Document:

<PAGE>
                                                                   EXHIBIT 10.26

                                  CARSMART.COM
                          INTERNET MARKETING AGREEMENT
         A.I.N. CORPORATION A WHOLLY OWNED SUBSIDIARY OF AUTOBYTEL INC.
            18872 MacArthur Boulevard, Irvine, California 92612-1400
                       Tel. 949-225-4500*Fax 949-862-3042

THIS AGREEMENT, dated _________________________ is entered into by A.I.N.
Corporation, a Delaware corporation ("AIN"), and _____________________________
("Dealer").                                        (Legal Name of Dealership)

PURPOSE OF AGREEMENT: This Agreement sets forth the terms and conditions of
Dealer's participation in the CarSmart.com(R)Internet Marketing Program (herein
referred to as "Program") and the mutual obligation of Dealer and A.I.N. in
connection therewith.

1. OBLIGATIONS OF AIN: In consideration of Dealer's fulfilling all of the
obligations herein set forth, AIN agrees, for the term of this Agreement, to
include Dealer as a participating dealer in the Program. The Program may from
time-to-time be redefined and changed by AIN to afford Dealer the promotional,
training, advertising and other benefits of participation therein. AIN shall
provide a marketing program on the Internet to attract potential buyers and
shall forward information regarding the potential buyers identified for the
make(s) set forth below and in the territory (defined below) of the Dealer.
Additionally, AIN will:

        a)  Grant Dealer a non-exclusive license that will allow dealer access
            to an automated consumer tracking and communications system.

        b)  Use reasonable efforts to forward consumer information to Dealer
            within 60 minutes of receipt from consumer.

2. OWNERSHIP OF PROGRAM AND INTELLECTUAL PROPERTY: AIN warrants that it is the
lawful holder of the federally registered trademark CarSmart(R) and that it is
the owner and operator of the CarSmart(R) web site located at URL
www.carsmart.com. The Program services to be provided hereunder by AIN, together
with any modifications and/or improvements therein made by AIN or Dealer during
the term of this Agreement and all copies thereof, are proprietary to AIN and
title thereto remains in AIN. All applicable rights to patents, copyrights,
trademarks and trade secrets in the Program and in the name "CarSmart" and its
logos are and shall remain the sole property of AIN.

3. OBLIGATIONS OF DEALER: Dealer understands and agrees that the Program is
intended to identify for Internet consumers, ethical automobile dealers who are
ready, willing, and able to provide new vehicles at a fair price and without the
anxiety and hassle frequently associated with the process of acquiring a new
vehicle. Dealer agrees and warrants that all of Dealer's dealings hereunder will
be completely fair and in accordance with the highest ethical standards.
Additionally, Dealer agrees:

        a)  To provide a bonafide price quote to all CarSmart consumers via
            telephone, fax or e-mail.

        b)  To provide such price quote within 6-8 business hours after
            receiving request.

        c)  To extend to consumers, courteous, ethical service in connection
            with the purchase of vehicles.

        d)  To price any vehicle included in the Program competitively with that
            price which a knowledgeable and diligent buyer can generally obtain
            for the same model, similarly equipped, from the Dealer or from
            other dealers within the Dealer's marketing area.

        e)  To offer any dealer-installed optional equipment or service,
            including extended service contracts, that the consumer wishes to
            purchase with the automobile at a fair mark-up, so as not to exceed
            Dealer's average selling price for that equipment or service.

        f)  That consumers may special-order models covered by the Program at
            the same competitive price.

        g)  That all of the terms and conditions contained in Dealer information
            transmitted to consumers shall remain in full force and effect and
            be binding upon Dealer for a period of seven (7) days after its
            transmittal (including transmittal by e-mail or facsimile), provided
            the identified vehicle remains available for sale.

        h)  To offer consumers the better of dealer-advertised price and the
            pre-arranged price set in the price quoted to or transmitted to
            consumers.

