Document:

STOCK PURCHASE AGREEMENT

 Exhibit 10.2 
 STOCK PURCHASE AGREEMENT 
 This Stock Purchase Agreement, dated as of
July 27, 2012 (this “Agreement”), is made by and between Comarco, Inc., a corporation incorporated under the laws of the State of California (the “Company”) and Broadwood Partners, L.P., a limited partnership
organized and existing under the laws of the State of Delaware (the “Purchaser”). The Company and the Purchaser are individually referred to herein as a “Party” and collectively, as the “Parties.”
Unless otherwise defined herein, terms defined in the Loan Agreement (as hereinafter defined) shall have the same meanings when used herein. 
 RECITALS 
 WHEREAS, pursuant to that certain senior secured six
month term loan agreement, dated the date hereof, by and among the Company, as borrower, Comarco Wireless Technologies, Inc., a corporation incorporated under the laws of the State of Delaware, as guarantor (the “Guarantor”), and
the Purchaser, as lender (the “Loan Agreement”), the Purchaser has agreed to provide to the Company a senior secured loan in the principal amount of up to Two Million United States Dollars (US$2,000,000) (the
“Loan”) and the Company has agreed to repay the Loan pursuant to the terms and conditions therein contained, which Loan is evidenced by that certain promissory note dated as of the date hereof made by the Company in favor of
Purchaser (the “Note”); 
 WHEREAS, as a condition precedent to the effectiveness of the Loan
Agreement, the Parties have agreed to enter into this Agreement, pursuant to which the Purchaser hereby agrees to purchase and the Company hereby agrees to sell, in an amount to be hereinafter determined by the Company in its sole discretion, up to
Three Million (3,000,000) shares (in full or a fractional amount thereof; such amount, the “Shares” and each a “Share”) of the Company’s common stock, $0.001 par value per share (the “Common
Stock”), at a purchase price of One United States Dollar (US$1.00) per Share, for an aggregate purchase price of up to Three Million United States Dollars (US$3,000,000); 

WHEREAS, the Company and the Purchaser are executing and delivering this Agreement in reliance upon an exemption from securities
registration afforded by the provisions of Section 4(2), Section 4(6), Regulation D (“Regulation D”) and/or Regulation S (“Regulation S”) as promulgated by the U.S. Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the “1933 Act”); 

WHEREAS, the Company desires to enter into this Agreement to issue and sell the Shares and the Purchaser desires to purchase the
Shares as set forth on the terms and conditions provided herein. 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the
Company and the Purchaser agree as follows: 
 1. Purchase and Sale of the Shares. 

(a) Purchase and Sale. The Company hereby agrees to sell, in an amount to be hereinafter determined by the Company in its sole
discretion, up to Three Million (3,000,000) shares of the Company’s Common Stock to the Purchaser and the Purchaser hereby agrees to purchase from the Company the Shares made available by the Company for purchase by the Purchaser, subject
to the terms and conditions herein contained. The Company and the Purchaser are executing and delivering this Agreement in accordance with and in reliance upon the exemption from securities registration pursuant to Section 4(2),
Section 4(6), Regulation D and/or Regulation S as promulgated by the Commission under the 1933 Act. 
 (b) Purchase
Price and Closing. The purchase price for each Share is One United States Dollar (US$1.00) per Share (the “Purchase Price”), or an aggregate purchase price of up to Three Million United States Dollars (US$3,000,000), subject at
all times to the terms and conditions contained in Section 5 hereof. The closing of the purchase and sale of the Shares (the “Closing”) shall be no later than the Maturity Date under and pursuant to the Loan Agreement, as the
same may be amended from time to time (the “Closing Date”). Subject to the terms and conditions of this Agreement, at the Closing, the Purchaser shall pay to the Company (x) the Purchase Price multiplied by the number of
Shares to be made available by the Company for purchase by the Purchaser at the time of Closing, minus (y) the amount of principal and interest outstanding under and pursuant to the Loan Agreement and the Note at the time of Closing
(such amount, the “Aggregate Purchase Price”), by either certified check or wire transfer, in immediately available funds, and the Company, immediately upon receipt of such sum, shall deliver to the Purchaser one share certificate
representing the Shares purchased. Notwithstanding anything contained herein to the contrary, in the event that the Aggregate Purchase Price is less than the amount of principal and interest outstanding under and pursuant to the Loan Agreement and
the Note at the time of Closing, the remaining amount of principal and interest shall remain due and owing under the Loan Agreement and the Note. 
 (c) Warrant. In sole consideration of the Purchaser entering into this Agreement (and not in consideration of any purchase of Shares that may hereinafter be completed), the Company shall issue, on
the date hereof, a common stock purchase warrant, substantially in the form attached to the Loan Agreement as Exhibit F, in favor of the Purchaser, pursuant to which the Company shall grant the Purchaser the right to purchase 1,250,000 shares
of the Company’s Common Stock at the per share price of One United States Dollars (US$1.00). 
 2. Conditions Precedent
to Closing. The obligation of the Purchaser to purchase the Shares made available by the Company for purchase by the Purchaser is subject to the satisfaction of the following conditions precedent at or before the Closing Date, to the
satisfaction of the Purchaser in its sole discretion: 
 (a) Covenants. The Company complies with the covenants contained
in Article V of the Loan Agreement; and 

