Document:

Exhibit 10.77

AUTOBYTEL INC.

AMENDMENT NO. 1

 TO

SEVERANCE BENEFITS AGREEMENT

This Amendment No. 1 to Severance Benefits Agreement ("Amendment") is entered into effective as of November 30, 2012 ("Amendment Effective Date") between Autobytel Inc., a Delaware corporation ("Autobytel" or "Company") and William Ferriolo ("Employee").

Background

Autobytel and Employee have previously entered into a Severance Benefits Agreement dated as of September 17, 2010 ("Severance Benefits Agreement").  The Internal Revenue Service ("IRS") has issued new guidance regarding interpretation of Section 409A of the Code and the IRS' rules and regulations thereunder relating to release contingencies in agreements providing for payment of severance benefits upon a termination of employment. The IRS has provided guidance permitting corrective amendments to agreements with release contingencies to comply with Section 409A and the rules and regulations thereunder. The parties desire to amend the Severance Benefits Agreement to take advantage of such corrective amendments.

The Severance Benefits Agreement was originally entered into in connection with the acquisition of Employee's business and provided for a three-year severance period that declined over the next three-years on a monthly basis. Since the date of the Severance Benefits Agreement, Employee has been promoted to a Senior Vice President, Consumer Acquisitions, and the Company has determined that it is in its best interests to provide Employee with additional incentives and comfort regarding Employee's position with the Company to encourage Employee's continued employment with, and dedication to the business of, the Company.  Therefore, Employee's severance term is being changed from a declining three-year balance to a fixed twelve months as is the same for the Company's other senior vice presidents.

The parties have also identified a drafting error in the definition of Change in Control. The second paragraph of such definition should reference to individuals who were on the Company's board of directors as of the Effective Date of the Severance Benefits Agreement.  The Severance Benefits Agreement incorrectly refers to individuals who were on the Company's board of directors as of the "Date of Grant of this option award."

In addition, the parties have identified a drafting error in the form of Separation Agreement and Release attached as an exhibit to the Severance Benefits Agreement ("Release"). Section 9 of the Release incorrectly provides that the Employee is releasing the Company from claims for the Company's failure to make some payments to Employee under the Severance Benefits Agreement and, if applicable, claims under the ADEA. The parties acknowledge that this is not the intent of the parties and that the intent of the parties was to have Employee release the Company from all claims, including claims under the ADEA, but excluding claims relating to enforcement of the Release.  The parties desire to amend the form of Release to correctly reflect their intent.

Finally, the parties acknowledge that under the ADEA, for persons age 40 and over at the time of termination of employment who are releasing ADEA claims, the ADEA and the rules and regulations thereunder provide for extended consideration periods of either 21 or 45 days for the employee to consider executing the Release and may require the delivery of additional information to the terminated employee, depending on the circumstances of the termination (i.e., if the termination was in connection with a "group" termination). The form of Release attached to the Severance Benefits Agreement does not provide for the extended consideration period or the delivery of additional information in the case of a group termination. The parties desire to provide Employee with the extended consideration period and additional information delivery in the event Employee is age 40 or over at the time of termination and the termination is in connection with a "group" termination.

In order to implement the foregoing and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows. Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Severance Benefits Agreement.

1.            Amendments to Severance Benefits Agreement.

(a)            The second paragraph of the definition of Change in Control in Section 1(e) of the Severance Benefits Agreement is hereby amended in its entirety to read as follows:

(ii)        When the individuals who, as of the Effective Date, constitute the Board ("Incumbent Board"), cease for any reason to constitute at least a majority of the Board; provided however, that any individual becoming a director subsequent to such date, whose election, or nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall, for purposes of this section, be counted as a member of the Incumbent Board in determining whether the Incumbent Board constitutes a majority of the Board.

(b)            Section 1(j) of the Severance Benefits Agreement is hereby amended in its entirety to read as follows:

(j) "Employee's Position" means Employee's position as the Senior Vice President, Consumer Acquisitions of the Company.

(c)            Section 1(n) of the Severance Benefits Agreement is hereby amended in its entirety to read as follows:

(n) "Severance Period" shall equal twelve (12) months.

