Document:

Employment Agreement, dated April 27, 2005 (Post)

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (this “Agreement”) is made and entered into, at Irvine, California, as of the 27th day of April, 2005, by and
between Autobytel Inc., a Delaware corporation (the “Company”), and Richard Post (the “Executive”). 
  
 RECITALS 
  
 WHEREAS, the Company desires to employ the Executive as the Company’s Chief Executive Officer and President, effective as of the date hereof, and the
Executive desires to be employed by the Company in such capacity, on the terms and subject to the conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual agreements contained herein, and with reference to the above recitals, the parties hereby agree as follows:

  
 ARTICLE 1 
 TERM OF EMPLOYMENT 
  
 The Company hereby employs the Executive as an employee of the Company, and the Executive hereby accepts such employment by the Company, for a period
commencing on the date hereof and expiring on the first to occur of (a) the termination of the Executive’s employment pursuant to Article 6, and (b) April 27, 2006. Notwithstanding the foregoing, the Company may extend the term of the
Executive’s employment under this Agreement by providing written notice to the Executive of its decision to extend the term at least sixty (60) days prior to April 27, 2006. In the event the Company extends the term beyond April 27, 2006, then
the term of the Executive’s employment shall renew on a month to month basis until April 27, 2007, unless the Company or the Executive provides thirty (30) or sixty (60) days’ prior written notice, respectively, to the other party of its
intent not to renew the term of the Executive’s employment, in which event, the term of the Executive’s employment under this Agreement will expire on the date provided in such notice. The period of time during which the Executive is
employed by the Company pursuant to this Agreement, commencing on the date of this Agreement and ending on the date the term of this Agreement expires, is hereinafter referred to as the “Term.” 
  
 ARTICLE 2 
 DUTIES AND OBLIGATIONS 
  
 2.1 DUTIES. During the Term, the Executive shall: (i) be employed as the Chief Executive Officer and President of the Company, (ii) devote his full business time, attention and energies to the business of the Company;
(iii) shall use his best efforts to promote the interests of the Company; (iv) shall perform such functions and services as shall be directed by the Board of Directors of the Company (the “Board”); (v) shall act in accordance with
the policies and directives of the Company; and (vi) shall report directly to the Board. 
  
 2.2 RESTRICTIONS. Except as provided in Section 8.2(i), the Executive covenants and agrees that, while actually employed by the Company, he shall not engage in any other business duties or pursuits whatsoever,
or directly or indirectly render any services of a business or commercial nature to any other individual, corporation, limited liability company, partnership or other entity (each a “Person”), including, but not limited to,
providing services to any business that is in competition with or similar in nature to the Company, whether for compensation or otherwise, without the prior written consent of the Board. However, the expenditure of reasonable amounts of time for
educational, charitable, or professional activities shall not be deemed a breach of this Agreement, if those activities do not materially interfere with the services required under this Agreement, and such activities shall not require the prior
written consent of the Board. Notwithstanding anything herein contained to the contrary, this Agreement shall not be construed to prohibit the Executive from making passive personal investments or conducting personal business, financial or legal
affairs or other personal matters if those activities do not materially interfere with the services required hereunder. In addition to the foregoing, notwithstanding anything contained herein to the contrary, this Agreement shall not be construed

 
to prohibit the Executive from serving as a director or board member of any other corporation, company, or other business entity, subject to the prior
approval of the Board, except that (a) the Company acknowledges that the Executive currently serves as a member of the Board of a publicly traded company, and agrees that the Executive shall be permitted to continue to serve in such capacity, and
(b) the Executive shall be permitted to serve as a director or board member of one additional corporation, company, or other business entity without the prior approval of the Board, so long as such corporation, company, or other business entity does
not compete with the Company. 
  
 ARTICLE 3 
 COMPENSATION 
  
 3.1 BASE SALARY. As compensation for the services to be rendered by the Executive pursuant to this Agreement, the Company hereby agrees to pay the
Executive an annual salary (“Base Salary”) equal to Three Hundred Twenty Five Thousand Dollars ($325,000.00) during the Term. The Base Salary shall be paid in substantially equal bimonthly installments, in accordance with the normal
payroll practices of the Company. 
  
 3.2 BONUSES. The Board may,
in its sole discretion, provide the Executive with the opportunity to earn an annual bonus (“Bonus”) for each fiscal year of the Company occurring in whole or in part during the Term of sixty five percent (65%) (the
“Target”) of the Executive’s Base Salary for such fiscal year, which amount shall be prorated for any partial fiscal years during the Term. The Bonus, if any, payable to the Executive shall be based on such criteria as may be
established by the Board, in its sole discretion, from time to time, and, except for the Target, will be equivalent to any other bonus opportunities provided generally to executive officers of the Company. The Executive shall participate in all
short term and long term bonus or incentive plans or arrangements in which the executives officers of the Company are eligible to participate from time to time. Any Bonus shall be paid as promptly as practicable following the end of the preceding
fiscal year. The provisions of this Section 3.2 shall be subject to the provisions of Section 3.4. 
  
 3.3 WITHHOLDING. The Company shall have the right to deduct or withhold from the compensation due to the Executive hereunder any and all sums required for
federal income and employee social security taxes and all state or local income taxes now applicable or that may be enacted and become applicable. 
  
 3.4 RIGHT TO SEEK APPROVAL. The Company may provide for shareholder approval of any performance based compensation provided herein and may provide for the
compensation committee to establish any applicable performance goals and determine whether such performance goals have been met. 
  
 3.5 CHANGE OF CONTROL. Notwithstanding Article 1 above, in the event of a Change of Control (as defined in Section 3.6) of the Company (a)
during the Term while the Executive remains employed by the Company, or (b) at any time during the six (6) month period following the termination of the Executive’s employment with the Company, the Company shall pay to the Executive,
concurrently with the consummation of such Change of Control, a lump sum amount equal to two (2) times the sum of the Executive’s annual Base Salary plus the Bonus (at the Target level). 
  
 3.6 DEFINITION OF CHANGE OF CONTROL. For purposes of this Agreement
“Change of Control” means the occurrence of any of the following: (i) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation but not including any underwritten public offering
registered under the Securities Act of 1933 (“Public Offering”) or any offering of securities under Rule 144A promulgated under the Securities Act of 1933 (“Rule 144A Offering”)) in one or a series of related

 transactions of all or substantially all of the assets of the Company taken as a whole to Person or group of Persons
acting together (each a “Group”) (other than any of the Company’s wholly-owned subsidiaries or any Company employee pension or benefits plan), (ii) except in respect of a voluntary or involuntary filing under applicable
bankruptcy or insolvency laws, the adoption of a plan relating to the liquidation or dissolution of the Company, (iii) the consummation of any transactions (including any stock or other purchase, sale, acquisition, disposition, merger, consolidation
or reorganization, but not including any Public Offering or Rule 144A Offering) the result of which is that any Person or Group (other than any of the Company’s wholly-owned Subsidiaries, any underwriter temporarily holding securities pursuant
to a Public Offering or any Company employee pension or benefits plan), becomes the beneficial owners of more than 40 percent (40%) of the aggregate voting power of all classes of stock of the Company having the right to elect directors under
ordinary circumstances; or (iv) the first day on which a majority of the members of the Board are not individuals who were nominated for election or elected to the Board with the approval of two-thirds of the members of the Board just prior to the
time of such nomination or election. 
  
