any
                promotional, advertising, sponsorship or otherwise commercial
                elements without AOL's prior written approval, and in no event
                shall sell or serve advertising in the Ingredient Branded Areas.

        A.6     PRODUCTION AND HOSTING. Subject to AOL's discretion, AOL shall
                host the following pages: PL Decision Guide pages, static
                navigation pages and content pages. MP will host all pages of
                the Ingredient Branded Areas and the Buying Service. MP will
                provide AOL with an acceptable 24x7 technical support plan. MP
                will optimize the performance of the Ingredient Branded Areas
                and the Buying Service for integration throughout the AOL
                Properties. MP will provide, maintain, and support all necessary
                software and hardware. All pages within the Ingredient Branded
                Areas developed by MP will be hosted under an AOL domain name
                (i.e., AutoWeb.AOL.com). MP will modify links within such pages
                to re-circulate users to the AOL Properties. MP will ensure that
                all AOL Users in the Ingredient Branded Areas will not be able
                to access any links to MP's generally available Web site.
                Hosting may be migrated to AOL upon the mutual agreement of the
                Parties.

        A.7     CUSTOMIZATION. MP will customize throughout the AOL Properties
                as follows:

                A.7(a)  Within the Buying Service and Ingredient-Branded Areas,
                        MP shall provide continuous navigational ability for AOL
                        Users to return to an agreed upon point

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

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                        on the applicable AOL Property. In addition, MP shall
                        provide links back to AOL-designated points in the AOL
                        Network from within each particular tool or
                        functionality within the Auto Channel.

                A.7(b)  Upon AOL's reasonable and appropriate request, MP shall
                        use AOL's tools and technology for chat, message boards,
                        Quick Checkout, Search and such other tools and
                        technology as the Parties may mutually agree. In the
                        event that the addition of such tools and technology
                        would require MP to incur material costs of
                        installation, AOL shall reimburse MP for time and
                        material costs in accordance with Section E below.

        A.8     USER REGISTRATION. If AOL Users are required to register to
                access certain features within the Ingredient Branded Areas,
                such registration processes will be seamlessly integrated with
                AOL's "universal Registration" or "SNAP" system (or such other
                system developed by AOL), shall be subject to AOL's reasonable
                approval and be consistent with AOL's then-current privacy
                policy. In the event that such integration would require MP to
                incur material costs of development, AOL shall reimburse MP for
                the cost of time and materials in accordance with Section E
                below, unless MP provides such integration for any other
                interactive Service

        A.9     RECORDING OF TRAFFIC; DOMAINS AND URL'S. All pages of the Buying
                Service and the Ingredient Branded Areas will be served from an
                AOL.com domain with the following URL: AutoWeb.AOL.com. MP will
                report traffic and click-through data according to AOL third
                party reporting guidelines. To the maximum extent available MP
                and AOL shall cause third party reporting agencies to mutually
                record unique visitor traffic and page views to allow for both
                Parties to receive traffic credit.

B.      OEM ACCOUNTS; CUSTOM DEVELOPMENT.

        B.1     AOL will lead sales efforts to all auto manufacturers as such
                efforts pertain to the AOL Properties. Sales to those accounts
                named in Schedule 2 may consist of co-branding with the OEM the
                functionality that exists in the Ingredient Branded Areas, as
                set forth in Schedule 1 and subject to the Technology and Data
                License Agreement; provided that MP shall receive branding
                attribution of prominence consistent with Exhibit E and provided
                that such co-branding with the OEM shall not include
                sublicensing of any licensed materials for use on the OEM's web
                site. MP will host all such pages.

        B.2     With respect to the customization or enhancement of the Licensed
                Technology or additional servers or programming required to
                implement the sales efforts by AOL to OEMs described above, MP
                shall be entitled to reimbursement for time and materials in
                accordance with Section E below. Unless the Parties shall
                otherwise agree, in the event that AOL reimburses MP for all
                costs of time and materials incurred by MP in developing such
                enhancements or customizations, AOL shall own and MP shall have
                no rights in, including, without limitation, the right to use or
                convey, any such enhancements or customizations. In the event
                that AOL requests that MP develop new functionality (as distinct
                from the enhancements or customizations of the Licensed
                Technology referenced above), the terms of such development
                shall be on an as negotiated basis between the Parties
                consistent with Section E below.

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

                                      -4-

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C.      FINANCIAL SERVICES PARTNERS. AOL financial services partners identified
        in Schedule 3 will be integrated in the Finance, Insurance, and Warranty
        portions of the Ingredient Branded Areas for purposes of promoting their
        loan, lease, insurance and warranty products. AOL reserves the right to
        sign deals with additional financial service partners and update
        Schedule 3 on an ongoing basis. MP will undertake efforts required to
        integrate these additional partners into the automotive offering, as
        specified by AOL. MP will be under no obligation to integrate AOL
        category partners into the MP Buying Service or Affiliated MP Site. MP
        shall be entitled to reimbursement for time and materials required in
        connection with its performance under this Section C in accordance with
        Section E below.

D.      BUYING SERVICE PARTNERS. MP will undertake efforts required to integrate
        AOL buying channel partners, including, without limitation, those listed
        on Schedule 4, which schedule AOL may update from time to time in its
        discretion, into the AOL Auto Channel, including, without limitation,
        into the Ingredient Branded Areas, as specified by AOL. MP shall be
        entitled to reimbursement for time and materials required in connection
        with its performance under this Section D in accordance with Section E
        below.

E.      TIME AND MATERIALS. To the extent specifically required under the terms
        of this Amendment, AOL will reimburse MP for ongoing work product and
        deliverables not specified in Schedule 1 in accordance with the
        following: prior to commencement of work for which MP intends to seek
        reimbursement, MP shall present AOL with a detailed proposal for
        determining the measure of reimbursable items. If AOL shall accept such
        proposal in writing prior to the commencement of such work, AOL shall
        reimburse MP in accordance with the terms of such proposal. If AOL does
        not accept in writing such proposal, Autoweb shall be under no
        obligation to perform the services outlined in said proposal.