(d)            Sections 2(d) and 2(e) of the Severance Benefits Agreement are hereby amended in their entirety to read as follows:

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(d)            The payments and benefits set forth in Sections 2(a), 2(b) and 2(c) are conditioned upon and shall be provided to Employee only if (i) Employee has executed and delivered to the Company a Separation and Release Agreement in favor of the Company and Releasees, which agreement shall be substantially in the form attached hereto as Exhibit A ("Release") no later than the expiration of the applicable period of time allowed for Employee to consider the Release as set forth in Section 13 of the Release ("Release Consideration Period"); (ii) Employee has not revoked the Release prior to the expiration of the applicable revocation period set forth in Section 13 of the Release ("Release Revocation Period"); and (iii) the Release has become effective and non-revocable no later than the cumulative period of time represented by the sum of the maximum Release Consideration Period and the maximum Release Revocation Period. No payments or benefits set forth in Sections 2(a), 2(b) or 2(c) shall be due or payable to, or provided to, Employee if the Release has not become effective and non-revocable in accordance with the requirements of this Section 2(d).

(e)            Upon satisfaction of the conditions set forth in Section 2(d), but subject to the last sentence of this Section 2(e), all payments under Section 2(a)(A) shall be made to Employee within five (5) business days after the Release becomes effective and non-revocable in accordance with its terms. In any case, the payment under Section 2(a)(A) shall be made no later than two and one-half months after the end of the calendar year in which Employee's Separation from Service occurs, provided that the Release shall have become effective and non-revocable in compliance with Section 2(d) prior to expiration of such two and one-half month period. If the period of time covered by the entire allowed Release Consideration Period, the entire Release Revocation Period and the entire five business day period described above in this Section 2(e) (considering such periods consecutively) begins in one calendar year and ends in the following calendar year, all payments under Section 2(a)(A) shall be made to Employee on the first business day of such following calendar year which is five (5) or more business days after the date on which the Release became effective and non-revocable in accordance with its terms.

(e)            Section 3 of the Severance Benefits Agreement is hereby amended in its entirety to read as follows:

3.            Taxes.  All payments made pursuant to this Agreement will be subject to withholding of applicable taxes. Notwithstanding the foregoing, and except as otherwise specifically provided elsewhere in this Agreement, Employee is solely responsible and liable for the satisfaction of any federal, state, province or local taxes that may arise with respect to this Agreement (including any taxes and interest arising under Section 409A of the Code).  Neither the Company nor any of its employees, directors, or service providers shall have any obligation whatsoever to pay such taxes or interest, to prevent Employee from incurring them, or to mitigate or protect Employee from any such tax or interest liabilities.

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Notwithstanding anything in this Agreement to the contrary, if any amounts that become due under this Agreement on account of Employee's termination of employment constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code, payment of such amounts shall not commence until Employee incurs a Separation from Service.  If, at the time of Employee's Separation from Service under this Agreement, Employee is a "specified employee" (within the meaning of Section 409A of the Code), any amounts that constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code that become payable to Employee on account of Employee's Separation from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth calendar month beginning after Employee's Separation from Service ("409A Suspension Period").  Within 14 calendar days after the end of the 409A Suspension Period, Employee shall be paid a lump sum payment, without interest, in cash equal to any payments delayed because of the preceding sentence.  Thereafter, Employee shall receive any remaining benefits as if there had not been an earlier delay.  With respect to the reimbursement of expenses to which Employee is entitled under this Agreement, if any, or the provision of in-kind benefits to Employee as specified under this Agreement, if any, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions:  (i) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code, solely to the extent that the arrangement provides for a limit on the amount of expenses that may be reimbursed under such arrangement over some or all of the period in which the reimbursement arrangement remains in effect; (ii) the reimbursement of an eligible expense shall be made no later than the end of the calendar year after the calendar year in which such expense was incurred; (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; and (iv) the right to reimbursement or provision of in-kind benefits shall not apply to any expenses incurred or benefits to be provided beyond the last day of the second taxable year following the year in which Employee's Separation from Service occurred.

