Document:

Exhibit 10.3

 

SUBSCRIPTION
AGREEMENT FOR SHARES OF SERIES A PREFERRED STOCK AND COMMON STOCK PURCHASE WARRANTS

 

This
SUBSCRIPTION Agreement (this “Agreement”)
is made as of March 29, 2018 by, and between MYnd Analytics, Inc., a Delaware corporation (the “Company”),
and the investors listed on Schedule A hereto (each, an “Investor,” and collectively, the “Investors”).

 

WITNESSETH

 

In
consideration for the mutual promises and covenants herein, the parties agree as follows:

 

WHEREAS,
the Company is offering, in a private placement, of an aggregate of $3,000,000 of Series A Preferred Stock (“Series A
Preferred Stock”), par value $0.001 per share (the “Shares”) and Warrants (“Warrants”)
to purchase up to $3,000,000shares of Common Stock (“Common Stock”), par value $0.001 per share in a private
placement to accredited investors pursuant to a Confidential Offering Memorandum dated March 28, 2018 (the “Offering”);
and

 

WHEREAS,
the undersigned desires to subscribe for and purchase the number of Shares set forth on Schedule A hereto.

 

Section
1 – Purchase and Sale of SHARES 

 

1.1       Purchase
and Sale of Shares. The Company has authorized the issuance and sale, in accordance with the terms hereof, of shares of Preferred
Stock and Warrants. On the terms and subject to the conditions set forth in this Agreement, at the Closing (as defined below),
the Company agrees to issue to each Investor, and each Investor agrees to purchase from the Company, in the amount set forth on
Schedule A. The Company will sell Shares and Warrants to more than one Investor, each of whom will sign a copy of this
Subscription Agreement or a conformed copy hereof. Each Investor may purchase Warrants to purchase such number of shares of Common
Stock equal to the number of Shares for which they subscribe. The purchase price for each Share shall not be less than the Closing
Consolidated Bid Price for the Company’s Common Stock as reported by the Nasdaq Market on the business day prior to the Closing.
The purchase price for the Warrants shall equal $0.125 for every Share that an Investor is purchasing and the Warrants will have
an exercise price equal to 125% of the purchase price for the Shares.

 

1.2       Closing.

 

(a)         Closing.
The purchase and sale of the Shares and Warrants shall take place at a closing (the “Closing”) which shall take place remotely via exchange of documents and signatures at 10:00 a.m. Eastern Time on the same business day as
the execution and delivery of this Agreement, or at such other place and time as may be agreed to among the Company and the Investors.
At the Closing, the Company shall deliver to each of the Investors purchasing Shares and Warrants for cash at such closing, a
certificate representing such number of Shares and a Warrant as is set forth opposite such Investor’s name on Schedule
A hereto against receipt of a check subject to collection or a wire transfer in immediately available funds of the purchase
price, to an account designated by the Company. 

 

     

    

    

 

(b)         Conditions.
The obligation of each Investor to purchase and pay cash for the Shares and Warrants to be delivered at a Closing is, unless
waived by such Investor, subject to the condition that the Company’s representations and warranties contained in Section
2 are true, complete and correct on and as of such Closing date. The obligation of the Company to sell and issue Shares and Warrants
to be delivered at a Closing is, unless waived by the Company, subject to the condition that the relevant Investor’s representations
and warranties contained in Section 3 are true, complete and correct on and as of the Closing Date. 

 

Section
2 - Representations and Warranties of the Company

 

The
Company represents and warrants to each Investor as follows:

 

2.1       Existence
of Company. The Company is a duly organized Delaware corporation. The Company is validly existing in all jurisdictions where
it conducts its business.

 

2.2       Authority
to Execute. The execution, delivery and performance by the Company of this Agreement and the issuance of the Shares and Warrants
are within the Company’s corporate powers, have been duly authorized by all necessary corporate action, do not and will
not conflict with any provision of law or organizational document of the Company (including its Certificate of Incorporation or
Bylaws) or of any agreement or contractual restrictions binding upon or affecting the Company or any of its property and need
no further stockholder or creditor consent. 

