Exhibit 10.33


 


THIS NOTE AND THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING SUCH
SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION
IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.


 


CONVERTIBLE PROMISSORY NOTE


 


	 	Note No. PM-31
	$50,000	Date of Issuance: September 26, 2018


 


1.          FOR
VALUE RECEIVED, AudioEye, Inc., a Delaware corporation (the “Company”), promises to pay to Equity Trust
Custodian, FBO Alexandre Zyngier IRA (the “Holder”), or its registered assigns, the principal sum of
$50,000, or such lesser amount as shall then equal the outstanding principal amount hereof, together with accrued and unpaid interest
thereon, each due and payable on the date and in the manner set forth below.


 


This Convertible
Promissory Note (this “Note”) is issued pursuant to the Note and Warrant Purchase Agreement, dated as
of October 9, 2015, executed by the Company, the Holder, and the other parties thereto (as the same may from time to time be amended,
modified, extended, renewed or restated, the “Purchase Agreement”). In the event of any conflict between
the provisions of this Note and the provisions of the Purchase Agreement, the provisions of the Purchase Agreement shall govern.
Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Purchase Agreement.


 


2.          Repayment.



 


(i)          On
Maturity Date. If not converted pursuant to Section 6 herein, all principal, interest and other charges and amounts
to be paid hereunder shall be due and payable, in full in one lump sum, on the earliest of (a) October 9, 2018 (the “Maturity
Date”) or (b) the date such amounts become due and payable after the occurrence of an Event of Default in accordance
with Section 11 herein. In the event of any conversion pursuant to Section 6 herein, all interest shall be so converted
and shall not be payable in cash.


 


(ii)         Upon
Consummation of Change of Control. If a Change of Control occurs prior to the earlier of the consummation of an Equity Financing
(as defined below) and the Maturity Date, then this Note shall be repaid upon the consummation of the Change of Control in an amount
equal to the product of (A) 1.4 and (B) the outstanding principal amount and all accrued and unpaid interest on this Note. “Change
of Control” shall mean either (i) the acquisition of the Company by one or more persons or entities by means of any
transaction or series of transactions to which the Company is party (including any stock acquisition, reorganization, merger or
consolidation, and including any sale or issuance of stock for capital raising purposes) other than a transaction or series of
transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue
to retain, as a result of shares of capital stock in the Company held by such holders prior to such transaction, at least a majority
of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately
after such transaction or series of transactions; or (ii) a sale of all or substantially all of the assets of the Company.


 




     


     


    

 


3.          Interest.
Until this Note is converted pursuant to Section 6 herein, payable-in-kind interest (the “PIK Interest”)
shall accrue at a rate of ten percent (10%) per annum on the outstanding principal balance of this Note commencing on the date
hereof, and shall continue accruing until repayment or conversion of all amounts due hereunder. PIK Interest shall be due and payable
on the Maturity Date and shall be calculated on the basis of a 365-day year for the actual number of days elapsed. 


 


4.          Prepayment.
The Company may not prepay this Note prior to the Maturity Date without the consent of the Holder.


 


5.          Payment
Process. All payments to be made by the Company “(other than Equity Securities or, upon irrevocable election prior to
such conversion, Special Warrants, as defined below, issued upon conversion of this Note in accordance with Section 6) shall
be made in cash in immediately available funds, without set-off, recoupment or counterclaim and free and clear of and without any
deduction of any kind for any taxes, levies, fees, deductions, withholdings, restrictions or conditions of any nature.


 


6.          Waivers.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.


 


7.          Conversion.
If the Company issues or sells equity securities of the Company (excluding convertible debt securities) (“Equity Securities”)
in a single transaction or series of related transactions for cash of at least $1,000,000 (excluding the conversion of the Notes
and excluding the shares of common stock, $0.00001 par value per share, of the Company (“Common Stock”)
to be issued upon exercise of the Warrants dated as of the date hereof and issued in connection with the Purchase Agreement (the
“Warrants”)) on or before the Maturity Date (the “Equity Financing”), all of
the unpaid principal of this Note plus accrued interest on this Note shall be automatically converted at the closing of the Equity
Financing into (a) a number of shares of the same class or series of Equity Securities as are issued or sold by the Company in
such Equity Financing (or a class or series of Equity Securities identical in all respects to and ranking pari passu with the class
or series of Equity Securities issued and sold in such Equity Financing) (such persons that have not elected to receive Special
Warrants, the “Default Equity Converting Holders”) or (b) if irrevocably elected prior to the closing of the Equity
Financing, a warrant, in substantially the form attached hereto as Exhibit A (the “Special Warrant”),
to purchase, at an exercise price of $0.001 per share, a number of shares of the same class or series of Equity Securities as are
issued and sold by the Company in such Equity Financing (or a class or series of Equity Securities identical in all respects to
and ranking pari passu with the class or series of Equity Securities issued and sold in such Equity Financing) (such persons that
elected to receive Special Warrants, the “Warrant Converting Holders”), which number of shares (in the
case of Default Equity Converting Holders) or shares issuable upon the exercise of the Special Warrant (in the case of Warrant
Converting Holders) shall be determined by dividing (i) the principal and accrued and unpaid interest amount of the Note by (ii)
60% of the price per share at which such Equity Securities are issued and sold in such Equity Financing (the “Conversion
Shares”); provided that, notwithstanding the foregoing, in the case of Warrant Converting Holders, the exercise of
the Special Warrant (and the maximum number of Conversion Shares that the Holder may acquire) shall be subject in all respects
to the limitations on exercise set forth in the Special Warrant, including Section 9 thereof. The following Equity Securities shall
not be deemed to be issued or sold as part of the Equity Financing: (i) Common Stock or options to purchase Common Stock issued,
sold or granted pursuant to the Company’s equity incentive plans; or (ii) securities of the Company issued pursuant to the
exercise of any convertible or exercisable securities outstanding as of the date of this Note (the securities set forth in clauses
(i) and (ii), collectively, the “Excluded Securities”). In the event the Company does not complete an
Equity Financing prior to the Maturity Date, the holders of a majority in interest of the aggregate outstanding principal amount
of the Notes may elect to cause all Notes to convert into either shares of capital stock of the Company or, in the case of persons
who have irrevocably elected warrants, warrants to purchase shares of capital stock of the Company on such terms as are agreed
to by such holders and the Company; provided, however, that the restrictions on exercise of such warrants shall be no less than
those set forth in the Special Warrant, including Section 9 thereof.”