2.            Release Corrections.

(a)  Section 9 of the Release is hereby amended in its entirety to read as follows:

In consideration for the payments provided for in Paragraph 3, you unconditionally release and forever discharge the Company, and the Company's current, former, and future controlling shareholders, subsidiaries, affiliates, related companies, predecessor companies, divisions, directors, trustees, officers, employees, agents, attorneys, successors, and assigns (and the current, former, and future controlling shareholders, directors, trustees, officers, employees, agents, and attorneys of such subsidiaries, affiliates, related companies, predecessor companies, and divisions)

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(referred to collectively as "Releasees"), from any and all known and unknown claims, demands, actions, suits, causes of action, obligations, damages and liabilities of whatever kind or nature and regardless of whether the knowledge thereof would have materially affected your agreement to release the Company hereunder, based on any act, omission, event, occurrence, or nonoccurrence from the beginning of time to the date of execution of this Release, including, but not limited to, claims that arise out of or in any way relate to your employment or your separation from employment with the Company, including those rights or claims arising under the Age Discrimination in Employment Act ("ADEA").  The Release will not (i) waive the Employee's rights to indemnification under the Company's certificate of incorporation or by-laws or, if applicable, any written agreement between the Company and the Employee, or under applicable law; or (ii) constitute a release of any claims to enforce this Release.

With respect to the various rights and claims under the ADEA being waived by you in this Agreement, you specifically acknowledge that you have read and understand the provisions of paragraphs 13, 14, and 15 below before signing this Agreement. This general release does not cover rights or claims under the ADEA arising after you sign this Agreement.

(b)  Section 13 of the Release is hereby amended in its entirety to read as follows:

[Alternative 1 for Section 13 if Employee is age 40 or over at time of separation from employment, separation from employment is NOT in connection with a group separation under ADEA]

You understand that You have twenty-one (21) days after this Release has been delivered to You by the Company to decide whether to sign this Release, although You may sign this Release at any time within the twenty-one (21) day period.  If You do sign it, You also understand that You will have an additional seven (7) days after the date You deliver this signed Release to the Company and to change your mind and revoke this Release, in which case a written notice of revocation must be delivered to the Company's Chief Legal Officer, Autobytel Inc., 18872 MacArthur Blvd. Suite 200, Irvine, California 92612-1400, on or before the seventh (7th) day after your delivery of this signed Release to the Company (or on the next business day if the seventh calendar day is not a business day).  You understand that this Release will not become effective or enforceable until after that seven (7) day period has passed.  If You revoke this Release, this Release shall not be effective or enforceable as to any rights You may have under this Release.  In the event that You revoke this Release, You will not be entitled to the payments and benefits specified in Paragraph 2.

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[Alternative 2 for Section 13 if Employee is age 40 or over at time of separation from employment, separation from employment IS in connection with a group termination under ADEA]

(a)            You understand that You have forty-five (45) days after this Release has been delivered to You by the Company to decide whether to sign this Release, although You may sign this Release at any time within the forty-five (45) day period.  If You do sign it, You also understand that You will have an additional seven (7) days after You sign to change your mind and revoke this Release, in which case a written notice of revocation must be delivered to the Company's Chief Legal Officer, Autobytel Inc., 18872 MacArthur Blvd. Suite 200, Irvine, California 92612-1400, on or before the seventh (7th) day after your delivery of this signed Release to the Company (or on the next business day if the seventh calendar day is not a business day).  You understand that this Release will not become effective or enforceable until after that seven (7) day period has passed.  If You revoke this Release, this Release shall not be effective or enforceable as to any rights You may have under this Release.  In the event that You revoke this Release, You will not be entitled to the payments and benefits specified in Paragraph 2.

(b)            You acknowledge that You have received the group information of employees included in the Company's ____________ [If this Alternative 2 is applicable to the circumstances of termination, then this blank will be filled in at the time] group termination program, the eligibility factors for participation in the program, and the time limits for participation in the program.  You also acknowledge that You have received lists of the ages and job titles of employees eligible or selected for the program and employees not eligible or selected for the group termination program.  This information is set forth on Appendix A attached hereto and incorporated herein by reference.

