Document:

Exhibit 10.30

 

AUDIOEYE,
INC.

NOTICE
OF GRANT OF RESTRICTED STOCK UNITS

(For U.S. Participants)

 

AudioEye, Inc. (the “Company”) has
granted to the Participant an award (the “Award”) of certain units pursuant to the AudioEye, Inc. _____
Incentive Compensation Plan (the “Plan”), each of which represents the right to receive on the applicable
Settlement Date one (1) Share, as follows:

 

	Participant:	 	 
	 	 	 
	Date of Grant:	 	 
	 	 	 
	Total Number of Units:	 	 ___________  (each a “Unit”), subject to adjustment as provided by the Restricted Stock Units Agreement.
	 	 	 
	Vesting Commencement Date:	 	 
	 	 	 
	Vested Units:	 	Except as provided in the Restricted Stock Units Agreement, the vesting of each Unit shall occur as follows: 
	 	 	 
	Settlement Date:	 	[Except as provided by the Restricted Stock Units Agreement, the Settlement Date with respect to each Unit shall be the earlier of:  (i) _____________ and (ii) immediately prior to the closing of a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5).]

 

By their signatures below or by electronic
acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Award is governed
by this Grant Notice and by the provisions of the Restricted Stock Units Agreement and the Plan, both of which are made a part
of this document. The Participant acknowledges that copies of the Plan, the Restricted Stock Units Agreement and the prospectus
for the Plan are available on the Company’s internal web site and may be viewed and printed by the Participant for attachment
to the Participant’s copy of this Grant Notice. The Participant represents that the Participant has read and is familiar
with the provisions of the Restricted Stock Units Agreement and the Plan, and hereby accepts the Award subject to all of their
terms and conditions.

 

	AUDIOEYE, INC.	PARTICIPANT

 

	By:	 	 	 
	 	 	 	Signature
	 	 	 	 
	 	 	 	Date

	Address:	5210 E. Williams Circle	 
	 	Suite 750	 
	 	Tucson, AZ 85711	Address
	 	 	 

 

	ATTACHMENTS:	Plan, Restricted Stock Units Agreement and Plan Prospectus

 

     

     

    

 

AUDIOEYE,
INC.

RESTRICTED
STOCK UNITS AGREEMENT

(For U.S. Participants)

 

AudioEye, Inc. has
granted to the Participant named in the Notice of Grant of Restricted Stock Units (the “Grant Notice”)
to which this Restricted Stock Units Agreement (the “Agreement”) is attached an Award consisting of Restricted
Stock Units (each a “Unit”) subject to the terms and conditions set forth in the Grant Notice and this
Agreement. The Award has been granted pursuant to and shall in all respects be subject to the terms conditions of the AudioEye,
Inc. _____ Incentive Compensation Plan (the “Plan”), as amended to the Date of Grant, the provisions
of which are incorporated herein by reference. By signing the Grant Notice, the Participant: (a) acknowledges receipt of and
represents that the Participant has read and is familiar with the Grant Notice, this Agreement, the Plan and a prospectus for the
Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares issuable pursuant to
the Award (the “Plan Prospectus”), (b) accepts the Award subject to all of the terms and conditions
of the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions arising under the Grant Notice, this Agreement or the Plan.

 

1.           Definitions
and Construction.

 

1.1         Definitions.
Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.

 

(a)          “Officer”
means any person designated by the Board as an officer of the Company.

 

(b)          “Ownership
Change Event” means a transaction described in Section 10(c)(ii) of the Plan.

 

(c)          “Participating
Company” means the Company or any Related Entity.

 

(d)          “Participating
Company Group” means, at any point in time, all entities collectively which are then Participating Companies.

 

(e)          “Trading
Compliance Policy” means the written policy of the Company pertaining to the purchase, sale, transfer or other disposition
of the Company’s equity securities by Directors, Officers, Employees or other service providers who may possess material,
nonpublic information regarding the Company or its securities.