 3.7 GRANT OF STOCK
OPTIONS. Immediately following the close of trading on the first trading day on which sales of the Company’s common stock may be effected under the Company’s registration statements on Form S-8 governing the Company’s stock option
plans (the “S-8 Effective Date”), and subject to compliance with federal and state securities laws and any policies of the Company, the Company shall grant to the Executive under one or more of its stock option plans, stock options
to purchase Two Hundred Thousand (200,000) shares of the Company’s common stock at an exercise price equal to the closing price of the Company’s common stock on the S-8 Effective Date (the “Stock Options”). The Stock
Options shall be subject to the terms and conditions of the plan or plans under which they are issued, and during the Term (including any renewal thereof) shall vest, assuming the Executive at all times remains an employee of the Company, in equal
installments from the date of grant until the one (1) year anniversary of this Agreement; provided, that in the event of a Change of Control during the Term while the Executive is employed by the Company, all such Stock Options shall vest in full
effective immediately prior to the Change of Control and shall be exercisable for two (2) years from the effective date of such Change of Control. The Stock Options shall also be subject to Section 6.3 of this Agreement. 
  
 ARTICLE 4 
 EMPLOYEE BENEFITS 
  
 BENEFITS. The Company agrees that the Executive shall be entitled to all ordinary and customary perquisites afforded generally to executive employees of the Company (except to the extent employee contribution may be required under the
Company’s benefit plans as they may now or hereafter exist), which shall in no event be less than the benefits generally afforded to the other executive employees of the Company as of the date hereof or from time to time, but in any event shall
include any qualified or non-qualified pension, profit sharing and savings plans, any death benefit and disability benefit plans, life insurance coverages, any medical, dental, health and welfare plans or insurance coverages and any stock purchase
programs that are approved in writing by the Board, in its sole discretion. 
  
 ARTICLE 5 
 BUSINESS EXPENSES 
  
 5.1 EXPENSES. The Company shall pay or reimburse the Executive for all reasonable and authorized business expenses incurred
by the Executive during the Term; such payment or reimbursement shall not be unreasonably withheld so long as said business expenses have been incurred for and promote the business of the Company and are normally and customarily incurred by
employees in comparable positions at other comparable businesses in the same or similar market. Notwithstanding the above, the Company shall not pay or reimburse the Executive for the costs of any membership fees or dues for private clubs, civic
organizations, and similar organizations or entities, unless such organizations and the fees and costs associated therewith have first been approved in writing by the Board, in its sole discretion. 

 5.2 TRAVEL COSTS. Subject to the provisions of this Section 5.2, the Company shall reimburse the
Executive for expenses incurred with business-related travel (which expenses shall appropriately be grossed up for any income or employment taxes levied thereon). For business-related flights over four hours, Executive shall be reimbursed for
Business Class travel expenses. 
  
 5.3 RECORDS. As a condition to
reimbursement under this Article 5, the Executive shall furnish to the Company adequate records and other documentary evidence required by federal and state statutes and regulations for the substantiation of each expenditure. The Executive
acknowledges and agrees that failure to furnish the required documentation may result in the Company denying all or part of the expense for which reimbursement is sought. 
  
 ARTICLE 6 
 TERMINATION OF EMPLOYMENT 
  
 6.1 TERMINATION BY THE
COMPANY. The Company may, during the Term, upon thirty (30) days prior written notice, terminate the Executive’s employment under this Agreement and discharge the Executive for any reason or no reason by delivering written notice thereof to the
Executive, and in such event, except as set forth in the proviso to this Section 6.1, neither party shall have any rights or obligations under Article 2, Sections 3.1 and 3.2, or Articles 4 and 5; provided,
however, that the Company shall pay to the Executive, no later than thirty (30) days after such termination, any amount due and owing as of the termination date pursuant to Sections 3.1 and 3.2 (including a Bonus (at the Target level)
for the year in which the termination occurs prorated to the date of termination based on the performance of the Company in such year as of the date on which the termination occurs versus the performance targets for the Company established by the
Board for the entire year, and using such factors as the Board shall determine in its sole discretion (e.g., revenue, EBITDA, net income, etc.)) and Article 5 (subject, in each case, to Section 3.3), and the remaining provisions
of this Agreement shall remain in full force and effect in accordance with their terms. The provisions of this Section 6.1 shall not apply to the termination of the Executive’s employment as a result of the expiration of the Term in
accordance with Article 1. 
  
 6.2 TERMINATION BY THE
EXECUTIVE. The Executive may, during the Term, upon sixty (60) days’ prior written notice, terminate his employment under this Agreement and resign as an employee of the Company for any reason or no reason by delivering written notice thereof
to the Company, and in such event, except as set forth in the proviso to this Section 6.2, neither party shall have any rights or obligations under Article 2, Sections 3.1 and 3.2, or Articles 4 and 5;
provided, however, that (a) the Company shall pay the Executive any amount due and owing as of the termination date pursuant to Section 3.1 and Section 3.2 (including a Bonus for the year in which the termination occurs, prorated to
the date of termination based on the performance of the Company in such year as of the date on which the termination occurs versus the performance targets for the Company established by the Board for the entire year, and using such factors as the
Board shall determine in its sole discretion (e.g., revenue, EBITDA, net income, etc.)) and Articles 4 and 5 (subject, in each case, to Section 3.3), and (b) the remaining provisions of this Agreement shall remain in full
force and effect in accordance with their terms. 
  
 6.3 OPTIONS.
All stock options held by the Executive as of the date hereof shall be governed by the stock option agreements governing such options. Notwithstanding anything to the contrary contained in any stock option agreement, with respect to any stock
options (including, but not limited to, the Stock Options to be granted pursuant to Section 3.7) granted to the Executive after the date hereof, upon any termination of the Executive’s employment, all unvested stock options held by the
Executive as of such termination date (“Unvested Options”) shall immediately cease to vest, but shall remain outstanding solely for the purposes of the following: 
  
 6.3.1 If (a) the Executive was not in breach of this Agreement at the time his employment with the Company was terminated,
(b) there is a Change of Control of the Company at any time during the 

 six (6) month period following the termination of the Executive’s employment with the Company, and (c) the Executive
was in compliance with the provisions of Section 8.2 at all times prior to the Change of Control, then all Unvested Options shall vest in full effective immediately prior to such Change of Control and shall be exercisable for two (2) years
following such Change of Control, but in no event longer than ten (10) years from the date of grant; and 
  
 6.3.2 If (a) the Unvested Options are not accelerated pursuant to Section 6.3.1, (b) the Executive was not in breach of this Agreement at the time
his employment with the Company was terminated, and (c) the Executive agrees in writing at the time of termination to comply with the provisions of Section 8.2 for the one (1) year period following the date on which his employment terminated,
any Unvested Options that would have vested during such one (1) year period had the Executive remained employed by the Company shall be deemed to have vested effective as of the expiration of such one (1) year period and shall be exercisable for a
period of (i) one (1) year following the date on which they are deemed to have vested, if the Executive’s employment terminated pursuant to Section 6.1 or (ii) ninety (90) days following the date on which they are deemed to have vested,
if the Executive’s employment terminated pursuant to Section 6.2 (but in no event longer than ten (10) years from the date of grant), and all Unvested Options that would not have vested during such period shall be forfeited and
cancelled; provided, that if the Executive does not comply with the provisions of Section 8.2 at any time during the one (1) year period following the termination of his employment, all Unvested Options shall immediately be forfeited and
cancelled. 
  
 6.4 In all other cases, the Unvested Options shall
terminate and be forfeited and cancelled. The parties agree to amend the terms and conditions of any and all of the Executive’s stock options or stock option agreements to the extent reasonably necessary to effectuate the provisions of this
Section 6.3 and Section 3.7. 
  
 ARTICLE 7

 PARACHUTE TAX INDEMNITY 
  
 7.1 GROSS-UP PAYMENT. 
  
 (a) If it shall be determined that any amount paid, distributed or treated as paid or distributed by the Company to or for the benefit of the Executive
(whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, any stock option agreement between the Executive and the Company or otherwise, but determined without regard to any additional payments required under
this Article 7) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, being hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all federal, state and local taxes (including any interest or penalties imposed with respect to such taxes), including without
limitation, any income taxes (including any interest or penalties imposed with respect thereto) and Excise Tax imposed on the Gross-up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
Payments. 
  
