Document:

Exhibit 4.14

 

Description of Registrant’s Securities

 

As of March 12, 2020,
Creative Realities, Inc. has two classes of securities registered under Section 12 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”): (1) our Common Stock; and (2) Warrants.

 

Description of Common Stock

 

The following is a description of our
common stock, and certain material provisions of Minnesota law, our Articles of Incorporation, and our corporate bylaws. The following
is only a summary and is qualified by applicable law, our Articles of Incorporation, and our corporate bylaws. Copies of our Articles
of Incorporation and corporate bylaws are included as exhibits to the Annual Report on Form 10-K of which this Exhibit is a part.

 

Voting. The holders of our common
stock are entitled to one vote for each outstanding share of common stock owned by that shareholder on every matter properly submitted
to the shareholders for their vote. Shareholders are not entitled to vote cumulatively for the election of directors. 

 

Dividend Rights. Subject to the dividend
rights of the holders of any outstanding series of preferred stock, holders of our common stock are entitled to receive ratably
such dividends and other distributions of cash or any other right or property as may be declared by our Board of Directors out
of our assets or funds legally available for such dividends or distributions. 

 

Liquidation Rights. In the event
of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, holders of our common stock would be entitled
to share ratably in our assets that are legally available for distribution to shareholders after payment of liabilities and after
the satisfaction of any liquidation preference owed to the holders of any outstanding series of preferred stock. 

 

Conversion, Redemption and Preemptive
Rights. Holders of our common stock have no conversion, redemption, preemptive, subscription or similar rights. 

 

Warrants

 

The following summary of certain terms
and provisions of our warrants is not complete and is subject to, and qualified in its entirety by the provisions of the form of
the warrant, which is filed as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part. 

 

Exercisability. The warrants are
exercisable immediately upon issuance and at any time up to the date that is five years from the date of issuance. The warrants
will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice accompanied
by payment in full for the number of shares of our common stock purchased upon such exercise (except in the case of a cashless
exercise as discussed below).

  

Cashless Exercise.  In the event
that a registration statement covering shares of common stock underlying the warrants, or an exemption from registration, is not
available for the resale of such shares of common stock underlying the warrants, the holder may, in its sole discretion, exercise
the warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise
in payment of the aggregate exercise price, elect instead to receive upon such exercise the net number of shares of common stock
determined according to the formula set forth in the warrant. In no event shall we be required to make any cash payments or net
cash settlement to the registered holder in lieu of issuance of common stock underlying the warrants.

 

Exercise Price. The initial exercise
price per share of common stock purchasable upon exercise of the warrants is $4.375. The exercise price is subject to appropriate
adjustment in the event of certain stock dividends and distributions, stock splits, stock combinations, reclassifications or similar
events affecting our common stock and also upon any distributions of assets, including cash, stock or other property to our stockholders.

 

Certain Adjustments. The exercise
price and the number of shares of common stock purchasable upon the exercise of the warrants are subject to adjustment upon the
occurrence of specific events, including stock dividends, stock splits, combinations and reclassifications of our common stock.

 

     

     

    

 

Transferability. Subject to applicable
laws, the warrants may be transferred at the option of the holders upon surrender of the warrants to us together with the appropriate
instruments of transfer.

 

Fundamental Transaction. If, at any
time while the warrants are outstanding, (1) we consolidate or merge with or into another corporation and we are not the surviving
corporation, (2) we sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of our assets,
(3) any purchase offer, tender offer or exchange offer (whether by us or another individual or entity) is completed pursuant to
which holders of our shares of common stock are permitted to sell, tender or exchange their shares of common stock for other securities,
cash or property and has been accepted by the holders of 50% or more of our outstanding shares of common stock, (4) we effect any
reclassification or recapitalization of our shares of common stock or any compulsory share exchange pursuant to which our shares
of common stock are converted into or exchanged for other securities, cash or property, or (5) we consummate a stock or share purchase
agreement or other business combination with another person or entity whereby such other person or entity acquires more than 50%
of our outstanding shares of common stock, each, a “Fundamental Transaction,” then upon any subsequent exercise of
the warrants, the holders thereof will have the right to receive the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of warrant shares then issuable upon exercise of the warrant, and any additional
consideration payable as part of the Fundamental Transaction.

 

Rights as a Stockholder. Except as
otherwise provided in the warrants or by virtue of such holder’s ownership of shares of our common stock, the holder of a
warrant does not have the rights or privileges of a holder of our common stock, including any voting rights, until the holder exercises
the warrant.