 

1.2         Construction.
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision
of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

    	 	2	 

     

    

 

2.           Administration.

 

All questions of interpretation
concerning the Grant Notice, this Agreement, the Plan or any other form of agreement or other document employed by the Company
in the administration of the Plan or the Award shall be determined by the Committee. All such determinations by the Committee shall
be final, binding and conclusive upon all persons having an interest in the Award, unless fraudulent or made in bad faith. Any
and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the
Plan or the Award or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence)
shall be final, binding and conclusive upon all persons having an interest in the Award. Any Officer shall have the authority to
act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which
is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

 

3.           The
Award.

 

3.1         Grant
of Units. On the Date of Grant, the Participant shall acquire, subject to the provisions of this Agreement, the Total Number
of Units set forth in the Grant Notice, subject to adjustment as provided in Sections 3.2 and 9. Each Unit represents a right
to receive on a date determined in accordance with the Grant Notice and this Agreement one (1) Share.

 

3.2         No
Monetary Payment Required. The Participant is not required to make any monetary payment (other than applicable tax withholding,
if any) as a condition to receiving the Units or Shares issued upon settlement of the Units, the consideration for which shall
be past services actually rendered or future services to be rendered to a Participating Company or for its benefit. Notwithstanding
the foregoing, if required by applicable law, the Participant shall furnish consideration in the form of cash or past services
rendered to a Participating Company or for its benefit having a value not less than the par value of the Shares issued upon settlement
of the Units.

 

4.           Vesting
of Units.

 

4.1         Normal
Vesting. Units acquired pursuant to this Agreement shall become Vested Units as provided in the Grant Notice. For purposes
of determining the number of Vested Units following an Ownership Change Event, credited Continuous Service shall include all service
with any corporation which is a Participating Company at the time the service is rendered, whether or not such corporation is a
Participating Company both before and after the Ownership Change Event.

 

5.           Company
Reacquisition Right.

 

5.1         Grant
of Company Reacquisition Right. In the event that the Participant’s Continuous Service terminates for any reason or no
reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Units which are
not, as of the time of such termination, Vested Units (“Unvested Units”), and the Participant
shall not be entitled to any payment therefor (the “Company Reacquisition Right”).

 

    	 	3	 

     

    

 

5.2         Ownership
Change Event, Non-Cash Dividends, Distributions and Adjustments. Upon the occurrence of an Ownership Change Event, a
dividend or distribution to the stockholders of the Company paid in Shares or other property, or any other adjustment upon a change
in the capital structure of the Company as described in Section 9, any and all new, substituted or additional securities or
other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) to which
the Participant is entitled by reason of the Participant’s ownership of Unvested Units shall be immediately subject to the
Company Reacquisition Right and included in the terms “Units” and “Unvested Units” for all purposes of
the Company Reacquisition Right with the same force and effect as the Unvested Units immediately prior to the Ownership Change
Event, dividend, distribution or adjustment, as the case may be. For purposes of determining the number of Vested Units following
an Ownership Change Event, dividend, distribution or adjustment, credited Continuous Service shall include all service with any
corporation which is a Participating Company at the time the service is rendered, whether or not such corporation is a Participating
Company both before and after any such event.

 

6.           Settlement
of the Award.

 

6.1         Issuance
of Shares. Subject to the provisions of Section 6.3, the Company shall issue to the Participant on the Settlement
Date with respect to each Vested Unit to be settled on such date one (1) Share. The Settlement Date with respect to a Unit shall
be the date on which such Unit becomes a Vested Unit as provided by the Grant Notice (an “Original Settlement Date”);
provided, however, that if the tax withholding obligations of a Participating Company, if any, will not be satisfied by the share
withholding method described in Section 7.3 and the Original Settlement Date would occur on a date on which a sale by the
Participant of the shares to be issued in settlement of the Vested Units would violate the Trading Compliance Policy of the Company,
then the Settlement Date for such Vested Units shall be deferred until the next day on which the sale of such shares would not
violate the Trading Compliance Policy, but in any event on or before the 15th day of the third calendar month following calendar
year of the Original Settlement Date. Shares issued in settlement of Units shall not be subject to any restriction on transfer
other than any such restriction as may be required pursuant to Section 6.3, Section 7 or the Company’s Trading
Compliance Policy.

