Document:

Exhibit 10.1

 

Scholar
Rock, INC.

 

EMPLOYMENT
AGREEMENT

 

This Employment
Agreement (“Agreement”) is made as of September 19, 2022, between Scholar Rock, Inc., a Delaware corporation (the
 “Company”), and Jay Backstrom (the “Employee”) and is effective commencing on the Employee’s
first day of employment at the Company (the “Effective Date”), which is expected to be on or around September 20,
2022.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1.            
Employment.

 

(a)              
Term. The term of this Agreement shall commence on the Effective Date and continue until terminated in accordance with
the provisions hereof (the “Term”). The Employee’s employment with the Company will be “at will,”
meaning that the Employee’s employment may be terminated by the Company or the Employee at any time and for any reason subject
to the terms of this Agreement.

 

(b)              
Position and Duties. The Employee shall initially serve as the CEO Elect to the Company and Scholar Rock Holding Corporation
(“SR Holding”) during the period between the Effective Date and October 20, 2022 (the “CEO Start Date”),
during which time he shall report to the Board of Directors of SR Holding (the “Board”) and provide advisory services
as may be requested by the Board and the current President & Chief Executive Officer, including transition and onboarding activities.
Effective as of the CEO Start Date and for the remainder of the Term, the Employee shall serve as the President & Chief Executive
Officer (the “CEO”) of the Company and SR Holding and shall have such duties and authorities as may from time to time
be prescribed by the Board. For the avoidance of doubt, after the CEO Start Date, the Employee shall be at all times during the Term
the highest executive officer of the Company. In addition, SR Holding shall cause the Employee to be nominated for election to the Board
and to be recommended to the stockholders for election to the Board as long as the Employee remains the CEO; provided that the
Employee agrees the Employee shall be deemed to have resigned from the Board and from any related position upon ceasing to serve as CEO
for any reason and shall promptly execute any documentation requested by the Company to confirm such resignations. The Employee shall
devote the Employee’s full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing,
the Employee may serve on other boards of directors, in each instance with the approval of the Board, or engage in religious, charitable
or other community activities as long as such services and activities do not interfere with the Employee’s performance of the Employee’s
duties to the Company as provided in this Agreement. The Company acknowledges that Employee is currently serving as a board member of
the companies set forth on the attached Exhibit A and that it will recommend to the Board that he be permitted continue to serve
in such roles during the Term as long as such services do not create a conflict of interest or otherwise interfere with the Employee’s
performance of his duties to the Company as provided in this Agreement.

 

(c)              
Work Location. During the Term, the Employee’s primary work location will be the Company’s offices in Massachusetts;
provided that the Employee may work from his home office in accordance with the Company’s policies and procedures relating
to remote work, as may be in effect from time to time.

 

2.            
Compensation and Related Matters.

 

(a)              
Base Salary. During the Term, the Employee’s annual base salary shall be $600,000. The Employee’s base salary
shall be reviewed annually by the Board or the Compensation Committee of the Board (the “Compensation Committee”),
with upward adjustment in the sole discretion of the Board or the Compensation Committee. The base salary in effect at any given time
is referred to herein as “Base Salary.” The Base Salary shall be payable in a manner that is consistent with the Company’s
usual payroll practices.

 

     

     

    

 

(b)              
Incentive Compensation. During the Term, the Employee shall be eligible to receive cash incentive compensation as determined
by the Board or the Compensation Committee from time to time. The Employee’s target annual incentive compensation shall be sixty
percent (60%) of the Employee’s Base Salary; provided that any incentive compensation for calendar year 2022 will be prorated
based on the Effective Date. The target annual incentive compensation in effect at any given time is referred to herein as the “Target
Annual Incentive Compensation”. Except as otherwise provided herein, to earn incentive compensation, the Employee must be employed
by the Company on the day such incentive compensation is paid.

 

(c)              
Expenses. The Employee shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by the Employee
during the Term in performing services hereunder, in accordance with the policies and procedures then in effect and established by the
Company.

 

(d)              
Other Benefits. During the Term, the Employee shall be eligible to participate in or receive benefits under the Company’s
employee benefit plans in effect from time to time, subject to the terms of such plans.

 

(e)              
Vacations. During the Term, the Employee shall be entitled to paid vacation in accordance with the Company’s policies
and procedures as may be amended from time to time. The Employee shall also be entitled to all paid holidays given by the Company in
accordance with the policies and procedures then in effect and established by the Company.

 

(f)               
Equity. In connection with the commencement of the Employee’s employment and as an inducement grant consistent
with the requirements of NASDAQ Stock Market Rule 5635(c), subject to the approval of the Board or the Compensation Committee, the Employee
shall be granted a stock option to purchase 1,000,000 shares of SR Holding’s common stock (the “Stock Option Award”)
at an exercise price per share equal to the closing price of SR Holding’s common stock on the Nasdaq Global Market on the date
of grant (or if no closing market price is reported for such date, the closing market price on the immediately preceding date for which
a closing market price is reported). The Stock Option Award will vest with respect to 25% of the shares of SR Holding’s common
stock underlying the Stock Option Award on the first anniversary of the Effective Date (the “Vesting Commencement Date”),
and the remaining 75% of the shares of SR Holding’s common stock underlying the Stock Option Award shall vest in 12 equal quarterly
installments following the Vesting Commencement Date, subject to the Employee’s continued Service Relationship (as defined in the
Scholar Rock Holding Corporation’s 2022 Inducement Equity Plan (as amended and/or restated from time to time, the “Plan”))
with SR Holding through each applicable vesting date. The Stock Option Award will be subject to all terms and conditions and other provisions
set forth in the Plan and a Stock Option Award (such agreement, with the Plan, the “Equity Documents”), which the
Employee will be required to sign as a condition to receiving the Stock Option Award. The Employee may also be eligible to receive future
equity awards, in the sole discretion of the Board or the Compensation Committee, including any annual equity award that may be granted
in calendar year 2023.

 

3.            
Termination. During the Term, the Employee’s employment hereunder may be terminated without any breach of this Agreement
under the following circumstances:

 

(a)              
Death. The Employee’s employment hereunder shall terminate upon the Employee’s death.

 

(b)              
Termination by Company for Cause. The Company may terminate the Employee’s employment hereunder for Cause. For purposes
of this Agreement, “Cause” shall mean: (i) conduct by the Employee constituting a material act of misconduct in connection
with the performance of the Employee’s duties, including, without limitation, misappropriation of funds or property of the Company
or any of its subsidiaries or affiliates other than the occasional, customary and de minimis use of Company property for personal purposes;
(ii) the commission by the Employee of any felony or a misdemeanor involving moral turpitude, deceit, dishonesty or fraud, or any conduct
by the Employee that would reasonably be expected to result in material injury or reputational harm to the Company or any of its subsidiaries
or affiliates if the Employee were retained in the Employee’s position; (iii) continued intentional or willful non-performance
by the Employee of the Employee’s duties hereunder (other than by reason of the Employee’s physical or mental illness, incapacity
or disability) which has continued for more than 30 days following written notice of such non-performance from the Board; (iv) a material
breach by the Employee of any of the Continuing Obligations (as defined below) which has not been cured (or is incapable of or otherwise
cannot be cured) within 30 days after the Board gives the Employee written notice regarding such breach; (v) a material violation by
the Employee of the Company’s written employment policies which has not been cured (or which is incapable of or otherwise cannot
be cured) within 30 days after the Board gives the Employee written notice regarding such violation; or (vi) failure to cooperate with
a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Board
to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant to such investigation
or the inducement of others to fail to cooperate or to produce documents or other materials in connection with such investigation. The
definition of Cause shall not include dissatisfaction of job performance as a basis to terminate the Employee’s employment for
Cause under this Agreement, regardless of whether such terminology applies to other agreements between the Employee and the Company.

 

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(c)              
Termination Without Cause. The Company may terminate the Employee’s employment hereunder at any time without Cause.
Any termination by the Company of the Employee’s employment under this Agreement which does not constitute a termination for Cause
under Section 3(b) and does not result from the death of the Employee under Section 3(a) shall be deemed a termination without Cause.