  
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 (b) Maximum Offering Price: The Company shall not (and shall provide evidence to the
Purchaser that it has not), at any time prior to the Maturity Date, raise capital in any form, including, but not limited to, pursuant to a sale of Common Stock, derivative instruments, or other securities, at a price greater than One United States
Dollar (US$1.00) per share of Common Stock or convertible and/or exercisable into a price greater than One United States Dollar (US$1.00) per share of Common Stock; and 
 (c) Rights Offering. The Company shall use best commercial efforts (and shall provide evidence to the Purchaser of the same) to raise capital pursuant to a rights offering in which the Company
shall issue rights to all of its existing shareholders on a pro rata basis, permitting said shareholders to purchase additional Common Stock, subject to the terms and conditions to be contained in the documents to be hereinafter executed in
connection herewith (the “Rights Offering”); and 
 (d) Registered Offering. Provided that
the Company fails to raise capital in connection with the Rights Offering, the Company shall use best commercial efforts (and shall provide evidence to the Purchaser of the same) to raise capital pursuant to a public offering of shares of its Common
Stock to accredited investors, which such Common Stock shall be registered pursuant to applicable securities laws, subject to the terms and conditions to be contained in the documents to be hereinafter executed in connection herewith (the
“Registered Offering”); and 
 (e) Private Placement. Provided that the Company does not
raise capital in connection with the Rights Offering and the Registered Offering, the Company shall use best commercial efforts (and shall provide evidence to the Purchaser of the same) to raise capital pursuant to a private offering of shares of
its Common Stock to accredited investors, which such Common Stock shall be exempt from registration pursuant to applicable securities laws, subject to the terms and conditions to be contained in the documents to be hereinafter executed in connection
herewith. 
 For the purpose of Sections 2(c) and 2(d), “best commercial efforts” shall mean, at a minimum, that Company management
shall perform a diligent evaluation and formally report in writing to the Company’s board of directors, or a special committee thereof assigned for such purposes, with regard to the feasibility of (i) filing an S-1 Registration Statement,
or similar registration statement, with the Securities and Exchange Commission, and (ii) completing a Rights Offering or a Registered Offering, as applicable, prior to the Maturity Date. 

3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Purchaser as of the date
hereof and as of the Closing Date as follows: 
 (a) Organization and Standing: Articles and Bylaws. The Company is a
corporation duly organized, validly existing, and in good standing under the laws of the State of California and has all requisite corporate power and authority to carry on its business as proposed to be conducted. The Company is duly qualified to
do business in each jurisdiction where the nature of its business or its ownership or leasing of its properties makes such qualification necessary. 

  
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 (b) Corporate Power. The Company has all requisite corporate power to enter into this
Agreement and to sell and issue the Shares. This Agreement constitutes a valid and binding obligation of the Company enforceable in accordance with its respective terms, except as the same may be limited by bankruptcy, insolvency, moratorium, and
other laws of general application affecting the enforcement of creditors’ rights. 
 (c) Common Stock. As of the
date hereof, the Company has 50,625,000 shares of Common Stock authorized and 7,463,194 shares of Common Stock issued and outstanding. Each issued and outstanding share of the Company’s Common Stock is and will be, as of the Closing Date,
validly authorized, validly issued, fully paid and non-assessable, without any personal liability attaching to the ownership thereof and has not and will not be issued in violation of any preemptive rights of shareholders. 

(d) No Conflict. The execution and delivery of this Agreement by the Company and the performance by the Company of its obligations
hereunder in accordance with the terms hereof: (i) will not violate the organizational documents of the Company; (ii) will not violate any decree or judgment of any court or governmental authority applicable to or binding to the Company;
(iii) will not require the consent of any third party or governmental entity under any laws; (iv) will not violate any laws applicable to the Company; and (v) will not violate or breach any contractual obligation to which the Company
is a party. 
 (e) No Broker. The Company has not taken any action that would give rise to any claim by any person or
entity for brokerage commissions, finder’s fees or similar payments relating to this Agreement or the transactions contemplated hereby. 
 (f) Litigation. No proceedings relating to the Shares are pending or, to the knowledge of the Company, threatened before any court, arbitrator or administrative or governmental body that would
adversely affect the Company’s right to transfer the Shares to Purchaser. 
 4. Representations and Warranties of the
Purchaser. The Purchaser hereby represents and warrants to the Company as of the date hereof and as of the Closing Date as follows: 
 (a) Acquisition for Investment. The Purchaser is acquiring the Shares solely for its own account for the purpose of investment and not with a view to or for sale in connection with distribution.
The Purchaser does not have a present intention to sell the Shares, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of the Shares to or through any person or entity. The Purchaser acknowledges that
it is able to bear the financial risks associated with an investment in the Shares and that it has been given full access to such records of the Company and the subsidiaries and to the officers of the Company and the subsidiaries and received such
information as it has deemed necessary or appropriate to conduct its due diligence investigation and has sufficient knowledge and experience in investing in companies similar to the Company in terms of the Company’s stage of development so as
to be able to evaluate the risks and merits of its investment in the Company. 

  
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 (b) Sophistication. The Purchaser is a sophisticated investor, as described in Rule
506(b)(2)(ii) promulgated under the 1933 Act and has such experience in business and financial matters that it is capable of evaluating the merits and risk of an investment in the Company. 

(c) Opportunities for Additional Information. The Purchaser acknowledges that its representatives have had the opportunity to ask
questions of and receive answers from, or obtain additional information from, the executive officers of the Company concerning the financial and other affairs of the Company, and to the extent deemed necessary in light of such Purchaser’s
personal knowledge of the Company’s affairs, such Purchaser has asked such questions and received answers to the full satisfaction of such Purchaser, and such Purchaser desires to invest in the Company. 