 

6.2         Beneficial
Ownership of Shares; Certificate Registration. The Participant hereby authorizes the Company, in its sole discretion,
to deposit any or all Shares acquired by the Participant pursuant to the settlement of the Award with the Company’s transfer
agent, including any successor transfer agent, to be held in book entry form, or to deposit such shares for the benefit of the
Participant with any broker with which the Participant has an account relationship of which the Company has notice. Except as provided
by the foregoing, a certificate for the Shares acquired by the Participant shall be registered in the name of the Participant,
or, if applicable, in the names of the heirs of the Participant.

 

    	 	4	 

     

    

 

6.3         Restrictions
on Grant of the Award and Issuance of Shares. The grant of the Award and issuance of Shares upon settlement of the Award
shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.
No Shares may be issued hereunder if their issuance would constitute a violation of any applicable federal, state or foreign securities
laws or other law or regulations or the requirements of any stock exchange or market system upon which the Shares may then be listed.
The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s
legal counsel to be necessary to the lawful issuance of any Shares subject to the Award shall relieve the Company of any liability
in respect of the failure to issue such Shares as to which such requisite authority shall not have been obtained. As a condition
to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect
thereto as may be requested by the Company.

 

6.4         Fractional
Shares. The Company shall not be required to issue fractional Shares upon the settlement of the Award.

 

7.           Tax
Withholding.

 

7.1         In
General. At the time the Grant Notice is executed, or at any time thereafter as requested by a Participating Company, the Participant
hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate
provision for, any sums required to satisfy the federal, state, local and foreign tax (including any social insurance) withholding
obligations of the Participating Company, if any, which arise in connection with the Award, the vesting of Units or the issuance
of Shares in settlement thereof. The Company shall have no obligation to deliver Shares until the tax withholding obligations of
the Participating Company have been satisfied by the Participant.

 

7.2         Assignment
of Sale Proceeds. Subject to compliance with applicable law and the Company’s Trading Compliance Policy, if permitted
by the Company, the Participant may satisfy the Participating Company’s tax withholding obligations in accordance with procedures
established by the Company providing for delivery by the Participant to the Company or a broker approved by the Company of properly
executed instructions, in a form approved by the Company, providing for the assignment to the Company of the proceeds of a sale
with respect to some or all of the shares being acquired upon settlement of Units.

 

7.3         Withholding
in Shares. The Company shall have the right, but not the obligation, to require the Participant to satisfy all or any portion
of a Participating Company’s tax withholding obligations by deducting from the Shares otherwise deliverable to the Participant
in settlement of the Award a number of whole shares having a fair market value, as determined by the Company as of the date on
which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the
applicable minimum statutory withholding rates if required to avoid liability classification of the Award under generally accepted
accounting principles in the United States.

 

    	 	5	 

     

    

 

8.           Effect
of Change in Control or Other Ownership Change Event.

 

In the event of a Change
in Control or other Ownership Change Event, the Award shall be subject to the definitive agreement entered into by the Company
in connection with the Ownership Change Event. The surviving, continuing, successor, or purchasing entity or parent thereof, as
the case may be (the “Acquiror”), may, without the consent of the Participant, assume or continue in
full force and effect the Company’s rights and obligations under all or any portion of the outstanding Units or substitute
for all or any portion of the outstanding Units substantially equivalent rights with respect to the Acquiror’s stock. For
purposes of this Section, a Unit shall be deemed assumed if, following the Ownership Change Event, the Unit confers the right to
receive, subject to the terms and conditions of the Plan and this Agreement, the consideration (whether stock, cash, other securities
or property or a combination thereof) to which a holder of a Share on the effective date of the Ownership Change Event was entitled
(and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration is not solely common stock of the Acquiror, the Committee may, with the
consent of the Acquiror, provide for the consideration to be received upon settlement of the Unit to consist solely of common stock
of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Share pursuant to the Ownership
Change Event. The Award shall terminate and cease to be outstanding effective as of the time of consummation of the Ownership Change
Event to the extent that Units subject to the Award are neither assumed or continued by the Acquiror in connection with the Ownership
Change Event nor settled as of the time of the Ownership Change Event.