3.            No Other Changes. Except as set forth above, all other terms and conditions of the Severance Benefits Agreement remain unchanged and in full force and effect.

EMPLOYEE ACKNOWLEDGES THAT: (I) THE COMPANY HAS ADVISED EMPLOYEE TO CONSULT WITH AN ATTORNEY AND/OR TAX ADVISOR OF EMPLOYEE'S CHOOSING (AND AT EMPLOYEE'S OWN COST AND EXPENSE) BEFORE EXECUTING THIS AMENDMENT, AND (II) EMPLOYEE IS NOT RELYING UPON THE COMPANY FOR, AND THE COMPANY HAS NOT PROVIDED, LEGAL OR TAX ADVICE TO EMPLOYEE IN CONNECTION WITH THIS AMENDMENT.  IT IS THE RESPONSIBILITY OF EMPLOYEE TO SEEK INDEPENDENT TAX AND LEGAL ADVICE WITH REGARD TO THE TAX TREATMENT OF THIS AMENDMENT AND THE PAYMENTS AND BENEFITS THAT MAY BE MADE OR PROVIDED UNDER THE SEVERANCE BENEFITS AGREEMENT, AS AMENDED BY THIS AMENDMENT AND ANY OTHER RELATED MATTERS. EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS HAD A REASONABLE OPPORTUNITY TO SEEK AND CONSIDER ADVICE FROM EMPLOYEE'S ATTORNEY AND TAX ADVISORS.

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IN WITNESS WHEREOF, the Company and Employee have executed and entered into this Amendment effective as of the date first shown above. 

AUTOBYTEL INC.

By:            /s/ Glenn E. Fuller

Glenn E. Fuller

Executive Vice President, Chief Legal and Administrative Office and Secretary

EMPLOYEE

                          /s/ William Ferriolo  

William Ferriolo

7Exhibit 10.79

AUTOBYTEL INC. 2010 EQUITY INCENTIVE PLAN

Employee Stock Option Award Agreement

 (Non-Qualified 2013 Performance-Based Stock Options)

This Employee Stock Option Award Agreement ("Agreement") is entered into effective as of the Grant Date set forth on the signature page to this Agreement ("Grant Date") by and between Autobytel Inc., a Delaware corporation ("Company"), and the person set forth as Participant on the signature page hereto ("Participant").

This Agreement and the stock options granted hereby are subject to the provisions of the Autobytel Inc. 2010 Equity Incentive Plan ("Plan").  In the event of a conflict between the provisions of the Plan and this Agreement, the Plan shall control.  Capitalized terms used but not defined in this Agreement shall have the meanings assigned to such terms in the Plan.

	
1.

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

	
2.

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

	
3.

	
Vesting.  The Options shall become vested and exercisable in accordance with the vesting schedule attached hereto as Exhibit A and incorporated herein by reference ("Vesting Schedule").  No installments of the Options shall vest after Participant's termination of employment for any reason.

	
4.

	
Exercise of Options.

(a)            Manner of Exercise.  To the extent vested, the Options may be exercised, in whole or in part, by delivering written notice to the Company in accordance with Section 9(f) in such form as the Company may require from time to time, or at the direction of the Company, through the procedures established with the Company's third party option administration service.  Such notice shall specify the number of Shares subject to the Options as to which the Options are being exercised and shall be accompanied by full payment of the Exercise Price of such Shares in a manner permitted under the terms of Section 5.5 of the Plan (including same day sales through a broker), except that payment in whole or in part in a manner set forth in clauses (ii), (iii) or (iv) of Section 5.5(b) of the Plan may only be made with the consent of the Committee.  The Options may be exercised only in multiples of whole Shares, and no fractional Shares shall be issued.

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

	
2013 Performance Based

Revision Date 1/28/2013

	
 

	
 

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

 

5.            Termination of Options.

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

(b)            Termination of Employment.