 

2.3       No
Stockholder Approval Required. No approval of the Company’s stockholders is required for (i) the entry by the Company
into this Agreement, or (ii) the issuance of the Shares and Warrants contemplated by this Agreement.

 

2.4       Series
A Preferred Stock. The Shares will be issued pursuant to the Certificate of Designation, Preferences and Rights of Series
A Preferred Stock (“Certificate of Designation”) attached hereto as Schedule B, will conform in all
respects to the terms thereof. The Certificate of Designation has been filed with the Secretary of State of the State of Delaware. 

 

2.5       Warrants.
The form of Warrant is attached hereto as Schedule C and will conform in all respects to the terms thereof.  

 

2.6       Valid
Issuance. The Shares will be, validly issued, fully paid and nonassessable and each of the Shares and the Warrants will be
free of restrictions on transfer other than restrictions on transfer under, applicable state and federal securities laws and liens
or encumbrances created by or imposed by the Investor. Assuming the accuracy of the representations of the Investor in Section
3 of this Agreement, the Shares and the Warrants will be issued in compliance with all applicable federal and state securities
laws.

 

    2 

    

    

 

2.7       Binding
Obligation. Each of this Agreement and the Warrants is, a valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors’ rights generally and to general equitable principles.

 

2.8       Litigation.
No litigation or governmental proceeding is pending or threatened against the Company which may have a materially adverse effect
on the financial condition, operations or prospects of the Company, and to the knowledge of the Company, no basis therefore exists.

 

2.9       Intellectual
Property. To the best of the Company’s knowledge, the Company owns or possesses sufficient legal rights to all patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary rights and processes
necessary for its business as now conducted and as presently proposed to be conducted, without any known infringement of the rights
of others. There are no outstanding options, licenses or agreements of any kind relating to the foregoing proprietary rights,
nor is the Company bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary rights and processes of any
other person or entity other than such licenses or agreements arising from the purchase of “off the shelf” or standard
products.

 

2.10      SEC
Reports.The Company has filed all forms, reports, schedules, proxy statements, registration statements and other documents
(including all exhibits thereto) required to be filed by it with the U.S Securities and Exchange Commission (the “SEC”)
pursuant to the federal securities laws and the SEC rules and regulations thereunder, together with all certifications required
pursuant to the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) (as they have been amended since the
time of their filing, including all exhibits thereto, the “SEC Reports”). Each of the SEC Reports complied
in all material respects with the applicable requirements of the Securities Act of 1933, as amended (the “Securities
Act”) and the Securities Exchange Act of 1934, as amended, the Sarbanes-Oxley Act and the rules and regulations of the
SEC under all of the foregoing. None of the SEC Reports contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

Section
3 - Representations and Warranties of the Investors

 

Each
Investor represents and warrants to the Company as follows:

 

3.1       Authorization;
Binding Obligations; No Violation. The Investor has full power and authority to enter into this Agreement and this Agreement
constitutes a valid and legally binding obligation of the Investor, enforceable against the Investor in accordance with its terms,
subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting
creditors’ rights generally and to general equitable principles. The execution and delivery by the Investor of this Agreement,
the consummation of the transactions contemplated hereby and thereby, and the compliance by the Investor with the terms and provisions
hereof and thereof, will not result in a default under (or give any other party the right, with the giving of notice or the passage
of time, or both, to declare a default or accelerate any obligation under) or violate any charter or similar documents of the
Investor, if other than a natural person, or any contract to which the Subscriber is a party or by which it or any of its properties
or assets are bound, or violate any requirement of law applicable to the Investor.

 

    3 

    

    

 

3.2       Accredited
Investor. The Investor is an “accredited investor” within the meaning of SEC Rule 501 of Regulation D promulgated
under the Securities Act.

 

3.3       Investment
for Own Account. The Shares and the Warrants are being acquired for his, her or its own account, for investment and not with
a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities
Act.

 

3.4       Knowledge
and Experience. The Investor has such knowledge and experience in financial and business matters that (s)he is capable of
evaluating the merits and risks of an investment in the Shares and of making an informed investment decision with respect thereto,
has the ability and capacity to protect his/her interests and can bear the economic risk of the acceptance of the Shares, including
a total loss of his/her investment.