 (b) The determinations of whether and when a
Gross-Up Payment is required under this Article 7 shall be made by the Company based on its good faith interpretation of applicable law. The amount of such Gross-Up Payment and the valuation assumptions to be utilized in arriving at such
determination shall be made by the Company which shall provide detailed supporting calculations to the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment 

 subject to the Excise Tax, or such earlier time as is requested by the Company. Any Gross-Up Payment, as determined
pursuant to this Article 7, shall be paid by the Company to the Executive within twenty-five (25) days of the receipt of notice from the Executive that there has been a Payment subject to the Excise Tax. Any determinations by the Company
shall be binding upon the Executive, provided, however, if it is later determined that there has been an underpayment of Excise Tax and that the Executive is required to make an additional Excise Tax payment(s) on any Payment or
Gross-Up Payment, the Company shall provide a similar full gross-up on such additional liability. 
  
 (c) For purposes of any determinations made by the Company acting under Section 7.1(b): 
  
 (i) All Payments and Gross-Up Payments with respect to the Executive shall
be deemed to be “parachute payments” under Section 280G(b) (2) of the Code and to be “excess parachute payments” under Section 280G(b) (1) of the Code that are fully subject to the Excise Tax under Section 4999 of the Code,
except to the extent (if any) that the Company determines in good faith that a Payment in whole or in part does not constitute a “parachute payment” or otherwise is not subject to Excise Tax; 
  
 (ii) The value of any non-cash benefits or deferred or delayed payments or
benefits shall be determined in a manner consistent with the principles of Section 280G of the Code; and 
  
 (iii) The Executive shall be deemed to pay federal, state and local income taxes at the actual maximum marginal rate applicable to individuals in the
calendar year in which the Gross-Up Payment is made, net of any applicable reduction in federal income taxes for any state and local taxes paid on the amounts in question. 
  
 7.2 CLAIMS AND PROCEEDINGS. The Executive shall notify the Company in writing of any Excise Tax claim by the Internal
Revenue Service (or any other state or local taxing authority) that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than twenty (20) business days
after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such Excise Tax claim, the Executive shall: (i) give the Company any information reasonably requested by the Company relating to such claim; (ii) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company after consultation in good faith with the
Executive and subject to approval by the Executive (which approval shall not be unreasonably withheld) under the circumstances set forth in Section 7.1; (iii) cooperate with the Company in good faith in order to effectively contest such
claim; and (iv) permit the Company to participate in any proceeding relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs
and expense. Without limitation of the foregoing provisions of this Article 7, the Company shall control the Excise Tax portion of any proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such Excise Tax claim and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that the Executive may elect at its sole option to pay the tax 

 claimed and require the Company to contest through a suit for a refund. If the Executive elects to pay such Excise Tax
claim and contest through a suit for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest and penalties) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and provided, however, that any Company-directed extension of the statute of limitations relating
to payment of taxes for the Executive’s taxable year with respect to which such contested Excise Tax amount is claimed to be due shall be effective only if it can be and is limited to the contested Excise Tax liability. 
  
 7.3 REFUNDS. If, after the Executive’s receipt of an amount advanced by
the Company pursuant to this Article 7 for payment of Excise Taxes, the Executive files an Excise Tax refund claim and receives any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the
requirements of this Article 7) except as provided below, promptly pay to the Company the amount of any such refund of Excise Tax (together with any interest paid or credited thereon, but after any and all taxes applicable thereto), plus the
amount (after any and all taxes applicable-thereto) of the refund (if any is applied for and received) of any income tax paid by the Executive with respect to and as a result of his prior receipt of any previously paid Gross-Up Payment indemnifying
the Executive with respect to any such Excise Tax later so refunded. In the event the Executive files for a refund of the Excise Tax and such request would, if successful, require the Executive to refund any amount to the Company pursuant to this
provision, then the Executive shall be required to seek a refund of the Income Tax portion of any corresponding Gross-Up Payment so long as such refund request would not have a material adverse effect on the Executive (which determination shall be
made by independent tax counsel selected by the Executive after good faith consultation with the Company and subject to approval of the Company, which approval shall not be unreasonably withheld). If, after the Executive’s receipt of an amount
advanced by the Company pursuant to this Article 7, a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
the Gross-Up Payment required to be paid. 
  
 ARTICLE 8 

RESTRICTIVE COVENANTS 
  
 8.1 COVENANT NOT TO DISCLOSE CONFIDENTIAL INFORMATION. During the Term and following termination of Executive’s employment under this Agreement, the
Executive agrees that, without the Company’s prior written consent, he will not use or disclose to any person, firm, association, partnership, entity or corporation, any confidential information concerning: (i) the business, operations or
internal structure of the Company or any division or part thereof; (ii) the customers of the Company or any division or part thereof; (iii) the financial condition of the Company or any division or part thereof; and (iv) other confidential
information pertaining to the Company or any division or part thereof, including without limitation, trade secrets, technical data, marketing analyses and studies, operating procedures, customer and/or inventory lists, or the existence or nature of
any of the Company’s agreements or agreements of any division thereof (other than this Agreement and any other option or compensation related agreements involving, the Executive); provided, however, that the Executive shall be entitled to
disclose such information: (i) to the extent the same shall have otherwise become publicly available (unless made publicly available by the Executive); (ii) during, the course of or in connection with any actual or potential litigation, arbitration,
or other proceeding based upon or in connection with the subject matter of this Agreement; (iii) as may be necessary or appropriate to conduct his duties hereunder, provided the Executive is acting, in good faith and in the best interest of the
Company; (iv) as may be required by law or judicial process or (v) if the information is generally known to personnel in the Executive’s trade or business. 

 8.2 COVENANT NOT TO COMPETE. The Executive acknowledges that he has established and will continue to
establish favorable relations with the customers, clients and accounts of the Company and will have access to trade secrets of the Company. Therefore, in consideration of such relations and the entering into of this Agreement by the Company, (and,
in respect of the Executive’s agreement to be bound by this Section 8.2 for the one (1) year period as provided in Section 6.3.2, the Executive’s rights to receive the amounts, if any, pursuant to Section 6.1 (if
applicable) and to have the Unvested Options continue to vest pursuant to Section 6.3), and to further protect trade secrets, directly or indirectly, of the Company, the Executive agrees that at all times during his employment with the
Company through the one (1) year anniversary of the date of termination of the Executive’s employment, the Executive will not, directly or indirectly, without the express written consent of the Board: 
  
 (i) own or have any interest in or act as an officer, director, partner,
principal, employee, agent, representative, consultant or independent contractor of, or in any way assist in, any business which is engaged, directly or indirectly, in any business competitive with the Company in those automotive markets and/or
automotive products lines in which the Company competes within the United States at any time during the Term, or become associated with or render services to any person, firm, corporation or other entity so engaged (“Competitive
Businesses”); provided, however, that the Executive may own without the express written consent of the Company not more than two percent (2%) of the issued and outstanding securities of any company or enterprise whose securities are listed
on a national securities exchange or actively traded in the over the counter market; 
  
 (ii) solicit clients, customers or accounts of the Company for, on behalf of or otherwise related to any such Competitive Businesses or any products related thereto; or 
  
 (iii) solicit any person who is or shall be in the employ or service of the
Company to leave such employ or service for employment with the Executive or an affiliate of the Executive. 
  