 

9.           Adjustments
for Changes in Capital Structure.

 

Subject to any required
action by the stockholders of the Company and the requirements of Section 409A of the Code to the extent applicable, in the event
of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization,
reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment
of a dividend or distribution to the stockholders of the Company in a form other than Shares (other than regular, periodic cash
dividends paid on Shares pursuant to the Company’s dividend policy) that has a material effect on the Fair Market Value of
Shares, appropriate and proportionate adjustments shall be made in the number of Units subject to the Award and/or the number and
kind of shares or other property to be issued in settlement of the Award, in order to prevent dilution or enlargement of the Participant’s
rights under the Award. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated
as “effected without receipt of consideration by the Company.” Any and all new, substituted or additional securities
or other property (other than regular, periodic cash dividends paid on Shares pursuant to the Company’s dividend policy)
to which the Participant is entitled by reason of ownership of Units acquired pursuant to this Award will be immediately subject
to the provisions of this Award on the same basis as all Units originally acquired hereunder. Any fractional Unit or share resulting
from an adjustment pursuant to this Section shall be rounded down to the nearest whole number. Such adjustments shall be determined
by the Committee, and its determination shall be final, binding and conclusive.

 

    	 	6	 

     

    

 

10.         Rights
as a Stockholder, Director, Employee or Consultant.

 

The Participant shall
have no rights as a stockholder with respect to any Shares which may be issued in settlement of this Award until the date of the
issuance of such Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to
the date the Shares are issued, except as provided in Section 9. For the avoidance of doubt, this Award does not provide for
payment to the Participant of any Dividend Equivalents. If the Participant is an Employee, the Participant understands and acknowledges
that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Participant,
the Participant’s employment is “at will” and is for no specified term. Nothing in this Agreement shall confer
upon the Participant any right to continue in the service of a Participating Company or interfere in any way with any right of
the Participating Company Group to terminate the Participant’s service at any time.

 

11.         Legends.

 

The Company may at any
time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing
Shares issued pursuant to this Agreement. The Participant shall, at the request of the Company, promptly present to the Company
any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry
out the provisions of this Section.

 

12.         Compliance
with Section 409A.

 

It is intended that any
election, payment or benefit which is made or provided pursuant to or in connection with this Award that may result in the payment
of deferred compensation subject to Section 409A of the Code (“Section 409A”) shall comply
in all respects with the applicable requirements of Section 409A (including applicable regulations or other administrative guidance
thereunder, as determined by the Committee in good faith) to avoid the unfavorable tax consequences provided therein for non-compliance.
In connection with effecting such compliance with Section 409A, the following shall apply:

 

12.1       Separation
from Service; Required Delay in Payment to Specified Employee. Notwithstanding anything set forth herein to the contrary, no
amount payable pursuant to this Agreement on account of the Participant’s termination of Continuous Service which constitutes
a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the
Code (the “Section 409A Regulations”) shall be paid unless and until the Participant has incurred a “separation
from service” within the meaning of the Section 409A Regulations. Furthermore, to the extent that the Participant is a “specified
employee” within the meaning of the Section 409A Regulations as of the date of the Participant’s separation from service,
no amount that constitutes a deferral of compensation which is payable on account of the Participant’s separation from service
shall be paid to the Participant before the date (the “Delayed Payment Date”) which is first day of the
seventh month after the date of the Participant’s separation from service or, if earlier, the date of the Participant’s
death following such separation from service. All such amounts that would, but for this Section, become payable prior to the Delayed
Payment Date will be accumulated and paid on the Delayed Payment Date.

 

    	 	7	 

     

    

 

12.2       Other
Changes in Time of Payment. Neither the Participant nor the Company shall take any action to accelerate or delay the payment
of any benefits under this Agreement in any manner which would not be in compliance with the Section 409A Regulations.

 

12.3       Amendments
to Comply with Section 409A; Indemnification. Notwithstanding any other provision of this Agreement to the contrary, the Company
is authorized to amend this Agreement, to void or amend any election made by the Participant under this Agreement and/or to delay
the payment of any monies and/or provision of any benefits in such manner as may be determined by the Company, in its discretion,
to be necessary or appropriate to comply with the Section 409A Regulations without prior notice to or consent of the Participant.
The Participant hereby releases and holds harmless the Company, its directors, officers and stockholders from any and all claims
that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the Participant
in connection with the Award, including as a result of the application of Section 409A.