F.      ROLLOUT SCHEDULE. MP shall deliver the Licensed Data to AOL as required
        under Section A of this Amendment within [ ** ] of the Amendment Date.
        MP shall launch the Buying Service on or before [ ** ]. MP shall deliver
        to AOL beta versions of the Licensed Technology required under Section
        A.2 above on or before [ ** ] and final versions of such deliverables on
        or before [ ** ]. The above time frames are based on limited knowledge
        of AOL systems and platforms. As a result, these estimates are subject
        to certain dependencies, including the ability to quickly interface to
        and/or integrate with the AOL platforms, timely access to developmental
        personnel familiar with such platforms, timely access to AOL personnel
        to assist in defining development and architecture, and timely access to
        documented AOL code and dually conversant personnel.

G.      USER DATA. OL and MP will jointly and severally own all end user data
        collected by MP in conjunction with the use of the Ingredient Branded
        Areas. MP will not sell or provide any AOL User information (e.g., names
        and email addresses) to a third party for any purpose, without the
        written consent of AOL.

H.      CUSTOMER SERVICE. MP shall maintain a level of customer service and
        responsiveness as AOL shall reasonably request. At a minimum, MP shall
        respond promptly to any AOL request for assistance (e.g., fixes to the
        Licensed Technology) and, if such request relates to a mission critical
        matter, endeavor to completely address AOL's request within 24 hours or
        such shorter period of time if the circumstances so demand.

I.      CONTINUED POINTERS. Upon the completion of the Term, for a period of [
        ** ] (the "Continued Link Period"), if AOL elects to (a) promote one or
        more "pointers" or links from

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

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        AOL to the Affiliated MP Site and (b) use MP's trade names, trademarks
        and service marks in connection with such promotion. During the
        Continued Link Period, MP shall pay to AOL on a quarterly basis within [
        ** ] following the end of the quarter in which such amounts were
        generated, [ ** ] for each AOL Purchase Request submitted during such
        Continued Link Period.

J.      AFFILIATE MARKETING PROGRAM. At MP's option, MP shall participate in the
        AOL Affiliate Marketing program and abide by the terms and conditions of
        the AOL Affiliate Marketing Program Agreement. MP's participation in the
        AOL Affiliate Marketing program shall require that AOL will be
        prominently featured on the Autoweb.com website. AOL will compensate MP
        for each Qualified New AOL Member (as defined hereafter) attained
        through these promotions. A Qualified New AOL Member is a member of AOL
        acquired through customer acquisition efforts pursuant to this
        Agreement, who, (i) registers for the AOL Service during the Term of the
        Agreement, using MP's special promotion identifier, and (ii) who pays
        the then-standard fees required for membership to the AOL Service
        through at least two consecutive billing cycles.

K.      PREMIER PARTNER OPPORTUNITY AND QUARTERLY PRODUCT MEETINGS. MP will
        provide AOL during the Term with all additions to, expansions or
        refinements of, or enhancements to the Licensed Data and Licensed
        Technology. Additionally, MP shall (i) meet quarterly with AOL during
        the Term to offer all generally available new products, if any, to AOL
        and, (ii) subject to MP's current agreements with third parties, make
        such products available to AOL on the same or equivalent terms (i.e., at
        the same cost) paid by other similarly situated MP partners
        ("Non-Discriminatory Terms"). Additionally, without limiting the
        generality of the foregoing, subject to the signing of a licensing
        agreement between MP and AOL, MP shall license to AOL on
        Non-Discriminatory Terms: (a) new products that it licenses to [ ** ] or
        its successor; (b) the "My Auto" product; and (c) new products that are
        offered to two or more Interactive Services.

L.      CARRIAGE.

        L.1     AMENDMENT OF CARRIAGE PLAN. Exhibit A of the Agreement shall be
                amended and restated in its entirety to read as set forth on
                Exhibit A of this Amendment.

        L.2     IMPRESSIONS COMMITMENT. The first sentence of Section 1.2 of the
                Agreement is hereby deleted and replaced in its entirety with
                the following:

                        During the Initial Term, AOL shall deliver [ ** ]
                        Impressions to MP through the Promotions (the
                        "Impressions Commitment").

                The Parties agree and acknowledge that as of the Amendment Date
                [** ] Impressions have been delivered by AOL under the
                Agreement.

        L.3     FIXED PLACEMENT. Notwithstanding any provision of the Agreement
                or this Amendment to the contrary:

                L.3(a)  The Impressions set forth on Exhibit A which are
                        designated on such Exhibit As Product Page Impressions
                        shall be permanent placements on the new car product
                        pages (the "Product Pages") and shall not be subject to
                        replacement by AOL as otherwise permitted under Section
                        1.1 of the Agreement; provided that this

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

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                        provision shall have no affect on AOL's right to
                        redesign any part of the AOL Network. Accordingly, AOL
                        shall be required to deliver without substitution during
                        any contract year the number of Impressions set forth on
                        Exhibit A (the "Minimum Delivery Number").
                        Notwithstanding the attainment of the Minimum Delivery
                        Number, until MP shall deliver the notice required under
                        Section L.3(c) below, AOL shall continue the placements
                        designated on Exhibit A as "Product Page Impressions" as
                        a permanent placement; provided that notwithstanding the
                        foregoing, MP agrees and acknowledges that the [ ** ]
                        Product Page Impressions shall not be permanent. The
                        number of Product Page Impressions delivered in any
                        contract year in excess of the Minimum Delivery Number
                        shall be referred to herein as the "Product Page
                        Impressions Overdelivery Amount". As used herein, a
                        contract year of this agreement shall be the period
                        between the Amendment Date and the first anniversary
                        date of the Amendment and successive twelve month
                        periods during the Term.

                L.3(b)  Prior to the date which is [ ** ] days after AOL's
                        receipt of a Permanent Placement Termination Notice, MP
                        shall be required to pay AOL on the next Payment Date as
                        additional consideration an amount equal to (x)(i) the
                        Product Page Impressions Overdelivery Amount delivered
                        between such Payment Date and the immediately preceding
                        Payment Date, divided by (ii) one thousand, multiplied
                        by (y) [ ** ].