 Notwithstanding the foregoing, if any court determines that the covenant not to compete, or any part thereof, is unenforceable because of the duration of such provision or the geographic area or scope covered thereby,
such court shall have the power to reduce the duration, area or scope of such provision to the extent necessary to make the provision enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. The Company
shall pay and be solely responsible for any attorney’s fees, expenses, costs and court or arbitration costs incurred by the Executive in any matter or dispute between the Executive and the Company which pertains to this Article 8 if the
Executive prevails in the contest in whole or in part. 
  
 8.3
SPECIFIC PERFORMANCE. Recognizing that irreparable damage will result to the Company in the event of the breach or threatened breach of any of the foregoing covenants and assurances by the Executive contained in Sections 8.1 and 8.2,
and that the Company’s remedies at law for any such breach or threatened breach may be inadequate, the Company and its successors and assigns, in addition to such other remedies which may be available to them, shall, upon making a sufficient
showing under applicable law, be entitled to an injunction to be issued by any court of competent jurisdiction ordering compliance with this Agreement or enjoining and restraining the Executive, and each and every person, firm or company acting in
concert or participation with him, from the continuation of such breach. The obligations of the Executive and rights of the Company pursuant to this Article 8 shall survive the termination of the Executive’s employment under this
Agreement. The covenants and obligations of the Executive set forth in this Article 8 are in addition to and not in lieu of or exclusive of any other obligations and duties the Executive owes to the Company, whether expressed or implied in
fact or law. 

 ARTICLE 9 
 GENERAL PROVISIONS 
  
 9.1 FINAL
AGREEMENT. Except with respect to the terms of (a) any existing confidentiality, non-disclosure, and non-competition agreements between the Company and the Executive (solely for the purposes of permitting either party to seek remedies for a breach
thereof in respect of acts or omissions occurring prior to the date hereof), and (b) any existing indemnification agreements, inventions agreements, and stock option agreements (as the same may be amended as contemplated by Section 3.7 and
Section 6.3) between the Executive and the Company, this Agreement is intended to be the final, complete and exclusive agreement between the parties relating to the employment of the Executive by the Company and all prior or contemporaneous
understandings, representations and statements, oral or written, are merged herein. Except as set forth in clauses (a) and (b), this Agreement supersedes all of the Executive’s compensation agreements with the Company, and the
Executive expressly acknowledges that he is not and will not be entitled to any severance payments under any Company agreement or change of control plan, other than as set forth in this Agreement. No modification, waiver, amendment, discharge or
change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement thereof is or may be sought. 
  
 9.2 NO WAIVER. No waiver, by conduct or otherwise, by any party of any term, provision, or condition of this Agreement, shall be deemed or construed as a
further or continuing waiver of any such term, provision, or condition nor as a waiver of a similar or dissimilar condition or provision at the same time or at any prior or subsequent time. 
  
 9.3 RIGHTS CUMULATIVE. The rights under this Agreement, or by law or equity,
shall be cumulative and may be exercised at any time and from time to time. No failure by any party to exercise, and no delay in exercising, any rights shall be construed or deemed to be a waiver thereof, nor shall any single or partial exercise by
any party preclude any other or future exercise thereof or the exercise of any other right. 
  
 9.4 NOTICE. Except as otherwise provided in this Agreement, any notice, approval, consent, waiver or other communication required or permitted to be given or to be served upon any person in connection with this
Agreement shall be in writing. Such notice shall be personally served, sent by telegram, tested telex, fax or cable, or sent prepaid by either registered or certified mail with return receipt requested or Federal Express and shall be deemed given
(i) if personally served or by Federal Express, when delivered to the person to whom such notice is addressed, (ii) if given by telegram, telex, fax or cable, when sent, or (iii) if given by mail, two (2) business days following deposit in the
United States mail. Any notice given by telegram, telex, fax or cable shall be confirmed in writing), by overnight mail or Federal Express within forty-eight (48) hours after being sent. Such notices shall be addressed to the party to whom such
notice is to be given at the party’s address set forth below or as such party shall otherwise direct. 
  

	
	 If to the Company:

	
	 Autobytel Inc.

	 18872 MacArthur Boulevard

	 Irvine, California 92612-1400

	 Facsimile: (949) 862-1323

	 Attn: General Counsel

	
	 If to the Executive:

	
	 Richard Post

	 9498 La Costa Lane

	 Lone Tree, Colorado 80124

 9.5 SUCCESSORS. The terms and conditions of this Agreement shall inure to the benefit of and be binding
upon the successors and assigns of the parties hereto. 
  
 9.6
GOVERNING LAW. This Agreement 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. 
  
 9.7 COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which shall constitute one instrument. 
  
 9.8
SEVERABILITY. The provisions of this Agreement are agreed to be severable, and if any provision, or application thereof, is held invalid or unenforceable, then such holding shall not affect any other provision or application. 
  
 9.9 CONSTRUCTION. As used herein, and as the circumstances require, the
plural term shall include the singular, the singular shall include the plural, the neuter term shall include the masculine and feminine genders, and the feminine term shall include the neuter and the masculine genders. 
  
 9.10 ARBITRATION. Except as otherwise provided in Section 8.3 hereof,
any controversy or claim arising out of, or related to, this Agreement, or the breach thereof, shall be settled by binding arbitration in the City of Irvine, California, in accordance with the employment arbitration rules then in effect of the
American Arbitration Association, and the arbitrator’s decision shall be binding and final, and judgment upon the award rendered may be entered in any court having jurisdiction thereof. Each party hereto shall pay its or their own expenses
incident to the negotiation, preparation and resolution of any controversy or claim arising out of, or related to, this Agreement, or the breach thereof; provided, however, the Company shall pay and be solely responsible for any attorneys’ fees
and expenses and court or arbitration costs incurred by the Executive as a result of a claim brought by either the Executive or the Company alleging that the other party breached or otherwise failed to perform this Agreement or any provision hereof
to be performed by the other party if the Executive prevails in the contest in whole or in part. 
  
 [SIGNATURE PAGE FOLLOWS] 

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

  

			
	AUTOBYTEL INC.
		
	By:	 	 /s/ Michael Fuchs

	 	 	Michael Fuchs
	 	 	Chairman
	
	RICHARD POST
		
	By:	 	 /s/ Richard Post

	 	 	Richard PostEmployment Agreement, dated April 27, 2005 (Schwartz)

 Exhibit 10.2 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (this “Agreement”) is made and entered into, at Irvine, California, as of the 27th day of April, 2005, by and
between Autobytel 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 Jeffrey A. Schwartz
(hereinafter referred to as the “Employee”), who resides at 24950 Norman’s Way, Calabasas, California 91302. 
  
 RECITALS 
  
 WHEREAS, the Company and the Employee are parties to a certain Employment Agreement, dated as of December 4, 2003 (the “Prior
Agreement”), pursuant to which the Company employs the Employee as the Company’s President and Chief Executive Officer. 
  
 WHEREAS, the Employee resigned as the Company’s President and Chief Executive Officer effective as of the date hereof (the
“Resignation”). 
  
 WHEREAS, as a result of the
Resignation, the Company and the Employee desire to amend and restate the Prior Agreement, as set forth herein, in order to set forth the terms and conditions under which the Employee will continue his employment with the Company, and the Company
will continue to employ the Employee, from and after the date hereof. 
  
 NOW, THEREFORE, in consideration of the mutual agreements contained herein, and with reference to the above recitals, the parties hereby agree as follows: 
  
 ARTICLE 1 
 AMENDMENT AND RESTATEMENT OF PRIOR AGREEMENT; TERM OF EMPLOYMENT 
  
 1.1 AMENDMENT AND RESTATEMENT. The Company and the Employee hereby agree to amend and restate the Prior Agreement, as set forth herein, and agree that the Prior Agreement no longer has any force or effect and is
superceded in its entirety by this Agreement; provided, that (a) the Company shall continue to be entitled to the benefits of Article 9 of the Prior Agreement and to enforce the provisions thereof pursuant to this Agreement, and (b) the Prior
Agreement shall survive solely for the purposes of (i) governing, and only to the extent necessary to govern, vested stock options held by the Employee as of the date hereof and (ii) the indemnification provisions set forth in Section 8.2 thereof
and for no other purpose. 
  