 




    	 	- 2 -	 



     


    

 


8.          Affirmative
Covenants. Until all amounts outstanding under this Note have been paid in full, or the Note has been converted, unless the
Holders of a majority in interest of the outstanding principal under the Notes consent otherwise, the Company shall:


 


(a)          during
normal business hours, permit the Holder to visit and inspect the Company’s properties, to examine its books of account and
records and to discuss the Company’s affairs, finances and accounts with its officers, all at such times as reasonably may
be requested by the Holder;


 


(b)          as
soon as possible and in any event within two (2) business days after it becomes aware that a Default or an Event of Default has
occurred, notify the Holder in writing of the nature and extent of such Default or Event of Default and the action, if any, it
has taken or proposes to take with respect to such Default or Event of Default; and


 


(c)          upon
the request of the Holder, promptly execute and deliver such further instruments and do or cause to be done such further acts as
may be necessary or advisable to carry out the intent and purposes of the Note.


 


9.          Negative
Covenants. Until all amounts outstanding under this Note have been paid in full, or the Note has been converted, without the
consent of the Holders of a majority in interest of the outstanding principal under the Notes, the Company shall not:


 


(a)          incur
any indebtedness in an amount equal to or greater than $250,000;


 


(b)          (i)
sell, transfer or otherwise dispose of any of the Company’s properties, assets and rights to any person except in the ordinary
course of business, (ii) enter into any merger, combination, reorganization, recapitalization or consolidation of the Company,
or (iii) issue, sell or transfer any Equity Securities to any person in a transaction or series of transactions, in which the equity
holders of the Company immediately prior to such transaction or first of such series of transaction, no longer own a majority of
the Company’s or any successor entity’s issued and outstanding Equity Securities immediately after such transaction
or series of such transactions.


 


(c)          make
any loans, investments, capital expenditures or acquisitions in an amount equal to or greater than $250,000; or


 


(d)          liquidate,
wind-up or dissolve or instruct or grant resolutions to any liquidator of the Company.


 


10.         Mechanics
and Effect of Conversion. 


 


(a)           Upon
the conversion of this Note in accordance with Section 6 hereof, the Company shall be forever released from all its obligations
and liabilities under this Note. In connection with conversion of this Note into Special Warrants pursuant to Section 6
by a Warrant Converting Holder, the Company shall execute and deliver the Special Warrant to such Warrant Converting Holder.


 




    	 	- 3 -	 



     


    

 


(b)           In the
case of Default Equity Converting Holders, no fractional Common Shares shall be issued upon the conversion of this Note in full.
In lieu of the Company issuing any fractional Common Shares to the Holder, Company shall pay to the Holder the amount of outstanding
principal or interest that is not so converted.”


 


11.        Events
of Default. The occurrence of any of the following events shall constitute an “Event of Default”
hereunder (and any event that with the giving of notice or passage of time would constitute an Event of Default shall be referred
to as a “Default”):


 


(a)          the
failure of the Company to make any payment of principal or interest on this Note when due, whether at maturity, upon acceleration
or otherwise, or the failure of the Company to convert the principal and interest on this Note to Equity Securities or the Special
Warrant in accordance with Section 6;


 


(b)          (i)
the Company or a subsidiary of the Company (a “Subsidiary”) makes a determination to discontinue (or
does cease to conduct) business, makes an assignment for the benefit of creditors or admits in writing its inability to pay its
debts generally as they become due; (ii) an order, judgment or decree is entered adjudicating the Company or a Subsidiary as bankrupt
or insolvent; (iii) any order for relief with respect to the Company or a Subsidiary is entered under the U.S. Bankruptcy Code
or any other applicable bankruptcy or insolvency law; (iv) the Company or a Subsidiary petitions or applies to any tribunal for
the appointment of a custodian, trustee, receiver or liquidator of the Company or a Subsidiary or of any substantial part of the
assets of the Company or a Subsidiary commences any proceeding relating to it under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction; or (v) any such petition or application in
(iv) above is filed, or any such proceeding is commenced, against the Company or a Subsidiary and either (x) the Company or such
Subsidiary by any act indicates its approval thereof, consents thereto or acquiesces therein or (y) such petition, application
or proceeding is not dismissed within sixty (60) days; 