 

12.4       Advice
of Independent Tax Advisor. The Company has not obtained a tax ruling or other confirmation from the Internal Revenue Service
with regard to the application of Section 409A to the Award, and the Company does not represent or warrant that this Agreement
will avoid adverse tax consequences to the Participant, including as a result of the application of Section 409A to the Award.
The Participant hereby acknowledges that he or she has been advised to seek the advice of his or her own independent tax advisor
prior to entering into this Agreement and is not relying upon any representations of the Company or any of its agents as to the
effect of or the advisability of entering into this Agreement.

 

13.         Miscellaneous
Provisions.

 

13.1       Termination
or Amendment. The Committee may terminate or amend the Plan or this Agreement at any time; provided, however, that except as
provided in Section 8 in connection with a Ownership Change Event, no such termination or amendment may have a materially
adverse effect on the Participant’s rights under this Agreement without the consent of the Participant unless such termination
or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A.
No amendment or addition to this Agreement shall be effective unless in writing.

 

13.2       Nontransferability
of the Award. Prior to the issuance of Shares on the applicable Settlement Date, neither this Award nor any Units subject to
this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance,
or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of
descent and distribution. All rights with respect to the Award shall be exercisable during the Participant’s lifetime only
by the Participant or the Participant’s guardian or legal representative.

 

13.3       Further
Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

    	 	8	 

     

    

 

13.4       Binding
Effect. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions
on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors
and assigns.

 

13.5       Delivery
of Documents and Notices. Any document relating to participation in the Plan or any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness
only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for
the Participant by a Participating Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or
certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other
party at the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing
from time to time to the other party.

 

(a)          Description
of Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice,
this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may
be delivered to the Participant electronically. In addition, if permitted by the Company, the Participant may deliver electronically
the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time
to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet
or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other
means of electronic delivery specified by the Company.

 

(b)          Consent
to Electronic Delivery. The Participant acknowledges that the Participant has read Section 13.5(a) of this Agreement
and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of the Grant Notice,
as described in Section 13.5(a). The Participant acknowledges that he or she may receive from the Company a paper copy of
any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing. The
Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company or any designated
third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails. The
Participant may revoke his or her consent to the electronic delivery of documents described in Section 13.5(a) or may change
the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address)
at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic
mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described
in Section 13.5(a).

 

13.6       Integrated
Agreement. The Grant Notice, this Agreement and the Plan shall constitute the entire understanding and agreement of the Participant
and the Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements,
understandings, restrictions, representations, or warranties among the Participant and the Participating Company Group with respect
to such subject matter. To the extent contemplated herein or therein, the provisions of the Grant Notice, this Agreement and the
Plan shall survive any settlement of the Award and shall remain in full force and effect.

 

    	 	9	 

     

    

 

13.7       Applicable
Law. This Agreement shall be governed by the laws of the State of Delaware without giving effect to principles of conflict
of laws.

 

13.8       Counterparts.
The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

    	 	10Exhibit 10.31

 

Performance Option Agreement

 

This Performance Option Agreement (this
“Agreement”) is made and entered into as of ________________ (the “Grant Date”) by and between
AudioEye, Inc., a Delaware corporation (the “Company”) and _____________ (the “Grantee”).

 

WHEREAS, the Board has approved the
AudioEye, Inc. _____ Incentive Compensation Plan (the “Plan”), subject to shareholder approval, pursuant to
which Performance Option Units may be granted; and

 

WHEREAS, the Board has determined
that it is in the best interests of the Company and its stockholders to grant the award of Performance Option provided for herein.

 

NOW, THEREFORE, the parties hereto,
intending to be legally bound, agree as follows:

 

1.           Definitions.
Capitalized terms that are used but not defined herein have the meanings ascribed to them in the Plan, a copy of which has been
provided to the Grantee.