(d) No General Solicitation. The Purchaser acknowledges that the Shares were not offered to such Purchaser by means of any form of
general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio, or (ii) any seminar or meeting to which such Purchaser was invited by any of the foregoing means of communications. 
 5. Make-Whole Rights. If the Company shall, at any time or from time to time after the date hereof, but on or before the one year anniversary of the date hereof, issue or sell, agree to issue or
sell, or be deemed to have issued or sold, any New Securities (as defined below), where the price per share paid upon purchase or exercise is, or resultant upon conversion into Common Stock (taking into account any and all warrants or other
securities and other consideration issued in connection therewith when determining the value of such price per share; the “New Securities Share Price”) would be, less than One United States Dollar (US$1.00), then as a condition
precedent to any such issuance or sale (or deemed issuance or sale), the Company shall, (i) in the event that the purchase contemplated by this Agreement has previously been completed, be required to issue to the Purchaser additional shares of
Common Stock (the “Adjustment Shares”) such that the Purchaser, upon receipt of the Adjustment Shares, will have then received in aggregate the number of shares the Purchaser would have received hereunder if the price per share of
Common Stock had been equal to the New Securities Share Price; or (ii) in the event that the purchase contemplated by this Agreement has not been completed, the purchase price for each share of Common Stock sold hereunder shall equal the New
Securities Share Price. As used herein, “New Securities” means shares of the Common Stock, any other securities, options, warrants or other rights where upon exercise or conversion the purchaser or recipient receives shares of
the Common Stock, or other securities with similar rights to the Common Stock, including without limitation pursuant to the exercise or conversion of any Company Securities. Within thirty (30) days of the sale or issuance of any
such New Securities, the Company shall deliver to the Purchaser certificates evidencing any Adjustment Shares the Purchaser is entitled to pursuant to this Section 5, which Adjustment Shares shall be issued free and clear of any encumbrances,
and the Company shall so represent and warrant to the Purchaser 

  
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that such Adjustment Shares shall be, upon issuance thereof to the Purchaser, duly authorized, validly issued, fully paid and non-assessable. Each Party to the issuance of the Adjustment
Shares shall take all such other actions as may be reasonably necessary to consummate the transfer including, without limitation, entering into such additional agreements as may be necessary or appropriate. 

6. Miscellaneous. 
 (a) Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the Parties hereto and their respective successors and assigns; provided, however, that
the Company shall not assign nor delegate any of the obligations created under this Agreement without the prior written consent of the Purchaser. The Purchaser shall have no restriction on assignment or delegation of any obligations created
hereunder. 
 (b) Notices. Any notice, request or other communication to be given or made under this Agreement to the
Parties shall be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, courier (confirmed by facsimile), or facsimile (with a hard copy delivered within two
(2) business days) to the Party to which it is required or permitted to be given or made at such Party’s address specified below or at such other address as such Party shall have designated by notice to the Party given or making such
notice, request or other communication, it being understood that the failure to deliver a copy of any notice, request or other communication to a Party to whom copies are to be sent shall not affect the validity of any such notice, request or other
communication or constitute a breach of this Agreement. 
 For the Company: 

Comarco, Inc. 

25541 Commercentre Drive 
 Lake Forest, CA 92630 
 Facsimile: (949) 599-1430 

Attention:Tom Lanni, President and CEO 
 with a copy (which shall not constitute notice) to: 
 Stradling Yocca
Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 

Newport Beach, CA 92651 
 Facsimile: (949) 823-5150 
 Attention: Ben A. Frydman 

For the Purchaser: 
 Broadwood Partners, L.P. 
 c/o Broadwood Capital, Inc. 

724 Fifth Avenue, 9th Floor 
 New York, NY 10019 
 Facsimile: (212) 508-5756 

Attention: Neal C. Bradsher 

  
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 with a copy (which shall not constitute notice) to: 

Lucosky Brookman LLP 
 33 Wood Avenue South, 6th Floor 
 Iselin, NJ 08830 

Facsimile: (732) 395-4401 
 Attention: Joseph M. Lucosky, Esq. / Seth A. Brookman, Esq. 
 (c) Amendments;
Waivers; No Additional Consideration. No provision of this Agreement may be waived or amended except in a written instrument signed by each Party. 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 any Party to exercise any right hereunder in any
manner impair the exercise of any such right. 
 (d) Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule or law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the
transaction is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated in this Agreement are fulfilled to the extent possible. 

(e) Fees and Expenses. The Purchaser shall receive, on or before the date hereof, all fees and reimbursement for all expenses
required to be paid by the Company, including, but not limited to, all fees and expenses of the Purchaser’s legal counsel. 

(f) Counterparts; Facsimile Execution. This Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties. Facsimile execution and delivery of this Agreement is legal, valid and binding
for all purposes. 
 (g) Entire Agreement; Third Party Beneficiaries. This Agreement (i) constitutes the entire
agreement and supersedes all prior agreements and understandings, both written and oral, among the Parties with respect to the transactions contemplated herein and (ii) is not intended to confer upon any person other than the Parties any rights
or remedies. 

  
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 (h) Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 
 [signature page follows] 

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

			
	COMARCO, INC.

 
			
		
	By:	 	  /s/ Thomas W.
Lanni

 
			
	Name:	 	Thomas W. Lanni

 
			
	Title:	 	President and CEO

 
			
	
	BROADWOOD PARTNERS, L.P.

 
			
		
	By:	 	  /s/ Neal C.
Bradsher

 
			
	Name:	 	Neal C. Bradsher

 
			
	Title:	 	President, Broadwood Capital, Inc.
	(General Partner of Broadwood Partners, L.P.)

