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AUDIOEYE INC Director's Dealing 2018

Dec 31, 2018

33790_dirs_2018-12-31_b672f4e3-c612-48d3-8b2f-d00fb29e2b25.zip

Director's Dealing

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SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: AUDIOEYE INC (AEYE)
CIK: 0001362190
Period of Report: 2018-12-31

Reporting Person: Purcell Ernest William (Director)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2018-12-31 Common Stock A 11280 Acquired 268681 Direct

Holdings (Non-Derivative)

Security Shares Ownership
Common Stock 57334 Indirect

Holdings (Derivative)

Security Exercise Price Expiration Underlying Shares Ownership
Stock Options (right to buy) $4.15 2022-07-10 Common Stock (40000) 40000 Direct
Stock Options (right to buy) $10 2019-03-03 Common Stock (10000) 10000 Direct
Stock Options (right to buy) $1.025 2020-10-23 Common Stock (30000) 30000 Direct
Stock Options (right to buy) $4.425 2021-05-12 Common Stock (28000) 28000 Direct
Stock Options (right to buy) $4.425 2021-05-12 Common Stock (12000) 12000 Direct
Warrants (right to buy) $4 2020-06-02 Common Stock (40000) 40000 Direct
Warrants (right to buy) $6.25 2021-04-18 Common Stock (4000) 4000 Direct
Warrants (right to buy) $6.25 2021-12-19 Common Stock (3200) 3200 Direct
Series A Convertible Preferred Stock $ Common Stock (26801) 26801 Direct

Footnotes

F1: The reported transaction constitutes a grant of restricted stock units, which were granted under the Issuer's Stock Incentive Plan, subject to vesting and settlement conditions.

F2: Mr. Purcell is deemed the beneficial owner of Ernest W. Purcell & Anne M. Purcell JTTENN.

F3: The stock option was granted on 7/10/17 and vested immediately.

F4: The stock option was granted on 3/3/14 and vests as follows: 20% on grant; 20% every 90 days thereafter.

F5: The stock option was granted on 10/19/15 and vests as follows: 50% immediate and 12.5% per quarter thereafter.

F6: The stock options were granted on 5/12/16 and vest as follows: 50% immediate; 50% quarterly over succeeding 12 months.

F7: The shares of Series A Convertible Preferred Stock of the Issuer ("Series A Preferred Stock") were immediately convertible upon issuance and do not expire.

F8: Each share of Series A Preferred Stock shall be convertible, at any time and from time to time into that number of shares of the Issuer's common stock determined by dividing $10 (the "Stated Value") plus any accrued dividends with respect to such share by the Conversion Price of $4.385, subject to adjustment as described in the Certificate of Designations for the Series A Preferred Stock (the "Series A COD").

F9: Holders of shares of Series A Preferred Stock are entitled to receive, when, as and if declared by the Board of Directors of the Issuer, cumulative dividends at the annual rate of 5% of the Stated Value per share of Series A Preferred Stock. Such dividends shall accrue on each such share commencing on the date of issue, and shall accrue from day to day, whether or not earned or declared. Subject to the terms of the Series A COD, at any time the Issuer shall be entitled to redeem any or all of the outstanding shares of Series A Preferred Stock at a per share price equal to 125% of the Stated Value plus accumulated dividends, payable in cash.