                L.3(c)  In the event that MP desires that AOL discontinue its
                        maintenance of the Product Page Impressions as a
                        permanent placement, MP shall deliver to AOL a notice to
                        such effect referencing this Section L.3(c) (a
                        "Permanent Placement Termination Notice"). Ninety (90)
                        days after receipt of such Permanent Placement
                        Termination Notice, AOL shall have no obligation to
                        reserve Product Page Impressions for MP in excess of the
                        Minimum Delivery Number and MP shall have no further
                        obligation to pay for any Product Page Impressions
                        Overdelivery Amount; provided that AOL shall reserve at
                        all times during the Term the right to substitute
                        Product Page Impressions for other Impressions reflected
                        on Exhibit A (i.e., AOL may make-up underdelivery in
                        non-Product Page Impressions with additional Product
                        Page Impressions and, in such event, MP shall not be
                        required to pay additional compensation solely with
                        respect to these additional Product Page Impressions).

M.      PAYMENTS.

        M.1     PAYMENTS PRIOR TO AMENDMENT DATE. Prior to the Amendment Date
                the Parties agree and acknowledge that, pursuant to the
                requirements of Section 3.1 of the Agreement, MP has paid to AOL
                [ ** ] (the "Paid-To-Date Amount"); which amount relates to
                carriage scheduled to be delivered through [ ** ]. The Parties
                agree and acknowledge that [ ** ] of the Paid-To- Date Amount
                (the "Unaccrued Amount"), shall be applied by AOL to the payment
                required to be delivered by MP under Section M.3(a).

        M.2     EFFECT ON ORIGINAL PAYMENT SCHEDULE. In consideration of the
                additional undertakings set forth in this Amendment, the Parties
                have agreed to create a new consideration and payment schedule
                under the Agreement. Accordingly, no further amounts shall be
                payable under Section 3.1 of the Agreement and the last sentence
                of such section shall be of no further force or effect.

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

                                      -7-

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        M.3     GUARANTEED PAYMENT. In consideration of AOL's obligations under
                the Agreement, as amended by this Amendment, MP shall pay to AOL
                (in addition to the Paid-To-Date Amount and the amounts due
                under Sections I, L.3 and O of this Agreement) a guaranteed
                payment of [ ** ] payable as follows:

                M.3(a)  The total amount due to AOL as of the Amendment date
                        shall be [ ** ] and shall be payable as follows: [ ** ]
                        shall be payable on the Amendment Date and AOL shall
                        apply the entire Unaccrued Amount as payment for the
                        remainder of such amount due, and

                M.3(b)  [ ** ] shall be payable on each of [ ** ] (each a
                        "Payment Date").

N.      TERM. Section 4.1 of the Agreement is hereby deleted and replaced in its
        entirety with the following:

4.1     TERM, RENEWAL, POST-TERM LICENSE.

        4.1.1   TERM. The initial term of this Agreement (the "Initial Term")
                shall commence on the Effective Date and shall terminate on the
                [ ** ] of the Amendment Date (unless earlier terminated as
                permitted herein) (the Initial Term plus any extension or
                renewal hereof shall be referred to as the "Term").

        4.1.2   POST-TERM LICENSE. Upon the termination of this Agreement for
                any reason other than termination by MP as a result of AOL's
                uncured material breach of this Agreement (including but not
                limited to Exhibit C hereto), MP shall permit AOL to continue to
                license all intellectual property licensed pursuant to this
                Agreement (including without limitation the Licensed Data and
                all functionality supplied in connection with the Buying
                Service) for a period of [ ** ] (or such shorter period as AOL
                shall determine) (the "Post-Term License Period"), provided that
                AOL shall pay to MP from the date of termination of the
                Agreement and continuing until the termination of the Post-Term
                License Period, a monthly license fee in advance of [ ** ] per
                month. Notwithstanding any provision of this Agreement to the
                contrary, this Section 4.1.2 shall survive any termination of
                this Agreement.

O.      REVENUE SHARING. During the Term, MP shall pay AOL, on a quarterly basis
        within [ ** ] days following the end of the quarter in which such
        amounts were generated, the Bounties set forth on Schedule 5 upon the
        attainment of the Performance Hurdle set forth therein.

P.      AMENDMENT OF SECTION 1.1 OF THE AGREEMENT. Section 1.1 of the Agreement
        is hereby deleted and replaced in its entirety with the following:

        1.1     AOL PROMOTION OF AFFILIATED MP SITE; FLEXIBILITY OF PROMOTIONS.
                AOL shall provide MP with the promotions for the AOL Jump Pages
                and the Affiliated MP Site described on Exhibit A attached
                hereto (collectively referred to herein as the "Promotions").
                AOL reserves the right (at its sole discretion) to (i)
                substitute for the Promotions to be delivered in a particular
                Level other promotions (in the same Level) in the same or
                different areas of the AOL Properties, and (ii) substitute
                Impressions in one Tier for those in another Tier at an exchange
                ratio taking into account the Relative Weighted Value of the
                Promotions substituted. In addition, AOL reserves the right to
                redesign or modify the organization, structure, "look and feel,"
                navigation and

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

                                      -8-

<PAGE>
                other elements of the AOL Network at any time. As used in this
                Section 1.1, "Relative Weighted Value" of the promotions and
                Impressions refers to the fact that, as acknowledged and agreed
                by the Parties hereto and as evidenced on the Switching Matrix
                included in Exhibit A hereto, the Promotions described on
                Exhibit A hereto are not of equal value but rather, in order of
                descending relative value from the most to the least valuable,
                are categorized as follows: (a) Tier 1 (b) Tier 2, (c) Tier 3
                and (d) Tier 4. In the event that the AOL wishes to switch
                promotions to new inventory on the AOL Network, or inventory not
                referenced on Exhibit A, the Parties shall mutually and in good
                faith determine the appropriate tier for such inventory.

Q.      AMENDMENT OF AOL NETWORK DEFINITION. The last sentence of the definition
        of "AOL Network" included in Exhibit B of the Agreement is hereby
        deleted.

R.      AMENDMENT OF EXHIBIT C OF THE AGREEMENT. Exhibit C of the Agreement
        shall be amended and restated in its entirety to read as set forth on
        Exhibit B of this Amendment.

S.      AMENDMENT OF EXHIBIT D OF THE AGREEMENT. Exhibit D of the Agreement
        shall be amended and restated in its entirety to read as set forth on
        Exhibit D of this Amendment.