  
 9FORM OF THE COMMON STOCK PURCHASE WARRANTS

 Exhibit 10.3 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS WARRANT NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 

 

			
		 	Right to Purchase            shares of Common Stock of Comarco, Inc. (subject to adjustment as provided
herein)

 COMMON STOCK PURCHASE WARRANT 

 

	 No. 
	 Issue Date: July 27, 2012 

COMARCO, INC., a corporation incorporated under the laws of the State of California (together with any
corporation which shall succeed or assume its obligations, the “Company”), hereby certifies that, for value received, BROADWOOD PARTNERS, L.P., with an address at c/o Broadwood Capital, Inc., 724 Fifth Avenue, 9th Floor, New York, New York 10019, or its successors, representatives
and permitted assigns (collectively, “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date until 5:00 p.m. EST on the eighth (8th) anniversary of the Issue Date (the “Expiration
Date”), up to [—] fully paid and nonassessable shares (the “Shares”) of Common Stock (as defined herein) of the Company at a per share exercise price of One United States
Dollar (US$1.00). The aforedescribed exercise price per share, as adjusted from time to time as herein provided, is referred to herein as the “Exercise Price.” The number and character of Shares of Common Stock and the Exercise
Price are subject to adjustment as provided herein. The Company may reduce the Exercise Price for some or all of this class of warrants (each, a “Warrant” and together, the “Warrants”), temporarily or permanently,
provided such reduction is made as to all outstanding Warrants for all Holders of such Warrants. 
 As used herein the
following terms, unless the context otherwise requires, have the following respective meanings: 
 (a) “Common
Stock” means (i) the Company’s common stock, $0.001 par value per share, and (ii) the shares of common stock issuable upon conversion or exchange of any Other Securities pursuant to a plan of recapitalization, reorganization,
merger, sale of assets or otherwise. 
 (b) “Other Securities” means any capital stock (other than Common
Stock) and other securities of the Company or any other Person which Holder at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to the Common Stock of the Company, or which at
any time shall be issuable or shall have been issued in exchange for, or in replacement of, Shares of Common Stock of the Company or Other Securities pursuant to Section 4 hereof or otherwise. 

(c) “Warrant Shares” means the Shares of Common Stock issuable upon exercise of this Warrant. 

 1. Exercise of Warrant. 

1.1. Number of Shares Issuable Upon Exercise. From and after the Issue Date and through and including the Expiration Date, Holder
shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of subsection 1.2 or upon exercise of this Warrant in part in accordance with subsection 1.3, shares of Common Stock of the Company, subject
to adjustment pursuant to Section 4. 
 1.2. Full Exercise. This Warrant may be exercised in full by Holder by
delivering to the Company an original or facsimile copy of the form of exercise notice attached as Exhibit A hereto (the “Exercise Form”) duly executed by Holder and payment, in cash, wire transfer or by certified or official
bank check payable to the order of the Company, in the amount obtained by multiplying the number of Shares of Common Stock for which this Warrant is then exercisable by the Exercise Price then in effect. The original Warrant is not required to be
surrendered to the Company until it has been fully exercised. 
 1.3. Partial Exercise. This Warrant may be exercised in
part (but not for a fractional share) by Holder by delivering to the Company an Exercise Form in the manner and at the place provided in Section 1.2 hereof, except that the amount payable by Holder on such partial exercise shall be the
amount obtained by multiplying (a) the number of whole Shares of Common Stock designated by Holder in the Exercise Form by (b) the Exercise Price then in effect. Upon the surrender of the original Warrant by Holder for any such partial
exercise, the Company, at its sole expense, shall forthwith issue and deliver to, or upon the order of, Holder a new Warrant of like tenor, in the name of Holder or as Holder (upon payment by Holder of any applicable transfer taxes) may request, the
whole number of Shares of Common Stock for which such Warrant may still be exercised. 
 1.4. Fair Market Value. Fair
Market Value of a Share of Common Stock as of a particular date (the “Determination Date”) shall mean: 
 (a)
If the Company’s Common Stock is traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, NASDAQ Capital Market, the New York Stock Exchange or the NYSE Alternext, then the last reported sale price (as reported on
Bloomberg L.P.) of Common Stock on the trading day immediately preceding the Determination Date; 
 (b) If the Company’s
Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, NASDAQ Capital Market, the New York Stock Exchange or the NYSE Alternext, but is traded on the Over-the-Counter Bulletin Board or in the
over-the-counter market or Pink Sheets, then the last reported sale price (as reported on Bloomberg L.P.) of Common Stock on the trading day immediately preceding the Determination Date; 

(c) Except as provided in clause (d) below and Section 3.1 hereof, if the Company’s Common Stock is not publicly traded,
then the Fair Market Value shall be as Holder and the Company agree, or in the absence of such an agreement, by arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be chosen
from a panel of persons qualified by education and training to pass on the matter to be decided; or 
 (d) If the Determination
Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s certificate of incorporation, then the Fair Market Value is equal to all such amounts to
be payable per share to holders of the Company’s Common Stock pursuant to the certificate of incorporation in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common
Stock in liquidation under the certificate of incorporation, assuming for the purposes of this clause (d) that all of the Shares of Common Stock then issuable upon exercise of all of the Warrants are outstanding at the Determination Date.