 

3.5
       Opportunity to Ask Questions. The Investor has had the opportunity to ask questions
and receive answers from the Company or any authorized person acting on its behalf concerning the Company and its business and
to obtain any additional information, to the extent possessed by the Company (or to the extent it could have been acquired by
the Company without unreasonable effort or expense) necessary to verify the accuracy of the information received by the Investor.
In connection therewith, the Investor acknowledges that (s)he has had the opportunity to discuss the Company’s business,
management and financial affairs with the Company’s management or any authorized person acting on its behalf.

 

3.6.       Receipt
of Information. The Investor has received and reviewed all of the information concerning the Company and the Shares and the
Warrants , both written and oral, that the Investor desires. Without limiting the generality of the foregoing, the Investor has
been furnished with or has had the opportunity to acquire, and to review: all information, both written and oral, that the Investor
desires with respect to the Company’s business, management, financial affairs and prospects. In determining whether to make
this investment, the Investor has relied solely on his/her own knowledge and understanding of the Company and its business and
prospects based upon the Investor’s own due diligence investigations and the Company’s filings with the SEC.

 

3.7       Disqualification.
No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Investor or, to the Investor’s knowledge, any Covered Person (as hereinafter defined),
except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable. “Covered Person”
means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the Securities Act, any
individual listed in the first paragraph of Rule 506(d)(1) of the Securities Act. 

 

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Section
4 - Miscellaneous

 

4.1       No
Waiver; Cumulative Remedies. No failure or delay on the part of any party to this Agreement in exercising any right or remedy
under, or pursuant to, this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such
right, remedy or power preclude other or further exercise thereof, or the exercise of any other right, remedy or power. The remedies
in this Agreement are cumulative and are not exclusive of any remedies provided by law.

 

4.2       Amendments
and Waivers. Except as otherwise expressly set forth in this Agreement, any term of this Agreement may be amended (either
retroactively or prospectively) with the written consent of the Company and Investors owning a majority of the Shares purchased
in the Offering (“Majority Holders”). Any amendment effected in accordance with this Section 4.2 shall be binding
upon each Investor, each future holder of Shares and the Company.

 

4.3       Notices,
Etc. All notices, requests, consents and other communications hereunder to any party shall be deemed to be sufficient if contained
in a written instrument delivered in person; sent by facsimile transmission; sent by electronic mail; duly sent by first class
registered or certified mail, return receipt requested, postage prepaid; or duly sent by overnight delivery service (e.g.,
Federal Express) addressed to such party (i) if to the Company, at the address, fax number or electronic mail address, as applicable,
set forth on the signature page hereof or (ii) if to an Investor, at the address, fax number or electronic mail address, as applicable,
set forth on Schedule A hereto, or at such other address, fax number or electronic mail address as may hereafter be designated
in writing by the addressee to the sender. All such notices, advises and communications shall be deemed to have been received:
(a) in the case of personal delivery, on the date of such delivery; (b) in the case of facsimile or electronic mail transmission,
on the date of transmission; and (c) in the case of mailing or delivery by service, on the date of delivery as shown on the return
receipt or delivery service statement.

 

4.4       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to the conflicts of law provisions of the State of Delaware or of any other state. The Company and each Investor consent to personal
jurisdiction in New York County, New York.

 

4.5       Severability.
If any term in this Agreement is held to be illegal or unenforceable, the remaining portions of this Agreement shall not be affected,
and this Agreement shall be construed and enforced as if this Agreement did not contain the term held to be illegal or unenforceable.

 

4.6       Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the Company and each Investor and their respective
successors and assigns.

 

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4.7       Transfer
of Shares and Warrants. Notwithstanding the legend required to be placed on the Shares and Warrants by applicable law, no
registration statement or opinion of counsel shall be necessary: (a) for a transfer of Shares or Warrants to the respective estate
of each Investor or for a transfer of Shares and Warrants by gift, will or intestate succession of each Investor to his or her
spouse or to the siblings, lineal descendants or ancestors each Investor or his or her spouse, if the transferee agrees in writing
to be subject to the terms hereof to the same extent as if he or she were the original Investor hereunder; or (b) for a transfer
of Shares and Warrants pursuant to SEC Rule 144 or any successor rule, or for a transfer of Shares and Warrants pursuant to a
registration statement declared effective by the SEC under the Securities Act relating to the Shares and Warrants.

