AUDIOEYE INC — Director's Dealing 2018

Dec 31, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: AUDIOEYE INC (AEYE)
CIK: 0001362190
Period of Report: 2018-09-26

Reporting Person: ZYNGIER ALEXANDRE (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2018-12-31	Common Stock	A	11280	—	Acquired	29480	Direct
2018-10-29	Common Stock	J	13384	$3.75	Acquired	63430	Indirect

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-09-26	Warrants (right to buy)	$2.5	J	20000	Acquired	2023-09-26	Common Stock (20000)	Indirect

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	10400	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
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)	$2.50	2020-10-16	Common Stock (40000)	40000	Indirect

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. Zyngier is deemed the beneficial owner of Equity Trust Custodian, FBO Alexandre Zyngier IRA.

F3: Mr. Zyngier is deemed the beneficial owner of HZ Investments Family LP.

F4: As previously disclosed, investors in the October 2015 transaction had the right, within a three-year period, to purchase an additional note and warrant. The reporting person exercised their right and received 20,000 warrants on the exercise date and 13,384 shares of common stock following maturity of the note.

F5: The stock options vest as follows: 50% immediate and 12.5% per quarter.

F6: The stock options vest as follows: 50% immediate; 50% quarterly over succeeding 12 months.