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AUDIOEYE INC Director's Dealing 2018

Sep 4, 2018

33790_dirs_2018-09-04_d3e91f54-112d-48e1-9c4e-56cfd409589d.zip

Director's Dealing

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SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: AUDIOEYE INC (AEYE)
CIK: 0001362190
Period of Report: 2018-09-04

Reporting Person: Bradley Sean D. (President, CTO, Co-Founder)

Holdings (Non-Derivative)

Security Shares Ownership
Common Stock 19517 Direct
Common Stock 173864 Indirect

Holdings (Derivative)

Security Exercise Price Expiration Underlying Shares Ownership
Stock Options (right to buy) $0.95 2019-01-15 Common Stock (6000) Direct
Stock Options (right to buy) $0.95 2021-01-15 Common Stock (60000) Direct
Stock Options (right to buy) $4.475 2019-04-15 Common Stock (1989) Direct
Stock Options (right to buy) $3.9 2019-07-15 Common Stock (2255) Direct
Stock Options (right to buy) $3.125 2019-10-15 Common Stock (2464) Direct
Warrants (right to buy) $10 2018-11-12 Common Stock (128) Direct
Series A Convertible Preferred Stock $ Common Stock (11007) Direct

Footnotes

F1: Mr. Bradley is deemed the beneficial owner of Banyon Tree LLC.

F2: The stock option vests as follows: subject to performance schedule and determined at the end of each calendar year.

F3: The shares of Series A Convertible Preferred Stock of the Issuer ("Series A Preferred Stock") were immediately convertible upon issuance and do not expire.

F4: 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").

F5: 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.