DG# _________   Region Name: _________     1
CarSmart rev. 2/13/02                                            VOID IF ALTERED
<PAGE>

        i)  Not to interfere with the consumers' choice of financing
            institution. The benefits to consumers afforded under the Program
            shall not in any way be dependent upon financing the purchase or
            lease through any particular financing institution. Dealer further
            agrees not to solicit financing from any Credit Union member
            utilizing the Program. Dealer acknowledges violation of this term
            will cause immediate termination of this Agreement.

        k)  To appraise all trade-ins at, and to credit all trade-ins at, or
            above, their ACTUAL CASH VALUE notwithstanding any discount being
            afforded under the Program.

        l)  At its sole cost and expense, to provide the computer and other
            office equipment necessary to use and receive the services to be
            provided hereunder by AIN.

        m)  That it is an independent contractor and not an agent or employee of
            AIN and that AIN does not have, nor shall it exercise, any right of
            control as to the personnel, business methods or means employed by
            the Dealer. Dealer at all times shall act in the capacity of an
            independent contractor and shall be exclusively responsible for its
            acts.

        n)  To have a minimum of one (1) CarSmart trained representative on
            staff. Dealer agrees to send dealership representative off-site to a
            CarSmart-conducted training seminar when conducted in Dealer's local
            geographic area.

        o)  To meet all legal requirements of the city and county in which it
            operates and to comply with all federal, state and local laws
            regulating Dealer's business.

4. TERRITORY OF DEALER: Subject to the terms and conditions set forth in this
Agreement, AIN hereby grants to Dealer the exclusive (except in the State of
Texas), non-transferable right to use the services of the Program, within the
geographical area (zip code, county descriptions preferable), set forth in
Appendix "A" attached hereto and incorporated herein by this reference (the
"Territory"). In Texas, the Territory is deemed to be the area within the zip
code where Dealer is located and there is no Appendix A. AIN reserves the right
to redefine the Dealer's Territory upon 30 days written notice. Dealers in the
State of Texas, acknowledge and agree that no exclusive Territory is granted by
this Agreement.

5. INDEMNIFICATION: Dealer promises to indemnify and hold harmless AIN, its
subsidiaries, parent, affiliates and respective members, managers, directors,
officers, employees, and agents against any and all losses, liabilities, claims,
awards, damages, judgments, settlements, and costs, including fees and expenses,
arising out of or related to Dealer's negligence or wrongful conduct, or arising
out of any third-party claim, including, but not limited to, any claim for
damages by any person or entity regarding the purchase, lease and/or finance of
a motor vehicle from Dealer or resulting from Dealer's utilization of AIN's
services, or from any other act done or omitted to be done by Dealer in
executing the terms of this Agreement. In the event AIN is served with
notification of action or suit against Dealer, AIN will promptly notify Dealer
of such claim.

6. Compensation to AIN: Dealer promises to pay AIN monetary fees for services
rendered as follows:

        a)  Dealer agrees to pay AIN: A $ ___________ Territory fee with
            Dealer's execution of this Agreement.

        b)  As additional ongoing consideration, Dealer agrees to pay AIN the
            amount of___________ ________________________________ Dollars
            ($______________) as a total monthly Services Fee, which is due and
            payable in advance on the first day of every calendar month. The
            Services Fees for first and last month of the term shall be prorated
            and charged to Dealer at a daily fee rate equivalent to the total
            monthly service fee divided by the number of calendar days for the
            applicable month, multiplied by the number of calendar days services
            were rendered in the applicable month. The first and last months'
            total fee is due and payable concurrently with the execution of this
            Agreement. All fees paid to AIN pursuant to this Agreement are
            non-refundable, regardless of circumstances.

For the purpose of this section 6, the term "services" shall mean the forwarding
of the Purchase Requests by AIN to Dealer. Services are deemed rendered at the
time a Purchase Request is forwarded by AIN to Dealer, and is not contingent
upon an actual sale being consummated. AIN, in its sole discretion, may change
the amount of the fees charged to Dealer including, but not limited to, the
right to change the structure, method and/or basis of the fees at any time
during the term of this Agreement. Any of the foregoing changes shall be
effective upon thirty (30) days written notice to Dealer.