  
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 1.5. Company Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of Holder, acknowledge in writing its continuing obligation to afford to Holder any rights to which Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If Holder shall
fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to Holder any such rights. 
 1.6. Delivery of Stock Certificates, etc. on Exercise; Buy-In. (a) The Company agrees that, provided the full exercise price listed in the Exercise Form is received in accordance with
Section 1.2 hereof, the Shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to Holder as the record owner of such Shares as of the close of business on the date on which the Exercise Form is delivered and
payment made for such Shares. As soon as practicable after the exercise of this Warrant in full or in part, and in any event within three (3) business days thereafter (“Warrant Share Delivery Date”), the Company, at its sole
expense (including the payment by it of any applicable issue taxes), will cause to be issued in the name of and delivered to Holder, or as Holder (upon payment by Holder of any applicable transfer taxes) may direct in compliance with applicable
securities laws, a certificate or certificates for the number of duly and validly issued, fully paid and non-assessable Shares of Common Stock or Other Securities to which Holder shall be entitled on such exercise, plus, in lieu of any fractional
share to which Holder would otherwise be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full Share of Common Stock, together with any other capital stock or other securities or property (including cash, where
applicable) to which Holder is entitled upon such exercise pursuant to Section 1 hereof or otherwise. The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss
to Holder. As compensation to Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to Holder for any late issuance of Warrant Shares after exercise of this Warrant the proportionate amount of $25 per business
day after the Warrant Share Delivery Date for each $10,000 amount of the Exercise Price for which this Warrant is exercised which are not timely delivered. The Company shall pay any payments incurred under this Section in immediately available funds
upon demand. Notwithstanding the foregoing, and in addition to any other remedies which may be available to Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share Delivery Date,
Holder may, in its sole and absolute discretion, revoke all or part of Holder’s Warrant exercise by delivery of a notice to such effect to the Company, whereupon the Company and Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date of notice of revocation or rescission is delivered to the Company. 

(b) In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder
a certificate or certificates representing the shares issuable upon exercise of this Warrant pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open
market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the shares issuable upon exercise of this Warrant which the Holder anticipated receiving upon such exercise (a “Buy-In”), then
the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of shares issuable upon exercise of this Warrant that the Company was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such
purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares issuable upon exercise of this Warrant for which such exercise was not honored or deliver to the
Holder the number of shares of Common Stock that would have been issued had the 

  
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Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with
respect to an attempted exercise for shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Company shall be required to pay the Holder
$1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Company. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing shares of Common Stock upon exercise of this Warrant as required pursuant to the terms hereof. 
 1.7. Automatic Exercise. In the event this Warrant is exercisable pursuant to the provisions of Section 2 hereof on a cashless basis as of the close of the last trading day on or before
the Expiration Date, then this Warrant, to the extent not previously unexercised and subject to the limitation in Section 10 of this Warrant, shall be deemed to have been automatically exercised without the requirement of any notice or delivery
of the Exercise Form, pursuant to the terms of Section 2 of this Warrant. Such Expiration Date will be deemed the exercise date for purposes of determining the Warrant Share Delivery Date and similar terms hereof. 

2. Exercise. 
 2.1 Payment upon exercise may be made at the option of Holder in its absolute discretion either in (i) wire transfer payable to the order of the Company equal to the applicable aggregate Exercise
Price, (ii) by delivery of Common Stock issuable upon exercise of the Warrants in accordance with Section (b) below, or (iii) by a combination of any of the foregoing methods, for the number of Common Stock specified in such form
(as such exercise number shall be adjusted to reflect any adjustment in the total number of shares of Common Stock issuable to Holder per the terms of this Warrant) and Holder shall thereupon be entitled to receive the number of duly authorized,
validly issued, fully-paid and non-assessable Shares of Common Stock (or Other Securities) determined as provided herein. Notwithstanding the immediately preceding sentence, payment upon exercise may be made in the manner described in
Section 2(b) below commencing one year after the Issue Date, but only with respect to Warrant Shares not included for unrestricted public resale in an effective registration statement. 

2.2 Subject to the provisions herein to the contrary, if the Fair Market Value of one share of Common Stock is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by delivery of a
properly endorsed Exercise Form delivered to the Company by any means described in Section 13 hereof, in which event the Company shall issue to Holder a number of shares of Common Stock computed using the following formula: 

X=Y (A-B) 
 A 
  

			
	Where X=	  	the number of shares of Common Stock to be issued to Holder
		
	Y=	  	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the
date of such calculation)
		
	A=	  	Fair Market Value
		
	B=	  	Exercise Price (as adjusted to the date of such calculation)

  
 4 

 For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction in the manner described above shall be deemed to have been acquired by Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the
date this Warrant was originally issued. 
 3. Adjustment for Reorganization, Consolidation, Merger, etc. 

3.1. Fundamental Transaction. If, at any time while this Warrant is outstanding, a Fundamental Transaction (as defined
herein) occurs, then, upon any subsequent exercise of this Warrant, Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of Holder in its sole and absolute discretion, (a) upon exercise of this Warrant, the number of Shares of Common Stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by Holder of the number of Shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (b) if the Company is acquired in
(1) a transaction where the consideration paid to holders of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act or (3) a transaction involving a Person
not traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market, cash equal to the Black-Scholes Value. 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 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 to the Company or surviving entity in such
Fundamental Transaction shall issue to Holder a new warrant consistent with the foregoing provisions and evidencing Holder’s right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3.1
and ensuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. “Black-Scholes Value” shall be determined in accordance
with the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of Common Stock equal to the volume weighted average price (as determined by Bloomberg L.P.) (“VWAP”)
of the Common Stock for the trading day immediately preceding the date of consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of
this Warrant as of the date of such request and (iii) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg L.P. determined as of the trading day immediately following the public announcement of the
applicable Fundamental Transaction. 
 (a) A Fundamental Transaction is defined as the occurrence of any of the following
(each, a “Fundamental Transaction”): 
 (i) The Company effects any merger or consolidation of
the Company with or into another entity where the other entity acquires more than 50% of the outstanding shares in one or a series of related transactions; 