 


(c)          unless
waived by the Holders of a majority in interest of the outstanding principal under the Notes,
if the Company defaults in the due and punctual observance or performance of any
of its covenants or other obligations contained in this Note, the Purchase Agreement or Warrants, and such failure continues for
more than sixty (60) days after delivery of written notice thereof; 


 


(d)          any
representation or warranty of the Company made in the Purchase Agreement
or Warrants shall be incorrect when made in any material respect; or


 


(e)          any
of the Company’s indebtedness for borrowed money is accelerated as a result of a default or breach under any agreement for
such borrowed money, including but not limited to loan agreements, or material breach under any real property lease agreements
and capital equipment lease agreements, by which the Company is bound or obligated, which breach is not cured by the Company within
sixty (60) days of delivery of written notice thereof.


 


If an Event of Default
described in (b) above shall occur, the principal of and accrued interest on the Note shall become immediately due and payable
without any declaration or other act on the part of the Holder. Immediately upon the occurrence of any Event of Default described
in (b) above, or upon failure to pay this Note on the Maturity Date, the Holder, without any notice to the Company, which notice
is expressly waived by the Company, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available
to the Holder under this Note, or at law or in equity.


 




    	 	- 4 -	 



     


    

 


If any other Event
of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, the Holder may by notice to the Company
declare all or any portion of the outstanding principal amount of the Note to be due and payable, whereupon the full unpaid amount
of the Note which shall be so declared due and payable shall be and become immediately due and payable without further notice,
demand or presentment.


 


If an Event of Default
occurs, the Company shall pay to the Holder the reasonable attorneys’ fees and disbursement and all other reasonable out-of-pocket
costs incurred by the Holder in order to collect amounts due and owing under this Note or otherwise to enforce the Holder’s
rights and remedies hereunder.


 


12.        Successors
and Assigns. Subject to the restrictions on transfer described in Section 13 below, the rights and obligations
of Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees
of the parties.


 


13.        Modification;
Waiver. Any term of this Note may be amended or waived with the written consent of the Company and the Holders of a majority
of the outstanding principal under the Notes. 


 


14.        Transfer
of this Note.


 


(a)          This
Note may not be transferred in violation of any restrictive legend set forth hereon. Each new Note issued upon transfer of this
Note shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the Securities
Act, unless such legend is removed in accordance with Section 13(b). The Company may issue stop transfer instructions to
its transfer agent in connection with such restrictions. Prior to presentation of this Note for registration of transfer, Company
shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal
and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and Company shall not be affected
by notice to the contrary. Notwithstanding anything to the contrary, this Note may be transferred from the Holder to an affiliate
of the Holder, to a family member of the Holder, or to any trust, partnership, limited liability company or custodianship established
for estate-planning purposes for the primary benefit of the Holder or his or her family members.


 


(b)          The
restrictive legend set forth on the Note shall be removed and the Company shall issue a Note without such legend or any other legend
to the Holder if (i) such Note or the Conversion Shares are sold pursuant to an effective registration statement under the Securities
Act (provided that the Holder agrees to only sell such Note or Conversion Shares during such time that the registration statement
is effective and not withdrawn or suspended, and only as permitted by the registration statement), (i) such Note or Conversion
Shares are sold or transferred pursuant to, and in accordance with all requirements of, Rule 144 (including, if applicable, the
volume, manner-of-sale and notice filing provisions of Rule 144), or (iii) such Note or Conversion Shares are eligible for sale
under Rule 144, without the requirement for the Company to be in compliance with the current public information required under
Rule 144 as to such securities and without volume or manner-of-sale restrictions. The Company shall bear all costs incurred by
it or a Holder relating to the removal of the legend in accordance with this Section 13(b), provided that the Company shall
not be liable for any transfer taxes relating to the issuance of a new Note in the name of any person other than the relevant Holder
and its affiliates.


 


For
the purposes of this Section 13, the term “transfer” shall include
any sale, pledge, gift, assignment, or other disposition of this Note or securities into which such Note may be converted.


 




    	 	- 5 -	 



     


    

 


15.        Assignment
by the Company. Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of
law or otherwise, in whole or in part, by the Company, without the prior written consent of the Holders of a majority in interest
of the outstanding principal under the Notes.


 


16.        Treatment
of Note. To the extent permitted by generally accepted accounting principles, Company will treat, account and report the Note
as debt and not equity for accounting purposes and with respect to any returns filed with federal, state or local tax authorities.


 


17.        Notices,
etc. All notices, requests, consents, and other communications under this Note shall be in writing and shall be deemed delivered
(i) two business days after being sent by registered or certified mail, return receipt requested, postage prepaid or (ii) one
business day after being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, in
each case to the intended recipient as set forth below:


 


(i)          if
to the Holder its address set forth in the Purchase Agreement; and 


 


(ii)         if
to the Company at:


 


AudioEye,
Inc.


5210 E Williams
Cir, Tucson, AZ 85711


Attention:
President


 


With a copy
which shall not constitute notice to:


 


DLA Piper
LLP (US)


401 Congress
Avenue, Suite 2500


Austin, Texas
78701


Attention:
Paul Hurdlow


facsimile
(512) 457-7001


 


18.        Expenses.
In the event of any default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by Holder
in enforcing and collecting this Note.