 1.2 TERM OF EMPLOYMENT. The
Company hereby employs the Employee as an employee of the Company, and the Employee hereby accepts such employment by the Company, for a period (the “Term”) commencing on the date hereof and expiring on the first to occur of (a) the
termination of the Employee’s employment pursuant to Article 6, and (b) April 27, 2006 (the “Termination Date”). Provided that the Employee’s employment has not previously been terminated pursuant to Article
6, the Employee’s employment pursuant to this Agreement shall renew for an additional one (1) year term only if the Company notifies the Employee in writing (the “Renewal Notice”), no later than ninety (90) days prior to
the Termination Date, of the Company’s desire to renew the Employee’s employment under this Agreement, and the Employee accepts such offer in writing no later than seventy-five (75) days prior to the Termination Date. In the event that the
Company does not deliver the Renewal Notice or renew the Employee’s employment pursuant to this Agreement, then effective as of the Termination Date and except as set forth in the proviso to this Section 1.2, neither party shall have any
rights or obligations under Article 2, Sections 3.1 and 3.2, Articles 4 and 5, or Sections 6.1 and 6.2; provided, however, that (i) the Company shall be 

 required to continue to pay the Base Salary to the Employee in accordance with Section 3.1 and Section 3.3
and all benefits in accordance with Section 4 (subject, in each case, to Section 3.3), until the three (3) month anniversary of the Termination Date, (ii) the Company shall be required to pay any amounts due and owing to the
Employee as of the Termination Date pursuant to Section 3.2 and Article 5 (subject, in each case, to Section 3.3), and (iii) the remaining provisions of this Agreement shall remain in full force and effect in accordance with
their terms. 
  
 ARTICLE 2 
 DUTIES AND OBLIGATIONS 
  
 2.1 DUTIES. During the Term, the Employee shall: (i) be employed as the Vice Chairman of the Company, (ii) devote his full business time, attention and
energies to the business of the Company; (iii) shall use his best efforts to promote the interests of the Company; (iv) shall perform such functions and services as shall be directed by the Chief Executive Officer; (v) shall act in accordance with
the policies and directives of the Company; and (vi) shall report directly to the Chief Executive Officer. 
  
 2.2 RESTRICTIONS. Except as provided in Section 8.2(i), the Employee covenants and agrees that, while actually employed by the Company, he shall
not engage in any other business duties or pursuits whatsoever, or directly or indirectly render any services of a business or commercial nature to any other individual, corporation, limited liability company, partnership or other entity (each a
“Person”), including, but not limited to, providing services to any business that is in competition with or similar in nature to the Company, whether for compensation or otherwise, without the prior written consent of the Board of
Directors of the Company (the “Board”). However, the expenditure of reasonable amounts of time for educational, charitable, or professional activities shall not be deemed a breach of this Agreement, if those activities do not
materially interfere with the services required under this Agreement, and such activities shall not require the prior written consent of the Board. Notwithstanding anything herein contained to the contrary, this Agreement shall not be construed to
prohibit the Employee from making passive personal investments or conducting personal business, financial or legal affairs or other personal matters if those activities do not materially interfere with the services required hereunder. In addition to
the foregoing, notwithstanding anything contained herein to the contrary, this Agreement shall not be construed to prohibit the Employee from serving as a director or board member of any other corporation, company, or other business entity, subject
to the approval of the Board. 
  
 2.3 LOCATION. The principal
location in which the Employee’s services are to be performed will be the Irvine, California area. The Employee shall not be required to change such principal location in excess of fifty miles beyond the geographic limits of Irvine, California,
without his consent. 
  
 ARTICLE 3 
 COMPENSATION 
  
 3.1 BASE SALARY. As compensation for the services to be rendered by the Employee pursuant to this Agreement, the Company hereby agrees to pay the Employee
an annual salary (“Base Salary”) equal to Four Hundred Thousand Dollars ($400,000.00) during the Term. The Base Salary shall be paid in substantially equal bimonthly installments, in accordance with the normal payroll practices of
the Company. 
  
 3.2 BONUSES. The Board may, in its sole
discretion, provide the Employee with the opportunity to earn an annual bonus (“Bonus”) for each fiscal year of the Company occurring in whole or in part during the Term of fifty percent (50%) (the “Target”) of the
Employee’s Base Salary for such fiscal year. The Bonus, if any, payable to the Employee shall be based on such criteria as may be established by the Board, in its sole discretion, from time to time, and, except for the Target, will be
equivalent to any other bonus opportunities provided generally to executive officers of the Company. The Employee shall 

 participate in all short term and long term bonus or incentive plans or arrangements in which the executives officers of
the Company are eligible to participate from time to time. Any Bonus shall be paid as promptly as practicable following the end of the preceding fiscal year. The provisions of this Section 3.2 shall be subject to the provisions of Section
3.4. 
  
 3.3 WITHHOLDING. The Company shall have the right to
deduct or withhold from the compensation due to the Employee hereunder any and all sums required for federal income and employee social security taxes and all state or local income taxes now applicable or that may be enacted and become applicable.

  
 3.4 RIGHT TO SEEK APPROVAL. The Company may provide for
shareholder approval of any performance based compensation provided herein and may provide for the compensation committee to establish any applicable performance goals and determine whether such performance goals have been met. 
  
 3.5 CHANGE OF CONTROL. Notwithstanding Article 1 above, in the event
of a Change of Control (as defined in Section 3.6) of the Company (a) during the Term while the Employee remains employed by the Company, or (b) at any time during the six (6) month period following the termination of the Employee’s
employment with the Company, the Company shall pay to the Employee, concurrently with the consummation of such Change of Control, a lump sum amount equal to two (2) times the sum of the Employee’s annual Base Salary plus the Bonus (at the
Target level). 
  
 3.6 DEFINITION OF CHANGE OF CONTROL. For
purposes of this Agreement “Change of Control” means the occurrence of any of the following: (i) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation but not including any
underwritten public offering registered under the Securities Act of 1933 (“Public Offering”) or any offering of securities under Rule 144A promulgated under the Securities Act of 1933 (“Rule 144A Offering”)) in one
or a series of related transactions of all or substantially all of the assets of the Company taken as a whole to Person or group of Persons acting together (each a “Group”) (other than any of the Company’s wholly-owned
subsidiaries or any Company employee pension or benefits plan), (ii) except in respect of a voluntary or involuntary filing under applicable bankruptcy or insolvency laws, the adoption of a plan relating to the liquidation or dissolution of the
Company, (iii) the consummation of any transactions (including any stock or other purchase, sale, acquisition, disposition, merger, consolidation or reorganization, but not including any Public Offering or Rule 144A Offering) the result of which is
that any Person or Group (other than any of the Company’s wholly-owned Subsidiaries, any underwriter temporarily holding securities pursuant to a Public Offering or any Company employee pension or benefits plan), becomes the beneficial owners
of more than 40 percent (40%) of the aggregate voting power of all classes of stock of the Company having the right to elect directors under ordinary circumstances; or (iv) the first day on which a majority of the members of the Board are not
individuals who were nominated for election or elected to the Board with the approval of two-thirds of the members of the Board just prior to the time of such nomination or election. Upon the termination of employment as provided for in Article
6 hereof, the Employee shall immediately resign from the Board. 
  