T.      AMENDMENT OF EXHIBIT D-1 OF THE AGREEMENT. Exhibit D-1 of the Agreement
        shall be amended and restated in its entirety to read as set forth on
        Exhibit D-1 of this Amendment.

U.      EXHIBITS AND SCHEDULES. The exhibits and schedules identified in and
        attached to this Amendment are each incorporated into this Agreement and
        are hereby made a part of this Amendment. Except for Exhibit C hereto,
        in the event of a conflict between the substantive provisions set forth
        above in body of this Amendment (the "Main Provisions") and the exhibits
        incorporated into this Amendment, the Main Provisions shall control.
        Terms and conditions of Exhibit C control in the event of any conflict
        between such Exhibit And the Main Provisions. Schedules which are
        updated by AOL as permitted hereunder shall supercede the previous
        schedule.

V.      EFFECT ON AGREEMENT. Except as specifically amended by this Amendment,
        the Agreement remains in full force and effect.

                            [SIGNATURE PAGE FOLLOWS]

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

                                      -9-

<PAGE>
               In witness whereof, the Parties have executed this Amendment as
of the date written hereinabove.

AMERICAN ONLINE, INC.

By:        /s/ DAVID M. COLBURN
           --------------------------------------

Name:      David M. Colburn
           --------------------------------------

Title:     President, Business Affairs
           --------------------------------------

AUTOWEB.COM, INC.

By:        /s/ DEAN DEBIASE
           --------------------------------------

Name:      Dean Debiase
           --------------------------------------

Title:     Chairman & CEO
           --------------------------------------

**Confidential treatment has been requested with respect to certain information
contained in this document. Confidential portions have been omitted from the
public filing and have been filed separately with the Securities and Exchange
Commission.

                                      -10-<PAGE>
                                                                   EXHIBIT 10.18

                              SEPARATION AGREEMENT

            This Agreement is made as of December 14, 2001 (the "Effective
Date"), by and between Mark W. Lorimer (the "Executive") and Autobytel Inc. (the
"Company").

            WHEREAS, the Executive has been employed by the Company or its
predecessor companies or its or their subsidiaries or affiliates as its
President and Chief Executive Officer, pursuant to an employment agreement by
and between the Company and the Executive, dated July 1, 1998 and amended July
31, 1998 (the "Employment Agreement");

            WHEREAS, the Executive resigned from his position as President and
Chief Executive Officer of the Company, a member of the Board of Directors of
the Company (the "Board"), and from all other positions with the Company and its
subsidiaries or affiliates effective December 5, 2001 (the "Resignation Date");
and

            WHEREAS, the Executive and the Company desire to set forth the terms
of the Executive's separation from the Company.

            NOW THEREFORE, the parties hereto, intending to be legally bound, do
hereby agree as follows:

<PAGE>

1.    Payments and Benefits to the Executive.

      a)  Cash Payments. Subject to and conditioned upon the performance by the
          Executive of his obligations set forth in this Agreement, the Company
          agrees to pay the Executive an amount equal to $1,000,000, of which
          $666,667 shall be paid to the Executive on the Revocation Date (as
          defined in Section 14 hereof) and $333,333 shall be paid on the six
          month anniversary of the Effective Date.

      b)  Stock Options.

          (i)   On the Effective Date, (A) 1,472 of the 2,943 options granted to
                the Executive pursuant to the option agreement dated as of
                December 12, 1997 between the Company and the Executive, (B)
                8,468 of the 16,935 options granted to the Executive pursuant to
                the option agreement dated as of June 21, 1998 between the
                Company and the Executive, (C) 100,000 of the 200,000 options
                granted to the Executive pursuant to Section 1 of Schedule A to
                the Employment Agreement, (D) the 500,000 options granted to the
                Executive pursuant to Section 2 of Schedule A to the Employment
                Agreement and (E) 68,457 of the 136,914 options granted to the
                Executive pursuant to the

<PAGE>

                option agreement(s) dated as of February 15, 1999 between the
                Company and the Executive (collectively, the "Disposed Options")
                shall terminate and be of no further force or effect,
                notwithstanding anything to the contrary set forth in the
                agreements pursuant to which such options were granted.

          (ii)  On the Effective Date, (A) the 333,333 options granted to the
                Executive pursuant to the option agreement dated as of October
                23, 1996 between the Company and the Executive, (B) 1,471 of the
                2,943 options granted to the Executive pursuant to the option
                agreement dated as of December 12, 1997 between the Company and
                the Executive, (C) 8,467 of the 16,935 options granted to the
                Executive pursuant to the option agreement dated as of June 21,
                1998 between the Company and the Executive, (D) 100,000 of the
                200,000 options granted to the Executive pursuant to Section 1
                of Schedule A to the Employment Agreement, (E) 68,457 of the
                136,914 options granted to the Executive pursuant to the option
                agreement dated as of February 15, 1999 between the Company and
                the Executive and (F) the 331,792 options granted to the
                Executive pursuant to the option agreement(s) dated as of
                February April 12, 2000 between the Company and

                                       3
<PAGE>

                the Executive (collectively, the "Continuing Options") shall
                become vested and exercisable as of the Effective Date and shall
                remain exercisable by the Executive until the third anniversary
                of the Effective Date, notwithstanding anything to the contrary
                set forth in the agreements pursuant to which such options were
                granted. Except as specifically set forth in this Section
                1(b)(ii), the Continuing Options shall continue to be governed
                by and subject to the terms of the applicable stock option plans
                and option agreements pursuant to which such options were
                granted.