 

Anti-Takeover Provisions

 

The following is a description of certain
provisions of the Minnesota Business Corporation Act and our corporate bylaws that are likely to discourage any unfriendly attempt
to obtain control of the Company. This summary does not purport to be complete and is qualified in its entirety by reference to
the Minnesota Business Corporation Act and our corporate bylaws.

 

Minnesota Business Combination Act

 

We are subject to the Minnesota Business
Combination Act, Section 302A.673 of the Minnesota Business Corporation Act. Subject to certain qualifications and exceptions,
the statute prohibits an “interested shareholder” of certain Minnesota corporations that are termed “issuing
public corporations” (which definition Creative Realities satisfies) from effecting any “business combination”
with the corporation for a period of four years from the date the shareholder becomes an “interested shareholder” unless
the corporation’s Board of Directors approved the business combination prior to the shareholder becoming an “interested
shareholder” or otherwise approved the shareholder becoming an “interested shareholder.”

 

An “interested shareholder”
is defined to include (i) any beneficial owner of 10% or more of the voting power of the outstanding voting stock of the corporation,
or (ii) any affiliate or associate of the corporation, that, within the prior four-year period has at any time directly or indirectly
beneficially owned 10% or more of the voting power of the then-outstanding stock of the corporation.

 

The term “business combination”
is defined broadly to include, among other things:

 

		●	the
merger, consolidation or share exchange of the corporation with the interested shareholder or any corporation that is, or after
the merger, consolidation or share exchange would be, an affiliate or associate of the interested shareholder (subject to certain
exceptions);

 

		●	the
sale, lease, exchange, mortgage, pledge, transfer or other disposition to or with an interested shareholder or any affiliate or
associate of the interested shareholder, of assets of the corporation or any subsidiary (i) having an aggregate market value of
10% or more of the corporation’s consolidated assets, (ii) having an aggregate market value of 10% or more of the market
value of all outstanding shares of the corporation, or (iii) representing 10% or more of the earning power or net income of the
corporation determined on a consolidated basis (subject to certain exceptions); or

 

		●	the
issuance or transfer to an interested shareholder or any affiliate or associate of the interested shareholder of 5% or more of
the aggregate market value of the outstanding stock of the corporation (subject to certain exceptions).

 

    2

     

    

 

The statute is designed to protect minority
shareholders by prohibiting transactions in which an acquirer could favor itself at the expense of minority shareholders. The statute’s
prohibition on the issuance or transfer to an interested shareholder of 5% or more of the aggregate market value of the outstanding
stock of a corporation is subject to an exemption for shares purchased pursuant to the exercise of rights offered on a pro rata
basis to all shareholders, such as this rights offering.

 

Bylaws

 

Certain provisions of our corporate bylaws
could have anti-takeover effects. These provisions are intended to enhance the likelihood of continuity and stability in the composition
of our corporate policies formulated by our Board of Directors. In addition, these provisions also are intended to ensure that
our Board of Directors will have sufficient time to act in what our Board of Directors believes to be in the best interests of
our Company and our shareholders. Nevertheless, these provisions could delay or frustrate the removal of incumbent directors or
the assumption of control of us by the holder of a large block of common stock, and could also discourage or make more difficult
a merger, tender offer, or proxy contest, even if such event would be favorable to the interest of our shareholders. These provisions
are summarized below.

 

Advance Notice Provisions for Raising
Business or Nominating Directors. Sections 2.2 and 3.3 of our bylaws contain advance-notice provisions relating to the ability
of shareholders to raise business at a shareholder meeting and make nominations for directors to serve on our Board of Directors.
These advance-notice provisions generally require shareholders to raise business within a specified period of time prior to a meeting
in order for the business to be properly brought before the meeting. Similarly, our bylaws prescribe the timing of submissions
for nominations to our Board of Directors and the certain of factual and background information respecting the nominee and the
shareholder making the nomination.

 

Limited Shareholder Action in Writing.
Our bylaws provide that shareholder action can be taken only at an annual or special meeting of shareholders and cannot be taken
by written consent in lieu of a meeting by fewer than all shareholders entitled to vote. This provision is consistent with the
Minnesota Business Corporation Act, which does not allow for fewer than all shareholders of a public corporation to take action
other than at an actual meeting of the shareholders.