 

(d)              
Termination by the Employee. The Employee may terminate the Employee’s employment hereunder at any time for any reason,
including but not limited to Good Reason. For purposes of this Agreement, “Good Reason” shall mean that the Employee
has complied with the Good Reason Process (hereinafter defined) following the occurrence of any of the following events without the Employee’s
consent: (i) a material diminution in the Employee’s responsibilities, authority or duties or, following the CEO Start Date, any
change in his reporting line to anyone other than the Board; (ii) removal from the Board without Cause during the Term following the
CEO Start Date; (iii) a material diminution in the Employee’s Base Salary or any reduction in Employee’s Target Annual Incentive
Compensation except for across-the-board salary reductions based on the Company’s financial performance similarly affecting all
of the C-suite leadership executives of the Company; (iv) a change of more than 30 miles in the geographic location at which the Employee
is required to primarily provide services to the Company; (v) the material breach by the Company of this Agreement; or (vi) any directive
to Employee by the Board to engage in a willful violation of the law. “Good Reason Process” shall mean that (i) the
Employee reasonably determines in good faith that a “Good Reason” condition has occurred; (ii) the Employee notifies the
Company in writing of the first occurrence of the Good Reason condition within 60 days of the first occurrence of such condition; (iii)
the Employee cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the
 “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to
exist; and (v) the Employee terminates the Employee’s employment within 60 days after the end of the Cure Period. If the Company
cures the Good Reason condition during the Cure Period, Good Reason shall be deemed not to have occurred.

 

(e)              
Notice of Termination. Except for termination as specified in Section 3(a), any termination of the Employee’s employment
by the Company or any such termination by the Employee shall be communicated by written Notice of Termination to the other party hereto.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon.

 

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(f)               
Date of Termination. For purposes of this Agreement, “Date of Termination” shall mean: (i) if the Employee’s
employment is terminated by the Employee’s death, the date of the Employee’s death; (ii) if the Employee’s employment
is terminated by the Company for Cause under Section 3(b), the date on which a Notice of Termination is given; (iii) if the Employee’s
employment is terminated by the Company without Cause under Section 3(c), the date on which a Notice of Termination is given or the date
otherwise specified by the Company in the Notice of Termination; (iv) if the Employee’s employment is terminated by the Employee
under Section 3(d) without Good Reason, the date on which a Notice of Termination is given or the date otherwise specified by the Employee
in the Notice of Termination, and (v) if the Employee’s employment is terminated by the Employee under Section 3(d) for Good Reason,
the date on which a Notice of Termination is given after the end of the Cure Period. Notwithstanding the foregoing, in the event that
the Employee gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration
shall not result in a termination by the Company for purposes of this Agreement.

 

4.            
Compensation Upon Termination.

 

(a)              
Termination Generally. If the Employee’s employment with the Company is terminated for any reason, the Company shall
pay or provide to the Employee (or to the Employee’s authorized representative or estate) (i) any Base Salary earned through the
Date of Termination, unpaid expense reimbursements (subject to, and in accordance with, Section 2(c) of this Agreement) and unused vacation
that accrued through the Date of Termination on or before the time required by law but in no event more than 30 days after the Employee’s
Date of Termination; and (ii) any vested benefits the Employee may have under any employee benefit plan of the Company through the Date
of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans (collectively,
the “Accrued Benefit”).

 

(b)              
Termination by the Company without Cause or by the Employee for Good Reason. During the Term, if the Employee’s employment
is terminated by the Company without Cause as provided in Section 3(c), or the Employee terminates the Employee’s employment for
Good Reason as provided in Section 3(d), then the Company shall pay the Employee the Employee’s Accrued Benefit. In addition, subject
to the Employee signing a separation agreement in a form and manner satisfactory to the Company, containing, among other provisions,
a general release of claims in favor of the Company and related persons and entities, a reaffirmation of all of the Employee’s
Continuing Obligations (as defined below), and, in the Company’s sole discretion, a one-year post employment noncompetition agreement,
and shall provide that if Employee breaches any of the Continuing Obligations, all payments of the Severance Amount shall immediately
cease (the “Separation Agreement and Release”) and the Separation Agreement and Release becoming irrevocable and fully
effective, all within 60 days after the Date of Termination (or such shorter time period provided in the Separation Agreement and Release),
which shall include a seven (7) business day revocation period:

 

(i)                
the Company shall pay the Employee an amount equal to 12 months of the Employee’s Base Salary plus (B) the Employee’s
Prorated Incentive Compensation (the “Severance Amount”); provided in the event the Employee is entitled to
any payments pursuant to the Restrictive Covenant Agreement, the Severance Amount received in any calendar year will be reduced by the
amount the Employee is paid in the same such calendar year pursuant to the Restrictive Covenant Agreement (the “Restrictive
Covenant Agreement Setoff”). For purposes of this Agreement, “Prorated Incentive Compensation” shall mean
the Target Annual Incentive Compensation the Employee would have been entitled to receive in the fiscal year of the Date of Termination
prorated by the number of days the Employee was employed by the Company during the fiscal year of the Date of Termination; for the avoidance
of doubt, in no event shall “Prorated Incentive Compensation” include any sign-on bonus, retention bonus, or any other special
bonus. Notwithstanding the foregoing, if the Employee breaches any of the Continuing Obligations, all payments of the Severance Amount
shall immediately cease;

 

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(ii)             
if the Employee was participating in the Company’s group health plan immediately prior to the Date of Termination and elects
COBRA health continuation, then the Company shall, for the period of 12 months following the Date of Termination or the Employee’s
COBRA health continuation period, whichever is shorter, pay the cost of the monthly employer contribution (either by direct payment to
the group health plan provider or the COBRA provider or by reimbursing the Employee for such cost) that the Company would have made to
provide health insurance to the Employee if the Employee had remained employed by the Company; provided, however, if the Company
determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially
violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert
such payments to payroll payments directly to the Employee for the time period specified above. Such payments shall be subject to tax-related
deductions and withholdings and paid on the Company’s regular payroll dates; and

 

(iii)           
notwithstanding anything to the contrary in the Equity Documents, twelve (12) months of all stock options and other stock-based
awards held by the Employee that are subject solely to time-based vesting (the “Time-Based Equity Awards”) shall immediately
accelerate and become fully vested and exercisable or nonforfeitable as of the later of (a) Date of Termination; and (b) the effective
date of the Separation Agreement and Release (the “Accelerated Vesting Date”); and

 

(iv)            
the amounts payable under Section 4(b)(i) and (ii), to the extent taxable, shall be paid out in substantially equal installments
in accordance with the Company’s payroll practice commencing within 60 days after the Date of Termination; provided, however,
that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount shall begin to be paid
in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a
catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination. Each payment pursuant to this
Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

5.            
Compensation Upon Termination after a Change in Control. The provisions of this Section 5 set forth certain terms of an
agreement reached between the Employee and the Company regarding the Employee’s rights and obligations upon the occurrence of a
Change in Control (as defined below) of the Company. These provisions are intended to assure and encourage in advance the Employee’s
continued attention and dedication to the Employee’s assigned duties and the Employee’s objectivity during the pendency and
after the occurrence of any such event. These provisions shall apply in lieu of, and expressly supersede, the provisions of Section 4(b)
regarding the Severance Amount and other benefits upon a termination of employment, if such termination of employment occurs within 3
months prior to or 18 months after the occurrence of the first event constituting a Change in Control. These provisions shall terminate
and be of no further force or effect beginning 18 months after the occurrence of a Change in Control.