 ARTICLE 4 
 EMPLOYEE BENEFITS 
  
 4.1 BENEFITS. The Company agrees that the Employee shall be entitled to all ordinary and customary perquisites afforded generally to executive employees
of the Company (except to the extent employee contribution may be required under the Company’s benefit plans as they may now or hereafter exist), which shall in no event be less than the benefits generally afforded to the other executive
employees of the Company as of the date hereof or from time to time, but in any event shall include any qualified or non-qualified pension, profit sharing and savings plans, any death benefit and disability benefit plans, life insurance coverages,
any medical, dental, health and welfare plans or insurance coverages and any stock purchase programs that are approved in writing by the Board, in its sole discretion. 

 4.2 VACATION. The Employee shall be entitled to four (4) weeks of paid vacation for each full calendar
year of his employment hereunder. To the extent accrued vacation time is unused in any given year, it may be carried over in accordance with the policies of the Company then in effect. Notwithstanding anything to the contrary, however, the Employee
shall not be entitled to carry over any unused vacation for a period exceeding two (2) years. 
  
 ARTICLE 5 
 BUSINESS EXPENSES 
  
 5.1 EXPENSES. The Company shall pay or reimburse the Employee for all reasonable and authorized business expenses incurred
by the Employee during the Term; such payment or reimbursement shall not be unreasonably withheld so long as said business expenses have been incurred for and promote the business of the Company and are normally and customarily incurred by employees
in comparable positions at other comparable businesses in the same or similar market. Notwithstanding the above, the Company shall not pay or reimburse the Employee for the costs of any membership fees or dues for private clubs, civic organizations,
and similar organizations or entities, unless such organizations and the fees and costs associated therewith have first been approved in writing by the Board, in its sole discretion. 
  
 5.2 TRAVEL COSTS. The Company shall reimburse the Employee for expenses incurred with business-related travel, including,
but not limited to, Business Class travel expenses for business-related flights. 
  
 5.3 RECORDS. As a condition to reimbursement under this Article 5, the Employee shall furnish to the Company adequate records and other documentary evidence required by federal and state statutes and
regulations for the substantiation of each expenditure. The Employee acknowledges and agrees that failure to furnish the required documentation may result in the Company denying all or part of the expense for which reimbursement is sought.

  
 ARTICLE 6 
 TERMINATION OF EMPLOYMENT 
  
 6.1 TERMINATION BY THE COMPANY. The Company may, during the Term, terminate the Employee’s employment under this Agreement and discharge the Employee
for any reason or no reason by delivering written notice thereof to the Employee, and in such event, except as set forth in the proviso to this Section 6.1, neither party shall have any rights or obligations under Article 2,
Sections 3.1 and 3.2, or Articles 4 and 5; provided, however, that (a) the Company shall be required to continue to pay the Base Salary to the Employee in accordance with Section 3.1 and Section 3.3 and all
benefits in accordance with Section 4 (subject to Section 3.3), until ninety (90) days after the date on which the Term would have expired had it not been terminated pursuant to this Section 6.1, (b) the Company shall pay the
Employee any amount due and owing as of the termination date pursuant to Section 3.2 (including a Bonus for the year in which the termination occurs, prorated to the date of termination based on the performance of the Company in such year as
of the date on which the termination occurs versus the performance targets for the Company established by the Board for the entire year, and using such factors as the Board shall determine in its sole discretion (e.g., revenue, EBITDA, net
income, etc.)) and Article 5 (subject, in each case, to Section 3.3), and (c) the remaining provisions of this Agreement shall remain in full force and effect in accordance with their terms. The amounts and benefits required by
clause (a) above shall be provided only if the Employee has executed (and not revoked) a release in favor of the Company (which release shall be substantially in the form attached as Exhibit A). Provided that the Employee’s
employment has not 

 previously been terminated pursuant to this Section 6.1, the provisions of this Section 6.1 shall not apply
to the termination of the Employee’s employment as a result of the expiration of the Term in accordance with Section 1.2. 
  
 6.2 TERMINATION BY THE EMPLOYEE. The Employee may, during the Term, upon thirty (30) days’ prior written notice, terminate his employment under this
Agreement and resign as an employee of the Company for any reason or no reason by delivering written notice thereof to the Company, and in such event, except as set forth in the proviso to this Section 6.2, neither party shall have any rights
or obligations under Article 2, Sections 3.1 and 3.2, or Articles 4 and 5; provided, however, that (a) the Company shall pay the Employee any amount due and owing as of the termination date pursuant to Section
3.1 and Section 3.2 (including a Bonus for the year in which the termination occurs, prorated to the date of termination based on the performance of the Company in such year as of the date on which the termination occurs versus the
performance targets for the Company established by the Board for the entire year, and using such factors as the Board shall determine in its sole discretion (e.g., revenue, EBITDA, net income, etc.)) and Articles 4 and 5
(subject, in each case, to Section 3.3), and (b) the remaining provisions of this Agreement shall remain in full force and effect in accordance with their terms. 
  
 6.3 OPTIONS. All vested stock options held by the Employee as of the date hereof shall be governed by the stock option
agreements governing such options and the Prior Agreement (which shall survive solely for the purposes of governing, and only to the extent necessary to govern, such options and for no other purpose). Notwithstanding anything to the contrary
contained in any stock option agreement, upon any termination of the Employee’s employment, all unvested stock options held by the Employee as of such termination date (“Unvested Options”) shall immediately cease to vest, but
shall remain outstanding solely for the purposes of the following: 
  
 6.3.1 If (a) the Employee was not in breach of this Agreement at the time his employment with the Company was terminated, (b) there is a Change of Control of the Company at any time during the six (6) month period following the termination
of the Employee’s employment with the Company, and (c) the Employee was in compliance with the provisions of Section 8.2 at all times prior to the Change of Control, then all Unvested Options shall vest in full effective immediately
prior to such Change of Control and shall be exercisable for two (2) years following such Change of Control, but in no event longer than ten (10) years from the date of grant; and 
  
 6.3.2 If (a) the Unvested Options are not accelerated pursuant to Section 6.3.1, (b) the Employee was not in breach
of this Agreement at the time his employment with the Company was terminated, and (c) the Employee agrees in writing at the time of termination to comply with the provisions of Section 8.2 for the last to occur of (i) July 22, 2006, and (ii)
the one (1) year anniversary of the date on which his employment terminated (such period, the “Alternative Vesting Period”), any Unvested Options that would have vested during such Alternative Vesting Period had the Employee
remained employed by the Company shall be deemed to have vested effective as of end of the Alternative Vesting Period and shall be exercisable for a period of (i) one (1) year following the date on which they are deemed to have vested, if the
Employee’s employment terminated pursuant to Section 6.1, or (ii) ninety (90) days following the date on which they are deemed to have vested, if the Employee’s employment terminated pursuant to Section 6.2 (but in no event
longer than ten (10) years from the date of grant), and all Unvested Options that would not have vested during such period shall be forfeited and cancelled; provided, that if the Employee does not comply with the provisions of Section 8.2 at
any time during the Alternative Vesting Period, all Unvested Options shall immediately be forfeited and cancelled. 
  
 In all other cases, the Unvested Options shall terminate and be forfeited and cancelled. The parties agree to amend the terms and conditions of any and all of the
Employee’s stock options or stock option agreements to the extent reasonably necessary to effectuate the provisions of this Section 6.3. 
  