          (iii) The parties acknowledge and agree that the Disposed Options and
                the Continuing Options comprise all of the options to acquire
                shares of common stock of the Company held by the Executive as
                of the date hereof.

      c)  Health and Welfare Benefits. The Company shall continue to provide the
          Executive with health and welfare benefits no less favorable than
          those provided to him as of the Resignation Date, until the earlier of
          the second anniversary of Effective Date and the Executive obtaining
          employment providing substantially comparable benefits (determined on
          a benefit-by-benefit basis); provided, however that, notwithstanding
          anything in Section 17 below to the contrary, any

                                       4
<PAGE>

          such benefit shall be offset by any amount received by the Executive
          under any plan or arrangement of a subsequent employer providing a
          similar type of benefit.

      d)  Other Benefits and Perquisites. During the two year period immediately
          following the Effective Date, (i) the Company shall reimburse the
          Executive for the cost of internet connectivity through America Online
          or a DSL connection, (ii) the Company shall continue to reimburse the
          Executive for the cost of his health club membership (at a level no
          greater than that provided by the Company immediately prior to the
          Effective Date) and (iii) the Company shall continue to pay the
          Executive an automobile allowance equal to the automobile allowance in
          effect as of the Resignation Date. In addition, the Executive shall be
          entitled to retain one Compaq desktop computer and monitor and the
          printer previously provided to him by the Company. As soon as
          practicable following the Revocation Date, the Executive shall return
          to the Company all other computer equipment belonging to the Company,
          including, but not limited to, the Toshiba laptop computer and docking
          station and the router and switchbox.

      e)  Other. In addition to the foregoing,

                                       5
<PAGE>

          (i)   the Executive acknowledges that he has received all salary
                payments, as well as accrued but unused vacation and all other
                amounts due him, through the Resignation Date and that no
                further salary or other compensation for services rendered is
                due to him; and

          (ii)  the Executive acknowledges that the Company shall deduct all
                applicable withholding taxes from the amounts to be paid to the
                Executive under this Agreement.

2.    Confidential Information. The Executive acknowledges that the Company's
      and its subsidiaries' and affiliates' trade secrets, information
      concerning products and services and their development, technical
      information, marketing and sales activities and procedures, promotion and
      pricing techniques and credit and financial data concerning the Company,
      its subsidiaries and affiliates and their customers (the "Proprietary
      Information") are valuable, special and unique assets of the Company and
      its subsidiaries and affiliates, access to and knowledge of which have
      been gained by virtue of the Executive's position and involvement with the
      Company and its subsidiaries and affiliates. Proprietary Information shall
      not include information which is or becomes generally available to the
      public other than as a result of unauthorized disclosure by the Executive.
      The Executive agrees that he will not disclose any of such Proprietary
      Information to any person or

                                       6
<PAGE>

      other entity for any reason or purpose whatsoever, and that the Executive
      will not make use of any Proprietary Information for the benefit of any
      person or other entity other than the Company and its subsidiaries and
      affiliates, except to the extent disclosure is or may be required by a
      statute, by a court of law, by any governmental agency having supervisory
      authority over the business of the Company or by any administrative or
      legislative body (including a committee thereof) with jurisdiction to
      order him to divulge, disclose or make accessible such information,
      provided, however, that the Executive shall give the Company notice of any
      such request or demand for such information upon his receipt of same and
      the Executive shall reasonably cooperate with the Company in any
      application the Company may make seeking a protective order barring
      disclosure by the Executive.

3.    Restrictive Covenants. The Company is engaged in the business of
      independent online automotive marketing services and information (the
      "Business") throughout the world. The Executive represents, warrants,
      acknowledges and agrees that (i) the market for the Business is extremely
      competitive and extends throughout the world and the Executive, through
      the Company, is among the limited number of people engaged in the
      Business; (ii) the Disposed Options are of significant economic value to
      the Company and the Executive; (iii) the restrictive covenants and other
      agreements contained herein are an essential part of this Agreement; (iv)
      the Executive

                                       7
<PAGE>

      has been fully advised by, or has had the opportunity to be advised by, an
      attorney in connection with the negotiation, preparation, execution and
      delivery of this Agreement and the transactions contemplated by this
      Agreement; and (v) no reasonable person would engage in any of the
      transactions contemplated by this Agreement without the benefit of the
      restrictive covenants and the other agreements contained herein by the
      Executive. Accordingly, the Executive agrees to be bound by the
      restrictive covenants and the other agreements contained in this Agreement
      to the maximum extent permitted by law, it being the intent and spirit of
      the parties that the restrictive covenants and the other agreements
      contained herein shall be valid and enforceable in all respects, and,
      subject to the terms and conditions of this Agreement, mutually dependent
      upon the obligations of the Company to pay the Executive the consideration
      due the Executive under this Agreement.

      a)  Noncompetition. During the period commencing with the Revocation Date
          (as defined in Section 14 hereof) and extending for one year
          thereafter (the "Restricted Period"), the Executive shall not in any
          city, town, county, parish or other municipality in any state of the
          United States where the Company or any of its subsidiaries, successors
          or assigns engages in the Business, directly or indirectly, (i) engage
          in the Business for the Executive's own account; (ii) enter

                                       8
<PAGE>

          the employ of, or render any services to or for any entity that is
          engaged in the Business; or (iii) become interested in any such entity
          in any capacity, including as an individual, partner, shareholder,
          officer, director, employee, principal, agent, trustee or consultant;
          provided, however, the Executive may own, directly or indirectly,
          solely as a passive investment, securities of any entity traded on any
          national securities exchange or automated quotation system if the
          Executive, individually or in the aggregate, is not a controlling
          Person of, or a member of a group which controls, such entity and does
          not, directly or indirectly, "beneficially own" (as defined in Rule
          13d-3 of the Securities Exchange Act of 1934, as amended (the
          "Exchange Act"), without regard to the 60 day period referred to in
          Rule 13d-3(d)(1)(i)) 2% or more of any class of securities of such
          entity.

      b)  Noninterference. During the Restricted Period, the Executive shall
          not, directly or indirectly, (i) hire, solicit, induce, or attempt to
          solicit or induce any person known to the Executive to be an employee
          of the Company or any of its subsidiaries, successors or assigns, that
          is involved in the Business to terminate his or her employment or
          other relationship with the Company, its subsidiaries, successors or
          assigns for the purpose of associating with (A) any entity of which
          the Executive is or becomes an officer, director, partner, executive,

                                       9
<PAGE>

          employee, principal, agent, or consultant or (B) any competitor of the
          Company or its subsidiaries, successors or assigns in the Business, or
          (ii) otherwise encourage any person to terminate his or her employment
          or other relationship with the Company or any of its subsidiaries,
          successors or assigns for any other purpose or no purpose.