 

Number of Directors and Vacancies.
Our bylaws provide that the number of directors shall initially consist of seven persons, with the precise number of directors
comprising the board shall be determined from time to time by the board itself. The prescribed number of directors comprising the
board may be increased (but not decreased) by a majority of the directors then serving on the board. The bylaws also provide that
our board has the right, except as may be provided in the terms of any series of preferred stock created by resolutions of the
board, to fill vacancies, including vacancies created by any decision of our board to increase the number of directors comprising
the board.

 

Articles of Incorporation –
Blank-Check Preferred Stock Power

 

Under our Articles of Incorporation, our
board has the authority to fix by resolution the terms and conditions of one or more series of preferred stock and provide by resolution
for the issuance of shares of such series.

 

We believe that the availability of our
preferred stock, in each case issuable in series, and additional shares of common stock could facilitate certain financings and
acquisitions and provide a means for meeting other corporate needs which might arise. The authorized shares of our preferred stock,
as well as authorized but unissued shares of common stock, will be available for issuance without further action by our shareholders,
unless shareholder action is required by applicable law or the rules of any stock exchange on which any series of our stock may
then be listed, or except as may be provided in the terms of any preferred stock created by resolution of our board.

 

These provisions give our board the power
to approve the issuance of a series of preferred stock, or additional shares of common stock, that could, depending on its terms,
either impede or facilitate the completion of a merger, tender offer or other takeover attempt. For example, the issuance of new
shares of preferred stock might impede a business combination if the terms of those shares include voting rights which would enable
a holder to block business combinations or, alternatively, might facilitate a business combination if those shares have general
voting rights sufficient to cause an applicable percentage vote requirement to be satisfied.

 

Listing

 

Our common stock and warrants are listed
on The Nasdaq Capital Market under the symbol “CREX” and “CREXW”, respectively.

 

 

3Ex_47

		
			Exhibit 4.7
		

			
	
			
				
			DESCRIPTION OF APPLIED THERAPEUTICS, INC. SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT

		
			Description of Common Stock
		

		
			The following is a summary of the rights and preferences of our common stock, and the related provisions of our amended and restated certificate of incorporation and amended and restated bylaws, as each is in effect as the date hereof, copies of which are incorporated by reference as Exhibits 3.1 and 3.2 to our Annual Report on Form 10-K for the year ended December 31, 2019 of which this Exhibit 4.7 is a part.  While we believe that the following description covers the material terms of our common stock, the description may not contain all of the information that is important to you.  We encourage you to read carefully our amended and restated certificate of incorporation, amended and restated bylaws and the other documents we refer to for a more complete understanding of our common stock.
		

		
			Except as otherwise indicated or the context otherwise requires, the terms “Company,” “us,” “we” and “our” refer to Applied Therapeutics, Inc.  The rights of our stockholders are generally covered by Delaware law and our amended and restated certificate of incorporation and amended and restated bylaws (each as amended and restated and in effect on the date hereof).    The terms of our common stock are therefore subject to Delaware law.
		

		
			General
		

		
			Our amended and restated certificate of incorporation provides that we may issue up to 100,000,000 shares of common stock, par value $0.0001 per share.    As of December 31, 2019, we had 18,531,560 shares of common stock outstanding.
		

			
	
			
				
			Voting Rights

		
			Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders.  The affirmative vote of holders of at least 662/3% of the voting power of all of the then-outstanding shares of capital stock, voting as a single class, is required to amend certain provisions of our amended and restated certificate of incorporation, including provisions relating to amending our amended and restated bylaws, the classified board, the size of our board, removal of directors, director liability, vacancies on our board, special meetings, stockholder notices, actions by written consent and exclusive jurisdiction.  There are no cumulative voting rights.
		

			
	
			
				
			Dividends

		
			Subject to preferences that may apply to any outstanding preferred stock, holders of our common stock are entitled to receive ratably any dividends that our board of directors may declare out of funds legally available for that purpose on a non-cumulative basis.
		

			
	
			
				
			Liquidation

		
			In the event of our liquidation, dissolution or winding up, holders of our common stock are be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock.
		

			
	
			
				
			Rights and Preferences

		
			Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock.  The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.
		

		
			 
		

		
			

		 

		

		
			Registration Rights
		

		
			Certain holders of shares of our common stock, including those shares of our common stock that were issued upon the conversion of our preferred stock in connection with our initial public offering in May 2019 (the “IPO”), are entitled to certain rights with respect to registration of such shares under the Securities Act.  These shares are referred to as registrable securities.  The holders of these registrable securities possess registration rights pursuant to the terms of our amended and restated investors’ rights agreement and are described in additional detail below.  The registration of shares of our common stock pursuant to the exercise of the registration rights described below would enable the holders to trade these shares without restriction under the Securities Act when the applicable registration statement is declared effective.  We will pay the registration expenses, other than underwriting discounts, selling commissions and stock transfer taxes, of the shares registered pursuant to the demand, piggyback and Form S-3 registrations described below.
		

		
			Generally, in an underwritten offering, the managing underwriter, if any, has the right, subject to specified conditions and limitations, to limit the number of shares the holders may include.  The demand, piggyback and Form S-3 registration rights described below will expire no later than three years after the completion of the IPO, or with respect to any particular holder, at such time that such holder can sell its shares under Rule 144 of the Securities Act during any three-month period.
		

			
	
			
				
			Anti-Takeover Provisions of Delaware Law and Our Charter Documents

			
	
			
				
			Section 203 of the Delaware General Corporation Law

		
			We are subject to Section 203 of the DGCL, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:
		

			
	
			
				 ·
			

			
	
			
			before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

			
	
			
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			upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

			
	
			
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			on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 662/3% of the outstanding voting stock that is not owned by the interested stockholder.

		
			In general, Section 203 defines a “business combination” to include the following:
		

			
	
			
				 ·
			

			
	
			
			any merger or consolidation involving the corporation and the interested stockholder;

			
	
			
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			any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

			
	
			
				 ·
			

			
	
			
			subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

			
	
			
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			any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; and

		
			

		 

		

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				 ·
			

			
	
			
			the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.

		
			In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.
		

		
			The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.
		

			
	
			
				
			Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws

		
			Among other things, our amended and restated certificate of incorporation and amended and restated bylaws:
		

			
	
			
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			permit our board of directors to issue up to 10,000,000 shares of preferred stock, with any rights, preferences and privileges as they may designate, including the right to approve an acquisition or other change in control;

			
	
			
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			provide that the authorized number of directors may be changed only by resolution of our board of directors;

			
	
			
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			provide that our board of directors be classified into three classes of directors;

			
	
			
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			provide that, subject to the rights of any series of preferred stock to elect directors, directors may only be removed for cause, which removal may be effected, subject to any limitation imposed by law, by the holders of at least a majority of the voting power of all of our then-outstanding shares of the capital stock entitled to vote generally at an election of directors;

			
	
			
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			provide that all vacancies, including newly created directorships, may, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;

			
	
			
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			require that any action to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written consent or electronic transmission;

			
	
			
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			provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide advance notice in writing, and also specify requirements as to the form and content of a stockholder’s notice;

			
	
			
				 ·
			

			
	
			
			provide that special meetings of our stockholders may be called only by the chairman of our board of directors, our chief executive officer or president or by our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors; and

			
	
			
				 ·
			

			
	
			
			not provide for cumulative voting rights, therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose.

		
			The amendment of any of these provisions would require approval by the holders of at least 662/3% of the voting power of all of our then-outstanding common stock entitled to vote generally in the election of directors, voting together as a single class.
		

		
			The combination of these provisions make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of us by replacing our board of directors.  Because our board of directors has the power to retain and discharge our officers, these provisions could also make it more 

		 

		

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difficult for existing stockholders or another party to effect a change in management.  In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.
		

		
			These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage coercive takeover practices and inadequate takeover bids.  These provisions are also designed to reduce our vulnerability to hostile takeovers and to discourage certain tactics that may be used in proxy fights.  However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of delaying changes in our control or management.  As a consequence, these provisions may also inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts.  We believe that the benefits of these provisions, including increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure our company, outweigh the disadvantages of discouraging takeover proposals, because negotiation of takeover proposals could result in an improvement of their terms.
		

			
	
			
				
			Choice of Forum

		
			Our amended and restated certificate of incorporation provides that, with respect to any state actions or proceedings under Delaware statutory or common law, the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the DGCL, our certificate of incorporation or our bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine.  The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with one or more actions or proceedings described above, a court could find the choice of forum provisions contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable.
		

			
	
			
				
			Listing

		
			Our common stock is listed on The Nasdaq Global Market under the trading symbol “APLT.”
		

			
	
			
				
			Transfer Agent and Registrar

		
			The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.
		

		
			 
		

		 

		

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