 


19.        Governing
Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the conflicts of law provisions of the State of Delaware or of any other
state. In connection with any dispute which may arise hereunder, the parties hereby irrevocably submit to the exclusive jurisdiction
of any court located in Delaware and each party waives any objection to the laying of venue therein.


 


20.        Savings.
No part of this Note or any agreement entered into in connection herewith, nor any charge or receipt by Holder, is supposed to
permit Holder to impose interest or other amounts in excess of lawful amounts, and shall be automatically constrained by this provision.
If an excess occurs, Holder will apply it as a credit or otherwise refund it and the rate or amount involved will automatically
be reduced to the maximum lawful rate or amount. To the extent permitted by law, for purposes of determining Holder’s compliance
with law, Holder may calculate charges by amortizing, prorating, allocating and spreading.


 




    	 	- 6 -	 



     


    

 


21.        Powers
and Remedies Cumulative; Delay or Omission Not Waiver of Event of Default. No right or remedy herein conferred upon or reserved
to the Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy. No delay or omission of the Holder to exercise any right or power
accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed
to be a waiver of any Event of Default or an acquiescence therein; and every power and remedy given by this Note or by law may
be exercised from time to time, and as often as shall be deemed expedient, by the Holder.


 


22.        Miscellaneous.
The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery,
acceptance, performance and enforcement of or any default under this Note, except as specifically provided herein, and assent to
extensions of the time of payment, or forbearance or other indulgence without notice. The Section headings herein are for convenience
only and shall not affect the construction hereof. Any provision of this Note which is illegal, invalid, prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or
unenforceability without invalidating or impairing the remaining provisions hereof or affecting the validity or enforceability
of such provision in any other jurisdiction. This Note shall bind the Company and its successors and permitted assigns. The rights
under and benefits of this Note shall inure to the Holder and its successors and assigns.


 




    	 	- 7 -	 



     


    

 


IN WITNESS WHEREOF,
the Company has caused this Note to be issued as of the date first written above.


 


	 	COMPANY:
	 	 
	 	AUDIOEYE, INC. 
	 	 
	 	By:	/s/ Todd A. Bankofier
	 	Name: Todd A Bankofier
	 	Title: Chief Executive Officer 


  




    AudioEye, Inc.
Convertible Promissory Note


     


    

 


IN WITNESS WHEREOF,
the Company has caused this Note to be issued as of the date first written above.


 


	 	HOLDER:
	 	 
	 	If Entity:
	 	 
	 	Entity Name: Equity Trust Custodian, FBO Alexandre Zyngier IRA
	 	 	 
	 	By:	/s/ Alexandre Zyngier
	 	 	 
	 	Name:	Alexandre Zyngier
	 	 	 
	 	Title:	 
	 	 	 
	 	If Individual:
	 	 	 
	 	Name:	 
	 	 	 
	 	Signature:	 


 







    AudioEye, Inc.
Convertible Promissory Note


     


    

 


Exhibit 10.33


 


ANNEX I


 


EXHIBIT A


FORM OF SPECIAL WARRANT


 


THIS WARRANT AND THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT COVERING SUCH
SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER
OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT
FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.


Warrant No. [  ]


AUDIOEYE, INC.


WARRANT


 


This Warrant (this
“Warrant”) is issued as of [__________], by AudioEye, Inc., a Delaware corporation (the “Company”),
to [__________] (the “Holder”) pursuant to Section 6 of that certain Secured Convertible Promissory Note
No. [____], dated as of October [__], 2015, as amended by that certain First Amendment to Secured Convertible Promissory Note,
dated as of April [●], 2016 (as so amended, the “Note”), issued by the Company to the Holder. Capitalized
terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Note.


 


1.          Number
of Warrant Shares; Exercise Price. Subject to the terms and conditions set forth herein, the Holder is entitled, upon surrender
of this Warrant at the principal office of the Company, to purchase from the Company [______] shares of [__________________]1
$__________ par value per share (such class or series of stock, the “Applicable Class”) of the Company
(as adjusted from time to time, “Warrant Shares”) at a price of $0.001 per Warrant Share (as adjusted
for splits and the like, the “Exercise Price”).


 


2.          Exercise
Period. This Warrant is exercisable as to the Warrant Shares covered hereby during the period commencing on the date hereof
and continuing until 5:00 p.m. Arizona Time on [__________] (the “Expiration Date”).


 


3.          Method
of Exercise. Subject to Sections 1, 2, 9 and 10 and the other terms and conditions of this Warrant,
the Holder may exercise, in whole or in part, the purchase rights evidenced by this Warrant. Such exercise shall be effected by
the surrender of this Warrant, together with a duly executed copy of the form of exercise notice attached hereto as Annex I (the
“Exercise Notice”), to the secretary of the Company at its principal office, accompanied by either (x)
the payment to the Company by cash, check or wire transfer of an amount equal to the product of (i) the Exercise Price multiplied
by (ii) the number of Warrant Shares being purchased (such product, the “Purchase Price”) or (y) the
payment of the Purchase Price through a “cashless exercise” in accordance with Section 4. The date on which
the Exercise Notice is delivered to the secretary of the Company is an “Exercise Date.” Each aggregate
exercise amount paid shall be rounded up to the nearest $0.01.


