Document:

Exhibit 10.4

 

NEITHER THIS SECURITY NOR THE SECURITIES
AS TO WHICH THIS SECURITY MAY BE EXERCISED HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

(WARRANT B)

 

BRAIN SCIENTIFIC INC.

 

Warrant Shares: 250,000

Date of Issuance: December 28, 2020 (“Issuance
Date”)

 

This COMMON STOCK PURCHASE
WARRANT (WARRANT B) (the “Warrant”) certifies that, for value received (in connection with the issuance of the
$300,000.00 senior secured promissory note to the Holder (as defined below) of even date) (the “Note”), Auctus Fund,
LLC, a Delaware limited liability company (including any permitted and registered assigns, the ”Holder”),
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the issuance hereof, to purchase from BRAIN SCIENTIFIC Inc., a Nevada corporation (the ”Company”),
up to 250,000 shares of Common Stock (as defined below) (the “Warrant Shares”) (whereby such number may be adjusted
from time to time pursuant to the terms and conditions of this Warrant) at the Exercise Price per share then in effect. This Warrant
is issued by the Company as of the date hereof in connection with that certain securities purchase agreement dated December 28,
2020, by and among the Company and the Holder (the “Purchase Agreement”).

 

Capitalized terms used
in this Warrant shall have the meanings set forth in the Purchase Agreement unless otherwise defined in the body of this Warrant
or in Section 12 below. For purposes of this Warrant, the term “Exercise Price” shall mean $1.20, subject to
adjustment as provided herein (including but not limited to cashless exercise), and the term ”Exercise Period”
shall mean the period commencing at any time on or after the date hereof and ending on 5:00 p.m., eastern standard time on the
three-year anniversary thereof. NOTWITHSTANDING THE FOREGOING, IN THE EVENT THE COMPANY REPAYS THE NOTE IN ITS ENTIRETY ON OR PRIOR
TO THE MATURITY DATE OF THE NOTE, THIS WARRANT SHALL AUTOMATICALLY EXPIRE, AND THIS WARRANT MAY ONLY BE EXERCISED IN THE EVENT
IT DOES NOT SO AUTOMATICALLY EXPIRE.

 

1. EXERCISE
OF WARRANT.

 

(a) Mechanics
of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or
in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. The Holder shall not
be required to deliver the original Warrant in order to effect an exercise hereunder. Partial exercises of this 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. On or before
the second Trading Day (the “Warrant Share Delivery Date”) following the date on which the Holder sent the Exercise
Notice to the Company or the Company’s transfer agent, and upon receipt by the Company of payment to the Company of an amount
equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which all or a portion of this Warrant
is being exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise
Delivery Documents”) in cash or by wire transfer of immediately available funds (or by cashless exercise, in which case
there shall be no Aggregate Exercise Price provided), the Company shall (or direct its transfer agent to) issue and dispatch by
overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register
in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to
such exercise (or deliver such shares of Common Stock in electronic format if requested by the Holder). Upon delivery of the Exercise
Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such
Warrant Shares. If this Warrant is submitted in connection with any exercise and the number of Warrant Shares represented by this
Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall
as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant
(in accordance with Section 6) representing the right to purchase the number of Warrant Shares purchasable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.

 

     

     

    

 

If the Company fails
to cause its transfer agent to transmit to the Holder the respective shares of Common Stock by the respective Warrant Share Delivery
Date, then the Holder will have the right to rescind such exercise in Holder’s sole discretion, and such failure shall be
deemed an event of default under the Note.

 

If (i) the Market Price
of one share of Common Stock is greater than the Exercise Price and (ii) the Warrant Shares are not registered for resale by the
Company pursuant to an effective registration statement under the Securities Act of 1933, as amended on or prior to the 6th
monthly anniversary of the Issuance Date, then the Holder may elect to receive Warrant Shares pursuant to a cashless exercise,
in lieu of a cash exercise, equal to the value of this Warrant determined in the manner described below (or of any portion thereof
remaining unexercised) by surrender of this Warrant and a Notice of Exercise, in which event the Company shall issue to Holder
a number of Common Stock computed using the following formula:

 

X = Y (A-B)

 

A

 

	
        Where
	X =	the number of Shares to be issued to Holder.
	 	 	 
	 	Y =	the number of Warrant Shares that the Holder elects to purchase under this Warrant (at the date of such calculation).
	 	 	 
	 	A =	the Market Price (at the date of such calculation).
	 	 	 
	 	B =	Exercise Price (as adjusted to the date of such calculation).

 

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

 

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

 

For purposes of this
paragraph, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares
of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the 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 its transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the request of a Holder, the Company shall within two
Trading Days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was
reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The limitations
contained in this paragraph shall apply to a successor Holder of this Warrant.

 

2. ADJUSTMENTS.
The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

 

(a) Distribution
of Assets. 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
or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each
such case:

 

(i) any
Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of
shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record
date, to a price determined by multiplying such Exercise Price by a fraction (i) the numerator of which shall be the Closing Sale
Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the denominator
of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date;
and

 

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(ii) the
number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately
prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause (i); provided,
however, that in the event that the Distribution is of shares of common stock of a company (other than the Company) whose common
stock is traded on a national securities exchange or a national automated quotation system (“Other Shares of Common Stock”),
then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of
Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into
the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had
the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product
of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms
of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part of this clause
(ii).