7. LATE PAYMENT: Payments received more than thirty (30) days following the
invoice date shall be subject to a late fee of $25.00 and shall incur interest
charges on the balance due at an annual percentage rate of eighteen (18.0%)
percent per annum. AIN reserves the right to suspend services for any payment
sixty (60) days or more past due until the account is brought current.

DG# _________  Region Name:_________   2
CarSmart rev. 2/13/02                                            VOID IF ALTERED

<PAGE>
]
Upon notification of any change in the amount of the fees charged to Dealer
including, but not limited to, a change in the structure, method and/or basis of
the fees, Dealer has the option to terminate this Agreement. In the event Dealer
chooses to terminate, Dealer must notify AIN, in writing within 10 days of
receipt of such notification. AIN shall not require an affirmative response from
Dealer in the event Dealer chooses to accept the new terms as outlined in such
notification.

8. TERM: This Agreement shall continue in full force and effect unless sooner
terminated according to the provisions of this Agreement.

9. TERMINATION:

A. AIN may terminate this Agreement:

        1)  Immediately for any breach of this Agreement by Dealer which is not
            cured within ten (10) days after Dealer receives written notice of
            the breach from AIN.

        2)  Immediately if any fees due AIN under this Agreement are unpaid and
            outstanding more than (30) days after AIN makes a written request
            for payment.

        3)  Immediately upon the Dealer's sale or transfer of all, or
            substantially all, of its dealership assets and/or management and
            control.

        4)  Immediately upon a finding of Dealer's violation of state or federal
            law or conviction for such violation.

        5)  Immediately if an order for liquidation against Dealer is entered
            into.

        6)  Upon thirty (30) days written notice to Dealer, for any reason or no
            reason.

B. Dealer may terminate this Agreement:

        1)  Immediately, if an order for liquidation against AIN is entered and
            not stayed in a bankruptcy proceeding;

        2)  Immediately, if AIN is guilty of willful misconduct in the
            performance of its duties under this Agreement; or

        3)  Immediately for any breach of this Agreement by AIN which is not
            cured within ten (10) days after Dealer provides written notice of
            the breach to AIN; or

        4)  Upon thirty (30) days written notice to AIN, fir any reason or no
            reason.

Under any of the circumstances above in this section 9, Dealer shall remain
responsible for all fees due and payable up through the effective date of the
termination. Notwithstanding anything to the contrary contained herein, in the
event that AIN terminates this Agreement as a result of Dealer's breach of any
provision of this Agreement, whether material or otherwise, Dealer shall forfeit
all fees previously paid, and such forfeiture shall not be in limitation of, but
shall be in addition to, any other remedy which may be available to AIN as the
result of such breach.

10. OBLIGATIONS UPON TERMINATION: Upon termination of this Agreement, regardless
of the circumstances, AIN shall have no further obligation to Dealer under this
Agreement and Dealer's participation in the Program shall cease. Dealer shall
remain liable to AIN for any and all unpaid obligations due hereunder until paid
in full.

11. ATTORNEYS FEES and COSTS: If any legal action is necessary to enforce the
terms of this Agreement, the prevailing party shall be entitled to recover
reasonable attorney's fees and costs in addition to any damages and other relief
to which such party may be entitled.

12. GOVERNING LAW: This Agreement shall be governed by and interpreted under the
laws of the State of California.

13. NO IMPLIED WARRANTY. LIMITATION OF LIABILITY: AIN makes no warranty
regarding the performance of its services under this Agreement and Dealer
specifically waives all warranties, expressed or implied arising out of, or in
connection with, the services to be provided hereunder. In no event shall AIN be
liable for any loss of business profits, or any consequential, incidental,
punitive or similar damages, or for the claims of damages made by any third
party.

14. NO IMPLIED WAIVER: The failure by either party at any time to require
performance by the other party of any provisions of this Agreement shall not
affect the right to require such performance at any time thereafter.