  
 5 

 (ii) The Company effects any sale or transfer of 40% in the aggregate, in
one or a series of related transactions, of the properties and assets of the Company to another Person(s) in any rolling twelve (12) month period; 
 (iii) any purchase, exchange or tender offer (whether by the Company or another entity) is completed pursuant to which holders of an aggregate of 50% or more of the outstanding Shares of Common Stock of
the Company are permitted to tender or exchange their Shares for other securities (whether of the Company or another Person), cash or property; 
 (iv) The Company consummates a stock purchase or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more persons
whereby such other persons acquire more than the 50% of the outstanding Shares of Common Stock (not including any Shares of Common Stock held by such other persons making or party to, or associated or affiliated with, the other persons making or
party to, such stock purchase or other business combination); 
 (v) any “person” or “group”
(as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, in one or a series of related transactions,
of 50% or more of the aggregate Common Stock of the Company; or 
 (vi) The Company effects any reclassification
of the Common Stock or any share exchange pursuant to which more than 50% of the Common Stock of the Company is effectively converted into or exchanged for other securities (whether of the Company or another Person), cash or property. The foregoing
provision shall similarly apply to successive Fundamental Transactions of a similar nature by any such successor or purchaser. 

3.2 Continuation of Terms. Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such
reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any Other Securities, including, in the case of any such transfer, the Person
acquiring all or substantially all of the properties or assets of the Company, whether or not such Person shall have expressly assumed the terms of this Warrant as provided in Section 4 hereof. In the event this Warrant does not continue in
full force and effect after the consummation of the transactions described in this Section 3, then only in such event will the Company’s securities and property (including cash, where applicable) receivable by Holder of the Warrants be
delivered to the Trustee as contemplated in connection with the events in this Section 3.2. 
 3.3 Share Issuance.
Until the Expiration Date, if the Company shall issue any Common Stock, except for the Excepted Issuances (as defined herein), prior to the complete exercise of this Warrant for a consideration less than the Exercise Price then in effect at the time
of such issuance, then, and thereafter successively upon each such issuance, the Exercise Price shall be reduced to such other lower price for then outstanding Warrants. For purposes of this adjustment, the issuance of any equity or debt instrument
of the Company, other than the Excepted Issuances, carrying the right to convert such security or debt instrument into Common Stock or of any warrant, right or option to purchase Common Stock shall result in an adjustment to the Exercise Price upon
the issuance of the above-described security, debt instrument, warrant, right or option if such issuance is at a price lower than the Exercise Price in effect upon such issuance and again at any time upon any actual, permitted, optional or allowed
issuances of shares of Common Stock upon any actual, permitted, optional, or allowed exercise 

  
 6 

 
of such conversion or purchase rights if such issuance is at a price lower than the Exercise Price in effect upon any actual, permitted, optional, or allowed issuance. Other than with respect to
Excepted Issuances, Common Stock issued or issuable by the Company for no consideration or for consideration that cannot be determined at the time of issue will be deemed issuable or to have been issued for $0.001 per share of Common Stock. Upon any
reduction of the Exercise Price, the number of Shares of Common Stock that Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be adjusted to a number determined by multiplying the number of Shares of Common
Stock that would otherwise (but for the provisions of this Section 3.3) be issuable on such exercise by a fraction of which (a) the numerator is the Exercise Price that would otherwise (but for the provisions of this Section 3.3) be
in effect, and (b) the denominator is the Exercise Price in effect on the date of such exercise. For purposes of this Section 3.3, (“Excepted Issuances”) shall mean: (i) full or partial consideration in connection
with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities or assets of a corporation or other entity, (ii) the Company’s issuance of securities in connection with strategic license agreements
and other partnering arrangements, (iii) the Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock to employees, directors, advisory board members, and consultants pursuant to plans approved by
the Company’s board of directors as of the Closing Date, or (iv) as a result of the exercise of Warrants which are granted or issued pursuant to this Agreement and related Agreements entered into on the unamended terms in effect on the
Closing Date. 
 3.4 Adjustments for Event of Default. (a) Adjustment of Exercise Price. Upon the occurrence
of an Event of Default (as defined in the Loan Agreement), the Exercise Price shall be adjusted to the lower of (i) the VWAP for the five (5) trading days immediately preceding the date of the occurrence of the Event of Default and
(ii) the then applicable Warrant Exercise Price (the “Default Exercise Price”). 
 (b) Issuance of
Penalty Warrants. Upon the occurrence of an Event of Default, Holder shall be entitled to receive additional warrants for each ninety (90) day period the Company remains in default for a default that curable by the Company using its best
efforts, under the same terms and conditions of this Warrant (including, but not limited to, the adjustment of the Exercise Price to the Default Exercise Price as set forth in Section 3.4(a) above), in an amount equal to 25% of the original
amount of the Warrants issued hereunder. Such additional Warrants shall be issued in accordance with the procedures set forth in Section 1.6 hereof and shall become due on the first day of every such 90 day period 

4. Extraordinary Events Regarding Common Stock. In the event that the Company shall (a) issue additional Shares of Common
Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding Shares of Common Stock or (c) combine its outstanding Shares of the Common Stock into a smaller number of Shares of Common Stock, then, in
each such event, the Exercise Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Exercise Price by a fraction, the numerator of which shall be the number of Shares of Common Stock outstanding
immediately prior to such event and the denominator of which shall be the number of Shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Exercise Price then in effect. The Exercise
Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 4. The number of Shares of Common Stock that Holder of this Warrant shall thereafter, on the exercise
hereof, be entitled to receive shall be adjusted to a number determined by multiplying the number of Shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such exercise by a fraction of which
(a) the numerator is the Exercise Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Exercise Price in effect on the date of such exercise. 