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

(1)            Termination of Employment On or After Determination of Vesting Eligible Performance Options.  In the event of a termination of Participant's employment by the Company without Cause or by Participant for Good Reason on or after the date that the Vesting Eligible Performance Options (as defined in the Vesting Schedule) are determined ("Vesting Eligible Performance Options Determination Date"), the provisions of this Section 5(b)(i)(1) shall apply rather than Section 5(b)(i)(2).  Any unvested portion of the Vesting Eligible Performance Options shall become immediately and fully vested as of the date of such termination of employment without Cause or for Good Reason.  Participant may exercise the vested portion of the Vesting Eligible Performance Options for a period of ninety (90) days (but in no event later than the Option Expiration Date) following the date of any such termination of Participant's employment with the Company either by Participant or the Company, other than in the event of a termination of Participant's employment by the Company for Cause or by reason of Participant's death or Disability.  To the extent Participant is not entitled to exercise the Options at the date of termination of employment, or if Participant does not exercise the Options within the time specified in the Plan or this Agreement for post-termination of employment exercises of the Options, the Options shall terminate.  For purposes of this Agreement, the terms "Cause" and "Good Reason" shall have the meanings ascribed to them in that certain Severance Benefits Agreement identified on the signature page to this Agreement ("Severance Agreement").

(2)            Termination of Employment Prior to Determination of Vesting Eligible Performance Options.  In the event of a termination of Participant's employment by the Company without Cause or by Participant for Good Reason before the Vesting Eligible Performance Options Determination Date, the provisions of this Section 5(b)(i)(2) shall apply rather than Section 5(b)(i)(1).  Unless otherwise, expired, terminated,

	
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Revision Date 1/28/2013

	
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forfeited or cancelled prior to the Vesting Eligible Performance Options Determination Date in accordance with the Plan or this Agreement, no Options shall expire or be cancelled or terminated, nor may any Options be exercised until such time as the Vesting Eligible Performance Options are determined.  Once the Vesting Eligible Performance Options are determined, any unvested portion of the Vesting Eligible Performance Options shall become immediately and fully vested as of the Vesting Eligible Performance Options Determination Date.  Participant may exercise the vested portion of the Vesting Eligible Performance Options for a period of ninety (90) days (but in no event later than the Option Expiration Date) following the Vesting Eligible Performance Options Determination Date.  To the extent Participant does not exercise the Options within the time specified in the Plan or this Agreement for post-termination of employment exercises of the Options, the Options shall terminate.

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

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

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

(c)            Change in Control.  In the event of a Change in Control, the effect of the Change in Control on the Options shall be determined by the applicable provisions of the Plan

	
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(including, without limitation, Article 11 of the Plan), provided that (i) to the extent the Options are assumed or substituted for in connection with the Change in Control, or the Company is the ultimate parent corporation upon the consummation of the Change in Control and the Company continues the Options, the Options will vest and become fully exercisable in accordance with clause (i) of Section 11.2(a) of the Plan only if within twelve (12) months following the date of the Change in Control Participant's employment is terminated by the Company or a Subsidiary (or the successor company or a subsidiary or parent thereof) without Cause; and (ii) any portion of the Options which vests and becomes exercisable pursuant to Section 11.2(b) of the Plan as a result of such Change in Control will (1) vest and become exercisable on the day prior to the date of the Change in Control if Participant is then employed by the Company or a Subsidiary and (2) terminate on the date of the Change in Control.  Notwithstanding the foregoing, if on the date of the Change in Control the Fair Market Value of one Share is less than the Exercise Price per Share, then the Options shall terminate as of the date of the Change in Control except as otherwise determined by the Committee.

(d)            Extension of Exercise Period.  Notwithstanding any provisions of this Section 5 to the contrary, if exercise of the Options following termination of employment or service during the time period set forth in the applicable paragraph or sale during such period of the Shares acquired on exercise would violate any of the provisions of the federal securities laws (or any Company policy related thereto), the time period to exercise the Options shall be extended until the later of (i) forty-five (45) days after the date that the exercise of the Options or sale of the Shares acquired on exercise would not be a violation of the federal securities laws (or a related Company policy), or (ii) the end of the applicable time period based on the applicable reason for the termination of employment as set forth in this Section 5; provided, however, that in no event shall the exercisability of the Options be extended beyond the Option Expiration Date.

