Document:

Form of Employee Inducement Stock Option Agreement

 Exhibit 4.10 
 FORM OF 
 INDUCEMENT STOCK OPTION AGREEMENT 
 THIS AGREEMENT is made as of the      day of
                    , 200     (the “Grant Date”), by and between Autobytel Inc. (“Autobytel” or
the “Company”) and [Name of employee] (“Optionee”). 
 RECITALS 
 WHEREAS, the Company has adopted the 2006 Inducement Stock Option Plan (the “Plan”). 
 WHEREAS, the Company desires to offer employment to Optionee. 
 WHEREAS, as an inducement to accept such employment offer, the Company desires to offer Optionee an option (the “Option”) to purchase
                     shares of Common Stock (the shares subject to this award being referred to below as the “Shares”) under the
terms and conditions set forth herein. 
 WHEREAS, the exercise price for the Shares subject to this Option shall be equal to the Fair
Market Value of Shares on the Grant Date. 
 NOW THEREFORE, it is hereby agreed as follows: 
 1. Grant of Option. Autobytel hereby grants to Optionee, as of the Grant Date, an Option to purchase up to
                     Shares at the Exercise Price per Share. The Shares shall be purchasable from time to time in accordance with the Vesting
Schedule in Paragraph 3(b). 
 2. Option Term. The Option shall have a maximum term of ten (10) years measured from the
Grant Date and shall accordingly expire at the close of business on the tenth anniversary of the Grant Date, unless sooner terminated in accordance with Paragraph 6, 7 or 8. 
 3. Exercisability/Vesting. 
 (a) Right to Exercise. This Option shall be exercisable during its term in accordance with the Vesting Schedule and with the applicable provisions of the Plan and this Agreement. In the event of Optionee’s
death, disability or other termination of Service, this Option shall be exercisable in accordance with the applicable provisions of the Plan and this Agreement. 
 (b) Vesting Schedule. Subject to Paragraphs 5, 6, 7 and 8, thirty-three and one-third percent (33 1/3%) of the Option shall vest
and become exercisable on the first anniversary after the Grant Date, and one thirty-sixth (1/36) of the Option shall vest and become exercisable on each successive monthly anniversary thereafter for the following twenty-four (24) months
ending on the third anniversary of such Grant Date. The Option shall remain exercisable to the extent vested until the Expiration Date or the sooner termination of the Option term under Paragraphs 6, 7 and 8. 

 (c) Method of Exercise. This Option shall be exercisable by written notice (in the
form attached as Exhibit I) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as may be required by the Company pursuant to
the provisions of the Plan. Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. This
Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 
 No Shares will be issued
pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any stock exchange or automated inter-dealer quotation system upon which the Shares may then be
listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. 
 (d) Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of
the Optionee: 
 (i) cash; 
 (ii) certified, bank cashier’s, or teller’s check; 
 (iii) surrender of other
shares of Common Stock which (A) in the case of Shares acquired pursuant to the exercise of a Company option, have been owned by the Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on
the date of surrender equal to the Exercise Price of the Shares as to which the Option is being exercised; or 
 (iv) if
established by Autobytel and permitted under applicable law (including the financial accounting rules associated with avoiding additional financial expense through the method of exercise), through a “same day sale” commitment from Optionee
and a broker-dealer approved by Autobytel whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for the total Exercise Price for the Shares being exercised and whereby the
broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price for the Shares being exercised directly to Autobytel plus the applicable Federal, state and local income taxes required to be withheld by Autobytel by
reason of such exercise. 
 4. Withholding Tax. In the event the Company determines that it is required to withhold employment
or income tax in connection with an Option (for instance, as a result of the exercise of an Option as a condition for the exercise thereof), the Optionee may be required to make arrangements satisfactory to the Company to enable it to satisfy such
withholding requirements. Payment of such withholding requirements may be made, in the discretion of the Administrator, (i) in cash, (ii) by delivery of shares of Common Stock registered in the name of the Optionee having a Fair Market
Value at the time the Optionee becomes subject to income tax equal to the amount to be withheld and that have been held by the Optionee for more than six months, (iii) by the Company retaining or not issuing such number of Shares subject to the

