AUDIOEYE, INC. (OTCMKTS:AEYE) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02
(b)
On February27, 2019, the Board of Directors (the “Board”) of AudioEye, Inc. (“AudioEye” or the “Company”) appointed Sean Bradley to the position of Chief Strategy Officer. Upon such appointment, Mr. Bradley ceased to serve as the Company’s Chief Technology Officer. Mr. Bradley, a co-founder of the Company, continues to serve as the Company’s President and Secretary in addition to now serving as Chief Strategy Officer.
(c)
On February27, 2019, the Board designated Lonny Sternberg, the Company’s Chief Operating Officer, as an executive officer of the Company in that position. Mr. Sternberg, age 38, joined the Company in October 2014 as Operations Manager. He held that position until October 2015, at which time he became Director of Operations. Mr. Sternberg served as Director of Operations from October 2015 through December 2016, and subsequently served as Vice President of Operations from January 2017 until January 2018. In January 2018, Mr. Sternberg was promoted to the position of Chief Operating Officer and, as reported above in this Item 5.02, on February 27, 2019, the Board designated him as an executive officer in that position. Prior to joining AudioEye, Mr. Sternberg had most recently served as Director of Sales and Marketing of Simply Bits, a business technology solutions company.
There are no arrangements or understandings between Mr. Sternberg and any other person to which Mr. Sternberg was selected as an officer of the Company. There are no family relationships between Mr.Sternberg and any director or executive officer of the Company. Mr. Sternberg is not and has not been a party to any transaction required to be disclosed herein to Item 404(a) of Regulation S-K.
(d)
On February 28, 2019, the Company entered into an Executive Employment Agreement (the “Employment Agreement”) with Lonny Sternberg to which Mr. Sternberg continued his employment with the Company on the terms and conditions set forth therein. The Employment Agreement, which is deemed to have become effective on January1, 2019, provides for a one-year term unless earlier terminated as provided therein. Under the Employment Agreement, Mr. Sternberg receives a base annual salary of $190,000 and is eligible to be granted (i) a bonus or bonuses at the sole discretion of the Board or the Compensation Committee of the Board (the “Compensation Committee”) and (ii) awards under the Company’s equity incentive compensation plans as the Compensation Committee may from time to time determine. The Employment Agreement provides that, in the event the Company terminates Mr. Sternberg’s employment without “cause” or Mr. Sternberg terminates his employment for “good reason” (as each such term is defined in the Employment Agreement), Mr. Sternberg will be entitled to receive a severance benefit in an aggregate amount equal to his base salary during the 12 months prior to termination, which benefit would be payable over a 12-month period.
(e)
On February 27, 2019, the Company entered into an Executive Employment Agreement (the “New Employment Agreement”) with Sean Bradley to which Mr. Bradley continued his employment with the Company on the terms and conditions set forth therein. The New Employment Agreement replaces the Executive Employment Agreement, dated as of February 13, 2018, between the Company and Mr. Bradley. The New Employment Agreement, which is deemed to have become effective on January1, 2019, provides for a one-year term unless earlier terminated as provided therein. Under the New Employment Agreement, Mr. Bradley receives a base annual salary of $210,000 and is eligible to be granted (i) a bonus or bonuses at the sole discretion of the Board or the Compensation Committee and (ii) awards under the Company’s equity incentive compensation plans as the Compensation Committee may from time to time determine. The New Employment Agreement provides that, in the event the Company terminates Mr. Bradley’s employment without “cause” or Mr. Bradley terminates his employment for “good reason” (as each such term is defined in the New Employment Agreement), Mr. Bradley will be entitled to receive a severance benefit in an aggregate amount equal to his base salary during the 12 months prior to termination, which benefit would be payable over a 12-month period.
About AUDIOEYE, INC. (OTCMKTS:AEYE)
AudioEye, Inc. (AudioEye) is a marketplace providing Web accessibility solutions for its clients’ customers through its Ally Platform Products. The Company generates revenues through the sale of subscriptions of its software as a service (SaaS) technology platform, called the AudioEye Ally Platform, to Website owners, publishers, developers and operators, and through the delivery of managed services combined with the implementation of the AudioEye solution. Its customers span disparate industries and target market verticals, which encompass (but are not limited to) the human resources, finance, transportation, media and education. Its compliance solutions focus on remediation of the accessibility issues, followed by analysis identifying and addressing compliance program. By deploying AudioEye remediation technology to fix common and high-impact issues, it is able to manage the usability of its client sites on the first day that they implement its solution into their site.