Document:

Exhibit 4.1

 

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.

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

Note No. [__]

	$[______]	Date of Issuance: October [__], 2015

 

FOR VALUE
RECEIVED, AudioEye, Inc., a Delaware corporation (the “Company”), promises to pay to [______] (the “Holder”),
or its registered assigns, the principal sum of [______], 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 Secured
Convertible Promissory Note (this “Note”) is issued pursuant to and secured by (i) 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”)
and (ii) the Security Agreement, dated as of October 9, 2015, executed by the Company, as borrower, and the Holder (as the same
may from time to time be amended, modified, extended, renewed or restated, the “Security 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. In the event of any conflict between the provisions of this Note and the provisions of the
Security Agreement, the provisions of the Security Agreement shall govern. Capitalized terms used and not otherwise defined herein
shall have the meanings assigned to such terms in the Purchase Agreement.

 

1.   Repayment.
If not converted pursuant to Section 7 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 [__], 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 7 herein, all interest shall be so converted and shall not be
payable in cash. 

 

2.   Interest.
Until this Note is converted pursuant to Section 7 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. 

 

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

 

4.   Payment
Process. All payments to be made by the Company (other than Equity Securities issued upon conversion of this Note in accordance
with Section 7) 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.

 

    	 	 	 

     

    

 

5.   Security.
This Note and all amounts due hereunder are secured by all the assets of the Company pursuant to, and as described in, the Security
Agreement. 

 

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 (“Equity Securities”) in a single transaction
or series of related transactions for cash of at least $2,000,000 (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 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) as is 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”). 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 shares of capital stock
of the Company on such terms as are agreed to by such holders and the Company.

 

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:

 

    	 	- 2 -	 

     

    

 

(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. No fractional Common Shares shall be issued upon conversion of this Note. Upon the conversion of
the 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. Upon the conversion of the Note in full, Company shall be
forever released from all its obligations and liabilities under this Note. In connection with conversion of the Note, the Holder
shall execute all applicable documents reasonably requested by the Company, including without limitation a purchase agreement and
other ancillary agreements, if applicable.

 

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 in accordance
with Section 7;

 

(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, Warrants, or Security Agreement, and such
failure continues for more than sixty (60) days after delivery of written notice thereof; 

 

    	 	- 3 -	 

     

    

 

(d)          any
representation or warranty of the Company made in the Purchase Agreement,
Warrants, or Security Agreement, 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.

 

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 14 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 14(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.

 

    	 	- 4 -	 

     

    

 

(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 14(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 14, 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.

 

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.

 

    	 	- 5 -	 

     

    

 

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.

 

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.

 

    	 	- 6 -	 

     

    

 

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

 

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

 

AudioEye, Inc.

Secured 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:  	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title: 	 
	 	 	 
	 	If Individual:	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Signature:	 

 

AudioEye, Inc.

Secured Convertible Promissory NoteExhibit 4.2

 

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.

COMMON STOCK WARRANT

 

This
Common Stock Warrant (this “Warrant”) is issued as of October [__], 2015, by AudioEye, Inc., a Delaware
corporation (the “Company”), to [_______] (the “Holder”) in connection with
that certain Secured Convertible Promissory Note [No.            ] dated as of October [__], 2015, (the “Note”),
according to the terms of that certain Note and Warrant Purchase Agreement, dated as of October 9, 2015, by and between the Company
and the other parties thereto  (as the same may from time to time be amended, modified, extended,
renewed or restated, the “Purchase Agreement”). Capitalized terms used and not otherwise defined herein
shall have the meanings assigned to such terms in the Purchase Agreement. 

 

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 common stock, $0.00001
par value per share (the “Common Stock”), of the Company (as adjusted from time to time, “Warrant
Shares”) at a price of $0.10 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 fifth (5th) anniversary hereof (the “Expiration Date”).

 

3.          Method
of Exercise. Subject to Sections 1 and 2 above, the Holder may exercise, in whole or in part, the purchase rights
evidenced by this Warrant. Such exercise shall be effected by: (a) 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 (b) 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.”