4.    Standstill Agreement. The Executive, on behalf of himself and his
      affiliates (as such term is defined in Rule 12b-2 under the Exchange Act),
      agrees that, for a period of 2 years from the Effective Date, he and his
      affiliates shall not, and shall cause any person or entity controlled by
      him or them not to: (i) in any manner acquire, agree to acquire or make
      any proposal to acquire ownership directly nor indirectly (including, but
      not limited to beneficial ownership as defined in Rule 13d-3 under the
      Exchange Act) of any voting securities or other equity interests in, debt
      securities, trade payables, or property of the Company or any rights or
      options to acquire such ownership except for the Continuing Options; (ii)
      solicit proxies or consents, directly or indirectly, or become a
      "participant" in any "solicitation" (as such terms are defined in
      Regulation 14A under the Exchange Act) of proxies or consents to vote, or
      seek to advise or influence any person with respect to the voting of, any
      voting securities of the Company; (iii) with respect to any voting
      securities of the Company, (a) form, join or be part of any "group"
      (within the

                                       10
<PAGE>

      meaning of Section 13(d)(3) of the Exchange Act); (iv) otherwise act,
      alone or in concert with others, to seek to control or influence the
      management or policies of the Company or the Board; or (v) advise, assist
      or encourage any other person in connection with any of the foregoing.

5.    Rights and Remedies Upon Breach by the Executive. If the Executive
      breaches, or threatens to commit a breach of, any of the provisions of
      this Agreement, the Company, and its subsidiaries, successors or assigns
      shall have the following rights and remedies, each of which shall be
      independent of the others and severally enforceable, and each of which
      shall be in addition to, and not in lieu of, any other rights or remedies
      available to the Company, or its subsidiaries, successors or assigns at
      law or in equity under this Agreement, or otherwise:

      a)  Specific Performance. The right and remedy to have each and every one
          of the covenants in this Agreement specifically enforced and the right
          and remedy to obtain injunctive relief, it being agreed that any
          breach or threatened breach of any of the restrictive covenants in
          this Agreement would cause irreparable injury to the Company and its
          subsidiaries, successors or assigns and that money damages would not
          provide an adequate remedy to the Company and its subsidiaries,
          successors or assigns.

                                       11
<PAGE>

      b)  Accounting. The right to other appropriate equitable or monetary
          relief.

      c)  Severability of Covenants. The Executive acknowledges and agrees that
          the restrictive covenants in this Agreement are reasonable and valid
          in geographic, temporal and subject matter scope and in all other
          respects, and do not impose limitations greater than are necessary to
          protect the goodwill, proprietary information, and other business
          interests of the Company and its subsidiaries, successors or assigns.
          If, however, any court of competent jurisdiction subsequently
          determines that any of the restrictive covenants, or any part thereof,
          is invalid or unenforceable, the remainder of the restrictive
          covenants shall not thereby be affected and shall be given full effect
          without regard to the invalid portions.

      d)  Blue-Penciling. If any court of competent jurisdiction determines that
          any of the restrictive covenants, or any part thereof, is
          unenforceable because of the duration or scope of such provision, such
          court shall have the power to reduce the duration or scope of such
          provision, as the case may be, and, in its reduced form, such
          provision shall then be enforceable to the maximum extent permitted by
          applicable law.

      e)  Enforceability in All Jurisdictions. The Executive intends to and
          hereby confers jurisdiction to enforce each and every one of the

                                       12
<PAGE>

          covenants in this Agreement upon the courts of any jurisdiction within
          the geographic scope of such restrictive covenants. If the courts of
          any one or more of such jurisdictions hold the restrictive covenants
          unenforceable by reason of the breadth of such scope or otherwise, it
          is the intention of the Executive that such determination shall not
          bar or in any way affect the Company's, or any of its subsidiaries',
          successors' or assigns' right to the relief provided above in the
          courts of any other jurisdiction within the geographic scope of such
          restrictive covenants, as to breaches of such restrictive covenants in
          such other respective jurisdictions, such restrictive covenants as
          they relate to each jurisdiction being, for this purpose, severable
          into diverse and independent covenants.

6.    Cooperation. The Executive agrees to cooperate in the Company's handling
      or resolution of any matter in which the Executive was involved in the
      course of his employment, provided that such requests shall not be unduly
      burdensome. By way of example only, such obligation of cooperation may
      include furnishing information and assisting the Company in legal
      proceedings. Promptly following submission of a written statement by the
      Executive, the Company shall reimburse the Executive his reasonable
      out-of-pocket costs and other reasonable expenses incurred in connection
      with his

                                       13
<PAGE>

      cooperation pursuant to this Section 6, including but not limited to
      reasonable attorney's fees.

7.    Releases

      a)  Release by the Executive.

                                       14
<PAGE>

          (i)   The Executive on behalf of himself and his agents, assignees,
                attorneys, heirs and executors (the "Executive Releasors")
                agrees to and does hereby forever release the Company, any
                affiliated companies, and their past and present parents,
                subsidiaries, and present and former employees, officers,
                directors, shareholders, agents, successors and assigns of any
                of them (but, as to any such individuals, only in connection
                with or in relationship to their capacity as an employee,
                officer, director, shareholder, agent, successor or assignee of
                the Company, any affiliated companies, and their past and
                present parents and subsidiaries, successors and assignees and
                not in connection with or in relationship to their personal
                capacity unrelated to a referenced corporate entity; such
                individuals as described and such corporate entities
                collectively, the "Company Releasees") from all claims, demands,
                causes of action, controversies, agreements, promises and
                remedies, of any type which the Executive may have as of the
                date hereof, whether known or unknown, in connection with or in
                relationship to the Executive's capacity as an employee, officer
                or director of any of the Company Releasees, and the termination
                of any such capacity, other than

                                       15
<PAGE>

                with respect to the rights expressly preserved herein (such
                released claims are collectively referred to herein as the
                "Released Executive Claims"). Without any limitation on the
                foregoing, the Released Executive Claims shall include any
                claims arising under the Age Discrimination in Employment Act
                ("ADEA"), Title VII of the Civil Rights Act, the Americans with
                Disabilities Act, the California Fair Employment and Housing
                Act, as amended, the California Labor Code and all other
                federal, state and local laws.