 





 






1 NTD: Number and type of securities
to be determined in accordance with the terms of Section 6 of the Note.


 




     


     


    

 


4.           Cashless
Exercise. In the event the Holder elects to satisfy its obligation to pay the Purchase Price through a “cashless”
exercise, the Company shall issue to the Holder the number of Warrant Shares determined as follows:


 


X= Y [(A-B)/A]


 


where:


 


“X” equals the number of Warrant
Shares to be issued to the Holder;


 


“Y” equals the total number
of Warrant Shares with respect to which this Warrant is being exercised;


 


“A” equals the arithmetic average
of the Closing Sale Prices of the shares of the Applicable Class for the five (5) consecutive Trading Days ending on the date immediately
preceding the Exercise Date (the “Fair Market Value”); and


 


“B” equals the Exercise Price
then in effect for the applicable Warrant Shares at the time of such exercise.


 


For purposes of this Warrant, “Closing
Sale Price” means, for any security as of any date, the last trade price for such security on the Principal Trading
Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal Trading Market begins to operate on
an extended hours basis and does not designate the last trade price, then the last trade price of such security prior to 4:00 P.M.,
New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of such
security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets,
or, if no last trade price is reported for such security by Bloomberg Financial Markets, the average of the bid prices, or the
ask prices, respectively, of any market makers for such security as reported in the “pink sheets” by OTC Markets. “Trading
Day” means a day on which exchanges in the United States are open for the buying and selling of securities. “Principal
Trading Market” means the OTC Bulletin Board, the OTC Markets, NASDAQ or a national securities exchange. If the Closing
Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such
security on such date shall be the fair market value as determined in good faith by the Board of Directors of the Company. The
Board of Directors’ determination shall be binding upon all parties absent demonstrable error. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable
calculation period.


 


5.           Rule
144. For purposes of Rule 144 promulgated under the Securities Act of 1933, as amended (the “Act”),
it is intended, understood and acknowledged that the Warrant Shares issued in a “cashless exercise” transaction shall
be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the Original Issue Date of this Warrant (provided that the Commission continues to take the position that such treatment is
proper at the time of such exercise).


 


6.           Certificates
for Warrant Shares. If the shares of the Company are certificated, upon the exercise of the purchase rights evidenced by this
Warrant, one or more certificates for the number of Warrant Shares so purchased shall be issued and delivered to the Holder as
soon as practicable thereafter, with a legend substantially similar to the legend set forth below (in addition to any legend required
under applicable state securities laws):


 


“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER UNITED STATES FEDERAL OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE,
SOLD, OR OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY THE SECURITIES BE TRANSFERRED ON THE BOOKS
OF THE COMPANY, WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR
COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM, SUCH COMPLIANCE, AT THE OPTION OF THE COMPANY, TO BE EVIDENCED BY AN OPINION
OF SHAREHOLDER’S COUNSEL, IN A FORM ACCEPTABLE TO THE COMPANY, THAT NO VIOLATION OF SUCH REGISTRATION PROVISIONS WOULD RESULT
FROM ANY PROPOSED TRANSFER OR ASSIGNMENT.”


 




    	 	2	 



     


    

 


Upon any partial exercise
of this Warrant, the Company shall forthwith issue and deliver to the Holder a new warrant or warrants of like tenor as this Warrant
for the remaining portion of the Warrant Shares for which this Warrant may still be exercised.


 


The legend set forth
in this Section 6 shall be removed and the Company shall issue a certificate (or issue in an uncertificated form) without
such legend or any other legend to the Holder if (a) such Warrants or Warrant Shares are sold pursuant to an effective registration
statement under the Act (provided that the Holder agrees to only sell such Warrant or Warrant Shares during such time that the
registration statement is effective and not withdrawn or suspended, and only as permitted by the registration statement), (b) such
Warrants or Warrant Shares are sold or transferred pursuant to, and in accordance with all requirements of, Rule 144 (including,
if applicable, the volume, manner-of-sale and notice filing provisions of Rule 144), or (c) such Warrants or Warrant Shares are
eligible for sale under Rule 144, without the requirement for the Company to be in compliance with the current public information
required under Rule 144 as to such securities and without volume or manner-of-sale restrictions. The Company shall bear all costs
incurred by it or a Holder relating to the removal of the legend in accordance with this Section 6, provided that the Company
shall not be liable for any transfer taxes relating to the issuance of a new certificate or statement in the name of any person
other than the relevant Holder and its affiliates.


 


7.            Issuance
of Warrant Shares. The Company covenants that the Warrant Shares, when issued pursuant to the exercise of this Warrant, will
be duly and validly issued, fully-paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance
thereof (except for any applicable transfer taxes, which shall be paid by the Holder).


 


8.            Reservation
of Warrant Shares. From the date hereof until the Expiration Date, the Company shall at all times reserve and keep available
out of its authorized but unissued shares of the Applicable Class equal to the Warrant Shares, solely for the purpose of issuance
upon the exercise of this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant, and the par
value per Warrant Share shall at all times be less than or equal to the applicable Exercise Price. The Company shall not increase
the par value of any Warrant Shares receivable upon the exercise of this Warrant above the Exercise Price then in effect, and shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock of the Company upon the exercise of this Warrant.