 

(b) Anti-Dilution
Adjustments to Exercise Price. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding,
shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce
any offer, sale, grant or any option to purchase or other disposition) any Common Stock or securities entitling any person or entity
to acquire shares of Common Stock (upon conversion, exercise or otherwise) (including but not limited to under the Note), at an
effective price per share less than the then Exercise Price (such lower price, the “Base Share Price,” and such
issuances collectively, a “Dilutive Issuance” as further clarified by Section 12(e) hereof) (if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, elimination
of an applicable floor price for any reason in the future (including but not limited to the passage of time or satisfaction of
certain condition(s)), reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled or potentially entitled to receive shares of
Common Stock at an effective price per share which is less than the Exercise Price at any time while such Common Stock or Common
Stock Equivalents are in existence, such issuance shall be deemed to have occurred for less than the Exercise Price on such date
of the Dilutive Issuance (regardless of whether the Common Stock, Common Stock Equivalents, or Note are (i) subsequently redeemed
or retired by the Company after the date of the Dilutive Issuance or (ii) actually converted or exercised at such Base Share Price),
then the Exercise Price shall be reduced at the option of the Holder and only reduced to equal the Base Share Price, and the number
of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking
into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment (for the
avoidance of doubt, the aggregate Exercise Price prior to such adjustment is calculated as follows: the total number of Warrant
Shares issuable upon exercise of this Warrant immediately prior to such adjustment (without regard to the Beneficial Ownership
Limitation) multiplied by the Exercise Price in effect immediately prior to such adjustment). By way of example, if E is the total
number of Warrant Shares issuable upon exercise of this Warrant immediately prior to such adjustment (without regard to the Beneficial
Ownership Limitation), F is the Exercise Price in effect immediately prior to such adjustment, and G is the Base Share Price, the
adjustment to the number of Warrant Shares can be expressed in the following formula: Total number of Warrant Shares after such
Dilutive Issuance = the number obtained from dividing [E x F] by G. Such adjustment shall be made whenever such Common Stock or
Common Stock Equivalents are issued; provided, however, that in the event any such Dilutive Issuance is not so converted and either
expires in accordance with its terms or is repaid in cash (as the case may be), the Exercise Price shall revert back to what it
was without taking into account this sub-paragraph (b) as it relates to such Dilutive Issuance. The Company shall notify the Holder
in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this
Section 2(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and
other pricing terms (such notice the “Dilutive Issuance Notice”). For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to this Section 2(b), upon the occurrence of any Dilutive Issuance,
after the date of such Dilutive Issuance (but subject to the terms hereof) the Holder is entitled to receive a number of Warrant
Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice
of Exercise. This Section 2(b) shall no longer apply or have any force or effect if and upon the Company’s Common Stock being
listed for trading on the Nasdaq National Market, Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT or other national
securities exchange.

 

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(c) Subdivision
or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant
Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by combination, reverse
stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be
proportionately decreased. Any adjustment under this Section 2(c) shall become effective at the close of business on the date the
subdivision or combination becomes effective. Each such adjustment of the Exercise Price shall be calculated to the nearest one-hundredth
of a cent. Such adjustment shall be made successively whenever any event covered by this Section 2(c) shall occur.

 

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

 

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

 

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

 

6. REISSUANCE.

 

(a) Lost,
Stolen or Mutilated Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

(b) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
shall be of like tenor with this Warrant, and shall have an issuance date, as indicated on the face of such new Warrant which is
the same as the Issuance Date.

 

7. TRANSFER.
This Warrant shall be binding upon the Company and its successors and assigns, and shall inure to be the benefit of the Holder
and its successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company
hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior signed written
consent of the Holder, which consent may be withheld at the sole discretion of the Holder (any such assignment or transfer shall
be null and void if the Company does not obtain the prior signed written consent of the Holder). This Warrant or any of the severable
rights and obligations inuring to the benefit of or to be performed by Holder hereunder may be assigned by Holder to a third party,
in whole or in part, without the need to obtain the Company’s consent thereto.

 

8. NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the notice provisions contained in the Purchase Agreement. The Company shall provide the Holder with prompt written notice
(i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment
and (ii) at least 20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend
or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities
directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to
the holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution
or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such
notice being provided to the Holder.

 

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

 

10. GOVERNING
LAW AND VENUE. This Warrant shall be governed by and construed in accordance with the laws of the State of Nevada without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Warrant shall be brought only in the state courts located in the Commonwealth of Massachusetts or in the federal courts
located in the Commonwealth of Massachusetts. The parties to this Warrant hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED
HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.
In the event that any provision of this Warrant or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

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

 

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

 

(a) “Nasdaq”
means www.Nasdaq.com.

 

(b) “Closing
Sale Price” means, for any security as of any date, (i) the last closing trade price for such security on the Principal
Market, as reported by Nasdaq, or, if the Principal Market begins to operate on an extended hours basis and does not designate
the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Nasdaq, or
(ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter market for such security
as reported by Nasdaq, or (iii) if no last trade price is reported for such security by Nasdaq, the average of the bid and ask
prices of any market makers for such security as reported by the OTC Markets. If the Closing Sale Price cannot be calculated for
a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the
fair market value as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

(c) “Common
Stock” means the Company’s common stock, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

(d) “Common
Stock Equivalents” means any securities of the Company that would entitle the holder thereof to acquire at any time Common
Stock, including without limitation any debt, preferred stock, rights, options, warrants 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.

 

(e) “Dilutive
Issuance” is any issuance of Common Stock or Common Stock Equivalents described in Section 2(b) above; provided, however,
that a Dilutive Issuance shall not include any Exempt Issuance.

 

(f) “Exempt
Issuance” means the issuance of all shares of Common Stock and Common Stock Equivalents actually issued by the Company
on or after the date hereof: (A) upon conversion of this Warrant; (B) upon issuance and/or conversion of the Promissory Note contemplated
by the Purchase Agreement; (C) pursuant to the exercise of options, warrants or other common stock purchase rights issued (or to
be issued) to employees, officers or directors of, or (so long as the value or exercise price of such issuances of securities is
no less than $1.00 per share), the Company pursuant to any stock purchase plan, stock option plan, equity incentive plan or other
plan or arrangement approved by the Board of Directors (or the Compensation Committee thereof) at any time; (D) pursuant to the
exercise of options, warrants or any evidence of indebtedness, shares of capital stock (other than Common Stock) or other securities
convertible into or exchangeable for Common Stock outstanding as of the date of the issuance of this Warrant); (E) in connection
with the acquisition of all or part of another entity by stock acquisition, merger, consolidation or other reorganization, or by
the purchase of all or part of the assets of such other entity (including securities issued to persons formerly employed by such
other entity and subsequently hired by the Company and to any brokers or finders in connection therewith); (F) in connection with
strategic transactions approved by the Board of Directors (provided such transactions is not primarily for the purpose of raising
capital); (G) to bona fide commercial partners, or lessors in connection with credit arrangements, equipment financings or similar
transactions approved by the Board of Directors; (H) in connection with the Company’s acquisition, joint-venture, licensing
or business transaction of intellectual property assets from any individuals or entities approved by the Board of Directors; and
(i) shares of Common Stock issued pursuant to real property leasing arrangement from a bank approved by the Board of Directors
of the Company.

