Document:

Purchase Agreement

 Exhibit 10.1 
 PURCHASE AGREEMENT 
 This Purchase Agreement (this “Agreement”) is entered into as
of September3, 2008, by and between Comprehensive Care Corporation, a Delaware corporation (the “Company”), and Harry Ross (the “Purchaser”), with respect to the following facts: 
 FACTS 
 WHEREAS, the Company
desires to issue, and the Purchaser desires to purchase Shares of Company Common Stock, and a convertible promissory note convertible into Shares of Common Stock, in the aggregate amount of $250,000, on the terms and conditions set forth in this
Agreement. 
 WHEREAS, the Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption
from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States
Securities and Exchange Commission under the Securities Act. 
 AGREEMENT 
 NOW THEREFORE, in consideration of, and incorporating the facts set forth above, the representations, warranties, conditions and covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 
 ARTICLE I 
 PURCHASE 
 1.1 Purchase. Purchaser hereby agrees to purchase 200,000 shares of common stock, and a Convertible Promissory Note (the “Note”)
in the principal sum of $200,000, in the form attached hereto as Exhibit A. The Purchaser shall pay to the Company $250,000 (the “Purchase Price”), and the Company shall issue and deliver the Shares and the original Note.

 1.2 Deliveries. 
 (a)
On the date hereof, the Company shall issue, deliver or cause to be delivered to the Purchaser the following: 
 (i) This Agreement, duly
executed by the Company; 
 (ii) A stock certificate representing 200,000 Shares of Common Stock, or an irrevocable instruction to the
Transfer Agent to issue such Shares; and 
 (iii) The Note, duly executed by the Company. 

 (b) The Purchaser shall deliver or cause to be delivered to the Company the following: 
 (i) This Agreement, duly executed by the Purchaser; and 
 (ii) The Purchase Price as set forth in Section 1.1, in United States Dollars and in immediately available funds, by bank check or wire transfer to an account designated in writing by the Company for such
purpose. 
 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES 
 2.1 Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchaser that, except as set forth in the SEC Reports (as defined below): 
 (a) Organization and Qualification. The
Company is an entity validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to conduct business and is in good standing as a foreign corporation in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification necessary or appropriate, except where the failure to be so qualified or in good standing, as the case may be, individually or in the aggregate, have not and could not reasonably be expected
to result in (i) a material and adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material and adverse effect on the results of operations, assets, prospects, business or financial condition of
the Company, or (iii) a material and adverse impairment to the Company’s ability to perform on a timely basis its obligations under any Transaction Document (a “Material Adverse Effect”). 
 (b) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it
of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Company and no further corporate action is required by the Company, its Board of Directors or its stockholders. Each
Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 
 (c) No Conflicts. The
execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby or thereby do not and will not (i) conflict with or violate any provision of 

  

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the Company’s certificate of incorporation or bylaws, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or
both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a
Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound, except to the extent that such conflict, default, termination, amendment, acceleration or cancellation right
could not reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the
Company is subject (including federal and state securities laws and regulations and the rules and regulations, assuming the correctness of the representations and warranties made by the Purchaser herein, of any self-regulatory organization to which
the Company or its securities are subject, or by which any property or asset of the Company is bound, except to the extent that such violation could not reasonably be expected to have a Material Adverse Effect). 
 (d) Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than
(i) filings required by applicable state securities laws, (ii) the filing of a Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act, (iii) the filing of any requisite notices or
applications to any applicable Trading Market for the issuance and sale of the Shares and the listing of the Shares for trading or quotation, as the case may be, thereon in the time and manner required thereby, and (iv) those that have been
made or obtained prior to the date of this Agreement. 
 (e) Issuance of the Shares. The Shares, when issued pursuant to this
Agreement or upon the conversion of the Note, as applicable, in accordance with the terms of the Transaction Documents, are or will be duly and validly issued, fully paid and nonassessable, free and clear of all liens other than restrictions on
transfer provided for in the Transaction Documents or imposed by applicable securities laws and shall not be subject to preemptive or similar rights of stockholders. Assuming the accuracy of the representations and warranties of the Purchaser, the
Shares will be issued in compliance with all applicable federal and state securities laws. 
 (f) SEC Reports. The Company has filed
all reports required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, since the end of Company’s most recent fiscal year (the foregoing materials being collectively referred to herein as the
“SEC Reports” and together with this Agreement, the “Disclosure Materials”). As of their respective dates, or to the extent corrected by a subsequent restatement, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, 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. 
  

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 (g) Litigation. There is no pending action which adversely affects or challenges the legality,
validity or enforceability of any of the Transaction Documents or the Purchased Securities. 
 (h) Private Placement. Assuming the
accuracy of the Purchaser’s representations and warranties set forth herein, no registration under the Securities Act is required for the transaction pursuant to the Transaction Documents. 
 (i) No Directed Selling Efforts or General Solicitation. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their
behalf has conducted any “general solicitation” or “general advertising” (as those terms are used in Regulation D) in connection with the offer or sale of the Purchased Securities. 
 (j) Investment Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately following the Closing will
not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 2.2 Representations and Warranties of the Purchaser. The Purchaser represents and warrants to the Company as follows: 
 (a)
Organization; Authority. The Purchaser is an individual with the requisite capacity and authority to enter into and to consummate the transactions contemplated by the applicable Transaction Documents and otherwise to carry out
Purchaser’s obligations hereunder and thereunder. Each of this Agreement and the Transaction Documents has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with terms hereof, will constitute the valid and
legally binding obligation of the Purchaser, enforceable against Purchaser in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 
 (b) Investment Intent. The Purchaser understands that the Shares are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is
acquiring the Shares as principal for Purchaser’s own account for investment purposes only and not with a view to or for distributing or reselling such Shares or any part thereof, without prejudice, however, to the Purchaser’s right,
subject to the provisions of this Agreement, at all times to sell or otherwise dispose of all or any part of such Shares under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state
securities laws. Subject to the immediately preceding sentence, nothing contained herein shall be deemed a representation or warranty by the Purchaser to hold the Shares for any period of time. The Purchaser is acquiring the Shares hereunder in the
ordinary course of business. The Purchaser does not have any agreement, plan or understanding, directly or indirectly, with any Person to distribute any of the Shares. 
 (c) Purchaser Status. At the time the Purchaser was offered the Purchased Securities, it was, and at the date hereof it is, an “Accredited Investor” as defined in Rule 501(a) under the Securities Act.
The Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act. 
  

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 (d) Experience of the Purchaser. The Purchaser, either alone or together with Purchaser’s
representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Securities, and has so evaluated the merits
and risks of such investment. The Purchaser is able to bear the economic risk of an investment in the Purchased Securities and, at the present time, is able to afford a complete loss of such investment. 
 (e) Access to Information. The Purchaser acknowledges that Purchaser reviewed the Disclosure Materials and has been afforded (i) the
opportunity to ask such questions as Purchaser has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Purchased Securities and the merits and risks of investing
in the Purchased Securities; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the
opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. 
 (f) Residency. The Purchaser’s principal place of permanent residence is set forth immediately below the Purchaser’s name on the
signature page hereto. 
 (g) Prohibited Trading Activities. Since the earlier to occur of (i) the time that the Purchaser was
first contacted by the Company or any other Person regarding an investment in the Company and (ii) the 10th Trading Day prior to the date of this Agreement, neither the Purchaser nor any Affiliate of the Purchaser which (x) had knowledge
of the transactions contemplated hereby, (y) has or Shares discretion relating to the Purchaser’s investments or trading or information concerning the Purchaser’s investments, including in respect of the Purchased Securities, or
(z) is subject to the Purchaser’s review or input concerning such Affiliate’s investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any Person acting on behalf of or pursuant
to any understanding with the Purchaser or Trading Affiliate, effected or agreed to effect any transactions in the securities of the Company (including, without limitation, any Short Sales involving the Company’s securities) (each, a
“Prohibited Transaction”). The Purchaser shall not, and shall cause its Trading Affiliates not to, engage, directly or indirectly, in a Prohibited Transaction or in any financial transaction that in any way changes the
Purchaser’s or its Trading Affiliates’ economic position in the Company during the period from the date hereof until the Effectiveness Date. The Purchaser agrees that it will not use any of the Purchased Securities acquired pursuant to
this Agreement to cover any short position in the Common Stock if doing so would be in violation of applicable securities laws. The Purchaser acknowledges that it is aware that the Commission has published its position that covering a short position
established prior to effectiveness of a resale Registration Statement with Shares included in such Registration Statement would be a violation of Section 5 of the Securities Act. 
  

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 (h) Independent Investment Decision. The Purchaser has independently evaluated the merits of
Purchaser’s decision to purchase Purchased Securities pursuant to the Transaction Documents, and the Purchaser confirms that Purchaser has not relied on the advice of any other Purchaser’s business and/or legal counsel in making such
decision. Purchaser further acknowledges that there may be material non-public information regarding Company and its business, financial condition and operations that has occurred or changed since the filing of the most recent SEC Report or is
otherwise not required to be publicly disclosed in the SEC Reports. Purchaser accepts responsibility for the possibility that such information exists and has not been provided to Purchaser, and Purchaser has not relied upon the absence of any such
information in making the decision to invest in the Purchased Securities. The Purchaser understands that nothing in this Agreement or any other materials presented by or on behalf of the Company to the Purchaser in connection with the purchase of
the Purchased Securities constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the
Purchased Securities. 
 ARTICLE III 
 OTHER AGREEMENTS OF THE PARTIES 
 3.1 Compliance with Laws. 
 (a) Transfer of Purchased Securities. Notwithstanding any other provision of this Article IV, the Purchaser covenants that the Purchased Securities
may only be disposed of pursuant to an effective Registration Statement under, and in compliance with the requirements of, 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 compliance with any applicable state and federal securities laws. In connection with any transfer of the Purchased Securities other than pursuant to an effective Registration Statement, pursuant to Rule 144
or in connection with a pledge as contemplated in Section 4.1(b), except as otherwise provided herein, the transferor will provide to the Company an opinion of counsel selected by the transferor, which counsel and the form and substance
of which opinion shall be reasonably satisfactory to the Company and its legal counsel, to the effect that such transfer does not require registration of such transferred Purchased Securities under the Securities Act. Notwithstanding the foregoing,
the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent, without any such legal opinion, except to the extent that the Transfer Agent requests such legal opinion, any transfer of Purchased
Securities by a Purchaser to an Affiliate of the Purchaser, provided that the transferee agrees to the terms and conditions of the Purchased Securities, certifies to the Company that it is an “Accredited Investor” as defined in Rule 501(a)
under the Securities Act and provided that such Affiliate does not request any removal of any existing legends on any certificate evidencing the Purchased Securities. 
  

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 (b) Legends. Certificates evidencing the Purchased Securities and any Shares of Common Stock
underlying the Purchased Securities will contain the following legend, until such time as they are not required under this agreement or applicable law: 
 THESE SECURITIES HAVE NOT 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 OR BLUE SKY LAWS. 
 The Company
acknowledges and agrees that a Purchaser may from time to time pledge, and/or grant a security interest in some or all of the legended Purchased Securities, in compliance with applicable securities laws, pursuant to a bona fide margin agreement in
connection with a bona fide margin loan. Such a pledge would not be subject to approval or consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but
such legal opinion shall be required in connection with a subsequent transfer or foreclosure following default by the Purchaser transferee of the pledge. No advance notice shall be required of such pledge but Purchaser’s transferee shall
promptly notify the Company of the pledge. The Purchaser acknowledges that the Company shall not be responsible for any pledges relating to, or the grant of any security interest in, any of the Purchased Securities or for any agreement,
understanding or arrangement between the Purchaser and its pledgee or secured party. 
 (c) Acknowledgement. The Purchaser
acknowledges its primary responsibilities under the Securities Act and accordingly will not sell the Purchased Securities or any interest therein without complying with the requirements of the Securities Act. To provide further assurance in
connection with de-legending, the Purchaser hereunder commits that it will continue to hold the Purchased Securities in Purchaser’s own name, and not in the name of a nominee, until such time as the Purchased Securities are duly and properly
sold in compliance with all relevant securities laws. Both the Company and its Transfer Agent, and their respective directors, officers, employees and agents, may rely on this subsection (d) and the Purchaser hereunder will indemnify and hold
harmless each of such persons from any breaches or violations of this paragraph. 
 3.2 Use of Proceeds. The Company intends to use
the net proceeds from the sale of the Purchased Securities hereunder for working capital and general corporate purposes. 
 ARTICLE IV 

 DEFINITIONS 
 4.1
Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this Section 1.1: 
 “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries,
Controls, is controlled by or is under common control with such Person. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as the Purchaser will be deemed to be
an Affiliate of the Purchaser. 
  

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 “Business Day” means a day, other than a Saturday, Sunday or federal holiday.

 “Closing” means the closing of the purchase and sale of the Note. 
 “Commission” means the United States Securities and Exchange Commission. 
 “Common Stock” means the Common Stock of the Company, and also includes any securities into which the Common Stock may hereafter be
reclassified. 
 “Control” (including the terms “controlling”, “controlled by” or “under common
control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations
promulgated thereunder. 
 “GAAP” means U.S. generally accepted accounting principals as applied by the Company. 

“Note” means the Convertible Promissory Note executed by Company in favor of Purchaser pursuant to this Agreement. 
 “Person” means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock
company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened in
writing. 
 “Purchased Securities” means the Note, the Shares issued pursuant to this Agreement, and the Shares issuable
upon conversion of the Note, as applicable. 
 “Regulation D” has the meaning set forth in the Facts. 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  

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 “Shares” means the shares of Common Stock to be issued to the Purchaser pursuant to this
Agreement or upon the conversion of the Note. 
 “Short Sales” include, without limitation, all “short sales” as
defined in Rule 3b-3 of the Exchange Act and Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated
brokers having the effect of hedging the securities or investment made under this Agreement. 
 “Trading Day” means a day on
which the Common Stock is listed or quoted on any Trading Market; provided, that in the event that the Common Stock is not listed or quoted on any Trading Market, then Trading Day shall mean a Business Day. 
 “Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange, the NASDAQ National Market, the NASDAQ
Capital Market or OTC Bulletin Board, on which the Common Stock is listed or quoted for trading on the date in question. 
 “Transaction Documents” means this Agreement, the Note, and any other documents or agreements executed in connection with the transactions contemplated hereunder and incorporated herein. 
 “Transfer Agent” means the current or any successor stock transfer agent for the Company. 
 ARTICLE V 
 MISCELLANEOUS

 5.1 Fees and Expenses. The Company and the Purchaser shall each pay the fees and expenses of their respective advisers,
counsel, accountants and other experts, if any and all other expenses incurred by such party in connection with the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp
taxes and other taxes and duties levied in connection with the sale and issuance of the Purchased Securities. 
 5.2 Notices. Any and
all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is
delivered via facsimile, email (provided the sender receives a machine-generated confirmation of successful transmission) at the facsimile number specified in this Section prior to 5:00 p.m. (Pacific time) on a Trading Day, (b) the next Trading
Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:00 p.m. (Pacific time) on any Trading Day,
(c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address and facsimile numbers for
such notices and communications are those set forth on the signature page hereto, or such other address or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person. 
  

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 5.3 Amendments; Waivers; No Additional Consideration. No provision of this Agreement may be waived
or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to
any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 
 5.4 Construction. The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents. 
 5.5 Successors and
Assigns. The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company
without the prior written consent of the Purchaser. The Purchaser may assign its rights hereunder in whole or in part to any Person to whom the Purchaser assigns or transfers any Purchased Securities in compliance with this Agreement and applicable
law, provided such transferee shall agree in writing to be bound, with respect to the transferred Purchased Securities, by the terms and conditions of this Agreement. 
 5.6 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person. 
 5.7 Governing Law. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law. If either party shall commence a Proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such Proceeding shall be reimbursed by the
other party for its reasonable attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 
 5.8 Survival. Subject to applicable statute of limitations, the representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery of the Purchased Securities.

  

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 5.9 Execution. This Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the
event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof. 
 5.10 Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision
that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
 5.11
Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The
parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such
obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be adequate. 
  

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 5.12 Entire Agreement. The Transaction Documents contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents. At or
after the Closing, and without further consideration, the Company and the Purchaser will execute and deliver to the other such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under
the Transaction Documents. 
 IN WITNESS WHEREOF, the parties hereto have caused this Subscription and Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

			
	COMPREHENSIVE CARE CORPORATION
		
	 By:
	 	 /s/ Robert J. Landis

	 Name:
	 	Robert J. Landis
	 Title:
	 	Chief Financial Officer

  

			
	PURCHASER:
		
	Signature:	 	 /s/ Harry Ross

	Name:	 	Harry Ross

  

			
	PURCHASER’S ADDRESS FOR NOTICE:
		
	Street:	 	3622 Reeves Rd.
		
	City/State/Zip:	 	Ojai CA 93023
		
	Attention:	 	Harry Ross
		
	Telephone No.:	 	  

		
	Facsimile No.:	 	  

  

 -12-Convertible Promissory Note

 Exhibit 10.2 
 CONVERTIBLE PROMISSORY NOTE 
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED. 
  
  
 $200,000.00 
 FOR VALUE RECEIVED, Comprehensive Care
Corporation, a Delaware corporation (the “Company”), promises to Harry Ross, an individual (the “Holder”), the principal sum of $200,000.00 on the Maturity Date (as defined below) and to pay interest on the
principal sum outstanding monthly in arrears at the rate of 8.50% per annum, accruing from the date of issuance and delivery of this Note (the “Issue Date”), to the date payment in full of the principal sum has been made or
duly provided for (whether before or after the Maturity Date). 
 This Note is being issued pursuant to the terms of the Purchase Agreement
of even date herewith (the “Purchase Agreement”), to which the Company and the Holder are parties. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Purchase Agreement. 
 This Note is subject to the following additional provisions: 
 1. The term “Maturity Date” means August 31, 2011. 
 2. This Note may be prepaid in
whole or in part at any time prior to the Maturity Date, without penalty. Any payment shall be applied as provided in Section 3. 
 3. Any payment made on account of the Note shall be applied in the following order of priority: (a) first, to any amounts due hereunder other than principal and accrued interest, (b) then, to accrued interest through and including
the date of payment, and (c) then, to principal of this Note. 
 4. All payments contemplated hereby to be made in cash shall be made in
immediately available good funds of United States of America currency by check or wire transfer to an account designated by the Holder. 
 5.
Conversion. 
 a) Voluntary Conversion. At any time after the Issue Date until this Note is no longer outstanding, this Note
shall be convertible into shares of Common Stock at the option of the Holder, in whole or in part, at any time and from time to time. The Holder shall effect conversions by delivering to the Company a notice of conversion (“Notice of
Conversion”), specifying therein the principal amount of Notes to be converted and the date on which such 
  

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 b) conversion is to be effected (“Conversion Date”). If no Conversion Date is specified
in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender Notes to the Company unless the entire
principal amount of this Note plus all accrued and unpaid interest thereon has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion.
The Holder and the Company shall maintain records showing the principal amount converted and the date of such conversions. The Company shall deliver any objection to any Notice of Conversion within five business days of receipt of such notice. The
Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than
the amount stated on the face hereof. However, at the Company’s request, the Holder shall surrender the Note to the Company within five business days following such request so that a new Note reflecting the correct principal amount may be
issued to Holder. 
 c) Conversion Price. Subject to adjustment as provided for in Section 7, the initial conversion price in
effect on any Conversion Date shall be $0.25 per share of common stock of Company. 
 d) Mechanics of Conversion 
 i. Conversion Shares Issuable Upon Conversion of Principal Amount. The number of shares of Common Stock issuable upon a conversion hereunder
(“Conversion Shares”) shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted by (y) the Conversion Price. 
 ii. Delivery of Certificate Upon Conversion. Not later than five business days after any Conversion Date, the Company will deliver to the Holder
a certificate or certificates representing the Conversion Shares for the number of shares of common stock being acquired upon the conversion (including, if so elected by Holder, shares of common stock representing the payment of accrued interest).

 iii. Failure to Deliver Certificates. If in the case of any Notice of Conversion such certificate or certificates are not
delivered to or as directed by the applicable Holder by the fifth business day after a Conversion Date, the Holder shall be entitled by written notice to the Company at any time on or before its receipt of such certificate or certificates
thereafter, to rescind such conversion, in which event the Company shall immediately return the certificates representing the principal amount of Notes tendered for conversion. 
 iv. Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its
authorized and unissued shares of common stock solely for the purpose of issuance upon conversion of the Note as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holders, not less
than such number of shares of the common stock as shall be issuable (taking into account the adjustments of Section 7) upon the conversion of the outstanding principal amount of the Note and payment of interest hereunder. The Company
covenants that all Conversion Shares shall, upon issue, be duly and validly authorized, issued, fully paid, and non-assessable. 
  

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 v. Fractional Shares. Upon a conversion hereunder the Company shall not be required to issue
stock certificates representing fractions of shares of common stock. Any final fraction of a share shall be rounded to the nearest whole share of common stock. 
 vi. Transfer Taxes. The issuance of certificates for Conversion Shares shall be made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or
delivery of such certificate, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of
the Holder and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid. 
 7. Adjustment for Stock Dividends and Stock Splits. If the Company, at any
time while the Note is outstanding: (i) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its common stock or any other equity or equity equivalent securities payable in shares of common stock (which, for
avoidance of doubt, shall not include any Conversion Shares), (ii) subdivide outstanding shares of common stock into a larger number of shares, (iii) combine (including by way of reverse stock split) outstanding shares of common stock into
a smaller number of shares, or (iv) issue by reclassification of shares of the common stock any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of
shares of common stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of common stock outstanding after such event. Any adjustment made pursuant to this Section shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification. 
 8. Investment Intent. The Holder of the Note, by acceptance hereof, agrees that this Note is being acquired for
investment and that such Holder will not offer, sell or otherwise dispose of this Note except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any applicable state Blue Sky securities laws, or
foreign laws or similar laws relating to the sale of securities. 
 9. Choice of Law. This Note shall be governed by and construed in
accordance with the laws of the State of Delaware. To the extent determined by the court, the Company shall reimburse the Holder for any reasonable legal fees and disbursements incurred by the Holder in enforcement of or protection of any of its
rights under any of this Note. 
 10. Waiver of Jury Trial. The Company and the Holder hereby waive a trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against the other in respect of any matter arising out of or in connection with this Note. 
  

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 11. Events of Default. The following shall constitute an “Event of Default”:

  

	 	a.	The Company shall default in the payment of this Note, and fail to cure such default within ten business days following written notice thereof; 

  

	 	b.	The Company shall (i) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (ii) apply for or consent to the appointment of a
trustee, liquidator or receiver for all or substantially all of its property or business; 

  

	 	c.	A trustee, liquidator or receiver shall be appointed for the Company or for all or substantially all of its property or business without its consent; 

  

	 	d.	Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of all or substantially all of the property
or assets of the Company; or 

  

	 	e.	Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted
by the Company. 

 12. Effect of Default. If an Event of Default shall have occurred and be continuing, then unless such
Event of Default shall have been cured or waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s discretion, the Holder may upon ten days
written notice declare this Note in default, without presentment, demand or protest, all of which are hereby expressly waived, and interest shall accrue on the total amount due (the “Default Amount”) on the date of the Event of
Default (the “Default Date”) at the rate of 15% per annum or the maximum rate allowed by law, whichever is lower, from the Default Date until the date payment is made, and the Holder may immediately enforce any and all of the
Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. 
 13. Savings Clause. In the event
for any reason, any payment by or act of the Company or the Holder shall result in payment of interest which would exceed the limit authorized by or be in violation of the law of the jurisdiction applicable to this Note, then ipso facto the
obligation of the Company to pay interest or perform such act or requirement shall be reduced to the limit authorized under such law, so that in no event shall the Company be obligated to pay any such interest, perform any such act or be bound by
any requirement which would result in the payment of interest in excess of the limit so authorized. In the event any payment by or act of the Company shall result in the extraction of a rate of interest in excess of a sum which is lawfully
collectible as interest, then such amount (to the extent of such excess not returned to the Company) shall, without further agreement or notice between or by the Company or the Holder, be deemed applied to the payment of principal, if any, hereunder
immediately upon receipt of such excess funds by the Holder, with the same force and effect as though the Company had specifically designated such sums to be so applied to principal and the Holder had agreed to accept such sums as an interest-free
prepayment of this Note. If any part of such excess remains after the principal has been paid in full, whether by the provisions of the 

  

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preceding sentences of this Section or otherwise, such excess shall be deemed to be an interest-free loan from the Company to the Holder, which loan shall be
payable immediately upon demand by the Company. The provisions of this Section shall control every other provision of this Note. 
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer
thereunto duly authorized this 3rd day of September, 2008. 
  

			
	COMPREHENSIVE CARE CORPORATION
		
	By:	 	 /s/ Robert J. Landis

		 	Robert Landis
		 	Chief Financial Officer

  

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