 DG# ________   Region Name: ________    3
CarSmart rev. 2/13/02                                            VOID IF ALTERED
<PAGE>

Neither shall the waiver by either party of a breach of any provision of this
Agreement be taken or held to be a waiver of the provision itself.

15. NOTICES: All notices, requests and consents given under this Agreement shall
be in writing and shall be delivered by hand, an express mail service from which
a delivery receipt may be obtained, by fax if delivery is confirmed or certified
mail to:

                                   If to AIN:
                               A.I.N. CORPORATION
                           CarSmart(R) ONLINE NETWORK
                            18872 MacArthur Boulevard
                              Irvine, Ca 92614-1400

                                  If to Dealer:
       (At the address shown on the attached Dealer Information Addendum)

16. ACCEPTANCE: This Agreement becomes valid and binding upon acceptance by AIN.
Upon acceptance, AIN shall mail a copy of the fully executed Agreement to
Dealer. Until executed by AIN, this Agreement shall not be binding on AIN and
shall have no force or effect.

17. REQUISITE AUTHORITY: Each party signing this Agreement hereby represents
that he/she is authorized on behalf of his/her respective corporation/entity to
enter into this Agreement, and that each corporation/entity is in good standing
under all applicable laws.

ENTIRE AGREEMENT: This Agreement contains the entire agreement between AIN and
the Dealer and no modification or supplement to the terms hereof shall be
binding unless in writing and signed by both parties.

AIN CORPORATION                           DEALER:
                                                 -------------------------------

By:                                       By:
   ------------------------------------      -----------------------------------
                                                   (Signature)
                                          Name:
                                               ---------------------------------
                                                   (Printed)

Title: Sr. VP Dealer & Customer Service    Title:
       --------------------------------          -------------------------------
                                                   (Printed)

                           DEALER INFORMATION ADDENDUM

ENTER INFORMATION IN EACH BOX CLEARLY AND COMPLETELY

                                                  List New Car Franchises

                                                  1)
                                                    ----------------------------
--------------------------------
Dealer's  Legal Name                              2)
                                                    ----------------------------
--------------------------------                  3)
DBA                                                 ----------------------------
--------------------------------                  4)
Address                                             ----------------------------
                                                  5)
                                                    ----------------------------

DG# __________  Region Name: _________ 4
CarSmart rev. 2/13/02                                            VOID IF ALTERED
<PAGE>

----------------------------------------          6)
City                                                ----------------------------

----------------------------------------          7)
State                                               ----------------------------

----------------------------------------          8)
Zip                                                 ----------------------------
                                                  DEALER E-MAIL ADDRESS:

(      )                                            1.              @
 ------ --------------------------------              --------------  ----------
Telephone No.
                                                    2.              @
(      )                                              --------------  ----------
 ------ --------------------------------
Fax No.
HOURS OF OPERATION:                                 DEALER WEB SITE:

Mon. - Fri.     to                           http://www.
           -----  -------                               -----------------------
Sat.            to
           -----  -------                    CONTACT INFORMATION:

Sun.            to                           CarSmart Rep:
           -----  -------                                 ----------------------
Dealership Slogan:
                                             CarSmart Rep:
========================================                  ----------------------

----------------------------------------

COMPUTER SYSTEM TYPE:

                                             Accounts Payable Contact:
ADP/R&R/Other:                                                       -----------
              --------------------------

[ ] CHECK IF PAYMENT IS ENCLOSED OR RECEIVED.
DEALER HAS VERIFIED ALL OF THE ABOVE FOR ACCURACY: _______________
                                                   DEALER INITIALS

            THE FOLLOWING EMPLOYEE CLASSIFICATIONS ARE AUTHORIZED TO
                   EXECUTE DOCUMENTS ON BEHALF OF THE DEALER:

        Dealer Owner            UCSM                Other:
-------                    -----
        GM                      Fleet Manager             ----------------------
-------                    -----
        GSM                     Internet Manager
-------                    -----
        NCSM                    Business Manager          ----------------------
-------                    -----
        Controller              Service Manager
-------                    -----
        F & I Manager
-------
        Office Manager
-------<PAGE>
                                                                   EXHIBIT 10.37