 

2.           Grant
of Performance Option. Pursuant to Section 6(h) of the Plan, the Company hereby grants to the Grantee an Award of up to
an aggregate of __________ Performance Options (the “Target Award”), subject to increase of up to a total of
________________ Performance Options (the “Max Options”) as described on Exhibit A-2 attached hereto.
Each Performance Options (“PO”) represents the right to receive one Option to purchase one share of Company’s
Common Stock, subject to the terms and conditions set forth in this Agreement and the Plan. The number of POs that the Grantee
actually earns for a Performance Period (up to a maximum of _________ Options) will be determined by the level of achievement of
the Performance Goals in accordance with Exhibit A-1 attached hereto.

 

3.           Performance
Period. For purposes of this Agreement, "Performance Period" shall be the calendar year commencing on [January 1,
_____] and ending on the following [December 31], of each calendar year. Subject to vesting as provided in Section 5, there shall
be [two] Performance Periods commencing on [January 1, ____ through December 31, ____, and from January 1, _____ through December
31, ____], with the opportunity to earn a full award of Max Options based on achievement of Performance Goals on a cumulative basis
for the [two] Performance Periods as described on Exhibit A-1.

 

4.           Performance
Goals.

 

4.1           The
number of POs earned by the Grantee for a Performance Period will be determined at the end of the Performance Period based on the
level of achievement of the Performance Goals in accordance with Exhibit A hereto. All determinations of whether Performance
Goals have been achieved, the number of POs earned by the Grantee, and all other matters related to this Section 4 shall be made
by the Committee in its sole discretion.

 

     

     

    

 

4.2           Promptly
following completion of a Performance Period (and no later than forty-five (45) days following the end of such Performance Period),
the Committee will review and certify in writing (a) whether, and to what extent, the Performance Goals for the Performance Period
have been achieved, and (b) the number of POs that the Grantee shall earn, if any, subject to compliance with the requirements
of Section 5. Such certification shall be final, conclusive and binding on the Grantee, and on all other persons, to the maximum
extent permitted by law.

 

5.           Vesting
of POs. The POs are subject to forfeiture until they vest. Except as otherwise provided herein, the POs will vest and become
nonforfeitable on the last day of a Performance Period with respect to the POs earned for such Performance Period in accordance
with Section 4.2, subject to (a) the achievement of the minimum threshold Performance Goals for payout set forth in Exhibit A-1
hereto, and (b) the Grantee's Continuous Service from the Grant Date through the last day of the Performance Period. The number
of POs that vest and become payable under this Agreement shall be determined by the Committee based on the level of achievement
of the Performance Goals set forth in Exhibit A-1 hereto and shall be rounded to the nearest whole PO.

 

6.           Option
Term and Exercise Price. The Options shall have a term of [five] years from the date of grant and the exercise price determined
by using a [10-day average closing price] of the Company’s Common Stock over the [ten (10)] trading days beginning on ______,
______, which the Committee has determined to be and the Board agrees is an amount that is not less than the fair market value
of a share of the common stock of the Company on such date.

 

7.           Termination
of Continuous Service.

 

7.1           Except
as otherwise expressly provided in this Agreement, if the Grantee's Continuous Service terminates for any reason at any time before
all of his POs have vested, the Grantee's unvested POs shall be automatically forfeited upon such termination of Continuous Service
and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

 

7.2           Notwithstanding
Section 7.1, if the Grantee's Continuous Service terminates during the Performance Period as a result of the Grantee's death, Disability
or termination by the Company without Cause, or termination by the Grantee for Good Reason, all of the outstanding POs will vest
as to such Performance Period in accordance with Section 4 subject to achievement of the Performance Goal(s) for such Performance
Period as if the Grantee's Continuous Service had not terminated.

 

8.           Payment
of POs. Payment in respect of the POs earned for the Performance Period shall be made in Options to purchase shares of the
Company’s Common Stock and shall be issued to the Grantee as soon as practicable following the vesting date. The Company
shall cause the issuance and delivery to the Grantee of the number of Options to purchase shares of the Company’s Common
Stock equal to the number of vested POs.

 

    	 	2	 

     

    

 

9.           Transferability.
Subject to any exceptions set forth in this Agreement or the Plan, the POs or the rights relating thereto may not be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee, except by will or the laws of descent
and distribution, and upon any such transfer by will or the laws of descent and distribution, the transferee shall hold such POs
subject to all of the terms and conditions that were applicable to the Grantee immediately prior to such transfer.