 

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

 

(h) “Market
Price” means the average of the previous VWAP for the 5 trading days immediately prior to the date of the respective
Exercise Notice.

 

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

 

* * * * * * *

 

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IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the Issuance Date set forth above.

 

	 	BRAIN SCIENTIFIC INC.
	 	 	 
	 	/s/ Boris Goldstein
	 	Name:  	Boris Goldstein
	 	Title:	Chairman

 

    8

     

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

(To be executed by the registered holder
to exercise this Common Stock Purchase Warrant)

 

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

 

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

 

		☐	a cash exercise with respect to _________________ Warrant Shares; or

		☐	by cashless exercise pursuant to the Warrant.

 

		2.	Payment of Exercise Price. If cash exercise is selected above, the holder shall pay the
applicable Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

 

		3.	Delivery of Warrant Shares. The Company shall deliver to the holder __________________ Warrant
Shares in accordance with the terms of the Warrant.

 

Date: _____________________

 

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

 

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EXHIBIT B

 

ASSIGNMENT OF WARRANT

 

(To be signed only upon authorized transfer
of the Warrant)

 

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

 

Dated: __________________

 

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

 

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

 

 

10Exhibit 10.5

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT
is entered into as of this 28th day of December 2020, by and among BRAIN SCIENTIFIC INC. (“Debtor”),
and AUCTUS FUND, LLC (“Secured Party”).

 

Recitals

 

Debtor has agreed to borrow $300,000 (the “Loan”)
from the Secured Party; pursuant to a $300,000 senior secured 12% note (the “Note”).

 

As a condition to
the agreement of the Secured Party to loan such amount to Debtor, Debtor is required to enter into this Security Agreement and
to grant to the Secured Party a security interest in the Collateral (as hereinafter defined).

 

NOW, THEREFORE, in consideration of the foregoing and of the
mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:

 

Agreement

 

		1.	SECURITY

 

1.1 Grant of Security
Interest. As security for all of the Obligations (as defined in Section 1.2), Debtor hereby grants
to the Secured Party, a continuing security interest (as that term is defined in the Uniform Commercial Code as in effect in Nevada
on the date hereof (the “Uniform Commercial Code”)), in, and assigns and pledges to the Secured Party all of
the Debtor’s right, title and interest in and to the following, whether now owned or hereafter acquired (by operation of
law or otherwise), and whether now or hereafter existing, owned by Debtor or in which Debtor otherwise has any rights (collectively,
the “Collateral”):

 

		(a)	All of Debtor’s tangible personal property, including without limitation all present and
future inventory, equipment (including items of equipment that are or become fixtures), now owned or hereafter acquired;

 

		(b)	Accounts, interests in goods represented by accounts, returned,
reclaimed or repossessed goods with respect thereto and rights as an unpaid vendor; contract rights; Chattel Paper; investment
property; intangibles (including but not limited to, tax and duty claims and refunds, registered and unregistered patents, trademarks,
service marks, certificates, copyrights trade names, applications for the foregoing, trade secrets, goodwill, processes, drawings,
blueprints, customer lists, licenses, whether as licensor or licensee, chooses in action and other claims, and existing and future
leasehold interests in equipment, real estate and fixtures); Documents; Instruments; letters of credit, bankers’ acceptances
or guarantees; cash moneys, deposits; securities, bank accounts, deposit accounts, credits and other property now or hereafter
owned or held in any capacity by Debtor, as well as agreements or property securing or relating to any of the items referred to
above;

 

		(c)	All patents and patent applications and the inventions and improvements described and claimed therein,
including without limitation, all patents and patent applications described on Schedule 1.1 hereto, together with
(i) all reissues, divisionals, continuations, renewals, substitutions, extensions and continuations-in-part thereof, (ii) all income,
royalties, damages and payments now or hereafter due or payable under and with respect thereto, including without limitation, damages
and payments for past, present and future infringements thereof, (iii) the right to sue for past, present and future infringements
thereof, and (iv) all rights corresponding, incident or relating thereto (collectively, the “Patents”);

 

     

     

    

 

		(d)	All inventory, wherever located, whether now owned or hereafter
acquired, of whatever kind, nature or description, including all raw materials, work-in-process, finished goods, and materials
to be used or consumed in Debtor’s business; finished goods, timber cut or to be cut, oil, gas, hydrocarbons, and minerals
extracted or to be extracted, and all names or marks affixed to or to be affixed thereto for purposes of selling same by the seller,
manufacturer, lessor or licensor thereof and all inventory which may be returned to any Debtor by its customers or repossessed
by any Debtor and all of Debtor’s right, title and interest in and to the foregoing (including all of a Debtor’s rights
as a seller of goods;

 

		(e)	All equipment and fixtures, wherever located, whether now
owned or hereafter acquired, including, without limitation, all machinery, furniture and fixtures, and any and all additions, substitutions,
replacements (including spare parts), and accessions thereof and thereto (including, but not limited to Debtor’s rights to
acquire any of the foregoing, whether by exercise of a purchase option or otherwise;

 

		(f)	All licenses and similar agreements and covenants not to sue with respect to all Patents or any
of them (other than any existing license agreements or covenants not to sue which by their terms prohibit assignment, transfer
or the grant of a security interest by Debtor or give the other party thereto the right to terminate the same upon an assignment,
transfer or grant of a security interest therein, which licenses or covenants not to sue do not in the aggregate have a material
adverse effect on the value or utility of the Patents or other assets of Debtor individually or as a whole), together with (i)
all renewals, extensions, supplements and continuations thereof and supplements thereto, (ii) income, royalties, damages and payments
now or hereafter due or payable with respect thereto, including without limitation, damages and payments for past, present and
future breaches thereof, (iii) the right to sue for past, present and future breaches thereof, and (iv) all rights corresponding,
incident or relating thereto (collectively, the “Licenses”);

 

		(g)	To the extent that such rights are assignable, all of Debtor’s other intangible personal
property, including, without limitation, all present and future accounts, contract rights, permits, licenses, general intangibles,
chattel paper, documents, and instruments, now owned or hereafter acquired;

 

		(h)	Any and all additions to any of the foregoing, and any and all replacements, products and proceeds
(including insurance proceeds) of any of the foregoing.