                     AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

        This Amendment No. 1 to Employment Agreement ("Amendment") is made and
entered into, at Irvine, California, as of the 30th day of January, 2002, by and
between AUTOBYTEL INC. (FORMERLY AUTOBYTEL.COM INC.), a corporation duly
organized under the laws of the State of Delaware (the "Company"), with offices
at 18872 MacArthur Boulevard. Second Floor, Irvine, California, 92612-1400, and
AMIT KOTHARI (hereinafter referred to as the "Employee"), who resides at 27
Union Jack #B, Marina del Ray, California 90292.

                                    RECITALS

        WHEREAS: The Company currently employs and desires to continue to employ
the Employee as Vice President and Corporate Controller of the Company.

        WHEREAS: The Employee is currently employed and desires to continue to
be so employed by the Company.

        WHEREAS: The Company and Employee desire to amend that certain
Employment Agreement, dated as of August 30, 1999, between the Company and
Employee (the "Employment Agreement") as set forth below.

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and with reference to the above recitals, the parties hereby
agree as follows:

                                    ARTICLE 1

                               TERM OF EMPLOYMENT

        1. Section 1.1 of the Employment Agreement is hereby amended in its
entirety as set forth below:

        "Section 1.1 The Company hereby employs the Employee as Vice President
and Corporate Controller of the Company and the Employee hereby accepts such
employment by the Company for a period of one (1) year (the "Term") commencing
from January 30, 2002 (the "Commencement Date") and expiring on the first
anniversary of the Commencement Date (the "Termination Date"), which term shall
automatically renew for one year periods unless either party notifies the other
of its election not to renew at least sixty (60) days prior to the Termination
Date or any applicable anniversary of the Termination Date."

                                    ARTICLE 2

                                  COMPENSATION

        2.1 Section 4.1 of the Employment Agreement is herby amended in its
entirety as set forth below:

        "Section 4.1 As compensation for the services to be rendered by the
Employee pursuant to this Agreement, the Company hereby agrees to pay the
Employee a base salary equal to at least One Hundred Seventy Five Thousand
Dollars ($175,000.00) per year during the Term of this Agreement, which rate may
be increased (but not reduced) in such amounts as the Board deems appropriate.
The base salary shall be paid in substantially equal bimonthly installments, in
accordance with the normal payroll practices of the Company."

                                       1

<PAGE>

        2.2 Section 4.3 of the Employment Agreement is hereby amended in its
entirety as set forth below:

        "Section 4.3 The Company shall provide the Employee with the opportunity
to earn an annual bonus for each fiscal year of the Company, occurring in whole
or in part during the Term. The annual bonus payable to the Employee shall be in
such amount and based on such criteria for the award as may be established by
the Board from time to time."

        2.3 Section 4.4 of the Employment Agreement is hereby amended in its
entirety as set forth below:

        "Section 4.4 The Employee shall participate in all other short term and
long term bonus or incentive plans or arrangements in which other employees of
the Company are eligible to participate from time to time. The Company may
provide for shareholder approval of any performance based compensation and may
provide for the compensation committee to establish any applicable performance
goals and determine whether such performance goals have been met."