 

4.8       Survival
of Representations, Warranties and Covenants. The representations and warranties of the parties contained in or made pursuant
to this Agreement shall survive the execution and delivery of this Agreement indefinitely, and shall in no way be affected by
any investigation of the subject matter thereof made by or on behalf of the other parties. The covenants of the parties contained
in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement until such time as the Notes
have been paid in full.

 

4.9       Entire
Agreement. This Agreement, the Warrant and the Certificate of Designation constitute the full and entire understanding and
agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the
subject matter hereof existing between the parties are expressly canceled.

 

4.10       Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

 

4.11       California
Commissioner of Corporations. THE SALE OF THE SHARES AND WARRANTS WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SHARES AND WARRANTS OR PAYMENT OR RECEIPT
OF ANY PART OF THE CONSIDERATION FOR SUCH SHARES AND WARRANTS PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SHARES
IS EXEMPT FROM QUALIFICATIONS BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES
TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 

 

[Remainder
of Page Intentionally Left Blank]

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the date first written above.

 

	 	MYND ANALYTICS, INC.
	 	 	 
	 	By:	/s/
Donald E. D’Ambrosio
	 	 	Name:
Donald E. D’Ambrosio
	 	 	Title:
Chief Financial Officer

 

Address/Fax
Number/E-mail Address for Notice: 

 

26522
La Alameda 

Mission
Viejo, CA 92691 

Fax:
(866) 867 4446 

ddambrosio@myndanalytics.com

 

	 	INVESTOR:
	 	 	 
	 	By:	/s/
John Pappajohn
	 	 	Name:
John Pappajohn
	 	 	Director

 

	 	By:	/s/
Peter Unuane
	 	 	Name:
Peter Unuane
	 	 	Director

 

	 	By:	/s/
Mary Pappajohn
	 	 	Name:
Mary Pappajohn

 

[SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT]

 

     

     

    

 

SCHEDULE
A 

 

	Name,
    Address, Fax Number, E-Mail Address and Tax ID Number of Investor 	 

                                                                                                                                                                    Aggregate
Purchase Price  

         

	

         

        Name:_John
Pappajohn _______________ 

         

        Address:_1660
Walt Whitman Road, Suite 105 

        ________Melville,
NY 11747______________

         
	 

         

        

         

        $1,000,000.00

         

	

         

        Name:_Mary
Pappajohn _______________ 

         

        Address:_1660
Walt Whitman Road, Suite 105 

        ________Melville,
NY 11747______________
	 

                                                                                                                         

         

          

        $1,000,000.00

         

         

	

         

        Name:_Peter
Unanue_____________________

         

        Address:_26
Sunden Ct___________________ 

        ________Old
Tappan, NJ 07675____________ 

         

        Email:__Peter.Unanue@goya.com__________ 

         

        Tax
ID:__###-##-####____________________ 

         
	 

        

         

         

        $100,000.00

         

	TOTAL:	$2,100,000.00Exhibit 10.4

  

AMENDMENT NO. 1 TO

SUBSCRIPTION AGREEMENT FOR SHARES OF SERIES A PREFERRED STOCK AND COMMON STOCK PURCHASE WARRANTS

 

This
AMENDMENT NO. 1  to the original Subscription Agreement for Shares of Series A Preferred Stock and Common Stock Purchase
Warrants dated March 29, 2018 (the “Agreement”) is made as of
March 29, 2018 by, and between MYnd Analytics, Inc., a Delaware corporation (the “Company”), and the investors
listed on Schedule A hereto (each, an “Investor,” and collectively, the “Investors”).