 




    	 	3	 



     


    

 


9.            Limitation
on Exercise. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right to exercise
this Warrant, to the extent that after giving effect to such exercise, the Holder (together with the Holder’s affiliates
and any other member of a “group”) would beneficially own in excess of 9.99% (the “Maximum Percentage”)
of the shares of common stock, par value $0.00001 per share (the “Common Stock”) of the Company outstanding
immediately after giving effect to such exercise (including such shares of Common Stock as may be obtained through the conversion
of the Warrant Shares, if applicable). For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder, its affiliates and any member of a group shall include the number of shares of Common Stock (including such
shares of Common Stock as may be obtained through the conversion of the Warrant Shares, if applicable) issuable upon exercise of
this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which
would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder and
its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company
beneficially owned by the Holder and its affiliates (including, without limitation, any convertible notes or convertible preferred
stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. For purposes
of this paragraph, beneficial ownership and whether the Holder is a member of a group shall be calculated and determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules
promulgated thereunder. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder
may rely on the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form 10-K, Form
10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a
more recent public announcement by the Company or (3) any other notice by the Company or the transfer agent for the Company setting
forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder,
the Company shall, within two (2) Business Days, confirm to the Holder the number of shares of Common Stock then outstanding. In
any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Warrant, by the Holder, its affiliates or any member of a group since the date as
of which such number of outstanding shares of Common Stock was reported. The Holder shall disclose to the Company the number of
shares of Common Stock that it, its affiliates or any member of a group owns and has the right to acquire through the exercise
of derivative securities and any limitations on exercise or conversion analogous to the limitation contained herein contemporaneously
or immediately prior to exercising this Warrant. For clarification, if the Holder (together with the Holder’s affiliates
and any other member of a group) beneficially owns more than 9.99% of Common Stock before the exercise of this Warrant, the Holder
will not be able to exercise this Warrant, subject to the limitations contained herein until the Holder’s beneficial ownership
(together with the Holder’s affiliates and any other member of a group) is less than such limitation. The provisions of this
paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section to
correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended beneficial ownership limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.


 


10.         Irrevocable
Proxy for Certain Voting Applicable Class. If the Applicable Class are themselves voting securities or convey voting rights
on an as-converted basis prior to such conversion, the Holder agrees to grant to the Company and the persons named as proxies by
the Company or its management upon exercise of this Warrant an irrevocable proxy (the “Irrevocable Proxy”)
related to such number of Warrant Shares as is necessary to reduce the aggregate voting power of all securities voting together
with the Common Stock owned by the Holder or its affiliates and group members, so that the Holder’s aggregate voting power
does not exceed 9.9% (such Warrant Shares, the “Voting Applicable Shares”), provided, however, that the
Irrevocable Proxy will not apply with respect to any vote relating to the amendment of the terms of the Applicable Class. Warrants
and other securities that are subject to a limitation on conversion analogous to the limitation set forth in Section 9 will
not be deemed to be outstanding for the purposes of this Section until exercised. The number of Voting Applicable Shares subject
to the Irrevocable Proxy will automatically increase upon the acquisition, including through exercise or conversion of derivative
securities, of securities conveying voting power and decrease upon the disposition of securities. The Holder will, following the
exercise of this Warrant for Voting Applicable Shares, notify the Company of acquisitions of securities carrying voting rights
by it, its affiliates or group members unless notice is otherwise provided and, to the extent the Holder wishes to have the Irrevocable
Proxy reduced, of any dispositions. The Company or its proxies will vote the Voting Applicable Shares subject to the Irrevocable
Proxy in proportion to the votes collected from owners of securities conveying voting power other than the Holder in proportion
to such votes and the relevant voting power of the securities held. The Irrevocable Proxy will be deemed to be coupled with an
interest.


 




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11.         Adjustment
of Exercise Price and Number of Warrant Shares. The number of and kind of Warrant Shares purchasable upon exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:


 


(a)          Subdivisions,
Combinations and Other Issuances. If the Company shall at any time or from time to time prior to the Expiration Date subdivide
the Applicable Class, by forward stock split or otherwise, or combine such shares, or issue additional shares as a dividend with
respect to any such shares, the number of Warrant Shares issuable on the exercise of this Warrant shall forthwith be proportionately
increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate
adjustments shall also be made to the Exercise Price payable per Warrant Share, but the Purchase Price payable for the total number
of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. The aggregate Exercise Price shall be reduced
by the aggregate amount of cash dividends paid to holders of equity securities in the Company prior to the date of the Holder’s
exercise of the Warrant. Any adjustment under this Section 11(a) shall become effective as of the record date of such subdivision,
combination, dividend, or other distribution, or in the event that no record date is fixed, upon the making of such subdivision,
combination or dividend.