 

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 Common Stock (as reported by Bloomberg Financial Markets) 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 non-assessable 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 Common Stock of the Company or other securities constituting 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.          Holder’s
Restrictions.  The Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 3
or otherwise, to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s
affiliates), as set forth on the applicable Exercise Notice, would beneficially own in excess of 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to such issuance.  For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant and any other security of the Company convertible into Common Stock with respect
to which the determination of such sentence is being made.  Except as set forth in the preceding sentence, for purposes of
this Section 9, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act (as defined
below), it being acknowledged by Holder that the Company is not representing to Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and Holder is solely responsible for any schedules required to be filed in accordance therewith. To
the extent that the limitation contained in this Section 9 applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder) and of which portion of this Warrant is exercisable shall be in the sole
discretion of such Holder, and the submission of an Exercise Notice shall be deemed to be such Holder’s determination of
whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant
is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify
or confirm the accuracy of such determination.  For purposes of this Section 9, 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 (x) the Company’s
most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice
by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon
the written or oral request of the Holder, the Company shall within two Trading Days (as defined below) confirm orally and in writing
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 or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. 
The provisions of this Section 9 may be waived by the Holder upon, at the election of the Holder, not less than 61 days’
prior notice to the Company, and the provisions of this Section 9 shall continue to apply until such 61st day
(or such later date, as determined by the Holder, as may be specified in such notice of waiver).

 

10.         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 Warrant Shares, 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 10(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.

 

    	 	- 4 -	 

     

    

 

(b)          Merger,
Consolidation, Reclassification, Reorganization, Etc. In case of any change in the Warrant Shares prior to the Expiration Date
(other than as a result of a subdivision, combination, or stock dividend provided for in Section 10(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
Common Stock (i) evidences of its indebtedness, (ii) any security (other than a distribution of the Common Stock 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)          Dilution.

 

(i)          In
the event that the Company shall, at any time or from time to time, offer shares of Common Stock (other than Excluded Shares (as
defined in the Note)) in a non-public offering (or in a public offering in which more than 50% of such public offering is subscribed
to by affiliates of the Company) in which the Common Stock is sold at a price less than the Exercise Price, then the Exercise Price
shall be reduced (but not increased) to an amount determined by multiplying the Exercise Price by a fraction (x) the numerator
of which shall be (A) the number of shares of Common Stock deemed outstanding (as determined in the following sentence) immediately
prior to such issue or sale, plus (B) the number of shares of Common Stock which the Aggregate Consideration (as defined below)
received or deemed received by the Company for the total number of additional shares of Common Stock so issued would purchase at
such then-existing Exercise Price, and (y) the denominator of which shall be the number of shares of Common Stock deemed outstanding
(as determined in the following sentence) immediately prior to such issue or sale plus the total number of additional shares of
Common Stock so issued.  For the purposes of the preceding sentence, the number of shares of Common Stock deemed to be outstanding
as of a given date shall be the sum of (I) the number of shares of Common Stock outstanding, (II) the number of Warrant Shares
obtainable upon exercise of the Warrant if the Exercise Date is the day immediately preceding the given date, and (III) the number
of shares of Common Stock which are issuable upon the exercise or conversion of all other rights, options and Warrant Shares outstanding
on the day immediately preceding the given date. Notwithstanding the foregoing, any issuance of additional Notes in an Additional
Closing (as defined in the Purchase Agreement) or issuance of the equity securities into which they convert (in accordance with
the terms thereof), or the issuance of equity securities upon exercise of the other Warrants sold pursuant to the Purchase Agreement,
shall not cause an adjustment of the Conversion Price under this Section 10(c)(i).

 

(ii)         An
adjustment made pursuant to Section 10(c)(i) shall be made on the next Business Day following the date on which any such
issuance or sale is made and shall be effective retroactively to the close of business on the date of such issuance or sale.

 

    	 	- 5 -	 

     

    

 

 

(iii)        For
the purpose of making any adjustment required under Section 10(c)(i), the aggregate consideration received by the Company
for any issue or sale of securities (the “Aggregate Consideration”) shall be computed as: (A) to the
extent it consists of cash, the gross amount of cash received by the Company before deduction of any underwriting or similar commissions,
compensation or concessions paid or allowed by the Company in connection with such issue or sale and without deduction of any expenses
payable by the Company, (B) to the extent it consists of property other than cash, the fair value of that property as determined
in good faith by the Board of Directors of the Company; provided, however, that to the extent the Board of Directors determines
the fair value of property other than cash is equal to or exceeds $1,000,000, then the Company shall have such property appraised
by a qualified independent appraiser, whose valuation shall conclusively determine the value, and (C) if shares of Common Stock,
Convertible Securities (as defined below) or rights or options to purchase either shares of Common Stock or Convertible Securities
are issued or sold together with other stock or securities or other assets of the Company for a consideration which covers both,
the portion of the consideration so received that may be reasonably determined in good faith by the Board of Directors to be allocable
to such shares of Common Stock, Convertible Securities or rights or options.