 

10.         Rights
as Shareholder.

 

10.1         The
Grantee shall not have any rights of a shareholder with respect to the shares of Common Stock underlying the POs, including, but
not limited to, voting rights and the right to receive or accrue dividends or dividend equivalents.

 

10.2         Upon
and following the vesting and exercise of the POs and the issuance of Company shares, the Grantee shall be the record owner of
the shares of Common Stock underlying the POs unless and until such shares are sold or otherwise disposed of, and as record owner,
shall be entitled to all rights of a stockholder of the Company (including voting and dividend rights).

 

11.         No
Right to Continued Service. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any
position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed
to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

 

12.         Adjustments.
If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the POs shall be adjusted
or terminated in any manner as contemplated by Section 10(c) of the Plan.

 

13.         Tax
Liability and Withholding.

 

13.1         The
Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the
Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the POs and to take all such other action
as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit
the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination
of such means:

 

(a)          tendering
a cash payment;

 

(b)          authorizing
the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable or deliverable to the Grantee
as a result of the vesting of the POs; provided, however, that no shares of Common Stock shall be withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or

 

    	 	3	 

     

    

 

(c)          delivering
to the Company previously owned and unencumbered shares of Common Stock.

 

In addition, in the Company’s sole
discretion and consistent with the Company’s rules (including, but not limited to, compliance with the Company’s Policy
on Insider Trading) and regulations, the Company may permit the Grantee to pay the withholding or other taxes due as a result of
the vesting of the Grantee’s POs by delivery (on a form acceptable to the Committee or the Company) of an irrevocable direction
to a licensed securities broker to sell shares and to deliver all or part of the sales proceeds to the Company in payment of the
withholding or other taxes.

 

13.2         Notwithstanding
any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding
(“Tax-Related Items”), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility
and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with
the grant, vesting or settlement of the POs or the subsequent sale of any shares, and (b) does not commit to structure the POs
to reduce or eliminate the Grantee's liability for Tax-Related Items.

 

14.         Compliance
with Law. The issuance and transfer of shares of Common Stock in connection with the POs shall be subject to compliance by
the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company's shares of Common Stock may be listed. No shares of Common Stock shall be issued or
transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully
complied with to the satisfaction of the Company and its counsel.

 

15.         Notices.
Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Secretary of the
Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall
be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate
another address in writing (or by such other method approved by the Company) from time to time.

 

16.         Governing
Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Delaware without regard to
conflict of law principles.

 

17.         Interpretation.
Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for
review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.

 

18.         POs
Subject to Plan. This Agreement is subject to the Plan as approved by the Company's stockholders. The terms and provisions
of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between
any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will
govern and prevail.

 

    	 	4	 

     

    

 

19.         Successors
and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to
the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
will be binding upon the Grantee and the Grantee's beneficiaries, executors, administrators and the person(s) to whom the POs may
be transferred by will or the laws of descent or distribution.

 

20.         Severability.
The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability
of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and
enforceable to the extent permitted by law.

 

21.         Discretionary
Nature of Plan. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion.
The grant of the POs in this Agreement does not create any contractual right or other right to receive any POs or other Awards
in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination
of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

 

22.         Amendment.
The Committee has the right to amend, alter, suspend, discontinue or cancel the POs, prospectively or retroactively; provided,
that, no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

 

23.         Section
162(m). All payments under this Agreement are intended to constitute “qualified performance-based compensation”
within the meaning of Section 162(m) of the Code. This Award shall be construed and administered in a manner consistent with such
intent.

 

24.         Section
409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed
and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A
of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under
this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes,
penalties, interest or other expenses that may be incurred by the Grantee on account of non-compliance with Section 409A of the
Code. To the extent required in order to avoid the imposition of any interest, penalties and additional tax under Section 409A
of the Code, any shares deliverable as a result of the Grantee’s termination of Continuous Service will be delayed for six
months and one day following such termination of Continuous Service, or if earlier, the date of the Grantee’s death, if the
Grantee is deemed to be a “specified employee” as defined in Section 409A of the Code and as determined by the
Company.