  

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Option as have a Fair Market Value at the time the Optionee becomes subject to income tax equal to the amount to be withheld or (iv) any combination of
(i), (ii) and (iii) above. 
 5. Restrictions on Exercise. This Option may not be exercised if the issuance of such
Shares upon such exercise or the method of payment of consideration for such Shares would constitute a violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of
Federal Regulations (“Regulation G”) as promulgated by the Federal Reserve Board. 
 6. Termination of Relationship.
As of the date of the Optionee’s termination of Service, Optionee may, to the extent otherwise so entitled at the date of such termination, exercise this Option for a period of ninety (90) days following the date of termination (and in no
event later than the Expiration Date of the term of such Option). To the extent that Optionee was not entitled to exercise this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 7. Disability of Optionee.
Notwithstanding the provisions of Paragraph 6 above, in the event of termination of an Optionee’s Service as a result of his or her Total and Permanent Disability, Optionee may, but only within six (6) months from the date of such
termination (and in no event later than the Expiration Date), exercise the Option to the extent otherwise entitled to exercise it at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the Expiration
Date, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
 8. Death of Optionee. In the event of termination of Optionee’s Service as a result of the death of Optionee, the Option may be
exercised at any time within twelve (12) months following the date of death (but in no event later than the Expiration Date), by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent the Optionee could exercise the Option at the date of death.
 9. Stockholder Rights. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued, except as provided in the Plan. 
 10. Non-Transferability
of Option. This Option may not be transferred in any manner otherwise than by will, the laws of descent or as otherwise contemplated by and in accordance with the Plan. The terms of this Option shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee. 
 11. No Impairment of Rights. This Agreement shall not in any
way affect the right of Autobytel to adjust, reclassify, reorganize or otherwise make changes in its capital or business 

  

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structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 12. Compliance with Laws and Regulations. 
 (a) The exercise of the Option and the issuance of the Shares upon such exercise shall be subject to compliance by Autobytel and Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange or automated inter-dealer quotation system on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
 (b) The inability of Autobytel to obtain approval from any regulatory body having authority deemed by Autobytel to be necessary to the
lawful issuance and sale of any Common Stock pursuant to the Option shall relieve Autobytel of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. However, Autobytel
shall use its best efforts to obtain all such applicable approvals. 
 13. Successors and Assigns. Except to the extent
otherwise provided in Paragraphs 8 and 10, the provisions of this Agreement shall inure to the benefit of, and be binding upon, Autobytel and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and
legatees of Optionee’s estate. 
 14. Governing Law. The interpretation, performance, and enforcement of this Agreement
shall be governed by the laws of the State of Delaware without resort to its conflict-of-laws rules. 
 15. Non-Statutory Stock
Options. The Option granted hereunder is not intended to be an incentive stock option within the meaning of Section 422 of the Code. 
 16. No Right to Continued Service. Nothing in this Agreement shall confer upon Optionee any right to continue in the Service of Autobytel or shall interfere with or restrict in any way the rights of Autobytel which are hereby
expressly reserved, to discharge Optionee at any time for any reason whatsoever, with or without Cause. 
 17. Notices. Any
notice required to be given or delivered to Autobytel under the terms of this Agreement shall be in writing and addressed to Autobytel at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the most recent address reflected in Autobytel’s employment records. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party
to be notified. 
 18. Administration of Option. The Board or the Compensation Committee of the Board (individually or
collectively referred to as the “Administrator” in this Agreement and the Plan) shall have full discretion to interpret all provisions of this Option, and all decisions of the Board regarding the Option shall be binding on all parties.