 

(iv)        For
the purpose of the adjustment required under Section 10(c)(i), if the Company issues or sells (x) preferred shares or other
stock, options, warrants, purchase rights or other securities convertible into, shares of Common Stock other than Excluded Shares
(such convertible stock or securities being herein referred to as “Convertible Securities”) or (y) rights
or options for the purchase of shares of Common Stock or Convertible Securities (other than Excluded Shares) and if the Effective
Price (defined below) of such shares of Common Stock is less than the Exercise Price, the Company shall be deemed to have issued
at the time of the issuance of such rights or options or Convertible Securities the maximum number of shares of Common Stock issuable
upon exercise or conversion thereof and to have received as consideration for the issuance of such shares an amount equal to the
total amount of the consideration, if any, received by the Company for the issuance of such rights or options or Convertible Securities
plus: (A) in the case of such rights or options, the minimum amounts of consideration, if any, payable to the Company upon the
exercise of such rights or options; and (B) in the case of Convertible Securities, the minimum amounts of consideration, if any,
payable to the Company upon the conversion thereof (other than by cancellation of liabilities or obligations evidenced by such
Convertible Securities); provided that if the minimum amounts of such consideration cannot be ascertained, but are a function of
anti-dilution or similar protective clauses, the Company shall be deemed to have received the minimum amounts of consideration
without reference to such clauses. The “Effective Price” of shares of Common Stock shall mean the quotient
determined by dividing the total number of shares of Common Stock issued or sold, or deemed to have been issued or sold by the
Company under Section 10(a)(i), into the Aggregate Consideration received, or deemed to have been received by the Company
for such issue under Section 10(a)(i), for such shares of Common Stock. In the event that the number of shares of Common
Stock or the Effective Price cannot be ascertained at the time of issuance, such shares of Common Stock shall be deemed issued
immediately upon the occurrence of the first event that makes such number of shares or the Effective Price, as applicable, ascertainable.

 

(v)         If
the minimum amount of consideration payable to the Company upon the exercise or conversion of rights, options or Convertible Securities
is reduced over time or on the occurrence or non-occurrence of specified events other than by reason of anti-dilution adjustments,
the Effective Price shall be recalculated using the figure to which such minimum amount of consideration is reduced; provided further,
that if the minimum amount of consideration payable to the Company upon the exercise or conversion of such rights, options or Convertible
Securities is subsequently increased, the Effective Price shall be again recalculated using the increased minimum amount of consideration
payable to the Company upon the exercise or conversion of such rights, options or Convertible Securities.

 

    	 	- 6 -	 

     

    

 

(vi)        If
any option or warrant expires or is cancelled without having been exercised, then, for the purposes of the adjustments set forth
above, such option or warrant shall have been deemed not to have been issued and the Exercise Price shall be adjusted accordingly.

 

(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
10(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 10(b).

 

11.         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) 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 11. 

 

12.         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. 

 

13.         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.

 

14.         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.

 

    	 	- 7 -	 

     

    

 

15.         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 the Purchase
Agreement, 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. 

 

(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 the Transaction Agreements supersede all written and oral agreements and representations
made by or on behalf of the Company. The Transaction Agreements contain 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.

 

    	 	- 8 -	 

     

    

 

(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.

 

(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 Securities and Exchange Act of 1934, as amended (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]

 

    	 	- 9 -	 

     

    

 

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

 

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

 

Signature page to

AudioEye, Inc.

Common Warrant

 

     

     

    

 

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

 

	 	HOLDER:	 
	 	 	 
	 	If Entity:	 
	 	 	 
	 	Entity Name: 	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	If Individual:
	 	 	 
	 	Name: 	 
	 	 	 
	 	Signature:	 

  

Signature page to

AudioEye, Inc.

Common Warrant

 

     

     

    

 

ANNEX I

 

NOTICE OF EXERCISE

 

	TO:	 	 

 

1.          The
undersigned Warrantholder (“Holder”) elects to acquire the Warrant Shares of AudioEye, Inc. (the “Company”),
pursuant to the terms of the Warrant dated October ___, 2015 (the “Warrant”). 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:	 	 

 

    	 	A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]