 

(a)              
Change in Control. During the Term, if within 3 months prior to or 18 months after a Change in Control, the Employee’s
employment is terminated by the Company without Cause as provided in Section 3(c) or the Employee terminates the Employee’s employment
for Good Reason as provided in Section 3(d), then, subject to the signing of the Separation Agreement and Release by the Employee and
the Separation Agreement and Release becoming irrevocable and fully effective, all within 60 days after the Date of Termination (or such
shorter time period provided in the Separation Agreement and Release), which shall include a seven (7) business day revocation period:

 

(i)                
the Company shall pay the Employee a lump sum in cash in an amount equal to 1.5 times the sum of (A) the Employee’s Base
Salary (or the Employee’s Base Salary in effect immediately prior to the Change in Control, if higher than the Employee’s
then-current Base Salary) plus (B) the Employee’s Average Incentive Compensation (collectively, the “Change in Control
Payment”); provided that the Change in Control Payment shall be reduced by the amount of the Restrictive Covenant Agreement
Setoff, if applicable. For purposes of this Agreement, “Average Incentive Compensation” shall mean the Target Annual
Incentive Compensation the Employee would have been entitled to receive in the fiscal year of the Date of Termination (or the Employee’s
Target Annual Incentive Compensation in the fiscal year immediately prior to the Change in Control, if higher). For the avoidance of
doubt, in no event shall “Average Incentive Compensation” include any sign-on bonus, retention bonus or any other special
bonus;

 

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(ii)             
notwithstanding anything to the contrary in the Equity Documents, all Time-Based Equity Awards shall immediately accelerate and
become fully vested and exercisable or nonforfeitable as of the Accelerated Vesting Date; and

 

(iii)           
if the Employee was participating in the Company’s group health plan immediately prior to the Date of Termination and elects
COBRA health continuation, then the Company shall, for the period of 18 months following the Date of Termination or the Employee’s
COBRA health continuation period, whichever is shorter, pay the cost of the monthly employer contribution (either by direct payment to
the group health plan provider or the COBRA provider or by reimbursing the Employee for such cost) that the Company would have made to
provide health insurance to the Employee if the Employee had remained employed by the Company; provided, however, if the Company
determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially
violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert
such payments to payroll payments directly to the Employee for the time period specified above. Such payments shall be subject to tax-related
deductions and withholdings and paid on the Company’s regular payroll dates; and

 

(iv)            
The amounts payable under Section 5(a)(i) and (iii), to the extent taxable, shall be paid or commence to be paid within 60 days
after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar
year, such payment shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period.

 

(b)              
Additional Limitation.

 

(i)                
Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution
by the Company to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Internal Revenue Code of 1986, as amended (the
 “Code”) and the applicable regulations thereunder (the “Aggregate Payments”), would be subject
to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the
sum of all of the Aggregate Payments shall be $1.00 less than the amount at which the Employee becomes subject to the excise tax imposed
by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Employee receiving a higher
After Tax Amount (as defined below) than the Employee would receive if the Aggregate Payments were not subject to such reduction. In
such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with
the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G
of the Code: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based
payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments
all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before
any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c).

 

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(ii)             
For purposes of this Section 5(b), the “After Tax Amount” means the amount of the Aggregate Payments less all
federal, state, and local income, excise and employment taxes imposed on the Employee as a result of the Employee’s receipt of
the Aggregate Payments. For purposes of determining the After Tax Amount, the Employee shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to
be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality,
net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

 

(iii)           
The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to Section 5(b)(i) shall be made
by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed
supporting calculations both to the Company and the Employee within 15 business days of the Date of Termination, if applicable, or at
such earlier time as is reasonably requested by the Company or the Employee. Any determination by the Accounting Firm shall be binding
upon the Company and the Employee.

 

(c)              
Definitions. For purposes of this Section 5, the following terms shall have the following meanings:

 

“Change
in Control” shall mean any of the following:

 

(i)                
any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Act”) (other than the Company, any of its subsidiaries, or any trustee, fiduciary or other person or entity
holding securities under any employee benefit plan or trust of the Company or any of its subsidiaries), together with all “affiliates”
and “associates” (as such terms are defined in Rule 12b-2 under the Act) of such person, shall become the “beneficial
owner” (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing
50 percent or more of the combined voting power of the Company’s then outstanding securities having the right to vote in an election
of the Board (“Voting Securities”) (in such case other than as a result of an acquisition of securities directly from
the Company); or

 

(ii)             
the date a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board before the date of the appointment or election; or

 

(iii)           
the consummation of (A) any consolidation or merger of the Company where the stockholders of the Company, immediately prior to
the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule
13d-3 under the Act), directly or indirectly, shares representing in the aggregate more than 50 percent of the voting shares of the Company
issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any), or (B) any sale or other transfer
(in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of
the assets of the Company and its affiliates on a consolidated basis.

 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to have occurred for purposes of the foregoing clause (i) solely as the result
of an acquisition of securities by the Company which, by reducing the number of shares of Voting Securities outstanding, increases the
proportionate number of Voting Securities beneficially owned by any person to 50 percent or more of the combined voting power of all
of the then outstanding Voting Securities; provided, however, that if any person referred to in this sentence shall thereafter
become the beneficial owner of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar
transaction or as a result of an acquisition of securities directly from the Company) and immediately thereafter beneficially owns 50
percent or more of the combined voting power of all of the then outstanding Voting Securities, then a Change in Control shall be deemed
to have occurred for purposes of the foregoing clause (i).

 

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6.            
Section 409A.

 

(a)              
Anything in this Agreement to the contrary notwithstanding, if at the time of the Employee’s separation from service within
the meaning of Section 409A of the Code, the Company determines that the Employee is a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Employee becomes entitled to under this Agreement
on account of the Employee’s separation from service would be considered deferred compensation otherwise subject to the 20 percent
additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code,
such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one
day after the Employee’s separation from service, or (B) the Employee’s death. If any such delayed cash payment is otherwise
payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid
during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance
with their original schedule.

 

(b)              
All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or
incurred by the Employee during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively
practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which
the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect
the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or
other aggregate limitation applicable to medical expenses). Such right to reimbursement or in-kind benefits is not subject to liquidation
or exchange for another benefit.

 

(c)              
To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Employee’s termination of employment,
then such payments or benefits shall be payable only upon the Employee’s “separation from service.” The determination
of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation
Section 1.409A-1(h).

 

(d)              
The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any
provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. Each payment pursuant to this Agreement is intended to constitute
a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). The parties agree that this Agreement may be amended,
as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules
and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(e)              
The Company makes no representation or warranty and shall have no liability to the Employee or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption
from, or the conditions of, such Section.

 

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7.            
Continuing Obligations.

 

(a)              
Restrictive Covenant Agreement. As a material condition of this Agreement, the Employee will execute the Employee Non-Competition,
Non-Solicitation, Confidentiality and Assignment Agreement (the “Restrictive Covenant Agreement”), attached hereto
as Exhibit B, prior to the Effective Date. The Employee acknowledges and agrees that the Employee received the Restrictive Covenant
Agreement with this Agreement and at least ten (10) business days before the commencement of the Employee’s employment. For purposes
of this Agreement, the obligations in this Section 7 and those that arise in the Restrictive Covenant Agreement and any other agreement
related to confidentiality, assignment of inventions, or other restrictive covenants shall collectively be referred to as the “Continuing
Obligations”.

 

(b)              
Third-Party Agreements and Rights. The Employee hereby confirms that the Employee is not bound by the terms of any agreement
with any previous employer or other party which restricts in any way the Employee’s use or disclosure of information, other than
confidentiality restrictions (if any), or the Employee’s engagement in any business. The Employee represents to the Company that
the Employee’s execution of this Agreement, the Employee’s employment with the Company and the performance of the Employee’s
proposed duties for the Company will not violate any obligations the Employee may have to any such previous employer or other party.
In the Employee’s work for the Company, the Employee will not disclose or make use of any information in violation of any agreements
with or rights of any such previous employer or other party, and the Employee will not bring to the premises of the Company any copies
or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

 

(c)              
Litigation and Regulatory Cooperation. During and after the Employee’s employment, the Employee shall cooperate fully
with any reasonable request of the Company in the defense or prosecution of any claims or actions now in existence or which may be brought
in the future against or on behalf of the Company which relate to events or occurrences that transpired while the Employee was employed
by the Company. The Employee’s full cooperation in connection with such claims or actions shall include, but not be limited to,
being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient
times. During and after the Employee’s employment, the Employee also shall cooperate fully with the Company in connection with
any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events
or occurrences that transpired while the Employee was employed by the Company. The Company shall reimburse the Employee for any reasonable
out-of-pocket expenses incurred in connection with the Employee’s performance of obligations pursuant to this Section 7(c).

 

(d)              
Relief. The Employee agrees that it would be difficult to measure any damages caused to the Company which might result
from any breach by the Employee of the Continuing Obligations, and that in any event money damages would be an inadequate remedy for
any such breach. Accordingly, subject to Section 8 of this Agreement, the Employee agrees that if the Employee breaches, or proposes
to breach, any portion of this Agreement, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction
or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to the Company. In addition,
in the event the Employee breaches, or proposes to breach, any portion of the Continuing Obligations during a period when the Employee
is receiving severance payments pursuant to Section 4 or Section 5 hereof, the Company shall have the right to suspend or terminate such
severance payments. Such suspension or termination shall not limit the Company’s other options with respect to relief for such
breach and shall not relieve the Employee of the Employee’s duties under this Agreement.

 

(e)              
Protected Disclosures and Other Protected Action. Nothing contained in this Agreement limits the Employee’s ability
to communicate with any federal, state or local governmental agency or commission, including to provide documents or other information,
without notice to the Company.

 

    9

     

    

 

8.            
Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof or
otherwise arising out of the Employee’s employment or the termination of that employment (including, without limitation, any claims
of unlawful employment discrimination or retaliation, whether based on race, religion, national origin, sex, gender, age, disability,
sexual orientation, or any other protected class under applicable law, including without limitation Massachusetts General Laws Chapter
151B) shall, to the fullest extent permitted by law, be settled by arbitration in any forum and form agreed upon by the parties or, in
the absence of such an agreement, under the auspices of the American Arbitration Association (“AAA”) in Boston, Massachusetts
in accordance with the Employment Dispute Resolution Rules of the AAA, including, but not limited to, the rules and procedures applicable
to the selection of arbitrators. In the event that any person or entity other than the Employee or the Company may be a party with regard
to any such controversy or claim, such controversy or claim shall be submitted to arbitration subject to such other person or entity’s
agreement. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. This Section 8
shall be specifically enforceable. Notwithstanding the foregoing, this Section 8 shall not preclude either party from pursuing a court
action for the sole purpose of obtaining a temporary restraining order or a preliminary injunction in circumstances in which such relief
is appropriate; provided that any other relief shall be pursued through an arbitration proceeding pursuant to this Section 8.

 

9.            
Consent to Jurisdiction. To the extent that any court action is permitted consistent with or to enforce Section 8 of this
Agreement, the parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the United States
District Court for the District of Massachusetts. Accordingly, with respect to any such court action, the Employee (a) submits to the
personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute,
rule of court, or otherwise) with respect to personal jurisdiction or service of process.

 

10.          
Integration. This Agreement, together with the Continuing Obligations, and the Equity Documents, constitutes the entire
agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning
such subject matter.

 

11.          
Withholding. All payments made by the Company to the Employee under this Agreement shall be net of any tax or other amounts
required to be withheld by the Company under applicable law.

 

12.           
Successor to the Employee. This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal
representatives, executors, administrators, heirs, distributees, devisees and legatees. In the event of the Employee’s death after
the Employee’s termination of employment but prior to the completion by the Company of all payments due to the Employee under this
Agreement, the Company shall continue such payments to the Employee’s beneficiary designated in writing to the Company prior to
the Employee’s death (or to the Employee’s estate, if the Employee fails to make such designation).

 

13.          
Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision
of any section of this Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then
the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is
so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid
and enforceable to the fullest extent permitted by law.

 

14.          
Survival. The provisions of this Agreement shall survive the termination of this Agreement and/or the termination of the
Employee’s employment to the extent necessary to effectuate the terms contained herein.

 

15.          
Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The
failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach
of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

    10

     

    

 

16.          
Notices. Any notices, requests, demands and other communications provided for by this Agreement shall be sufficient if
in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage
prepaid, return receipt requested, to the Employee at the last address the Employee has filed in writing with the Company or, in the
case of the Company, at its main offices, attention of the Board.

 

17.          
Amendment. This Agreement may be amended or modified only by a written instrument signed by the Employee and by a duly
authorized representative of the Company.

 

18.          
Governing Law. This is a Massachusetts contract and shall be construed under and be governed in all respects by the laws
of the Commonwealth of Massachusetts without giving effect to the conflict of laws principles thereof.

 

19.          
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be taken to be an original; but such counterparts shall together constitute one and the same document.

 

20.          
Successor to Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement
to the same extent that the Company would be required to perform it if no succession had taken place. Failure of the Company to obtain
an assumption of this Agreement at or prior to the effectiveness of any succession shall be a material breach of this Agreement.

 

21.          
Gender Neutral. Wherever used herein, a pronoun in the masculine gender shall be considered as including the feminine gender
unless the context clearly indicates otherwise.

 

22.          
Indemnification. The Employee will be provided with indemnification against third party claims related to his work for
the Company in accordance with the Company’s standard form of Indemnification Agreement. The Company shall provide the Employee
with directors and officers liability insurance coverage at least as favorable as that which the Company may maintain from time to time
for other executive officers. 

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGES FOLLOW.]

 

    11

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement effective on the date and year first above written.

 

	 	SCHOLAR ROCK, INC.
	 	 
	 	By: 	/s/ David Hallal
	 	Name: David Hallal
	 	Its:      Chairman, Board of Directors

 

	 	EMPLOYEE
	 	 
	 	/s/ Jay Backstrom
	 	Jay Backstrom

 

     

     

    

 

Exhibit A

List of Board
Positions

 

Autolus Therapeutics

Lava Therapeutics

Be Biopharma

Disc Medicine

 

     

     

    

 

 

Exhibit B

 

Employee Non-Competition,
Non-Solicitation,

Confidentiality and Assignment
Agreement

 

    3

     

    

 

SCHOLAR ROCK, INC.

 

Employee Non-Competition, Non-Solicitation,
Confidentiality and Assignment Agreement

 

In consideration and as a condition of my employment
by or other service relationship with Scholar Rock, Inc. (including its subsidiaries and other affiliates and its and their successors
and assigns, the “Company”), I agree to the terms and conditions of this Employee Non-Competition, Non-Solicitation, Confidentiality
and Assignment Agreement (the “Agreement”). For purposes of this Agreement, references to the employment relationship shall
mean any employment, co-employment, independent contractor or other service relationship, whether directly or through a third party, that
I may have with the Company.

 

1.             Proprietary
Information. I agree that all information, whether or not in writing, concerning the Company’s business, technology, business
relationships or financial affairs which the Company has not released to the general public (collectively, “Proprietary Information”)
is and will be the exclusive property of the Company. By way of illustration, Proprietary Information may include information or material
which has not been made generally available to the public, such as: (a) corporate information, including plans, strategies, methods,
policies, resolutions, negotiations or litigation; (b) marketing information, including strategies, methods, customer identities
or other information about customers, prospect identities or other information about prospects, or market analyses or projections; (c)
financial information, including cost and performance data, debt arrangements, equity structure, investors and holdings, purchasing
and sales data and price lists; and (d) operational and technological information, including plans, specifications, manuals, forms,
templates, pre-clinical and clinical testing data and strategies, software, designs, methods, procedures, formulas, discoveries, inventions,
improvements, concepts and ideas; and (e) personnel information, including personnel lists, reporting or organizational structure,
resumes, personnel data, compensation structure, performance evaluations and termination arrangements or documents. Proprietary Information
also includes information received in confidence by the Company from its customers or suppliers or other third parties.

 

2.             Recognition of Company’s Rights. I will not, at any time, without the Company’s prior written permission,
either during or after my employment, disclose any Proprietary Information to anyone outside of the Company, or use or permit to be used
any Proprietary Information for any purpose other than the performance of my duties as an employee of the Company. I will cooperate with
the Company and use my best efforts to prevent the unauthorized disclosure of all Proprietary Information. I will deliver to the Company
all copies of Proprietary Information in my possession or control upon the earlier of a request by the Company or termination of my employment.

 

3.             Rights of Others. I understand that the Company is now and may hereafter be subject to non-disclosure or confidentiality
agreements with third parties which require the Company to protect or refrain from unauthorized use of proprietary information. I agree
to be bound by the terms of such agreements in the event I have access to such proprietary information.

 

4.             Commitment
to Company; Avoidance of Conflict of Interest. While an employee of the Company, I will devote my full-time efforts to the Company’s
business and I will not engage in any other business activity that conflicts with my duties to the Company. I will advise the president
of the Company or his or her nominee at such time as any activity of either the Company or another business presents me with a conflict
of interest or the appearance of a conflict of interest as an employee of the Company. I will take whatever action is requested of me
by the Company to resolve any conflict or appearance of conflict which it finds to exist.

 

5.             Developments.
I will make full and prompt disclosure to the Company of all inventions, discoveries, designs, developments, methods, modifications,
improvements, processes, algorithms, databases, computer programs, formulae, techniques, trade secrets, graphics or images, and audio
or visual works and other works of authorship (collectively “Developments”), whether or not patentable or copyrightable,
that are created, made, conceived or reduced to practice by me (alone or jointly with others) or under my direction during the period
of my employment. I acknowledge that all work performed by me is on a “work for hire” basis, and I hereby do assign and transfer
and, to the extent any such assignment cannot be made at present, will assign and transfer, to the Company and its successors and assigns
all my right, title and interest in all Developments that (a) relate to the business of the Company or any of the products or services
being researched, developed, manufactured or sold by the Company or which may be used with such products or services; or (b) result from
tasks assigned to me by the Company; or (c) result from the use of premises, resources, proprietary information or know-how, or personal
property (whether tangible or intangible) owned, leased or contracted for by the Company (“Company-Related Developments”),
and all related patents, patent applications, trademarks and trademark applications, copyrights and copyright applications, and other
intellectual property rights in all countries and territories worldwide and under any international conventions (“Intellectual
Property Rights”).

 

To preclude any possible uncertainty, I have set
forth on Exhibit A attached hereto a complete list of Developments that I have, alone or jointly with others, conceived, developed
or reduced to practice prior to the commencement of my employment with the Company that I consider to be my property or the property of
third parties and that I wish to have excluded from the scope of this Agreement (“Prior Inventions”). If disclosure of any
such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions
in Exhibit A but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs
and the fact that full disclosure as to such inventions has not been made for that reason. I have also listed on Exhibit A all
patents and patent applications in which I am named as an inventor, other than those which have been assigned to the Company (“Other
Patent Rights”). If no such disclosure is attached, I represent that there are no Prior Inventions or Other Patent Rights. If, in
the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine or other work
done for the Company, I hereby grant to the Company a nonexclusive, royalty-free, paid-up, irrevocable, worldwide license (with the full
right to sublicense) to make, have made, modify, use, sell, offer for sale and import such Prior Invention. Notwithstanding the foregoing,
I will not incorporate, or permit to be incorporated, Prior Inventions in any Company-Related Development without the Company’s
prior written consent.

 

     

     

    

 

This Agreement does not obligate me to assign
to the Company any Development which, in the sole judgment of the Company, reasonably exercised, is developed entirely on my own time
and does not relate to the business efforts or research and development efforts in which, during the period of my employment, the Company
actually is engaged or reasonably would be engaged, and does not result from the use of premises, resources, proprietary information,
know-how or equipment owned or leased by the Company. However, I will also promptly disclose to the Company any such Developments for
the purpose of determining whether they qualify for such exclusion. I understand that to the extent this Agreement is required to be construed
in accordance with the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions
made by an employee, this Section 5 will be interpreted not to apply to any invention which a court rules and/or the Company agrees falls
within such classes. I also hereby waive all claims to any moral rights or other special rights which I may have or accrue in any Company-Related
Developments.

 

6.             Documents and Other Materials. I will keep and maintain adequate and current records of all Proprietary Information
and Company-Related Developments developed by me during my employment, which records will be available to and remain the sole property
of the Company at all times.

 

All files, letters, notes, memoranda, reports,
records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, or other written, photographic
or other tangible material containing Proprietary Information, whether created by me or others, which come into my custody or possession,
are the exclusive property of the Company to be used by me only in the performance of my duties for the Company. Any property situated
on the Company’s premises and owned by the Company, including without limitation computers, disks and other storage media, filing
cabinets or other work areas, is subject to inspection by the Company at any time with or without notice. In the event of the termination
of my employment for any reason, I will deliver to the Company all files, letters, notes, memoranda, reports, records, data, sketches,
drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, or other written, photographic or other tangible
material containing Proprietary Information, and other materials of any nature pertaining to the Proprietary Information of the Company
and to my work, and will not take or keep in my possession any of the foregoing or any copies.

 

7.             Enforcement of Intellectual Property Rights. I will cooperate fully with the Company, both during and after my employment
with the Company, with respect to the procurement, maintenance and enforcement of Intellectual Property Rights in Company-Related Developments.
I will sign, both during and after the term of this Agreement, all papers, including without limitation copyright applications, patent
applications, declarations, oaths, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable
in order to protect its rights and interests in any Company-Related Development. If the Company is unable, after reasonable effort, to
secure my signature on any such papers, I hereby grant a power of attorney by designating and appointing each officer of the Company as
my agent and attorney-in-fact to execute any such papers on my behalf, and to take any and all actions as the Company may deem necessary
or desirable in order to protect its rights and interests in any Company-Related Development.

 

8.             Restrictive
Covenants.

 

A.     Non-Competition
Restrictive Covenants

 

In order to protect the Company’s Proprietary
Information and good will, during my employment and for a period of one (1) year following the termination of my employment for any
reason, unless the Company terminates my employment without Cause (as defined below) or lays me off, or such shorter period as the Company
designates in writing to me in connection with the ending of my employment relationship (the “Restricted Period”), I will
not directly or indirectly, anywhere in the United States, whether as owner, partner, shareholder, director, manager, consultant, agent,
employee, co-venturer, or otherwise, engage in, participate in, or perform: (a) any job, position, function, role, or activity that (i)
is the same as or similar to that which I performed for the Company during any part of the two-year period immediately preceding the end
of my employment with the Company and (ii) involves products, services, or a line of business (in each case, including but not limited
to the research, development, manufacture, or commercialization of any products, services, or line of business) that is competitive with
or that substitutes for or that eliminates the need for, any products, services, or a line of business (in each case, including but not
limited to the research, development, manufacture, or commercialization of any products, services, or a line of business) of the Company
at any time during the two-year period immediately preceding the end of my employment with the Company; or (b) any other job, position,
function, role, or activity that would likely or inevitably, even if unintentionally, require or result in the use or disclosure of the
Company’s Proprietary Information or the use of the Company’s customer goodwill, provided that this shall not prohibit any
possible investment in publicly traded stock of a company representing less than one percent of the stock of such company. Furthermore,
I acknowledge and agree that the Company shall have the option of enforcing the aforementioned non-competition restriction, up to and
including the full duration of the Restricted Period. In the event the Company elects to enforce the post-employment portion of the non-competition
restriction, the Company will cause to be paid to me fifty percent (50%) of my highest annualized base salary paid by the Company within
the two (2) years preceding the termination of my employment, for as long as the Company elects to enforce said post-employment non-competition
restriction, subject further to limitations on payments owed to an employee who has breached a fiduciary duty owed to the Company or who
has unlawfully taken Company property to the extent permitted by applicable law. I acknowledge and agree that any payments I receive pursuant
to this Section 8(a) shall reduce (and shall not be in addition to) any severance or separation pay that I am otherwise entitled to receive
from the Company pursuant to an agreement, plan or otherwise. For purposes of this Agreement, and notwithstanding anything to the contrary
in any other agreement between the Company and me, “Cause” shall mean a reasonable and good faith basis for the Company to
be dissatisfied with my job performance, my conduct or my behavior.

 

     

     

    

 

B.      Non-Solicitation
Restrictive Covenants

 

In order to protect the Company’s Proprietary
Information and good will, during the Restricted Period, I will not, directly or indirectly, in any manner, other than for the benefit
of the Company, (a) call upon, solicit, divert, take away, accept or conduct any business from or with any of the customers or prospective
customers of the Company or any of its suppliers, and/or (b) solicit, entice, attempt to persuade any other employee or consultant of
the Company to leave the Company for any reason or otherwise participate in or facilitate the hire, directly or through another entity,
of any person who is employed or engaged by the Company or who was employed or engaged by the Company within six months of any attempt
to hire such person.

 

I acknowledge that the covenants in this Section
8 are necessary because the Company’s legitimate business interests cannot be adequately protected solely by the other covenants
in this Agreement. I further acknowledge and agree that if I violate any of the provisions of this Section 8, the running of the Restricted
Period will be extended by the time during which I engage in such violation(s).

 

9.             Government
Contracts. I acknowledge that the Company may have from time to time agreements with other persons or with the United States
Government or its agencies which impose obligations or restrictions on the Company regarding inventions made during the course of work
under such agreements or regarding the confidential nature of such work. I agree to comply with any such obligations or restrictions
upon the direction of the Company. In addition to the rights assigned under Section 5, I also assign to the Company (or any of its nominees)
all rights which I have or acquired in any Developments, full title to which is required to be in the United States under any contract
between the Company and the United States or any of its agencies.

 

10.           Prior
Agreements. I hereby represent that, except as I have fully disclosed previously in writing to the Company, I am not bound by
the terms of any agreement with any previous employer or other party to refrain from using or disclosing any trade secret or confidential
or proprietary information in the course of my employment with the Company or to refrain from competing, directly or indirectly, with
the business of such previous employer or any other party. I further represent that my performance of all the terms of this Agreement
as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or
data acquired by me in confidence or in trust prior to my employment with the Company. I will not disclose to the Company or induce the
Company to use any confidential or proprietary information, know-how or material belonging to any previous employer or others.

 

11.           Remedies
Upon Breach.  I understand that the restrictions contained in this Agreement are necessary for the protection of the business
and goodwill of the Company and I consider them to be reasonable for such purpose. Any breach of this Agreement is likely to cause the
Company substantial and irrevocable damage and therefore, in the event of such breach, the Company, in addition to such other remedies
which may be available, will be entitled to specific performance and other injunctive relief, without the posting of a bond. If I violate
this Agreement, in addition to all other remedies available to the Company at law, in equity, and under contract, I agree that I am obligated
to pay all the Company’s costs of enforcement of this Agreement, including attorneys’ fees and expenses.

 

12.           Publications
and Public Statements. I will obtain the Company’s written approval before publishing or submitting for publication any
material that relates to and/or incorporates any Proprietary Information.

 

13.           No
Employment Obligation. I understand that this Agreement does not create an obligation on the Company or any other person to continue
my employment. I acknowledge that, unless otherwise agreed in a formal written employment agreement signed on behalf of the Company by
an authorized officer, my employment with the Company is at will and therefore may be terminated by the Company or me at any time and
for any reason, with or without cause.

 

14.           Survival and Assignment by the Company. I understand that my obligations under this Agreement will continue in accordance
with its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms and conditions
of employment. I further understand that my obligations under this Agreement will continue following the termination of my employment
regardless of the manner of such termination and will be binding upon my heirs, executors and administrators. The Company will have the
right to assign this Agreement to its affiliates, successors and assigns. I expressly consent to be bound by the provisions of this Agreement
for the benefit of the Company or any parent, subsidiary or affiliate to whose employ I may be transferred without the necessity that
this Agreement be resigned at the time of such transfer.

 

15.           Exit
Interview. If and when I depart from the Company, I may be required to attend an exit interview. For twelve (12) months following
termination of my employment, I will notify the Company of any change in my address and of each subsequent employment or business activity,
including the name and address of my employer or other post-Company employment plans and the nature of my activities. If I am named an
inventor in one or more patent applications that resulted during my employment with the Company, I agree to use commercially reasonable
efforts to keep the Company apprised of my contact information for an additional twenty-four (24) months.

 

     

     

    

 

16.           Disclosure to Future Employers. During the Restricted Period, I will provide a copy of this Agreement to any prospective
employer, partner or co-venturer prior to entering into an employment, partnership or other business relationship with such person or
entity.

 

17.           Waiver.
The Company and I acknowledge and agree that the Company may unilaterally waive my post-employment non-competition obligations under
Section 8(a), and in the event of such a waiver, the Company is not required to provide me with the post-employment compensation described
therein. The Company’s election not to provide me with the post-employment compensation described in Section 8(a) shall be deemed
a waiver of my post-employment non-competition obligations under Section 8(a). Otherwise, no waiver of any of my obligations under this
Agreement shall be effective unless made in writing by the Company. The failure of the Company to require my performance of any term
or obligation of this Agreement, or the waiver of any breach of this Agreement, shall not prevent the Company’s subsequent enforcement
of such term or obligation or be deemed a waiver of any subsequent breach.

 

18.           Severability.
In case any provisions (or portions thereof) contained in this Agreement shall, for any reason, be held invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. If, moreover, any one or more
of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable
law as it shall then appear.

 

19.           Interpretation. This Agreement will be deemed to be made and entered into in the Commonwealth of Massachusetts, and
will in all respects be interpreted, enforced and governed under the laws of the Commonwealth of Massachusetts. I hereby agree to consent
to personal jurisdiction of the state and federal courts situated within Suffolk County, Massachusetts for purposes of enforcing this
Agreement, and waive any objection that I might have to personal jurisdiction or venue in those courts.

 

20.           Independence of Obligations. My obligations under this Agreement are independent of any obligation, contractual or
otherwise, the Company has to me. The Company’s breach of any such obligation shall not be a defense against the enforcement of
this Agreement or otherwise limit my obligations under this Agreement.

 

21.           Protected
Disclosures; Defend Trade Secrets Act of 2016. I understand that nothing contained in this Agreement limits my ability to communicate
with any federal, state or local governmental agency or commission, including to provide documents or other information, without notice
to the Company. I also understand that nothing in this Agreement limits my ability to share compensation information concerning myself
or others, except that this does not permit me to disclose compensation information concerning others that I obtain because my job responsibilities
require or allow access to such information. I understand that pursuant to the federal Defend Trade Secrets Act of 2016, I shall not
be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made
(i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely
for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in
a lawsuit or other proceeding, if such filing is made under seal.

 

22.           Other
Agreements; Amendment. This Agreement supplements and does not supersede any other confidentiality, assignment of inventions
or restrictive covenant agreement between the Company and me. To the extent that this Agreement addresses other subject matters, this
Agreement supersedes any other agreements between the Company and me with respect to such subject matters. This Agreement may be amended
only in a written agreement executed by a duly authorized officer of the Company and me.

 

[Remainder of Page Intentionally Left Blank]

 

     

     

    

 

I UNDERSTAND THAT THIS AGREEMENT AFFECTS IMPORTANT
RIGHTS. BY SIGNING BELOW, I CERTIFY THAT I HAVE READ IT CAREFULLY AND AM SATISFIED THAT I UNDERSTAND IT COMPLETELY. I ACKNOWLEDGE I HAVE
BEEN NOTIFIED BY THE COMPANY OF THE RIGHT TO CONSULT WITH COUNSEL OF MY OWN CHOOSING PRIOR TO SIGNING THIS AGREEMENT, AND THAT I WAS PROVIDED
WITH THIS AGREEMENT BY THE EARLIER OF A FORMAL OFFER OF EMPLOYMENT OR TEN (10) BUSINESS DAYS BEFORE THE COMMENCEMENT OF MY EMPLOYMENT.

 

I ACKNOWLEDGE AND AGREE THAT THE TERMS OF THIS
AGREEMENT WILL APPLY TO MY ENTIRE SERVICE RELATIONSHIP WITH THE COMPANY, INCLUDING WITHOUT LIMITATION ANY PERIOD OF SERVICE PRIOR TO THE
DATE OF MY SIGNATURE BELOW. 

 

IN WITNESS WHEREOF, the undersigned has executed
this Agreement as a sealed instrument and it shall become effective upon the later of (i) the full execution by both parties; or (ii)
ten (10) business days after the Company provided me with notice of this Agreement.

 

EMPLOYEE

 

Signed:                                                                                                          

 

Type or print name: Jay Backstrom

 

Date: September 19, 2022

 

	SCHOLAR ROCK, INC.	 
	 	 
	 	 
	Authorized Signatory	 
	 	 
	Type or print name: David Hallal	 
	 	 
	Title: Chairman, Board of Directors	 
	 	 
	Date: September 19, 2022	 

 

     

     

    

 

EXHIBIT A

 

	To:	Scholar Rock, Inc.

 

	From:	Jay Backstrom

 

	Date: 	September 19, 2022

 

	SUBJECT: 	Prior Inventions

 

The following is a complete list of all inventions
or improvements that are relevant to the subject matter of my employment by the Company that have been made or conceived or first reduced
to practice by me alone or jointly with others prior to my engagement by the Company:

 

	 ̈	No inventions or improvements.

 

	 ̈	See list below:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

	 ̈	Additional sheets attached.

 

The following is a list of all patents and patent applications in which
I have been named as an inventor:

 

	 ̈	None

 

	 ̈	See below:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    6Exhibit 4.1

 

EXECUTION

 

COMMON
STOCK PURCHASE WARRANT AGREEMENT

 

Nexalin
technology, inc.

 

THIS
COMMON STOCK PURCHASE WARRANT AGREEMENT (the “Warrant”) dated as of September 16, 2022 is entered into by and betweenNEXALIN
TECHNOLOGY INC., a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust Company, a New York corporation
(the “Warrant Agent”).

 

WHEREAS,
the Company has filed with the Securities and Exchange Commission a Registration Statement on Form S-1, No: 333-261989 (the “Registration
Statement”), for the registration, under the Securities Act of 1933, as amended (the “Act”) of, among other securities,
the Warrants and the Common Stock issuable upon exercise of the Warrants;

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with
the issuance, registration, transfer, exchange, redemption and exercise of the Warrants;

 

WHEREAS,
the Company desires to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised,
and the respective rights, limitation of rights, and immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the valid, binding and legal obligations of the Company, and
to authorize the execution and delivery of this Agreement.

 

Section
1. Definitions. In addition to the terms defined elsewhere in the Warrant, the following terms have the meanings
indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock
is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date)
on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted
average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock
is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market
(or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common
Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

    1

     

    

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such
securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is
at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Registration
Statement” means the Company’s registration statement on Form S-1 (File No. 333-261989).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed
or acquired after the date hereof.

 

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York
Stock Exchange (or any successors to any of the foregoing).

 

    2

     

    

 

“Transfer
Agent” means Continental Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address
of 1 State Street, 30th Floor, New York, NY 10004-1561 and any successor transfer agent of the Company.

 

“Underwriting
Agreement” means the underwriting agreement, dated as of September 15, 2022 between the Company and Maxim Group LLC as representative
of the underwriters named therein, as amended, modified or supplemented from time to time in accordance with its terms.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock on the third trading day prior to such date
(or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P.
(based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a
Trading Market, the volume weighted average price of the Common Stock on the third trading day prior to such date (or the nearest preceding
date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices
for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of
a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of
the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Warrant
Agency Agreement” means this warrant agreement, between the Company and the Warrant Agent.

 

“Warrant
Agent” means the Transfer Agent and any successor warrant agent of the Company

 

“Warrants”
means the Warrants and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

    3

     

    

 

Section
2. Exercise; Form of Warrant; Warrant Register; Term of Warrant.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by the Warrant may be made, in whole or in part, at any time
or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile
copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement
Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise
Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original
Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of
Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender the Warrant
to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full,
in which case, the Holder shall surrender the Warrant to the Company for cancellation within three (3) Trading Days of the date on which
the final Notice of Exercise is delivered to the Company. Partial exercises of the Warrant resulting in purchases of a portion of the
total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice
of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of the Warrant, acknowledge
and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the
number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

Notwithstanding
the foregoing in this Section 2(a), a holder whose interest in the Warrant is a beneficial interest in certificate(s) representing the
Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect
exercises made pursuant to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate
instruction form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation,
as applicable), subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant
Agency Agreement, in which case this sentence shall not apply.

 

b)
Exercise Price. The exercise price per share of Common Stock under the Warrant shall be $4.15(100% of the unit offering price),
subject to adjustment hereunder (the “Exercise Price”).

 

    4

     

    

 

c)
Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus
contained therein is not available for the issuance of the Warrant Shares to the Holder, then the Warrant may also be exercised, in whole
or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

		(A)	=
as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of
Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in
Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder,
either (y) the VWAP on the third Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price
of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the
applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and
is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on
a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such
Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after
the close of “regular trading hours” on such Trading Day;

 

		(B)	=
the Exercise Price of the Warrant, as adjusted hereunder; and

 

		(X)	=
the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordance with the terms of the Warrant if such
exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the
Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not
to take any position contrary to this Section 2(c).

 

If
the Warrant is called for redemption pursuant to Section 5, the Company may elect to have the warrants exercised via cashless exercise.

 

Notwithstanding
anything herein to the contrary, on the Termination Date, the Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

    5

     

    

 

d) Mechanics
of Exercise.

 

i. Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the
Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The
Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a
participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by Holder or (B) the Warrant is being exercised via cashless exercise, and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of
Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading
Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the
“Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which the Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the
case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days
comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to
deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay
to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise
(based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per
Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer
agent that is a participant in the FAST program so long as the Warrant remains outstanding and exercisable. As used herein,
“Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the
Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of
Exercise.

 

ii. Delivery
of New Warrants Upon Exercise. If the Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of the Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by the Warrant, which new Warrant shall in
all other respects be identical with the Warrant.

 

    6

     

    

 

iii. Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of
Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise
purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the
amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise
to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and
equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded)
or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its
exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise
to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of
the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right
to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

 

iv. No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of
the Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

v. Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company,
and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however,
that, in the event that Warrant Shares are to be issued in a name other than the name of the Holder, the Warrant when surrendered
for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay
all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or
another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant
Shares.

 

    7

     

    

 

vi. Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of the
Warrant, pursuant to the terms hereof.

 

e) Holder’s
Exercise Limitations. The Company shall not effect any exercise of the Warrant, and a Holder shall not have the right to
exercise any portion of the Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance
after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any
other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), 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 and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of the 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, nonexercised portion of the Warrant beneficially owned by the Holder or any of its Affiliates or
Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. 
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, 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 Section 2(e) applies, the determination of whether the Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of the 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 the Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of the 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.
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 and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), 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 Commission, 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 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 one Trading Day
confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the
Company, including the Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of
outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% (or, upon
election by a Holder prior to the issuance of any Warrants, 9.99%) 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 the Warrant. The Holder, upon
notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), 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 the Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the
61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make
changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of the Warrant.

 

    8

     

    

 

f)
Warrant Register. The Warrant Agent shall maintain books (the “Warrant Register”) for the registration of the original
issuance and transfers of the Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register the
Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance with instructions
delivered to the Warrant Agent by the Company. The Warrant shall initially be issued and maintained in the form of a security held
in book-entry form and the Depository Trust Company or its nominee (“DTC”) shall initially be the sole registered
holder of the Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of
the Warrant Agency Agreement, in which case this sentence shall not apply.

 

g)
Registered Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may
deem and treat the person in whose name such Warrant shall be registered upon the Warrant Register (the “registered holder”),
as the absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing
on the warrant certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and
for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

h)
Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on the date
hereof and terminating at 5:00 p.m., New York City time on the earlier to occur of (x) September 20, 2022 (y) the date fixed for
redemption of the Warrants as provided in Section 5 of this Agreement (the “Expiration Date”). Except with respect to
the right to receive the Redemption Price (as set forth in Section 5 hereunder), each Warrant not exercised on or before the
Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at
the close of business on the Expiration Date. The Company, in its sole discretion, may extend the duration of the Warrants by
delaying the Expiration Date.

 

    9

     

    

 

Section
3. Certain Adjustments.

 

a)
Stock Dividends and Splits. If the Company, at any time while the Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares
of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of the
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the
Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which
the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares issuable upon exercise of the Warrant shall be proportionately adjusted such that the aggregate Exercise Price of the Warrant
shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for
the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re-classification.

 

b)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had
held the number of shares of Common Stock acquirable upon complete exercise of the Warrant (without regard to any limitations on exercise
hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that
the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of
Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for
the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    10

     

    

 

c)
Pro Rata Distributions. During such time as the Warrant is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of the Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of the Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided,
however, that, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent
(or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such
Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result
in the Holder exceeding the Beneficial Ownership Limitation). To the extent that the Warrant has not been partially or completely exercised
at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the
Holder has exercised the Warrant.

 

d) Fundamental
Transaction. If, at any time while the Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company (and all of its
Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of
Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by
the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization 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, or (v) the
Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement)
with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each
a “Fundamental Transaction”), then, upon any subsequent exercise of the Warrant, the Holder shall have the right
to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of the
Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which the Warrant is exercisable immediately prior
to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of the Warrant). 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. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under the Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for the Warrant a security of the
Successor Entity evidenced by a written instrument substantially similar in form and substance to the Warrant which is exercisable
for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of
Common Stock acquirable and receivable upon exercise of the Warrant (without regard to any limitations on the exercise of the
Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares
of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of the Warrant immediately prior to the consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of
the Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under the Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

    11

     

    

 

e)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

f)
Notice to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall
promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any
resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such
adjustment.

 

    12

     

    

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company (and all of its Subsidiaries, taken
as a whole) is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall
cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the
Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a
notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. To the extent that any notice provided in the Warrant constitutes, or
contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file
such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise the Warrant
during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may
otherwise be expressly set forth herein.

 

g)
Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during
the term of the Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the board of directors of the Company.

 

    13

     

    

 

Section
4. Transfer of Warrant.

 

a)
Transferability. The Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable,
in whole or in part, upon surrender of the Warrant at the principal office of the Company or its designated agent, together with a written
assignment of the Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient
to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of the Warrant not so
assigned, and the Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required
to physically surrender the Warrant to the Company unless the Holder has assigned the Warrant in full, in which case, the Holder shall
surrender the Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the
Company assigning the Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

 

b)
New Warrants. The Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of the
Warrant and shall be identical with the Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)
Warrant Register. The Warrant Agent shall register the Warrant, upon records to be maintained by the Warrant Agent for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company and the Warrant Agent
may deem and treat the registered Holder of the Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section
5. Redemption of Warrants.

 

(a) At any time on and after the date of original
issuance of the Warrant (September 20, 2022) and prior to the exercise or expiration of the Warrant, the Company shall have the
right to call the Warrants for redemption upon 30 days’ prior written or published notice at a price of $.01 per Warrant,
provided however that the closing bid quotation for the Common Stock for at least 20 of the 30 consecutive business days ending on
the business day prior to the Company’s giving notice of redemption has been at least $12.45 (three times the offering price
per Unit) per share. The Holder shall have the right to exercise the Warrant prior to the date set forth in the Company’s
notice of redemption (the “Redemption Date”). After the Redemption Date, all rights of the Holder shall terminate, other
than the right to receive the redemption price of $.01 per Warrant, without interest. The redemption price shall be subject to
adjustment upon the occurrence of certain events as described in the Warrant.

 

    14

     

    

 

(b)
In the event the Company shall elect to redeem all of the Warrants, the Company shall fix a date for the redemption. Notice of redemption
shall be mailed by first class mail, postage prepaid, by the Company not less than 30 days prior to the date fixed for redemption to
the registered holders of the Warrants to be redeemed at their last addresses as they shall appear in the Warrant Register. Any notice
mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the registered holder received
such notice.

 

(c)
The Warrants may be exercised for cash in accordance with Section 2 of this Agreement at any time after notice of redemption shall have
been given by the Company pursuant to Section 5 (a) hereof and prior to the time and date fixed for redemption. On and after the redemption
date, the record holder of the Warrants shall have no further rights except to receive, upon surrender of the Warrants, the Redemption
Price.

 

Section
6. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. The Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant
to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall the Company be
required to net cash settle an exercise of the Warrant.

 

b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of the Warrant or any stock certificate relating to the Warrant Shares,
and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the
Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant
or stock certificate.

 

c)
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day.

 

    15

     

    

 

d)
Authorized Shares.

 

The
Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under the Warrant.
The Company further covenants that its issuance of the Warrant shall constitute full authority to its officers who are charged with the
duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under the Warrant. The Company will take all such
reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable
law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that
all Warrant Shares which may be issued upon the exercise of the purchase rights represented by the Warrant will, upon exercise of the
purchase rights represented by the Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of the Warrant,
but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of Holder as set forth in the Warrant against impairment. Without limiting the generality of the
foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise
immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of the Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof,
as may be, necessary to enable the Company to perform its obligations under the Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which the Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from
any public regulatory body or bodies having jurisdiction thereof.

 

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e)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of the Warrant shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by the Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York,
Borough of Manhattan 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 the 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. If either party shall commence an action, suit or proceeding to enforce any provisions of the Warrant,
the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’
fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f) Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of the Warrant, if not registered, and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g) Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of the Warrant, if the Company willfully and knowingly fails to comply with any provision of the Warrant, which results in any
material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the
Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

h) Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any
Notice of Exercise, shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally recognized
overnight courier service, addressed to the Company, at 1776 Yorktown, Suite 550, Houston, TX 77056 Attention: Chief Financial
Officer, email address: m.elson@nexalin.com, or such other facsimile number, email address or address as the Company may specify
for such purposes by notice to the Holders. Any and all notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally recognized overnight courier
service addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the
Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the
time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail
address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of
transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address
set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii)
the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon
actual receipt by the party to whom such notice is required to be given. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

    17

     

    

 

i) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise the Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

j) Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under the Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of the Warrant and hereby agrees to waive and not to assert the
defense in any action for specific performance that a remedy at law would be adequate.

 

k) Successors
and Assigns. Subject to applicable securities laws, the Warrant and the rights and obligations evidenced hereby shall inure to
the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of
Holder. The provisions of the Warrant are intended to be for the benefit of any Holder from time to time of the Warrant and shall be
enforceable by the Holder or holder of Warrant Shares.

 

l) Amendment.
The Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and
the Holder or the beneficial owner of the Warrant, on the other hand.

 

m) Severability.
Wherever possible, each provision of the Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of the Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of the Warrant.

 

n) Headings.
The headings used in the Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of the
Warrant.

 

o) Warrant
Agency Agreement. If the Warrant is held in global form through DTC (or any successor depositary), the Warrant is issued subject
to the Warrant Agency Agreement. To the extent any provision of the Warrant conflicts with the express provisions of the Warrant
Agency Agreement, the provisions of the Warrant shall govern and be controlling. The Company agrees to perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Warrant Agent for the carrying out or performing of the provisions of this
Agreement.

 

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p) Taxes. The
Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in
respect of the issuance or delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be obligated
to pay any transfer taxes in respect of the Warrants or such shares.

 

q) Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be
discharged from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company.
If the office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in
writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period
of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of the
Warrant (who shall, with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant
may apply to the Supreme Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent
at the Company’s cost. Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation
organized and existing under the laws of the State of New York, in good standing and having its principal office in the Borough of
Manhattan, City and State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision
or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority,
powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as
Warrant Agent hereunder, without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor
Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent
all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent
the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting
in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and
obligations.

 

r) Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to
the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such
appointment.

 

s) Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to
the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such
appointment.

 

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t) Merger
or Consolidation of Warrant Agent. Any corporation into which the Warrant Agent may be merged or with which it may be
consolidated or any corporation resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the
successor Warrant Agent under this Agreement without any further act.

 

u) Remuneration. The
Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and will reimburse
the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of its duties
hereunder.

 

v) Indemnity. The
Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees to
indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel
fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except as a result of the Warrant
Agent’s gross negligence, willful misconduct or bad faith.

 

w) Exclusions. The
Warrant Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity or
execution of any Warrant (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to make any adjustments required
under the provisions of Section 3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining
of the existence of facts that would require any such adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this
Agreement or any Warrant or as to whether any shares of Common Stock will when issued be valid and fully paid and
nonassessable.

 

x) Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the
terms and conditions herein set forth and, among other things, shall account promptly to the Company with respect to Warrants
exercised and concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the purchase of shares
of Common Stock through the exercise of Warrants.

 

 

 

********************

 

(Signature
Page Follows)

 

    20

     

    

 

IN
WITNESS WHEREOF, the Company has caused the Warrant to be executed by its officer thereunto duly authorized as of the date first above
indicated.

  

	 	NEXalin technology, iNC.
	 	 	 
	 	By:	 
	 		Name: 	        
	 		Title: 	 
	 	 	 
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	 	 	 
	 	By:	/s/
    Erika Young
	 	Name: 	Erika
    Young
	 	Title:	Vice
    President, 9/16/22

 

    21

     

    

 

NOTICE
OF EXERCISE

 

	To:	NEXALIN
TECHNOLOGY, INC.

 

(1)
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if
any.

 

(2)
Payment shall take the form of (check applicable box):

 

☐
 in lawful money of the United States; or

 

☐
 if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise the Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

 

(3)
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

The
Warrant Shares shall be delivered to the following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

 

     

     

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	
	 	(Please
    Print)
	 	
	Address:	 
	 	(Please
                                            Print)
	 	 
	Phone
    Number:	 
	 	 
	Email
    Address:	 
	 	 
	Dated:
    _______________ __, ______	 
	 	 
	Holder’s
    Signature:                                                                	 
	 	 
	Holder’s
    Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]