Exhibit10.8
As of November 7,2013
CMGHoldingsGroup, Inc
333HudsonStreet,Suite303
New York, NY10013
Attn:JeffreyDevlin,CEO
Dear Mr.Devlin:
AudioEye,Inc.(“AudioEye”)andCMGHoldingsGroup,Inc.(“CMGHoldings”)arepartytothatcertainCallOptionAgreement(the“CallOptionAgreement”),datedasofAugust1,2013,asamendedasofAugust30,2013andasofSeptember14,2013.
Inconsideration ofthemutual promises hereincontained,andothergoodandvaluableconsideration, andintendingto belegallybound,AudioEyeand CMGHoldingshereby agreethat:
(i) | Section 1.2 oftheCallOptionAgreement is amended and restated in its entirety asfollows: |
“1.2 The partiesacknowledgethatwhilethisAgreementisineffect,AudioEyeshallbeentitledbutnot obligated tomaketheTerminationPayment,andthatuponsuchTerminationPaymentbeingmadewhilethisAgreementisineffect,thepartiesagreethatRoyalty Agreementshallbeterminated mutually, automatically andwithno furtheraction ofthepartiesrequired. If AudioEyedecidesto makethe Termination Payment,then, in accordancewith thenotice provisionsofthisAgreement,AudioEyeshall issue to Seller anoticeto that effect accompanied by payment oftheTermination Payment.”
(ii) | Section 4.1 oftheCallOptionAgreement is amended and restated in its entirety asfollows: |
“4.1 Inaccordancewith thisAgreement, to purchasetheOptionShares held by Seller, Purchaser shall paytheoptionexercisepriceasfollows:IfPurchaserdecidestopurchasetheOptionShares,thenthetotaloptionexercisepriceforpurchasingtheOptionSharesshallbe$1,415,000andAudioEyemustelecttomaketheTerminationPaymentof$85,000in Section 1.1above,which must accompanytheoption exercise price; provided,however,thatthe parties agree thatAudioEye may elect to makethe Termination Payment of$85,000 in Section 1.1above inadvance of an election by Purchaser to purchasetheOption Shares. The parties agree thatthis is an all ornone transaction to purchasetheOption Shares and thatthe Seller must receive$1,500,000inaggregate, consistingoftheoptionexercisepriceandtheTerminationPayment, inorder for Purchaser to purchasetheOption Shares.”
University of Arizona Science and TechnologyPark
9070S Rita Road, Suite1450
Tucson, AZ85747
866.331.5324• Fax520.844.2989
(iii) | Section 9.2 oftheCallOptionAgreement is amended and restated in its entirety asfollows: |
“9.2 Unless otherwise provided herein,thisAgreement shall automatically terminate at5:00P.M.Tucson timeon that datewhichisonehundred seventeen (117) calendardaysfromtheEffectiveDate.”
ThisAgreementalsoservesastherequisitenoticebyAudioEyethatitiselecting,concurrentlywithexecutionofthisAgreement,toterminatetheRoyaltyAgreementinaccordancewithSection1.1oftheCallOptionAgreement,thusservingto terminatethe RoyaltyAgreementuponpayment oftheTermination Payment.
ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesandtheirsuccessorsandpermittedassigns.ThisAgreementmaybeexecutedintwocounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument.This Agreement shall begovernedbyandinterpretedaccordingtothelaws oftheState of Delaware,withoutgivingeffect tothechoice of lawprovisionsof suchState.Anyactionsfor enforcement ofthisAgreement or interpretation of any ofthe provision ofthis Agreement or otherwise arisingout of or relating tothis Agreement shall bebroughtonlyinthe state courts oforinthe federal courts locatedinPimaCounty, State ofArizona. The parties agree tosubmit tothejurisdiction of such courts.Theparties hereinwaivetrial by jury and agreeto submit tothepersonal jurisdiction andvenue of a court of subject matter jurisdictionlocatedinPimaCounty, State of Arizona. Eachpartyshall take suchfurtheraction and execute anddeliversuch further documents as may be necessary or appropriate in order to carryout theprovisions and purposes ofthisAgreement.
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University of Arizona Science and TechnologyPark
9070S Rita Road, Suite1450
Tucson, AZ85747
866.331.5324• Fax520.844.2989
2 |
Ifyouareinagreementwiththeforegoing,pleasesignandreturnonecopyofthis Agreementtous.
Very trulyyours,
AudioEye,Inc.
By: | ||
Name: | ||
Title: |
Agreed to as ofthis7thday of November,2013:
CMGHoldingsGroup,Inc.
By: | ||
Name: | ||
Title: |
University of Arizona Science and TechnologyPark
9070S Rita Road, Suite1450
Tucson, AZ85747
866.331.5324• Fax520.844.2989
3