          (ii)  In addition, the Executive, on behalf of himself and the
                Executive Releasors expressly waives all rights afforded by
                Section 1542 of the Civil Code of the State of California
                ("Section 1542") with respect to the Company Releasees. Section
                1542 states as follows:

                      A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE
                TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM

                                       16
<PAGE>

                MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

                Notwithstanding the provisions of Section 1542, and for the
                purpose of implementing a full and complete release, the
                Executive understands and agrees that this Release is intended
                to include and does include all claims, if any, which the
                Executive may have and which the Executive does not now know or
                suspect to exist in his favor against the Company Releasees, and
                this Release extinguishes those claims.

          (iii) Notwithstanding the foregoing, the Executive does not waive, and
                "Released Executive Claims" shall not include, any rights to
                which he may be entitled (A) to seek to enforce this Agreement
                or (B) to obtain contribution as permitted by law in the event
                of the entry of judgment against him as a result of any act or
                failure to act for which both the Executive and the Company are
                held to be jointly liable. The Executive shall have the right to
                indemnification, to the fullest extent permitted under
                applicable law, to the same extent as other senior executive
                officers and directors of the Company or its subsidiaries or
                affiliates are so entitled, in accordance with the

                                       17
<PAGE>

                provisions of the Company's by-laws, certificate of
                incorporation or as otherwise provided under the laws of the
                state of Delaware, whichever provides the Executive with the
                broadest protections, and directors' and officers' liability
                insurance policies to the same extent as other senior executive
                officers and directors of the Company, and in the event such
                indemnification or liability insurance policy rights are
                subsequently enhanced, and relate to the period of time prior to
                the Resignation Date the Executive shall be entitled to the
                protection of such enhanced rights.

          (iv)  The Executive, on behalf of himself and the Executive Releasors,
                promises never to file a lawsuit or arbitration asserting any
                Released Executive Claims against the Company Releasees. If the
                Executive files a lawsuit or arbitration against the Company
                Releasees based on the Released Executive Claims, he agrees to
                pay for all costs incurred by the Company Releasees, including
                reasonable attorney's fees, in defending against such claim.

      b)  Release by the Company.

                                       18
<PAGE>

          (i)   The Company, on behalf of itself and any affiliated companies
                and their past and present parents and subsidiaries (the
                "Company Releasors"), agree to forever release the Executive and
                his family, estate, agents, attorneys, heirs, executors,
                successors and assigns (the "Executive Releasees") from any and
                all claims, demands, causes of action, controversies,
                agreements, promises and remedies, in connection with or in
                relationship to the Executive's capacity as an employee, officer
                or director of any of the Company Releasors which they may have
                as of the date hereof, whether known or unknown, including,
                without limitation, any rights to pursue such dispute(s) against
                the Executive Releasees (the "Released Company Claims") except
                for any claims, demands, causes of action, controversies,
                agreements, promises and remedies arising out of the Executive's
                intentional disclosure of, or direction to disclose, material
                non-public information and referred to in that certain letter
                listed on Exhibit A hereto, if any.

          (ii)  The Company, on behalf of itself and the Company Releasors,
                promises never to file a law suit or arbitration against the
                Executive Releasees asserting any Released Company Claims.

                                       19
<PAGE>

                If the Company files a lawsuit or arbitration against the
                Executive Releasees based on Released Company Claims, it will
                pay for all costs incurred by the Executive Releasees, including
                reasonable attorney's fees, in defending against such claims.
                Notwithstanding the foregoing, the Company does not waive, and
                "Released Company Claims" shall not include, any rights to which
                the Company may be entitled to seek to enforce this Agreement.

8.    Miscellaneous.

      a)  Mutual Nondisparagement. The Executive shall not make any public
          statements, encourage others to make statements or release information
          intended to disparage or defame the Company, its subsidiaries or
          affiliates or their products or services or their officers, directors
          or managers. The Company, on behalf of itself and its subsidiaries and
          affiliates, shall not make any public statements, encourage others to
          make statements or release information intended to disparage or defame
          the Executive's reputation. Notwithstanding the foregoing, nothing in
          this Section 8(a) shall prohibit any person from making truthful
          statements when required by order of a court or other body having
          jurisdiction.

                                       20
<PAGE>

      b)  Resolution of Disputes. Any disputes or claims arising under or in
          connection with this Agreement, including, without limitation, any
          disputes arising under Sections 3 or 4 hereof, shall be resolved by
          binding arbitration, to be held in Orange County, California, in
          accordance with the Commercial Rules of the American Arbitration
          Association before a panel of three (3) arbitrators, one appointed by
          the Executive, one appointed by the Company, and the third appointed
          by mutual agreement of the arbitrators selected by the Executive and
          the Company. Judgment upon the award rendered by the arbitrators may
          be entered in any court having jurisdiction thereof. Each party shall
          bear its own counsels' fees in arbitration or litigation, and shall
          share equally the costs of arbitration; provided however the Company
          shall pay and be solely responsible for any attorneys' fees and
          expenses and court or arbitration costs incurred by the Executive as a
          result of a claim that the Company has breached or otherwise failed to
          perform this Agreement or any provision thereof to be performed by the
          Company if the Executive prevails in the contest in whole or in
          substantial part. Nothing herein shall prevent the Company from
          seeking equitable relief in court as provided for in Section 5 hereof.

                                       21
<PAGE>

      c)  General. No provision of this Agreement may be modified, waived or
          discharged unless such waiver, modification or discharge is agreed to
          in writing and signed by the Executive and the Company. No waiver by
          either party hereto at any time of any breach by the other party
          hereto of, or compliance with, any condition or provision of this
          Agreement to be performed by such other party shall be deemed a waiver
          of any similar or dissimilar provisions or conditions at the same or
          any prior or subsequent time. No agreements or representations, oral
          or otherwise, express or implied, with respect to the subject matter
          hereof have been made by either party which are not set forth
          expressly in this Agreement. The validity, interpretation,
          construction and performance of this Agreement shall be governed by
          the laws of the State of Delaware without regard to its conflicts of
          law principles. Except as otherwise expressly provided in this
          Agreement, including without limitation the provisions of Section 2
          hereof, and except for disclosure by the Company to its legal,
          accounting and other advisors, it is the express intention of the
          parties hereto that this Agreement and the provisions hereof be
          treated as confidential and not disclosed in any public manner other
          than disclosure (i) that is or may be required by a statute, by a
          court of law, by any governmental agency having supervisory authority
          over the business of the