  

 ARTICLE 7 
 PARACHUTE TAX INDEMNITY 
  
 7.1
GROSS-UP PAYMENT. 
  
 (a) If it shall be determined that any
amount paid, distributed or treated as paid or distributed by the Company to or for the benefit of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, any stock option agreement between the
Employee and the Company or otherwise, but determined without regard to any additional payments required under this Article 7) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by the Employee with respect to such excise tax (such excise tax, together with any such interest and penalties, being hereinafter collectively
referred to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Employee of all federal, state and local
taxes (including any interest or penalties imposed with respect to such taxes), including without limitation, any income taxes (including any interest or penalties imposed with respect thereto) and Excise Tax imposed on the Gross-up Payment, the
Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
  
 (b) The determinations of whether and when a Gross-Up Payment is required under this Article 7 shall be made by the Company based on its good
faith interpretation of applicable law. The amount of such Gross-Up Payment and the valuation assumptions to be utilized in arriving at such determination shall be made by the Company which shall provide detailed supporting calculations to the
Employee within 15 business days of the receipt of notice from the Employee that there has been a Payment subject to the Excise Tax, or such earlier time as is requested by the Company. Any Gross-Up Payment, as determined pursuant to this Article
7, shall be paid by the Company to the Employee within twenty-five (25) days of the receipt of notice from the Employee that there has been a Payment subject to the Excise Tax. Any determinations by the Company shall be binding upon the
Employee, provided, however, if it is later determined that there has been an underpayment of Excise Tax and that the Employee is required to make an additional Excise Tax payment(s) on any Payment or Gross-Up Payment, the Company
shall provide a similar full gross-up on such additional liability. 
  
 (c) For purposes of any determinations made by the Company acting under Section 7.1(b): 
  
 (i) All Payments and Gross-Up Payments with respect to the Employee shall be deemed to be “parachute payments” under Section 280G(b) (2) of the
Code and to be “excess parachute payments” under Section 280G(b) (1) of the Code that are fully subject to the Excise Tax under Section 4999 of the Code, except to the extent (if any) that the Company determines in good faith that a
Payment in whole or in part does not constitute a “parachute payment” or otherwise is not subject to Excise Tax; 
  
 (ii) The value of any non-cash benefits or deferred or delayed payments or benefits shall be determined in a manner consistent with the principles of
Section 280G of the Code; and 
  
 (iii) The Employee shall be
deemed to pay federal, state and local income taxes at the actual maximum marginal rate applicable to individuals in the calendar year in which the Gross-Up Payment is made, net of any applicable reduction in federal income taxes for any state and
local taxes paid on the amounts in question. 

 7.2 CLAIMS AND PROCEEDINGS. The Employee shall notify the Company in writing of any Excise Tax claim by
the Internal Revenue Service (or any other state or local taxing authority) that, if successful, would require the payment by the Company of a Gross-Up Payment. Such notification shall be given as soon as practicable but no later than twenty (20)
business days after the Employee is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is to be paid. The Employee shall not pay such claim prior to the expiration of the
30-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Employee in writing prior to the
expiration of such period that it desires to contest such Excise Tax claim, the Employee shall: (i) give the Company any information reasonably requested by the Company relating to such claim; (ii) take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company after consultation in good faith
with the Employee and subject to approval by the Employee (which approval shall not be unreasonably withheld) under the circumstances set forth in Section 7.1; (iii) cooperate with the Company in good faith in order to effectively contest
such claim; and (iv) permit the Company to participate in any proceeding relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold the Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and expense. Without limitation of the foregoing provisions of this Article 7, the Company shall control the Excise Tax portion of any proceedings taken in connection with such contest and, at its sole option, may pursue or forego
any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such Excise Tax claim and the Employee agrees to prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that the Employee may elect at its sole option to pay the tax claimed and require the Company to contest through a
suit for a refund. If the Employee elects to pay such Excise Tax claim and contest through a suit for a refund, the Company shall advance the amount of such payment to the Employee, on an interest-free basis, and shall indemnify and hold the
Employee harmless, on an after-tax basis, from any Excise Tax or income tax (including interest and penalties) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and provided, however, that any
Company-directed extension of the statute of limitations relating to payment of taxes for the Employee’s taxable year with respect to which such contested Excise Tax amount is claimed to be due shall be effective only if it can be and is
limited to the contested Excise Tax liability. 
  
 7.3 REFUNDS.
If, after the Employee’s receipt of an amount advanced by the Company pursuant to this Article 7 for payment of Excise Taxes, the Employee files an Excise Tax refund claim and receives any refund with respect to such claim, the Employee
shall (subject to the Company’s complying with the requirements of this Article 7) except as provided below, promptly pay to the Company the amount of any such refund of Excise Tax (together with any interest paid or credited thereon,
but after any and all taxes applicable thereto), plus the amount (after any and all taxes applicable-thereto) of the refund (if any is applied for and received) of any income tax paid by the Employee with respect to and as a result of his prior
receipt of any previously paid Gross-Up Payment indemnifying the Employee with respect to any such Excise Tax later so refunded. In the event the Employee files for a refund of the Excise Tax and such request would, if successful, require the
Employee to refund any amount to the Company pursuant to this provision, then the Employee shall be required to seek a refund of the Income Tax portion of any corresponding Gross-Up Payment so long as such refund request would not have a material
adverse effect on the Employee (which determination shall be made by independent tax counsel selected by the Employee after good faith consultation with the Company and subject to approval of the Company, which approval shall not be unreasonably
withheld). If, after the Employee’s receipt of an amount advanced by the 

 Company pursuant to this Article 7, a determination is made that the Employee shall not be entitled to any refund
with respect to such claim and the Company does not notify the Employee in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of the Gross-Up Payment required to be paid. 
  
 ARTICLE 8 
 RESTRICTIVE COVENANTS 
  
 8.1 COVENANT NOT TO DISCLOSE CONFIDENTIAL INFORMATION. During the Term and
following termination of Employee’s employment under this Agreement, the Employee agrees that, without the Company’s prior written consent, he will not use or disclose to any person, firm, association, partnership, entity or corporation,
any confidential information concerning: (i) the business, operations or internal structure of the Company or any division or part thereof; (ii) the customers of the Company or any division or part thereof; (iii) the financial condition of the
Company or any division or part thereof; and (iv) other confidential information pertaining to the Company or any division or part thereof, including without limitation, trade secrets, technical data, marketing analyses and studies, operating
procedures, customer and/or inventory lists, or the existence or nature of any of the Company’s agreements or agreements of any division thereof (other than this Agreement and any other option or compensation related agreements involving, the
Employee); provided, however, that the Employee shall be entitled to disclose such information: (i) to the extent the same shall have otherwise become publicly available (unless made publicly available by the Employee); (ii) during, the course of or
in connection with any actual or potential litigation, arbitration, or other proceeding based upon or in connection with the subject matter of this Agreement; (iii) as may be necessary or appropriate to conduct his duties hereunder, provided the
Employee is acting, in good faith and in the best interest of the Company; (iv) as may be required by law or judicial process or (v) if the information is generally known to personnel in the Employee’s trade or business. 
  
 8.2 COVENANT NOT TO COMPETE. The Employee acknowledges that he has
established and will continue to establish favorable relations with the customers, clients and accounts of the Company and will have access to trade secrets of the Company. Therefore, in consideration of such relations and the entering into of this
Agreement by the Company (and, in respect of the Employee’s agreement to be bound by this Section 8.2 for the Alternative Vesting Period as provided in Section 6.3.2, the Employee’s rights to receive the amounts, if any,
pursuant to Section 6.1 (if applicable), and to have the Unvested Options continue to vest of pursuant to Section 6.3), and to further protect trade secrets, directly or indirectly, of the Company, the Employee agrees that at all times
during his employment with the Company through the one (1) year anniversary of the date of termination of the Employee’s employment, the Employee will not, directly or indirectly, without the express written consent of the Board: 
  
 (i) own or have any interest in or act as an officer, director, partner,
principal, employee, agent, representative, consultant or independent contractor of, or in any way assist in, any business which is engaged, directly or indirectly, in any business competitive with the Company in those automotive markets and/or
automotive products lines in which the Company competes within the United States at any time during the Term, or become associated with or render services to any person, firm, corporation or other entity so engaged (“Competitive
Businesses”); provided, however, that the Employee may own without the express written consent of the Company not more than two percent (2%) of the issued and outstanding securities of any company or enterprise whose securities are listed
on a national securities exchange or actively traded in the over the counter market; 
  
 (ii) solicit clients, customers or accounts of the Company for, on behalf of or otherwise related to any such Competitive Businesses or any products related thereto; or 

 (iii) solicit any person who is or shall be in the employ or service of the Company to leave such employ
or service for employment with the Employee or an affiliate of the Employee. 
  