  
 7 

 5. Certificate as to Adjustments. In each case of any adjustment or readjustment in
the Shares of Common Stock (or Other Securities) issuable upon exercise of the Warrants, the Company, at its sole expense, shall promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in
accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional Shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of Shares of Common Stock (or Other Securities) outstanding
or deemed to be outstanding and (c) the Exercise Price and the number of Shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as
provided in this Warrant. The Company will forthwith mail a copy of each such certificate to Holder and any Warrant Agent of the Company that is appointed pursuant to Section 11 hereof. 

6. Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements. The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the Warrants, all Shares of Common Stock (or Other Securities) from time to time issuable upon the exercise of the Warrant. This Warrant entitles Holder, upon written request, to
receive copies of all financial and other information distributed or required to be distributed to holders of the Company’s Common Stock. 
 7. Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws, this Warrant and the rights evidenced hereby may be transferred by any registered Holder (a
“Transferor”). On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”), and together with an opinion of
counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company will issue and deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like
tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of Shares of Common Stock called
for on the face or faces of the Warrant so surrendered by the Transferor. 
 8. Replacement of Warrant. On receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor. 

9. Maximum Exercise. To the extent that, after the date hereof, the Holder’s ownership percentage of Shares of Common Stock
of the Company is less than ten percent (10%) of the outstanding Shares of Common Stock, the Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with that number of Shares of Common Stock which would be in
excess of the sum of (i) the number of Shares of Common Stock beneficially owned by Holder and its affiliates on an exercise date, and (ii) the number of Shares of Common Stock issuable upon the exercise of this Warrant with respect to
which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by Holder and its affiliates of more than 9.99% of the outstanding Shares of Common Stock on such date. For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and Rule 13d-3 thereunder. Subject to the foregoing, Holder shall not be limited to aggregate exercises which
would result in the issuance of more than 9.99%. The restriction described in this paragraph may be waived, in whole or in part, upon sixty-one (61) days’ prior notice from Holder to the Company to increase such percentage to up to
9.99%, but not in excess of 9.99%. 

  
 8 

 10. Warrant Agent. The Company may, by written notice to Holder, appoint an agent (a
“Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1 hereof, exchanging this Warrant pursuant to Section 7 hereof and replacing this Warrant
pursuant to Section 8 hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent. 

11. Transfer on the Company’s Books. Until this Warrant is transferred on the books of the Company, the Company may treat the
registered Holder as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary. 
 12.
Registration Rights. 
 12.1 Upon the request of the Holder (the “Request”), the Company shall prepare
and, as soon as possible after the Request, but in no event later than the date that is forty-five (45) days after the Request, file with the SEC a registration statement on Form S-1 (the “Registration Statement”) registering
the Warrant Shares. The Company shall use its best efforts to have the Registration Statement declared effective by the SEC as soon as possible, but in no event later than one hundred and fifty (150) days from the date of the Request. The
Company shall pay fifty percent (50%) of all costs and expenses related to the registration of the Warrant Shares. 
 12.2
If a Registration Statement covering the Warrant Shares (i) is not filed with the SEC by the Company within forty-five (45) days after the date of the Request, or (ii) does not become effective within one hundred and fifty
(150) days after the date of the Request and remain effective for the Registration Period (as hereinafter defined), the Company shall refund any and all costs and expenses related to the registration of the Warrant Shares previously paid by the
Holder and the Company shall be liable for one hundred percent (100%) of such costs and expenses. The Company agrees that it will not challenge or dispute Holder’s remedies set forth in this Section by asserting that such remedies
constitute a penalty or should otherwise not be enforced as written. 
 12.3 The Company shall use its best efforts to keep such
Registration Statement continuously effective until the earlier of (A) the date on which all of the Warrant Shares have been sold, (B) the date on which all of the Warrant Shares become eligible for resale without volume limitations
pursuant to Rule 144 under the Exchange Act and (C) the date on which the Holder notifies the Company that keeping the Registration Statement effective is unnecessary (the “Registration Period”). The Company shall promptly prepare and
file with the SEC such amendments (including post-effective amendments) and supplements to such Registration Statement and any prospectus used in connection therewith, as may be necessary to keep such Registration Statement effective at all times
until the expiration of the Registration Period. The Company shall pay fifty percent (50%) of all costs and expenses related to keeping such Registration Statement effective. 

12.4 The Company shall, not less than three (3) business days prior to the filing of the Registration Statement or any related
prospectus or any amendment or supplement thereto, (i) furnish to the Holder or any holder under this Agreement copies of the Registration Statement or prospectus proposed to be filed, which documents will be subject to the review of the Holder
or any holder under this Agreement, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to conduct a
reasonable investigation. Furthermore, the Company shall advise the Holder or any holder under this Agreement, within two (2) business days: (x) after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC
delaying or suspending the effectiveness of the Registration 