 

WITNESSETH

 

In consideration for
the mutual promises and covenants herein, the parties agree as follows:

 

WHEREAS, the
Company entered into the Agreement whereby the Company sold, in a private placement, an aggregate of 1,050,000 shares of newly-designated
Series A Preferred Stock (“Series A Preferred Stock”), par value $0.001 per share (the “Shares”)
and Warrants (the “Warrants”) to purchase an aggregate of 525,000 shares of Common Stock (“Common Stock”),
par value $0.001 per share to accredited investors pursuant to a Confidential Offering Memorandum dated March 28, 2018 (the “Offering”);
and

 

WHEREAS, the
undersigned desires to provide for an amendment (the “Amendment”) as follows:

 

Section
1 – EXCHANGE OF SHARES 

 

1.1       Amendment.
Each Investor hereby agrees that at the time of the Agreement, they should have been issued the number of Shares of Series A Preferred
Stock and the number Shares of Series A-1 Preferred Stock (“Series A-1 Preferred Stock”), par value $0.001 per
share listed on Schedule A to this Amendment. The Series A-1 Preferred Stock will be issued pursuant to the Certificate of Designation,
Preferences and Rights of Series A-1 Preferred Stock (“Certificate of Designation”), attached hereto as Schedule
B. In addition, the Investors agree that the Company will issue upon exchange of the Warrants that were originally issued pursuant
to the Agreement, the Warrants in the form attached hereto as Schedule C. The replacement of the Series A Preferred Stock and
the Warrants shall occur simultaneously with the execution of this Amendment. 

 

1.2       Agreement.
All terms of the Agreement and all representations and warranties shall remain in full force and effect and shall be true and correct
with respect to the Series A-1 Preferred Stock and Warrants as if they were the Series A Preferred Stock and original Warrants
and as if made as of the date of this Amendment.

 

     

     

    

 

Section
2 - Miscellaneous

 

4.1       Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to the conflicts of law provisions of the State of Delaware or of any other state. The Company and each Investor consent to personal
jurisdiction in New York County, New York.

 

4.2       Binding
Effect. This Amendment shall be binding upon and inure to the benefit of the Company and each Investor and their respective
successors and assigns.

 

4.3       Entire
Agreement. This Amendment, the Agreement, the Warrant and the Certificate of Designation constitute the full and entire understanding
and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to
the subject matter hereof existing between the parties are expressly canceled.

 

4.4       Counterparts.
This Amendment may be executed in any number of counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument.

 

4.5       California
Commissioner of Corporations. THE SALE OF THE SHARES AND WARRANTS WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SHARES AND WARRANTS OR PAYMENT OR RECEIPT
OF ANY PART OF THE CONSIDERATION FOR SUCH SHARES AND WARRANTS PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SHARES
IS EXEMPT FROM QUALIFICATIONS BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES
TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT. 

 

[Remainder of Page Intentionally Left
Blank]

 

    2 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the date first written above. 

 

	 	MYND ANALYTICS, INC.
	 	 	 
	 	By:	/s/
Donald E. D’Ambrosio
	 	 	Name:
Donald E. D’Ambrosio
	 	 	Title:
Chief Financial Officer

 

Address/Fax Number/E-mail Address for Notice: 

 

26522 La Alameda 

Mission Viejo, CA 92691 

Fax: (866) 867 4446 

ddambrosio@myndanalytics.com

 

	 	INVESTOR:
	 	 	 
	 	By:	/s/
John Pappajohn
	 	 	Name:
John Pappajohn

 

 

	 	By:	/s/
Mary Pappajohn
	 	 	Name:
Mary Pappajohn

 

[SIGNATURE PAGE TO AMENDMENT OF SUBSCRIPTION
AGREEMENT]

 

     

     

    

 

SCHEDULE A

 

	Name, Address, Fax Number, E-Mail Address and Tax ID Number of Investor 	
         

        Aggregate Purchase Price

         

         

	
          

        Name:_______________John Pappajohn__________________

         

        Address:_____________________________________________

         

        ____________________________________________________

         

         
	
        

         

        250,000 Shares of Series A Preferred Stock  

         

        250,000 Shares of Series A-1 Preferred Stock 

         

         

	
          

        Name: _______________Mary Pappajohn__________________ 

         

        Address:_____________________________________________

         

        _____________________________________________ 

         
	
        

         

        250,000 Shares of Series A Preferred Stock 

         

        250,000 Shares of Series A-1 Preferred Stock

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