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

(f)            Forfeiture upon Engaging in Detrimental Activities.  If, at any time within the twelve (12) months after (i) Participant exercises any portion of the Options; or (ii) the effective date of any termination of Participant's employment by the Company or by Participant for any reason, Participant engages in, or is determined by the Committee in its sole discretion to have engaged in, any (i) material breach of any non-competition, non-solicitation, non-disclosure, or settlement or release covenant or agreement with the Company or any Subsidiary;

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

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

(h)            Reversion of Expired, Cancelled and Forfeited Options to Plan.  Any Options that do not vest or that are cancelled, terminated or expire unexercised are forfeited and revert to the Plan and shall again be available for Awards under the Plan.

 

6.            Miscellaneous.

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

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

	
2013 Performance Based

Revision Date 1/28/2013

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

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

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

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

Notices to the Company should be addressed to:

Autobytel Inc.

18872 MacArthur Blvd., Suite 200

Irvine, CA  92612-1400

Attention:  General Counsel

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

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

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

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

	
2013 Performance Based

Revision Date 1/28/2013

	
6

	
 

[Name] – 1/24/2013

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

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

Remainder of Page Intentionally Left Blank; Signature Page Follows

 

	
2013 Performance Based

Revision Date 1/28/2013

	
7

	
 

[Name] – 1/24/2013

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

Grant Date:                                         January 24, 2013  

Total Options Granted:                                                                                                                                                                                                                                             

 (Maximum Vesting Eligible Performance Options)

Exercise Price Per Share:                                                                                                                     $ 4.00

Severance Benefits Agreement:  Severance Benefits Agreement dated as of _______________ by and between the Company and Participant.

"Company"                                                                                                                          Autobytel Inc., a Delaware corporation

By:                                                                                    

Glenn E. Fuller

Executive Vice President, Chief Legal and Administrative Officer and Secretary

"Participant"                                                                                                                                                                                                                                                                              

[Printed Name of Participant]

 

	
2013 Performance Based

Revision Date 1/28/2013

	
8-

	
 

[Name] – 1/24/2013

Exhibit A

Vesting Schedule

For

2013 Performance Options

The Options granted under this Agreement shall be subject to two vesting requirements and conditions:  (i) percentage achievement (based on the 2013 Incentive Compensation Achievement Scale) of the 2013 EBITDA Goal and 2013 Revenue Goal, as determined below ("Company Performance Goals Component"); and (ii) time vesting based on the time vesting schedule ("Time Vesting Schedule") set forth below ("Time Vesting Component").  For Options to vest and become exercisable, the number of Options eligible to vest under the Time Vesting Component must first be determined under the Company Performance Goals Component in accordance with the formulas set forth below ("Vesting Eligible Performance Options").  The aggregate number of Vesting Eligible Performance Options is determined based upon achievement of Company performance goals.  Once the aggregate number of Vesting Eligible Performance Options is determined, the Vesting Eligible Performance Options are then subject to vesting under the Time Vesting Component in accordance with the Time Vesting Schedule.  Options that are not determined to be Vesting Eligible Performance Options shall not vest and shall be cancelled as soon as the number of Vesting Eligible Performance Options is determined by the Committee.  Any Options that do not vest or that are cancelled, terminated or expire unexercised are forfeited and revert to the Plan and shall again be available for Awards under the Plan.

The number of Vesting Eligible Performance Options (which may not exceed the Maximum Number of Vesting Eligible Performance Options) is determined in accordance with the following formula:

[2013 Combined Company Performance Goals Funded Percentage] x [Maximum Number of Vesting Eligible Performance Options]

The following definitions apply to this Vesting Schedule:

EBITDA means earnings before, interest, taxes, depreciation and amortization. EBITDA is calculated as follows:  2013 Company Net Income plus interest, taxes, depreciation and amortization, all as determined in accordance with GAAP.

GAAP means generally accepted accounting principles.