 


(b)          Merger,
Consolidation, Reclassification, Reorganization, Etc. In case of any change in the Applicable Class prior to the Expiration
Date (other than as a result of a subdivision, combination, or stock dividend provided for in Section 11(a) above), whether
through merger, consolidation, reclassification, reorganization, partial or complete liquidation, purchase of substantially all
the assets of the Company, or other change in the capital structure of the Company (any of the foregoing, a “Sale Event”),
then, as a condition of such Sale Event, lawful and adequate provision will be made so that the Holder will have the right thereafter
to receive upon the exercise of the Warrant the kind and amount of shares of stock or other securities or property to which it
would have been entitled if, immediately prior to such Sale Event, he had held the number of Warrant Shares obtainable upon the
exercise of the Warrant. In any such case, appropriate adjustment will be made in the application of the provisions set forth herein
with respect to the rights and interest thereafter of the Holder, to the end that the provisions set forth herein will thereafter
be applicable, as nearly as reasonably may be, in relation to any shares of stock or other property thereafter deliverable upon
the exercise of the Warrant. If the Company, at any time while this Warrant is outstanding, distributes to holders of the Applicable
Class (i) evidences of its indebtedness, (ii) any security (other than a distribution of the Applicable Class covered by the preceding
paragraph), (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case, “Distributed
Property”), then in each such case the Holder shall be entitled upon exercise of this Warrant for the purchase of
any or all of the Warrant Shares, to receive the amount of Distributed Property which would have been payable to the Holder had
such Holder been the holder of such Warrant Shares on the record date for the determination of stockholders entitled to such Distributed
Property. The Company will at all times set aside in escrow and keep available for distribution to such holder upon exercise of
this Warrant a portion of the Distributed Property to satisfy the distribution to which such Holder is entitled pursuant to the
preceding sentence. The Company will not permit any change in its capital structure to occur unless the issuer of the shares of
stock or other securities to be received by the Holder, if not the Company, agrees to be bound by and comply with the provisions
of this Warrant.


 


(c)          Rights
Included in Certificate of Designation, Etc. The Warrant Shares issuable upon exercise of this Warrant shall be subject to
the rights, privileges, powers and other designations, if any, of the Applicable Class, as set forth in the certificate of incorporation
of the Company or in any certificate of designation thereto, including any applicable anti-dilution protections, as if such Warrant
Shares had been issued to the Holder on the date of issuance of this Warrant.


 




    	 	5	 



     


    

 


(d)          Notice
of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of the
Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event, the amount of the adjustment, the
method by which such adjustment was calculated, and the number of Warrant Shares or other securities or property thereafter purchasable
and/or the Exercise Price after giving effect to such adjustment upon exercise of this Warrant.


 


(e)          Notice
of Sale Event or Distributed Property. The Company shall promptly notify the Holder (i) of any Sale Event and the kind and
amount of shares of stock or other securities or property to which the Holder will be entitled in accordance with Section 11(b),
and (ii) in the event there is any distribution of Distributed Property, the portion of the Distributed Property to which the Holder
is entitled in accordance with Section 11(b).


 


12.          Further
Limitations on Disposition. The Holder agrees not to dispose of all or any portion of the Warrant Shares or the Warrant (a)
unless and until there is then in effect a registration statement under the Act covering such proposed disposition and such disposition
is made in accordance with such registration statement, or (b) unless the proposed disposition is pursuant to a transaction exempt
from the registration requirements of the Act; provided, however, that the Holder may dispose or otherwise transfer the Warrant
to an affiliate of the Holder, to a family member of the Holder, or to any trust, partnership, limited liability company or custodianship
established for estate-planning purposes for the primary benefit of the Holder or his or her family members, in each case without
the requirements set forth in this Section 12.


 


13.          No
Fractional Warrant Shares. Notwithstanding any provisions to the contrary in this Warrant, the Company shall not be required
to issue any Warrant Shares representing fractional Warrant Shares, but may instead make a payment in cash based on the Exercise
Price.


 


14.          No
Rights as Stockholders. Prior to the exercise of this Warrant, the Holder shall not be entitled to any rights of a stockholder
of the Company, including, without limitation, the right to vote, to receive dividends or other distributions or to exercise any
pre-emptive rights, and the Holder shall not be entitled to receive any notice of any proceedings of the Company, except as provided
herein or as otherwise agreed. Upon exercise of this Warrant, the Holder shall become a stockholder of the Company in accordance
with the Company’s certificate of incorporation, to the extent such Holder is not already a stockholder of the Company.


 


15.          Loss,
Etc. of Warrant. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this
Warrant, and of indemnity reasonably satisfactory to the Company if lost, stolen or destroyed, and upon surrender and cancellation
of this Warrant if mutilated, and upon reimbursement of the Company’s reasonable incidental expenses, the Company shall execute
and deliver to the Holder a new Warrant of like date, tenor and denomination.


 


16.          Miscellaneous.


 


(a)         Further
Acts. Each of the parties hereto agrees to perform any further acts and execute and deliver any documents that may be reasonably
necessary to carry out the provisions of this Warrant.


 


(b)         Notices.
Unless otherwise provided, all notices and other communications required or permitted under this Warrant shall be in writing and
shall be mailed by United States first-class mail, postage prepaid, sent by facsimile or delivered personally by hand or by a nationally
recognized courier addressed to the party to be notified at the address or facsimile number indicated for such person in that certain
Note and Warrant Purchase Agreement, dated as of October [●], 2015, by and among the Company, the Holder and the other parties
thereto, or at such other address or facsimile number as such party may designate by ten (10) days’ advance written notice
to the other parties hereto. All such notices and other written communications shall be effective on the date of mailing, confirmed
facsimile transfer or delivery.