 

For purposes of this Agreement, the terms
“accounts,” “chattel paper,” “documents,” “general intangibles,”
“instruments,” “inventory,” “fixtures”, “contract rights”
and “equipment” shall have the meanings ascribed to them in Article 9 of the Uniform Commercial
Code, “Government Account” shall mean all accounts arising out of any Government Contract and “Government Contract”
shall mean all contracts with the United States Government or with any agency thereof, and all amendments thereto.

 

    2

     

    

 

1.2  Obligations. The
security interest created hereby in the Collateral constitutes a continuing security interest for all of the following obligations,
indebtedness and liabilities, whether now existing or hereafter incurred or arising (collectively, the “Obligations”):

 

		a.	The payment and performance by Debtor, as and when due and payable, of all amounts from time to
time owing by it under or with respect to, whether for principal, interest, fees, expenses or otherwise, and the performance of
all other obligations of Debtor under, the Note, this Agreement, or any other document or instrument now or hereafter delivered
in connection with or as security for the Note (collectively, the “Loan Documents”);

 

		b.	All loans and future advances made by Secured Party to Debtor evidenced by, and all other debts,
obligations and liabilities of every kind and character of Debtor arising from, the Note, or hereafter arising in favor of Secured
Party, whether such debts, obligations or liabilities be direct or indirect, primary or secondary, joint or several, fixed or contingent,
and whether originally payable to Secured Party or to a third party and subsequently acquired by Secured Party and whether such
debts, obligations or liabilities are evidenced by notes, open account, overdraft, endorsement, security agreement, guaranty, or
otherwise (it being contemplated that Debtor may hereafter become indebted to one or more Secured Party in further sum or sums,
but Secured Party shall have no obligation to extend further indebtedness by reason of this Agreement);

 

		c.	All expenditures made or incurred by Secured Party to protect and maintain the Collateral and to
enforce the rights of Secured Party under this Agreement;

 

		d.	The due performance and observance by Debtor of all of its other obligations and undertakings from
time to time existing under or with respect to the Loan Documents or any other document or instrument now or hereafter delivered
in connection with or as security for any of the Loan Documents; and

 

		e.	All renewals, extensions, amendments, modifications, supplements or restatements of or substitutions
for any of the foregoing.

 

Notwithstanding anything
to the contrary contained in this Agreement, the Obligations are not intended to include, and the Collateral is not intended to
secure, amounts owing from the Debtor to Secured Party under any promissory note (other than the Note, which is intended to be
secured hereby) made by the Debtor in favor of Secured Party before the date of this Agreement.

 

1.3 Certain Rights
of Secured Party. The Secured Party shall have the right, but not the obligation, to pay any taxes or levies
on the Collateral or any costs to repair or to preserve the Collateral, which payment shall be made for the account of Debtor and
shall constitute a part of the obligations owed to the Secured Party and secured pursuant to this Agreement.

 

    3

     

    

 

1.4 Financing Statements. At
the request of the Secured Party, Debtor will execute such financing statements, continuation statements, and other documents with
respect to the Collateral pursuant to the Uniform Commercial Code and otherwise as Secured Party may request, in form satisfactory
to the Secured Party, and Debtor will pay the cost of filing the same in all public offices where filing is reasonably necessary
(including, without limitation, the cost of filing in the office of the California Secretary of State and the United States Patent
and Trademark Office).

 

1.5 No Release.
 No injury to, or loss or destruction of, any item of the Collateral shall relieve Debtor of any obligation under this Agreement
or under any of the other Loan Documents.

 

		2.	REPRESENTATIONS AND WARRANTIES OF DEBTOR

 

In order to induce Secured Party to enter
into this Agreement and to make the Loan, Debtor hereby makes the following representations and warranties to Secured Party:

 

2.1 Organization;
Due Authorization; Enforceability. Debtor is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada.  The execution, delivery and performance by Debtor of this Agreement and all transactions
contemplated herein are within Debtor’s corporate powers and have been duly authorized by all necessary action on the part
of Debtor, corporate and otherwise.  This Agreement has been duly executed and delivered by Debtor and constitutes the valid
and binding obligation of Debtor, enforceable against Debtor in accordance with its terms, except as enforcement may be limited
by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally and by general principles
of equity.

 

2.2 No Conflicts
or Consents.  Neither the ownership nor the intended use of the Collateral by Debtor, nor the grant of the security
interest by Debtor to Secured Party herein, nor the exercise by Secured Party of any rights and remedies hereunder, does or will
(i) conflict with or violate any provision of the Articles of Organization, Operating Agreement or other governing documents of
Debtor, (ii) conflict with or violate any applicable domestic or foreign law, statute, rule or regulation applicable to or binding
upon Debtor, (iii) conflict with or violate any agreement, judgment, license, order or permit applicable to or binding upon Debtor,
or (iv) result in or require the creation of any lien, charge or Encumbrance (as defined below) upon any assets or properties of
Debtor except as expressly contemplated by this Agreement.  Except for filings of financing statements to be made in favor
of Secured Party and filing a copy of this Agreement with the United States Patent and Trademark Office, no consent, approval,
authorization or order of, and no notice to or filing with, any court, governmental authority or third party is required in connection
with the grant by Debtor of the security interest herein or the exercise by Secured Party of any rights and remedies hereunder.

 

2.3 Security Interest.
 Debtor has and will have at all times full right, power and authority to grant a security interest in the Collateral
to Secured Party in the manner provided herein, free and clear of any lien, security interest, adverse claims or other charges
or encumbrances. This Agreement creates a valid and binding security interest in favor of Secured Party in the Collateral securing
the Obligations.  The filing of the financing statements and other instruments of registration delivered concurrently herewith
by Debtor to Secured Party will perfect, and establish the first priority of, Secured Party’s security interests hereunder
in the Collateral securing the Obligations.  No further or subsequent filing, recording, registration, other public notice
or other action is necessary or desirable to perfect or otherwise continue, preserve or protect such security interest, except
for continuation statements or filings.