 19. Capitalized Terms. Capitalized terms in this Agreement not otherwise defined herein or in the Plan shall have the
meaning assigned to them in the Appendix attached hereto. 
  

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 20. Entire Agreement; Agreement Controlling. The Plan is incorporated herein by reference.
The Plan and this Agreement, including the Appendix, constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Optionee with
respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. In the event of any inconsistency between this Agreement and the Plan, this
Agreement shall prevail. 
  

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

  

			
	AUTOBYTEL INC.
		
	By:	 	  
		 	Name:
		 	Title:
	
	OPTIONEE
		
		 	  
		 	[Name]
		 	Optionee

  

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 EXHIBIT I 
 NOTICE OF EXERCISE 
 I hereby notify Autobytel Inc. (“Autobytel”) that I elect to
purchase              shares of Autobytel’s Common Stock (the “Purchased Shares”) at the Option exercise price of
$             per share (the “Exercise Price”) pursuant to that certain Option (the “Option”) granted to me pursuant to Autobytel’s inducement Option grant.

 Concurrently with the delivery of this Exercise Notice to the Secretary of Autobytel, I shall hereby pay to Autobytel the Exercise Price
for the Purchased Shares in accordance with the provisions of my agreement with Autobytel evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a condition for exercise. Alternatively, I may
utilize the special broker/dealer sale and remittance procedure specified in my agreement, to the extent established by Autobytel and permitted by the terms of the Option grant agreement and applicable law (including the financial accounting rules
associated with avoiding additional financial expense through the method of exercise), to effect payment of the Exercise Price and any tax withholding for any Purchased Shares in which I am vested at the time of exercise. 
                     ,
200    
 Date 
  

			
		
		 	  
		 	Optionee
		
		 	Address:
		 	                ____________________________________
		
	Print name in exact manner
it is to appear on the
stock certificate:	 	  
	 	  
		
	Address to which certificate
is to be sent, if different
from address above:	 	  
		
		 	  
		
	Social Security Number:	 	  

  

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 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. Agreement shall mean this Inducement Stock Option Agreement.

 B. Board shall mean Autobytel’s Board of Directors. 
 C. Code shall mean the Internal Revenue Code of 1986, as amended. 
 D. Common Stock shall mean Autobytel’s common stock, par value $0.001 per share. 
 E. Exercise Date shall mean the date on which the Option shall have been exercised in accordance with Paragraph 3(b) of the Agreement. 
 F. Exercise Price shall mean $             per Share.

 G. Expiration Date shall mean the date on which the Option term expires as specified in Paragraph 2.

 H. Fair Market Value shall have the meaning ascribed to such term in the Plan. 
 I. Grant Date shall mean the date designated in the preamble to the Agreement granting the Option. 
 J. Optionee shall mean the person to whom the Option is granted as specified in the Agreement. 
 K. Service shall mean Optionee’s service with Autobytel, whether as an employee, director or consultant, which has not been interrupted or terminated.
Optionee’s Service shall not be deemed to have terminated merely because of a change in the capacity in which Optionee renders service to Autobytel. 
 L. Shares shall mean the number of shares of Common Stock subject to the Option. 
 M. Total and
Permanent Disability shall mean the inability of the Employee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or
can be expected to last for a continuous period of not less than twelve months. 
 N. Vesting Schedule shall mean the vesting schedule
specified in Paragraph 3(b) of the Agreement, pursuant to which Optionee will vest in the Shares in one or more installments over his or her period of Service, subject to acceleration in accordance with the provisions of the Agreement. 

 

 8Inducement Stock Option Agreement

 Exhibit 4.11 
 INDUCEMENT STOCK OPTION AGREEMENT 
 THIS AGREEMENT, made as of the 20th day of March, 2006 (the
“Grant Date”), by and between Autobytel Inc. (“Autobytel” or the “Company”) and James E. Riesenbach (“Optionee”). 
 RECITALS 
 WHEREAS, the Board has determined to offer employment to Optionee pursuant
to an employment agreement between the Company and the Optionee, dated as of March 1, 2006 (the “Employment Agreement”). 
 WHEREAS, as an inducement to accept such employment offer, the Board has determined to offer Optionee an option (the “Option”) to purchase 1,000,000 shares of Common Stock (the shares subject to this award being referred to
below as the “Shares”) under the terms and conditions set forth herein. 
 WHEREAS, the exercise price for the Shares
subject to this Option shall be equal to the Fair Market Value (as defined in the Appendix hereto) of the underlying Shares on the Grant Date. 
 WHEREAS, all capitalized terms in this Agreement, to the extent not otherwise defined herein, shall have the meaning assigned to them in the attached Appendix. 
 NOW THEREFORE, it is hereby agreed as follows: 
 1. Grant of Option. Autobytel hereby grants to Optionee, as of the Grant Date, an Option to purchase up to 1,000,000 Shares at the Exercise Price per Share. The Shares shall be purchasable from time to
time in accordance with the Vesting Schedule in Paragraph 3. 
 2. Option Term. The Option shall have a maximum term of ten
(10) years measured from the Grant Date and shall accordingly expire at the close of business on the tenth anniversary of the Grant Date, unless sooner terminated in accordance with Paragraph 4 or 5. 
 3. Exercisability/Vesting. The right to exercise the Option shall vest in the Optionee, and the Option shall become exercisable in
accordance with the Vesting Schedule set forth herein. The Option shall remain exercisable to the extent vested until the Expiration Date or the sooner termination of the Option term under Paragraph 4 or 5. The right to exercise the Option shall
vest in the Optionee as follows: 
 (i) 333,333 of the Options shall vest on the first anniversary of the Commencement Date (as defined in
the Employment Agreement) provided the Optionee is actively employed by the Company on such anniversary date; 
  

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 (ii) 11,111 of the Options shall vest on each monthly anniversary of the Commencement Date over the
period beginning on the thirteenth (13th) monthly anniversary of the Commencement Date and ending on the thirty-fifth (35th) monthly anniversary of the Commencement Date and 11,114 Options shall vest on the day immediately preceding the
thirty-sixth (36th) monthly anniversary of the Commencement Date; provided the Optionee is actively employed by the Company on the respective vesting dates; and 
 (iii) on the date the Company files with the Securities and Exchange Commission under the Securities and Exchange Act of 1934, as amended, its Annual Report on Form 10-K (each a “Form 10-K”) for each of the
fiscal years ending on December 31, 2007 and December 31, 2008, 200,000 of the Options shall vest, but only if (I) the Optionee is actively employed by the Company on the respective vesting dates, and (II) the Company and the Optionee
have satisfied reasonable performance criteria established as described below in this clause (iii). Notwithstanding the foregoing, if any such filing of a Form 10-K by the Company is delayed beyond the expiration of the Term (as defined in the
Employment Agreement), the Options shall be subject to vesting (whether or not the Executive is still employed by the Company) if and when such Form 10-K is filed provided that the performance criteria established by the Board or such committee in
respect of such respective fiscal year are met. The performance criteria shall include, among other factors, revenue and EBITDA targets for the Company and shall be set by the Board or a committee thereof in its sole discretion within 90 days of the
Board adopting the operating plan of the Company for such respective year, subject to consulting with the Executive on the criteria. 
 Vesting in the Shares may be accelerated pursuant to the provisions of Paragraph 4 or 5 below. Unless otherwise specifically provided herein, no Shares shall vest following the Optionee’s cessation of Service. 
 4. Cessation of Service. 
 (a) Termination due to Death or Disability. As of the date of the Optionee’s termination due to death or Disability (as defined below), any unexercised portion of any Option shall be exercisable (to the
extent previously vested) from the date of such termination of the Optionee’s Service until two (2) years following such termination date, but in no event later than ten (10) years following the Grant Date. As to unvested Options at
the date of the Optionee’s termination due to death or Disability, all unvested performance-based Options shall terminate and all time-based Options that have not yet vested shall vest and shall be exercisable from the date of such termination
of the Optionee’s Service until ninety (90) days following such termination date, but in no event later than ten (10) years following the Grant Date. For purposes hereof, “Disability” shall have the same meaning and be
determined in the same manner as set forth in the Employment Agreement. 
 (b) Termination for Cause. As of the date of
the Optionee’s termination of Service for Cause (as defined below), any unvested or unexercised portion of any Option shall terminate immediately and shall be of no further force or effect. For purposes hereof, “Cause” shall have the
same meaning and be determined in the same manner as set forth in the Employment Agreement. 
  

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 (c) Termination Without Cause or for Good Reason. As of the date of the
Optionee’s termination of Service by Autobytel without Cause or by the Optionee for Good Reason (as defined below), any unexercised portion of any Option shall (to the extent previously vested) be exercisable from such termination of the
Optionee’s Service until the date that is two (2) years following the termination date, but in no event later than ten (10) years following the Grant Date. As to unvested Options at the date of the Optionee’s termination of
Service by Autobytel without Cause or by Optionee for Good Reason, all unvested performance-based Options shall terminate and all time-based Options that have not yet vested shall vest and shall be exercisable from the date of such termination of
the Optionee’s Service until ninety (90) days following such termination date, but in no such event later than ten (10) years following the Grant Date. The term “without Cause” shall mean the termination of the
Optionee’s Service for any reason other than those expressly set forth in the definition “for Cause” above, or no reason at all, or for Good Reason. For purposes hereof, “Good Reason” shall have the same meaning and be
determined in the same manner as set forth in the Employment Agreement. 
 (d) Termination Without Good Reason. As
of the date of any voluntary termination of Service with the Company by the Optionee other than due to death or Disability, and other than for Good Reason, any unvested portion of any Option shall terminate immediately and shall be of no further
force or effect. Any previously vested but unexercised portion of any Option shall remain exercisable from the date of such termination of employment until the second anniversary of the termination date, but in no event later than ten
(10) years following the Grant Date. 
 (e) Termination upon Expiration of Employment Agreement. As of the date of
any termination of Optionee’s Service with the Company at the time of, or subsequent to, the expiration of the Employment Agreement by lapse of time and for no other reason, then any previously vested but unexercised portion of any Option shall
remain exercisable from the date of such termination of employment until the second anniversary of such termination date, but in no event later than ten (10) years following the Grant Date. 
 5. Change in Control. 
 In the event of a
Change of Control (as defined below) while the Optionee is employed by the Company, any unvested installment of any Option shall immediately vest and become exercisable from the date of such Change of Control until the second anniversary of the
Change of Control, but in no event later than ten (10) years following the Grant Date provided, however, that notwithstanding the foregoing, any such stock options shall remain exercisable beyond such dates so long as Executive is an
employee of the Company or any successor thereto or affiliate thereof, but in no event later than ten (10) years following the Grant Date. For purposes hereof, “Change of Control” shall have the same meaning and be determined in the
same manner as set forth in the Optionee’s employment agreement with the Company. 
 6. Adjustment in Shares. Should any
change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without Autobytel’s receipt of

  

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consideration, the Company shall make appropriate equitable adjustments to (i) the number and/or class of securities subject to the Option and
(ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder; provided, however, that the aggregate Exercise Price shall remain the same. 
 7. Stockholder Rights. The holder of the Option shall not have any stockholder rights with respect to the Shares until such person shall
have exercised the Option, paid the Exercise Price and become a holder of record of the purchased Shares. 
 8. Manner of Exercising
Option. 
 (a) In order to exercise the Option for all or any part of the Shares for which the Option is at the time
exercisable, Optionee or, in the case of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as the case may be, must take the following actions: 
 (i) The Secretary of Autobytel shall be provided with written notice of the Option exercise (the “Exercise Notice”) in
substantially the form of Exhibit I attached hereto, in which there is specified the number of Shares to be purchased under the exercised Option. 
 (ii) The Exercise Price for the purchased Shares shall be paid in one or more of the following alternative forms: 
  

	 	•	 	cash or check made payable to Autobytel’s order; or 

  

	 	•	 	Shares of Common Stock held by Optionee (or any other person or persons exercising the Option) for the requisite period necessary to avoid a charge to Autobytel’s earnings for
financial reporting purposes and valued at Fair Market Value on the Exercise Date; or 

  

	 	•	 	if established by Autobytel and permitted under applicable law (including the financial accounting rules associated with avoiding additional financial expense through the method of
exercise), through a “same day sale” commitment from Optionee and a broker-dealer selected by Autobytel whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased sufficient to pay for
the total Exercise Price for the Shares being exercised and whereby the broker-dealer irrevocably commits upon receipt of such Shares to forward the total Exercise Price for the Shares being exercised directly to Autobytel plus the applicable
Federal, state and local income taxes required to be withheld by Autobytel by reason of such exercise. 

 (iii)
Appropriate documentation evidencing the right to exercise the Option shall be furnished to Autobytel if the person or persons exercising the Option is other than Optionee. 
 (iv) Appropriate arrangement must be made with Autobytel for the satisfaction of all Federal, state and local income tax withholding
requirements applicable to the Option exercise. 
  

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 (b) Except to the extent the sale and remittance procedure specified above is utilized in
connection with the exercise of the Option, payment of the Exercise Price for the purchased Shares must accompany the Exercise Notice delivered to Autobytel in connection with the Option exercise. 
 (c) As soon as practicable after the Exercise Date, Autobytel shall issue to or on behalf of Optionee (or any other permitted person or
persons exercising the Option) a certificate or certificates representing the purchased Shares. The right to receive Shares under this Agreement may not be assigned, transferred, pledged or otherwise disposed of in any way by the Optionee (other
than by will or the laws of descent and distribution). 
 (d) In no event may the Option be exercised for fractional Shares.

 9. No Impairment of Rights. This Agreement shall not in any way affect the right of Autobytel to adjust, reclassify,
reorganize or otherwise make changes in its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 10. Compliance with Laws and Regulations. 
 (a) The exercise of the Option and the issuance of the Shares upon such exercise shall be subject to compliance by Autobytel and Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
 (b) The inability of Autobytel to obtain approval from any regulatory body having authority deemed by Autobytel to be necessary to the
lawful issuance and sale of any Common Stock pursuant to the Option shall relieve Autobytel of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. However, Autobytel
shall use its best efforts to obtain all such applicable approvals. 
 11. Successors and Assigns. Except to the extent
otherwise provided in Paragraph 4(a) or 5, the provisions of this Agreement shall inure to the benefit of, and be binding upon, Autobytel and its successors and assigns and Optionee, Optionee’s assigns and the legal representatives, heirs and
legatees of Optionee’s estate. 
 12. Governing Law. The interpretation, performance, and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to its conflict-of-laws rules. 
 13. Non-Statutory Stock
Options. The Option granted hereunder is not intended to be an incentive stock option within the meaning of Section 422 of the Code. 
  

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 14. No Right to Continued Service. Nothing in this Agreement shall confer upon Optionee any
right to continue in the Service of Autobytel or shall interfere with or restrict in any way the rights of Autobytel which are hereby expressly reserved, to discharge Optionee at any time for any reason whatsoever, with or without Cause. 

15. Notices. Any notice required to be given or delivered to Autobytel under the terms of this Agreement shall be in writing and
addressed to Autobytel at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the most recent address reflected in Autobytel’s employment records. All
notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 
  

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 16. Administration of Option. The Board shall have full discretion to interpret all
provisions of this Option, and all decisions of the Board regarding the Option shall be binding on all parties. 
 IN WITNESS WHEREOF,
the parties have executed this Agreement as of the day and year first above written. 
  