  
 9 

 
Statement or of the initiation or threat of any proceeding for that purpose, or any other order issued by any state securities commission or other regulatory authority suspending the
qualification or exemption from qualification of any of the Warrant Shares under state securities or “blue sky” laws; and it will promptly use its best efforts to prevent the issuance of any stop order or other order or to obtain its
withdrawal at the earliest possible moment if such stop order or other order should be issued; and (y) when the prospectus or any prospectus supplement or post-effective amendment has been filed, and, with respect to the Registration Statement
or any post-effective amendment thereto, when the same has become effective. 
 13. Piggy-Back Registrations. If there is
not an effective Registration Statement covering all of the Warrant Shares and the Company shall determine to prepare and file with the U.S. Securities and Exchange Commission (the “Commission”) a registration statement relating to
an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to the Holder written notice of
such determination and, if within fifteen (15) calendar days after receipt of such notice, the Holder shall so request in writing, the Company shall include in such registration statement all or any part of the Warrant Shares such Holder
requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights. To the extent not all of the Warrant Shares may be included for registration in the registration statement, as a result of the
Commission’s application of Rule 415 under the Securities Act, priority in such registration statement will be given to the other Common Stock included therein in preference to the Warrant Shares except no preference shall be given to shares
held by affiliates. The obligations of the Company under this Section may be waived by the Holder entitled to registration rights under this Section 12. The holders whose shares are included or required to be included in such registration
statement are granted the same rights, benefits, liquidated or other damages and indemnification granted to other holders of securities included in such registration statement. Notwithstanding anything to the contrary herein, the registration rights
granted to the Holder shall not be applicable for such times as such Warrant Shares may be sold by the Holder thereof without restriction pursuant to Section 144(b)(1) of the Securities Act. In no event shall the liability of the Holder or
permitted successor in connection with any Warrant Shares included in any such registration statement be greater in amount than the dollar amount of the net proceeds actually received by such Holder upon the sale of the Warrant Shares sold pursuant
to such registration or such lesser amount applicable to other holders of securities included in such registration statement. 

14. Severability. In case any one or more of the provisions hereof shall be invalid, illegal or unenforceable in any respect under
any law, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 15. Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be
(i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable overnight air courier service with charges prepaid, or (iv) transmitted by hand
delivery or facsimile, addressed as set forth below or to such other address as such party shall 

  
 10 

 
have specified most recently by written notice in accordance with this Section. Any notice or other communication required or permitted to be given hereunder shall be deemed effective
(a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such
notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), (b) on the first business day following the date of
mailing by reputable overnight air courier service, fully prepaid, addressed to such address or (c) three (3) business days after in the mail or upon actual receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be: 
 If to the Company, to: 

Comarco, Inc. 
 25541 Commercentre Drive 
 Lake Forest, CA 92630 

Facsimile: (949) 599-1430 
 Attention: Tom Lanni, President and CEO 
 With a copy to (which copy shall not
constitute notice): 
 Stradling Yocca Carlson & Rauth 

660 Newport Center Drive, Suite 1600 

Newport Beach, CA 92651 
 Facsimile: (949) 823-5150 
 Attention: Ben A. Frydman

 If to Holder: 
 Broadwood Partners, L.P. 
 c/o Broadwood Capital, Inc. 

724 Fifth Avenue, 9th Floor 
 New York, NY 10019 
 Facsimile: (212) 508-5756 

Attention: Neal C. Bradsher 
 With a copy to (which copy shall not constitute notice): 
 Lucosky
Brookman LLP 
 33 Wood Avenue South, 6th Floor 

Iselin, NJ 08830 
 Facsimile: (732) 395-4401 
 Attention: Joseph M. Lucosky, Esq.
/ Seth A. Brookman, Esq. 
 16. Law Governing This Warrant. This Warrant shall be governed by and construed in accordance
with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party hereto against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts
of New York or in the federal courts located in the state and county of New York. 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 Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and

  
 11 

 
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 to 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 Warrant 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 Warrant and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

[Signature page follows] 

  
 12 

 IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written
above. 
  

			
	 COMARCO, INC.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  
 1 

 Exhibit A 

FORM OF EXERCISE NOTICE 
 (to be signed only on exercise of Warrant) 
 TO: COMARCO, INC. 

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.
A-            ), hereby irrevocably elects to purchase (check applicable box): 

            Shares of the Common Stock covered by such Warrant; or 

            the maximum number of Shares of Common Stock covered by such Warrant pursuant to
the cashless exercise procedure set forth in Section 2 of the Warrant. 
 The undersigned herewith makes payment of the full exercise price
for such Shares at the price per share provided for in the attached Warrant, which is $            . Such payment takes the form of (check applicable box or boxes): 

            $            in
lawful money of the United States; and/or 
             the cancellation of such
portion of the attached Warrant as is exercisable for a total of             Shares of Common Stock (using a Fair Market Value of
$            per share for purposes of this calculation); and/or 

            the cancellation of such number of Shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of Shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2 of the
Warrant. 
 The undersigned requests that the certificates for such Shares be issued in the name of and delivered pursuant to DTC instructions
below or
to                    whose address is                 
                                         
                                         
                                     . 

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the attached Warrant
shall be made pursuant to registration of the Common Stock under the 1933 Act, or pursuant to an exemption from registration under the 1933 Act. 
 DTC Instructions:              
  

			
	Dated:                    	 	  

		 	(Signature must conform to name of holder as specified on the face of the Warrant)
		 	  
  
 (Address)

 Exhibit B 

FORM OF TRANSFEROR ENDORSEMENT 
 (To be signed only on transfer of Warrant) 
 For value received, the undersigned
hereby sells, assigns and transfers unto the Person(s) named below under the heading “Transferees” the right represented by the attached Warrant to purchase the percentage and number of Shares of Common Stock of Comarco, Inc. to which the
attached Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,” respectively, opposite the name(s) of such Person(s) and appoints each such Person Attorney to transfer its respective right
on the books of Comarco, Inc. with full power of substitution in the premises. 
  

					
	 Transferees
	  	 Percentage Transferred
	  	 Number Transferred

		  		  	
		  		  	
		  		  	

  

					
	 Dated:
                    ,            
	 		 	  

		 		 	(Signature must conform to name of holder as specified on the face of the warrant)
	  
 Signed in the presence
of:
  
 (Name)
  
  

ACCEPTED AND AGREED:

[TRANSFEREE]
  

 
  
             (Name)
	 		 	  
  
  

 

            (address)

 
  
             (address)

  
 1

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