 

    4

     

    

 

2.4 Title to Assets. As
of the date hereof, Debtor has good, valid, and marketable title to all of its properties and assets (whether real or personal),
and there exists no mortgage, lien, security interest, reservation, covenant, restriction or other encumbrance (each of the foregoing
hereinafter referred to as an “Encumbrance”) of any nature upon, or with respect to, Debtor or any of its properties
or assets, including, without limitation, the Collateral, except for liens of record and the security interests created by this
Agreement.  

 

2.5 Taxes.
 Debtor has filed all tax returns and reports required by any governmental authority to be filed by Debtor, and such returns
and reports are true and correct.  Debtor has paid all taxes, assessments, and other government charges imposed upon it or
its income, profits or properties, or upon any part thereof, other than those presently payable without penalty or interest.

 

2.6 No Default.  No
Event of Default (as defined in Section 6.1 hereof), and no event which with notice, lapse of time, or both
would constitute an Event of Default, has occurred and is continuing as of the date hereof.

 

		3.	AFFIRMATIVE COVENANTS OF DEBTOR

 

Until all of the Obligations
of Debtor are paid and performed in full, Debtor hereby covenants and agrees that it shall, unless the Secured Party otherwise
consents in advance in writing:

 

3.1 Payment of
Note.  Punctually pay the principal of and interest on the Note and all other amounts that may be due thereunder at
the times and places and in the manner specified therein, except to the extent of any principal or interest that is converted into
common stock of the Debtor according to the terms of the Note.

 

3.2 Corporate Existence. Preserve,
maintain, and keep in full force and effect its corporate existence in the jurisdiction of its incorporation.

 

3.3 Taxes, Charges,
and Obligations.  Pay and discharge all taxes, assessments, and governmental charges or levies imposed upon it or
upon its income, profits, properties or any part thereof, prior to the date on which penalties or interest attach thereto, as well
as all claims which, if unpaid, might become an Encumbrance upon any properties of Debtor, and pay, discharge or otherwise satisfy
at or before maturity or before they become delinquent, as the case may be, all of the indebtedness and other obligations of whatever
nature of Debtor; provided, however, that Debtor shall not be required to pay any such tax, assessment, charge, levy,
claim, indebtedness or obligation so long as (a) the validity thereof is being diligently contested by Debtor in good faith
and by proper proceedings, (b) Debtor sets aside on its books adequate reserves therefor in accordance with generally accepted
accounting principles, (c) during the period of such contest the enforcement of any contested item is effectively stayed,
and (d) in the case where any such tax, assessment, charge, claim or levy might become an Encumbrance upon any item of the
Collateral or any part thereof, Debtor makes arrangements acceptable to the Secured Party to secure the payment thereof.

 

3.4 Maintenance
of Property.  Keep all property used or useful in its business, including, without limitation, the Collateral, in
good repair, working order, and condition, and from time to time make all necessary or desirable repairs, renewals, and replacements
thereof.

 

3.5 Preservation
of Patents.  Prosecute diligently any patent application pertaining to the Patents, now or hereafter pending, file
and prosecute opposition, cancellation, reissue, reexamination, protest, public use, concurrent use and similar proceedings relating
to the Patents, and preserve and maintain all rights in all Patents.  Any expenses incurred in connection with the foregoing
shall be borne by Debtor.

 

    5

     

    

 

3.6 Notice and
Defense of Actions.  Provide Secured Party with immediate notice of any opposition, cancellation, reissue, reexamination,
protest, public use, concurrent use or similar proceeding relating to the Patents or any part thereof, and shall diligently defend
its rights in any such action or proceeding.

 

3.7 Collateral.
 Execute, deliver, and file, or cause the execution, delivery, and filing of, any and all documents (including, without limitation,
financing statements and continuation statements) that Secured Party deem necessary or desirable to create, perfect, preserve,
validate, or otherwise protect a first priority lien and security interest in the Collateral; immediately upon learning thereof,
report to the Secured Party any reclamation, return or repossession of any goods forming a part of the Collateral, any claim or
dispute asserted by any debtor or other obligor owing an obligation to Debtor, and any other matters affecting the value or enforceability
or collectability of any of the Collateral; defend the Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein adverse to the Secured Party, and pay all costs and expenses (including attorneys’ fees
and expenses) incurred in connection with such defense; indemnify and protect the Secured Party against any liability, loss or
expense arising from any such claims, demands, or disputes or out of any such reclamation, return or repossession of goods forming
a part of the Collateral; provided, however, that if the Secured Party shall so elect, the Secured Party
shall have the right at all times to settle, compromise, adjust or litigate all claims and disputes directly with the debtor or
other obligor owing an obligation to Debtor upon such terms and conditions as the Secured Party deems advisable, and all costs
and expenses thereof (including attorneys’ fees and expenses) shall be made for the account of Debtor and shall constitute
a part of the Obligations owed to the Secured Party and secured pursuant to this Agreement.

 

3.8 Notice of Default
and Loss.  Give immediate notice to the Secured Party upon the occurrence of any Event of Default or event which with
notice or lapse of time or otherwise would constitute an Event of Default and of any loss or damage to any of the Collateral.

 

3.9 Information. Furnish
Secured Party any information that any Secured Party may from time to time reasonably request concerning any covenant, provision
or representation contained in this Agreement or any other matter in connection with the Collateral or Loan Documents.

 

		4.	NEGATIVE COVENANTS OF DEBTOR

 

Until
all of the Obligations of Debtor are paid and performed in full, Debtor hereby covenants and agrees that it shall not, unless the
Secured Party otherwise consents in advance in writing: 

 

4.1 Fundamental
Changes.  Amend its Certificate of Incorporation or bylaws by any amendment which would adversely affect Debtor’s
ability to perform or comply with any of the terms, conditions or agreements to be performed or complied with by Debtor hereunder
or under any of the Loan Documents or to perform any of the transactions contemplated hereby or thereby, change its name, consolidate
or merge with any other corporation or other entity, or purchase, lease or otherwise acquire all or substantially all of the assets
of any other entity, including shares of stock of other corporations, except that Debtor may own notes and other receivables acquired
in the ordinary course of business.  Debtor shall not take any action described in this Section 4.1 unless
and until Debtor has taken all action requested by Secured Party to further perfect or protect Secured Party’s security interests
in the Collateral.

 

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4.2 Transfer of
Assets.  Sell, lease, assign (by operation of law or otherwise), pledge or otherwise dispose of any of its properties
or assets (including, without limitation, the Collateral), whether now owned or hereafter acquired, except for sales of properties
and assets other than the Patents and Licenses in the ordinary course of business and for fair market value.  Debtor shall
not enter into any agreement relating to any Patent or License other than licensing agreements in the ordinary course of business,
which are not inconsistent with the terms hereof and which do not have a material adverse effect on Debtor.

 

		5.	POWERS AND AUTHORIZATIONS

 

5.1 New or Additional
Patents. If, before the Obligations shall have been satisfied in full, Debtor shall obtain rights to any new
or additional patents or applications therefor, Debtor shall give to Secured Party prompt notice thereof in writing.  Any
such new patents and applications therefor shall, without any further action on behalf of Debtor, automatically become subject
to the terms of this Agreement and shall be deemed to be Patents for the purposes of this Agreement.  Debtor will amend Schedule
1.1 to include any new or additional patents and applications therefor, but such new or additional patents and applications
therefor shall constitute Collateral hereunder whether or not Debtor so amends Schedule 1.1; and Debtor agrees to execute
such additional security agreements, financing statements, instruments of registration and related documents as may be reasonably
requested by Secured Party to perfect Secured Party’s security interest in such patents and applications therefor.

 

5.2. Power of
Attorney. Debtor hereby irrevocably appoints Secured Party as Debtor’s attorney-in-fact and proxy, with
full authority in the place and stead of Debtor and in the name of Debtor or otherwise, in such Secured Party’s discretion,
at any time upon the occurrence and during the continuance of an Event of Default, to take any action and to execute any instrument
which such Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including without limitation
(i) to obtain and adjust insurance required to be paid to any Secured Party under the Loan Documents, (ii) to ask, demand,
collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect
of any of the Collateral, (iii) to receive, endorse and collect any drafts or other instruments, documents and chattel paper
in connection with clause (i) or clause (ii) above, (iv) to file any claims or take any action or institute any
proceedings that such Secured Party may deem necessary or desirable for the collection of any of the Collateral or otherwise to
enforce the rights of Secured Party with respect to any of the Collateral, and (v) to execute and file one or more financing
or continuation statements, and amendments thereto, relating to the Collateral.  Secured Party shall be under no duty to exercise
or withhold the exercise of any of the rights, powers, privileges, and options expressly or implicitly granted to Secured Party
in this Agreement, and shall not be responsible for any failure to do so or any delay in doing so.  Secured Party shall not
be liable for any act or omission or for any error of judgment or any mistake of fact or law in their individual capacity or in
their capacity as attorney-in-fact except acts or omissions resulting from such Secured Party’s willful misconduct or gross
negligence.  This power of attorney is conferred on Secured Party solely to protect, preserve and realize upon the security
interests in the Collateral.  Secured Party shall not be responsible for any decline in the value of the Collateral and shall
not be required to take any steps to preserve rights against prior parties or to protect, preserve or maintain any security interest
or lien given to secure the Collateral.  The powers granted herein are coupled with an interest and shall be irrevocable from
the date hereof and so long as any part of the Obligations is outstanding.

 

    7

     

    

 

5.3 Performance
by Secured Party. If Debtor fails to perform any agreement or obligation contained herein, Secured Party may
itself, at its option and in its sole discretion, perform, or cause performance of, such agreement or obligation, and the expenses
of such Secured Party incurred in connection therewith shall be payable by Debtor on demand; provided, however, that nothing herein
shall impose any obligation of any kind whatsoever on Secured Party to perform any obligation or agreement of Debtor.

 

		6.	EVENTS OF DEFAULT AND REMEDIES

 

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

 

		(a)	any action or event that is an “Event of Default” under the Note; (b) Debtor
shall fail to pay or perform the Obligations when due; (c) any representation or warranty made by or on behalf of Debtor herein
or in any other Loan Document shall prove to have been incorrect in any material respect on or as of any date as of which made;
(d) Debtor shall at any time fail to observe, satisfy or perform any of the covenants or agreements contained in Sections
3.1, 3.2, 4.1, or 4.5 of this Agreement; (e) Debtor shall at any time fail to observe, satisfy or perform any of the covenants
or agreements contained in Sections 3 or 4 (other than in Sections 3.1, 3.2, 4.1 or 4.5) of this Agreement, except that no failure
to observe any of such covenants or agreements hereof shall constitute an Event of Default hereunder unless such default shall
continue unremedied for a period of twenty (20) business days after written notice of the existence of such default shall have
been received by Debtor from Secured Party; or (f) Debtor shall default in the payment of principal of or interest on any
indebtedness (other than the Note) of Debtor or any such indebtedness shall be accelerated or otherwise become due and payable
prior to its stated maturity.

 

6.2 Rights and
Remedies of the Secured Party.  Upon the occurrence of any Event of Default, or at any time thereafter, in addition
to all other rights, powers and remedies herein conferred, conferred in the other Loan Documents or conferred by operation of law,
Secured Party may declare the Obligations due, payable and performable or to become due, payable and performable to such Secured
Party immediately, including all principal and interest remaining unpaid on the Note payable to Secured Party and all other amounts
with respect to Secured Party secured hereby or thereby, all without demand, presentment or notice, all of which are hereby expressly
waived; and from time to time in its discretion, without limitation and without notice except as expressly provided below, Secured
Party may:

 

(a) Exercise with
respect to the Collateral all the rights and remedies of a secured party on default under the Uniform Commercial Code (whether
or not the Uniform Commercial Code applies to the affected Collateral);

 

    8

     

    

 

(b) Require Debtor
to, and Debtor hereby agrees that it shall at its expense and upon request of Secured Party forthwith, assemble all or part of
the Collateral and the documentation relating to the Collateral as directed by such Secured Party and make it available to such
Secured Party at a place to be designated by such Secured Party which is reasonably convenient to both parties;

 

(c) Reduce its claim
to judgment or foreclose or otherwise enforce, in whole or in part, the security interest created hereby by any available judicial
procedure;

 

(d) Dispose of, at
its office, on the premises of Debtor or elsewhere, all or any part of the Collateral, as a unit or in parcels, by public or private
proceedings, and by way of one or more contracts (it being agreed that the sale of any part of the Collateral shall not exhaust
Secured Party’s power of sale, but sales may be made from time to time, and at any time, until all of the Collateral has
been sold or until the Obligations have been paid and performed in full), and at any such sale it shall not be necessary to exhibit
any of the Collateral;

 

(e) Buy the Collateral,
or any portion thereof, at any public sale;

 

(f) Buy the Collateral,
or any portion thereof, at any private sale if the Collateral is of a type customarily sold in a recognized market or is of a type
that is the subject of widely distributed standard price quotations;

 

(g) Apply by appropriate
judicial proceedings for appointment of a receiver for the Collateral, or any part thereof, and Debtor hereby consents to any such
appointment; and

 

(h) At its discretion,
retain the Collateral in satisfaction of the Obligations whenever the circumstances are such that Secured Party is entitled to
do so under the Uniform Commercial Code or otherwise.

 

Debtor agrees that,
to the extent notice of sale shall be required by law, five (5) calendar days’ notice to Debtor of the time and place of
any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  Secured
Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  Secured Party
may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned.

 

6.3 Application
of Proceeds. Upon the occurrence of any Event of Default, or at any time thereafter, Secured Party may
in its discretion apply any cash held by Secured Party as Collateral, and any cash proceeds received by any Secured Party with
respect to any sale of, collection from, or other realization upon all or any part of the Collateral, to any or all of the following
in such order as Secured Party may elect:

 

		(a)	To the repayment of the reasonable out-of-pocket costs and expenses, including attorneys’
fees and legal expenses, incurred by Secured Party in connection with (i) the administration of this Agreement, (ii) the
custody, preservation, use or operation of, or the sale of, collection from, or other realization upon, any Collateral, (iii) the
exercise or enforcement of any of the rights of Secured Party hereunder; or (iv) the failure of Debtor to perform or observe
any of the provisions hereof;

 

    9

     

    

 

		(b)	To the payment or other satisfaction of any liens and other encumbrances upon any of the Collateral;

 

		(c)	To the reimbursement of Secured Party for the amount of any obligations of Debtor paid or discharged
by Secured Party pursuant to the provisions of this Agreement or the other Loan Documents, and of any expenses of Secured Party
payable by Debtor hereunder or under the other Loan Documents;

 

		(d)	To the satisfaction of any other Obligations;

 

		(e)	By holding the same as Collateral;

 

		(f)	To the payment of any other amounts required by applicable law; and

 

		(g)	By delivery to Debtor or to whomsoever shall be lawfully entitled to receive the same or as a court
of competent jurisdiction shall direct.

 

Unless the Secured
Party otherwise agrees, all proceeds received by Secured Party from the sale of, collection from, or other realization upon any
Collateral (net of the actual unreimbursed out-of-pocket costs incurred by Secured Party in connection with such sale, collection
or other realization) and all payments to Secured Party to reimburse it for certain expenses as provided herein if Debtor can not
pay 100% of the demanded expense amounts shall be distributed to Secured Party.  

 

6.4 Deficiency. In
the event that the proceeds of any sale, collection or realization of or upon the Collateral by Secured Party are insufficient
to pay all amounts to which Secured Party is legally entitled, Debtor shall be liable for the deficiency, together with interest
thereon as provided in the governing Loan Documents or (if no interest is so provided) at such other rate as shall be fixed by
applicable law, together with the costs of collection and the fees and expenses of any attorneys employed by Secured Party to collect
such deficiency.

 

6.5 Non-Judicial
Remedies. In granting to Secured Party the power to enforce its rights hereunder without prior judicial process
or judicial hearing, Debtor expressly waives, renounces and knowingly relinquishes any legal right which might otherwise require
Secured Party to enforce its rights by judicial process.  In so providing for non-judicial remedies, Debtor recognizes and
concedes that such remedies are consistent with the usage of trade, are responsive to commercial necessity, and are the result
of a bargain at arm’s length. Nothing herein is intended to prevent Secured Party or Debtor from resorting
to judicial process at any party’s option.

 

6.6 Remedies
Not Exclusive. All rights, powers and remedies herein conferred are cumulative, and not exclusive, of (i) any
and all other rights and remedies herein conferred or provided for, (ii) any and all other rights, powers and remedies conferred
or provided for in the Loan Documents, and (iii) any and all rights, powers and remedies conferred, provided for or existing
at law or in equity, and Secured Party shall, in addition to the rights, powers and remedies herein conferred or provided for,
be entitled to avail itself of all such other rights, powers and remedies as may now or hereafter exist at law or in equity for
the collection of and enforcement of the Obligations and the enforcement of the warranties, representations, covenants, indemnities
and other agreements contained the Loan Documents.  Each and every such right, power and remedy may be exercised from time
to time and as often and in such order as may be deemed expedient by Secured Party and the exercise of any such right, power or
remedy shall not be deemed a waiver of the right to exercise, at the same time or thereafter, any other right, power or remedy.
 No delay or omission by Secured Party or other person or entity in the exercise of any right, power or remedy will impair
any such right, power or remedy or operate as a waiver thereof or of any other right, power or remedy then or thereafter existing.

 

    10

     

    

 

		7.	MISCELLANEOUS PROVISIONS

 

7.1 Additional
Actions and Documents. Debtor shall take or cause to be taken such further actions, shall execute, deliver,
and file or cause to be executed, delivered, and filed such further documents and instruments, and shall obtain such consents as
may be necessary or as the Secured Party may reasonably request in order fully to effectuate the purposes, terms, and conditions
of this Agreement and the other Loan Documents, whether before, at or after the closing of transactions contemplated hereby and
thereby or the occurrence of an Event of Default hereunder.

 

7.2 Notification. All notices,
requests, instructions or other communications to be given in writing hereunder shall be addressed as follows:

 

If to Debtor:

 

Brain Scientific Inc.

125 Wilbur Place, Suite 170

Bohemia, NY 11716

Attn: Boris Goldstein

 

If to the Secured Party:

 

Auctus Fund,
LLC

545 Boylston
Street, 2nd Floor

Boston, MA
02116

Attn: Lou Posner

Facsimile: (617) 532-6420

 

Written communications
shall be deemed given, when addressed to the other party as set forth above, three days after sent by registered or certified mail,
one day after sent by overnight courier of national repute or on the same day when delivered in person or when sent by facsimile
to the facsimile number as set forth above, provided that the sending party can provide written evidence of the communication’s
successful transmission to such facsimile number.  The notification information of any party may be changed by notifying the
other parties of such change in accordance with this Section 7.2.  Notice by e-mail shall not be effective
for any purpose under this Agreement.

 

If Secured Party receives
from a third party any notice or other written communication relating to the Collateral or any other right or obligation of the
Secured Party under this Agreement, it shall forward promptly a copy of such notice or written communication to the Borrower, unless
it is clear from the face of the notice or written communication that the Borrower has received or will receive the same notice
or written communication from that third party.

 

    11

     

    

 

7.3 Expenses.
 Debtor shall (a) reimburse the Secured Party and save the Secured Party harmless against liability for the payment of
all out-of-pocket expenses arising in connection with enforcement of, or the preservation or exercise of any rights (including
the right to collect and dispose of the Collateral) under, this Agreement or any of the other Loan Documents, including, without
limitation, the fees and expenses of counsel to the Secured Party arising in such connection; and (b) pay, and hold the Secured
Party and subsequent holders of the Note harmless from and against, any and all present and future stamp taxes or similar document
taxes or recording taxes and any and all charges with respect to or resulting from any delay in paying, or failure to pay, such
taxes.

 

7.4 Severability.
 If fulfillment of any provision of the Loan Documents or performance of any transaction related thereto, at the time such
fulfillment or performance shall be due, shall involve transcending the limit of validity prescribed by law, then the obligation
to be fulfilled or performed shall be reduced to the limit of such validity; and if any clause or provision contained in any Loan
Document operates or would operate prospectively to invalidate any Loan Document, in whole or in part, then such clause or provision
only shall be held ineffective, as though not herein or therein contained, and the remainder of the Loan Documents shall remain
operative and in full force and effect.

 

7.5 Waivers. No
waiver by the Secured Party of, or consent by the Secured Party to, a variation from the requirements of any provision of the Loan
Documents shall be effective unless made in a written instrument duly executed on behalf of Secured Party, and any such waiver
shall be limited solely to those rights or conditions expressly waived.

 

7.6 Rights Cumulative.
 The rights and remedies of the Secured Party described in any of the Loan Documents are cumulative and not exclusive of any
other rights or remedies which the Secured Party or the then holder of the Note otherwise would have at law or in equity or otherwise.
 Except as otherwise provided herein, notice to or demand on Debtor in any case shall not entitle Debtor to any other notice
or demand in similar or other circumstances.

 

7.7 Entire Agreement; Modification; Benefit.
 This Agreement, the exhibits hereto, and the other Loan Documents constitute the entire agreement of the parties hereto with
respect to the matters contemplated herein, supersede all prior oral and written agreements with respect to the matters contemplated
herein, and may not be modified, deleted or amended except by written instrument executed by the parties.  All terms of this
Agreement and of the other Loan Documents shall be binding upon, and shall inure to the benefit of and be enforceable by, the parties
hereto and their respective successors and permitted assigns; provided, however, that no Secured Party
may assign or transfer any of its rights or obligations hereunder except in connection with the transfer or assignment of a Note,
which is permitted by the terms thereof.  Debtor shall not have the right to assign or transfer any of its rights or obligations
hereunder without the prior written consent of each Secured Party.

 

7.8 Termination.
 This Agreement shall terminate upon the payment and performance in full of all Obligations under the Note.

 

7.9 Construction.
 This Agreement and the other Loan Documents, the rights and obligations of the parties hereto, and any claims or disputes
relating thereto shall be governed by and construed in accordance with the laws of the State of Colorado (excluding the choice
of law rules thereof).  Each party hereto hereby acknowledges that all parties hereto participated equally in the negotiation
and drafting of this Agreement and that, accordingly, no court construing this Agreement shall construe it more stringently against
one party than against the other.

 

    12

     

    

 

7.10 Pronouns.  All pronouns
and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of
the person or entity may require.

 

7.11 Headings.
 Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be
deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope
of any of the provisions hereof.

 

7.12 Payments.
 If any payment or performance of the Note or of any of the other obligations under this Agreement or any of the other Loan
Documents becomes due on a day other than a Business Day, the due date shall be extended to the next succeeding Business Day, and
interest thereon (if applicable) shall be payable at the then applicable rate during such extension.  For the purposes of
this Agreement, “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks
in Colorado are authorized by law to close.

 

7.13 Execution.
 To facilitate execution, this Agreement and any of the other Loan Documents may be executed in as many counterparts as may
be required; and it shall not be necessary that the signatures of, or on behalf of, each party, or the signatures of all persons
required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each
party, or the signatures of the persons required to bind any party, appear on one or more of the counterparts.  All counterparts
shall collectively constitute a single agreement.  It shall not be necessary in making proof of this Agreement or any other
Loan Document to produce or account for any particular number of counterparts; but rather any number of counterparts shall be sufficient
so long as those counterparts contain the respective signatures of, or on behalf of, all of the parties hereto.

 

    13

     

    

 

IN WITNESS WHEREOF, the undersigned
have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first
hereinabove set forth.

 

	LENDER:	 
	 	 
	AUCTUS FUND, LLC	 
	 	 
	By:	/s/ Lou Posner	 
	Name:  	Lou Posner	 
	Title:	Managing Director	 
	 	 
	DEBTOR	 
	 	 
	Brain Scientific INC.	 
	 	 
	By:	/s/ Boris Goldstein	 
	Name:	Boris Goldstein	 
	Title:	Chairman	 

 

 

14

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