 




    	 	6	 



     


    

 


(c)         Amendment
and Modification; Waiver. Except as otherwise provided herein, this Warrant may only be amended, modified or supplemented by
an agreement in writing signed by the Company and the Holders of outstanding Warrants exercisable for at least a majority of the
Warrant Shares. No waiver by the Company or the Holders of outstanding Warrants exercisable for at least a majority of the Warrant
Shares, waiving on behalf of all Holders, or the Holder, waiving on its own behalf, of any of the provisions hereof shall be effective
unless explicitly set forth in writing and signed by such parties so waiving. The Holder hereby acknowledges that any provision
hereof may be amended, modified, supplemented or waived on its behalf by the Holders of outstanding Warrants exercisable for at
least a majority of the Warrant Shares. No waiver by any party shall operate or be construed as a waiver in respect of any failure,
breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from
this Warrant shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy; power or
privilege.


 


(d)         Headings;
References. The headings of sections contained in this Warrant are included herein for reference purposes only, solely for
the convenience of the parties hereto, and shall not in any way be deemed to effect the meaning, interpretation or applicability
of this Warrant or any term, condition or provision hereof.


 


(e)         Successors
and Assigns. All of the covenants, stipulations, promises, and agreements in this Warrant shall bind and inure to the benefit
of the parties’ respective successors and assigns, whether so expressed or not.


 


(f)         Governing
Law. This Warrant any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware, without reference to the conflicts of law provisions.


 


(g)         Entire
Agreement. The terms and provisions of this Warrant supersedes all written and oral agreements and representations made by
or on behalf of the Company. This Warrant contains the entire agreement of the parties.


 


(h)         Severability.
If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from
this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.


 


(i)         Execution
and Counterparts. This Warrant may be executed in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, and such counterparts together shall constitute only one instrument. Any one of such counterparts
shall be sufficient for the purpose of proving the existence and terms of this Warrant and no party shall be required to produce
an original or all of such counterparts in making such proof.


 




    	 	7	 



     


    

 


(j)         Jurisdiction.
EACH OF THE PARTIES AGREE THAT NEITHER IT NOR ANY ASSIGNEE OR SUCCESSOR SHALL (A) SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING,
COUNTERCLAIM OR ANY OTHER ACTION BASED UPON, OR ARISING OUT OF, THIS WARRANT OR (B) SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY
OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY DISCUSSED
BY THE PARTIES HERETO, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NONE OF THE PARTIES HERETO HAS AGREED WITH OR REPRESENTED
TO ANY OTHER THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES. EACH OF THE PARTIES HEREBY SUBMITS
TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AS
WELL AS TO THE JURISDICTION OF ALL COURTS FROM WHICH AN APPEAL MAY BE TAKEN OR OTHER REVIEW SOUGHT FROM THE AFORESAID COURTS, FOR
THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF OR WITH RESPECT TO THIS WARRANT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY, AND EXPRESSLY WAIVES ANY AND ALL OBJECTIONS IT MAY HAVE AS TO VENUE IN ANY OF SUCH COURTS.


 


(k)         Information
Rights. While any securities of the Company remain outstanding and are “restricted securities” within the meaning
of Rule 144(a)(3) under the Act, the Company will, during any period in which the Company is not subject to and in compliance with
Section 13 or 15(d) of the of the Exchange Act and are not exempt from reporting under Rule 12g3-2(b) under the Exchange Act, furnish
to the Holder, upon request and at the Company’s expense, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Act.


 


(l)          No
Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through a reorganization, transfer of
assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all
times in good faith assist in carrying out of all the provisions of this Warrant and in taking all such action as may be necessary
or appropriate to protect the Holder’s rights under this Warrant against impairment.


 


[Remainder of page intentionally left
blank]


 




    	 	8	 



     


    

 


IN WITNESS WHEREOF,
this Warrant is executed as of the date first written above.


 


	 	COMPANY:
	 	 
	 	AUDIOEYE, INC.
	 	 
	 	By:	                                   
	 	Name:	               
	 	Title:	 


 




    Signature Page to Warrant


     


    

 


IN WITNESS WHEREOF,
this Warrant is executed as of the date first written above.


 





	 	HOLDER:
	 	 
	 	[                                                                                ]







 


	 	By:	      
	 	Name:	 
	 	Title:	 


 





 




    Signature Page to Warrant


     


    

 


ANNEX I


NOTICE OF EXERCISE


 


TO:


 


1.          The
undersigned Warrantholder (the “Holder”) elects to acquire the Warrant Shares of AudioEye, Inc. (the
“Company”), pursuant to the terms of that certain Warrant, dated [__________] (the “Warrant”),
issued by the Company to the Holder. Capitalized terms used herein and not otherwise defined herein have the respective meanings
set forth in the Warrant.


 


2.          The
Holder elects to purchase ____ Warrant Shares as provided in Section 3 and (check one):


 


		 ̈	tenders herewith a check in the amount of $_____ as payment of the Purchase Price



 


		 ̈	intends that payment of the Purchase Price shall be made as a “cashless exercise” under
Section 4 of the Warrant



 


3.          The
Holder surrenders the Warrant with this Notice of Exercise.


 


4.          The
Holder represents that it is acquiring the aforesaid Warrant Shares for investment and not with a view to, or for resale in connection
with, distribution and that the Holder has no present intention of distributing or reselling the Warrant Shares unless in compliance
with all applicable federal and state securities laws.


 


5.          Pursuant
to this Notice of Exercise, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the
Warrant.


 


	By:	 	 
	Name:	 	 
	Title:	 	 
	Date: