Document:

Exhibit
10.2

 

Execution
Version

 

NEITHER
THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION. BY ACQUIRING THIS WARRANT, HOLDER REPRESENTS THAT HOLDER WILL NOT
SELL OR OTHERWISE DISPOSE OF THIS WARRANT OR THE SECURITIES FOR WHICH IT MAY BE EXERCISED WITHOUT REGISTRATION OR COMPLIANCE WITH
AN EXEMPTION FROM REGISTRATION UNDER THE AFORESAID ACTS AND THE RULES AND REGULATIONS THEREUNDER.

 

WARRANT
TO PURCHASE COMMON STOCK

 

Number
of Shares of Common Stock: 1,515,152

Date
of Issuance: February 18, 2015 (“Issuance Date”)

 

THIS
CERTIFIES THAT, for value received, Mill City Ventures III, Ltd. (including any permitted and registered assigns, the “Holder”),
is entitled to purchase from Creative Realities, Inc., a Minnesota corporation (the “Company”), up to 1,515,152
shares of Common Stock (the “Warrant Shares”) at the Exercise Price then in effect. This Warrant to Purchase
Common Stock (this “Warrant”) is issued by the Company as of the date hereof pursuant to that certain Securities
Purchase Agreement dated the date hereof, by and between the Company, certain subsidiaries of the Company, and Holder (the “Agreement”).
Capitalized terms used in this Warrant shall have the meanings set forth in the Agreement unless otherwise defined in the body
of this Warrant or in Section 13 below. For purposes of this Warrant, the term “Exercise Price” shall mean
$0.38 per share, subject to adjustment as provided herein, and the term “Exercise Period” shall mean the period
commencing on the Issuance Date and ending on 5:00 p.m. New York time on the five-year anniversary thereof.

 

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1.         EXERCISE
OF WARRANT.

 

(a)         Mechanics
of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in
whole or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto
as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. The
Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery
of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the
original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or
before the third Trading Day (the “Warrant Share Delivery Date”) following the date on which the Company
shall have received the Exercise Notice, and upon receipt by the Company of (i) payment to the Company of an amount equal to
the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the
“Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise Delivery
Documents”) in cash or by wire transfer of immediately available funds or (ii) notification from the Holder that
this Warrant is being exercised pursuant to a Cashless Exercise, as defined below, the Company shall (or direct its transfer
agent to) either (1) deliver Warrant Shares to Holder by crediting the account of Holder’s prime broker with the
Depository Trust Company through its Deposit Withdrawal Agent Commission system if the Company is then a participant in such
system and either (x) there is an effective registration statement permitting the resale of the Warrant Shares by the Holder
or (y) the Warrant Shares are eligible for resale without volume or manner-of-sale limitations pursuant to Rule 144 (delivery
pursuant to this clause (1) being referred to as “DWAC Delivery”), or otherwise (2) issue and dispatch by
overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share
register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise. If the Company is able to deliver Warrant Shares through DWAC Delivery but fails to deliver such
Warrant Shares by the Warrant Share Delivery Date, the Company shall pay to Holder, in cash as liquidated damages and not as
a penalty, $20 per Trading Day for each $1,000 of Warrant Shares subject to such delay. Upon delivery of the
Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the
certificates evidencing such Warrant Shares. If this Warrant is submitted in connection with any exercise pursuant to Section
1(c) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of
Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than
three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 6)
representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

 

(b)         No
Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment
pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes
of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise
would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then-current fair market
value of a Warrant Share by such fraction.

 

(c)         Cashless
Exercise. The Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to the Company 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
following formula (a “Cashless Exercise”):

 

Net
Number = (A x B) - (A x C)

     B

 

For
purposes of the foregoing formula:

 

	A	=	the
                                         total number of shares with respect to which this Warrant is then being exercised.

 

	B	=	the
                                         Weighted Average Price of the shares of Common Stock for the five consecutive Trading
                                         Days ending on the date immediately preceding the date of the Exercise Notice.

 

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	C	=	the
                                         Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

(d)         Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, to the extent that after giving effect to issuance of Warrant Shares upon exercise as set
forth on the applicable Notice of Exercise, the Holder (together with the Holder’s “affiliates,” as such term
is defined in Rule 405 under the Securities Act of 1933, and any other persons acting as a group together with the Holder or any
of the Holder’s affiliates), would beneficially own in excess of the Beneficial Ownership Limitation, as defined below.
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 with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining,
non-exercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (ii) exercise or conversion
of the unexercised or non-converted portion of any other convertible securities of the Company subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as
set forth in the preceding sentence, for purposes of this paragraph (e), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations thereunder (the “Exchange Act”),
it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this paragraph applies, the determination of whether this Warrant is
exercisable (in relation to other securities owned by the Holder together with any affiliates) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation,
and the Company shall have no obligation to verify or confirm the accuracy of such determination.

 

For
purposes of this paragraph, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the
SEC, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company
or its transfer agent setting forth the number of shares of Common Stock outstanding. Upon the request of a Holder, the Company
shall within two Trading Days confirm 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 “Beneficial Ownership Limitation” shall be 4.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise
of this Warrant. Upon no fewer than 61 days’ prior notice to the Company, a Holder may increase or decrease the Beneficial
Ownership Limitation provisions of this paragraph, provided that the Beneficial Ownership Limitation in no event exceeds 9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant held by the Holder and the provisions of this paragraph shall continue to apply. Any such increase
or decrease will not be effective until the 61st day after such notice is delivered to the Company and shall only apply to such
Holder and no other Holder. The limitations contained in this paragraph shall apply to a successor Holder of this Warrant.

 

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2.         SUBDIVISION
OR COMBINATION OF COMMON STOCK. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant
Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by combination, reverse
stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will
be proportionately decreased. Any adjustment under this Section 2 shall become effective at the close of business on the date
the subdivision or combination becomes effective.

 

3.         FUNDAMENTAL
TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger of the Company with or
into another entity and the Company is not the surviving entity (such surviving entity, the “Successor Entity”),
(ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii)
any tender offer or exchange offer (whether by the Company or by another individual or entity, and approved by the Company) is
completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares of Common Stock for other
securities, cash or property and the holders of at least 50% of the Common Stock accept such offer, or (iv) the Company effects
any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of
Common Stock covered by Section 2(a) above) (in any such case, a “Fundamental Transaction”), then, upon any
subsequent exercise of this Warrant, the Holder shall have the right to receive the number of shares of Common Stock of the Successor
Entity or of the Company and any additional consideration (the “Alternate Consideration”) receivable upon or
as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such event (disregarding any limitation on
exercise contained herein solely for the purpose of such determination). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions,
any Successor Entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder’s right to exercise such warrant into Alternate Consideration.

 

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4.         NON-CIRCUMVENTION.
The Company covenants and agrees that it will not, by amendment of its articles of incorporation, bylaws or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, 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 of this Warrant, and will at all times in good
faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder.
Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common
Stock upon the exercise of this Warrant, and (iii) shall, for so long as this Warrant is outstanding, have authorized and reserved,
free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented
by this Warrant (without regard to any limitations on exercise).

 

5.         WARRANT
HOLDER NOT DEEMED A SHAREHOLDER. Except as otherwise specifically provided herein, this Warrant, in and of itself, shall not
entitle the Holder to any voting rights or other rights as a shareholder of the Company. In addition, nothing contained in this
Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant
or otherwise) or as a shareholder of the Company, whether such liabilities are asserted by the Company or by creditors of the
Company.

 

6.         REISSUANCE.
If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to indemnity or otherwise as it may
reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed. Whenever the Company is required to issue a new
Warrant pursuant to the terms of this Warrant, such new Warrant shall be of like tenor with this Warrant, and shall have an issuance
date, as indicated on the face of such new Warrant which is the same as the Issuance Date.

 

7.         TRANSFER.

 

(a)         Notice
of Transfer. The Holder, by acceptance hereof, agrees to give written notice to the Company before transferring this Warrant
or transferring any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer.
Promptly upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If the proposed
transfer may be effected without registration or qualification (under any federal or state securities laws), the Company, as promptly
as practicable, shall notify the Holder thereof, whereupon the Holder shall be entitled to transfer this Warrant or to dispose
of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered
by the Holder to the Company; provided, however, that an appropriate legend may be endorsed on this Warrant or the certificates
for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory
to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act of 1933 and applicable
state securities laws; and provided further that the prospective transferee or purchaser shall execute the Assignment of Warrant
attached hereto as Exhibit B and such other documents and make such representations, warranties, and agreements as may
be required solely to comply with the exemptions relied upon by the Company for the transfer or disposition of the Warrant or
Warrant Shares.

 

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(b)         If
the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant to
this Section 7 may not be effected without registration or qualification of this Warrant or such Warrant Shares, the Holder will
limit its activities in respect to such transfer or disposition as are permitted by law.

 

8.         NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the notice provisions contained in the Agreement. The Company shall provide the Holder with prompt written notice (i) immediately
upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment and (ii) at
least ten days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities directly
or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to the holders
of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being
provided to the Holder.

 

9.         AMENDMENT
AND WAIVER. The terms of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Holder.

 

10.         GOVERNING
LAW. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed
by, and construed and enforced in accordance with, the internal laws of the State of New York, without giving effect to the conflicts-of-law
principles thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Warrant (whether brought against a party hereto or its respective affiliates, directors, officers,
shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in
Hennepin County, Minnesota. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in Hennepin County, Minnesota, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law.

 

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11.         DISPUTE
RESOLUTION. A dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations via facsimile (a)
within two business days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder, as the
case may be, or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise
to such dispute. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price
or the Warrant Shares within three business days of such disputed determination or arithmetic calculation being submitted to the
Company or the Holder, as the case may be, then the Company shall, within two business days thereafter submit via facsimile (x)
the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and reasonably
acceptable to the Holder or (y) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent public
accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations
or calculations and notify the Company and the Holder of the results no later than ten business days from the time it receives
the disputed determinations or calculations. Such investment bank’s or accountant’s determination or calculation,
as the case may be, shall be binding upon all parties absent manifest error.

 

12.         ACCEPTANCE.
Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained
herein.

 

13.         CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)         “Bloomberg”
means Bloomberg Financial Markets.

 

(b)         “Common
Stock” means (i) the Company’s common stock, par value $0.01 per share, and (ii) any share capital into which
such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(c)         “Principal
Market” means the primary national securities exchange on which the Common Stock is then traded.

 

(d)         “SEC”
means the U.S. Securities and Exchange Commission.

 

(e)         “Trading
Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal Market, (ii) if the
Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which trading occurs on
any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any business day.

 

(f)         “Weighted
Average Price” means, for any security as of any date, (i) the dollar-volume weighted-average price for such security
on the Principal Market during the period beginning at 9:30 a.m., New York City time, and ending at 4:00 p.m., New York City time,
as reported by Bloomberg or (ii) if the foregoing does not apply, the dollar-volume weighted-average price of such security in
the principal over-the-counter market for such security during the period beginning at 9:30 a.m., New York City time, and ending
at 4:00 p.m., New York City time, as reported by Bloomberg, or (iii) if no dollar-volume weighted-average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any
of the market makers for such security as reported in OTC Markets. If the Weighted Average Price cannot be calculated for such
security on such date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the
fair market value of such security, then such dispute shall be resolved pursuant to Section 11 with the term “Weighted Average
Price” being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted
for any share dividend, share split or other similar transaction during such period.

 

* 
*  *  *  *  *  *

 

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In
Witness Whereof, the Company has caused this Warrant to Purchase
Common Stock to be duly executed as of the Issuance Date set forth above.

 

	 	CREATIVE
    REALITIES, INC.
	 	 
	 	/s/
    John Walpuck
	 	John
    Walpuck
	 	Chief
    Financial Officer

 

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EXHIBIT
A

 

EXERCISE
NOTICE

 

[To
be executed by the registered holder to exercise this Warrant to Purchase Common Stock]

 

The Undersigned
holder hereby exercises the right to purchase_________________ of
the shares of Common Stock (“Warrant Shares”) of Creative Realities, Inc., a Minnesota corporation (the “Company”),
evidenced by the attached copy of the Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

	1.	Form
    of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as (check one):

 

	 	☐	a
    cash exercise with respect to                                   Warrant
    Shares; and/or
	 	 	 
	 	☐	a
    “Cashless Exercise” with respect to                                      
    Warrant Shares.

 

	2.	Payment
    of Exercise Price. In the event that the holder has elected a cash exercise with respect to some or all of the Warrant
    Shares to be issued pursuant hereto, the holder shall pay the Aggregate  Exercise Price in the sum of $                 to
    the Company in accordance with the terms of the Warrant.
	 	
	3.	Delivery
    of Warrant Shares. The Company shall deliver to the holder                                 Warrant
    Shares in accordance with the terms of the Warrant.

 

Date:
_________________________

 

	 	 
	 	(Print
    Name of Registered Holder)
	 	 	 
	 	By:	
	 	Name:	 
	 	Title:	

 

 

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EXHIBIT
B

 

ASSIGNMENT
OF WARRANT

 

[To
be signed only upon authorized transfer of the Warrant]

 

For
Value Received, the undersigned hereby sells, assigns, and transfers unto ____________________ the right to
purchase ________________ shares of common stock of Creative Realities, Inc., to which the within Warrant to Purchase
Common Stock relates and appoints ____________________, as attorney-in-fact, to transfer said right on the books of Creative
Realities, Inc. with full power of substitution and re-substitution in the premises. By accepting such transfer, the
transferee has agreed to be bound in all respects by the terms and conditions of the within Warrant.

 

Dated:_______________

 

	 	 
	 	(Signature)
    *
	 	 
	 	 
	 	(Name)
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	(Social
    Security or Tax Identification No.)

 

*
The signature on this Assignment of Warrant must correspond to the name as written upon the face of the Warrant to Purchase Common
Stock in every particular without alteration or enlargement or any change whatsoever. When signing on behalf of a corporation,
partnership, trust or other entity, please indicate your position(s) and title(s) with such entity.

 

 

9Exhibit 10.3

 

Execution
Version

 

NEITHER
THIS NOTE NOR ANY OF THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE
SECURITIES LAWS OF ANY OTHER JURISDICTION. BY ACQUIRING THIS NOTE, THE HOLDER AGREES TO NOT SELL OR OTHERWISE DISPOSE OF THIS
NOTE OR ANY SECURITIES INTO WHICH IT MAY BE CONVERTED WITHOUT REGISTRATION OR THE APPLICABILITY OF AN EXEMPTION FROM REGISTRATION
UNDER THE AFORESAID ACTS AND THE RULES AND REGULATIONS THEREUNDER.

 

SECURED
CONVERTIBLE PROMISSORY NOTE

 

	$1,000,000.00	February 18, 2015

 

For
Value Received, Creative Realities, Inc., a Minnesota corporation
(the “Company”), Creative Realities, Inc., a Utah corporation, Creative Realities, LLC, a Delaware limited
liability company, and Wireless Ronin Technologies Canada, Inc., a Canada corporation (collectively, “Makers”),
hereby jointly and severally promise to pay to the order of Mill City Ventures III, Ltd., or its successors, heirs or assigns
(“Holder”), in lawful money of the United States of America, the principal sum of $1,000,000, together with
interest on the outstanding principal amount under this Secured Convertible Promissory Note (this “Note”) outstanding
from time to time. This Note is being issued by Maker in connection with the execution and delivery of that certain Securities
Purchase Agreement (the “Purchase Agreement”) dated the date hereof by and between Maker and Holder. Capitalized
terms not defined herein shall have the meaning set forth in the Purchase Agreement.

 

1.         Interest.
Unless adjusted under Section 6.3, the interest on the outstanding principal amount of this Note shall accrue from the date hereof
until payment in full at an annual rate equal to twelve percent (12%) (the “Interest Rate”), be payable monthly
in arrears within five Business Days of the end of each calendar month after the date hereof (and commencing on March 6, 2015),
and upon the Maturity Date, as defined below, or conversion or repayment pursuant to Section 3 or 4. Interest shall be calculated
on the basis of a 365-day year, based on the actual number of days elapsed, and shall be payable in cash.

 

2.         Maturity
Date. Unless converted by Holder pursuant to the terms of Section 4, the principal amount of this Note, together with any
remaining accrued but unpaid interest thereon, shall be due and payable in full on August 18, 2016 (“Maturity Date”).

 

3.         Prepayment.

 

3.1         Optional
Prepayment. At any time Maker may prepay all or any portion of the outstanding principal balance or accrued but
unpaid interest hereunder upon at least ten days prior written notice to Holder, for a price equal to the sum (the
“Prepayment Amount”) of (i) the then-outstanding principal to be prepaid, plus (ii) all accrued but unpaid
interest thereon; provided, however, that any principal amount prepaid under this Section must be accompanied by the payment
of a minimum amount of interest that, when aggregated with earlier payments of interest hereunder, equals at least 365 days
of interest thereon calculated at the Interest Rate.

 

    	 

    	 

    

 

3.2         Qualified
Financings. The Company shall provide Holder with at least ten days prior written notice before consummating an
offering of equity securities, equity-linked securities, or debt securities of the Company in which the gross proceeds to be
received by the Company equal, as of the date of such notice, and when aggregated with all prior financings involving the
sale of equity securities, equity-linked securities, or debt securities of the Company from and after the date hereof (but
exclusive of the amounts borrowed under this Note), at least $3.5 million (a “Qualified Financing”).
Within the ten-day period after the giving of such notice by the Company, Holder shall determine at its option whether to
convert this Note pursuant to Section 4 or to elect repayment under this provision. If Holder fails to give written notice of
any such election prior to the expiration of the ten-day period, then Holder shall be deemed to have elected repayment. If
repayment is elected (or deemed elected) by Holder, the Company shall pay to Holder, at the time of consummation of the
Qualified Financing, all then-outstanding principal of this Note plus all accrued and unpaid interest thereon.

 

3.3         Change
in Control Transaction. The Company shall provide Holder with at least ten days prior written notice before consummating a
Change in Control Transaction (as defined below). Within the ten-day period after the giving of such notice by the Company, Holder
shall determine at its option whether to convert this Note pursuant to Section 4 or to elect repayment under this provision. If
Holder fails to give written notice of any such election prior to the expiration of the ten-day period, then Holder shall be deemed
to have elected repayment. For purposes of this Note, a “Change in Control Transaction” will mean the occurrence,
in a single transaction or in a series of related transactions, of any one or more of the following events: (i) the sale of a
majority of the assets of the Company; (ii) any Exchange Act Person, as defined below, becomes the owner, directly or indirectly,
of securities of the Company representing more than 50% of the combined voting power of the Company’s then-outstanding securities
by virtue of a merger, consolidation or similar transaction; or (iii) there is consummated a merger, consolidation or similar
transaction involving the Company (specifically including any triangular merger or consolidation) and, immediately after the consummation
of such transaction, the shareholders of the Company immediately prior thereto do not own, directly or indirectly, either (A)
outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving entity in such
merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the
surviving entity in such merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control Transaction
will not be deemed to occur (1) on account of the acquisition of securities of the Company by an investor, any affiliate thereof
or any other Exchange Act Person acquiring the Company’s securities in a transaction or series of related transactions the
primary purpose of which is to obtain financing through the issuance of equity securities, or (2) solely because or to the extent
that the level of ownership held by any Exchange Act Person exceeds the designated percentage threshold of the outstanding voting
securities as a result of a repurchase or other acquisition of voting securities by the Company, thereby reducing the number of
shares outstanding. For purposes of this Note, “Exchange Act Person” shall mean any corporation, partnership,
incorporated entity, unincorporated entity or association, or trust (each a “Person”), plus any individual
natural person or “group” within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, together
with any affiliates of the foregoing; provided, however, that “Exchange Act Person” will not include: (i) the Company
or any subsidiary of the Company; (ii) any employee benefit plan of the Company or any subsidiary of the Company or any trustee
or other fiduciary holding securities under an employee-benefit plan of the Company or any subsidiary of the Company; (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities; (iv) any Person owned, directly or indirectly,
by the shareholders of the Company in substantially the same proportions as their ownership of capital stock of the Company;
or (v) any Person, individual natural person or “group” that, as of the original issue date of this Note and together
with any affiliates of such Person, individual natural person or group, is the owner, directly or indirectly, of securities of
the Company representing more than 50% of the combined voting power of the Company’s then-outstanding securities.

 

    	2

    	 

    

 

4.         Conversion;
Repayment.

 

4.1         Optional
Conversion. The unpaid principal amount of this Note or any accrued but unpaid interest thereon may at any time be
converted, in whole or in part from time to time, at the option of the Holder, into shares of Common Stock at a conversion price
equal to $0.33 per share (the “Conversion Price”), subject, however, to adjustment pursuant to Section 4.3.

 

4.2         Conversion
Procedure. In order for Holder to convert this Note into shares of Common Stock pursuant to Section 4.1, Holder shall surrender
this Note to the Company accompanied by an executed conversion notice, the form of which is attached hereto as Exhibit A
(the “Conversion Notice”). The Conversion Notice shall state the name or names (with address(es)) in which
the certificate(s) for shares of Common Stock issuable upon such conversion (the “Conversion Shares”) shall
be issued, and the amount of principal and accrued interest to be converted. On or before the third Trading Day (the “Conversion
Share Delivery Date”) following the date on which the Company shall have received the Conversion Notice, Make shall
(or direct its transfer agent to) either (1) deliver the Conversion Shares to Holder by crediting the account of Holder’s
prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission system if the Company is then a
participant in such system and either (x) there is an effective registration statement permitting the resale of the Conversion
Shares by the Holder or (y) the Conversion Shares are eligible for resale without volume or manner-of-sale limitations pursuant
to Rule 144 (delivery pursuant to this clause (1) being referred to as “DWAC Delivery”), or otherwise (2) issue
and dispatch by overnight courier to the address as specified in the Conversion Notice, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled
pursuant to such conversion. If the Company is able to deliver Conversion Shares through DWAC Delivery but fails to deliver such
Conversion Shares by the Conversion Share Delivery Date, the Company shall pay to Holder, in cash as liquidated damages and not
as a penalty, $20 per Trading Day for each $1,000 of Conversion Shares subject to such delay.

 

4.3         Equitable
Adjustment. If the Company, at any time while this Note is outstanding, shall (a) pay a stock dividend or otherwise make
a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine
(including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue
shares of capital stock by reclassification, then the Conversion Price shall be equitably adjusted based upon the
proportionate increase of outstanding shares resulting from such action. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of shareholders entitled to receive such dividend,
distribution or actual conversion and shall become effective immediately after the effective date in the case of a
subdivision, conversion, combination or re-classification; provided, however, that the issuance by the Company, to any
employees, directors or consultants of the Company, of any options or warrants to purchase Common Stock shall not in
any event result in an adjustment of the Conversion Price pursuant to this paragraph.

 

    	3

    	 

    

 

4.4         Beneficial
Ownership Limitations. The Company shall not effect any conversion of the Note, and a Holder shall not have the right to
convert any portion of the Note, to the extent that, after giving effect to the conversion set forth on the applicable Notice
of Conversion, such Holder (together with such Holder’s “affiliates,” as such term is defined in Rule 405
under the Securities Act, and any Persons acting as a group together with such Holder or any of such Holder’s
affiliates) would beneficially own in excess of the Beneficial Ownership Limitation, as defined below. For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include
the number of shares of Common Stock issuable upon conversion of the Note with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining
unconverted portion of the Note beneficially owned by such Holder or any of its affiliates and (ii) exercise or conversion of
the unexercised or unconverted portion of any other securities of the Company that are subject to a limitation on conversion
or exercise analogous to the limitation contained herein (including without limitation the Warrants) beneficially owned by
such Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. To ensure compliance with this
restriction, each Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such
Notice of Conversion has not violated the restrictions set forth in this Section and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act.

 

For
purposes of this Section, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company or (iii)
a more recent written notice delivered to Holder by the Company or the transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm to such 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 the Note, by such Holder
or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of Conversion Shares upon conversion of any portion of the Note by the Holder. Upon no fewer than 61 days’
prior written notice to the Company, a Holder may increase or decrease the Beneficial Ownership Limitation provisions of this
Section applicable to its conversion rights under this Note, provided that the Beneficial Ownership Limitation in no event exceeds
9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of Conversion Shares
upon conversion of this Note and the provisions of this Section shall continue to apply. Any such increase or decrease will not
be effective until the 61st day after such notice is delivered to the Company and shall only apply to such Holder and no other
holder of a similar promissory note of the Company. The limitations contained in this paragraph shall apply to a successor holder
of this Note.

 

    	4

    	 

    

 

5.         No
Fractional Shares. No fractional shares of Common Stock shall be issuable upon conversion of this Note, or upon the payment
of any interest hereunder, and the amount of such shares of Common Stock issuable shall be rounded down to the nearest whole number
of shares of Common Stock.

 

6.         Default.

 

6.1         Events
of Default. The occurrence of any one or more of the following events shall constitute an event of default hereunder
(“Event of Default”):

 

(a)         Maker
fails to make any payment of principal when due under this Note, which failure continues for a period of five Business Days;

 

(b)         Maker
fails to make any payment of interest when due under this Note, which failure continues for a period of five Business Days;

 

(c)         Maker
fails to observe and perform any other covenant or agreement on the Maker’s part to be observed or performed under this
Note, which failure continues for a period of five Business Days after notice of such failure has been delivered to Maker;

 

(d)         Maker
fails to observe and perform any of the covenants or agreements on their part to be observed or performed under any Transaction
Document and such failure shall continue for more than five Business Days after notice of such failure has been delivered to Maker;

 

(e)         the
Company (on a consolidated basis with all of its Subsidiaries) fails to maintain a 2:1 ratio of (i) accounts receivable plus cash
to (ii) the outstanding principal amount of the Note, as measured at the end of each month during which there is an outstanding
principal amount under this Note, beginning as of April 30, 2015; provided, however, that Maker shall have a 15-day period in
which to cure any default occurring under this paragraph (e) by delivering a consolidated balance sheet to Holder, certified by
the Company, evidencing compliance with the above-described ratio;

 

(f)         the
Company admits in writing its inability to pay its debts generally as they become due, files a petition in bankruptcy or a
petition to take advantage of any insolvency act, makes an assignment for the benefit of its creditors, consents to the
appointment of a receiver of itself or of the whole or any substantial part of its property, on a petition in bankruptcy
filed against it be adjudicated a bankrupt, or files a petition or answer seeking reorganization or arrangement under the
federal bankruptcy laws or any other applicable law or statute of the United States of America or any state
thereof;

 

(g)         a
court of competent jurisdiction enters an order, judgment or decree appointing, without the consent of the Company, a
receiver of the Company or of the whole or any substantial part of its property, or approving a petition filed against the
Company seeking reorganization or arrangement of the Company under the federal bankruptcy laws or any other applicable
law or statute of the United States of America or any state thereof, and such order, judgment or decree shall not be vacated
or set aside or stayed within 60 days from the date of entry thereof; or

 

    	5

    	 

    

 

(h)         any
court of competent jurisdiction assumes custody or control of the Company or of the whole or any substantial part of its
property under the provisions of any other law for the relief or aid of debtors, and such custody or control is not be
terminated or stayed within 90 days from the date of assumption of such custody or control.

 

6.2         Notice
by Maker. Maker shall notify Holder in writing as soon as practicable under the circumstances, but in any event within
five days after the occurrence of any Event of Default of which Maker obtains actual knowledge.

 

6.3         Remedies.
Upon the occurrence of any Event of Default, (i) the entire unpaid principal balance hereunder plus all interest accrued and
unpaid thereon and all other sums due and payable to Holder under this Note shall, at the option of Holder, become due and
payable immediately without presentment, demand, notice of nonpayment, protest, notice of protest or other notice of
dishonor, all of which are hereby expressly waived by Maker and (ii) the Interest Rate on any principal balance and accrued
but unpaid interest shall increase to an annual rate equal to eighteen percent (18%). To the extent permitted by law, Maker
waives the right to and stay of execution and the benefit of all exemption laws now or hereafter in effect. In addition to
the foregoing, upon the occurrence of any Event of Default, Holder may forthwith exercise singly, concurrently, successively
or otherwise any and all rights and remedies available to Holder at law, equity or otherwise.

 

6.4         Remedies
Cumulative, Etc. No right or remedy conferred upon or reserved to Holder under this Note, or now or hereafter existing at
law or in equity or by statute or other legislative enactment, is intended to be exclusive of any other right or remedy, and
each and every such right or remedy shall be cumulative and concurrent, and shall be in addition to every other such right or
remedy, and may be pursued singly, concurrently, successively or otherwise, at the sole discretion of Holder, and shall not
be exhausted by any one exercise thereof but may be exercised as often as occasion therefor shall occur. No act of Holder
shall be deemed or construed as an election to proceed under any one such right or remedy to the exclusion of any other such
right or remedy; furthermore, each such right or remedy of Holder shall be separate, distinct and cumulative and none shall
be given effect to the exclusion of any other.

 

6.5         Costs
and Expenses. Maker will pay upon demand all reasonable costs and expenses of Holder, including reasonable
attorneys’ fees, incurred by Holder in enforcing its rights and remedies hereunder. If Holder brings suit (or files any
claim in any bankruptcy, reorganization, insolvency or other proceeding) to enforce any of its rights hereunder and shall be
entitled to judgment (or other recovery) in such action (or other proceeding), then Holder may recover, in addition to all
other amounts payable hereunder, its reasonable expenses in connection therewith, including reasonable attorneys’ fees,
and the amount of such expenses shall be included in such judgment (or other form of award).

 

    	6

    	 

    

 

7.         Exchange
or Replacement of Note.

 

7.1         Exchange.
At its option, Holder may in person or by duly authorized attorney surrender this Note for exchange at the office of Maker,
and at the expense of Maker receive in exchange therefor a new Note in the same aggregate principal amount as the aggregate
unpaid principal amount of the Note so surrendered and bearing interest at the same annual rate as the Note so surrendered,
each such new Note to be dated as of the original issue date and to be in such principal amount and payable to such person or
persons, or order, as such holder may designate in writing.