                                    ARTICLE 3

                            TERMINATION OF EMPLOYMENT

        3. Article 7 is hereby amended in its entirety to read as set forth
below:

                      "ARTICLE 7 TERMINATION OF EMPLOYMENT

        7.1 TERMINATION FOR CAUSE. The Company may, during the Term, without
notice to the Employee, terminate this Agreement and discharge the Employee for
Cause, whereupon the respective rights and obligations of the parties hereunder
shall terminate; provided, however, that the Company shall immediately pay the
Employee any amount due and owing pursuant to Articles 4, 5 and 6, prorated to
the date of termination. As used herein, the term "for Cause" shall refer to the
termination of the Employee's employment as a result of any one or more of the
following: (i) any conviction of, or pleading of nolo contendre by, the Employee
for any crime or felony; (ii) any willful misconduct of the Employee which has a
materially injurious effect on the business or reputation of the Company; (iii)
the gross dishonesty of the Employee which has a materially injurious effect on
the business or reputation of the Company; or (iv) failure to consistently
discharge his duties under this Agreement which failure continues for thirty
(30) days following written notice from the Company detailing the area or areas
of such failure. For purposes of this Section 7.1, no act or failure to act, on
the part of the Employee, shall be considered "willful" if it is done, or
omitted to be done, by the Employee in good faith or with reasonable belief that
his action or omission was in the best interest of the Company. The Employee
shall have the opportunity to cure any such acts or omissions (other than item
(i) above) within fifteen (15) days of the Employee's receipt of a notice from
the Company finding that, in the good faith opinion of the Company, the Employee
is guilty of acts or omissions constituting "Cause".

        7.2 TERMINATION WITHOUT CAUSE. Anything in this Agreement to the
contrary notwithstanding, the Company shall have the right, at any time in its
sole and subjective discretion, to terminate this Agreement without Cause upon
not less than thirty (30) days prior written notice to the Employee. The term
"termination without Cause" shall mean the termination of the Employee's
employment for any reason other than those expressly set forth in Section 7.1,
or no reason at all, and shall also mean the Employee's decision to terminate
this Agreement by reason of any act, decision or omission by the Company or the
Board that: (A) materially adversely modifies, reduces, changes, or restricts
the Employee's salary, bonus opportunities, options or other compensation
benefits or perquisites, or the Employee's authority, functions, services,
duties,

                                       2

<PAGE>

rights, and privileges as, or commensurate with the Employee's position as, Vice
President and Corporate Controller of the Company as described in Section 2.1
hereof or; (B) relocates the Employee without his consent from the Company's
offices located at 18872 MacArthur Boulevard, Irvine, California, 92612-1400 to
any other location in excess of fifty (50) miles beyond the geographic limits of
Irvine, California; (C) deprives the Employee of his titles and positions of
Vice President and Corporate Controller of the Company, it being understood that
this applies only to reduction in title and position; or (D) involves or results
in any failure by the Company to comply with any provision of this Agreement,
other than an isolated, insubstantial and inadvertent failure not occurring in
bad faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Employee (each a "Good Reason"). In the event the Company
or the Employee shall exercise the termination right granted pursuant to this
Section 7.2, the Company shall, within thirty (30) days of notice of termination
to or from the Employee (as the case may be), pay to the Employee in a single
lump-sum payment the base salary that would have been received by the Employee
if he had remained employed by the Company for an additional six months;
provided, however, that for purposes of calculating the payment pursuant to this
sentence, the Employee's base salary per year shall be the highest rate in
effect during the Term. The Company also shall continue to provide to the
Employee and his beneficiaries, at its sole cost, the insurance coverages
provided by the Company as of the date of termination to the extent he would
have received such insurance coverages had he remained employed by the Company
for an additional six months.

        7.3 TERMINATION FOR DEATH OR DISABILITY. The Employee's employment shall
terminate automatically upon the Employee's death during the Term. If the
Company determines in good faith that the Disability (as defined below) of the
Employee has occurred during the Term, it shall give written notice to the
Employee of its intention to terminate his employment. In such event, the
Employee's employment with the Company shall terminate effective on the 30th day
after receipt of such notice by the Employee, provided that, within the thirty
(30) days after such receipt, the Employee shall not have returned to full-time
performance of his duties.

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

        7.4 TERMINATION WITHOUT GOOD REASON. Anything in this Agreement to the
contrary notwithstanding, the Employee shall have the right, at any time in his
sole and subjective discretion, to terminate this Agreement without Good Reason
upon not less than thirty (30) days prior written notice to the Company. In the
event the Employee voluntarily terminates his employment hereunder other than
for Good Reason, the respective rights and obligations of the parties hereunder
shall terminate; provided, however, that the Company shall immediately pay the
Employee any amount due and owing pursuant to Articles 4, 5 and 6, prorated to
the date of termination.