 Notwithstanding the foregoing, if any court determines that the covenant not to compete, or any part thereof, is unenforceable because of the duration of such provision or the geographic area or scope covered thereby, such court shall have
the power to reduce the duration, area or scope of such provision to the extent necessary to make the provision enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced. The Company shall pay and be solely
responsible for any attorney’s fees, expenses, costs and court or arbitration costs incurred by the Employee in any matter or dispute between the Employee and the Company which pertains to this Article 8 if the Employee prevails in the
contest in whole or in part. 
  
 8.3 SPECIFIC PERFORMANCE.
Recognizing that irreparable damage will result to the Company in the event of the breach or threatened breach of any of the foregoing covenants and assurances by the Employee contained in Sections 8.1 and 8.2, and that the
Company’s remedies at law for any such breach or threatened breach may be inadequate, the Company and its successors and assigns, in addition to such other remedies which may be available to them, shall, upon making a sufficient showing under
applicable law, be entitled to an injunction to be issued by any court of competent jurisdiction ordering compliance with this Agreement or enjoining and restraining the Employee, and each and every person, firm or company acting in concert or
participation with him, from the continuation of such breach. The obligations of the Employee and rights of the Company pursuant to this Article 8 shall survive the termination of the Employee’s employment under this Agreement. The
covenants and obligations of the Employee set forth in this Article 8 are in addition to and not in lieu of or exclusive of any other obligations and duties the Employee owes to the Company, whether expressed or implied in fact or law.

  
 ARTICLE 9 
 GENERAL PROVISIONS 
  
 9.1 FINAL AGREEMENT. Except with respect to the terms of (a) any existing confidentiality, non-disclosure, and non-competition agreements between the
Company and the Employee (solely for the purposes of permitting either party to seek remedies for a breach thereof in respect of acts or omissions occurring prior to the date hereof), (b) the Prior Agreement (solely for the purposes of (i)
governing, and only to the extent necessary to govern, vested stock options held by the Employee as of the date hereof, and (ii) the indemnification provisions set forth in Section 8.2 thereof and for no other purpose) and (c) subject to the
provisions of Section 6.3, stock option agreements between the Employee and Autobweb.com, Inc. governing stock options held by the Employee as of the date hereof, and (d) inventions agreements and stock option agreements (as the same may be
amended as contemplated by Section 6.3) between the Employee and the Company, this Agreement is intended to be the final, complete and exclusive agreement between the parties relating to the employment of the Employee by the Company and all
prior or contemporaneous understandings, representations and statements, oral or written, are merged herein. Except as set forth in clauses (a) through (d) above, this Agreement supersedes all of the Employee’s compensation
agreements with Autoweb.com, Inc. and the Company, and the Employee expressly acknowledges that he is not and will not be entitled to any severance payments under any Company or Autoweb.com, Inc. agreement or change of control plan. No modification,
waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement thereof is or may be sought. 
  
 9.2 NO WAIVER. No waiver, by conduct or otherwise, by any party of any term, provision, or condition of this Agreement,
shall be deemed or construed as a further or continuing waiver of any such term, provision, or condition nor as a waiver of a similar or dissimilar condition or provision at the same time or at any prior or subsequent time. 

 9.3 RIGHTS CUMULATIVE. The rights under this Agreement, or by law or equity, shall be cumulative and may
be exercised at any time and from time to time. No failure by any party to exercise, and no delay in exercising, any rights shall be construed or deemed to be a waiver thereof, nor shall any single or partial exercise by any party preclude any other
or future exercise thereof or the exercise of any other right. 
  
 9.4 NOTICE. Except as otherwise provided in this Agreement, any notice, approval, consent, waiver or other communication required or permitted to be given or to be served upon any person in connection with this Agreement shall be in
writing. Such notice shall be personally served, sent by telegram, tested telex, fax or cable, or sent prepaid by either registered or certified mail with return receipt requested or Federal Express and shall be deemed given (i) if personally served
or by Federal Express, when delivered to the person to whom such notice is addressed, (ii) if given by telegram, telex, fax or cable, when sent, or (iii) if given by mail, two (2) business days following deposit in the United States mail. Any notice
given by telegram, telex, fax or cable shall be confirmed in writing), by overnight mail or Federal Express within forty-eight (48) hours after being sent. Such notices shall be addressed to the party to whom such notice is to be given at the
party’s address set forth below or as such party shall otherwise direct. 
  

	
	 If to the Company:

	
	 Autobytel Inc.

	 18872 MacArthur Boulevard

	 Irvine, California 92612-1400

	 Facsimile: (949) 862-1323

	 Attn: General Counsel

	
	 If to the Employee:

	
	 Jeffery Schwartz

	 24950 Normans Way

	 Calabasas, California 91302

	
	 With a copy to:

	
	 Larry C. Drapkin

	 Mitchell, Silberberg & Knupp

	 113770 Olympic Boulevard

	 Los Angeles, California 90064

  
 9.5 SUCCESSORS. The
terms and conditions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. 
  
 9.6 GOVERNING LAW. This Agreement 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. 
  
 9.7 COUNTERPARTS. This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one instrument. 

 9.8 SEVERABILITY. The provisions of this Agreement are agreed to be severable, and if any provision, or
application thereof, is held invalid or unenforceable, then such holding shall not affect any other provision or application. 
  
 9.9 CONSTRUCTION. As used herein, and as the circumstances require, the plural term shall include the singular, the singular shall include the plural, the
neuter term shall include the masculine and feminine genders, and the feminine term shall include the neuter and the masculine genders. 
  
 9.10 ARBITRATION. Except as otherwise provided in Section 8.3 hereof, any controversy or claim arising out of, or related to, this Agreement, or
the breach thereof, shall be settled by binding arbitration in the City of Irvine, California, in accordance with the employment arbitration rules then in effect of the American Arbitration Association, and the arbitrator’s decision shall be
binding and final, and judgment upon the award rendered may be entered in any court having jurisdiction thereof. Each party hereto shall pay its or their own expenses incident to the negotiation, preparation and resolution of any controversy or
claim arising out of, or related to, this Agreement, or the breach thereof; provided, however, the Company shall pay and be solely responsible for any attorneys’ fees and expenses and court or arbitration costs incurred by the Employee as a
result of a claim brought by either the Employee or the Company alleging that the other party breached or otherwise failed to perform this Agreement or any provision hereof to be performed by the other party if the Employee prevails in the contest
in whole or in part. 
  
 9.11 LEGAL FEES. All reasonable
attorney’s fees and costs incurred by the parties in connection with the negotiation and preparation of this Agreement and related diligence matters shall be borne by the Company. 
  
 [SIGNATURE PAGE FOLLOWS] 
  
  

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

  

			
	AUTOBYTEL INC.
		
	By:	 	 /s/ Michael Fuchs

	 	 	Michael Fuchs
	 	 	Chairman
	
	JEFFREY A. SCHWARTZ
		
	By:	 	 /s/ Jeffrey Schwartz

	 	 	Jeffrey A. Schwartz

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