 

25.         No
Impact on Other Benefits. The value of the Grantee's POs is not part of his or her normal or expected compensation for purposes
of calculating any severance, retirement, welfare, insurance or similar employee benefit.

 

    	 	5	 

     

    

 

26.         Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute
one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic
mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial
appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

 

27.         Acceptance.
The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms
and provisions thereof, and accepts the POs subject to all of the terms and conditions of the Plan and this Agreement. The Grantee
acknowledges that there may be adverse tax consequences upon the vesting or settlement of the POs or disposition of the underlying
shares and that the Grantee has been advised to consult a tax advisor prior to such vesting, settlement or disposition.

 

28.         Forfeiture
and Company Right to Recover Fair Market Value of Shares Received Pursuant to POs. If, at any time, the Board or the Committee,
as the case may be, in its sole discretion determines that any action or omission by the Grantee constituted (a) wrongdoing
that contributed to any material misstatement in or omission from any report or statement filed by the Company with the U.S. Securities
and Exchange Commission or (b) intentional or gross misconduct, (c) a breach of a fiduciary duty to the Company or a
Subsidiary, (d) fraud or (e) non-compliance with the Company’s Code of Conduct and Business Ethics, policies or
procedures to the material detriment of the Company, then in each such case, commencing with the first year of the Company during
which such action or omission occurred, the Grantee shall forfeit (without any payment therefor) up to 100% of any POs that have
not been vested or settled and shall repay to the Company, upon notice to the Grantee by the Company, up to 100% of the Fair Market
Value of the shares at the time such shares were delivered to the Grantee pursuant to the POs during and after such year. The Board
or the Committee, as the case may be, shall determine in its sole discretion the date of occurrence of such action or omission,
the percentage of the POs that shall be forfeited and the percentage of the Fair Market Value of the shares delivered pursuant
to the POs that must be repaid to the Company.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	6	 

     

    

 

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

 

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

 

    	 	7	 

     

    

 

EXHIBIT A

 

Performance Period

 

Each Performance Period shall commence on
[January 1], and end on [December 31], of the same calendar year.

 

Performance Measures

 

The number of POs earned shall be determined
for a Performance Period by reference to the Company's actual achievement against the following Performance:

 

I. Operational and Financial

 

(a)         Targeted
Cash Contract Bookings (as to [33.33%])

 

(b)         Targeted
Net Operating Cash Flow (as to [33.33]%)

 

(c)         Board
Defined Operations Goals (as to [33.33]%) for a Performance Period.

 

BUT ONLY IF:

 

II. Share Price

 

Share price of Common Stock for the [20
trading days] before and including the end of the Performance Period, is not less than ______ cents.

 

As used herein, Targeted Cash Contract Bookings
and Targeted Net Operating Cash Flows are as set forth on Exhibit A-1. With regard to Board Defined Operations Goals, the
Company’s board of directors or Committee shall in its sole discretion establish goals as to specific matters and amounts
with respect to a Performance Period. For the [two] years of the Performance Period, the criteria are attached as Exhibit A-2

 

Determining POs Earned

 

The Grantee earns PO’s at the rate
of [(a) 50% of Target Options if 85% of the Performance Goals have been achieved for a Performance Period (“Threshold
Options”), (b) 100% of the Target Options if the Performance Goals have been achieved for a Performance Period (“Target
Options”), and (c) 150% of the Target Options if 125% of the Performance Goals have been achieved for a Performance
Period (“Max Options”)].

 

    	 	8	 

     

    

 

Exhibit 10.31

 

EXHIBIT A-1

 

MANAGEMENT FORECAST AND TARGET OPTION ACHIEVABLE

 

Management’s forecast of Cash Contract Bookings and Operating
Cash Flow over the next [two] years along with Threshold and Max performance goals:

 

     

     

    

 

Exhibit 10.31

 

EXHIBIT A-2

 

DISCRETIONARY BONUS
CRITERIA FOR _________________

 

	Responsibilities
    ___________	 	 
	[Major Categories]	[Representative Tasks]	Weight	 
	 	 	 	 
	 	 
	 	 
	 	 	 	 
	 	 
	 	 
	 	 	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 	 
	 	 	 
	 	 	100%

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