Maximum Number of Vesting Eligible Performance Options means the maximum number of Options that can be determined to be Vesting Eligible Performance Options.  The Maximum Number of Vesting Eligible Performance Options is set forth on the signature page to this Agreement.

Revenues means the Company's total net revenues for 2013 as determined in accordance with GAAP.

	
2013 Performance Based

Revision Date 1/28/2013

	
9

	
 

[Name] – 1/24/2013

Time Vesting Schedule means the following vesting schedule for Vesting Eligible Performance Options:  (1) thirty-three and one-third percent (33 1/3%) of the Vesting Eligible Performance Options shall vest and become exercisable on the first anniversary of the Grant Date; and (2) one thirty-sixth (1/36th) the Vesting Eligible Performance Options shall vest and become exercisable on each successive monthly anniversary thereafter for the following twenty-four (24) months ending on the third anniversary of the Grant Date.

2013 Combined Company Performance Goals Funded Percentage means the percentage resulting from the following calculation:

[2013 EBITDA Goal Funded Percentage x 2013 EBITDA Goal Allocation Percentage] + [2013 Revenue Goal Funded Percentage x 2013 Revenue Goal Allocation Percentage]

2013 EBITDA Goal means the target goal set for the Company's 2013 EBITDA.  The 2013 EBITDA Goal is _______________.

2013 EBITDA Goal Allocation Percentage means the percentage of the 2013 Target Incentive Compensation Opportunity allocated to the EBITDA goal component.  The 2013 Revenue Goal Allocation Percentage is fifty percent (50%).

2013 EBITDA Goal Funded Percentage means the percentage obtained from the column entitled "Funded Percentage" in the 2013 Incentive Compensation Achievement Scale applicable to the 2013 EBITDA Goal Percentage Achieved.

2013 EBITDA Goal Percentage Achieved means the percentage of the Company's 2013 EBITDA Goal achieved calculated by dividing the Company's 2013 actual EBITDA achieved by the Company's 2013 EBITDA Goal; provided that the 2013 EBITDA Goal Percentage Achieved may not be greater than one hundred percent (100%), and in the case of achievement below sixty-seven percent (67%), the 2013 EBITDA Goal Percentage Achieved shall be zero (0).

	
2013 Performance Based

Revision Date 1/28/2013

	
10

	
 

[Name] – 1/24/2013

2013 Incentive Compensation Achievement Scale:

	
2013 Revenue Scale

	
 

	
2013 EBITDA Scale

	
Revenue

	
Performance

	
Payout

	
 

	
EBITDA

	
Performance

	
Payout

	
 

	
67%

	
1%

	
 

	
 

	
67%

	
1%

	
 

	
68%

	
4%

	
 

	
 

	
68%

	
4%

	
 

	
69%

	
7%

	
 

	
 

	
69%

	
7%

	
 

	
70%

	
10%

	
 

	
 

	
70%

	
10%

	
 

	
71%

	
13%

	
 

	
 

	
71%

	
13%

	
 

	
72%

	
16%

	
 

	
 

	
72%

	
16%

	
 

	
73%

	
19%

	
 

	
 

	
73%

	
19%

	
 

	
74%

	
22%

	
 

	
 

	
74%

	
22%

	
 

	
75%

	
25%

	
 

	
 

	
75%

	
25%

	
 

	
76%

	
28%

	
 

	
 

	
76%

	
28%

	
 

	
77%

	
31%

	
 

	
 

	
77%

	
31%

	
 

	
78%

	
34%

	
 

	
 

	
78%

	
34%

	
 

	
79%

	
37%

	
 

	
 

	
79%

	
37%

	
 

	
80%

	
40%

	
 

	
 

	
80%

	
40%

	
 

	
81%

	
43%

	
 

	
 

	
81%

	
43%

	
 

	
82%

	
46%

	
 

	
 

	
82%

	
46%

	
 

	
83%

	
49%

	
 

	
 

	
83%

	
49%

	
 

	
84%

	
52%

	
 

	
 

	
84%

	
52%

	
 

	
85%

	
55%

	
 

	
 

	
85%

	
55%

	
 

	
86%

	
58%

	
 

	
 

	
86%

	
58%

	
 

	
87%

	
61%

	
 

	
 

	
87%

	
61%

	
 

	
88%

	
64%

	
 

	
 

	
88%

	
64%

	
 

	
89%

	
67%

	
 

	
 

	
89%

	
67%

	
 

	
90%

	
70%

	
 

	
 

	
90%

	
70%

	
 

	
91%

	
73%

	
 

	
 

	
91%

	
73%

	
 

	
92%

	
76%

	
 

	
 

	
92%

	
76%

	
 

	
93%

	
79%

	
 

	
 

	
93%

	
79%

	
 

	
94%

	
82%

	
 

	
 

	
94%

	
82%

	
 

	
95%

	
85%

	
 

	
 

	
95%

	
85%

	
 

	
96%

	
88%

	
 

	
 

	
96%

	
88%

	
 

	
97%

	
91%

	
 

	
 

	
97%

	
91%

	
 

	
98%

	
94%

	
 

	
 

	
98%

	
94%

	
 

	
99%

	
97%

	
 

	
 

	
99%

	
97%

	
 

	
100%

	
100%

	
 

	
 

	
100%

	
100%

	
 

	
101%

	
103%

	
 

	
 

	
101%

	
103%

	
 

	
102%

	
106%

	
 

	
 

	
102%

	
106%

	
 

	
103%

	
109%

	
 

	
 

	
103%

	
109%

	
 

	
104%

	
112%

	
 

	
 

	
104%

	
112%

	
 

	
105%

	
115%

	
 

	
 

	
105%

	
115%

	
 

	
106%

	
118%

	
 

	
 

	
106%

	
118%

	
 

	
107%

	
121%

	
 

	
 

	
107%

	
121%

	
 

	
108%

	
124%

	
 

	
 

	
108%

	
124%

	
 

	
109%

	
127%

	
 

	
 

	
109%

	
127%

	
 

	
110%

	
130%

	
 

	
 

	
110%

	
130%

	
 

	
111%

	
133%

	
 

	
 

	
111%

	
133%

	
 

	
112%

	
136%

	
 

	
 

	
112%

	
136%

	
 

	
113%

	
139%

	
 

	
 

	
113%

	
139%

	
 

	
114%

	
142%

	
 

	
 

	
114%

	
142%

	
 

	
115%

	
145%

	
 

	
 

	
115%

	
145%

	
 

	
116%

	
148%

	
 

	
 

	
116%

	
148%

	
 

	
117%

	
151%

	
 

	
 

	
117%

	
151%

	
 

	
118%

	
154%

	
 

	
 

	
118%

	
154%

	
 

	
119%

	
157%

	
 

	
 

	
119%

	
157%

	
 

	
120%

	
160%

	
 

	
 

	
120%

	
160%

 

	
2013 Performance Based

Revision Date 1/28/2013

	
11

	
 

[Name] – 1/24/2013

2013 Revenue Goal means the target goal set for the Company's 2013 Revenues.  The 2013 Revenue Goal is ____________________.

2013 Revenue Goal Allocation Percentage means the percentage of the 2013 Target Incentive Compensation Opportunity allocated to the revenue goal component.  The 2013 Revenue Goal Allocation Percentage is fifty percent (50%).

2013 Revenue Goal Funded Percentage means the percentage obtained from the column entitled "Funded Percentage" in the 2013 Incentive Compensation Achievement Scale applicable to the 2013 Revenue Goal Percentage Achieved.

2013 Revenue Goal Percentage Achieved means the percentage of the Company's 2013 Revenue Goal achieved calculated by dividing the Company's 2013 actual revenues achieved by the 2013 Revenue Goal; provided that the 2013 Revenue Goal Percentage Achieved may not be greater than one hundred percent (100%), and in the case of achievement below sixty-seven percent (67%), the 2013 Revenue Goal Percentage Achieved shall be zero (0).

	
2013 Performance Based

Revision Date 1/28/2013

	
12

	
 

[Name] – 1/24/2013

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]