                                       22
<PAGE>

          Company or by any administrative or legislative body (including a
          committee thereof) with jurisdiction to order that such information be
          divulged, disclosed or made accessible; provided, however, that the
          Executive shall give the Company notice of any such request or demand
          for such information upon his receipt of same and the Executive shall
          reasonably cooperate with the Company in any application the Company
          may make seeking a protective order barring disclosure by the
          Executive; (ii) that is made to the Executive's legal counsel or
          personal financial advisor and is reasonably necessary in connection
          with the Executive's consideration of the terms of this Agreement or
          the Executive's personal financial dealings, or (iii) that is made to
          a member of the Executive's immediate family; provided, however, that
          with respect to subsections (ii) and (iii) of this Section 8(c), any
          person to whom the Executive discloses such information has agreed in
          advance to maintain the confidentiality of such information consistent
          with the terms of this Agreement.

      d)  Beneficiaries. This Agreement shall inure to the benefit of and be
          enforceable by the Executive's personal or legal representatives,
          executors, administrators, successors, heirs, distributees, devisees
          and legatees. If the Executive shall die while any amount would still
          be

                                       23
<PAGE>

          payable to the Executive hereunder (other than amounts which, by their
          terms, terminate upon the death of the Executive) if the Executive had
          continued to live, all such amounts, unless otherwise provided herein,
          shall be paid in accordance with the terms of this Agreement to the
          executors, personal representatives or administrators of the
          Executive's estate.

9.    Validity. The invalidity or unenforceability of any provision or
      provisions of this Agreement shall not affect the validity or
      enforceability of any other provision of this Agreement, which shall
      remain in full force and effect.

10.   Notices. Notices, demands and all other communications provided for in
      this Agreement shall be in writing and shall be sent by messenger,
      overnight courier, certified or registered mail, postage prepaid and
      return receipt requested or by facsimile transmission to the parties at
      their respective addresses and fax numbers set forth below or to such
      other address or fax number as to which notice is given.

      If to the Executive:          Mark W. Lorimer
                                    2624 Calle Onice
                                    San Clemente, CA 92673

                                    If to the Company:
                                    Autobytel Inc.
                                    18872 MacArthur Boulevard
                                    Irvine, CA 92612

                                       24
<PAGE>

                                    Attention:  General Counsel

                                    Fax: (949) 862-1323

               Notices, demands and other communications shall be deemed given
        on delivery thereof or, in the case of facsimile transmission, upon
        receipt of successful transmission from the transmitting facsimile
        machine.

11.   Counterparts. This Agreement may be executed in one or more counterparts,
      each of which shall be deemed to be an original but all of which together
      will constitute one and the same instrument.

12.   Entire Agreement; Effect on Employment Agreement. This Agreement sets
      forth the entire agreement of the parties hereto in respect of the subject
      matter contained herein and supersedes all prior agreements, promises,
      covenants, arrangements, communications, representations (including that
      certain letter from the Executive to the Company dated as of December 13,
      2001) or warranties, whether oral or written, by either party or by any
      officer, employee or representative of either party hereto. Without
      limiting the generality of the foregoing, as of the Effective Date, the
      Employment Agreement shall become null and void and of no further force,
      except that Section 7 thereof shall remain in full force and effect until
      the second anniversary of the Effective Date.

                                       25
<PAGE>

13.   Legal Fees. The Company shall reimburse the Executive for his legal fees
      and expenses in the amount of $25,000 incurred in connection with the
      preparation and negotiation of this Agreement.

14.   Review and Revocation. The Executive acknowledges that the Company has
      advised him to consult with an attorney of his choosing prior to signing
      this Agreement. The Executive understands and agrees that he has the right
      and has been given the opportunity to review this Agreement and,
      specifically, the release in Section 7 hereof, with an attorney of his
      choice. The Executive also understands and agrees that he has entered into
      this Agreement freely and voluntarily. The Executive has twenty-one (21)
      days to consider the release of his rights under ADEA, although he may
      sign this Agreement sooner if he so desires. Furthermore, once the
      Executive has signed this Agreement, he has seven (7) additional days from
      the date he signs it to revoke his consent to the release of his rights
      under ADEA. The Executive's release of his rights under ADEA will not
      become effective until seven (7) days after the date he has signed this
      Agreement (the day immediately following the expiration of such 7-day
      period being referred to herein as the "Revocation Date") and the payments
      and obligations of the Company set forth in this Agreement shall not
      become due unless and until the period for such revocation has expired
      with no such revocation by the Executive having occurred.

                                       26
<PAGE>

15.   No Admission of Wrongdoing. The Company's offer to the Executive of this
      Agreement and the payments and benefits set forth herein is not intended
      to, and shall not be construed as, an admission of liability by the
      Company or of any improper conduct on the Company's part, all of which the
      Company specifically denies.

16.   Representations of the Company. The Company represents and warrants to the
      Executive that the execution, delivery and performance of this Agreement
      and the consummation of the transactions contemplated hereby have been
      duly and validly authorized on behalf of the Company and that all
      corporate action required to be taken by the Company for the execution,
      delivery and performance of this Agreement including, without limitation,
      the performance of Section 1(b) hereof, has been or promptly will be duly
      and effectively taken. The Company acknowledges that the Executive has
      relied upon such representations and warranties in entering into this
      Agreement.

17.   No Mitigation or Offsets. The Executive shall not be required to seek
      other employment or to reduce or otherwise mitigate any severance amount
      or benefit payable to him under this Agreement and, except as expressly
      provided in Section 1(c) above, no severance amount or benefit shall be
      reduced on account of any compensation received by the Executive from
      other employment. The Company's obligation to pay severance amounts and

                                       27
<PAGE>

      benefits under this Agreement shall not be reduced by any amount owed by
      the Executive to the Company.

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date set forth above.

                                                Autobytel Inc.

/s/ Mark W. Lorimer                 By:/s/  Ariel Amir
-------------------------------       ------------------------------
Mark W. Lorimer                     Executive Vice President and General Counsel

                                       28

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