7.5 OPTIONS.

    (a)  As of the date of the Employee's termination for Cause, any unvested or
         unexercised portion of any option shall terminate immediately and shall
         be of no further force or effect.

    (b)  As of the date of the Employee's termination by the Company without
         Cause, other than for Disability or death, or by the Employee for Good
         Reason, any unvested portion of any option shall become immediately and
         fully vested.

    (c)  As of the date of any voluntary termination of employment with the
         Company by the Employee,

                                       3

<PAGE>

         including due to death or Disability but excluding for Good Reason, or
         termination of employment by the Company for Disability or death, any
         unvested portion of any option shall terminate immediately and shall be
         of no further force or effect."

                                    ARTICLE 4

                       NO MITIGATION OR OFFSET; INSURANCE

4. Article 9 of the Employment Agreement is hereby amended by adding the
   following sections 9.13 and 9.14:

"Section 9.13 MITIGATION. The Employee shall not be required to seek other
employment or to reduce any severance benefit payable to him under Article 7
hereof, and no severance benefit shall be reduced on account of any compensation
received by the Employee from other employment. The Company's obligation to pay
severance benefits under this Agreement shall not be reduced by any amount owed
by the Employee to the Company.

        Section 9.14 INDEMNIFICATION; INSURANCE.

            (a) If the Employee is a party or is threatened to be made a party
to any threatened, pending or completed claim, action, suit or proceeding, or
appeal therefrom, whether civil, criminal, administrative, investigative or
otherwise, because he is or was an officer of the Company, or at the express
request of the Company is or was serving, for purposes reasonably understood by
him to be for the Company, as a director, officer, partner, employee, agent or
trustee (or in any other capacity of an association, corporation, general or
limited partnership, joint venture, trust or other entity), the Company shall
indemnify the Employee against any reasonable expenses (including attorneys'
fees and disbursements), and any judgments, fines and amounts paid in settlement
incurred by him in connection with such claim, action, suit, proceeding or
appeal therefrom to the extent such expenses, judgments, fines and amounts paid
in settlement were not advanced by the Company on his behalf pursuant to
subsection (b) below, to the fullest extent permitted under Delaware law. The
Company shall provide Employee with D&O insurance coverage as the Company may
maintain from time to time.

            (b) Provided that the Employee shall first have agreed to in writing
to repay such amounts advanced if it is determined by an arbitrator or court of
competent jurisdiction that the Employee was not entitled to indemnification,
upon the written request of the Employee specifying the amount of a requested
advance and the intended use thereof, the Company shall indemnify Employee for
his expenses (including attorneys' fees and disbursements), judgments, fines and
amounts paid in settlement incurred by him in connection with such claim,
action, suit, proceeding or appeal whether civil, criminal, administrative,
investigative or otherwise, in advance of the final disposition of any such
claim, action, suit, proceeding or appeal therefrom to the fullest extent
permitted under Delaware law."

                                    ARTICLE 5

                                  MISCELLANEOUS

        5. The terms and conditions of this Amendment shall inure to the benefit
of and be binding upon the successors and assigns of the parties hereto.

                                       4

<PAGE>

        6. This Amendment shall be construed and enforced in accordance with the
laws of the State of California, without giving effect to the principles of
conflict of laws thereof, except that the indemnification provisions of Section
9.14 of the Employment Agreement, as amended hereby, shall be governed by
Delaware law without regard to conflict of laws principles.

        7. This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which shall constitute one
instrument.

        8. Except as amended hereby, the Employment Agreement shall remain in
full force and effect in accordance with its terms.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                 AUTOBYTEL INC.

                                 By: /s/ Jeffrey A. Schwartz
                                    --------------------------------------------
                                     Jeffrey A. Schwartz
                                     Chief Executive Officer and President

                                     /s/ Amit Kothari
                                     -------------------------------------------
                                     Amit Kothari

                                       5

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