 

7.2         Replacement.
Upon receipt by Maker of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Note and (in case
of loss, theft or destruction) of indemnity satisfactory to it, and upon surrender and cancellation of this Note, if
mutilated, Maker will make and deliver a new Note of like tenor in lieu of this Note.

 

8.         General
Provisions.

 

8.1         Amendments,
Waivers and Consents. This Note may be amended, modified or supplemented, and waiver or consents to departures from the provisions
of the Note may be given, if Maker and Holder both consent or agree in writing to the amendment, modification, waiver or consent.

 

8.2         Severability.
In the event that for any reason one or more of the provisions of this Note or their application to any person or circumstance
shall be held to be invalid, illegal or unenforceable in any respect or to any extent, such provision shall nevertheless remain
valid, legal and enforceable in all such other respects and to such extent as may be permissible. In addition, any such invalidity,
illegality or unenforceability shall not affect any other provisions of this Note, but this Note shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

8.3         Assignment;
Binding Effect. Maker may not assign this Note without the prior written consent of Holder. Any attempted assignment in violation
of this Section shall be null and void. Subject to the foregoing, this Note inures to the benefit of Holder, its successors and
assigns, and binds each of the Maker, and its successors and permitted assigns. The words “Holder” and “Maker”
herein shall be deemed and construed to include such respective successors and assigns.

 

8.4         Notice.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable courier service with charges prepaid, or (iv) transmitted by
hand delivery or facsimile, addressed as set forth on the signature pages hereto or to such other address as such party shall
have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated on the signature page hereto (if delivered on a Business Day during normal
business hours where such notice is to be received), or the first Business Day following such delivery (if delivered other than
on a Business Day during normal business hours where such notice is to be received) or (b) on the second Business Day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur.

 

    	7

    	 

    

 

8.5         Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note will be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the conflicts-of-law
principles thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Note (whether brought against a party hereto or its respective affiliates, directors, officers,
shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in
Hennepin County, Minnesota. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in Hennepin County, Minnesota, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law.

 

8.6         Waiver
of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH MAKER AND HOLDER HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS NOTE OR ANY OTHER TRANSACTION DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

 

* * * * * * *

 

    	8

    	 

    

 

In
Witness Whereof, Maker has executed and delivered this Note as of
the date first stated above.

 

	 
	MAKER
	 	 	 
	 	CREATIVE
    REALITIES, INC.
	 	 	 
	 	By:
     	/s/
    John Walpuck  
	 	 	John
    Walpuck  
	 	 	Chief
    Financial Officer
	 	 	 
	 	BROADCAST
    INTERNATIONAL, INC.
	 	 	 
	 	By:
     	/s/
    John Walpuck  
	 	 	John
    Walpuck  
	 	 	Chief
    Financial Officer
	 	 	 
	 	CREATIVE
    REALITIES, LLC
	 	 	 
	 	By:
     	/s/
    John Walpuck  
	 	 	John
    Walpuck  
	 	 	Chief
    Financial Officer
	 	 	 
	 	WIRELESS
    RONIN TECHNOLOGIES CANADA, INC.
	 	 	 
	 	By:
     	/s/
    John Walpuck  
	 	 	John
    Walpuck
	 	 	Chief
    Financial Officer

 

    	9

    	 

    

 

EXHIBIT
A

 

CREATIVE
REALITIES, INC.

SECURED
CONVERTIBLE PROMISSORY NOTE

 

CONVERSION
NOTICE

 

To
Whom It May Concern:

 

The
undersigned holder of this Note hereby exercises the option to convert this Note, plus accrued and unpaid interest, in whole or
in part as set forth below, into shares of common stock of Creative Realities, Inc., a Minnesota corporation, in accordance with
the terms of the Secured Convertible Promissory Note, dated February 18, 2015, and directs that the shares issuable and deliverable
upon the conversion be issued in the name of and delivered to the undersigned unless a different name has been indicated below.

 

Dated:
_____________________

 

Amount
of principal to be converted: $________________________

 

Amount
of accrued but unpaid interest: $______________________ 

 

If
shares are to be issued otherwise than to owner, please provide the Tax Identification Number of Transferee:

 

	 	 
		Signature of
                                                                            Holder

 

(If
applicable, please print name and address of transferee (including zip code))

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

 

 10

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