					
	AUTOBYTEL INC.
		
	By:	 	/s/ Michael Fuchs
		 	Name:	 	Michael Fuchs
		 	Title:	 	Chairman
	
	OPTIONEE
		
		 	/s/ James E. Riesenbach
		 	James E. Riesenbach
		 	Optionee

  

 7 

 EXHIBIT I 
 NOTICE OF EXERCISE 
 I hereby notify Autobytel Inc. (“Autobytel”) that I elect to
purchase              shares of Autobytel’s Common Stock (the “Purchased Shares”) at the Option exercise price of
$             per share (the “Exercise Price”) pursuant to that certain Option (the “Option”) granted to me pursuant to Autobytel’s inducement Option grant.

 Concurrently with the delivery of this Exercise Notice to the Secretary of Autobytel, I shall hereby pay to Autobytel the Exercise Price
for the Purchased Shares in accordance with the provisions of my agreement with Autobytel evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a condition for exercise. Alternatively, I may
utilize the special broker/dealer sale and remittance procedure specified in my agreement to effect payment of the Exercise Price for any Purchased Shares in which I am vested at the time of exercise to the extent established by Autobytel and
permitted by the terms of the Option grant agreement and applicable law (including the financial accounting rules associated with avoiding additional financial expense through the method of exercise). 
                 , 200    
 Date 
  

					
		
	 	 	  
			
		 	Optionee	  	
			
		 	Address:	  	  
		
	 Print name in exact manner
 it is to appear on the
 stock certificate:
	 	  
	 	  
		
	 Address to which certificate
 is to be sent, if different
 from address above:
	 	  
		
		 	  
		
	 Social Security Number:
	 	  

  

 8 

 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. Agreement shall mean this Inducement Stock Option Agreement.

 B. Board shall mean Autobytel’s Board of Directors. 
 C. Code shall mean the Internal Revenue Code of 1986, as amended. 
 D. Common Stock shall mean
Autobytel’s common stock, par value $0.001 per share. 
 E. Exercise Date shall mean the date on which the Option shall have been
exercised in accordance with Paragraph 8 of the Agreement. 
 F. Exercise Price shall mean $4.68 per Share. 
 G. Expiration Date shall mean the date on which the Option term expires as specified in Paragraph 2. 
 H. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 
 (i) If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of
Common Stock on the date in question, as the price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (ii) If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Board to be the primary market for
the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists. 
 (iii) If the Common Stock is not at the time traded on any Stock Exchange
and is not reported on the Nasdaq National Market or any successor system, then the Fair Market Value shall be the average between the highest bid and lowest asked prices for the Common Stock on the relevant date by an established quotation service
for over-the-counter securities. 
 (iv) If the Common Stock is not at the time traded on any Stock Exchange, is not reported on the Nasdaq
National Market or a successor system, and is not otherwise publicly traded, 

  

 9 

 
then the Fair Market Value shall be established by the Board acting in good faith and taking into consideration all factors which it deems appropriate,
including, without limitation, recent sale or offer prices for the Common Stock in private arms-length transactions. 
 I. Grant Date shall
mean the date designated in the preamble to the Agreement granting the Option. 
 J. Optionee shall mean the person to whom the Option is
granted as specified in the Agreement. 
 K. Service shall mean Optionee’s service with Autobytel, whether as an employee, director or
consultant, which has not been interrupted or terminated. Optionee’s Service shall not be deemed to have terminated merely because of a change in the capacity in which Optionee renders service to Autobytel. 
 L. Shares shall mean the number of shares of Common Stock subject to the Option. 
 M. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange. 
 N. Vesting
Schedule shall mean the vesting schedule specified in Paragraph 3 of the Agreement, pursuant to which Optionee will vest in the Shares in one or more installments over his or her period of Service, subject to acceleration in accordance with
the provisions of the Agreement. 
  

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